[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1109 Introduced in Senate (IS)]



108th CONGRESS
  1st Session
                                S. 1109

To provide $50,000,000,000 in new transportation infrastructure funding 
  through Federal bonding to empower States and local governments to 
   complete significant infrastructure projects across all modes of 
 transportation, including roads, rail, transit, aviation, and water, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 22, 2003

 Mr. Talent (for himself and Mr. Wyden) introduced the following bill; 
        which was read twice and referred to the Committee on FinanceYY

_______________________________________________________________________

                                 A BILL


 
To provide $50,000,000,000 in new transportation infrastructure funding 
  through Federal bonding to empower States and local governments to 
   complete significant infrastructure projects across all modes of 
 transportation, including roads, rail, transit, aviation, and water, 
                        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; ETC.

    (a) Short Title.--This Act may be cited as the ``Build America 
Bonds Act of 2003''.
    (b) References to Internal Revenue Code of 1986.--Except as 
otherwise expressly provided, whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal of, a 
section or other provision, the reference shall be considered to be 
made to a section or other provision of the Internal Revenue Code of 
1986.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Our Nation's highways, transit systems, railroads, 
        airports, ports, and inland waterways drive our economy, 
        enabling all industries to achieve growth and productivity that 
        makes America strong and prosperous.
            (2) The establishment, maintenance, and improvement of the 
        national transportation network is a national priority, for 
        economic, environmental, energy, security, and other reasons.
            (3) The ability to move people and goods is critical to 
        maintaining State, metropolitan, rural, and local economies.
            (4) The construction of infrastructure requires the skills 
        of numerous occupations, including those in the contracting, 
        engineering, planning and design, materials supply, 
        manufacturing, distribution, and safety industries.
            (5) Investing in transportation infrastructure creates 
        long-term capital assets for the Nation that will help the 
        United States address its enormous infrastructure needs and 
        improve its economic productivity.
            (6) Investment in transportation infrastructure creates 
        jobs and spurs economic activity to put people back to work and 
        stimulate the economy.
            (7) Every billion dollars in transportation investment has 
        the potential to create up to 47,500 jobs.
            (8) Every dollar invested in the Nation's transportation 
        infrastructure yields at least $5.70 in economic benefits 
        because of reduced delays, improved safety, and reduced vehicle 
        operating costs.

SEC. 3. CREDIT TO HOLDERS OF BUILD AMERICA BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 (relating to 
credits against tax) is amended by adding at the end the following new 
subpart:

  ``Subpart H--Nonrefundable Credit for Holders of Build America Bonds

                              ``Sec. 54. Credit to holders of Build 
                                        America bonds.

``SEC. 54. CREDIT TO HOLDERS OF BUILD AMERICA BONDS.

