================================================================================ AMERICAN PRODUCTIVE CAPACITY AUTHORITY ACT FEDERAL-STATE-LOCAL LAYERED PURE VARIANT United States Congress, 119th Congress, 2nd Session Prepared by Imran Cooper, The Amanuensis Working Draft, May 2026 VERIFICATION NOTES: THE THREE FEDERAL VARIANTS COMPARED: This is the Federal-State-Local Layered Pure variant of the American Productive Capacity Authority Act. Two sibling drafts exist on the same American-precedent foundation: (A) HYBRID ARCHITECTURE — combines all six American precedents into a single statute with industry surcharge, Treasury borrowing, citizen shareholders, local taxing districts, permanent fund, and federal corporation form (B) CITIZEN-SHAREHOLDER CORPORATION PURE — ANCSA-anchored. No industry surcharge. $100B Treasury borrowing. 75% citizen distribution. No local taxing districts. (C) FEDERAL-STATE-LOCAL LAYERED PURE (this draft) — Library-anchored. Small federal layer at IMLS scale (~$300M-$1B annual). State Productive Capacity Agencies receive federal population-formula grants on the LSTA model. Local Productive Capacity Taxing Districts are the operational unit, voter-approved at the local level. Citizen-shareholders enrolled at the local taxing district level rather than at the national level. Federalist / 10th-Amendment framing. This document is variant (C). Variants (A) and (B) are filed contemporaneously at imran.theamanuensis.com/apoplexy. AMERICAN PRECEDENTS (the chartering models this variant inherits, ranked by emphasis in this variant): PRIMARY (load-bearing for this variant): - Federal-State Cooperative System (Public Libraries via IMLS / LSTA): Institute of Museum and Library Services established under the Museum and Library Services Act of 1996; Library Services and Technology Act Grants to States distributed annually under a population-based formula, approximately $180 million per year across all fifty states plus the District of Columbia and five territories; IMLS Fiscal Year 2024 budget request was $294.8 million; current IMLS budgetary resources $304.7 million; state library agencies submit five-year state plans subject to IMLS review; approximately 9,000 public libraries report annually through the Federal State Cooperative System; aggregate public library funding is approximately 85 percent local property tax, 7 to 10 percent state appropriations, 1 to 2 percent federal; special-purpose library taxing districts (operative in Washington, Illinois, Ohio, and parts of New York and California) levy property tax directly with voter approval, insulating library funding from city and county general fund politics. **THIS VARIANT ADOPTS THE LIBRARY MODEL AS ITS PRIMARY ARCHITECTURE.** - Library Company of Philadelphia: Benjamin Franklin and Junto members established the first lending library in the American colonies on July 1, 1731. The library tradition has continued for nearly three centuries across multiple successor institutional forms. The local property tax + voter approval + special purpose district pattern in Washington, Illinois, and Ohio public libraries is the contemporary structural inheritor. - Alaska Native Claims Settlement Act (ANCSA): retained for the non-transferable share principle, applied at the local taxing district level rather than at the federal level. Local citizen- shareholders of an LTD hold non-transferable shares in their LTD's operating subsidiary. SECONDARY (referenced but not primary in this variant): - Tennessee Valley Authority (16 U.S.C. Chapter 12A, 1933) — federal corporation form NOT adopted in this variant (the federal layer is a grant-distribution agency, not a federal corporation) - USPS / Title 39 Treasury borrowing — this variant uses smaller Treasury borrowing ($10B vs $50B Hybrid) - Universal Service Fund / Lifeline (47 U.S.C. 254, FCC 1985) — small federal industry assessment (1-2% cap) supports the federal grant distribution; SCOTUS-validated per FCC v. Consumers' Research (June 27, 2025) - Alaska Permanent Fund (Alaska Constitution Article 9 §15, 1976) — at the state level, each state's Productive Capacity Agency may establish a State Productive Capacity Permanent Fund EXPLICITLY NOT CITED: Norway Government Pension Fund Global or any other non-United-States sovereign wealth fund. REPLICATION THRESHOLD ANCHORS (same as variants A and B): - Boston Dynamics Atlas in production for Hyundai and Google DeepMind; Hyundai factory targeting 30,000 units/year by 2028 - Tesla Optimus production targets 50,000-1,000,000 units/year by 2027 - Apptronik Apollo at $5B valuation, $935M raised, Google + Mercedes + Deere + NASA backers - Unitree R1 at $5,900 (July 2025); G1 at $13,500-$17,500 - Foundation model robotic intelligence ecosystem >$60B valuation 2026 AMERICAN FUSION ENERGY ANCHORS (same as other variants): - CFS ARC at Chesterfield County, Virginia, 400 MW, PJM connection applied April 2026, online early 2030s - Helion Polaris at Chelan County, Washington, 50 MW, target 2028 - CFS SPARC first ops late 2026, Q≈11 demo target 2027 - TAE / Zap on parallel tracks WHAT THIS VARIANT EMPHASIZES OVER THE OTHER TWO: 1. The federal layer is small (IMLS scale: ~$300M-$1B annual). The federal Authority is a grant-distribution agency, not a federal corporation. It sets standards, distributes population-based formula grants to State Productive Capacity Agencies, and audits compliance. 2. The state layer is the primary intermediary. Each state establishes a State Productive Capacity Agency that receives the federal formula grant, adds state appropriations, and distributes to local Productive Capacity Taxing Districts within the state. 