Rebuilding America's Infrastructure - Establishes the Federal Bank for Infrastructure Modernization. Authorizes the Bank to make loans to any state, local government, Indian tribe, and regional or multistate organization for the development of certain transportation- and educational- and water and hazardous treatment-related capital infrastructure facility projects. Sets forth specified requirements with respect to: (1) loan and borrower eligibility; and (2) compliance with the Americans with Disabilities Act of 1990, the Buy American Act, and the Davis-Bacon Act (wages) as they relate to the development of such projects.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5054 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 5054
To fund capital projects of State and local governments, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 30, 2006
Mr. LaTourette (for himself and Mr. Kucinich) introduced the following
bill; which was referred to the Committee on Transportation and
Infrastructure, and in addition to the Committees on Financial Services
and the Budget, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To fund capital projects of State and local governments, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rebuilding America's
Infrastructure''.
SEC. 2. FINDINGS AND PURPOSES DEFINITIONS.
(a) Findings.--The Congress finds as follows:
(1) Citizens chronically complain about the state of
America's public capital--about dilapidated school buildings,
condemned highway bridges, contaminated water supplies, and
other shortcomings of the public infrastructure.
(2) In addition to inflicting inconvenience and endangering
health, the inadequacy of the public infrastructure adversely
affects productivity and the growth of the economy since public
investment, private investment, and productivity are intimately
linked.
(3) For more than 2 decades, the United States Government
has retreated from public investment.
(4) State and local governments, albeit to a lesser extent,
have also slowed public investments and State and local
taxpayers are frequently reluctant to approve bond issues to
finance public infrastructure.
(5) In the early 1970s, nondefense public investment
accounted for about 3.2 percent of gross domestic product but
it now accounts for only 2.5 percent.
(6) Widespread neglect of maintenance has contributed
substantially to the failure of the stock of public capital
assets to keep pace with the Nation's needs.
(7) Net of depreciation, the real nondefense public capital
stock expanded in the past 2 decades at a pace only half that
set earlier in the post-World War II period.
(8) Evidence of failures to maintain and improve
infrastructure is seen every day in such problems as unsafe
bridges, urban decay, dilapidated and over-crowded schools, and
inadequate airports.
(9) The State departments of education collected data that
reveals at least $300,000,000,000 worth of unmet school
infrastructure needs.
(10) This Act--
(A) is designed to help the Nation take a
significant step forward both in overcoming its
infrastructure deficit and in promoting the
productivity needed to meet the competitive challenges
of the 21st century; and
(B) represents fiscally sound planning and, in
salient ways, advances sound fiscal and monetary
operations.
(b) Purposes.--The purposes of this Act are as follows:
(1) To provide up to $50,000,000,000 a year on average for
mortgage loans, at zero percent interest, to State and local
governments for capital investment in types of infrastructure
projects specified by Congress in a way that would not affect
the conduct of a sound monetary policy based on price
stability.
(2) To cut the overall cost of investment in infrastructure
projects about in half, depending on prevailing interest rates,
for State and local taxpayers.
SEC. 3. DEFINITIONS.
For purposes of this Act, the following definitions apply:
(1) Bank.--The term ``Bank'' means the Federal Bank for
Infrastructure Modernization established under section 4.
(2) Board.--The term ``Board'' means the Board of Governors
of the Federal Reserve System.
(3) Development.--The terms ``development'' and ``develop''
mean, with respect to an infrastructure facility, any--
(A) preconstruction planning, feasibility review,
permitting and design work, and other preconstruction
activities; and
(B) construction, reconstruction, rehabilitation,
replacement, or expansion.
(4) Indian reservation.--The term ``Indian reservation''
has the same meaning as in section 4 of the Indian Child
Welfare Act of 1978 (16 U.S.C. 1903), and shall include land
held by incorporated Native groups, regional corporations, and
village corporations, as defined in or established pursuant to
the Alaska Native Claims Settlement Act, public domain Indian
allotments, and former Indian reservations in the State of
Oklahoma.
