II

103D CONGRESS

1ST SESSION S. 1714

To amend title 23, United States Code, to provide for the establishment

of State transportation investment loan funds, and for other purposes.

IN THE SENATE OF THE UNITED STATES

NOVEMBER 19 (legislative day, NOVEMBER 2), 1993

Mr. BAUCUS 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

establishment of State transportation investment loan

funds, and for other purposes.

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 ‘‘State Transportation

5 Financing Improvement Act of 1993’’.

6 SEC. 2. STATE TRANSPORTATION INVESTMENT LOAN

7 FUNDS.

8 Chapter 1 of title 23, United States Code, is amended

9 by adding at the end the following new section:
2

•S 1714 IS

1 ‘‘§ 161. State transportation investment loan funds

2 ‘‘(a) ESTABLISHMENT.—

3 ‘‘(1) IN GENERAL.—Subject to the require4 ments of this section and notwithstanding any other

5 provision of law, a State may establish a transpor6 tation revolving loan fund (referred to in this section

7 as a ‘transportation investment loan fund’) for mak8 ing loans and providing other assistance to public or

9 private entities constructing or proposing to con10 struct projects or programs that are eligible to re11 ceive assistance under section 133(b) (referred to in

12 this section as a ‘qualifying project’).

13 ‘‘(2) DETERMINATION OF DEPOSIT AND SPEND14 OUT RATES.—For each fiscal year, not later than 90

15 days after the date of enactment of an appropria16 tions Act that funds the majority of programs of the

17 Department of Transportation for the fiscal year,

18 the Secretary, in consultation with the Director of

19 the Office of Management and Budget and the Di20 rector of the Congressional Budget Office, in accord21 ance with recognized scorekeeping conventions, shall

22 establish a schedule for deposits and payments made

23 by or on behalf of a State with respect to a trans24 portation investment loan fund established pursuant

25 to paragraph (1) to meet the obligations of the State

26 referred to in paragraph (3).
3

•S 1714 IS

1 ‘‘(3) OBLIGATIONS AND DEPOSITS.—A State

2 may obligate for deposit in a transportation invest3 ment loan fund, from funds apportioned or allocated

4 to the State under sections 104(b)(3) and 157, an

5 amount not to exceed the sum of—

6 ‘‘(A) the discretionary 37.5 percent of the

7 remaining 80 percent of the surface transpor8 tation program funds apportioned to the State

9 under section 104(b)(3), as described in the

10 matter following clause (ii) of section

11 133(d)(3)(A); and

12 ‘‘(B) the difference between the amount al13 located to the State pursuant to section

14 157(a)(4) and the amount that is obligated to

15 urbanized areas of the State pursuant to sec16 tion 133(d)(3).

17 ‘‘(4) TREATMENT OF DEPOSITS.—Any amounts

18 deposited by a State pursuant to paragraph (3) shall

19 be considered an expenditure by the State.

20 ‘‘(5) APPLICABILITY OF CASH MANAGEMENT

21 REQUIREMENTS.—Sections 3335 and 6503 of title

22 31, United States Code, shall not apply to this sec23 tion.

24 ‘‘(b) STATE MATCHING REQUIREMENT.—
4

•S 1714 IS

1 ‘‘(1) ADDITIONAL DEPOSIT FROM NON-FED2 ERAL SOURCES.—At the same time as a State de3 posits funds under subsection (a) into a transpor4 tation investment loan fund, the State shall deposit

5 into the transportation investment loan fund from

6 non-Federal sources an additional amount of State

7 matching funds equal to—

8 ‘‘(A) the sum of—

9 ‘‘(i) the amount deposited pursuant to

10 subsection (a); and

11 ‘‘(ii) an amount equal to the propor12 tional non-Federal share that the State

13 would otherwise pay on the basis of the

14 amount, determined in accordance with

15 section 120(b); multiplied by

16 ‘‘(B) the percentage amount of the non17 Federal share for the State for a project carried

18 out by the State, determined in accordance with

19 section 120(b).

20 ‘‘(2) INVESTMENT INCOME.—All investment in21 come earned on amounts deposited into the trans22 portation investment loan fund shall be—

23 ‘‘(A) credited to the transportation invest24 ment loan fund; and
5

•S 1714 IS

1 ‘‘(B) available for use in providing loans

2 and other assistance from the transportation in3 vestment loan fund.

4 ‘‘(c) LOANS AND OTHER ASSISTANCE.—

5 ‘‘(1) GENERAL AUTHORITY.—From the

6 amounts deposited into a transportation investment

7 loan fund established by a State under this section,

8 a State may loan to a public or private entity an

9 amount equal to all or part of the cost of construct10 ing a qualifying project, or provide other assistance

11 with respect to a qualifying project.

