1.Short
title; table of contents
(a)This Act may be cited
as the Rebuild America
Act
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of
contents.
TITLE I—Investing in America to Create Jobs and Future
Growth
Subtitle A—Investing in America’s Roads, Bridges, and
Infrastructure
Sec. 101. Modernization, renovation, and repair of educational
facilities.
Sec. 102. National energy renovation and retrofit
program.
Sec. 103. Rebuilding America's infrastructure.
Subtitle B—Rebuilding America’s Manufacturing
Power
Sec. 111. National manufacturing strategy.
Sec. 112. Sectoral technology and innovation
centers.
Sec. 113. Capital for small manufacturers with firm
orders.
Sec. 114. Manufacturing Extension Partnership.
Sec. 115. Extension of research credit; increase in alternative
simplified research credit.
Sec. 116. Inclusion of certain provisions in trade
agreements.
Sec. 117. Funding for Interagency Trade Enforcement
Center.
Sec. 118. Imposition of countervailing duties for subsidies
relating to fundamentally undervalued currencies.
Subtitle C—Preparing Americans for the jobs of the
future
Sec. 121. Short title.
Sec. 122. Definitions.
Sec. 123. Program.
Sec. 124. Eligible entities.
Sec. 125. Applications.
Sec. 126. Priority and distribution.
Sec. 127. Use of funds.
Sec. 128. Matching requirement.
Sec. 129. Funding.
Subtitle D—Supporting great teachers
Sec. 131. Short title.
Sec. 132. Findings.
Sec. 133. Purposes.
Sec. 134. Definitions.
Sec. 135. Grants authorized.
Sec. 136. Application.
Sec. 137. State use of grant funds.
Sec. 138. Subgrants to local entities.
Sec. 139. Reporting.
Sec. 140. Teacher privacy.
Sec. 141. Rule of construction.
Sec. 142. Funding.
Subtitle E—Creating middle class jobs
PART I—Teacher stabilization
Sec. 151. Purpose.
Sec. 152. Definitions.
Sec. 153. Reservations for the outlying areas and the Secretary
of the Interior.
Sec. 154. State allotments.
Sec. 155. State application, reservation, and
responsibilities.
Sec. 156. Subgrants.
Sec. 157. Maintenance of effort.
Sec. 158. Reporting.
Sec. 159. Funding.
PART II—First responder stabilization
Sec. 161. Purpose.
Sec. 162. Career law enforcement officers grant
program.
Sec. 163. First responder grant program.
PART III—Maintaining critical community services
Sec. 171. Definitions.
Sec. 172. Maintaining critical community services.
Sec. 173. Application.
Sec. 174. Award basis.
Sec. 175. Uses of funds.
Sec. 176. Employee status, compliance with local laws, and
contracts.
Sec. 177. Supplement, not supplant.
Sec. 178. Funding provided.
TITLE II—Creating Financial Stability and a Better Future for
Middle Class Families
Subtitle A—Alleviating the High Cost of Child Care
Sec. 201. CCDBG Plus.
Subtitle B—Helping Americans enjoy their golden
years
PART I—Commission on Retirement Security
Sec. 211. Short title.
Sec. 212. Findings.
Sec. 213. Commission on Retirement Security.
Sec. 214. Duties.
Sec. 215. Commission personnel matters.
Sec. 216. Termination of Commission.
PART II—Social Security
Sec. 221. Determination of taxable wages and self-employment
income above contribution and benefit base after 2012.
Sec. 222. Adjustments to bend points in determining primary
insurance amount.
Sec. 223. Consumer Price Index for Elderly
Consumers.
Sec. 224. Computation of cost-of-living increases for Social
Security benefits.
Sec. 225. Non-application of increase in Social Security
benefits for other Federal or federally assisted programs.
Subtitle C—Protecting Overtime Pay for Working
Americans
Sec. 231. Salary thresholds, highly compensated employees, and
primary duties.
Subtitle D—Preventing Americans from Having To Choose Between
Their Health and Their Paycheck
Sec. 241. Short title.
Sec. 242. Findings.
Sec. 243. Purposes.
Sec. 244. Definitions.
Sec. 245. Provision of paid sick time.
Sec. 246. Posting requirement.
Sec. 247. Prohibited acts.
Sec. 248. Enforcement authority.
Sec. 249. Collection of data on paid sick time and further
study.
Sec. 250. Effect on other laws.
Sec. 251. Effect on existing employment benefits.
Sec. 252. Encouragement of more generous leave
policies.
Sec. 253. Regulations.
Sec. 254. Effective dates.
Subtitle E—Establishing a fair minimum wage
Sec. 261. Minimum wage increases.
Subtitle F—Empowering hardworking Americans
Sec. 271. Amendments to the National Labor Relations
Act.
Subtitle G—Increasing Job Opportunities for Americans with
Disabilities
Sec. 281. Modification of work opportunity credit.
TITLE III—Restoring balance and fairness to the tax
code
Sec. 300. Amendment of 1986 Code.
Subtitle A—Instituting the Buffett
Rule
Sec. 301. Fair share tax on high-income taxpayers.
Subtitle B—Adopting a Wall Street trading and speculators
tax
Sec. 311. Transaction tax.
Subtitle C—Ending tax breaks for companies that ship jobs
overseas
Sec. 321. Allocation of expenses and taxes on basis of
repatriation of foreign income.
Sec. 322. Excess income from transfers of intangibles to
low-taxed affiliates treated as subpart F income.
Sec. 323. Modifications of foreign tax credit rules applicable
to dual capacity taxpayers.
Subtitle D—Making Wall Street take responsibility
Sec. 331. Financial Crisis Responsibility Fee.
Subtitle E—Closing the carried interest loophole
Sec. 341. Partnership interests transferred in connection with
performance of services.
Sec. 342. Special rules for partners providing investment
management services to partnerships.
Subtitle F—Raising the capital gains rate
Sec. 351. Increased capital gains rate for high-income
individuals.
Subtitle G—Pension Guaranty Improvement
Sec. 361. Short title.
Sec. 362. Findings.
Sec. 363. Pension Benefit Guaranty Corporation Governance
Improvement.
Sec. 364. Participant and plan sponsor advocate.
Sec. 365. Increase in multiemployer plan benefit guarantee and
annual premium rates.
Sec. 366. Improving single employer program
solvency.
Subtitle H—Pension and Participant Protection
Sec. 371. Short title.
Sec. 372. Findings.
Sec. 373. Pension funding stabilization.
Sec. 374. Congressional commitment to encouraging
pensions.
Sec. 375. Participant protection in bankruptcy.
Subtitle I—Fair playing field
Sec. 381. Short title; findings; purposes.
Sec. 382. Authority to issue guidance clarifying employment
status for purposes of employment taxes.
TITLE IV—Rebuild America Trust Fund
Sec. 401. Establish Rebuild America Trust Fund.
<enum>I</enum><header>Investing in
America to Create Jobs and Future Growth</header>
<subtitle id="id39DFE9B9C84743DD866BE41D52F60771"><enum>A</enum><header>Investing in
America’s Roads, Bridges, and Infrastructure</header>
<section commented="no" display-inline="no-display-inline" id="ID16afa86ca88542a4b63d8b51fa575144" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Modernization, renovation, and repair of
educational facilities</header>
<subsection commented="no" display-inline="no-display-inline" id="id1BE6F4D1935F4D40A43EB6498ABB5434"><enum>(a)</enum><header display-inline="yes-display-inline">Purpose</header><text>The purpose of this
section is to provide assistance for the modernization, renovation, and repair
of eligible educational facilities, including early learning facilities, public
elementary school and secondary school facilities, and community college
facilities.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idCD9C1569D85E45EAB127984F138B4E51"><enum>(b)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id049B973875334402B39B3F010EEE6312"><enum>(1)</enum><header display-inline="yes-display-inline">ESEA Definitions</header><text>The terms
<term>elementary school</term>, <term>local educational agency</term>,
<term>outlying area</term>, <term>secondary school</term>,
<term>Secretary</term>, and <term>State</term> have the meanings given the
terms in section 9101 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB9ADAF5730B24B37BCF0360ED8B67EEF"><enum>(2)</enum><header display-inline="yes-display-inline">CHPS Criteria</header><text display-inline="yes-display-inline">The term <term>CHPS Criteria</term> means
the green building rating criteria developed by the Collaborative for High
Performance Schools.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0A66E78FF0004918B6986B0E70207134"><enum>(3)</enum><header>Community
College</header><text>The term <term>community college</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id3C8358FAE985413AA1E09409C88C8827"><enum>(A)</enum><text>a junior or
community college, as defined in section 312(f) of the Higher Education Act of
1965 (20 U.S.C. 1058(f)); or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id00E713FCA7AF4A3FA2FB78408F0C1D52"><enum>(B)</enum><text>a 4-year public
institution of higher education, as defined under section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001), that awards a significant number of
degrees and certificates, as determined by the Secretary, that are not—</text>
<clause commented="no" display-inline="no-display-inline" id="idD640080B31F8455BA30626724DA7909B"><enum>(i)</enum><text>baccalaureate
degrees, or the equivalent of such degrees; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id07A82EAC8CA940AB8EBB94085A337B96"><enum>(ii)</enum><text>masters,
professional, or other advanced degrees.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC56D3B2623EE4BCEB751DA4466CBF9C6"><enum>(4)</enum><header>Eligible
Entity</header><text>The term <term>eligible entity</term> means the
following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idEA5243A7349C43AF8E6594AB05E6D1DC"><enum>(A)</enum><text>In reference to
the modernization, renovation, or repair of an early learning facility, the
term <term>eligible entity</term> means—</text>
<clause commented="no" display-inline="no-display-inline" id="id664C7F869A104CC291BB029B19F09179"><enum>(i)</enum><text>an eligible child
care provider as defined in paragraph (5)(A) of section 658P of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C. 9858n(5)(A)); or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id489BFA2264DC401EAB0843171F25CCCF"><enum>(ii)</enum><text>a Head Start
center under the Head Start Act (42 U.S.C. 9831 et seq.).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC4DB513F9C4A46B7975490D7605E2B2B"><enum>(B)</enum><text>In reference to
the modernization, renovation, or repair of a public elementary school or
secondary school facility, the term <term>eligible entity</term> means a local
educational agency.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAFF1A9895C0146DFA4C9F5EA444E49AA"><enum>(C)</enum><text>In reference to
the modernization, renovation, or repair of a community college facility, the
term <term>eligible entity</term> means the community college.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1B474499FE7649E391D04DF6F701B190"><enum>(5)</enum><header display-inline="yes-display-inline">Energy star</header><text display-inline="yes-display-inline">The term <term>Energy Star</term> means the
Energy Star program of the Department of Energy and the Environmental
Protection Agency.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id05A9563C98BC4FB99EBF7029683E467C"><enum>(6)</enum><header display-inline="yes-display-inline">Green globes</header><text display-inline="yes-display-inline">The term <term>Green Globes</term> means
the Green Building Initiative environmental design and rating system.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB361132752EA43EFA5BE0670A7B20D64"><enum>(7)</enum><header display-inline="yes-display-inline">LEED green building rating
system</header><text display-inline="yes-display-inline">The term <term>LEED
Green Building Rating System</term> means the United States Green Building
Council Leadership in Energy and Environmental Design green building rating
system.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idFDD87176ABAB476FAAB981726EFFC91E"><enum>(c)</enum><header display-inline="yes-display-inline">Grants to States</header>
<paragraph commented="no" display-inline="no-display-inline" id="idFDF627B24FF74F4AA2D94C0D01D80ACC"><enum>(1)</enum><header>In
General</header><text display-inline="yes-display-inline">The Secretary shall
allocate funds to each State, as described in paragraph (3), to enable the
State to award subgrants, on a competitive basis, to eligible entities for the
purpose of modernizing, renovating, and repairing eligible educational
facilities. Grant funds may be used for direct payments, payment of 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><paragraph commented="no" display-inline="no-display-inline" id="id31A0095AD51748BCABE055B721619ED2"><enum>(2)</enum><header display-inline="yes-display-inline">Reservations</header><text display-inline="yes-display-inline">From the funds made available under
subsection (i) for a fiscal year, the Secretary shall reserve for the purposes
of this section—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idFD0FFEB092624FE0BF7F4ED0550F4A1B"><enum>(A)</enum><text display-inline="yes-display-inline">0.5 percent for payments to the Secretary
of the Interior to provide assistance to schools funded by the Bureau of Indian
Education;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1B9B5E41FF554C9495E894DBABAC6A7F"><enum>(B)</enum><text display-inline="yes-display-inline">0.75 percent to provide assistance to the
outlying areas; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8E15668435C84069BE9C1E7D61F49017"><enum>(C)</enum><text display-inline="yes-display-inline">0.25 percent for grants to institutions
that are eligible to receive a grant under section 316 of the Higher Education
Act of 1965 (20 U.S.C. 1059c).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEC09E357F28849B3BFAADA0A45E5460E"><enum>(3)</enum><header>Amount of
Funds</header><text display-inline="yes-display-inline">From the funds made
available under subsection (i) for any fiscal year and remaining after the
Secretary makes reservations under paragraph (2) for the fiscal year, the
Secretary shall allot to each State the sum of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id98E7F991DE5E44C7B947AFB47A927AD1"><enum>(A)</enum><text>an amount that
bears the same relationship to 35 percent of the remaining amount as the number
of individuals who have not yet attained age 25 in the State, as determined by
the Secretary on the basis of the most recent satisfactory data, bears to the
number of those individuals in all such States, as so determined; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id18E782725A934B4CB9BBFA1AC7049D3B"><enum>(B)</enum><text>an amount that
bears the same relationship to 65 percent of the remaining amount as the number
of individuals who have not yet attained age 25 who are from families with
incomes below the poverty line, in the State, as determined by the Secretary on
the basis of the most recent satisfactory data, bears to the number of those
individuals in all such States, as so determined.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id977CA0D5ADF844A495C21D990198D58B"><enum>(4)</enum><header>Reallocation</header><text>If
a State does not apply for its allocation under this section, applies for less
than the full allocation for which it is eligible, or does not use the
allocation in a timely manner, the Secretary may reallocate all or a portion of
the allocation to the other States.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idDF63260FAD094D5E8609DF226152164A"><enum>(d)</enum><header display-inline="yes-display-inline">Subgrants</header>
<paragraph commented="no" display-inline="no-display-inline" id="id8E4ABD55558C481C9F58AA86983A5A38"><enum>(1)</enum><header display-inline="yes-display-inline">In General</header><text display-inline="yes-display-inline">From the funds allocated to a State under