3. The local layer is the operational unit. Local Productive Capacity Taxing Districts (LPCTDs) are voter-approved special-purpose taxing districts on the library-district model. Each LPCTD operates one or more productive capacity facilities. LPCTDs levy property taxes directly within their boundaries, separate from city/county general fund revenue. 4. Citizen-shareholders are enrolled at the LPCTD level. Each LPCTD issues non-transferable shares to its resident citizens. Dividends flow from LPCTD operating revenue to LPCTD shareholders. This is "ANCSA at the local district level." 5. NO federal-level industry-paid Treasury borrowing of the magnitude in variants A or B. Federal capital is small and grant-formula-distributed. 6. Federalist / 10th-Amendment friendly: most operating decisions occur at the state and local levels. ================================================================================ UNITED STATES CONGRESS 119th Congress, 2nd Session 2026 H.R. ____ S. ____ BY __________ (Introduced by request) CONCERNING THE ESTABLISHMENT OF AN AMERICAN PRODUCTIVE CAPACITY GRANT PROGRAM IN THE PATTERN OF THE LIBRARY SERVICES AND TECHNOLOGY ACT GRANTS TO STATES, ESTABLISHING STATE PRODUCTIVE CAPACITY AGENCIES IN EACH STATE AND THE DISTRICT OF COLUMBIA, AUTHORIZING LOCAL PRODUCTIVE CAPACITY TAXING DISTRICTS UNDER STATE-LAW VOTER-APPROVAL PROCEDURES, ISSUING NON-TRANSFERABLE SHARES TO LOCAL DISTRICT RESIDENTS, AND, IN CONNECTION THEREWITH, AUTHORIZING ANNUAL FEDERAL APPROPRIATIONS OF UP TO ONE BILLION DOLLARS, A SMALL INDUSTRY ASSESSMENT NOT TO EXCEED TWO PERCENT, TREASURY BORROWING UP TO TEN BILLION DOLLARS, AND PROVIDING EFFECTIVE DATES. A BILL FOR AN ACT ================================================================================ LONG TITLE AN ACT CONCERNING THE ESTABLISHMENT OF THE AMERICAN PRODUCTIVE CAPACITY GRANT PROGRAM AS A FEDERAL-STATE-LOCAL LAYERED FRAMEWORK MODELED ON THE LIBRARY SERVICES AND TECHNOLOGY ACT (MUSEUM AND LIBRARY SERVICES ACT OF 1996); ENACTING NEW SECTIONS OF TITLE 20 OF THE UNITED STATES CODE; ESTABLISHING THE AMERICAN PRODUCTIVE CAPACITY ADMINISTRATION (APCA) AS A SMALL FEDERAL GRANT-DISTRIBUTION AGENCY AT THE INSTITUTE OF MUSEUM AND LIBRARY SERVICES OPERATIONAL SCALE; ESTABLISHING THE PRODUCTIVE CAPACITY GRANTS TO STATES (PCGTS) PROGRAM DISTRIBUTING ANNUAL FEDERAL APPROPRIATIONS UNDER A POPULATION-BASED FORMULA TO STATE PRODUCTIVE CAPACITY AGENCIES IN EACH STATE, THE DISTRICT OF COLUMBIA, AND THE FIVE TERRITORIES; AUTHORIZING THE ESTABLISHMENT OF LOCAL PRODUCTIVE CAPACITY TAXING DISTRICTS UNDER THE MODEL OF PUBLIC-LIBRARY TAXING DISTRICTS OPERATING IN WASHINGTON, ILLINOIS, OHIO, AND PARTS OF NEW YORK AND CALIFORNIA, AT THE OPTION OF LOCAL VOTERS; AUTHORIZING LOCAL PRODUCTIVE CAPACITY TAXING DISTRICTS TO ISSUE NON-TRANSFERABLE SHARES TO RESIDENT CITIZENS UNDER THE MODEL OF THE ALASKA NATIVE CLAIMS SETTLEMENT ACT OF 1971; AUTHORIZING UP TO ONE BILLION DOLLARS PER YEAR IN FEDERAL APPROPRIATIONS PLUS A SMALL INDUSTRY ASSESSMENT NOT TO EXCEED TWO PERCENT MODELED ON THE UNIVERSAL SERVICE FUND CONTRIBUTION FACTOR (SCOTUS-VALIDATED IN FCC v. CONSUMERS' RESEARCH, 24-354, 2025) AS A FEDERAL FUNDING-CEILING MEASURE; AUTHORIZING TREASURY BORROWING NOT TO EXCEED TEN BILLION DOLLARS FOR FEDERAL-LAYER OPERATIONS; AND PROVIDING EFFECTIVE DATES FOR IMPLEMENTATION. ================================================================================ LEGISLATIVE ROUTING NOTE FILING PROCEDURE: This Act shall be filed as a joint resolution with companion bills in the House of Representatives and the United States Senate. COMMITTEE ASSIGNMENT: - House Committee on Education and the Workforce (LSTA precedent; primary jurisdiction) - House Committee on Energy and Commerce - House Committee on Financial Services (Title II Treasury borrowing) - House Committee on Ways and Means (Title II industry assessment; state-distribution tax treatment) - House Committee on Natural Resources (ANCSA precedent for local share structure) - House Committee on Agriculture - Companion Senate referrals to: Health, Education, Labor, and Pensions; Commerce, Science, and Transportation; Banking, Housing, and Urban Affairs; Indian Affairs; Energy and Natural Resources; Finance; Agriculture, Nutrition, and Forestry FISCAL IMPACT: This variant authorizes federal appropriations not to exceed one billion dollars ($1,000,000,000) per fiscal year for the Productive Capacity Grants to States program; an industry assessment not to exceed two percent (2%) on domestic productive-AI revenue; and Treasury borrowing not to exceed ten billion dollars ($10,000,000,000). Total federal fiscal exposure is materially smaller than variants A or B. Operating capital primarily originates at the state and local levels through state appropriations, local property taxes from Productive Capacity Taxing Districts, and at-cost goods sales. FLOOR VOTE: Passage requires a constitutional majority in each chamber. CONSTITUTIONAL BASIS: Commerce Clause; Necessary and Proper Clause; General Welfare Clause; spending power; precedent of the Museum and Library Services Act of 1996 (federal grant-distribution to state library agencies). ================================================================================ LEGISLATIVE DECLARATION Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. Legislative findings and declaration. The Congress hereby finds and declares as follows: FINDINGS RELATING TO THE AMERICAN LINEAGE OF THIS ACT: (1) THE FRANKLIN-ERA PUBLIC LIBRARY PRECEDENT (1731-PRESENT). On July 1, 1731, Benjamin Franklin and several Junto members established the Library Company of Philadelphia, the first lending library in the American colonies. The American public library tradition has continued for nearly three hundred years. The Museum and Library Services Act of 1996 established the Institute of Museum and Library Services. The Library Services and Technology Act Grants to States program distributes approximately $180 million annually across all fifty states plus the District of Columbia and five territories under a population-based formula. State library agencies submit five-year state plans subject to IMLS review. Aggregate American public library funding is approximately eighty-five percent local property tax, seven to ten percent state appropriations, and one to two percent federal. In Washington, Illinois, Ohio, and parts of New York and California, public libraries are organized as special-purpose taxing districts with direct property-tax authority levied at the option of local voters, structurally insulated from city and county general fund politics. **THIS VARIANT ADOPTS THE LIBRARY MODEL AS ITS PRIMARY ARCHITECTURE.