12 ‘‘(2) COMPLIANCE WITH THE FEDERAL TRAN13 SIT ACT, FEDERAL ENVIRONMENTAL LAWS, AND

14 OTHER REQUIREMENTS.—As a condition of receiving

15 a loan or other assistance under this section, the

16 public or private entity that receives the loan or

17 other assistance shall comply with the requirements

18 of this title and any other applicable Federal law

19 (including any applicable provision of the Federal

20 Transit Act (49 U.S.C. App. 1601 et seq.) or a Fed21 eral environmental law).

22 ‘‘(3) SUBORDINATION OF DEBT.—The amount

23 of a loan or other assistance (if applicable) received

24 for a qualifying project under this subsection may be

25 subordinated to any other debt financing for the
6

•S 1714 IS

1 project or program, except that amount of the loan

2 or other assistance may not be subordinated to any

3 other loan made by a State or any other public en4 tity to the entity that receives the loan or other as5 sistance.

6 ‘‘(4) REPAYMENT.—The repayment of a loan or

7 other assistance (if applicable) made pursuant to

8 this subsection shall commence not later than 5

9 years after the qualifying project that is the subject

10 of the loan or other assistance has opened to traffic.

11 ‘‘(5) TERM OF LOAN.—The term of a loan

12 made pursuant to this subsection shall not exceed 30

13 years from the date of obligation of the loan.

14 ‘‘(6) INTEREST.—A loan made pursuant to this

15 subsection shall bear interest at a rate at or below

16 market interest rates, as determined by the State to

17 make the qualifying project that is the subject of the

18 loan feasible.

19 ‘‘(7) REUSE OF FUNDS.—The repayment of a

20 loan or other assistance (if applicable) provided pur21 suant to this subsection may be credited to the

22 transportation investment loan fund or obligated for

23 any purpose for which the funds were available.

24 ‘‘(8) PROCEDURES AND GUIDELINES.—Not

25 later than 180 days after the date of enactment of
7

•S 1714 IS

1 this section, the Secretary shall establish procedures

2 and guidelines for establishing, operating, and mak3 ing loans and providing other assistance from a

4 transportation investment loan fund.

5 ‘‘(d) DEFINITION OF OTHER ASSISTANCE.—As used

6 in this section, the term ‘other assistance’ includes any

7 use of funds—

8 ‘‘(1) to refinance outstanding debt used to fi9 nance a qualifying project if the State certifies that

10 any savings that result from the refinancing shall be

11 used to carry out the purposes of this title;

12 ‘‘(2) to guarantee or purchase insurance or

13 other forms of enhancement for borrower debt in

14 order to improve credit market access or to subsidize

15 interest rates; and

16 ‘‘(3) to provide a loan guarantee for a loan

17 made from the transportation investment loan fund.

18 ‘‘(e) OTHER USES OF THE TRANSPORTATION IN19 VESTMENT LOAN FUND.—

20 ‘‘(1) SOURCE OF REVENUE OR SECURITY FOR

21 BONDS.—Notwithstanding any other provision of

22 this section, a State may use funds from the trans23 portation investment loan fund of the State as secu24 rity for bonds and notes issued to provide capital in
8

•S 1714 IS

1 addition to the capital referred to in subsection

2 (a)(2) for the transportation investment loan fund.

3 ‘‘(2) ADMINISTRATIVE COSTS.—For each fiscal

4 year, a State may use an amount not to exceed 2

5 percent of the Federal funds deposited by the State

6 into the transportation investment loan fund of the

7 State to provide for the reasonable costs of admin8 istering the transportation investment loan fund.’’.

9 SEC. 3. LOANS OF FEDERAL FUNDS FOR THE CONSTRUC10 TION OF NONTOLL FACILITIES.

11 Chapter 1 of title 23, United States Code, as amend12 ed by section 2, is further amended by adding at the end

13 the following new section:

14 ‘‘§ 162. Loans of Federal funds for the construction of

15 nontoll facilities

16 ‘‘(a) IN GENERAL.—

17 ‘‘(1) LOANS.—A State may loan an amount

18 equal to all or part of the Federal share of a project

19 or program to a public or private entity constructing

20 or proposing to construct a nontoll facility if the re21 payment of the loan by the public or private entity

22 will be made from a dedicated revenue source, in23 cluding any excise tax, sales tax, motor vehicle use

24 fees, tax on real property, tax increment financing,

25 or other dedicated revenue sources.
9

•S 1714 IS

1 ‘‘(2) DEFINITION OF QUALIFYING PROJECT.—

2 As used in this section, the term ‘qualifying project’

3 means a project that meets the requirements of

4 paragraph (1).

5 ‘‘(b) COMPLIANCE WITH THE FEDERAL TRANSIT

6 ACT, FEDERAL ENVIRONMENTAL LAWS, AND OTHER RE7 QUIREMENTS.—As a condition of receiving a loan under

8 this section, the public or private entity that receives the

9 loan shall ensure that the qualifying project complies with

10 the requirements of this title and any other applicable law

11 (including any applicable provision of the Federal Transit

12 Act (49 U.S.C. App. 1601 et seq.) or a Federal environ13 mental law).

14 ‘‘(c) SUBORDINATION OF DEBT.—The amount of a

15 loan received for a project under this section may be sub16 ordinated to any other debt financing for the project, ex17 cept that the amount of the loan may not be subordinated

18 to the amount of any other loan made by the State or

19 any other public entity to the entity constructing the

20 project.

