I
105TH CONGRESS
2D SESSION
H. R. 3222
To amend the Internal Revenue Code of 1986 to provide for tax-exempt
financing of private sector highway infrastructure construction.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 12, 1998
Mr. DICKS introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to provide
for tax-exempt financing of private sector highway infra-
structure construction.
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 ‘‘Highway Infrastruc-
ture Privatization Act’’.
SEC. 2. TAX-EXEMPT FINANCING OF QUALIFIED HIGHWAY
INFRASTRUCTURE CONSTRUCTION.
(a) TREATMENT AS EXEMPT FACILITY BOND.—Sub-
section (a) of section 142 of the Internal Revenue Code
of 1986 (relating to exempt facility bond) is amended by
striking ‘‘or’’ at the end of paragraph (11), by striking
the period at the end of paragraph (12) and inserting ‘‘,
or’’, and by adding at the end the following:
‘‘(13) 
qualified 
highway 
infrastructure
projects.’’
(b) 
QUALIFIED
HIGHWAY
INFRASTRUCTURE
PROJECTS.—Section 142 of such Code is amended by add-
ing at the end the following:
‘‘(k) 
QUALIFIED
HIGHWAY
INFRASTRUCTURE
PROJECTS.—
‘‘(1) IN GENERAL.—For purposes of subsection
(a)(13), the term ‘qualified highway infrastructure
project’ means a project—
‘‘(A) for the construction or reconstruction
of a highway, and
‘‘(B) designated under paragraph (2) as an
eligible pilot project.
‘‘(2) ELIGIBLE PILOT PROJECT.—
‘‘(A) IN
GENERAL.—The Secretary of
Transportation, in consultation with the Sec-
retary of the Treasury, shall select not more
than 15 highway infrastructure projects to be
pilot projects eligible for tax-exempt financing.
‘‘(B) ELIGIBILITY
CRITERIA.—The Sec-
retary of Transportation shall establish criteria
for the selection of projects under subparagraph
(A), except that no project may be selected un-
less the project—
‘‘(i) serves the general public;
‘‘(ii) is necessary to evaluate the po-
tential of the private sector’s participation
in the provision of the highway infrastruc-
ture of the United States;
‘‘(iii) is located on publicly owned
rights-of-way;
‘‘(iv) is publicly owned or the owner-
ship of the highway constructed or recon-
structed under the project reverts to the
public; and
‘‘(v) is consistent with a transpor-
tation plan developed pursuant to section
134(g) or 135(e) of title 23, United States
Code.
‘‘(3) AGGREGATE
FACE
AMOUNT
OF
TAX-EX-
EMPT FINANCING.—
‘‘(A) IN GENERAL.—An issue shall not be
treated as an issue described in subsection
(a)(13) if the aggregate face amount of bonds
issued pursuant thereto (when added to the ag-
gregate face amount of bonds previously so
issued 
and 
outstanding) 
exceeds
$15,000,000,000.
‘‘(B) 
ALLOCATION.—The 
Secretary 
of
Transportation shall allocate the amount de-
scribed in subparagraph (A) among the eligible
pilot projects designated under paragraph (2).
‘‘(C) REALLOCATION.—If any portion of
an allocation under subparagraph (B) is unused
on the date which is 3 years after such alloca-
tion, the Secretary of Transportation may re-
allocate such portion among the remaining eligi-
ble pilot projects.’’
(c) EXEMPTION FROM GENERAL STATE VOLUME
CAPS.—Paragraph (3) of section 146(g) of such Code (re-
lating to exception for certain bonds) is amended—
(1) by striking ‘‘or (12)’’ and inserting ‘‘(12),
or (13)’’, and
(2) by striking ‘‘and environmental enhance-
ments of hydroelectric generating facilities’’ and in-
serting ‘‘environmental enhancements of hydro-
electric generating facilities, and qualified highway
infrastructure projects’’.
(d) REPORT.—
(1) IN GENERAL.—Not later than the earlier
of—