subsection (c) for any fiscal year and remaining after the State makes any
reservations under paragraph (2) for the fiscal year, each State receiving a
grant under this section shall distribute—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id27E13E550C954DF0A9DA6699349CA210"><enum>(A)</enum><text display-inline="yes-display-inline">10 percent to award subgrants to eligible
entities for the modernization, renovation, and repair of early learning
facilities;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4EF8E3021094453D97A3DECE221465EC"><enum>(B)</enum><text display-inline="yes-display-inline">65 percent to award subgrants to eligible
entities for the modernization, renovation, and repair of public elementary
school and secondary school facilities; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5A8DD6FEA6394C6392E3AB134FE6036A"><enum>(C)</enum><text display-inline="yes-display-inline">25 percent to award subgrants to eligible
entities for the modernization, renovation, and repair of community college
facilities.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id23EC85696336427D9ACDE03EE5220BAE"><enum>(2)</enum><header display-inline="yes-display-inline">State administration and other
costs</header><text display-inline="yes-display-inline">Each State that
receives a grant under this section may reserve not more than 1 percent of the
grant allocation under subsection (c) for the purposes of administering the
distribution of subgrants under this section, including the provision of
technical assistance to eligible entities.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA2CFBCACA7F04BD7949794B6119A8862"><enum>(3)</enum><header>Matching
Requirement</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id184E873C5E534B648A3DEA5BB72A50F3"><enum>(A)</enum><header>In
General</header><text display-inline="yes-display-inline">A State shall require
eligible entities to match funds awarded under this subsection.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id557F21B6BEE44B3DA88883E3F1DB10E6"><enum>(B)</enum><header>Amount of
Matching Funds Requirement</header><text display-inline="yes-display-inline">The amount of a match described in
subparagraph (A) may be established by using a sliding scale that takes into
account the relative poverty of the population served by the eligible
entity.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id0F4FCE9C1DDB4B2FAC4408AA8546F72F"><enum>(e)</enum><header>State
Applications</header><text display-inline="yes-display-inline">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 the
following:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id5CE9485962484E2C94718A4575170261"><enum>(1)</enum><text display-inline="yes-display-inline">An identification of the State agency or
entity that will administer the grant program.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6ECC2D8EDA7949D4A1A2A9FCC4F1883F"><enum>(2)</enum><text display-inline="yes-display-inline">A description of the State's process for
determining how subgrant funds will be distributed and administered,
including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idDF1D7A34571544F7A2701447211FA838"><enum>(A)</enum><text display-inline="yes-display-inline">how the State will determine the criteria
for awarding subgrants under subsection (d); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8D0B79F7C86A4E2E9BEEB195E59ABB62"><enum>(B)</enum><text display-inline="yes-display-inline">how the State will consider—</text>
<clause commented="no" display-inline="no-display-inline" id="id2E3BAD6E7207449D9B743E6B16BBF4FA"><enum>(i)</enum><text display-inline="yes-display-inline">the needs of each eligible entity, or each
population served by an eligible entity, for assistance under this
section;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id641076248C0D428E873F5ED5A9E9294F"><enum>(ii)</enum><text display-inline="yes-display-inline">the impact of potential projects on job
creation in the State;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idD6700C00220243D7A28A9C99B0887EE2"><enum>(iii)</enum><text display-inline="yes-display-inline">the fiscal capacity of the eligible entity
applying for assistance; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idD633D4780B7742CFBB2B4ABDE94F1E19"><enum>(iv)</enum><text display-inline="yes-display-inline">the percentage of individuals served by the
eligible entity who are from low-income families.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id34B7B895583F4FD8836C3CDEDD387BF2"><enum>(3)</enum><text>If the State
plans to award subgrants to early learning facilities, a description of how the
State will—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id43E6E360DF6B4CABAD659AE97C9B5849"><enum>(A)</enum><text>coordinate, to
the extent feasible, with State early childhood advisory councils established
under section 642B(b)(1)(A) of the Head Start Act (42 U.S.C. 9837b(b)(1)(A));
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1792F3C255964149AF3700A0064F69B2"><enum>(B)</enum><text>encourage
eligible entities to coordinate with organizations that have demonstrated
experience in providing technical or financial assistance for the
modernization, renovation, or repair of child care facilities.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEFD61FAB55584C568E99217BD010E8FA"><enum>(4)</enum><text display-inline="yes-display-inline">A description of how the State will ensure
that eligible entities receiving subgrants under this section meet the
requirements of this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5BA4C2595FB84B6589D2D01A7CF8FBB3"><enum>(5)</enum><text display-inline="yes-display-inline">A description of how the State will give
priority to eligible entities that serve the highest percentage of low-income
individuals.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idFB5128629D6E48D097D56CEFBFF2A61F"><enum>(6)</enum><text display-inline="yes-display-inline">A description of how the State will give
priority to eligible entities that use green practices that are certified,
verified, or consistent with any applicable provisions of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id45B9C9A0FCB24DA7B94BC5826D289E34"><enum>(A)</enum><text display-inline="yes-display-inline">the LEED Green Building Rating
System;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA413979A5C3841F0864F9DA5FBE343F8"><enum>(B)</enum><text display-inline="yes-display-inline">Energy Star;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAD95748BB6844F868288110F996F878A"><enum>(C)</enum><text display-inline="yes-display-inline">the CHPS Criteria;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id82B6625D0B7A4503A5448A2A86FFA308"><enum>(D)</enum><text display-inline="yes-display-inline">Green Globes; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id596A9B1C53A443BC8FF71A3B07F0BD78"><enum>(E)</enum><text display-inline="yes-display-inline">an equivalent program adopted by the State
or another jurisdiction with authority over the eligible entity.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC91A09D2EF214A8685B564705740AE57"><enum>(7)</enum><text display-inline="yes-display-inline">A description of the steps that the State
will take to ensure that eligible entities receiving subgrants will adequately
maintain any facilities that are modernized, renovated, or repaired with
subgrant funds awarded under subsection (d).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD52F12C54858439781CA92F4CBA7A5CA"><enum>(f)</enum><header>Use of
Funds</header><text>With respect to funds made available under this section
that are used for the modernization, renovation, and repair of eligible
educational facilities the following rules shall apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id44A3A45B6F374984AD9F00D4485A6D00"><enum>(1)</enum><header display-inline="yes-display-inline">Permissible uses of funds</header><text display-inline="yes-display-inline">Facility modernization, renovation, and
repair shall be limited to 1 or more of the following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idB53F8B85259349D4BA787F073634573F"><enum>(A)</enum><text display-inline="yes-display-inline">Upgrades, repair, or replacement of
building systems or components to improve the quality of education and ensure
the health and safety of students and staff.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id71FEB4517ABF47E89F356BBCE8954451"><enum>(B)</enum><text>Modifications
necessary to render eligible educational facilities accessible in order to
comply with the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et
seq.) and section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB726F186DDDD40F39D3E650094023FA8"><enum>(C)</enum><text>Improvements to
environmental conditions, including asbestos abatement or removal, and the
reduction or elimination of human exposure to lead-based paint, mold, or
mildew.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1FF8EA2FF2B6468E8A61D08E32018127"><enum>(D)</enum><text display-inline="yes-display-inline">Measures designed to reduce or eliminate
human exposure to classroom noise and environmental noise pollution.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDA3FE8E5950A4B8799FAB355431A7D2F"><enum>(E)</enum><text display-inline="yes-display-inline">Modifications necessary to reduce the
consumption of electricity, natural gas, oil, water, coal, or land.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id104480D032B2405283F8595E1E0BBF5D"><enum>(F)</enum><text display-inline="yes-display-inline">Upgrades or installations of educational
technology infrastructure or training equipment.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF48671B9A9A9408CB4513670F5EBDA0F"><enum>(2)</enum><header display-inline="yes-display-inline">Impermissible uses of funds</header><text display-inline="yes-display-inline">Funds received under this section shall not
be used for—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id4DB91636C3F64390ACBB03375E4CE252"><enum>(A)</enum><text display-inline="yes-display-inline">payment of maintenance costs;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6B576FEE637C41AFBE2F5B8075112763"><enum>(B)</enum><text display-inline="yes-display-inline">purchase or upgrade of vehicles;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4A0C6F5C498146CE9E103249263A512C"><enum>(C)</enum><text display-inline="yes-display-inline">improvement or construction of stand-alone
facilities whose purpose is not the education or care of children or other
students, including central office administration or operations or logistical
support facilities;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0186B4D8676544C1B3AB118537B93E14"><enum>(D)</enum><text display-inline="yes-display-inline">athletic facilities;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC950ED074C8C4EE98733E5E3D86D71BC"><enum>(E)</enum><text>purchase of
carbon offsets; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id337680666C6A4E6E801DA6C037D1EAEF"><enum>(F)</enum><text>the facilities of
a sectarian institution, or facilities that are used primarily for sectarian
purposes.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2CFE074308D847B8B2E4BB35DA46BA15"><enum>(3)</enum><header display-inline="yes-display-inline">Supplement, not supplant</header><text display-inline="yes-display-inline">A local educational agency or
State-operated or State-supported eligible entity shall use Federal funds
subject to this subsection only to supplement the amount of funds that would,
in the absence of such Federal funds, be made available from non-Federal
sources for school modernization, renovation, and repair.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id2363AB1301AC44C7A685738A5012068B"><enum>(g)</enum><header display-inline="yes-display-inline">General Provision</header><text display-inline="yes-display-inline">Each eligible entity that receives subgrant
funds under subsection (d) shall ensure that, if such eligible entity carries
out modernization, renovation, and repair through a contract, any such contract
process ensures the maximum number of qualified bidders, including small,
minority, and women-owned businesses, through full and open competition.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id5B240339D78D4CDB8B5F889BA512589C"><enum>(h)</enum><header>Report</header><text>The
Secretary shall submit to the appropriations committees and the authorizing
committees (as defined in section 103 of the Higher Education Act of 1965 (20
U.S.C. 1003)) of the House of Representatives and the Senate an annual report
regarding the grants made under this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id56E6654FAFC14B79BD0A85311B8BC46D"><enum>(i)</enum><header>Funding</header><text>There
shall be made available from the Rebuild America Trust Fund under section 9512
of the Internal Revenue Code of 1986, $2,000,000,000 for each of fiscal years
2013 through 2022 to carry out this section.</text>
</subsection></section><section id="id51663CF354484B1A8DC00470F5ACD80C" section-type="subsequent-section"><enum>102.</enum><header>National energy
renovation and retrofit program</header><text display-inline="no-display-inline">Part D of title III of the Energy Policy and
Conservation Act is amended by inserting after section 364 (42 U.S.C. 6324) the
following:</text>
<quoted-block display-inline="no-display-inline" id="idF353094D2B2741508E6B725E3F801F3A" style="OLC">
<section commented="no" display-inline="no-display-inline" id="id1990E9BBC64C40D08D9655CA908C984E" section-type="subsequent-section"><enum>364A.</enum><header display-inline="yes-display-inline">National energy renovation and retrofit
program</header>
<subsection id="idAFA2F3562E4648E19D9CC1479D4F7862"><enum>(a)</enum><header>In
general</header><text>The Secretary shall provide grants to eligible entities
to pay the Federal share of the cost of carrying out comprehensive energy
systems renovation, including—</text>
<paragraph id="idDAB8B28853C147CF971B5F441F62F099"><enum>(1)</enum><text>energy systems
planning and assessment; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1AE73CE6F85D45758034D41E46F67BA9"><enum>(2)</enum><text>implementation of
energy efficiency and renewable energy projects.</text>
</paragraph></subsection><subsection id="id51224B47E92D4252A2FC94AAE23A7A5A"><enum>(b)</enum><header>Eligible
entities</header><text>An entity shall be eligible to obtain a grant under this
section if the entity is a residential, commercial, industrial, manufacturing,
institutional, educational, nonprofit, or other type of entity, organization,
or consortia that is approved by the Secretary.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id97E7735ECF064F6DA9258F4628091514"><enum>(c)</enum><header>Use</header><text>A
grant provided under this section may be used by an eligible entity—</text>
<paragraph id="id2EF1FA9F3C1C45EEB7C25712E19B4C42"><enum>(1)</enum><text>to conduct entity
energy assessments that cover total energy use across all members and
activities of the entity;</text>
</paragraph><paragraph id="id666FE999AE084EFD94EE6AE5B1F7E127"><enum>(2)</enum><text>to analyze and
summarize the major sources and impacts of the energy use described in
paragraph (1);</text>
</paragraph><paragraph id="idF6E4363EF3EE49D8B7A3CCF1144224E9"><enum>(3)</enum><text>to identify
alternative approaches to modifying energy systems to reduce energy use, reduce
