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. CAR-
SON 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 with-
in the jurisdiction of the committee concerned 
A BILL 
To secure public investments in transportation infrastructure. 
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 ‘‘Protecting Taxpayers 
in Transportation Asset Transfers Act’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) ASSET
TRANSACTION.—The term ‘‘asset 
transaction’’ means— 
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(A) a concession agreement for a public 
transportation asset; or 
(B) a contract for the sale or lease of a 
public transportation asset between the State or 
local government with jurisdiction over the pub-
lic transportation asset and a private individual 
or entity. 
(2) CONCESSION AGREEMENT.— 
(A) IN GENERAL.—The term ‘‘concession 
agreement’’ means an agreement entered into 
by a private individual or entity and a State or 
local government with jurisdiction over a public 
transportation asset to convey to the private in-
dividual or entity the right to manage, operate, 
and maintain the public transportation asset for 
a specific period of time in exchange for the au-
thorization to impose and collect a toll or other 
user fee from a person for each use of the pub-
lic transportation asset during that period. 
(B) EXCLUSION.—The term ‘‘concession 
agreement’’ does not include an agreement en-
tered into by a State or local government and 
a private individual or entity for the construc-
tion of any new public transportation asset. 
(3) PUBLIC TRANSPORTATION ASSET.— 
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(A) IN
GENERAL.—The term ‘‘public 
transportation asset’’ means a transportation 
facility of any kind that was or is constructed, 
maintained, or upgraded before, on, or after the 
date of enactment of this Act using Federal 
funds— 
(i)(I) the fair market value of which is 
more than $500,000,000, as determined by 
the Secretary; and 
(II) that has received any Federal 
funding, as of the date on which the deter-
mination is made; 
(ii) the fair market value of which is 
less than or equal to $500,000,000, as de-
termined by the Secretary; and 
(I) that has received $25,000,000 or 
more in Federal funding, as of the date on 
which the determination is made; or 
(iii) in which a significant national 
pubic interest (such as interstate com-
merce, homeland security, public health, or 
the environment) is at stake, as deter-
mined by the Secretary. 
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(B) INCLUSIONS.—The term ‘‘public trans-
portation asset’’ includes a transportation facil-
ity described in subparagraph (A) that is— 
(i) a Federal-aid highway (as defined 
in section 101 of title 23, United States 
Code); 
(ii) a highway or mass transit project 
constructed using amounts made available 
from the Highway Account or Mass Tran-
sit Account, respectively, of the Highway 
Trust Fund; 
(iii) an air navigation facility (as de-
fined in section 40102(a) of title 49, 
United States Code); or 
(iv) a train station or multimodal sta-
tion that receives a Federal grant, includ-
ing any grant authorized under the Pas-
senger Rail Investment and Improvement 
Act of 2008 (Public Law 110–432; 122 
Stat. 4907) or an amendment made by 
that Act. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Transportation. 
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SEC. 3. PROGRAM TO SECURE PUBLIC INVESTMENTS IN 
TRANSPORTATION INFRASTRUCTURE. 
(a) ESTABLISHMENT.—Not later than 180 days after 
the date of enactment of this Act, the Secretary shall es-
tablish a program under which a Federal lien shall be at-
tached to each public transportation asset. 
(b) PROHIBITION ON SALES AND LEASES.— 
(1) IN
GENERAL.—A public transportation 
asset to which a lien is attached under subsection 
(a) may not be the subject of any asset transaction 
unless— 
(A) the lien is released in accordance with 
paragraph (2); 
(B)(i) the private individual or entity seek-
ing the asset transaction enters into an agree-
ment with the Secretary described in paragraph 
(3)(A)(i); and 
(ii) the State or local government or other 
public sponsor seeking the asset transaction en-
ters into an agreement with the Secretary de-
scribed in paragraph (3)(A)(ii); 
(C) the Secretary publishes a disclosure in 
accordance with paragraph (4); and 
(D) the State or local government seeking 
the asset transaction provides for public notice 
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and an opportunity to comment on the proposed 
asset transaction. 
(2) RELEASE OF LIENS.— 
(A) IN
GENERAL.—A lien on a public 
transportation asset described in paragraph (1) 
may be released only if— 
(i) the State or local government or 
other public sponsor seeking the asset 
transaction for the public transportation 
asset pays to the Secretary an amount de-
termined by the Secretary under subpara-
graph (B); and 
(ii) the Secretary certifies that the re-
quired agreements described in paragraph 
(3) have been signed, and the terms of the 
agreements incorporated into the terms of 
the asset transaction, for the public trans-
portation asset. 