** (2) THE NIXON-ERA ANCSA PRECEDENT (1971). On December 18, 1971, President Richard Nixon signed into law the Alaska Native Claims Settlement Act, codified at 43 U.S.C. Chapter 33. The Act issued shares to Alaska Natives that are inheritable, giftable to other Alaska Natives, but not salable to outside capital. After fifty-five years of operation, ANCSA has not been politically reversed. **THIS VARIANT ADOPTS THE NON-TRANSFERABLE SHARE STRUCTURE FROM ANCSA, BUT APPLIES IT AT THE LOCAL PRODUCTIVE CAPACITY TAXING DISTRICT LEVEL** rather than at the federal level. Residents of an LPCTD receive non-transferable shares in their LPCTD's operating subsidiary. (3) THE REAGAN-ERA LIFELINE PRECEDENT (1985). On May 7, 1985, the Federal Communications Commission under President Reagan established the Lifeline program in response to the AT&T divestiture. The Telecommunications Act of 1996, Section 254 (47 U.S.C. 254), formalized the Universal Service Fund. On June 27, 2025, the Supreme Court in FCC v. Consumers' Research, No. 24-354, upheld the contribution mechanism against a nondelegation challenge. **THIS VARIANT USES A SMALL INDUSTRY ASSESSMENT (UP TO 2%) MODELED ON THE USF MECHANISM** to fund federal grant distribution to state Productive Capacity Agencies. The assessment is substantially smaller than the up-to-5% authorization in the Hybrid variant and is explicitly absent in the Citizen-Shareholder Corporation Pure variant. (4) THE CONTINENTAL CONGRESS POSTAL PRECEDENT (1775). USPS structural model serves as the borrowing-authority precedent in the United States Postal Service Title 39 U.S.C. framework. **THIS VARIANT ADOPTS A SMALLER TREASURY BORROWING CAP** ($10 billion vs $50 billion Hybrid and $100 billion Citizen-Shareholder Corporation Pure) given the federal layer's operational role is distribution, not direct operations. (5) THE ALASKAN PERMANENT FUND PRECEDENT (1976). The Alaska Permanent Fund principal cannot be spent; only earnings may be appropriated. **THIS VARIANT AUTHORIZES STATE-LEVEL PERMANENT FUNDS** at the discretion of each State Productive Capacity Agency, rather than a single federal Permanent Fund. FINDINGS RELATING TO THE VARIANT POSTURE: (6) FEDERALIST FRAMING. The Congress finds that productive capacity operations are most appropriately organized through a federal-state-local layered architecture in which federal authority is limited to standard-setting, formula-grant distribution, and audit, while state authority handles intermediate-level governance and local authority handles operational facility siting, taxation, and shareholder governance. This framing respects the constitutional design of dual sovereignty and preserves the Tenth Amendment posture that powers not delegated to the federal government are reserved to the states and the people. (7) LIBRARY-PRECEDENT VOTER APPROVAL. The Congress finds that local voter approval for special-purpose Productive Capacity Taxing Districts provides a structural mechanism by which each locality determines for itself whether to participate in the Productive Capacity program. This mechanism follows the public-library taxing-district precedent operating in Washington, Illinois, Ohio, and parts of New York and California for multiple decades, in which library funding is insulated from city and county general fund politics by direct voter approval of property tax levies. (8) STATE INTERMEDIARY. The Congress finds that state Productive Capacity Agencies, on the model of the fifty state library agencies + District of Columbia + five territorial library agencies that administer LSTA Grants to States, provide an established intermediary structure that respects state sovereignty while allowing federal grant distribution to flow effectively to local operations. (9) THE LOCAL CITIZEN-SHAREHOLDER. The Congress finds that the non-transferable share structure of the Alaska Native Claims Settlement Act of 1971 is appropriately applied at the LPCTD level. Local residents who vote to establish their LPCTD receive non-transferable shares in the LPCTD's operating subsidiary, with dividend distributions paid from LPCTD operating revenue. This combines two American precedents: the ANCSA share-issuance structure and the public-library local taxing-district structure. (10) FORTY-STATE LEGISLATIVE PRECEDENT. The Congress takes notice of the State Legislative Adaptation series of the Historical Apoplexy framework, drafted by Imran Cooper through The Amanuensis between 2025 and 2026 and made publicly available at imran.theamanuensis.com/apoplexy, comprising at-cost food assurance bills drafted for thirty-three United States states plus a parallel adaptation for the United Kingdom Parliament. This Layered variant of the federal Act is designed to operate as a federal grant-distribution layer above state and local adoption of those state proposals where they pass. (11) THE REPLICATION THRESHOLD. The Congress finds, as in the other variants, that humanoid robotic manufacturing has entered production deployment as of 2025-2026 