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(4) The private capital markets, including the
more than $4,500,000,000,000 dollars in capital
held by institutional investors such as pension funds,
have a growing interest in public-private infrastruc-
ture investment opportunities that can produce com-
petitive risk-adjusted rates of return.
(5) Federal leadership is necessary to expedi-
tiously develop these new infrastructure investment
mechanisms.
(6) Such leadership can best be accomplished
by the establishment of a self-supporting national
entity designed to lead the way in promoting appro-
priate public-private infrastructure partnerships and
by the creation of a public benefit bond designed to
facilitate investment by pension plans in infrastruc-
ture development.
(7) Such a national entity will provide for sig-
nificant and sustained job growth in critical sectors
of the Nation’s economy as it helps address unmet
infrastructure needs by leveraging limited Federal
resources with private capital.
SEC. 3. PURPOSES.
The purposes of this Act are as follows:
(1) To establish the National Infrastructure
Development Corporation for the purpose of making
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new sources of financing available for the develop-
ment of infrastructure facilities, and to facilitate the
use and issuance of public benefit bonds.
(2) To establish a subsidiary of the Corpora-
tion, the National Infrastructure Insurance Corpora-
tion, to issue insurance, reinsurance and related un-
dertakings in respect of the issuance of obligations
related to the development of infrastructure facili-
ties.
(3) To establish a category of financial instru-
ment to be known as ‘‘public benefit bonds’’ de-
signed to help facilitate pension plan investment in
the development of infrastructure facilities.
SEC. 4. DEFINITIONS.
The following definitions shall apply for purposes of
this Act unless the context requires otherwise:
(1) CORPORATION.—The term ‘‘Corporation’’
means the National Infrastructure Development
Corporation established under section 5(a).
(2) DEVELOPMENT.—The terms ‘‘development’’
and ‘‘develop’’ mean, with respect to an infrastruc-
ture facility, any—
(A) preconstruction planning, feasibility re-
view, permitting and design work and other
preconstruction activities;
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(B) construction, reconstruction, rehabili-
tation, replacement, or expansion; and
(C) operation and maintenance.
(3) ENTITY.—The term ‘‘entity’’ means an in-
dividual, corporation, partnership, joint venture,
trust or governmental entity or instrumentality.
(4) INFRASTRUCTURE
FACILITY.—The term
‘‘infrastructure facility’’ means a road, highway,
bridge, tunnel, airport, mass transportation vehicle
or system, passenger rail vehicle or system, inter-
modal transportation facility, waterway, commercial
port, drinking or waste water treatment facility,
solid waste disposal facility, pollution control system,
hazardous waste facility, federally designated na-
tional information highway facility, school, and any
ancillary facility which forms a part of any such fa-
cility or is reasonably related to such facility, wheth-
er owned, leased or operated by a public entity or a
private entity or by a combination of such entities,
and the financing or refinancing of the development
of which is, or will be, supported in whole or in part
by user fees or other dedicated revenue sources.
(5) INSURANCE CORPORATION.—The term ‘‘In-
surance Corporation’’ means the National Infra-
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structure Insurance Corporation established pursu-
ant to section 5(b).
(6) NIC.—The term ‘‘NIC’’ means the Cor-
poration and all subsidiaries of the Corporation.
(7) PENSION PLAN.—The term ‘‘pension plan’’
means a pension plan as defined in section 3(2) of
the Employee Retirement Income Security Act of
1974, including any public pension plan.
(8) PUBLIC BENEFIT BOND.—The term ‘‘public
benefit bond’’ means a bond or other indebtedness
meeting the requirements of section 72(w) of the In-
ternal Revenue Code of 1986.
(9) PUBLIC-PRIVATE PARTNERSHIP.—The term
‘‘public-private partnership’’ means any entity—
(A) which is undertaking the development
of all or part of any infrastructure facility—
(i) pursuant to requirements estab-
lished in 1 or more contracts between such
entity and a State or an instrumentality of
a State; or
(ii) the activities of which with respect
to such facility are subject to regulation by
a State or any instrumentality of a State;
and
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(B) which owns, leases, or operates, or will
own, lease, or operate, such infrastructure facil-
ity in whole or in part, and at least 1 of the
participants in such entity is a nongovern-
mental entity.
(10) REVOLVING FUND.—The term ‘‘revolving
fund’’ means a fund or program established by a
State or a political subdivision or instrumentality of
a State, the principal activity of which is to make
loans, commitments, or other financial accommoda-
tion available for the development of 1 or more cat-
egories of infrastructure facilities.
(11) 
SECRETARY.—The 
term 
‘‘Secretary’’
means the Secretary of the Treasury or the designee
of the Secretary.
(12) 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.
(13) TRANSITION DATE.—The term ‘‘transition
date’’ means the date on which the voting common
stock of the Corporation owned by the Secretary is
fully repurchased or converted in accordance with
section 13 and the transition of the Corporation to
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a government-sponsored enterprise in accordance
with such section is completed.
SEC. 5. ESTABLISHMENT OF NIC.
(a) ESTABLISHMENT
OF NATIONAL INFRASTRUC-
TURE DEVELOPMENT CORPORATION.—The National In-
frastructure Development Corporation is hereby estab-
lished as a wholly owned Government corporation subject
to chapter 91 of title 31 (commonly referred to as the Gov-
ernment Corporation Control Act), except as otherwise
provided in this Act.
(b) ESTABLISHMENT
OF NATIONAL INFRASTRUC-
TURE INSURANCE CORPORATION.—The National Infra-
structure Insurance Corporation is hereby established as
a subsidiary of the Corporation and as a wholly owned
Government corporation subject to chapter 91 of title 31,
except as otherwise provided in this Act.
(c) SELF-SUPPORTING ENTITIES.—The Corporation
and the Insurance Corporation shall each conduct their
respective businesses as self-supporting entities.
SEC. 6. CORPORATION’S POWERS AND LIMITATIONS.
(a) GENERAL POWERS.—In order to carry out the
purposes of the Corporation as set forth in this Act, the
Corporation shall have the following powers:
(1) To make senior and subordinated loans and
purchase senior and subordinated debt securities
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(both taxable and tax exempt) and equity securities,
and enter into a binding commitment to make any
such loan or purchase any such security, on such
terms as the Corporation may determine, in the Cor-
poration’s discretion, to be appropriate, the proceeds
of which are to be used to finance or refinance the
development of 1 or more infrastructure facilities,
and subject to the provisions of paragraph (8) of
subsection (b), provide preconstruction phase assist-
ance in accordance with section 8(f).
(2) To issue and sell debt securities and voting
and nonvoting equity securities of the Corporation
on such terms as the board of directors of the Cor-
poration may determine, subject to the provisions of
paragraphs (2), (3), and (4) of subsection (b), to be
appropriate and to pay such dividends on any out-
standing stock as the board of directors shall deter-
mine from time to time.
(3) To make the determinations with respect to
public benefit bonds pursuant to section 72(w) of
the Internal Revenue Code of 1986.
