[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3527 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3527

     To provide financial assistance to Mexican border States for 
  transportation projects that are necessary to accommodate increased 
 traffic resulting from the implementation of the North American Free 
                            Trade Agreement.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 23, 1996

  Mr. Kim (for himself, Mr. Bilbray, Mr. Cunningham, Mr. Bonilla, Mr. 
 Horn, Mrs. Seastrand, Mr. Bono, Mr. Dreier, Mr. Calvert, Mr. McKeon, 
 Mr. Doolittle, and Mr. Moorhead) introduced the following bill; which 
   was referred to the Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL


 
     To provide financial assistance to Mexican border States for 
  transportation projects that are necessary to accommodate increased 
 traffic resulting from the implementation of the North American Free 
                            Trade Agreement.

    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 ``NAFTA Infrastructure Responsibility 
Act of 1996''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the United States Customs Service collects over 
        $600,000,000 per year in duties, fees, excise taxes, and fines 
        from crossings of the border of the United States and Mexico;
            (2) although the United States Customs Service has 
        collected increased duties, merchandise fees, and revenues from 
        other commerce-related activities because of the ratification 
        and implementation of the North American Free Trade Agreement, 
        these increased revenues have not been accompanied by Federal 
        funding for improving transportation facilities along the 
        border of the United States and Mexico to ensure the free and 
        safe flow of trade destined for all States and regions of the 
        United States;
            (3) because of NAFTA, all 4 States along the border of the 
        United States and Mexico will require significant investments 
        in highway infrastructure capacity and motor carrier safety 
        enforcement at a time when such States face extreme difficulty 
        in obtaining funds to maintain current highway conditions;
            (4) the full benefits of increased international trade can 
        be realized only if delays at the border of the United States 
        and Mexico are significantly reduced; and
            (5) the increased revenues described in paragraph (2) 
        should be used to provide Federal funding for transportation 
        improvements required to accommodate NAFTA-generated traffic, 
        in an amount above and beyond regular Federal transportation 
        funding apportionments, obligational authority, and minimum 
        allocation funds under title 23, United States Code, the 
        Intermodal Surface Transportation Efficiency Act of 1991 
        (Public Law 102-240), and other laws.

SEC. 3. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Commercial motor vehicle.--The term ``commercial motor 
        vehicle'' means a motor vehicle that is used in commerce to 
        transport passengers or property and has a gross vehicle weight 
        rating of 26,001 or more pounds.
            (2) Major mexican border crossing facility.--The term 
        ``major Mexican border crossing facility'' means a Mexican 
        border crossing facility used by 150,000 or more northbound 
        commercial motor vehicles in a calendar year.
            (3) Mexican border crossing facility.--The term ``Mexican 
        border crossing facility'' means a Federal facility located in 
the United States that is used to enter the United States from Mexico.
            (4) Mexican border state.--The term ``Mexican border 
        State'' means California, Arizona, New Mexico, and Texas.
            (5) Minor mexican border crossing facility.--The term 
        ``minor Mexican border crossing facility'' means a Mexican 
        border crossing facility used by less than 150,000 northbound 
        commercial motor vehicles in a calendar year.
            (6) NAFTA.--The term ``NAFTA'' means the North American 
        Free Trade Agreement.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.

SEC. 4. DIRECT FEDERAL ASSISTANCE FOR BORDER CONSTRUCTION AND 
              CONGESTION RELIEF.

    (a) In General.--The Secretary shall make grants under subsections 
(b) and (c) to eligible recipients that submit to the Secretary an 
application that demonstrates need, due to increased traffic resulting 
from the implementation of NAFTA, for assistance in carrying out 
transportation projects that are necessary to relieve traffic 
congestion and improve enforcement of motor carrier safety laws.
    (b) Grants for Connectors to Mexican Border Crossing Facilities.--
The Secretary shall make grants to Mexican border States and units of 
general purpose local government in Mexican border States for the 
purposes of--
            (1) connecting the National Highway System designated under 
        section 103(b) of title 23, United States Code, with Mexican 
        border crossing facilities; and
            (2) upgrading connectors described in paragraph (1) that 
        are in existence as of the date of the grant.
    (c) Grants for Commercial Motor Vehicle Enforcement Facilities.--
The Secretary shall make grants to Mexican border States to construct, 
operate, and maintain commercial motor vehicle enforcement facilities.
    (d) Location of Projects.--All projects carried out using amounts 
from grants made available under this section shall be located in the 
United States and within 60 miles of the border of the United States 
and Mexico, except as specifically approved by the Secretary.
    (e) Apportionment of Amounts.--
            (1) In general.--The Secretary shall apportion the amounts 
        appropriated for a fiscal year for making grants under this 
        section among the Mexican border States as follows:
                    (A) 90 percent in the ratio which the number of 
                major Mexican border crossing facilities in each 
                Mexican border State bears to the total number of major 
                Mexican border crossing facilities in all Mexican 
                border States, as determined by the Secretary under 
                paragraph (2).
                    (B) 10 percent in the ratio which the number of 
                minor Mexican border crossing facilities in each 
                Mexican border State bears to the total number of minor 
                Mexican border crossing facilities in all Mexican 
                border States, as determined by the Secretary under 
                paragraph (2).
            (2) Determinations.--The Secretary shall make each 
        determination required by paragraph (1) concerning the number 
        of commercial motor vehicles using a Mexican border crossing 
        facility on an annual basis using the most recent calendar year 
        information that can be obtained from the United States Customs 
        Service.
    (f) Cost Sharing.--A grant under this section shall be used to pay 
the Federal share of the cost of a project. The Federal share shall be 
80 percent.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $100,000,000 for each of fiscal 
years 1997 through 2002.

