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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 450 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 450

   To amend the Public Works and Economic Development Act of 1965 to 
establish a National Public Works Corporation for purposes of providing 
     financial assistance to States and local governments for the 
construction, rehabilitation, and repair of certain public facilities, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 6, 1993

 Mr. Clinger introduced the following bill; which was referred to the 
              Committee on Public Works and Transportation

_______________________________________________________________________

                                 A BILL

 
   To amend the Public Works and Economic Development Act of 1965 to 
establish a National Public Works Corporation for purposes of providing 
     financial assistance to States and local governments for the 
construction, rehabilitation, and repair of certain public facilities, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may be 
cited as the ``National Public Works Corporation Act''.
    Sec. 2. Title II of the Public Works and Economic Development Act 
of 1965 (42 U.S.C. 3141-3144) is amended to read as follows:

                  ``TITLE II--PUBLIC WORKS CORPORATION

            ``establishment of the public works corporation

    ``Sec. 201. There is established a body corporate to be known as 
the National Public Works Corporation (referred to in this title as the 
`Corporation') which shall be an instrumentality of the United States 
and shall have succession until dissolved by Act of Congress.

                          ``board of directors

    ``Sec. 202. (a) The management of the Corporation shall be vested 
in a Board of Directors consisting of seven directors who shall be 
appointed by the President by and with the advice and consent of the 
Senate. One director shall be appointed as Chairman and one director 
shall be appointed as Vice Chairman in accordance with subsection (b). 
Except as provided in subsection (b) of this section, the term of each 
director shall be eight years. Any director appointed to fill a vacancy 
shall be appointed only for the unexpired portion of the term. Any 
director may continue to serve as such after the expiration of the term 
for which he was appointed until his successor has been appointed and 
has qualified.
    ``(b) Of the members first appointed to the Board of Directors, one 
shall be appointed for a term of two years, one shall be appointed for 
a term of three years, one (who shall be appointed Vice Chairman) shall 
be appointed for a term of four years, one shall be appointed for a 
term of five years, one shall be appointed for a term of six years, one 
shall be appointed for a term of seven years, and one (who shall be 
appointed Chairman) shall be appointed for a term of eight years. Any 
person appointed as a director thereafter to fill the seat held by the 
Vice Chairman shall be appointed as Vice Chairman and any person 
appointed as a director thereafter to fill the seat held by the 
Chairman shall be appointed as Chairman.

                        ``officers and employees

    ``Sec. 203. (a) The Board of Directors of the Corporation shall 
appoint a President of the Corporation and such other officers and 
employees as it deems necessary to carry out the functions of the 
Corporation, subject to the provisions of title 5, United States Code, 
governing appointments in the competitive service, and persons so 
appointed shall be paid in accordance with the provisions of chapter 51 
and subchapter III of chapter 53 of such title relating to 
classification and General Schedule pay rates. The President of the 
Corporation shall be an ex officio member of the Board of Directors and 
may participate in meetings of the Board except that he shall have no 
vote except in case of an equal division. No individual other than a 
citizen of the United States may be an officer of the Corporation. No 
officer of the Corporation shall receive any salary or other 
remuneration from any source other than the Corporation during the 
period of his employment by the Corporation.
    ``(b) No director, officer, attorney, agent, or employee of the 
Corporation shall in any manner, directly or indirectly, participate in 
the deliberations upon or the determination of any question affecting 
his personal interests, or the interests of any corporation, 
partnership, or association in which he is directly or indirectly 
interested.
    ``(c) The Chairman and Vice Chairman shall be compensated at the 
rate payable under level III of the Executive Schedule under section 
5314 of title 5, United States Code. The other directors shall be 
compensated at the rate payable under level IV of the Executive 
Schedule under section 5315 of title 5, United States Code.
    ``(d) Not more than four directors serving at any time may be from 
one political party.
    ``(e) The Corporation shall not engage in political activities nor 
provide financing for or assist in any manner any project or facility 
involving political parties, nor shall the directors, officers, 
employees, or agents of the Corporation in any way use their connection 
with the Corporation for the purpose of influencing the outcome of any 
election.

