113 HR 2821 IH: American Jobs Act of 2013
U.S. House of Representatives
2013-07-24
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of
contents
(a)This Act may be cited as the American Jobs Act of 2013
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. Severability.
Sec. 4. Buy American—Use of American iron, steel, and
manufactured goods.
Sec. 5. Wage rate and employment protection
requirements.
Title I—Relief for workers and businesses
Subtitle A—Making work pay credit
Sec. 101. Making work pay credit.
Subtitle B—Other relief for businesses
Sec. 111. Extension of temporary 100 percent bonus depreciation
for certain business assets.
Sec. 112. Surety bonds.
Title II—Putting workers back on the job while rebuilding and
modernizing America
Subtitle A—Teacher stabilization
Sec. 201. Purpose.
Sec. 202. Grants for the outlying areas and the Secretary of
the Interior; availability of funds.
Sec. 203. State allocation.
Sec. 204. State application.
Sec. 205. State reservation and responsibilities.
Sec. 206. Local educational agencies.
Sec. 207. Early learning.
Sec. 208. Maintenance of effort.
Sec. 209. Reporting.
Sec. 210. Definitions.
Sec. 211. Authorization of appropriations.
Subtitle B—First responder stabilization
Sec. 212. Purpose.
Sec. 213. Grant program.
Sec. 214. Appropriations.
Subtitle C—School modernization
Part I—Elementary and secondary schools
Sec. 221. Purpose.
Sec. 222. Authorization of appropriations.
Sec. 223. Allocation of funds.
Sec. 224. State use of funds.
Sec. 225. State and local applications.
Sec. 226. Use of funds.
Sec. 227. Private schools.
Sec. 228. Additional provisions.
Part II—Community College modernization
Sec. 229. Federal assistance for community college
modernization.
Part III—Definitions
Sec. 230. Definitions.
Subtitle D—Immediate transportation infrastructure
investments
Sec. 241. Immediate transportation infrastructure
investments.
Subtitle E—Building and upgrading infrastructure for long-Term
development
Sec. 242. Short title.
Sec. 243. Findings and purpose.
Sec. 244. Definitions.
Part I—American infrastructure financing authority
Sec. 245. Establishment and general authority of
AIFA.
Sec. 246. Voting members of the Board of Directors.
Sec. 247. Chief executive officer of AIFA.
Sec. 248. Powers and duties of the Board of
Directors.
Sec. 249. Senior management.
Sec. 250. Special Inspector General for AIFA.
Sec. 251. Other personnel.
Sec. 252. Compliance.
Part II—Terms and limitations on direct loans and loan
guarantees
Sec. 253. Eligibility criteria for assistance from AIFA and
terms and limitations of loans.
Sec. 254. Loan terms and repayment.
Sec. 255. Compliance and enforcement.
Sec. 256. Audits; reports to the President and
Congress.
Part III—Funding of AIFA
Sec. 257. Administrative fees.
Sec. 258. Efficiency of AIFA.
Sec. 259. Funding.
Part IV—Extension of exemption from alternative minimum tax
treatment for certain tax-Exempt bonds
Sec. 260. Extension of exemption from alternative minimum tax
treatment for certain tax-exempt bonds.
Subtitle F—Project rebuild
Sec. 261. Project rebuild.
Title III—Assistance for the unemployed and pathways back to
work
Subtitle A—Supporting unemployed workers
Sec. 301. Short title.
Part I—Extension of emergency unemployment compensation and
certain extended benefits provisions, and establishment of self-Employment
assistance program
Sec. 311. Extension of emergency unemployment compensation
program.
Sec. 312. Temporary extension of extended benefit
provisions.
Sec. 313. Additional extended unemployment benefits under the
Railroad Unemployment Insurance Act.
Part II—Reemployment NOW program
Sec. 321. Establishment of reemployment NOW
program.
Sec. 322. Distribution of funds.
Sec. 323. State plan.
Sec. 324. Bridge to work program.
Sec. 325. Wage insurance.
Sec. 326. Enhanced reemployment strategies.
Sec. 327. Self-employment programs.
Sec. 328. Additional innovative programs.
Sec. 329. Guidance and additional requirements.
Sec. 330. Report of information and evaluations to Congress and
the public.
Sec. 331. State.
Part III—Short-Time compensation program
Sec. 341. Temporary financing of short-time compensation
payments in states with programs in law.
Sec. 342. Temporary financing of short-time compensation
agreements.
Sec. 343. Grants for short-time compensation
programs.
Sec. 344. Assistance and guidance in implementing
programs.
Sec. 345. Reports.
Subtitle B—Long-Term unemployed hiring preferences
Sec. 351. Long-term unemployed workers work opportunity tax
credits.
Subtitle C—Pathways Back to Work
Sec. 361. Short title.
Sec. 362. Authorization of appropriations.
Sec. 363. Availability of funds.
Sec. 364. Subsidized employment for unemployed, low-income
adults.
Sec. 365. Summer employment and year-round employment
opportunities for low-income youth.
Sec. 366. Work-based employment strategies of demonstrated
effectiveness.
Sec. 367. General requirements.
Sec. 368. Definitions.
Subtitle D—Prohibition of discrimination in employment on the
basis of an individual’s status as unemployed
Sec. 371. Short title.
Sec. 372. Findings and purpose.
Sec. 373. Definitions.
Sec. 374. Prohibited acts.
Sec. 375. Enforcement.
Sec. 376. Federal and State immunity.
Sec. 377. Relationship to other laws.
Sec. 378. Severability.
Sec. 379. Effective date.
Title IV—Offsets
Subtitle A—28 percent limitation on certain deductions and
exclusions
Sec. 401. 28 percent limitation on certain deductions and
exclusions.
Subtitle B—Tax carried interest in investment partnerships as
ordinary income
Sec. 411. Partnership interests transferred in connection with
performance of services.
Sec. 412. Special rules for partners providing investment
management services to partnerships.
Subtitle C—Close loophole for corporate jet
depreciation
Sec. 421. General aviation aircraft treated as 7-year
property.
Subtitle D—Repeal oil subsidies
Sec. 431. Repeal of deduction for intangible drilling and
development costs in the case of oil and gas wells.
Sec. 432. Repeal of deduction for tertiary
injectants.
Sec. 433. Repeal of percentage depletion for oil and gas
wells.
Sec. 434. Section 199 deduction not allowed with respect to
oil, natural gas, or primary products thereof.
Sec. 435. Repeal oil and gas working interest exception to
passive activity rules.
Sec. 436. Repeal enhanced oil recovery credit.
Sec. 437. Uniform seven-year amortization for geological and
geophysical expenditures.
Sec. 438. Repeal marginal well production credit.
Subtitle E—Dual capacity taxpayers
Sec. 441. Modifications of foreign tax credit rules applicable
to dual capacity taxpayers.
Sec. 442. Separate basket treatment taxes paid on foreign oil
and gas income.
Subtitle F—Repeal of sequestration
Sec. 451. Repeal of sequestration.
2.Except as expressly provided otherwise, any
reference to this Act
contained in any subtitle of this Act
shall be treated as referring only to the provisions of that subtitle.
3.If any provision of this Act, or the
application thereof to any person or circumstance, is held invalid, the
remainder of the Act and the application of such provision to other persons or
circumstances shall not be affected thereby.
4.Buy American—Use
of American iron, steel, and manufactured goods
(a)None of the funds appropriated or otherwise
made available by this Act may be used for a project for the construction,
alteration, maintenance, or repair of a public building or public work unless
all of the iron, steel, and manufactured goods used in the project are produced
in the United States.
(b)Subsection (a)
shall not apply in any case or category of cases in which the head of the
Federal department or agency involved finds that—
(1)applying
subsection (a) would be inconsistent with the public interest;
(2)iron, steel, and
the relevant manufactured goods are not produced in the United States in
sufficient and reasonably available quantities and of a satisfactory quality;
or
(3)inclusion of iron,
steel, and manufactured goods produced in the United States will increase the
cost of the overall project by more than 25 percent.
(c)If the head of a
Federal department or agency determines that it is necessary to waive the
application of subsection (a) based on a finding under subsection (b), the head
of the department or agency shall publish in the Federal Register a detailed
written justification as to why the provision is being waived.
(d)This section shall
be applied in a manner consistent with United States obligations under
international agreements.
5.Wage rate and
employment protection requirements
(a)Notwithstanding any other provision of law
and in a manner consistent with other provisions in this Act, all laborers and
mechanics employed by contractors and subcontractors on projects funded
directly by or assisted in whole or in part by and through the Federal
Government pursuant to this Act shall be paid wages at rates not less than
those prevailing on projects of a character similar in the locality as
determined by the Secretary of Labor in accordance with subchapter IV of
chapter 31 of title 40, United States Code.
(b)With respect to
the labor standards specified in this section, the Secretary of Labor shall
have the authority and functions set forth in Reorganization Plan Numbered 14
of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United
States Code.
(c)Projects as
defined under title 49, United States Code, funded directly by or assisted in
whole or in part by and through the Federal Government pursuant to this Act
shall be subject to the requirements of section 5333(b) of title 49, United
States Code.
<enum>I</enum><header>Relief for workers
and businesses</header>
<subtitle id="H2AC48BA28488498FBD02F36C3BBF866C"><enum>A</enum><header>Making work pay
credit</header>
<section id="H08F9F3AEB3C744F1B2CFFF6BC0BE025D"><enum>101.</enum><header>Making work pay
credit</header>
<subsection id="H4AA588CF639947E0BEF6632B64EC0BA1"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (e) of
<external-xref legal-doc="usc" parsable-cite="usc/26/36A">section 36A</external-xref> of the Internal Revenue Code of 1986 is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H7B753EB1AE254BBEB120BEE3819CD47A" style="OLC">
<subsection id="H45AC8D66E9EA40EE90F924B01AD02F9B"><enum>(e)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply to—</text>
<paragraph id="H08BAE6E39A4D4129BA54159244C37345"><enum>(1)</enum><text>beginning after
December 31, 2010, and before January 1, 2014, and</text>
</paragraph><paragraph id="H993A681D084D482F80CCCE032E901AE3"><enum>(2)</enum><text display-inline="yes-display-inline">taxable years beginning after December 31,
2014.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H69D5E159F35246EEAD909BD777533925"><enum>(b)</enum><header>Treatment of
possessions</header><text>Rules similar to the rules of subsections (b) and (c)
of section 1001 of the American Recovery and Reinvestment Tax Act of 2009 shall
apply with respect to the amendment made by subsection (a). For purposes of the
preceding sentence, such section shall be applied by substituting
<quote>taxable years beginning in 2014</quote> for <quote>taxable years
beginning in 2009 and 2010</quote> each place it occurs.</text>
</subsection><subsection id="H087CBC02CCDA4ECF9DC44A3F5145A302"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">This section, and the
amendments made by this section, shall apply to taxable years beginning after
December 31, 2013.</text>
</subsection></section></subtitle><subtitle id="HEB5D2BEFF1F14D0AA19CDA6ED0626A54"><enum>B</enum><header>Other relief for
businesses</header>
<section id="H62E99CEE68AF4149BC54A2E311659B8A"><enum>111.</enum><header>Extension of
temporary 100 percent bonus depreciation for certain business assets</header>
<subsection id="H10E35D3BFBF14C10B88D41DBF7232523"><enum>(a)</enum><header>In
general</header><text>Paragraph (5) of section 168(k) of the Internal Revenue
Code is amended—</text>
<paragraph id="H494ED1751D1B4C4EAD563A04D6C87CEC"><enum>(1)</enum><text>by striking
<quote>January 1, 2012</quote> each place it appears and inserting
<quote>January 1, 2015</quote>, and</text>
</paragraph><paragraph id="H249D01CC121A42B4BB340CF5B4C0826F"><enum>(2)</enum><text>by striking
<quote>January 1, 2013</quote> and inserting <quote>January 1,
2016</quote>.</text>
</paragraph></subsection><subsection id="H7696BDA952E94DE883535196EDD831F2"><enum>(b)</enum><header>Conforming
amendment</header><text>The heading for paragraph (5) of section 168(k) of the
Internal Revenue Code is amended by striking <quote><header-in-text level="paragraph" style="OLC">Pre-2012 periods</header-in-text></quote> and
inserting <quote><header-in-text level="paragraph" style="OLC">Pre-2014
periods</header-in-text></quote>.</text>
</subsection></section><section id="H605BC717D3ED4D4C854EEB78984F877A"><enum>112.</enum><header>Surety
bonds</header>
<subsection id="H41A5C862286F46349D806EB4D849A17A"><enum>(a)</enum><header>Maximum bond
amount</header><text>Section 411(a)(1) of the Small Business Investment Act of
1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/694b">15 U.S.C. 694b(a)(1)</external-xref>) is amended by striking <quote>$2,000,000</quote>
and inserting <quote>$5,000,000</quote>.</text>
</subsection><subsection id="H50950FD8528E4C649B59B2EA092E2A59"><enum>(b)</enum><header>Denial of
liability</header><text>Section 411(e)(2) of the Small Business Investment Act
of 1958 (<external-xref legal-doc="usc" parsable-cite="usc/15/694b">15 U.S.C. 694b(e)(2)</external-xref>) is amended by striking <quote>$2,000,000</quote>
and inserting <quote>$5,000,000</quote>.</text>
</subsection><subsection id="HFE46C56DD4D6477C9A25C567E18591BE"><enum>(c)</enum><header>Sunset</header><text>The
amendments made by subsections (a) and (b) of this section shall remain in
effect until September 30, 2014.</text>
</subsection><subsection id="HA2E4D6192EBD4BF58F31AF55D5962B39"><enum>(d)</enum><header>Funding</header><text>There
is appropriated out of any money in the Treasury not otherwise appropriated,
$3,000,000, to remain available until expended, for additional capital for the
Surety Bond Guarantees Revolving Fund, as authorized by the Small Business
Investment Act of 1958, as amended.</text>
</subsection></section></subtitle><enum>II</enum><header>Putting workers
back on the job while rebuilding and modernizing America</header>
<subtitle id="H44C5948DF95A462685ADBCB5E695141B"><enum>A</enum><header>Teacher
stabilization</header>
<section id="HFEA27BE278C24006BAAEAC4087D41205"><enum>201.</enum><header>Purpose</header><text display-inline="no-display-inline">The purpose of this subtitle is to provide
funds to States to prevent teacher layoffs and support the creation of
additional jobs in public early childhood, elementary, and secondary education
in the 2013–2014 and 2014–2015 school years.</text>
</section><section id="H518770C8B1C749C7B06E6F3E98A204D0"><enum>202.</enum><header>Grants for the
outlying areas and the Secretary of the Interior; availability of
funds</header>
<subsection id="H88AD0BDEEBEE4E9D82490FE434DE6A4F"><enum>(a)</enum><header>Reservation of
funds</header><text>From the amount appropriated to carry out this subtitle
under section 212, the Secretary—</text>
<paragraph id="HEA35CA68177F4C1EA124E848678A69A2"><enum>(1)</enum><text>shall reserve up
to one-half of one percent to provide assistance to the outlying areas on the
basis of their respective needs, as determined by the Secretary, for activities
consistent with this subtitle under such terms and conditions as the Secretary
may determine;</text>
</paragraph><paragraph id="HFBCD5F26734348A7A61CD0429B674555"><enum>(2)</enum><text>shall reserve up
to one-half of one percent to provide assistance to the Secretary of the
Interior to carry out activities consistent with this subtitle, in schools
operated or funded by the Bureau of Indian Education; and</text>
</paragraph><paragraph id="HAF63230D232D4D68937CBD4630FC2FDF"><enum>(3)</enum><text>may reserve up to
$2,000,000 for administration and oversight of this subtitle, including program
evaluation.</text>
</paragraph></subsection><subsection id="HDFCE6DC8F2E0458795F6461549CAE0AD"><enum>(b)</enum><header>Availability of
funds</header><text>Funds made available under section 212 shall remain
available to the Secretary until September 30, 2014.</text>
</subsection></section><section id="H0B66522992654A24957F63C6F7375CF7"><enum>203.</enum><header>State
allocation</header>
<subsection id="HB4FF01FF0C9B4889BC6CCDCA8FF9E8E2"><enum>(a)</enum><header>Allocation</header><text>After
reserving funds under section 203(a), the Secretary shall allocate the
remaining funds appropriated under section 212 to States, of which—</text>
<paragraph id="HCE18DB8CB5F44085B310D7A2B7CB1A99"><enum>(1)</enum><text>60 percent shall
be allocated to States on the basis of their relative population of individuals
aged 5 through 17; and</text>
</paragraph><paragraph id="H2DAF0799ECA845C9880104C0AFE2688C"><enum>(2)</enum><text>40 percent shall
be allocated to States on the basis of their relative total population.</text>
</paragraph></subsection><subsection id="HA7CCF38F1D7A44989F2D74D57372C478"><enum>(b)</enum><header>Awards</header><text>The
Secretary shall award a State’s allocation under subsection (a) to the Governor
of the State only if the Secretary has approved the State’s application under
section 205.</text>
</subsection><subsection id="H55E83D975E8243AABD3719B15CEB6F1F"><enum>(c)</enum><header>Alternate
distribution of funds</header>
<paragraph id="H56BC18506D054B7CADE0FA2AFEBCAE00"><enum>(1)</enum><header>In
general</header><text>If, within 30 days after the date of enactment of this
Act, a Governor has not submitted an approvable application to the Secretary,
the Secretary shall, consistent with paragraph (2), provide for funds allocated
to that State to be distributed to another entity or other entities in the
State for the support of early childhood, elementary, and secondary education,
under such terms and conditions as the Secretary may establish.</text>
</paragraph><paragraph id="H1AF8A30903244280870DEA7E9D19556A"><enum>(2)</enum><header>Maintenance of
effort</header>
<subparagraph id="H2F8106B543424DEBB2418D4FCE27DC9A"><enum>(A)</enum><header>Governor
assurance</header><text>The Secretary shall not allocate funds under paragraph
(1) unless the Governor of the State provides an assurance to the Secretary
that the State will for fiscal years 2014 and 2015 meet the requirements of
section 209.</text>
</subparagraph><subparagraph id="H14AFFF11B09C4F7CAEA926335FB3A479"><enum>(B)</enum><header>Allocations to
other entities</header><text>Notwithstanding subparagraph (A), the Secretary
may allocate up to 50 percent of the funds that are available to the State
under paragraph (1) to another entity or entities in the State, provided that
the State educational agency submits data to the Secretary demonstrating that
the State will for fiscal year 2014 meet the requirements of section 209(a) or
the Secretary otherwise determines that the State will meet those requirements,
or such comparable requirements as the Secretary may establish, for that
year.</text>
</subparagraph></paragraph><paragraph id="H626DE3698C694AFAB8A038AF8D327C6B"><enum>(3)</enum><header>Requirements</header><text>An
entity that receives funds under paragraph (1) shall use those funds in
accordance with the requirements of this subtitle.</text>
</paragraph></subsection><subsection id="H5F57FF642FC34BD2AEBB7EFEF17D5703"><enum>(d)</enum><header>Reallocation</header><text>If
a State does not receive funding under this subtitle or only receives a portion
of its allocation under subsection (c), the Secretary shall reallocate the
State’s entire allocation or the remaining portion of its allocation, as the
case may be, to the remaining States in accordance with subsection (a).</text>
</subsection></section><section id="HA02F211FDC2A431AB29A04FBBF6AD8EF"><enum>204.</enum><header>State
application</header><text display-inline="no-display-inline">The Governor of a
State desiring to receive a grant under this subtitle shall submit an
application to the Secretary within 30 days of the date of enactment of this
Act, in such manner, and containing such information as the Secretary may
reasonably require to determine the State’s compliance with applicable
provisions of law.</text>
</section><section id="H1FAEC9BE61F54B63A269D56193F34470"><enum>205.</enum><header>State
reservation and responsibilities</header>
<subsection id="H65E51172930C4ED6BD5D27E7C8F0797A"><enum>(a)</enum><header>Reservation</header><text>Each
State receiving a grant under section 204(b) may reserve—</text>
<paragraph id="H8143088E931B46A8A26DCEE7CFFFEEF0"><enum>(1)</enum><text>not more than 10
percent of the grant funds for awards to State-funded early learning programs;
and</text>
</paragraph><paragraph id="HAFD767A41AAF4893804E0729FFBD75B9"><enum>(2)</enum><text>not more than 2
percent of the grant funds for the administrative costs of carrying out its
responsibilities under this subtitle.</text>
</paragraph></subsection><subsection id="HCC59352FC2514E52AF1DF4F9FF8849F9"><enum>(b)</enum><header>State
responsibilities</header><text>Each State receiving a grant under this subtitle
shall, after reserving any funds under subsection (a)—</text>
<paragraph id="H0CF418FF3CCC4C66832526DC9FE3E8C9"><enum>(1)</enum><text>use the remaining
grant funds only for awards to local educational agencies for the support of
early childhood, elementary, and secondary education;</text>
</paragraph><paragraph id="HF137D734354446108FE41090FFA5A0E5"><enum>(2)</enum><text>distribute those
funds, through subgrants, to its local educational agencies by
distributing—</text>
<subparagraph id="H9C8F94927A0548C58E23895C1150B5E1"><enum>(A)</enum><text>60 percent on the
basis of the local educational agencies’ relative shares of enrollment;
and</text>
</subparagraph><subparagraph id="H58C99BE38763422F862E8D5130CE69EB"><enum>(B)</enum><text>40 percent on the
basis of the local educational agencies’ relative shares of funds received
under part A of title I of the Elementary and Secondary Education Act of 1965
for fiscal year 2013; and</text>
</subparagraph></paragraph><paragraph id="H75613B530E1F4984B685FB58DCE36378"><enum>(3)</enum><text>make those funds
available to local educational agencies no later than 100 days after receiving
a grant from the Secretary.</text>
</paragraph></subsection><subsection id="HBD14E8B58A7F4F2795D226A223E7F84D"><enum>(c)</enum><header>Prohibitions</header><text>A
State shall not use funds received under this subtitle to directly or
indirectly—</text>
<paragraph id="H2CAC6C15355346B8944D4CE3686F06CF"><enum>(1)</enum><text>establish,
restore, or supplement a rainy-day fund;</text>
</paragraph><paragraph id="H23F45DEADF5B4FE1BF7A5F5CA486119D"><enum>(2)</enum><text>supplant State
funds in a manner that has the effect of establishing, restoring, or
supplementing a rainy-day fund;</text>
</paragraph><paragraph id="H0D2DC9EF43FB46A2AFBC0B1C763AA997"><enum>(3)</enum><text>reduce or retire
debt obligations incurred by the State; or</text>
</paragraph><paragraph id="HDADD6FB6CA4F427D87AC92A1A4413073"><enum>(4)</enum><text>supplant State
funds in a manner that has the effect of reducing or retiring debt obligations
incurred by the State.</text>
</paragraph></subsection></section><section id="HE19ED53C130E4FB3A9FA3815867FC065"><enum>206.</enum><header>Local
educational agencies</header><text display-inline="no-display-inline">Each
local educational agency that receives a subgrant under this subtitle—</text>
<paragraph id="HDEC3BBB2462E40F990F0B956B1D9386A"><enum>(1)</enum><text>shall use the
subgrant funds only for compensation and benefits and other expenses, such as
support services, necessary to retain existing employees, recall or rehire
former employees, or hire new employees to provide early childhood, elementary,
or secondary educational and related services;</text>
</paragraph><paragraph id="HF968206EF05148A6AEB3A2381A5CAD95"><enum>(2)</enum><text>shall obligate
those funds not later than September 30, 2015; and</text>
</paragraph><paragraph id="H7364EDED7A02412E81C266E5A69A4044"><enum>(3)</enum><text>may not use those
funds for general administrative expenses or for other support services or
expenditures, as those terms are defined by the National Center for Education
Statistics in the Common Core of Data, as of the date of enactment of this
Act.</text>
</paragraph></section><section id="HD3615D2DC95744DE9F3032F74981A7C0"><enum>207.</enum><header>Early
learning</header><text display-inline="no-display-inline">Each State-funded
early learning program that receives funds under this subtitle shall—</text>
<paragraph id="HAF718D08BF544B099DD3AF27DC99078F"><enum>(1)</enum><text>use those funds
only for compensation, benefits, and other expenses, such as support services,
necessary to retain early childhood educators, recall or rehire former early
childhood educators, or hire new early childhood educators to provide early
learning services; and</text>
</paragraph><paragraph id="HBC2184ECD17743F1801B6294CCECB5F3"><enum>(2)</enum><text>obligate those
funds not later than September 30, 2015.</text>
</paragraph></section><section id="H9B19E7A7FD424D22AD5B3EC63F52B017"><enum>208.</enum><header>Maintenance of
effort</header>
<subsection id="H601F8345481A496D9DF18B1B1C11F569"><enum>(a)</enum><header>Requirement</header><text>The
Secretary shall not allocate funds to a State under this subtitle unless the
State provides an assurance to the Secretary that—</text>
<paragraph id="H0527E1AC19DE4C0EBA53B5F000604B2A"><enum>(1)</enum><text>for State fiscal
year 2014—</text>
<subparagraph id="HDA0E3E81052B4ACAB79033B6AD0A380F"><enum>(A)</enum><text>the State will
maintain State support for early childhood, elementary, and secondary education
(in the aggregate or on the basis of expenditure per pupil) and for public
institutions of higher education (not including support for capital projects or
for research and development or tuition and fees paid by students) at not less
than the level of such support for each of the two categories for State fiscal
year 2013; or</text>
</subparagraph><subparagraph id="H03E2C9786CA64EC287D220FC50D54C6A"><enum>(B)</enum><text>the State will
maintain State support for early childhood, elementary, and secondary education
and for public institutions of higher education (not including support for
capital projects or for research and development or tuition and fees paid by
students) at a percentage of the total revenues available to the State that is
equal to or greater than the percentage provided for State fiscal year 2013;
and</text>
</subparagraph></paragraph><paragraph id="H307022A9447B4630AD15334FD38F887D"><enum>(2)</enum><text>for State fiscal
year 2015—</text>
<subparagraph id="HD05B42145ABB4BF084B94A308D255F64"><enum>(A)</enum><text>the State will
maintain State support for early childhood, elementary, and secondary education
(in the aggregate or on the basis of expenditure per pupil) and for public
institutions of higher education (not including support for capital projects or
for research and development or tuition and fees paid by students) at not less
than the level of such support for each of the two categories for State fiscal
year 2014; or</text>
</subparagraph><subparagraph id="HCB6A56F50D5C45BA84E87D591E563334"><enum>(B)</enum><text>the State will
maintain State support for early childhood, elementary, and secondary education
and for public institutions of higher education (not including support for
capital projects or for research and development or tuition and fees paid by
students) at a percentage of the total revenues available to the State that is
equal to or greater than the percentage provided for State fiscal year
2014.</text>
</subparagraph></paragraph></subsection><subsection id="H0568C55F7934415FBECF9712053318F2"><enum>(b)</enum><header>Waiver</header><text>The
Secretary may waive the requirements of this section if the Secretary
determines that a waiver would be equitable due to—</text>
<paragraph id="HFA8880B49C0F41DBA6D82269B149E3B9"><enum>(1)</enum><text>exceptional or
uncontrollable circumstances, such as a natural disaster; or</text>
</paragraph><paragraph id="HDC75F77889FE44A8A839932C0AD1496E"><enum>(2)</enum><text>a
precipitous decline in the financial resources of the State.</text>
</paragraph></subsection></section><section id="HE19FC5A39FDE44399615F63BFA4B7327"><enum>209.</enum><header>Reporting</header><text display-inline="no-display-inline">Each State that receives a grant under this
subtitle shall submit, on an annual basis, a report to the Secretary that
contains—</text>
<paragraph id="H9748B9A69ADD4807831B555A293F0B53"><enum>(1)</enum><text>a
description of how funds received under this part were expended or obligated;
and</text>
</paragraph><paragraph id="H9E25F384D01A41C8B2E1AC580514A688"><enum>(2)</enum><text>an estimate of the
number of jobs supported by the State using funds received under this
subtitle.</text>
</paragraph></section><section id="H97ADF37F66A4477ABF354415CC565340"><enum>210.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text>
<paragraph id="HEF1F88890B2342478B40B829EC6F030B"><enum>(1)</enum><header>ESEA
definitions</header><text>Except as otherwise provided, the terms <quote>local
educational agency</quote>, <quote>outlying area</quote>,
<quote>Secretary</quote>, <quote>State</quote>, and <quote>State educational
agency</quote> have the meanings given those terms in section 9101 of the
Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7801">20 U.S.C. 7801</external-xref>).</text>
</paragraph><paragraph id="H52A18432A6314301B8DED295B286305D"><enum>(2)</enum><header>State</header><text>The
term <quote>State</quote> does not include an outlying area.</text>
</paragraph><paragraph id="H7D60636579FD4B5BA3096CDDE02C9629"><enum>(3)</enum><header>Early child
educator</header><text>The term <quote>early childhood educator</quote> means
an individual who—</text>
<subparagraph id="HD29223D20FBB42DCB55C0C08C7E60C19"><enum>(A)</enum><text>works directly
with children in a State-funded early learning program in a low-income
community;</text>
</subparagraph><subparagraph id="H32D3341533D2445A80AB2C3116D010A6"><enum>(B)</enum><text>is involved
directly in the care, development, and education of infants, toddlers, or young
children age five and under; and</text>
</subparagraph><subparagraph id="HD2B996AB9FA54587AF9B33402A0BD18A"><enum>(C)</enum><text>has completed a
baccalaureate or advanced degree in early childhood development or early
childhood education, or in a field related to early childhood education.</text>
</subparagraph></paragraph><paragraph id="HBB081C01F6B644C9B99D17E278655829"><enum>(4)</enum><header>State-funded
early learning program</header><text>The term <quote>State-funded early
learning program</quote> means a program that provides educational services to
children from birth to kindergarten entry and receives funding from a
State.</text>
</paragraph></section><section id="H1747022C31AB4F6D8B30594965AB5515"><enum>211.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">There are
authorized to be appropriated, and there are appropriated, $30,000,000,000 to
carry out this subtitle for fiscal year 2014.</text>
</section></subtitle><subtitle id="H726D69663B0A47ADBCB2F888E6EE6C8F"><enum>B</enum><header>First responder
stabilization</header>
<section id="H02C6B17FCEBF4F5C9B1AD6B1CAFAC67A"><enum>212.</enum><header>Purpose</header><text display-inline="no-display-inline">The purpose of this subtitle is to provide
funds to States and localities to prevent layoffs of, and support the creation
of additional jobs for, law enforcement officers and other first
responders.</text>
</section><section id="H0E549297E0E84C6689FFB8FBAE9FE915"><enum>213.</enum><header>Grant
program</header><text display-inline="no-display-inline">The Attorney General
shall carry out a competitive grant program pursuant to section 1701 of title I
of the Omnibus Crime Control and Safe Streets Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/3796dd">42 U.S.C. 3796dd</external-xref>)
for hiring, rehiring, or retention of career law enforcement officers under
part Q of such title. Grants awarded under this section shall not be subject to
subsections (g) or (i) of section 1701 or to section 1704 of such Act (42
U.S.C. 3796dd–3(c)).</text>
</section><section id="H715D00AE4B2741F0B44EE6F6B169F7D2"><enum>214.</enum><header>Appropriations</header><text display-inline="no-display-inline">There are hereby appropriated to the
Community Oriented Policing Stabilization Fund out of any money in the Treasury
not otherwise obligated, $5,000,000,000, to remain available until September
30, 2012, of which $4,000,000,000 shall be for the Attorney General to carry
out the competitive grant program under section 214; and of which
$1,000,000,000 shall be transferred by the Attorney General to a First
Responder Stabilization Fund from which the Secretary of Homeland Security
shall make competitive grants for hiring, rehiring, or retention pursuant to
the Federal Fire Prevention and Control Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/15/2201">15 U.S.C. 2201 et seq.</external-xref>),
to carry out section 34 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/2229a">15 U.S.C. 2229a</external-xref>). In making such grants,
the Secretary may grant waivers from the requirements in subsections (a)(1)(A),
(a)(1)(B), (a)(1)(E), (c)(1), (c)(2), and (c)(4)(A) of such section 34. Of the
amounts appropriated herein, not to exceed $8,000,000 shall be for
administrative costs of the Attorney General, and not to exceed $2,000,000
shall be for administrative costs of the Secretary of Homeland Security.</text>
</section></subtitle><subtitle id="H8691A708D37F4C1DABB60F1FED59696C"><enum>C</enum><header>School
modernization</header>
<part id="H56A239E777EB447CB6A7657EDF286662"><enum>I</enum><header>Elementary and
secondary schools</header>
<section id="HFB3C3339C86A4243AAD30D91542496A9"><enum>221.</enum><header>Purpose</header><text display-inline="no-display-inline">The purpose of this part is to provide
assistance for the modernization, renovation, and repair of elementary and
secondary school buildings in public school districts across America in order
to support the achievement of improved educational outcomes in those
schools.</text>
</section><section id="HF4F905BA0F63440DBA575387CAB6AD3F"><enum>222.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">There are
authorized to be appropriated, and there are appropriated, $25,000,000,000 to
carry out this part, which shall be available for obligation by the Secretary
until September 30, 2014.</text>
</section><section id="HAE9EFD2353484D96AE64B28694EA709D"><enum>223.</enum><header>Allocation of
funds</header>
<subsection id="H8D83775C19EE4A53B62804DBADBF3CA9"><enum>(a)</enum><header>Reservations</header><text>Of
the amount made available to carry out this part, the Secretary shall
reserve—</text>
<paragraph id="HC69B52AC910E4C3B8442A06CE908C60A"><enum>(1)</enum><text>one-half of one
percent for the Secretary of the Interior to carry out modernization,
renovation, and repair activities described in section 226 in schools operated
or funded by the Bureau of Indian Education;</text>
</paragraph><paragraph id="HCC2D6FF63889468F94CEB6DFDE4ACED1"><enum>(2)</enum><text>one-half of one
percent to make grants to the outlying areas for modernization, renovation, and
repair activities described in section 226; and</text>
</paragraph><paragraph id="H6C4C9D3BE06E4304A61B8CBB6630277F"><enum>(3)</enum><text>such funds as the
Secretary determines are needed to conduct a survey, by the National Center for
Education Statistics, of the school construction, modernization, renovation,
and repair needs of the public schools of the United States.</text>
</paragraph></subsection><subsection id="H202B98CBDB3B405094B073C6B09593EA"><enum>(b)</enum><header>State
allocation</header><text>After reserving funds under subsection (a), the
Secretary shall allocate the remaining amount among the States in proportion to
their respective allocations under part A of title I of the Elementary and
Secondary Education Act of 1965 (in this part referred to as the
<quote>ESEA</quote>) (<external-xref legal-doc="usc" parsable-cite="usc/20/6311">20 U.S.C. 6311 et seq.</external-xref>) for fiscal year 2013, except
that—</text>
<paragraph id="H9FA87D71D0DD4E69AE14742910090C17"><enum>(1)</enum><text>the Secretary
shall allocate 40 percent of such remaining amount to the 100 local educational
agencies with the largest numbers of children aged 5–17 living in poverty, as
determined using the most recent data available from the Department of Commerce
that are satisfactory to the Secretary, in proportion to those agencies’
respective allocations under part A of title I of the ESEA for fiscal year
2013; and</text>
</paragraph><paragraph id="HD97BDF2F21564DCB8E2DDDBA907787F5"><enum>(2)</enum><text>the allocation to
any State shall be reduced by the aggregate amount of the allocations under
paragraph (1) to local educational agencies in that State.</text>
</paragraph></subsection><subsection id="H66A0FE0EB5AE4C06AE249816B3847EFD"><enum>(c)</enum><header>Remaining
allocation</header>
<paragraph id="H05B6F745EBAA4769A7014D76D00E44D7"><enum>(1)</enum><header>States</header><text>If
a State does not apply for its allocation under subsection (b) (or applies for
less than the full allocation for which it is eligible) or does not use that
allocation in a timely manner, the Secretary may—</text>
<subparagraph id="HBB42B587165B49AC93F6D259D6F26A7C"><enum>(A)</enum><text>reallocate all or
a portion of that allocation to the other States in accordance with subsection
(b); or</text>
</subparagraph><subparagraph id="HD63B3DC17108446F81525EDB31C15C49"><enum>(B)</enum><text>use all or a
portion of that allocation to make direct allocations to local educational
agencies within the State based on their respective allocations under part A of
title I of the ESEA for fiscal year 2013 or such other method as the Secretary
may determine.</text>
</subparagraph></paragraph><paragraph id="HDBDF8D98506C4C70BECC57CE38230AD4"><enum>(2)</enum><header>Local
educational agencies</header><text>If a local educational agency does not apply
for its allocation under subsection (b)(1), applies for less than the full
allocation for which it is eligible, or does not use that allocation in a
timely manner, the Secretary may reallocate all or a portion of its allocation
to the State in which that agency is located.</text>
</paragraph></subsection></section><section id="HF4E12E7BCDC04F56B2B99ABAAB287A78"><enum>224.</enum><header>State use of
funds</header>
<subsection id="H67F5543BA8EC47A280A02D2716BCB726"><enum>(a)</enum><header>Reservation</header><text>Each
State that receives a grant under this part may reserve not more than one
percent of the State’s allocation under section 223(b) for the purpose of
administering the grant, except that no State may reserve more than $750,000
for this purpose.</text>
</subsection><subsection id="H69D94EE626684579A74BB53C1643CEC6"><enum>(b)</enum><header>Funds to local
educational agencies</header>
<paragraph id="H595A6392B2944DEEB92336A9FE9629E1"><enum>(1)</enum><header>Formula
subgrants</header><text>From the grant funds that are not reserved under
subsection (a), a State shall allocate at least 50 percent to local educational
agencies, including charter schools that are local educational agencies, that
did not receive funds under section 223(b)(1) from the Secretary, in accordance
with their respective allocations under part A of title I of the ESEA for
fiscal year 2013, except that no such local educational agency shall receive
less than $10,000.</text>
</paragraph><paragraph id="HBBBF316489E340D1BD2ABDB873662FD7"><enum>(2)</enum><header>Additional
subgrants</header><text>The State shall use any funds remaining, after
reserving funds under subsection (a) and allocating funds under paragraph (1),
for subgrants to local educational agencies that did not receive funds under
section 223(b)(1), including charter schools that are local educational
agencies, to support modernization, renovation, and repair projects that the
State determines, using objective criteria, are most needed in the State, with
priority given to projects in rural local educational agencies.</text>
</paragraph></subsection><subsection id="H87A6830668914FF8BEC21103EDCEB7FA"><enum>(c)</enum><header>Remaining
funds</header><text>If a local educational agency does not apply for an
allocation under subsection (b)(1), applies for less than its full allocation,
or fails to use that allocation in a timely manner, the State may reallocate
any unused portion to other local educational agencies in accordance with
subsection (b).</text>
</subsection></section><section id="HB1BF0D6E75FC47D7BAAE51031C83E6CB"><enum>225.</enum><header>State and local
applications</header>
<subsection id="HA0C0B5256F8E4AD2B16B2F50B6C3190B"><enum>(a)</enum><header>State
application</header><text>A State that desires to receive a grant under this
part shall submit an application to the Secretary at such time, in such manner,
and containing such information and assurances as the Secretary may require,
which shall include—</text>
<paragraph id="H5413BBF0000B4F67A4BBEA6769F74E64"><enum>(1)</enum><text>an identification
of the State agency or entity that will administer the program under this part;
and</text>
</paragraph><paragraph id="HF0A5ADF55EF74E0F985F0CF9622692A9"><enum>(2)</enum><text>the State’s
process for determining how the grant funds will be distributed and
administered, including—</text>
<subparagraph id="H7BBD8A8D45314A178F2BB2A477B25630"><enum>(A)</enum><text>how the State will
determine the criteria and priorities in making subgrants under section
224(b)(2);</text>
</subparagraph><subparagraph id="H95D30C4308D3423BB3064B92F732BEDF"><enum>(B)</enum><text>any additional
criteria the State will use in determining which projects it will fund under
that section;</text>
</subparagraph><subparagraph id="HF7505D828ACC4C83BB9E5F1F2F81BF2A"><enum>(C)</enum><text>a description of
how the State will consider—</text>
<clause id="H8B661B05354F4CC78517F04DFC8D07FD"><enum>(i)</enum><text>the
needs of local educational agencies for assistance under this part;</text>
</clause><clause id="H26C9D451B9C04325BCCE117068932293"><enum>(ii)</enum><text>the
impact of potential projects on job creation in the State;</text>
</clause><clause id="HE2EDEEA867964CEEBCDA754CFE5433FD"><enum>(iii)</enum><text>the fiscal
capacity of local educational agencies applying for assistance;</text>
</clause><clause id="H620671933677492A892148ED252C715F"><enum>(iv)</enum><text>the
percentage of children in those local educational agencies who are from
low-income families; and</text>
</clause><clause id="HCE2B991AA0204C56870B603488CA117B"><enum>(v)</enum><text>the
potential for leveraging assistance provided by the program under this part
through matching or other financing mechanisms;</text>
</clause></subparagraph><subparagraph id="H163D6C73E54446C1BCF6BD20F3E0FA52"><enum>(D)</enum><text>a description of
how the State will ensure that the local educational agencies receiving
subgrants meet the requirements of this part;</text>
</subparagraph><subparagraph id="H23CF804CE674489487BABCD96081A423"><enum>(E)</enum><text>a description of
how the State will ensure that the State and its local educational agencies
meet the deadlines established in section 228;</text>
</subparagraph><subparagraph id="H2B0161CFDAC14E168C2F35E9CD8DB255"><enum>(F)</enum><text>a description of
how the State will give priority to the use of green practices that are
certified, verified, or consistent with any applicable provisions of—</text>
<clause id="H1ADD7CFFD9214323BD213466BE1E11DB"><enum>(i)</enum><text>the
LEED Green Building Rating System;</text>
</clause><clause id="H351C472CF61149998EC5683263A8E09E"><enum>(ii)</enum><text>Energy
Star;</text>
</clause><clause id="HDDA1F886FF6D45648BD1AF398B08A207"><enum>(iii)</enum><text>the CHPS
Criteria;</text>
</clause><clause id="HB8F0764973AA4A44AF4E77C131C03A7A"><enum>(iv)</enum><text>Green Globes;
or</text>
</clause><clause id="H7C18B46F9BA74DF59374B9E4FA361B6C"><enum>(v)</enum><text>an
equivalent program adopted by the State or another jurisdiction with authority
over the local educational agency;</text>
</clause></subparagraph><subparagraph id="HA26A4ABE993444BFAE1ECEF4C172D3F0"><enum>(G)</enum><text>a description of
the steps that the State will take to ensure that local educational agencies
receiving subgrants under this part will adequately maintain any facilities
that are modernized, renovated, or repaired with such subgrant funds;
and</text>
</subparagraph><subparagraph id="HF7DC7B60663A4D3E92BC83AD6A2A7948"><enum>(H)</enum><text>such additional
information and assurances as the Secretary may require.</text>
</subparagraph></paragraph></subsection><subsection id="HAAB8FCB0578848DBA7FD2C54FD7A5815"><enum>(b)</enum><header>Local
application</header><text>A local educational agency that is eligible under
section 223(b)(1) that desires to receive a grant under this part shall submit
an application to the Secretary at such time, in such manner, and containing
such information and assurances as the Secretary may require, which shall
include—</text>
<paragraph id="HE4335FC47B98409FB493A16302A0981B"><enum>(1)</enum><text>a
description of how the local educational agency will meet the deadlines and
requirements of this part;</text>
</paragraph><paragraph id="HB55AE78EFD8448E6BCEBDD178C5DA3C9"><enum>(2)</enum><text>a
description of the steps that the local educational agency will take to
adequately maintain any facilities that are modernized, renovated, or repaired
with funds under this part; and</text>
</paragraph><paragraph id="H1213B93362BF4AF9BF3695A1EB8779D2"><enum>(3)</enum><text>such additional
information and assurances as the Secretary may require.</text>
</paragraph></subsection></section><section id="HF098F7BA70F846058D36F0793873C2BD"><enum>226.</enum><header>Use of
funds</header>
<subsection id="HFB5954DE2389471D9A3BB597BADC8ECC"><enum>(a)</enum><header>In
general</header><text>Funds awarded to local educational agencies under this
part shall be used only for either or both of the following modernization,
renovation, or repair activities in facilities that are used for elementary or
secondary education or for early learning programs:</text>
<paragraph id="H15BE4FB915AF4C33A3DE86001E9E4B0E"><enum>(1)</enum><text>Direct payments
for school modernization, renovation, or repair.</text>
</paragraph><paragraph id="H8E71BE9E0F484013A63FC2540B47D0F5"><enum>(2)</enum><text>To pay interest on
bonds or payments for other financing instruments that are newly issued for the
purpose of financing school modernization, renovation, or repair.</text>
</paragraph></subsection><subsection id="HA9DC11D6D7DC4891A13BD614C7631B1B"><enum>(b)</enum><header>Supplement, not
supplant</header><text>Funds made available under this part shall be used to
supplement, and not supplant, other Federal, State, and local funds that would
otherwise be expended to modernize, renovate, or repair eligible school
facilities.</text>
</subsection><subsection id="H2D378911D5DA42F3B4DFF7A79C48596B"><enum>(c)</enum><header>Prohibition</header><text>Funds
awarded to local educational agencies under this part may not be used
for—</text>
<paragraph id="H72F806C211064F3BA2F57C32D4D39D9D"><enum>(1)</enum><text>new
construction;</text>
</paragraph><paragraph id="H742675DD206B4B2FA97D19E30C85B0F2"><enum>(2)</enum><text>payment of routine
maintenance costs; or</text>
</paragraph><paragraph id="H16DD28909472419A9F4AD59169807EED"><enum>(3)</enum><text>modernization,
renovation, or repair of stadiums or other facilities primarily used for
athletic contests or exhibitions or other events for which admission is charged
to the general public.</text>
</paragraph></subsection></section><section id="H1520830BB84642059276191780CFC0C9"><enum>227.</enum><header>Private
schools</header>
<subsection id="H2D5883C2940446F69BFC19630CD28E90"><enum>(a)</enum><header>In
general</header><text>Section 9501 of the ESEA (<external-xref legal-doc="usc" parsable-cite="usc/20/7881">20 U.S.C. 7881</external-xref>) shall apply to
this part in the same manner as it applies to activities under that Act, except
that—</text>
<paragraph id="HB140DD34DBD143A0A569EA7FA3BFD7AC"><enum>(1)</enum><text>such section 9501
shall not apply with respect to the title to any real property modernized,
renovated, or repaired with assistance provided under this part;</text>
</paragraph><paragraph id="H39C980BD5E1E4758B552064228E14BC1"><enum>(2)</enum><text>educational
services or other benefits funded under this part for private schools shall be
provided only to private, nonprofit elementary or secondary schools with a rate
of child poverty of at least 40 percent and may include only—</text>
<subparagraph id="H3CF9BD947F044DD39A65CD20C454072A"><enum>(A)</enum><text>modifications of
school facilities necessary to meet the standards applicable to public schools
under the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et
seq.);</text>
</subparagraph><subparagraph id="HD5A86DADBE1849F7AF0003CB3979C872"><enum>(B)</enum><text>modifications of
school facilities necessary to meet the standards applicable to public schools
under section 504 of the Rehabilitation Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/29/794">29 U.S.C. 794</external-xref>); and</text>
</subparagraph><subparagraph id="HFF61E8F4825D412893533E8BECA16B90"><enum>(C)</enum><text>asbestos or
polychlorinated biphenyls abatement or removal from school facilities;
and</text>
</subparagraph></paragraph><paragraph id="HB46D7A805573407BB89F3D47CED2FAD9"><enum>(3)</enum><text>expenditures for
services provided using funds made available under section 226 shall be
considered equal for purposes of section 9501(a)(4) of the ESEA if the
per-pupil expenditures for services described in paragraph (2) for students
enrolled in private, nonprofit elementary and secondary schools that have
child-poverty rates of at least 40 percent are consistent with the per-pupil
expenditures under this part for children enrolled in the public schools of the
local educational agency receiving funds under this part.</text>
</paragraph></subsection><subsection id="HCC8461B9D99E41759FAA93240835A4E8"><enum>(b)</enum><header>Remaining
funds</header><text>If the expenditure for services described in subsection
(a)(2) is less than the amount calculated under subsection (a)(3) because of
insufficient need for those services, the remainder shall be available to the
local educational agency for modernization, renovation, or repair of its school
facilities.</text>
</subsection><subsection id="HD32CFC482E5342EDB0FF676C16F84152"><enum>(c)</enum><header>Application</header><text>If
any provision of this section, or the application thereof, to any person or
circumstance is judicially determined to be invalid, the remainder of the
section and the application to other persons or circumstances shall not be
affected thereby.</text>
</subsection></section><section id="H660C132DBF84442B979C5A3E3D2BA0FA"><enum>228.</enum><header>Additional
provisions</header>
<subsection id="H323D1B71E4234EB491B11CC526DC2654"><enum>(a)</enum><header>24-Month period
of availability</header><text>Funds appropriated under section 222 shall be
available for obligation by local educational agencies receiving grants from
the Secretary under section 223(b)(1), by States reserving funds under section
224(a), and by local educational agencies receiving subgrants under section
224(b)(1) only during the period that ends 24 months after the date of
enactment of this Act.</text>
</subsection><subsection id="H8AB1D002D2174FD8BD599837F23D5FD1"><enum>(b)</enum><header>36-Month period
of availability</header><text>Funds appropriated under section 222 shall be
available for obligation by local educational agencies receiving subgrants
under section 224(b)(2) only during the period that ends 36 months after the
date of enactment of this Act.</text>
</subsection><subsection id="H88DB6F02B759473AB7682A3B67114D04"><enum>(c)</enum><header>Applicability of
GEPA</header><text>Section 439 of the General Education Provisions Act (20
U.S.C. 1232b) shall apply to funds available under this part.</text>
</subsection><subsection id="H38C0FF5CC8B7467FA94EB3B3BA6F4EFE"><enum>(d)</enum><header>Limitation</header><text>For
purposes of section 223(b)(1), Hawaii, the District of Columbia, and the
Commonwealth of Puerto Rico are not local educational agencies.</text>
</subsection></section></part><part id="HF15E230AD44A4009B0E70B7DCC2982B0"><enum>II</enum><header>Community College
modernization</header>
<section id="H1A791DD8A6B9464CA7F887426DDD8F9D"><enum>229.</enum><header>Federal
assistance for community college modernization</header>
<subsection id="HF913990C93F94B8091B5CD1A1170410C"><enum>(a)</enum><header>In
general</header>
<paragraph id="HC57A767B21AB465A93C6EC884171ADEA"><enum>(1)</enum><header>Grant
program</header><text>From the amounts made available under subsection (h), the
Secretary shall award grants to States to modernize, renovate, or repair
existing facilities at community colleges.</text>
</paragraph><paragraph id="H03EE85366020440397015B7588AB5E31"><enum>(2)</enum><header>Allocation</header>
<subparagraph id="HDA69F074E2604987B9DC5751D9E1B543"><enum>(A)</enum><header>Reservations</header><text>Of
the amount made available to carry out this section, the Secretary shall
reserve—</text>
<clause id="HFE4D2AB006F74EA98CE5FF72E150F9C6"><enum>(i)</enum><text>up
to 0.25 percent for grants to institutions that are eligible under section 316
of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1059c">20 U.S.C. 1059c</external-xref>) to provide for
modernization, renovation, and repair activities described in this section;
and</text>
</clause><clause id="HFB358EBBC54F4E5CB1850088656B1D65"><enum>(ii)</enum><text>up
to 0.25 percent for grants to the outlying areas to provide for modernization,
renovation, and repair activities described in this section.</text>
</clause></subparagraph><subparagraph id="H75A4684803384749BFD8D0BA1E6FFF8A"><enum>(B)</enum><header>Allocation</header><text>After
reserving funds under subparagraph (A), the Secretary shall allocate to each
State that has an application approved by the Secretary an amount that bears
the same relation to any remaining funds as the total number of students in
such State who are enrolled in institutions described in section 230(b)(1)(A)
plus the number of students who are estimated to be enrolled in and pursuing a
degree or certificate that is not a bachelor’s, master’s, professional, or
other advanced degree in institutions described in section 230(b)(1)(B), based
on the proportion of degrees or certificates awarded by such institutions that
are not bachelor’s, master’s, professional, or other advanced degrees, as
reported to the Integrated Postsecondary Data System bears to the estimated
total number of such students in all States, except that no State shall receive
less than $2,500,000.</text>
</subparagraph><subparagraph id="HF133A663B5B74F319E5B1302B0F65187"><enum>(C)</enum><header>Reallocation</header><text>Amounts
not allocated under this section to a State because the State either did not
submit an application under subsection (b), the State submitted an application
that the Secretary determined did not meet the requirements of such subsection,
or the State cannot demonstrate to the Secretary a sufficient demand for
projects to warrant the full allocation of the funds, shall be proportionately
reallocated under this paragraph to the other States that have a demonstrated
need for, and are receiving, allocations under this section.</text>
</subparagraph><subparagraph id="HE7FCCC00723A4B5692C4032B7D2D394A"><enum>(D)</enum><header>State
administration</header><text>A State that receives a grant under this section
may use not more than one percent of that grant to administer it, except that
no State may use more than $750,000 of its grant for this purpose.</text>
</subparagraph></paragraph><paragraph id="H3AF9E7108A1C4084A43A653C35058D54"><enum>(3)</enum><header>Supplement, not
supplant</header><text>Funds made available under this section shall be used to
supplement, and not supplant, other Federal, State, and local funds that would
otherwise be expended to modernize, renovate, or repair existing community
college facilities.</text>
</paragraph></subsection><subsection id="H972EDDA97D63406CB4829781BBAD22A4"><enum>(b)</enum><header>Application</header><text>A
State that desires to receive a grant under this section shall submit an
application to the Secretary at such time, in such manner, and containing such
information and assurances as the Secretary may require. Such application shall
include a description of—</text>
<paragraph id="H74B9C3DB26844AFEA5317105ED60414C"><enum>(1)</enum><text>how the funds
provided under this section will improve instruction at community colleges in
the State and will improve the ability of those colleges to educate and train
students to meet the workforce needs of employers in the State;</text>
</paragraph><paragraph id="H787EE68CED7F44EEBDF578420670A6CF"><enum>(2)</enum><text>the projected
start of each project and the estimated number of persons to be employed in the
project; and</text>
</paragraph><paragraph id="H64EB5732E805493F99DBC4553B4604AE"><enum>(3)</enum><text>the cost of each
project and the total amount of funds requested for each project and for all
projects.</text>
</paragraph></subsection><subsection id="HE2E50C4F139144449C03A6D58848F6ED"><enum>(c)</enum><header>Prohibited uses
of funds</header>
<paragraph id="HF1FDAB4E08F94255961A2C9A913D049B"><enum>(1)</enum><header>In
general</header><text>No funds awarded under this section may be used
for—</text>
<subparagraph id="HC6AE92379C184821ADC6F9D4ED976DAE"><enum>(A)</enum><text>payment of routine
maintenance costs;</text>
</subparagraph><subparagraph id="HFFBE5F0C93A24FDFA6251EE6DE79FA71"><enum>(B)</enum><text>construction,
modernization, renovation, or repair of stadiums or other facilities primarily
used for athletic contests or exhibitions or other events for which admission
is charged to the general public; or</text>
</subparagraph><subparagraph id="H4119DA0173684145918B722A95D030E2"><enum>(C)</enum><text>construction,
modernization, renovation, or repair of facilities—</text>
<clause id="H3328A56290F84D5EA952F9FCBCF341C4"><enum>(i)</enum><text>used
for sectarian instruction, religious worship, or a school or department of
divinity; or</text>
</clause><clause id="HDB93751A5FB54E799A9804CBEA86106F"><enum>(ii)</enum><text>in
which a substantial portion of the functions of the facilities are subsumed in
a religious mission.</text>
</clause></subparagraph></paragraph><paragraph id="HE8AA93A741BB48DC831C785C8F5F14AA"><enum>(2)</enum><header>Four-year
institutions</header><text>No funds awarded to a four-year public institution
of higher education under this section may be used for any facility, service,
or program of the institution that is not available to students who are
pursuing a degree or certificate that is not a bachelor’s, master’s,
professional, or other advanced degree.</text>
</paragraph></subsection><subsection id="H187331CF12364C8DAC535336069F2BA1"><enum>(d)</enum><header>Green
projects</header><text>In providing assistance to community college projects
under this section, the State shall consider the extent to which a community
college’s project involves activities that are certified, verified, or
consistent with the applicable provisions of—</text>
<paragraph id="H63086552C86E4C779660B3B1021C1E82"><enum>(1)</enum><text>the LEED Green
Building Rating System;</text>
</paragraph><paragraph id="HCA22E2606F4645848643F473FE15F47E"><enum>(2)</enum><text>Energy
Star;</text>
</paragraph><paragraph id="H11092C132CAA4E22AB1436819F487085"><enum>(3)</enum><text>the CHPS Criteria,
as applicable;</text>
</paragraph><paragraph id="H3B7408596E7F4B57A0F388336171F05C"><enum>(4)</enum><text>Green Globes;
or</text>
</paragraph><paragraph id="H8E9FD9BA5C3340858D3C2E9D7C5D1EF9"><enum>(5)</enum><text>an equivalent
program adopted by the State or the State higher education agency that includes
a verifiable method to demonstrate compliance with such program.</text>
</paragraph></subsection><subsection id="H0439C6AC827C4F9DBA0B39FD5F2F2E7C"><enum>(e)</enum><header>Application of
GEPA</header><text>Section 439 of the General Education Provisions Act (20
U.S.C. 1232b) shall apply to funds available under this section.</text>
</subsection><subsection id="HE49F1285B6364B5683BBF6E66FC16D0F"><enum>(f)</enum><header>Reports by the
states</header><text>Each State that receives a grant under this section shall,
not later than September 30, 2014, and annually thereafter for each fiscal year
in which the State expends funds received under this section, submit to the
Secretary a report that includes—</text>
<paragraph id="HB2D198E4988543BD9C9693FBA644E27B"><enum>(1)</enum><text>a
description of the projects for which the grant was, or will be, used;</text>
</paragraph><paragraph id="H76148D2C855F4630B11C99895313CA89"><enum>(2)</enum><text>a
description of the amount and nature of the assistance provided to each
community college under this section; and</text>
</paragraph><paragraph id="HC65E32B1428E4563B09BEED775412188"><enum>(3)</enum><text>the number of jobs
created by the projects funded under this section.</text>
</paragraph></subsection><subsection id="H901D3AA1088A4F92843ADA5266552896"><enum>(g)</enum><header>Report by the
secretary</header><text>The Secretary shall submit to the authorizing
committees (as defined in section 103 of the Higher Education Act of 1965; 20
U.S.C. 1003) an annual report on the grants made under this section, including
the information described in subsection (f).</text>
</subsection><subsection id="H8631CE292A7842B181158EB080D4ABFE"><enum>(h)</enum><header>Availability of
funds</header>
<paragraph id="H4EB99D9163604587B8943C5E72309669"><enum>(1)</enum><text>There are
authorized to be appropriated, and there are appropriated, to carry out this
section (in addition to any other amounts appropriated to carry out this
section and out of any money in the Treasury not otherwise appropriated),
$5,000,000,000 for fiscal year 2014.</text>
</paragraph><paragraph id="H073E349CEDCC44B69A2E9A8BACD7C252"><enum>(2)</enum><text>Funds appropriated
under this subsection shall be available for obligation by community colleges
only during the period that ends 36 months after the date of enactment of this
Act.</text>
</paragraph></subsection></section></part><part id="H8334F3C546304FE595E209BAAF395FAA"><enum>III</enum><header>Definitions</header>
<section id="HF9C623EB5E104E6191772964E89B50CB"><enum>230.</enum><header>Definitions</header>
<subsection id="HA2ACCF43633D4D68A7FC40CCEC9B144D"><enum>(a)</enum><header>ESEA
terms</header><text>Except as otherwise provided, in this subtitle, the terms
<quote>local educational agency</quote>, <quote>Secretary</quote>, and
<quote>State educational agency</quote> have the meanings given those terms in
section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).</text>
</subsection><subsection id="HAF4950767DE94180B48038DE40711F12"><enum>(b)</enum><header>Additional
definitions</header><text>The following definitions apply to this title:</text>
<paragraph id="H460217663BF64CCB9D900225A827D8EA"><enum>(1)</enum><header>Community
college</header><text>The term <quote>community college</quote> means—</text>
<subparagraph id="HE8DB85E2B85443FEA4127B8377067458"><enum>(A)</enum><text>a junior or
community college, as that term is defined in section 312(f) of the Higher
Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1058">20 U.S.C. 1058(f)</external-xref>); or</text>
</subparagraph><subparagraph id="HE634AD2451C746CBA85E9E0599018248"><enum>(B)</enum><text>an institution of
higher education (as defined in section 101 of the Higher Education Act of 1965
(<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001</external-xref>)) that awards a significant number of degrees and certificates,
as determined by the Secretary, that are not—</text>
<clause id="HF7C130E15E1043A9BF55086F3542FC0B"><enum>(i)</enum><text>bachelor’s degrees
(or an equivalent); or</text>
</clause><clause id="H41EE286D1E2C4CB3BBEF7AD92737E264"><enum>(ii)</enum><text>master’s,
professional, or other advanced degrees.</text>
</clause></subparagraph></paragraph><paragraph id="H74972910022240BA9B9B0D3339A3D851"><enum>(2)</enum><header>CHPS
criteria</header><text>The term <quote>CHPS Criteria</quote> means the green
building rating program developed by the Collaborative for High Performance
Schools.</text>
</paragraph><paragraph id="HC59CFD4739E343C89AEDEA6663973C4F"><enum>(3)</enum><header>Energy
star</header><text>The term <quote>Energy Star</quote> means the Energy Star
program of the United States Department of Energy and the United States
Environmental Protection Agency.</text>
</paragraph><paragraph id="H5041FF1754A945E0ACE2E8CC0F9C93AD"><enum>(4)</enum><header>Green
globes</header><text>The term <quote>Green Globes</quote> means the Green
Building Initiative environmental design and rating system referred to as Green
Globes.</text>
</paragraph><paragraph id="H949A227E6DC742CABF7AA2C63DC214E4"><enum>(5)</enum><header>Leed green
building rating system</header><text>The term <quote>LEED Green Building Rating
System</quote> means the United States Green Building Council Leadership in
Energy and Environmental Design green building rating standard referred to as
the LEED Green Building Rating System.</text>
</paragraph><paragraph id="H416AA532295246B9AA12EF392FFCBAD5"><enum>(6)</enum><header>Modernization,
renovation, and repair</header><text>The term <quote>modernization, renovation,
and repair</quote> means—</text>
<subparagraph id="H674BE6498F4F47DB9D942B163342A34B"><enum>(A)</enum><text>comprehensive
assessments of facilities, including indoor air-quality assessments, to
identify—</text>
<clause id="H4C7C8837E8144E819889A05DDC6FCC1E"><enum>(i)</enum><text>facility
conditions or deficiencies that could adversely affect student and staff
health, safety, performance, or productivity or energy, water, or materials
efficiency; and</text>
</clause><clause id="HC150597F59D94365B1E15E11E13770F3"><enum>(ii)</enum><text>needed facility
improvements;</text>
</clause></subparagraph><subparagraph id="H6877B60158D14425B61E561768D5AADD"><enum>(B)</enum><text>repairing,
replacing, or installing roofs (which may be extensive, intensive, or
semi-intensive <quote>green</quote> roofs); electrical wiring; water supply and
plumbing systems, sewage systems, storm water runoff systems, lighting systems
(or components of such systems); or building envelope, windows, ceilings,
flooring, or doors, including security doors;</text>
</subparagraph><subparagraph id="HDA81D50FECC744A894C4404933E2D020"><enum>(C)</enum><text>repairing,
replacing, or installing heating, ventilation, or air conditioning systems, or
components of those systems (including insulation) to improve energy
efficiency;</text>
</subparagraph><subparagraph id="H404657270CF94771A4988932AA094022"><enum>(D)</enum><text>compliance with
fire, health, seismic, and safety codes, including professional installation of
fire and life safety alarms, and modernizations, renovations, and repairs that
ensure that facilities are prepared for such emergencies as acts of terrorism,
campus violence, and natural disasters, such as improving building
infrastructure to accommodate security measures and installing or upgrading
technology to ensure that a school or incident is able to respond to such
emergencies;</text>
</subparagraph><subparagraph id="H18038B41AD554569837D71B46AD2EC96"><enum>(E)</enum><text>making
modifications necessary to make educational facilities accessible in compliance
with the Americans with Disabilities Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/12101">42 U.S.C. 12101 et seq.</external-xref>) and
section 504 of the Rehabilitation Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/29/794">29 U.S.C. 794</external-xref>), except that such
modifications shall not be the primary use of a grant or subgrant;</text>
</subparagraph><subparagraph id="HCAD688607F95484CB3B82777BD70D74A"><enum>(F)</enum><text>abatement,
removal, or interim controls of asbestos, polychlorinated biphenyls, mold,
mildew, or lead-based hazards, including lead-based paint hazards;</text>
</subparagraph><subparagraph id="HF62D8168BD1F4725A5D99943FBBF4A93"><enum>(G)</enum><text>retrofitting
necessary to increase energy efficiency;</text>
</subparagraph><subparagraph id="H433B0BB6A3D24864BF02AE4B7CE69160"><enum>(H)</enum><text>measures, such as
selection and substitution of products and materials, and implementation of
improved maintenance and operational procedures, such as <quote>green
cleaning</quote> programs, to reduce or eliminate potential student or staff
exposure to—</text>
<clause id="HDF6FDC9D1B434FA59305D475D911B847"><enum>(i)</enum><text>volatile organic
compounds;</text>
</clause><clause id="H2585B4A3B5FF4C29A22BAF6151BE0CA5"><enum>(ii)</enum><text>particles such as
dust and pollens; or</text>
</clause><clause id="HF50D9442958E47E6B050EC93A9069445"><enum>(iii)</enum><text>combustion
gases;</text>
</clause></subparagraph><subparagraph id="HD717465EBBF1486CA5798A2A5476DECF"><enum>(I)</enum><text>modernization,
renovation, or repair necessary to reduce the consumption of coal, electricity,
land, natural gas, oil, or water;</text>
</subparagraph><subparagraph id="H68B400C572E347008A1A9F16F8FD3AB8"><enum>(J)</enum><text>installation or
upgrading of educational technology infrastructure;</text>
</subparagraph><subparagraph id="HC58E909B94DF469280E9BF8C9396866C"><enum>(K)</enum><text>installation or
upgrading of renewable energy generation and heating systems, including solar,
photovoltaic, wind, biomass (including wood pellet and woody biomass),
waste-to-energy, solar-thermal, and geothermal systems, and energy
audits;</text>
</subparagraph><subparagraph id="H79563F89D19D49A682C194C374116234"><enum>(L)</enum><text>modernization,
renovation, or repair activities related to energy efficiency and renewable
energy, and improvements to building infrastructures to accommodate bicycle and
pedestrian access;</text>
</subparagraph><subparagraph id="H7F56BF7890E44A7587F0D78586434334"><enum>(M)</enum><text>ground
improvements, storm water management, landscaping, and environmental clean-up
when necessary;</text>
</subparagraph><subparagraph id="HB669936434BD41B8A6E92434626C3925"><enum>(N)</enum><text>other
modernization, renovation, or repair to—</text>
<clause id="H1B5FC4046321469898D1BD400C903639"><enum>(i)</enum><text>improve teachers’
ability to teach and students’ ability to learn;</text>
</clause><clause id="H3386797C432C4E5CB9B313D311468405"><enum>(ii)</enum><text>ensure the health
and safety of students and staff; or</text>
</clause><clause id="H0AAEB70252A2410387DBFF99B76FBB40"><enum>(iii)</enum><text>improve
classroom, laboratory, and vocational facilities in order to enhance the
quality of science, technology, engineering, and mathematics instruction;
and</text>
</clause></subparagraph><subparagraph id="H6FC559B9F2A94878BDEA6E7D4E59ADAC"><enum>(O)</enum><text>required
environmental remediation related to facilities modernization, renovation, or
repair activities described in subparagraphs (A) through (N).</text>
</subparagraph></paragraph><paragraph id="HCC823696CBC740B380B7F28B1BF2CE75"><enum>(7)</enum><header>Outlying
area</header><text>The term <quote>outlying area</quote> means the U.S. Virgin
Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana
Islands, and the Republic of Palau.</text>
</paragraph><paragraph id="HDA1436446F5741CF9A6A48024926D211"><enum>(8)</enum><header>State</header><text>The
term <quote>State</quote> means each of the 50 States of the United States, the
Commonwealth of Puerto Rico, and the District of Columbia.</text>
</paragraph></subsection></section></part></subtitle><subtitle id="H1D7B70FB97FC4514A1C9C39BEC05C371"><enum>D</enum><header>Immediate
transportation infrastructure investments</header>
<section id="HC3F7376D3869409A8CC3F23D30324E80"><enum>241.</enum><header>Immediate
transportation infrastructure investments</header>
<subsection id="H1DC22479582846C5B48E102E327DC22A"><enum>(a)</enum><header>Grants-In-Aid
for airports</header>
<paragraph id="HB14EFEC31D354BB9A1216C5F4AA3C46C"><enum>(1)</enum><header>In
general</header><text>There is made available to the Secretary of
Transportation $2,000,000,000 to carry out airport improvement under subchapter
I of chapter 471 and subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/475">chapter 475</external-xref> of title 49, United States
Code.</text>
</paragraph><paragraph id="H84B6DD2F7EA247D2847E5A853AA88D6F"><enum>(2)</enum><header>Federal share;
limitation on obligations</header><text>The Federal share payable of the costs
for which a grant is made under this subsection, shall be 100 percent. The
amount made available under this subsection shall not be subject to any
limitation on obligations for the Grants-In-Aid for Airports program set forth
in any Act or in title 49, United States Code.</text>
</paragraph><paragraph id="H303553B2612E4E16899D0742DB794229"><enum>(3)</enum><header>Distribution of
funds</header><text>Funds provided to the Secretary under this subsection shall
not be subject to apportionment formulas, special apportionment categories, or
minimum percentages under chapter 471 of such title.</text>
</paragraph><paragraph id="H9893A5CD8F074E69A006DE4BBB61CDDB"><enum>(4)</enum><header>Availability</header><text>The
amounts made available under this subsection shall be available for obligation
until the date that is two years after the date of the enactment of this Act.