and that productive capacity gains from the threshold crossing will accrue either to a small number of private firms and foreign sovereign actors, or to organized American citizen ownership structures. This Layered variant ensures the latter outcome through local taxing district shareholders rather than through a national-corporation shareholder structure. (12) THE ABUNDANCE ARITHMETIC. Same as the other variants. US food-at-home spending 2024 ~$1.09T; markup above production cost ~$496B/year (~15x the cost of closing the food insecurity gap of ~$32B/year per Feeding America 2025); Defense Commissary Agency precedent (10 U.S.C. 2484, established 1867). (13) AMERICAN-PRECEDENT-ONLY FRAMING. The Congress finds that this Act draws exclusively on American statutory, constitutional, and operational precedents. No foreign sovereign wealth fund, foreign social democracy, or foreign collectivist economic system is cited or relied upon. ================================================================================ TITLE I ESTABLISHMENT OF THE AMERICAN PRODUCTIVE CAPACITY ADMINISTRATION AND THE FEDERAL-STATE-LOCAL FRAMEWORK ================================================================================ SECTION 2. Definitions. For the purposes of this Act: (a) "Administration" or "APCA" means the American Productive Capacity Administration established by this Title. (NOTE: this variant calls it "Administration" rather than "Authority" to underscore the federal agency role — distribution, standard-setting, audit — rather than direct-operations corporate role.) (b) "State Agency" or "SPCA" means the State Productive Capacity Agency established in each State pursuant to Section 4. (c) "Local Productive Capacity Taxing District" or "LPCTD" means a special-purpose taxing district established under Section 5 at the option of local voters. (d) "Local Operating Subsidiary" or "LOS" means the productive-capacity operating entity formed by an LPCTD to operate productive capacity facilities and issue non-transferable shares to LPCTD resident citizens under Section 6. (e) "Productive Capacity Grants to States" or "PCGTS" means the annual federal formula grant established under Section 7 on the Library Services and Technology Act precedent. (f) "Productive Capacity" has the meaning given that term in the Hybrid variant Section 2. SECTION 3. Establishment of the American Productive Capacity Administration. (a) ESTABLISHMENT. There is established the American Productive Capacity Administration as an independent federal agency, on the model of the Institute of Museum and Library Services (Museum and Library Services Act of 1996; 20 U.S.C. 9101 et seq.). (b) PURPOSE. The Administration is established for the following purposes: (1) to administer the Productive Capacity Grants to States program; (2) to publish standards and best practices for productive capacity operations at the state and local level; (3) to review and approve five-year state plans submitted by State Productive Capacity Agencies; (4) to audit grant compliance; (5) to coordinate with federal fusion energy programs for grid-level electrical power planning; and (6) to maintain a national Federal-State Cooperative System data collection on productive capacity operations, on the model of the existing FSCS for public libraries. (c) DIRECTOR. The Administration shall be led by a Director, nominated by the President of the United States and confirmed by the Senate, for a four-year term. The Director may be reappointed once. The Director may not be removed except for cause established under the Administrative Procedure Act. (d) SIZE. The Administration shall be a small federal agency, on the IMLS operational scale: approximately three hundred full-time-equivalent employees, plus grant-administration contractors, with an annual operating budget not to exceed approximately one hundred million dollars and total budgetary resources (operating budget plus PCGTS formula grants) not to exceed approximately **one billion two hundred million dollars per year** at peak deployment. (e) NO DIRECT OPERATIONS. The Administration shall NOT operate any productive capacity facility directly. All productive capacity facility operations occur at the State Agency level (Section 4) or the LPCTD level (Section 5). SECTION 4. Establishment of State Productive Capacity Agencies. (a) STATE AGENCY DESIGNATION. Each State shall designate, by State legislation enacted within twenty-four months of enactment of this Act, a State Productive Capacity Agency. The designation may be a newly created agency, a designated function within an existing State agency (Department of Education, Department of Economic Development, or analogous), or a non-profit corporation chartered for the purpose under State law. The Administration shall accept any such designation that meets the minimum statutory requirements of this Title. (b) STATE PRODUCTIVE CAPACITY ADMINISTRATIVE PLAN. Each State Agency shall submit to the Administration a five-year State Productive Capacity Administrative Plan (SPCAP) describing: (1) the State's governance structure for productive capacity operations; (2) the proposed schedule for establishing LPCTDs within the State; (3) the proposed allocation of PCGTS formula grant funds; (4) the proposed performance metrics; and (5) the relationship to existing state-level food assurance legislation under the Historical Apoplexy State Legislative Adaptation series (where adopted). This SPCAP requirement is modeled directly on the LSTA five-year state plan. (c) STATE MATCH REQUIREMENT. Each State Agency must provide a state appropriation matching at least thirty-three percent of the State's PCGTS formula grant for the SPCAP to be approved. (d) STATE PERMANENT FUND OPTION. Each State Agency is authorized