                           ``corporate powers

    ``Sec. 204. (a) The Corporation shall have power--
            ``(1) to adopt, alter, and use a corporate seal;
            ``(2) to make contracts;
            ``(3) to lease such real estate as may be necessary for the 
        transaction of its business;
            ``(4) to sue and be sued, to complain and defend, in any 
        court of competent jurisdiction, State or Federal;
            ``(5) to select, employ, and fix the compensation of such 
        officers, employees, attorneys, and agents as shall be 
        necessary for the transaction of the business of the 
        Corporation;
            ``(6) to define the authority and duties of such officers, 
        employees, attorneys, and agents, require bonds of them and fix 
        the penalties thereof, and to dismiss at pleasure such 
        officers, employees, attorneys, and agents;
            ``(7) to prescribe, amend, and repeal, by its Board of 
        Directors, bylaws, rules, and regulations governing the manner 
        in which its general business may be conducted and the powers 
        granted to it by law may be exercised and enjoyed together with 
        provision for such committees and the functions thereof as the 
        Board of Directors may deem necessary for facilitating its 
        business under this title; and
            ``(8) to exercise, to the extent not inconsistent with the 
        provisions of this title, the general corporate powers of a 
        corporation organized and existing under the laws of the 
        District of Columbia.
    ``(b) The Board of Directors of the Corporation shall determine and 
prescribe the manner in which its obligations shall be incurred and its 
expenses allowed and paid.
    ``(c) The Corporation shall be entitled to the free use of the 
United States mails in the same manner as the executive departments of 
the Government.
    ``(d) The Corporation, with the consent of any board, commission, 
independent establishment, or executive department of the Government, 
including any field service thereof, may avail itself of the use of 
information, services, facilities, officers, and employees thereof in 
carrying out the provisions of this title.

                           ``principal office

    ``Sec. 205. The principal office of the Corporation shall be 
located in the District of Columbia.

                         ``borrowing authority

    ``Sec. 206. (a) The Corporation may issue notes, debentures, bonds, 
and other evidences of indebtedness in such amounts and on such terms 
and conditions as its Board of Directors may determine subject to the 
limitations prescribed in this title.
    ``(b) Except as provided in section 209(b) of this title, the 
aggregate outstanding indebtedness of the Corporation under this 
section at any time may not exceed ten times the reserve fund of the 
Corporation under section 207(a) of this title at that time.
    ``(c) The obligations of the Corporation issued under this section 
shall be guaranteed with the full faith and credit of the United 
States.
    ``(d) Any of the obligations issued by the Corporation may be 
secured by its pledging or granting of security interests in all or any 
part of its revenues or other receipts or all or any part of its 
assets.
    ``(e) Neither the Directors nor any other person executing 
obligations shall be subject to any personal liability or 
accountability by reason of the issuance thereof.
    ``(f) All obligations of the Corporation shall be negotiable 
instruments, subject only to any provisions for registration of 
ownership of obligations.

                   ``capitalization and reserve fund

    ``Sec. 207. (a) The capitalization of the Corporation shall consist 
of amounts appropriated pursuant to subsection (b) of this section and 
amounts contributed by participating States in accordance with 
subsection (c) of this section. The amount of the capitalization shall 
constitute a reserve fund which shall not be available for making loans 
under this title. The Corporation may invest any portion of the reserve 
fund which is not, in its judgment, required to meet current needs. 
Such investments may be made only in interest-bearing obligations of 
the United States with maturities suitable for the needs of the 
Corporation. The interest on and the proceeds from the sale or 
redemption of any such obligation shall be credited to and form a part 
of the reserve fund.
    ``(b) There is authorized to be appropriated for the capitalization 
of the Corporation for fiscal years beginning after September 30, 1993, 
not to exceed $2,500,000,000.
    ``(c) A State electing to participate in the Corporation may make 
contributions to the Corporation at such times and in such amounts as 
the State chooses. Except as provided in section 209(d) of this title, 
the total contributions of a State to the Corporation shall not exceed 
an amount equal to the amount which bears the same ratio to 
$2,500,000,000 as the population of such State bears to the population 
of all the States.

