[Congressional Record Volume 157, Number 87 (Thursday, June 16, 2011)]
[Senate]
[Pages S3896-S3897]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN:
  S. 1230. A bill to secure public investments in transportation 
infrastructure; to the Committee on Commerce, Science, and 
Transportation.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1230

       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

[[Page S3897]]

     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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