    ``(a) Allowance of Credit.--In the case of a taxpayer who holds a 
Build America bond on a credit allowance date of such bond which occurs 
during the taxable year, there shall be allowed as a credit against the 
tax imposed by this chapter for such taxable year an amount equal to 
the sum of the credits determined under subsection (b) with respect to 
credit allowance dates during such year on which the taxpayer holds 
such bond.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a Build America bond is 25 percent of the annual credit 
        determined with respect to such bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any Build America bond is the product of--
                    ``(A) the applicable credit rate, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Applicable credit rate.--For purposes of paragraph 
        (2), the applicable credit rate with respect to an issue is the 
        rate equal to an average market yield (as of the day before the 
        date of sale of the issue) on outstanding long-term corporate 
        debt obligations (determined in such manner as the Secretary 
        prescribes).
            ``(4) Credit allowance date.--For purposes of this section, 
        the term `credit allowance date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
            ``(5) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than this subpart and subpart C).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year.
    ``(d) Credit Included in Gross Income.--Gross income includes the 
amount of the credit allowed to the taxpayer under this section 
(determined without regard to subsection (c)) and the amount so 
included shall be treated as interest income.
    ``(e) Build America Bond.--For purposes of this part, the term 
`Build America bond' means any bond issued as part of an issue if--
            ``(1) 95 percent or more of the proceeds from the sale of 
        such issue are to be used--
                    ``(A) for expenditures incurred after the date of 
                the enactment of this section for any qualified 
                project, or
                    ``(B) for deposit in the Build America Trust 
                Account for repayment of Build America bonds at 
                maturity,
            ``(2) the bond is issued by the Build America Corporation, 
        is in registered form, and meets the Build America bond 
        limitation requirements under subsection (f),
            ``(3) the Build America Corporation certifies that it meets 
        the State contribution requirement of subsection (k) with 
        respect to such project, as in effect on the date of issuance,
            ``(4) the Build America Corporation certifies that the 
        State in which an approved qualified project is located meets 
        the requirement described in subsection (l),
            ``(5) except for bonds issued in accordance with subsection 
        (f)(4), the term of each bond which is part of such issue does 
        not exceed 30 years,
            ``(6) the payment of principal with respect to such bond is 
        the obligation of the Build America Corporation, and
            ``(7) the issue meets the requirements of subsection (g) 
        (relating to arbitrage).
    ``(f) Limitation on Amount of Bonds Designated.--
            ``(1) National limitation.--There is a Build America bond 
        limitation for each calendar year. Such limitation is--
                    ``(A) for 2004--
                            ``(i) with respect to bonds described in 
                        subsection (e)(1)(A), $50,000,000,000, plus
                            ``(ii) with respect to bonds described in 
                        subsection (e)(1)(B), such amount (not to 
                        exceed $15,000,000,000) as determined necessary 
                        by the Build America Corporation to provide 
                        funds in the Build America Trust Account for 
                        the repayment of Build America bonds at 
                        maturity, and
                    ``(B) except as provided in paragraph (3), zero 
                thereafter.
            ``(2) Limitation allocated to qualified projects among 
        states.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                limitation applicable under paragraph (1)(A)(i) for any 
                calendar year shall be allocated by the Build America 
                Corporation for qualified projects among the States 
                under an allocation plan established by the Corporation 
                and submitted to Congress for consideration.
                    ``(B) Minimum allocations to states.--In 
                establishing the allocation plan under subparagraph 
                (A), the Build America Corporation shall ensure that 
                the aggregate amount allocated for qualified projects 
                located in each State under such plan is not less than 
                $500,000,000.
            ``(3) Carryover of unused limitation.--If for any calendar 
        year--
                    ``(A) the Build America bond limitation amount, 
                exceeds
                    ``(B) the amount of bonds issued during such year 