                ``loans to states and local governments

    ``Sec. 208. (a) The Corporation is authorized to make loans to 
participating States and to units of local government located in 
participating States for projects for the construction, rehabilitation, 
and repair of public facilities in accordance with this section. Any 
such loan may be in an amount sufficient to pay for all or a portion of 
the cost of completing an approved project, except that the amount of 
any such loan may not be used for payment of the non-Federal share of 
the cost of any project for which a Federal grant is made.
    ``(b)(1) Except as otherwise provided in section 209(c) of this 
title, the total amount of the loans outstanding under subsection (a) 
of this section shall at no time exceed the aggregate outstanding 
indebtedness of the Corporation under section 206(b) of this title.
    ``(2)(A) Except as otherwise provided in subparagraph (B) of this 
paragraph and section 209(c) of this title, the total amount of the 
loans to a State and to units of local government within such State 
outstanding under subsection (a) of this section shall at no time 
exceed that amount which bears the same ratio to the total amount 
allowable under paragraph (1) of this subsection as the amount of 
contributions made by such State to the Corporation under section 
207(c) of this title bears to the amount of contributions made by all 
participating States to the Corporation under section 207(c) of this 
title.
    ``(B) In no event shall the total amount allowable under 
subparagraph (A) for loans to a State and to units of local government 
in such State exceed the amount which would be allowable for loans to 
such State and such units under subparagraph (A) if (i) the full amount 
authorized by section 207(b) were appropriated, (ii) each State made 
the maximum contribution allowable to such State under section 207(c), 
and (iii) the Corporation incurred the maximum allowable indebtedness 
under section 206(b).
    ``(c) The Corporation may not make a loan for a project for a 
public facility unless the Corporation determines that the public 
facility after completion of the project will generate fees for the use 
of the facility in amounts sufficient to repay the principal and 
interest on the loan and to create a sufficient reserve for operation 
and maintenance of the project and for replacement costs over the 
useful life of the project. An applicant for a loan under this section 
shall demonstrate to the satisfaction of the Corporation that such 
applicant (or the agency or instrumentality for whom such applicant is 
applying under subsection (h)(1) or (h)(2)) has the legal authority to 
assess and collect such fees with respect to the project and that such 
fees will provide sufficient revenues to meet the requirements of the 
preceding sentence.
    ``(d) As a condition of any loan made under this title for a 
project for a public facility, the Corporation shall require that fees 
for the use of the facility be collected over the term of the loan in 
amounts sufficient to meet the requirements of subsection (c) and that 
all such fees be deposited in separate accounts (1) for the payment of 
principal and interest on such loan, and (2) for the payment of 
operation, maintenance, and replacement costs.
    ``(e) The Corporation may disapprove a loan application under this 
section for a project if it determines that the project is not feasible 
from an engineering standpoint, that the project will not generate 
revenues sufficient to satisfy the requirements of subsection (c) of 
this section, or that it is otherwise inconsistent with this title.
    ``(f) Each loan made under this title shall bear interest at a rate 
determined by the Corporation to be necessary to provide a return to 
the Corporation sufficient to pay for the Corporation's cost of 
borrowing funds and for the Corporation's administrative costs 
(including the costs of salaries of directors, officers, and 