The Secretary shall obligate amounts totaling not less than 50 percent of the
funds made available within one year of enactment and obligate remaining
amounts not later than two years after enactment.</text>
</paragraph><paragraph id="HB00E83919AC5465FB8BE6957BB5CF6E3"><enum>(5)</enum><header>Administrative
expenses</header><text>Of the funds made available under this subsection, 0.3
percent shall be available to the Secretary for administrative expenses, shall
remain available for obligation until September 30, 2015, and may be used in
conjunction with funds otherwise provided for the administration of the
Grants-In-Aid for Airports program.</text>
</paragraph></subsection><subsection id="H11DF36589879474CB95C2B1D05292BBE"><enum>(b)</enum><header>Next generation
air traffic control advancements</header>
<paragraph id="HAD1279ECDCDE4A8D8A1B11A2D3ABE052"><enum>(1)</enum><header>In
general</header><text>There is made available to the Secretary of
Transportation $1,000,000,000 for necessary Federal Aviation Administration
capital, research, and operating costs to carry out Next Generation air traffic
control system advancements.</text>
</paragraph><paragraph id="H1AE923E19CB34D09A5893E23EC434168"><enum>(2)</enum><header>Availability</header><text>The
amounts made available under this subsection shall be available for obligation
until the date that is two years after the date of the enactment of this
Act.</text>
</paragraph></subsection><subsection id="HB5E00EA7F5AB4EB49958F73CD57D272C"><enum>(c)</enum><header>Highway
infrastructure investment</header>
<paragraph id="H91C8F60EAA0D411792A4F395D8678BC5"><enum>(1)</enum><header>In
general</header><text>There is made available to the Secretary of
Transportation $27,000,000,000 for restoration, repair, construction and other
activities eligible under <external-xref legal-doc="usc" parsable-cite="usc/23/133">section 133(b)</external-xref> of title 23, United States Code, and
for passenger and freight rail transportation and port infrastructure projects
eligible for assistance under <external-xref legal-doc="usc" parsable-cite="usc/23/601">section 601(a)(8)</external-xref> of title 23.</text>
</paragraph><paragraph id="HDE73FE60A7974F4694C765B1744CC403"><enum>(2)</enum><header>Federal share;
limitation on obligations</header><text>The Federal share payable on account of
any project or activity carried out with funds made available under this
subsection shall be, at the option of the recipient, up to 100 percent of the
total cost thereof. The amount made available under this subsection shall not
be subject to any limitation on obligations for Federal-aid highways and
highway safety construction programs set forth in any Act or in title 23,
United States Code.</text>
</paragraph><paragraph id="H931E24BA05854CFBBD1164E1D36C68B3"><enum>(3)</enum><header>Availability</header><text>The
amounts made available under this subsection shall be available for obligation
until the date that is two years after the date of the enactment of this Act.
The Secretary shall obligate amounts totaling not less than 50 percent of the
funds made available within one year of enactment and obligate remaining
amounts not later than two years after enactment.</text>
</paragraph><paragraph id="H07BC4D6F758647A8A42DB59FA6A2146A"><enum>(4)</enum><header>Distribution of
funds</header><text>Of the funds provided in this subsection, after making the
set-asides required by paragraphs (9), (10), (11), (12), and (15), 50 percent
of the funds shall be apportioned to States using the formula set forth in
<external-xref legal-doc="usc" parsable-cite="usc/23/104">section 104(b)(3)</external-xref> of title 23, United States Code, and the remaining funds
shall be apportioned to States in the same ratio as the obligation limitation
for fiscal year 2010 was distributed among the States in accordance with the
formula specified in section 120(a)(6) of division A of Public Law
111–117.</text>
</paragraph><paragraph id="H92D5C67E94D54959AE872B1312CD2FB7"><enum>(5)</enum><header>Apportionment</header><text>Apportionments
under paragraph (4) shall be made not later than 30 days after the date of the
enactment of this Act.</text>
</paragraph><paragraph id="H7603CD255CAB45CA9D0728777C619AE0"><enum>(6)</enum><header>Redistribution</header>
<subparagraph id="H1579A82E96424C00BE21A01E35B68FA0"><enum>(A)</enum><text>The Secretary
shall, 180 days following the date of apportionment, withdraw from each State
an amount equal to 50 percent of the funds apportioned under paragraph (4) to
that State (excluding funds suballocated within the State) less the amount of
funding obligated (excluding funds suballocated within the State), and the
Secretary shall redistribute such amounts to other States that have had no
funds withdrawn under this subparagraph in the manner described in section
120(c) of division A of <external-xref legal-doc="public-law" parsable-cite="pl/111/117">Public Law 111–117</external-xref>.</text>
</subparagraph><subparagraph id="H2376BB3731D24FCDBFD029BC5DF2DE40"><enum>(B)</enum><text>One year following
the date of apportionment, the Secretary shall withdraw from each recipient of
funds apportioned under paragraph (4) any unobligated funds, and the Secretary
shall redistribute such amounts to States that have had no funds withdrawn
under this paragraph (excluding funds suballocated within the State) in the
manner described in section 120(c) of division A of <external-xref legal-doc="public-law" parsable-cite="pl/111/117">Public Law 111–117</external-xref>.</text>
</subparagraph><subparagraph id="H335F5802F81944D4A3D83BE38ED4E326"><enum>(C)</enum><text>At the request of
a State, the Secretary may provide an extension of the one-year period only to
the extent that the Secretary determines that the State has encountered extreme
conditions that create an unworkable bidding environment or other extenuating
circumstances. Before granting an extension, the Secretary notify in writing
the Committee on Transportation and Infrastructure and the Committee on
Environment and Public Works, providing a thorough justification for the
extension.</text>
</subparagraph></paragraph><paragraph id="H1F4AD0A170D941E68032EF4BF6D4BC01"><enum>(7)</enum><header>Transportation
enhancements</header><text>Three percent of the funds apportioned to a State
under paragraph (4) shall be set aside for the purposes described in section
133(d)(2) of title 23, United States Code (without regard to the comparison to
fiscal year 2005).</text>
</paragraph><paragraph id="H152A2EEFD1EC42ECB63F9B9D9E2F4ECA"><enum>(8)</enum><header>Suballocation</header><text>Thirty
percent of the funds apportioned to a State under this subsection shall be
suballocated within the State in the manner and for the purposes described in
the first sentence of sections 133(d)(3)(A), 133(d)(3)(B), and 133(d)(3)(D) of
title 23, United States Code. Such suballocation shall be conducted in every
State. Funds suballocated within a State to urbanized areas and other areas
shall not be subject to the redistribution of amounts required 180 days
following the date of apportionment of funds provided by paragraph
(6)(A).</text>
</paragraph><paragraph id="H12783AB104B84FD2A1AD658A88C6B5B7"><enum>(9)</enum><header>Puerto Rico and
territorial highway programs</header><text>Of the funds provided under this
subsection, $105,000,000 shall be set aside for the Puerto Rico highway program
authorized under <external-xref legal-doc="usc" parsable-cite="usc/23/165">section 165</external-xref> of title 23, United States Code, and $45,000,000
shall be for the territorial highway program authorized under section 215 of
title 23, United States Code.</text>
</paragraph><paragraph id="HB6F903C65069428CA22B180F02D466F9"><enum>(10)</enum><header>Federal lands
and Indian reservations</header><text>Of the funds provided under this
subsection, $550,000,000 shall be set aside for investments in transportation
at Indian reservations and Federal lands in accordance with the
following:.</text>
<subparagraph id="HE4DD9E203AD24F5C9544F81E794656B5"><enum>(A)</enum><text>Of the funds set
aside by this paragraph, $310,000,000 shall be for the Indian Reservation Roads
program, $170,000,000 shall be for the Park Roads and Parkways program,
$60,000,000 shall be for the Forest Highway Program, and $10,000,000 shall be
for the Refuge Roads program.</text>
</subparagraph><subparagraph id="HBA70F999130748CABE1AE60F9963BBBE"><enum>(B)</enum><text>For investments at
Indian reservations and Federal lands, priority shall be given to capital
investments, and to projects and activities that can be completed within 2
years of enactment of this Act.</text>
</subparagraph><subparagraph id="H3861198E802A4640AACD3B6711B60D67"><enum>(C)</enum><text>One year following
the enactment of this Act, to ensure the prompt use of the funding provided for
investments at Indian reservations and Federal lands, the Secretary shall have
the authority to redistribute unobligated funds within the respective program
for which the funds were appropriated.</text>
</subparagraph><subparagraph id="H7FDF13C5C94E408C83F37DC1504ECCF8"><enum>(D)</enum><text>Up to four percent
of the funding provided for Indian Reservation Roads may be used by the
Secretary of the Interior for program management and oversight and
project-related administrative expenses.</text>
</subparagraph><subparagraph id="HC19FF4CEB9CF4337A9A92C8725A448E2"><enum>(E)</enum><text>Section
134(f)(3)(C)(ii)(II) of title 23, United States Code, shall not apply to funds
set aside by this paragraph.</text>
</subparagraph></paragraph><paragraph id="HCC00676232F24D419BF66BA2871FD86B"><enum>(11)</enum><header>Job
training</header><text>Of the funds provided under this subsection, $50,000,000
shall be set aside for the development and administration of transportation
training programs under section 140(b) title 23, United States Code.</text>
<subparagraph id="HC0706A11C7794D11B3C0E3796350E950"><enum>(A)</enum><text>Funds set aside
under this subsection shall be competitively awarded and used for the purpose
of providing training, apprenticeship (including Registered Apprenticeship),
skill development, and skill improvement programs, as well as summer
transportation institutes and may be transferred to, or administered in
partnership with, the Secretary of Labor and shall demonstrate to the Secretary
of Transportation program outcomes, including—</text>
<clause id="HC06B0BAF558948D085A080485340D7FE"><enum>(i)</enum><text>impact on areas
with transportation workforce shortages;</text>
</clause><clause id="H6795BF9180AB47A2A4909B9F9E93BE2A"><enum>(ii)</enum><text>diversity of
training participants;</text>
</clause><clause id="HE0702E8979834966ADF440C84F02F7AB"><enum>(iii)</enum><text>number of
participants obtaining certifications or credentials required for specific
types of employment;</text>
</clause><clause id="H292E9A31DCD14078B8145002DFE2A519"><enum>(iv)</enum><text>employment
outcome metrics, such as job placement and job retention rates, established in
consultation with the Secretary of Labor and consistent with metrics used by
programs under the Workforce Investment Act;</text>
</clause><clause id="HF63CA65DDE4A422A82400A7326777527"><enum>(v)</enum><text>to
the extent practical, evidence that the program did not preclude workers that
participate in training or apprenticeship activities under the program from
being referred to, or hired on, projects funded under this chapter; and</text>
</clause><clause id="HFB691F6E59EB461E9F4D7C48A1EB6960"><enum>(vi)</enum><text>identification of
areas of collaboration with the Department of Labor programs, including
co-enrollment.</text>
</clause></subparagraph><subparagraph id="HAE1D1F18AC474709BF43F710BB271BF5"><enum>(B)</enum><text>To be eligible to
receive a competitively awarded grant under this subsection, a State must
certify that at least 0.1 percent of the amounts apportioned under the Surface
Transportation Program and Bridge Program will be obligated in the first fiscal
year after enactment of this act for job training activities consistent with
<external-xref legal-doc="usc" parsable-cite="usc/23/140">section 140(b)</external-xref> of title 23, United States Code.</text>
</subparagraph></paragraph><paragraph id="HECD6A47781404E30825C77F89DAFA668"><enum>(12)</enum><header>Disadvantaged
business enterprises</header><text>Of the funds provided under this subsection,
$10,000,000 shall be set aside for training programs and assistance programs
under <external-xref legal-doc="usc" parsable-cite="usc/23/140">section 140(c)</external-xref> of title 23, United States Code. Funds set aside under
this paragraph should be allocated to businesses that have proven success in
adding staff while effectively completing projects.</text>
</paragraph><paragraph id="HBCD518D3986E4E928723D3D7325C389E"><enum>(13)</enum><header>State planning
and oversight expenses</header><text>Of amounts apportioned under paragraph (4)
of this subsection, a State may use up to 0.5 percent for activities related to
projects funded under this subsection, including activities eligible under
sections <external-xref legal-doc="usc" parsable-cite="usc/23/134">134</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/23/135">135</external-xref> of title 23, United States Code, State administration of
subgrants, and State oversight of subrecipients.</text>
</paragraph><paragraph id="HB5B4E3FB712244569ED4AF987DB79DA0"><enum>(14)</enum><header>Conditions</header>
<subparagraph id="H30D68497D20343FFB2B07FF879C739BB"><enum>(A)</enum><text>Funds made
available under this subsection shall be administered as if apportioned under
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/23/1">chapter 1</external-xref> of title 23, United States Code, except for funds made available for
investments in transportation at Indian reservations and Federal lands, and for
the territorial highway program, which shall be administered in accordance with
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/23/2">chapter 2</external-xref> of title 23, United States Code, and except for funds made available
for disadvantaged business enterprises bonding assistance, which shall be
administered in accordance with <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/3">chapter 3</external-xref> of title 49, United States
Code.</text>
</subparagraph><subparagraph id="H5404EB0F2C0742A8894591B8C2F4733B"><enum>(B)</enum><text>Funds made
available under this subsection shall not be obligated for the purposes
authorized under <external-xref legal-doc="usc" parsable-cite="usc/23/115">section 115(b)</external-xref> of title 23, United States Code.</text>
</subparagraph><subparagraph id="H72C2CE2EFBF54CFF959F97E8198B4358"><enum>(C)</enum><text>Funding provided
under this subsection shall be in addition to any and all funds provided for
fiscal years 2011 and 2012 in any other Act for <quote>Federal-aid
Highways</quote> and shall not affect the distribution of funds provided for
<quote>Federal-aid Highways</quote> in any other Act.</text>
</subparagraph><subparagraph id="H48E1C4320BA84546A045B4EBD0AC7886"><enum>(D)</enum><text>Section 1101(b) of
<external-xref legal-doc="public-law" parsable-cite="pl/109/59">Public Law 109–59</external-xref> shall apply to funds apportioned under this
subsection.</text>
</subparagraph></paragraph><paragraph id="H9495E28BDF55407B8F13E8F85A27154D"><enum>(15)</enum><header>Oversight</header><text>The
Administrator of the Federal Highway Administration may set aside up to 0.15
percent of the funds provided under this subsection to fund the oversight by
the Administrator of projects and activities carried out with funds made
available to the Federal Highway Administration in this Act, and such funds
shall be available through September 30, 2015.</text>
</paragraph></subsection><subsection id="HDDD9D7BB1A054962A0AC60D97D6A0375"><enum>(d)</enum><header>Capital
assistance for high-Speed rail corridors and intercity passenger rail
service</header>
<paragraph id="H8FEA3EF6C2A44DF5863024C868470CE6"><enum>(1)</enum><header>In
general</header><text>There is made available to the Secretary of
Transportation $4,000,000,000 for grants for high-speed rail projects as
authorized under sections <external-xref legal-doc="usc" parsable-cite="usc/49/26104">26104</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/49/26106">26106</external-xref> of title 49, United States Code,
capital investment grants to support intercity passenger rail service as
authorized under <external-xref legal-doc="usc" parsable-cite="usc/49/24406">section 24406</external-xref> of title 49, United States Code, and congestion
grants as authorized under <external-xref legal-doc="usc" parsable-cite="usc/49/24105">section 24105</external-xref> of title 49, United States Code, and
to enter into cooperative agreements for these purposes as authorized, except
that the Administrator of the Federal Railroad Administration may retain up to
one percent of the funds provided under this heading to fund the award and
oversight by the Administrator of grants made under this subsection, which
retained amount shall remain available for obligation until September 30,
2015.</text>
</paragraph><paragraph id="HD86DB1204C8C47D887A7D25075B0C02D"><enum>(2)</enum><header>Availability</header><text>The
amounts made available under this subsection shall be available for obligation
until the date that is two years after the date of the enactment of this Act.
The Secretary shall obligate amounts totaling not less than 50 percent of the
funds made available within one year of enactment and obligate remaining
amounts not later than two years after enactment.</text>
</paragraph><paragraph id="HD115E5BFADA64DBAB8AE9BB28BB91D21"><enum>(3)</enum><header>Federal
share</header><text>The Federal share payable of the costs for which a grant or
cooperative agreements is made under this subsection shall be, at the option of
the recipient, up to 100 percent.</text>
</paragraph><paragraph id="HE91460C30B474CE79AC6F7D2CA76EA7D"><enum>(4)</enum><header>Interim
guidance</header><text>The Secretary shall issue interim guidance to applicants
covering application procedures and administer the grants provided under this
subsection pursuant to that guidance until final regulations are issued.</text>
</paragraph><paragraph id="HBD473901D4B0448CB202204035A2DE0A"><enum>(5)</enum><header>Intercity
passenger rail corridors</header><text>Not less than 85 percent of the funds
provided under this subsection shall be for cooperative agreements that lead to
the development of entire segments or phases of intercity or high-speed rail
corridors.</text>
</paragraph><paragraph id="HF5C73F6118204D36B88FAEB59DCE291B"><enum>(6)</enum><header>Conditions</header>
<subparagraph id="HE60455D49C1347D2BDCBCD40B54CF65A"><enum>(A)</enum><text>In addition to the
provisions of title 49, United States Code, that apply to each of the
individual programs funded under this subsection, subsections 24402(a)(2),
24402(i), and 24403(a) and (c) of title 49, United States Code, shall also
apply to the provision of funds provided under this subsection.</text>
</subparagraph><subparagraph id="HC2149762542A41CD9CA52C68F2A94B1E"><enum>(B)</enum><text>A project need not
be in a State rail plan developed under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/227">Chapter 227</external-xref> of title 49, United States
Code, to be eligible for assistance under this subsection.</text>
</subparagraph><subparagraph id="H11C830998B3D45319CA2C33CE9D5C36F"><enum>(C)</enum><text>Recipients of
grants under this paragraph shall conduct all procurement transactions using
such grant funds in a manner that provides full and open competition, as
determined by the Secretary, in compliance with existing labor
agreements.</text>
</subparagraph></paragraph></subsection><subsection id="HD3E70AD7D0AF47CCB65695E8DA9A4231"><enum>(e)</enum><header>Capital grants
to the national railroad passenger corporation</header>
<paragraph id="H82A77B886693452BABC2C501E00C6425"><enum>(1)</enum><header>In
general</header><text>There is made available $2,000,000,000 to enable the
Secretary of Transportation to make capital grants to the National Railroad
Passenger Corporation (Amtrak), as authorized by section 101(c) of the
Passenger Rail Investment and Improvement Act of 2008 (Public Law
110–432).</text>
</paragraph><paragraph id="HD3348BE4D85A45CFB4A6137CAF939DDF"><enum>(2)</enum><header>Availability</header><text>The
amounts made available under this subsection shall be available for obligation
until the date that is two years after the date of the enactment of this Act.
The Secretary shall obligate amounts totaling not less than 50 percent of the
funds made available within one year of enactment and obligate remaining
amounts not later than two years after enactment.</text>
</paragraph><paragraph id="H649482B1F8574EB191EB95C2A1A59D21"><enum>(3)</enum><header>Project
priority</header><text>The priority for the use of funds shall be given to
projects for the repair, rehabilitation, or upgrade of railroad assets or
infrastructure, and for capital projects that expand passenger rail capacity
including the rehabilitation of rolling stock.</text>
</paragraph><paragraph id="H1B44981744C04D00BACD9B4CAE5B31A8"><enum>(4)</enum><header>Conditions</header>
<subparagraph id="H602E11F83D9E4D17B32982BEE7BDBD87"><enum>(A)</enum><text>None of the funds
under this subsection shall be used to subsidize the operating losses of
Amtrak.</text>
</subparagraph><subparagraph id="HE0A9D28B0F2A4B0F96067F340A01F4FD"><enum>(B)</enum><text>The funds provided
under this subsection shall be awarded not later than 90 days after the date of
enactment of this Act.</text>
</subparagraph><subparagraph id="H5335FCBEBCDD410B85A5F29D54AD767A"><enum>(C)</enum><text>The Secretary
shall take measures to ensure that projects funded under this subsection shall
be completed within 2 years of enactment of this Act, and shall serve to
supplement and not supplant planned expenditures for such activities from other
Federal, State, local and corporate sources. The Secretary shall certify to the
House and Senate Committees on Appropriations in writing compliance with the
preceding sentence.</text>
</subparagraph></paragraph><paragraph id="HB04CCACC0E774F6DBDDFBA3C85B912AB"><enum>(5)</enum><header>Oversight</header><text>The
Administrator of the Federal Railroad Administration may set aside 0.5 percent
of the funds provided under this subsection to fund the oversight by the
Administrator of projects and activities carried out with funds made available
in this subsection, and such funds shall be available through September 30,
2015.</text>
</paragraph></subsection><subsection id="H2346ACB558714510A0780D38BB4618DD"><enum>(f)</enum><header>Transit capital
assistance</header>
<paragraph id="H7A79845750E34DE8AE93BF7795B8183E"><enum>(1)</enum><header>In
general</header><text>There is made available to the Secretary of
Transportation $3,000,000,000 for grants for transit capital assistance grants
as defined by <external-xref legal-doc="usc" parsable-cite="usc/49/5302">section 5302(a)(1)</external-xref> of title 49, United States Code.
Notwithstanding any provision of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/53">chapter 53</external-xref> of title 49, however, a recipient
of funding under this subsection may use up to 10 percent of the amount
provided for the operating costs of equipment and facilities for use in public
transportation or for other eligible activities.</text>
</paragraph><paragraph id="HD0E6DAAB89FB4ECBBFD07D4B5413B43E"><enum>(2)</enum><header>Federal share;
limitation on obligations</header><text display-inline="yes-display-inline">The
applicable requirements of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/53">chapter 53</external-xref> of title 49, United States Code, shall
apply to funding provided under this subsection, except that the Federal share
of the costs for which any grant is made under this subsection shall be, at the
option of the recipient, up to 100 percent. The amount made available under
this subsection shall not be subject to any limitation on obligations for
transit programs set forth in any Act or <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/53">chapter 53</external-xref> of title 49.</text>
</paragraph><paragraph id="H5DDCC40B323A4AEDB930DDDD10B89BE9"><enum>(3)</enum><header>Availability</header><text>The
amounts made available under this subsection shall be available for obligation
until the date that is two years after the date of the enactment of this Act.
The Secretary shall obligate amounts totaling not less than 50 percent of the
funds made available within one year of enactment and obligate remaining
amounts not later than two years after enactment.</text>
</paragraph><paragraph id="H75771CBF3B4F46C99D2E37B3B71952AB"><enum>(4)</enum><header>Distribution of
funds</header><text>The Secretary of Transportation shall—</text>
<subparagraph id="H26E807FF76BE401FBA1C6F640F56D1EB"><enum>(A)</enum><text>provide 80 percent
of the funds appropriated under this subsection for grants under section 5307
of title 49, United States Code, and apportion such funds in accordance with
section 5336 of such title;</text>
</subparagraph><subparagraph id="HCD4072510189411D86C60BA89FE00BBF"><enum>(B)</enum><text>provide 10 percent
of the funds appropriated under this subsection in accordance with section 5340
of such title; and</text>
</subparagraph><subparagraph id="H986C6BC7ED9241CEB650C7A87A2BB960"><enum>(C)</enum><text>provide 10 percent
of the funds appropriated under this subsection for grants under section 5311
of title 49, United States Code, and apportion such funds in accordance with
such section.</text>
</subparagraph></paragraph><paragraph id="H2594BCA95CBA4B398D7A84CFE6933600"><enum>(5)</enum><header>Apportionment</header><text>The
funds apportioned under this subsection shall be apportioned not later than 21
days after the date of the enactment of this Act.</text>
</paragraph><paragraph id="HE174BB905FF04AC9AC55E1E78062B403"><enum>(6)</enum><header>Redistribution</header>
<subparagraph id="H77C816EF04EC4AF29190FADA04DF72B9"><enum>(A)</enum><text>The Secretary
shall, 180 days following the date of apportionment, withdraw from each
urbanized area or State an amount equal to 50 percent of the funds apportioned
to such urbanized areas or States less the amount of funding obligated, and the
Secretary shall redistribute such amounts to other urbanized areas or States
that have had no funds withdrawn under this proviso utilizing whatever method
he deems appropriate to ensure that all funds redistributed under this proviso
shall be utilized promptly.</text>
</subparagraph><subparagraph id="H00F600B6BEA04FA098893DA9BD34D7EB"><enum>(B)</enum><text>One year following
the date of apportionment, the Secretary shall withdraw from each urbanized
area or State any unobligated funds, and the Secretary shall redistribute such
amounts to other urbanized areas or States that have had no funds withdrawn
under this proviso utilizing whatever method the Secretary deems appropriate to
ensure that all funds redistributed under this proviso shall be utilized
promptly.</text>
</subparagraph><subparagraph id="H40369A289B4242F79DC23C84F6EFD440"><enum>(C)</enum><text>At the request of
an urbanized area or State, the Secretary of Transportation may provide an
extension of such 1-year period if the Secretary determines that the urbanized
area or State has encountered an unworkable bidding environment or other
extenuating circumstances. Before granting an extension, the Secretary shall
notify in writing the Committee on Transportation and Infrastructure and the
Committee on Banking, Housing and Urban Affairs, providing a thorough
justification for the extension.</text>
</subparagraph></paragraph><paragraph id="H66077741087E4164BCE9FF7997189B06"><enum>(7)</enum><header>Conditions</header>
<subparagraph id="H46DFFEE5876942A98287EA1F19195644"><enum>(A)</enum><text>Of the funds
provided for <external-xref legal-doc="usc" parsable-cite="usc/49/5311">section 5311</external-xref> of title 49, United States Code, 2.5 percent shall be
made available for section 5311(c)(1).</text>
</subparagraph><subparagraph id="HD0661D1A2D2C4F19BF35C37FF3DCDC12"><enum>(B)</enum><text>Section 1101(b) of
<external-xref legal-doc="public-law" parsable-cite="pl/109/59">Public Law 109–59</external-xref> shall apply to funds appropriated under this
subsection.</text>
</subparagraph><subparagraph id="H2C681799CE7743188E20AD87CD9F11D9"><enum>(C)</enum><text>The funds
appropriated under this subsection shall not be comingled with any prior year
funds.</text>
</subparagraph></paragraph><paragraph id="H2C68E4A3522A4347A99D6E646CE4D43C"><enum>(8)</enum><header>Oversight</header><text>Notwithstanding
any other provision of law, 0.3 percent of the funds provided for grants under
section 5307 and section 5340, and 0.3 percent of the funds provided for grants
under section 5311, shall be available for administrative expenses and program
management oversight, and such funds shall be available through September 30,
2015.</text>
</paragraph></subsection><subsection id="HA62478E8D5244D16B0AE3E7DF87857E8"><enum>(g)</enum><header>State of good
repair</header>
<paragraph id="H19AFCE10A230408CB8FE7ACF5B68AD56"><enum>(1)</enum><header>In
general</header><text>There is made available to the Secretary of
Transportation $6,000,000,000 for capital expenditures as authorized by
sections 5309(b)(2) and (3) of title 49, United States Code.</text>
</paragraph><paragraph id="H45EAB9A13A5A40C4813EC0C409B95272"><enum>(2)</enum><header>Federal
share</header><text>The applicable requirements of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/53">chapter 53</external-xref> of title 49,
United States Code, shall apply, except that the Federal share of the costs for
which a grant is made under this subsection shall be, at the option of the
recipient, up to 100 percent.</text>
</paragraph><paragraph id="HBBD598CD76CC44C589C87EC338BAF4B2"><enum>(3)</enum><header>Availability</header><text>The
amounts made available under this subsection shall be available for obligation
until the date that is two years after the date of the enactment of this Act.
The Secretary shall obligate amounts totaling not less than 50 percent of the
funds made available within one year of enactment and obligate remaining
amounts not later than two years after enactment.</text>
</paragraph><paragraph id="HAB958FF99EA34E4BA6AA1805A86BF98C"><enum>(4)</enum><header>Distribution of
funds</header>
<subparagraph id="H085BF5E9A4D54A50911C977C2FFD16C6"><enum>(A)</enum><text>The Secretary of
Transportation shall apportion not less than 75 percent of the funds under this
subsection for the modernization of fixed guideway systems, pursuant to the
formula set forth in section 5336(b) title 49, United States Code, other than
subsection (b)(2)(A)(ii).</text>
</subparagraph><subparagraph id="H34942C06F59D464B87BF1E7811A285D2"><enum>(B)</enum><text>Of the funds
appropriated under this subsection, not less than 25 percent shall be available
for the restoration or replacement of existing public transportation assets
related to bus systems, pursuant to the formula set forth in section 5336 other
than subsection (b).</text>
</subparagraph></paragraph><paragraph id="H980951FB127C45F4AA2313E4C382DC5E"><enum>(5)</enum><header>Apportionment</header><text>The
funds made available under this subsection shall be apportioned not later than
30 days after the date of the enactment of this Act.</text>
</paragraph><paragraph id="H0B11085B90E24BA180EB7EA643B664D9"><enum>(6)</enum><header>Redistribution</header>
<subparagraph id="HFB6D436F8FBF4E9DB02D005F2F1C1DCB"><enum>(A)</enum><text>The Secretary
shall, 180 days following the date of apportionment, withdraw from each
urbanized area an amount equal to 50 percent of the funds apportioned to such
urbanized area less the amount of funding obligated, and the Secretary shall
redistribute such amounts to other urbanized areas that have had no funds
withdrawn under this paragraph utilizing whatever method the Secretary deems
appropriate to ensure that all funds redistributed under this paragraph shall
be utilized promptly.</text>
</subparagraph><subparagraph id="H661A1D1D55F84CD094C629255C3D2AAA"><enum>(B)</enum><text>One year following
the date of apportionment, the Secretary shall withdraw from each urbanized
area any unobligated funds, and the Secretary shall redistribute such amounts
to other urbanized areas that have had no funds withdrawn under this paragraph,
utilizing whatever method the Secretary deems appropriate to ensure that all
funds redistributed under this paragraph shall be utilized promptly.</text>
</subparagraph><subparagraph id="HDF825D01946B488BAEE8D271098AE870"><enum>(C)</enum><text>At the request of
an urbanized area, the Secretary may provide an extension of the 1-year period
if the Secretary finds that the urbanized area has encountered an unworkable
bidding environment or other extenuating circumstances. Before granting an
extension, the Secretary shall notify the Committee on Transportation and
Infrastructure and the Committee on Banking, Housing, and Urban Affairs,
providing a thorough justification for the extension.</text>
</subparagraph></paragraph><paragraph id="HED75E5AE17E649198FB1B8405344E0E9"><enum>(7)</enum><header>Conditions</header>
<subparagraph id="H23C18B356F494EBDB870561AC99B605F"><enum>(A)</enum><text>The provisions of
section 1101(b) of <external-xref legal-doc="public-law" parsable-cite="pl/109/59">Public Law 109–59</external-xref> shall apply to funds made available under
this subsection.</text>
</subparagraph><subparagraph id="H5CD9080E9DF74F46844A5221F98497D4"><enum>(B)</enum><text>The funds
appropriated under this subsection shall not be commingled with any prior year
funds.</text>
</subparagraph></paragraph><paragraph id="HCE64041610854914BD69DCDD7A8E522E"><enum>(8)</enum><header>Oversight</header><text>Notwithstanding
any other provision of law, 0.3 percent of the funds under this subsection
shall be available for administrative expenses and program management oversight
and shall remain available for obligation until September 30, 2015.</text>
</paragraph></subsection><subsection id="H19AA13948937403497547449FC606988"><enum>(h)</enum><header>Transportation
infrastructure grants and financing</header>
<paragraph id="HE517274362FC4C8CB867B88F50A1A38E"><enum>(1)</enum><header>In
general</header><text>There is made available to the Secretary of
Transportation $5,000,000,000 for capital investments in surface transportation
infrastructure. The Secretary shall distribute funds provided under this
subsection as discretionary grants to be awarded to State and local governments
or transit agencies on a competitive basis for projects that will have a
significant impact on the Nation, a metropolitan area, or a region.</text>
</paragraph><paragraph id="H7AEBDA5B624E4876B3D7B70FDE7FE44B"><enum>(2)</enum><header>Federal share;
limitation on obligations</header><text>The Federal share payable of the costs
for which a grant is made under this subsection, shall be 100 percent.</text>
</paragraph><paragraph id="HB0206017AA6341EFAE620D80CCD7302A"><enum>(3)</enum><header>Availability</header><text>The
amounts made available under this subsection shall be available for obligation
until the date that is two years after the date of the enactment of this Act.