                by the Build America Corporation,
        the Build America bond limitation amount for the following 
        calendar year shall be increased by the amount of such excess. 
        Any carryforward of a Build America bond limitation amount may 
        be carried only to calendar year 2005 or 2006.
            ``(4) Issuance of small denomination bonds.--From the Build 
        America bond limitation for each year, the Build America 
        Corporation shall issue a limited quantity of Build America 
        bonds in small denominations suitable for purchase as gifts by 
        individual investors wishing to show their support for 
        investing in America's infrastructure.
    ``(g) Special Rules Relating to Arbitrage.--
            ``(1) In general.--Subject to paragraph (2), an issue shall 
        be treated as meeting the requirements of this subsection if as 
        of the date of issuance, the Build America Corporation 
        reasonably expects--
                    ``(A) to spend at least 95 percent of the proceeds 
                from the sale of the issue for 1 or more qualified 
                projects within the 3-year period beginning on such 
                date,
                    ``(B) to incur a binding commitment with a third 
                party to spend at least 10 percent of the proceeds from 
                the sale of the issue, or to commence construction, 
                with respect to such projects within the 6-month period 
                beginning on such date, and
                    ``(C) to proceed with due diligence to complete 
                such projects and to spend the proceeds from the sale 
                of the issue.
            ``(2) Rules regarding continuing compliance after 3-year 
        determination.--If at least 95 percent of the proceeds from the 
        sale of the issue is not expended for 1 or more qualified 
        projects within the 3-year period beginning on the date of 
        issuance, but the requirements of paragraph (1) are otherwise 
met, an issue shall be treated as continuing to meet the requirements 
of this subsection if either--
                    ``(A) the Build America Corporation uses all 
                unspent proceeds from the sale of the issue to redeem 
                bonds of the issue within 90 days after the end of such 
                3-year period, or
                    ``(B) the following requirements are met:
                            ``(i) The Build America Corporation spends 
                        at least 75 percent of the proceeds from the 
                        sale of the issue for 1 or more qualified 
                        projects within the 3-year period beginning on 
                        the date of issuance.
                            ``(ii) The Build America Corporation spends 
                        at least 95 percent of the proceeds from the 
                        sale of the issue for 1 or more qualified 
                        projects within the 4-year period beginning on 
                        the date of issuance, and uses all unspent 
                        proceeds from the sale of the issue to redeem 
                        bonds of the issue within 90 days after the end 
                        of the 4-year period beginning on the date of 
                        issuance.
    ``(h) Recapture of Portion of Credit Where Cessation of 
Compliance.--
            ``(1) In general.--If any bond which when issued purported 
        to be a Build America bond ceases to be such a qualified bond, 
        the Build America Corporation shall pay to the United States 
        (at the time required by the Secretary) an amount equal to the 
        sum of--
                    ``(A) the aggregate of the credits allowable under 
                this section with respect to such bond (determined 
                without regard to subsection (c)) for taxable years 
                ending during the calendar year in which such cessation 
                occurs and the 2 preceding calendar years, and
                    ``(B) interest at the underpayment rate under 
                section 6621 on the amount determined under 
                subparagraph (A) for each calendar year for the period 
                beginning on the first day of such calendar year.
            ``(2) Failure to pay.--If the Build America Corporation 
        fails to timely pay the amount required by paragraph (1) with 
        respect to such bond, the tax imposed by this chapter on each 
        holder of any such bond which is part of such issue shall be 
        increased (for the taxable year of the holder in which such 
        cessation occurs) by the aggregate decrease in the credits 
        allowed under this section to such holder for taxable years 
        beginning in such 3 calendar years which would have resulted 
        solely from denying any credit under this section with respect 
        to such issue for such taxable years.
            ``(3) Special rules.--
                    ``(A) Tax benefit rule.--The tax for the taxable 
                year shall be increased under paragraph (2) only with 
                respect to credits allowed by reason of this section 