employees).
    ``(g) The term of repayment for any loan made under this section 
shall not exceed the useful life of the project (as determined by the 
Corporation), except that in no event shall such term exceed 25 years.
    ``(h)(1) The Governor of a State shall submit applications for 
loans for projects involving public facilities of such State or any 
agency or instrumentality of such State. In the case of any agency or 
instrumentality of two or more States, the Governors of such States 
shall jointly submit applications for loans for projects involving 
public facilities of such agency or instrumentality.
    ``(2) The responsible official of a unit of local government shall 
submit applications for loans for projects involving public facilities 
of such unit of local government or any agency or instrumentality of 
such unit. In the case of an agency or instrumentality of two or more 
units of local government, the responsible officials of such units 
shall jointly submit applications for loans for projects involving 
public facilities of such agency or instrumentality.
    ``(3) The Corporation shall not approve an application for a loan 
submitted by one or more units of local government within a State 
unless the Governor of such State has certified approval of the 
application.
    ``(4) The Governor of a State shall not submit applications for 
loans for such State and approve applications for loans for units of 
local government in such State in aggregate amounts which exceed the 
amount allowable for loans in such State under subsection (b)(2). Any 
application for a loan for a project for an agency or instrumentality 
of two or more States shall contain an agreement among such States as 
to the apportionment of costs among such States for purposes of this 
paragraph and subsection (b)(2).
    ``(5) The Governor of a State shall ensure a proper distribution of 
the funds allowable for loans in such State under subsection (b)(2) 
between urban and rural areas by selecting projects for submission 
under paragraph (1) and projects for approval under paragraph (2) so 
that the percentage of funds borrowed for projects in units of local 
government having a population of 50,000 or more is not more than 5 
percent greater nor less than 5 percent lower than the percentage of 
the State's population residing in units of local government having a 
population of 50,000 or more. After the end of the two-year period 
beginning on the date the first loan is made under this title to a 
State or a unit of local government in such State, the Corporation 
shall only make a loan to such State or such a unit if, after taking 
into account that loan and all previous loans made to such State and 
such units, the Governor will be in compliance with the preceding 
sentence or will be more closely in compliance with the preceding 
sentence than before such loan was made.
    ``(i) As a condition of any loan under this title, the Corporation 
shall require that all contracts made with the proceeds of such loan be 
awarded on the basis of competitive bidding.
    ``(j) The Corporation shall conduct such audits as may be necessary 
to enforce this title. If the Corporation determines that fees are not 
being collected in sufficient amounts to meet the requirements of 
subsection (c) of this section, the Corporation shall notify the loan 
recipient of the amount by which such fees need to be increased. The 
Corporation shall not make additional loans to such recipient until the 
fees are so increased.
    ``(k) There is authorized to be appropriated to the Corporation for 
fiscal years beginning after September 30, 1993, such additional sums 
as may be necessary to reduce interest rates paid by borrowers under 
this title. Any amount appropriated under this subsection for a fiscal 
year shall be applied uniformly, as determined by the Corporation, to 
reduce interest rates for all recipients of loans under this title 
during such fiscal year.

