[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1063 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                S. 1063

 To permit State and local governments to transfer--by sale or lease--
   Federal-aid facilities to the private sector without repayment of 
  Federal grants, provided the facility continues to be used for its 
               original purpose, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 21 (legislative day, July 10), 1995

   Mr. Roth introduced the following bill; which was read twice and 
            referred to the Committee on Government Affairs

_______________________________________________________________________

                                 A BILL


 
 To permit State and local governments to transfer--by sale or lease--
   Federal-aid facilities to the private sector without repayment of 
  Federal grants, provided the facility continues to be used for its 
               original purpose, 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 ``Federal-aid Facility Privatization 
Act of 1995''.

SEC. 2. DEFINITIONS.

    For purposes of this title:
            (a) ``Privatization'' means the disposition or transfer of 
        an infrastructure asset, whether by sale, lease, or similar 
        arrangement, from a State or local government to a private 
        party.
            (b) ``Infrastructure asset'' means any asset financed in 
        whole or in part by the Federal Government and needed for the 
        functioning of the economy. Examples of such assets include, 
        but are not limited to: roads, tunnels, bridges, electricity 
        supply facilities, mass transit, rail transportation, airports, 
        ports, waterways, water supply and delivery facilities, 
        recycling and wastewater treatment facilities, solid waste 
        disposal facilities, housing, schools, prisons, and hospitals.
            (c) ``Originally authorized purposes'' means the general 
        objectives of the original grant program; however, the term is 
        not intended to include every condition required for a grantee 
        to have obtained the original grant.
            (d) ``State and local governments'' means the government of 
        any State of the United States, the District of Columbia, any 
        commonwealth, territory or possession of the United States, and 
        any county, municipality, city, town, township, local public 
        authority, school district, special district, intrastate 
        district, regional or interstate government entity, council of 
        governments, and any agency of instrumentality of a local 
        government, and any federally recognized Indian Tribe.

SEC. 3. PRIVATIZATION INITIATIVES BY STATE AND LOCAL GOVERNMENTS.

    The head of each executive department and agency shall undertake 
the following actions:
            (a) Assist State and local governments in their efforts to 
        privatize their infrastructure assets.
            (b) Approve requests from State and local governments to 
        privatize infrastructure assets and waive or modify any grant 
        assurance, consistent with section 4.

SEC. 4. CRITERIA.

    The head of an executive department or agency shall approve a 
request if--
            (a) the State or local government demonstrates that a 
        market mechanism, legally enforceable agreement, or regulatory 
        mechanism will ensure that the infrastructure asset or assets 
        continue to be used for their originally authorized purposes, 
        so long as needed for those purposes; and
            (b) the private party purchasing or leasing the 
        infrastructure asset agrees to comply with all applicable grant 
        assurances.

SEC. 5. NO OBLIGATION TO REPAY FEDERAL GRANT MONIES.

    A State or local government shall have no obligation to repay to 
any agency of the Federal government any federal grant monies received 
by the State or local government in connection with the infrastructure 
asset that is being privatized.

SEC. 6. USE OF PROCEEDS.

    A State or local government may use proceeds from the privatization 
of an infrastructure asset to the extent permitted under applicable 
grant assurances and provisions. Notwithstanding any other provision of 
law, the State or local government shall be permitted to recover its 
capital investment, an amount equal to its unreimbursed operating 
expenses in any infrastructure asset, and a reasonable rate of return.
                                 <all>