(4) To make agreements and contracts with any
entity in furtherance of the business of the Corpora-
tion.
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(5) To make use of the services, facilities, and
property of any Federal agency or instrumentality,
with the approval of such agency or instrumentality
and on a reimbursable basis, in carrying out the
purposes of this Act.
(6) To acquire, lease, pledge, exchange, and dis-
pose of real and personal property and otherwise ex-
ercise all the usual incidents of ownership of prop-
erty to the extent the exercise of such powers are ap-
propriate to and consistent with the purposes of the
Corporation.
(7) To sue and be sued in the Corporation’s
corporate capacity in any court of competent juris-
diction, except that no attachment, injunction, or
similar process, mesne or final, may be issued
against the property of the Corporation or against
the Corporation with respect to such property.
(8) To indemnify the directors and officers of
the Corporation for liabilities arising out of the ac-
tions of the directors and officers in such capacity,
in accordance with, and subject to the limitations
contained in, the bylaws of the Corporation.
(9) To exercise all other lawful powers which
are necessary or appropriate to carry out, and are
consistent with, the purposes of the Corporation, in-
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cluding the powers conferred upon a corporation by
the District of Columbia Business Corporation Act.
(b) LIMITATIONS ON THE CORPORATION.—
(1) ACTIONS CONSISTENT WITH SELF-SUPPORT-
ING ENTITY STATUS.—The Corporation shall con-
duct its business in a manner consistent with the re-
quirement of section 5(c).
(2) CONDITION ON DEBT ISSUANCE.—The Cor-
poration shall not issue any debt security under sub-
section (a)(2) unless, at the time of the issuance
thereof, such security is rated by a nationally recog-
nized statistical rating organization at 1 of the 3
highest ratings of such organization.
(3) LIMITATION AND CONDITION ON ISSUANCE
OF DEBT AND NONVOTING EQUITY SECURITIES.—
(A) IN
GENERAL.—Before the transition
date, the Corporation shall not issue any debt
security or nonvoting equity security under sub-
section (a)(2) without the prior consent of the
Secretary.
(B) APPROVAL OF SECRETARY FOR DEBT
SECURITY AFTER TRANSITION DATE.—On and
after the transition date, the Corporation shall
not issue any debt security under subsection
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(a)(2) without the prior consent of the Sec-
retary.
(4) CONDITION
ON
VOTING
EQUITY
ISSU-
ANCE.—Before the transition date, the Corporation
shall not issue any voting security to any entity
other than the Secretary, and, on and after the tran-
sition date, the issuance of any such security shall
be subject to the provisions of section 13.
(5) SALE OF VOTING SECURITIES OF THE IN-
SURANCE
CORPORATION.—Before 
the 
transition
date, voting securities of the Insurance Corporation
purchased by the Corporation may not be sold or
otherwise transferred by the Corporation.
(6) INVESTMENTS CONSISTENT WITH PURPOSES
OF CORPORATION.—In order to achieve the Corpora-
tion’s purpose of effectively leveraging limited Fed-
eral resources with other public and private sources
of capital, the Corporation shall seek to maintain a
significant proportion of the Corporation’s infra-
structure investments in—
(A) subordinated securities; and
(B) securities issued with respect to infra-
structure facilities developed by public-private
partnerships.
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(7) COORDINATION
WITH
STATE
AND
LOCAL
REGULATORY AUTHORITY.—The provision of finan-
cial assistance by the Corporation pursuant to this
Act shall not be construed as—
(A) limiting the right of any State or local
authority to approve or regulate rates of return
on private equity invested in a project; or
(B) otherwise superseding any State law or
regulation applicable to a project.
(8) LIMITATION ON PRECONSTRUCTION ASSIST-
ANCE.—The Corporation shall provide assistance in
connection with the development of any infrastruc-
ture facility during the facility’s preconstruction
phase only in accordance with section 8(f).
SEC. 7. INSURANCE CORPORATION’S POWERS AND LIMITA-
TIONS.
(a) GENERAL POWERS.—In order to carry out the
purposes of the Insurance Corporation as set forth in this
Act, the Insurance Corporation shall have the following
powers:
(1) To insure and reinsure bonds, debentures,
notes, debt instruments, loans, and any interest in
any such obligation or loan, the proceeds of which
are to be used to finance or refinance the develop-
ment of 1 or more infrastructure facilities.
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(2) To insure leases of personal, real, or mixed
property with respect to infrastructure facilities.
(3) To issue letters of credit and undertake
such obligations and commitments as the Insurance
Corporation deems necessary to carry out the pur-
poses described in paragraphs (1) and (2).
(4) To issue and sell voting and nonvoting eq-
uity securities on such terms as the board of direc-
tors of the Insurance Corporation may determine,
subject to the provisions of paragraphs (5) and (6)
of subsection (b), to be appropriate and to pay divi-
dends on any outstanding stock as the board of di-
rectors of the Insurance Corporation shall determine
from time to time.
(5) To make agreements and contracts with any
entity in furtherance of the business of the Insur-
ance Corporation.
(6) To make use of the services, facilities, and
property of any Federal agency or instrumentality,
with the approval of such agency or instrumentality
and on a reimbursable basis, in carrying out the
purposes of this Act.
(7) To acquire, lease, pledge, exchange, and dis-
pose of real and personal property and otherwise ex-
ercise all the usual incidents of ownership of prop-
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erty to the extent the exercise of such powers are ap-
propriate to and consistent with the purposes of the
Insurance Corporation.
(8) To sue and be sued in the Insurance Cor-
poration’s corporate capacity in any court of com-
petent jurisdiction, except that no attachment, in-
junction, or similar process, mesne or final, may be
issued against the property of the Insurance Cor-
poration or against the Insurance Corporation with
respect to such property.
(9) To indemnify the directors and officers of
the Insurance Corporation for liabilities arising out
of the actions of the directors and officers in such
capacity, in accordance with, and subject to the limi-
tations contained in, the bylaws of the Insurance
Corporation.
(10) To exercise all other lawful powers which
are necessary or appropriate to carry out, and are
consistent with, the purposes of the Insurance Cor-
poration, including the powers conferred upon a cor-
poration by the District of Columbia Business Cor-
poration Act.
(b) LIMITATIONS
ON
THE INSURANCE CORPORA-
TION.—
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less than 75 percent of the principal amount of all
obligations so insured or subject of a letter of credit
shall be obligations which are, or based on a pub-
lished or indicative rating would be, without such in-
surance or letter of credit, rated by a nationally rec-
ognized statistical rating organization in the fourth
or fifth rating categories of such organization (BBB
and BB; Baa and Ba, or their equivalents).
(5) PRIOR
CONSENT
OF
SECRETARY.—Before
the transition date, the Insurance Corporation shall
not issue any nonvoting equity security under sub-
section (a)(4) without the prior consent of the Sec-
retary.