the environmental and climatic impact of the energy use, and increase the use
of clean, domestic energy;</text>
</paragraph><paragraph id="idAD5031D3535A4C159F8EAA5EC6BC4B1F"><enum>(4)</enum><text>to formulate an
entity strategy for changing the overall energy usage of the entity;</text>
</paragraph><paragraph id="id40DAAD17F269496198FEF5637E4F278E"><enum>(5)</enum><text>to implement the
strategy described in paragraph (4) through the purchase and installation of
energy efficiency and renewable energy systems and other actions, as determined
by the entity; and</text>
</paragraph><paragraph id="id8BA519DDBC2D4B658189A9F3BAB44B4C"><enum>(6)</enum><text>to track and
evaluate the effects of the entity energy renovation and retrofit
efforts.</text>
</paragraph></subsection><subsection id="id09568C080DAF4D76A2660AF95358561D"><enum>(d)</enum><header>Administration</header><text>The
Secretary, in collaboration with State energy offices, shall establish
procedures for soliciting and evaluating proposals from entities, overseeing
grants to eligible entities, and otherwise administering this section,
including procedures for—</text>
<paragraph id="id5661CC23F32D4DD6B7E11E207A267045"><enum>(1)</enum><text>annual
solicitation and grant cycles;</text>
</paragraph><paragraph id="idAE2EB57AB8AC4201AC19ED08D1D98CED"><enum>(2)</enum><text>education and
technical assistance programs; and</text>
</paragraph><paragraph id="idF7F9863048B44975ACD0997275DAF85A"><enum>(3)</enum><text>reporting and
information-sharing activities.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id572EC90C83174DF896B3A7482648EE44"><enum>(e)</enum><header>Allocation of
funds</header><text display-inline="yes-display-inline">The Secretary
shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idD0DE05BF44384E4CA97ABC1F672C4993"><enum>(1)</enum><text display-inline="yes-display-inline">determine the amount of funds that are
allocated for grants for States and political subdivisions of States for a
fiscal year under this section;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id37670FCB17B948AFA45C63EF9F0F0ACF"><enum>(2)</enum><text display-inline="yes-display-inline">provide a Federal share of not more than 50
percent of the cost of carrying out energy renovation programs under this
section; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA4C00F6F7B8945A99220DAB363774787"><enum>(3)</enum><text display-inline="yes-display-inline">permit an eligible entity to provide the
non-Federal share of the cost of carrying out energy renovation and retrofit
programs under this section in the form of in-kind services.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idBE351440B2D945B1B9FD7F817F3FF2D8"><enum>(f)</enum><header>Funding</header><text>There
shall be made available from the Rebuild America Trust Fund under section 9512
of the Internal Revenue Code of 1986, $1,500,000,000 for each of fiscal years
2013 through 2022 to carry out this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idCF076122F01345549994A0AAE67FE77E" section-type="subsequent-section"><enum>103.</enum><header>Rebuilding America's
infrastructure</header>
<subsection id="idE920416C5158486FA3CBC6A94177462A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">For fiscal years 2013
through 2022 and subject to the limitations provided in subsection (b), the
following amounts shall be provided from the Rebuild America Trust Fund
(referred to in this section as the <term>trust fund</term>):</text>
<paragraph id="id52e3ecda499744a5aaf56436d5e1af6c"><enum>(1)</enum><header>Rural community
facilities program account of the Department of Agriculture</header><text>For
additional amounts for the cost of direct loans and grants for rural community
facilities programs as provided for under section 306 and described in section
381E(d)(1) of the Consolidated Farm and Rural Development Act, $400,000,000 in
each of fiscal years 2013 and 2014 and $200,000,000 in each of fiscal years
2015 through fiscal year 2021.</text>
</paragraph><paragraph id="idf6727f6ee80b4205894fa696feeb2bae"><enum>(2)</enum><header>Rural water and
waste disposal program account of the Rural Utilities Service</header><text>For
an additional amount for the cost of direct loans and grants for the rural
water, waste water, and waste disposal programs as provide for under sections
306 and 310B and described in section 381E(d)(2) of the Consolidated Farm and
Rural Development Act, $1,200,000,000 in each of fiscal years 2013 and 2014 and
$600,000,000 in each of fiscal years 2015 through fiscal year 2021. For the
calculation of ability to pay for the determination of the grant loan ratio
under this paragraph, only the community receiving the benefit for a project
shall be considered.</text>
</paragraph><paragraph id="id06bb0ea2df4f486f878d0320dde066dd"><enum>(3)</enum><header>Economic
development administration of the Department of Commerce</header><text>For an
additional amount for <quote>Economic Development Assistance Programs</quote>,
$500,000,000 in each of fiscal years 2013 and 2014 and $250,000,000 in each of
fiscal years 2015 through fiscal year 2021. Of the sum provided by the
preceding sentence, 10 percent of those funds provided may be transferred to
federally authorized regional economic development commissions.</text>
</paragraph><paragraph id="ided0a89dc52a3427398006b61849e741a"><enum>(4)</enum><header>Corps of
engineers civil of the Department of the Army of the Department of
Defense</header>
<subparagraph id="idcb700d5229c84032adbf44fe4e14cd99"><enum>(A)</enum><header>Investigations</header><text>For
an additional amount for <quote>Investigations</quote>, $200,000,000 in each of
fiscal years 2013 and 2014 and $100,000,000 in each of fiscal years 2015
through fiscal year 2021.</text>
</subparagraph><subparagraph id="idcdfc0f3395444384ae6350974ac7666c"><enum>(B)</enum><header>Construction</header><text>For
additional amounts for construction, $1,800,000,000 in each of fiscal years
2013 and 2014 and $900,000,000 in each of fiscal years 2015 through fiscal year
2021.</text>
</subparagraph><subparagraph id="id9de1d20f478340e1a9a8473bc87280af"><enum>(C)</enum><header>Sharing</header><text>Notwithstanding
any other provision of law, funds provided in this paragraph shall not be cost
shared with the Inland Waterways Trust Fund as authorized in Public Law
99–662.</text>
</subparagraph></paragraph><paragraph id="id85db7b90ef7349d5b5136ef365f9380b"><enum>(5)</enum><header>Energy
efficiency and renewable energy program of the Department of Energy</header>
<subparagraph id="idbcedfed673d14434a3ad1b0f4b15f8d2"><enum>(A)</enum><header>Efficiency</header><text>$2,000,000,000
shall be available for Energy Efficiency and Conservation Block Grants for
implementation of programs authorized under subtitle E of title V of the Energy
Independence and Security Act of 2007 (42 U.S.C. 17151 et seq.) in each of
fiscal years 2013 and 2014 and $1,000,000,000 in each of fiscal years 2015
through fiscal year 2021. Provided further, that 40 percent of these funds
shall be awarded on a competitive basis.</text>
</subparagraph><subparagraph id="id784df16ff1f9477e949b62e0b6d359a4"><enum>(B)</enum><header>Weatherization</header>
<clause id="id07F368FD68E74990A92B0ECAF97C8594"><enum>(i)</enum><header>In
general</header><text>$2,000,000,000 shall be available for the Weatherization
Assistance Program under part A of title IV of the Energy Conservation and
Production Act (42 U.S.C. 6861 et seq.) in each of fiscal years 2013 and 2014
and $1,000,000,000 in each of fiscal years 2015 through fiscal year
2021.</text>
</clause><clause commented="no" id="id4e7ffa57c95247ef9ccc15c92a819188"><enum>(ii)</enum><header>Weatherization
assistance program amendments</header>
<subclause commented="no" id="id5d76d10148b24bd4812af0a96573e78a"><enum>(I)</enum><header>Income
level</header><text>Section 412(7) of the Energy Conservation and Production
Act (42 U.S.C. 6862(7)) is amended by striking <quote>150 percent</quote> both
places it appears and inserting <quote>200 percent</quote>.</text>
</subclause><subclause commented="no" id="iddb38e3241ba2418a953a0ce46dfabf5c"><enum>(II)</enum><header>Assistance
level per dwelling unit</header><text>Section 415(c)(1) of the Energy
Conservation and Production Act (42 U.S.C. 6865(c)(1)) is amended by striking
<quote>$2,500</quote> and inserting <quote>$7,000</quote>.</text>
</subclause></clause></subparagraph><subparagraph id="idb5ce0ac1f59649878a1e17b97a87227d"><enum>(C)</enum><header>States</header><text>$2,000,000,000
shall be for the State Energy Program authorized under part D of title III of
the Energy Policy and Conservation Act (42 U.S.C. 6321) in each of fiscal years
2013 and 2014 and $1,000,000,000 in each of fiscal years 2015 through fiscal
year 2022.</text>
</subparagraph></paragraph><paragraph id="ideaf32edc53d3410abba1d95f9b495e05"><enum>(6)</enum><header>Mitigation for
the Federal Emergency Management Agency of the Department of Homeland
Security</header><text>$1,500,000,000 shall be available for the Hazard
Mitigation Program in each of fiscal years 2013 and 2014 and $750,000,000 in
each of fiscal years 2015 through fiscal year 2021. These funds shall be
allocated by the Administrator in proportion to the hazard mitigation grants
that were allocated to the states in the prior 5 years through Stafford Act
allocations.</text>
</paragraph><paragraph id="id0f605212373f4772b64e5a43fdefed91"><enum>(7)</enum><header>State and
tribal assistance grants of the environmental protection
agency</header><text>For State and Tribal Assistance Grants, $8,000,000,000
shall be provided in each of fiscal years 2013 and 2014 and $4,000,000,000 in
each of fiscal years 2015 through fiscal year 2022 to be allocated as grants
under section 1452 of the Safe Drinking Water Act. The funds appropriated by
this paragraph shall not be subject to the matching or cost share requirements
of sections 602(b)(2), 602(b)(3) or 202 of the Federal Water Pollution Control
Act nor the matching requirements of section 1452(e) of the Safe Drinking Water
Act.</text>
</paragraph><paragraph id="id30ac564b732d431a90c9eb0fd859ccbd"><enum>(8)</enum><header>Supplemental
discretionary grants for a National Surface Transportation System of the
Department of Transportation</header><text>For an additional amount for capital
investments in surface transportation infrastructure, $1,500,000,000 in each of
fiscal years 2013 and 2014 and $750,000,000 in each of fiscal years 2015
through fiscal year 2021 to be awarded by the Secretary of Transportation to
State and local governments or transit agencies on a competitive basis for
projects that will have a significant impact on the United States, a
metropolitan area, or a region: <added-phrase reported-display-style="italic">Provided further,</added-phrase> That projects
eligible for funding provided under this heading shall include 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; public transportation
projects eligible under chapter 53 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; passenger and freight rail transportation projects; and
port infrastructure investments, including projects that connect ports to other
modes of transportation and improve the efficiency of freight movement. Not
more than 20 percent of the funds made available under this paragraph may be
awarded to projects in a single State.</text>
</paragraph><paragraph id="idb3586bae4d95404289cc8324526e89a0"><enum>(9)</enum><header>Federal
Aviation Administration</header><text>$300,000,000 for necessary investments in
Federal Aviation Administration to make improvements to power systems, air
route traffic control centers, air traffic control towers, terminal radar
approach control facilities, and navigation and landing equipment in each of
fiscal years 2013 and 2014 and $150,000,000 in each of fiscal years 2015
through fiscal year 2021.</text>
</paragraph><paragraph id="ide4fd937b91714f2ca13fdef6b98093e7"><enum>(10)</enum><header>Grants-In-Aid
for airports</header><text>$600,000,000 for <quote>Grants-In-Aid for
Airports</quote> to make grants for discretionary projects as authorized by
subchapter 1 of chapter 471 and subchapter 1 of chapter 475 of title 49, United
States Code, and for the procurement, installation and commissioning of runway
incursion prevention devices and systems at airports in each of fiscal years
2013 and 2014 and $300,000,000 in each of fiscal years 2015 through fiscal year
2021.</text>
</paragraph><paragraph id="id9383882c72914e8e88e701ff3733967a"><enum>(11)</enum><header>Federal
Highway Administration</header>
<subparagraph id="id2a26cdd3ce264551a517d5a75e4a4a51"><enum>(A)</enum><header>Highway
infrastructure investment</header><text>$24,000,000,000 in each of fiscal years
2013 and 2014 and $12,000,000,000 in each of fiscal years 2015 through fiscal
year 2021 to be allocated to the States in proportion to the allocations
provided for programs under the administration of the Federal Highway
Administration under SAFTEA–LU.</text>
</subparagraph><subparagraph id="ida644dd637ee9444ead2c8394df62667c"><enum>(B)</enum><header>Capital
assistance for high speed rail corridors and intercity passenger rail
service</header><text>For an additional amount for section 501 of Public Law
110–432 and discretionary grants to States to pay for the cost of projects
described in paragraphs (2)(A) and (2)(B) of section 24401 of title 49, United
States Code, subsection (b) of section 24105 of such title, $2,000,000,000 in
each of fiscal years 2013 through fiscal year 2021. Not less than 80 percent of
these funds shall be allocated to the Federal Railroad Administration for
projects that are expected to achieve 125 miles per hour on not less than 50
percent of the route.</text>
</subparagraph></paragraph><paragraph id="id31682ce006554d12b91158f7c25af822"><enum>(12)</enum><header>Transit
capital assistance of the Federal Transit Administration</header><text>For
transit capital grants under the allocations provided for under SAFTEA–LU and
its extensions by both formula and competitively, $3,000,000,000 in each of
fiscal years 2013 and 2014 and $1,500,000,000 in each of fiscal years 2015
through fiscal year 2021. Not less than one-third of these funds shall be
allocated under the discretionary bus program.</text>
</paragraph><paragraph id="id97de5aa0039c42d28246c55d8a52599e"><enum>(13)</enum><header>Community
Development Fund of the Community Planning and Development
Administration</header><text>For an additional amount for <quote>Community
Development Fund</quote>, $2,000,000,000 in each of fiscal years 2013 and 2014
and $1,000,000,000 in each of fiscal years 2015 through fiscal year 2021 to
carry out the community development block grant program under title I of the
Housing and Community Development Act of 1974 (42 U.S.C. 5301 et
seq.)<added-phrase reported-display-style="italic">: Provided,</added-phrase>
That the amount appropriated in this paragraph shall be distributed pursuant to
42 U.S.C. 5306 to grantees that received funding in fiscal year 2012. These
funds shall be used for capital projects.</text>
</paragraph></subsection><subsection id="idB17134680F614392828BCA2C47898BA3"><enum>(b)</enum><header>Supplement not
supplant</header>
<paragraph id="id951EE3062AFC41BA8138BEAFEF12CA31"><enum>(1)</enum><header>In
general</header><text>An entity shall use Federal funds made available under
this section only to supplement the amount of funds that would, in the absence
of such Federal funds, be made available from non-Federal sources for the
