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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 775 Introduced in Senate (IS)]

104th CONGRESS
  1st Session
                                 S. 775

 To amend title 23, United States Code, to provide for the designation 
of the National Highway System, the establishment of certain financing 
 improvements, and the creation of State infrastructure banks, and for 
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                  May 9 (legislative day, May 1), 1995

 Mr. Baucus (by request) introduced the following bill; which was read 
  twice and referred to the Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL

 
 To amend title 23, United States Code, to provide for the designation 
of the National Highway System, the establishment of certain financing 
 improvements, and the creation of State infrastructure banks, and for 
                            other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 101. SHORT TITLE.

    This Act may be cited as the ``National Highway System Designation 
Act of 1995''.

SEC. 102. NATIONAL HIGHWAY SYSTEM DESIGNATION.

    Section 103 of title 23, United States Code, is amended by 
inserting after subsection (b) the following:
    ``(c) National Highway System Designation.--
            ``(1) Designation.--The most recent National Highway System 
        (as of the date of enactment of this Act) as submitted by the 
        Secretary of Transportation pursuant to this section is 
        designated as the National Highway System.
            ``(2) Modifications.--
                    ``(A) In general.--At the request of a State, the 
                Secretary may--
                            ``(i) add a new route segment to the 
                        National Highway System; or
                            ``(ii) delete a route segment in existence 
                        on the date of the request;
                if the total mileage of the National Highway System 
                (including any route segment proposed to be added under 
                this subparagraph) does not exceed 168,000 miles 
                (270,480 kilometers).
                    ``(B) Procedures for changes requested by states.--
                Each State that makes a request for a change in the 
                National Highway System pursuant to subparagraph (A) 
                shall establish that each change in a route segment 
                referred to in the subparagraph has been identified by 
                the State, in cooperation with local officials, 
                pursuant to applicable transportation planning 
                activities for metropolitan areas carried out under 
                section 134 of this title and statewide planning 
                processes carried out under section 135 of this title.
            ``(3) Approval by the secretary.--The Secretary may approve 
        a request made by a State for a change in the National Highway 
        System pursuant to paragraph (2) if the Secretary determines 
        that the change--
                    ``(A) meets the criteria established for the 
                National Highway System under this title; and
                    ``(B) enhances the national transportation 
                characteristics of the National Highway System.''.

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Financing Improvement Act of 
1995''.

SEC. 202. LIMITATION ON ADVANCE CONSTRUCTION.

    Section 115(d) of title 23, United States Code, is amended to read 
as follows:
    ``(d) Limitation on Advanced Funding.--Secretary may not approve an 
application under this section unless the project is included in the 
State's transportation improvement program in accordance with section 
135 of this title.''.

SEC. 203. PAYMENT TO STATES FOR CONSTRUCTION, FLEXIBLE TAPERED SHARE.

    (a) State Matching Share.--Section 120 of title 23, United States 
Code, is amended by adding the following new subsection:
    ``(j) Use of Other Federal Funding.--Notwithstanding any other 
provision of this title, a State may use Federal funds from sources 
other than this title to meet the non-Federal share of a project under 
this title.''.
    (b) Payments.--Section 121(a) of title 23, United States Code, is 
amended to read as follows:
    ``(a) The Secretary may in his discretion, from time to time, make 
payments to a State for costs of construction incurred by the State on 
a project. The Federal share may vary during the life of a project, but 
at no time shall such share exceed the Federal share payable under 
sections 106(c), 120, and 130 of this title.''.
    (c) Conforming Amendment.--Section 121(d) of such title is amended 
as follows:
    ``(d) In making final payment pursuant to this section, the 
Secretary shall be bound by the limitations with respect to the 
permissible amounts of such payment contained in sections 106(c), 120, 
and 130 of this title.''.

SEC. 204. TOLL ROADS, BRIDGES, TUNNELS, NON-TOLL ROADS THAT HAVE A 
              DEDICATED REVENUE SOURCE, AND FERRIES.

