I 
108TH CONGRESS 
2D SESSION 
H. R. 4310
To direct the Secretary of Commerce to make noninterest bearing loans 
to State and local governments solely for the purpose of funding capital 
projects, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 6, 2004
Mr. LAHOOD (for himself, Mr. EMANUEL, Mr. HINCHEY, Mr. JEFFERSON, 
Mr. LATOURETTE, Mr. MANZULLO, Mr. SHIMKUS, and Mrs. JONES of 
Ohio) introduced the following bill; which was referred to the Committee 
on Government Reform 
A BILL 
To direct the Secretary of Commerce to make noninterest 
bearing loans to State and local governments solely for 
the purpose of funding capital 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 and Local Gov-
ernment Economic Empowerment Act’’.
SEC. 2. ELIGIBILITY OF STATE AND LOCAL GOVERNMENTS 
FOR INTEREST-FREE LOANS. 
(a) IN GENERAL.—Subject to subsection (b), each 
State, county, incorporated municipality, and Indian tribe 
shall be entitled to obtain a loan under section 3, unless 
such unit of government is delinquent in repaying a prior 
loan. 
(b) MAXIMUM
AMOUNT
LIMITATION.—The total 
amount of money to which any entity described in sub-
section (a) is entitled to borrow under this section shall 
not exceed the amount equal to the product of—
(1) the resident population, as determined by 
the Secretary on the basis of the 2000 census, of the 
geographic territory over which the entity has juris-
diction; and 
(2) the amount equal to—
(A) in the case of a State, $200; 
(B) in the case of a county (as defined in 
section 2 of title 1, United States Code), $200; 
(C) in the case of an incorporated munici-
pality, $600; and 
(D) in the case of an Indian tribe, $1,000. 
SEC. 3. INTEREST-FREE LOANS. 
Subject to sections 2(b) and 4, the Secretary shall 
issue an interest-free loan to any government unit de-
scribed in section 2(a) if the Secretary obtains such assur-
ances as the Secretary determines to be appropriate from 
the unit that the proceeds of such loan will be used solely 
for the purpose of funding capital projects of the govern-
mental unit, including the construction of or improve-
ments to—
(1) streets, highways, bridges, and tunnels; 
(2) water and sewer systems; 
(3) waste disposal systems; and 
(4) public buildings and other public facilities. 
SEC. 4. ADMINISTRATIVE PROVISIONS. 
(a) DISBURSEMENT REQUIREMENTS.—Loans made 
under section 3 shall be disbursed by the Secretary—
(1) in a lump sum for the full amount of the 
loan; or 
(2) if the Secretary determines that partial dis-
bursements are appropriate in the case of loans for 
construction projects in order to accommodate a 
greater number of loan requests, over the construc-
tion period of the project. 
(b) MINIMUM PHASE-IN PERIOD.—Disbursements on 
all eligible loans made under section 3 shall begin before 
the end of the 5-year period beginning on the date of en-
actment of this Act. 
(c) PERIOD TO MATURITY.—The period to maturity 
of any loan made under section 3 shall be the estimated
number of years of the useful life of the infrastructure 
installation (if any) which is financed by the loan, but, 
in any case, shall be a minimum of 10 years and a max-
imum of 30 years. 
(d) APPLICABILITY OF STATE LAW.—The number or 
the principal amounts of interest-free loans made under 
section 3 to any governmental unit established by a State, 
or the period to maturity of any such loan, may not exceed 
the maximum number, amount, or period to maturity es-
tablished under the law of such State, unless the State 
provides a waiver from any such limitation with respect 
to any such governmental unit. 
(e) ADMINISTRATIVE FEES.—The Secretary shall im-
pose an administrative fee on each recipient of a loan 
under section 3 in an amount not to exceed the lesser of—
(1) 0.25 percent of the total amount of the 
loan; or 
(2) an amount sufficient to cover all adminis-
trative costs incurred by the Secretary, including 
overhead, for making and administering the loan. 
(f) TERMS OF REPAYMENT.—The repayment terms 
of any loan made under section 3 shall require quarterly 
payments by the recipient in equal amounts determined 
by dividing—