I
104TH CONGRESS
1ST SESSION
H. R. 2439
To facilitate the establishment of State infrastructure banks to finance certain
transportation projects, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 29, 1995
Mr. MCCOLLUM (for himself and Mr. MICA) introduced the following bill;
which was referred to the Committee on Transportation and Infrastructure
A BILL
To facilitate the establishment of State infrastructure banks
to finance certain transportation projects, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘State Infrastructure
Banks Act of 1995’’.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress finds that—
(1) there are new financial concepts for trans-
portation programs which cannot be accommodated
within the structure of traditional Federal reim-
bursement programs; and
(2) States need more freedom in developing
methods to provide low-cost support for the public
half of developing public-private transportation part-
nerships.
(b) PURPOSE.—The purpose of this Act is to provide
States the option of using State infrastructure banks for
financing transportation projects.
SEC. 3. DEFINITIONS.
In this Act, the following definitions apply:
(1) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Transportation.
(2) STATE.—The term ‘‘State’’ has the mean-
ing such term has under section 401 of title 23,
United States Code.
(3) STATE INFRASTRUCTURE BANK.—The term
‘‘State infrastructure bank’’ means an infrastructure
investment fund created at the State or multi-State
level to provide the State with a variety of methods
of financing transportation projects.
SEC. 4. STATE INFRASTRUCTURE BANKS.
(a) CONSENT TO INTERSTATE COMPACTS.—Congress
grants consent to the States to establish State infrastruc-
ture banks and to enter into interstate compacts establish-
ing State infrastructure banks to promote regional or
multi-State investment in transportation infrastructure
and thereby improve economic productivity.
(b) ASSISTANCE FOR TRANSPORTATION PROJECTS,
PROGRAMS, AND ACTIVITIES.—A State or State infra-
structure bank established under this Act may make loans,
issue debt under the authority of the bank’s State jurisdic-
tions either jointly or separately as the bank and its juris-
dictions determine and provide other assistance to public
or private entities constructing, or proposing to construct
or initiate, transportation projects, programs, or activities
that are eligible to receive financial assistance under title
23, United States Code, or under the Intermodal Surface
Transportation Efficiency Act of 1991.
(c) FORMS OF ASSISTANCE.—A State infrastructure
bank may loan or provide other assistance to a public or
private entity in an amount equal to all or part of the
cost of construction or capital cost of a qualifying trans-
portation project. The amount of any loan or other assist-
ance received for a qualifying project under this Act may
be subordinated to any other debt financing for the
project. For purposes of this subsection, 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 fi-
fying transportation projects, programs, and ac-
tivities;
(3) provide that the repayment of a loan or
other assistance to a State from any loan under this
Act may be credited to the bank or obligated for any
purpose for which the loaned funds were available
under such title 23;
(4) ensure that any loan from the bank will
bear any positive interest the bank determines ap-
propriate to make the qualifying project, program,
or activity feasible;
(5) ensure that repayment of any loan from the
bank will commence not later than 5 years after the
facility has opened to traffic or the project, program,
or activity has been completed;
(6) ensure that the term for repaying any loan
will not exceed 30 years from the date of obligation
of the loan;
(7) limit any assignment, transfer, or loan to
the bank to not more than the amount which a State
transfers under subsection (f); and
(8) require the bank to make an annual report
to the Secretary on its status no later than Septem-
ber 30 of each year.
(e) SECRETARIAL REQUIREMENTS.—In administer-
ing this Act, the Secretary shall—
(1) ensure that Federal disbursements for cap-
ital reserves shall be at a rate consistent with his-
toric rates for the Federal-aid highway program; and
(2) specify procedures and guidelines for estab-
lishing, operating, and making loans from a State
infrastructure bank under this Act.
(f) CONTRIBUTIONS FROM TITLE 23 APPORTION-
MENTS.—(1) Notwithstanding the provisions of title 23,
United States Code, and the Intermodal Surface Trans-
portation Efficiency Act of 1991, a State may transfer to
a State infrastructure bank not to exceed 15 percent of
Federal funds apportioned under sections 104(b)(1),
104(b)(3), and 104(b)(5)(B) of such title and a cor-
responding amount of obligational authority. A State may
not transfer funds that are suballocated under such title.
(2) A State may disburse funds transferred under
paragraph (1) to a State infrastructure bank at a rate
that does not exceed the traditional rate of disbursement
for the Federal-aid highway program.
(g) UNITED STATES NOT OBLIGATED.—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 de-
posit. Furthermore, any security or debt financing instru-
ment 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) MANAGEMENT OF FEDERAL FUNDS.—Sections
3335 and 6503 of title 31, United States Code, shall not
apply to funds used as a capital reserve under this Act.
(i) PROGRAM ADMINISTRATION.—For each fiscal
year, a State may contribute to a State infrastructure
bank an amount not to exceed 2 percent of the Federal
funds deposited into the bank by the State to provide for
the reasonable costs of administering the bank.
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