    Section 129 of title 23, United States Code, is amended--
            (1) by revising the title to read as follows:
``Sec. 129. Toll roads, bridges, tunnels, non-toll roads that have a 
              dedicated revenue source, and ferries'';
        and
            (2) by revising paragraph 129(a)(7) 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 
                or a non-toll project that has a dedicated revenue 
                source, specifically dedicated to such project or 
                projects under this section, to a public entity 
                constructing or proposing to construct a toll facility 
                or non-toll facility with a dedicated revenue source. 
                Dedicated revenue sources for non-toll facilities 
                include: excise taxes, sales taxes, motor vehicle use 
                fees, tax on real property, tax increment financing, or 
                such other dedicated revenue source as the Secretary 
                deems appropriate.
                    ``(B) Compliance with federal laws.--As a condition 
                of 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 Federal law, 
                including any applicable provision of Federal 
                environmental laws.
                    ``(C) Subordination of debt.--The amount of any 
                loan received for a qualifying project under this 
                paragraph may be subordinated to any other debt 
                financing for 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 is open to traffic.
                    ``(F) Term of loan.--The term of a loan to a public 
                or private entity shall not exceed 30 years from the 
                time the loan was obligated.
                    ``(G) Interest.--A loan made pursuant to this 
                paragraph shall bear interest 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 loan 
                        funds were available under title 23, United 
                        States Code, or Public Law 102-240; and
                            ``(ii) for the purchase of insurance or for 
                        use as a capital reserve for other forms of 
                        credit enhancement for project debt in order to 
                        improve credit market access or to lower 
                        interest rates.
                    ``(I) Guidelines.--The Secretary shall establish 
                procedures and guidelines for making loans pursuant to 
                this paragraph.''.

SEC. 205. STATE HIGHWAY DEPARTMENT.

    Section 302 of title 23, United States Code is amended to read as 
follows:
``Sec. 302. State highway department
    ``Any State desiring to avail itself of the provisions of this 
title shall have a State highway department which shall have adequate 
powers, and shall be suitably equipped and organized to discharge, to 
the satisfaction of the Secretary, the duties required by this title. 
This section does not restrict the eligibility of costs that may be 
claimed by a State nor limit a State's authority to engage the services 
of private professional firms.''.

SEC. 206. DONATION OF PRIVATE FUNDS, ASSETS, AND PUBLICLY OWNED RIGHT-
              OF-WAY FOR FEDERAL-AID PROJECTS.

    Section 323 of title 23, United States Code, relating to donations, 
is amended--
            (1) by redesignating subsection (c) as subsection (d);
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Credit for Donation of Private Funds, Assets, and Publicly 
Owned Right-of-Way.--Nothing in this title, or in any other provision 
of law should be construed to prevent a person from donating private 
funds or assets, or a State, county, city, or other political 
subdivision of a State from donating publicly owned right-of-way, in 
connection with a specific project constructed under this title. The 
State matching share for a project with respect to which Federal 
assistance is provided may be credited by the amount of the donated 
funds or the fair market value of publicly owned right-of-way 
incorporated into the project by the State highway agency under this 
title.''; and
            (3) by amending the first sentence of subsection (d), as so 
        redesignated, to read as follows:
    ``(d) Procedures.--A gift or donation in accordance with the above 
subsections may be made at any time during the development of a 
project.''.
SEC. 301. SHORT TITLE.

    This title may be cited as the ``State Infrastructure Bank 
Financing Improvement Act of 1995''.

