National Public Works Corporation Act

National Public Works Corporation Act - Amends the Public Works and Economic Development Act of 1965 to establish the National Public Works Corporation.

Provides for the Board of Directors, the officers and employees, and the powers of such Corporation. Requires the principal office to be in the District of Columbia. Provides for the borrowing authority, capitalization, and reserve fund of the Corporation. Authorizes appropriations for the capitalization of the Corporation for fiscal years following 1987. Authorizes States electing to participate in the Corporation to make certain contributions. Sets the maximum amount of contributions any one State may make to the Corporation.

Authorizes the Corporation to make loans to participating States and local governments for projects for the construction, rehabilitation, and repair of public facilities in accordance with this Act. Prohibits loan plans from being used to pay the non-Federal share of the cost of Federal projects. States the maximum amount of outstanding loans authorized for such projects.

Prohibits the Corporation from making a loan for a public facility project unless it determines that such facility, upon completion, will generate sufficient fees to repay the principal and interest on such loans and create a sufficient reserve for the operation and maintenance of the project, including replacement costs over the useful life of the project. Requires applicants for such loans to demonstrate to the Corporation that they have legal authority to assess and collect such fees and that such fees will provide sufficient revenues to meet the conditions for making such loans. States additional conditions and requirements for such loans.

Requires the Governor of a State to submit applications for public facility project loans for the State or State agency or instrumentality. Requires the responsible official of local government to submit applications for public facility project loans for such unit or agencies thereof. Prohibits the Corporation from approving local government project loans unless the Governor of the appropriate State certifies approval of the application. Prohibits any Governor from submitting or approving loan applications for more than the maximum amount allowable to any one State. Requires Governors to ensure a proper distribution of available loan funds in a State between urban and rural areas according to a certain allocation formula.

Requires the Corporation to require all contracts made with such loan proceeds to be awarded on the basis of competitive bidding. Requires the Corporation to conduct necessary audits to enforce this Act. States procedures to be followed if the Corporation determines that insufficient fees are being collected.

Authorizes appropriations to the Corporation for fiscal years after FY 1987, in order to reduce interest rates paid by borrowers under this Act.

Declares that the Corporation, its assets, and certain property shall be exempt from State, local, or Federal taxes, except for certain real property and tangible personal property. States that any obligations issued by the Corporation shall be taxed as to principal and interest to the same extent as the obligations of private corporations.

Requires the General Accounting Office to audit the financial transactions of the Corporation.

Sets forth procedures to be followed in the event of a default on any loan made under this Act.

Requires the Corporation to submit an annual report to the Congress and the President after each fiscal year on the status of the Corporation and its reserve fund. Requires such report to include a description of the projects for which loans were made during the preceding fiscal year.