The Secretary shall obligate amounts totaling not less than 50 percent of the
funds made available within one year of enactment and obligate remaining
amounts not later than two years after enactment.</text>
</paragraph><paragraph id="HA865219D48AC4C65A7082FF91F0D1B65"><enum>(4)</enum><header>Project
eligibility</header><text>Projects eligible for funding provided under this
subsection include—</text>
<subparagraph id="HEC6626EB500C4AF381A7386EAB17EDAB"><enum>(A)</enum><text>highway or bridge
projects eligible under title 23, United States Code, including interstate
rehabilitation, improvements to the rural collector road system, the
reconstruction of overpasses and interchanges, bridge replacements, seismic
retrofit projects for bridges, and road realignments;</text>
</subparagraph><subparagraph id="H0399235C4C6743469D31B5975FB800DD"><enum>(B)</enum><text>public
transportation projects eligible under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/53">chapter 53</external-xref> of title 49, United States
Code, including investments in projects participating in the New Starts or
Small Starts programs that will expedite the completion of those projects and
their entry into revenue service;</text>
</subparagraph><subparagraph id="HCCFFB3A4BB004151AEB2140F4F647A4F"><enum>(C)</enum><text>passenger and
freight rail transportation projects; and</text>
</subparagraph><subparagraph id="HE5AD625D45EE432098613668F7596B06"><enum>(D)</enum><text>port
infrastructure investments, including projects that connect ports to other
modes of transportation and improve the efficiency of freight movement.</text>
</subparagraph></paragraph><paragraph id="HEAFEEF3AA0ED4CDCA6EFF904342BC62E"><enum>(5)</enum><header>TIFIA
program</header><text display-inline="yes-display-inline">The Secretary may
transfer to the Federal Highway Administration funds made available under this
subsection for the purpose of paying the subsidy and administrative costs of
projects eligible for Federal credit assistance under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/23/6">chapter 6</external-xref> of title 23,
United States Code, if the Secretary finds that such use of the funds would
advance the purposes of this subsection.</text>
</paragraph><paragraph id="H3846A423D5C245C4A1B97ECC80E6E461"><enum>(6)</enum><header>Project
priority</header><text>The Secretary shall give priority to projects that are
expected to be completed within 3 years of the date of the enactment of this
Act.</text>
</paragraph><paragraph id="HEE94DDEF81FC42CFB430C29425EB3233"><enum>(7)</enum><header>Deadline for
issuance of competition criteria</header><text>The Secretary shall publish
criteria on which to base the competition for any grants awarded under this
subsection not later than 90 days after enactment of this Act. The Secretary
shall require applications for funding provided under this subsection to be
submitted not later than 180 days after the publication of the criteria, and
announce all projects selected to be funded from such funds not later than 1
year after the date of the enactment of the Act.</text>
</paragraph><paragraph id="H85BA0C1CA2C2444BB7C0B46264008B56"><enum>(8)</enum><header>Applicability of
title 40</header><text>Each project conducted using funds provided under this
subsection shall comply with the requirements of subchapter IV of chapter 31 of
title 40, United States Code.</text>
</paragraph><paragraph id="H79439799CBB34BB3B21282D84D8C5F2B"><enum>(9)</enum><header>Administrative
expenses</header><text>The Secretary may retain up to one half of one percent
of the funds provided under this subsection, and may transfer portions of those
funds to the Administrators of the Federal Highway Administration, the Federal
Transit Administration, the Federal Railroad Administration and the Maritime
Administration, to fund the award and oversight of grants made under this
subsection. Funds retained shall remain available for obligation until
September 30, 2015.</text>
</paragraph></subsection><subsection id="H94013A1AF10E4C448D2BE5EB64507C15"><enum>(i)</enum><header>Local
hiring</header>
<paragraph id="H6D986BAFBD5C4837B3A39765662A626C"><enum>(1)</enum><header>In
general</header><text>In the case of the funding made available under
subsections (a) through (h) of this section, the Secretary of Transportation
may establish standards under which a contract for construction may be
advertised that contains requirements for the employment of individuals
residing in or adjacent to any of the areas in which the work is to be
performed to perform construction work required under the contract, provided
that—</text>
<subparagraph id="HF0155F3326D2408EBC3667EF613FCED0"><enum>(A)</enum><text>all or part of the
construction work performed under the contract occurs in an area designated by
the Secretary as an area of high unemployment, using data reported by the
United States Department of Labor, Bureau of Labor Statistics;</text>
</subparagraph><subparagraph id="H1C5371AFFC0A4049924FA6FF117FCB98"><enum>(B)</enum><text>the estimated cost
of the project of which the contract is a part is greater than $10 million,
except that the estimated cost of the project in the case of construction
funded under subsection (c) shall be greater than $50 million; and</text>
</subparagraph><subparagraph id="HE83E64A599034D69A1B82B896547296B"><enum>(C)</enum><text>the recipient may
not require the hiring of individuals who do not have the necessary skills to
perform work in any craft or trade; provided that the recipient may require the
hiring of such individuals if the recipient establishes reasonable provisions
to train such individuals to perform any such work under the contract
effectively.</text>
</subparagraph></paragraph><paragraph id="H253D2E3130AB4B3A8539EEC6CB4EFAD6"><enum>(2)</enum><header>Project
standards</header>
<subparagraph id="H1CE1F0B7D91446DBBBDD9F0C04ABD3C5"><enum>(A)</enum><header>In
general</header><text>Any standards established by the Secretary under this
section shall ensure that any requirements specified under subsection
(c)(1)—</text>
<clause id="H1F6B559CA46C4755ADBB0F0554178BE5"><enum>(i)</enum><text>do
not compromise the quality of the project;</text>
</clause><clause id="H1FEB6B0020834220A46AAF82E8FF1FCA"><enum>(ii)</enum><text>are
reasonable in scope and application;</text>
</clause><clause id="HDA83A661B3844717BC315F847C3634F6"><enum>(iii)</enum><text>do
not unreasonably delay the completion of the project; and</text>
</clause><clause id="H0DCC90C56A004BBD9926E2CF189CA1A5"><enum>(iv)</enum><text>do
not unreasonably increase the cost of the project.</text>
</clause></subparagraph><subparagraph id="H8128E6700685442E9EE7B991525FD0A8"><enum>(B)</enum><header>Available
programs</header><text>The Secretary shall make available to recipients the
workforce development and training programs set forth in section 24604(e)(1)(D)
of this title to assist recipients who wish to establish training programs that
satisfy the provisions of section (c)(1)(C). The Secretary of Labor shall make
available its qualifying workforce and training development programs to
recipients who wish to establish training programs that satisfy the provisions
of section (c)(1)(C).</text>
</subparagraph></paragraph><paragraph id="H1AFA574C85344B1F808005CB343974F6"><enum>(3)</enum><header>Implementing
regulations</header><text>The Secretary shall promulgate final regulations to
implement the authority of this subsection.</text>
</paragraph></subsection><subsection id="H19428CA95A4343F0940AA3BC819343D0"><enum>(j)</enum><header>Administrative
provisions</header>
<paragraph id="HCC157BE0AA6F44BD96070C74F753689C"><enum>(1)</enum><header>Applicability of
title 40</header><text>Each project conducted using funds provided under this
subtitle shall comply with the requirements of subchapter IV of chapter 31 of
title 40, United States Code.</text>
</paragraph><paragraph id="H223FDC62F46E4208916FDA9B4DBD2080"><enum>(2)</enum><header>Buy
American</header><text>Section 1605 of division A of the American Recovery and
Reinvestment Act of 2009 (<external-xref legal-doc="public-law" parsable-cite="pl/111/5">Public Law 111–5</external-xref>) applies to each project conducted
using funds provided under this subtitle.</text>
</paragraph></subsection></section></subtitle><subtitle id="H7448DACF30CA45B98C2569A0FA9F361C"><enum>E</enum><header>Building and
upgrading infrastructure for long-Term development</header>
<section id="HA1528827A4B44D5DAE04D6D444D17083"><enum>242.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote>Building and Upgrading Infrastructure for Long-Term
Development Act</quote>.</text>
</section><section id="H942441B8DD8C44F9B4D87A73B90BB3F5"><enum>243.</enum><header>Findings and
purpose</header>
<subsection id="H72F51E7E12D14EE8B5B8F2FC9DBE2E62"><enum>(a)</enum><header>Findings</header><text>Congress
finds that—</text>
<paragraph id="HA8F443B6CD804E9B95FB016ED828C971"><enum>(1)</enum><text>infrastructure has
always been a vital element of the economic strength of the United States and a
key indicator of the international leadership of the United States;</text>
</paragraph><paragraph id="HE843D9E2E3FD4F8CA9B1DF3A34914788"><enum>(2)</enum><text>the Erie Canal,
the Hoover Dam, the railroads, and the interstate highway system are all
testaments to American ingenuity and have helped propel and maintain the United
States as the world’s largest economy;</text>
</paragraph><paragraph id="HA4BA3361EA794EBCB759EA95C71BC4FA"><enum>(3)</enum><text>according to the
World Economic Forum’s Global Competitiveness Report, the United States fell to
second place in 2009, and dropped to fourth place overall in 2010, however, in
the <quote>Quality of overall infrastructure</quote> category of the same
report, the United States ranked twenty-third in the world;</text>
</paragraph><paragraph id="HBE1D038B7D734004B8E58A5CE2EF1D78"><enum>(4)</enum><text>according to the
World Bank’s 2010 Logistic Performance Index, the capacity of countries to
efficiently move goods and connect manufacturers and consumers with
international markets is improving around the world, and the United States now
ranks seventh in the world in logistics-related infrastructure behind countries
from both Europe and Asia;</text>
</paragraph><paragraph id="H58AC7073463A4C8AB485849BADA701AC"><enum>(5)</enum><text>according to a
January 2009 report from the University of Massachusetts/Alliance for American
Manufacturing entitled <quote>Employment, Productivity and Growth,</quote>
infrastructure investment is a <quote>highly effective engine of job
creation</quote>;</text>
</paragraph><paragraph id="H12604763361247C9A5DD1BB4614A72DE"><enum>(6)</enum><text>according to the
American Society of Civil Engineers, the current condition of the
infrastructure in the United States earns a grade point average of D, and an
estimated $2,200,000,000,000 investment is needed over the next 5 years to
bring American infrastructure up to adequate condition;</text>
</paragraph><paragraph id="HCF5FA8BC139C49B1A47DAA52E51B7436"><enum>(7)</enum><text>according to the
National Surface Transportation Policy and Revenue Study Commission,
$225,000,000,000 is needed annually from all sources for the next 50 years to
upgrade the United States surface transportation system to a state of good
repair and create a more advanced system;</text>
</paragraph><paragraph id="H65069678FE3D4B6B971E4E396F2D9B96"><enum>(8)</enum><text>the current
infrastructure financing mechanisms of the United States, both on the Federal
and State level, will fail to meet current and foreseeable demands and will
create large funding gaps;</text>
</paragraph><paragraph id="H64536B3AEB7A47E9AF0E7906D85BDAEB"><enum>(9)</enum><text>published reports
state that there may not be enough demand for municipal bonds to maintain the
same level of borrowing at the same rates, resulting in significantly decreased
infrastructure investment at the State and local level;</text>
</paragraph><paragraph id="H5A6047A94E75415996A7DA62C0E6C937"><enum>(10)</enum><text>current funding
mechanisms are not readily scalable and do not—</text>
<subparagraph id="HBF0FB4B92B724D11BF93837D0220881A"><enum>(A)</enum><text>serve large
in-State or cross jurisdiction infrastructure projects, projects of regional or
national significance, or projects that cross sector silos;</text>
</subparagraph><subparagraph id="H34C8E8EE28A44D319B47C7DAC01422FE"><enum>(B)</enum><text>sufficiently
catalyze private sector investment; or</text>
</subparagraph><subparagraph id="HDA0902FEEE23410C9069F96CA75FB34A"><enum>(C)</enum><text>ensure the optimal
return on public resources;</text>
</subparagraph></paragraph><paragraph id="H2B8FC7AC1F3544E9955A1B6BA5EA6A6F"><enum>(11)</enum><text>although grant
programs of the United States Government must continue to play a central role
in financing the transportation, environment, and energy infrastructure needs
of the United States, current and foreseeable demands on existing Federal,
State, and local funding for infrastructure expansion clearly exceed the
resources to support these programs by margins wide enough to prompt serious
concerns about the United States ability to sustain long-term economic
development, productivity, and international competitiveness;</text>
</paragraph><paragraph id="HF297F2C71A4447678675A7D90538C854"><enum>(12)</enum><text>the capital
markets, including pension funds, private equity funds, mutual funds, sovereign
wealth funds, and other investors, have a growing interest in infrastructure
investment and represent hundreds of billions of dollars of potential
investment; and</text>
</paragraph><paragraph id="H4C4B49E3BFEE4B5A9364AA31AF92FD75"><enum>(13)</enum><text>the establishment
of a United States Government-owned, independent, professionally managed
institution that could provide credit support to qualified infrastructure
projects of regional and national significance, making transparent merit-based
investment decisions based on the commercial viability of infrastructure
projects, would catalyze the participation of significant private investment
capital.</text>
</paragraph></subsection><subsection id="H85C074AD3E374D2EA22D6245A7DD6CE1"><enum>(b)</enum><header>Purpose</header><text>The
purpose of this Act is to facilitate investment in, and long-term financing of,
economically viable infrastructure projects of regional or national
significance in a manner that both complements existing Federal, State, local,
and private funding sources for these projects and introduces a merit-based
system for financing such projects, in order to mobilize significant private
sector investment, create jobs, and ensure United States competitiveness
through an institution that limits the need for ongoing Federal funding.</text>
</subsection></section><section id="H5CF134AE63444C719B30DF3BC6F70776"><enum>244.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this Act, the following
definitions shall apply:</text>
<paragraph id="H10539C1A018B4B3FBA0A3376C3D7A5E0"><enum>(1)</enum><header>AIFA</header><text>The
term <term>AIFA</term> means the American Infrastructure Financing Authority
established under this Act.</text>
</paragraph><paragraph id="HE78D8528073F4DDC9026B36780A57C63"><enum>(2)</enum><header>Blind
trust</header><text>The term <term>blind trust</term> means a trust in which
the beneficiary has no knowledge of the specific holdings and no rights over
how those holdings are managed by the fiduciary of the trust prior to the
dissolution of the trust.</text>
</paragraph><paragraph id="H49862BA4771B4F8BB4B7C5F1CDB1E3CE"><enum>(3)</enum><header>Board of
directors</header><text>The term <term>Board of Directors</term> means Board of
Directors of AIFA.</text>
</paragraph><paragraph id="H88B0E36855EF4BE5B9FB810B815BE4C5"><enum>(4)</enum><header>Chairperson</header><text>The
term <term>Chairperson</term> means the Chairperson of the Board of Directors
of AIFA.</text>
</paragraph><paragraph id="H02E06C8EA68544E78DFED85F26816635"><enum>(5)</enum><header>Chief executive
officer</header><text>The term <term>chief executive officer</term> means the
chief executive officer of AIFA, appointed under section 247.</text>
</paragraph><paragraph id="HBEDEF0F66BCC40399850B0851B55AFD0"><enum>(6)</enum><header>Cost</header><text>The
term <term>cost</term> has the same meaning as in section 502 of the Federal
Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>).</text>
</paragraph><paragraph id="H5740A27D3C37427C9108713226111EAB"><enum>(7)</enum><header>Direct
loan</header><text>The term <term>direct loan</term> has the same meaning as in
section 502 of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>).</text>
</paragraph><paragraph id="H357ED75EA7834CA9A68657D4A2455BDC"><enum>(8)</enum><header>Eligible
entity</header><text>The term <term>eligible entity</term> means an individual,
corporation, partnership (including a public-private partnership), joint
venture, trust, State, or other non-Federal governmental entity, including a
political subdivision or any other instrumentality of a State, or a revolving
fund.</text>
</paragraph><paragraph id="HABAB028E7F57471B8D0686AFE45E5007"><enum>(9)</enum><header>Infrastructure
project</header>
<subparagraph id="H7B6C8554554D4FB7A53AFF30990ED224"><enum>(A)</enum><header>In
general</header><text>The term <term>eligible infrastructure project</term>
means any non-Federal transportation, water, or energy infrastructure project,
or an aggregation of such infrastructure projects, as provided in this
Act.</text>
</subparagraph><subparagraph id="H7F4EEBAD8D4E4DC7A4C730E07FA4E956"><enum>(B)</enum><header>Transportation
infrastructure project</header><text>The term <term>transportation
infrastructure project</term> means the construction, alteration, or repair,
including the facilitation of intermodal transit, of the following
subsectors:</text>
<clause id="H7A8F52522B5B409CBF3663F0364C3E70"><enum>(i)</enum><text>Highway or
road.</text>
</clause><clause id="H240FE32D8C904427BEE1F821EF8ECD24"><enum>(ii)</enum><text>Bridge.</text>
</clause><clause id="HF1AFED6B385B4A948D58402737A87B4B"><enum>(iii)</enum><text>Mass
transit.</text>
</clause><clause id="H9D2CA669E2C44A4682B56D71D8B019B7"><enum>(iv)</enum><text>Inland
waterways.</text>
</clause><clause id="H7EF5EF89C90740CA9BB901493B04DC17"><enum>(v)</enum><text>Commercial
ports.</text>
</clause><clause id="HB11E9240C5574B76AF51234A9B56F698"><enum>(vi)</enum><text>Airports.</text>
</clause><clause id="HFBABDF0E507B48838A9D59EACE78D274"><enum>(vii)</enum><text>Air traffic
control systems.</text>
</clause><clause id="HF397ED05C9B14284827B6D6024EB00D6"><enum>(viii)</enum><text>Passenger rail,
including high-speed rail.</text>
</clause><clause id="HFA24FBA114674A5AA59655043AC62682"><enum>(ix)</enum><text>Freight rail
systems.</text>
</clause></subparagraph><subparagraph id="H4643D56F292F41A790C99848BF99BBB3"><enum>(C)</enum><header>Water
infrastructure project</header><text>The term <term>water infrastructure
project</term> means the construction, consolidation, alteration, or repair of
the following subsectors:</text>
<clause id="H15CC905B415D4F428A63A257B02FFA88"><enum>(i)</enum><text>Waterwaste
treatment facility.</text>
</clause><clause id="H1DF5F86C84214057ACEDB8DC7E6ABC67"><enum>(ii)</enum><text>Storm water
management system.</text>
</clause><clause id="HE57851F81ACC45F1854FDB9EDE9C08FC"><enum>(iii)</enum><text>Dam.</text>
</clause><clause id="H0C9DDB7157494B03B1E283E2A5B38D56"><enum>(iv)</enum><text>Solid waste
disposal facility.</text>
</clause><clause id="H16872179F9DC4D75BAA01FF151DB3F9F"><enum>(v)</enum><text>Drinking water
treatment facility.</text>
</clause><clause id="H4E7521FC0893439D905840DCCD9EE0F1"><enum>(vi)</enum><text>Levee.</text>
</clause><clause id="H4FFDB1CA5989430392FFA0D3C9BE70D7"><enum>(vii)</enum><text>Open space
management system.</text>
</clause></subparagraph><subparagraph id="HEF34E697B89A4C6BA62D63ACF560D335"><enum>(D)</enum><header>Energy
infrastructure project</header><text>The term <term>energy infrastructure
project</term> means the construction, alteration, or repair of the following
subsectors:</text>
<clause id="HC421497C4FA54501BAE891D3D6707CA4"><enum>(i)</enum><text>Pollution reduced
energy generation.</text>
</clause><clause id="HEFE50738A558497BAD986CF5E95A7A7D"><enum>(ii)</enum><text>Transmission and
distribution.</text>
</clause><clause id="HA0C0ED4F57EF4542B8E100DFFB28BB1B"><enum>(iii)</enum><text>Storage.</text>
</clause><clause id="HC89FC081E4C24CE9BDD7D039E68EE9A2"><enum>(iv)</enum><text>Energy efficiency
enhancements for buildings, including public and commercial buildings.</text>
</clause></subparagraph><subparagraph id="H319D72EE17FB4771B383159FE838C1B7"><enum>(E)</enum><header>Board authority
to modify subsectors</header><text>The Board of Directors may make
modifications, at the discretion of the Board, to the subsectors described in
this paragraph by a vote of not fewer than 5 of the voting members of the Board
of Directors.</text>
</subparagraph></paragraph><paragraph id="H72FF0D6F3B8643EDA7D83271E80F7219"><enum>(10)</enum><header>Investment
prospectus</header>
<subparagraph id="HCA4BBD0BFA294ACE8ECDAB4044111382"><enum>(A)</enum><text>The term
<term>investment prospectus</term> means the processes and publications
described below that will guide the priorities and strategic focus for AIFA’s
investments. The investment prospectus shall follow rulemaking procedures under
<external-xref legal-doc="usc" parsable-cite="usc/5/553">section 553</external-xref> of title 5, United States Code.</text>
</subparagraph><subparagraph id="H1FA7FF490A17428E8E47A29E06803F82"><enum>(B)</enum><text>AIFA shall publish
a detailed description of its strategy in an investment prospectus within one
year of the enactment of this subchapter. The investment prospectus
shall—</text>
<clause id="H31E63E34DE3A4518893FB68682552D18"><enum>(i)</enum><text>specify what AIFA
shall consider significant to the economic competitiveness of the United States
or a region thereof in a manner consistent with the primary objective;</text>
</clause><clause id="HF6A5BA5D7F804A428D3D38C63F4E023A"><enum>(ii)</enum><text>specify the
priorities and strategic focus of AIFA in forwarding its strategic objectives
and carrying out AIFA strategy;</text>
</clause><clause id="H6161212F4C7645ED95719C2CE938AD5E"><enum>(iii)</enum><text>specify the
priorities and strategic focus of AIFA in promoting greater efficiency in the
movement of freight;</text>
</clause><clause id="H877CFECDA6334A34A12DA2B9A556206C"><enum>(iv)</enum><text display-inline="yes-display-inline">specify the priorities and strategic focus
of AIFA in promoting the use of innovation and best practices in the planning,
design, development and delivery of projects;</text>
</clause><clause id="HBFA7D91C448A42A5874D471FAA27A25E"><enum>(v)</enum><text>describe in detail
the framework and methodology for calculating application qualification scores
and associated ranges as specified in this subchapter, along with the data to
be requested from applicants and the mechanics of calculations to be applied to
that data to determine qualification scores and ranges;</text>
</clause><clause id="HFABD4DC07DB8463184B848FFDD9AA3D6"><enum>(vi)</enum><text>describe how
selection criteria will be applied by the Chief Executive Officer in
determining the competitiveness of an application and its qualification score
and range relative to other current applications and previously funded
applications; and</text>
</clause><clause id="HCAA749AD0730425D888D5F6706BAEE0D"><enum>(vii)</enum><text display-inline="yes-display-inline">describe how the qualification score and
range methodology and project selection framework are consistent with
maximizing AIFA goals in both urban and rural areas.</text>
</clause></subparagraph><subparagraph id="H430F596A851441F18B32C8F44F999B05"><enum>(C)</enum><text>The investment
prospectus and any subsequent updates thereto shall be approved by a majority
vote of the Board of Directors prior to publication.</text>
</subparagraph><subparagraph id="H2D1067A5F6294CC1BFEC30A19896C88C"><enum>(D)</enum><text display-inline="yes-display-inline">AIFA shall update the investment prospectus
on every biennial anniversary of its original publication.</text>
</subparagraph></paragraph><paragraph id="HC70C5F12A1694351A492C59B798D13E0"><enum>(11)</enum><header>Investment-grade
rating</header><text>The term <term>investment-grade rating</term> means a
rating of BBB minus, Baa3, or higher assigned to an infrastructure project by a
ratings agency.</text>
</paragraph><paragraph id="HB26FEAFC4F774788AA106230E3C3CFE8"><enum>(12)</enum><header>Loan
guarantee</header><text>The term <term>loan guarantee</term> has the same
meaning as in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a).</text>
</paragraph><paragraph id="H6E928DD1203A460CAFA5152D7C7363E9"><enum>(13)</enum><header>Public-private
partnership</header><text>The term <term>public-private partnership</term>
means any eligible entity—</text>
<subparagraph id="H58DDF9AF37C1401BA47805297C6E57F8"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="HC8AEB81592504B6A932F423748700E77"><enum>(i)</enum><text>which is undertaking the
development of all or part of an infrastructure project that will have a public
benefit, pursuant to requirements established in one or more contracts between
the entity and a State or an instrumentality of a State; or</text>
</clause><clause id="HF10071AA68E94800A709AF759743C7EA" indent="up1"><enum>(ii)</enum><text>the activities of which, with
respect to such an infrastructure project, are subject to regulation by a State
or any instrumentality of a State;</text>
</clause></subparagraph><subparagraph id="HFC76A55CCCD64B2C8CC2B594326F0B31"><enum>(B)</enum><text>which owns,
leases, or operates or will own, lease, or operate, the project in whole or in
part; and</text>
</subparagraph><subparagraph id="H6954BDC1AA424732B9D546EE8341F6F2"><enum>(C)</enum><text>the participants
in which include not fewer than 1 nongovernmental entity with significant
investment and some control over the project or project vehicle.</text>
</subparagraph></paragraph><paragraph id="HCB0EAF3E200649228979307D1DD599B3"><enum>(14)</enum><header>Rural
infrastructure project</header><text>The term <term>rural infrastructure
project</term> means an infrastructure project in a rural area, as that term is
defined in section 343(a)(13)(A) of the Consolidated Farm and Rural Development
Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1991">7 U.S.C. 1991(a)(13)(A)</external-xref>).</text>
</paragraph><paragraph id="H12DE34D621864152BB4C1CCCFFEFBA7F"><enum>(15)</enum><header>Secretary</header><text>Unless
the context otherwise requires, the term <term>Secretary</term> means the
Secretary of the Treasury or the designee thereof.</text>
</paragraph><paragraph id="HCD670E9BE98E4155ACC1403332FC083D"><enum>(16)</enum><header>Senior
management</header><text>The term <term>senior management</term> means the
chief financial officer, chief risk officer, chief compliance officer, general
counsel, chief lending officer, and chief operations officer of AIFA
established under section 249, and such other officers as the Board of
Directors may, by majority vote, add to senior management.</text>
</paragraph><paragraph id="H05F68F85EAF241D497453ADD172605E3"><enum>(17)</enum><header>State</header><text>The
term <term>State</term> includes the District of Columbia, Puerto Rico, Guam,
American Samoa, the Virgin Islands, the Commonwealth of Northern Mariana
Islands, and any other territory of the United States.</text>
</paragraph></section><part id="H337D2D98CDA34AC1A278FBF779A8764C"><enum>I</enum><header>American
infrastructure financing authority</header>
<section id="HEC39A94AEB7B4FCCB7C1AB15451FF246"><enum>245.</enum><header>Establishment
and general authority of AIFA</header>
<subsection id="H51B10DE6F8C64902A94012A7A4CFB9C9"><enum>(a)</enum><header>Establishment of
AIFA</header><text>The American Infrastructure Financing Authority is
established as a wholly owned Government corporation.</text>
</subsection><subsection id="HE80124DB1C2C4434B74A0CC53FFB8FB2"><enum>(b)</enum><header>General
authority of AIFA</header><text>AIFA shall provide direct loans and loan
guarantees to facilitate infrastructure projects that are both economically
viable and of regional or national significance, and shall have such other
authority, as provided in this Act.</text>
</subsection><subsection id="HAF842983C8A44823B962AA062B03B7D0"><enum>(c)</enum><header>Incorporation</header>
<paragraph id="H9EC218CC7ABC46CAB0E0D80E5E535CF7"><enum>(1)</enum><header>In
general</header><text>The Board of Directors first appointed shall be deemed
the incorporator of AIFA, and the incorporation shall be held to have been
effected from the date of the first meeting of the Board of Directors.</text>
</paragraph><paragraph id="H5EBA214AC7B942D9A70AC7F29C84E80D"><enum>(2)</enum><header>Corporate
office</header><text>AIFA shall—</text>
<subparagraph id="HE5269708D324481B87FB4564F06BD771"><enum>(A)</enum><text>maintain an office
in Washington, DC; and</text>
</subparagraph><subparagraph id="H07B97F29407B4D01BDAAF88CFEE6F47B"><enum>(B)</enum><text>for purposes of
venue in civil actions, be considered to be a resident of Washington,
DC.</text>
</subparagraph></paragraph></subsection><subsection id="HE6AF409077B34FB4963D6DABF8D17556"><enum>(d)</enum><header>Responsibility
of the secretary</header><text>The Secretary shall take such action as may be
necessary to assist in implementing AIFA, and in carrying out the purpose of
this Act.</text>
</subsection><subsection id="HA70AA2893E4748E9A7F78BE696D543FE"><enum>(e)</enum><header>Rule of
construction</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/91">Chapter 91</external-xref> of title 31, United States Code, does not
apply to AIFA, unless otherwise specifically provided in this Act.</text>
</subsection></section><section id="HD2487092B5514B03BE88E8DC0D0AAD6F"><enum>246.</enum><header>Voting members
of the Board of Directors</header>
<subsection id="HFC17F4E52F78485B870212702FCA547F"><enum>(a)</enum><header>Voting
membership of the board of directors</header>
<paragraph id="H89A5A68C6A874242B2DAEC2EF91C37F2"><enum>(1)</enum><header>In
general</header><text>AIFA shall have a Board of Directors consisting of 7
voting members appointed by the President, by and with the advice and consent
of the Senate, not more than 4 of whom shall be from the same political
party.</text>
</paragraph><paragraph id="HB2469BAA01FE43F88983363CC1B3C1C1"><enum>(2)</enum><header>Chairperson</header><text>One
of the voting members of the Board of Directors shall be designated by the
President to serve as Chairperson thereof.</text>
</paragraph><paragraph id="H66D0DC8F407E4D27BC56F0BD2D8EDC11"><enum>(3)</enum><header>Congressional
recommendations</header><text>Not later than 30 days after the date of
enactment of this Act, the majority leader of the Senate, the minority leader
of the Senate, the Speaker of the House of Representatives, and the minority
leader of the House of Representatives shall each submit a recommendation to
the President for appointment of a member of the Board of Directors, after
consultation with the appropriate committees of Congress.</text>
</paragraph></subsection><subsection id="H21F13F76DD2649A381174D2155EDEC82"><enum>(b)</enum><header>Voting
rights</header><text>Each voting member of the Board of Directors shall have an
equal vote in all decisions of the Board of Directors.</text>
</subsection><subsection id="HDD99B4097E2344D9928676ABD98CC92B"><enum>(c)</enum><header>Qualifications
of voting members</header><text>Each voting member of the Board of Directors
shall—</text>
<paragraph id="HF2F9B0696B7F4C9EBA70F6384C308AE7"><enum>(1)</enum><text>be a citizen of
the United States; and</text>
</paragraph><paragraph id="H8DD7116BF65F43AFB393676C78A22D71"><enum>(2)</enum><text>have significant
demonstrated expertise in—</text>
<subparagraph id="HA6FA4A6FE7DF41609FEE02FF948EDCC1"><enum>(A)</enum><text>the management and
administration of a financial institution relevant to the operation of AIFA; or
a public financial agency or authority;</text>
</subparagraph><subparagraph id="H6945F06B0C7A46ACB3B02215B26466A1"><enum>(B)</enum><text>the financing,
development, or operation of infrastructure projects; or</text>
</subparagraph><subparagraph id="H7384E21B35BE405BAA1648091F657301"><enum>(C)</enum><text>analyzing the
economic benefits of infrastructure investment.</text>
</subparagraph></paragraph></subsection><subsection id="H7E5D658C8D204174B2B7B1CB35EAC0F1"><enum>(d)</enum><header>Terms</header>
<paragraph id="HF891926E4D4B44BB86C410FABD23959E"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this Act, each voting
member of the Board of Directors shall be appointed for a term of 4
years.</text>
</paragraph><paragraph id="HD3F3D791BFC74E55A488E747AEDA311A"><enum>(2)</enum><header>Initial
staggered terms</header><text>Of the voting members first appointed to the
Board of Directors—</text>
<subparagraph id="HA26986C106E64346A3EE368C757E7104"><enum>(A)</enum><text>the initial
Chairperson and 3 of the other voting members shall each be appointed for a
term of 4 years; and</text>
</subparagraph><subparagraph id="HB1985AA5A6154752AC53E337505E2D8E"><enum>(B)</enum><text>the remaining 3
voting members shall each be appointed for a term of 2 years.</text>
</subparagraph></paragraph><paragraph id="H21BD43360E464381A82096DD63633B59"><enum>(3)</enum><header>Date of initial
nominations</header><text>The initial nominations for the appointment of all
voting members of the Board of Directors shall be made not later than 60 days
after the date of enactment of this Act.</text>
</paragraph><paragraph id="HAD4ADAD43D084757905C5333C96175AA"><enum>(4)</enum><header>Beginning of
term</header><text>The term of each of the initial voting members appointed
under this section shall commence immediately upon the date of appointment,
except that, for purposes of calculating the term limits specified in this
subsection, the initial terms shall each be construed as beginning on January
22 of the year following the date of the initial appointment.</text>
</paragraph><paragraph id="H9700E18268E84D0D989B73C6C73DCA87"><enum>(5)</enum><header>Vacancies</header><text>A
vacancy in the position of a voting member of the Board of Directors shall be
filled by the President, and a member appointed to fill a vacancy on the Board
of Directors occurring before the expiration of the term for which the
predecessor was appointed shall be appointed only for the remainder of that
term.</text>
</paragraph></subsection><subsection id="HB2DFC3D08CFE4FA693FCF7EBC21CB661"><enum>(e)</enum><header>Meetings</header>
<paragraph id="HE52FCD30544A4F89AE3864FD250BEB58"><enum>(1)</enum><header>Open to the
public; notice</header><text>Except as provided in paragraph (3), all meetings
of the Board of Directors shall be—</text>
<subparagraph id="HB2E9631929634B00B32300FEC0519680"><enum>(A)</enum><text>open to the
public; and</text>
</subparagraph><subparagraph id="HEB13959B581F4794A7C3290C2F8467BA"><enum>(B)</enum><text>preceded by
reasonable public notice.</text>
</subparagraph></paragraph><paragraph id="H70EFF2EA82994309865EFD80FE704E52"><enum>(2)</enum><header>Frequency</header><text>The
Board of Directors shall meet not later than 60 days after the date on which
all members of the Board of Directors are first appointed, at least quarterly
thereafter, and otherwise at the call of either the Chairperson or 5 voting
members of the Board of Directors.</text>
</paragraph><paragraph id="HD4A9AFC1DD304B8A847E03CDE3BABD38"><enum>(3)</enum><header>Exception for
closed meetings</header><text>The voting members of the Board of Directors may,
by majority vote, close a meeting to the public if, during the meeting to be
closed, there is likely to be disclosed proprietary or sensitive information
regarding an infrastructure project under consideration for assistance under
this Act. The Board of Directors shall prepare minutes of any meeting that is
closed to the public, and shall make such minutes available as soon as
practicable, not later than 1 year after the date of the closed meeting, with
any necessary redactions to protect any proprietary or sensitive
information.</text>
</paragraph><paragraph id="H65B6E0956C4342F89F40091178EB9649"><enum>(4)</enum><header>Quorum</header><text>For
purposes of meetings of the Board of Directors, 5 voting members of the Board
of Directors shall constitute a quorum.</text>
</paragraph></subsection><subsection id="H18768E150DC4423F92080DE689A5DEC2"><enum>(f)</enum><header>Compensation of
members</header><text>Each voting member of the Board of Directors shall be
compensated at a rate equal to the daily equivalent of the annual rate of basic
pay prescribed for level III of the Executive Schedule under section 5314 of
title 5, United States Code, for each day (including travel time) during which
the member is engaged in the performance of the duties of the Board of
Directors.</text>
</subsection><subsection id="H481032B8126947698F26FE0B56D71893"><enum>(g)</enum><header>Conflicts of
interest</header><text>A voting member of the Board of Directors may not
participate in any review or decision affecting an infrastructure project under
consideration for assistance under this Act, if the member has or is affiliated
with an entity who has a financial interest in such project.</text>
</subsection></section><section id="H06C3E5A13BE24C34A81EBB40BA907DA0"><enum>247.</enum><header>Chief executive
officer of AIFA</header>
<subsection id="H1FE54ED0D7C646348894327373500E0C"><enum>(a)</enum><header>In
general</header><text>The chief executive officer of AIFA shall be a nonvoting
member of the Board of Directors, who shall be responsible for all activities
of AIFA, and shall support the Board of Directors as set forth in this Act and
as the Board of Directors deems necessary or appropriate.</text>
</subsection><subsection id="HA17862D443844C78A62661DB7267EF72"><enum>(b)</enum><header>Appointment and
tenure of the chief executive officer</header>
<paragraph id="H2579835CD23144C4862858FB1B16B086"><enum>(1)</enum><header>In
general</header><text>The President shall appoint the chief executive officer,
by and with the advice and consent of the Senate.</text>
</paragraph><paragraph id="HAA83BF1CB6584BFD889A766F54B0AD2D"><enum>(2)</enum><header>Term</header><text>The
chief executive officer shall be appointed for a term of 6 years.</text>
</paragraph><paragraph id="H5A1B3E7EF2524911811B33F3A7BFA1C5"><enum>(3)</enum><header>Vacancies</header><text>Any
vacancy in the office of the chief executive officer shall be filled by the
President, and the person appointed to fill a vacancy in that position
occurring before the expiration of the term for which the predecessor was
appointed shall be appointed only for the remainder of that term.</text>
</paragraph></subsection><subsection id="H2702AC8C347247A4845B161CE9BA542E"><enum>(c)</enum><header>Qualifications</header><text>The
chief executive officer—</text>
<paragraph id="H8BB18250A1534E369124473B9172625B"><enum>(1)</enum><text>shall have
significant expertise in management and administration of a financial
institution, or significant expertise in the financing and development of
infrastructure projects, or significant expertise in analyzing the economic
benefits of infrastructure investment; and</text>
</paragraph><paragraph id="H12E0ECFE4BFB4EBC8CAA3BC81DC918E6"><enum>(2)</enum><text>may not—</text>
<subparagraph id="HB65E8FC4E76B4E05869939E58645F06F"><enum>(A)</enum><text>hold any other
public office;</text>
</subparagraph><subparagraph id="H85F03BA4621247AAAA975B9024A9F3E9"><enum>(B)</enum><text>have any financial
interest in an infrastructure project then being considered by the Board of
Directors, unless that interest is placed in a blind trust; or</text>
</subparagraph><subparagraph id="H4A8526DC50DF4ACF84E168B1B606A8DF"><enum>(C)</enum><text>have any financial
interest in an investment institution or its affiliates or any other entity
seeking or likely to seek financial assistance for any infrastructure project
from AIFA, unless any such interest is placed in a blind trust for the tenure
of the service of the chief executive officer plus 2 additional years.</text>
</subparagraph></paragraph></subsection><subsection id="H9FB7050C164D49D4A9F3835FABDC081F"><enum>(d)</enum><header>Responsibilities</header><text>The
chief executive officer shall have such executive functions, powers, and duties
as may be prescribed by this Act, the bylaws of AIFA, or the Board of
Directors, including—</text>
<paragraph id="H99A62E55F56040AA8391F78383685646"><enum>(1)</enum><text>responsibility for
the development and implementation of the strategy of AIFA, including—</text>
<subparagraph id="H5F12682DB3224849A80432EBF592150D"><enum>(A)</enum><text>the development
and submission to the Board of Directors of the investment prospectus, the
annual business plans and budget;</text>
</subparagraph><subparagraph id="H60F106BA87E64CBEAC33DAF94FC1170A"><enum>(B)</enum><text>the development
and submission to the Board of Directors of a long-term strategic plan;
and</text>
</subparagraph><subparagraph id="H2AE314490E5B4516BA517D3F4F0A4790"><enum>(C)</enum><text>the development,
revision, and submission to the Board of Directors of internal policies;
and</text>
</subparagraph></paragraph><paragraph id="HFF5E10D1EFAD4F1C9D8F552975646BD9"><enum>(2)</enum><text>responsibility for
the management and oversight of the daily activities, decisions, operations,
and personnel of AIFA, including—</text>
<subparagraph id="H2544AC0D565B4892A4BA6BA1CA5AC85E"><enum>(A)</enum><text>the appointment of
senior management, subject to approval by the voting members of the Board of
Directors, and the hiring and termination of all other AIFA personnel;</text>
</subparagraph><subparagraph id="H836434B0CFAD4A1583A60CAD162B9FB5"><enum>(B)</enum><text>requesting the
detail, on a reimbursable basis, of personnel from any Federal agency having
specific expertise not available from within AIFA, following which request the
head of the Federal agency may detail, on a reimbursable basis, any personnel
of such agency reasonably requested by the chief executive officer;</text>
</subparagraph><subparagraph id="HDE362A0C29A047419094F95DEB449739"><enum>(C)</enum><text>assessing and
recommending in the first instance, for ultimate approval or disapproval by the
Board of Directors, compensation and adjustments to compensation of senior
management and other personnel of AIFA as may be necessary for carrying out the
functions of AIFA;</text>
</subparagraph><subparagraph id="H735CAF712CBB49C78444E7AFC5CA784C"><enum>(D)</enum><text>ensuring, in
conjunction with the general counsel of AIFA, that all activities of AIFA are
carried out in compliance with applicable law;</text>
</subparagraph><subparagraph id="H7429FEDE720F4187B9216C59DEB1BE6A"><enum>(E)</enum><text>overseeing the
involvement of AIFA in all projects, including—</text>
<clause id="H0A54F3F9A73E44E8B28CCC66D1B03CCC"><enum>(i)</enum><text>developing
eligible projects for AIFA financial assistance;</text>
</clause><clause id="HFC0913CC333047DB92DADAC5B5374A6B"><enum>(ii)</enum><text>determining the
terms and conditions of all financial assistance packages;</text>
</clause><clause id="HB43E618D91434382B3B051835E16F98A"><enum>(iii)</enum><text>monitoring all
infrastructure projects assisted by AIFA, including responsibility for ensuring
that the proceeds of any loan made, guaranteed, or participated in are used
only for the purposes for which the loan or guarantee was made;</text>
</clause><clause id="H71514F9497E84B9D9B2F7B914BDEA5A3"><enum>(iv)</enum><text>preparing and
submitting for approval by the Board of Directors the documents required under
paragraph (1); and</text>
</clause><clause id="HBB26A3B249EC4F04B79C607229F86F17"><enum>(v)</enum><text>ensuring the
implementation of decisions of the Board of Directors; and</text>
</clause></subparagraph><subparagraph id="HE0F7EFB9E7E5432E8A41A23D4BD5108E"><enum>(F)</enum><text>such other
activities as may be necessary or appropriate in carrying out this Act.</text>
</subparagraph></paragraph></subsection><subsection id="H941E893E236F4FDB908DBB4854976D26"><enum>(e)</enum><header>Compensation</header>
<paragraph id="H7A124D7046904CA7ACE88FB02D395BED"><enum>(1)</enum><header>In
general</header><text>Any compensation assessment or recommendation by the
chief executive officer under this section shall be without regard to the
provisions of chapter 51 or subchapter III of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/53">chapter 53</external-xref> of title 5, United
States Code.</text>
</paragraph><paragraph id="H0E6FC1F82A1E443DA50DE5553532C399"><enum>(2)</enum><header>Considerations</header><text>The
compensation assessment or recommendation required under this subsection shall
take into account merit principles, where applicable, as well as the education,
experience, level of responsibility, geographic differences, and retention and
recruitment needs in determining compensation of personnel.</text>
</paragraph></subsection></section><section id="H24CB4968C86A4841AE5587C4D0617208"><enum>248.</enum><header>Powers and
duties of the Board of Directors</header><text display-inline="no-display-inline">The Board of Directors shall—</text>
<paragraph id="HF67C5E0B475E4C21A4BE325B45C03521"><enum>(1)</enum><text>as soon as is
practicable after the date on which all members are appointed, approve or
disapprove senior management appointed by the chief executive officer;</text>
</paragraph><paragraph id="HC3F6381359384245ACA8A4556E363230"><enum>(2)</enum><text>not later than 180
days after the date on which all members are appointed—</text>
<subparagraph id="HD7915CA93C15437D83368D642A2B197D"><enum>(A)</enum><text>develop and
approve the bylaws of AIFA, including bylaws for the regulation of the affairs
and conduct of the business of AIFA, consistent with the purpose, goals,
objectives, and policies set forth in this Act;</text>
</subparagraph><subparagraph id="H5557E5CDE3354157A0743BDBFD1498D7"><enum>(B)</enum><text>establish
subcommittees, including an audit committee that is composed solely of members
of the Board of Directors who are independent of the senior management of
AIFA;</text>
</subparagraph><subparagraph id="HC2159B26D4CF4FF6B88B0D687D76F1C9"><enum>(C)</enum><text>develop and
approve, in consultation with senior management, a conflict-of-interest policy
for the Board of Directors and for senior management;</text>
</subparagraph><subparagraph id="H5D6F55101DD14A8499BE1A4977F8A57F"><enum>(D)</enum><text>approve or
disapprove internal policies that the chief executive officer shall submit to
the Board of Directors, including—</text>
<clause id="HCD1899E2C01B4B4ABBC123BD1F9551FA"><enum>(i)</enum><text>policies regarding
the loan application and approval process, including—</text>
<subclause id="H0524946188A7404A9BF1C13952B9ECEE"><enum>(I)</enum><text>disclosure and
application procedures to be followed by entities in the course of nominating
infrastructure projects for assistance under this Act;</text>
</subclause><subclause id="H9CC49C5CE75748CC8F8EA0C88A0DB88A"><enum>(II)</enum><text>guidelines for
the selection and approval of projects;</text>
</subclause><subclause id="HB03F395D81A24DA6905614ED64005966"><enum>(III)</enum><text>specific
criteria for determining eligibility for project selection, consistent with
title II; and</text>
</subclause><subclause id="H343B068715A644E0BC989D2BC6A2C598"><enum>(IV)</enum><text>standardized
terms and conditions, fee schedules, or legal requirements of a contract or
program, so as to carry out this Act; and</text>
</subclause></clause><clause id="H50094A8D280D45A6A4322E99AD635BC2"><enum>(ii)</enum><text>operational
guidelines; and</text>
</clause></subparagraph><subparagraph id="HD3D96F5722FB4F7D8C6A32ED51637D53"><enum>(E)</enum><text>approve or
disapprove a multi-year or 1-year business plan and budget for AIFA;</text>
</subparagraph></paragraph><paragraph id="H549DF3CFC89F4AB0A2B28DBF55A52507"><enum>(3)</enum><text>ensure that AIFA
is at all times operated in a manner that is consistent with this Act,
by—</text>
<subparagraph id="HD5AD8ADFF58349C7B381B272F7AAE476"><enum>(A)</enum><text>monitoring and
assessing the effectiveness of AIFA in achieving its strategic goals;</text>
</subparagraph><subparagraph id="H3B0642CE52054A1B8D986ED4A4A02FC9"><enum>(B)</enum><text>periodically
reviewing internal policies;</text>
</subparagraph><subparagraph id="H3210D0553F9449F586ED2A7AE9067242"><enum>(C)</enum><text>reviewing and
approving annual business plans, annual budgets, and long-term strategies
submitted by the chief executive officer;</text>
</subparagraph><subparagraph id="HCC6077C057CC4B53A7B56B201FC5645B"><enum>(D)</enum><text>reviewing and
approving annual reports submitted by the chief executive officer;</text>
</subparagraph><subparagraph id="H6C3103B0E4F8417B8EF17BA0206E986F"><enum>(E)</enum><text>engaging one or
more external auditors, as set forth in this Act; and</text>
</subparagraph><subparagraph id="H25D3DDEC55174C8296FC7EE1ECCD05F2"><enum>(F)</enum><text>reviewing and
approving all changes to the organization of senior management;</text>
</subparagraph></paragraph><paragraph id="H797AD701857C493EB2030CE7289B5F1D"><enum>(4)</enum><text>appoint and fix,
by a vote of 5 of the 7 voting members of the Board of Directors, and without
regard to the provisions of chapter 51 or subchapter III of chapter 53 of title
5, United States Code, the compensation and adjustments to compensation of all
AIFA personnel, and where, in appointing and fixing any compensation or
adjustments to compensation under this paragraph, the Board shall—</text>
<subparagraph id="H465F9C1BFB824AAD8FD035C846ED05F3"><enum>(A)</enum><text>consult with, and
seek to maintain comparability with, other comparable Federal personnel;</text>
</subparagraph><subparagraph id="HF22C194242A441C996077DA2CFB95A1A"><enum>(B)</enum><text>consult with the
Office of Personnel Management; and</text>
</subparagraph><subparagraph id="H68A413E22EBE4820859E95F0323ECAE6"><enum>(C)</enum><text>carry out such
duties consistent with merit principles, where applicable, as well as the
education, experience, level of responsibility, geographic differences, and
retention and recruitment needs in determining compensation of
personnel;</text>
</subparagraph></paragraph><paragraph id="HF2769E9BD1B34DA1AC05A4B840DF4CBB"><enum>(5)</enum><text>establish such
other criteria, requirements, or procedures as the Board of Directors may
consider to be appropriate in carrying out this Act;</text>
</paragraph><paragraph id="H7214A1AEDDD34E03B7C73CB3D147C795"><enum>(6)</enum><text>serve as the
primary liaison for AIFA in interactions with Congress, the Executive Branch,
and State and local governments, and to represent the interests of AIFA in such
interactions and others;</text>
</paragraph><paragraph id="H18C6AC3872054FAA90029842E8317090"><enum>(7)</enum><text>approve by a vote
of 5 of the 7 voting members of the Board of Directors any changes to the
bylaws or internal policies of AIFA;</text>
</paragraph><paragraph id="H069DE42D6F654253A8ED0F77D37F714C"><enum>(8)</enum><text>have the authority
and responsibility—</text>
<subparagraph id="HF5972E85287941E19FD90FEBCF0382E4"><enum>(A)</enum><text>to oversee
entering into and carry out such contracts, leases, cooperative agreements, or
other transactions as are necessary to carry out this Act with—</text>
<clause id="H0F3D314393E546F5AFD9E40F902669A0"><enum>(i)</enum><text>any
Federal department or agency;</text>
</clause><clause id="HEE4820A78629413DB5ED1E624FA780B2"><enum>(ii)</enum><text>any
State, territory, or possession (or any political subdivision thereof,
including State infrastructure banks) of the United States; and</text>
</clause><clause id="H4060526F645E4329BC0372B2E9B4BFBF"><enum>(iii)</enum><text>any individual,
public-private partnership, firm, association, or corporation;</text>
</clause></subparagraph><subparagraph id="HDDD8FC9C215944168BE59B57583CC20C"><enum>(B)</enum><text>to approve of the
acquisition, lease, pledge, exchange, and disposal of real and personal
property by AIFA and otherwise approve the exercise by AIFA of all of the usual
incidents of ownership of property, to the extent that the exercise of such
powers is appropriate to and consistent with the purposes of AIFA;</text>
</subparagraph><subparagraph id="HC4785C972CA847CFB7A6DB569D6B92B8"><enum>(C)</enum><text>to determine the
character of, and the necessity for, the obligations and expenditures of AIFA,
and the manner in which the obligations and expenditures will be incurred,
allowed, and paid, subject to this Act and other Federal law specifically
applicable to wholly owned Federal corporations;</text>
</subparagraph><subparagraph id="H932A805D76AA4D8FA7C54DE13F15C634"><enum>(D)</enum><text>to execute, in
accordance with applicable bylaws and regulations, appropriate
instruments;</text>
</subparagraph><subparagraph id="H97ED618A10884B59B748B05B6F8746CA"><enum>(E)</enum><text>to approve other
forms of credit enhancement that AIFA may provide to eligible projects, as long
as the forms of credit enhancements are consistent with the purposes of this
Act and terms set forth in title II;</text>
</subparagraph><subparagraph id="H6E1AC61FEFF44FD4A0457BACB8377E22"><enum>(F)</enum><text>to exercise all
other lawful powers which are necessary or appropriate to carry out, and are
consistent with, the purposes of AIFA;</text>
</subparagraph><subparagraph id="HFDA6569B2DBE434AB4E3F74BDE5D7058"><enum>(G)</enum><text>to sue or be sued
in the corporate capacity of AIFA in any court of competent
jurisdiction;</text>
</subparagraph><subparagraph id="H1DA89FBC30954721A49BDF3246270306"><enum>(H)</enum><text>to indemnify the
members of the Board of Directors and officers of AIFA for any liabilities
arising out of the actions of the members and officers in such capacity, in
accordance with, and subject to the limitations contained in this Act;</text>
</subparagraph><subparagraph id="H938D812964074227BEE494EEC519C7FA"><enum>(I)</enum><text>to review all
financial assistance packages to all eligible infrastructure projects, as
submitted by the chief executive officer and to approve, postpone, or deny the
same by majority vote;</text>
</subparagraph><subparagraph id="H786910F71B5B40D99A54F7BE944EE29E"><enum>(J)</enum><text>to review all
restructuring proposals submitted by the chief executive officer, including
assignation, pledging, or disposal of the interest of AIFA in a project,
including payment or income from any interest owned or held by AIFA, and to
approve, postpone, or deny the same by majority vote; and</text>
</subparagraph><subparagraph id="H98B91341878C45DA86A384667A4EC1C6"><enum>(K)</enum><text>to enter into
binding commitments, as specified in approved financial assistance
packages;</text>
</subparagraph></paragraph><paragraph id="H313A07A6FE6342F3A79BBB19134618F9"><enum>(9)</enum><text>delegate to the
chief executive officer those duties that the Board of Directors deems
appropriate, to better carry out the powers and purposes of the Board of
Directors under this section; and</text>
</paragraph><paragraph id="H0A5F29C26D024A4E80FF2370BF9BC24C"><enum>(10)</enum><text>to approve a
maximum aggregate amount of outstanding obligations of AIFA at any given time,
taking into consideration funding, and the size of AIFA’s addressable market
for infrastructure projects.</text>
</paragraph></section><section id="H2E3F41B8EB904B2F85CB62164C78F1DC"><enum>249.</enum><header>Senior
management</header>
<subsection id="HAFBABD8AA5644E1FAAD235F22462004C"><enum>(a)</enum><header>In
general</header><text>Senior management shall support the chief executive
officer in the discharge of the responsibilities of the chief executive
officer.</text>
</subsection><subsection id="HA72789299C934FB481FA5D0E488B9B1F"><enum>(b)</enum><header>Appointment of
senior management</header><text>The chief executive officer shall appoint such
senior managers as are necessary to carry out the purpose of AIFA, as approved
by a majority vote of the voting members of the Board of Directors.</text>
</subsection><subsection id="H9FE64E4AE2DD4DD7A8187ED300C48C11"><enum>(c)</enum><header>Term</header><text>Each
member of senior management shall serve at the pleasure of the chief executive
officer and the Board of Directors.</text>
</subsection><subsection id="H85677336296A4A0AAE68D2D4435D83E9"><enum>(d)</enum><header>Removal of
senior management</header><text>Any member of senior management may be removed,
either by a majority of the voting members of the Board of Directors upon
request by the chief executive officer, or otherwise by vote of not fewer than
5 voting members of the Board of Directors.</text>
</subsection><subsection id="HB98D997324F14C8EBD6A2B900E291B29"><enum>(e)</enum><header>Senior
management</header>
<paragraph id="HEF0F6EEFC325482B9955DCA47302583D"><enum>(1)</enum><header>In
general</header><text>Each member of senior management shall report directly to
the chief executive officer, other than the Chief Risk Officer, who shall
report directly to the Board of Directors.</text>
</paragraph><paragraph id="H84222AE4F5354118A80289924EE881A9"><enum>(2)</enum><header>Duties and
responsibilities</header>
<subparagraph id="HCC17640159C747359FA1C491F54F619B"><enum>(A)</enum><header>Chief financial
officer</header><text>The Chief Financial Officer shall be responsible for all
financial functions of AIFA. At the discretion of the Board of Directors,
specific functions of the Chief Financial Officer may be delegated
externally.</text>
</subparagraph><subparagraph id="H0AC57B6796454BF7A6D2F730A07843FA"><enum>(B)</enum><header>Chief risk
officer</header><text>The Chief Risk Officer shall be responsible for all
functions of AIFA relating to—</text>
<clause id="H9AE6E08988644531957CCEE50AD163FC"><enum>(i)</enum><text>the
creation of financial, credit, and operational risk management guidelines and
policies;</text>
</clause><clause id="H7B3E039C9A37426AB2E52851937F2898"><enum>(ii)</enum><text>credit analysis
for infrastructure projects;</text>
</clause><clause id="H06EFAE34172142E3A0DF8F6A47EE22CD"><enum>(iii)</enum><text>the creation of
conforming standards for infrastructure finance agreements;</text>
</clause><clause id="H62DD2B9A96CF4B489010A01CEC01646D"><enum>(iv)</enum><text>the
monitoring of the financial, credit, and operational exposure of AIFA;
and</text>
</clause><clause id="H316754E0A5B24F97997B54E0831D524F"><enum>(v)</enum><text>risk
management and mitigation actions, including by reporting such actions, or
recommendations of such actions to be taken, directly to the Board of
Directors.</text>
</clause></subparagraph><subparagraph id="H96AB38556A1A4E659E764A8B162206D3"><enum>(C)</enum><header>Chief compliance
officer</header><text>The Chief Compliance Officer shall be responsible for all
functions of AIFA relating to internal audits, accounting safeguards, and the
enforcement of such safeguards and other applicable requirements.</text>
</subparagraph><subparagraph id="H9EA9562210104549A26CE1FC77C7EA37"><enum>(D)</enum><header>General
counsel</header><text>The General Counsel shall be responsible for all
functions of AIFA relating to legal matters and, in consultation with the chief
executive officer, shall be responsible for ensuring that AIFA complies with
all applicable law.</text>
</subparagraph><subparagraph id="H0547119CF30F4B7BA681A84C6074C656"><enum>(E)</enum><header>Chief operations
officer</header><text>The Chief Operations Officer shall be responsible for all
operational functions of AIFA, including those relating to the continuing
operations and performance of all infrastructure projects in which AIFA retains
an interest and for all AIFA functions related to human resources.</text>
</subparagraph><subparagraph id="H52CF97B1C26D47039F3C4CD97737096B"><enum>(F)</enum><header>Chief lending
officer</header><text>The Chief Lending Officer shall be responsible
for—</text>
<clause id="HD25FE66DF2784A5DABB8539D95B2B40E"><enum>(i)</enum><text>all
functions of AIFA relating to the development of project pipeline, financial
structuring of projects, selection of infrastructure projects to be reviewed by
the Board of Directors, preparation of infrastructure projects to be presented
to the Board of Directors, and set aside for rural infrastructure
projects;</text>
</clause><clause id="HD1E59B1D3EAC44D9A40B0F8719D28C76"><enum>(ii)</enum><text>the
creation and management of—</text>
<subclause id="HF8A25897F0F24796BA7234BF90EAEB51"><enum>(I)</enum><text>a
Center for Excellence to provide technical assistance to public sector
borrowers in the development and financing of infrastructure projects;
and</text>
</subclause><subclause id="H4A2DEA4BB720492CB02F468A3FFBAD59"><enum>(II)</enum><text>an Office of
Rural Assistance to provide technical assistance in the development and
financing of rural infrastructure projects; and</text>
</subclause></clause><clause id="HED286A2C2B9E445CA913ED1536EF419D"><enum>(iii)</enum><text>the
establishment of guidelines to ensure diversification of lending activities by
region, infrastructure project type, and project size.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H5A59DB1539674C80AB75DF7A7490BCE7"><enum>(f)</enum><header>Changes to
senior management</header><text>The Board of Directors, in consultation with
the chief executive officer, may alter the structure of the senior management
of AIFA at any time to better accomplish the goals, objectives, and purposes of
AIFA, except that the functions of the Chief Financial Officer set forth in
subsection (e) shall remain separate from the functions of the Chief Risk
Officer set forth in subsection (e).</text>
</subsection><subsection id="H04EAC6E25B914FA391DB35368965F862"><enum>(g)</enum><header>Conflicts of
interest</header><text>No individual appointed to senior management may—</text>
<paragraph id="H7D17E0C31AF345A0B627E8275206FA94"><enum>(1)</enum><text>hold any other
public office;</text>
</paragraph><paragraph id="H2A993957FD5F467A8FD62A2F5126E3E0"><enum>(2)</enum><text>have any financial
interest in an infrastructure project then being considered by the Board of
Directors, unless that interest is placed in a blind trust; or</text>
</paragraph><paragraph id="H53ECA1B024F247FEB9404236CD8ED390"><enum>(3)</enum><text>have any financial
interest in an investment institution or its affiliates, AIFA or its
affiliates, or other entity then seeking or likely to seek financial assistance
for any infrastructure project from AIFA, unless any such interest is placed in
a blind trust during the term of service of that individual in a senior
management position, and for a period of 2 years thereafter.</text>
</paragraph></subsection></section><section id="HF19DA898BF6B422B8BDFDC78353F116A"><enum>250.</enum><header>Special
Inspector General for AIFA</header>
<subsection id="H5A2C7264DD744B919DB43ACA46BFB584"><enum>(a)</enum><header>In
general</header><text>During the first 5 operating years of AIFA, the Office of
the Inspector General of the Department of the Treasury shall have
responsibility for AIFA.</text>
</subsection><subsection id="HE1E2A7FBFFA74C1E9C41092F523F6E3F"><enum>(b)</enum><header>Office of the
special inspector general</header><text>Effective 5 years after the date of
enactment of the commencement of the operations of AIFA, there is established
the Office of the Special Inspector General for AIFA.</text>
</subsection><subsection id="H0F192C45557D4710BEF9AAE466397410"><enum>(c)</enum><header>Appointment of
Inspector General; Removal</header>
<paragraph id="H47E7B97A4DAC4C069FE030064722B967"><enum>(1)</enum><header>Head of
office</header><text>The head of the Office of the Special Inspector General
for AIFA shall be the Special Inspector General for AIFA (in this Act referred
to as the <quote>Special Inspector General</quote>), who shall be appointed by
the President, by and with the advice and consent of the Senate.</text>
</paragraph><paragraph id="H0D0F21D95F87484AA9DD285EFAD4494F"><enum>(2)</enum><header>Basis of
appointment</header><text>The appointment of the Special Inspector General
shall be made on the basis of integrity and demonstrated ability in accounting,
auditing, financial analysis, law, management analysis, public administration,
or investigations.</text>
</paragraph><paragraph id="H5FA76B19651D49F2BDC55010B9332B56"><enum>(3)</enum><header>Timing of
nomination</header><text>The nomination of an individual as Special Inspector
General shall be made as soon as is practicable after the effective date under
subsection (b).</text>
</paragraph><paragraph id="H82EA55EEF55041628DCD86CC8763226F"><enum>(4)</enum><header>Removal</header><text>The
Special Inspector General shall be removable from office in accordance with the
provisions of <external-xref legal-doc="usc-act" parsable-cite="usc-act/Inspector General Act of 1978 /3">section 3(b)</external-xref> of the Inspector General Act of 1978 (5 U.S.C.