activities involved.</text>
</paragraph><paragraph id="id1B93443065454F6DAD1B0BE558D1186B"><enum>(2)</enum><header>Maintenance of
effort</header><text>An entity shall ensure that for each fiscal year in which
the entity receives Federal funds under this section, the entity will maintain
existing non-Federal support for the activities for which such funds are
provided at not less than the level of such support for the fiscal year
preceding the year for which the funds are being provided.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD505D4175A4941BFB0FC9E7CACA0ADA4"><enum>(c)</enum><header display-inline="yes-display-inline">General Provision</header><text display-inline="yes-display-inline">Each entity that receives assistance with
amounts made available under this section shall ensure that, if such entity
carries out modernization, renovation, and repair through a contract, any such
contract process ensures the maximum number of qualified bidders, including
small, minority, and women-owned businesses, through full and open
competition.</text>
</subsection></section></subtitle><subtitle id="id24C2F6080D644638A2E1C4A6CA7C9F9D"><enum>B</enum><header>Rebuilding
America’s Manufacturing Power</header>
<section id="idF169632850174369A622A7CD9DE159E9"><enum>111.</enum><header>National
manufacturing strategy</header>
<subsection id="ID67ee379564114388b50be98f7653dc83"><enum>(a)</enum><header>Strategy
required</header>
<paragraph id="id8C7EB70536DD400AA3D4ACC6DB78588F"><enum>(1)</enum><header>In
general</header><text>Not later than 180 days after the date of the enactment
of this Act, the President shall develop a comprehensive national manufacturing
strategy.</text>
</paragraph><paragraph id="id39EB77FD0F564CADB2099B4320A9B4E1"><enum>(2)</enum><header>Biennial
revisions</header><text>Not less frequently than once every 2 years after the
date on which the President completes the strategy required by paragraph (1),
the President shall revise such strategy.</text>
</paragraph></subsection><subsection id="ID0077696898d64154877583b1d2b0d446"><enum>(b)</enum><header>Goals of
strategy</header><text>The President shall include in the national
manufacturing strategy required by subsection (a) short- and long-term goals
for United States manufacturing, including goals—</text>
<paragraph id="ID6bf3172c56674293b762bccceaad1208"><enum>(1)</enum><text>to increase the
aggregate number of manufacturing jobs in the United States so that such number
is not less than 20 percent of the sum of all nonfarm jobs in the United
States;</text>
</paragraph><paragraph id="ID594d56dbf66146e0a90deb940a301337"><enum>(2)</enum><text>to identify
emerging technologies to strengthen the competitiveness of United States
manufacturing in the global marketplace; and</text>
</paragraph><paragraph id="IDcd8fc9c943b3432cb839fcf724ea03e9"><enum>(3)</enum><text>to strengthen the
manufacturing sectors of the United States in which the United States is most
competitive in the global economy.</text>
</paragraph></subsection><subsection id="IDe886bb4c83584a64b631dcd9aecfa003"><enum>(c)</enum><header>Information
required</header><text>The national manufacturing strategy required by
subsection (a) shall include the following:</text>
<paragraph id="ID3fd45759ce3a4b36a3d45fce1382f99e"><enum>(1)</enum><text>A survey of all
persons with headquarters in the United States that maintain manufacturing
facilities outside of the United States to identify—</text>
<subparagraph id="ID747c05303ac840fb8fcd7adf1e5f4460"><enum>(A)</enum><text>the categories of
products manufactured at such facilities; and</text>
</subparagraph><subparagraph id="ID45566968aa1241db904c48710f7c66ab"><enum>(B)</enum><text>the number of
manufacturing jobs located at such facilities.</text>
</subparagraph></paragraph><paragraph id="ID223c723bc6f54c4f9382665905f69775"><enum>(2)</enum><text>A survey of all
Federal agencies that provide assistance to United States manufacturers,
including the following:</text>
<subparagraph id="IDe3a5e188901640098f6103410e4cb6d9"><enum>(A)</enum><text>The Department of
Commerce.</text>
</subparagraph><subparagraph id="ID57cf76cd266b4c49aa2a8a2bada083a3"><enum>(B)</enum><text>The Department of
Defense.</text>
</subparagraph><subparagraph id="ID1d609732e5af4d49a7e6024b9eab25ac"><enum>(C)</enum><text>The Department of
Energy.</text>
</subparagraph><subparagraph id="ID2656163d65104b1b93abe9e72fb1cb68"><enum>(D)</enum><text>The Department of
Labor.</text>
</subparagraph><subparagraph id="IDc6020bf50cf740c1b88c7f91d6f2ffb2"><enum>(E)</enum><text>The Department of
the Treasury.</text>
</subparagraph><subparagraph id="ID8ce9a4ba274d417fbb7da36beb9eb561"><enum>(F)</enum><text>The Small
Business Administration.</text>
</subparagraph><subparagraph id="ID65d057aa51014b9f96d13fe1ddac58bc"><enum>(G)</enum><text>The Office of
Management and Budget.</text>
</subparagraph><subparagraph id="ID123fd2635cdd4c0c8b0b865c1c05c32a"><enum>(H)</enum><text>The Office of
Science and Technology Policy.</text>
</subparagraph><subparagraph id="ID89ce6556f33648d3a30160318db591a9"><enum>(I)</enum><text>The Office of the
United States Trade Representative.</text>
</subparagraph><subparagraph id="IDc39b5282f87c46cb833624afca02c621"><enum>(J)</enum><text>The National
Science Foundation.</text>
</subparagraph><subparagraph id="ID0b1a606b1e6a48abb8fd739c8b0f0d3e"><enum>(K)</enum><text>Such other
Federal agencies as the President considers appropriate.</text>
</subparagraph></paragraph><paragraph commented="no" id="id9184e6f60cd94c6da18c68b7e9f0f124"><enum>(3)</enum><text>A survey of
manufacturing goods produced in the United States and where such goods are
produced.</text>
</paragraph><paragraph commented="no" id="idbca1f7e78fc443dd87d0a00da09aab95"><enum>(4)</enum><text>The number of
people in the United States employed by manufacturers operating in the United
States.</text>
</paragraph><paragraph commented="no" id="id82A65BE218734D059561F807049B6EC0"><enum>(5)</enum><text>An evaluation of
the global competitiveness of United States manufacturing, including the
following:</text>
<subparagraph commented="no" id="idE9948BA727C244ADBDCEA743ABD36331"><enum>(A)</enum><text>A comparison of
the manufacturing policies and strategies of the United States with the
policies and strategies of other counties, including the countries that are the
top 5 trading partners of the United States.</text>
</subparagraph><subparagraph commented="no" id="id3C07B6B2F1E442BC95856718856469E8"><enum>(B)</enum><text>A comparison of
the productivity of each sector of the manufacturing industry in the United
States with comparable sectors of manufacturing industries in other
countries.</text>
</subparagraph></paragraph></subsection><subsection id="IDa5ca95d485754331837bd356f89064b0"><enum>(d)</enum><header>Recommendations</header><text>The
President shall include in the national manufacturing strategy required by
subsection (a) recommendations for achieving the goals included in the strategy
pursuant to subsection (b). Such recommendations may include proposals as
follows:</text>
<paragraph id="ID86ed764d69a54e5bba1bc296525ad6db"><enum>(1)</enum><text>Actions to be
taken by the President, Congress, State, local, and territorial governments,
the private sector, universities, industry associations, and other
stakeholders.</text>
</paragraph><paragraph id="ID37255e6a7c894806a5151b89d5f7ada2"><enum>(2)</enum><text>Ways to improve
Government policies, coordination among entities developing such policies, and
Government interaction with the manufacturing sector, including interagency
communications regarding the effects of proposed or active Government
regulations or other executive actions on the United States manufacturing
sector and its workforce.</text>
</paragraph><paragraph id="ID8d0db612b71a48c5b7e38b21ce39b61a"><enum>(3)</enum><text>How each Federal
agency surveyed under subsection (c)(2) can best support the national
manufacturing strategy required by subsection (a).</text>
</paragraph><paragraph id="idCADFC00D37DD43D6A8C54F4EEAA23A7D"><enum>(4)</enum><text>Adoption of
strategies that have been implemented by other countries and proven
successful.</text>
</paragraph></subsection><subsection id="IDfd457c0b292a4af6b60fc16488611391"><enum>(e)</enum><header>Submittal of
strategy</header><text>Not later than 180 days after the date of the enactment
of this Act and each time the President revises under paragraph (2) of
subsection (a) the strategy required by paragraph (1) of such subsection, the
President shall submit to Congress such strategy.</text>
</subsection></section><section id="idF1DCE3E5FA7741ECB2C9B397278B40A9"><enum>112.</enum><header>Sectoral
technology and innovation centers</header><text display-inline="no-display-inline">The National Institute of Standards and
Technology Act (15 U.S.C. 271 et seq.) is amended by inserting after section 26
(15 U.S.C. 271l) the following:</text>
<quoted-block display-inline="no-display-inline" id="idFF07D77AD40A41BDAA0D8F87AB0421F3" style="OLC">
<section id="id2EACCE9200614D62A37069E09B66CCA5"><enum>27.</enum><header>Sectoral
technology and innovation centers</header>
<subsection id="idAF69C34EF95C4F73A2854B3A3AF83986"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="id04F7DBDA56CB40C195FA4509971A22ED"><enum>(1)</enum><header>Eligible
entities</header><text>The term <term>eligible entities</term> means a
consortia that—</text>
<subparagraph id="id0A9C3B4A95D0464292E6FCC4B7D9FFC3"><enum>(A)</enum><text>is comprised of
representatives from various organizations, such as State and local
governments, institutions of higher education, nonprofit organization, and
businesses;</text>
</subparagraph><subparagraph id="idB680242F51E44E0295971C43E4A1871D"><enum>(B)</enum><text>has an expertise
in either a specific area of technology or a specific aspect of the
manufacturing process; and</text>
</subparagraph><subparagraph id="id34ff16817e464fa0ad145a0778441fc8"><enum>(C)</enum><text>has a capacity to
serve small- or medium-sized manufacturers across the United States.</text>
</subparagraph></paragraph><paragraph id="idD245426C45FE4486806A00BB1CBADE6C"><enum>(2)</enum><header>Industry
cluster</header><text>The term <term>industry cluster</term> means a geographic
concentration of interconnected companies, specialized suppliers, service
providers, and associated institutions in a particular industry sector.</text>
</paragraph><paragraph id="idD93B5791784440908D00613BDFB4B47F"><enum>(3)</enum><header>Institution of
higher education</header><text>The term <term>institution of higher
education</term> has the meaning given the term in section 102 of the Higher
Education Act of 1965 (20 U.S.C. 1002).</text>
</paragraph><paragraph id="id916A8C17724B4969BA15FFB0CFCECD90"><enum>(4)</enum><header>Small- or
medium-sized manufacturer</header><text>The term <term>small- or medium-sized
manufacturer</term> means a manufacturer that is a small business concern (as
such term is defined in section 3 of the Small Business Act (15 U.S.C.
632)).</text>
</paragraph></subsection><subsection id="id0B1D9A39014C4DD39CFF6063D79BEA53"><enum>(b)</enum><header>Grants
authorized</header>
<paragraph id="idC3CF5A6AE5A5401CB5A8CB69CF782A26"><enum>(1)</enum><header>In
general</header><text>The Secretary may award grants to eligible entities to
establish sectoral technology and innovation centers—</text>
<subparagraph id="id34649F4B9A7B463C983E707A9E373F7B"><enum>(A)</enum><text>to improve the
capacity of small- or medium-sized manufacturers to innovate;</text>
</subparagraph><subparagraph id="id39de7c6c836248e2a91a229e257302fa"><enum>(B)</enum><text>to provide
assistance to small- or medium-sized manufacturers with early-stage product
development;</text>
</subparagraph><subparagraph id="id5BD54E6B18C544029F99B0FB301C0CD2"><enum>(C)</enum><text>to help small- or
medium-sized manufacturers improve the speed with which they commercialize new
products, processes, and technologies;</text>
</subparagraph><subparagraph id="id5e54a0cc86e5435eb5eedb8e613accbd"><enum>(D)</enum><text>to help small- or
medium-sized manufacturers reduce costs by improving efficiencies in the
manufacturing process, including through reduced energy use and environmental
waste;</text>
</subparagraph><subparagraph id="id5c2fff0b4d314812870d6b9a86e0bac9"><enum>(E)</enum><text>to link small- or
medium-sized manufacturers with cutting edge research and technologies
developed by employees of institutions of higher education or other
institutions that conduct scientific research; and</text>
</subparagraph><subparagraph id="id9083E59D89D0498D8DDBA38066833AB4"><enum>(F)</enum><text>to facilitate the
sharing of information and best practices relating to manufacturing and product
development among the following:</text>
<clause id="id25D117414B194262849590EA21F20F4B"><enum>(i)</enum><text>Small- or
medium-sized manufacturers.</text>
</clause><clause id="id2C89D661E2DC478C9B8CD904BFC2C9BB"><enum>(ii)</enum><text>Federal and
State agencies that provide assistance to small- or medium-sized
manufacturers.</text>
</clause><clause id="id49A22F64405C4DDD8787348BD0DE8CBA"><enum>(iii)</enum><text>Nongovernmental
organizations that provide assistance to small- or medium-sized
manufacturers.</text>
</clause><clause id="id035C85434C114B32A79C46EF9124D7E4"><enum>(iv)</enum><text>Institutions of
higher education.</text>
</clause></subparagraph></paragraph><paragraph id="id292C85947EA249D689A21EFE8FB180E5"><enum>(2)</enum><header>Minimum number
of sectoral technology and innovation centers</header><text>In awarding grants
under paragraph (1), the Secretary shall ensure that not fewer than 25 sectoral
technology and innovation centers are established under this section before the
date that is 2 years after the date of the enactment of this section.</text>
</paragraph></subsection><subsection id="id80E39670785B450FAC5F974B1306112E"><enum>(c)</enum><header>Use of
funds</header>
<paragraph id="id4CACD8D075244D63A6EFD0A3F4B9C7EA"><enum>(1)</enum><header>In
general</header><text>Grants awarded pursuant to subsection (b)(1) shall be
used to establish a sectoral technology and innovation center that offers a
range of services for the purposes described in paragraphs (1) through (6) of
such subsection, including services relating to the following:</text>
<subparagraph id="id1A1630AEDEE24C1AA9A9FDABFEF8A320"><enum>(A)</enum><text>Applied research
and development.</text>
</subparagraph><subparagraph id="id74CFC592E5454D2BB5DBEC5E4EDAE25A"><enum>(B)</enum><text>Proof-of-concept
development and prototyping.</text>
</subparagraph><subparagraph id="idB919C66B1AD641039457C35B4BC79171"><enum>(C)</enum><text>Manufacturing
process development and efficiency enhancements.</text>
</subparagraph><subparagraph id="id11FE129140A24E7EBCB1518831F5C57B"><enum>(D)</enum><text>Other technical
business matters.</text>
</subparagraph></paragraph><paragraph id="idCE90746A179C4F3388CF064705CA625A"><enum>(2)</enum><header>Focus</header><text>Each
technology innovation center established with a grant awarded under subsection
(b)(1) shall be established with a focus on a specific technology area or
specific aspect of the manufacturing process corresponding with—</text>
<subparagraph id="idE40B2254FB39436FBA4F46A99C0D3C05"><enum>(A)</enum><text>the expertise of
the eligible entity establishing the center; and</text>
</subparagraph><subparagraph id="idE82645D207234EB6A46F40F3F63B3FAB"><enum>(B)</enum><text>the needs of an
industry cluster located in geographic proximity to the center.</text>
