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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5054 Introduced in House (IH)]

109th CONGRESS
  2d Session
                                H. R. 5054

To fund capital projects of State and local governments, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 30, 2006

Mr. LaTourette (for himself and Mr. Kucinich) introduced the following 
    bill; which was referred to the Committee on Transportation and 
Infrastructure, and in addition to the Committees on Financial Services 
   and the Budget, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To fund capital projects of State and local governments, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rebuilding America's 
Infrastructure''.

SEC. 2. FINDINGS AND PURPOSES DEFINITIONS.

    (a) Findings.--The Congress finds as follows:
            (1) Citizens chronically complain about the state of 
        America's public capital--about dilapidated school buildings, 
        condemned highway bridges, contaminated water supplies, and 
        other shortcomings of the public infrastructure.
            (2) In addition to inflicting inconvenience and endangering 
        health, the inadequacy of the public infrastructure adversely 
        affects productivity and the growth of the economy since public 
        investment, private investment, and productivity are intimately 
        linked.
            (3) For more than 2 decades, the United States Government 
        has retreated from public investment.
            (4) State and local governments, albeit to a lesser extent, 
        have also slowed public investments and State and local 
        taxpayers are frequently reluctant to approve bond issues to 
        finance public infrastructure.
            (5) In the early 1970s, nondefense public investment 
        accounted for about 3.2 percent of gross domestic product but 
        it now accounts for only 2.5 percent.
            (6) Widespread neglect of maintenance has contributed 
        substantially to the failure of the stock of public capital 
        assets to keep pace with the Nation's needs.
            (7) Net of depreciation, the real nondefense public capital 
        stock expanded in the past 2 decades at a pace only half that 
        set earlier in the post-World War II period.
            (8) Evidence of failures to maintain and improve 
        infrastructure is seen every day in such problems as unsafe 
        bridges, urban decay, dilapidated and over-crowded schools, and 
        inadequate airports.
            (9) The State departments of education collected data that 
        reveals at least $300,000,000,000 worth of unmet school 
        infrastructure needs.
            (10) This Act--
                    (A) is designed to help the Nation take a 
                significant step forward both in overcoming its 
                infrastructure deficit and in promoting the 
                productivity needed to meet the competitive challenges 
                of the 21st century; and
                    (B) represents fiscally sound planning and, in 
                salient ways, advances sound fiscal and monetary 
                operations.
    (b) Purposes.--The purposes of this Act are as follows:
            (1) To provide up to $50,000,000,000 a year on average for 
        mortgage loans, at zero percent interest, to State and local 
        governments for capital investment in types of infrastructure 
        projects specified by Congress in a way that would not affect 
        the conduct of a sound monetary policy based on price 
        stability.
            (2) To cut the overall cost of investment in infrastructure 
        projects about in half, depending on prevailing interest rates, 
        for State and local taxpayers.

SEC. 3. DEFINITIONS.

    For purposes of this Act, the following definitions apply:
            (1) Bank.--The term ``Bank'' means the Federal Bank for 
        Infrastructure Modernization established under section 4.
            (2) Board.--The term ``Board'' means the Board of Governors 
        of the Federal Reserve System.
            (3) Development.--The terms ``development'' and ``develop'' 
        mean, with respect to an infrastructure facility, any--
                    (A) preconstruction planning, feasibility review, 
                permitting and design work, and other preconstruction 
                activities; and
                    (B) construction, reconstruction, rehabilitation, 
                replacement, or expansion.
            (4) Indian reservation.--The term ``Indian reservation'' 
        has the same meaning as in section 4 of the Indian Child 
        Welfare Act of 1978 (16 U.S.C. 1903), and shall include land 
        held by incorporated Native groups, regional corporations, and 
        village corporations, as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act, public domain Indian 
        allotments, and former Indian reservations in the State of 
        Oklahoma.
            (5) Indian tribe.--The term ``Indian tribe'' means any 
        Indian tribe, band, pueblo, nation, or other organized group or 
        community, including any Alaska Native village or regional or 
        village corporation, as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
        seq.), which is recognized as eligible for the special programs 
        and services provided by the United States to Indians because 
        of their status as Indians.
            (6) Infrastructure facility.--The term ``infrastructure 
        facility'' means a road, highway, bridge, tunnel, airport, mass 
        transportation vehicle or system, passenger or freight rail 
        vehicle or system, intermodal transportation facility, 
        waterway, commercial port, drinking or waste water treatment 
        facility, solid waste disposal facility, pollution control 
        system, hazardous waste facility, federally designated national 
        information highway facility, public school, and any ancillary 
        facility which forms a part of any such facility or is 
        reasonably related to such facility, including a facility 
        necessary to comply with the Americans with Disabilities Act of 
        1990.
            (7) Regional or multistate organization.--The term 
        ``regional or multistate organization'' means an organization 
        established by an interstate compact between 2 or more States 
        which has been approved by the Congress.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (9) State.--The term ``State'' includes the District of 
        Columbia, Puerto Rico, Guam, American Samoa, the Trust 
        Territories of the Pacific Islands, the Virgin Islands, the 
        Northern Mariana Islands, and any territory of the United 
        States.

