I 

112TH CONGRESS 

1ST SESSION H. R. 2350 

To secure public investments in transportation infrastructure. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 24, 2011 

Mr. DEFAZIO (for himself, Ms. SLAUGHTER, Mr. RYAN of Ohio, and Mr. CARSON of Indiana) introduced the following bill; which was referred to the 

Committee on Transportation and Infrastructure, and in addition to the 

Committee on 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 secure public investments in transportation infrastructure. 

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 ‘‘Protecting Taxpayers 

5 in Transportation Asset Transfers Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) ASSET TRANSACTION.—The term ‘‘asset 

9 transaction’’ means— 


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1 (A) a concession agreement for a public 

2 transportation asset; or 

3 (B) a contract for the sale or lease of a 

4 public transportation asset between the State or 

5 local government with jurisdiction over the pub6 lic transportation asset and a private individual 

7 or entity. 

8 (2) CONCESSION AGREEMENT.— 

9 (A) IN GENERAL.—The term ‘‘concession 

10 agreement’’ means an agreement entered into 

11 by a private individual or entity and a State or 

12 local government with jurisdiction over a public 

13 transportation asset to convey to the private in14 dividual or entity the right to manage, operate, 

15 and maintain the public transportation asset for 

16 a specific period of time in exchange for the au17 thorization to impose and collect a toll or other 

18 user fee from a person for each use of the pub19 lic transportation asset during that period. 

20 (B) EXCLUSION.—The term ‘‘concession 

21 agreement’’ does not include an agreement en22 tered into by a State or local government and 

23 a private individual or entity for the construc24 tion of any new public transportation asset. 

25 (3) PUBLIC TRANSPORTATION ASSET.— 


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1 (A) IN GENERAL.—The term ‘‘public 

2 transportation asset’’ means a transportation 

3 facility of any kind that was or is constructed, 

4 maintained, or upgraded before, on, or after the 

5 date of enactment of this Act using Federal 

6 funds— 

7 (i)(I) the fair market value of which is 

8 more than $500,000,000, as determined by 

9 the Secretary; and 

10 (II) that has received any Federal 

11 funding, as of the date on which the deter12 mination is made; 

13 (ii) the fair market value of which is 

14 less than or equal to $500,000,000, as de15 termined by the Secretary; and 

16 (I) that has received $25,000,000 or 

17 more in Federal funding, as of the date on 

18 which the determination is made; or 

19 (iii) in which a significant national 

20 pubic interest (such as interstate com21 merce, homeland security, public health, or 

22 the environment) is at stake, as deter23 mined by the Secretary. 


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1 (B) INCLUSIONS.—The term ‘‘public trans2 portation asset’’ includes a transportation facil3 ity described in subparagraph (A) that is— 

4 (i) a Federal-aid highway (as defined 

5 in section 101 of title 23, United States 

6 Code); 

7 (ii) a highway or mass transit project 

8 constructed using amounts made available 

9 from the Highway Account or Mass Tran10 sit Account, respectively, of the Highway 

11 Trust Fund; 

12 (iii) an air navigation facility (as de13 fined in section 40102(a) of title 49, 

14 United States Code); or 

15 (iv) a train station or multimodal sta16 tion that receives a Federal grant, includ17 ing any grant authorized under the Pas18 senger Rail Investment and Improvement 

19 Act of 2008 (Public Law 110–432; 122 

20 Stat. 4907) or an amendment made by 

21 that Act. 

22 (4) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of Transportation. 


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1 SEC. 3. PROGRAM TO SECURE PUBLIC INVESTMENTS IN 

2 TRANSPORTATION INFRASTRUCTURE. 

3 (a) ESTABLISHMENT.—Not later than 180 days after 

4 the date of enactment of this Act, the Secretary shall es5 tablish a program under which a Federal lien shall be at6 tached to each public transportation asset. 

7 (b) PROHIBITION ON SALES AND LEASES.— 

8 (1) IN GENERAL.—A public transportation 

9 asset to which a lien is attached under subsection 

10 (a) may not be the subject of any asset transaction 

11 unless— 

12 (A) the lien is released in accordance with 

13 paragraph (2); 

14 (B)(i) the private individual or entity seek15 ing the asset transaction enters into an agree16 ment with the Secretary described in paragraph 

17 (3)(A)(i); and 

18 (ii) the State or local government or other 

19 public sponsor seeking the asset transaction en20 ters into an agreement with the Secretary de21 scribed in paragraph (3)(A)(ii); 

22 (C) the Secretary publishes a disclosure in 

23 accordance with paragraph (4); and 

24 (D) the State or local government seeking 

25 the asset transaction provides for public notice 


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1 and an opportunity to comment on the proposed 

2 asset transaction. 

3 (2) RELEASE OF LIENS.— 

4 (A) IN GENERAL.—A lien on a public 

5 transportation asset described in paragraph (1) 

6 may be released only if— 

7 (i) the State or local government or 

8 other public sponsor seeking the asset 

9 transaction for the public transportation 

10 asset pays to the Secretary an amount de11 termined by the Secretary under subpara12 graph (B); and 

13 (ii) the Secretary certifies that the re14 quired agreements described in paragraph 

15 (3) have been signed, and the terms of the 

16 agreements incorporated into the terms of 

17 the asset transaction, for the public trans18 portation asset. 

