[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1230 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1230

     To secure public investments in transportation infrastructure.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 16, 2011

  Mr. Durbin introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
     To secure public investments in transportation infrastructure.

    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 ``Protecting Taxpayers in 
Transportation Asset Transfers Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Asset transaction.--The term ``asset transaction'' 
        means--
                    (A) a concession agreement for a public 
                transportation asset; or
                    (B) a contract for the sale or lease of a public 
                transportation asset between the State or local 
                government with jurisdiction over the public 
                transportation asset and a private individual or 
                entity.
            (2) Concession agreement.--
                    (A) In general.--The term ``concession agreement'' 
                means an agreement entered into by a private individual 
                or entity and a State or local government with 
                jurisdiction over a public transportation asset to 
                convey to the private individual or entity the right to 
                manage, operate, and maintain the public transportation 
                asset for a specific period of time in exchange for the 
                authorization to impose and collect a toll or other 
                user fee from a person for each use of the public 
                transportation asset during that period.
                    (B) Exclusion.--The term ``concession agreement'' 
                does not include an agreement entered into by a State 
                or local government and a private individual or entity 
                for the construction of any new public transportation 
                asset.
            (3) Public transportation asset.--
                    (A) In general.--The term ``public transportation 
                asset'' means a transportation facility of any kind 
                that was or is constructed, maintained, or upgraded 
                before, on, or after the date of enactment of this Act 
                using Federal funds--
                            (i)(I) the fair market value of which is 
                        more than $500,000,000, as determined by the 
                        Secretary; and
                            (II) that has received any Federal funding, 
                        as of the date on which the determination is 
                        made;
                            (ii) the fair market value of which is less 
                        than or equal to $500,000,000, as determined by 
                        the Secretary; and
                            (I) that has received $25,000,000 or more 
                        in Federal funding, as of the date on which the 
                        determination is made; or
                            (iii) in which a significant national pubic 
                        interest (such as interstate commerce, homeland 
                        security, public health, or the environment) is 
                        at stake, as determined by the Secretary.
                    (B) Inclusions.--The term ``public transportation 
                asset'' includes a transportation facility described in 
                subparagraph (A) that is--
                            (i) a Federal-aid highway (as defined in 
                        section 101 of title 23, United States Code);
                            (ii) a highway or mass transit project 
                        constructed using amounts made available from 
                        the Highway Account or Mass Transit Account, 
                        respectively, of the Highway Trust Fund;
                            (iii) an air navigation facility (as 
                        defined in section 40102(a) of title 49, United 
                        States Code); or
                            (iv) a train station or multimodal station 
                        that receives a Federal grant, including any 
                        grant authorized under the Passenger Rail 
                        Investment and Improvement Act of 2008 (Public 
                        Law 110-432; 122 Stat. 4907) or an amendment 
                        made by that Act.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.

SEC. 3. PROGRAM TO SECURE PUBLIC INVESTMENTS IN TRANSPORTATION 
              INFRASTRUCTURE.