</subparagraph></paragraph><paragraph id="idE7BB817C0E2A441DBF30C5599A37F6B5"><enum>(3)</enum><header>Change in
services provided</header><text>The Secretary may allow a recipient of a grant
under subsection (b)(1) to modify the range of services offered by the
recipient's technology innovation center under paragraph (1) of this
subsection.</text>
</paragraph><paragraph id="id9DEFBA3A1D1D467FABCDEA94BA99AC8D"><enum>(4)</enum><header>Affiliation
with institutions of higher education and national
laboratories</header><text>Services offered by a technology innovation center
under paragraph (1) shall be offered in affiliation with an institution of
higher education or a national laboratory.</text>
</paragraph></subsection><subsection id="idFF29D1C59EA04D1F8E47E3E2F12CEE9F"><enum>(d)</enum><header>Application for
grants</header>
<paragraph id="id1C647FB8006B4B1BA3AAD5DDD8045BD3"><enum>(1)</enum><header>In
general</header><text>An eligible entity seeking a grant under subsection
(b)(1) shall submit to the Secretary an application therefor in such form and
in such manner as the Secretary considers appropriate.</text>
</paragraph><paragraph id="id710CEB6D16254F7EA619E8970B73CCC0"><enum>(2)</enum><header>Process
required</header><text>The Secretary shall establish a standardized application
process for purposes of awarding grants under subsection (b)(1).</text>
</paragraph><paragraph id="id9D4F3437D97B4D319227C257D96335E6"><enum>(3)</enum><header>Solicitation of
applications</header><text>The Secretary shall solicit applications for grants
under subsection (b) from eligible entities.</text>
</paragraph></subsection><subsection id="id05F29E747A434A2AB0646AA24304D0D1"><enum>(e)</enum><header>Selection of
grant recipients</header>
<paragraph id="id649B96853BAD4D208313C7C31335FC85"><enum>(1)</enum><header>Competitive
basis</header><text>Grants awarded under subsection (b)(1) shall be awarded on
a competitive basis.</text>
</paragraph><paragraph id="idFFAC454F3BF34BECA5022440CB64DF4B"><enum>(2)</enum><header>Preferences</header><text>In
selecting grant recipients, the Secretary shall give preference to an eligible
entity that—</text>
<subparagraph id="idC06E1592BF0E4F26ACDF5EE157095259"><enum>(A)</enum><text>has an expertise
in a specific technology area or manufacturing process that is needed by an
industry cluster;</text>
</subparagraph><subparagraph id="idF0D6195040CD460FBA6FDA64050216A9"><enum>(B)</enum><text>agrees to
establish a technology innovation center in the geographical area of such
industry cluster;</text>
</subparagraph><subparagraph id="id5C4058702F1A4BBEADDE2EA0F17BFD8C"><enum>(C)</enum><text>represents a
broad range of stakeholders; and</text>
</subparagraph><subparagraph id="id1D62944C28444B829F1E760EA45FBB49"><enum>(D)</enum><text>can demonstrate
that the non-Federal contributions for the operation of the technology
innovation center will be significant.</text>
</subparagraph></paragraph><paragraph id="id26B431AA10854D0BBDA1D239EA5A6549"><enum>(3)</enum><header>Consultation</header><text>In
selecting grant recipients, the Secretary shall consult with the Secretary of
Agriculture, the Secretary of Defense, the Secretary of Energy, the Secretary
of Labor, the Assistant Secretary for Economic Development, the National
Science Foundation, the Office of Innovation and Entrepreneurship, and such
other Federal agencies as may be appropriate to determine whether applicants
have sufficient expertise to establish a technology innovation center as
described in paragraphs (1) and (2) of subsection (c).</text>
</paragraph></subsection><subsection id="idBC02F18EC3C442D0B596647FF2551507"><enum>(f)</enum><header>Federal
share</header><text>An eligible entity that receives a grant under subsection
(b)(1) shall provide such non-Federal contributions for the operation of the
sectoral technology and innovation center established with such grant as the
Secretary considers appropriate.</text>
</subsection><subsection id="idC61F3F4724BC466FAF731ACD2B286B5C"><enum>(g)</enum><header>User
fees</header><text>An eligible entity that establishes a technology innovation
center with a grant awarded under subsection (b)(1) may establish user fees to
be paid by recipients of services provided by the center to meet the operating
costs of the center or for purposes of providing non-Federal contributions as
required by subsection (f).</text>
</subsection><subsection id="id8F91C7B9B07F400ABA7DEBDD14A571C4"><enum>(h)</enum><header>Funding</header><text>There
shall be made available from the Rebuild America Trust Fund under section 9512
of the Internal Revenue Code of 1986, the following amount to carry out this
section:</text>
<paragraph id="id5F791DC99E9D4E7B9A0E5AA72FA2EDD3"><enum>(1)</enum><text>$1,000,000,000
for fiscal year 2013.</text>
</paragraph><paragraph id="id813AB193C0144DB29E4F9673B9FAF4FC"><enum>(2)</enum><text>$2,500,000,000
for fiscal year 2014.</text>
</paragraph><paragraph id="id38805459E07D46218BB85FF117E50B15"><enum>(3)</enum><text>$2,500,000,000
for fiscal year 2015.</text>
</paragraph><paragraph id="idEA09D27977FC4160AC717C7371CD20DA"><enum>(4)</enum><text>$1,000,000,000
for each of fiscal years 2016 through
2022.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idF25E4F6068C1414F9D7A3D4AE68A161F"><enum>113.</enum><header>Capital for
small manufacturers with firm orders</header>
<subsection id="id87002ED93F6E40798C3D5F34F9B43F4B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 7(a) of the
Small Business Act (15 U.S.C. 636(a)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idDA647E8575324F7F9DDC487DF887A716" style="OLC">
<paragraph id="id41C1C76DF681413A9603C0F2687D2684"><enum>(36)</enum><header>Capital for
small manufacturers with firm orders</header>
<subparagraph id="id830059BA96754CDABF2F052AE2CA28A5"><enum>(A)</enum><header>Definitions</header><text>In
this paragraph—</text>
<clause id="id353A237524D84272B9FD649196F75F7D"><enum>(i)</enum><text>the term
<term>firm order</term> means an order for goods placed by a person that the
Administrator determines is—</text>
<subclause id="idAD3BE941279141BFABF303A476073489"><enum>(I)</enum><text>required by law
or contract to pay for the goods upon receipt of the goods; and</text>
</subclause><subclause id="idB52C2218084B41AEABB38EE7D1615581"><enum>(II)</enum><text>likely to make
the payment described in subclause (I); and</text>
</subclause></clause><clause id="id6BC461D56DAA409096FC375672892130"><enum>(ii)</enum><text>the term
<term>manufacturer</term> means a small business concern the primary business
of which is classified in sector 31, 32, or 33 of the North American Industrial
Classification System.</text>
</clause></subparagraph><subparagraph id="id4F538D04C86B40508C33D8CFD9EE204C"><enum>(B)</enum><header>In
general</header><text>The Administrator may guarantee a loan under this
subsection to a manufacturer, to provide capital for the production of goods
for a firm order, if the Administrator determines that the manufacturer will be
able to produce the goods using the capital.</text>
</subparagraph><subparagraph id="id6B85909BE7EF43E492A3C01EFD284E70"><enum>(C)</enum><header>Amount</header><text>A
loan guaranteed under this paragraph shall be in an amount that is not more
than $10,000,000.</text>
</subparagraph><subparagraph id="id495DCA63D129487B93990FD0EB2834D3"><enum>(D)</enum><header>Guarantee
percentage</header><text>The Administrator may guarantee not more than 95
percent of the amount of a loan under this
paragraph.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idB0FDBD5E42164D3C894413733E6A9C57"><enum>(b)</enum><header>Technical and
conforming amendments</header><text>Section 1133(b) of the Small Business Jobs
Act of 2010 (15 U.S.C. 636 note) is amended—</text>
<paragraph id="idE7F8366A377B4CC6B59838A051C5F109"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="id5A4F4FDB2BB44E23AA5D2270FFEB2C06"><enum>(2)</enum><text>in paragraph (2),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="id00494091EC694F4EA823F487191B7D34"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idF2D8E993024C48CEAF90A1E5569994CC" style="OLC">
<paragraph id="id8B0751AB51CA48689F77A4C8F06F3642"><enum>(3)</enum><text>by redesignating
paragraph (36), as added by section 113 of the
<short-title>Rebuild America Act</short-title>, as
paragraph
(35).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="id2505B862EB704FDCB05A9BFB9CD49135"><enum>114.</enum><header>Manufacturing
Extension Partnership</header>
<subsection id="id6E63524C9FBC45B7B55F844380186276"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">There shall be made
available from the Rebuild America Trust Fund under section 9512 of the
Internal Revenue Code of 1986, $130,000,000 for each of fiscal years 2013
through 2022 for the Hollings Manufacturing Extension Partnership of the
National Institute of Standards and Technology.</text>
</subsection><subsection commented="no" id="id1299057A0B804CB199229B9A6F0C3696"><enum>(b)</enum><header>Adjustments for
inflation</header><text>For fiscal year 2014 and each fiscal year thereafter,
the amount specified in subsection (a) shall be adjusted to reflect the
percentage (if any) of the increase or decrease (as the case may be) in the
average of the Consumer Price Index for the 12-month period ending on the April
30 preceding the beginning of the fiscal year compared to the average of the
Consumer Price Index for the 12-month period ending April 30, 2012.</text>
</subsection></section><section id="id2B51D9D615E04D69A56B00A459976942" section-type="subsequent-section"><enum>115.</enum><header>Extension of
research credit; increase in alternative simplified research credit</header>
<subsection id="H39653CDD1AB74ED4BC57CD1661649468"><enum>(a)</enum><header>Extension of
credit</header>
<paragraph id="HAAF8160ED8634B7B00C4522273C45012"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 41(h)(1) of the Internal Revenue Code of 1986 is amended by striking
<quote>December 31, 2011</quote> and inserting <quote>December 31,
2016</quote>.</text>
</paragraph><paragraph id="H62C455B59AD641AC88BDB8785F02C871"><enum>(2)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">Subparagraph (D) of
section 45C(b)(1) of such Code is amended by striking <quote>December 31,
2011</quote> and inserting <quote>December 31, 2016</quote>.</text>
</paragraph><paragraph id="HBE2C0F2EC3B94839A483B18F3C32D597"><enum>(3)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this subsection shall apply to amounts paid or incurred after December 31,
2011.</text>
</paragraph></subsection><subsection id="H815888F182DD403EB4632B41EDB54E31"><enum>(b)</enum><header>Alternative
simplified research credit increased</header>
<paragraph id="HD135BDD403C14D36A3B4BD70D9157A8"><enum>(1)</enum><header>Increased
credit</header><text>Subparagraph (A) of section 41(c)(5) of the Internal
Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id86E516735F344C2F83190F03FF58743D" style="OLC">
<subparagraph id="id3F78DFA169C84E86A9177A56288A2C17"><enum>(A)</enum><header>Determination
of credit</header>
<clause id="id6DAA901C60D44064BDB1E1BBCFC1E30D"><enum>(i)</enum><header>In
general</header><text>At the election of the taxpayer, the credit determined
under subsection (a)(1) shall be equal to the applicable percentage of so much
of the qualified research expenses for the taxable year as exceeds 50 percent
of the average qualified research expenses for the 3 taxable years preceding
the taxable year for which the credit is being determined.</text>
</clause><clause id="id763DC45F87E94324AABF41B8A15E02CD"><enum>(ii)</enum><header>Applicable
percentage</header><text>For purposes of clause (i), the applicable percentage
for any taxable year is equal to—</text>
<subclause id="id490D9712A5E04C40B8B17A62FFBC2A00"><enum>(I)</enum><text>14 percent,
increased by</text>
</subclause><subclause id="id26DEC44D343144FEBEE95C4A29F5B9A2"><enum>(II)</enum><text>1 percentage
point (not to exceed 6 percentage points) for each 2 percent increase in the
taxpayer's qualified manufacturing full-time equivalent employees during the
5-taxable-year period ending immediately before such taxable year.</text>
</subclause></clause><clause id="id2759D112BC4D49809816D346C5D9BA9C"><enum>(iii)</enum><header>Limitation</header><text>The
increase in the amount of the credit determined under subsection (a)(1) by
reason of the application of clause (ii)(II) shall not exceed the product
of—</text>
<subclause id="id1237F8DA259F4FE9990C599298BB0B12"><enum>(I)</enum><text>$5,000,
multiplied by</text>
</subclause><subclause id="idC6AA178067FF445E976BDBA6C18BDC89"><enum>(II)</enum><text>the number of
qualified manufacturing full-time equivalent employees taken into account for
purposes of determining the increase described in clause (ii)(II).</text>
</subclause></clause><clause id="id4692062C800C423387EA200394F9E87F"><enum>(iv)</enum><header>Qualified
manufacturing full-time equivalent employees</header><text display-inline="yes-display-inline">For purposes of this subparagraph, the term
<term>qualified manufacturing full-time equivalent employees</term> means
full-time equivalent employees (as defined in section 45R(d)(2)) who provide
the taxpayer manufacturing services in the United States.</text>
</clause><clause id="id82BA44E9A6EA461C8498ED1EDE3BFB2D"><enum>(v)</enum><header>Employees
excluded for changes in ownership of trades or businesses</header><text>In
determining the number of qualified manufacturing full-time equivalent
employees for any 5-taxable-year period referred to in clause (ii)(II), the
taxpayer shall not take into account—</text>
<subclause id="id37259AC9FA144C3195A7246BDE72954D"><enum>(I)</enum><text>any individual
who was an employee, on the date of acquisition, of any trade or business
acquired by the taxpayer during such period, and</text>
</subclause><subclause id="id8FFB92F976614502B8C6482CA7B4CF1D"><enum>(II)</enum><text>any individual
who was an employee of any trade or business disposed of by the taxpayer during
such period.</text>
</subclause></clause><clause id="id014CBF788CDE4E9893AD4A7E604841D4"><enum>(vi)</enum><header>Manufacturing
services</header><text>For purposes of this subparagraph, the term
<term>manufacturing services</term> means qualified production activities
within the meaning of section 199(c) other than the extraction of fossil fuels
or minerals, agricultural production, activities described in section
199(b)(2)(D), or activities described in
199(c)(4)(B).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idA96131CC9ACA48F8A2209984EBE1EE55"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 41(c)(5)(B)(ii) of such Code is amended by
striking <quote>6 percent</quote> and inserting <quote>one-half of the
applicable percentage</quote>.</text>
</paragraph><paragraph id="H430E67E282E64296A7EFE6D03E2C6090"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
taxable years beginning after December 31, 2016.</text>
</paragraph></subsection><subsection id="id181BFA6C74B3461E9642D0DDEDFCF906"><enum>(c)</enum><header>Technical
corrections</header>
<paragraph id="id7890243EF3BF46029318C7FF1C3FFD94"><enum>(1)</enum><header>In
general</header><text>Section 409 of the Internal Revenue Code of 1986 is
amended—</text>
<subparagraph id="id30FE73CBE14949AB914C3906DD3507E3"><enum>(A)</enum><text>by inserting
<quote>, as in effect before the enactment of the Tax Reform Act of
1984)</quote> after <quote>section 41(c)(1)(B)</quote> in subsection
(b)(1)(A),</text>
</subparagraph><subparagraph id="id5639C232779C493DA190E5A25B24A324"><enum>(B)</enum><text>by inserting