SEC. 4. FEDERAL BANK FOR INFRASTRUCTURE MODERNIZATION.

    (a) Establishment.--
            (1) In general.--There is hereby established a corporation 
        which shall be known as the Federal Bank for Infrastructure 
        Modernization.
            (2) Status.--The Bank shall be--
                    (A) an instrumentality of the United States 
                Government; and
                    (B) under the general supervision and direction of 
                the Secretary of the Treasury.
    (b) Management.--
            (1) Board of trustees.--The management of the Bank shall be 
        vested in the Board of Directors of the Federal Financing Bank.
    (c) Powers.--The Bank shall have the following powers:
            (1) To adopt, alter, and use a corporate seal.
            (2) To issue nonvoting capital stock in accordance with 
        section 5.
            (3) To enter into contracts and modify, or consent to the 
        modification of, any contract or agreement to which the Bank is 
        a party or in which the Bank has an interest under this 
        section.
            (4) To appoint, by the board of directors, such officers 
        and employees as the board of directors determines to be 
        necessary to carry out the provisions of this Act, to define 
        their duties, fix their compensation, require bonds of them and 
        fix the penalty thereof, and to dismiss at pleasure such 
        officers or employees.
            (5) To make advance, progress, or other payments.
            (6) To acquire, hold, lease, mortgage, maintain, or dispose 
        of, at public or private sale, real and personal property, 
        using any legally available private sector methods, and 
        otherwise exercise all the usual incidents of ownership of 
        property necessary and convenient to the operations of the 
        Bank.
            (7) To sue and be sued in its corporate capacity in any 
        court of competent jurisdiction.
            (8) To use the United States mails in the same manner and 
        under the same conditions as other departments and agencies of 
        the United States.
            (9) To prescribe bylaws that shall be consistent with law.
            (10) To make loans in accordance with section 7, subject to 
        the requirements of such section.

SEC. 5. CAPITALIZATION OF THE BANK.

    (a) Issuance and Sale of Stock.--The Bank may--
            (1) issue nonvoting capital stock under section 4(c)(2) 
        only at such times and in such amounts as--
                    (A) the Secretary determines to be appropriate for 
                the issuance of such stock; and
                    (B) the Board determines to be appropriate for the 
                purchase of such stock; and
            (2) sell such stock only to the Board or, at the Board's 
        direction, a Federal reserve bank.
    (b) Purchase of Capital Stock by Federal Reserve Board.--
            (1) In general.--During the 10-year period beginning on the 
        first day of the first fiscal year that begins after the date 
        of the enactment of this Act, and subject to subsection (c) and 
        the direction of the Federal Open Market Committee, the Board 
        of Governors of the Federal Reserve System, acting directly or 
        through any Federal reserve bank, shall invest in nonvoting 
        capital stock of the Bank at such times and in such amounts as 
        the Board determines to be appropriate under this section.
            (2) Average annual investment amount.--The amount invested 
        by the Board in the capital stock of the Bank under this 
        subsection shall average $50,000,000,000 a year over the 10-
        year period of investment in the Bank described in paragraph 
        (1).
    (c) Integration of Stock Purchases Into Open-Market Operations.--
            (1) In general.--The investment of the Board in stock of 
        the Bank under this section shall be integrated into the open-
        market operations of the Federal Open Market Committee under 
        section 12A of the Federal Reserve Act (12 U.S.C. 263) and the 
        directions of the Federal Open Market Committee to the Federal 
        reserve banks with regard to open-market operations shall take 
        into account, and may include directions with regard to, any 
        such investment.
            (2) Treatment of stock.--Capital stock of the Bank shall be 
        treated as obligations of an agency of the United States for 
        purposes of section 14(b)(2) of the Federal Reserve Act (12 
        U.S.C. 355).
    (d) Use of Capital.--The capital of the Bank may be used only for 
making loans under section 7.
    (e) Retirement of Stock.--Nonvoting stock issued under this section 
shall be repurchased and retired from amount received from the 
repayment of loans under section 7.

