1.
(a)This Act may be cited as the Build America Bonds Act of
2005
.
(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.
2.
(a)
Congress finds the following:
(1)
Our Nation’s highways, public transportation systems, and rail
systems 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.
(9)
The proposed increases to the Transportation Equity Act for the
21st Century (TEA–21) will not be sufficient to compensate for the Nation’s
transportation infrastructure deficit.
(b)
The purpose of this Act is to provide financing for long-term
infrastructure capital investments that are not currently being met by existing
transportation and infrastructure investment programs, including mega-projects,
projects of national significance, multistate transportation corridors,
intermodal transportation facilities, and transportation and security
improvements to highways, public transportation systems, and rail
systems.
3.
Credit to holders of Build America bonds
(a)
Part IV of subchapter A of chapter 1 (relating to credits against
tax) is amended by adding at the end the following new subpart:
H
Nonrefundable credit for holders of Build America
bonds
Sec. 54. Credit to holders of Build
America bonds.
54.
Credit to holders of Build America bonds
(a)
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)
(1)
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)
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)
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)
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)
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)
For purposes of this part, the term Build America
bond means any bond issued as part of an issue if—
(1)
the net spendable 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 Transportation Finance Corporation,
is in registered form, and meets the Build America bond limitation requirements
under subsection (g),
(3)
the Transportation Finance 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 Transportation Finance 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 (g)(6),
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 Transportation Finance Corporation, and
(7)
with respect to bonds described in paragraph (1)(A), the issue
meets the requirements of subsection (h) (relating to arbitrage).
(f)
For purposes of this section—
(1)
The term qualified project means any—
(A)
qualified highway project, and
(B)
qualified public transportation project,
proposed
by 1 or more States and approved by the Transportation Finance
Corporation.
(2)
Qualified highway project
(A)The term qualified highway project means
any—
(i)project of
regional or national significance,
(ii)multistate
corridor program,
(iii)border
planning, operations, technology, and capacity improvement program, and
(iv)freight intermodal connector
project.
(B)Projects of
regional and national significance
(i)The term project of regional or national
significance means the eligible project costs of any surface
transportation project which is eligible for Federal assistance under title 23,
United States Code, including any freight rail project and activity eligible
under such title, if such eligible project costs are reasonably anticipated to
equal or exceed the lesser of—
(I)$100,000,000,
or
(II)50 percent of
the amount of Federal highway assistance funds apportioned for the most
recently completed fiscal year to the State in which the project is
located.
(ii)The term eligible project costs means
the costs of—
(I)development phase
activities, including planning, feasibility analysis, revenue forecasting,
environmental review, preliminary engineering and design work, and other
preconstruction activities, and
(II)construction,
reconstruction, rehabilitation, and acquisition of real property (including
land related to the project and improvements to land), environmental
mitigation, construction contingencies, acquisition of equipment, and
operational improvements.
(iii)The Transportation Finance Corporation may approve a
project of regional or national significance only if the Corporation determines
that the project is based on the results of preliminary engineering, and is
justified based on the project's ability—
(I)to generate
national or regional economic benefits, including creating jobs, expanding
business opportunities, and impacting the gross domestic product,
(II)to reduce
congestion, including impacts in the State, region, and Nation,
(III)to improve
transportation safety, including reducing transportation accidents, injuries,
and fatalities, and
(IV)to otherwise
enhance the national transportation system.
(C)Multistate
corridor program
(i)The term multistate corridor program means
any program for multistate highway and multimodal planning studies and
construction.
(ii)The Transportation Finance Corporation shall consider in
approving any multistate corridor program—
(I)the existence and
significance of signed and binding multijurisdictional agreements,
(II)prospects for
early completion of the program, or
(III)whether the
projects under such program to be studied or constructed are located on
corridors identified by section 1105(c) of the Intermodal Surface
Transportation Efficiency Act of 1991 (Public Law 102–240; 105 Stat.
2032).
(D)Border
planning, operations, technology, and capacity improvement program
(i)The term border planning, operations, technology,
and capacity improvement program means any program which includes 1 or
more eligible activities to support coordination and improvement in bi-national
transportation planning, operations, efficiency, information exchange, safety,
and security at the international borders of the United States with Canada and
Mexico.