App.).</text>
</paragraph><paragraph id="H71A1329E216C40268D7F3F10EA1D3A23"><enum>(5)</enum><header>Rule of
construction</header><text>For purposes of <external-xref legal-doc="usc" parsable-cite="usc/5/7324">section 7324</external-xref> of title 5, United
States Code, the Special Inspector General shall not be considered an employee
who determines policies to be pursued by the United States in the nationwide
administration of Federal law.</text>
</paragraph><paragraph id="HBBB777AF18654C6284F9FE28D2E5D544"><enum>(6)</enum><header>Rate of
pay</header><text>The annual rate of basic pay of the Special Inspector General
shall be the annual rate of basic pay for an Inspector General under section
3(e) of the Inspector General Act of 1978 (5 U.S.C. App.).</text>
</paragraph></subsection><subsection id="H2A6C1C660F3140AFA8FAB6A81C81A4E9"><enum>(d)</enum><header>Duties</header>
<paragraph id="HE9FA6B7BA4C14F069E63B8989FA4D5CA"><enum>(1)</enum><header>In
general</header><text>It shall be the duty of the Special Inspector General to
conduct, supervise, and coordinate audits and investigations of the business
activities of AIFA.</text>
</paragraph><paragraph id="HBC477DBED8624B22A458A91703D78F18"><enum>(2)</enum><header>Other systems,
procedures, and controls</header><text>The Special Inspector General shall
establish, maintain, and oversee such systems, procedures, and controls as the
Special Inspector General considers appropriate to discharge the duty under
paragraph (1).</text>
</paragraph><paragraph id="H9296455DFEB24462B0093AEA6C8454A3"><enum>(3)</enum><header>Additional
duties</header><text>In addition to the duties specified in paragraphs (1) and
(2), the Inspector General shall also have the duties and responsibilities of
inspectors general under the Inspector General Act of 1978.</text>
</paragraph></subsection><subsection id="HF5ED799EEBA4472495D0FDA17AAB2443"><enum>(e)</enum><header>Powers and
authorities</header>
<paragraph id="H7F3267940C8B4409BD80C59AA6C1E031"><enum>(1)</enum><header>In
general</header><text>In carrying out the duties specified in subsection (c),
the Special Inspector General shall have the authorities provided in section 6
of the Inspector General Act of 1978.</text>
</paragraph><paragraph id="HAC6AC4182B1148D088582A1C6415FCF4"><enum>(2)</enum><header>Additional
authority</header><text>The Special Inspector General shall carry out the
duties specified in subsection (c)(1) in accordance with section 4(b)(1) of the
Inspector General Act of 1978.</text>
</paragraph></subsection><subsection id="HFA4C5D99A81C415B8394F369E040FF0A"><enum>(f)</enum><header>Personnel,
facilities, and other resources</header>
<paragraph id="H9D88EBD4384F48548CDE6F6F242D244F"><enum>(1)</enum><header>Additional
officers</header>
<subparagraph id="HDAE2874C8E7D48BF8B6BA90BDE1A2642"><enum>(A)</enum><text>The Special
Inspector General may select, appoint, and employ such officers and employees
as may be necessary for carrying out the duties of the Special Inspector
General, subject to the provisions of title 5, United States Code, governing
appointments in the competitive service, and the provisions of chapter 51 and
subchapter III of chapter 53 of such title, relating to classification and
General Schedule pay rates.</text>
</subparagraph><subparagraph id="H9BBBE30FC8D741C3B8F22449C7FD39B9"><enum>(B)</enum><text>The Special
Inspector General may exercise the authorities of subsections (b) through (i)
of <external-xref legal-doc="usc" parsable-cite="usc/5/3161">section 3161</external-xref> of title 5, United States Code (without regard to subsection
(a) of that section).</text>
</subparagraph></paragraph><paragraph id="H5FA75A37F80446E7BC4A5F616F8D1367"><enum>(2)</enum><header>Retention of
services</header><text>The Special Inspector General may obtain services as
authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109</external-xref> of title 5, United States Code, at daily rates not
to exceed the equivalent rate prescribed for grade GS–15 of the General
Schedule by section 5332 of such title.</text>
</paragraph><paragraph id="HC7ECBAE72E4C45EAB05909412CD0C48D"><enum>(3)</enum><header>Ability to
contract for audits, studies, and other services</header><text>The Special
Inspector General may enter into contracts and other arrangements for audits,
studies, analyses, and other services with public agencies and with private
persons, and make such payments as may be necessary to carry out the duties of
the Special Inspector General.</text>
</paragraph><paragraph id="H123140A47D284C6F92784080DBEEB01D"><enum>(4)</enum><header>Request for
information</header>
<subparagraph id="H720F2686FEBC4B4A9C92D5119104E764"><enum>(A)</enum><header>In
general</header><text>Upon request of the Special Inspector General for
information or assistance from any department, agency, or other entity of the
Federal Government, the head of such entity shall, insofar as is practicable
and not in contravention of any existing law, furnish such information or
assistance to the Special Inspector General, or an authorized designee.</text>
</subparagraph><subparagraph id="H737C178591034B4097F437A217565F01"><enum>(B)</enum><header>Refusal to
comply</header><text>Whenever information or assistance requested by the
Special Inspector General is, in the judgment of the Special Inspector General,
unreasonably refused or not provided, the Special Inspector General shall
report the circumstances to the Secretary of the Treasury, without
delay.</text>
</subparagraph></paragraph></subsection><subsection id="H26B685B901B1429A9A3B2C8E971A482D"><enum>(g)</enum><header>Reports</header>
<paragraph id="H910ECA3388E24448B477274757938CA0"><enum>(1)</enum><header>Annual
report</header><text>Not later than 1 year after the confirmation of the
Special Inspector General, and every calendar year thereafter, the Special
Inspector General shall submit to the President a report summarizing the
activities of the Special Inspector General during the previous 1-year period
ending on the date of such report.</text>
</paragraph><paragraph id="H4198B82AB4CD42D09601122B2B3EB12B"><enum>(2)</enum><header>Public
disclosures</header><text>Nothing in this subsection shall be construed to
authorize the public disclosure of information that is—</text>
<subparagraph id="H1F60A9F0C49D42B9A82E7F0CD9AAEABD"><enum>(A)</enum><text>specifically
prohibited from disclosure by any other provision of law;</text>
</subparagraph><subparagraph id="HF210F036004B46838A43D771EAEABE01"><enum>(B)</enum><text>specifically
required by Executive order to be protected from disclosure in the interest of
national defense or national security or in the conduct of foreign affairs;
or</text>
</subparagraph><subparagraph id="HFFE545543AF7457FB11969A609E607D3"><enum>(C)</enum><text>a part of an
ongoing criminal investigation.</text>
</subparagraph></paragraph></subsection></section><section id="HE555CCA48F514193A8BA3A1960592026"><enum>251.</enum><header>Other
personnel</header><text display-inline="no-display-inline">Except as otherwise
provided in the bylaws of AIFA, the chief executive officer, in consultation
with the Board of Directors, shall appoint, remove, and define the duties of
such qualified personnel as are necessary to carry out the powers, duties, and
purpose of AIFA, other than senior management, who shall be appointed in
accordance with section 249.</text>
</section><section id="H9027CF5BC6774621897E61809AEBCD01"><enum>252.</enum><header>Compliance</header><text display-inline="no-display-inline">The provision of assistance by the Board of
Directors pursuant to this Act shall not be construed as superseding any
provision of State law or regulation otherwise applicable to an infrastructure
project.</text>
</section></part><part id="H2B8F487B222142E7BAC9BE8DBDF69EC8"><enum>II</enum><header>Terms
and limitations on direct loans and loan guarantees</header>
<section id="H024BFAE2522141EF9080AC1D592C1D38"><enum>253.</enum><header>Eligibility
criteria for assistance from AIFA and terms and limitations of loans</header>
<subsection id="HDC8D2E5948664452A60A248842E503FE"><enum>(a)</enum><header>In
general</header><text>Any project whose use or purpose is private and for which
no public benefit is created shall not be eligible for financial assistance
from AIFA under this Act. Financial assistance under this Act shall only be
made available if the applicant for such assistance has demonstrated to the
satisfaction of the Board of Directors that the infrastructure project for
which such assistance is being sought—</text>
<paragraph id="HD21F2AED0F2949BFAF8A4FA5CC76545F"><enum>(1)</enum><text>is not for the
refinancing of an existing infrastructure project; and</text>
</paragraph><paragraph id="H83FC9C379C5E4E668E0528E5D53E1602"><enum>(2)</enum><text>meets—</text>
<subparagraph id="H6301C946C31E4DEAA814DA86076574CC"><enum>(A)</enum><text>any pertinent
requirements set forth in this Act;</text>
</subparagraph><subparagraph id="H3A6FEFC7E02C4B9FAF6C137B1A7EB6ED"><enum>(B)</enum><text>any criteria
established by the Board of Directors or chief executive officer in accordance
with this Act; and</text>
</subparagraph><subparagraph id="H8DFED4F596F74A3BBA81A1A9B02BD4D4"><enum>(C)</enum><text>the definition of
a transportation infrastructure project, water infrastructure project, or
energy infrastructure project.</text>
</subparagraph></paragraph></subsection><subsection id="H6106386C666F422BA58F1AE1FD543ABC"><enum>(b)</enum><header>Considerations</header><text>The
criteria established by the Board of Directors pursuant to this Act shall
provide adequate consideration of—</text>
<paragraph id="H4D742E87CF2D4883981E17C83234002B"><enum>(1)</enum><text>the economic,
financial, technical, environmental, and public benefits and costs of each
infrastructure project under consideration for financial assistance under this
Act, prioritizing infrastructure projects that—</text>
<subparagraph id="HFB0B79B79C654F45BC11FB1250EC6538"><enum>(A)</enum><text>contribute to
regional or national economic growth;</text>
</subparagraph><subparagraph id="HEDBE31DD08234515AC08EC5446558205"><enum>(B)</enum><text>offer value for
money to the Government;</text>
</subparagraph><subparagraph id="HB121822B9CE0442E82AFA87685E750D7"><enum>(C)</enum><text>demonstrate a
clear and significant public benefit;</text>
</subparagraph><subparagraph id="HF0B4ECAC38FF4CD38B6DFB41C75D8575"><enum>(D)</enum><text>lead to job
creation; and</text>
</subparagraph><subparagraph id="HC4C3961F33574E84A59ABDC30AA28F92"><enum>(E)</enum><text>mitigate
environmental concerns;</text>
</subparagraph></paragraph><paragraph id="H0EA4808AEC444C0CAD6019E5E98E9610"><enum>(2)</enum><text>the means by which
development of the infrastructure project under consideration is being
financed, including—</text>
<subparagraph id="H8D29ED140E05489892F319E3BECCD706"><enum>(A)</enum><text>the terms,
conditions, and structure of the proposed financing;</text>
</subparagraph><subparagraph id="H104D0A2173AC4B97BE7AC56FEED127BF"><enum>(B)</enum><text>the credit
worthiness and standing of the project sponsors, providers of equity, and
cofinanciers;</text>
</subparagraph><subparagraph id="HB95D261F312F45918EE81448B6CF103F"><enum>(C)</enum><text>the financial
assumptions and projections on which the infrastructure project is based;
and</text>
</subparagraph><subparagraph id="H034ED31B81484838A929035EA98C4FFD"><enum>(D)</enum><text>whether there is
sufficient State or municipal political support for the successful completion
of the infrastructure project;</text>
</subparagraph></paragraph><paragraph id="HB3B995F6E98345408151CBDEABEDC077"><enum>(3)</enum><text>the likelihood
that the provision of assistance by AIFA will cause such development to proceed
more promptly and with lower costs than would be the case without such
assistance;</text>
</paragraph><paragraph id="HC5F3E292D108450BB51D0514A04E0C70"><enum>(4)</enum><text>the extent to
which the provision of assistance by AIFA maximizes the level of private
investment in the infrastructure project or supports a public-private
partnership, while providing a significant public benefit;</text>
</paragraph><paragraph id="H10467A70F97E41C486D4E6A5C909DBDC"><enum>(5)</enum><text>the extent to
which the provision of assistance by AIFA can mobilize the participation of
other financing partners in the infrastructure project;</text>
</paragraph><paragraph id="H549B381016B24416BCED90DA5C1ED3BE"><enum>(6)</enum><text>the technical and
operational viability of the infrastructure project;</text>
</paragraph><paragraph id="H2EA56D9C4960424BA47C5CABB58B50A8"><enum>(7)</enum><text>the proportion of
financial assistance from AIFA;</text>
</paragraph><paragraph id="H33935B17F6904FCD8591F2722589BBB7"><enum>(8)</enum><text>the geographic
location of the project in an effort to have geographic diversity of projects
funded by AIFA;</text>
</paragraph><paragraph id="HA279783561C6466E91753FC3975A78C9"><enum>(9)</enum><text>the size of the
project and its impact on the resources of AIFA;</text>
</paragraph><paragraph id="H71BBAA0029F34C26BDE42ADFC95CF5D2"><enum>(10)</enum><text>the
infrastructure sector of the project, in an effort to have projects from more
than one sector funded by AIFA; and</text>
</paragraph><paragraph id="H77D00AE221AB4521933C2F8AA5E5DF97"><enum>(11)</enum><text>Encourages use of
innovative procurement, asset management, or financing to minimize the
all-in-life-cycle cost, and improve the cost-effectiveness of a project.</text>
</paragraph></subsection><subsection id="H56794F5657A74BB08868FF69F594794B"><enum>(c)</enum><header>Application</header>
<paragraph id="H3691F6F112DF4DC1B22EE9C289B9DA94"><enum>(1)</enum><header>In
general</header><text>Any eligible entity seeking assistance from AIFA under
this Act for an eligible infrastructure project shall submit an application to
AIFA at such time, in such manner, and containing such information as the Board
of Directors or the chief executive officer may require.</text>
</paragraph><paragraph id="HE579503D1931449480EA5EE53BFA5135"><enum>(2)</enum><header>Review of
applications</header><text>AIFA shall review applications for assistance under
this Act on an ongoing basis. The chief executive officer, working with the
senior management, shall prepare eligible infrastructure projects for review
and approval by the Board of Directors.</text>
</paragraph><paragraph id="H6A6A8C6405394E74908627056A6BCB89"><enum>(3)</enum><header>Dedicated
revenue sources</header><text>The Federal credit instrument shall be repayable,
in whole or in part, from tolls, user fees, or other dedicated revenue sources
that also secure the infrastructure project obligations.</text>
</paragraph></subsection><subsection id="HAA79E9CF2AD248EA9AC687767E9D8FB3"><enum>(d)</enum><header>Eligible
infrastructure project costs</header>
<paragraph id="H4F3374079085479DA0DF628F41A5C350"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), to be eligible for
assistance under this Act, an infrastructure project shall have project costs
that are reasonably anticipated to equal or exceed $100,000,000.</text>
</paragraph><paragraph id="H253132D6E1A7446F9E6204B166D3B44B"><enum>(2)</enum><header>Rural
infrastructure projects</header><text>To be eligible for assistance under this
Act a rural infrastructure project shall have project costs that are reasonably
anticipated to equal or exceed $25,000,000.</text>
</paragraph></subsection><subsection id="HABED5A272A034B6DB6BD819E4715B0A0"><enum>(e)</enum><header>Loan eligibility
and maximum amounts</header>
<paragraph id="H7A0CFF8D2F244AD88E7D79ABAFCD2273"><enum>(1)</enum><header>In
general</header><text>The amount of a direct loan or loan guarantee under this
Act shall not exceed the lesser of 50 percent of the reasonably anticipated
eligible infrastructure project costs or, if the direct loan or loan guarantee
does not receive an investment grade rating, the amount of the senior project
obligations.</text>
</paragraph><paragraph id="H2A86A71B09A94FBBB8A6609322926BF2"><enum>(2)</enum><header>Maximum annual
loan and loan guarantee volume</header><text>The aggregate amount of direct
loans and loan guarantees made by AIFA in any single fiscal year may not
exceed—</text>
<subparagraph id="H4DF9C3C612164497B710C00FF9A62B37"><enum>(A)</enum><text>during the first 2
fiscal years of the operations of AIFA, $10,000,000,000;</text>
</subparagraph><subparagraph id="H94EC03221BB64A6093D40F02E93001E8"><enum>(B)</enum><text>during fiscal
years 3 through 9 of the operations of AIFA, $20,000,000,000; or</text>
</subparagraph><subparagraph id="H861671BB00D341C59538198621553F06"><enum>(C)</enum><text>during any fiscal
year thereafter, $50,000,000,000.</text>
</subparagraph></paragraph></subsection><subsection id="H3DA2F944A9384627A8FF352D955D8FF2"><enum>(f)</enum><header>State and local
permits required</header><text>The provision of assistance by the Board of
Directors pursuant to this Act shall not be deemed to relieve any recipient of
such assistance, or the related infrastructure project, of any obligation to
obtain required State and local permits and approvals.</text>
</subsection><subsection id="H1D8AA0EA389E482594D81CE72DBB1910"><enum>(g)</enum><header>Employee
protections</header><text display-inline="yes-display-inline">As a condition
for the provision of financial assistance by the Board of Directors pursuant to
this Act, the interests of employees affected by the financial assistance shall
be protected under arrangements the Secretary of Labor concludes are fair and
equitable in accordance with <external-xref legal-doc="usc" parsable-cite="usc/49/5333">section 5333(b)(2)</external-xref> of title 49, United States
Code.</text>
</subsection></section><section id="H5800D6A861DC446194F43E06BB8206EF"><enum>254.</enum><header>Loan terms and
repayment</header>
<subsection id="H3D8AC37C6A394277B32384D97D704083"><enum>(a)</enum><header>In
general</header><text>A direct loan or loan guarantee under this Act with
respect to an eligible infrastructure project shall be on such terms, subject
to such conditions, and contain such covenants, representations, warranties,
and requirements (including requirements for audits) as the chief executive
officer determines appropriate.</text>
</subsection><subsection id="HCDDBB7BA722B432CA3625C4435A5A172"><enum>(b)</enum><header>Terms</header><text>A
direct loan or loan guarantee under this Act—</text>
<paragraph id="H3A7D2DAEEDF94F59B559BEC2619FCAAF"><enum>(1)</enum><text>shall—</text>
<subparagraph id="HC1AA716BF2944224962153AA8CC8314B"><enum>(A)</enum><text>be payable, in
whole or in part, from tolls, user fees, or other dedicated revenue sources
that also secure the senior project obligations (such as availability payments
and dedicated State or local revenues); and</text>
</subparagraph><subparagraph id="HD9DB0CF183F34FA88AB0927E5E564F45"><enum>(B)</enum><text>include a rate
covenant, coverage requirement, or similar security feature supporting the
project obligations; and</text>
</subparagraph></paragraph><paragraph id="H0379433DE8764CE8AF9D29E8FDF0087D"><enum>(2)</enum><text>may have a lien on
revenues described in paragraph (1), subject to any lien securing project
obligations.</text>
</paragraph></subsection><subsection id="H77C5617DDA8C4AD1BA3BA1ED4DC3CBBA"><enum>(c)</enum><header>Base interest
rate</header><text>The base interest rate on a direct loan under this Act shall
be not less than the yield on United States Treasury obligations of a similar
maturity to the maturity of the direct loan.</text>
</subsection><subsection id="H5F48D9B8F86D405CA043E96C4CF058B9"><enum>(d)</enum><header>Risk
assessment</header><text>Before entering into an agreement for assistance under
this Act, the chief executive officer, in consultation with the Director of the
Office of Management and Budget and considering rating agency preliminary or
final rating opinion letters of the project under this section, shall estimate
an appropriate Federal credit subsidy amount for each direct loan and loan
guarantee, taking into account such letter, as well as any comparable market
rates available for such a loan or loan guarantee, should any exist. The final
credit subsidy cost for each loan and loan guarantee shall be determined
consistent with the Federal Credit Reform Act, <external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>, et seq.</text>
</subsection><subsection id="HCC91ED0D26A146ECBA9C2405DAC23448"><enum>(e)</enum><header>Credit
fee</header>
<paragraph id="H03F22AD4AC0649BCAEDF75A9A0A965D7"><enum>(1)</enum><header>In
general</header><text>With respect to each agreement for assistance under this
Act, the chief executive officer may charge a credit fee to the recipient of
such assistance to pay for, over time, all or a portion of the Federal credit
subsidy determined under subsection (d), with the remainder paid by the account
established for AIFA.</text>
</paragraph><paragraph id="H5B806CA5FF5E4CB1A14B32CEA436FEC4"><enum>(2)</enum><header>Treatment of
source of fees</header><text>The source of fees paid under this section shall
not be a loan or debt obligation guaranteed by the Federal Government.</text>
</paragraph><paragraph id="H4ABCF4BAA27F496BAC7CD378A90AB30B"><enum>(3)</enum><header>Credit fee on a
direct loan</header><text>In the case of a direct loan, such credit fee shall
be in addition to the base interest rate established under subsection
(c).</text>
</paragraph></subsection><subsection id="H6E00309764994F5FB1752FD5D5114C34"><enum>(f)</enum><header>Maturity
date</header><text>The final maturity date of a direct loan or loan guaranteed
by AIFA under this Act shall be not later than 35 years after the date of
substantial completion of the infrastructure project, as determined by the
chief executive officer.</text>
</subsection><subsection id="HC1D3E566DB8A40799842E2A6A7826F90"><enum>(g)</enum><header>Rating opinion
letter</header>
<paragraph id="HCED9F1329E1A43FA97DC449121FB8E68"><enum>(1)</enum><header>In
general</header><text>The chief executive officer shall require each applicant
for assistance under this Act to provide a rating opinion letter from at least
1 ratings agency, indicating that the senior obligations of the infrastructure
project, which may be the Federal credit instrument, have the potential to
achieve an investment-grade rating.</text>
</paragraph><paragraph id="H46F4F01DB8AA40008F1DD0C3298CA459"><enum>(2)</enum><header>Rural
infrastructure projects</header><text>With respect to a rural infrastructure
project, a rating agency opinion letter described in paragraph (1) shall not be
required, except that the loan or loan guarantee shall receive an internal
rating score, using methods similar to the ratings agencies generated by AIFA,
measuring the proposed direct loan or loan guarantee against comparable direct
loans or loan guarantees of similar credit quality in a similar sector.</text>
</paragraph></subsection><subsection id="H50D71D0B1A704396B19696534BB25ADB"><enum>(h)</enum><header>Investment-Grade
Rating Requirement</header>
<paragraph id="HC3FF0AE6118F4E13B1F7578BEC8D37F9"><enum>(1)</enum><header>Loans and loan
guarantees</header><text>The execution of a direct loan or loan guarantee under
this Act shall be contingent on the senior obligations of the infrastructure
project receiving an investment-grade rating.</text>
</paragraph><paragraph id="H072421A9A2DA4A02818AFBFB1DE7CB09"><enum>(2)</enum><header>Rating of AIFA
overall portfolio</header><text>The average rating of the overall portfolio of
AIFA shall be not less than investment grade after 5 years of operation.</text>
</paragraph></subsection><subsection id="HDBE28DA071054EBEA3A587DCF736E772"><enum>(i)</enum><header>Terms and
repayment of direct loans</header>
<paragraph id="H6C1FC7244B65431D86A0477052124CA4"><enum>(1)</enum><header>Schedule</header><text>The
chief executive officer shall establish a repayment schedule for each direct
loan under this Act, based on the projected cash flow from infrastructure
project revenues and other repayment sources.</text>
</paragraph><paragraph id="H9913A4CD844E4A6995D6E96AC3859090"><enum>(2)</enum><header>Commencement</header><text>Scheduled
loan repayments of principal or interest on a direct loan under this Act shall
commence not later than 5 years after the date of substantial completion of the
infrastructure project, as determined by the chief executive officer of
AIFA.</text>
</paragraph><paragraph id="H98CC9D55CEF34E3FAF1E21C6AB71AC1F"><enum>(3)</enum><header>Deferred
payments of direct loans</header>
<subparagraph id="H375C3223A92E4A6994318ED90830FACA"><enum>(A)</enum><header>Authorization</header><text>If,
at any time after the date of substantial completion of an infrastructure
project assisted under this Act, the infrastructure project is unable to
generate sufficient revenues to pay the scheduled loan repayments of principal
and interest on the direct loan under this Act, the chief executive officer may
allow the obligor to add unpaid principal and interest to the outstanding
balance of the direct loan, if the result would benefit the Government.</text>
</subparagraph><subparagraph id="H641A4CC577E94E4D90AEFE780AB15DF0"><enum>(B)</enum><header>Interest</header><text>Any
payment deferred under subparagraph (A) shall—</text>
<clause id="H82688E2777E247F4B8AAA7C739ACCB62"><enum>(i)</enum><text>continue to accrue
interest, in accordance with the terms of the obligation, until fully repaid;
and</text>
</clause><clause id="HC71079DE33C4471A9B06E8D9954E5F50"><enum>(ii)</enum><text>be
scheduled to be amortized over the remaining term of the loan.</text>
</clause></subparagraph><subparagraph id="HBEF3DE7175ED4F6ABFCBB6143838DE60"><enum>(C)</enum><header>Criteria</header>
<clause id="HA1489874563148DF95F916C82BC10B68"><enum>(i)</enum><header>In
general</header><text>Any payment deferral under subparagraph (A) shall be
contingent on the infrastructure project meeting criteria established by the
Board of Directors.</text>
</clause><clause id="H3AB42184CA6E4976B80341D40FFA0F79"><enum>(ii)</enum><header>Repayment
standards</header><text>The criteria established under clause (i) shall include
standards for reasonable assurance of repayment.</text>
</clause></subparagraph></paragraph><paragraph id="HDEA8D5E6724A4F969FA4D159283BB050"><enum>(4)</enum><header>Prepayment of
direct loans</header>
<subparagraph id="HD06D587B4DFD4487B395801DD0ED3584"><enum>(A)</enum><header>Use of excess
revenues</header><text>Any excess revenues that remain after satisfying
scheduled debt service requirements on the infrastructure project obligations
and direct loan and all deposit requirements under the terms of any trust
agreement, bond resolution, or similar agreement securing project obligations
under this Act may be applied annually to prepay the direct loan, without
penalty.</text>
</subparagraph><subparagraph id="HD6D1D625D2554608AC9D21A94E9039BB"><enum>(B)</enum><header>Use of proceeds
of refinancing</header><text>A direct loan under this Act may be prepaid at any
time, without penalty, from the proceeds of refinancing from non-Federal
funding sources.</text>
</subparagraph></paragraph><paragraph id="H5CA2815813B64219AAEB757BDC972A8D"><enum>(5)</enum><header>Sale of direct
loans</header>
<subparagraph id="H736A6C9AE0F0414D9F4C9C7957470301"><enum>(A)</enum><header>In
general</header><text>As soon as is practicable after substantial completion of
an infrastructure project assisted under this Act, and after notifying the
obligor, the chief executive officer may sell to another entity, or reoffer
into the capital markets, a direct loan for the infrastructure project, if the
chief executive officer determines that the sale or reoffering can be made on
favorable terms for the Government.</text>
</subparagraph><subparagraph id="H679867DE09E14EBFB5D70FE779B0CC6D"><enum>(B)</enum><header>Consent of
obligor</header><text>In making a sale or reoffering under subparagraph (A),
the chief executive officer may not change the original terms and conditions of
the direct loan, without the written consent of the obligor.</text>
</subparagraph></paragraph></subsection><subsection id="H97147F88755B4F6FB54EAB8F9571EDD9"><enum>(j)</enum><header>Loan
guarantees</header>
<paragraph id="H8A43DB9A47194286A7F8AF792F2CB1E9"><enum>(1)</enum><header>Terms</header><text>The
terms of a loan guaranteed by AIFA under this Act shall be consistent with the
terms set forth in this section for a direct loan, except that the rate on the
guaranteed loan and any payment, pre-payment, or refinancing features shall be
negotiated between the obligor and the lender, with the consent of the chief
executive officer.</text>
</paragraph><paragraph id="HCD123450E48541DE9EAB1AE2CFC0C7B0"><enum>(2)</enum><header>Guaranteed
lender</header><text>A guaranteed lender shall be limited to those lenders
meeting the definition of that term in <external-xref legal-doc="usc" parsable-cite="usc/23/601">section 601(a)</external-xref> of title 23, United
States Code.</text>
</paragraph></subsection><subsection id="HA3D621FC542D4F0FB9BED49C2D3B152F"><enum>(k)</enum><header>Compliance with
FCRA; in general</header><text>Direct loans and loan guarantees authorized by
this Act shall be subject to the provisions of the Federal Credit Reform Act of
1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661">2 U.S.C. 661 et seq.</external-xref>).</text>
</subsection></section><section id="HFCBA8AFAA30F4B14AF69316351674295"><enum>255.</enum><header>Compliance and
enforcement</header>
<subsection id="HCFF25799C69A48B0A6859B70A86DB40C"><enum>(a)</enum><header>Credit
agreement</header><text>Notwithstanding any other provision of law, each
eligible entity that receives assistance under this Act from AIFA shall enter
into a credit agreement that requires such entity to comply with all applicable
policies and procedures of AIFA, in addition to all other provisions of the
loan agreement.</text>
</subsection><subsection id="H9501C4B1C8E94719B10EF907B77171D1"><enum>(b)</enum><header>AIFA authority
on noncompliance</header><text>In any case in which a recipient of assistance
under this Act is materially out of compliance with the loan agreement, or any
applicable policy or procedure of AIFA, the Board of Directors may take action
to cancel unutilized loan amounts, or to accelerate the repayment terms of any
outstanding obligation.</text>
</subsection><subsection id="HB8F87D541FF549D8A33CD8D2190F7B81"><enum>(c)</enum><header>Construction</header><text>Nothing
in this Act is intended to affect existing provisions of law applicable to the
planning, development, construction, or operation of projects funded under the
Act.</text>
</subsection></section><section id="H78820A4AA0234F7387EED9E08310EE16"><enum>256.</enum><header>Audits; reports
to the President and Congress</header>
<subsection id="H117136D906E949498E21498A47C67F33"><enum>(a)</enum><header>Accounting</header><text>The
books of account of AIFA shall be maintained in accordance with generally
accepted accounting principles, and shall be subject to an annual audit by
independent public accountants of nationally recognized standing appointed by
the Board of Directors.</text>
</subsection><subsection id="H2C5BF690CB4D459E96C851E987B8FF35"><enum>(b)</enum><header>Reports</header>
<paragraph id="HABCD172DBDB04B92990F8441CEB7C7EF"><enum>(1)</enum><header>Board of
directors</header><text>Not later than 90 days after the last day of each
fiscal year, the Board of Directors shall submit to the President and Congress
a complete and detailed report with respect to the preceding fiscal year,
setting forth—</text>
<subparagraph id="HC62A7CCF87AB472692C4492968AD69DD"><enum>(A)</enum><text>a summary of the
operations of AIFA, for such fiscal year;</text>
</subparagraph><subparagraph id="H9397B8D934E347119805C0E311A1F177"><enum>(B)</enum><text>a schedule of the
obligations of AIFA and capital securities outstanding at the end of such
fiscal year, with a statement of the amounts issued and redeemed or paid during
such fiscal year;</text>
</subparagraph><subparagraph id="H060D67FC46AB4006B44C8702A41C8F6E"><enum>(C)</enum><text>the status of
infrastructure projects receiving funding or other assistance pursuant to this
Act during such fiscal year, including all nonperforming loans, and including
disclosure of all entities with a development, ownership, or operational
interest in such infrastructure projects;</text>
</subparagraph><subparagraph id="H8ED7ABF300FF4B708F3B3FA7A4F1C675"><enum>(D)</enum><text>a description of
the successes and challenges encountered in lending to rural communities,
including the role of the Center for Excellence and the Office of Rural
Assistance established under this Act; and</text>
</subparagraph><subparagraph id="HF3D615B3F99A4A28A73D6BDB83D2D616"><enum>(E)</enum><text>an assessment of
the risks of the portfolio of AIFA, prepared by an independent source.</text>
</subparagraph></paragraph><paragraph id="HD9B9FE012F76497E899AF9F7E0AD5CE3"><enum>(2)</enum><header>GAO</header><text>Not
later than 5 years after the date of enactment of this Act, the Comptroller
General of the United States shall conduct an evaluation of, and shall submit
to Congress a report on, activities of AIFA for the fiscal years covered by the
report that includes an assessment of the impact and benefits of each funded
infrastructure project, including a review of how effectively each such
infrastructure project accomplished the goals prioritized by the infrastructure
project criteria of AIFA.</text>
</paragraph></subsection><subsection id="H925E7FA7F82D4DA894DD7A7F455B555C"><enum>(c)</enum><header>Books and
records</header>
<paragraph id="H45B5311AB2FC4B6CBD08AEBEB401B547"><enum>(1)</enum><header>In
general</header><text>AIFA shall maintain adequate books and records to support
the financial transactions of AIFA, with a description of financial
transactions and infrastructure projects receiving funding, and the amount of
funding for each such project maintained on a publically accessible
database.</text>
</paragraph><paragraph id="HD7E030CC225F437FA84BACA3C89158FB"><enum>(2)</enum><header>Audits by the
secretary and gao</header><text>The books and records of AIFA shall at all
times be open to inspection by the Secretary of the Treasury, the Special
Inspector General, and the Comptroller General of the United States.</text>
</paragraph></subsection></section></part><part id="H8321FA367FAA4389A936A0E4BCBCA38B"><enum>III</enum><header>Funding of
AIFA</header>
<section id="HF2AD97DA68D741AE921EBCED9786515A"><enum>257.</enum><header>Administrative
fees</header>
<subsection id="HD06CD3B2C1B24361A92B506C98F39E24"><enum>(a)</enum><header>In
general</header><text>In addition to fees that may be collected under section
254(e), the chief executive officer shall establish and collect fees from
eligible funding recipients with respect to loans and loan guarantees under
this Act that—</text>
<paragraph id="HD590CA76F13C47988BDFE2E315398714"><enum>(1)</enum><text>are sufficient to
cover all or a portion of the administrative costs to the Federal Government
for the operations of AIFA, including the costs of expert firms, including
counsel in the field of municipal and project finance, and financial advisors
to assist with underwriting, credit analysis, or other independent reviews, as
appropriate;</text>
</paragraph><paragraph id="H4E699A2CA17B4573A7A07F6239A99D48"><enum>(2)</enum><text>may be in the form
of an application or transaction fee, or other form established by the chief
executive officer; and</text>
</paragraph><paragraph id="H7C4CE9F8385A4DFDB81E6C07B6A14AF2"><enum>(3)</enum><text>may be based on
the risk premium associated with the loan or loan guarantee, taking into
consideration—</text>
<subparagraph id="H90F26D4DE1FB41B88CBEB421902E8349"><enum>(A)</enum><text>the price of
United States Treasury obligations of a similar maturity;</text>
</subparagraph><subparagraph id="H8ABED04C5487473ABA8DCD55A9989D37"><enum>(B)</enum><text>prevailing market
conditions;</text>
</subparagraph><subparagraph id="HB1A44F0994EF42EBB33BD91B4C80E54D"><enum>(C)</enum><text>the ability of the
infrastructure project to support the loan or loan guarantee; and</text>
</subparagraph><subparagraph id="H89F6FA3B44994CB6A8D662E5B8FE8A31"><enum>(D)</enum><text>the total amount
of the loan or loan guarantee.</text>
</subparagraph></paragraph></subsection><subsection id="HF1BE4C4C9EB94E80803BD2FA8DFCFF6E"><enum>(b)</enum><header>Availability of
amounts</header><text>Amounts collected under subsections (a)(1), (a)(2)(a)(3)
shall be available without further action, and the source of fees paid under
this section shall not be a loan or debt obligation guaranteed by the Federal
Government.</text>
</subsection></section><section id="HAC89B68708A94FFB821316103CFAD861"><enum>258.</enum><header>Efficiency of
AIFA</header><text display-inline="no-display-inline">The chief executive
officer shall, to the extent possible, take actions consistent with this Act to
minimize the risk and cost to the Government of AIFA activities. Fees and
premiums for loan guarantee or insurance coverage will be set at levels that
minimize administrative and Federal credit subsidy costs to the Government, as
defined in section 502 of the Federal Credit Reform Act of 1990, of such
coverage, while supporting achievement of the program’s objectives, consistent
with policies as set forth in the business plan.</text>
</section><section id="H814F64992B304E3F88846B34C6BE6D7B"><enum>259.</enum><header>Funding</header>
<subsection id="H8C674EC1498741EE849D8A0044F24E2B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">There is hereby
appropriated to AIFA to carry out this Act, for the cost of direct loans and
loan guarantees subject to the limitations under section 253, and for
administrative costs, $10,000,000,000, to remain available until
expended.</text>
</subsection><subsection id="HAF8D2DF4B9854D6DA7F46A1587FE23B9"><enum>(b)</enum><header>Costs
defined</header><text>Such costs, including the costs of modifying such loans,
shall be as defined in section 502 of the Federal Credit Reform Act of
1990.</text>
</subsection><subsection id="H2FB42CF623C14F43BECE185EA3D5ABB9"><enum>(c)</enum><header>Administrative
costs</header><text>Of the amounts appropriated under subsection (a), not more
than $25,000,000 for each of fiscal years 2012 through 2013, and not more than
$50,000,000 for fiscal year 2014 may be used for administrative costs of
AIFA.</text>
</subsection><subsection id="H83F3020FCF05451EA5D40A10EA2BF7AB"><enum>(d)</enum><header>Offsets of
subsidy costs</header><text>Not more than 5 percent of such amount may be used
to offset subsidy costs associated with rural projects.</text>
</subsection></section></part><part id="H87CB42E4BBA14115BD78CD8AAC0A4241"><enum>IV</enum><header>Extension of
exemption from alternative minimum tax treatment for certain tax-Exempt
bonds</header>
<section id="H554DE9BC2B794D2CA8E245CA5F4730B4"><enum>260.</enum><header>Extension of
exemption from alternative minimum tax treatment for certain tax-exempt
bonds</header>
<subsection id="H507D94306D264B748D151D4F422EB5BA"><enum>(a)</enum><header>In
general</header><text>Clause (vi) of section 57(a)(5)(C) of the Internal
Revenue Code of 1986 is amended—</text>
<paragraph id="HF5C6F9F193604C34BEBB4E5946BDE527"><enum>(1)</enum><text>by striking
<quote>January 1, 2011</quote> in subclause (I) and inserting <quote>January 1,
2015</quote>; and</text>
</paragraph><paragraph id="H844CB7F9671A4F4593396885F17BEF7A"><enum>(2)</enum><text>by striking
<quote><header-in-text level="clause" style="OLC">in 2009 and
2010</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="clause" style="OLC">during the period 2009
through 2014</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="H4F620A00C6F847ADB2D93287F18581BF"><enum>(b)</enum><header>Adjusted current
earnings</header><text>Clause (iv) of section 56(g)(4)(B) of the Internal
Revenue Code of 1986 is amended—</text>
<paragraph id="H435AB1840EE947A8A8CB8EF870379048"><enum>(1)</enum><text>by striking
<quote>January 1, 2011</quote> in subclause (I) and inserting <quote>January 1,
2015</quote>; and</text>
</paragraph><paragraph id="HBFBC303872F14C6E95FDFCE6D6D2044B"><enum>(2)</enum><text>by striking
<quote><header-in-text level="subclause" style="OLC">in 2009 and
2010</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="subclause" style="OLC">during the period 2009
through 2014</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="HEBC5E425AC554E05B15DD011AB190FA8"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
obligations issued after December 31, 2010.</text>
</subsection></section></part></subtitle><subtitle id="H852D909C1B7C4F3B90CBFD11D7E0BF9F"><enum>F</enum><header>Project
rebuild</header>
<section id="HA43CEF145FD34D68A4FDED92408275AA"><enum>261.</enum><header>Project
rebuild</header>
<subsection id="HA29D4A372DB54E0E82BC7DF19C041DCA"><enum>(a)</enum><header>Direct
appropriations</header><text>There is appropriated, out of any money in the
Treasury not otherwise appropriated, $15,000,000,000, to remain available until
September 30, 2016, for assistance to eligible entities including States and
units of general local government (as such terms are defined in section 102 of
the Housing and Community Development Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5302">42 U.S.C. 5302</external-xref>)), and
qualified nonprofit organizations, businesses or consortia of eligible entities
for the redevelopment of abandoned and foreclosed-upon properties and for the
stabilization of affected neighborhoods.</text>
</subsection><subsection id="H069E56F44EA74A11B515B971D55A4BF1"><enum>(b)</enum><header>Allocation of
appropriated amounts</header>
<paragraph id="HD022203475154A349FC9513D093728D5"><enum>(1)</enum><header>In
general</header><text>Of the amounts appropriated, two thirds shall be
allocated to States and units of general local government based on a funding
formula established by the Secretary of Housing and Urban Development (in this
subtitle referred to as the <quote>Secretary</quote>). Of the amounts
appropriated, one third shall be distributed competitively to eligible
entities.</text>
</paragraph><paragraph id="HFB50FDC2032749DCB0AFDA25F663E785"><enum>(2)</enum><header>Formula to be
devised swiftly</header><text>The funding formula required under paragraph (1)
shall be established and the Secretary shall announce formula funding
allocations, not later than 30 days after the date of enactment of this
section.</text>
</paragraph><paragraph id="H69E1DE32A6F54F4BA126F6384CDCA501"><enum>(3)</enum><header>Formula
criteria</header><text>The Secretary may establish a minimum grant size, and
the funding formula required under paragraph (1) shall ensure that any amounts
appropriated or otherwise made available under this section are allocated to
States and units of general local government with the greatest need, as such
need is determined in the discretion of the Secretary based on—</text>
<subparagraph id="H42A28BAC7EC741FF8E5D4E37C21948D5"><enum>(A)</enum><text>the number and
percentage of home foreclosures in each State or unit of general local
government;</text>
</subparagraph><subparagraph id="HD3A65597CB9F4E9D9A70CDD79D6C8A4C"><enum>(B)</enum><text>the number and
percentage of homes in default or delinquency in each State or unit of general
local government; and</text>
</subparagraph><subparagraph id="HFD595F287AFC4AC09DE1F837B9683CFC"><enum>(C)</enum><text>other factors such
as established program designs, grantee capacity and performance, number and
percentage of commercial foreclosures, overall economic conditions, and other
market needs data, as determined by the Secretary.</text>
</subparagraph></paragraph><paragraph id="HCF90C151F62B4AA39F2EF1A95BA8DF11"><enum>(4)</enum><header>Competition
criteria</header>
<subparagraph id="HB11A0E5414274CB0865E7ADE052B7CE1"><enum>(A)</enum><text>For the funds
distributed competitively, eligible entities shall be States, units of general
local government, nonprofit entities, for-profit entities, and consortia of
eligible entities that demonstrate capacity to use funding within the period of
this program.</text>
</subparagraph><subparagraph id="HF3C52B2394624F6B9E5F764D5CCBE26C"><enum>(B)</enum><text>In selecting
grantees, the Secretary shall ensure that grantees are in areas with the
greatest number and percentage of residential and commercial foreclosures and
other market needs data, as determined by the Secretary. Additional award
criteria shall include demonstrated grantee capacity to execute projects
involving acquisition and rehabilitation or redevelopment of foreclosed
residential and commercial property and neighborhood stabilization, leverage,
knowledge of market conditions and of effective stabilization activities to
address identified conditions, and any additional factors determined by the
Secretary.</text>
</subparagraph><subparagraph id="HB40D6A038F8C4E6391F6BB8A19CF6D1D"><enum>(C)</enum><text>The Secretary may
establish a minimum grant size.</text>
</subparagraph><subparagraph id="H40AE091E6CC34DDC9ECB000C5C966ADE"><enum>(D)</enum><text>The Secretary
shall publish competition criteria for any grants awarded under this heading
not later than 60 days after appropriation of funds, and applications shall be
due to the Secretary within 120 days.</text>
</subparagraph></paragraph></subsection><subsection id="H727AC69E567D4154A9088C7701F59C3D"><enum>(c)</enum><header>Use of
funds</header>
<paragraph id="H8F978F3017E34FBCA7E16B97B0BB3D69"><enum>(1)</enum><header>Obligation and
expenditure</header><text>The Secretary shall obligate all funding within 150
days of enactment of this Act. Any eligible entity that receives amounts
pursuant to this section shall expend all funds allocated to it within three
years of the date the funds become available to the grantee for obligation.
Furthermore, the Secretary shall by Notice establish intermediate expenditure
benchmarks at the one and two year dates from the date the funds become
available to the grantee for obligation.</text>
</paragraph><paragraph id="H24F24757CD144BB48BF59A73453DC7D7"><enum>(2)</enum><header>Priorities</header>
<subparagraph id="H708AE109C1AD45AD818357710A412F04"><enum>(A)</enum><header>Job
creation</header><text>Each grantee or eligible entity shall describe how its
proposed use of funds will prioritize job creation, and secondly, will address
goals to stabilize neighborhoods, reverse vacancy, or increase or stabilize
residential and commercial property values.</text>
</subparagraph><subparagraph id="H3491569EE26C419189A93CE9D0021516"><enum>(B)</enum><header>Targeting</header><text>Any
State or unit of general local government that receives formula amounts
pursuant to this section shall, in distributing and targeting such amounts give
priority emphasis and consideration to those metropolitan areas, metropolitan
cities, urban areas, rural areas, low- and moderate-income areas, and other
areas with the greatest need, including those—</text>
<clause id="H826C94BA60374891B3686B2D4603E4BC"><enum>(i)</enum><text>with
the greatest percentage of home foreclosures;</text>
</clause><clause id="H2EB1DEAA16A34F6C81913D2DCAB84DDA"><enum>(ii)</enum><text>identified as
likely to face a significant rise in the rate of residential or commercial
foreclosures; and</text>
</clause><clause id="H223DD111DBC44D539282D44ABFB85A5F"><enum>(iii)</enum><text>with higher than
national average unemployment rate.</text>
</clause></subparagraph><subparagraph id="HEAF8327593E948D2A735458A20AA892F"><enum>(C)</enum><header>Leverage</header><text>Each
grantee or eligible entity shall describe how its proposed use of funds will
leverage private funds.</text>
</subparagraph></paragraph><paragraph id="H5B87968619B24133AB2E5EF564E1346D"><enum>(3)</enum><header>Eligible
uses</header><text>Amounts made available under this section may be used
to—</text>
<subparagraph id="HDCFF8FC7227F4D47A0CDF8FD485D7C35"><enum>(A)</enum><text>establish
financing mechanisms for the purchase and redevelopment of abandoned and
foreclosed-upon properties, including such mechanisms as soft-seconds, loan
loss reserves, and shared-equity loans for low- and moderate-income
homebuyers;</text>
</subparagraph><subparagraph id="H0F094954459E47AEB6F1880D7E626F04"><enum>(B)</enum><text>purchase and
rehabilitate properties that have been abandoned or foreclosed upon, in order
to sell, rent, or redevelop such properties;</text>
</subparagraph><subparagraph id="H45B5ED39C77D4CF3A71C63C972A74786"><enum>(C)</enum><text>establish and
operate land banks for properties that have been abandoned or foreclosed
upon;</text>
</subparagraph><subparagraph id="HD5C6641DE1E24991B806E2B124EEB2B9"><enum>(D)</enum><text>demolish blighted
structures;</text>
</subparagraph><subparagraph id="H15466DED655B453FBF9E799EC3C04828"><enum>(E)</enum><text>redevelop
abandoned, foreclosed, demolished, or vacant properties; and</text>
</subparagraph><subparagraph id="H01B8D194D0684EA1AD151AD8987158A6"><enum>(F)</enum><text>engage in other
activities, as determined by the Secretary through notice, that are consistent
with the goals of creating jobs, stabilizing neighborhoods, reversing vacancy
reduction, and increasing or stabilizing residential and commercial property
values.</text>
</subparagraph></paragraph></subsection><subsection id="HFD8AF4940656446EBA62DB20AE910EBC"><enum>(d)</enum><header>Limitations</header>
<paragraph id="H4E3A011BBDF64BA7AACE3AE33096F05F"><enum>(1)</enum><header>On
purchases</header><text>Any purchase of a property under this section shall be
at a price not to exceed its current market value, taking into account its
current condition.</text>
</paragraph><paragraph id="HB4542E8AA46F499D8779596FA13D3B66"><enum>(2)</enum><header>Rehabilitation</header><text>Any
rehabilitation of an eligible property under this section shall be to the
extent necessary to comply with applicable laws, and other requirements
relating to safety, quality, marketability, and habitability, in order to sell,
rent, or redevelop such properties or provide a renewable energy source or
sources for such properties.</text>
</paragraph><paragraph id="HBF56AE35AA494B4E8E39EA5D129BFF7B"><enum>(3)</enum><header>Sale of
homes</header><text>If an abandoned or foreclosed-upon home is purchased,
redeveloped, or otherwise sold to an individual as a primary residence, then
such sale shall be in an amount equal to or less than the cost to acquire and
redevelop or rehabilitate such home or property up to a decent, safe,
marketable, and habitable condition.</text>
</paragraph><paragraph id="HA57A86401F0546D7B7767D1EDF9E00C1"><enum>(4)</enum><header>On demolition of
public housing</header><text>Public housing, as defined at section 3(b)(6) of
the United States Housing Act of 1937, may not be demolished with funds under
this section.</text>
</paragraph><paragraph id="H42D23DAA69524BFBA662309775F4B4EF"><enum>(5)</enum><header>On demolition
activities</header><text>No more than 10 percent of any grant made under this
section may be used for demolition activities unless the Secretary determines
that such use represents an appropriate response to local market
conditions.</text>
</paragraph><paragraph id="HE8B24ADC74F6418A8A524260E53998AB"><enum>(6)</enum><header>On use of funds
for non-residential property</header><text>No more than 30 percent of any grant
made under this section may be used for eligible activities under subparagraphs
(A), (B), and (E) of subsection (c)(3) that will not result in residential use
of the property involved unless the Secretary determines that such use
represents an appropriate response to local market conditions.</text>
</paragraph></subsection><subsection id="H136331AF999B42B5B61C7ADCBCCC48EB"><enum>(e)</enum><header>Rules of
construction</header>
<paragraph id="HDC24B989822F4AB48D172278CC2D89B1"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided by this section, amounts
appropriated, revenues generated, or amounts otherwise made available to
eligible entities under this section shall be treated as though such funds were
community development block grant funds under title I of the Housing and
Community Development Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5301">42 U.S.C. 5301 et seq.</external-xref>).</text>
</paragraph><paragraph id="H3ABE584995E0416E913156ABDEBCD725"><enum>(2)</enum><header>No
match</header><text>No matching funds shall be required in order for an
eligible entity to receive any amounts under this section.</text>
</paragraph><paragraph id="H9B8AB158A719477EAC23395F3B0BDB2F"><enum>(3)</enum><header>Tenant
protections</header><text display-inline="yes-display-inline">An eligible
entity receiving a grant under this section shall comply with the 14th, 17th,
18th, 19th, 20th, 21st, 22nd, and 23rd provisos under the heading
<quote>Department of Housing and Urban Development—Community Planning and
Development—Community Development Fund</quote> in title XII of division A of
the American Recovery and Reinvestment Act of 2009American Recovery and
Reinvestment Act of 2009 (<external-xref legal-doc="public-law" parsable-cite="pl/111/5">Public Law 111–5</external-xref>, 123 Stat. 218–19), as amended by
section 1497(b)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection
Act (<external-xref legal-doc="public-law" parsable-cite="pl/111/203">Public Law 111–203</external-xref>, 124 Stat. 2211).</text>
</paragraph><paragraph id="HAB1C7FB997D841669904E329C5F9A353"><enum>(4)</enum><header>Vicinity
hiring</header><text>An eligible entity receiving a grant under this section
shall comply with section 1497(a)(8) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (<external-xref legal-doc="public-law" parsable-cite="pl/111/203">Public Law 111–203</external-xref>, 129 Stat. 2210).</text>
</paragraph></subsection><subsection id="H1C98A6933CF24DA896E75DF5C724ABBB"><enum>(f)</enum><header>Authority To
specify alternative requirements</header>
<paragraph id="H8AE39B44475B4A7D846D0919CD748D29"><enum>(1)</enum><header>In
general</header><text>In administering the program under this section, the
Secretary may specify alternative requirements to any provision under title I
of the Housing and Community Development Act of 1974 or under title I of the
Cranston-Gonzalez National Affordable Housing Act of 1990 (except for those
provisions in these laws related to fair housing, nondiscrimination, labor
standards, and the environment) for the purpose of expediting and facilitating
the use of funds under this section.</text>
</paragraph><paragraph id="H5014626B8B0B4F939AAA7AEED564B9BF"><enum>(2)</enum><header>Notice</header><text>The
Secretary shall provide written notice of intent to the public via internet to
exercise the authority to specify alternative requirements under
paragraph.</text>
</paragraph><paragraph id="H232CEB502C7F4DE083B1DA3793381407"><enum>(3)</enum><header>Low and moderate
income requirement</header>
<subparagraph id="H3438F8A8AAE04320BDA5F83E0AB7ED75"><enum>(A)</enum><header>In
general</header><text>Notwithstanding the authority of the Secretary under
paragraph (1)—</text>
<clause id="H5798446780834C0BA1E06410522C7C7C"><enum>(i)</enum><text>all
of the formula and competitive grantee funds appropriated or otherwise made
available under this section shall be used with respect to individuals and
families whose income does not exceed 120 percent of area median income;
and</text>
</clause><clause id="H9CFFCB26A8A846FC9119E307D867D6F0"><enum>(ii)</enum><text>not
less than 25 percent of the formula and competitive grantee funds appropriated
or otherwise made available under this section shall be used for the purchase
and redevelopment of eligible properties that will be used to house individuals
or families whose incomes do not exceed 50 percent of area median
income.</text>
</clause></subparagraph><subparagraph id="H91BAD4E87F994D38ABC3EF9EF2DAD814"><enum>(B)</enum><header>Recurrent
requirement</header><text>The Secretary shall, by rule or order, ensure, to the
maximum extent practicable and for the longest feasible term, that the sale,
rental, or redevelopment of abandoned and foreclosed-upon homes and residential
properties under this section remain affordable to individuals or families
described in subparagraph (A).</text>
</subparagraph></paragraph></subsection><subsection id="HEB6341A063D545759D1B82EBBC51D7D9"><enum>(g)</enum><header>Nationwide
distribution of resources</header><text>Notwithstanding any other provision of
this section or the amendments made by this section, each State shall receive
not less than $20,000,000 of formula funds.</text>
</subsection><subsection id="H064C93AF33244158A18DCFD7110704BC"><enum>(h)</enum><header>Limitation on
use of funds with respect to eminent domain</header><text>No State or unit of
general local government may use any amounts received pursuant to this section
to fund any project that seeks to use the power of eminent domain, unless
eminent domain is employed only for a public use, which shall not be construed
to include economic development that primarily benefits private
entities.</text>
</subsection><subsection id="H7CAE526511A94E728F4BDAD6F5278C9A"><enum>(i)</enum><header>Limitation on
distribution of funds</header>
<paragraph id="H785EC812DF014EF8AF8AEBFC7E8F09F6"><enum>(1)</enum><header>In
general</header><text>None of the funds made available under this section shall
be distributed to—</text>
<subparagraph id="H4BCFDCA7D9474DF5BC51D89E89538AC9"><enum>(A)</enum><text>an organization
which has been indicted for a violation under Federal law relating to an
election for Federal office; or</text>
</subparagraph><subparagraph id="HADE4CF31AB3940D9BAAF6C7FE6F05021"><enum>(B)</enum><text>an organization
which employs applicable individuals.</text>
</subparagraph></paragraph><paragraph id="H2DA82B2269A54DAFB3C93E2EBE40ECA5"><enum>(2)</enum><header>Applicable
individuals defined</header><text>In this section, the term <term>applicable
individual</term> means an individual who—</text>
<subparagraph id="H4D0810CBA92243228454F0844CC77C4E"><enum>(A)</enum><text>is—</text>
<clause id="H6B425522C76D43A1A7E42E6CFFC6B147"><enum>(i)</enum><text>employed by the
organization in a permanent or temporary capacity;</text>
</clause><clause id="HACB3CA678207483AB0E8D37170416DE2"><enum>(ii)</enum><text>contracted or
retained by the organization; or</text>
</clause><clause id="H3BC49FEB8B834A76B80C36B48939DFE9"><enum>(iii)</enum><text>acting on behalf
of, or with the express or apparent authority of, the organization; and</text>
</clause></subparagraph><subparagraph id="H4A494EB04A444DA38363BCC4A620A95B"><enum>(B)</enum><text>has been indicted
for a violation under Federal law relating to an election for Federal
office.</text>
</subparagraph></paragraph></subsection><subsection id="HD4D02B46C27D4467A02D6B2886746BE8"><enum>(j)</enum><header>Rental housing
preferences</header><text>Each State and local government receiving formula
amounts shall establish procedures to create preferences for the development of
affordable rental housing.</text>
</subsection><subsection id="H0AC38A2CA67C4A049A460EA88A95E0DC"><enum>(k)</enum><header>Job
creation</header><text>If a grantee chooses to use funds to create jobs by
establishing and operating a program to maintain eligible neighborhood
properties, not more than 10 percent of any grant may be used for that
purpose.</text>
</subsection><subsection id="HA67CEFA8B9BB44D8850A50DD0D82B967"><enum>(l)</enum><header>Program support
and capacity building</header><text display-inline="yes-display-inline">The
Secretary may use up to 0.75 percent of the funds appropriated for capacity
building of and support for eligible entities and grantees undertaking
neighborhood stabilization programs, staffing, training, technical assistance,
technology, monitoring, travel, enforcement, research, and evaluation
activities, subject to the following requirements:</text>
<paragraph id="H1557A9B679DC4BEABAA262DD9DD44F0C"><enum>(1)</enum><text>Funds set aside
for the purposes of this subparagraph shall remain available until September
30, 2018.</text>
</paragraph><paragraph id="HDCEB5EDD3394426087111B2FDBA03AC3"><enum>(2)</enum><text>Any funds made
available under this subparagraph and used by the Secretary for personnel
expenses related to administering funding under this subparagraph shall be
transferred to <quote>Personnel Compensation and Benefits, Community Planning
and Development</quote>.</text>
</paragraph><paragraph id="H7D02867C291440969FB8C21D68FFD41C"><enum>(3)</enum><text>Any funds made
available under this subparagraph and used by the Secretary for training or
other administrative expenses shall be transferred to <quote>Administration,
Operations, and Management, Community Planning and Development</quote> for
non-personnel expenses.</text>
</paragraph><paragraph id="H21F28485414E4394A41221BD67E5CF19"><enum>(4)</enum><text>Any funds made
available under this subparagraph and used by the Secretary for technology
shall be transferred to <quote>Working Capital Fund</quote>.</text>
</paragraph></subsection><subsection id="H216D410CE7004DE7A8589BC039F9E026"><enum>(m)</enum><header>Enforcement and
prevention of fraud and abuse</header><text>The Secretary shall establish and
implement procedures to prevent fraud and abuse of funds under this section,
and shall impose a requirement that grantees have an internal auditor to
continuously monitor grantee performance to prevent fraud, waste, and abuse.
Grantees shall provide the Secretary and citizens with quarterly progress
reports. The Secretary shall recapture funds from formula and competitive
grantees that do not expend 100 percent of allocated funds within 3 years of
the date that funds become available, and from underperforming or mismanaged
grantees, and shall re-allocate those funds by formula to target areas with the
greatest need, as determined by the Secretary through notice. The Secretary may
take an alternative sanctions action only upon determining that such action is
necessary to achieve program goals in a timely manner.</text>
</subsection><subsection id="HADD8A1BA71D94254B2BBF4222FE36C11"><enum>(n)</enum><header>Conformance of
policies and procedures</header><text>The Secretary of Housing and Urban
Development shall to the extent feasible conform policies and procedures for
grants made under this section to the policies and practices already in place
for the grants made under section 2301 of the Housing and Economic Recovery Act
of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/42/5301">42 U.S.C. 5301</external-xref> note); title XII of division A of the American Recovery
and Reinvestment Act of 2009 (<external-xref legal-doc="public-law" parsable-cite="pl/111/5">Public Law 111–5</external-xref>; 123 Stat. 203); or section 1497
of the Dodd-Frank Wall Street Reform and Consumer Protection Act (42 U.S.C.
