Generating American Income and Infrastructure Now Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Generating American Income and 
Infrastructure Now Act''.

SEC. 2. REQUIRED SALE OF DISTRESSED NOTES AND OTHER OBLIGATIONS.

    (a) In General.--
            (1) Coordination of sale of distressed notes.--The 
        Secretary of Agriculture shall sell, under terms established by 
        the Secretary of the Treasury, distressed notes and other 
        obligations held by the Department of Agriculture.
            (2) Deposit of proceeds.--Of the proceeds from the sale of 
        the notes and obligations pursuant to paragraph (1)--
                    (A) 50 percent shall be deposited in an account 
                specifically designated for purposes of carrying out 
                infrastructure projects in low-income communities (as 
                defined in section 45D(e) of the Internal Revenue Code 
                of 1986); and
                    (B) 50 percent shall be retained in the Treasury 
                for purposes of deficit reduction.
    (b) Terms and Procedures of Sales.--
            (1) Fair market valuation.--The Secretary of the Treasury 
        shall consult with the Secretary of Agriculture to establish a 
        fair market valuation for the sale of the distressed notes or 
        other obligations pursuant to this section.
            (2) No recourse or liability.--The sale of distressed notes 
        or other obligations pursuant to this section shall be on a 
        nonrecourse basis. The Secretary of Agriculture and any 
        subsequent purchaser of such notes or other obligations sold on 
        a nonrecourse basis shall be relieved of any responsibilities 
        that might have been imposed had the borrower remained indebted 
        to the Secretary of Agriculture.
            (3) Contract provisions.--The sale of distressed notes or 
        other obligations pursuant to this section shall not alter the 
        terms specified in the note or other obligation.
            (4) Notification; notice and comment.--Not less than 60 
        days before the sale of a distressed note or other obligation 
        pursuant to this section, the Secretary of Agriculture shall 
        notify the borrower that the Department of Agriculture intends 
        to sell such note or other obligation.
            (5) Notice and comment.--During the 60-day period before 
        the sale of a distressed note or other obligation under this 
        section, the Secretary of Agriculture shall provide an 
        opportunity for notice and public comment in a manner that 
        protects the personally identifiable information relating to 
        the borrower.
            (6) Borrower opportunity to refinance.--A borrower may pay 
        off a distressed note or other obligation at a discount to par 
        value enabling the borrower to refinance the note or other 
        obligation through a private market loan within 30 days after 
        the borrower receives notification of the intent to sell such 
        note or other obligation pursuant to paragraph (4).
            (7) Best price.--The Secretary of Agriculture shall obtain 
        the highest possible return from the sales of distressed notes 
        or other obligations under this section and may conduct sales 
        on a competitive bidding or negotiated process, in amounts 
        sufficiently large to assure market interest.
            (8) Financial advisor.--In order to assure the highest 
        possible return, the Secretary of Agriculture may employ public 
        finance advisors from micro-, woman-, and minority-owned 
        businesses, as defined by the Small Business Administration.
            (9) Loan servicing.--Before selling any distressed note or 
        other obligation under this section, the Secretary of 
        Agriculture shall require persons offering to purchase the note 
        or other obligation to demonstrate--
                    (A) an ability or resources to provide such 
                servicing, with respect to the distressed note or other 
                obligation, that the Secretary of the Treasury 
                determines to be necessary to ensure the continued 
                performance on the loan; and
                    (B) the ability to generate capital to provide the 
                borrowers of the distressed notes or other obligations 
                such additional credit as may be necessary in proper 
                servicing of such notes or other obligations.
    (c) GAO Report.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to Congress a report on the sale of distressed notes or 
other obligations of the Department of Agriculture under this section. 
Such report shall include the recommendation of the Comptroller General 
of the United States with respect to whether such a sale should be 
undertaken by other Federal agencies.

Summary: Generating American Income and Infrastructure Now Act  This bill requires the Department of Agriculture (USDA) to sell certain distressed notes and other obligations held by USDA. The sale must be conducted under terms and procedures established by the Department of the Treasury and specified in the bill. Of the proceeds from the sale: (1) 50% must be deposited into an account for carrying out infrastructure projects in low-income communities, and (2) 50% must be retained in the Treasury for deficit reduction.