(B) 
DETERMINATION
OF
REPAYMENT 
AMOUNT.—The Secretary shall determine the 
amount that is required to be paid for the re-
lease of a Federal lien on a public transpor-
tation asset under this paragraph, taking into 
account, at a minimum— 
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(i) the total amount of Federal funds 
that have been expended to construct, 
maintain, or upgrade the public transpor-
tation asset; 
(ii) the amount of Federal funding re-
ceived by a State or local government 
based on inclusion of the public transpor-
tation asset in calculations using Federal 
funding formulas or for Federal block 
grants; 
(iii) the reasonable depreciation of the 
public transportation asset, including the 
amount of Federal funds described in 
clause (i) that may be offset by that depre-
ciation; and 
(iv) the loss of Federal tax revenue 
from bonds relating to, and the tax con-
sequences of depreciation of, the public 
transportation asset. 
(3) AGREEMENTS.— 
(A) IN GENERAL.—As a condition of any 
new or renewed asset transaction for a public 
transportation asset— 
(i) the private individual or entity 
seeking the asset transaction shall enter 
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into an agreement with the Secretary, 
which shall be incorporated into the terms 
of the asset transaction, under which the 
private individual or entity agrees— 
(I) to disclose and eliminate any 
conflict of interest involving any party 
to the agreement; 
(II)(aa) to adequately maintain 
the condition and performance of the 
public transportation asset during the 
term of the asset transaction; and 
(bb) on the end of the term of 
the asset transaction, to return the 
public transportation asset to the ap-
plicable State or local government in a 
state of good repair; 
(III) to disclose an estimated 
amount of tax benefits and financing 
transactions over the life of the lease 
resulting from the lease or sale of the 
public transportation asset; 
(IV) 
to 
disclose 
anticipated 
changes in the workforce and wages, 
benefits, or rules over the life of the 
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lease and an estimate of the amount 
of savings from those changes; and 
(V) to provide an estimate of the 
revenue the transportation asset will 
produce for the private entity during 
the lease or sale period; and 
(ii) the State or local government or 
other public sponsor seeking the asset 
transaction for the public transportation 
asset shall enter into an agreement with 
the Secretary, which shall be incorporated 
into the terms of the asset transaction, 
under which the State or local government 
or other public sponsor agrees— 
(I) to pay to the Secretary the 
amount determined by the Secretary 
under paragraph (2)(B); 
(II) to conduct an assessment of 
whether, and provide justification 
that, the asset transaction with the 
private entity would represent a better 
public and financial benefit than a 
similar transaction using public fund-
ing or with a public (as opposed to 
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private) entity, including an assess-
ment of— 
(aa) the loss of toll revenues 
and other user fees relating to 
the public transportation asset; 
and 
(bb) any impacts on other 
public transportation assets in 
the vicinity of the public trans-
portation asset covered by the 
asset transaction; 
(III) that, if the private indi-
vidual or entity enters into bank-
ruptcy, becomes insolvent, or fails to 
comply with all terms and conditions 
of the asset transaction— 
(aa) the asset transaction 
shall immediately terminate; and 
(bb) the interest in the pub-
lic transportation asset conveyed 
by the asset transaction will im-
mediately revert to the public 
sponsor; 
(IV) to provide an estimate of all 
increased tolls and other user fees 
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that may be charged to persons using 
the public transportation asset during 
the term of the asset transaction; 
(V) to disclose any plans the 
State or local government seeking the 
asset transaction has for up-front 
payments or concessions from the pri-
vate individual or entity seeking the 
asset transaction; 
(VI) that the Federal Govern-
ment and the applicable State and 
local governments will retain respec-
tive authority and control over deci-
sions regarding transportation plan-
ning and management; and 
(VII) to prominently post or dis-
play the agreement on the website of 
the local government or public spon-
sor. 
(B) TERM.—An agreement under this 
paragraph shall not exceed a reasonable term, 
as determined by the Secretary, in consultation 
with the relevant State or local government. 