(6) CONDITION
ON
VOTING
EQUITY
ISSU-
ANCE.—Before the transition date, the Insurance
Corporation shall not issue any voting security to
any entity other than the Corporation.
(7) COORDINATION
WITH
STATE
AND
LOCAL
REGULATORY AUTHORITY.—The provision of finan-
cial assistance by the Insurance Corporation pursu-
ant to this Act shall not be construed as—
(A) limiting the right of any State or local
authority to approve or regulate rates of return
on private equity invested in a project; or
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(B) otherwise superseding any State law or
regulation applicable to a project.
SEC. 8. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM THE
CORPORATION AND THE INSURANCE COR-
PORATION.
(a) GENERAL.—No financial assistance shall be avail-
able under this Act from the Corporation or the Insurance
Corporation unless the applicant for such assistance has
demonstrated to the satisfaction of the Corporation or the
Insurance Corporation, as the case may be, that the
project for which such assistance is being sought meets—
(1) the requirements of this Act; and
(2) any criteria established in accordance with
this Act by the board of directors of the Corporation
or the Insurance Corporation, as the case may be.
(b) ESTABLISHMENT OF PROJECT CRITERIA.—
(1) IN GENERAL.—Consistent with the require-
ments of subsections (c) and (d), the boards of di-
rectors of the Corporation and the Insurance Cor-
poration shall each establish—
(A) criteria for determining eligibility for
financial assistance under this Act;
(B) disclosure and application procedures
to be followed by States, revolving funds, and
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other entities to nominate projects for assist-
ance under this Act; and
(C) such other criteria as the board of di-
rectors of the Corporation or the Insurance
Corporation may consider to be appropriate for
purposes of carrying out this Act.
(2) FACTORS TO BE TAKEN INTO ACCOUNT.—
The criteria established pursuant to paragraph
(1)(A) shall provide for the consideration of the fol-
lowing factors in considering eligibility for financial
assistance under this Act:
(A) The extent to which provision of assist-
ance by the Corporation or the Insurance Cor-
poration will further the objectives for infra-
structure investments established in Executive
Order No. 12893 of January 26, 1994, includ-
ing the stated objective of providing opportuni-
ties for ‘‘innovative public-private initiatives’’.
(B) The means by which development of
the infrastructure facility under consideration is
being financed, including—
(i) the terms and conditions and fi-
nancial structure of the proposed financ-
ing;
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(ii) the financial assumptions and pro-
jections on which the project is based; and
(iii) based on consideration of clauses
(i) and (ii), whether the infrastructure fa-
cility will have the capacity to be self-sup-
porting.
(C) The likelihood that the provision of as-
sistance by the Corporation or the Insurance
Corporation will cause such development to pro-
ceed more promptly and with lower costs for fi-
nancing to the public and private entities en-
gaged in developing such infrastructure facility
than would be the case without such assistance.
(D) The extent to which the provision of
assistance by the Corporation or the Insurance
Corporation maximizes the level of private in-
vestment in such infrastructure facility.
(3) LIMITATION
ON
CONDITIONS.—The Cor-
poration and the Insurance Corporation shall not
condition the approval of financial assistance for the
development of any infrastructure facility on a re-
quirement that a pension plan of a State or political
subdivision of a State make an investment in such
facility.
(c) SUBMISSION OF PROJECT PROPOSALS.—
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(1) ACCEPTANCE
OF
PROPOSALS.—The Cor-
poration and the Insurance Corporation shall accept,
for consideration, project proposals relating to the
development of infrastructure facilities submitted by
a State, a revolving fund, or another entity, subject
to subsection (d), which meet the requirements of
subsection (b).
(2) LIST OF PROJECTS UNDER CONSIDERATION
FOR ASSISTANCE.—Project proposals accepted pur-
suant to paragraph (1) and approved in principle
shall be placed on a list of projects being considered
for financial assistance under this Act.
(3) ELIGIBILITY
FOR
PRECONSTRUCTION
AS-
SISTANCE.—Projects on the list established pursuant
to paragraph (2) shall be eligible to apply for
preconstruction assistance in accordance with sub-
section (f).
(4) SUBSEQUENT
APPROVALS.—Notwithstand-
ing the receipt of any preconstruction assistance for
any project, no additional financial assistance under
this Act for such project may be provided without
the specific approval by the Corporation or the In-
surance Corporation, as the case may be, for such
additional assistance.
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(5) FEES.—A fee may be charged for the re-
view of any project proposal in such amount as may
be deemed appropriate by the Corporation or the In-
surance Corporation to cover the cost of such review.
(d) STATE ELIGIBILITY.—
(1) IN GENERAL.—After the end of the 3-year
period beginning on the date of the enactment of
this Act, no financial assistance may be provided by
the Corporation or the Insurance Corporation for
the development of any infrastructure facility pro-
posed for assistance by a State, or a revolving fund
in a State, unless such State has in place—
(A) an evaluation process which is certified
by the Secretary, in accordance with regulations
which the Secretary shall prescribe before the
end of the 6-month period beginning on such
date of enactment, as being designed to ascer-
tain the extent to which major work with re-
spect to infrastructure facilities within the
State can be financed by relying on any revenue
reasonably obtainable from such facilities and
other dedicated revenue sources; and
(B) a program which is certified by the
Secretary, in accordance with regulations which
the Secretary shall prescribe before the end of
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such 6-month period, as being reasonably de-
signed to promote the objective set forth in Ex-
ecutive Order No. 12893 of January 26, 1994,
of affording the opportunity for innovative pub-
lic-private initiatives with respect to major
work, consistent with the public interest.
(2) ACTIVITIES WITH NONSTATE ENTITIES.—
After the end of the 3-year period beginning on the
date of the enactment of this Act, the Corporation
and the Insurance Corporation each may continue to
undertake activities with respect to projects within a
State relating to the development of infrastructure
facilities which have been submitted by entities other
than such State or a revolving fund in such State,
including municipalities, regional authorities, and
private-public partnerships, if the infrastructure fa-
cilities meet the criteria for assistance established
pursuant to subsection (b), and the State or States
in which such facility or facilities are to be located
have not met the conditions of subsection (d)(1).
(3) MAJOR WORK DEFINED.—For purposes of
paragraph (1), the term ‘‘major work’’ means the
construction of a new infrastructure facility, or the
reconstruction, rehabilitation, replacement, or expan-
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sion of an existing infrastructure facility, involving
the expenditure of more than $10,000,000.
(e) 
INITIAL
TARGETING
OF
READY-TO-GO
PROJECTS.—During the 3-year period beginning on the
date of the enactment of this Act, the Corporation and
the Insurance Corporation shall each seek to provide as-
sistance to projects involving the development of infra-
structure facilities which—
(1) the Corporation or the Insurance Corpora-
tion, as the case may be, determines are ready to
move forward promptly; and
(2) meet all other requirements of this Act.