5301 note).</text>
</subsection></section></subtitle><enum>III</enum><header>Assistance for
the unemployed and pathways back to work</header>
<subtitle id="H7D95165F7E9C4609BCF32834A8EAF06A"><enum>A</enum><header>Supporting
unemployed workers</header>
<section id="H31C1C771C7114D51967B48443A078A12"><enum>301.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote><short-title>Supporting Unemployed
Workers Act of 2013</short-title></quote>.</text>
</section><part id="H95FF209107124EA5869BDC3A10ACAE4F"><enum>I</enum><header>Extension of
emergency unemployment compensation and certain extended benefits provisions,
and establishment of self-Employment assistance program</header>
<section id="HD6EDF7AE1B3D4EC5B331C428F97152AA"><enum>311.</enum><header>Extension of
emergency unemployment compensation program</header>
<subsection id="H7678DD3666CA41A18EC2C723944E7B9E"><enum>(a)</enum><header>In
general</header><text>Section 4007 of the Supplemental Appropriations Act, 2008
(<external-xref legal-doc="public-law" parsable-cite="pl/110/252">Public Law 110–252</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/26/3304">26 U.S.C. 3304</external-xref> note) is amended by striking <quote>January
1, 2014</quote> and inserting <quote>January 1, 2016</quote>.</text>
</subsection><subsection id="HD7E29B8BB83E4D62931EE64876112322"><enum>(b)</enum><header>Funding</header><text>Section
4004(e)(1) of the Supplemental Appropriations Act, 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/252">Public Law 110–252</external-xref>; 26
U.S.C. 3304 note) is amended—</text>
<paragraph id="HF64ECFDA13454E5A8DB52EEB4D78B8C5"><enum>(1)</enum><text>in subparagraph
(I), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="HDA8B0CB119A34F46B7E3B34F652EA6AC"><enum>(2)</enum><text>in subparagraph
(J), by inserting <quote>and</quote> at the end; and</text>
</paragraph><paragraph id="H596D50B7DAA848D4A1C6159DBA47146A"><enum>(3)</enum><text>by inserting after
subparagraph (J) the following:</text>
<quoted-block id="H5601C58D47C14C4D98FD11908DE4AB83" style="OLC">
<subparagraph id="H0EFF6D5F722240549228493B4B519901"><enum>(K)</enum><text>the amendments
made by section 311(a) of the <short-title>Supporting
Unemployed Workers Act of 2013</short-title>;
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H1D80515435F84A15BC6C5B6C20889C37"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall take effect as if included in the enactment of the Tax
Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
(<external-xref legal-doc="public-law" parsable-cite="pl/111/312">Public Law 111–312</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/26/3304">26 U.S.C. 3304</external-xref> note).</text>
</subsection></section><section id="HC77B4EDE42D9405E99EABEE4F430C026"><enum>312.</enum><header>Temporary
extension of extended benefit provisions</header>
<subsection id="H1FDFA770536044219D98C02B050273F6"><enum>(a)</enum><header>In
general</header><text>Section 2005 of the Assistance for Unemployed Workers and
Struggling Families Act, as contained in <external-xref legal-doc="public-law" parsable-cite="pl/111/5">Public Law 111–5</external-xref> (26 U.S.C. 3304
note), is amended—</text>
<paragraph id="H822FEAFEDCC64945944F26DF283B83B4"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>December 31,
2013</quote> each place it appears and inserting <quote>December 31,
2015</quote>; and</text>
</paragraph><paragraph id="H06AA87CB134A40F194EDAFFDB529C64B"><enum>(2)</enum><text>in subsection (c),
by striking <quote>June 30, 2014</quote> and inserting <quote>June 30,
2016</quote>.</text>
</paragraph></subsection><subsection id="H7A7A03719DC94D6E98CD73ECC5CE2134"><enum>(b)</enum><header>Extension of
matching for states with no waiting week</header><text>Section 5 of the
Unemployment Compensation Extension Act of 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/449">Public Law 110–449</external-xref>; 26 U.S.C.
3304 note) is amended by striking <quote>June 30, 2014</quote> and inserting
<quote>June 30, 2016</quote>.</text>
</subsection><subsection id="H0EAA9D4757E44D05A77B44976E9DF3A6"><enum>(c)</enum><header>Extension of
modification of indicators under the extended benefit program</header><text display-inline="yes-display-inline">Section 203 of the Federal-State Extended
Unemployment Compensation Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/26/3304">26 U.S.C. 3304</external-xref> note) is amended—</text>
<paragraph id="H3F253CE351694DE4BD815D6FB5597185"><enum>(1)</enum><text>in subsection (d),
by striking <quote>December 31, 2013</quote> and inserting <quote>December 31,
2015</quote>; and</text>
</paragraph><paragraph id="HBD4A38BF138644148AE1CD2A70897763"><enum>(2)</enum><text>in subsection
(f)(2), by striking <quote>December 31, 2013</quote> and inserting
<quote>December 31, 2015</quote>.</text>
</paragraph></subsection><subsection id="HC7A3C73CCD40488EAB7F83E11495A16D"><enum>(d)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall take effect as if included in the enactment of the Tax
Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
(<external-xref legal-doc="public-law" parsable-cite="pl/111/312">Public Law 111–312</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/26/3304">26 U.S.C. 3304</external-xref> note).</text>
</subsection></section><section id="HAFBEE2EFC3714D46B786F5EBECE73FBC"><enum>313.</enum><header>Additional
extended unemployment benefits under the Railroad Unemployment Insurance
Act</header>
<subsection id="HF47933306C584D35945C02980B26A1C1"><enum>(a)</enum><header>Extension</header><text>Section
2(c)(2)(D)(iii) of the Railroad Unemployment Insurance Act (45 U.S.C.
352(c)(2)(D)(iii)) is amended—</text>
<paragraph id="H92756ABA084B4ECFA159E149125C1B9A"><enum>(1)</enum><text>by striking
<quote>June 30, 2013</quote> and inserting <quote>June 30, 2015</quote>;
and</text>
</paragraph><paragraph id="H7A93B24386E44A16AE39A76DA5BA0A33"><enum>(2)</enum><text>by striking
<quote>December 31, 2013</quote> and inserting <quote>December 31,
2015</quote>.</text>
</paragraph></subsection><subsection id="H91D35FEE499A4610B617B40312B8ED5E"><enum>(b)</enum><header>Clarification on
authority To use funds</header><text display-inline="yes-display-inline">Funds
appropriated under either the first or second sentence of clause (iv) of
section 2(c)(2)(D) of the Railroad Unemployment Insurance Act (45 U.S.C.
352(c)(2)(D)) shall be available to cover the cost of additional extended
unemployment benefits provided under such section 2(c)(2)(D) by reason of the
amendments made by subsection (a) as well as to cover the cost of such benefits
provided under such section 2(c)(2)(D), as in effect on the day before the date
of the enactment of this Act.</text>
</subsection></section></part><part id="H30DD8C2B85314421B9327D18450BF0A6"><enum>II</enum><header>Reemployment NOW
program</header>
<section id="HFEA092DA147446BE9B7174267F5CA398"><enum>321.</enum><header>Establishment
of reemployment NOW program</header>
<subsection id="HE8AF7FCCCF3D48FC8A50E0B616F27E0F"><enum>(a)</enum><header>In
general</header><text>There is established the Reemployment NOW program to be
carried out by the Secretary of Labor in accordance with this part in order to
facilitate the reemployment of individuals who are receiving emergency
unemployment compensation under title IV of the Supplemental Appropriations
Act, 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/252">Public Law 110–252</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/26/3304">26 U.S.C. 3304</external-xref> note) (hereafter in this part
referred to as <quote>EUC claimants</quote>).</text>
</subsection><subsection id="HEA1377D423F64AD490B8A2FFEC0A6F5E"><enum>(b)</enum><header>Authorization
and appropriation</header><text display-inline="yes-display-inline">There are
authorized to be appropriated $4,000,000,000 for fiscal year 2014 to carry out
the Reemployment NOW program under this part.</text>
</subsection></section><section id="H2CD0BD572F77488A8B73490DBA259AED"><enum>322.</enum><header>Distribution of
funds</header>
<subsection id="H27275569E6E14641BEDF59F17755D11E"><enum>(a)</enum><header>In
general</header><text>Of the amount made available under section 321(b) to
carry out this part, the Secretary of Labor shall—</text>
<paragraph id="HC1C1FC523F604FCDADFC3AB26BA96C7E"><enum>(1)</enum><text>reserve up to 1
percent for the costs of Federal administration and for carrying out rigorous
evaluations of the activities conducted under this part; and</text>
</paragraph><paragraph id="HCAF9514AD76A46818637AC122B880CB5"><enum>(2)</enum><text>allot the
remainder of the funds not reserved under paragraph (1) in accordance with the
requirements of subsection (b) and (c) to States that have approved plans under
section 323.</text>
</paragraph></subsection><subsection id="H5A65AA7BF176432D814C805A01789352"><enum>(b)</enum><header>Allotment
formula</header>
<paragraph id="HC02B3830D0914A0A8708620B80378D29"><enum>(1)</enum><header>Formula
factors</header><text>The Secretary of Labor shall allot the funds available
under subsection (a)(2) as follows—</text>
<subparagraph id="H92BD1BBC1CB74587BC902C01A533F9D0"><enum>(A)</enum><text>two-thirds of such
funds shall be allotted on the basis of the relative number of unemployed
individuals in each State, compared to the total number of unemployed
individuals in all States; and</text>
</subparagraph><subparagraph id="H512D48D0B8234986AFF086966F7F9031"><enum>(B)</enum><text>one-third of such
funds shall be allotted on the basis of the relative number of individuals in
each State who have been unemployed for 27 weeks or more, compared to the total
number of individuals in all States who have been unemployed for 27 weeks or
more.</text>
</subparagraph></paragraph><paragraph id="HD30C4E02C5504779B2B2762305590BF8"><enum>(2)</enum><header>Calculation</header><text>For
purposes of paragraph (1), the number of unemployed individuals and the number
of individuals unemployed for 27 weeks or more shall be based on the data for
the most recent 12-month period, as determined by the Secretary.</text>
</paragraph></subsection><subsection id="H3A564925676A4C47B24671EE9191BBFE"><enum>(c)</enum><header>Reallotment</header>
<paragraph id="H99E8646A502A493CAD0F04BC760AF7F2"><enum>(1)</enum><header>Failure to
submit state plan</header><text>If a State does not submit a State plan by the
time specified in section 323(b), or a State does not receive approval of a
State plan, the amount the State would have been eligible to receive pursuant
to the formula under subsection (b) shall be allotted to States that receive
approval of the State plan under section 323 in accordance with the relative
allotments of such States as determined by the Secretary under subsection
(b).</text>
</paragraph><paragraph id="H3514EBD9DFDF4F9483B809E9E5421983"><enum>(2)</enum><header>Failure to
implement activities on a timely basis</header><text>The Secretary of Labor
may, in accordance with procedures and criteria established by the Secretary,
recapture the portion of the State allotment under this part that remains
unobligated if the Secretary determines such funds are not being obligated at a
rate sufficient to meet the purposes of this part. The Secretary shall reallot
such recaptured funds to other States that are not subject to recapture in
accordance with the relative share of the allotments of such States as
determined by the Secretary under subsection (b).</text>
</paragraph><paragraph id="H21669FFFEFCF4F819EF6362D3794666D"><enum>(3)</enum><header>Recapture of
funds</header><text>Funds recaptured under paragraph (2) shall be available for
reobligation not later than December 31, 2015.</text>
</paragraph></subsection></section><section id="HDFB4BF563F57445F9D98A0C9A3CAB19C"><enum>323.</enum><header>State
plan</header>
<subsection id="HD81E3C3CE56D4BB0B363B40A8782B462"><enum>(a)</enum><header>In
general</header><text>For a State to be eligible to receive an allotment under
section 322, a State shall submit to the Secretary of Labor a State plan in
such form and containing such information as the Secretary may require, which
at a minimum shall include—</text>
<paragraph id="H3E27B7937916463B91698BA6045B50F1"><enum>(1)</enum><text>a
description of the activities to be carried out by the State to assist in the
reemployment of eligible individuals to be served in accordance with this part,
including which of the activities authorized in sections 324–328 the State
intends to carry out and an estimate of the amounts the State intends to
allocate to the activities, respectively;</text>
</paragraph><paragraph id="H5F78CAF405BA44489EB9C1F16639AE1A"><enum>(2)</enum><text>a
description of the performance outcomes to be achieved by the State through the
activities carried out under this part, including the employment outcomes to be
achieved by participants and the processes the State will use to track
performance, consistent with guidance provided by the Secretary of Labor
regarding such outcomes and processes;</text>
</paragraph><paragraph id="H1F35D3F2F9FE4F12AA2D060AD219FA01"><enum>(3)</enum><text>a
description of coordination of activities to be carried out under this part
with activities under title I of the Workforce Investment Act of 1998, the
Wagner-Peyser Act, and other appropriate Federal programs;</text>
</paragraph><paragraph id="H1F87476C69994E7D8933410001F82C07"><enum>(4)</enum><text>the timelines for
implementation of the activities described in the plan and the number of EUC
claimants expected to be enrolled in such activities by quarter;</text>
</paragraph><paragraph id="H9CDE0E9270F84443A1FFB6CE855BCF8C"><enum>(5)</enum><text>assurances that
the State will participate in the evaluation activities carried out by the
Secretary of Labor under this section;</text>
</paragraph><paragraph id="HF5BA102307984D689AE06A828A82F684"><enum>(6)</enum><text>assurances that
the State will provide appropriate reemployment services, including counseling,
to any EUC claimant who participates in any of the programs authorized under
this part; and</text>
</paragraph><paragraph id="H069EE0F5F21141498F3C3006A0553427"><enum>(7)</enum><text>assurances that
the State will report such information as the Secretary may require relating to
fiscal, performance and other matters, including employment outcomes and
effects, which the Secretary determines are necessary to effectively monitor
the activities carried out under this part.</text>
</paragraph></subsection><subsection id="H4C76200CFD634B47BE6675BF1556BF39"><enum>(b)</enum><header>Plan submission
and approval</header><text>A State plan under this section shall be submitted
to the Secretary of Labor for approval not later than 30 days after the
Secretary issues guidance relating to submission of such plan. The Secretary
shall approve such plans if the Secretary determines that the plans meet the
requirements of this part and are appropriate and adequate to carry out the
purposes of this part.</text>
</subsection><subsection id="H00F627AF9A6F47D8A3FE9D7524BE53A3"><enum>(c)</enum><header>Plan
modifications</header><text>A State may submit modifications to a State plan
that has been approved under this part, and the Secretary of Labor may approve
such modifications, if the plan as modified would meet the requirements of this
part and are appropriate and adequate to carry out the purposes of this
part.</text>
</subsection></section><section id="H77BDD0E0750A494CA1BF98023FA8DB9C"><enum>324.</enum><header>Bridge to work
program</header>
<subsection id="H6E856DC9D25C4866A7B4FC7109FBC72E"><enum>(a)</enum><header>In
general</header><text>A State may use funds allotted to the State under this
part to establish and administer a Bridge to Work program described in this
section.</text>
</subsection><subsection id="H5C1E9F752D184BAFB8F87F170085E266"><enum>(b)</enum><header>Description of
program</header><text>In order to increase individuals’ opportunities to move
to permanent employment, a State may establish a Bridge to Work program to
provide an EUC claimant with short-term work experience placements with an
eligible employer, during which time such individual—</text>
<paragraph id="H9E789053B96A425AB155A448761BA974"><enum>(1)</enum><text>shall be paid
emergency unemployment compensation payable under title IV of the Supplemental
Appropriations Act, 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/252">Public Law 110–252</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/26/3304">26 U.S.C. 3304</external-xref> note), as wages
for work performed, and as specified in subsection (c);</text>
</paragraph><paragraph id="HBB0418CDBD69439EA863A70E3921532F"><enum>(2)</enum><text>shall be paid the
additional amount described in subsection (e) as augmented wages for work
performed; and</text>
</paragraph><paragraph id="HC4F852B1F76A4E0285039278A584ABF4"><enum>(3)</enum><text>may be paid
compensation in addition to the amounts described in paragraphs (1) and (2) by
a State or by a participating employer as wages for work performed.</text>
</paragraph></subsection><subsection id="HC6A27300BCA5432BAECBC8A158244D42"><enum>(c)</enum><header>Program
eligibility and other requirements</header><text>For purposes of this
program—</text>
<paragraph id="HCD8B9C1D79764015B44B7C8628BFEA18"><enum>(1)</enum><text>individuals who,
except for the requirements described in paragraph (3), are eligible to receive
emergency unemployment compensation payments under title IV of the Supplemental
Appropriations Act, 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/252">Public Law 110–252</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/26/3304">26 U.S.C. 3304</external-xref> note), and who
choose to participate in the program described in subsection (b), shall receive
such payments as wages for work performed during their voluntary participation
in the program described under subsection (b);</text>
</paragraph><paragraph id="H51E1E58679CB432795B573581F137147"><enum>(2)</enum><text>the wages payable
to individuals described in paragraph (1) shall be paid from the emergency
unemployment compensation account for such individual as described in section
4002 of the Supplemental Appropriations Act, 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/252">Public Law 110–252</external-xref>; 26
U.S.C. 3304 note), and the amount in such individual’s account shall be reduced
accordingly;</text>
</paragraph><paragraph id="HCA64BC037BF24D5D8DBC545ED2F2102C"><enum>(3)</enum><text>the wages payable
to an individual described in paragraph (1) shall be payable in the same
amount, at the same interval, on the same terms, and subject to the same
conditions under title IV of the Supplemental Appropriations Act, 2008 (Public
Law 110–252; <external-xref legal-doc="usc" parsable-cite="usc/26/3304">26 U.S.C. 3304</external-xref> note), except that—</text>
<subparagraph id="H68B7C0C81980434FB59ED2D5DB4FA676"><enum>(A)</enum><text>State requirements
applied under such Act relating to availability for work and active search for
work are not applicable to such individuals who participate for at least 25
hours per week in the program described in subsection (b) for the duration of
such individual’s participation in the program;</text>
</subparagraph><subparagraph id="HC301259AB3AC4B489A765BB67B10C7E5"><enum>(B)</enum><text>State requirements
applied under such Act relating to disqualifying income regarding wages earned
shall not apply to such individuals who participate for at least 25 hours per
week in the program described in subsection (b), and shall not apply with
respect to—</text>
<clause id="H5D7558A50BF5411FBED888EC2C9B1D87"><enum>(i)</enum><text>the
wages described under subsection (b); and</text>
</clause><clause id="H213F47CC6A024CD3957F45336340C017"><enum>(ii)</enum><text>any
wages, in addition to those described under subsection (b), whether paid by a
State or a participating employer for the same work activities;</text>
</clause></subparagraph><subparagraph id="H1693AE4B0D2D4B9AB92268C87500E908"><enum>(C)</enum><text>State prohibitions
or limitations applied under such Act relating to employment status shall not
apply to such individuals who participate in the program described in
subsection (b); and</text>
</subparagraph><subparagraph id="H444C249E1D194625B424E0FD2C40429A"><enum>(D)</enum><text>State requirements
applied under such Act relating to an individual’s acceptance of an offer of
employment shall not apply with regard to an offer of long-term employment from
a participating employer made to such individual who is participating in the
program described in subsection (b) in a work experience provided by such
employer, where such long-term employment is expected to commence or commences
at the conclusion of the duration specified in paragraph (4)(A);</text>
</subparagraph></paragraph><paragraph id="H609BD61010844F0FB8737EE6588F96F8"><enum>(4)</enum><text>the program shall
be structured so that individuals described in paragraph (1) may participate in
the program for up to—</text>
<subparagraph id="HFDE615F71DCD4258B8C32A201994B998"><enum>(A)</enum><text>8 weeks,
and</text>
</subparagraph><subparagraph id="H0D6949F51FEE468FB80876A1C518B139"><enum>(B)</enum><text>38 hours for each
such week;</text>
</subparagraph></paragraph><paragraph id="H04D145FDC41C44B085D31EE2B6467601"><enum>(5)</enum><text>a
State shall ensure that all individuals participating in the program are
covered by a workers’ compensation insurance program; and</text>
</paragraph><paragraph id="HFC17F9D80D884E9780350ADB9FFD2404"><enum>(6)</enum><text>the program meets
such other requirements as the Secretary of Labor determines to be appropriate
in guidance issued by the Secretary.</text>
</paragraph></subsection><subsection id="HCA9D5D44E52E480E9E1729347D62A165"><enum>(d)</enum><header>State
requirements</header>
<paragraph id="HAAD67A3312294ADEBCFA29369968CB8E"><enum>(1)</enum><header>Certification of
eligible employer</header><text>A State may certify as eligible for
participation in the program under this section any employer that meets the
eligibility criteria as established in guidance by the Secretary of Labor,
except that an employer shall not be certified as eligible for participation in
the program described under subsection (b)—</text>
<subparagraph id="H8F0A93E235964DEAB781CCD2685815F4"><enum>(A)</enum><text>if such
employer—</text>
<clause id="H53EBB2EC20A54BA9B884A8EC2BE1EB3A"><enum>(i)</enum><text>is a
Federal, State, or local government entity;</text>
</clause><clause id="H3E6568B7CB7140AE9917FB292A6FC749"><enum>(ii)</enum><text>would engage an
eligible individual in work activities under any employer’s grant, contract, or
subcontract with a Federal, State, or local government entity, except with
regard to work activities under any employer’s supply contract or
subcontract;</text>
</clause><clause id="H8520A261463B4BA59F5F0E94CCE26FB9"><enum>(iii)</enum><text>is
delinquent with respect to any taxes or employer contributions described under
sections 3301 and 3302(a)(1) of the Internal Revenue Code of 1986 or with
respect to any related reporting requirements;</text>
</clause><clause id="H4D91E7B5EB8749F6A36C920B0D8AEFA8"><enum>(iv)</enum><text>is
engaged in the business of supplying workers to other employers and would
participate in the program for the purpose of supplying individuals
participating in the program to other employers; or</text>
</clause><clause id="H5B3B5BFD221143DCAC77D4DD072CB79D"><enum>(v)</enum><text>has
previously participated in the program and the State has determined that such
employer has failed to abide by any of the requirements specified in
subsections (h), (i), or (j), or by any other requirements that the Secretary
may establish for employers under subsection (c)(6); and</text>
</clause></subparagraph><subparagraph id="H6DD6253806B34957AEE4A3D46B7634C3"><enum>(B)</enum><text>unless such
employer provides assurances that it has not displaced existing workers
pursuant to the requirements of subsection (h).</text>
</subparagraph></paragraph><paragraph id="H198DE71D01EB4684948914DCE26264F4"><enum>(2)</enum><header>Authorized
activities</header><text>Funds allotted to a State under this part for the
program—</text>
<subparagraph id="H6943DD26C2314BC4B521C245490FCC2C"><enum>(A)</enum><text>shall be used
to—</text>
<clause id="HC5E1E8A558C24D6981EBFAFA033B722B"><enum>(i)</enum><text>recruit employers
for participation in the program;</text>
</clause><clause id="H7886EA928C4D4135A97F7758DEE10444"><enum>(ii)</enum><text>review and
certify employers identified by eligible individuals seeking to participate in
the program;</text>
</clause><clause id="H62E0AF445EE2466593B9729739D7FE81"><enum>(iii)</enum><text>ensure that
reemployment and counseling services are available for program participants,
including services describing the program under subsection (b), prior to an
individual’s participation in such program;</text>
</clause><clause id="H211AEFC8F3784F19AA69BCC4076A2D2D"><enum>(iv)</enum><text>establish and
implement processes to monitor the progress and performance of individual
participants for the duration of the program;</text>
</clause><clause id="H1BB3C72D0D9742EA858052973EF67600"><enum>(v)</enum><text>prevent misuse of
the program; and</text>
</clause><clause id="H399D1243DD554E0CB479536C359994BF"><enum>(vi)</enum><text>pay
augmented wages to eligible individuals, if necessary, as described in
subsection (e); and</text>
</clause></subparagraph><subparagraph id="HDACE863D4BE045C3828542F85A1D8861"><enum>(B)</enum><text>may be
used—</text>
<clause id="HBD7FFD13FAB0445F802F59BF9C69720A"><enum>(i)</enum><text>to
pay workers’ compensation insurance premiums to cover all individuals
participating in the program, except that, if a State opts not to make such
payments directly to a State administered workers’ compensation program, the
State involved shall describe in the approved State plan the means by which
such State shall ensure workers’ compensation or equivalent coverage for all
individuals who participate in the program;</text>
</clause><clause id="H5FD66E3935D743E18598A91F7ED2C7E3"><enum>(ii)</enum><text>to
pay compensation to a participating individual that is in addition to the
amounts described in subsections (c)(1) and (e) as wages for work
performed;</text>
</clause><clause id="H5EE0F335696947E2AC79EFE8D50931BB"><enum>(iii)</enum><text>to
provide supportive services, such as transportation, child care, and dependent
care, that would enable individuals to participate in the program;</text>
</clause><clause id="H426B2143BF464A05B2332D323DB676A4"><enum>(iv)</enum><text>for
the administration and oversight of the program; and</text>
</clause><clause id="HA08ED0AAA8024A6480E552361EB5F47A"><enum>(v)</enum><text>to
fulfill additional program requirements included in the approved State
plan.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HD94D2C79A92544F29B0D92C64C7D61C5"><enum>(e)</enum><header>Payment of
augmented wages if necessary</header><text>In the event that the wages
described in subsection (c)(1) are not sufficient to equal or exceed the
minimum wages that are required to be paid by an employer under section 6(a)(1)
of the Fair Labor Standards Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/29/206">29 U.S.C. 206(a)(1)</external-xref>) or the applicable
State or local minimum wage law, whichever is higher, a State shall pay
augmented wages to a program participant in any amount necessary to cover the
difference between—</text>
<paragraph id="HD8EF2E581A114334AD76D53F74336F42"><enum>(1)</enum><text>such minimum wages
amount; and</text>
</paragraph><paragraph id="HF384E210E5E2424B810F09B742332976"><enum>(2)</enum><text>the wages payable
under subsection (c)(1).</text>
</paragraph></subsection><subsection id="HF03A324715FC4905A0D22D817C9590F3"><enum>(f)</enum><header>Effect of wages
on eligibility for other programs</header><text>None of the wages paid under
this section shall be considered as income for the purposes of determining
eligibility for and the amount of income transfer and in-kind aid furnished
under any Federal or federally assisted program based on need.</text>
</subsection><subsection id="H8BCD3B8CF9E44BDD914699D399391AC9"><enum>(g)</enum><header>Effect of wages,
work activities, and program participation on continuing eligibility for
emergency unemployment compensation</header><text>Any wages paid under this
section and any additional wages paid by an employer to an individual described
in subsection (c)(1), and any work activities performed by such individual as a
participant in the program, shall not be construed so as to render such
individual ineligible to receive emergency unemployment compensation under
title IV of the Supplemental Appropriations Act, 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/252">Public Law 110–252</external-xref>; 26
U.S.C. 3304 note).</text>
</subsection><subsection id="H376C3A7C5DC84E9183C710F4CC83087A"><enum>(h)</enum><header>Nondisplacement
of employees</header>
<paragraph id="H60C3CBA358A24FF9824219F045727A3B"><enum>(1)</enum><header>Prohibition</header><text>An
employer shall not use a program participant to displace (including a partial
displacement, such as a reduction in the hours of non-overtime work, wages, or
employment benefits) any current employee (as of the date of the
participation).</text>
</paragraph><paragraph id="HA8D41532D55C435F977A1C2652581D06"><enum>(2)</enum><header>Other
prohibitions</header><text>An employer shall not permit a program participant
to perform work activities related to any job for which—</text>
<subparagraph id="H09A894B9AC5C44D4888108A683EC6308"><enum>(A)</enum><text>any other
individual is on layoff from the same or any substantially equivalent
position;</text>
</subparagraph><subparagraph id="H6661F4A824724790B3242E39A834110A"><enum>(B)</enum><text>the employer has
terminated the employment of any employee or otherwise reduced the workforce of
the employer with the intention of filling or partially filling the vacancy so
created with the work activities to be performed by a program
participant;</text>
</subparagraph><subparagraph id="HA161A47707D848AD87E0F58263A561FA"><enum>(C)</enum><text>there is a strike
or lock out at the worksite that is the participant’s place of employment;
or</text>
</subparagraph><subparagraph id="H50EC4CA8E2D842D1ABE67EA49859BBD8"><enum>(D)</enum><text>the job is created
in a manner that will infringe in any way upon the promotional opportunities of
currently employed individuals (as of the date of the participation).</text>
</subparagraph></paragraph></subsection><subsection id="HABAD3ABD58D8444EB121A8FC1DF9BCF0"><enum>(i)</enum><header>Prohibition on
impairment of contracts</header><text>An employer shall not, by means of
assigning work activities under this section, impair an existing contract for
services or a collective bargaining agreement, and no such activity that would
be inconsistent with the terms of a collective bargaining agreement shall be
undertaken without the written concurrence of the labor organization that is
signatory to the collective bargaining agreement.</text>
</subsection><subsection id="H10A71271189542E4AEC909EEBCF6A203"><enum>(j)</enum><header>Limitation on
employer participation</header><text>If, after 24 weeks of participation in the
program, an employer has not made an offer of suitable long-term employment to
any individual described under subsection (c)(1) who was placed with such
employer and has completed the program, a State shall bar such employer from
further participation in the program. States may impose additional conditions
on participating employers to ensure that an appropriate number of participants
receive offers of suitable long-term employment.</text>
</subsection><subsection id="H61F453D7A31548988644EA69FF93C8D9"><enum>(k)</enum><header>Failure To meet
program requirements</header><text>If a State makes a determination based on
information provided to the State, or acquired by the State by means of its
administration and oversight functions, that a participating employer under
this section has violated a requirement of this section, the State shall bar
such employer from further participation in the program. The State shall
establish a process whereby an individual described in subsection (c)(1), or
any other affected individual or entity, may file a complaint with the State
relating to a violation of any requirement or prohibition under this
section.</text>
</subsection><subsection id="H9C00A47B228F4F2BA4D60A4796FEBE5A"><enum>(l)</enum><header>Participant
option To terminate participation in bridge to work program</header>
<paragraph id="H67CE7F7051EC4A5286A5AE198EE8EF5A"><enum>(1)</enum><header>Termination</header><text>An
individual who is participating in a program described in subsection (b) may
opt to discontinue participation in such program.</text>
</paragraph><paragraph id="HA8FFC3F29EA74835BC3135B37415FF3A"><enum>(2)</enum><header>Continued
eligibility for emergency unemployment compensation</header><text>An individual
who opts to discontinue participation in such program, is terminated from such
program by a participating employer, or who has completed participation in such
program, and who continues to meet the eligibility requirements for emergency
unemployment compensation under title IV of the Supplemental Appropriations
Act, 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/252">Public Law 110–252</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/26/3304">26 U.S.C. 3304</external-xref> note), shall receive emergency
unemployment compensation payments with respect to subsequent weeks of
unemployment, to the extent that amounts remain in the account established for
such individual under section 4002(b) of such Act or to the extent that such
individual commences receiving the amounts described in subsections (c), (d),
or (e) of such section, respectively.</text>
</paragraph></subsection><subsection id="H6B5B4B2A69FB47A5834B2972A9AE711D"><enum>(m)</enum><header>Effect of other
laws</header><text>Unless otherwise provided in this section, nothing in this
section shall be construed to alter or affect the rights or obligations under
any Federal, State, or local laws with respect to any individual described in
subsection (c)(1) and with respect to any participating employer under this
section.</text>
</subsection><subsection id="H79011DC2DAB1436B8FBFC70668037BBF"><enum>(n)</enum><header>Treatment of
payments</header><text>All wages or other payments to an individual under this
section shall be treated as payments of unemployment compensation for purposes
of section 209 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/409">42 U.S.C. 409</external-xref>) and for purposes of
subtitle A and sections 3101, 3111, and 3301 of the Internal Revenue Code of
1986.</text>
</subsection></section><section id="H19207680359C4B4E853132FD6C82E6EB"><enum>325.</enum><header>Wage
insurance</header>
<subsection id="H1997DD057D7A42179493C3170015AFE4"><enum>(a)</enum><header>In
general</header><text>A State may use the funds allotted to the State under
this part to provide a wage insurance program for EUC claimants.</text>
</subsection><subsection id="H8305919F2AD04FD091A0D798D43486DE"><enum>(b)</enum><header>Benefits</header><text>The
wage insurance program provided under this section may use funds allotted to
the State under this part to pay, for a period not to exceed 2 years, to a
worker described in subsection (c), up to 50 percent of the difference
between—</text>
<paragraph id="HD34398DA5F7645EBB8D54C27A3F7B32A"><enum>(1)</enum><text>the wages received
by the worker at the time of separation; and</text>
</paragraph><paragraph id="H6CE51071F57440D8A3B1EAC9CD40C42D"><enum>(2)</enum><text>the wages received
by the worker for reemployment.</text>
</paragraph></subsection><subsection id="H679C7342FAAB448281579DB186E0C299"><enum>(c)</enum><header>Individual
eligibility</header><text>The benefits described in subsection (b) may be paid
to an individual who is an EUC claimant at the time such individual obtains
reemployment and who—</text>
<paragraph id="H8FF982C0C4F14A42A5EA072F9905C398"><enum>(1)</enum><text>is at least 50
years of age;</text>
</paragraph><paragraph id="H21628E07390640348C158398DF668120"><enum>(2)</enum><text>earns not more
than $50,000 per year in wages from reemployment;</text>
</paragraph><paragraph id="H97E17EB0215E40F699ADF0042E35C6A4"><enum>(3)</enum><text>is employed on a
full-time basis as defined by the law of the State; and</text>
</paragraph><paragraph id="H0401062E730C4289B02C2D85AB19E8ED"><enum>(4)</enum><text>is not employed by
the employer from which the individual was last separated.</text>
</paragraph></subsection><subsection id="HEF7FB63DDC1943BEBA07493E6D28E499"><enum>(d)</enum><header>Total amount of
payments</header><text>A State shall establish a maximum amount of payments per
individual for purposes of payments described in subsection (b) during the
eligibility period described in such subsection.</text>
</subsection><subsection id="HBB0DE5AA5534417AB21D86E0D2D9B802"><enum>(e)</enum><header>Non-Discrimination
regarding wages</header><text>An employer shall not pay a worker described in
subsection (c) less than such employer pays to a regular worker in the same or
substantially equivalent position.</text>
</subsection></section><section id="HE4B77515F4B744CEA74DA4EB81655381"><enum>326.</enum><header>Enhanced
reemployment strategies</header>
<subsection id="HEEC9517E953D4446A4837E6ECE6B1576"><enum>(a)</enum><header>In
general</header><text>A State may use funds allotted under this part to provide
a program of enhanced reemployment services to EUC claimants. In addition to
the provision of services to such claimants, the program may include the
provision of reemployment services to individuals who are unemployed and have
exhausted their rights to emergency unemployment compensation under title IV of
the Supplemental Appropriations Act, 2008, (<external-xref legal-doc="public-law" parsable-cite="pl/110/252">Public Law 110–252</external-xref>; 26 U.S.C. 3304
note). The program shall provide reemployment services that are more intensive
than the reemployment services provided by the State prior to the receipt of
the allotment under this part.</text>
</subsection><subsection id="H6D882F399AB944D6AC956031980B9B93"><enum>(b)</enum><header>Types of
services</header><text>The enhanced reemployment services described in
subsection (a) may include services such as—</text>
<paragraph id="H369A912E21A94D21AE6A12B28353C352"><enum>(1)</enum><text>assessments,
counseling, and other intensive services that are provided by staff on a
one-to-one basis and may be customized to meet the reemployment needs of EUC
claimants and individuals described in subsection (a);</text>
</paragraph><paragraph id="H73311578A59A44668492C64BC3FED693"><enum>(2)</enum><text>comprehensive
assessments designed to identify alternative career paths;</text>
</paragraph><paragraph id="HE1D54FA381D54457B1E5ADEE13960EC6"><enum>(3)</enum><text>case
management;</text>
</paragraph><paragraph id="H895AFF4A0821483EB4ACD66C8B55EA4C"><enum>(4)</enum><text>reemployment
services that are provided more frequently and more intensively than such
reemployment services have previously been provided by the State; and</text>
</paragraph><paragraph id="HB71998D706F6412BA676AB7CFB9A1742"><enum>(5)</enum><text>services that are
designed to enhance communication skills, interviewing skills, and other skills
that would assist in obtaining reemployment.</text>
</paragraph></subsection></section><section id="H75954DDDEC8046228F4291923FF8421E"><enum>327.</enum><header>Self-employment
programs</header><text display-inline="no-display-inline">A State may use funds
allotted to the State under this part, in an amount specified under an approved
State plan, for the administrative costs associated with starting up the
self-employment assistance program described in section 4001(i) of the
Supplemental Appropriations Act, 2008, (<external-xref legal-doc="public-law" parsable-cite="pl/110/252">Public Law 110–252</external-xref>; 26 U.S.C. 3304
note).</text>
</section><section id="H3A86331EFC2448339DFBDBCD9F7EF3B8"><enum>328.</enum><header>Additional
innovative programs</header>
<subsection id="H696C0E8DBADC4C499EFA8F3F6A956576"><enum>(a)</enum><header>In
general</header><text>A State may use funds allotted under this part to provide
a program for innovative activities, which use a strategy that is different
from the reemployment strategies described in sections 324–327 and which are
designed to facilitate the reemployment of EUC claimants. In addition to the
provision of activities to such claimants, the program may include the
provision of activities to individuals who are unemployed and have exhausted
their rights to emergency unemployment compensation under title IV of the
Supplemental Appropriations Act, 2008, (<external-xref legal-doc="public-law" parsable-cite="pl/110/252">Public Law 110–252</external-xref>; 26 U.S.C. 3304
note).</text>
</subsection><subsection id="H04587CECCC8D4C7E8D480262D14295B2"><enum>(b)</enum><header>Conditions</header><text>The
innovative activities approved in accordance with subsection (a)—</text>
<paragraph id="H4742567C76B4489A82E3DFF98A45F835"><enum>(1)</enum><text>shall directly
benefit EUC claimants and, if applicable, individuals described in subsection
(a), either as a benefit paid to such claimant or individual or as a service
provided to such claimant or individual;</text>
</paragraph><paragraph id="HB0686509196C4DEFB85E1032235EE589"><enum>(2)</enum><text>shall not result
in a reduction in the duration or amount of, emergency unemployment
compensation for which EUC claimants would otherwise be eligible;</text>
</paragraph><paragraph id="H97C7A02C7E4C42D495CA1B8E1B690184"><enum>(3)</enum><text>shall not include
a reduction in the duration, amount of or eligibility for regular compensation
or extended benefits;</text>
</paragraph><paragraph id="H6AE29EA43F624BF08EB1BB7B3407D9C0"><enum>(4)</enum><text>shall not be used
to displace (including a partial displacement, such as a reduction in the hours
of non-overtime work, wages, or employment benefits) any currently employed
employee (as of the date of the participation) or allow a program participant
to perform work activities related to any job for which—</text>
<subparagraph id="H13A5B8566B344D458CD0AB6B7CAA6AC5"><enum>(A)</enum><text>any other
individual is on layoff from the same or any substantially equivalent
job;</text>
</subparagraph><subparagraph id="HCAC84865031440D19ECFB0C5A137AD33"><enum>(B)</enum><text>the employer has
terminated the employment of any regular employee or otherwise reduced the
workforce of the employer with the intention of filling or partially filling
the vacancy so created with the work activities to be performed by a program
participant;</text>
</subparagraph><subparagraph id="H7680B9B16DAC47D999AA0A7A8E10840F"><enum>(C)</enum><text>there is a strike
or lock out at the worksite that is the participant’s place of employment;
or</text>
</subparagraph><subparagraph id="HAC131784A76447D4BC757972552F75A0"><enum>(D)</enum><text>the job is created
in a manner that will infringe in any way upon the promotional opportunities of
currently employed individuals (as of the date of the participation);
and</text>
</subparagraph></paragraph><paragraph id="HAA5E38074CB643E9BFCBD48B1DC26D51"><enum>(5)</enum><text>shall not be in
violation of any Federal, State, or local law.</text>
</paragraph></subsection></section><section id="HCCC7CD1B33BD4387A858501CB8AD2515"><enum>329.</enum><header>Guidance and
additional requirements</header><text display-inline="no-display-inline">The
Secretary of Labor may establish through guidance, without regard to the
requirements of <external-xref legal-doc="usc" parsable-cite="usc/5/553">section 553</external-xref> of title 5, United States Code, such additional
requirements, including requirements regarding the allotment, recapture, and
reallotment of funds, and reporting requirements, as the Secretary determines
to be necessary to ensure fiscal integrity, effective monitoring, and
appropriate and prompt implementation of the activities under this Act.</text>
</section><section id="HAD9899BF88BA412FB85FCCB908C0F2B6"><enum>330.</enum><header>Report of
information and evaluations to Congress and the public</header><text display-inline="no-display-inline">The Secretary of Labor shall provide to the
appropriate Committees of the Congress and make available to the public the
information reported pursuant to section 329 and the evaluations of activities
carried out pursuant to the funds reserved under section 322(a)(1).</text>
</section><section id="HE4F92AE070B547D890099240EB0B312E"><enum>331.</enum><header>State</header><text display-inline="no-display-inline">For purposes of this part, the term
<term>State</term> has the meaning given that term in section 205 of the
Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304
note).</text>
</section></part><part id="HD2D4C9EF7CFE4FF59F4F83AD1FA5378A"><enum>III</enum><header>Short-Time
compensation program</header>
<section id="HDBC5B01D53D14B78B163DFF0863B040E"><enum>341.</enum><header>Temporary
financing of short-time compensation payments in states with programs in
law</header>
<subsection id="H7804A40285C94890A05B6E8C7574B160"><enum>(a)</enum><header>Payments to
states</header>
<paragraph id="HF2EDC3FAB0574008AD57899454230A69"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (3), there shall be paid to a State
an amount equal to 100 percent of the amount of short-time compensation paid
under a short-time compensation program (as defined in section 3306(v) of the
Internal Revenue Code of 1986) under the provisions of the State law.</text>
</paragraph><paragraph id="H6D12F133507049DBA21BB72A51401178"><enum>(2)</enum><header>Terms of
payments</header><text>Payments made to a State under paragraph (1) shall be
payable by way of reimbursement in such amounts as the Secretary estimates the
State will be entitled to receive under this section for each calendar month,
reduced or increased, as the case may be, by any amount by which the Secretary
finds that the Secretary’s estimates for any prior calendar month were greater
or less than the amounts which should have been paid to the State. Such
estimates may be made on the basis of such statistical, sampling, or other
method as may be agreed upon by the Secretary and the State agency of the State
involved.</text>
</paragraph><paragraph id="HD0DA2759DA594CF49264C07132663D88"><enum>(3)</enum><header>Limitations on
payments</header>
<subparagraph id="H1754CA8271124C61A3C0B930FC600C98"><enum>(A)</enum><header>General payment
limitations</header><text>No payments shall be made to a State under this
section for short-time compensation paid to an individual by the State during a
benefit year in excess of 26 times the amount of regular compensation
(including dependents’ allowances) under the State law payable to such
individual for a week of total unemployment.</text>
</subparagraph><subparagraph id="HD36A21D98EC343AD81E47979955F76E4"><enum>(B)</enum><header>Employer
limitations</header><text>No payments shall be made to a State under this
section for benefits paid to an individual by the State under a short-time
compensation program if such individual is employed by the participating
employer on a seasonal, temporary, or intermittent basis.</text>
</subparagraph></paragraph></subsection><subsection id="H57522C5199084BD2B5D620B9B2BF54BE"><enum>(b)</enum><header>Applicability</header>
<paragraph id="H0EA1D4675D8E4B5699031389A719E3FC"><enum>(1)</enum><header>In
general</header><text>Payments to a State under subsection (a) shall be
available for weeks of unemployment—</text>
<subparagraph id="HD252172DFE434A3B894FA6BCCBEBC807"><enum>(A)</enum><text>beginning on or
after the date of the enactment of this Act; and</text>
</subparagraph><subparagraph id="H85C81D5F77FB497AB05F8B952727CF7E"><enum>(B)</enum><text>ending on or
before the date that is 3 years and 6 months after the date of the enactment of
this Act.</text>
</subparagraph></paragraph><paragraph id="H06E5F2475B4C4614AC758254268ADEF1"><enum>(2)</enum><header>Three-year
funding limitation for combined payments under this section and section
343</header><text>States may receive payments under this section and section
343 with respect to a total of not more than 156 weeks.</text>
</paragraph></subsection><subsection id="HCBDC46CF34DC43EF8D5CB1F48DF91A61"><enum>(c)</enum><header>Two-Year
transition period for existing programs</header><text>During any period that
the transition provision under section 341(a)(3) is applicable to a State with
respect to a short-time compensation program, such State shall be eligible for
payments under this section. Subject to paragraphs (1)(B) and (2) of subsection
(b), if at any point after the date of the enactment of this Act the State
enacts a State law providing for the payment of short-time compensation under a
short-time compensation program that meets the definition of such a program
under <external-xref legal-doc="usc" parsable-cite="usc/26/3306">section 3306(v)</external-xref> of the Internal Revenue Code of 1986, the State shall be
eligible for payments under this section after the effective date of such
enactment.</text>
</subsection><subsection id="HBA9A68CF62B244578FA0BB4AC7CC5C4A"><enum>(d)</enum><header>Funding and
certifications</header>
<paragraph id="H7393491C957848F19610EFA58E07FFE2"><enum>(1)</enum><header>Funding</header><text>There
are appropriated, out of moneys in the Treasury not otherwise appropriated,
such sums as may be necessary for purposes of carrying out this section.</text>
</paragraph><paragraph id="H97E5E38D25144CC392D7BFA27E94AD5C"><enum>(2)</enum><header>Certifications</header><text>The
Secretary shall from time to time certify to the Secretary of the Treasury for
payment to each State the sums payable to such State under this section.</text>
</paragraph></subsection><subsection id="HD634BB43630343F2A65FBDEA55DD5A6C"><enum>(e)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H05CD891573E24C4AA7BC7A55D2190B09"><enum>(1)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Labor.</text>
</paragraph><paragraph id="HDB1EAA34657F477CA71A6034D9CF0985"><enum>(2)</enum><header>State; state
agency; state law</header><text>The terms <term>State</term>, <term>State
agency</term>, and <term>State law</term> have the meanings given those terms
in section 205 of the Federal-State Extended Unemployment Compensation Act of
1970 (<external-xref legal-doc="usc" parsable-cite="usc/26/3304">26 U.S.C. 3304</external-xref> note).</text>
</paragraph></subsection></section><section id="HE81E211AB4DE461697646A7E167FC77B"><enum>342.</enum><header>Temporary
financing of short-time compensation agreements</header>
<subsection id="HF9BD312A11C544ACA003FCE824CD0001"><enum>(a)</enum><header>Federal-State
agreements</header>
<paragraph id="HF3F7F47C6A024F0CBFB92289A385117F"><enum>(1)</enum><header>In
general</header><text>Any State which desires to do so may enter into, and
participate in, an agreement under this section with the Secretary provided
that such State’s law does not provide for the payment of short-time
compensation under a short-time compensation program (as defined in section
3306(v) of the Internal Revenue Code of 1986).</text>
</paragraph><paragraph id="HFB30AAD602784D64AA5CD92C8BDD36BF"><enum>(2)</enum><header>Ability to
terminate</header><text>Any State which is a party to an agreement under this
section may, upon providing 30 days’ written notice to the Secretary, terminate
such agreement.</text>
</paragraph></subsection><subsection id="HD26D9CB7500C41BF9C06FC0EAE24D619"><enum>(b)</enum><header>Provisions of
Federal-State agreement</header>
<paragraph id="H3F880DE72E4D48589AABCE4E25CB869B"><enum>(1)</enum><header>In
general</header><text>Any agreement under this section shall provide that the
State agency of the State will make payments of short-time compensation under a
plan approved by the State. Such plan shall provide that payments are made in
accordance with the requirements under section 3306(v) of the Internal Revenue
Code of 1986.</text>
</paragraph><paragraph id="HDB7A7ACBE9274DE793548AE620D8446C"><enum>(2)</enum><header>Limitations on
plans</header>
<subparagraph id="HDC1661DB19A04971B09DA4028C91161A"><enum>(A)</enum><header>General payment
limitations</header><text>A short-time compensation plan approved by a State
shall not permit the payment of short-time compensation to an individual by the
State during a benefit year in excess of 26 times the amount of regular
compensation (including dependents’ allowances) under the State law payable to
such individual for a week of total unemployment.</text>
</subparagraph><subparagraph id="HCD65AB769F4943658D9DB35F5087E8F0"><enum>(B)</enum><header>Employer
limitations</header><text>A short-time compensation plan approved by a State
shall not provide payments to an individual if such individual is employed by
the participating employer on a seasonal, temporary, or intermittent
basis.</text>
</subparagraph></paragraph><paragraph id="HA6D8AD7FEA9F45A7A9EAC82A0B4D2C55"><enum>(3)</enum><header>Employer payment
of costs</header><text>Any short-time compensation plan entered into by an
employer must provide that the employer will pay the State an amount equal to
one-half of the amount of short-time compensation paid under such plan. Such
amount shall be deposited in the State’s unemployment fund and shall not be
used for purposes of calculating an employer’s contribution rate under section
3303(a)(1) of the Internal Revenue Code of 1986.</text>
</paragraph></subsection><subsection id="HC86614A756B843B7BC4061863719C359"><enum>(c)</enum><header>Payments to
States</header>
<paragraph id="HAE48D143E71E42CBA756C3EEC55FD3C3"><enum>(1)</enum><header>In
general</header><text>There shall be paid to each State with an agreement under
this section an amount equal to—</text>
<subparagraph id="H104ACD6AEAF6406B9CE5EE6912D592D8"><enum>(A)</enum><text>one-half of the
amount of short-time compensation paid to individuals by the State pursuant to
such agreement; and</text>
</subparagraph><subparagraph id="H6EAC3E94F83D4D6ABAD242D51891B434"><enum>(B)</enum><text>any additional
administrative expenses incurred by the State by reason of such agreement (as
determined by the Secretary).</text>
</subparagraph></paragraph><paragraph id="HB9908F6B0F42488AA52CE645F9A967D9"><enum>(2)</enum><header>Terms of
payments</header><text>Payments made to a State under paragraph (1) shall be
payable by way of reimbursement in such amounts as the Secretary estimates the
State will be entitled to receive under this section for each calendar month,
reduced or increased, as the case may be, by any amount by which the Secretary
finds that the Secretary’s estimates for any prior calendar month were greater
or less than the amounts which should have been paid to the State. Such
estimates may be made on the basis of such statistical, sampling, or other
method as may be agreed upon by the Secretary and the State agency of the State
involved.</text>
</paragraph><paragraph id="H2DADC39FB37D42D584B086B89AEAEC2C"><enum>(3)</enum><header>Funding</header><text>There
are appropriated, out of moneys in the Treasury not otherwise appropriated,
such sums as may be necessary for purposes of carrying out this section.</text>
</paragraph><paragraph id="HB320A0C5851C4DB782CA05BF63D5E3A2"><enum>(4)</enum><header>Certifications</header><text>The
Secretary shall from time to time certify to the Secretary of the Treasury for
payment to each State the sums payable to such State under this section.</text>
</paragraph></subsection><subsection id="HC49AE601913C40BA8B076A069B9EC246"><enum>(d)</enum><header>Applicability</header>
<paragraph id="HCE450135212049BDBFC42078A154F2BF"><enum>(1)</enum><header>In
general</header><text>An agreement entered into under this section shall apply
to weeks of unemployment—</text>
<subparagraph id="HB21649C3BFAF4AF4A8F7EDFF09C0C367"><enum>(A)</enum><text>beginning on or
after the date on which such agreement is entered into; and</text>
</subparagraph><subparagraph id="H80275579753B4688A917DCB37D37D94A"><enum>(B)</enum><text>ending on or
before the date that is 2 years and 13 weeks after the date of the enactment of
this Act.</text>
</subparagraph></paragraph><paragraph id="HE9F17FDFDAA54F54A662D60BD5259CE4"><enum>(2)</enum><header>Two-year funding
limitation</header><text>States may receive payments under this section with
respect to a total of not more than 104 weeks.</text>
</paragraph></subsection><subsection id="H1E1FF7E5C76941A29AFC9CDB6A63E0F1"><enum>(e)</enum><header>Special
rule</header><text>If a State has entered into an agreement under this section
and subsequently enacts a State law providing for the payment of short-time
compensation under a short-time compensation program that meets the definition
of such a program under <external-xref legal-doc="usc" parsable-cite="usc/26/3306">section 3306(v)</external-xref> of the Internal Revenue Code of 1986,
the State—</text>
<paragraph id="HBFA596D402234C96ACDBEBDA6BD35E87"><enum>(1)</enum><text>shall not be
eligible for payments under this section for weeks of unemployment beginning
after the effective date of such State law; and</text>
</paragraph><paragraph id="HD80D05027A4E462BBA03D8190C90F227"><enum>(2)</enum><text>subject to
paragraphs (1)(B) and (2) of section 342(b), shall be eligible to receive
payments under section 342 after the effective date of such State law.</text>
</paragraph></subsection><subsection id="HA3D9A6113A9D42D09CA1F5E7ED3DAF92"><enum>(f)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H754EE32047374E059A3A29F59B2DE1A8"><enum>(1)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Labor.</text>
</paragraph><paragraph id="H842B2F8113A14C5C9753519B37EF3F6D"><enum>(2)</enum><header>State; state
agency; state law</header><text>The terms <term>State</term>, <term>State
agency</term>, and <term>State law</term> have the meanings given those terms
in section 205 of the Federal-State Extended Unemployment Compensation Act of
1970 (<external-xref legal-doc="usc" parsable-cite="usc/26/3304">26 U.S.C. 3304</external-xref> note).</text>
</paragraph></subsection></section><section id="H469801AFE37C4511809623E3DF904C11"><enum>343.</enum><header>Grants for
short-time compensation programs</header>
<subsection id="HF48D4E27FEBB40C691F60369E9794557"><enum>(a)</enum><header>Grants</header>
<paragraph id="H0E2E8C61B3284CC082A4E5F8057B96B6"><enum>(1)</enum><header>For
implementation or improved administration</header><text>The Secretary shall
award grants to States that enact short-time compensation programs (as defined
in subsection (i)(2)) for the purpose of implementation or improved
administration of such programs.</text>
</paragraph><paragraph id="H51DDB76FD29A49E89BEC7BEF15936914"><enum>(2)</enum><header>For promotion
and enrollment</header><text>The Secretary shall award grants to States that
are eligible and submit plans for a grant under paragraph (1) for such States
to promote and enroll employers in short-time compensation programs (as so
defined).</text>
</paragraph><paragraph id="H56E9301B36EF4B51BD816B9DB565AE38"><enum>(3)</enum><header>Eligibility</header>
<subparagraph id="H2E7316E5FCFE4A7B9B0D5A23254B5CC0"><enum>(A)</enum><header>In
general</header><text>The Secretary shall determine eligibility criteria for
the grants under paragraph (1) and (2).</text>
</subparagraph><subparagraph id="HDD998262BFAB41EFB311E5DBDA9C6F0D"><enum>(B)</enum><header>Clarification</header><text>A
State administering a short-time compensation program, including a program
being administered by a State that is participating in the transition under the
provisions of sections 341(a)(3) and 342(c), that does not meet the definition
of a short-time compensation program under section 3306(v) of the Internal
Revenue Code of 1986, and a State with an agreement under section 343, shall
not be eligible to receive a grant under this section until such time as the
State law of the State provides for payments under a short-time compensation
program that meets such definition and such law.</text>
</subparagraph></paragraph></subsection><subsection id="H383075C01F0B41A19F00365D7AFF1A15"><enum>(b)</enum><header>Amount of
grants</header>
<paragraph id="HDCBEF0B17AD9499D8689899B88744066"><enum>(1)</enum><header>In
general</header><text>The maximum amount available for making grants to a State
under paragraphs (1) and (2) shall be equal to the amount obtained by
multiplying $700,000,000 (less the amount used by the Secretary under
subsection (e)) by the same ratio as would apply under subsection (a)(2)(B) of
section 903 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1103">42 U.S.C. 1103</external-xref>) for purposes of
determining such State’s share of any excess amount (as described in subsection
(a)(1) of such section) that would have been subject to transfer to State
accounts, as of October 1, 2013, under the provisions of subsection (a) of such
section.</text>
</paragraph><paragraph id="H752F799DEF2740DB9F5A3DD338176E7C"><enum>(2)</enum><header>Amount available
for different grants</header><text>Of the maximum incentive payment determined
under paragraph (1) with respect to a State—</text>
<subparagraph id="H5A6AC3FB5DD84DC496C5B9BB945D7138"><enum>(A)</enum><text>one-third shall be
available for a grant under subsection (a)(1); and</text>
</subparagraph><subparagraph id="HD6BCF80A4DE042878E5A7B6E887C69DB"><enum>(B)</enum><text>two-thirds shall
be available for a grant under subsection (a)(2).</text>
</subparagraph></paragraph></subsection><subsection id="H88CC0BA8043348E99FACBA3EC52CDF72"><enum>(c)</enum><header>Grant
application and disbursal</header>
<paragraph id="H06CC1221813F48B49375800FDFF81A4F"><enum>(1)</enum><header>Application</header><text>Any
State seeking a grant under paragraph (1) or (2) of subsection (a) shall submit
an application to the Secretary at such time, in such manner, and complete with
such information as the Secretary may require. In no case may the Secretary
award a grant under this section with respect to an application that is
submitted after December 31, 2014.</text>
</paragraph><paragraph id="HE7D6413941284E8AB650F3986D4D5136"><enum>(2)</enum><header>Notice</header><text>The
Secretary shall, within 30 days after receiving a complete application, notify
the State agency of the State of the Secretary’s findings with respect to the
requirements for a grant under paragraph (1) or (2) (or both) of subsection
(a).</text>
</paragraph><paragraph id="H9CCF954E7BAB440C92D7810C293DD668"><enum>(3)</enum><header>Certification</header><text>If
the Secretary finds that the State law provisions meet the requirements for a
grant under subsection (a), the Secretary shall thereupon make a certification
to that effect to the Secretary of the Treasury, together with a certification
as to the amount of the grant payment to be transferred to the State account in
the Unemployment Trust Fund (as established in section 904(a) of the Social
Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1104">42 U.S.C. 1104(a)</external-xref>)) pursuant to that finding. The Secretary of
the Treasury shall make the appropriate transfer to the State account within 7
days after receiving such certification.</text>
</paragraph><paragraph id="H1E3148560A774DA6B36C56DD9AA0B3C7"><enum>(4)</enum><header>Requirement</header><text>No
certification of compliance with the requirements for a grant under paragraph
(1) or (2) of subsection (a) may be made with respect to any State
whose—</text>
<subparagraph id="H090722A85B3F40889419CAC2BE0461E8"><enum>(A)</enum><text>State law is not
otherwise eligible for certification under section 303 of the Social Security
Act (<external-xref legal-doc="usc" parsable-cite="usc/42/503">42 U.S.C. 503</external-xref>) or approvable under section 3304 of the Internal Revenue
Code of 1986; or</text>
</subparagraph><subparagraph id="H18A32B012FD14BAAB11D3984FD7FD834"><enum>(B)</enum><text>short-time
compensation program is subject to discontinuation or is not scheduled to take
effect within 12 months of the certification.</text>
</subparagraph></paragraph></subsection><subsection id="H09FE24AC3515481B87BC5B1DA1277BCF"><enum>(d)</enum><header>Use of
funds</header><text>The amount of any grant awarded under this section shall be
used for the implementation of short-time compensation programs and the overall
administration of such programs and the promotion and enrollment efforts
associated with such programs, such as through—</text>
<paragraph id="HFB35250EF0D24CBF9FD60EF3637FD2E4"><enum>(1)</enum><text>the creation or
support of rapid response teams to advise employers about alternatives to
layoffs;</text>
</paragraph><paragraph id="H2C549E6D42734F5D81F145815EA71113"><enum>(2)</enum><text>the provision of
education or assistance to employers to enable them to assess the feasibility
of participating in short-time compensation programs; and</text>
</paragraph><paragraph id="HC566602588E94E57B9E11678E666EA3A"><enum>(3)</enum><text>the development or
enhancement of systems to automate—</text>
<subparagraph id="H8F2121359D0D4CC681E932AA569ABAE1"><enum>(A)</enum><text>the submission and
approval of plans; and</text>
</subparagraph><subparagraph id="H4717CC5F4A18453EA671B1523EBB7051"><enum>(B)</enum><text>the filing and
approval of new and ongoing short-time compensation claims.</text>
</subparagraph></paragraph></subsection><subsection id="HEFD9DE650EED4D6C9BBA5D68E51A786C"><enum>(e)</enum><header>Administration</header><text>The
Secretary is authorized to use 0.25 percent of the funds available under
subsection (g) to provide for outreach and to share best practices with respect
to this section and short-time compensation programs.</text>
</subsection><subsection id="HD8094BDC841247FC9E2FEE9568814DB0"><enum>(f)</enum><header>Recoupment</header><text>The
Secretary shall establish a process under which the Secretary shall recoup the
amount of any grant awarded under paragraph (1) or (2) of subsection (a) if the
Secretary determines that, during the 5-year period beginning on the first date
that any such grant is awarded to the State, the State—</text>
<paragraph id="H40BCFE0B78824F43ACBD78DF7115C912"><enum>(1)</enum><text>terminated the
State’s short-time compensation program; or</text>
</paragraph><paragraph id="H22DC31AFC53E4322AD274B70BB2DA6F2"><enum>(2)</enum><text>failed to meet
appropriate requirements with respect to such program (as established by the
Secretary).</text>
</paragraph></subsection><subsection id="HBFEDC5CA5F38439CADF72E45869DEDE3"><enum>(g)</enum><header>Funding</header><text>There
are appropriated, out of moneys in the Treasury not otherwise appropriated, to
the Secretary, $700,000,000 to carry out this section, to remain available
without fiscal year limitation.</text>
</subsection><subsection id="H5279A0FED4DF41338452010BAFD048EA"><enum>(h)</enum><header>Reporting</header><text>The
Secretary may establish reporting requirements for States receiving a grant
under this section in order to provide oversight of grant funds.</text>
</subsection><subsection id="H57700DD77B9F479191A651CC03FF9E3C"><enum>(i)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H3590D2B73898441AB62C9A83B06ABE56"><enum>(1)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of Labor.</text>
</paragraph><paragraph id="H739A2A439BE74846BBDDA219F76160FB"><enum>(2)</enum><header>Short-time
compensation program</header><text>The term <quote>short-time compensation
program</quote> has the meaning given such term in section 3306(v) of the
Internal Revenue Code of 1986.</text>
</paragraph><paragraph id="H3A37B747EA98415482E41245C5A120C7"><enum>(3)</enum><header>State; State
agency; State law</header><text>The terms <quote>State</quote>, <quote>State
agency</quote>, and <quote>State law</quote> have the meanings given those
terms in section 205 of the Federal-State Extended Unemployment Compensation
Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/26/3304">26 U.S.C. 3304</external-xref> note).</text>
</paragraph></subsection></section><section id="H781A7C5608194222BD5EE97FD3851108"><enum>344.</enum><header>Assistance and
guidance in implementing programs</header>
<subsection id="H1014FB675D234724B316922413EA0404"><enum>(a)</enum><header>In
general</header><text>In order to assist States in establishing, qualifying,
and implementing short-time compensation programs (as defined in section
3306(v) of the Internal Revenue Code of 1986), the Secretary of Labor (in this
section referred to as the <quote>Secretary</quote>) shall—</text>
<paragraph id="H299C881433254E45B7934447058BD0E6"><enum>(1)</enum><text>develop model
legislative language which may be used by States in developing and enacting
such programs and periodically review and revise such model legislative
language;</text>
</paragraph><paragraph id="HF0897A5AC6A0433DAF7837B1B824F695"><enum>(2)</enum><text>provide technical
assistance and guidance in developing, enacting, and implementing such
programs;</text>
</paragraph><paragraph id="H855D18732F04490B98192BFF095A6D5E"><enum>(3)</enum><text>establish
reporting requirements for States, including reporting on—</text>
<subparagraph id="H55F3E6EB7C2D4295A4775B4A32097CA4"><enum>(A)</enum><text>the number of
estimated averted layoffs;</text>
</subparagraph><subparagraph id="H634171C8DF22422EAA543D5DD6EA7093"><enum>(B)</enum><text>the number of
participating employers and workers; and</text>
</subparagraph><subparagraph id="H26A8732E85624F22A7C1786235E4FFCF"><enum>(C)</enum><text>such other items
as the Secretary of Labor determines are appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="HD06E1B4A4C9A479ABECD3E2A0E8C1BBF"><enum>(b)</enum><header>Model language
and guidance</header><text>The model language and guidance developed under
subsection (a) shall allow sufficient flexibility by States and participating
employers while ensuring accountability and program integrity.</text>
</subsection><subsection id="HA39A0A1937244FA5A2D525C18DA8464E"><enum>(c)</enum><header>Consultation</header><text>In
developing the model legislative language and guidance under subsection (a),
and in order to meet the requirements of subsection (b), the Secretary shall
consult with employers, labor organizations, State workforce agencies, and
other program experts.</text>
</subsection></section><section id="H10E35381C90541FAA4526C4102F5B7B1"><enum>345.</enum><header>Reports</header>
<subsection id="HC7E88FC1B01E431C8299E6E501591A07"><enum>(a)</enum><header>Reports</header>
<paragraph id="HDE6C0D02DC384144A873DB3DE883109A"><enum>(1)</enum><header>In
general</header><text>Not later than 4 years after the date of the enactment of
this Act, the Secretary of Labor shall submit to Congress and to the President
a report or reports on the implementation of the provisions of this Act.</text>
</paragraph><paragraph id="H9852B8C8F0F341968C71F1C13CF57FFC"><enum>(2)</enum><header>Requirements</header><text>Any
report under paragraph (1) shall at a minimum include the following:</text>
<subparagraph id="HD45DD91FFD6D4DAA8E642F2283E60407"><enum>(A)</enum><text>A description of
best practices by States and employers in the administration, promotion, and
use of short-time compensation programs (as defined in section 3306(v) of the
Internal Revenue Code of 1986).</text>
</subparagraph><subparagraph id="H90DA6F6364C24EA18173CD4FB1B6AC99"><enum>(B)</enum><text>An analysis of the
significant challenges to State enactment and implementation of short-time
compensation programs.</text>
</subparagraph><subparagraph id="H58ACCBC363374A529B5633F90BDBCAF4"><enum>(C)</enum><text>A survey of
employers in States that have not enacted a short-time compensation program or
entered into an agreement with the Secretary on a short-time compensation plan
to determine the level of interest among such employers in participating in
short-time compensation programs.</text>
</subparagraph></paragraph></subsection><subsection id="HE8E9AD0C4F954D98A349699A005C5995"><enum>(b)</enum><header>Funding</header><text>There
are appropriated, out of any moneys in the Treasury not otherwise appropriated,
to the Secretary of Labor, $1,500,000 to carry out this section, to remain
available without fiscal year limitation.</text>
</subsection></section></part></subtitle><subtitle id="H939C823098C34265979CC84C366E4E35"><enum>B</enum><header>Long-Term
unemployed hiring preferences</header>
<section id="H96BEA43D456F4A5ABE648522659513C9"><enum>351.</enum><header>Long-term
unemployed workers work opportunity tax credits</header>
<subsection id="H80D182666CDE408E87B380D5471ADE7D"><enum>(a)</enum><header>In
general</header><text>Paragraph (3) of section 51(b) of the Internal Revenue
Code is amended by inserting <quote>$10,000 per year in the case of any
individual who is a qualified long-term unemployed individual by reason of
subsection (d)(11), and</quote> before <quote>$12,000 per year</quote>.</text>
</subsection><subsection id="H1DFCD78BB56F4B0BA9CEC812CD3E1702"><enum>(b)</enum><header>Long-Term
unemployed individuals tax credits</header><text>Subsection (d) of section 51
of the Internal Revenue Code is amended—</text>
<paragraph id="HECFBB2D6C7CA4A6EB3B1F56A808ECE3E"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>or</quote> at the end of subparagraph (H), by striking the
period at the end of subparagraph (I) and inserting <quote>, or</quote>, and by
inserting after subparagraph (I) the following:</text>
<quoted-block display-inline="no-display-inline" id="H53766A48D7B848E5904C0A351FBD3BBA" style="OLC">
<subparagraph id="H7586B0C97969417E9E4A3726FDA18520"><enum>(J)</enum><text display-inline="yes-display-inline">a qualified long-term unemployed
individual.</text>
</subparagraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HE0DCB9DECB504B66B9C99728BFB5B91E"><enum>(2)</enum><text>by redesignating
paragraphs (11) through (14) as paragraphs (12) through (15), respectively, and
by inserting after paragraph (10) the following new paragraph:</text>
<quoted-block id="HFF5D6AAD4FF543A6BF2AE1D7383A2B2D" style="OLC">
<paragraph id="HDC0BE37425A54D72A848B9B4205C60CE"><enum>(11)</enum><header>Qualified
long-term unemployed individual</header>
<subparagraph id="H1152AF4919654442AB028D8BFBC1FEFE"><enum>(A)</enum><header>In
general</header><text>The term <quote>qualified long-term unemployed
individual</quote> means any individual who was not a student for at least 6
months during the 1-year period ending on the hiring date and is certified by
the designated local agency as having aggregate periods of unemployment during
the 1-year period ending on the hiring date which equal or exceed 6
months.</text>
</subparagraph><subparagraph id="H6610E2CDD9DD4DC7888F2C8067CF5457"><enum>(B)</enum><header>Student</header><text>For
purposes of this subsection, a student is an individual enrolled at least
half-time in a program that leads to a degree, certificate, or other recognized
educational credential for at least 6 months whether or not consecutive during
the 1-year period ending on the hiring
date.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H30FAC9E3277D4BAF851A93AEF345EFB2"><enum>(c)</enum><header>Simplified
certification</header><text>Section 51(d) of the Internal Revenue Code, as
amended by subsection (b), is amended by adding at the end the following new
paragraph:</text>
<quoted-block id="H97CC3B08EBE64611BAC6FAAF32A9C99B" style="OLC">
<paragraph id="H4B55503253394141941787583086D82A"><enum>(16)</enum><header>Credit allowed
for qualified long-term unemployed individuals</header>
<subparagraph id="HCA2D86490D6346C0A574E92BA8A2A6EB"><enum>(A)</enum><header>In
general</header><text>Any qualified long-term unemployed individual under
paragraph (11) will be treated as certified by the designated local agency as
having aggregate periods of unemployment if the individual is certified by the
designated local agency as being in receipt of unemployment compensation under
State or Federal law for not less than 6 months during the 1-year period ending
on the hiring date.</text>
</subparagraph><subparagraph id="HDE48F725F67B46B8A57D6D57FCA79FF0"><enum>(B)</enum><header>Regulatory
authority</header><text display-inline="yes-display-inline">The Secretary in
his discretion may provide alternative methods for
certification.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HB0895B8259134DE5840131C1C8FB13E6"><enum>(d)</enum><header>Credit made
available to tax-Exempt employers in certain
circumstances</header><text>Section 3111(e) of the Internal Revenue Code is
amended—</text>
<paragraph id="H3C43D2C9267A4211B41B1B48ECA64DD7"><enum>(1)</enum><text>in the heading for
the subsection is amended by inserting <quote><header-in-text level="subsection" style="OLC">and qualified long-Term unemployed
individuals</header-in-text></quote> after <quote><header-in-text level="subsection" style="OLC">qualified
veterans</header-in-text></quote>,</text>
</paragraph><paragraph id="H8B9360AE8073439F9F8F9324C50BC24C"><enum>(2)</enum><text>in paragraph (1)
by inserting <quote>or qualified long-term unemployed individual</quote> after
<quote>qualified veteran</quote>,</text>
</paragraph><paragraph id="H463D64DFEC374DF8B1E3BFFE2A221838"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (2) by inserting <quote>and
qualified long-term unemployed individuals</quote> after <quote>qualified
veterans</quote>,</text>
</paragraph><paragraph id="H542264EECF21499CAC46F864320349DC"><enum>(4)</enum><text display-inline="yes-display-inline">in paragraph (3)(C) by inserting <quote>and
qualified long-term unemployed individual, as the case may be,</quote> after
<quote>qualified veteran</quote>,</text>
</paragraph><paragraph id="H1623C41E5F3345EBB18329590C7FBBF9"><enum>(5)</enum><text display-inline="yes-display-inline">in paragraph (4) by inserting <quote>or
qualified long-term unemployed individual</quote> after <quote>qualified
veteran</quote> both places it appears, and</text>
</paragraph><paragraph id="H29A6230AF23E48EFB49F4361AD2704C7"><enum>(6)</enum><text>in paragraph (5)
by striking <quote>and</quote> at the end of subparagraph (A), by striking the
period at the end of subparagraph (B) and inserting <quote>, and</quote>, and
by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H204572496AB445D1AB886828563BD378" style="OLC">
<subparagraph id="HCD905DDD64694260ACB10F645C3C76FB"><enum>(C)</enum><text display-inline="yes-display-inline">the term <quote>qualified long-term
unemployed individual</quote> has meaning given such term by section
51(d)(11).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H6D5B2C0A7C284F5988DC5C7B65366D8A"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
individuals who begin work for the employer after the date of the enactment of
this Act.</text>
</subsection></section></subtitle><subtitle id="H5A2C5F8789E34636AF4871FC6DEA4E73"><enum>C</enum><header>Pathways Back to
Work</header>
<section id="H18734791D3A8481D975878D4453775CF"><enum>361.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote><short-title>Pathways Back to Work Act
of 2013</short-title></quote>.</text>
</section><section id="H1BBEA538510F4BBBB7BAF824A053BD5C"><enum>362.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">There is
authorized to be appropriated to the Secretary of Labor $5,000,000,000 to carry
out this subtitle.</text>
</section><section id="H22A395F50E6849CA9995F50CC5B42B03"><enum>363.</enum><header>Availability of
funds</header>
<subsection id="H6300DF468E6841EE99C77E4F3A60D3EF"><enum>(a)</enum><header>In
general</header><text>Of the amounts available under section 362(b), the
Secretary of Labor shall—</text>
<paragraph id="HBB6A7DDC16364B94ADBBB7320E49A9EE"><enum>(1)</enum><text>allot
$2,000,000,000 in accordance with section 364 to provide subsidized employment
to unemployed, low-income adults;</text>
</paragraph><paragraph id="H400779E501234472A31B8150CBF84378"><enum>(2)</enum><text>allot
$1,500,000,000 in accordance with section 365 to provide summer and year-round
employment opportunities to low-income youth; and</text>
</paragraph><paragraph id="H0B9905872AA54841B8C633BC173FA899"><enum>(3)</enum><text>award
$1,500,000,000 in competitive grants in accordance with section 366 to local
entities to carry out work-based training and other work-related and
educational strategies and activities of demonstrated effectiveness to
unemployed, low-income adults and low-income youth to provide the skills and
assistance needed to obtain employment.</text>
</paragraph></subsection><subsection id="HD47781C815F64BC69024CF603C2FDE14"><enum>(b)</enum><header>Reservation</header><text>The
Secretary of Labor may reserve not more than 1 percent of amounts available
under each of paragraphs (1) through (3) of subsection (a) for the costs of
technical assistance, evaluations and Federal administration of this
Act.</text>
</subsection><subsection id="H2BA16C58DDA347F6AC0C7957FD72B31E"><enum>(c)</enum><header>Period of
availability</header><text>The amounts appropriated under this Act shall be
available for obligation by the Secretary of Labor until December 31, 2014, and
shall be available for expenditure by grantees and subgrantees until September
30, 2015.</text>
</subsection></section><section id="HC8D1923C588A40248581847DAF3FA668"><enum>364.</enum><header>Subsidized
employment for unemployed, low-income adults</header>
<subsection id="H0EAEF484E39D48EC8A902D860039D0AF"><enum>(a)</enum><header>In
general</header>
<paragraph id="HB456B5568B9A486C8AE5C451A200990B"><enum>(1)</enum><header>Allotments</header><text>From
the funds available under section 363(a)(1), the Secretary of Labor shall make
an allotment under subsection (b) to each State that has a State plan approved
under subsection (c) and to each outlying area and Native American grantee
under section 166 of the Workforce Investment Act of 1998 that meets the
requirements of this section, for the purpose of providing subsidized
employment opportunities to unemployed, low-income adults.</text>
</paragraph><paragraph id="H78E19CCAF6E547BDAD935D3A1027C205"><enum>(2)</enum><header>Guidance</header><text>Not
later than 30 days after the date of enactment of this Act, the Secretary of
Labor, in coordination with the Secretary of Health and Human Services, shall
issue guidance regarding the implementation of this section. Such guidance
shall, consistent with this section, include procedures for the submission and
approval of State and local plans and the allotment and allocation of funds,
including reallotment and reallocation of such funds, that promote the
expeditious and effective implementation of the activities authorized under
this section.</text>
</paragraph></subsection><subsection id="H845B383A088948FCB26F33B0CFCA5C2A"><enum>(b)</enum><header>State
allotments</header>
<paragraph id="H5E7EC4298E56486DACB681B2DF4A4B6E"><enum>(1)</enum><header>Reservations for
outlying areas and tribes</header><text>Of the funds described subsection
(a)(1), the Secretary shall reserve—</text>
<subparagraph id="H79E9947D27474C429D1F9DF3BFC20CA3"><enum>(A)</enum><text>not more than
one-quarter of one percent to provide assistance to outlying areas to provide
subsidized employment to low-income adults who are unemployed; and</text>
</subparagraph><subparagraph id="H101E408A6BD94F489386FA1B551191A9"><enum>(B)</enum><text>1.5 percent to
provide assistance to grantees of the Native American programs under section
166 of the Workforce Investment Act of 1998 to provide subsidized employment to
low-income adults who are unemployed.</text>
</subparagraph></paragraph><paragraph id="H62172033774F464BA4F96D98A2BE1F29"><enum>(2)</enum><header>States</header><text>After
determining the amounts to be reserved under paragraph (1), the Secretary of
Labor shall allot the remainder of the amounts described in subsection (a)(1)
among the States as follows—</text>
<subparagraph id="H8E37534355FD44CFA3A6719CF9F8310F"><enum>(A)</enum><text>one-third shall be
allotted on the basis of the relative number of unemployed individuals in areas
of substantial unemployment in each State, compared to the total number of
unemployed individuals in areas of substantial unemployment in all
States;</text>
</subparagraph><subparagraph id="H66943B8B32374B80A714CAF2654980FE"><enum>(B)</enum><text>one-third shall be
allotted on the basis of the relative excess number of unemployed individuals
in each State, compared to the total excess number of unemployed individuals in
all States; and</text>
</subparagraph><subparagraph id="H5883884509D744779366515972511889"><enum>(C)</enum><text>one-third shall be
allotted on the basis of the relative number of disadvantaged adults and youth
in each State, compared to the total number of disadvantaged adults and youth
in all States.</text>
</subparagraph></paragraph><paragraph id="H3DC5FA72786D4FB197691B7EC6580C4A"><enum>(3)</enum><header>Definitions</header><text>For
purposes of the formula described in paragraph (2)—</text>
<subparagraph id="HBDE7A38391624C29B8D5AA464E553E70"><enum>(A)</enum><header>Area of
substantial unemployment</header><text>The term <quote>area of substantial
unemployment</quote> means any contiguous area with a population of at least
10,000 and that has an average rate of unemployment of at least 6.5 percent for
the most recent 12 months, as determined by the Secretary.</text>
</subparagraph><subparagraph id="H197459DC93674D78A2E690391FBB27AF"><enum>(B)</enum><header>Disadvantaged
adults and youth</header><text>The term <quote>disadvantaged adults and
youth</quote> means an individual who is age 16 and older (subject to section
132(b)(1)(B)(v)(I) of the Workforce Investment Act of 1998) who received an
income, or is a member of a family that received a total family income, that,
in relation to family size, does not exceed the higher of—</text>
<clause id="HED789AECD07044A58D8815055C116E98"><enum>(i)</enum><text>the
poverty line; or</text>
</clause><clause id="HF2ABA4CFA8AE4C32A457D889C025B35D"><enum>(ii)</enum><text>70
percent of the lower living standard income level.</text>
</clause></subparagraph><subparagraph id="HDEF474922CE1427195FEB262D8F76A89"><enum>(C)</enum><header>Excess
number</header><text>The term <quote>excess number</quote> means, used with
respect to the excess number of unemployed individuals within a State, the
higher of—</text>
<clause id="H398A0BADCE514EADBA0255F762C31BC4"><enum>(i)</enum><text>the
number that represents the number of unemployed individuals in excess of 4.5
percent of the civilian labor force in the State; or</text>
</clause><clause id="H1C98FF664A0744A0B0A01139AF5A6A96"><enum>(ii)</enum><text>the
number that represents the number of unemployed individuals in excess of 4.5
percent of the civilian labor force in areas of substantial unemployment in
such State.</text>
</clause></subparagraph></paragraph><paragraph id="HFE7718EA9A82425FB8B6EF2517C33545"><enum>(4)</enum><header>Reallotment</header><text>If
the Governor of a State does not submit a State plan by the time specified in
subsection (c), or a State does not receive approval of a State plan, the
amount the State would have been eligible to receive pursuant to the formula
under paragraph (2) shall be added to the amounts available for the competitive
grants under section 363(a)(3).</text>
</paragraph></subsection><subsection id="H6B0991384604425284F342AB08383970"><enum>(c)</enum><header>State
plan</header>
<paragraph id="HEF8637568BEE4BA9994F3BB4E3669EBA"><enum>(1)</enum><header>In
general</header><text>For a State to be eligible to receive an allotment of the
funds under subsection (b), the Governor of the State shall submit to the
Secretary of Labor a State plan in such form and containing such information as
the Secretary may require. At a minimum, such plan shall include—</text>
<subparagraph id="H84B264960DBF42DD933DF298F91D247E"><enum>(A)</enum><text>a description of
the strategies and activities to be carried out by the State, in coordination
with employers in the State, to provide subsidized employment opportunities to
unemployed, low-income adults, including strategies relating to the level and
duration of subsidies consistent with subsection (e)(2);</text>
</subparagraph><subparagraph id="H1B5EDC695E674E72909AB7926D846E42"><enum>(B)</enum><text>a description of
the requirements the State will apply relating to the eligibility of
unemployed, low-income adults, consistent with section 368(6), for subsidized
employment opportunities, which may include criteria to target assistance to
particular categories of such adults, such as individuals with disabilities or
individuals who have exhausted all rights to unemployment compensation;</text>
</subparagraph><subparagraph id="H945FC1E7F9D6416597C5090E11016443"><enum>(C)</enum><text>a description of
how the funds allotted to provide subsidized employment opportunities will be
administered in the State and local areas, in accordance with subsection
(d);</text>
</subparagraph><subparagraph id="H8FB4249F88C540B79D14F01E41FDD90B"><enum>(D)</enum><text>a description of
the performance outcomes to be achieved by the State through the activities
carried out under this section and the processes the State will use to track
performance, consistent with guidance provided by the Secretary of Labor
regarding such outcomes and processes and with section 367(b);</text>
</subparagraph><subparagraph id="H6D50368AAAC7458AA121B02706BEAFC1"><enum>(E)</enum><text>a description of
the coordination of activities to be carried out with the funds provided under
this section with activities under title I of the Workforce Investment Act of
1998, the TANF program under part A of title IV of the Social Security Act, and
other appropriate Federal and State programs that may assist unemployed,
low-income adults in obtaining and retaining employment;</text>
</subparagraph><subparagraph id="HC585A6405293490A88A9F4E92AAC3175"><enum>(F)</enum><text>a description of
the timelines for implementation of the activities described in subparagraph
(A), and the number of unemployed, low-income adults expected to be placed in
subsidized employment by quarter;</text>
</subparagraph><subparagraph id="H1EA6D66479694328B5ECF1220616D168"><enum>(G)</enum><text>assurances that
the State will report such information as the Secretary of Labor may require
relating to fiscal, performance and other matters that the Secretary determines
is necessary to effectively monitor the activities carried out under this
section; and</text>
</subparagraph><subparagraph id="H4948880B76AF4AC8A4DEC43F8985DBDC"><enum>(H)</enum><text>assurances that
the State will ensure compliance with the labor standards and protections
described in section 367(a) of this Act.</text>
</subparagraph></paragraph><paragraph id="H18774A88747644629ADE4E6BB61EF776"><enum>(2)</enum><header>Submission and
approval of state plan</header>
<subparagraph id="HBC4F725841584AD2A77C9F81F8493F37"><enum>(A)</enum><header>Submission with
other plans</header><text>The State plan described in this subsection may be
submitted in conjunction with the State plan modification or request for funds
required under section 365, and may be submitted as a modification to a State
plan that has been approved under section 112 of the Workforce Investment Act
of 1998.</text>
</subparagraph><subparagraph id="HEB301EFF57074D4899E0F43F049F5E6E"><enum>(B)</enum><header>Submission and
approval</header>
<clause id="HD00EED0580AD421E895F0DCCCCEAB1B7"><enum>(i)</enum><header>Submission</header><text>The
Governor shall submit a plan to the Secretary of Labor not later than 75 days
after the enactment of this Act and the Secretary of Labor shall make a
determination regarding the approval or disapproval of such plans not later
than 45 days after the submission of such plan. If the plan is disapproved, the
Secretary of Labor may provide a reasonable period of time in which a
disapproved plan may be amended and resubmitted for approval.</text>
</clause><clause id="H8893B7027D9B4DCBA5CFD925B8E14201"><enum>(ii)</enum><header>Approval</header><text>The
Secretary of Labor shall approve a State plan that the Secretary determines is
consistent with requirements of this section and reasonably appropriate and
adequate to carry out the purposes of this section. If the plan is approved,
the Secretary shall allot funds to States within 30 days after such
approval.</text>
</clause></subparagraph></paragraph><paragraph id="H0B88958E4E594027AB4032B102CBFFEF"><enum>(3)</enum><header>Modifications to
state plan</header><text>The Governor may submit a modification to a State plan
under this subsection consistent with the requirements of this section.</text>
</paragraph></subsection><subsection id="H2FA844790E614CACA6ABFDE75118F9AE"><enum>(d)</enum><header>Administration
within the state</header>
<paragraph id="H9B0263DFC2AD4338A2C6CC3D6B4E46B0"><enum>(1)</enum><header>Option</header><text>The
State may administer the funds for activities under this section
through—</text>
<subparagraph id="HE289EC0E5BBC46B59C72E7A4F86534C8"><enum>(A)</enum><text>the State and
local entities responsible for the administration of the adult formula program
under title I–B of the Workforce Investment Act of 1998;</text>
</subparagraph><subparagraph id="H20C6C71ADC1341E2A86305DF01DF3EB5"><enum>(B)</enum><text>the entities
responsible for the administration of the TANF program under part A of title IV
of the Social Security Act; or</text>
</subparagraph><subparagraph id="HBA48407F63BA482A81D4F8B3686C6706"><enum>(C)</enum><text>a combination of
the entities described in subparagraphs (A) and (B).</text>
</subparagraph></paragraph><paragraph id="HE6F359CE0C474A24B1726D49AD775981"><enum>(2)</enum><header>Within-state
allocations</header>
<subparagraph id="HA908A73B2C584BE48FE794CDD14D8E5B"><enum>(A)</enum><header>Allocation of
funds</header><text>The Governor may reserve up to 5 percent of the allotment
under subsection (b)(2) for administration and technical assistance, and shall
allocate the remainder, in accordance with the option elected under paragraph
(1)—</text>
<clause id="H8CCCD28A2B8A456DA70FD12F3F651ADD"><enum>(i)</enum><text>among local
workforce investment areas within the State in accordance with the factors
identified in subsection (b)(2), except that for purposes of such allocation
references to a State in such paragraph shall be deemed to be references to a
local workforce investment area and references to all States shall be deemed to
be references to all local areas in the State involved, of which not more than
10 percent of the funds allocated to a local workforce investment area may be
used for the costs of administration of this section; or</text>
</clause><clause id="H4391C0A064D747928F6B88A1306A5635"><enum>(ii)</enum><text>through entities
responsible for the administration of the TANF program under part A of title IV
of the Social Security Act in local areas in such manner as the State may
determine appropriate.</text>
</clause></subparagraph><subparagraph id="H30415DA954D24DCFAEE6676AF2BEE859"><enum>(B)</enum><header>Local
plans</header>
<clause id="HF26D454742BA4B7CA7064BD3CB805DD2"><enum>(i)</enum><header>In
general</header><text>In the case where the responsibility for the
administration of activities is to be carried out by the entities described
under paragraph (1)(A), in order to receive an allocation under subparagraph
(A)(i), a local workforce investment board, in partnership with the chief
elected official of the local workforce investment area involved, shall submit
to the Governor a local plan for the use of such funds under this section not
later than 30 days after the submission of the State plan. Such local plan may
be submitted as a modification to a local plan approved under section 118 of
the Workforce Investment Act of 1998.</text>
</clause><clause id="H532B59733DD747F48390230A4BE2AD2D"><enum>(ii)</enum><header>Contents</header><text>The
local plan described in clause (i) shall contain the elements described in
subparagraphs (A)–(H) of subsection (c)(1), as applied to the local workforce
investment area.</text>
</clause><clause id="H14A534A531FA49EEA2764A4091F37D0E"><enum>(iii)</enum><header>Approval</header><text>The
Governor shall approve or disapprove the local plan submitted under clause (i)
within 30 days after submission, or if later, 30 days after the approval of the
State plan. The Governor shall approve the plan unless the Governor determines
that the plan is inconsistent with requirements of this section or is not
reasonably appropriate and adequate to carry out the purposes of this section.
If the Governor has not made a determination within the period specified under
the first sentence of this clause, the plan shall be considered approved. If
the plan is disapproved, the Governor may provide a reasonable period of time
in which a disapproved plan may be amended and resubmitted for approval. The
Governor shall allocate funds to local workforce investment areas with approved
plans within 30 days after such approval.</text>
</clause></subparagraph><subparagraph id="HA28086AAFD34496DB1249F21DC259818"><enum>(C)</enum><header>Reallocation of
funds to local areas</header><text>If a local workforce investment board does
not submit a local plan by the time specified in subparagraph (B) or the
Governor does not approve a local plan, the amount the local workforce
investment area would have been eligible to receive pursuant to the formula
under subparagraph (A)(i) shall be allocated to local workforce investment
areas that receive approval of the local plan under subparagraph (B). Such
reallocations shall be made in accordance with the relative share of the
allocations to such local workforce investment areas applying the formula
factors described under subparagraph (A)(i).</text>
</subparagraph></paragraph></subsection><subsection id="H6D5E65A1F19445DB87DC46DD3E93412F"><enum>(e)</enum><header>Use of
funds</header>
<paragraph id="H42CB467C9EF84864B454C146DDBCA7A3"><enum>(1)</enum><header>In
general</header><text>The funds under this section shall be used to provide
subsidized employment for unemployed, low-income adults. The State and local
entities described in subsection (d)(1) may use a variety of strategies in
recruiting employers and identifying appropriate employment opportunities, with
a priority to be provided to employment opportunities likely to lead to
unsubsidized employment in emerging or in-demand occupations in the local area.
Funds under this section may be used to provide support services, such as
transportation and child care, that are necessary to enable the participation
of individuals in subsidized employment opportunities.</text>
</paragraph><paragraph id="H34183132931E4602B97FD55A0109E92A"><enum>(2)</enum><header>Level of subsidy
and duration</header><text>The States or local entities described in subsection
(d)(1) may determine the percentage of the wages and costs of employing a
participant for which an employer may receive a subsidy with the funds provided
under this section, and the duration of such subsidy, in accordance with
guidance issued by the Secretary. The State or local entities may establish
criteria for determining such percentage or duration using appropriate factors
such as the size of the employer and types of employment.</text>
</paragraph></subsection><subsection id="HB539DC1D057A42F491E9A35D294B814F"><enum>(f)</enum><header>Coordination of
Federal administration</header><text>The Secretary of Labor shall administer
this section in coordination with the Secretary of Health and Human Services to
ensure the effective implementation of this section.</text>
</subsection></section><section id="H2E46800100F7423797F71D0FA6A21D38"><enum>365.</enum><header>Summer
employment and year-round employment opportunities for low-income
youth</header>
<subsection id="HC9937E4E7E384EF6BF6CA40AF6DC2235"><enum>(a)</enum><header>In
general</header><text>From the funds available under section 363(a)(2), the
Secretary of Labor shall make an allotment under subsection (c) to each State
that has a State plan modification (or other form of request for funds
specified in guidance under subsection (b)) approved under subsection (d) and
to each outlying area and Native American grantee under section 166 of the
Workforce Investment Act of 1998 that meets the requirements of this section,
for the purpose of providing summer employment and year-round employment
opportunities to low-income youth.</text>
</subsection><subsection id="H316AAC0E6DD7448A8BAA5D50A161C3FC"><enum>(b)</enum><header>Guidance and
application of requirements</header>
<paragraph id="HA7B84E2221C74CE1923A287042047626"><enum>(1)</enum><header>Guidance</header><text>Not
later than 20 days after the date of enactment of this Act, the Secretary of
Labor shall issue guidance regarding the implementation of this section. Such
guidance shall, consistent with this section, include procedures for the
submission and approval of State plan modifications, or for forms of requests
for funds by the State as may be identified in such guidance, local plan
modifications, or other forms of requests for funds from local workforce
investment areas as may be identified in such guidance, and the allotment and
allocation of funds, including reallotment and reallocation of such funds, that
promote the expeditious and effective implementation of the activities
authorized under this section.</text>
</paragraph><paragraph id="HA44159EE01114FE2A44D6BF7DBDF2E27"><enum>(2)</enum><header>Requirements</header><text>Except
as otherwise provided in the guidance described in paragraph (1) and in this
section and other provisions of this Act, the funds provided for activities
under this section shall be administered in accordance with subtitles B and E
of title I of the Workforce Investment Act of 1998 relating to youth
activities.</text>
</paragraph></subsection><subsection id="H1AF81A59ACE84963949C9F3FB2ACB7DA"><enum>(c)</enum><header>State
allotments</header>
<paragraph id="H66F1DD87C5BB400D83D8BB8065377649"><enum>(1)</enum><header>Reservations for
outlying areas and tribes</header><text>Of the funds described subsection (a),
the Secretary shall reserve—</text>
<subparagraph id="H6CA895AB34CC4F27B00286A798D2B4B6"><enum>(A)</enum><text>not more than
one-quarter of one percent to provide assistance to outlying areas to provide
summer and year-round employment opportunities to low-income youth; and</text>
</subparagraph><subparagraph id="HDB8031ABFB114E3A80F05CBC549F4F82"><enum>(B)</enum><text>1.5 percent to
provide assistance to grantees of the Native American programs under section
166 of the Workforce Investment Act of 1998 to provide summer and year-round
employment opportunities to low-income youth.</text>
</subparagraph></paragraph><paragraph id="H5A4BE81175AC4B699EF8D4580004CC6A"><enum>(2)</enum><header>States</header><text>After
determining the amounts to be reserved under paragraph (1), the Secretary of
Labor shall allot the remainder of the amounts described in subsection (a)
among the States in accordance with the factors described in section 364(b)(2)
of this Act.</text>
</paragraph><paragraph id="HE037CAE38E894C9DACC0D127E5A1CF8F"><enum>(3)</enum><header>Reallotment</header><text>If
the Governor of a State does not submit a State plan modification or other
request for funds specified in guidance under subsection (b) by the time
specified in subsection (d)(2)(B), or a State does not receive approval of such
State plan modification or request, the amount the State would have been
eligible to receive pursuant to the formula under paragraph (2) shall be added
to the amounts available for the competitive grants under section
363(a)(3).</text>
</paragraph></subsection><subsection id="H707088E9D3394CB595DF100F308702AE"><enum>(d)</enum><header>State plan
modification</header>
<paragraph id="HEC62B148DC7B4FE99241E8EE6E150B49"><enum>(1)</enum><header>In
general</header><text>For a State to be eligible to receive an allotment of the
funds under subsection (c), the Governor of the State shall submit to the
Secretary of Labor a modification to a State plan approved under section 112 of
the Workforce Investment Act of 1998, or other request for funds described in
guidance in subsection (b), in such form and containing such information as the
Secretary may require. At a minimum, such plan modification or request shall
include—</text>
<subparagraph id="H2D42E7C7BA89492DBBD1A9BF99C7DC6B"><enum>(A)</enum><text>a description of
the strategies and activities to be carried out to provide summer employment
opportunities and year-round employment opportunities, including the linkages
to educational activities, consistent with subsection (f);</text>
</subparagraph><subparagraph id="H859BFFBB0D9E4D5AA35D5D0B5696CCDA"><enum>(B)</enum><text>a description of
the requirements the States will apply relating to the eligibility of
low-income youth, consistent with section 368(4), for summer employment
opportunities and year-round employment opportunities, which may include
criteria to target assistance to particular categories of such low-income
youth, such as youth with disabilities, consistent with subsection (f);</text>
</subparagraph><subparagraph id="H98CD9CA6552A4F0A8364458E42BD31E2"><enum>(C)</enum><text>a description of
the performance outcomes to be achieved by the State through the activities
carried out under this section and the processes the State will use to track
performance, consistent with guidance provided by the Secretary of Labor
regarding such outcomes and processes and with section 367(b);</text>
</subparagraph><subparagraph id="H184F28685CEB4A5AAFD1B06575E137F5"><enum>(D)</enum><text>a description of
the timelines for implementation of the activities described in subparagraph
(A), and the number of low-income youth expected to be placed in summer
employment opportunities, and year-round employment opportunities,
respectively, by quarter;</text>
</subparagraph><subparagraph id="H7009B99089DB42A59F029FCE5A59BD1E"><enum>(E)</enum><text>assurances that
the State will report such information as the Secretary may require relating to
fiscal, performance and other matters that the Secretary determines is
necessary to effectively monitor the activities carried out under this section;
and</text>
</subparagraph><subparagraph id="H8ECF42BECBB74024B4372B46558E9FEE"><enum>(F)</enum><text>assurances that
the State will ensure compliance with the labor standards protections described
in section 367(a).</text>
</subparagraph></paragraph><paragraph id="HD8BB1D34D9DB4D5B9582E84B13A5B664"><enum>(2)</enum><header>Submission and
approval of state plan modification or request</header>
<subparagraph id="H0DDC22F59C6445229C108EA00E794B12"><enum>(A)</enum><header>Submission</header><text>The
Governor shall submit a modification of the State plan or other request for
funds described in guidance in subsection (b) to the Secretary of Labor not
later than 30 days after the issuance of such guidance. The State plan
modification or request for funds required under this subsection may be
submitted in conjunction with the State plan required under section 364.</text>
</subparagraph><subparagraph id="H79AC84999C3245B4A7E920A2B49FE023"><enum>(B)</enum><header>Approval</header><text>The
Secretary of Labor shall approve the plan or request submitted under
subparagraph (A) within 30 days after submission, unless the Secretary
determines that the plan or request is inconsistent with the requirements of
this section. If the Secretary has not made a determination within 30 days, the
plan or request shall be considered approved. If the plan or request is
disapproved, the Secretary may provide a reasonable period of time in which a
disapproved plan or request may be amended and resubmitted for approval. If the
plan or request is approved, the Secretary shall allot funds to States within
30 days after such approval.</text>
</subparagraph></paragraph><paragraph id="H13ADA40AA21E4AF3B133FD41AFF91268"><enum>(3)</enum><header>Modifications to
state plan or request</header><text>The Governor may submit further
modifications to a State plan or request for funds identified under subsection
(b) to carry out this section in accordance with the requirements of this
section.</text>
</paragraph></subsection><subsection id="H6539FCBEB8C24E0385AE45C53389025F"><enum>(e)</enum><header>Within-State
allocation and administration</header>
<paragraph id="HCDFB4F1B47DD48A8B621198D9B8B7F3F"><enum>(1)</enum><header>In
general</header><text>Of the funds allotted to the State under subsection (c),
the Governor—</text>
<subparagraph id="H848CC0F539CE48C785F0F0DDF3843523"><enum>(A)</enum><text>may reserve up to
5 percent of the allotment for administration and technical assistance;
and</text>
</subparagraph><subparagraph id="H5FFB526F1E534CDAA33C5F196D71D0D4"><enum>(B)</enum><text>shall allocate the
remainder of the allotment among local workforce investment areas within the
State in accordance with the factors identified in section 364(b)(2), except
that for purposes of such allocation references to a State in such paragraph
shall be deemed to be references to a local workforce investment area and
references to all States shall be deemed to be references to all local areas in
the State involved. Not more than 10 percent of the funds allocated to a local
workforce investment area may be used for the costs of administration of this
section.</text>
</subparagraph></paragraph><paragraph id="H1E91021FAA4F42949EAF1AD1FB8D2E05"><enum>(2)</enum><header>Local
plan</header>
<subparagraph id="HBD9FDDBB38944F399EEADC41C86E02A5"><enum>(A)</enum><header>Submission</header><text>In
order to receive an allocation under paragraph (1)(B), the local workforce
investment board, in partnership with the chief elected official for the local
workforce investment area involved, shall submit to the Governor a modification
to a local plan approved under section 118 of the Workforce Investment Act of
1998, or other form of request for funds as may be identified in the guidance
issued under subsection (b), not later than 30 days after the submission by the
State of the modification to the State plan or other request for funds
identified in subsection (b), describing the strategies and activities to be
carried out under this section.</text>
</subparagraph><subparagraph id="HD30467C98FF5431DA3ED5700D815A16C"><enum>(B)</enum><header>Approval</header><text>The
Governor shall approve the local plan submitted under subparagraph (A) within
30 days after submission, unless the Governor determines that the plan is
inconsistent with requirements of this section. If the Governor has not made a
determination within 30 days, the plan shall be considered approved. If the
plan is disapproved, the Governor may provide a reasonable period of time in
which a disapproved plan may be amended and resubmitted for approval. The
Governor shall allocate funds to local workforce investment areas with approved
plans within 30 days after approval.</text>
</subparagraph></paragraph><paragraph id="H403CFCDD8B2E4EFEA1227F66B61AA15C"><enum>(3)</enum><header>Reallocation</header><text>If
a local workforce investment board does not submit a local plan modification
(or other request for funds identified in guidance under subsection (b)) by the
time specified in paragraph (2), or does not receive approval of a local plan,
the amount the local workforce investment area would have been eligible to
receive pursuant to the formula under paragraph (1)(B) shall be allocated to
local workforce investment areas that receive approval of the local plan
modification or request for funds under paragraph (2). Such reallocations shall
be made in accordance with the relative share of the allocations to such local
workforce investment areas applying the formula factors described under
paragraph (1)(B).</text>
</paragraph></subsection><subsection id="H74920C6A6F31416CAFA680A2378088C8"><enum>(f)</enum><header>Use of
funds</header>
<paragraph id="H061CF746276D4EA2BA4BE6606CED7339"><enum>(1)</enum><header>In
general</header><text>The funds provided under this section shall be
used—</text>
<subparagraph id="HE5711DD352C14E689A6852E4660BF9F0"><enum>(A)</enum><text>to provide summer
employment opportunities for low-income youth, ages 16 through 24, with direct
linkages to academic and occupational learning, and may include the provision
of supportive services, such as transportation or child care, necessary to
enable such youth to participate; and</text>
</subparagraph><subparagraph id="HA0D2862060A1416388801B1E780F2817"><enum>(B)</enum><text>to provide year
round employment opportunities, which may be combined with other activities
authorized under section 129 of the Workforce Investment Act of 1998,to
low-income youth, ages 16 through 24, with a priority to out-of school youth
who are—</text>
<clause id="H121255DCADE14BEFB093D9DDEE896F3D"><enum>(i)</enum><text>high
school dropouts; or</text>
</clause><clause id="HE2C5D5D1ED754FF39EBD11942A432388"><enum>(ii)</enum><text>recipients of a
secondary school diploma or its equivalent but who are basic skills deficient
unemployed or underemployed.</text>
</clause></subparagraph></paragraph><paragraph id="HF73D7519A4EF415D8C8424FD983DCE0D"><enum>(2)</enum><header>Program
priorities</header><text>In administering the funds under this section, the
local board and local chief elected officials shall give a priority to—</text>
<subparagraph id="H16B9FE5259834DE0AB85ACEAFD1784FA"><enum>(A)</enum><text>identifying
employment opportunities that are—</text>
<clause id="H8F8DB1FB4AA14FA4B307A6E4AD870194"><enum>(i)</enum><text>in
emerging or in-demand occupations in the local workforce investment area;
or</text>
</clause><clause id="HA6109F6D2664499C9C5CDCD59CEACD3F"><enum>(ii)</enum><text>in
the public or nonprofit sector that meet community needs; and</text>
</clause></subparagraph><subparagraph id="H68F842A264354212B891047641FFC411"><enum>(B)</enum><text>linking year-round
program participants to training and educational activities that will provide
such participants an industry-recognized certificate or credential.</text>
</subparagraph></paragraph><paragraph id="H0EAB8705D3834503982BC1C4D88DB51B"><enum>(3)</enum><header>Performance
accountability</header><text>For activities funded under this section, in lieu
of the requirements described in section 136 of the Workforce Investment Act of
1998, State and local workforce investment areas shall provide such reports as
the Secretary of Labor may require regarding the performance outcomes described
in section 367(a)(5).</text>
</paragraph></subsection></section><section id="HA8C8BDF6B80B46E68385D05A19838F96"><enum>366.</enum><header>Work-based
employment strategies of demonstrated effectiveness</header>
<subsection id="H69FD4BE96CDF4D6AA137BC0288878FE6"><enum>(a)</enum><header>In
general</header><text>From the funds available under section 363(a)(3), the
Secretary of Labor shall award grants on a competitive basis to eligible
entities to carry out work-based strategies of demonstrated
effectiveness.</text>
</subsection><subsection id="HCA65AD59E39E4137AF7C99124186DC00"><enum>(b)</enum><header>Use of
funds</header><text>The grants awarded under this section shall be used to
support strategies and activities of demonstrated effectiveness that are
designed to provide unemployed, low-income adults or low-income youth with the
skills that will lead to employment as part of or upon completion of
participation in such activities. Such strategies and activities may
include—</text>
<paragraph id="H51DB61CDD534431F9D4D483AB21DBD0D"><enum>(1)</enum><text>on-the-job
training, registered apprenticeship programs, or other programs that combine
work with skills development;</text>
</paragraph><paragraph id="H0C55D961986E4EE2A4823AF6A3E4BFE5"><enum>(2)</enum><text>sector-based
training programs that have been designed to meet the specific requirements of
an employer or group of employers in that sector and where employers are
committed to hiring individuals upon successful completion of the
training;</text>
</paragraph><paragraph id="H2243EB097CF6404D9B95CAE5EB60E811"><enum>(3)</enum><text>training that
supports an industry sector or an employer-based or labor-management committee
industry partnership which includes a significant work-experience
component;</text>
</paragraph><paragraph id="H8DE5D9904FFB4FE9A0699531F7567AF9"><enum>(4)</enum><text>acquisition of
industry-recognized credentials in a field identified by the State or local
workforce investment area as a growth sector or demand industry in which there
are likely to be significant job opportunities in the short term;</text>
</paragraph><paragraph id="H0B48DDFC71754CE5B3EF9723D1401E1B"><enum>(5)</enum><text>connections to
immediate work opportunities, including subsidized employment opportunities, or
summer employment opportunities for youth, that includes concurrent skills
training and other supports;</text>
</paragraph><paragraph id="H6A26594EA39C414EA88ACB08F0C41CD5"><enum>(6)</enum><text>career academies
that provide students with the academic preparation and training, including
paid internships and concurrent enrollment in community colleges or other
postsecondary institutions, needed to pursue a career pathway that leads to
postsecondary credentials and high-demand jobs; and</text>
</paragraph><paragraph id="HA8CEFFA8A882461FBD5D84D3C7384245"><enum>(7)</enum><text>adult basic
education and integrated basic education and training models for low-skilled
adults, hosted at community colleges or at other sites, to prepare individuals
for jobs that are in demand in a local area.</text>
</paragraph></subsection><subsection id="H3782D1AE48A342D2A72A0C67C4CBCC30"><enum>(c)</enum><header>Eligible
entity</header><text>An eligible entity shall include a local chief elected
official, in collaboration with the local workforce investment board for the
local workforce investment area involved (which may include a partnership with
of such officials and boards in the region and in the State), or an entity
eligible to apply for an Indian and Native American grant under section 166 of
the Workforce Investment Act of 1998, and may include, in partnership with such
officials, boards, and entities, the following—</text>
<paragraph id="H7F184E8135184A72A79C574A7E017275"><enum>(1)</enum><text>employers or
employer associations;</text>
</paragraph><paragraph id="HDAF50E403D30493FB9029A9A9F1D5664"><enum>(2)</enum><text>adult education
providers and postsecondary educational institutions, including community
colleges;</text>
</paragraph><paragraph id="HE8126A60673146ED9367E66548171231"><enum>(3)</enum><text>community-based
organizations;</text>
</paragraph><paragraph id="H81CA3910947F447F934388ED1EDEFCCB"><enum>(4)</enum><text>joint
labor-management committees;</text>
</paragraph><paragraph id="HD0C74E87D2384D70AFC1106E4F3AC774"><enum>(5)</enum><text>work-related
intermediaries; or</text>
</paragraph><paragraph id="HB0A60F5EA6E14B0C8C0E5705AC085AA5"><enum>(6)</enum><text>other appropriate
organizations.</text>
</paragraph></subsection><subsection id="H87850067068E4E32A6948317B2CE7190"><enum>(d)</enum><header>Application</header><text>An
eligible entity seeking to receive a grant under this section shall submit to
the Secretary of Labor an application at such time, in such manner, and
containing such information as the Secretary may require. At a minimum, the
application shall—</text>
<paragraph id="HA9493F18119B4D74ABC99E70DA1DF5BD"><enum>(1)</enum><text>describe the
strategies and activities of demonstrated effectiveness that the eligible
entities will carry out to provide unemployed, low-income adults and low-income
youth with the skills that will lead to employment upon completion of
participation in such activities;</text>
</paragraph><paragraph id="H7AAC2DB13F984249AED3CCCAB1828CF9"><enum>(2)</enum><text>describe the
requirements that will apply relating to the eligibility of unemployed,
low-income adults or low-income youth, consistent with paragraphs (4) and (6)
of section 368, for activities carried out under this section, which may
include criteria to target assistance to particular categories of such adults
and youth, such as individuals with disabilities or individuals who have
exhausted all rights to unemployment compensation;</text>
</paragraph><paragraph id="H09A927C1693A4B28875F5B15EBD09081"><enum>(3)</enum><text>describe how the
strategies and activities address the needs of the target populations
identified in paragraph (2) and the needs of employers in the local
area;</text>
</paragraph><paragraph id="HBDE1F7C665FE4CD39E49C3CBDB65ED39"><enum>(4)</enum><text>describe the
expected outcomes to be achieved by implementing the strategies and
activities;</text>
</paragraph><paragraph id="H1AE79AD9B92F4FFE97371C692A4776AC"><enum>(5)</enum><text>provide evidence
that the funds provided may be expended expeditiously and efficiently to
implement the strategies and activities;</text>
</paragraph><paragraph id="HB178A359483E455EAFD7368F03FF0DD7"><enum>(6)</enum><text>describe how the
strategies and activities will be coordinated with other Federal, State and
local programs providing employment, education and supportive
activities;</text>
</paragraph><paragraph id="H14FD75B09AF646BBA4D59F7E291474D7"><enum>(7)</enum><text>provide evidence
of employer commitment to participate in the activities funded under this
section, including identification of anticipated occupational and skill
needs;</text>
</paragraph><paragraph id="H86A3C109455249AAA7C0DD611103DEAB"><enum>(8)</enum><text>provide assurances
that the grant recipient will report such information as the Secretary may
require relating to fiscal, performance and other matters that the Secretary
determines is necessary to effectively monitor the activities carried out under
this section; and</text>
</paragraph><paragraph id="HFFE9A51BAEBE4C33AB0CC1839FFF03D0"><enum>(9)</enum><text>provide assurances
that the use of the funds provided under this section will comply with the
labor standards and protections described section 367(a).</text>
</paragraph></subsection><subsection id="H7B28EAEA6DA7453E95D373C9D2C3A992"><enum>(e)</enum><header>Priority in
awards</header><text>In awarding grants under this section, the Secretary of
Labor shall give a priority to applications submitted by eligible entities from
areas of high poverty and high unemployment, as defined by the Secretary, such
as Public Use Microdata Areas (PUMAs) as designated by the Census
Bureau.</text>
</subsection><subsection id="HCB6948861E074CC6A529F74D3541C985"><enum>(f)</enum><header>Coordination of
Federal administration</header><text>The Secretary of Labor shall administer
this section in coordination with the Secretary of Education, Secretary of
Health and Human Services, and other appropriate agency heads, to ensure the
effective implementation of this section.</text>
</subsection></section><section id="H7DBAEBE5794748DE9F7F31BCC5690EF2"><enum>367.</enum><header>General
requirements</header>
<subsection id="H5E2C04A92BA6464F9B0956910EAB77EE"><enum>(a)</enum><header>Labor standards
and protections</header><text>Activities provided with funds under this Act
shall be subject to the requirements and restrictions, including the labor
standards, described in section 181 of the Workforce Investment Act of 1998 and
the nondiscrimination provisions of section 188 of such Act, in addition to
other applicable Federal laws.</text>
</subsection><subsection id="HB26D2BBEA5844B37B3CC26038AD82794"><enum>(b)</enum><header>Reporting</header><text>The
Secretary may require the reporting of information relating to fiscal,
performance and other matters that the Secretary determines is necessary to
effectively monitor the activities carried out with funds provided under this
Act. At a minimum, grantees and subgrantees shall provide information relating
to—</text>
<paragraph id="HD77A06D151474631A8665205299D872D"><enum>(1)</enum><text>the number
individuals participating in activities with funds provided under this Act and
the number of such individuals who have completed such participation;</text>
</paragraph><paragraph id="H8E5000BE6EE9433CB67624B6A494C2DE"><enum>(2)</enum><text>the expenditures
of funds provided under the Act;</text>
</paragraph><paragraph id="HECAA699B80294942A2F166EFC220A30A"><enum>(3)</enum><text>the number of jobs
created pursuant to the activities carried out under this Act;</text>
</paragraph><paragraph id="H011655C7A0094AFA8A8F3C3E9A9EB96A"><enum>(4)</enum><text>the demographic
characteristics of individuals participating in activities under this Act;
and</text>
</paragraph><paragraph id="H810494DDC07B4D0B9786D2393D04AAD6"><enum>(5)</enum><text>the performance
outcomes of individuals participating in activities under this Act,
including—</text>
<subparagraph id="HD0137639358E4D97AB67D21E95B8FCA9"><enum>(A)</enum><text>for adults
participating in activities funded under section 364 of this Act—</text>
<clause id="H54C443A29F5843669FBD62BD7F00D2B9"><enum>(i)</enum><text>entry in
unsubsidized employment,</text>
</clause><clause id="H61612EE341FC47F58049EABC36A8A8B2"><enum>(ii)</enum><text>retention in
unsubsidized employment, and</text>
</clause><clause id="H59007338B4CF43FF8DB273F4132FF424"><enum>(iii)</enum><text>earnings in
unsubsidized employment;</text>
</clause></subparagraph><subparagraph id="HC7C5E291437846EEACB0AA2B99C50206"><enum>(B)</enum><text>for low-income
youth participating in summer employment activities under sections 365 and
366—</text>
<clause id="H178A0AE0B0FD400883822DCFF5E6618A"><enum>(i)</enum><text>work
readiness skill attainment using an employer validated checklist; and</text>
</clause><clause id="HD729203430F1454892D6EA4C2C29E82B"><enum>(ii)</enum><text>placement in or
return to secondary or postsecondary education or training, or entry into
unsubsidized employment;</text>
</clause></subparagraph><subparagraph id="H4C4C80F400764B928B24CE2E32DE35E5"><enum>(C)</enum><text>for low-income
youth participating in year-round employment activities under section 365 or in
activities under section 366—</text>
<clause id="HD1691175FBA348B7A1C0B43DBEC1ED48"><enum>(i)</enum><text>placement in or
return to post-secondary education;</text>
</clause><clause id="HB6462787E4AA49BC818E157C897B33B2"><enum>(ii)</enum><text>attainment of
high school diploma or its equivalent;</text>
</clause><clause id="H133A0A7C33374043A500C137FEAA8154"><enum>(iii)</enum><text>attainment of an
industry-recognized credential; and</text>
</clause><clause id="H9295157302D8455C9BD1BF2BE8C165A6"><enum>(iv)</enum><text>entry into
unsubsidized employment, retention, and earnings as described in subparagraph
(A); and</text>
</clause></subparagraph><subparagraph id="H26E4375808204666B0D27289F5CFC01A"><enum>(D)</enum><text>for unemployed,
low-income adults participating in activities under section 366—</text>
<clause id="HD56D0AAD8D454B6197EF9EDDE33C8893"><enum>(i)</enum><text>entry into
unsubsidized employment, retention, and earnings as described in subparagraph
(A); and</text>
</clause><clause id="H2718F1F244B547BF8C914F0C3FA2279D"><enum>(ii)</enum><text>the
attainment of industry-recognized credentials.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H73DF3B91D96644E0A0C8250F9ADCA15C"><enum>(c)</enum><header>Activities
required To be additional</header><text>Funds provided under this Act shall
only be used for activities that are in addition to activities that would
otherwise be available in the State or local area in the absence of such
funds.</text>
</subsection><subsection id="H74C8EC2EE29A4AD1AFA04617EBCEEEE7"><enum>(d)</enum><header>Additional
requirements</header><text>The Secretary of Labor may establish such additional
requirements as the Secretary determines may be necessary to ensure fiscal
integrity, effective monitoring, and the appropriate and prompt implementation
of the activities under this Act.</text>
</subsection><subsection id="HBF67E514772E4226909F26C42BA72EAF"><enum>(e)</enum><header>Report of
information and evaluations to congress and the public</header><text>The
Secretary of Labor shall provide to the appropriate Committees of the Congress
and make available to the public the information reported pursuant to
subsection (b) and the evaluations of activities carried out pursuant to the
funds reserved under section 363(b).</text>
</subsection></section><section id="H7C3574DFBB0F46CAA0C2BBC2A56D663D"><enum>368.</enum><header>Definitions</header><text display-inline="no-display-inline">In this Act:</text>
<paragraph id="HCD4295DA6A0F462FAC0A8259F834F708"><enum>(1)</enum><header>Local chief
elected official</header><text>The term <quote>local chief elected
official</quote> means the chief elected executive officer of a unit of local
government in a local workforce investment area or in the case where more than
one unit of general government, the individuals designated under an agreement
described in section 117(c)(1)(B) of the Workforce Investment Act of
1998.</text>
</paragraph><paragraph id="H136C19293CBA488DAFB26E67B423234C"><enum>(2)</enum><header>Local workforce
investment area</header><text>The term <quote>local workforce investment
area</quote> means such area designated under section 116 of the Workforce
Investment Act of 1998.</text>
</paragraph><paragraph id="H215C5405BCC44D71B4E41AC7374BD99E"><enum>(3)</enum><header>Local workforce
investment board</header><text>The term <quote>local workforce investment
board</quote> means such board established under section 117 of the Workforce
Investment Act of 1998.</text>
</paragraph><paragraph id="HE92018DD11344FF28C81C47148394700"><enum>(4)</enum><header>Low-income
youth</header><text>The term <quote>low-income youth</quote> means an
individual who—</text>
<subparagraph id="HDFEDAFF6BB4D436795CF0A334F07CAF5"><enum>(A)</enum><text>is aged 16 through
24;</text>
</subparagraph><subparagraph id="H38EE334D954A4A43A4B18F11B064320A"><enum>(B)</enum><text>meets the
definition of a low-income individual provided in section 101(25) of the
Workforce Investment Act of 1998, except that States, local workforce
investment areas under section 365 and eligible entities under section 366(c),
subject to approval in the applicable State plans, local plans, and
applications for funds, may increase the income level specified in subparagraph
(B)(i) of such section to an amount not in excess of 200 percent of the poverty
line for purposes of determining eligibility for participation in activities
under sections 365 and 366 of this Act; and</text>
</subparagraph><subparagraph id="H525F43145560442595CDD13EA238BED2"><enum>(C)</enum><text>is in one or more
of the categories specified in section 101(13)(C) of the Workforce Investment
Act of 1998.</text>
</subparagraph></paragraph><paragraph id="HF319AADEE30A4710A71E14D67E2EAA65"><enum>(5)</enum><header>Outlying
area</header><text>The term <term>outlying area</term> means the United States
Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana
Islands, and the Republic of Palau.</text>
</paragraph><paragraph id="H6EC369EFDB3A4150B3BEE192B10F3428"><enum>(6)</enum><header>Unemployed,
low-income adult</header><text>The term <term>unemployed, low-income
adult</term> means an individual who—</text>
<subparagraph id="H5D7B2A282617460F8CBACB1489D7A3F9"><enum>(A)</enum><text>is age 18 or
older;</text>
</subparagraph><subparagraph id="H4842C1A4E1C9404B93B251A06643E184"><enum>(B)</enum><text>is without
employment and is seeking assistance under this Act to obtain employment;
and</text>
</subparagraph><subparagraph id="H8D7BB2878D7645D492C32CAC1ACE25A7"><enum>(C)</enum><text>meets the
definition of a <quote>low-income individual</quote> under section 101(25) of
the Workforce Investment Act of 1998, except that for that States, local
entities described in section 364(d)(1) and eligible entities under section
366(c), subject to approval in the applicable State plans, local plans, and
applications for funds, may increase the income level specified in subparagraph
(B)(i) of such section to an amount not in excess of 200 percent of the poverty
line for purposes of determining eligibility for participation in activities
under sections 364 and 366 of this Act.</text>
</subparagraph></paragraph><paragraph id="H80CA01FAFF924AAB804DEDE9337BCE14"><enum>(7)</enum><header>State</header><text>The
term <term>State</term> means each of the several States of the United States,
the District of Columbia, and Puerto Rico.</text>
</paragraph></section></subtitle><subtitle id="H5E5BE8F412B6432B849AE5BCD705F802"><enum>D</enum><header>Prohibition of
discrimination in employment on the basis of an individual’s status as
unemployed</header>
<section id="H9ED79DA25DF94F76B930196079017A02"><enum>371.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote><short-title>Fair Employment
Opportunity Act of 2013</short-title></quote>.</text>
</section><section id="H1BBA31516B354EC4A678A90D5E29D2FF"><enum>372.</enum><header>Findings and
purpose</header>
<subsection id="H8CB47F99D3614368B15746AD2F9E389B"><enum>(a)</enum><header>Findings</header><text>Congress
finds that denial of employment opportunities to individuals because of their
status as unemployed is discriminatory and burdens commerce by—</text>
<paragraph id="H0F264583E70F4916A7A2E0AF32301CFF"><enum>(1)</enum><text>reducing personal
consumption and undermining economic stability and growth;</text>
</paragraph><paragraph id="H45FC31D538214548B8F013EEC4CB7995"><enum>(2)</enum><text>squandering human
capital essential to the Nation’s economic vibrancy and growth;</text>
</paragraph><paragraph id="HB40D5CDAA1334859A34C3E037021524B"><enum>(3)</enum><text>increasing demands
for Federal and State unemployment insurance benefits, reducing trust fund
assets, and leading to higher payroll taxes for employers, cuts in benefits for
jobless workers, or both;</text>
</paragraph><paragraph id="H531F43A1C2984F92A8D18C8193F63F96"><enum>(4)</enum><text>imposing
additional burdens on publicly funded health and welfare programs; and</text>
</paragraph><paragraph id="HE41CEB14879A47B087F80E7C3237505C"><enum>(5)</enum><text>depressing income,
property, and other tax revenues that the Federal Government, States, and
localities rely on to support operations and institutions essential to
commerce.</text>
</paragraph></subsection><subsection id="H3FD85A7AFB06436DAF2F4501EFDFF5A9"><enum>(b)</enum><header>Purposes</header><text>The
purposes of this subtitle are—</text>
<paragraph id="H646C5915CEF344FB8F6B0492CCBA574E"><enum>(1)</enum><text>to prohibit
employers and employment agencies from disqualifying an individual from
employment opportunities because of that individual’s status as
unemployed;</text>
</paragraph><paragraph id="H2CB0F16678AD40F59B5A381170B8DC7C"><enum>(2)</enum><text>to prohibit
employers and employment agencies from publishing or posting any advertisement
or announcement for an employment opportunity that indicates that an
individual’s status as unemployed disqualifies that individual for the
opportunity; and</text>
</paragraph><paragraph id="HF548CDD7969745739EF8B3EB79209255"><enum>(3)</enum><text>to eliminate the
burdens imposed on commerce due to the exclusion of such individuals from
employment.</text>
</paragraph></subsection></section><section id="HAF571DB288A8411C9B0F2E189322C69F"><enum>373.</enum><header>Definitions</header><text display-inline="no-display-inline">As used in this subtitle—</text>
<paragraph id="H7CE30ED3A2B34F75AEF576F68A4292A5"><enum>(1)</enum><text>the term
<term>affected individual</term> means any person who was subject to an
unlawful employment practice solely because of that individual’s status as
unemployed;</text>
</paragraph><paragraph id="H60F3DFC2380F458E8E072A077812550F"><enum>(2)</enum><text>the term
<term>Commission</term> means the Equal Employment Opportunity
Commission;</text>
</paragraph><paragraph id="H585B683DEAFE4AED9BD479859CF71445"><enum>(3)</enum><text>the term
<term>employee</term> means—</text>
<subparagraph id="H7D843802BF03498BBC1B8566CF04D1C7"><enum>(A)</enum><text>an employee as
defined in section 701(f) of the Civil Rights Act of 1964 (42 U.S.C.