(4) PUBLICATION OF DISCLOSURE.—Not later 
than 90 days before the date on which an asset 
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transaction covering a public transportation asset 
takes effect, the Secretary shall publish in the Fed-
eral Register a notice that contains— 
(A) a copy of all agreements relating to the 
asset transaction between the Secretary and the 
public and private sponsors involved; 
(B) a description of the total amount of 
Federal funds that have been expended as of 
the date of publication of the notice to con-
struct, maintain, or upgrade the public trans-
portation asset; 
(C) the determination of the repayment 
amount under paragraph (2)(B) for the public 
transportation asset; 
(D) the amount of Federal funding re-
ceived by a State or local government based on 
inclusion of the public transportation asset in 
calculations using Federal funding formulas or 
for Federal block grants; and 
(E) a certification that the asset trans-
action will not adversely impact the national 
public interest of the United States (including 
the interstate commerce, homeland security, 
public health, and environment of the United 
States). 
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(5) RENEWAL
OF
ASSET
TRANSACTION.—An 
asset transaction that expires or terminates may be 
renewed only if— 
(A) the Secretary— 
(i) 
calculates 
a 
new 
repayment 
amount under paragraph (2)(B) required 
for renewal, as the Secretary determines to 
be appropriate; 
(ii) takes into consideration the im-
pact of a renewed agreement on nearby 
public transportation assets; and 
(iii) publishes a new disclosure for the 
renewed agreement in accordance with 
paragraph (4); and 
(B) the State or local government seeking 
to renew the asset transaction— 
(i) provides for public notice and an 
opportunity to comment on the proposed 
renewal; 
(ii) pays to the Secretary the new 
amount calculated by the Secretary pursu-
ant to subparagraph (A)(i); and 
(iii) enters into a new agreement in 
accordance with paragraph (3) for the re-
newal. 
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(c) AMTRAK.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary may permit a private individual or en-
tity to enter into an asset transaction covering all or 
any portion of the facilities and equipment of the 
National Railroad Passenger Corporation (referred 
to in this subsection as ‘‘Amtrak’’). 
(2) CONDITIONS.—A private individual or enti-
ty that seeks to enter into an asset transaction de-
scribed in paragraph (1) shall agree— 
(A) to enter into an agreement described 
in subsection (b)(3) with the Secretary covering 
the asset transaction; and 
(B) to pay to the Secretary an amount 
equal to the amount of Federal funds provided 
for Amtrak during the period of fiscal year 
1971 through the fiscal year in which an agree-
ment described in subsection (b)(3) covering the 
asset transaction is entered into, as adjusted 
by, as determined by the Secretary— 
(i) the reasonable depreciation of the 
portion of Amtrak facilities and equipment 
covered by the agreement, including that 
amount of Federal funds provided for Am-
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trak that may be offset by that deprecia-
tion; 
(ii) the amount of Federal funding re-
ceived by a State or local government to 
upgrade any capital facilities owned or op-
erated by Amtrak to facilitate passenger 
rail service; and 
(iii) the loss of Federal tax revenue 
from bonds, Federal financing, or any tax 
advantages granted to Amtrak since fiscal 
year 1971, including financing and bond-
ing covered by or provided under the Tax-
payer Relief Act of 1997 (Public Law 105– 
34; 111 Stat. 788) or an amendment made 
by that Act. 
(3) TERM, DISCLOSURE, AND RENEWAL.—Para-
graphs (3)(B), (4), and (5) of subsection (b) shall 
apply to an asset transaction entered into under this 
subsection. 
(d) USE OF FUNDS BY SECRETARY.—Funds received 
by the Secretary as a payment under paragraph (2)(A)(i) 
or (5)(B)(ii) of subsection (b) or subsection (c)(2)(B) shall 
be available to and used by the Secretary, without further 
appropriation and to remain available until expended, for 
transportation projects and activities in the same trans-
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portation mode as the mode of the public transportation 
asset for which the payment was received. 
(e) REGULATIONS.—Not later than 180 days after 
the date of enactment of this Act, the Secretary shall pro-
mulgate such regulations as are necessary to implement 
this Act. 
(f) REPORT TO CONGRESS.—Not later than 180 days 
after the date of enactment of this Act, and annually 
thereafter, the Secretary shall submit to Congress and 
publish in the Federal Register a report that describes 
each public transportation asset that is the subject of an 
asset transaction during the year covered by the report, 
including the total amount of Federal funds that were re-
ceived by a State or local government to construct, main-
tain, or upgrade the public transportation asset as of the 
date of submission of the report. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this Act 
such sums as are necessary. 
SEC. 4. BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
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by the Chairman of the House Budget Committee, pro-
vided that such statement has been submitted prior to the 
vote on passage. 
Æ 
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