SEC. 6. BUDGET TREATMENT.

    (a) Nonapplicability of Provisions Applicable to Receipt and 
Expenditures of Revenue and Borrowed Funds.--For purposes of title 31, 
United States Code, the Congressional Budget and Impoundment Control 
Act of 1974, the Balanced Budget and Emergency Deficit Control Act of 
1985, the Budget Enforcement Act of 1990, or any other provision of 
law--
            (1) amounts received by the Bank in connection with the 
        sale of stock pursuant to section 5 shall not be treated as 
        revenue when it is received or made available to the Bank nor 
        shall it be treated as revenue by the Bank or by the Secretary 
        of the Treasury when the loans referred to in section 7 are 
        repaid;
            (2) the purchase or sale of stock pursuant to section 5 and 
        the interest-free loan program established under section 7--
                    (A) shall not be treated as budget authority, new 
                budget authority, budgetary resources, spending 
                authority, new spending authority, entitlement 
                authority, or credit authority;
                    (B) shall not be subject to apportionment or 
                sequestration other than in accordance with the 
                provisions of sections 4, 5, and 7; and
                    (C) shall not be taken into account in the 
                determination of the baseline for any fiscal year; and
            (3) the disbursement of money paid by the Board or received 
        by the Bank in connection with the purchase or sale of stock 
        pursuant to section 5 shall not be treated as an outlay or a 
        budget outlay.
    (b) Expenditure of Tax Revenue or Borrowed Funds not Authorized.--
No provision of this Act shall be construed as authorizing the 
expenditure of funds derived from revenues imposed and collected by the 
United States Government under any provision of law or from amounts 
borrowed by the United States Government pursuant to chapter 31 of 
title 31, United States Code, or any other provision of law.

SEC. 7. ISSUANCE OF INFRASTRUCTURE LOANS.

    (a) In General.--The Bank may make loans to eligible borrowers for 
the development of infrastructure facilities, if the Bank obtains such 
assurances as the Bank determines to be appropriate from the borrower 
that--
            (1) the funding of the project by the Bank was approved 
        by--
                    (A) a State certifying officer, in the case of an 
                infrastructure facility development project proposed by 
                a governmental unit within such State;
                    (B) the Secretary of the Interior, in the case of a 
                project proposed by an Indian tribe; or
                    (C) the State certifying officer of each State 
                involved, in the case of an infrastructure facility 
                development project proposed by a regional or 
                multistate organization;
            (2) the proceeds of such loan will be used solely for the 
        purpose of funding the development of any infrastructure 
        facility;
            (3) the borrower will establish and maintain over the life 
        of the loan a sinking fund or other amortizing mechanism that 
        would ensure that the repayment of the principal of the loan 
        will be made in accordance with the repayment schedule 
        contained in the loan documents; and
            (4) the Bank will have full access to such books and 
        records of the borrower as the Bank may, from time to time, 
        determine to be necessary to audit the borrower's compliance 
        with the terms and conditions of the loan.
    (b) No Interest.--Any loan made under this Act shall bear no 
interest.
    (c) Loan Requirements.--
            (1) Aggregate annual loan amounts.--The aggregate amount of 
        loan commitments made by the Bank in any year shall equal the 
        amount of the investment by the Board in the capital stock of 
        the Bank in such year.
            (2) Investment in public school infrastructure.--The 
        Secretary shall set up lending guidelines for loans under this 
        section to ensure that 20 percent of the total amount of all 
        loans made to States, units of general local government, or 
        Indian reservations are dedicated to investment in public 
        school infrastructure and facilities or other public 
        educational facilities.
    (d) Allocation Formula.--
            (1) In general.--The Secretary shall establish an 
        allocation formula, on the basis of the total population of 
        each State and Indian reservation, to determine the manner in 
        which the total amount of loan disbursements which may be made 
        in any year shall be allocated among the States and Indian 
        tribes.
            (2) Regional or multistate organization.--In developing an 
        allocation formula, the Secretary shall provide for the 
        allocation of loans to regional or multistate organizations 
        through appropriate adjustments of allocated amounts to the 
        States which established any such regional or multistate 
        organization.

