[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1296 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1296

   To establish the American Infrastructure Bank to offer States the 
  option for more flexibility in financing and funding infrastructure 
                               projects.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 12, 2015

 Mrs. Fischer introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To establish the American Infrastructure Bank to offer States the 
  option for more flexibility in financing and funding infrastructure 
                               projects.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Build USA Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
                 TITLE I--AMERICAN INFRASTRUCTURE BANK

Sec. 101. Establishment of American Infrastructure Bank.
Sec. 102. State remittance agreements with Bank.
Sec. 103. Loans to States and units of local government for 
                            transportation projects.
                    TITLE II--CAPITALIZATION OF BANK

Sec. 201. Allowance of temporary dividends received deduction for 
                            dividends received from a controlled 
                            foreign corporation.
Sec. 202. Appropriations to Bank.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Bank.--The term ``Bank'' means the American 
        Infrastructure Bank established by section 101(a).
            (2) Board.--The term ``Board'' means the Board of Directors 
        of the Bank.
            (3) Core infrastructure project.--The term ``core 
        infrastructure project'' means a Federal-aid highway or highway 
        (as those terms are defined in section 101 of title 23, United 
        States Code) project of a State that is eligible for funding 
        under chapter 1 of title 23, United States Code.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
            (5) State.--The term ``State'' has the meaning given the 
        term in section 101(a) of title 23, United States Code.

                 TITLE I--AMERICAN INFRASTRUCTURE BANK

SEC. 101. ESTABLISHMENT OF AMERICAN INFRASTRUCTURE BANK.

