Public Buildings Renewal Act of 2019

II 116TH CONGRESS 1ST SESSION S. 932 To amend the Internal Revenue Code of 1986 to provide for the tax-exempt financing of certain government-owned buildings. IN THE SENATE OF THE UNITED STATES MARCH 28, 2019 Mr. YOUNG (for himself, Ms. CORTEZ MASTO, Mr. SCOTT of South Carolina, and Mr. BENNET) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to provide for the tax-exempt financing of certain government- owned buildings. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Public Buildings Re- 4 newal Act of 2019’’. 5 SEC. 2. TAX-EXEMPT FINANCING OF QUALIFIED GOVERN- 6 MENT BUILDINGS. 7 (a) IN GENERAL.—Section 142(a) of the Internal 8 Revenue Code of 1986 is amended by striking ‘‘or’’ at the 9 VerDate Sep 11 2014 03:59 Apr 05, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S932.IS S932 kjohnson on DSK79L0C42 with BILLS 2 •S 932 IS end of paragraph (14), by striking the period at the end 1 of paragraph (15) and inserting ‘‘, or’’, and by adding at 2 the end the following new paragraph: 3 ‘‘(16) qualified government buildings.’’. 4 (b) QUALIFIED GOVERNMENT BUILDINGS.—Section 5 142 of such Code is amended by adding at the end the 6 following new subsection: 7 ‘‘(n) QUALIFIED GOVERNMENTAL BUILDINGS.— 8 ‘‘(1) IN GENERAL.—For purposes of subsection 9 (a)(16), the term ‘qualified governmental buildings’ 10 means any building or facility that consists of one 11 or more of the following: 12 ‘‘(A) An elementary school or a secondary 13 school (within the meanings given such terms 14 by section 14101 of the Elementary and Sec- 15 ondary Education Act of 1965 (20 U.S.C. 16 8801), as in effect on the date of the enactment 17 of this subsection). 18 ‘‘(B) A facility of a State college or univer- 19 sity used for educational purposes. 20 ‘‘(C) A library maintained for, and open 21 to, the general public. 22 ‘‘(D) A court of law. 23 ‘‘(E) A hospital or health care facility. 24 VerDate Sep 11 2014 03:59 Apr 05, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S932.IS S932 kjohnson on DSK79L0C42 with BILLS 3 •S 932 IS ‘‘(F) A laboratory or research facility used 1 by a governmental unit. 2 ‘‘(G) A public safety facility (including po- 3 lice, fire, enhanced 911, emergency or disaster 4 management, and ambulance or emergency 5 medical service facilities and jails and correc- 6 tional facilities). 7 ‘‘(H) An office for employees of a govern- 8 mental unit. 9 Such term shall include any equipment, functionally 10 related and subordinate facility, or land (and any 11 real property rights appurtenant thereto) with re- 12 spect to any such building or facility. 13 ‘‘(2) SPECIFICALLY EXCLUDED FACILITIES.— 14 Such term shall not include— 15 ‘‘(A) a building or facility the primary pur- 16 pose of which is one of the following: retail food 17 and beverage services, or the provision of recre- 18 ation or entertainment, or 19 ‘‘(B) any building or facility that includes 20 any of the following: any private or commercial 21 golf course, country club, massage parlor, ten- 22 nis club, skating facility (including roller skat- 23 ing, skateboard, and ice skating), racquet 24 sports facility (including any handball or rac- 25 VerDate Sep 11 2014 03:59 Apr 05, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S932.IS S932 kjohnson on DSK79L0C42 with BILLS 4 •S 932 IS quetball court), hot tub facility, suntan facility, 1 racetrack, convention center, or sports stadium 2 or arena. 3 ‘‘(3) NATIONAL LIMITATION ON AMOUNT OF 4 TAX-EXEMPT FINANCING FOR QUALIFIED GOVERN- 5 MENTAL BUILDING.— 6 ‘‘(A) NATIONAL LIMITATION.—The aggre- 7 gate amount allocated by the Secretary under 8 subparagraph (C) shall not exceed 9 $5,000,000,000. 10 ‘‘(B) ENFORCEMENT OF NATIONAL LIMI- 11 TATION.—An issue shall not be treated as an 12 issue described in subsection (a)(16) if the ag- 13 gregate face amount of bonds issued pursuant 14 to such issue for any qualified governmental 15 building (when added to the aggregate face 16 amount of bonds previously so issued for such 17 facility) exceeds the amount allocated to such 18 qualified governmental building under subpara- 19 graph (C). 20 ‘‘(C) ALLOCATION BY THE SECRETARY.