<quote>, as in effect before the enactment of the Tax Reform Act of
1984</quote> after <quote>relating to the employee stock ownership
credit</quote> in subsection (b)(4),</text>
</subparagraph><subparagraph id="id46DA3E0EBD204EEE92C15C4068D75455"><enum>(C)</enum><text>by inserting
<quote>(as in effect before the enactment of the Tax Reform Act of
1984)</quote> after <quote>section 41(c)(1)(B)</quote> in subsection
(i)(1)(A),</text>
</subparagraph><subparagraph id="id520DCB7DA9CC44B0A4CF13590601A170"><enum>(D)</enum><text>by inserting
<quote>(as in effect before the enactment of the Tax Reform Act of
1984)</quote> after <quote>section 41(c)(1)(B)</quote> in subsection
(m),</text>
</subparagraph><subparagraph id="id5E6AEC9AEB0C467288E2F18B704E8FCE"><enum>(E)</enum><text>by inserting
<quote>(as so in effect)</quote> after <quote>section 48(n)(1)</quote> in
subsection (m),</text>
</subparagraph><subparagraph id="id5B98416DEEDF4C01B833D6CB72AAF18E"><enum>(F)</enum><text>by inserting
<quote>(as in effect before the enactment of the Tax Reform Act of
1984)</quote> after <quote>section 48(n)</quote> in subsection (q)(1),
and</text>
</subparagraph><subparagraph id="idBD1F4A199580489BB186CE5AB3347426"><enum>(G)</enum><text>by inserting
<quote>(as in effect before the enactment of the Tax Reform Act of
1984)</quote> after <quote>section 41</quote> in subsection (q)(3).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1DFE148FF2F84D61BE13A16E02979ECF"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by this subsection shall take effect on
the date of the enactment of this Act.</text>
</paragraph></subsection></section><section id="ID1f6874fe09a24c139ac22522e294e790"><enum>116.</enum><header>Inclusion of
certain provisions in trade agreements</header>
<subsection id="IDf39a73f8e480453a8bd7394bf0e973b1"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph id="id1603CFD975C544D2868CC72B71DE1D69"><enum>(1)</enum><header>Core labor
rights</header><text>The term <term>core labor rights</term> means the core
labor rights as stated in the International Labour Organization conventions
dealing with—</text>
<subparagraph id="id4CE3115A5C2E4A238B88360E644C4A73"><enum>(A)</enum><text>freedom of
association and the effective recognition of the right to collective
bargaining;</text>
</subparagraph><subparagraph id="idBCE1EC96A9414133A940FCD077F24054"><enum>(B)</enum><text>the elimination
of all forms of forced or compulsory labor;</text>
</subparagraph><subparagraph id="idDA7651CA5D7F4FD9A20D08A6888A16DA"><enum>(C)</enum><text>the effective
abolition of child labor; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFC94C08DCA8046BFB46B23097638411E"><enum>(D)</enum><text>the elimination
of discrimination with respect to employment and occupation.</text>
</subparagraph></paragraph><paragraph id="id0D499CB469384C048E061351E4FE70E2"><enum>(2)</enum><header>Multilateral
environmental agreement</header><text>The term <term>multilateral environmental
agreement</term> means any international agreement or provision thereof to
which the United States is a party and that is intended to protect, or has the
effect of protecting, the environment or human health.</text>
</paragraph></subsection><subsection id="id6D2AE5A38E6849988FC2F8031B81371F"><enum>(b)</enum><header>Limitation on
consideration of bills implementing trade
agreements</header><text>Notwithstanding section 151 of the Trade Act of 1974
(19 U.S.C. 2191) or any other provision of law, any bill implementing a trade
agreement between the United States and another country that is introduced in
Congress after the date of the enactment of this Act shall be subject to a
point of order pursuant to subsection (d) unless the trade agreement meets the
requirements described in subsection (c).</text>
</subsection><subsection id="id0A9DC1027E7D4E06859ED6B95B57BEC8"><enum>(c)</enum><header>Requirements</header><text display-inline="yes-display-inline">Each trade agreement between the United
States and another country with respect to which an implementing bill is
introduced on or after the date of the enactment of this Act shall meet the
following requirements:</text>
<paragraph id="ID9a55db4e336442038468f2f190256163"><enum>(1)</enum><header>Labor
standards</header><text>The labor provisions of the agreement shall—</text>
<subparagraph id="IDaaabeba48a3b4a258bc71f61ee0bb481"><enum>(A)</enum><text>be included in
the core text of the agreement;</text>
</subparagraph><subparagraph id="IDb6fcb70399664a4fb1484e4f5d2d75fc"><enum>(B)</enum><text>require each
country that is a party to the agreement—</text>
<clause id="id8E5A3D9A368345249BD85382C9339C66"><enum>(i)</enum><text>to
adopt and maintain laws and regulations (including laws applicable to any
designated zone in the country) that establish core labor rights; and</text>
</clause><clause id="id84DB3B52F3FD40DE953B33B469BEEFAE"><enum>(ii)</enum><text>to
effectively enforce laws relating to core labor rights and laws relating to
acceptable conditions of work (including laws relating to minimum wages, hours
of work, and occupational safety and health);</text>
</clause></subparagraph><subparagraph id="ID52accadcaab749008752bccf9d606ca7"><enum>(C)</enum><text>prohibit a
country that is a party to the agreement from waiving or otherwise derogating
from, or offering to waive or otherwise derogate from, the country's laws and
regulations relating to the core labor rights and acceptable conditions of work
described in subparagraph (B);</text>
</subparagraph><subparagraph id="id69032F5961EB4DDBB11F62A84A9F8F75"><enum>(D)</enum><text>provide that
failures to meet the labor requirements of the agreement, regardless of the
effect that failure has on trade, shall be subject to the dispute resolution
and enforcement mechanisms and penalties of the agreement;</text>
</subparagraph><subparagraph id="idCB1863ED1367494CBA45ABA742AFD8A9"><enum>(E)</enum><text>provide that
enforcement mechanisms and penalties for failures described in subparagraph (D)
are included in the core text of the agreement and are at least as effective as
the mechanisms and penalties that apply to the commercial provisions of the
agreement; and</text>
</subparagraph><subparagraph id="ID0440936fa5a74d2281921a7a1f347636"><enum>(F)</enum><text>strengthen the
capacity of each country that is a party to the agreement to promote, protect,
and enforce core labor rights.</text>
</subparagraph></paragraph><paragraph id="IDffb3d56b37314cdb8fb16dc634251cda"><enum>(2)</enum><header>Environmental
and public safety standards</header><text>The environmental provisions of the
agreement shall—</text>
<subparagraph id="ID7372fe29e8044cb8b04acd0126097092"><enum>(A)</enum><text>be included in
the text of the agreement;</text>
</subparagraph><subparagraph id="IDb77426ca909743be9798baeba85e5b24"><enum>(B)</enum><text>prohibit each
country that is a party to the agreement from weakening, eliminating, or
failing to enforce domestic environmental or other public interest standards to
promote trade or attract investment;</text>
</subparagraph><subparagraph id="ID67d43f35fe5749f887f16bc2e451ebce"><enum>(C)</enum><text>require each such
country to implement and enforce fully and effectively the country's
obligations under multilateral environmental agreements and provide for the
enforcement of such obligations under the agreement;</text>
</subparagraph><subparagraph commented="no" id="ID6ae8efef333849fb82ca80c787aa29ab"><enum>(D)</enum><text>prohibit the
trade of products that are illegally harvested or extracted and the trade of
goods derived from illegally harvested or extracted natural resources,
including timber and timber products, fish, wildlife, and associated products,
mineral resources, or other environmentally sensitive goods;</text>
</subparagraph><subparagraph id="ID63adf065c0b748948a639b0b185f2a95"><enum>(E)</enum><text>provide that the
failure to meet the environmental standards required by the agreement be
subject to dispute resolution and enforcement mechanisms and penalties that are
at least as effective as the mechanisms and penalties that apply to the
commercial provisions of the agreement; and</text>
</subparagraph><subparagraph id="IDfbf2de8b29c847e0b4442f43685bcdbe"><enum>(F)</enum><text>allow each
country that is a party to the agreement to adopt and implement environmental,
health, and safety standards, recognizing the legitimate right of governments
to protect the environment and public health and safety.</text>
</subparagraph></paragraph><paragraph id="ID4d8e88bf0cba41c3b0769b0a1bdbe760"><enum>(3)</enum><header>Investment
provisions</header><text>If the agreement contains provisions relating to
investment, such provisions shall—</text>
<subparagraph id="IDcca68125ddd54743b8527ba290d2fb35"><enum>(A)</enum><text>ensure that
foreign investors operating in the United States are not afforded greater
procedural or substantive rights under the trade agreement than those afforded
to domestic investors under the Constitution and laws of the United
States;</text>
</subparagraph><subparagraph id="id57920dd4107d4f2c9edcd2b5ebf07567"><enum>(B)</enum><text>include strong
and enforceable commitments that an entity owned or controlled by a foreign
government that invests in operations in the United States—</text>
<clause id="id02a03c2e0cda4043b4c351361af5f768"><enum>(i)</enum><text>will make such
investments and will conduct such operations on a commercial basis only;
and</text>
</clause><clause id="id0f83342505964b1da90a2e773923fd0b"><enum>(ii)</enum><text>will not receive
benefits, such as financing, at below market rates, or components or materials
at below market prices, from the foreign government for such operations;
and</text>
</clause></subparagraph><subparagraph commented="no" id="IDd67118f3e7a8498fa43aa82a3a0c4371"><enum>(C)</enum><text>define the
standard of minimum treatment to provide that foreign investors do not have
greater legal rights than United States citizens possess under the due process
clause of section 1 of the 14th Amendment to the Constitution.</text>
</subparagraph></paragraph></subsection><subsection id="id34C9C1986FA644F7BAC86EF3364E53E0"><enum>(d)</enum><header>Point of order
in Senate</header><text>The Senate shall cease consideration of a bill to
implement a trade agreement introduced on or after the date of enactment of
this Act if—</text>
<paragraph id="idDDFC0FEB2F154F8089386CA9AE24E751"><enum>(1)</enum><text>a point of order
is made by any Senator against the bill based on the noncompliance of the trade
agreement with the requirements of subsection (c); and</text>
</paragraph><paragraph id="id9DAA99F0F62646EC8E5BAF1C9C7652B0"><enum>(2)</enum><text>the point of
order is sustained by the Presiding Officer.</text>
</paragraph></subsection><subsection id="id8E52D1CB760C4D57A5F3E47D42B63240"><enum>(e)</enum><header>Waivers and
appeals</header>
<paragraph id="id1F74CCFF0A31449C85EFC5E5338511A0"><enum>(1)</enum><header>Waivers</header><text>Before
the Presiding Officer rules on a point of order described in subsection (d),
any Senator may move to waive the point of order and the motion to waive shall
not be subject to amendment. A point of order described in subsection (d) is
waived only by the affirmative vote of 60 Members of the Senate, duly chosen
and sworn.</text>
</paragraph><paragraph id="id937F63691FAD44238CB9F689E077C19B"><enum>(2)</enum><header>Appeals</header><text>After
the Presiding Officer rules on a point of order described in subsection (d),
any Senator may appeal the ruling of the Presiding Officer on the point of
order as it applies to some or all of the provisions on which the Presiding
Officer ruled. A ruling of the Presiding Officer on a point of order described
in subsection (d) is sustained unless 60 Members of the Senate, duly chosen and
sworn, vote not to sustain the ruling.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC0900078AE054F36B55B84A8DE9C23D3"><enum>(3)</enum><header>Debate</header><text>Debate
on the motion to waive under paragraph (1) or on an appeal of the ruling of the
Presiding Officer under paragraph (2) shall be limited to 1 hour. The time
shall be equally divided between, and controlled by, the majority leader and
the minority leader of the Senate, or their designees.</text>
</paragraph></subsection></section><section id="idC9BCB6C45D3E47719E25B6A93E3A846A"><enum>117.</enum><header>Funding for
Interagency Trade Enforcement Center</header>
<subsection commented="no" id="IDf1a641fe118c402c9c08f707d988a236"><enum>(a)</enum><header>In
general</header><text>There shall be made available from the Rebuild America
Trust Fund under section 9512 of the Internal Revenue Code of 1986, the
following amounts for the Interagency Trade Enforcement Center established by
Executive Order of February 28, 2012, entitled <term>Establishment of the
Interagency Trade Enforcement Center</term>:</text>
<paragraph commented="no" id="ID9c181d8562bf4a08a31ee74efc73890a"><enum>(1)</enum><text>For fiscal year
2013, $26,000,000.</text>
</paragraph><paragraph commented="no" id="IDa6e88e4f81c847c2856413ac2c8ec846"><enum>(2)</enum><text>For fiscal year
2014 and each fiscal year thereafter, the amount specified in paragraph (1), as
adjusted to reflect the percentage (if any) of the increase or decrease (as the
case may be) in the average of the Consumer Price Index for the 12-month period
ending on the April 30 preceding the beginning of the fiscal year compared to
the average of the Consumer Price Index for the 12-month period ending April
30, 2012.</text>
</paragraph></subsection><subsection commented="no" id="id967E4F479D40415D996CCF2CF47C956C"><enum>(b)</enum><header>Consumer Price
Index defined</header><text>In this section, the term <term>Consumer Price
Index</term> means the Consumer Price Index for All Urban Consumers published
by the Bureau of Labor Statistics of the Department of Labor.</text>
</subsection></section><section id="H97D2ECC0C3A54D0DA78CFC5CB347B1D4"><enum>118.</enum><header>Imposition of
countervailing duties for subsidies relating to fundamentally undervalued
currencies</header>
<subsection id="HB3B5B95D7C7B4B02A7C2474F794413CA"><enum>(a)</enum><header>Benefit
conferred</header><text>Section 771(5)(E) of the Tariff Act of 1930 (19 U.S.C.
1677(5)(E)) is amended—</text>
<paragraph id="H070C25C299DC45F1A6497D0A32A67BF0"><enum>(1)</enum><text>in clause (iii),
by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="H09E55732E60D43EF93D788867A486A0F"><enum>(2)</enum><text>in clause (iv), by
striking the period at the end and inserting <quote>, and</quote>; and</text>
</paragraph><paragraph id="H4780FA22C31E470A905C4DC3115F7FAA"><enum>(3)</enum><text>by inserting after
clause (iv) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HEFF73F347EC54125B28049C20EB9E4EE" style="OLC">
<clause id="H637827C4E9584345B6621DDE14CEB018"><enum>(v)</enum><text>in
the case in which the currency of a country in which the subject merchandise is
produced is exchanged for foreign currency obtained from export transactions,
and the currency of such country is a fundamentally undervalued currency, as
defined in paragraph (37), if there is a difference between the amount of the
currency of such country provided and the amount of the currency of such
country that would have been provided if the real effective exchange rate of
the currency of such country were not undervalued, as determined pursuant to
paragraph
(38).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H7DEBCA42B7D043C2AD17B88EA0886A9D"><enum>(b)</enum><header>Export
subsidy</header><text>Section 771(5A)(B) of the Tariff Act of 1930 (19 U.S.C.