(5) Indian tribe.--The term ``Indian tribe'' means any
Indian tribe, band, pueblo, nation, or other organized group or
community, including any Alaska Native village or regional or
village corporation, as defined in or established pursuant to
the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.), which is recognized as eligible for the special programs
and services provided by the United States to Indians because
of their status as Indians.
(6) Infrastructure facility.--The term ``infrastructure
facility'' means a road, highway, bridge, tunnel, airport, mass
transportation vehicle or system, passenger or freight rail
vehicle or system, intermodal transportation facility,
waterway, commercial port, drinking or waste water treatment
facility, solid waste disposal facility, pollution control
system, hazardous waste facility, federally designated national
information highway facility, public school, and any ancillary
facility which forms a part of any such facility or is
reasonably related to such facility, including a facility
necessary to comply with the Americans with Disabilities Act of
1990.
(7) Regional or multistate organization.--The term
``regional or multistate organization'' means an organization
established by an interstate compact between 2 or more States
which has been approved by the Congress.
(8) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(9) 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.
SEC. 4. FEDERAL BANK FOR INFRASTRUCTURE MODERNIZATION.
(a) Establishment.--
(1) In general.--There is hereby established a corporation
which shall be known as the Federal Bank for Infrastructure
Modernization.
(2) Status.--The Bank shall be--
(A) an instrumentality of the United States
Government; and
(B) under the general supervision and direction of
the Secretary of the Treasury.
(b) Management.--
(1) Board of trustees.--The management of the Bank shall be
vested in the Board of Directors of the Federal Financing Bank.
(c) Powers.--The Bank shall have the following powers:
(1) To adopt, alter, and use a corporate seal.
(2) To issue nonvoting capital stock in accordance with
section 5.
(3) To enter into contracts and modify, or consent to the
modification of, any contract or agreement to which the Bank is
a party or in which the Bank has an interest under this
section.
(4) To appoint, by the board of directors, such officers
and employees as the board of directors determines to be
necessary to carry out the provisions of this Act, to define
their duties, fix their compensation, require bonds of them and
fix the penalty thereof, and to dismiss at pleasure such
officers or employees.
(5) To make advance, progress, or other payments.
(6) To acquire, hold, lease, mortgage, maintain, or dispose
of, at public or private sale, real and personal property,
using any legally available private sector methods, and
otherwise exercise all the usual incidents of ownership of
property necessary and convenient to the operations of the
Bank.
(7) To sue and be sued in its corporate capacity in any
court of competent jurisdiction.
(8) To use the United States mails in the same manner and
under the same conditions as other departments and agencies of
the United States.
(9) To prescribe bylaws that shall be consistent with law.
(10) To make loans in accordance with section 7, subject to
the requirements of such section.
SEC. 5. CAPITALIZATION OF THE BANK.
(a) Issuance and Sale of Stock.--The Bank may--
(1) issue nonvoting capital stock under section 4(c)(2)
only at such times and in such amounts as--
(A) the Secretary determines to be appropriate for
the issuance of such stock; and
(B) the Board determines to be appropriate for the
purchase of such stock; and
(2) sell such stock only to the Board or, at the Board's
direction, a Federal reserve bank.
(b) Purchase of Capital Stock by Federal Reserve Board.--
(1) In general.--During the 10-year period beginning on the
first day of the first fiscal year that begins after the date
of the enactment of this Act, and subject to subsection (c) and
the direction of the Federal Open Market Committee, the Board
of Governors of the Federal Reserve System, acting directly or
through any Federal reserve bank, shall invest in nonvoting
capital stock of the Bank at such times and in such amounts as
the Board determines to be appropriate under this section.
(2) Average annual investment amount.--The amount invested
by the Board in the capital stock of the Bank under this
subsection shall average $50,000,000,000 a year over the 10-
year period of investment in the Bank described in paragraph
(1).