    (a) Establishment.--
            (1) In general.--There is established as a wholly owned 
        Government corporation subject to chapter 91 of title 31, 
        United States Code (commonly known as the ``Government 
        Corporation Control Act'') (except as otherwise provided in 
        this Act), a bank to be known as the ``American Infrastructure 
        Bank''.
            (2) Responsibility of secretary.--The Secretary shall take 
        such action as the Secretary determines to be necessary to 
        assist in implementing the establishment of the Bank in 
        accordance with this Act.
            (3) Conforming amendment.--Section 9101(3) of title 31, 
        United States Code, is amended by inserting after subparagraph 
        (N) the following:
                    ``(O) the American Infrastructure Bank.''.
    (b) Board of Directors.--
            (1) Membership.--
                    (A) In general.--The Bank shall have a bipartisan 
                Board of Directors consisting of--
                            (i) 4 voting members, 1 of each who shall 
                        be appointed, by and with the advice and 
                        consent of the Senate--
                                    (I) by the Majority Leader of the 
                                Senate, in consultation with the 
                                Chairperson of the Committee on 
                                Environment and Public Works of the 
                                Senate;
                                    (II) by the Minority Leader of the 
                                Senate, in consultation with the 
                                Ranking Member of the Committee on 
                                Environment and Public Works of the 
                                Senate;
                                    (III) by the Speaker of the House 
                                of Representatives, in consultation 
                                with the Chairperson of the Committee 
                                on Transportation and Infrastructure of 
                                the House of Representatives; and
                                    (IV) by the Minority Leader of the 
                                House of Representatives, in 
                                consultation with the Ranking Member of 
                                the Committee on Transportation and 
                                Infrastructure of the House of 
                                Representatives; and
                            (ii) 1 non-voting member, who shall be the 
                        Secretary (or a designee).
                    (B) Qualifications.--A Board member appointed under 
                subparagraph (A)(i) shall have relevant expertise in 
                the fields of public or private finance, infrastructure 
                financing, or transportation infrastructure policy.
                    (C) Term.--A member of the Board shall be appointed 
                for a term of 3 years.
                    (D) Date of initial appointments.--The initial 
                appointments to the Board under subparagraph (A)(i) 
                shall be made not later than 180 days after the date of 
                enactment of this Act.
                    (E) Vacancies.--A vacancy on the Board--
                            (i) shall not affect the powers of the 
                        Board; and
                            (ii) shall be filled in the same manner as 
                        the original appointment was made.
                    (F) Meetings.--The Board shall meet at the call of 
                the chairperson.
                    (G) Quorum.--A majority of the members of the Board 
                shall constitute a quorum.
                    (H) Chairperson and vice chairperson.--The Board 
                shall select a chairperson and vice chairperson from 
                among the members of the Board.
                    (I) Compensation.--
                            (i) In general.--Subject to clause (ii), 
                        the Secretary shall determine compensation of 
                        members of the Board in a manner that is 
                        consistent with similar compensation for 
                        members of other boards in the Federal 
                        Government.
                            (ii) Federal employees and officials.--A 
                        member of the Commission who is an officer or 
                        employee of the Federal Government shall serve 
                        without compensation in addition to the 
                        compensation received for the services of the 
                        member as an officer or employee of the Federal 
                        Government.
                    (J) Administrative costs.--
                            (i) In general.--For the first 3 years 
                        beginning on the date of enactment of this Act, 
                        not more than \1/2\ of 1 percent of the funds 
                        made available under section 202 shall be used 
                        for--
                                    (I) compensation for members of the 
                                Board under subparagraph (I);
                                    (II) compensation for employees of 
                                the Board;
                                    (III) administrative expenses; and
                                    (IV) any other expenses incurred by 
                                the Bank.
                            (ii) 3 years after the date of enactment.--
                        For any year beginning after the date that is 3 
                        years after the date of enactment of this Act, 
                        funds from interest received by the Bank shall 
                        be used to provide funds for the expenses 
                        described in clause (i).
            (2) Duties.--The Board shall--
                    (A) not later than 18 months after the date of 
                enactment of this Act, commence operation of the Bank, 
                including by establishing all operational and 
                administrative parameters of the Bank; and
                    (B) monitor and exercise oversight of core 
                infrastructure projects as necessary to achieve the 
                purposes of the Bank.
            (3) Powers.--The Board shall have the authority--
                    (A) in accordance with such terms as the Board 
                determines to be appropriate, to make senior and 
                subordinated loans, purchase senior and subordinated 
                debt securities, and enter into a binding commitment to 
                make any such loan or purchase any such security, the 
                proceeds of which are used to assist in the financing 
                or refinancing of the development of 1 or more core 
                infrastructure projects;
                    (B) to issue and sell debt securities of the Bank 
                on such terms as the Board determines to be 
                appropriate;
                    (C) to issue public benefit bonds and provide 
                financing to core infrastructure projects from amounts 
                made available from the issuance of those bonds;
                    (D) to make loan guarantees;
                    (E) to enter into agreements or contracts with any 
                individual or entity in support of the business of the 
                Bank;
                    (F) to purchase in the open market any outstanding 
                obligation of the Bank at any time and at any price;
                    (G) to acquire, lease, pledge, exchange, and 
                dispose of real and personal property and otherwise 
                exercise all the usual incidents of ownership of 
                property to the extent the exercise of those powers are 
                appropriate to, and consistent with, the purposes of 
                the Bank;
                    (H) to sue and be sued in a corporate capacity in 
                any court of competent jurisdiction, except that no 
                attachment, injunction, or similar process, may be 
                issued against the property of the Bank or against the 
                Bank with respect to that property;
                    (I) to indemnify the members of the Board for 
                liabilities arising out of the actions of the Board, in 
                accordance with, and subject to the limitations 
                contained in, this Act; and
                    (J) to exercise all other lawful powers that are 
                necessary or appropriate to carry out, and are 
                consistent with, the purposes of the Bank.
            (4) Limitations.--
                    (A) Issuance of debt security.--The Board may not 
                issue any debt security without the consent of the 
                Secretary.
                    (B) Issuance of voting security.--The Board may not 
                issue any voting security in the Bank.
    (c) Audits; Reports.--
            (1) Accounting.--The book of accounts of the Bank shall 
        be--
                    (A) maintained in accordance with generally 
                accepted accounting principles; and
                    (B) subject to an annual audit by an independent 
                public accountant that is--
                            (i) appointed by the Board; and
                            (ii) of nationally recognized standing.
            (2) Reports.--Not later than 90 days after the last day of 
        each fiscal year during which the Bank is in operation, the 
        Board shall submit to the President and the appropriate 
        committees of Congress a report that describes, with respect to 
        the preceding fiscal year--
                    (A) the operations of the Bank;
                    (B) a schedule of the obligations and outstanding 
                capital securities of the Bank, together with a 
                statement of the amounts issued and redeemed or paid 
                during that fiscal year; and
                    (C) the status of core infrastructure projects 
                receiving funding or other assistance pursuant to this 
                Act, including disclosure of all entities with a 
                development, ownership, or operational interest in 
                those core infrastructure projects.
            (3) Books and records.--
                    (A) In general.--The Bank shall maintain adequate 
                books and records to support the financial transactions 
                of the Bank, including a description, to be maintained 
                on a publically accessible database, of--
                            (i) each financial transaction of the Bank 
                        and each core infrastructure project that 
                        receives funding from the Bank; and
                            (ii) the amount of funding for each core 
                        infrastructure project.
                    (B) Audits.--The books and records of the Bank 
                shall be--
                            (i) maintained in accordance with 
                        recommended accounting practices; and
                            (ii) open to inspection by the Comptroller 
                        General of the United States.

SEC. 102. STATE REMITTANCE AGREEMENTS WITH BANK.