SEC. 8. BORROWER ELIGIBILITY.

    (a) In General.--Subject to subsections (b) and (c), any State, any 
unit of general local government of a State, any Indian tribe, and any 
regional or multistate organization shall be eligible to borrow from 
the Bank under this Act to fund the development of infrastructure 
facilities.
    (b) State Certifying Officer.--No loans may be made to any State or 
any unit of general local government of any State, or to any regional 
or multistate organization to which such State is a party, unless the 
State has authorized an officer of the State to--
            (1) review all proposals by any officer or agency of the 
        State or any unit of general local government to develop an 
        infrastructure facility for which funding is sought from the 
        Bank;
            (2) select and approve the proposals which meet the 
        requirements of this Act for funding by the Bank consistent 
        with the allocation formula established by the Secretary of the 
        Treasury, including requirements of the Bank with regard to--
                    (A) the establishment of sinking funds or other 
                amortizing mechanisms to ensure timely repayment of any 
                loan; and
                    (B) the auditing of the books and records of the 
                recipient of the loan; and
            (3) ensure that--
                    (A) all proposals are financially responsible; and
                    (B) proposing parties have not previously defaulted 
                on any loan by the Bank under this Act.
    (c) Secretary of the Interior.--No loans may be made to any Indian 
tribe unless the Secretary of the Interior undertakes to--
            (1) review all proposals by any Indian tribe to develop an 
        infrastructure facility for which funding is sought from the 
        Bank; and
            (2) select and approve the proposals which meet the 
        requirements of this Act for funding by the Bank consistent 
        with the allocation formula established by the Secretary of the 
        Treasury, including requirements of the Bank with regard to--
                    (A) the establishment of sinking funds or other 
                amortizing mechanisms to ensure timely repayment of any 
                loan; and
                    (B) the auditing of the books and records of the 
                recipient of a loan.

SEC. 9. MADE IN AMERICA.

    (a) Findings.--The Congress finds the following:
            (1) Illegal steel dumping in domestic steel markets has 
        eroded the market for domestic steel.
            (2) The result of this erosion of the domestic steel market 
        has been the recent string of bankruptcies and mill closings of 
        steel companies.
            (3) Thousands of steel workers have lost their jobs as a 
        result of the bankruptcies and mill closings.
            (4) There are precedents for requirements that domestic 
        steel and iron products be used in cases where Federal monies 
        are involved in infrastructure projects.
    (b) Buy America.--
            (1) In general.--No loan may be issued for any 
        infrastructure facility development project unless the Bank 
        receives assurances from the appropriate State certifying 
        officer described in subsection (a)(1) or the Secretary of the 
        Interior, as the case may be, that the project meets the 
        requirements of the Buy America Act.
            (2) Regulations.--The Secretary shall prescribe such 
        regulations as the Secretary determines appropriate to carry 
        out this section.
            (3) Iron and steel products.--If any iron or steel product 
        is involved in any infrastructure facility development project, 
        such product does not meet the requirement of this section 
        unless all manufacturing processes involved in the production 
        of such product, including the application of any coating, have 
        taken place within the United States.

SEC. 10. LABOR STANDARDS.