(f) DEVELOPMENT RISK INSURANCE.—
(1) IN GENERAL.—Any project on the list es-
tablished pursuant to subsection (c)(2) shall be eligi-
ble to apply to the Corporation for development risk
insurance in accordance with this subsection to in-
sure against the risk of loss that would result if a
project does not proceed within a specified time
frame as the result of the failure to secure relevant
permits or specified Federal, State, or local approv-
als.
(2) TERMS AND SCOPE OF COVERAGE.—Devel-
opment risk insurance provided under this sub-
section shall—
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(A) contain such limitations, deductibles,
exclusions, and exceptions as the Corporation
shall establish; and
(B) apply only to developmental costs in-
curred after the date of the approval of the ap-
plication for such insurance.
(3) 
MAXIMUM
ON
INSURANCE
OF
PRECONSTRUCTION
RISK.—The Corporation shall
not 
insure 
more 
than 
percent 
of 
the
preconstruction phase development risk of any
project, as determined by the Corporation.
(4) ADDITIONAL
CONDITIONS.—The Corpora-
tion may impose such other conditions and require-
ments in connection with any insurance provided
under this subsection as the Corporation may deter-
mine to be appropriate, including requirements for
audits of costs and other matters.
(5) FEES FOR INSURANCE.—The Corporation
may charge such fees and obtain such other com-
pensation for providing insurance coverage under
this subsection as the Corporation, in the Corpora-
tion’s discretion, shall determine to be appropriate.
(6) MAXIMUM EXPOSURE OF CORPORATION.—
The total outstanding exposure of the Corporation
with respect to insurance provided under this sub-
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section may not exceed the amount which is equal to
5 percent of the sum of the capital, surplus, and re-
tained earnings of the Corporation, as measured at
the time any such insurance is provided.
(g) DISCRETION OF CORPORATION AND INSURANCE
CORPORATION.—Consistent with other provisions of this
Act, any determination of the Corporation or the Insur-
ance Corporation to provide assistance to any project, and
the manner in which such assistance is provided, including
the terms, conditions, fees and charges in respect thereof,
shall be at the sole discretion of the Corporation or the
Insurance Corporation, as the case may be.
(h) INDEPENDENT INVESTMENT COMMITTEE.—Any
final decision to provide or not provide assistance under
this Act by the Corporation or the Insurance Corporation
with respect to any specific proposal shall be made by an
investment committee, of the respective corporation, which
shall be comprised of senior officers of the Corporation
and the Insurance Corporation, as the case may be, ap-
pointed to such committee by the respective board of direc-
tors, which committees shall not have any nonofficer direc-
tor members.
(i) STATE AND LOCAL PERMITS REQUIRED.—The
provision of assistance by the Corporation or the Insur-
ance Corporation in accordance with this section shall not
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be deemed to relieve any recipient of assistance or the re-
lated project of any obligation to obtain required State and
local permits and approvals.
(j) ANNUAL REPORT.—A State, revolving fund, or
other entity receiving assistance from the Corporation or
the Insurance Corporation shall make annual reports to
the Corporation or the Insurance Corporation, as the case
may be, on the use of any such assistance, compliance with
the criteria set forth in this section, and a disclosure of
all entities with a development, ownership, or operational
interest in a project assisted or proposed to be assisted
pursuant to this Act.
SEC. 9. CAPITALIZATION AND ORGANIZATION OF THE COR-
PORATION AND THE INSURANCE CORPORA-
TION.
(a) CAPITALIZATION.—
(1) CAPITALIZATION OF THE CORPORATION.—
(A) VOTING
COMMON
STOCK.—Effective
for any fiscal year only to such extent and in
such amounts as are provided in advance in ap-
propriation Acts, the Secretary shall subscribe
for and purchase, in each of the 3 years follow-
ing the date of enactment of this Act, voting
common stock of the Corporation having an ag-
gregate purchase price in each year of
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$1,000,000,000, except that no such purchase
shall occur after the transition date.
(B) LIMITATION ON SALE OF SECURITIES
BY
SECRETARY.—Securities purchased by the
Secretary may not be sold or otherwise trans-
ferred by the Secretary unless such sale or
transfer is effected pursuant to section 13 or is
explicitly authorized by an Act of Congress.
(2) CAPITALIZATION OF THE INSURANCE COR-
PORATION.—
(A) IN GENERAL.—The Corporation may
subscribe for and purchase voting common
stock of the Insurance Corporation in such
amounts and at such times as the board of di-
rectors of the Corporation shall from time to
time consider appropriate.
(B) LIMITATION ON INVESTMENT BY COR-
PORATION.—Not more than 25 percent of the
capital, surplus, and retained earnings of the
Corporation may be invested by the Corporation
in the Insurance Corporation without the con-
sent of the Secretary, measured at the time of
any such investment.
(3) REPURCHASE
OF
OUTSTANDING
OBLIGA-
TIONS.—The Corporation and the Insurance Cor-
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poration may purchase in the open market any of
their respective outstanding obligations at any time
and at any price.
(b) PLACE OF BUSINESS AND GOVERNING LAW.—
(1) CORPORATION.—
(A) PRINCIPAL OFFICE.—The Corporation
shall maintain its principal office in the District
of Columbia, and shall be deemed, for purposes
of venue in civil actions, to be a resident of the
District of Columbia.
(B) APPLICABILITY OF DISTRICT OF CO-
LUMBIA BUSINESS CORPORATION ACT.—To the
extent not inconsistent with this Act, the Cor-
poration shall be subject to the District of Co-
lumbia Business Corporation Act.
(2) INSURANCE CORPORATION.—
(A) PLACE OF BUSINESS.—The Insurance
Corporation shall maintain its principal office
in the District of Columbia, and shall be
deemed, for purposes of venue in civil actions,
to be a resident thereof.
(B) APPLICABILITY OF DISTRICT OF CO-
LUMBIA BUSINESS CORPORATION ACT.—To the
extent not inconsistent with this Act, the Insur-
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ance Corporation shall be subject to the District
of Columbia Business Corporation Act.
(3) APPLICABILITY
OF
STATE
INSURANCE
LAWS.—Before the transition date, the Corporation
and the Insurance Corporation shall not be subject
to the provisions of the law of any State or political
subdivision of any State regulating the ownership or
conduct of an insurance or surety business in any
jurisdiction.
(4) EXEMPTION FROM TAXATION.—
(A) ON AND BEFORE TRANSITION DATE.—
On and before the transition date, the Corpora-
tion, the Insurance Corporation, and any other
subsidiary of the Corporation, including the
franchise, capital, reserves, surplus, securities
holdings, and income of the Corporation, the
Insurance Corporation, or any such subsidiary
shall be exempt from taxation now or hereafter
imposed by the United States, any State, or
any county, municipality, or local taxing au-
thority.
(B) AFTER TRANSITION DATE.—After the
transition date, the Corporation, the Insurance
Corporation, and any other subsidiary of the
Corporation, including the franchise, capital, re-
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serves, surplus, securities holdings, and income
of the Corporation, the Insurance Corporation,
or any such subsidiary shall be exempt from all
taxation now or hereafter imposed by the
United States, any State, or any county, mu-
nicipality, or local taxing authority in any
State, provided that the Corporation, the Insur-
ance Corporation and any other subsidiary of
the Corporation shall be subject to Federal in-
come taxation.