    (a) Establishment.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall establish a program under 
which a Federal lien shall be attached to each public transportation 
asset.
    (b) Prohibition on Sales and Leases.--
            (1) In general.--A public transportation asset to which a 
        lien is attached under subsection (a) may not be the subject of 
        any asset transaction unless--
                    (A) the lien is released in accordance with 
                paragraph (2);
                    (B)(i) the private individual or entity seeking the 
                asset transaction enters into an agreement with the 
                Secretary described in paragraph (3)(A)(i); and
                    (ii) the State or local government or other public 
                sponsor seeking the asset transaction enters into an 
                agreement with the Secretary described in paragraph 
                (3)(A)(ii);
                    (C) the Secretary publishes a disclosure in 
                accordance with paragraph (4); and
                    (D) the State or local government seeking the asset 
                transaction provides for public notice and an 
                opportunity to comment on the proposed asset 
                transaction.
            (2) Release of liens.--
                    (A) In general.--A lien on a public transportation 
                asset described in paragraph (1) may be released only 
                if--
                            (i) the State or local government or other 
                        public sponsor seeking the asset transaction 
                        for the public transportation asset pays to the 
                        Secretary an amount determined by the Secretary 
                        under subparagraph (B); and
                            (ii) the Secretary certifies that the 
                        required agreements described in paragraph (3) 
                        have been signed, and the terms of the 
                        agreements incorporated into the terms of the 
                        asset transaction, for the public 
                        transportation asset.
                    (B) Determination of repayment amount.--The 
                Secretary shall determine the amount that is required 
                to be paid for the release of a Federal lien on a 
                public transportation asset under this paragraph, 
                taking into account, at a minimum--
                            (i) the total amount of Federal funds that 
                        have been expended to construct, maintain, or 
                        upgrade the public transportation asset;
                            (ii) the amount of Federal funding received 
                        by a State or local government based on 
                        inclusion of the public transportation asset in 
                        calculations using Federal funding formulas or 
                        for Federal block grants;
                            (iii) the reasonable depreciation of the 
                        public transportation asset, including the 
                        amount of Federal funds described in clause (i) 
                        that may be offset by that depreciation; and
                            (iv) the loss of Federal tax revenue from 
                        bonds relating to, and the tax consequences of 
                        depreciation of, the public transportation 
                        asset.
            (3) Agreements.--
                    (A) In general.--As a condition of any new or 
                renewed asset transaction for a public transportation 
                asset--
                            (i) the private individual or entity 
                        seeking the asset transaction shall enter into 
                        an agreement with the Secretary, which shall be 
                        incorporated into the terms of the asset 
                        transaction, under which the private individual 
                        or entity agrees--
                                    (I) to disclose and eliminate any 
                                conflict of interest involving any 
                                party to the agreement;
                                    (II)(aa) to adequately maintain the 
                                condition and performance of the public 
                                transportation asset during the term of 
                                the asset transaction; and
                                    (bb) on the end of the term of the 
                                asset transaction, to return the public 
                                transportation asset to the applicable 
                                State or local government in a state of 
                                good repair;
                                    (III) to disclose an estimated 
                                amount of tax benefits and financing 
                                transactions over the life of the lease 
                                resulting from the lease or sale of the 
                                public transportation asset;
                                    (IV) to disclose anticipated 
                                changes in the workforce and wages, 
                                benefits, or rules over the life of the 
                                lease and an estimate of the amount of 
                                savings from those changes; and
                                    (V) to provide an estimate of the 
                                revenue the transportation asset will 
                                produce for the private entity during 
                                the lease or sale period; and
                            (ii) the State or local government or other 
                        public sponsor seeking the asset transaction 
                        for the public transportation asset shall enter 
                        into an agreement with the Secretary, which 
                        shall be incorporated into the terms of the 
                        asset transaction, under which the State or 
                        local government or other public sponsor 
                        agrees--
                                    (I) to pay to the Secretary the 
                                amount determined by the Secretary 
                                under paragraph (2)(B);
                                    (II) to conduct an assessment of 
                                whether, and provide justification 
                                that, the asset transaction with the 
                                private entity would represent a better 
                                public and financial benefit than a 
                                similar transaction using public 
                                funding or with a public (as opposed to 
                                private) entity, including an 
                                assessment of--
                                            (aa) the loss of toll 
                                        revenues and other user fees 
                                        relating to the public 
                                        transportation asset; and
                                            (bb) any impacts on other 
                                        public transportation assets in 
                                        the vicinity of the public 
                                        transportation asset covered by 
                                        the asset transaction;
                                    (III) that, if the private 
                                individual or entity enters into 
                                bankruptcy, becomes insolvent, or fails 
                                to comply with all terms and conditions 
                                of the asset transaction--
                                            (aa) the asset transaction 
                                        shall immediately terminate; 
                                        and