(c) Integration of Stock Purchases Into Open-Market Operations.--
(1) In general.--The investment of the Board in stock of
the Bank under this section shall be integrated into the open-
market operations of the Federal Open Market Committee under
section 12A of the Federal Reserve Act (12 U.S.C. 263) and the
directions of the Federal Open Market Committee to the Federal
reserve banks with regard to open-market operations shall take
into account, and may include directions with regard to, any
such investment.
(2) Treatment of stock.--Capital stock of the Bank shall be
treated as obligations of an agency of the United States for
purposes of section 14(b)(2) of the Federal Reserve Act (12
U.S.C. 355).
(d) Use of Capital.--The capital of the Bank may be used only for
making loans under section 7.
(e) Retirement of Stock.--Nonvoting stock issued under this section
shall be repurchased and retired from amount received from the
repayment of loans under section 7.
SEC. 6. BUDGET TREATMENT.
(a) Nonapplicability of Provisions Applicable to Receipt and
Expenditures of Revenue and Borrowed Funds.--For purposes of title 31,
United States Code, the Congressional Budget and Impoundment Control
Act of 1974, the Balanced Budget and Emergency Deficit Control Act of
1985, the Budget Enforcement Act of 1990, or any other provision of
law--
(1) amounts received by the Bank in connection with the
sale of stock pursuant to section 5 shall not be treated as
revenue when it is received or made available to the Bank nor
shall it be treated as revenue by the Bank or by the Secretary
of the Treasury when the loans referred to in section 7 are
repaid;
(2) the purchase or sale of stock pursuant to section 5 and
the interest-free loan program established under section 7--
(A) shall not be treated as budget authority, new
budget authority, budgetary resources, spending
authority, new spending authority, entitlement
authority, or credit authority;
(B) shall not be subject to apportionment or
sequestration other than in accordance with the
provisions of sections 4, 5, and 7; and
(C) shall not be taken into account in the
determination of the baseline for any fiscal year; and
(3) the disbursement of money paid by the Board or received
by the Bank in connection with the purchase or sale of stock
pursuant to section 5 shall not be treated as an outlay or a
budget outlay.
(b) Expenditure of Tax Revenue or Borrowed Funds not Authorized.--
No provision of this Act shall be construed as authorizing the
expenditure of funds derived from revenues imposed and collected by the
United States Government under any provision of law or from amounts
borrowed by the United States Government pursuant to chapter 31 of
title 31, United States Code, or any other provision of law.
SEC. 7. ISSUANCE OF INFRASTRUCTURE LOANS.
(a) In General.--The Bank may make loans to eligible borrowers for
the development of infrastructure facilities, if the Bank obtains such
assurances as the Bank determines to be appropriate from the borrower
that--
(1) the funding of the project by the Bank was approved
by--
(A) a State certifying officer, in the case of an
infrastructure facility development project proposed by
a governmental unit within such State;
(B) the Secretary of the Interior, in the case of a
project proposed by an Indian tribe; or
(C) the State certifying officer of each State
involved, in the case of an infrastructure facility
development project proposed by a regional or
multistate organization;
(2) the proceeds of such loan will be used solely for the
purpose of funding the development of any infrastructure
facility;
(3) the borrower will establish and maintain over the life
of the loan a sinking fund or other amortizing mechanism that
would ensure that the repayment of the principal of the loan
will be made in accordance with the repayment schedule
contained in the loan documents; and
(4) the Bank will have full access to such books and
records of the borrower as the Bank may, from time to time,
determine to be necessary to audit the borrower's compliance
with the terms and conditions of the loan.
(b) No Interest.--Any loan made under this Act shall bear no
interest.
(c) Loan Requirements.--
(1) Aggregate annual loan amounts.--The aggregate amount of
loan commitments made by the Bank in any year shall equal the
amount of the investment by the Board in the capital stock of
the Bank in such year.
(2) Investment in public school infrastructure.--The
Secretary shall set up lending guidelines for loans under this
section to ensure that 20 percent of the total amount of all
loans made to States, units of general local government, or
Indian reservations are dedicated to investment in public
school infrastructure and facilities or other public
educational facilities.