to establish a State Productive Capacity Permanent Fund on the model of the Alaska Permanent Fund, capitalized from State Agency operating revenue plus State appropriations. SECTION 5. Local Productive Capacity Taxing Districts. (a) AUTHORIZATION. State Agencies may, in coordination with localities within their States and subject to the laws of the relevant State, authorize the establishment of Local Productive Capacity Taxing Districts (LPCTDs) on the model of the special-purpose library taxing districts operating in Washington (e.g., Timberland Regional Library), Illinois, Ohio, and parts of New York and California. (b) FORMATION. An LPCTD shall be formed only upon: (1) petition of qualified electors within the proposed district boundary, in accordance with State law; (2) approval by majority vote at a regularly scheduled election; (3) approval of the relevant State Agency; and (4) compliance with the Administration's published district-formation standards. (c) LPCTD POWERS. An LPCTD is hereby authorized (subject to State constitutional and statutory law) to: (1) levy property taxes on real property within its boundaries; (2) issue bonds; (3) acquire real property for productive capacity facility siting; (4) operate productive capacity facilities (through its Local Operating Subsidiary under Section 6); and (5) exercise other powers customary to special-purpose taxing districts under State law. (d) LPCTD PROPERTY-TAX PROTECTION. Property taxes collected by an LPCTD shall not be commingled with city, county, or State general fund revenues, and shall be expended exclusively for productive capacity purposes specified in subsection (c). (e) LPCTD GOVERNANCE. Each LPCTD shall be governed by a Board of Directors elected by the qualified electors of the LPCTD at regular elections held under State law. SECTION 6. Local Operating Subsidiaries and Citizen-Shareholder Enrollment. (a) LOCAL OPERATING SUBSIDIARY. Each LPCTD shall form a Local Operating Subsidiary (LOS) under State corporate law to: (1) operate the LPCTD's productive capacity facilities; (2) issue non-transferable shares to LPCTD resident citizens; (3) administer the annual dividend distribution to LPCTD shareholders; and (4) maintain operating records subject to State audit and Administration oversight. (b) AUTOMATIC ENROLLMENT. Each citizen of the United States who is a resident of an LPCTD is hereby enrolled as a citizen-shareholder of the LPCTD's Local Operating Subsidiary upon: (1) the LPCTD's establishment under Section 5(b); (2) the citizen's residency in the LPCTD service area; and (3) the citizen's continuous residency status as defined by State law for purposes of the LPCTD's annual shareholder election. (c) SHARE ISSUANCE. Each citizen-shareholder shall receive one hundred shares in the LOS of each LPCTD in which the citizen-shareholder is resident. A citizen-shareholder who relocates to a different LPCTD during the year shall be enrolled in the new LPCTD's LOS and shall remain enrolled in the prior LPCTD's LOS for purposes of dividend distribution attributable to the period of prior residency. (d) NON-TRANSFERABILITY. Shares issued under this Section may be inherited by lineal descendants of the citizen-shareholder; gifted to another United States citizen who is a resident of any LPCTD; or escheated to the State Permanent Fund (if established under Section 4(d)) upon death of the citizen-shareholder without designated descendants or gift recipients. Shares may NOT be sold for cash or other consideration. The non-transferability rule is the ANCSA precedent applied at the local level. (e) PROPERTY RIGHT. The shares issued under this Section are recognized as the property of the citizen-shareholder under the Fifth Amendment of the United States Constitution. ================================================================================ TITLE II FUNDING ARCHITECTURE — FEDERAL-STATE-LOCAL LAYERED VARIANT ================================================================================ SECTION 7. Productive Capacity Grants to States (PCGTS). (a) ESTABLISHMENT. Modeled directly on the Library Services and Technology Act Grants to States program (Museum and Library Services Act of 1996), this Section establishes the Productive Capacity Grants to States formula grant program. (b) AUTHORIZATION OF APPROPRIATIONS. There is authorized to be appropriated to the Administration for the PCGTS program **up to one billion dollars ($1,000,000,000) per fiscal year**, beginning in Fiscal Year 2027. (c) FORMULA. PCGTS funds shall be distributed annually to the State Productive Capacity Agencies in accordance with a population-based formula established by the Administration in regulations. The formula shall be substantially similar to the LSTA Grants to States formula. (d) STATE MATCH REQUIREMENT. To receive PCGTS funds, each State Agency must (1) submit an approved SPCAP under Section 4(b); (2) provide a State appropriation matching at least thirty-three percent of the PCGTS formula award (Section 4(c)); and (3) maintain compliance with performance reporting requirements. (e) DISTRIBUTION. PCGTS funds shall be deposited in the State Agency's PCGTS sub-fund and may be used by the State Agency for: (1) initial LPCTD formation grants; (2) State-level standard setting, training, and technical assistance; (3) State Permanent Fund seeding; and (4) such other state-level productive capacity purposes as the SPCAP specifies. SECTION 8. State Agency Pooling Among LPCTDs. (a) STATE-LEVEL POOLING. Each State Agency shall implement a pooling mechanism among the LPCTDs in its State on the State Agency's discretion, on the model of the ANCSA Section 7(i) revenue-pooling mechanism but at State scope. The State Agency shall publish in State regulations the percentage of LPCTD