2000e(f));</text>
</subparagraph><subparagraph id="H00D139D98FBF458196A1E0EDBB1E2E8B"><enum>(B)</enum><text>a State employee
to which section 302(a)(1) of the Government Employee Rights Act of 1991 (42
U.S.C. 2000e–16b(a)(1)) applies;</text>
</subparagraph><subparagraph id="HE9B7A3249E5C407481543C395C43CE8F"><enum>(C)</enum><text>a covered
employee, as defined in section 101 of the Congressional Accountability Act of
1995 (<external-xref legal-doc="usc" parsable-cite="usc/2/1301">2 U.S.C. 1301</external-xref>) or <external-xref legal-doc="usc" parsable-cite="usc/3/411">section 411(c)</external-xref> of title 3, United States Code;
or</text>
</subparagraph><subparagraph id="H652315D117D84974AF875DBE9A1DF7D9"><enum>(D)</enum><text>an employee or
applicant to which section 717(a) of the Civil Rights Act of 1964 (42 U.S.C.
2000e–16(a)) applies;</text>
</subparagraph></paragraph><paragraph id="H00C1B00D14034F729F97C7D512FACAE6"><enum>(4)</enum><text>the term
<term>employer</term> means—</text>
<subparagraph id="H17F2B5772672407A8529A8AF0D11A579"><enum>(A)</enum><text>a person engaged
in an industry affecting commerce (as defined in section 701(h) of the Civil
Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e">42 U.S.C. 2000e(h)</external-xref>) who has 15 or more employees for each
working day in each of 20 or more calendar weeks in the current or preceding
calendar year, and any agent of such a person, but does not include a bona fide
private membership club that is exempt from taxation under section 501(c) of
the Internal Revenue Code of 1986;</text>
</subparagraph><subparagraph id="H4BEFFCF648F0495D8CA47AB4A88E51F7"><enum>(B)</enum><text>an employing
authority to which section 302(a)(1) of the Government Employee Rights Act of
1991 applies;</text>
</subparagraph><subparagraph id="H7FAA00E1722B4A88AF7755A7320EDB16"><enum>(C)</enum><text>an employing
office, as defined in section 101 of the Congressional Accountability Act of
1995 or <external-xref legal-doc="usc" parsable-cite="usc/3/411">section 411(c)</external-xref> of title 3, United States Code; or</text>
</subparagraph><subparagraph id="H880F7D89DF6247C1BB52D421D4AD8911"><enum>(D)</enum><text>an entity to which
section 717(a) of the Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e-16">42 U.S.C. 2000e–16(a)</external-xref>)
applies;</text>
</subparagraph></paragraph><paragraph id="HA140FBDB2A21451B9CC8E840486CD2E4"><enum>(5)</enum><text>the term
<term>employment agency</term> means any person regularly undertaking with or
without compensation to procure employees for an employer or to procure for
individuals opportunities to work as employees for an employer and includes an
agent of such a person, and any person who maintains an Internet website or
print medium that publishes advertisements or announcements of openings in jobs
for employees;</text>
</paragraph><paragraph id="H578F91ADB7A7482C97B9E2BD99EE83CE"><enum>(6)</enum><text>the term
<term>person</term> has the meaning given the term in section 701(a) of the
Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e">42 U.S.C. 2000e(a)</external-xref>); and</text>
</paragraph><paragraph id="H732C51230F144EA7A2E859B2C2E5FE1B"><enum>(7)</enum><text>the term
<term>status as unemployed</term>, used with respect to an individual, means
that the individual, at the time of application for employment or at the time
of action alleged to violate this subtitle, does not have a job, is available
for work and is searching for work.</text>
</paragraph></section><section id="HDBBCD3057C30468E9BDE87E49E1BF7AD"><enum>374.</enum><header>Prohibited
acts</header>
<subsection id="HD3EB81BD36CF4EA1B92D540163C4DD75"><enum>(a)</enum><header>Employers</header><text>It
shall be an unlawful employment practice for an employer to—</text>
<paragraph id="H314F7E0D0ABC40409988E72C51CAFC7C"><enum>(1)</enum><text>publish in print,
on the Internet, or in any other medium, an advertisement or announcement for
an employee for any job that includes—</text>
<subparagraph id="HDC6993A029FF411DA90CEDC0F93ACBE9"><enum>(A)</enum><text>any provision
stating or indicating that an individual’s status as unemployed disqualifies
the individual for any employment opportunity; or</text>
</subparagraph><subparagraph id="H756CF4EADFD8498485E11A8538BB82CA"><enum>(B)</enum><text>any provision
stating or indicating that an employer will not consider or hire an individual
for any employment opportunity based on that individual’s status as
unemployed;</text>
</subparagraph></paragraph><paragraph id="H2B044C4B5CEB4B709A24DA794D44B103"><enum>(2)</enum><text>fail or refuse to
consider for employment, or fail or refuse to hire, an individual as an
employee because of the individual’s status as unemployed; or</text>
</paragraph><paragraph id="HA6CEA3C6B065499199242824BB71DF09"><enum>(3)</enum><text>direct or request
that an employment agency take an individual’s status as unemployed into
account to disqualify an applicant for consideration, screening, or referral
for employment as an employee.</text>
</paragraph></subsection><subsection id="HDD774A0B225C477F8A0972A27E17E2F2"><enum>(b)</enum><header>Employment
agencies</header><text>It shall be an unlawful employment practice for an
employment agency to—</text>
<paragraph id="HF9C96089D48D441389C2ED4B48B82F8E"><enum>(1)</enum><text>publish, in print
or on the Internet or in any other medium, an advertisement or announcement for
any vacancy in a job, as an employee, that includes—</text>
<subparagraph id="H4A2992CF687E406EAC47AEEC20AD155C"><enum>(A)</enum><text>any provision
stating or indicating that an individual’s status as unemployed disqualifies
the individual for any employment opportunity; or</text>
</subparagraph><subparagraph id="H6B96252890124BDA83C57F7B6ED1DE40"><enum>(B)</enum><text>any provision
stating or indicating that the employment agency or an employer will not
consider or hire an individual for any employment opportunity based on that
individual’s status as unemployed;</text>
</subparagraph></paragraph><paragraph id="H210D8776803F40C0AE57A173116A5701"><enum>(2)</enum><text>screen, fail or
refuse to consider, or fail or refuse to refer an individual for employment as
an employee because of the individual’s status as unemployed; or</text>
</paragraph><paragraph id="HDD554195017D4A4B8B30D3494E3D953D"><enum>(3)</enum><text>limit, segregate,
or classify any individual in any manner that would limit or tend to limit the
individual’s access to information about jobs, or consideration, screening, or
referral for jobs, as employees, solely because of an individual’s status as
unemployed.</text>
</paragraph></subsection><subsection id="H2CF32ED1D81B4A03B008E61DC36587FE"><enum>(c)</enum><header>Interference
with rights, proceedings or inquiries</header><text>It shall be unlawful for
any employer or employment agency to—</text>
<paragraph id="HA6187C5B15664FF89F364A561BF92C2C"><enum>(1)</enum><text>interfere with,
restrain, or deny the exercise of or the attempt to exercise, any right
provided under this subtitle; or</text>
</paragraph><paragraph id="HCB76D5D750664E53B02D3D2ED439CEEB"><enum>(2)</enum><text>fail or refuse to
hire, to discharge, or in any other manner to discriminate against any
individual, as an employee, because such individual—</text>
<subparagraph id="H803393691B394D2AAD3511A88613B78C"><enum>(A)</enum><text>opposed any
practice made unlawful by this subtitle;</text>
</subparagraph><subparagraph id="HBCFA41AB241A4CEEB3495D49E7273A32"><enum>(B)</enum><text>has asserted any
right, filed any charge, or has instituted or caused to be instituted any
proceeding, under or related to this subtitle;</text>
</subparagraph><subparagraph id="H0ACEF9A0E3FB49779D0FD4366B7FCA01"><enum>(C)</enum><text>has given, or is
about to give, any information in connection with any inquiry or proceeding
relating to any right provided under this subtitle; or</text>
</subparagraph><subparagraph id="H448853479C524245BDCAFF2DFBDAF28F"><enum>(D)</enum><text>has testified, or
is about to testify, in any inquiry or proceeding relating to any right
provided under this subtitle.</text>
</subparagraph></paragraph></subsection><subsection id="H3D2C9CFD3F1947C3A42BDF35FCEC50E7"><enum>(d)</enum><header>Construction</header><text>Nothing
in this subtitle is intended to preclude an employer or employment agency from
considering an individual’s employment history, or from examining the reasons
underlying an individual’s status as unemployed, in assessing an individual’s
ability to perform a job or in otherwise making employment decisions about that
individual. Such consideration or examination may include an assessment of
whether an individual’s employment in a similar or related job for a period of
time reasonably proximate to the consideration of such individual for
employment is job-related or consistent with business necessity.</text>
</subsection></section><section id="HC97A31387CDB4FE9866F962AA3C4EBC3"><enum>375.</enum><header>Enforcement</header>
<subsection id="H0F3086267C4D4FD9B0CE3C6EEE860A78"><enum>(a)</enum><header>Enforcement
powers</header><text>With respect to the administration and enforcement of this
subtitle—</text>
<paragraph id="H5232A07ADF224C2EB086074FB0604CB8"><enum>(1)</enum><text>the Commission
shall have the same powers as the Commission has to administer and
enforce—</text>
<subparagraph id="H43239F8A11A64B3ABF38DCD5E966442F"><enum>(A)</enum><text>title VII of the
Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e">42 U.S.C. 2000e et seq.</external-xref>); or</text>
</subparagraph><subparagraph id="HCAF1C21D202E4ECF9886FD6262673162"><enum>(B)</enum><text>sections 302 and
304 of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b and
2000e–16c), in the case of an affected individual who would be covered by such
title, or by section 302(a)(1) of the Government Employee Rights Act of 1991
(42 U.S.C. 2000e–16b(a)(1)), respectively;</text>
</subparagraph></paragraph><paragraph id="HB52423E87E7F441A86A27F11D1C265C3"><enum>(2)</enum><text>the Librarian of
Congress shall have the same powers as the Librarian of Congress has to
administer and enforce title VII of the Civil Rights Act of 1964 (42 U.S.C.
2000e et seq.) in the case of an affected individual who would be covered by
such title;</text>
</paragraph><paragraph id="H56A5BBF5E1B94CF18B9D6933302CE9BA"><enum>(3)</enum><text>the Board (as
defined in section 101 of the Congressional Accountability Act of 1995 (2
U.S.C. 1301)) shall have the same powers as the Board has to administer and
enforce the Congressional Accountability Act of 1995 (<external-xref legal-doc="usc" parsable-cite="usc/2/1301">2 U.S.C. 1301 et seq.</external-xref>) in
the case of an affected individual who would be covered by section 201(a)(1) of
such Act (<external-xref legal-doc="usc" parsable-cite="usc/2/1311">2 U.S.C. 1311(a)(1)</external-xref>);</text>
</paragraph><paragraph id="H6B274B4F37B34E99A9C1C85C1B479AE4"><enum>(4)</enum><text>the Attorney
General shall have the same powers as the Attorney General has to administer
and enforce—</text>
<subparagraph id="H2CA21B59DCDE47B68E187FC8F3F1E774"><enum>(A)</enum><text>title VII of the
Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e">42 U.S.C. 2000e et seq.</external-xref>); or</text>
</subparagraph><subparagraph id="H4EEF61AA511C4D09B202D37B732F6F64"><enum>(B)</enum><text>sections 302 and
304 of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b and
2000e–16c); in the case of an affected individual who would be covered by such
title, or of section 302(a)(1) of the Government Employee Rights Act of 1991
(42 U.S.C. 2000e–16b(a)(1)), respectively;</text>
</subparagraph></paragraph><paragraph id="HE395D10F799D4F3790AE76063E300A82"><enum>(5)</enum><text>the President, the
Commission, and the Merit Systems Protection Board shall have the same powers
as the President, the Commission, and the Board, respectively, have to
administer and enforce <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/3/5">chapter 5</external-xref> of title 3, United States Code, in the case of
an affected individual who would be covered by section 411 of such title;
and</text>
</paragraph><paragraph id="HF065B99E0B7144DEAA05DB0791397C95"><enum>(6)</enum><text>a
court of the United States shall have the same jurisdiction and powers as the
court has to enforce—</text>
<subparagraph id="H61AAD97CC8304344944643E5955487FD"><enum>(A)</enum><text>title VII of the
Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e">42 U.S.C. 2000e et seq.</external-xref>) in the case of a claim
alleged by such individual for a violation of such title;</text>
</subparagraph><subparagraph id="H068306111F4845C89623A64FF9513EDC"><enum>(B)</enum><text>sections 302 and
304 of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b and
2000e–16c) in the case of a claim alleged by such individual for a violation of
section 302(a)(1) of such Act (42 U.S.C. 2000e–16b(a)(1));</text>
</subparagraph><subparagraph id="HB1A1BFF568D741488084D98E2F8950AE"><enum>(C)</enum><text>the Congressional
Accountability Act of 1995 (<external-xref legal-doc="usc" parsable-cite="usc/2/1301">2 U.S.C. 1301 et seq.</external-xref>) in the case of a claim
alleged by such individual for a violation of section 201(a)(1) of such Act (2
U.S.C. 1311(a)(1)); and</text>
</subparagraph><subparagraph id="H294C51DE79344BB28630E7DB7BAAB75E"><enum>(D)</enum><text>chapter 5 of title
3, United States Code, in the case of a claim alleged by such individual for a
violation of section 411 of such title.</text>
</subparagraph></paragraph></subsection><subsection id="HAA7093E20CB54DCEAE5109E0339B2FC6"><enum>(b)</enum><header>Procedures</header><text>The
procedures applicable to a claim alleged by an individual for a violation of
this subtitle are—</text>
<paragraph id="HFC0486FEAE4749AE94AD67AE379844E7"><enum>(1)</enum><text>the procedures
applicable for a violation of title VII of the Civil Rights Act of 1964 (42
U.S.C. 2000e et seq.) in the case of a claim alleged by such individual for a
violation of such title;</text>
</paragraph><paragraph id="H42939787412B43AC9533CB3C914577A7"><enum>(2)</enum><text>the procedures
applicable for a violation of section 302(a)(1) of the Government Employee
Rights Act of 1991 (42 U.S.C. 2000e–16b(a)(1)) in the case of a claim alleged
by such individual for a violation of such section;</text>
</paragraph><paragraph id="H1F2D1C10A9294582B7AF4F83020E3494"><enum>(3)</enum><text>the procedures
applicable for a violation of section 201(a)(1) of the Congressional
Accountability Act of 1995 (<external-xref legal-doc="usc" parsable-cite="usc/2/1311">2 U.S.C. 1311(a)(1)</external-xref>) in the case of a claim alleged
by such individual for a violation of such section; and</text>
</paragraph><paragraph id="H90EF36DEEB4C4C7C9B5C179419E4AE3B"><enum>(4)</enum><text>the procedures
applicable for a violation of <external-xref legal-doc="usc" parsable-cite="usc/3/411">section 411</external-xref> of title 3, United States Code, in
the case of a claim alleged by such individual for a violation of such
section.</text>
</paragraph></subsection><subsection id="H0B24AADDB7B341F09422CBC7A226299D"><enum>(c)</enum><header>Remedies</header>
<paragraph id="HEED31FA7FB1744719347C63B38CE26DB"><enum>(1)</enum><text>In any claim
alleging a violation of section 374(a)(1) or 374(b)(1) of this subtitle, an
individual, or any person acting on behalf of the individual as set forth in
section 375(a) of this subtitle, may be awarded, as appropriate:</text>
<subparagraph id="HD85EF9583AA34555AC61BB93EF3DB9B8"><enum>(A)</enum><text>An order enjoining
the respondent from engaging in the unlawful employment practice.</text>
</subparagraph><subparagraph id="H617E666DC9D247CDA04D63C02818ED5F"><enum>(B)</enum><text>Reimbursement of
costs expended as a result of the unlawful employment practice.</text>
</subparagraph><subparagraph id="HA63ED680AF3147DEA2AAC9F3998732CD"><enum>(C)</enum><text>An amount in
liquidated damages not to exceed $1,000 for each day of the violation.</text>
</subparagraph><subparagraph id="HE94617B653824CFEBE3974B25801CA02"><enum>(D)</enum><text>Reasonable
attorney’s fees (including expert fees) and costs attributable to the pursuit
of a claim under this subtitle, except that no person identified in section
733(a) of this subtitle shall be eligible to receive attorney’s fees.</text>
</subparagraph></paragraph><paragraph id="H223BC3E0EADC40FDA9CB74692DEE6C24"><enum>(2)</enum><text>In any claim
alleging a violation of any other subsection of this subtitle, an individual,
or any person acting on behalf of the individual as set forth in section 375(a)
of this subtitle, may be awarded, as appropriate, the remedies available for a
violation of title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et
seq.), section 302(a)(1) of the Government Employee Rights Act of 1991 (42
U.S.C. 2000e–16b(a)(1)), section 201(a)(1) of the Congressional Accountability
Act of 1995 (<external-xref legal-doc="usc" parsable-cite="usc/2/1311">2 U.S.C. 1311(a)(1)</external-xref>), and <external-xref legal-doc="usc" parsable-cite="usc/3/411">section 411</external-xref> of title 3, United States
Code, except that in a case in which wages, salary, employment benefits, or
other compensation have not been denied or lost to the individual, damages may
be awarded in an amount not to exceed $5,000.</text>
</paragraph></subsection></section><section id="H41ADE3873A924F458535C00C55712BAC"><enum>376.</enum><header>Federal and
State immunity</header>
<subsection id="HABEED1BDDF964FF6B15A7D06F22BF0E4"><enum>(a)</enum><header>Abrogation of
State immunity</header><text>A State shall not be immune under the 11th
Amendment to the Constitution from a suit brought in a Federal court of
competent jurisdiction for a violation of this subtitle.</text>
</subsection><subsection id="H7FAB12300A4B46F48E8E19B7A39A8C0D"><enum>(b)</enum><header>Waiver of State
immunity</header>
<paragraph id="H5B20BFA292FF4A55A6304D051BF0DCF1"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H97021ADC8C28483FAF6F78A26F80DA94"><enum>(A)</enum><header>Waiver</header><text>A
State’s receipt or use of Federal financial assistance for any program or
activity of a State shall constitute a waiver of sovereign immunity, under the
11th Amendment to the Constitution or otherwise, to a suit brought by an
employee or applicant for employment of that program or activity under this
subtitle for a remedy authorized under section 375(c) of this subtitle.</text>
</subparagraph><subparagraph id="H19202B3D28484C60952288CB1C643666"><enum>(B)</enum><header>Definition</header><text>In
this paragraph, the term <term>program or activity</term> has the meaning given
the term in section 606 of the Civil Rights Act of 1964 (42 U.S.C.
2000d–4a).</text>
</subparagraph></paragraph><paragraph id="HD69231005BE54130881359508B42DCDA"><enum>(2)</enum><header>Effective
date</header><text>With respect to a particular program or activity, paragraph
(1) applies to conduct occurring on or after the day, after the date of
enactment of this Act, on which a State first receives or uses Federal
financial assistance for that program or activity.</text>
</paragraph></subsection><subsection id="H6C3890B7E2154135A3198B2D2630CF7E"><enum>(c)</enum><header>Remedies against
State officials</header><text>An official of a State may be sued in the
official capacity of the official by any employee or applicant for employment
who has complied with the applicable procedures of this subtitle, for relief
that is authorized under this subtitle.</text>
</subsection><subsection id="H0AA04411DC2644119C4A0CC236027CA6"><enum>(d)</enum><header>Remedies against
the united states and the states</header><text>Notwithstanding any other
provision of this subtitle, in an action or administrative proceeding against
the United States or a State for a violation of this subtitle, remedies
(including remedies at law and in equity) are available for the violation to
the same extent as such remedies would be available against a non-governmental
entity.</text>
</subsection></section><section id="HDE2F15B8452E4DB19D7C49AF45A45E9F"><enum>377.</enum><header>Relationship to
other laws</header><text display-inline="no-display-inline">This subtitle shall
not invalidate or limit the rights, remedies, or procedures available to an
individual claiming discrimination prohibited under any other Federal law or
regulation or any law or regulation of a State or political subdivision of a
State.</text>
</section><section id="H69C6C3C3CA814B64B1872BB8745C58D5"><enum>378.</enum><header>Severability</header><text display-inline="no-display-inline">If any provision of this subtitle, or the
application of the provision to any person or circumstance, is held to be
invalid, the remainder of this subtitle and the application of the provision to
any other person or circumstances shall not be affected by the
invalidity.</text>
</section><section id="HA4DCB8B5E30743AF8D9E6437566FA9A9"><enum>379.</enum><header>Effective
date</header><text display-inline="no-display-inline">This subtitle shall take
effect on the date of enactment of this Act and shall not apply to conduct
occurring before the effective date.</text>
</section></subtitle><enum>IV</enum><header>Offsets</header>
<subtitle id="HB1EE0DD8B1914D4CB654CE3F4D0C150F"><enum>A</enum><header>28
percent limitation on certain deductions and exclusions</header>
<section id="H181A015DB04D42819A1CD54A3FC3395C"><enum>401.</enum><header>28 percent
limitation on certain deductions and exclusions</header>
<subsection id="HC037376D7F87454F93F8A54E40D5E0BD"><enum>(a)</enum><header>In
general</header><text>Part I of subchapter B of chapter 1 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
section:</text>
<quoted-block id="H4C15220D59F24A828C48CF4332F3EA56" style="OLC">
<section id="H3F016CBBE797423B975D363EC0E7DAFE"><enum>69.</enum><header>Limitation on
certain deductions and exclusions</header>
<subsection id="HF3B0E549EA0C44AFBDC51B884DB91852"><enum>(a)</enum><header>In
general</header><text>In the case of an individual for any taxable year,
if—</text>
<paragraph id="H889EC755369B4A60A383CDAC40BEC051"><enum>(1)</enum><text>the taxpayer’s
adjusted gross income is above—</text>
<subparagraph id="HA343A59B2134440AA51872FEC455DDAD"><enum>(A)</enum><text>$250,000 in the
case of a joint return within the meaning of section 6013,</text>
</subparagraph><subparagraph id="H65DA24B7B698417492749DD96C26DB61"><enum>(B)</enum><text>$225,000 in the
case of a head of household return,</text>
</subparagraph><subparagraph id="H66163B6E494B4260A5187ABDC1B56044"><enum>(C)</enum><text>$125,000 in the
case of a married filing separately return, or</text>
</subparagraph><subparagraph id="HED04997D7AAA4483A88B21E4A5E4E59F"><enum>(D)</enum><text>$200,000 in all
other cases; and</text>
</subparagraph></paragraph><paragraph id="H724C0D7261B64518AA1B84F9812ABE5D"><enum>(2)</enum><text>the taxpayer’s
adjusted taxable income for such taxable year exceeds the minimum marginal rate
amount, then the tax imposed under section 1 with respect to such taxpayer for
such taxable year shall be increased by the amount determined under subsection
(b). If the taxpayer is subject to tax under section 55, then in lieu of an
increase in tax under section 1, the tax imposed under section 55 with respect
to such taxpayer for such taxable year shall be increased by the amount
determined under subsection (c).</text>
</paragraph></subsection><subsection id="H909353CA828F4BBCA4DF41836D2C66D7"><enum>(b)</enum><header>Additional
amount</header><text>The amount determined under this subsection with respect
to any taxpayer for any taxable year is the excess (if any) of—</text>
<paragraph id="H0C8ED4FAE8E54184B85242A92E66C54E"><enum>(1)</enum><text>the tax which
would be imposed under section 1 with respect to such taxpayer for such taxable
year if <quote>adjusted taxable income</quote> were substituted for
<quote>taxable income</quote> each place it appears therein, over</text>
</paragraph><paragraph id="H7767885AA2B24FD98C78E1479897C9EF"><enum>(2)</enum><text>the sum of—</text>
<subparagraph id="H64F9F47AA74F40CC851A4686A77AF943"><enum>(A)</enum><text>the tax which
would be imposed under such section with respect to such taxpayer for such
taxable year on the greater of—</text>
<clause id="H4D0027D0983946CBA3B8C2195725FE11"><enum>(i)</enum><text>taxable income,
or</text>
</clause><clause id="H6068075A8A794ADD93357C52B30AA2D0"><enum>(ii)</enum><text>the minimum
marginal rate amount, plus</text>
</clause></subparagraph><subparagraph id="HF98F44610B04489080C9360DDFDCBC40"><enum>(B)</enum><text>28 percent of the
excess (if any) of the taxpayer’s adjusted taxable income over the greater
of—</text>
<clause id="H5C5BE57616924D928688CFBBC13313C7"><enum>(i)</enum><text>the taxpayer’s
taxable income, or</text>
</clause><clause id="HF3659B2C9C6D459E8C130BBAE0884008"><enum>(ii)</enum><text>the minimum
marginal rate amount.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H9F69CA0ED2FD467B804301A539AFED54"><enum>(c)</enum><header>Additional AMT
amount</header>
<paragraph id="HFE6EA111CE2B4DE59ABC3EF6A4AF9CF0"><enum>(1)</enum><text>The amount
determined under this subsection with respect to any taxpayer for any taxable
year is the additional amount computed under subsection (b) multiplied by the
ratio that—</text>
<subparagraph id="H5E43B35DA94D4CB09B2BA071F00539B2"><enum>(A)</enum><text>the result
of—</text>
<clause id="H509CCD79E6C34B80B709A1968A4E04A8"><enum>(i)</enum><text>all itemized
deductions (before the application of section 68), plus</text>
</clause><clause id="HD0543F61336C4BC998D6D45C8AD37B7D"><enum>(ii)</enum><text>the specified
above-the-line deductions and specified exclusions, minus</text>
</clause><clause id="HEAD19D974CFF471D9D502B0273AD0250"><enum>(iii)</enum><text>the amount of
deductions disallowed under section 56(b)(1)(A) and (B), minus</text>
</clause><clause id="H5BFAB6A076194E4E9FE0D573D8400208"><enum>(iv)</enum><text>the
non-preference disallowed deductions, bears to—</text>
</clause></subparagraph><subparagraph id="H9DC56D50F5434945A3D023AF4423FBF1"><enum>(B)</enum><text>the sum of—</text>
<clause id="H743E76E1C489485BA72D0275B2D4F3A6"><enum>(i)</enum><text>the total of
itemized deductions (after the application of section 68), plus</text>
</clause><clause id="HF20232A703804A16900CF579B6FC93BA"><enum>(ii)</enum><text>the specified
above-the-line deductions and specified exclusions.</text>
</clause></subparagraph></paragraph><paragraph id="H086E287E00814F1DA3585708BFEF0264"><enum>(2)</enum><text>If the top of the
AMT exemption phase-out range for the taxpayer exceeds the minimum marginal
rate amount for the taxpayer and if the taxpayer’s alternative minimum taxable
income does not exceed the top of the AMT exemption phase-out range, the
taxpayer must increase its additional AMT amount by 7 percent of the excess
of—</text>
<subparagraph id="HAC536B3862F94939B54C56F16F481393"><enum>(A)</enum><text>the lesser
of—</text>
<clause id="H533D512D6D0E4B2A879D160327ADB59B"><enum>(i)</enum><text>the top of the AMT
exemption phase-out range, or</text>
</clause><clause id="H68A1B3973E2C4C22AAE642140BAB6D92"><enum>(ii)</enum><text>the taxpayer’s
alternative minimum taxable income, computed—</text>
<subclause id="H53E0552C3D904B04877668300A801235"><enum>(I)</enum><text>without regard to
any itemized deduction or any specified above-the-line deduction, and</text>
</subclause><subclause id="H1FDDB29EE7B148E59B0247A24B1661BF"><enum>(II)</enum><text>by including the
amount of any specified exclusion; over</text>
</subclause></clause></subparagraph><subparagraph id="HB031E87163924A5B955BEB5B1E8F8F25"><enum>(B)</enum><text>the greater
of—</text>
<clause id="HA3B52FF4E19247E18F0A0875900898DC"><enum>(i)</enum><text>the taxpayer’s
alternative minimum taxable income, or</text>
</clause><clause id="H4E6054836AB34914982DCDB8DBAD1338"><enum>(ii)</enum><text>the minimum
marginal rate amount.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HE3F2C963716D42BE80FD48A7A45CBB64"><enum>(d)</enum><header>Minimum marginal
rate amount</header><text>For purposes of this section, the term <quote>minimum
marginal rate amount</quote> means, with respect to any taxpayer for any
taxable year, the highest amount of the taxpayer’s taxable income which would
be subject to a marginal rate of tax under section 1 that is less than 36
percent with respect to such taxable year.</text>
</subsection><subsection id="H6E396A20D07343FD9D2C446FAA7B6494"><enum>(e)</enum><header>Adjusted taxable
income</header><text>For purposes of this section—</text>
<paragraph id="H80FE04EDC8264BA1B076A0EFF7D27DAE"><enum>(1)</enum><header>In
general</header><text>The term <quote>adjusted taxable income</quote> means
taxable income computed—</text>
<subparagraph id="H1F208DF00D3C425BBC17EE57477CCC06"><enum>(A)</enum><text>without regard to
any itemized deduction or any specified above-the-line deduction, and</text>
</subparagraph><subparagraph id="HC44ED66AF08F45D2B29B9C24BCDD212E"><enum>(B)</enum><text>by including in
gross income any specified exclusion.</text>
</subparagraph></paragraph><paragraph id="H7047B95CE80D457A910721B13E40E9E3"><enum>(2)</enum><header>Specified
above-the-line deduction</header><text>The term <quote>specified above-the-line
deduction</quote> means—</text>
<subparagraph id="H6E92101DDE384111A3BB063BCCB0B4F6"><enum>(A)</enum><text>the deduction
provided under section 162(l) (relating to special rules for health insurance
costs of self-employed individuals),</text>
</subparagraph><subparagraph id="H3125DB8D15FA41D1A296800103D655BE"><enum>(B)</enum><text>the deduction
provided under section 199 (relating to income attributable to domestic
production activities), and</text>
</subparagraph><subparagraph id="H8D2D9183870840CD968B5E581907A512"><enum>(C)</enum><text>the deductions
provided under the following paragraphs of section 62(a):</text>
<clause id="H38BCBD2932D142D28A45DE6E28D98BD4"><enum>(i)</enum><text>Paragraph (2)
(relating to certain trade and business deductions of employees), other than
subparagraph (A) thereof.</text>
</clause><clause id="HA13721D37EA4418F9D31095D2BC70ECC"><enum>(ii)</enum><text>Paragraph (15)
(relating to moving expenses).</text>
</clause><clause id="HE12491DB73834F99B3ACE8644846B747"><enum>(iii)</enum><text>Paragraph (16)
(relating to Archer MSAs).</text>
</clause><clause id="H62CCC057EE2846559B194CBA1CA69034"><enum>(iv)</enum><text>Paragraph (17)
(relating to interest on education loans).</text>
</clause><clause id="H1902D7EB97694816B3A4644017276412"><enum>(v)</enum><text>Paragraph (18)
(relating to higher education expenses).</text>
</clause><clause id="HB20BA28292A542ED9EA7793F2AA0F3FE"><enum>(vi)</enum><text>Paragraph (19)
(relating to health savings accounts).</text>
</clause></subparagraph></paragraph><paragraph id="H0458ED7009B04F029AC990DE19D77DCE"><enum>(3)</enum><header>Specified
exclusion</header><text>The term <quote>specified exclusion</quote>
means—</text>
<subparagraph id="HDE19AC00801F49BAA805A49D327F8538"><enum>(A)</enum><text>any interest
excluded under section 103,</text>
</subparagraph><subparagraph id="H6A7E3BF5DDB54587BD802925B40E31DE"><enum>(B)</enum><text>any exclusion with
respect to the cost described in section 6051(a)(14) (without regard to
subparagraph (B) thereof), and</text>
</subparagraph><subparagraph id="H475E513B1E60418B9DEBFFB722F923DB"><enum>(C)</enum><text>any foreign earned
income excluded under section 911.</text>
</subparagraph></paragraph></subsection><subsection id="HF070259E0C754E769983552F45D506A4"><enum>(f)</enum><header>Non-Preference
disallowed deductions</header><text>For purposes of this section, the term
<quote>AMT-allowed deductions</quote> means all itemized deductions disallowed
by section 68 multiplied by the ratio that—</text>
<paragraph id="H7532D75FD1024FD6A760654BFB6F9D4E"><enum>(1)</enum><text>a taxpayer’s
itemized deductions for the taxable year that are subject to section 68 (that
is, not including those excluded under section 68(c)) and that are not limited
under section 56(b)(1)(A) or (B), bears to</text>
</paragraph><paragraph id="H1F72145470884AD7A3E841AE558A93B7"><enum>(2)</enum><text>the taxpayer’s
itemized deductions for the taxable year that are subject to section 68 (that
is, not including those excluded under section 68(c)).</text>
</paragraph></subsection><subsection id="H094D417D3F31463B9CC5968176F359D8"><enum>(g)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations as may be appropriate to carry out
this section, including regulations which provide appropriate adjustments to
the additional AMT
amount.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HBF2D39561680484297CC50764E95BA57"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning on or after January 1, 2013.</text>
</subsection></section></subtitle><subtitle id="HAAFB04AEAF854DD08186406FB451AEA6"><enum>B</enum><header>Tax carried
interest in investment partnerships as ordinary income</header>
<section id="H12BC2F4B8D614FFCBAE40D3B3BFDB16C"><enum>411.</enum><header>Partnership
interests transferred in connection with performance of services</header>
<subsection id="HBC12C1E6847542C39002F627AE71E601"><enum>(a)</enum><header>Modification to
election To include partnership interest in gross income in year of
transfer</header><text>Subsection (c) of section 83 of the Internal Revenue
Code of 1986 is amended by redesignating paragraph (4) as paragraph (5) and by
inserting after paragraph (3) the following new paragraph:</text>
<quoted-block id="H099C01D3639347D28516080EEC847E2D" style="OLC">
<paragraph id="H07E3B2817AA0418AAC440E267A9629A7"><enum>(4)</enum><header>Partnership
interests</header><text>Except as provided by the Secretary—</text>
<subparagraph id="HD27EBCA1B9AC4D3C927805087DDE4401"><enum>(A)</enum><header>In
general</header><text>In the case of any transfer of an interest in a
partnership in connection with the provision of services to (or for the benefit
of) such partnership—</text>
<clause id="HCE1B27C6050D4301BF0FC3477DC513BD"><enum>(i)</enum><text>the fair market
value of such interest shall be treated for purposes of this section as being
equal to the amount of the distribution which the partner would receive if the
partnership sold (at the time of the transfer) all of its assets at fair market
value and distributed the proceeds of such sale (reduced by the liabilities of
the partnership) to its partners in liquidation of the partnership, and</text>
</clause><clause id="H74982A0CBC8F49BAB506F8FB31B7EB96"><enum>(ii)</enum><text>the person
receiving such interest shall be treated as having made the election under
subsection (b)(1) unless such person makes an election under this paragraph to
have such subsection not apply.</text>
</clause></subparagraph><subparagraph id="H4BBB531026C64E51B85BE4357F7A5695"><enum>(B)</enum><header>Election</header><text>The
election under subparagraph (A)(ii) shall be made under rules similar to the
rules of subsection
(b)(2).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1CD8158978784DC4ABF70F8AA03877F4"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to interests
in partnerships transferred after December 31, 2013.</text>
</subsection></section><section id="H532F07059252448B9B39499D68770B1D"><enum>412.</enum><header>Special rules
for partners providing investment management services to partnerships</header>
<subsection id="H0710F92B7E4C467E884DF80143C7FCBD"><enum>(a)</enum><header>In
general</header><text>Part I of subchapter K of chapter 1 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
section:</text>
<quoted-block id="H96451785C3EA4BC19D7906C47B69A967" style="OLC">
<section id="HFB4ADDDD3F9149E3928894DDC97C9F61"><enum>710.</enum><header>Special rules
for partners providing investment management services to partnerships</header>
<subsection id="HF2502700397342ABA324133A0DF3012E"><enum>(a)</enum><header>Treatment of
distributive share of partnership items</header><text>For purposes of this
title, in the case of an investment services partnership interest—</text>
<paragraph id="H93FA736234A24CB38B8160BAFF76D5E9"><enum>(1)</enum><header>In
general</header><text>Notwithstanding section 702(b)—</text>
<subparagraph id="H9D0ACE19D66A4CFE9C03E9621E9023BF"><enum>(A)</enum><text>an amount equal to
the net capital gain with respect to such interest for any partnership taxable
year shall be treated as ordinary income, and</text>
</subparagraph><subparagraph id="H08141BCAE2804217BAAA9CCE8F1CF88F"><enum>(B)</enum><text>subject to the
limitation of paragraph (2), an amount equal to the net capital loss with
respect to such interest for any partnership taxable year shall be treated as
an ordinary loss.</text>
</subparagraph></paragraph><paragraph id="H7E6CF7E22CBF4349B96E4CF767D2B91C"><enum>(2)</enum><header>Recharacterization
of losses limited to recharacterized gains</header><text>The amount treated as
ordinary loss under paragraph (1)(B) for any taxable year shall not exceed the
excess (if any) of—</text>
<subparagraph id="H20575AEDBCB8451BA09988D304FC61DD"><enum>(A)</enum><text>the aggregate
amount treated as ordinary income under paragraph (1)(A) with respect to the
investment services partnership interest for all preceding partnership taxable
years to which this section applies, over</text>
</subparagraph><subparagraph id="H7097BCFBF4F04B678A16AEC624C5DB15"><enum>(B)</enum><text>the aggregate
amount treated as ordinary loss under paragraph (1)(B) with respect to such
interest for all preceding partnership taxable years to which this section
applies.</text>
</subparagraph></paragraph><paragraph id="HADA9F3B1CC98400390B0A449FAD85B64"><enum>(3)</enum><header>Allocation to
items of gain and loss</header>
<subparagraph id="H264DB2211B7341B2A7B3FC73A6FE722B"><enum>(A)</enum><header>Net capital
gain</header><text>The amount treated as ordinary income under paragraph (1)(A)
shall be allocated ratably among the items of long-term capital gain taken into
account in determining such net capital gain.</text>
</subparagraph><subparagraph id="HF7FE7B721AD94ED0A8B9200D9D260883"><enum>(B)</enum><header>Net capital
loss</header><text>The amount treated as ordinary loss under paragraph (1)(B)
shall be allocated ratably among the items of long-term capital loss and
short-term capital loss taken into account in determining such net capital
loss.</text>
</subparagraph></paragraph><paragraph id="HC4EEEEDB41944D0995A24A1F65A7038E"><enum>(4)</enum><header>Terms relating
to capital gains and losses</header><text>For purposes of this section—</text>
<subparagraph id="H577C79AA34DA4D39B909AE69FFB0FC45"><enum>(A)</enum><header>In
general</header><text>Net capital gain, long-term capital gain, and long-term
capital loss, with respect to any investment services partnership interest for
any taxable year, shall be determined under section 1222, except that such
section shall be applied—</text>
<clause id="H64CFD684173C49DD9ACD54371623713F"><enum>(i)</enum><text>without regard to
the recharacterization of any item as ordinary income or ordinary loss under
this section,</text>
</clause><clause id="H3E8756E0935346A2A7356474BED7D3E0"><enum>(ii)</enum><text>by only taking
into account items of gain and loss taken into account by the holder of such
interest under section 702 with respect to such interest for such taxable
year,</text>
</clause><clause id="HB252716BAACA4119AA64AACD2CDE85A3"><enum>(iii)</enum><text>by treating
property which is taken into account in determining gains and losses to which
section 1231 applies as capital assets held for more than 1 year, and</text>
</clause><clause id="H8008406364B446589DC04C2F99FB1B73"><enum>(iv)</enum><text>without regard to
section 1202.</text>
</clause></subparagraph><subparagraph id="H0C8E6493ADE54CD2934CD1EBC74EA8D6"><enum>(B)</enum><header>Net capital
loss</header><text>The term <quote>net capital loss</quote> means the excess of
the losses from sales or exchanges of capital assets over the gains from such
sales or exchanges. Rules similar to the rules of clauses (i) through (iv) of
subparagraph (A) shall apply for purposes of the preceding sentence.</text>
</subparagraph></paragraph><paragraph id="H45C299D8D743471795387E476E5346E0"><enum>(5)</enum><header>Special rules
for dividends</header>
<subparagraph id="H95534A2A95334A618ED96602E63626A2"><enum>(A)</enum><header>Individuals</header><text>Any
dividend allocated to any investment services partnership interest shall not be
treated as qualified dividend income for purposes of section 1(h).</text>
</subparagraph><subparagraph id="H80FFA5D6D930490ABD98FF445B29ACF9"><enum>(B)</enum><header>Corporations</header><text>No
deduction shall be allowed under section 243 or 245 with respect to any
dividend allocated to any investment services partnership interest.</text>
</subparagraph></paragraph></subsection><subsection id="HC2EAD2E40F704F3AA105CD2EAE691224"><enum>(b)</enum><header>Dispositions of
partnership interests</header>
<paragraph id="H7D000DD1D6754703A4B4B88793045F42"><enum>(1)</enum><header>Gain</header>
<subparagraph id="HAE6000696B7A4A6A9C4CF8CF22B9F818"><enum>(A)</enum><header>In
general</header><text>Any gain on the disposition of an investment services
partnership interest shall be—</text>
<clause id="HB84FE2FC98B44456A3B1227A394EC8FC"><enum>(i)</enum><text>treated as
ordinary income, and</text>
</clause><clause id="HCDF6F36A840249879CD121987B9ABD7C"><enum>(ii)</enum><text>recognized
notwithstanding any other provision of this subtitle.</text>
</clause></subparagraph><subparagraph id="H9F7700B0D25A4CD7863D4444184D6607"><enum>(B)</enum><header>Exceptions;
Certain transfers to charities and related persons</header><text>Subparagraph
(A) shall not apply to—</text>
<clause id="H124BCA1B1737482F8B2F54D19DBE1B59"><enum>(i)</enum><text>a
disposition by gift,</text>
</clause><clause id="HB3A3737389D94E7BA272C8048CB75C89"><enum>(ii)</enum><text>a
transfer at death, or</text>
</clause><clause id="H9C6F832133B24AC9B4837C1C1684B839"><enum>(iii)</enum><text>other
disposition identified by the Secretary as a disposition with respect to which
it would be inconsistent with the purposes of this section to apply
subparagraph (A), if such gift, transfer, or other disposition is to an
organization described in section 170(b)(1)(A) (other than any organization
described in section 509(a)(3) or any fund or account described in section
4966(d)(2)) or a person with respect to whom the transferred interest is an
investment services partnership interest.</text>
</clause></subparagraph></paragraph><paragraph id="H24F578C586D14BBF890A741C6DF9176B"><enum>(2)</enum><header>Loss</header><text>Any
loss on the disposition of an investment services partnership interest shall be
treated as an ordinary loss to the extent of the excess (if any) of—</text>
<subparagraph id="H050096159A4B476E994E812E8C424B7A"><enum>(A)</enum><text>the aggregate
amount treated as ordinary income under subsection (a) with respect to such
interest for all partnership taxable years to which this section applies,
over</text>
</subparagraph><subparagraph id="HD3BCFDFBB27A4B9C9813D5C7482754CE"><enum>(B)</enum><text>the aggregate
amount treated as ordinary loss under subsection (a) with respect to such
interest for all partnership taxable years to which this section
applies.</text>
</subparagraph></paragraph><paragraph id="HC7FC58CB1DA64904AC367D5446FA264F"><enum>(3)</enum><header>Election with
respect to certain exchanges</header><text>Paragraph (1)(A)(ii) shall not apply
to the contribution of an investment services partnership interest to a
partnership in exchange for an interest in such partnership if—</text>
<subparagraph id="H4044052F8D5E4A0480C7EBDBE14E09EC"><enum>(A)</enum><text>the taxpayer makes
an irrevocable election to treat the partnership interest received in the
exchange as an investment services partnership interest, and</text>
</subparagraph><subparagraph id="H219AEF8519B14E86A458C2A922869DA9"><enum>(B)</enum><text>the taxpayer
agrees to comply with such reporting and recordkeeping requirements as the
Secretary may prescribe.</text>
</subparagraph></paragraph><paragraph id="HD95C4939A1D7494CB9BEC2768FED60E4"><enum>(4)</enum><header>Distributions of
partnership property</header>
<subparagraph id="HE30A96F2989F4AC5B97C59D317A61A3A"><enum>(A)</enum><header>In
general</header><text>In the case of any distribution of property by a
partnership with respect to any investment services partnership interest held
by a partner, the partner receiving such property shall recognize gain equal to
the excess (if any) of—</text>
<clause id="H8A30E72678334D7E8EE90CCB08CEB457"><enum>(i)</enum><text>the fair market
value of such property at the time of such distribution, over</text>
</clause><clause id="HB5228CE45F534C4BBA9C11ACA44A8C7C"><enum>(ii)</enum><text>the adjusted
basis of such property in the hands of such partner (determined without regard
to subparagraph (C)).</text>
</clause></subparagraph><subparagraph id="HEEE96C38F37948C782E9C8F038333626"><enum>(B)</enum><header>Treatment of
gain as ordinary income</header><text>Any gain recognized by such partner under
subparagraph (A) shall be treated as ordinary income to the same extent and in
the same manner as the increase in such partner’s distributive share of the
taxable income of the partnership would be treated under subsection (a) if,
immediately prior to the distribution, the partnership had sold the distributed
property at fair market value and all of the gain from such disposition were
allocated to such partner. For purposes of applying paragraphs (2) and (3) of
subsection (a), any gain treated as ordinary income under this subparagraph
shall be treated as an amount treated as ordinary income under subsection
(a)(1)(A).</text>
</subparagraph><subparagraph id="H1DF3268F19E1433EA05FE97F44718A36"><enum>(C)</enum><header>Adjustment of
basis</header><text>In the case a distribution to which subparagraph (A)
applies, the basis of the distributed property in the hands of the distributee
partner shall be the fair market value of such property.</text>
</subparagraph><subparagraph id="H848B18D669DC4EC18B105C8426AD6695"><enum>(D)</enum><header>Special rules
with respect to mergers, divisions, and technical terminations</header><text>In
the case of a taxpayer which satisfies requirements similar to the requirements
of subparagraphs (A) and (B) of paragraph (3), this paragraph and paragraph
(1)(A)(ii) shall not apply to the distribution of a partnership interest if
such distribution is in connection with a contribution (or deemed contribution)
of any property of the partnership to which section 721 applies pursuant to a
transaction described in paragraph (1)(B) or (2) of section 708(b).</text>
</subparagraph></paragraph></subsection><subsection id="H73E846B9B59F4F36B57179093AB8DE8A"><enum>(c)</enum><header>Investment
services partnership interest</header><text>For purposes of this
section—</text>
<paragraph id="HA81F20FF042D4EDD818B16E2CFB1053C"><enum>(1)</enum><header>In
general</header><text>The term <quote>investment services partnership
interest</quote> means any interest in an investment partnership acquired or
held by any person in connection with the conduct of a trade or business
described in paragraph (2) by such person (or any person related to such
person). An interest in an investment partnership held by any person—</text>
<subparagraph id="HA8C2675C8BE44B599BCC780A48CE9E3A"><enum>(A)</enum><text>shall not be
treated as an investment services partnership interest for any period before
the first date on which it is so held in connection with such a trade or
business,</text>
</subparagraph><subparagraph id="H7BEDF56652E94484BD3A1A0E9D3FDBA9"><enum>(B)</enum><text>shall not cease to
be an investment services partnership interest merely because such person holds
such interest other than in connection with such a trade or business,
and</text>
</subparagraph><subparagraph id="H0E8A075D400C450F877DF0CC9564A15E"><enum>(C)</enum><text>shall be treated
as an investment services partnership interest if acquired from a related
person in whose hands such interest was an investment services partnership
interest.</text>
</subparagraph></paragraph><paragraph id="H7EDC6668EB0844CFBC145DBC8A45B30E"><enum>(2)</enum><header>Businesses to
which this section applies</header><text>A trade or business is described in
this paragraph if such trade or business primarily involves the performance of
any of the following services with respect to assets held (directly or
indirectly) by the investment partnership referred to in paragraph (1):</text>
<subparagraph id="H5D371547DE4546E883F82C04B4C31DBF"><enum>(A)</enum><text>Advising as to the
advisability of investing in, purchasing, or selling any specified
asset.</text>
</subparagraph><subparagraph id="H436A441F2DFD40C6A93A3004D45786B8"><enum>(B)</enum><text>Managing,
acquiring, or disposing of any specified asset.</text>
</subparagraph><subparagraph id="HB00C5113A8E947BBA64084F611AA80B5"><enum>(C)</enum><text>Arranging
financing with respect to acquiring specified assets.</text>
</subparagraph><subparagraph id="H4DFD8FA87E8F4E4CBD1929B6C728A1E0"><enum>(D)</enum><text>Any activity in
support of any service described in subparagraphs (A) through (C).</text>
</subparagraph></paragraph><paragraph id="HBA7D706892224B26B198F64AB01947FD"><enum>(3)</enum><header>Investment
partnership</header>
<subparagraph id="H2467179021084AA3A95700AECFF51161"><enum>(A)</enum><header>In
general</header><text>The term <quote>investment partnership</quote> means any
partnership if, at the end of any calendar quarter ending after December 31,
2012—</text>
<clause id="H2768E1A6940E4EFBA0ABD41F6F0F9341"><enum>(i)</enum><text>substantially all
of the assets of the partnership are specified assets (determined without
regard to any section 197 intangible within the meaning of section 197(d)),
and</text>
</clause><clause id="H91D9E68D76954FC9A83070A6CF1CDC84"><enum>(ii)</enum><text>more than half of
the contributed capital of the partnership is attributable to contributions of
property by one or more persons in exchange for interests in the partnership
which (in the hands of such persons) constitute property held for the
production of income.</text>
</clause></subparagraph><subparagraph id="H9FAFE33ED1344C8CBA78EA558823309E"><enum>(B)</enum><header>Special rules
for determining if property held for the production of
income</header><text>Except as otherwise provided by the Secretary, for
purposes of determining whether any interest in a partnership constitutes
property held for the production of income under subparagraph (A)(ii)—</text>
<clause id="HACCC69B1E02542ECA5FDF8796AECF7CF"><enum>(i)</enum><text>any election under
subsection (e) or (f) of section 475 shall be disregarded, and</text>
</clause><clause id="H4AFFA624C21D423CB63AEC0AC530EEA9"><enum>(ii)</enum><text>paragraph (5)(B)
shall not apply.</text>
</clause></subparagraph><subparagraph id="H580CD3E616CA47AD96D52054CFBB8BD6"><enum>(C)</enum><header>Antiabuse
rules</header><text>The Secretary may issue regulations or other guidance which
prevent the avoidance of the purposes of subparagraph (A), including
regulations or other guidance which treat convertible and contingent debt (and
other debt having the attributes of equity) as a capital interest in the
partnership.</text>
</subparagraph><subparagraph id="HC2480DA0DB904D23838B76F232ABA81E"><enum>(D)</enum><header>Controlled
groups of entities</header>
<clause id="H3368C261672141FB90C8D5F5B40D0286"><enum>(i)</enum><header>In
general</header><text>In the case of a controlled group of entities, if an
interest in the partnership received in exchange for a contribution to the
capital of the partnership by any member of such controlled group would (in the
hands of such member) constitute property not held for the production of
income, then any interest in such partnership held by any member of such group
shall be treated for purposes of subparagraph (A) as constituting (in the hands
of such member) property not held for the production of income.</text>
</clause><clause id="H6E66202987C242509B939CA4AE84D844"><enum>(ii)</enum><header>Controlled
group of entities</header><text>For purposes of clause (i), the term
<quote>controlled group of entities</quote> means a controlled group of
corporations as defined in section 1563(a)(1), applied without regard to
subsections (a)(4) and (b)(2) of section 1563. A partnership or any other
entity (other than a corporation) shall be treated as a member of a controlled
group of entities if such entity is controlled (within the meaning of section
954(d)(3)) by members of such group (including any entity treated as a member
of such group by reason of this sentence).</text>
</clause></subparagraph></paragraph><paragraph id="H65E4AC978E2949D9A83033138ADD08B7"><enum>(4)</enum><header>Specified
asset</header><text>The term <quote>specified asset</quote> means securities
(as defined in section 475(c)(2) without regard to the last sentence thereof),
real estate held for rental or investment, interests in partnerships,
commodities (as defined in section 475(e)(2)), cash or cash equivalents, or