1677(5A)(B)) is amended by adding at the end the following new sentence:
<quote>In the case of a subsidy relating to a fundamentally undervalued
currency, the fact that the subsidy may also be provided in circumstances not
involving export shall not, for that reason alone, mean that the subsidy cannot
be considered contingent upon export performance.</quote>.</text>
</subsection><subsection id="H1D33D296ADCB4F888032AC90838A5852"><enum>(c)</enum><header>Definition of
fundamentally undervalued currency</header><text>Section 771 of the Tariff Act
of 1930 (19 U.S.C. 1677) is amended by adding at the end the following new
paragraph:</text>
<quoted-block id="H055B5837AD3B4312BF9D4177C18089AD" style="OLC">
<paragraph id="HE200A8D105B642B5BD4D35FCFF6FB40A"><enum>(37)</enum><header>Fundamentally
undervalued currency</header><text>The administering authority shall determine
that the currency of a country in which the subject merchandise is produced is
a <term>fundamentally undervalued currency</term> if—</text>
<subparagraph id="H7567E60B214448B2BED610D61935EC9E"><enum>(A)</enum><text display-inline="yes-display-inline">the government of the country (including
any public entity within the territory of the country) engages in protracted,
large-scale intervention in one or more foreign exchange markets during part or
all of the 18-month period that represents the most recent 18 months for which
the information required under paragraph (38) is reasonably available, but that
does not include any period of time later than the final month in the period of
investigation or the period of review, as applicable;</text>
</subparagraph><subparagraph id="HCC24B8F611764940A727755DFCCF4CB7"><enum>(B)</enum><text display-inline="yes-display-inline">the real effective exchange rate of the
currency is undervalued by at least 5 percent, on average and as calculated
under paragraph (38), relative to the equilibrium real effective exchange rate
for the country’s currency during the 18-month period;</text>
</subparagraph><subparagraph id="H78EC0DA8981248F1BD1CEBC762B48F5C"><enum>(C)</enum><text>during the
18-month period, the country has experienced significant and persistent global
current account surpluses; and</text>
</subparagraph><subparagraph id="H16DB1A878AA44E1C99C2258BDC0B48B6"><enum>(D)</enum><text>during the
18-month period, the foreign asset reserves held by the government of the
country exceed—</text>
<clause id="HF3BCD4413D404622BC7ACF43D196FB6F"><enum>(i)</enum><text>the amount
necessary to repay all debt obligations of the government falling due within
the coming 12 months;</text>
</clause><clause id="H861506B8166F4505915D518EFF4E206B"><enum>(ii)</enum><text>20 percent of the
country’s money supply, using standard measures of M2; and</text>
</clause><clause id="HC103A616FB1F440D8BFB7934F16D5C1F"><enum>(iii)</enum><text>the value of the
country’s imports during the previous 4
months.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5F3869E9281C411798D34E0D34196FDD"><enum>(d)</enum><header>Definition of
real effective exchange rate undervaluation</header><text display-inline="yes-display-inline">Section 771 of the Tariff Act of 1930 (19
U.S.C. 1677), as amended by subsection (c) of this section, is further amended
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HD6E3DED33AD441E2B16CF7D19E22E276" style="OLC">
<paragraph id="H8D03EC1A660B4580AB3C28FAC4E657AD"><enum>(38)</enum><header>Real effective
exchange rate undervaluation</header><text display-inline="yes-display-inline">The calculation of real effective exchange
rate undervaluation, for purposes of paragraph (5)(E)(v) and paragraph (37),
shall—</text>
<subparagraph id="H948E0767C60345D8A3B3EEB91432553B"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="H77697BF4FB2A45CE8C08E367655AE316"><enum>(i)</enum><text>rely upon, and where
appropriate be the simple average of, the results yielded from application of
the approaches described in the guidelines of the International Monetary Fund’s
Consultative Group on Exchange Rate Issues; or</text>
</clause><clause id="H3F3E1910DF464E3EBE6FEF91EC10CB2A" indent="up1"><enum>(ii)</enum><text>if the guidelines of the
International Monetary Fund’s Consultative Group on Exchange Rate Issues are
not available, be based on generally accepted economic and econometric
techniques and methodologies to measure the level of undervaluation;</text>
</clause></subparagraph><subparagraph id="H744B4648AD5749CEBDD1263CE1E075CF"><enum>(B)</enum><text>rely upon data
that are publicly available, reliable, and compiled and maintained by the
International Monetary Fund or, if the International Monetary Fund cannot
provide the data, by other international organizations or by national
governments; and</text>
</subparagraph><subparagraph id="H23D5F40C712E4279AB5174F4F7185183"><enum>(C)</enum><text>use
inflation-adjusted, trade-weighted exchange
rates.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4AAF6E68A6CD4FA5A874DC1D1DAA246F"><enum>(e)</enum><header>Application to
goods from Canada and Mexico</header><text display-inline="yes-display-inline">Pursuant to article 1902 of the North
American Free Trade Agreement and section 408 of the North American Free Trade
Agreement Implementation Act of 1993 (19 U.S.C. 3438), the amendments made by
this section shall apply to goods from Canada and Mexico.</text>
</subsection></section></subtitle><subtitle id="id8E39DAD032C0432184F31CD712F4F9CF"><enum>C</enum><header>Preparing
Americans for the jobs of the future</header>
<section id="id14F6C372E25444318DAFF291D2A5A814" section-type="subsequent-section"><enum>121.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote><short-title>Regional Partnerships for
High-Quality Jobs Act</short-title></quote>.</text>
</section><section id="idDCEBFAFADEEF444380F6E7A9BD8EA0C1"><enum>122.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text>
<paragraph id="id2C20FE3762824B33A48C4EDE82D8B3AE"><enum>(1)</enum><header>Career and
technical education system</header><text>The term <term>career and technical
education system</term> means, with respect to a State, the eligible agency (as
defined in section 3 of the Carl D. Perkins Career and Technical Education Act
of 2006 (20 U.S.C. 2302)) for the State, and the eligible recipients (as so
defined) in the State that receive funds under section 131 or 132 of such Act
(20 U.S.C. 2351, 2352).</text>
</paragraph><paragraph id="ID6f2675ec2deb4660a42a80d2108cd505"><enum>(2)</enum><header>Career
pathway</header>
<subparagraph commented="no" id="id5EB927817301424CA0AE35AE7C91AB16"><enum>(A)</enum><header>In
general</header><text>The term <term>career pathway</term> means a set of
rigorous, engaging, and high-quality education, occupational training, and
other services to prepare individuals to meet a set of career-related
objectives as referenced in subparagraph (C).</text>
</subparagraph><subparagraph id="id98C2BBEE1A3A4022852AB6CB2CD76B1D"><enum>(B)</enum><header>Services</header><text>The
services referred to in subparagraph (A) shall be—</text>
<clause id="IDbc0c68f8929e4bf2a85468fa225e030e"><enum>(i)</enum><text>aligned with the
skill needs of industries in the economy of the service area involved;
and</text>
</clause><clause id="idA9BD0E003A544BE59E8A86E4CCF489CD"><enum>(ii)</enum><text>designed to
increase an individual's educational and skill attainment, and improve the
individual's employment outcomes and ability to meet career-related objectives,
by—</text>
<subclause id="IDcdd1559d116a427a9340ff2428e0b391"><enum>(I)</enum><text>preparing
individuals for the full range of secondary or postsecondary education options,
including apprenticeships registered under the Act of August 16, 1937 (commonly
known as the <term>National Apprenticeship Act</term>; 50 Stat. 664, chapter
663; 29 U.S.C. 50 et seq.) (referred to individually in this subtitle as an
<term>apprenticeship</term>);</text>
</subclause><subclause id="ID3e761b760cda4e8d95f6d756de6ef084"><enum>(II)</enum><text>including
counseling and support services to help individuals achieve their education and
career goals;</text>
</subclause><subclause id="ID9c49333566944f1598127f2e5ce13ff9"><enum>(III)</enum><text>including, as
appropriate for an individual, education offered concurrently with and in the
same context as workforce preparation activities and training for a specific
occupation or occupational cluster; and</text>
</subclause><subclause id="id499ED9D2DD264C0798D11BDAB6BEA320"><enum>(IV)</enum><text>organizing
education, occupational training, and other services to meet the particular
needs of the individual in a manner that accelerates the educational and career
advancement of the individual to the extent practicable.</text>
</subclause></clause></subparagraph><subparagraph id="id526C8B6E6E154E4A9CD55DF225092483"><enum>(C)</enum><header>Objectives</header><text>The
objectives referred to in subparagraph (A) include—</text>
<clause id="idBA7942D9E55D4437ABDDD53003F38553"><enum>(i)</enum><text>enabling a worker
to attain a secondary school diploma or its recognized equivalent, and at least
1 recognized postsecondary credential; and</text>
</clause><clause id="idE4509EB1CBB54574960CE4396CDE019F"><enum>(ii)</enum><text>helping a worker
enter or advance within a specific occupation or occupational cluster.</text>
</clause></subparagraph></paragraph><paragraph id="id61A999682DB24A4EB8D127FDFA51CA1E"><enum>(3)</enum><header>Community
college</header><text>The term <term>community college</term> has the same
meaning as the term <term>junior or community college</term>, as defined in
section 312(f) of the Higher Education Act of 1965 (20 U.S.C. 1058(f)).</text>
</paragraph><paragraph id="id71D9B08E9B61412ABBA3EBB11C511F9B"><enum>(4)</enum><header>Education
terms</header><text>The term <term>adult education</term> has the meaning given
the term in section 203 of the Adult Education and Family Literacy Act (20
U.S.C. 9202). The terms <term>State educational agency</term> and <term>local
educational agency</term> have the meanings given the terms in section 9101 of
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).</text>
</paragraph><paragraph id="id72C67A83830B43479670AB83B367D633"><enum>(5)</enum><header>High-quality
employment</header><text>The term <term>high-quality employment</term> means
employment with, at a minimum, family-sustaining compensation (as determined by
the Secretaries) and opportunities for advancement (as so determined).</text>
</paragraph><paragraph id="idF35D00CACB1346BAA68209911709BB68"><enum>(6)</enum><header>Individual with
a disability; individuals with disabilities</header>
<subparagraph id="idA8FD522927AD4D0CA49FB274900F18E1"><enum>(A)</enum><header>Individual with
a disability</header><text>The term <term>individual with a disability</term>
has the meaning given the term in section 7(20)(A) of the Rehabilitation Act of
1973 (29 U.S.C. 705(20)(A)).</text>
</subparagraph><subparagraph id="idE0563A3BD21044BA91DBB81C84D4CA6F"><enum>(B)</enum><header>Individuals
with disabilities</header><text>The term <term>individuals with
disabilities</term> means more than 1 individual with a disability.</text>
</subparagraph></paragraph><paragraph id="idA1A61BE9684244ED96815E2B13BE4D46"><enum>(7)</enum><header>Industry-recognized
credential</header><text display-inline="yes-display-inline">The term
<term>industry-recognized credential</term> means such a credential within the
meaning of section 3 of the Carl D. Perkins Career and Technical Education Act
of 2006 (20 U.S.C. 2302).</text>
</paragraph><paragraph id="id7586932A26E84678AAC4261AB7DEC884"><enum>(8)</enum><header>Labor
organization</header><text>The term <term>labor organization</term> has the
meaning given the term in section 2 of the National Labor Relations Act (29
U.S.C. 152).</text>
</paragraph><paragraph id="id5A0476961F7D40B4948872A516C8B605"><enum>(9)</enum><header>Occupational
training</header><text>The term <term>occupational training</term> means
training services, as described in section 134(d)(4)(D) of the Workforce
Investment Act of 1998 (29 U.S.C. 2864(d)(4)(D)).</text>
</paragraph><paragraph id="idD633902F7A294273B24FB612D16DCD9F"><enum>(10)</enum><header>Priority
workers</header><text>The term <term>priority workers</term> means individuals
who are—</text>
<subparagraph id="id21C1562AF85841108084A8CFE2DDEA55"><enum>(A)</enum><text>individuals
unemployed for 52 weeks or more;</text>
</subparagraph><subparagraph id="id9BD38D02FC1945989951C9F33C89E839"><enum>(B)</enum><text>youth age 16
through 24 who have been out of school or out of work, as appropriate, for more
than 6 months and do not possess a secondary school diploma or its recognized
equivalent;</text>
</subparagraph><subparagraph id="id37731BD956A248799AE77E703E415EE1"><enum>(C)</enum><text>individuals with
disabilities;</text>
</subparagraph><subparagraph id="id4B58DEAC9ED947D3B275C3663D84130C"><enum>(D)</enum><text>individuals with
low literacy levels; or</text>
</subparagraph><subparagraph id="idFAF4422C54DE429B8576DCBDAB161793"><enum>(E)</enum><text>veterans, as
defined in section 101 of title 38, United States Code.</text>
</subparagraph></paragraph><paragraph id="idF07ED7A62BF841A88F03284B8A82389A"><enum>(11)</enum><header>Recognized
postsecondary credential</header><text>The term <term>recognized postsecondary
credential</term> means a credential consisting of an industry-recognized
credential, a certificate of completion of an apprenticeship registered under
the Act of August 16, 1937 (commonly known as the <term>National Apprenticeship
Act</term>; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.), or an associate
or baccalaureate degree.</text>
</paragraph><paragraph id="id7DC6B7A9793E41799ACC53810C643BF2"><enum>(12)</enum><header>Secretaries</header><text>The
term <term>Secretaries</term> means the Secretary of Education and the
Secretary of Labor, acting in accordance with the agreement described in
section 123(c).</text>
</paragraph><paragraph id="id5C8B0C758807414590E7608A30703939"><enum>(13)</enum><header>Service
area</header><text>The term <term>service area</term>—</text>
<subparagraph id="id9CA8DFE9EF6743CEBE9BCC243C230C78"><enum>(A)</enum><text>used with respect
to a regional partnership, means a labor market area; and</text>
</subparagraph><subparagraph id="idE22ECA3A727C4E3BBF44D21E035221FC"><enum>(B)</enum><text>used with respect
to a State partnership, means 2 or more labor market areas in the State that
are identified by the State partnership.</text>
</subparagraph></paragraph></section><section id="idD1F1DD6230BA4789932747647E0BE6B0"><enum>123.</enum><header>Program</header>
<subsection id="idCA75334AD3084F35AFFF67ECFC9EC9FD"><enum>(a)</enum><header>In
general</header><text>The Secretary of Labor and the Secretary of Education
shall establish a program to educate and train workers for high-quality
employment.</text>
</subsection><subsection id="id58D1B2B29CFC429EBF01E445C3030148"><enum>(b)</enum><header>Grants</header>
<paragraph id="idCAC87CB9FABD4BB38B5C111BC12D4050"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In carrying out the
program, the Secretaries shall award grants, on a competitive basis, to
