[Congressional Record Volume 149, Number 77 (Thursday, May 22, 2003)]
[Senate]
[Pages S6989-S6991]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. TALENT (for himself and Mr. Wyden):
  S. 1109. 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; to the Committee on 
Finance.
  Mr. TALENT. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1109

       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,

[[Page S6990]]

     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).''.

[[Page S6991]]

       (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 maybe 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.
                                 ______