options or derivative contracts with respect to any of the foregoing.</text>
</paragraph><paragraph id="HF8A1DA4FDE094571B862AD3F4D46A2E4"><enum>(5)</enum><header>Related
persons</header>
<subparagraph id="HCE7A6015F83048EF80137EE7E7CE8ECD"><enum>(A)</enum><header>In
general</header><text>A person shall be treated as related to another person if
the relationship between such persons is described in section 267(b) or
707(b).</text>
</subparagraph><subparagraph id="HFC2F44B788304A4DBA9CB41C0BF5A798"><enum>(B)</enum><header>Attribution of
partner services</header><text>Any service described in paragraph (2) which is
provided by a partner of a partnership shall be treated as also provided by
such partnership.</text>
</subparagraph></paragraph></subsection><subsection id="H795CBAB6AF9A49D28C22F169C1D73BF0"><enum>(d)</enum><header>Exception for
certain capital interests</header>
<paragraph id="H00A66BA86A2A488FA727EEDA30827586"><enum>(1)</enum><header>In
general</header><text>In the case of any portion of an investment services
partnership interest which is a qualified capital interest, all items of gain
and loss (and any dividends) which are allocated to such qualified capital
interest shall not be taken into account under subsection (a) if—</text>
<subparagraph id="H58F88E169EAC4221BAB5AF6017F89692"><enum>(A)</enum><text>allocations of
items are made by the partnership to such qualified capital interest in the
same manner as such allocations are made to other qualified capital interests
held by partners who do not provide any services described in subsection (c)(2)
and who are not related to the partner holding the qualified capital interest,
and</text>
</subparagraph><subparagraph id="H146D0FCA246D4D009E628E293DAD0493"><enum>(B)</enum><text>the allocations
made to such other interests are significant compared to the allocations made
to such qualified capital interest.</text>
</subparagraph></paragraph><paragraph id="HD61CAF295DF94A6DA3DDE2FEB479C223"><enum>(2)</enum><header>Authority to
provide exceptions to allocation requirements</header><text>To the extent
provided by the Secretary in regulations or other guidance—</text>
<subparagraph id="H8F2298F69E284915A47F6A8A55D7219C"><enum>(A)</enum><header>Allocations to
portion of qualified capital interest</header><text>Paragraph (1) may be
applied separately with respect to a portion of a qualified capital
interest.</text>
</subparagraph><subparagraph id="H64BF63B90D5A4DFA8933FE4B3B1054F3"><enum>(B)</enum><header>No or
insignificant allocations to nonservice providers</header><text>In any case in
which the requirements of paragraph (1)(B) are not satisfied, items of gain and
loss (and any dividends) shall not be taken into account under subsection (a)
to the extent that such items are properly allocable under such regulations or
other guidance to qualified capital interests.</text>
</subparagraph><subparagraph id="HAE22CDFE9CA54BD0B90BC90E4305D9EC"><enum>(C)</enum><header>Allocations to
service providers’ qualified capital interests which are less than other
allocations</header><text>Allocations shall not be treated as failing to meet
the requirement of paragraph (1)(A) merely because the allocations to the
qualified capital interest represent a lower return than the allocations made
to the other qualified capital interests referred to in such paragraph.</text>
</subparagraph></paragraph><paragraph id="H08B5E2FA301847F69A40CABEBCAF05A9"><enum>(3)</enum><header>Special rule for
changes in services and capital contributions</header><text>In the case of an
interest in a partnership which was not an investment services partnership
interest and which, by reason of a change in the services with respect to
assets held (directly or indirectly) by the partnership or by reason of a
change in the capital contributions to such partnership, becomes an investment
services partnership interest, the qualified capital interest of the holder of
such partnership interest immediately after such change shall not, for purposes
of this subsection, be less than the fair market value of such interest
(determined immediately before such change).</text>
</paragraph><paragraph id="HF8F29CA8688C405DA1EAFAB2188EC92F"><enum>(4)</enum><header>Special rule for
tiered partnerships</header><text>Except as otherwise provided by the
Secretary, in the case of tiered partnerships, all items which are allocated in
a manner which meets the requirements of paragraph (1) to qualified capital
interests in a lower-tier partnership shall retain such character to the extent
allocated on the basis of qualified capital interests in any upper-tier
partnership.</text>
</paragraph><paragraph id="H2669CE86F11441C8B29599AC2226CBAF"><enum>(5)</enum><header>Exception for
no-self-charged carry and management fee provisions</header><text>Except as
otherwise provided by the Secretary, an interest shall not fail to be treated
as satisfying the requirement of paragraph (1)(A) merely because the
allocations made by the partnership to such interest do not reflect the cost of
services described in subsection (c)(2) which are provided (directly or
indirectly) to the partnership by the holder of such interest (or a related
person).</text>
</paragraph><paragraph id="H347BD122E1DD46829FD26FC9AC784E2F"><enum>(6)</enum><header>Special rule for
dispositions</header><text>In the case of any investment services partnership
interest any portion of which is a qualified capital interest, subsection (b)
shall not apply to so much of any gain or loss as bears the same proportion to
the entire amount of such gain or loss as—</text>
<subparagraph id="HB616521ADA924173B793F79F219D9121"><enum>(A)</enum><text>the distributive
share of gain or loss that would have been allocated to the qualified capital
interest (consistent with the requirements of paragraph (1)) if the partnership
had sold all of its assets at fair market value immediately before the
disposition, bears to</text>
</subparagraph><subparagraph id="HD464547EB105411FA2439372EDCA71D9"><enum>(B)</enum><text>the distributive
share of gain or loss that would have been so allocated to the investment
services partnership interest of which such qualified capital interest is a
part.</text>
</subparagraph></paragraph><paragraph id="HB3A382D3C1394CA3877B6D50412CFAD4"><enum>(7)</enum><header>Qualified
capital interest</header><text>For purposes of this subsection—</text>
<subparagraph id="HA3A4ED2A98264B80A26C8B4FAF3E306E"><enum>(A)</enum><header>In
general</header><text>The term <quote>qualified capital interest</quote> means
so much of a partner’s interest in the capital of the partnership as is
attributable to—</text>
<clause id="H10060C271AC44C799843E0F30A90A585"><enum>(i)</enum><text>the fair market
value of any money or other property contributed to the partnership in exchange
for such interest (determined without regard to section 752(a)),</text>
</clause><clause id="HFFCABCE474A44B8A8F8E7E7A0311C4DF"><enum>(ii)</enum><text>any amounts which
have been included in gross income under section 83 with respect to the
transfer of such interest, and</text>
</clause><clause id="H903650EAEABF4525A134C2EA23A34249"><enum>(iii)</enum><text>the excess (if
any) of—</text>
<subclause id="HA86D6468150749F587EF140472C27A53"><enum>(I)</enum><text>any items of
income and gain taken into account under section 702 with respect to such
interest, over</text>
</subclause><subclause id="H8EE0BAA41C89462287416F60653640A5"><enum>(II)</enum><text>any items of
deduction and loss so taken into account.</text>
</subclause></clause></subparagraph><subparagraph id="HBD77465107BA4A22AB135C5557D955BE"><enum>(B)</enum><header>Adjustment to
qualified capital interest</header>
<clause id="H682B32D79E8A4694BDB129616AF427BE"><enum>(i)</enum><header>Distributions
and losses</header><text>The qualified capital interest shall be reduced by
distributions from the partnership with respect to such interest and by the
excess (if any) of the amount described in subparagraph (A)(iii)(II) over the
amount described in subparagraph (A)(iii)(I).</text>
</clause><clause id="H99B2C1A767314F6C8B01C8FA46E6FAB5"><enum>(ii)</enum><header>Special rule
for contributions of property</header><text>In the case of any contribution of
property described in subparagraph (A)(i) with respect to which the fair market
value of such property is not equal to the adjusted basis of such property
immediately before such contribution, proper adjustments shall be made to the
qualified capital interest to take into account such difference consistent with
such regulations or other guidance as the Secretary may provide.</text>
</clause></subparagraph><subparagraph id="H664410DD1EEA46C4931908E2280C7CFA"><enum>(C)</enum><header>Technical
terminations, etc., disregarded</header><text>No increase or decrease in the
qualified capital interest of any partner shall result from a termination,
merger, consolidation, or division described in section 708, or any similar
transaction.</text>
</subparagraph></paragraph><paragraph id="HC9DBDDB9B2404A57A8BEE9AD034DB55E"><enum>(8)</enum><header>Treatment of
certain loans</header>
<subparagraph id="H818FBF28C8A2447BBA4000128642209E"><enum>(A)</enum><header>Proceeds of
partnership loans not treated as qualified capital interest of service
providing partners</header><text>For purposes of this subsection, an investment
services partnership interest shall not be treated as a qualified capital
interest to the extent that such interest is acquired in connection with the
proceeds of any loan or other advance made or guaranteed, directly or
indirectly, by any other partner or the partnership (or any person related to
any such other partner or the partnership). The preceding sentence shall not
apply to the extent the loan or other advance is repaid before January 1, 2013
unless such repayment is made with the proceeds of a loan or other advance
described in the preceding sentence.</text>
</subparagraph><subparagraph id="H49DD43BFD154461889A14E81A0876030"><enum>(B)</enum><header>Reduction in
allocations to qualified capital interests for loans from nonservice-providing
partners to the partnership</header><text>For purposes of this subsection, any
loan or other advance to the partnership made or guaranteed, directly or
indirectly, by a partner not providing services described in subsection (c)(2)
to the partnership (or any person related to such partner) shall be taken into
account in determining the qualified capital interests of the partners in the
partnership.</text>
</subparagraph></paragraph></subsection><subsection id="H1C026F1190F14919AD1CA0496D30F34D"><enum>(e)</enum><header>Other income and
gain in connection with investment management services</header>
<paragraph id="H964966134CE144E9B6FEC71233D422FA"><enum>(1)</enum><header>In
general</header><text>If—</text>
<subparagraph id="HC0C6D0ED25F34EABB6931FA7EEF572F6"><enum>(A)</enum><text>a person performs
(directly or indirectly) investment management services for any investment
entity,</text>
</subparagraph><subparagraph id="HB12562F193774E1A89E4C83A87C33F98"><enum>(B)</enum><text>such person holds
(directly or indirectly) a disqualified interest with respect to such entity,
and</text>
</subparagraph><subparagraph id="H9E77B3748AF9472F8DFE35E55B07FA40"><enum>(C)</enum><text>the value of such
interest (or payments thereunder) is substantially related to the amount of
income or gain (whether or not realized) from the assets with respect to which
the investment management services are performed, any income or gain with
respect to such interest shall be treated as ordinary income. Rules similar to
the rules of subsections (a)(5) and (d) shall apply for purposes of this
subsection.</text>
</subparagraph></paragraph><paragraph id="HBE9F4F7D1ABB45689A92280B79B923AD"><enum>(2)</enum><header>Definitions</header><text>For
purposes of this subsection—</text>
<subparagraph id="HCE910C0C25D04570B10A4E36ABCC86EA"><enum>(A)</enum><header>Disqualified
interest</header>
<clause id="HF41BDCE4DF36454AB2FC8431DA34B6FD"><enum>(i)</enum><header>In
general</header><text>The term <quote>disqualified interest</quote> means, with
respect to any investment entity—</text>
<subclause id="HBA4CBACBBE9E470A93F43BFF39B0E2AF"><enum>(I)</enum><text>any interest in
such entity other than indebtedness,</text>
</subclause><subclause id="HB94EC081F0E74D01BC9247A3A7BB9D01"><enum>(II)</enum><text>convertible or
contingent debt of such entity,</text>
</subclause><subclause id="H538775FCA0E847748FBB7BC5374654E9"><enum>(III)</enum><text>any option or
other right to acquire property described in subclause (I) or (II), and</text>
</subclause><subclause id="H25AEFAA115DD44989ACA1B3C9E2E9A64"><enum>(IV)</enum><text>any derivative
instrument entered into (directly or indirectly) with such entity or any
investor in such entity.</text>
</subclause></clause><clause id="H81544AF9A6AD424BAA8BEB9808131CEF"><enum>(ii)</enum><header>Exceptions</header><text>Such
term shall not include—</text>
<subclause id="H484DB255728D4D59BC0C346F4E6D457A"><enum>(I)</enum><text>a partnership
interest,</text>
</subclause><subclause id="HD24BA0293F4D40A7BA86995A1282EDD2"><enum>(II)</enum><text>except as
provided by the Secretary, any interest in a taxable corporation, and</text>
</subclause><subclause id="H53984342B58F4F6F85721F8406D1A6CA"><enum>(III)</enum><text>except as
provided by the Secretary, stock in an S corporation.</text>
</subclause></clause></subparagraph><subparagraph id="HEC47487645524C368849184FD38CDBCB"><enum>(B)</enum><header>Taxable
corporation</header><text>The term <quote>taxable corporation</quote>
means—</text>
<clause id="H6C78F81551B8452DB9DE1434EC32D820"><enum>(i)</enum><text>a
domestic C corporation, or</text>
</clause><clause id="HD7D430609EF14977A605020E7B177C9B"><enum>(ii)</enum><text>a
foreign corporation substantially all of the income of which is—</text>
<subclause id="H9298F2A508474BA49EA1EE0B7455DD5E"><enum>(I)</enum><text>effectively
connected with the conduct of a trade or business in the United States,
or</text>
</subclause><subclause id="H4899368D716A40AA82246BF045AF5E46"><enum>(II)</enum><text>subject to a
comprehensive foreign income tax (as defined in section 457A(d)(2)).</text>
</subclause></clause></subparagraph><subparagraph id="H1F81DF41CF544B0684CB119C969FBBA5"><enum>(C)</enum><header>Investment
management services</header><text>The term <quote>investment management
services</quote> means a substantial quantity of any of the services described
in subsection (c)(2).</text>
</subparagraph><subparagraph id="H8CFD2FEACB514516BC9AD96C2524CFF2"><enum>(D)</enum><header>Investment
entity</header><text>The term <quote>investment entity</quote> means any entity
which, if it were a partnership, would be an investment partnership.</text>
</subparagraph></paragraph></subsection><subsection id="H543D4D84854740FF850C0FB63FBFF4A5"><enum>(f)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations or other guidance as is necessary or
appropriate to carry out the purposes of this section, including regulations or
other guidance to—</text>
<paragraph id="H44DACBF5B8604C649D730DBC83CCCEE8"><enum>(1)</enum><text>provide
modifications to the application of this section (including treating related
persons as not related to one another) to the extent such modification is
consistent with the purposes of this section, and</text>
</paragraph><paragraph id="H41D18EF37078473DB29A0FE25C1C27C1"><enum>(2)</enum><text>coordinate this
section with the other provisions of this title.</text>
</paragraph></subsection><subsection id="H5B1879E659084AE19AF58917115C91CE"><enum>(g)</enum><header>Cross
reference</header><text>For 40 percent penalty on certain underpayments due to
the avoidance of this section, see section
6662.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF0FA2FD4714346D1B00B028DDBBB0429"><enum>(b)</enum><header>Application of
section 751 to indirect dispositions of investment services partnership
interests</header>
<paragraph id="H7C827D77A5564A00B148D7F605D4B5DF"><enum>(1)</enum><header>In
general</header><text>Subsection (a) of section 751 of the Internal Revenue
Code of 1986 is amended by striking <quote>or</quote> at the end of paragraph
(1), by inserting <quote>or</quote> at the end of paragraph (2), and by
inserting after paragraph (2) the following new paragraph:</text>
<quoted-block id="H7002BA93F90C4F3887CC424930F74236" style="OLC">
<paragraph id="H71F6C6954DAC4D5DA9E8726F210363DB"><enum>(3)</enum><text>investment
services partnership interests held by the
partnership,</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HE215EFA4EEBC4A18BAC8C7F1E340A01F"><enum>(2)</enum><header>Certain
distributions treated as sales or exchanges</header><text>Subparagraph (A) of
<external-xref legal-doc="usc" parsable-cite="usc/26/751">section 751(b)(1)</external-xref> of the Internal Revenue Code of 1986 is amended by striking
<quote>or</quote> at the end of clause (i), by inserting <quote>or</quote> at
the end of clause (ii), and by inserting after clause (ii) the following new
clause:</text>
<quoted-block id="HE1EFF8BA95474025A32E35347224B816" style="OLC">
<clause id="H3ED9F84E43714E5B9E3F18F0A61C97FD"><enum>(iii)</enum><text>investment
services partnership interests held by the
partnership,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H416DD44E7EEF405A8A6373EB4DDB9168"><enum>(3)</enum><header>Application of
special rules in the case of tiered partnerships</header><text>Subsection (f)
of <external-xref legal-doc="usc" parsable-cite="usc/26/751">section 751</external-xref> of the Internal Revenue Code of 1986 is amended by striking
<quote>or</quote> at the end of paragraph (1), by inserting <quote>or</quote>
at the end of paragraph (2), and by inserting after paragraph (2) the following
new paragraph:</text>
<quoted-block id="H664C52316A39431E9E124D96144F5D6B" style="OLC">
<paragraph id="HD2CB4CCCD78442689321FACCF95892A8"><enum>(3)</enum><text>investment
services partnership interests held by the
partnership,</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H7396A45B3B1D44CBB5AC714DD3DF1706"><enum>(4)</enum><header>Investment
services partnership interests; qualified capital
interests</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/751">Section 751</external-xref> of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:</text>
<quoted-block id="H752E386E3F97461A97A15993E54FBA31" style="OLC">
<subsection id="HA01D54BDBD7D49D293190AE1D2FCC654"><enum>(g)</enum><header>Investment
services partnership interests</header><text>For purposes of this
section—</text>
<paragraph id="HCE682DC1116A44918F57F42FC8A0E51A"><enum>(1)</enum><header>In
general</header><text>The term <quote>investment services partnership
interest</quote> has the meaning given such term by section 710(c).</text>
</paragraph><paragraph id="HB3DFC01D0B314834AD63B012C4980133"><enum>(2)</enum><header>Adjustments for
qualified capital interests</header><text>The amount to which subsection (a)
applies by reason of paragraph (3) thereof shall not include so much of such
amount as is attributable to any portion of the investment services partnership
interest which is a qualified capital interest (determined under rules similar
to the rules of section 710(d)).</text>
</paragraph><paragraph id="H79FE279E7EBD4AE0A6B7AAFCB69487B3"><enum>(3)</enum><header>Recognition of
gains</header><text>Any gain with respect to which subsection (a) applies by
reason of paragraph (3) thereof shall be recognized notwithstanding any other
provision of this title.</text>
</paragraph><paragraph id="H2E06DDFDE72A4392B85C94F54037EB84"><enum>(4)</enum><header>Coordination
with inventory items</header><text>An investment services partnership interest
held by the partnership shall not be treated as an inventory item of the
partnership.</text>
</paragraph><paragraph id="H6DBA97B1BF9C4FFB9BD47C22F1936423"><enum>(5)</enum><header>Prevention of
double counting</header><text>Under regulations or other guidance prescribed by
the Secretary, subsection (a)(3) shall not apply with respect to any amount to
which section 710
applies.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H2DD3DF63B44B4FF0AA7EC539BF5D383E"><enum>(c)</enum><header>Treatment for
purposes of section 7704</header><text>Subsection (d) of section 7704 of the
Internal Revenue Code of 1986 is amended by adding at the end the following new
paragraph:</text>
<quoted-block id="HEBF889ACD1F14711852E4279E027B654" style="OLC">
<paragraph id="H3771FE0BE40D4C869CF31D16C7685832"><enum>(6)</enum><header>Income from
certain carried interests not qualified</header>
<subparagraph id="H64A2F4978255484792105405543765F4"><enum>(A)</enum><header>In
general</header><text>Specified carried interest income shall not be treated as
qualifying income.</text>
</subparagraph><subparagraph id="HE62007A32E9345A8A7597BBEDE89EC8C"><enum>(B)</enum><header>Specified
carried interest income</header><text>For purposes of this paragraph—</text>
<clause id="H844BA8567D70436FA04F1ACC8915C16E"><enum>(i)</enum><header>In
general</header><text>The term <quote>specified carried interest income</quote>
means—</text>
<subclause id="H375D2E18CDE4443691C31AB5600BFDBD"><enum>(I)</enum><text>any item of income
or gain allocated to an investment services partnership interest (as defined in
section 710(c)) held by the partnership,</text>
</subclause><subclause id="H4E064BF4513147C884CD69794CF7EFAE"><enum>(II)</enum><text>any gain on the
disposition of an investment services partnership interest (as so defined) or a
partnership interest to which (in the hands of the partnership) section 751
applies, and</text>
</subclause><subclause id="H45A0BC26E94445D29CF0393792CA5602"><enum>(III)</enum><text>any income or
gain taken into account by the partnership under subsection (b)(4) or (e) of
section 710.</text>
</subclause></clause><clause id="H6A427F59F32A4454B2B9553CC1F7B15A"><enum>(ii)</enum><header>Exception for
qualified capital interests</header><text>A rule similar to the rule of section
710(d) shall apply for purposes of clause (i).</text>
</clause></subparagraph><subparagraph id="HDB806C049F1148F4A837ADD3FE5192B5"><enum>(C)</enum><header>Coordination
with other provisions</header><text>Subparagraph (A) shall not apply to any
item described in paragraph (1)(E) (or so much of paragraph (1)(F) as relates
to paragraph (1)(E)).</text>
</subparagraph><subparagraph id="HFEF9E2A16A164BE7B9FD6DBC01A3838D"><enum>(D)</enum><header>Special rules
for certain partnerships</header>
<clause id="H8D39FF3025ED41DE844D4BB65701CDC9"><enum>(i)</enum><header>Certain
partnerships owned by real estate investment trusts</header><text>Subparagraph
(A) shall not apply in the case of a partnership which meets each of the
following requirements:</text>
<subclause id="H97A3193879B64991BAB64DB767A287FE"><enum>(I)</enum><text>Such partnership
is treated as publicly traded under this section solely by reason of interests
in such partnership being convertible into interests in a real estate
investment trust which is publicly traded.</text>
</subclause><subclause id="H704597B31CAE427F9A1D8A7CA9FF696F"><enum>(II)</enum><text>50 percent or
more of the capital and profits interests of such partnership are owned,
directly or indirectly, at all times during the taxable year by such real
estate investment trust (determined with the application of section
267(c)).</text>
</subclause><subclause id="HE3C0793FD7A34390BFB3E08FE3813510"><enum>(III)</enum><text>Such partnership
meets the requirements of paragraphs (2), (3), and (4) of section
856(c).</text>
</subclause></clause><clause id="HE759835EEAD24D27AB528EF3E40EC110"><enum>(ii)</enum><header>Certain
partnerships owning other publicly traded
partnerships</header><text>Subparagraph (A) shall not apply in the case of a
partnership which meets each of the following requirements:</text>
<subclause id="H289818D789184FECBF337BDA427EF6AB"><enum>(I)</enum><text>Substantially all
of the assets of such partnership consist of interests in one or more publicly
traded partnerships (determined without regard to subsection (b)(2)).</text>
</subclause><subclause id="H8A46D0DEB0574BCAAB76E954A1BB7F89"><enum>(II)</enum><text>Substantially all
of the income of such partnership is ordinary income or section 1231 gain (as
defined in section 1231(a)(3)).</text>
</subclause></clause></subparagraph><subparagraph id="H17020E561FDF48E4A82EA82D9CA5E938"><enum>(E)</enum><header>Transitional
rule</header><text>Subparagraph (A) shall not apply to any taxable year of the
partnership beginning before the date which is 10 years after January 1,
2014.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H441234EF1B0A441D9E42D9E3E26C1241"><enum>(d)</enum><header>Imposition of
penalty on underpayments</header>
<paragraph id="H1791AE7F96804234836F8B1A02F243DB"><enum>(1)</enum><header>In
general</header><text>Subsection (b) of section 6662 of the Internal Revenue
Code of 1986 is amended by inserting after paragraph (7) the following new
paragraph:</text>
<quoted-block id="H06B1CAAC86D04F2082733E6FCF6FAC12" style="OLC">
<paragraph id="HE70F6263B622498AB01061D16450261C"><enum>(8)</enum><text>The application of
section 710(e) or the regulations or other guidance prescribed under section
710(h) to prevent the avoidance of the purposes of section
710.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H0F1E0F7064BA4046999923ADCFA25F91"><enum>(2)</enum><header>Amount of
penalty</header>
<subparagraph id="HB7BD37FBE1FE4D4589F9875F672DF61D"><enum>(A)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6662">Section 6662</external-xref> of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:</text>
<quoted-block id="HF20B1E324FF844CCB0631EB54597F777" style="OLC">
<subsection id="H530A80C7B7BC4A30BC1B9412515C0299"><enum>(k)</enum><header>Increase in
penalty in case of property transferred for investment management
services</header><text>In the case of any portion of an underpayment to which
this section applies by reason of subsection (b)(8), subsection (a) shall be
applied with respect to such portion by substituting <quote>40 percent</quote>
for <quote>20
percent</quote>.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H73239587090248F28CCE286C5D6DFF0B"><enum>(B)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 6662A(e)(2) is amended by striking <quote>or (i)</quote> and inserting
<quote>, (i), or (k)</quote>.</text>
</subparagraph></paragraph><paragraph id="HD10E033DCFFA469895942867814B3E4F"><enum>(3)</enum><header>Special rules
for application of reasonable cause exception</header><text display-inline="yes-display-inline">Subsection (c) of section 6664 is
amended—</text>
<subparagraph id="H3D059457032542FCBBB35B96024A7FA1"><enum>(A)</enum><text>by redesignating
paragraphs (3) and (4) as paragraphs (4) and (5), respectively;</text>
</subparagraph><subparagraph id="H999E91415AA2439EAB33220822A8E739"><enum>(B)</enum><text>by striking
<quote>paragraph (3)</quote> in paragraph (5)(A), as so redesignated, and
inserting <quote>paragraph (4)</quote>; and</text>
</subparagraph><subparagraph id="H1DF3207BCE804495ADC9916695B82727"><enum>(C)</enum><text>by inserting after
paragraph (2) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H224AC891A08C4234B6704D5A97104481" style="OLC">
<paragraph id="H6D5BB8BBEB3C4335ACF0163C5ED0C8A9"><enum>(3)</enum><header>Special rule for
underpayments attributable to investment management services</header>
<subparagraph id="H3AF61064571A4BA7BB343D3CBEB0400E"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (1) shall
not apply to any portion of an underpayment to which section 6662 applies by
reason of subsection (b)(8) unless—</text>
<clause id="H712D9D1655E644E1AF5AF1FC4692D54D"><enum>(i)</enum><text>the relevant facts
affecting the tax treatment of the item are adequately disclosed,</text>
</clause><clause id="HEBAF2F7C1509460FAA8329ED59B6B5AD"><enum>(ii)</enum><text>there is or was
substantial authority for such treatment, and</text>
</clause><clause id="HC5747EEC0192484889760A2D8CF93964"><enum>(iii)</enum><text>the taxpayer
reasonably believed that such treatment was more likely than not the proper
treatment.</text>
</clause></subparagraph><subparagraph id="H0333F5635EC3464E8ED7672A28B1EE12"><enum>(B)</enum><header>Rules relating
to reasonable belief</header><text>Rules similar to the rules of subsection
(d)(3) shall apply for purposes of subparagraph
(A)(iii).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="H0EC40406CA094425A4C531E409FADE24"><enum>(e)</enum><header>Income and loss
from investment services partnership interests taken into account in
determining net earnings from self-Employment</header>
<paragraph id="HE8AEA053CD85488E979C5EA6DA4E7790"><enum>(1)</enum><header>Internal revenue
code</header>
<subparagraph id="HA875270240224423814FA6AC8FCDAB42"><enum>(A)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1402">Section 1402(a)</external-xref> of the Internal Revenue Code of 1986 is
amended by striking <quote>and</quote> at the end of paragraph (16), by
striking the period at the end of paragraph (17) and inserting <quote>;
and</quote>, and by inserting after paragraph (17) the following new
paragraph:</text>
<quoted-block id="HE8718A92D5AE4E40B7639F4CF6C9DE20" style="OLC">
<paragraph id="H037782E5FF89470FA811C504A37B6D4E"><enum>(18)</enum><text>notwithstanding
the preceding provisions of this subsection, in the case of any individual
engaged in the trade or business of providing services described in section
710(c)(2) with respect to any entity, investment services partnership income or
loss (as defined in subsection (m)) of such individual with respect to such
entity shall be taken into account in determining the net earnings from
self-employment of such
individual.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HFD362B8F4A9449A68A039CC6E1536ABE"><enum>(B)</enum><header>Investment
services partnership income or loss</header><text>Section 1402 of the Internal
Revenue Code is amended by adding at the end the following new
subsection:</text>
<quoted-block id="H8B6E67A23F4749069404785AE8BC24C0" style="OLC">
<subsection id="H9CF9DC885CBD47AFA3B4B9183D049CDF"><enum>(m)</enum><header>Investment
services partnership income or loss</header><text>For purposes of subsection
(a)—</text>
<paragraph id="HBC55D897918B4CC3AE02BC52762C31A4"><enum>(1)</enum><header>In
general</header><text>The term <quote>investment services partnership income or
loss</quote> means, with respect to any investment services partnership
interest (as defined in section 710(c)), the net of—</text>
<subparagraph id="HB7B5159C80A24987B7B46CF35D2AE27B"><enum>(A)</enum><text>the amounts
treated as ordinary income or ordinary loss under subsections (b) and (e) of
section 710 with respect to such interest,</text>
</subparagraph><subparagraph id="H3FE851527FB94BD9A516A55943C8E8B5"><enum>(B)</enum><text>all items of
income, gain, loss, and deduction allocated to such interest, and</text>
</subparagraph><subparagraph id="H79AA431890B64F14B36AB2F17CF6B385"><enum>(C)</enum><text>the amounts
treated as realized from the sale or exchange of property other than a capital
asset under section 751 with respect to such interest.</text>
</subparagraph></paragraph><paragraph id="H035D34FD1CFF4C2C920257F3D636E406"><enum>(2)</enum><header>Exception for
qualified capital interests</header><text>A rule similar to the rule of section
710(d) shall apply for purposes of applying paragraph
(1)(B)(ii).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HBACA9DCD531F4009860999975C36E4FE"><enum>(2)</enum><header>Social security
Act</header><text>Section 211(a) of the Social Security Act is amended by
striking <quote>and</quote> at the end of paragraph (15), by striking the
period at the end of paragraph (16) and inserting <quote>; and</quote>, and by
inserting after paragraph (16) the following new paragraph:</text>
<quoted-block id="H0D9750B419E04CEFA1F5334E71C7CC8C" style="OLC">
<paragraph id="HA804F6BD5F2A4A0FB240B76515A1363D"><enum>(17)</enum><text>Notwithstanding
the preceding provisions of this subsection, in the case of any individual
engaged in the trade or business of providing services described in section
710(c)(2) of the Internal Revenue Code of 1986 with respect to any entity,
investment services partnership income or loss (as defined in section 1402(m)
of such Code) shall be taken into account in determining the net earnings from
self-employment of such
individual.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H8C7241684F604A0592019D38E33A2464"><enum>(f)</enum><header>Conforming
amendments</header>
<paragraph id="H55BD4FA5AE4B4DD58E106F9E812B7E63"><enum>(1)</enum><text>Subsection (d) of
<external-xref legal-doc="usc" parsable-cite="usc/26/731">section 731</external-xref> of the Internal Revenue Code of 1986 is amended by inserting
<quote>section 710(b)(4) (relating to distributions of partnership
property),</quote> after <quote>to the extent otherwise provided
by</quote>.</text>
</paragraph><paragraph id="H2AAC5A69DE1840C090F708BEB0769D23"><enum>(2)</enum><text>Section 741 of the
Internal Revenue Code of 1986 is amended by inserting <quote>or section 710
(relating to special rules for partners providing investment management
services to partnerships)</quote> before the period at the end.</text>
</paragraph><paragraph id="H725BFFD0FA3A452A949D68596DA81009"><enum>(3)</enum><text>The table of
sections for part I of subchapter K of chapter 1 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new item:</text>
<quoted-block id="HA3422655A2994A51B0F78A8E624EA913" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 710. Special rules for partners
providing investment management services to
partnerships.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H4B16DC5B233447DB90A64B1FA5912843"><enum>(g)</enum><header>Effective
date</header>
<paragraph id="H7A3905AC7F4F481291F0BCCF6E38A3BD"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this subsection, the
amendments made by this section shall apply to taxable years ending after
December 31, 2013.</text>
</paragraph><paragraph id="H58669AA6C78F4BC5B539A08C17F25F8E"><enum>(2)</enum><header>Partnership
taxable years which include effective date</header><text>In applying section
710(a) of the Internal Revenue Code of 1986 (as added by this section) in the
case of any partnership taxable year which includes January 1, 2014, the amount
of the net income referred to in such section shall be treated as being the
lesser of the net income for the entire partnership taxable year or the net
income determined by only taking into account items attributable to the portion
of the partnership taxable year which is after such date.</text>
</paragraph><paragraph id="H09F5557069DA4B22875CACB3BF88F5E7"><enum>(3)</enum><header>Dispositions of
partnership interests</header>
<subparagraph id="H8C933AF6AF7B4E7992F7330C23FFF4AC"><enum>(A)</enum><header>In
general</header><text>Section 710(b) of such Code (as added by this section)
shall apply to dispositions and distributions after December 31, 2013.</text>
</subparagraph><subparagraph id="HE1978B737B59441FB33F55B1027ADC55"><enum>(B)</enum><header>Indirect
dispositions</header><text>The amendments made by subsection (b) shall apply to
transactions after December 31, 2013.</text>
</subparagraph></paragraph><paragraph id="HC99F998BFD1042DFB59926FBEB485A54"><enum>(4)</enum><header>Other income and
gain in connection with investment management services</header><text>Section
710(e) of such Code (as added by this section) shall take effect on January 1,
2014.</text>
</paragraph></subsection></section></subtitle><subtitle id="H5BCFCE02D49A486093881C112B74A887"><enum>C</enum><header>Close loophole for
corporate jet depreciation</header>
<section id="HAE27338B4E474A729396FE5F61716605"><enum>421.</enum><header>General
aviation aircraft treated as 7-year property</header>
<subsection id="H26EF9AA94C41487DAFCD42395816C97C"><enum>(a)</enum><header>In
general</header><text>Subparagraph (C) of section 168(e)(3) of the Internal
Revenue Code of 1986 (relating to classification of certain property) is
amended by striking <quote>and</quote> at the end of clause (iv), by
redesignating clause (v) as clause (vi), and by inserting after clause (iv) the
following new clause:</text>
<quoted-block id="HDF79D68BC2F4445CA85B385ED2E115A1" style="OLC">
<subsection id="H1E7E365D71404040AC399872FBB36221"><enum>(v)</enum><text>any general
aviation aircraft,
and</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H815D86E41195444BA92EFDAA746F7CAE"><enum>(b)</enum><header>Class
life</header><text>Paragraph (3) of section 168(g) Internal Revenue Code of
1986 is amended by inserting after subparagraph (E) the following new
subparagraph:</text>
<quoted-block id="HA47D49785DDD4F129FBC11FFFDCE2493" style="OLC">
<subparagraph id="HFFBA7754D8874C0BA15940E1B55165FC"><enum>(F)</enum><text>General aviation
aircraft. In the case of any general aviation aircraft, the recovery period
used for purposes of paragraph (2) shall be 12
years.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H01F9139475E94BBBA678E9DF3C43AA52"><enum>(c)</enum><header>General aviation
aircraft</header><text>Subsection (i) of section 168 Internal Revenue Code of
1986 is amended by inserting after paragraph (19) the following new
paragraph:</text>
<quoted-block id="H2E768207452C44A7B6652A6096EBFFD8" style="OLC">
<paragraph id="H28C472B28D704C0A93105D3BFE0463D9"><enum>(20)</enum><header>General
aviation aircraft</header><text>The term <quote>general aviation
aircraft</quote> means any airplane or helicopter (including airframes and
engines) not used in commercial or contract carrying of passengers or freight,
but which primarily engages in the carrying of
passengers.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H703D0CE82ECB45409B9152D5D0A350B7"><enum>(d)</enum><header>Effective
date</header><text>This section shall be effective for property placed in
service after December 31, 2013.</text>
</subsection></section></subtitle><subtitle id="H139741A87AE6462FA7E519E8F1F84609"><enum>D</enum><header>Repeal oil
subsidies</header>
<section id="H57E80E9D03334AA39494F50638E06A7A"><enum>431.</enum><header>Repeal of
deduction for intangible drilling and development costs in the case of oil and
gas wells</header>
<subsection id="HB382D53000BE45C1956A6839D186BB72"><enum>(a)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/263">Section 263(c)</external-xref> of the Internal Revenue Code of 1986
(relating to intangible drilling and development costs) is amended by adding at
the end the following new sentence: <quote>This subsection shall not apply in
the case of oil and gas wells with respect to amounts paid or incurred after
December 31, 2013.</quote>.</text>
</subsection><subsection id="HE7F79847930B474C8E93F848E01EAD09"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to amounts
paid or incurred after December 31, 2013.</text>
</subsection></section><section id="H0239AC7CBC9242238D6D7EE03160C364"><enum>432.</enum><header>Repeal of
deduction for tertiary injectants</header>
<subsection id="HEF2E12648AD24688A79B781DC3B34743"><enum>(a)</enum><header>In
general</header><text>Part VI of subchapter B of chapter 1 of the Internal
Revenue Code of 1986 (relating to itemized deductions for individuals and
corporations) is amended by striking section 193 (relating to tertiary
injectants).</text>
</subsection><subsection id="HA876B4E571414C168F23E6AC86B4C412"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for part VI of subchapter B of
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by striking the item
relating to section 193.</text>
</subsection><subsection id="H520F30497F4B4243B53A062BC731B470"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid or incurred after December 31, 2013.</text>
</subsection></section><section id="HCF13FB96E31A492D87E0E75A8E73B499"><enum>433.</enum><header>Repeal of
percentage depletion for oil and gas wells</header>
<subsection id="HFD4E2B6D54144F44BB7BF71B860ADFDB"><enum>(a)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/613A">Section 613A</external-xref> of the Internal Revenue Code of 1986
(relating to limitation on percentage depletion in the case of oil and gas
wells) is amended to read as follows:</text>
<quoted-block id="H5CA76C046603426CBEFD8CAA94CB211F" style="OLC">
<section id="H18003AB36B10495C855B085687A76CC2"><enum>613A.</enum><header>Percentage
depletion not allowed in case of oil and gas wells</header><text display-inline="no-display-inline">The
allowance for depletion under section 611 with respect to any oil and gas well
shall be computed without regard to section
613.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF982ACEEB9F649A681D3C2BA8D4EC1FF"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2013.</text>
</subsection></section><section id="HB9CB04F66CA54F2DBDA2D0ACA151514D"><enum>434.</enum><header>Section 199
deduction not allowed with respect to oil, natural gas, or primary products
thereof</header>
<subsection id="H71D50E250B28485680494076AB760307"><enum>(a)</enum><header>In
general</header><text>Subparagraph (B) of section 199(c)(4) of the Internal
Revenue Code of 1986 (relating to income attributable to domestic production
activities) is amended—</text>
<paragraph id="HB6FB188885814B50B1752FA5E4144C83"><enum>(1)</enum><text>by striking
<quote>or</quote> at the end of clause (ii),</text>
</paragraph><paragraph id="HD3CDA736319B43E28772F51D9300088C"><enum>(2)</enum><text>by striking the
period at the end of clause (iii) and inserting in lieu thereof <quote>,
or</quote>, and</text>
</paragraph><paragraph id="H4036FA2E0D7B421184F2488F8064E833"><enum>(3)</enum><text>by adding at the
end thereof the following new clause:</text>
<quoted-block id="HF6083A7E9BEE4247B4EA22E8B27B2CEE" style="OLC">
<clause id="H987C952B83184A0D8CF2D5FECE31CFC4"><enum>(iv)</enum><text>the production,
refining, processing, transportation, or distribution of oil, natural gas, or
any primary product (within the meaning of subsection (d)(9))
thereof.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HEE033408E89F4326B03CEEF03DE23650"><enum>(b)</enum><header>Conforming
amendment</header><text>Paragraph (9) of section 199(d) is amended to read as
follows:</text>
<quoted-block id="H6C67D0EED401426BBB962A57F0B09CA7" style="OLC">
<paragraph id="H6DBE2786EF174C3C997F83647523080D"><enum>(9)</enum><header>Primary
product</header><text>For purposes of subsection (c)(4)(B)(iv), the term
<quote>primary product</quote> has the same meaning as when used in section
927(a)(2)(C) as in effect before its
repeal.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HBF9DF233CF50406C9277141082543EDB"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2013.</text>
</subsection></section><section id="H8CC1975CA34042BEB4394F9B31550BC5"><enum>435.</enum><header>Repeal oil and
gas working interest exception to passive activity rules</header>
<subsection id="H5472CE73C25B476EA1531CAA46C5B1C8"><enum>(a)</enum><header>In
general</header><text>Paragraph (3) of section 469(c) of the Internal Revenue
Code of 1986 (relating to passive activity defined) is amended by adding at the
end thereof the following new subparagraph—</text>
<quoted-block id="H3129027F3C9B4FFC8C4B49F1276EA595" style="OLC">
<subparagraph id="HBD2276226F4C4B268DA3BD3757D7A149"><enum>(C)</enum><header>Termination</header><text>Subparagraph
(A) shall not apply for any taxable year beginning after December 31
2013.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H34B9FD5F0ABF463A82165C17E992127D"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2013.</text>
</subsection></section><section id="H9103DF186F6C464D802547ACCF29AB27"><enum>436.</enum><header>Repeal enhanced
oil recovery credit</header>
<subsection id="H7706434ADD62438C8FF0C7206856142F"><enum>(a)</enum><header>In
general</header><text>Subpart D of part IV of subchapter A of chapter 1of the
Internal Revenue Code of 1986 (relating to business related credits) is amended
by striking section 43 (relating to enhanced oil recovery credit).</text>
</subsection><subsection id="H302CF48F6A1A4F81A58D5791903D9ABB"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for subpart D of part IV of
subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by
striking the item relating to section 43.</text>
</subsection><subsection id="H181071DA7F1A46A89D1B1528C5DD6CE4"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2013.</text>
</subsection></section><section id="H72EC599DA475475B893BACE6A64B1C11"><enum>437.</enum><header>Uniform
seven-year amortization for geological and geophysical expenditures</header>
<subsection id="H10E5A34C0C8E49FF84C62EBBC2557B48"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 167(h) of the Internal Revenue
Code of 1986 (relating to amortization of geological and geophysical
expenditures) is amended by striking <quote>24-month</quote> and inserting in
lieu thereof <quote>7-year</quote>.</text>
</subsection><subsection id="H88B6EDAF0B724AB0A609DC0AB6158CD3"><enum>(b)</enum><header>Conforming
amendments</header><text>Section 167(h) is amended—</text>
<paragraph id="H7C5A9E4A2A9C484B98A9747AA1456DA3"><enum>(1)</enum><text>by striking
<quote>24-month</quote> in paragraph (4) and inserting in lieu thereof
<quote>7-year</quote>, and</text>
</paragraph><paragraph id="H1E3898FF435B4B8BBDF2C3C54EDC9A4D"><enum>(2)</enum><text>by striking
paragraph (5).</text>
</paragraph></subsection><subsection id="H8DC1473A52B840B3A942FD50D0D3DF31"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid or incurred after December 31, 2013.</text>
</subsection></section><section id="H07A637E372C24CB7BAC2DA26B0072564"><enum>438.</enum><header>Repeal marginal
well production credit</header>
<subsection id="H7911FCED1E2C44D0AF404DD8C4FE34AF"><enum>(a)</enum><header>In
general</header><text>Subpart D of part IV of subchapter A of chapter 1of the
Internal Revenue Code of 1986 (relating to business related credits) is amended
by striking section 45I (relating to credit for producing oil and gas from
marginal wells).</text>
</subsection><subsection id="H9C23852E9DB645DE95F5629E017CF27D"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for subpart D of part IV of
subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by
striking the item relating to section 45I.</text>
</subsection><subsection id="H841163E7379042EC95DDD9F9E4CBA159"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2013.</text>
</subsection></section></subtitle><subtitle id="H99D95C690CC34AB4B39B50EE17A38804"><enum>E</enum><header>Dual capacity
taxpayers</header>
<section id="H4595F203C06B4C4786A74597DA5006CE"><enum>441.</enum><header>Modifications
of foreign tax credit rules applicable to dual capacity taxpayers</header>
<subsection id="H436FB697CDA148EC9A0E657973087A49"><enum>(a)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/901">Section 901</external-xref> of the Internal Revenue Code of 1986
(relating to credit for taxes of foreign countries and of possessions of the
United States) is amended by redesignating subsection (n) as subsection (o) and
by inserting after subsection (m) the following new subsection:</text>
<quoted-block id="H9F7C9C6E9BD54167882CBCA4EFF3675E" style="OLC">
<subsection id="HF2629A8DF6724830A28A5619DC38F4F3"><enum>(n)</enum><header>Special rules
relating to dual capacity taxpayers</header>
<paragraph id="HB5E5A87CE9CC4A3EA5FD39A3EC8B8A03"><enum>(1)</enum><header>General
rule</header><text>Notwithstanding any other provision of this chapter, any
amount paid or accrued by a dual capacity taxpayer or any member of the
worldwide affiliated group of which such dual capacity taxpayer is also a
member to any foreign country or to any possession of the United States for any
period shall not be considered a tax to the extent such amount exceeds the
amount (determined in accordance with regulations) which would have been
required to be paid if the taxpayer were not a dual capacity taxpayer.</text>
</paragraph><paragraph id="H601A6139AC084F68B85EC8F2C8A7BED8"><enum>(2)</enum><header>Dual capacity
taxpayer</header><text>For purposes of this subsection, the term <quote>dual
capacity taxpayer</quote> means, with respect to any foreign country or
possession of the United States, a person who—</text>
<subparagraph id="HBE9A41936FD144D39AA8274C6FB4076D"><enum>(A)</enum><text>is subject to a
levy of such country or possession, and</text>
</subparagraph><subparagraph id="H9FF5BEA083604A84A53107045158361E"><enum>(B)</enum><text>receives (or will
receive) directly or indirectly a specific economic benefit (as determined in
accordance with regulations) from such country or possession.</text>
</subparagraph></paragraph><paragraph id="H547BB27297654AA1AB83EC815E7793A5"><enum>(3)</enum><header>Regulations</header><text>The
Secretary may issue such regulations or other guidance as is necessary or
appropriate to carry out the purposes of this
subsection.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H39BC67C63FE14E61A4C06590ADB3CF15"><enum>(b)</enum><header>Contrary treaty
obligations upheld</header><text>The amendments made by this section shall not
apply to the extent contrary to any treaty obligation of the United
States.</text>
</subsection><subsection id="H2FA4D123710744E7994D382EB8CA329D"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
that, if such amounts were an amount of tax paid or accrued, would be
considered paid or accrued in taxable years beginning after December 31,
2013.</text>
</subsection></section><section id="H3B5B9C53994A473A97F7860CBA8FD88A"><enum>442.</enum><header>Separate basket
treatment taxes paid on foreign oil and gas income</header>
<subsection id="HF2F2B880EB824CFB81746833E248A202"><enum>(a)</enum><header>Separate basket
for foreign tax credit</header><text>Paragraph (1) of section 904(d) of the
Internal Revenue Code of 1986 is amended by striking <quote>and</quote> at the
end of subparagraph (A), by striking the period at the end of subparagraph (B)
and inserting <quote>, and</quote>, and by adding at the end the
following:</text>
<quoted-block id="H2F00271CEB4542FEB98EF30E4726A3FB" style="OLC">
<subparagraph id="H22E54288BA654A94A5FAEBEA6F13EC1F"><enum>(C)</enum><text>combined foreign
oil and gas income (as defined in section
907(b)(1)).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5C6E0E94299E4E889F9D771C36DD3CCE"><enum>(b)</enum><header>Coordination</header><text>Section
904(d)(2)of such Code is amended by redesignating subparagraphs (J) and (K) as
subparagraphs (K) and (L) and by inserting after subparagraph (I) the
following:</text>
<quoted-block id="H097AEE5393994EBFAA384D61CCC4F0C0" style="OLC">
<subparagraph id="HDE438F76B02A4033BFF5EBDB3482E87E"><enum>(J)</enum><header>Coordination
with combined foreign oil and gas income</header><text>For purposes of this
section, passive category income and general category income shall not include
combined foreign oil and gas income (as defined in section
907(b)(1)).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDF9B629CE8994D37BCBC5723AC774045"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="H15585C1B13F247E49B963587382CD145"><enum>(1)</enum><text>Section 907(a) is
hereby repealed.</text>
</paragraph><paragraph id="H138454AC9B444B9BAFF335DA6C5E065B"><enum>(2)</enum><text>Section 907(c)(4)
is hereby repealed.</text>
</paragraph><paragraph id="HD9A77F6BFA174F099413BAA5741BE924"><enum>(3)</enum><text>Section 907(f) is
hereby repealed.</text>
</paragraph></subsection><subsection id="H546FB85DB0094A72927CBE41D3874CA9"><enum>(d)</enum><header>Effective
dates</header>
<paragraph id="HD223A39498AD4C47A81E8683C0B7DA00"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to
taxable years beginning after December 31, 2013.</text>
</paragraph><paragraph id="H06FAAA2DA75A4A30A9BB50CE1D15663D"><enum>(2)</enum><header>Transitional
rules</header>
<subparagraph id="H30FC41DF48C5454F8BBEA98F059FC709"><enum>(A)</enum><header>Carryovers</header><text>Any
unused foreign oil and gas taxes which under section 907(f) of such Code (as in
effect before the amendment made by subsection (c)(3)) would have been
allowable as a carryover to the taxpayer’s first taxable year beginning after
December 31, 2013 (without regard to the limitation of paragraph (2) of such
section 907(f) for first taxable year) shall be allowed as carryovers under
section 904(c) of such Code in the same manner as if such taxes were unused
taxes under such section 904(c) with respect to foreign oil and gas extraction
income.</text>
</subparagraph><subparagraph id="HC6710009ED314E109BB5BDFCBC1B2EAE"><enum>(B)</enum><header>Losses</header><text>The
amendment made by subsection (c)(2) shall not apply to foreign oil and gas
extraction losses arising in taxable years beginning on or before the date of
the enactment of this Act.</text>
</subparagraph></paragraph></subsection></section></subtitle><subtitle id="H63C0F380810F4835970202C6E7C5C753"><enum>F</enum><header>Repeal of
sequestration</header>
<section id="H6826CB216771439EAC818EE248C8920B"><enum>451.</enum><header>Repeal of
sequestration</header><text display-inline="no-display-inline">Section 251A of
the Balanced Budget and Emergency Deficit Control Act of 1985 is
repealed.</text>
</section></subtitle>