                                            (bb) the interest in the 
                                        public transportation asset 
                                        conveyed by the asset 
                                        transaction will immediately 
                                        revert to the public sponsor;
                                    (IV) to provide an estimate of all 
                                increased tolls and other user fees 
                                that may be charged to persons using 
                                the public transportation asset during 
                                the term of the asset transaction;
                                    (V) to disclose any plans the State 
                                or local government seeking the asset 
                                transaction has for up-front payments 
                                or concessions from the private 
                                individual or entity seeking the asset 
                                transaction;
                                    (VI) that the Federal Government 
                                and the applicable State and local 
                                governments will retain respective 
                                authority and control over decisions 
                                regarding transportation planning and 
                                management; and
                                    (VII) to prominently post or 
                                display the agreement on the website of 
                                the local government or public sponsor.
                    (B) Term.--An agreement under this paragraph shall 
                not exceed a reasonable term, as determined by the 
                Secretary, in consultation with the relevant State or 
                local government.
            (4) Publication of disclosure.--Not later than 90 days 
        before the date on which an asset transaction covering a public 
        transportation asset takes effect, the Secretary shall publish 
        in the Federal Register a notice that contains--
                    (A) a copy of all agreements relating to the asset 
                transaction between the Secretary and the public and 
                private sponsors involved;
                    (B) a description of the total amount of Federal 
                funds that have been expended as of the date of 
                publication of the notice to construct, maintain, or 
                upgrade the public transportation asset;
                    (C) the determination of the repayment amount under 
                paragraph (2)(B) for the public transportation asset;
                    (D) the amount of Federal funding received by a 
                State or local government based on inclusion of the 
                public transportation asset in calculations using 
                Federal funding formulas or for Federal block grants; 
                and
                    (E) a certification that the asset transaction will 
                not adversely impact the national public interest of 
                the United States (including the interstate commerce, 
                homeland security, public health, and environment of 
                the United States).
            (5) Renewal of asset transaction.--An asset transaction 
        that expires or terminates may be renewed only if--
                    (A) the Secretary--
                            (i) calculates a new repayment amount under 
                        paragraph (2)(B) required for renewal, as the 
                        Secretary determines to be appropriate;
                            (ii) takes into consideration the impact of 
                        a renewed agreement on nearby public 
                        transportation assets; and
                            (iii) publishes a new disclosure for the 
                        renewed agreement in accordance with paragraph 
                        (4); and
                    (B) the State or local government seeking to renew 
                the asset transaction--
                            (i) provides for public notice and an 
                        opportunity to comment on the proposed renewal;
                            (ii) pays to the Secretary the new amount 
                        calculated by the Secretary pursuant to 
                        subparagraph (A)(i); and
                            (iii) enters into a new agreement in 
                        accordance with paragraph (3) for the renewal.
    (c) Amtrak.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        may permit a private individual or entity to enter into an 
        asset transaction covering all or any portion of the facilities 
        and equipment of the National Railroad Passenger Corporation 
        (referred to in this subsection as ``Amtrak'').
            (2) Conditions.--A private individual or entity that seeks 
        to enter into an asset transaction described in paragraph (1) 
        shall agree--
                    (A) to enter into an agreement described in 
                subsection (b)(3) with the Secretary covering the asset 
                transaction; and
                    (B) to pay to the Secretary an amount equal to the 
                amount of Federal funds provided for Amtrak during the 
                period of fiscal year 1971 through the fiscal year in 
                which an agreement described in subsection (b)(3) 
                covering the asset transaction is entered into, as 
                adjusted by, as determined by the Secretary--
                            (i) the reasonable depreciation of the 
                        portion of Amtrak facilities and equipment 
                        covered by the agreement, including that amount 
                        of Federal funds provided for Amtrak that may 
                        be offset by that depreciation;
                            (ii) the amount of Federal funding received 
                        by a State or local government to upgrade any 
                        capital facilities owned or operated by Amtrak 
                        to facilitate passenger rail service; and
                            (iii) the loss of Federal tax revenue from 
                        bonds, Federal financing, or any tax advantages 
                        granted to Amtrak since fiscal year 1971, 
                        including financing and bonding covered by or 
                        provided under the Taxpayer Relief Act of 1997 
                        (Public Law 105-34; 111 Stat. 788) or an 
                        amendment made by that Act.
            (3) Term, disclosure, and renewal.--Paragraphs (3)(B), (4), 
        and (5) of subsection (b) shall apply to an asset transaction 
        entered into under this subsection.
    (d) Use of Funds by Secretary.--Funds received by the Secretary as 
a payment under paragraph (2)(A)(i) or (5)(B)(ii) of subsection (b) or 
subsection (c)(2)(B) shall be available to and used by the Secretary, 
without further appropriation and to remain available until expended, 
for transportation projects and activities in the same transportation 
mode as the mode of the public transportation asset for which the 
payment was received.
    (e) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall promulgate such regulations 
as are necessary to implement this Act.
    (f) Report to Congress.--Not later than 180 days after the date of 
enactment of this Act, and annually thereafter, the Secretary shall 
submit to Congress and publish in the Federal Register a report that 
describes each public transportation asset that is the subject of an 
asset transaction during the year covered by the report, including the 
total amount of Federal funds that were received by a State or local 
government to construct, maintain, or upgrade the public transportation 
asset as of the date of submission of the report.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this Act such sums as are necessary.

SEC. 4. BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.
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