(ii)For purposes of this subparagraph, the term
eligible activities means—
(I)highway and
multimodal planning or environmental studies,
(II)cross-border
port of entry and safety inspection improvements, including operational
enhancements and technology applications,
(III)technology and
information exchange activities, and
(IV)right-of-way
acquisition, design, and construction, as needed to implement the enhancements
or applications described in subclauses (II) and (III), to decrease air
pollution emissions from vehicles or inspection facilities at border crossings,
or to increase highway capacity at or near international borders.
(E)Freight
intermodal connector project
(i)The term freight intermodal connector
project means any project for the construction of and improvements to
publicly owned freight intermodal connectors to the National Highway System,
the provision of access to such connectors, and operational improvements for
such connectors (including capital investment for intelligent transportation
systems), except that a project located within the boundaries of an intermodal
freight facility shall only include highway infrastructure modifications
necessary to facilitate direct intermodal access between the connector and the
facility.
(ii)The Transportation Finance Corporation shall consider in
approving any freight intermodal connector project the criteria set forth in
the report of the Department of Transportation to Congress entitled
Pulling Together: The NHS and its Connections to Major Intermodal
Terminals
.
(iii)Freight
intermodal connectorThe term freight intermodal
connector means the roadway that connects to an intermodal freight
facility that carries or will carry intermodal traffic.
(iv)Intermodal
freight facilityThe term intermodal freight
facility means a port, airport, truck-rail terminal, and pipeline-truck
terminal.
(3)
Qualified public transportation project
The term qualified public transportation project
means a project for public transportation facilities or other facilities which
are eligible for assistance under title 49, United States Code, including
intercity passenger rail.
(g)
Limitation on amount of bonds designated; allocation of bond
proceeds
(1)
There is a Build America bond limitation for each calendar
year. Such limitation is—
(A)
with respect to bonds described in subsection (e)(1)(A)—
(i)
$5,500,000,000 for 2005,
(ii)
$8,000,000,000 for 2006,
(iii)
$8,000,000,000 for 2007,
(iv)
$3,000,000,000 for 2008,
(v)
$3,000,000,000 for 2009,
(vi)
$2,500,000,000 for 2010, and
(vii)
except as provided in paragraph (4), zero thereafter,
plus
(B)
with respect to bonds described in subsection (e)(1)(B), such
amount each calendar year as determined necessary by the Transportation Finance
Corporation to provide funds in the Build America Trust Account for the
repayment of Build America bonds at maturity, except that the aggregate amount
of such bonds for all calendar years shall not exceed $9,000,000,000.
(2)
Allocation of bonds for highway and public transportation
purposes
Except with respect to qualified projects described in
subsection (j)(3), and subject to paragraph (3)—
(A)
Qualified highway projects
From Build America bonds issued under the annual limitation in
paragraph (1)(A), the Transportation Finance Corporation shall allocate 80
percent of the net spendable proceeds to the States for qualified highway
projects designated by law from recommendations submitted to Congress
identifying various projects approved as meeting the criteria required for each
such project by the Transportation Finance Corporation.
(B)
Qualified public transportation projects
From Build America bonds issued under the annual limitation in
paragraph (1)(A), the Transportation Finance Corporation shall allocate 20
percent of the net spendable proceeds to the States for qualified public
transportation projects designated by law from recommendations submitted to
Congress identifying various projects approved as meeting the criteria required
for each such project by the Transportation Finance Corporation.
(3)
Minimum allocations to States
In making allocations for each calendar year under paragraph
(2), the Transportation Finance Corporation shall ensure that the amount
allocated for qualified projects located in each State for such calendar year
is not less than 1/2 percent of the total amount allocated
for such year.
(4)
Carryover of unused issuance limitation
If for any calendar year the limitation amount imposed by
paragraph (1) exceeds the amount of Build America bonds issued during such
year, such excess shall be carried forward to one or more succeeding calendar
years as an addition to the limitation imposed by paragraph (1) and until used
by issuance of Build America bonds.
(5)
Issuance of small denomination bonds
From the Build America bond limitation for each year, the
Transportation Finance 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.
(h)
Special rules relating to arbitrage
(1)
Subject to paragraph (2), an issue shall be treated as meeting
the requirements of this subsection if as of the date of issuance, the
Transportation Finance Corporation reasonably expects—
(A)
to spend at least 85 percent of the net spendable proceeds from
the sale of the issue for 1 or more qualified projects within the 5-year period
beginning on such date,
(B)
to incur a binding commitment with a third party to spend at
least 10 percent of the net spendable proceeds from the sale of the issue, or
to commence construction, with respect to such projects within the 12-month
period beginning on such date, and
(C)
to proceed with due diligence to complete such projects and to
spend the net spendable proceeds from the sale of the issue.