SEC. 5. BORDER INFRASTRUCTURE INNOVATIVE FINANCING.

    (a) Purposes.--The purposes of this section are--
            (1) to encourage the establishment and operation of State 
        infrastructure banks in accordance with section 350 of the 
        National Highway System Designation Act of 1995 (109 Stat. 618; 
        23 U.S.C. 101 note); and
            (2) to advance transportation infrastructure projects 
        supporting international trade and commerce.
    (b) Federal Line of Credit.--Section 350 of the National Highway 
System Designation Act of 1995 (109 Stat. 618; 23 U.S.C. 101 note) is 
amended--
            (1) by redesignating subsection (l) as subsection (m); and
            (2) by inserting after subsection (k) the following:
    ``(l) Federal Line of Credit.--
            ``(1) In general.--There is authorized to be appropriated 
        from the general fund of the Treasury $98,000,000 to be used by 
        the Secretary to enter into agreements with Mexican border 
        States that have established infrastructure banks under this 
        section to make lines of credit available to the States.
            ``(2) Amount.--The line of credit available to each 
        participating Mexican border State shall be equal to the 
        product of--
                    ``(A) the amount appropriated under paragraph (1); 
                and
                    ``(B) the quotient obtained by dividing--
                            ``(i) the contributions of the Mexican 
                        border State to the Highway Trust Fund during 
                        the preceding fiscal year; and
                            ``(ii) the total contributions of all 
                        participating Mexican border States with 
                        infrastructure banks to the Highway Trust Fund 
                        during the preceding fiscal year.
            ``(3) Use of line of credit.--The line of credit under this 
        subsection shall be available to provide Federal support in 
        accordance with this subsection to a State infrastructure bank 
        engaged in providing credit enhancement for projects to 
        construct Federal-aid highways which will support a significant 
        amount of traffic resulting from NAFTA.
            ``(4) Limitations.--
                    ``(A) In general.--A line of credit under this 
                subsection may be drawn on only--
                            ``(i) with respect to a completed project 
                        described in paragraph (3) that is receiving 
                        credit enhancement through an infrastructure 
                        bank;
                            ``(ii) when the cash balance available in 
                        the infrastructure bank is insufficient to pay 
                        a claim for payment relating to the project; 
                        and
                            ``(iii) when all subsequent revenues of the 
                        project have been pledged to the infrastructure 
                        bank.
                    ``(B) Third party creditor rights.--No third party 
                creditor of a public or private entity carrying out a 
                project eligible for assistance from an infrastructure 
                bank shall have any right against the Federal 
                Government with respect to a line of credit under this 
                subsection, including any guarantee that the proceeds 
                of a line of credit will be available for the payment 
                of any particular cost of the public or private entity 
                that may be financed under this subsection.
            ``(5) Interest rate and repayment period.--Any draw on a 
        line of credit under this subsection shall--
                    ``(A) accrue, beginning on the date the draw is 
                made, interest at a rate equal to the current (as of 
                the date the draw is made) market yield on outstanding, 
                marketable obligations of the United States with 
                maturities of 30 years; and
                    ``(B) shall be repaid within a period of not more 
                than 30 years.
            ``(6) Relationship to state apportionment.--Funds made 
        available to States to carry out this subsection shall be in 
        addition to funds apportioned to States under section 104 of 
        title 23, United States Code.
            ``(7) Mexican border state defined.--The term `Mexican 
        border State' means California, Arizona, New Mexico, and 
        Texas.''.
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