                which were used to reduce tax liability. In the case of 
                credits not so used to reduce tax liability, the 
                carryforwards and carrybacks under section 39 shall be 
                appropriately adjusted.
                    ``(B) No credits against tax.--Any increase in tax 
                under paragraph (2) shall not be treated as a tax 
                imposed by this chapter for purposes of determining--
                            ``(i) the amount of any credit allowable 
                        under this part, or
                            ``(ii) the amount of the tax imposed by 
                        section 55.
    ``(i) Build America Trust Account.--
            ``(1) In general.--The following amounts shall be held in a 
        Build America Trust Account by the Build America Corporation:
                    ``(A) The proceeds from the sale of all bonds 
                issued under this section.
                    ``(B) The amount of any matching contributions with 
                respect to such bonds.
                    ``(C) The investment earnings on proceeds from the 
                sale of such bonds.
                    ``(D) Any earnings on any amounts described in 
                subparagraph (A), (B), or (C).
            ``(2) Use of funds.--Amounts in the Build America Trust 
        Account may be used only to pay costs of qualified projects, 
        redeem Build America bonds, and fund the operations of the 
        Build America Corporation, except that amounts withdrawn from 
        the Build America Trust Account to pay costs of qualified 
        projects may not exceed the aggregate proceeds from the sale of 
        Build America bonds described in subsection (e)(1)(A).
            ``(3) Use of remaining funds in build america trust 
        account.--Upon the redemption of all Build America bonds issued 
        under this section, any remaining amounts in the Build America 
        Trust Account shall be available to the Build America 
        Corporation for any qualified project.
    ``(j) Qualified Project.--For purposes of this section--
            ``(1) In general.--The term `qualified project' means the 
        financing of capital improvements for any transportation 
        infrastructure project of any governmental unit or other 
        person, including highways, transit systems, railroads, 
        airports, ports, and inland waterways, proposed by a State and 
        approved by the Build America Corporation.
            ``(2) Approval guidelines and criteria.--Not later than 60 
        days after the date of the enactment of this section, the Build 
        America Corporation shall consult with the appropriate 
        committees of Congress regarding the development of guidelines 
        and criteria for the approval by the Corporation of projects as 
        qualified projects for inclusion in the allocation plan 
        established under subsection (f)(2)(A) and shall submit such 
        guidelines and criteria to such committees. The guidelines and 
        criteria shall--
                    ``(A) to the maximum extent, be consistent with 
                statutory provisions governing the approval of 
                transportation projects, as in effect on such date, and
                    ``(B) require the Build America Corporation--
                            ``(i) to base such approval on--
                                    ``(I) the results of alternatives 
                                analysis and preliminary engineering, 
                                and
                                    ``(II) a comprehensive review of 
                                mobility improvements, environmental 
                                benefits, cost effectiveness, and 
                                operating efficiencies, and
                            ``(ii) to give preference to--
                                    ``(I) projects supported by 
                                evidence of stable and dependable 
                                financing sources to construct, 
                                maintain, and operate the 
                                infrastructure,
                                    ``(II) projects expected to have a 
                                significant impact on traffic 
                                congestion, and
                                    ``(III) projects which promote 
                                regional balance in infrastructure 
                                investment.
    ``(k) State Contribution Requirements.--
            ``(1) In general.--For purposes of subsection (e)(3), the 
        State contribution requirement of this subsection is met with 
        respect to any qualified project if the Build America 
        Corporation has received from 1 or more States, not later than 
        the date of issuance of the bond, written commitments for 
        matching contributions of not less than 20 percent of the cost 
        of the qualified project.
            ``(2) State matching contributions may not include federal 
        funds.--For purposes of this subsection, State matching 