19 (B) DETERMINATION OF REPAYMENT

20 AMOUNT.—The Secretary shall determine the 

21 amount that is required to be paid for the re22 lease of a Federal lien on a public transpor23 tation asset under this paragraph, taking into 

24 account, at a minimum— 


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1 (i) the total amount of Federal funds 

2 that have been expended to construct, 

3 maintain, or upgrade the public transpor4 tation asset; 

5 (ii) the amount of Federal funding re6 ceived by a State or local government 

7 based on inclusion of the public transpor8 tation asset in calculations using Federal 

9 funding formulas or for Federal block 

10 grants; 

11 (iii) the reasonable depreciation of the 

12 public transportation asset, including the 

13 amount of Federal funds described in 

14 clause (i) that may be offset by that depre15 ciation; and 

16 (iv) the loss of Federal tax revenue 

17 from bonds relating to, and the tax con18 sequences of depreciation of, the public 

19 transportation asset. 

20 (3) AGREEMENTS.— 

21 (A) IN GENERAL.—As a condition of any 

22 new or renewed asset transaction for a public 

23 transportation asset— 

24 (i) the private individual or entity 

25 seeking the asset transaction shall enter 


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1 into an agreement with the Secretary, 

2 which shall be incorporated into the terms 

3 of the asset transaction, under which the 

4 private individual or entity agrees— 

5 (I) to disclose and eliminate any 

6 conflict of interest involving any party 

7 to the agreement; 

8 (II)(aa) to adequately maintain 

9 the condition and performance of the 

10 public transportation asset during the 

11 term of the asset transaction; and 

12 (bb) on the end of the term of 

13 the asset transaction, to return the 

14 public transportation asset to the ap15 plicable State or local government in a 

16 state of good repair; 

17 (III) to disclose an estimated 

18 amount of tax benefits and financing 

19 transactions over the life of the lease 

20 resulting from the lease or sale of the 

21 public transportation asset; 

22 (IV) to disclose anticipated 

23 changes in the workforce and wages, 

24 benefits, or rules over the life of the 


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1 lease and an estimate of the amount 

2 of savings from those changes; and 

3 (V) to provide an estimate of the 

4 revenue the transportation asset will 

5 produce for the private entity during 

6 the lease or sale period; and 

7 (ii) the State or local government or 

8 other public sponsor seeking the asset 

9 transaction for the public transportation 

10 asset shall enter into an agreement with 

11 the Secretary, which shall be incorporated 

12 into the terms of the asset transaction, 

13 under which the State or local government 

14 or other public sponsor agrees— 

15 (I) to pay to the Secretary the 

16 amount determined by the Secretary 

17 under paragraph (2)(B); 

18 (II) to conduct an assessment of 

19 whether, and provide justification 

20 that, the asset transaction with the 

21 private entity would represent a better 

22 public and financial benefit than a 

23 similar transaction using public fund24 ing or with a public (as opposed to 


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1 private) entity, including an assess2 ment of— 

3 (aa) the loss of toll revenues 

4 and other user fees relating to 

5 the public transportation asset; 

6 and 

7 (bb) any impacts on other 

8 public transportation assets in 

9 the vicinity of the public trans10 portation asset covered by the 

11 asset transaction; 

12 (III) that, if the private indi13 vidual or entity enters into bank14 ruptcy, becomes insolvent, or fails to 

15 comply with all terms and conditions 

16 of the asset transaction— 

17 (aa) the asset transaction 

18 shall immediately terminate; and 

19 (bb) the interest in the pub20 lic transportation asset conveyed 

21 by the asset transaction will im22 mediately revert to the public 

23 sponsor; 

24 (IV) to provide an estimate of all 

25 increased tolls and other user fees 


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1 that may be charged to persons using 

2 the public transportation asset during 

3 the term of the asset transaction; 

4 (V) to disclose any plans the 

5 State or local government seeking the 

6 asset transaction has for up-front 

7 payments or concessions from the pri8 vate individual or entity seeking the 

9 asset transaction; 

10 (VI) that the Federal Govern11 ment and the applicable State and 

12 local governments will retain respec13 tive authority and control over deci14 sions regarding transportation plan15 ning and management; and 

16 (VII) to prominently post or dis17 play the agreement on the website of 

18 the local government or public spon19 sor. 

20 (B) TERM.—An agreement under this 

21 paragraph shall not exceed a reasonable term, 

22 as determined by the Secretary, in consultation 

23 with the relevant State or local government. 