operating revenue subject to state-level pooling, which shall not be less than twenty percent and not more than fifty percent. (b) DISTRIBUTION OF POOLED REVENUE. The State Agency shall distribute pooled LPCTD revenue among the LPCTDs in the State on a per-resident basis, or by such other formula as the State Agency adopts and the Administration approves. (c) NO FEDERAL POOLING. There is NO federal-level pooling under this variant. Pooling is a State-Agency-level mechanism only. This preserves state sovereignty and avoids creating a national redistribution mechanism. SECTION 9. Local Citizen-Shareholder Distribution. (a) ANNUAL DISTRIBUTION. Each LPCTD's Local Operating Subsidiary shall distribute annually to its citizen-shareholders, on a per-share basis, an amount equal to at least fifty percent (50%) of the LOS's net operating revenue after operating costs, debt service, and any state-level pooling contribution under Section 8(a). (b) RETENTION. Up to fifty percent (50%) of LOS net operating revenue may be retained by the LOS for reinvestment in facility expansion, new equipment acquisition, and operational improvements. (c) DISTRIBUTION SCHEDULE. The annual distribution shall be paid on October 1 of each year (or the next business day), following the close of the fiscal year on September 30. (d) PAYMENT METHOD. Distribution shall be made by direct deposit, by check, or by such other method as the LOS Board specifies. (e) FEDERAL TAX TREATMENT. The LPCTD citizen-shareholder distribution is treated as taxable ordinary income to the recipient for federal income tax purposes, on the Alaska Permanent Fund Dividend model. SECTION 10. Industry Assessment. (a) ESTABLISHMENT. Modeled on the Universal Service Fund contribution factor mechanism (47 U.S.C. 254, upheld in FCC v. Consumers' Research, No. 24-354, June 27, 2025), this Section establishes a small industry assessment. (b) ASSESSMENT BASE AND CAP. The assessment is levied on the gross interstate revenue of (1) domestic providers of foundation-model robotic intelligence services with annual revenue exceeding one hundred million dollars, and (2) domestic humanoid manufacturing entities with annual revenue exceeding one billion dollars. The assessment is capped at **two percent (2%) of the assessment base at peak deployment**, substantially smaller than the up-to-five-percent authorization in the Hybrid variant. (c) PURPOSE. Industry assessment receipts shall be used to supplement the PCGTS formula grants (Section 7) and to support the Administration's operating expenses (Section 3(d)). (d) PASS-THROUGH. As with the USF, assessment-paying entities may pass the assessment through to commercial customers as a visible line item. (e) COLLECTION. The Administration shall promulgate regulations governing assessment collection, audit, and enforcement on the model of USAC procedures. (f) SUNSET. The assessment shall sunset upon the Administration's certification that the State Agency network is collectively self-sufficient on operating revenue and State appropriations alone. SECTION 11. Treasury Borrowing Authority. (a) ESTABLISHMENT. The Administration may borrow from the United States Treasury, at rates set by the Secretary of the Treasury approximately equal to the cost to the Treasury of borrowing at comparable maturities, not to exceed **ten billion dollars ($10,000,000,000)** in outstanding principal at any one time. This is substantially smaller than the $50B (Hybrid) or $100B (Citizen-Shareholder Corporation Pure) authorizations, reflecting the Administration's smaller direct-operational role. (b) PURPOSE. Treasury borrowing shall be used exclusively for: (1) PCGTS formula grant front-loading during the Wave 1 / Wave 2 startup window; (2) Administration operating capital; and (3) federal-layer support for LPCTD formation grants. (c) REPAYMENT. Treasury borrowing shall be repaid from industry assessment receipts over a period not to exceed thirty years. SECTION 12. Initial Appropriation. (a) APPROPRIATION. There is hereby appropriated, out of any money in the Treasury not otherwise appropriated, the sum of five hundred million dollars ($500,000,000) for Fiscal Year 2027 and five hundred million dollars ($500,000,000) for Fiscal Year 2028, for Administration start-up costs plus initial PCGTS formula grant funding. (b) THIS INITIAL APPROPRIATION IS SUBSTANTIALLY SMALLER than the $10B (Hybrid) or $20B (Citizen-Shareholder Corporation Pure) appropriations, reflecting the smaller federal-layer scale of this Layered variant. (c) ONGOING APPROPRIATIONS. Beginning in Fiscal Year 2029, the Administration shall request annual appropriations through the regular appropriations process, not to exceed the authorized amount under Section 7(b) plus operating expenses under Section 3(d). After the first ten years of operation, appropriations may be ramped down to the level supportable by industry assessment receipts. ================================================================================ TITLE III OPERATIONS AND PHASED IMPLEMENTATION ================================================================================ SECTION 13. Implementation Phases. (a) PHASED DEPLOYMENT. Productive capacity operations under this variant shall proceed at the State Agency and LPCTD level following a phased implementation tied to State Agency designations and LPCTD formations. The federal Administration shall provide standards and formula grants but does not directly operate facilities. (b) WAVE 1 — Federal Standards and First State Designations (Year 1-2). The Administration publishes standards for: (1) State Agency designation criteria; (2) SPCAP content; (3) LPCTD formation procedures; (4) LOS governance; (5) shareholder enrollment; (6) operating performance metrics. Initial PCGTS