    (a) In General.--A State may enter into an agreement of not less 
than 3 years with the Bank, under which--
            (1) the State agrees to remit not less than 60 percent of 
        the total amount of funds received by the State in each year of 
        the 3-year period from the Federal Government for Federal-aid 
        highway activities under sections 119(d) and 133(b) of title 
        23, United States Code;
            (2) the Board will issue to the State funds from the Bank 
        received under section 202 in an amount equal to 90 percent of 
        the amount the State remitted to the Bank under paragraph (1); 
        and
            (3) the State will use the funds received from the Bank 
        under paragraph (2) to carry out core infrastructure projects 
        in accordance with subsection (b).
    (b) State Determination of Compliance.--Notwithstanding any other 
provision of law, in carrying out a project under subsection (a)(3), a 
State shall--
            (1) have the authority to determine whether the State is in 
        compliance with all Federal requirements of--
                    (A) environmental approvals relating to the 
                project;
                    (B) environmental permits relating to the project;
                    (C) section 313 of title 23, United States Code;
                    (D) the development and construction of the 
                project, including--
                            (i) preliminary design;
                            (ii) right-of-way acquisition;
                            (iii) construction engineering; and
                            (iv) final acceptance of the project;
                    (E) preapproval for preventative maintenance 
                projects and procedures;
                    (F) project agreements and modifications to project 
                agreements; and
                    (G) consultant procurement services relating to the 
                project;
            (2) assume responsibility of and oversight duties over 
        compliance with the requirements described in paragraph (1); 
        and
            (3) to the maximum extent practicable, attempt to carry out 
        the project in compliance with all Federal requirements.
    (c) Use of State-Remitted Funds.--The Bank shall use an amount 
equal to 10 percent of the funds remitted to the Bank by States under 
subsection (a)(1) to carry out section 103.

SEC. 103. LOANS TO STATES AND UNITS OF LOCAL GOVERNMENT FOR 
              TRANSPORTATION PROJECTS.

    (a) In General.--The Bank may grant a loan to a State or a unit of 
local government to carry out a core infrastructure project in 
compliance with all applicable Federal laws and requirements.
    (b) Submission of Applications.--In order to be eligible to receive 
a loan under subsection (a), a State or unit of local government shall 
submit to the Board an application at such time, in such manner, and 
containing such information as the Board may reasonably require.
    (c) Interest Rates for Loans.--The Board shall--
            (1) set the interest rate for a loan provided under 
        subsection (a); and
            (2) ensure that the interest rate remains at a level that 
        is more favorable than that of similar infrastructure loans 
        available on the private market.

                    TITLE II--CAPITALIZATION OF BANK

SEC. 201. ALLOWANCE OF TEMPORARY DIVIDENDS RECEIVED DEDUCTION FOR 
              DIVIDENDS RECEIVED FROM A CONTROLLED FOREIGN CORPORATION.

    (a) Applicability of Temporary Dividends Received Deduction.--
            (1) In general.--Subsection (f) of section 965 of the 
        Internal Revenue Code of 1986 is amended to read as follows:
    ``(f) Election.--
            ``(1) In general.--The taxpayer may elect to apply this 
        section to the 3-taxable year period beginning with--
                    ``(A) the taxpayer's last taxable year which begins 
                before the date of the enactment of the Build USA Act, 
                or
                    ``(B) the taxpayer's first taxable year which 
                begins during the 1-year period beginning on such date 
                of enactment.
            ``(2) Time for making election.--Any election made under 
        this section shall be made on or before the due date (including 
        extensions) for filing the return of tax for the first taxable 
        year in the 3-taxable year period described in paragraph (1).
            ``(3) Declaration of amount repatriated.--An election under 
        this section shall designate a limitation of the aggregate 
        amount of dividends to be taken into account under subsection 
        (a) during the 3-taxable year period.''.
            (2) Conforming amendments.--
                    (A) Extraordinary dividends.--Section 965(b)(2) of 
                such Code is amended by striking ``June 30, 2003'' and 
                inserting ``December 31, 2014'', and
                    (B) Determinations relating to related party 
                indebtedness.--Section 965(b)(3)(B) of such Code is 
                amended by striking ``October 3, 2004'' and inserting 
                ``December 31, 2014''.
                    (C) Determinations relating to base period.--
                Section 965(c)(2) of such Code is amended by striking 
                ``June 30, 2003'' and inserting ``December 31, 2014''.
    (b) Amount of Deduction.--Paragraph (1) of section 965(a) of the 
Internal Revenue Code of 1986 is amended by striking ``85 percent'' and 
inserting ``81.4 percent''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 202. APPROPRIATIONS TO BANK.

    (a) Estimation of Revenues From Repatriation.--Not later than 60 
days after the date of enactment of this Act, the Secretary of the 
Treasury (or the Secretary's delegate) shall estimate the increase in 
the amount of revenues to be received in the Treasury after the date of 
enactment of this Act and before October 1, 2019, attributable to the 
amendments made by this title.
    (b) Appropriation.--Out of any money in the Treasury not otherwise 
appropriated, there is hereby appropriated to the Bank an amount equal 
to the amount described in subsection (a), to remain available until 
expended.
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