— 21 The Secretary shall allocate, on a first come, 22 first serve basis, a portion of the amount de- 23 scribed in subparagraph (A) to a qualified gov- 24 VerDate Sep 11 2014 03:59 Apr 05, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S932.IS S932 kjohnson on DSK79L0C42 with BILLS 5 •S 932 IS ernmental building if the Secretary determines 1 that— 2 ‘‘(i) the application for financing of 3 such qualified governmental building meets 4 the requirements set forth in subparagraph 5 (D), and 6 ‘‘(ii) the amount of the allocation re- 7 quested, if allocated by the Secretary, 8 would not cause the national limitation set 9 forth in subparagraph (A) to be exceeded. 10 ‘‘(D) APPLICATIONS FOR FINANCING.—An 11 application for financing a qualified govern- 12 mental building meets the requirements of this 13 subparagraph if such application includes— 14 ‘‘(i) the amount of the allocation re- 15 quested, 16 ‘‘(ii) the name of the governmental 17 unit that will own the project, together 18 with complete contact information, 19 ‘‘(iii) a description of the project as a 20 whole and the proposed organizational and 21 legal structure of the project, 22 ‘‘(iv) a timeline showing the estimated 23 start and completion dates for each major 24 phase or milestone of project development 25 VerDate Sep 11 2014 03:59 Apr 05, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S932.IS S932 kjohnson on DSK79L0C42 with BILLS 6 •S 932 IS and an indication of the current status of 1 milestones on this timeline, including all 2 necessary permits and environmental ap- 3 provals, 4 ‘‘(v) a statement of anticipated 5 sources and uses of funds for the project, 6 and 7 ‘‘(vi) the following declaration signed 8 by an individual who has personal knowl- 9 edge of the relevant facts and circumstan- 10 ces: ‘‘Under penalties of perjury, I declare 11 that I have examined this document and, 12 to the best of my knowledge and belief, the 13 document contains all the relevant facts re- 14 lating to the document, and such facts are 15 true, correct, and complete.’’ 16 ‘‘(E) USE OF ALLOCATION IN A TIMELY 17 MANNER.—If, following an allocation by the 18 Secretary under subparagraph (C), bonds are 19 not issued in the amount of such allocation 20 after the date that is 2 years after the date of 21 such allocation, then the unused portion of the 22 allocation shall be withdrawn, unless the Sec- 23 retary, upon a showing of good cause by the ap- 24 plicant, grants an extension of such date. 25 VerDate Sep 11 2014 03:59 Apr 05, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S932.IS S932 kjohnson on DSK79L0C42 with BILLS 7 •S 932 IS ‘‘(4) EXCEPTION FOR CURRENT REFUNDING 1 BONDS.—Paragraph (3) shall not apply to any bond 2 (or series of bonds) issued to refund a bond issued 3 under subsection (a)(16) if— 4 ‘‘(A) the average maturity date of the issue 5 of which the refunding bond is a part is not 6 later than the average maturity date of the 7 bonds to be refunded by such issue, 8 ‘‘(B) the amount of the refunding bond 9 does not exceed the outstanding amount of the 10 refunded bond, and 11 ‘‘(C) the refunded bond is redeemed not 12 later than 90 days after the date of the 13 issuance of the refunding bond. 14 For purposes of subparagraph (A), average maturity 15 shall be determined in accordance with section 16 147(b)(2)(A). 17 ‘‘(5) OFFICE SPACE.—Subsection (b)(2) shall 18 not apply with respect to any qualified governmental 19 building. 20 ‘‘(6) NO DEPRECIATION OR INVESTMENT CRED- 21 IT.—No depreciation, amortization, or business cred- 22 it under section 38 shall be allowed with respect to 23 any facility described in subsection (a)(16) which 24 has been financed by the net proceeds of the issue.’’. 25 VerDate Sep 11 2014 03:59 Apr 05, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S932.IS S932 kjohnson on DSK79L0C42 with BILLS 8 •S 932 IS (c) GOVERNMENTALLY OWNED REQUIREMENT.— 1 Section 142(b)(1)(A) of such Code is amended by striking 2 ‘‘or (12)’’ and inserting ‘‘(12), or (16)’’. 3 (d) EXEMPTION FROM VOLUME CAP ON PRIVATE 4 ACTIVITY BONDS.—Section 146(g)(3) of such Code is 5 amended by striking ‘‘or (15)’’ and inserting ‘‘(15), or 6 (16)’’. 7 (e) EFFECTIVE DATE.—The amendments made by 8 this section shall apply to bonds issued after the date of 9 the enactment of this Act. 10 Æ VerDate Sep 11 2014 03:59 Apr 05, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\S932.IS S932 kjohnson on DSK79L0C42 with BILLS