formula grants are distributed to State Agencies that have submitted approved SPCAPs. (c) WAVE 2 — First LPCTD Formations and Pilot Operations (Year 2-5). States with high adoption potential (e.g., Washington, Illinois, Ohio — which already have public-library taxing-district experience) authorize initial LPCTDs. Pilot LOS operations begin at a small number of LPCTDs. (d) WAVE 3 — School-Attached LPCTD Expansion (Year 4-8). State Agencies coordinate with State education departments for LPCTD-school-attached deployment in public high schools. Local property tax levies fund local productive capacity nodes attached to schools. (e) WAVE 4 — Citizen Service Integration (Year 6-10). State Agencies coordinate with State education and workforce departments for integration with K-20 education + service-unlock access tier architecture (Title IV). (f) WAVE 5 — Closed-Loop Operations (Year 10+). Following replication threshold crossing, LPCTDs may scale operations to full closed-loop production. The Administration certifies threshold crossing at the LPCTD-network level rather than at the federal-corporation level. SECTION 14. Wave 1 Federal Standards. (a) WAVE 1 BUDGET. The Wave 1 standards-development and initial PCGTS distribution shall be funded from the Section 12 initial appropriation, not to exceed five hundred million dollars per fiscal year. (b) DOE COORDINATION. Standards development shall be coordinated with the Department of Energy, including potential pilot facility hosting at DOE national laboratory sites (Oak Ridge, Idaho, Argonne) at the discretion of the relevant State Agency. SECTION 15. Wave 2 State Coordination. (a) STATE AGENCY GRANTS. The Administration shall make PCGTS formula grants to State Agencies that have submitted approved SPCAPs and provided State match. (b) INITIAL LPCTD ESTABLISHMENT. State Agencies shall coordinate with local jurisdictions to support voter referenda for LPCTD establishment. (c) AGGREGATE WAVE 2 FEDERAL BUDGET. Aggregate federal Wave 2 funding (PCGTS plus operating) shall not exceed approximately one billion dollars per year over four years. Local LPCTD funding (property tax levies) is in addition and is not capped by this Act. SECTION 16. Wave 3 School-Attached LPCTD Deployment. (a) SCHOOL-ATTACHED LPCTD MODEL. State Agencies shall coordinate with State Departments of Education and local school boards to encourage the formation of school-attached LPCTDs that combine local property tax authority with K-12 educational integration. (b) FINANCING. School-attached LPCTDs are funded primarily through: (1) local property tax levies (voter-approved); (2) State Agency PCGTS pass-through grants; (3) State appropriations. (c) AGGREGATE WAVE 3 FEDERAL BUDGET. Federal-layer support shall not exceed the authorized PCGTS annual appropriation. Local property tax revenue is the dominant funding mechanism and is not capped by this Act. SECTION 17. Wave 4 Citizen Service Architecture. See Title IV for the full Citizen Service Architecture. Wave 4 begins upon the operational deployment of school-attached LPCTDs in not fewer than twenty States. SECTION 18. Wave 5 Closed-Loop Operations. (a) WAVE 5 START. Wave 5 begins upon the Administration's certification that the LPCTD network collectively has the productive capacity to (1) assemble, (2) maintain, and (3) produce at least seventy-five percent of its own component parts through robotic manufacturing systems at LOS-operated facilities. (b) THE REPLICATION THRESHOLD. The Wave 5 certification is the operational mark of crossing the replication threshold as defined in Cooper, Historical Apoplexy Paper VIII (Venus Prime). SECTION 21. Fusion Energy Procurement Coordination. The Administration is granted authority to coordinate with the Department of Energy, the Federal Energy Regulatory Commission, and the fusion energy companies identified in the verification notes (Commonwealth Fusion Systems, Helion Energy, TAE Technologies, Zap Energy) for grid-level fusion energy planning relevant to the LPCTD network's eventual electrical demand. State Agencies and individual LPCTDs may enter into power purchase agreements directly with fusion energy providers subject to State and local procurement law. ================================================================================ TITLE IV CITIZEN SERVICE ARCHITECTURE AND ACCESS TIERS ================================================================================ SECTION 19. The Non-Negotiable Floor. Established as in the Hybrid variant Section 19. Every citizen of the United States who is a resident of any LPCTD is entitled, on demand and at no further cost beyond pro-rated local property tax contribution, to: (1) basic foodstuffs sufficient for daily caloric and nutritional requirements; (2) basic clothing materials sufficient for seasonal climate variation; (3) basic shelter materials in the form specified by the LOS Board; and (4) such other basic goods as the LOS Board specifies by rule. NO MEANS TEST. NO SERVICE REQUIREMENT. (a) DELIVERY. The base provision shall be available at LOS-operated distribution centers within the LPCTD service area. (b) FUNDING. The base provision is funded from LOS gross revenue on a first-priority basis. SECTION 20. Access Tiers and Service Unlock. Established as in the Hybrid variant Section 20, with tier eligibility established through voluntary citizen service in qualifying programs. Tier eligibility under this variant may also be established through service to the local LPCTD (e.g., LPCTD volunteer work, LOS facility training programs, school-attached LPCTD apprenticeships). ================================================================================ TITLE V SEVERABILITY, IMPLEMENTATION, REPORTING, AND EFFECTIVE DATE ================================================================================ SECTION 22. Severability. If any provision of this Act, or the application of such provision, is held invalid, the remainder of the Act is not affected. SECTION 23. Implementation timeline. (a) GENERAL EFFECTIVE DATE. October 1 following enactment. (b) DIRECTOR CONFIRMATION. The President shall nominate the Administration's Director within ninety days of the effective date. (c) STATE AGENCY DESIGNATIONS. Each State shall designate its State Productive Capacity Agency within twenty-four months of enactment. (d) RULEMAKING. The Administration shall promulgate rules under the Administrative Procedure Act (5 U.S.C. 553) for: (1) State Agency designation; (2) SPCAP requirements; (3) LPCTD formation standards; (4) LOS governance; (5) shareholder enrollment; (6) PCGTS formula; (7) industry assessment calculation; (8) state-level pooling mechanisms; and (9) such other matters as required by this Act. SECTION 24. Reporting requirements. (a) ANNUAL REPORT. The Administration shall submit to Congress not later than December 31 of each year a comprehensive report including: PCGTS formula grant amounts by State; State Agency activity by State; LPCTD formations and operations; aggregate LOS production and revenue; aggregate citizen-shareholder dividend distribution; Wave progress; industry assessment receipts; Treasury borrowing. (b) PUBLIC ACCESS. The Annual Report shall be made publicly available at imran.theamanuensis.com/apoplexy, on the Administration's own website, and through the Government Publishing Office. (c) GAO AUDIT. The Government Accountability Office shall audit the Administration annually. SECTION 25. Effective date. This Act shall take effect on October 1 of the fiscal year following the date of enactment. ================================================================================ APPENDIX ================================================================================ VARIANT COMPARISON TABLE | Provision | Hybrid | Citizen-Shareholder Corporation Pure | Federal-State-Local Layered (this variant) | |---|---|---|---| | Federal corporation form | Yes (TVA model) | Yes | **No — federal Administration as grant-distribution agency only** | | Federal layer scale | Large ($50B+ borrowing) | Largest ($100B+ borrowing) | **Small (~$1B/yr operating)** | | Citizen-shareholder structure | National + regional | National + regional | **Local (at LPCTD level)** | | Non-transferable shares | Yes | Yes | Yes (at local district level) | | 7(i)-equivalent revenue pooling | 70% nationally | 70% nationally | **State-level, 20-50% (state discretion)** | | 7(j)-equivalent distribution | 50% | 75% | **50% at LOS level** | | Permanent Fund | National | National | **Per-state (state discretion)** | | Industry assessment | Up to 5% | None | **Up to 2%** | | Treasury borrowing cap | $50B | $100B | **$10B** | | Initial federal appropriation | $10B total | $20B total | **$1B total + $1B/yr ongoing** | | Local taxing districts | Yes | No | **Yes (central operational unit)** | | GOP-friendliness | Moderate-high | Highest | High | | Democratic-friendliness | Moderate-high | Moderate | **Highest (civic infrastructure framing)** | | Federalist-friendliness | Moderate | Moderate | **Highest (10th Amendment posture)** | AMERICAN-LINEAGE CITATION TABLE (variant-specific) | Provision | Primary American precedent | |---|---| | Section 3, federal Administration (small grant-distribution agency) | Institute of Museum and Library Services, MLSA 1996, 20 U.S.C. 9101 | | Section 4, State Agency designation + 5-year plan | LSTA five-year state plan requirement | | Section 5, Local Productive Capacity Taxing Districts | Public library taxing districts in WA / IL / OH / NY / CA | | Section 6, citizen-shareholder + non-transferable shares (at LPCTD level) | ANCSA share-structure applied at local district level | | Section 7, PCGTS formula grants | LSTA Grants to States, population-based formula | | Section 8, state-level pooling | ANCSA Section 7(i) at state scope | | Section 9, LPCTD shareholder distribution | ANCSA Section 7(j) + Alaska Permanent Fund Dividend at local scope | | Section 10, small industry assessment (2% cap) | USF mechanism, SCOTUS-validated 2025 | | Section 11, $10B Treasury borrowing | USPS Title 39 borrowing authority, scaled to small federal-layer role | | Section 12, $500M annual appropriation | LSTA-scale federal grant-program budget | KEY UNITED STATES STATUTORY CITATIONS - 20 U.S.C. 9101 et seq. (Museum and Library Services Act of 1996, Library Services and Technology Act) - 43 U.S.C. Chapter 33 (Alaska Native Claims Settlement Act of 1971) - 47 U.S.C. 254 (Universal Service Fund, Telecommunications Act of 1996) - Alaska Constitution Article 9, Section 15 (Alaska Permanent Fund) - 39 U.S.C. (Postal Service borrowing precedent, scaled) - 10 U.S.C. 2484 (Defense Commissary Agency) - 5 U.S.C. 552a (Privacy Act of 1974) - 5 U.S.C. 553 (Administrative Procedure Act rulemaking) CITATION Cooper, I. (2025-2026). American Productive Capacity Authority Act, Federal-State-Local Layered Pure Variant: A Federal Legislative Adaptation of the Historical Apoplexy Framework. The Amanuensis. https://imran.theamanuensis.com/apoplexy FIRST AMENDMENT NOTICE This legislative adaptation is part of the Historical Apoplexy series by Imran Cooper. The work is offered to any citizen, legislator, or advocacy group to introduce, adapt, or campaign on. No PAC, no candidate committee, no solicitation. Petitioning a government for redress of grievances is explicitly protected by the First Amendment of the United States Constitution. ================================================================================ END OF ACT TEXT ================================================================================