(2)
Net spendable proceeds are considered spent by the
Transportation Finance Corporation when a sponsor of a qualified project
obtains a reimbursement from the Transportation Finance Corporation for
eligible project costs.
(3)
Rules regarding continuing compliance after 5-year
determination
If at least 85 percent of the net spendable proceeds from the
sale of the issue is not expended for 1 or more qualified projects within the
5-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 the Transportation Finance
Corporation uses all unspent net spendable proceeds from the sale of the issue
to redeem bonds of the issue within 90 days after the end of such 5-year
period.
(4)
In the event the recipient of an allocation under subsection
(g) fails to demonstrate to the satisfaction of the Transportation Finance
Corporation that its actions will allow the Transportation Finance Corporation
to meet the requirements under this subsection, the Transportation Finance
Corporation may redistribute the allocation meant for such recipient to other
recipients.
(i)
Recapture of portion of credit where cessation of
compliance
(1)
If any bond which when issued purported to be a Build America
bond ceases to be such a qualified bond, the Transportation Finance 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)
If the Transportation Finance 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)
(A)
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)
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.
(j)
Build America Trust Account
(1)
The following amounts shall be held in a Build America Trust
Account by the Transportation Finance 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)
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 Transportation Finance 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 Transportation Finance Corporation to pay the costs of any
qualified project.
(4)
Costs of qualified projects
For purposes of this section, the costs of qualified projects
which may be funded by amounts in the Build America Trust Account may only
relate to capital investments in depreciable assets and may not include any
costs relating to operations, maintenance, or rolling stock.
(5)
Applicability of Federal law
The requirements of any Federal law, including titles 23, 40,
and 49 of the United States Code, which would otherwise apply to projects to
which the United States is a party or to funds made available under such law
and projects assisted with those funds shall apply to—
(A)
funds made available under the Build America Trust Account for
similar qualified projects, including contributions required under subsection
(k), and
(B)
similar qualified projects assisted by the Transportation
Finance Corporation through the use of such funds.
(6)
It shall be the duty of the Transportation Finance Corporation
to invest in investment grade obligations such portion of the Build America
Trust Account as is not, in the judgment of the Board of Directors of the
Transportation Finance Corporation, required to meet current withdrawals. To
the maximum extent practicable, investments should be made in securities that
support transportation investment at the State and local level.
(k)
State contribution requirements
(1)
For purposes of subsection (e)(3), the State contribution
requirement of this subsection is met with respect to any qualified project if
the Transportation Finance 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 (or such smaller percentage as
determined under title 23, United States Code, for such State) 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)
The term administrative costs shall only include
costs of issuance of Build America bonds and operation costs of the
Transportation Corporation.
(2)
The term bond includes any obligation.
(3)
The term net spendable proceeds means the proceeds
from the sale of any Build America bond issued under this section reduced by
not more than 5 percent of such proceeds for administrative costs.
(4)
The term State shall have the meaning given such
term by section 101 of title 23, United States Code.
(5)
Treatment of changes in use
For purposes of subsection (e)(1)(A), the net spendable
proceeds from the sale of an issue shall not be treated as used for a qualified
project to the extent that the Transportation Finance 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 which 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.
(6)
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).
(7)
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.
(8)
Under regulations prescribed by the Secretary—
(A)
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)
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.
(9)
Credits may be transferred
Nothing in any law or rule of law shall be construed to limit
the transferability of the credit or bond allowed by this section through sale
and repurchase agreements.
(10)
The Transportation Finance Corporation shall submit reports
similar to the reports required under section 149(e).
(11)
Prohibition on use of Highway Trust Fund
Notwithstanding any other provision of law, no funds derived
from the Highway Trust Fund established under section 9503 shall be used to pay
costs associated with the Build America bonds issued under this section.
.
(b)
Amendments to other Code sections
(1)
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)
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)
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)
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)
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)
(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)
The amendments made by this section shall apply to obligations
issued after the date of the enactment of this Act.
4.