SEC. 10. MANAGEMENT OF THE CORPORATION.
(a) BOARD OF DIRECTORS.—
(1) NUMBER AND APPOINTMENT.—Subject to
the provisions of section 13, the Corporation shall
have a board of directors consisting of 12 members,
9 of whom shall be appointed by the President.
(2) REQUIRED
EXPERTISE.—The President
shall appoint individuals to the board of directors of
the Corporation with a demonstrated experience and
expertise in the general field of infrastructure
project development, finance, or related disciplines.
(3) ADDITIONAL
SELECTION
CRITERIA.—The
President shall ensure that, of the nonofficer direc-
tors appointed to the board of directors, a minimum
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of 6 shall be selected from among representatives of
the private sector, of which—
(A) 2 shall be representatives of organized
labor; and
(B) 2 shall be individuals involved in the
field of public-private infrastructure finance and
related disciplines.
(4) CONSULTATION WITH THE NATIONAL GOV-
ERNORS’ CONFERENCE.—The President shall select
2 of the nonofficer directors to be appointed to the
board of directors after consulting with and consid-
ering the recommendations of the National Gov-
ernors’ Conference.
(5) APPOINTMENT
OF
OFFICERS
TO
THE
BOARD.—A majority of the nonofficer members of
the board shall appoint the president of the Corpora-
tion who shall serve on the board of directors. The
president of the Corporation shall select 2 executive
officers to be appointed to the board, subject to con-
firmation by a majority of the board.
(6) TERMS.—
(A) PRESIDENTIAL
APPOINTEES.—Each
director appointed by the President shall be ap-
pointed for a term of 4 years, except as pro-
vided in subparagraph (B).
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(B) 
INITIAL
PRESIDENTIAL
AP-
POINTEES.—As designated by the President, of
the directors first appointed by the President—
(i) 1⁄3 shall be appointed for a term of
2 years;
(ii) 1⁄3 shall be appointed for a term
of 3 years; and
(iii) 1⁄3 shall be appointed for a term
of 4 years.
(C) OFFICER
DIRECTORS.—Officer direc-
tors of the Corporation shall serve for a period
of 1 year or until they cease to be an officer of
the Corporation.
(D) INTERIM APPOINTMENTS.—Any direc-
tor appointed to fill a vacancy occurring before
the expiration of the term for which the direc-
tor’s predecessor was appointed shall be ap-
pointed only for the remainder of that term.
(E) CONTINUATION OF SERVICE.—A direc-
tor may serve after the expiration of that direc-
tor’s term until a successor has taken office.
(7) VACANCIES.—A vacancy in the board of di-
rectors shall be filled in the manner in which the
original appointment was made.
(8) REAPPOINTMENT.—
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(A) PRESIDENTIAL
APPOINTEES.—Mem-
bers of the board of directors appointed by the
President may be reappointed by the President,
consistent with the requirements of this section.
(B) OFFICER DIRECTORS.—The president
of the Corporation shall be reappointed to the
board by the nonofficer directors for so long as
such individual continues to serve as president
of the Corporation. Officer directors of the
board selected by the president of the Corpora-
tion may be reappointed by the president of the
Corporation, consistent with the requirements
of this section.
(9) REMOVAL.—
(A) PRESIDENTIAL APPOINTEES.—A direc-
tor appointed by the President shall be subject
to removal only for cause.
(B) OFFICER
DIRECTORS.—Officer direc-
tors of the Corporation shall be subject to re-
moval from the board in the discretion of a ma-
jority of the board, except that the president of
the Corporation shall continue to serve on the
board for so long as he or she serves as presi-
dent of the Corporation.
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(10) QUORUM.—7 directors shall constitute a
quorum.
(11) CHAIRPERSON.—The chairperson of the
board of directors shall be selected by a majority of
the board from among the nonofficer directors of the
board, and shall serve for a period of 1 year, or until
a new chairperson is selected.
(12) STATUS AND COMPENSATION OF BOARD
MEMBERS.—
(A) NONOFFICER
DIRECTORS.—Members
of the board of directors who are not officers of
the Corporation shall serve on a part-time basis
and shall receive a per diem, when engaged in
the actual performance of Corporation business,
plus reasonable reimbursement for travel, sub-
sistence and other necessary expenses incurred
in the performance of their duties.
(B) OFFICER
DIRECTORS.—Members of
the board of directors who are officers of the
Corporation shall not be entitled to receive any
salary or other compensation for services as a
director of the Corporation, but may receive
reasonable reimbursement for travel, subsist-
ence and other necessary expenses incurred in
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the performance of their duties as directors of
the Corporation.
(13) CONFLICTS OF INTEREST.—
(A) IN
GENERAL.—Nonofficer directors
shall have no responsibility for, and shall not
seek to influence, any decision of the independ-
ent investment committee established pursuant
to section 8(h).
(B) 
CONSULTATION.—Notwithstanding
subparagraph (A), the investment committee
may, in the committee’s discretion and on the
committee’s own initiative, consult with the
board of directors as the committee sees fit.
(C) LIMITATION ON CONSULTATION.—No
nonofficer director of the Corporation who has,
or is affiliated with a person who has, an inter-
est in any project under consideration for as-
sistance under this Act shall participate in any
consultation under subparagraph (B) with re-
spect to such project.
(14) MEETINGS.—The board of directors shall
meet at any time pursuant to the call of the chair-
person or a majority of the directors and as provided
by the bylaws of the Corporation, but not less than
once each calendar quarter.
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(15) DUTIES.—In addition to any duties estab-
lished under this Act and the bylaws of the Corpora-
tion, the board of directors shall determine the gen-
eral policies which shall govern the operations of the
Corporation in accordance with this Act.
(16) DELEGATION OF AUTHORITY.—The board
of directors may delegate duties and powers of the
board to such committees of the board as the board
may determine to be appropriate.
(b) OFFICERS OF THE CORPORATION.—
(1) PRESIDENT
OF
THE
CORPORATION.—The
president of the Corporation shall be the chief execu-
tive officer of the Corporation, with such executive
functions, powers, and duties as may be prescribed
by this Act, the bylaws, or the board of directors.
(2) APPOINTMENT OF OFFICERS.—The presi-
dent of the Corporation shall, with the approval of
a majority of the board, appoint qualified individuals
to such executive officer positions as may be pro-
vided for in the bylaws of the Corporation, and shall
define their duties. The president may appoint, re-
move, fix the compensation of, and define the duties
of other officers as provided in the bylaws.
(3) COMPENSATION.—The compensation of the
president and the executive officers of the Corpora-
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tion shall be determined by the board of directors of
the Corporation, in the discretion of the board of di-
rectors.