(d) Allocation Formula.--
(1) In general.--The Secretary shall establish an
allocation formula, on the basis of the total population of
each State and Indian reservation, to determine the manner in
which the total amount of loan disbursements which may be made
in any year shall be allocated among the States and Indian
tribes.
(2) Regional or multistate organization.--In developing an
allocation formula, the Secretary shall provide for the
allocation of loans to regional or multistate organizations
through appropriate adjustments of allocated amounts to the
States which established any such regional or multistate
organization.
SEC. 8. BORROWER ELIGIBILITY.
(a) In General.--Subject to subsections (b) and (c), any State, any
unit of general local government of a State, any Indian tribe, and any
regional or multistate organization shall be eligible to borrow from
the Bank under this Act to fund the development of infrastructure
facilities.
(b) State Certifying Officer.--No loans may be made to any State or
any unit of general local government of any State, or to any regional
or multistate organization to which such State is a party, unless the
State has authorized an officer of the State to--
(1) review all proposals by any officer or agency of the
State or any unit of general local government to develop an
infrastructure facility for which funding is sought from the
Bank;
(2) select and approve the proposals which meet the
requirements of this Act for funding by the Bank consistent
with the allocation formula established by the Secretary of the
Treasury, including requirements of the Bank with regard to--
(A) the establishment of sinking funds or other
amortizing mechanisms to ensure timely repayment of any
loan; and
(B) the auditing of the books and records of the
recipient of the loan; and
(3) ensure that--
(A) all proposals are financially responsible; and
(B) proposing parties have not previously defaulted
on any loan by the Bank under this Act.
(c) Secretary of the Interior.--No loans may be made to any Indian
tribe unless the Secretary of the Interior undertakes to--
(1) review all proposals by any Indian tribe to develop an
infrastructure facility for which funding is sought from the
Bank; and
(2) select and approve the proposals which meet the
requirements of this Act for funding by the Bank consistent
with the allocation formula established by the Secretary of the
Treasury, including requirements of the Bank with regard to--
(A) the establishment of sinking funds or other
amortizing mechanisms to ensure timely repayment of any
loan; and
(B) the auditing of the books and records of the
recipient of a loan.
SEC. 9. MADE IN AMERICA.
(a) Findings.--The Congress finds the following:
(1) Illegal steel dumping in domestic steel markets has
eroded the market for domestic steel.
(2) The result of this erosion of the domestic steel market
has been the recent string of bankruptcies and mill closings of
steel companies.
(3) Thousands of steel workers have lost their jobs as a
result of the bankruptcies and mill closings.
(4) There are precedents for requirements that domestic
steel and iron products be used in cases where Federal monies
are involved in infrastructure projects.
(b) Buy America.--
(1) In general.--No loan may be issued for any
infrastructure facility development project unless the Bank
receives assurances from the appropriate State certifying
officer described in subsection (a)(1) or the Secretary of the
Interior, as the case may be, that the project meets the
requirements of the Buy America Act.
(2) Regulations.--The Secretary shall prescribe such
regulations as the Secretary determines appropriate to carry
out this section.
(3) Iron and steel products.--If any iron or steel product
is involved in any infrastructure facility development project,
such product does not meet the requirement of this section
unless all manufacturing processes involved in the production
of such product, including the application of any coating, have
taken place within the United States.
SEC. 10. LABOR STANDARDS.
(a) In General.--All laborers and mechanics employed by contractors
or subcontractors in the performance of any contract and subcontract
for the construction, repair, renovation, or alteration, including
painting and decorating, of any infrastructure facility development
project that is financed in whole or in part by a loan under this Act,
shall be paid wages not less than those determined by the Secretary of
labor in accordance with the Act of March 3, 1931 (commonly known as
the Davis-Bacon Act, 40 U.S.C. 276a--276a-5). The Secretary of Labor
shall have the authority and functions set forth in Reorganization Plan
of No. 14 of 1950 (64 Stat. 1267) and section 2 of the Act of June 1,
1934 (commonly known as the Copeland Anti-Kickback Act) (40 U.S.C.