        contributions shall not be derived, directly or indirectly, 
        from Federal funds, including any transfers from the Highway 
        Trust Fund under section 9503.
    ``(l) Utilization of Updated Construction Technology for Qualified 
Projects.--For purposes of subsection (e)(4), the requirement of this 
subsection is met if the appropriate State agency relating to the 
qualified project has updated its accepted construction technologies to 
match a list prescribed by the Secretary of Transportation and in 
effect on the date of the approval of the project as a qualified 
project.
    ``(m) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Bond.--The term `bond' includes any obligation.
            ``(2) Treatment of changes in use.--For purposes of 
        subsection (e)(1)(A), the proceeds from the sale of an issue 
        shall not be treated as used for a qualified project to the 
        extent that the Build America Corporation takes any action 
        within its control which causes such proceeds not to be used 
        for a qualified project. The Secretary shall specify remedial 
        actions that may be taken (including conditions to taking such 
        remedial actions) to prevent an action described in the 
        preceding sentence from causing a bond to fail to be a Build 
        America bond.
            ``(3) Partnership; s corporation; and other pass-thru 
        entities.--In the case of a partnership, trust, S corporation, 
        or other pass-thru entity, rules similar to the rules of 
        section 41(g) shall apply with respect to the credit allowable 
        under subsection (a).
            ``(4) Bonds held by regulated investment companies.--If any 
        Build America bond is held by a regulated investment company, 
        the credit determined under subsection (a) shall be allowed to 
        shareholders of such company under procedures prescribed by the 
        Secretary.
            ``(5) Credits may be stripped.--Under regulations 
        prescribed by the Secretary--
                    ``(A) In general.--There may be a separation 
                (including at issuance) of the ownership of a Build 
                America bond and the entitlement to the credit under 
                this section with respect to such bond. In case of any 
                such separation, the credit under this section shall be 
                allowed to the person who on the credit allowance date 
                holds the instrument evidencing the entitlement to the 
                credit and not to the holder of the bond.
                    ``(B) Certain rules to apply.--In the case of a 
                separation described in subparagraph (A), the rules of 
                section 1286 shall apply to the Build America bond as 
                if it were a stripped bond and to the credit under this 
                section as if it were a stripped coupon.
            ``(6) Reporting.--The Build America Corporation shall 
        submit reports similar to the reports required under section 
        149(e).''.
    (b) Amendments to Other Code Sections.--
            (1) Reporting.--Subsection (d) of section 6049 (relating to 
        returns regarding payments of interest) is amended by adding at 
        the end the following new paragraph:
            ``(8) Reporting of credit on build america bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54(d) and such amounts shall 
                be treated as paid on the credit allowance date (as 
defined in section 54(b)(4)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A), subsection 
                (b)(4) shall be applied without regard to subparagraphs 
                (A), (H), (I), (J), (K), and (L)(i) of such subsection.
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''.
            (2) Treatment for estimated tax purposes.--
                    (A) Individual.--Section 6654 (relating to failure 
                by individual to pay estimated income tax) is amended 
                by redesignating subsection (m) as subsection (n) and 
                by inserting after subsection (l) the following new 
                subsection:
    ``(m) Special Rule for Holders of Build America Bonds.--For 
purposes of this section, the credit allowed by section 54 to a 
taxpayer by reason of holding a Build America bond on a credit 
allowance date shall be treated as if it were a payment of estimated 
tax made by the taxpayer on such date.''.
                    (B) Corporate.--Subsection (g) of section 6655 
                (relating to failure by corporation to pay estimated 
                income tax) is amended by adding at the end the 
                following new paragraph:
            ``(5) Special rule for holders of build america bonds.--For 
        purposes of this section, the credit allowed by section 54 to a 
        taxpayer by reason of holding a Build America bond on a credit 
        allowance date shall be treated as if it were a payment of 
        estimated tax made by the taxpayer on such date.''.
    (c) Clerical Amendments.--
            (1) The table of subparts for part IV of subchapter A of 
        chapter 1 is amended by adding at the end the following new 
        item:

                              ``Subpart H. Nonrefundable Credit for 
                                        Holders of Build America 
                                        Bonds.''.
            (2) Section 6401(b)(1) is amended by striking ``and G'' and 
        inserting ``G, and H''.
    (d) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 4. BUILD AMERICA CORPORATION.

    (a) Establishment and Status.--There is established a body 
corporate to be known as the ``Build America Corporation'' (hereafter 
in this section referred to as the ``Corporation''). The Corporation is 
not a department, agency, or instrumentality of the United States 
Government, and shall not be subject to title 31, United States Code.
    (b) Principal Office; Application of Laws.--The principal office 
and place of business of the Corporation shall be in the District of 
Columbia, and, to the extent consistent with this section, the District 
of Columbia Business Corporation Act (D.C. Code 29-301 et seq.) shall 
apply.
    (c) Functions of Corporation.--The Corporation shall--
            (1) issue Build America bonds for the financing of 
        qualified projects as required under section 54 of the Internal 
        Revenue Code of 1986,
            (2) establish an allocation plan as required under section 
        54(f)(2)(A) of such Code,
            (3) establish and operate the Build America Trust Account 
        as required under section 54(i) of such Code,
            (4) perform any other function the sole purpose of which is 
        to carry out the financing of qualified projects through Build 
        America bonds, and
            (5) not later than February 15 of each year submit a report 
        to Congress--
                    (A) describing the activities of the Corporation 
                for the preceding year, and
                    (B) specifying whether the amounts deposited and 
                expected to be deposited in the Build America Trust 
                Account are sufficient to fully repay at maturity the 
                principal of any outstanding Build America bonds issued 
                pursuant to such section 54.
    (d) Powers of Corporation.--The Corporation--
            (1) may sue and be sued, complain and defend, in its 
        corporate name, in any court of competent jurisdiction,
            (2) may adopt, alter, and use a seal, which shall be 
        judicially noticed,
            (3) may prescribe, amend, and repeal such rules and 
        regulations as may be necessary for carrying out the functions 
        of the Corporation,
            (4) may make and perform such contracts and other 
        agreements with any individual, corporation, or other private 
        or public entity however designated and wherever situated, as 
        may be necessary for carrying out the functions of the 
        Corporation,
            (5) may determine and prescribe the manner in which its 
        obligations shall be incurred and its expenses allowed and 
        paid,
            (6) may, as necessary for carrying out the functions of the 
        Corporation, employ and fix the compensation of employees and 
        officers,
            (7) may lease, purchase, or otherwise acquire, own, hold, 
        improve, use, or otherwise deal in and with such property 
        (real, personal, or mixed) or any interest therein, wherever 
        situated, as may be necessary for carrying out the functions of 
        the Corporation,
            (8) may accept gifts or donations of services or of 
        property (real, personal, or mixed), tangible or intangible, in 
        furtherance of the purposes of this Act, and
            (9) shall have such other powers as may be necessary and 
        incident to carrying out this Act.
    (e) Nonprofit Entity; Restriction on Use of Moneys; Conflict of 
Interests; Independent Audits.--
            (1) Nonprofit entity.--The Corporation shall be a nonprofit 
        corporation and shall have no capital stock.
            (2) Restriction.--No part of the Corporation's revenue, 
        earnings, or other income or property shall inure to the 
        benefit of any of its directors, officers, or employees, and 
        such revenue, earnings, or other income or property shall only 
        be used for carrying out the purposes of this Act.
            (3) Conflict of interests.--No director, officer, or 
        employee of the Corporation shall in any manner, directly or 
        indirectly participate in the deliberation upon or the 
        determination of any question affecting his or her personal 
        interests or the interests of any corporation, partnership, or 
        organization in which he or she is directly or indirectly 
        interested.
            (4) Independent audits.--An independent certified public 
        accountant shall audit the financial statements of the 
        Corporation each year. The audit shall be carried out at the 
        place at which the financial statements normally are kept and 
        under generally accepted auditing standards. A report of the 
        audit shall be available to the public and shall be included in 
        the report required under subsection (c)(5).
    (f) Tax Exemption.--The Corporation, including its franchise and 
income, is exempt from taxation imposed by the United States, by any 
territory or possession of the United States, or by any State, county, 
municipality, or local taxing authority.
    (g) Management of Corporation.--
            (1) Board of directors; membership; designation of 
        chairperson and vice chairperson; appointment considerations; 
        term; vacancies.--
                    (A) Board of directors.--The management of the 
                Corporation shall be vested in a board of directors 
                composed of 7 members appointed by the President, by 
                and with the advice and consent of the Senate.
                    (B) Chairperson and vice chairperson.--The 
                President shall designate 1 member of the Board to 
                serve as Chairperson of the Board and 1 member to serve 
                as Vice Chairperson of the Board.
                    (C) Individuals from private life.--Five members of 
                the Board shall be appointed from private life.
                    (D) Federal officers and employees.--Two members of 
                the Board shall be appointed from among officers and 
                employees of agencies of the United States concerned 
                with infrastructure development.
                    (E) Appointment considerations.--All members of the 
                Board shall be appointed on the basis of their 
                understanding of and sensitivity to infrastructure 
                development processes. Members of the Board shall be 
                appointed so that not more than 4 members of the Board 
                are members of any 1 political party.
                    (F) Terms.--Members of the Board shall be appointed 
                for terms of 3 years, except that of the members first 
                appointed, as designated by the President at the time 
                of their appointment, 2 shall be appointed for terms of 
                1 year and 2 shall be appointed for terms of 2 years.
                    (G) Vacancies.--A member of the Board appointed to 
                fill a vacancy occurring before the expiration of the 
                term for which that member's predecessor was appointed 
                shall be appointed only for the remainder of that term. 
                Upon the expiration of a member's term, the member 
                shall continue to serve until a successor is appointed 
                and is qualified.
            (2) Compensation, actual, necessary, and transportation 
        expenses.--Members of the Board shall serve without additional 
        compensation, but may be reimbursed for actual and necessary 
        expenses not exceeding $100 per day, and for transportation 
        expenses, while engaged in their duties on behalf of the 
        Corporation.
            (3) Quorum.--A majority of the Board shall constitute a 
        quorum.
            (4) President of corporation.--The Board of Directors shall 
        appoint a president of the Corporation on such terms as the 
        Board may determine.
                                 <all>