(4) CONFLICTS OF INTEREST.—Officers of the
Corporation shall not participate in any review or
decision affecting a project under consideration for
assistance under this Act if such officer has, or is
affiliated with a person who has, an interest in such
project.
(5) REMOVAL.—Any executive officer of the
Corporation may be removed in the discretion of a
majority of the board of directors.
SEC. 11. MANAGEMENT OF THE INSURANCE CORPORATION.
(a) BOARD OF DIRECTORS.—
(1) NUMBER AND ELECTION.—Subject to the
provisions of section 13, the Insurance Corporation
shall have a board of directors consisting of 12
members elected by the stockholders of the Insur-
ance Corporation.
(2) INITIAL
APPOINTMENT
OF
DIRECTORS.—
The initial directors of the Insurance Corporation
shall be appointed by the board of directors of the
Corporation.
(3) REQUIRED EXPERTISE.—The board shall be
comprised of individuals who have a demonstrated
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expertise and experience in the field of credit en-
hancement or insurance and related disciplines, a
minimum of 9 of whom shall be selected from among
representatives of the private sector.
(4) TERMS.—
(A) IN GENERAL.—Each director shall be
elected or appointed for a term of 2 years, ex-
cept as provided in subparagraph (B).
(B) INTERIM APPOINTMENTS.—Any direc-
tor elected or appointed to fill a vacancy occur-
ring before the expiration of the term for which
the director’s predecessor was appointed shall
be elected or appointed only for the remainder
of that term.
(C) CONTINUATION OF SERVICE.—A direc-
tor may serve after the expiration of that direc-
tor’s term until a successor has taken office.
(5) VACANCIES.—A vacancy in the board of di-
rectors shall be filled in the manner in which the
original appointment was made, except that the by-
laws may provide for the appointment by the board
of directors of a director to fill a vacancy occurring
before the expiration of the term for which the direc-
tor’s predecessor was elected or appointed.
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(6) QUORUM.—7 directors shall constitute a
quorum.
(7) CHAIRPERSON.—
(A) ELECTION.—The chairperson of the
board of directors shall be elected by the board
of directors from among the directors on the
board.
(B) TERM.—The term of office of the
chairperson shall be 1 year or until a new chair-
person is elected.
(8) STATUS
AND
COMPENSATION
OF
BOARD
MEMBERS.—Members of the board of directors shall
serve on a part-time basis and shall receive a per
diem, when engaged in the actual performance of In-
surance Corporation business, plus reasonable reim-
bursement for travel, subsistence and other nec-
essary expenses incurred in the performance of their
duties.
(9) CONFLICTS OF INTEREST.—
(A) IN
GENERAL.—Nonofficer directors
shall have no responsibility for, and shall not
seek to influence, any decision of the independ-
ent investment committee established pursuant
to section 8(h).
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(B) 
CONSULTATION.—Notwithstanding
subparagraph (A), the investment committee
may, in the committee’s discretion and on the
committee’s own initiative, consult with the
board of directors as the committee sees fit.
(C) LIMITATION ON CONSULTATION.—No
director who has, or is affiliated with any per-
son who has, an interest in any project under
consideration for assistance under this Act shall
participate in any such consultation with re-
spect to such project.
(10) MEETINGS.—The board of directors shall
meet at any time pursuant to the call of the chair-
person or a majority of the directors and as provided
by the bylaws of the Insurance Corporation, but not
less than once each calendar quarter.
(11) DUTIES.—In addition to any duties estab-
lished under this Act or the bylaws of the Insurance
Corporation, the board of directors shall determine
the general policies which shall govern the oper-
ations of the Insurance Corporation in accordance
with this Act.
(12) DELEGATION OF AUTHORITY.—The board
of directors may delegate duties and powers of the
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board to such committees of the board as the board
may determine to be appropriate.
(b) OFFICERS OF THE INSURANCE CORPORATION.—
(1) PRESIDENT OF THE INSURANCE CORPORA-
TION.—There shall be a position of president of the
Insurance Corporation who shall be the chief execu-
tive officer of the Insurance Corporation, with such
executive functions, powers, and duties as may be
prescribed by the bylaws or by the board of direc-
tors.
(2) APPOINTMENT OF OFFICERS.—The chair-
person of the board of directors of the Insurance
Corporation shall, with the approval of a majority of
the board, appoint a qualified individual to the posi-
tion of president of the Insurance Corporation. The
president of the Insurance Corporation shall, with
the approval of a majority of the board, appoint
qualified individuals to such executive officer posi-
tions as may be provided for in the bylaws of the In-
surance Corporation, and shall define their duties.
The president may appoint, remove, fix the com-
pensation of, and define the duties of other officers
as provided in the bylaws.
(3) COMPENSATION.—The compensation of the
president and the executive officers of the Insurance
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Corporation shall be determined by the board of di-
rectors of the Insurance Corporation, in the discre-
tion of the board of directors.
(4) CONFLICTS OF INTEREST.—Officers of the
Insurance Corporation shall not participate in any
review or decision affecting a project under consider-
ation for assistance under this Act if such officer
has, or is affiliated with a person who has, an inter-
est in such project.
(5) REMOVAL.—Any executive officer of the In-
surance Corporation may be removed in the discre-
tion of a majority of the board of directors.
SEC. 12. BOARD OF DIRECTOR MEETINGS OPEN TO PUBLIC.
(a) GENERAL.—All meetings of the full board of di-
rectors held to conduct the business of the Corporation
or the Insurance Corporation shall be open to the public,
and shall be preceded by reasonable notice.
(b) CLOSED MEETINGS.—Pursuant to such rules as
the Corporation and the Insurance Corporation may es-
tablish through their bylaws, the respective board of direc-
tors may close a meeting of the board if at the meeting
there is likely to be disclosed information which could ad-
versely affect or lead to speculation relating to an infra-
structure project under consideration for assistance under
this Act, or in financial or securities or commodities mar-
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kets or institutions, utilities, or real estate. The deter-
mination to close any meeting of either board of directors
shall be made in a meeting of such board, open to the
public, and preceded by reasonable notice. The respective
board of directors shall prepare minutes of any meeting
which is closed to the public and make such minutes avail-
able as soon as the considerations necessitating closing
such meeting no longer apply.
SEC. 13. TRANSITION TO GOVERNMENT-SPONSORED EN-
TERPRISE.
(a) GENERAL.—Within 5 years after the date of this
Act, the Corporation shall prepare a strategic plan for the
transition of NIC to a government-sponsored enterprise
(as defined in section 3(8) of the Congressional Budget
and Impoundment Control Act of 1974) and for the sale
or transfer to investors other than the Federal Govern-
ment, as set forth in subsection (b), of the voting securi-
ties of the Corporation. The Corporation shall revise such
transition plan as needed.
(b) PLAN; PENSION PLAN PARTICIPATION.—
(1) IN GENERAL.—The strategic plan shall in-
clude consideration of alternative means for effecting
such transition through a broad distribution to long-
term investors, including by a public offering of
stock or convertible stock or debt.