24 (4) PUBLICATION OF DISCLOSURE.—Not later 

25 than 90 days before the date on which an asset 


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1 transaction covering a public transportation asset 

2 takes effect, the Secretary shall publish in the Fed3 eral Register a notice that contains— 

4 (A) a copy of all agreements relating to the 

5 asset transaction between the Secretary and the 

6 public and private sponsors involved; 

7 (B) a description of the total amount of 

8 Federal funds that have been expended as of 

9 the date of publication of the notice to con10 struct, maintain, or upgrade the public trans11 portation asset; 

12 (C) the determination of the repayment 

13 amount under paragraph (2)(B) for the public 

14 transportation asset; 

15 (D) the amount of Federal funding re16 ceived by a State or local government based on 

17 inclusion of the public transportation asset in 

18 calculations using Federal funding formulas or 

19 for Federal block grants; and 

20 (E) a certification that the asset trans21 action will not adversely impact the national 

22 public interest of the United States (including 

23 the interstate commerce, homeland security, 

24 public health, and environment of the United 

25 States). 


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1 (5) RENEWAL OF ASSET TRANSACTION.—An 

2 asset transaction that expires or terminates may be 

3 renewed only if— 

4 (A) the Secretary— 

5 (i) calculates a new repayment 

6 amount under paragraph (2)(B) required 

7 for renewal, as the Secretary determines to 

8 be appropriate; 

9 (ii) takes into consideration the im10 pact of a renewed agreement on nearby 

11 public transportation assets; and 

12 (iii) publishes a new disclosure for the 

13 renewed agreement in accordance with 

14 paragraph (4); and 

15 (B) the State or local government seeking 

16 to renew the asset transaction— 

17 (i) provides for public notice and an 

18 opportunity to comment on the proposed 

19 renewal; 

20 (ii) pays to the Secretary the new 

21 amount calculated by the Secretary pursu22 ant to subparagraph (A)(i); and 

23 (iii) enters into a new agreement in 

24 accordance with paragraph (3) for the re25 newal. 


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1 (c) AMTRAK.— 

2 (1) IN GENERAL.—Subject to paragraph (2), 

3 the Secretary may permit a private individual or en4 tity to enter into an asset transaction covering all or 

5 any portion of the facilities and equipment of the 

6 National Railroad Passenger Corporation (referred 

7 to in this subsection as ‘‘Amtrak’’). 

8 (2) CONDITIONS.—A private individual or enti9 ty that seeks to enter into an asset transaction de10 scribed in paragraph (1) shall agree— 

11 (A) to enter into an agreement described 

12 in subsection (b)(3) with the Secretary covering 

13 the asset transaction; and 

14 (B) to pay to the Secretary an amount 

15 equal to the amount of Federal funds provided 

16 for Amtrak during the period of fiscal year 

17 1971 through the fiscal year in which an agree18 ment described in subsection (b)(3) covering the 

19 asset transaction is entered into, as adjusted 

20 by, as determined by the Secretary— 

21 (i) the reasonable depreciation of the 

22 portion of Amtrak facilities and equipment 

23 covered by the agreement, including that 

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1 trak that may be offset by that deprecia2 tion; 

3 (ii) the amount of Federal funding re4 ceived by a State or local government to 

5 upgrade any capital facilities owned or op6 erated by Amtrak to facilitate passenger 

7 rail service; and 

8 (iii) the loss of Federal tax revenue 

9 from bonds, Federal financing, or any tax 

10 advantages granted to Amtrak since fiscal 

11 year 1971, including financing and bond12 ing covered by or provided under the Tax13 payer Relief Act of 1997 (Public Law 105– 

14 34; 111 Stat. 788) or an amendment made 

15 by that Act. 

16 (3) TERM, DISCLOSURE, AND RENEWAL.—Para17 graphs (3)(B), (4), and (5) of subsection (b) shall 

18 apply to an asset transaction entered into under this 

19 subsection. 

20 (d) USE OF FUNDS BY SECRETARY.—Funds received 

21 by the Secretary as a payment under paragraph (2)(A)(i) 

22 or (5)(B)(ii) of subsection (b) or subsection (c)(2)(B) shall 

23 be available to and used by the Secretary, without further 

24 appropriation and to remain available until expended, for 

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1 portation mode as the mode of the public transportation 

2 asset for which the payment was received. 

3 (e) REGULATIONS.—Not later than 180 days after 

4 the date of enactment of this Act, the Secretary shall pro5 mulgate such regulations as are necessary to implement 

6 this Act. 

7 (f) REPORT TO CONGRESS.—Not later than 180 days 

8 after the date of enactment of this Act, and annually 

9 thereafter, the Secretary shall submit to Congress and 

10 publish in the Federal Register a report that describes 

11 each public transportation asset that is the subject of an 

12 asset transaction during the year covered by the report, 

13 including the total amount of Federal funds that were re14 ceived by a State or local government to construct, main15 tain, or upgrade the public transportation asset as of the 

16 date of submission of the report. 

17 (g) AUTHORIZATION OF APPROPRIATIONS.—There 

18 are authorized to be appropriated to carry out this Act 

19 such sums as are necessary. 

20 SEC. 4. BUDGETARY EFFECTS. 

21 The budgetary effects of this Act, for the purpose of 

22 complying with the Statutory Pay-As-You-Go Act of 2010, 

23 shall be determined by reference to the latest statement 

24 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

25 Act, submitted for printing in the Congressional Record 


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1 by the Chairman of the House Budget Committee, pro2 vided that such statement has been submitted prior to the 

3 vote on passage. 

Æ 


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