    (a) In General.--All laborers and mechanics employed by contractors 
or subcontractors in the performance of any contract and subcontract 
for the construction, repair, renovation, or alteration, including 
painting and decorating, of any infrastructure facility development 
project that is financed in whole or in part by a loan under this Act, 
shall be paid wages not less than those determined by the Secretary of 
labor in accordance with the Act of March 3, 1931 (commonly known as 
the Davis-Bacon Act, 40 U.S.C. 276a--276a-5). The Secretary of Labor 
shall have the authority and functions set forth in Reorganization Plan 
of No. 14 of 1950 (64 Stat. 1267) and section 2 of the Act of June 1, 
1934 (commonly known as the Copeland Anti-Kickback Act) (40 U.S.C. 
276c).
    (b) Voluntary Project Labor Agreements.--
            (1) In general.--Any eligible borrower, as defined in 
        section 8 of this Act, may require that every contractor or 
        subcontractor on a project assisted by a loan under this Act 
        agree, for that project only, to negotiate or become a party to 
        a project labor agreement with 1 or more appropriate labor 
        organizations. The borrower has complete discretion whether to 
        include such a requirement--
                    (A) where a project labor agreement will advance 
                the procurement interest of the borrower in cost, 
                efficiency, and quality and in promoting labor-
                management stability as well as compliance with 
                applicable legal requirements governing safety and 
                health, equal employment opportunity, labor and 
                employment standards, and other matters; and
                    (B) where no laws applicable to the specific 
                construction project preclude the use of the proposed 
                project labor agreement.
            (2) Requirements.--Any project labor agreement reached 
        pursuant to this section--
                    (A) shall bind all contractors and subcontractors 
                on the construction project through the inclusion of 
                appropriate clauses in all relevant solicitation 
                provisions and contract documents;
                    (B) shall allow all contractors and subcontractors 
                wishing to compete for contracts and subcontracts on 
                the project to do so, without discrimination against 
                contractors, subcontractors, or employees based on 
                union or nonunion status;
                    (C) shall contain guarantees against strikes, 
                lockouts, and similar work disruptions;
                    (D) shall set forth effective, prompt, and mutually 
                binding procedures for resolving labor disputes arising 
                during the project;
                    (E) shall provide other mechanisms for labor-
                management cooperation on matters of mutual interest 
                and concern, including productivity, quality of work, 
                safety, and health; and
                    (F) shall fully conform to all applicable statutes 
                and regulations.
            (3) Voluntary agreements.--No provision of this section may 
        be construed as--
                    (A) requiring a borrower to use a project labor 
                agreement on any project;
                    (B) precluding use of a project labor agreement in 
                circumstances not covered under this section; or
                    (C) requiring contractors to enter into a project 
                labor agreement with any particular labor organization.
    (c) Rule of Construction.--No provision of this section may be 
construed as creating any right or benefit, substantive or procedural, 
enforceable by a non-Federal party against the United States, its 
departments, agencies or instrumentalities, its officers or employees, 
or any other person, including the borrower.

SEC. 11. ADMINISTRATIVE PROVISIONS.

    (a) Minimum Phase-in Period.--Loans made under section 7 shall be 
disbursed by the Bank immediately or over the construction or 
development period of the project as needed so as to accommodate more 
loan requests. The payout in any given year shall be no less than 20 
percent of the total amount authorized.
    (b) Period to Maturity.--The period to maturity of any loan made 
under section 7 shall not be less than 10 years nor more than 30 years, 
at the discretion of the borrower, but may be paid earlier.
    (c) Administrative Fees.--The Bank shall impose an administrative 
fee of not more than one-quarter of 1 percent on each recipient of a 
loan, sufficient to cover administrative costs incurred by the Bank, 
including overhead, in administering such loan.
    (d) Collection of Principal and Fees.--The Bank shall enforce 
collection of any loan in which 2 or more payments are due and payable. 
To that end, the Bank shall be empowered to enter Federal district 
court to seek an order to attach property of the borrower, up to the 
amount necessary to end the delinquency. The cost of collection shall 
be added to the balance of the loan. The borrower shall continue to 
make semiannual payments of the same amount until the entire balance, 
including fees, is paid.

SEC. 12. ABOLISHMENT OF BANK.

    (a) Winding Up Operations.--The Bank shall wind up the affairs of 
the Bank during the 6-month period ending on the date the last 
outstanding loan issued by the Bank under this Act is repaid.
    (b) Bank Abolished.--Effective at the end of the 30-day period 
beginning on the date described in subsection (a), the Bank is hereby 
abolished.
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