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(2) PENSION PLAN PARTICIPATION.—The stra-
tegic plan shall include provisions that specify that
the initial purchasers of voting securities of the Cor-
poration or of nonvoting securities which are con-
vertible to such voting securities on the transition
date (disregarding any underwriters of such securi-
ties) shall be pension plans.
(c) MEANS OF TRANSFER.—
(1) IN GENERAL.—The strategic plan may call
for a phased transfer of ownership or for complete
transfer at a single point in time.
(2) RULES
APPLICABLE
IN
THE
CASE
OF
A
PHASED TRANSITION.—If the plan calls for phased
transfer of ownership—
(A) such transition shall be deemed to
occur when 100 percent of the voting securities
of the Corporation have been transferred to or
are held by investors other than the Federal
Government, and the investment of the Federal
Government in the Corporation has been repaid
or converted as provided in subsection (h);
(B) before the transition date, all equity
securities of the Corporation held by investors
other than the Federal Government (or any eq-
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uity security into which any other security is
convertible) shall be nonvoting securities; and
(C) on and after the transition date,
nonvoting equity securities of the Corporation
held by investors other than the Federal Gov-
ernment (or into which other securities are con-
vertible) may, in accordance with the terms of
such securities, be converted or become convert-
ible into voting securities.
(d) REQUIREMENT OF PRESIDENTIAL APPROVAL.—
The Corporation may not implement the transition plan
without the approval of the President, and shall seek
reapproval if the plan is materially altered.
(e) NOTIFICATION OF CONGRESS.—
(1) IN GENERAL.—The Corporation shall notify
the Congress of—
(A) the Corporation’s intent to implement
the transition plan; and
(B) any material alteration of a transition
plan previously submitted to the Congress.
(2) REPORT.—Within 30 days of any notifica-
tion of the Congress under paragraph (1), the
Comptroller General of the United States shall sub-
mit a report to Congress evaluating the extent to
which—
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(A) the transition plan (as then modified)
would result in ongoing obligations (other than
contemplated by subsection (h)) or undue cost
to the Federal Government; and
(B) the cash proceeds (or projected range
thereof) to be provided to the Federal Govern-
ment, or the securities proposed to be received
in exchange for the investment of the Federal
Government in the Corporation or portion
thereof, represents the full recoupment of such
investment (after taking into account any divi-
dends paid to the Federal Government).
(f) CONGRESSIONAL REVIEW.—The Corporation may
implement the plan not less than 60 days after notification
of the Congress, if the approval of the President referred
to in subsection (d) has been received.
(g) DEPOSIT OF PROCEEDS.—Any cash proceeds re-
ceivable by the Federal Government pursuant to this sec-
tion shall be deposited in the general fund of the Treasury.
(h) CONVERSION
OF FEDERAL GOVERNMENT IN-
VESTMENT.—Upon the implementation of the transition
plan, the voting equity securities of the Corporation held
by the Federal Government or, in the case of a phased
transition, that portion of the voting equity securities
which are subject to such phase shall be repurchased by
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the Corporation or converted to long-term subordinated
debt securities having a par amount not less than the
amounts appropriated pursuant to section 19 and subject
to such phase, or a combination thereof, as contemplated
by such plan.
(i) BOARD OF DIRECTORS.—
(1) CORPORATION.—
(A) INITIAL
BOARD.—Before the end of
the 120-day period beginning on the transition
date, a special meeting of the stockholders of
the Corporation shall be held, at which all di-
rectors of the Corporation shall be elected to
serve a 1-year term or until any such director’s
successor has been elected.
(B) NOMINATION; SELECTION CRITERIA.—
The candidates for election to the board of di-
rectors under paragraph (1) shall be nominated
by the existing board of directors and 4 of such
candidates shall be nominated in accordance
with the selection criteria set out in section
10(a)(3).
(C) SUBSEQUENT BOARDS.—After the 1st
election of a board of directors pursuant to sub-
paragraph (A), the directors shall be elected
and subject to removal by the stockholders of
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the Corporation, as provided in the District of
Columbia Business Corporation Act, except that
the nomination of candidates for each election
of the board of directors shall continue to re-
flect the requirements of section 10(a)(3).
(2) INSURANCE CORPORATION.—
(A) INITIAL
BOARD.—Promptly following
the special meeting of the stockholders of the
Corporation pursuant to paragraph (1), a spe-
cial meeting of the stockholders of the Insur-
ance Corporation shall be held, at which all di-
rectors or the Insurance Corporation shall be
elected to serve a 1-year term or until any such
director’s successor has been elected.
(B) SUBSEQUENT BOARDS.—After the 1st
election of a board of directors pursuant to sub-
paragraph (A), the directors shall be elected
and subject to removal by the stockholders of
the Insurance Corporation, as provided in the
District of Columbia Business Corporation Act.
(j) TRANSMITTAL OF FINAL PLAN AFTER COMPLE-
TION.—The Corporation shall transmit copies of the final
strategic plan for transition to the President and the Con-
gress upon completion of such transition.
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SEC. 14. STATUS AND APPLICABILITY OF CERTAIN FED-
ERAL LAWS.
(a) BEFORE THE TRANSITION DATE.—Before the
transition date, the Corporation, the Insurance Corpora-
tion, and any other subsidiary of the Corporation, shall—
(1) not be agencies of the United States; and
(2) comply with all Federal laws regulating the
budgetary and auditing practices of a government
corporation, except as otherwise provided in this Act.
(b) SUBSEQUENT TO THE TRANSITION DATE.—On
and after the transition date, the Corporation, the Insur-
ance Corporation, and any other subsidiary of the Cor-
poration shall not be considered to be an agency, instru-
mentality, or establishment of the United States Govern-
ment or a government corporation or a government-con-
trolled corporation, for purposes of any Federal law, ex-
cept as otherwise provided in this Act.
(c) AUTHORIZED INVESTMENTS AND SECURITY.—All
obligations issued by the Corporation shall be authorized
investments for any person created under the laws of the
United States or any State to the same extent that the
person may hold or invest in obligations issued by or guar-
anteed as to principal or interest by the United States or
any agency or instrumentality of the United States.
(d) EFFECT
OF
AND EXEMPTIONS FROM OTHER
LAWS.—
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(1) EXEMPT SECURITIES.—All equity and debt
securities and other obligations issued by the Cor-
poration or the Insurance Corporation pursuant to
this Act shall be deemed to be exempt securities
within the meaning of laws administered by the Se-
curities and Exchange Commission to the same ex-
tent as securities which are direct obligations of, or
obligations fully guaranteed as to principal or inter-
est by, the United States.
(2) OPEN
MARKET
OPERATIONS
AND
STATE
TAX EXEMPT STATUS.—The obligations of the Cor-
poration shall be deemed to be obligations of the
United States for the purposes of the provision des-
ignated as (b)(2) of the 2nd undesignated paragraph
of section 14 of the Federal Reserve Act and section
3124 of title 31, United States Code.