                               ``defaults

    ``Sec. 209. (a)(1) If the Corporation determines that any loan is 
in default, the Corporation shall notify the recipient (and the State 
in which a unit of local government is located if such unit is the 
recipient) of such default.
    ``(2) During the period beginning on the date of such notification 
and ending on the earlier of the date such default is cured or the date 
which is two years after the date of such notification, the Corporation 
shall not make loans to such recipient and, in any case in which the 
recipient is a State, the Corporation shall not make loans to any unit 
of local government within that State.
    ``(3) If the recipient (or the State on behalf of a recipient which 
is a unit of local government) does not cure any default within two 
years after the date of notification under paragraph (1), the 
Corporation shall reduce the reserve fund established under section 
207(a) by the amount of the loan which remains in default. Such amount 
shall be set aside for purposes of repaying the holders of the 
obligations issued under section 206 of this title.
    ``(b) A reduction in the reserve fund under subsection (a)(3) of 
this section shall not affect any outstanding obligation for purposes 
of applying the limitation on indebtedness under section 206(b) of this 
title. The Corporation shall not issue any obligation under section 206 
of this title after such a reduction if the outstanding indebtedness of 
the Corporation after the issuance of such obligation exceeds an amount 
equal to ten times the reserve fund, as so reduced.
    ``(c) A reduction in the reserve fund under subsection (a)(3) of 
this section shall not affect any outstanding loan for purposes of 
applying the limitations on amounts allowable for loans under 
paragraphs (1) and (2) of section 208(b) of this title. Any reduction 
in the amount available for loans which results from such a reduction 
in the reserve fund shall first be applied to reduce the amount 
available for future loans to the State which is found to be in default 
and to units of local government within such State. To the extent 
necessary, after the amount available to such State and such units is 
reduced to zero, such a reduction in the reserve fund shall be applied 
to reduce the amount available for future loans to the other States and 
units of local government within such States in proportion to the 
contributions of each such State to the Corporation.
    ``(d) At any time after a reduction is made in the reserve fund 
under subsection (a)(3) of this section on account of a default by a 
State or a unit of local government in such State, such State may 
contribute all or a portion of the amount of such reduction to the 
reserve fund. Any additional amount of authority to make loans under 
section 208(b)(1) resulting from such contribution shall first be made 
available to States other than the State making such contribution and 
to units of local government in such States to the extent that the 
amount available to such other States and units was reduced under 
subsection (c) of this section, and any excess authority to make loans 
resulting from such contribution shall be made available to the State 
making such contribution and to units of local government in such 
State.

                            ``taxable status

    ``Sec. 210. The Corporation, its property, its franchise, capital, 
reserves, surplus, security holdings, and other funds, and its income 
shall be exempt from all taxation now or hereafter imposed by the 
United States or by any State or local taxing authority; except that 
(1) any real property and any tangible personal property of the 
Corporation shall be subject to Federal, State, and local taxation to 
the same extent according to its value as other such property is taxed, 
and (2) any and all obligations issued by the Corporation shall be 
subject both as to principal and interest to Federal, State, and local 
taxation to the same extent as the obligations of private corporations 
are taxed.

                  ``audit by general accounting office

    ``Sec. 211. The General Accounting Office shall audit the financial 
transactions of the Corporation, and for this purpose shall have access 
to all its books, records, and accounts.

                            ``annual report

    ``Sec. 212. The Corporation shall submit an annual report to the 
Congress and the President as soon as practicable after the end of each 
fiscal year on the status of the Corporation and its reserve fund. Each 
such report shall include a description of the projects for which loans 
were made during the preceding fiscal year.

                             ``definitions

    ``Sec. 213. For purposes of this title--
            ``(1) the term `construction' means the actual building of 
        a new public facility at a site where no similar facility 
        previously existed, including the acquisition of land for such 
        facility and nonstructural alternatives, and the reconstruction 
        of a public facility at an existing site or adjacent to an 
        existing site;
            ``(2) the term `maintenance' means routine and regularly 
        scheduled activities intended to keep a public facility 
        operating at its designed specifications;
            ``(3) the term `public facility' means any facility owned 
        or operated by a State, a unit of local government, or an 
        agency or instrumentality of one or more States or units of 
        local government, including, but not limited to, a highway, 
        street, bridge, mass transit facility and equipment, airport, 
        water supply and distribution system, sewer, lock and dam, 
        building, port, waterway, and dock; except that such term does 
        not include any Federal-aid highways (as defined in title 23, 
        United States Code);
            ``(4) the term `rehabilitation' means the correction of 
        structural flaws in a public facility so as to extend the 
        design life of such facility;
            ``(5) the term `repair' means the correction of a 
        structural flaw in a public facility without adding 
        significantly to the design life of such facility;
            ``(6) the term `State' means the several States, the 
        District of Columbia, Puerto Rico, the Virgin Islands, Guam, 
        American Samoa, and the Commonwealth of the Northern Marianas; 
        and
            ``(7) the term `unit of local government' means a city, 
        county, town, township, parish, village, or other general 
        purpose political subdivision of a State, and an Indian 
        tribe.''.

                                 <all>

HR 450 IH----2
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