SEC. 302. STATE INFRASTRUCTURE BANKS

    New Program.--Chapter 1 of title 23, United States Code, is amended 
by adding at the end thereof the following new section:
``Sec.    . State Infrastructure Banks
    ``(a) In General.--Subject to the requirements of this section, a 
State may establish a State Infrastructure Bank for making loans and 
providing other assistance to public or private entities constructing 
or proposing to construct or initiate transportation projects, 
programs, or activities that are eligible to receive assistance under 
this title or under Public Law 102-240, (hereafter also referred to in 
this section as a `qualifying project').
    ``(b) Deposits.--Notwithstanding any other provision of law, a 
State may deposit up to 15 percent of its apportionments under section 
104(b) and 144 for each respective apportionment category under those 
sections, except for Interstate construction, and up to 15 percent of 
its allocation under section 157 of this title, after such 
apportionment or allocation for the fiscal year, into a State 
Infrastructure Bank, not later than 120 days after the date of 
apportionment or allocation of such funds and distribution of 
obligation limitation to the States by the Secretary. The deposit into 
a State Infrastructure Bank of any apportionment under section 
104(b)(3) of this title shall be derived from the State's statewide 
flexible surface transportation program apportionment, unless the 
appropriate metropolitan planning organization agrees that urban or 
rural funds may be used. Federal disbursements of capital reserves 
shall be at a rate consistent with the Federal-aid highway program. A 
State may assign, transfer, or loan to another State's Infrastructure 
Bank, or to multi-State compact or entity, that establishes a State 
Infrastructure Bank, not more than the amount which a State is 
otherwise entitled to deposit into its State Infrastructure Bank.
    ``(c) Consultation With MPOs.--A State shall consult with 
metropolitan planning organizations with regard to the programming of 
any State Infrastructure Bank projects.
    ``(d) Applicability of Cash Management Requirements.--For funds 
used as a capital reserve, sections 3335 and 6503 of title 31, United 
States Code, shall not apply to this section.
    ``(e) Matching Requirements.--A State is required to deposit into 
the transportation infrastructure bank, from non-Federal or Federal 
sources other than title 23, United States Code, an amount equal to the 
proportional non-Federal share that a State would otherwise pay on the 
basis of section 120(b) of this title.
    ``(f) Investment Income.--Temporary investment income generated by 
the funds deposited into a transportation infrastructure bank shall 
be--
            ``(1) credited to the transportation infrastructure bank;
            ``(2) available for use in providing loans and other 
        assistance to qualifying projects, programs, or activities from 
        the transportation infrastructure bank; and
            ``(3) 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 activities.
    ``(g) Treatment of Federal Deposits.--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) Loans and Other Assistance.--
            ``(1) General authority.--From amounts deposited into a 
        transportation infrastructure bank established by a State or 
        multi-State entity under this section, a State or multi-State 
        entity may loan to a public or private entity, an amount equal 
        to all or part of the cost of construction or capital cost of a 
        qualifying transportation project eligible for funding under 
        this section.
            ``(2) Subordination of debt.--The amount of any loan or 
        other assistance received for a qualifying project under this 
        paragraph may be subordinated to any other debt financing for 
        the project.
            ``(3) Repayment.--The repayment of any loan from a State 
        transportation infrastructure bank shall commence not later 
        than 5 years after the facility has opened to traffic or the 
        project, activity or facility has been completed.
            ``(4) Term of loan.--The term for repaying such loan shall 
        not exceed 30 years from the date of obligation of the loan.
            ``(5) Interest.--Any loan from a State Infrastructure Bank 
        shall bear interest as the State determines appropriate to make 
        the qualifying project feasible.
            ``(6) Reuse of funds.--The repayment of a loan or other 
        assistance to a State from any loan under this section may be 
        credited to the transportation infrastructure bank or obligated 
        for any purpose for which the loaned funds were available under 
        this title.
            ``(7) Procedures and guidelines.--The Secretary shall 
        establish procedures and guidelines for establishing, 
        operating, and making loans from a State Infrastructure Bank.
            ``(8) Definition of other assistance.--For purposes of this 
        section, 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, and other forms of debt financing that relate to the 
        qualifying project.
            ``(9) Administrative costs.--For each fiscal year, a State 
        may use an amount not to exceed two percent of the Federal 
        funds deposited into a State Infrastructure Bank to provide for 
        the reasonable costs of administering such fund.
            ``(10) Annual reports.--A State or multi-State entity that 
        establishes a transportation infrastructure bank is required to 
        make an annual report to the Secretary on its status no later 
        than September 30 of each year.
            ``(11) Continuing federal deposits.--As a condition of 
        receiving continuing Federal deposits into a transportation 
        infrastructure bank, a State or multi-State entity must 
        maintain an investment grade rating on its debt issuances or 
        have a sufficient level of bond or debt financing instrument 
        insurance to maintain the viability of the fund and must have 
        filed its annual report with the Secretary.''.
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