276c).
(b) Voluntary Project Labor Agreements.--
(1) In general.--Any eligible borrower, as defined in
section 8 of this Act, may require that every contractor or
subcontractor on a project assisted by a loan under this Act
agree, for that project only, to negotiate or become a party to
a project labor agreement with 1 or more appropriate labor
organizations. The borrower has complete discretion whether to
include such a requirement--
(A) where a project labor agreement will advance
the procurement interest of the borrower in cost,
efficiency, and quality and in promoting labor-
management stability as well as compliance with
applicable legal requirements governing safety and
health, equal employment opportunity, labor and
employment standards, and other matters; and
(B) where no laws applicable to the specific
construction project preclude the use of the proposed
project labor agreement.
(2) Requirements.--Any project labor agreement reached
pursuant to this section--
(A) shall bind all contractors and subcontractors
on the construction project through the inclusion of
appropriate clauses in all relevant solicitation
provisions and contract documents;
(B) shall allow all contractors and subcontractors
wishing to compete for contracts and subcontracts on
the project to do so, without discrimination against
contractors, subcontractors, or employees based on
union or nonunion status;
(C) shall contain guarantees against strikes,
lockouts, and similar work disruptions;
(D) shall set forth effective, prompt, and mutually
binding procedures for resolving labor disputes arising
during the project;
(E) shall provide other mechanisms for labor-
management cooperation on matters of mutual interest
and concern, including productivity, quality of work,
safety, and health; and
(F) shall fully conform to all applicable statutes
and regulations.
(3) Voluntary agreements.--No provision of this section may
be construed as--
(A) requiring a borrower to use a project labor
agreement on any project;
(B) precluding use of a project labor agreement in
circumstances not covered under this section; or
(C) requiring contractors to enter into a project
labor agreement with any particular labor organization.
(c) Rule of Construction.--No provision of this section may be
construed as creating any right or benefit, substantive or procedural,
enforceable by a non-Federal party against the United States, its
departments, agencies or instrumentalities, its officers or employees,
or any other person, including the borrower.
SEC. 11. ADMINISTRATIVE PROVISIONS.
(a) Minimum Phase-in Period.--Loans made under section 7 shall be
disbursed by the Bank immediately or over the construction or
development period of the project as needed so as to accommodate more
loan requests. The payout in any given year shall be no less than 20
percent of the total amount authorized.
(b) Period to Maturity.--The period to maturity of any loan made
under section 7 shall not be less than 10 years nor more than 30 years,
at the discretion of the borrower, but may be paid earlier.
(c) Administrative Fees.--The Bank shall impose an administrative
fee of not more than one-quarter of 1 percent on each recipient of a
loan, sufficient to cover administrative costs incurred by the Bank,
including overhead, in administering such loan.
(d) Collection of Principal and Fees.--The Bank shall enforce
collection of any loan in which 2 or more payments are due and payable.
To that end, the Bank shall be empowered to enter Federal district
court to seek an order to attach property of the borrower, up to the
amount necessary to end the delinquency. The cost of collection shall
be added to the balance of the loan. The borrower shall continue to
make semiannual payments of the same amount until the entire balance,
including fees, is paid.
SEC. 12. ABOLISHMENT OF BANK.
(a) Winding Up Operations.--The Bank shall wind up the affairs of
the Bank during the 6-month period ending on the date the last
outstanding loan issued by the Bank under this Act is repaid.
(b) Bank Abolished.--Effective at the end of the 30-day period
beginning on the date described in subsection (a), the Bank is hereby
abolished.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Financial Services, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Financial Services, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Financial Services, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Financial Services, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Coast Guard and Maritime Transportation.
Referred to the Subcommittee on Highways, Transit and Pipelines.
Referred to the Subcommittee on Railroads.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line
Referred to the Subcommittee on Water Resources and Environment.
Referred to the Subcommittee on Domestic and International Monetary Policy, Trade, and Technology.