(3) NO PRIORITY AS A FEDERAL CLAIM.—The
priority established in favor of the United States by
section 3713 of title 31, United States Code, shall
not apply with respect to any indebtedness of the
Corporation or the Insurance Corporation.
(e) FEDERAL RESERVE BANKS AS DEPOSITARIES,
CUSTODIANS, AND FISCAL AGENTS.—The Federal reserve
banks may act as depositaries for, or custodians or fiscal
agents of, the Corporation and the Insurance Corporation.
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(f) ACCESS
TO BOOK-ENTRY SYSTEM.—The Sec-
retary may authorize the Corporation and the Insurance
Corporation to use the book-entry system of the Federal
reserve system.
SEC. 15. COMPLIANCE WITH DAVIS-BACON ACT.
NIC shall take such action as may be necessary to
ensure that projects assisted in whole or in part under
the provisions of this Act shall incorporate a provision re-
quiring in any contract relating to any construction, recon-
struction, rehabilitation, replacement, or expansion of
such project, that not less than the wages prevailing in
the locality, as predetermined by the Secretary of Labor
pursuant to the Act of March 3, 1931 (40 U.S.C. 276a;
commonly referred to as the ‘‘Davis-Bacon Act’’) shall be
paid to all laborers and mechanics employed to perform
such contracts.
SEC. 16. OBLIGATIONS NOT FEDERALLY GUARANTEED;
STATE LAWS.
(a) STATUS OF SECURITIES.—
(1) NO
FULL
FAITH
AND
CREDIT
OF
THE
U.S.—Obligations of the Corporation or the Insur-
ance Corporation, and obligations insured by any
such corporation shall not be obligations of, or guar-
anteed as to principal or interest by, the United
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States or any agency of the United States and the
obligations shall so plainly state.
(2) FINANCING NOT TREATED AS U.S. GUARAN-
TEE.—The provision of assistance of any kind or na-
ture from NIC shall not be treated as a direct or in-
direct guarantee of any payment of principal or in-
terest on any security by the United States for pur-
poses of section 149(b) of the Internal Revenue
Code of 1986 or any other law.
(b) STATE LAWS.—The receipt by any entity of any
assistance under this Act, directly or indirectly, and any
financial assistance provided by any governmental entity
in connection with such assistance under this Act shall be
valid and lawful notwithstanding any State or local restric-
tions regarding extensions of credit or other benefits to
private persons or entities, or other similar restrictions.
SEC. 17. AUDITS; REPORTS TO THE PRESIDENT AND THE
CONGRESS.
(a) ACCOUNTING.—The books of account of NIC
shall be maintained in accordance with generally accepted
accounting principles and shall be subject to an annual
audit by independent public accountants of nationally rec-
ognized standing.
(b) REPORTS.—NIC shall submit to the President
and the Congress, within 90 days after the end of each
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fiscal year, a complete and detailed report with respect
to the preceding fiscal year, setting forth—
(1) a summary of NIC’s operations, for such
preceding fiscal year;
(2) NIC’s financial statements and the opinion
with respect thereto prepared by the independent
public accountant reviewing such statements and a
copy of any report made on an audit conducted
under subsection (a) of this section;
(3) a schedule of NIC’s obligations and capital
securities outstanding at the end of such fiscal year,
with a statement of the amounts issued and re-
deemed or paid during such fiscal year; and
(4) the status of projects receiving funding or
other assistance pursuant to this Act, including dis-
closure of all entities with a development, ownership,
or operational interest in such projects.
(c) BOOKS AND RECORDS.—
(1) IN GENERAL.—NIC shall maintain adequate
books and records to support the financial trans-
actions of the Corporation, the Insurance Corpora-
tion, and subsidiaries of such corporations.
(2) AUDITS BY THE SECRETARY AND GAO.—
The books and records of NIC shall be maintained
in accordance with recommended accounting prac-
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tices and shall be open to inspection by the Sec-
retary and the Comptroller General of the United
States.
SEC. 18. TAX TREATMENT OF DISTRIBUTIONS FROM QUALI-
FIED RETIREMENT PLANS INVESTING IN
PUBLIC BENEFIT BONDS.
(a) IN GENERAL.—Section 72 of the Internal Reve-
nue Code of 1986 (relating to annuities; certain proceeds
of endowment and life insurance contracts) is amended by
redesignating subsection (w) as subsection (x) and by in-
serting after subsection (v) the following new subsection:
‘‘(w) TREATMENT OF DISTRIBUTION FROM QUALI-
FIED RETIREMENT PLANS INVESTING IN PUBLIC BENE-
FIT BONDS.—
‘‘(1) IN GENERAL.—In the case of any qualified
retirement plan which receives directly or indirectly
any interest on any public benefit bond (including
any payments in respect thereof made by a surety
or guarantor) for purposes of applying this section
to any distribution from such plan, the distributee’s
investment in the contract shall be treated as includ-
ing such distributee’s allocable share of such interest
under the terms of the qualified retirement plan,
and any such distribution shall be treated as a dis-
tribution described in subsection (e)(2)(B) in which
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the distribution is allocable first to the investment in
the contract attributable to such interest.
‘‘(2) TREATMENT OF INSTALLMENTS.—In the
case of a distribution to be made over more than one
calendar year, the amount of public benefit bond in-
terest to be taken into account with respect to a
given calendar year shall be the aggregate amount of
such interest allocable to the distributee as of the
end of the prior calendar year. With respect to the
final calendar year, the amount of public benefit
bond interest to be taken into account shall include
the amount of such interest received by the plan
during such year that is allocable to the plan partici-
pant with respect to whom the distribution is made.
‘‘(3) PUBLIC BENEFIT BOND.—For purposes of
this subsection, the term ‘public benefit bond’ means
any obligation issued after the date of the enactment
of this subsection if—
‘‘(A) 95 percent or more of the net pro-
ceeds of such obligation are used in connection
with the financing or refinancing of 1 or more
infrastructure facilities,
‘‘(B) such obligation has received a pub-
lished rating, and
HR 3168 IH
‘‘(C) the development of such infrastruc-
ture facilities have been or will be undertaken
by a governmental entity or public-private part-
nership,
as such terms are defined in section 4 of the Na-
tional Infrastructure Development Act of 1996.
‘‘(4) CERTIFICATION OF INFRASTRUCTURE FA-
CILITIES.—An issuer of an obligation of which 95
percent or more of the net proceeds are to be used
in connection with the financing or refinancing of 1
or more facilities may apply to the National Infra-
structure Development Corporation, in accordance
with such procedures as such corporation may estab-
lish, for certification that any such facility is an in-
frastructure facility (as defined in section 4 of the
National Infrastructure Development Act of 1996).
Certification by the Corporation shall create a pre-
sumption of such status, but shall not be binding on
the Secretary.
‘‘(5) LEGEND REQUIRED.—No obligation shall
be a public benefit bond for purposes of this sub-
section unless it is designated as intended to be a
public benefit bond on the date of issuance and
bears a legend to such effect.