Transportation Finance Corporation
(a)
There is established a body corporate to be known as the
Transportation Finance 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)
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 and operate the Build America Trust Account as required
under section 54(j) of such Code,
(3)
act as a centralized entity to provide financing for qualified
projects,
(4)
leverage resources and stimulate public and private investment in
transportation infrastructure,
(5)
encourage States to create additional opportunities for the
financing of transportation infrastructure and to provide technical assistance
to States, if needed,
(6)
perform any other function the sole purpose of which is to carry
out the financing of qualified projects through Build America bonds, and
(7)
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)
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; audits
(1)
The Corporation shall be a nonprofit corporation and shall have
no capital stock.
(2)
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)
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)
(A)
Audits by independent certified public accountants
(i)
The Corporation’s financial statements shall be audited annually
in accordance with generally accepted auditing standards by independent
certified public accountants that are certified by a regulatory authority of a
State or other political subdivision of the United States. The audits shall be
conducted at the place or places where the accounts of the Corporation are
normally kept. All books, accounts, financial records, reports, files, and all
other papers, things, or property belonging to or in use by the Corporation and
necessary to facilitate the audit shall be made available to the person or
persons conducting the audits, and full facilities for verifying transactions
with the balances or securities held by depositories, fiscal agents, and
custodians shall be afforded to such person or persons.
(ii)
The report of each annual audit described in clause (i) shall be
included in the annual report required by subsection (c)(8).
(B)
Record keeping requirements
The Corporation shall ensure that each recipient of assistance
from the Corporation keeps—
(i)
separate accounts with respect to such assistance,
(ii)
such records as may be reasonably necessary to fully
disclose—
(I)
the amount and the disposition by such recipient of the proceeds
of such assistance,
(II)
the total cost of the project or undertaking in connection with
which such assistance is given or used, and the extent to which such costs are
for a qualified project, and
(III)
the amount and nature of that portion of the cost of the project
or undertaking supplied by other sources, and
(iii)
such other records as will facilitate an effective audit.
(C)
Audit and examination of books
The Corporation shall ensure that the Corporation, or any of the
Corporation’s duly authorized representatives, shall have access for the
purpose of audit and examination to any books, documents, papers, and records
of any recipient of assistance from the Corporation that are pertinent to such
assistance.
(f)
(1)
The Corporation, including its franchise, capital, reserves,
surplus, sinking funds, mortgages or other security holdings, and income, shall
be exempt from all taxation now or hereafter imposed by the United States, by
any territory, dependency, or possession thereof, or by any State, county,
municipality, or local taxing authority, except that any real property of the
Corporation shall be subject to State, territorial, county, municipal, or local
taxation to the same extent according to its value as other real property is
taxed.
(2)
Build America bonds or other obligations issued by the
Corporation and the interest on or tax credits with respect to its bonds or
other obligations shall not be subject to taxation by any State, county,
municipality, or local taxing authority.
(g)
Assistance for transportation purposes
(1)
In order to carry out the corporate functions described in
subsection (c), the Corporation shall be eligible to receive discretionary
grants, contracts, gifts, contributions, or technical assistance from any
Federal department or agency, to the extent permitted by law.
(2)
In order to receive any assistance described in this subsection,
the Corporation shall enter into an agreement with the Federal department or
agency providing such assistance, under which the Corporation agrees—
(A)
to use such assistance to provide funding and technical
assistance only for activities which the Board of Directors of the Corporation
determines are consistent with the corporate functions described in subsection
(c), and
(B)
to review the activities of State transportation agencies and
other entities receiving assistance from the Corporation to assure that the
corporate functions described in subsection (c) are carried out.
(3)
Nothing in this section shall be construed to establish the
Corporation as a department, agency, or instrumentality of the United States
Government, or to establish the members of the Board of Directors of the
Corporation, or the officers and employees of the Corporation, as officers or
employees of the United States Government.
(h)
Management of Corporation
(1)
Board of Directors; membership; designation of chairperson and
vice chairperson; appointment considerations; term; vacancies
(A)
The management of the Corporation shall be vested in a board of
directors composed of 15 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
Eleven members of the Board shall be appointed from private
life.
(D)
Federal officers and employees
Four 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 8 members of the
Board are members of any 1 political party.
(F)
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, 5 shall be appointed for terms of 1 year and 5
shall be appointed for terms of 2 years.
(G)
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)
A majority of the Board shall constitute a quorum.
(4)The Board of Directors shall appoint a president of
the Corporation on such terms as the Board may determine.