21 ‘‘(d) OBLIGATION OF FUNDS LOANED.—Funds

22 loaned pursuant to this section may be obligated for quali23 fying projects.

24 ‘‘(e) REPAYMENT.—The repayment of a loan made

25 pursuant to this section shall commence not later than 5
10

•S 1714 IS

1 years after the qualifying project that is the subject of

2 the loan has opened to traffic.

3 ‘‘(f) TERM OF LOAN.—The term of a loan made pur4 suant to this section shall not exceed 30 years from the

5 date of obligation of the loan.

6 ‘‘(g) INTEREST.—A loan made pursuant to this sec7 tion shall bear interest at a rate at or below market inter8 est rates, as determined by the State to make the qualify9 ing project that is the subject of the loan feasible.

10 ‘‘(h) REUSE OF FUNDS.—Amounts repaid to a State

11 from any loan made pursuant to this section may be obli12 gated—

13 ‘‘(1) for any purpose for which the loaned funds

14 were available; and

15 ‘‘(2) for—

16 ‘‘(A) the refinancing of outstanding debt

17 used to finance a qualifying project;

18 ‘‘(B) the guarantee or purchase of insur19 ance or other forms of enhancement for bor20 rower debt in order to improve credit market

21 access or to subsidize interest rates; or

22 ‘‘(C) the provision of a loan guarantee.

23 ‘‘(i) GUIDELINES.—Not later than 180 days after the

24 date of enactment of this section, the Secretary shall es-
11

•S 1714 IS

1 tablish procedures and guidelines for making loans pursu2 ant to this section.’’.

3 SEC. 4. TOLL ROADS.

4 Paragraph (7) of section 129(a) of title 23, United

5 States Code, is amended to read as follows:

6 ‘‘(7) LOANS.—

7 ‘‘(A) IN GENERAL.—A State may loan an

8 amount equal to all or part of the Federal share

9 of a toll project under this section to a public

10 or private entity constructing or proposing to

11 construct a toll project. As used in this para12 graph, the term ‘qualifying project’ means a

13 project referred to in the preceding sentence.

14 ‘‘(B) COMPLIANCE WITH THE FEDERAL

15 TRANSIT ACT, FEDERAL ENVIRONMENTAL

16 LAWS, AND OTHER REQUIREMENTS.—As a con17 dition to receiving a loan under this paragraph,

18 the public or private entity that receives the

19 loan shall ensure that the qualifying project

20 complies with the requirements of this title and

21 any other applicable law (including any applica22 ble provision of the Federal Transit Act (49

23 U.S.C. App. 1601 et seq.) or a Federal environ24 mental law).
12

•S 1714 IS

1 ‘‘(C) SUBORDINATION OF DEBT.—The

2 amount of a loan received for a qualifying

3 project under this paragraph may be subordi4 nated to any other debt financing for the

5 project, except that the amount of the loan may

6 not be subordinated to the amount of any other

7 loan made by the State or any other public en8 tity to the entity constructing the project.

9 ‘‘(D) OBLIGATION OF FUNDS LOANED.—

10 Funds loaned pursuant to this paragraph may

11 be obligated for qualifying projects.

12 ‘‘(E) REPAYMENT.—The repayment of a

13 loan made pursuant to this paragraph shall

14 commence not later than 5 years after the facil15 ity that is the subject of the loan has opened

16 to traffic.

17 ‘‘(F) TERM OF LOAN.—The term of a loan

18 to a private or public entity shall not exceed 30

19 years from the time that the loan was obligated.

20 ‘‘(G) INTEREST.—A loan made pursuant

21 to this paragraph shall bear interest at a rate

22 at or below market interest rates, as determined

23 by the State to make the qualifying project that

24 is the subject of the loan feasible.
13

•S 1714 IS

1 ‘‘(H) REUSE OF FUNDS.—Amounts repaid

2 to a State from a loan made under this para3 graph may be obligated—

4 ‘‘(i) for any purpose for which the

5 loaned funds were available; and

6 ‘‘(ii) for—

7 ‘‘(I) the refinancing of outstand8 ing debt used to finance a qualifying

9 project;

10 ‘‘(II) the guarantee or purchase

11 of insurance or other forms of en12 hancement for borrower debt in order

13 to improve credit market access or to

14 subsidized interest rates; or

15 ‘‘(III) the provision of a loan

16 guarantee.

17 ‘‘(I) GUIDELINES.—Not later than 180

18 days after the date of enactment of the State

19 Transportation Financing Improvement Act of

20 1993, the Secretary shall establish procedures

21 and guidelines for making loans pursuant to

22 this paragraph.’’.
14

•S 1714 IS

1 SEC. 5. CONFORMING AMENDMENT TO TABLE OF CON2 TENTS.

3 The chapter analysis at the beginning of chapter 1

4 of title 23, United States Code, is amended by adding at

5 the end the following new items:

‘‘161. State transportation investment loan funds.

‘‘162. Loans of Federal funds for the construction of nontoll facilities.’’.

Æ