Infrastructure Improvement Act of 1997

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Infrastructure Improvement Act of 
1997''.

SEC. 2. SPECTRUM AUCTIONS.

    (a) Required Auctions.--To the extent that portions of the public 
electromagnetic spectrum allocated for commercial use become available 
for licenses and construction during the period consisting of fiscal 
years 1998 through 2002, the Federal Communications Commission shall, 
during such period, conduct competitive bidding in accordance with 
section 309(j) of the Communications Act of 1934 for licenses and 
construction permits involving such portions which result in an amount 
of proceeds equal to the sum of (1) $26,000,000,000, and (2) the amount 
of any offsetting collections referred to in the first sentence of 
section 309(j)(8)(B) of such Act. To the extent possible, the 
competitive bidding shall be conducted so that proceeds required under 
this subsection are obtained in equal amounts during each fiscal year 
during such period.
    (b) Treatment of Proceeds.--Notwithstanding section 309(j)(8)(A) of 
the Communications Act of 1934, the proceeds from competitive bidding 
conducted pursuant to subsection (a) (less any proceeds retained 
pursuant to the first sentence of section 309(j)(8)(B) of such section) 
shall be deposited in the Infrastructure Improvement Trust Fund 
established by section 9512 of the Internal Revenue Code of 1986, as 
added by section 3 of this Act. This subsection may not be construed to 
apply to any proceeds from competitive bidding conducted pursuant to 
subsection (a) in excess of the sum described in subsection (a).

SEC. 3. INFRASTRUCTURE IMPROVEMENT TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 (relating to Trust Fund Code) is amended by adding at the 
end the following new section:

``SEC. 9512. INFRASTRUCTURE IMPROVEMENT TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Infrastructure 
Improvement Trust Fund', consisting of such amounts as may be 
appropriated or credited to such trust fund as provided in this section 
or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Infrastructure Improvement Trust Fund amounts equivalent to the 
revenues received in the Treasury from the proceeds of competitive 
bidding conducted by the Federal Communications Commission pursuant to 
section 2(a) of the Infrastructure Improvement Act of 1997.
    ``(c) Expenditures From Trust Fund.--Amounts in the Infrastructure 
Improvement Trust Fund shall be available, as provided in the 
Infrastructure Improvement Act of 1997, only for purposes of making 
expenditures in accordance with section 5 of such Act.''
    (b) Clerical Amendment.--The table of sections for such subchapter 
A is amended by adding at the end the following new item:

                              ``Sec. 9512. Infrastructure Improvement 
                                        Trust Fund.''

SEC. 4. AVAILABILITY OF AMOUNTS.

    There shall be available to the Secretary of Transportation, out of 
the Infrastructure Improvement Trust Fund, for each of fiscal years 
1998 through 2002, the amount transferred to the Trust Fund for such 
fiscal year pursuant to section 9512 of the Internal Revenue Code of 
1986 (plus any amount credited to the account during the preceding 
fiscal year pursuant to section 9602(b) of such Code) for carrying out 
section 5. Such sums shall remain available until expended.

SEC. 5. INFRASTRUCTURE IMPROVEMENT GRANTS.

    (a) In General.--On October 1 of each of fiscal years 1998 through 
2002 (or as soon as possible thereafter), the Secretary of 
Transportation, after making the deduction under subsection (b), shall 
apportion funds made available by section 4 for such fiscal year among 
the States so that the percentage apportioned to each State is equal to 
the percentage of estimated tax payments attributable to highway users 
in the State paid into the Highway Trust Fund established by section 
9503 of the Internal Revenue Code of 1986 in the latest fiscal year for 
which data are available. Payments of funds apportioned to a State 
under this subsection shall be made in quarterly installments in the 
form of grants.
    (b) Deduction.--Whenever an apportionment of funds is made under 
subsection (a) or (d), the Secretary may make a deduction in an amount 
not to exceed 2 percent of such funds for administering the provisions 
of this section.
    (c) Use of Grants.--Funds apportioned to a State under subsection 
(a) shall be available only for the construction and maintenance of 
highways in the State.
    (d) Submission of Plan.--A State shall be eligible to receive an 
apportionment of funds under subsection (a) in a fiscal year only if 
the State submits to the Secretary, on or before September 1 of the 
preceding fiscal year, a plan describing how the funds will be used. 
Amounts which would have been apportioned to a State but for the 
requirement of this subsection shall be reapportioned among the States 
in the manner specified for apportionments under subsection (a).
    (e) Applicability of Requirements.--A project carried out on a 
Federal-aid highway using funds apportioned under subsection (a) shall 
be subject to the same requirements as would have applied to the 
project if the project had been carried out under title 23, United 
States Code, except to the extent that the Secretary determines that 
any requirement of such title is not consistent with the objectives of 
this section.
    (f) Federal Share.--The Federal share payable on account of any 
project or activity carried out using funds apportioned under 
subsection (a) shall be 80 percent of the cost of the project or 
activity.
    (g) Definitions.--As used in this section, the terms 
``construction'', ``Federal-aid highway'', and ``highway'' have the 
meanings given such terms by section 101(a) of title 23, United States 
Code.

Summary: Infrastructure Improvement Act of 1997 - Directs the Federal Communications Commission to conduct competitive bidding for licenses and permits for portions of the public electromagnetic spectrum allocated for commercial use that become available for licenses and construction during FY 1998 through 2002 and that result in specified proceeds. 
Requires such proceeds to be deposited into the Infrastructure Improvement Trust Fund established by this Act.  Makes such funds available to the Secretary of Transportation to be apportioned among the States during FY 1998 through 2002 based on the percentage of estimated tax payments attributable to highway users in a State paid into the Highway Trust Fund for the latest fiscal year.  Permits such funds to be used only for the construction and maintenance of State highways.  Allows a State to be eligible for such funds only if it submits annually to the Secretary a plan describing its use of such funds. 
Requires a Federal share of 80 percent of the total cost of a project or activity conducted using funds apportioned under this Act.