eligible entities to develop or enhance, and provide, career pathways and adult
learning strategies that integrate education, occupational training, and
supportive services. The career pathways and learning strategies shall prepare
individuals for existing or emerging employment opportunities in a service
area, which shall include such preparation through the attainment of a
recognized postsecondary credential.</text>
</paragraph><paragraph commented="no" id="ida7570bd982724c409bfeea3e8c437575"><enum>(2)</enum><header>Grant
period</header><text>A grant awarded to an eligible entity under this section
shall be awarded for a period of not more than 5 years. The grant may be
renewed for not more than 1 such additional grant period, contingent on
satisfactory performance of the eligible entity relating to the expected
outcomes described in section 125(1).</text>
</paragraph><paragraph id="id2936C1FCF6C04F9BB0F4229E1BB7FE43"><enum>(3)</enum><header>Partnerships</header><text display-inline="yes-display-inline">The eligible entities shall provide the
career pathways and learning strategies through industry-focused,
employer-linked regional or State partnerships described in section 124.</text>
</paragraph></subsection><subsection id="id58B23053D91A45ECBDE1894A2E4580DB"><enum>(c)</enum><header>Agreement</header><text display-inline="yes-display-inline">The Secretary of Labor and the Secretary of
Education shall enter into an interagency agreement that describes how the
Secretaries will jointly administer the program.</text>
</subsection></section><section id="id83CF3B81FB9947228E7E7871E5AA5124"><enum>124.</enum><header>Eligible
entities</header>
<subsection id="id75E01754B047459F8DAF2EB925ED29C2"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">To be eligible to
receive a grant under section 123 for a service area, an entity shall consist
of a partnership described in section 123(b)—</text>
<paragraph id="idABC35617F0A54C0BAA117CAA97725BD6"><enum>(1)</enum><text>that shall
include—</text>
<subparagraph id="idFBF15B5D1DC84A41BCC3DAFDB13E54B2"><enum>(A)</enum><text>employers of
various sizes in the service area, whose job vacancies represent a significant
share of current or future job vacancies, and that pledge to train or employ
participants in the project carried out under the grant; and</text>
</subparagraph><subparagraph id="idC932AE00246C4C91812DDE198C85A701"><enum>(B)</enum><text>community
colleges that will provide education and occupational training, aligned with
current or future job vacancies, through the project; and</text>
</subparagraph></paragraph><paragraph id="id2773c986eca24aa0adbde85813b4f5d5"><enum>(2)</enum><text>that shall
include at least 1 of the following:</text>
<subparagraph id="idb564a131c1b141cf895b67391081a7b5"><enum>(A)</enum><text>A State
agency.</text>
</subparagraph><subparagraph id="idc0b155b3acdf449ca6c722ebfff8c1df"><enum>(B)</enum><text>A chief elected
official, as defined in section 101 of the Workforce Investment Act of 1998 (29
U.S.C. 2801).</text>
</subparagraph><subparagraph id="id86d8aec93bcc49a2beec587a0af98b16"><enum>(C)</enum><text>A nonprofit
organization with a demonstrated record of serving priority workers.</text>
</subparagraph><subparagraph id="id87C2A0A3107A4BEF9B1E205D8C82FA0C"><enum>(D)</enum><text>Local boards or
State boards as such terms are defined in section 101 of the Workforce
Investment Act of 1998 (29 U.S.C. 2801), or designated State units, as defined
in section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 705) or other
vocational rehabilitation offices.</text>
</subparagraph><subparagraph id="id53EF793B5C384B80B735804D3CA4D5B0"><enum>(E)</enum><text>An economic
development agency.</text>
</subparagraph><subparagraph id="idb3775419c521482c809397d399759e39"><enum>(F)</enum><text>A local
educational agency.</text>
</subparagraph><subparagraph id="idCB90AB7623214AD7A0CD06C8085FF6B7"><enum>(G)</enum><text>A labor
organization or labor-management partnership.</text>
</subparagraph><subparagraph id="id021047b9103a429f81f002b86b9ca4fe"><enum>(H)</enum><text>An adult
education provider.</text>
</subparagraph><subparagraph id="id667E8E1F5B1B496FBF98BEB6ACB1E9AB"><enum>(I)</enum><text>An agency, which
may be a public library, that provides occupational training or supportive
services.</text>
</subparagraph></paragraph></subsection><subsection id="id57DBB97FEA9C49368DCD52A7D4A46C24"><enum>(b)</enum><header>State or
regional partnership</header><text>The partnership described in subsection (a)
may be—</text>
<paragraph id="id2FD76624E1CB4FEDB33406476B3F1CF7"><enum>(1)</enum><text>a State
partnership, serving 2 or more labor market areas in the State; or</text>
</paragraph><paragraph id="id06436DE9A90A44BC837A2385C9EA7BC6"><enum>(2)</enum><text>a regional
partnership, serving a labor market area.</text>
</paragraph></subsection></section><section id="id8BDAA28AE96645A1884F375526D269B9"><enum>125.</enum><header>Applications</header><text display-inline="no-display-inline">To be eligible to receive a grant under
section 123, an entity described in section 124 shall submit an application to
the Secretaries at such time, in such manner, and containing such information
as the Secretaries may determine to be appropriate, including, at a minimum, a
plan for the project to be carried out under the grant, with information
describing each of the following:</text>
<paragraph id="id9087efc4046f42ffbe9842db5ce5a27a"><enum>(1)</enum><text>How the
partnership will address the objectives of the project, including identifying a
fiscal agent and expected outcomes for the partnership.</text>
</paragraph><paragraph id="id583EF59EC533404D9BC7CC47152D6A81"><enum>(2)</enum><text>How the
partnership will develop or enhance career pathways that result in the
attainment of a recognized postsecondary credential and high-quality employment
in the service area, including—</text>
<subparagraph id="ide82851ff4bc840378d7faf317fcb3650"><enum>(A)</enum><text>a description of
how the partnership has used labor market information (including projections of
job openings, job growth, wages, and skill and certification requirements
related to the credential) to ensure the education and occupational training
provided through the grant are aligned with employment needs in the service
area;</text>
</subparagraph><subparagraph id="id827d5b64389c4ed1840c395ed980beff"><enum>(B)</enum><text>a description of
how the partnership has incorporated best practices in adult education and
occupational training, such as use of cohort models, compressed course
schedules, integrated adult basic education, and work readiness training and
certificates;</text>
</subparagraph><subparagraph id="id8a9a2738b20640be882562e44479d188"><enum>(C)</enum><text>information on
how the partnership will identify and prepare workers for employment
opportunities;</text>
</subparagraph><subparagraph id="id8c7a648c00a2471094964b395ec50b1b"><enum>(D)</enum><text>an analysis of
how the partnership will engage the entities described in section 124(a)(2), to
leverage resources and optimize outcomes, including by coordinating existing
(as of the date the grant is received) education and occupational training
efforts; and</text>
</subparagraph><subparagraph id="id06c17e0e50924f06a23c3b7aa018a37c"><enum>(E)</enum><text>a description of
how the partnership will conduct data collection, monitoring, reporting, and
information sharing to continuously evaluate and improve outcomes for the
project.</text>
</subparagraph></paragraph><paragraph id="id81f5d5d0a03e426d8308746f1599308f"><enum>(3)</enum><text>The commitment of
members of the partnership, including—</text>
<subparagraph id="ida27d16dad3c4468785ff69bf25584fce"><enum>(A)</enum><text>each partner’s
financial and programmatic commitment to the strategies described in the
application;</text>
</subparagraph><subparagraph id="idd891b09f66304b95ba626e49de8cbb23"><enum>(B)</enum><text>each partner’s
capacity, such as capacity to provide staff and facilities, to leverage State
and local investments, to coordinate activities with related agencies, and to
establish linkages among employment and labor market information data systems,
to support the strategies described in the application;</text>
</subparagraph><subparagraph id="id8d500541ba3147dfaba5f7eb7364c880"><enum>(C)</enum><text>each partner’s
long-term commitment to the partnership that, at a minimum, accounts for the
cost of supporting the project, including providing support after grant funds
are no longer available; and</text>
</subparagraph><subparagraph id="id4d96f02cc42c4d6d998580cd3f28c02f"><enum>(D)</enum><text>each partner’s
commitment to ensure sound fiscal management and controls, including evidence
of a related system of supports and personnel.</text>
</subparagraph></paragraph><paragraph id="id138bd2140bb841669a58615a102982f8"><enum>(4)</enum><text>How the
partnership will make work experiences available to all priority workers,
including—</text>
<subparagraph id="idfc1f0840428f4eacae8fdc9bccd6a9de"><enum>(A)</enum><text>the types of paid
internships, on-the-job training, or other work experiences the partnership
will make available to all priority workers; and</text>
</subparagraph><subparagraph id="idf231536b284640769cd5bfed54eacb95"><enum>(B)</enum><text>how the
partnership will provide any developmental education or supportive services
necessary to ensure priority workers receive and succeed in work
experiences.</text>
</subparagraph></paragraph><paragraph id="id56c20827fc65420facb9d8353ef0ff65"><enum>(5)</enum><text>How the
partnership will engage community-based organizations with experience providing
education, occupational training, and related supportive services to
individuals in the service area, with particular attention to such
organizations that have experience supporting priority workers.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5abd821c35a04879a5ef0415b259746c"><enum>(6)</enum><text>The Federal and
non-Federal sources of funding that the partnership will secure to comply with
the matching funds requirement set forth in section 128.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAA918DB3193F40EE9B0FEA4195321AF0"><enum>(7)</enum><text>In the case of a
State partnership, how the partnership will carry out goals described in
section 127(b)(1)(B).</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="id9210C6A615D54400B10A33E6C7A1094E"><enum>126.</enum><header>Priority and
distribution</header>
<subsection commented="no" display-inline="no-display-inline" id="id58A57FAD939A4AF789BF6F324C7D968C"><enum>(a)</enum><header>Priority</header><text display-inline="yes-display-inline">The Secretaries shall give priority
consideration to a partnership that—</text>
<paragraph id="iddb49ba3e42224f28bb66b12e9760c6b5"><enum>(1)</enum><text>includes in the
partnership involved a labor organization, labor-management partnership, or
community-based organization that represents the interests of workers,
especially priority workers; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id15c2e8f6a187424ea068a49f40350639"><enum>(2)</enum><text>is a partnership
serving at least 1 labor market area with 1 of the highest levels of
unemployment or poverty, as defined by the Secretaries, in the Nation.</text>
</paragraph></subsection><subsection id="id3bdbb377883e4369a922f15fd5c2d4fe"><enum>(b)</enum><header>Geographic
diversity</header><text>In administering the grants awarded under section 123,
the Secretaries shall ensure geographic diversity in the distribution of funds
to regional and State partnerships.</text>
</subsection></section><section id="idA28BD206E9694F82B326DFABE6E8EA1F"><enum>127.</enum><header>Use of
funds</header>
<subsection id="id13AB21ACB5934E0989C1A647F139A0FA"><enum>(a)</enum><header>In
general</header><text>An eligible entity that receives a grant under section
123 shall use the grant funds to implement the plan described in the entity's
application, submitted under section 125.</text>
</subsection><subsection id="idB7CC1D884755414282DF6E004E4DE8CC"><enum>(b)</enum><header>Partnerships</header>
<paragraph id="ide5c0a77eab6c4212948037a1f56c5bfd"><enum>(1)</enum><header>Partnerships,
career pathways, and learning strategies</header>
<subparagraph id="id4ED60D40C2B045B9ACA98E140D58D5D1"><enum>(A)</enum><header>In
general</header><text>A partnership that receives a grant under section 123
shall use the grant funds for investments designed to develop or enhance, and
provide, through an industry-focused, employer-linked partnership, career
pathways and adult learning strategies that connect individuals with existing
or emerging employment opportunities.</text>
</subparagraph><subparagraph id="id139C9E89DED34BF3ACA0157196C00E8F"><enum>(B)</enum><header>Additional
uses</header><text>In addition, a partnership described in section 124(b)(1)
shall use the grant funds to support the activities described in subparagraph
(A) by—</text>
<clause id="idf5472fd66d8f44d095f5fbf32c45f732"><enum>(i)</enum><text>supporting
programs of tuition assistance, using funding resources, and through other
evidence-based strategies, except that such support shall not supplant other
Federal funds for such tuition assistance;</text>
</clause><clause id="id251cae24628648fd857fcb8255647143"><enum>(ii)</enum><text>providing
incentives and technical support to employers who, through participation in
industry-focused, employer-linked partnerships, or through provision of career
pathways or adult learning strategies, retain and promote incumbent workers,
employ new workers, or upgrade jobs for program participants; and</text>
</clause><clause id="id9379D91E1E774EF886008A71983F066A"><enum>(iii)</enum><text>for State
partnerships, enhancing linkages among employment and labor market information
data systems in the State.</text>
</clause></subparagraph></paragraph><paragraph id="id68CE1BB7B23E4280B5A251F64A7F36F0"><enum>(2)</enum><header>Services for
priority workers</header><text>The partnership shall use at least 50 percent of
the grant funds to support the pathways and strategies and provide supportive
services for priority workers.</text>
</paragraph><paragraph id="ida9e8d482389d4b2baa9125a13e7f0b8f"><enum>(3)</enum><header>Conditions of
education and occupational training</header>
<subparagraph id="ide81571aed84943558346c145302a558e"><enum>(A)</enum><header>Training
leading to jobs</header><text>All education and occupational training provided
through the project shall lead to high-quality employment provided by, at a
minimum, the employers represented in the partnership, and also including other
employers of all sizes in the service area.</text>
</subparagraph><subparagraph id="iddec66618a7b84b6ca6158e374c972d62"><enum>(B)</enum><header>Internships</header><text>Paid
internship positions provided through the project shall be primarily
occupational training positions, and the internships may not permit interns to
spend a significant amount of time doing work for which an employee would
otherwise be compensated.</text>
</subparagraph><subparagraph commented="no" id="id5674a8272e564908b4f5074f43bd4a07"><enum>(C)</enum><header>On-the-job
training</header><text>On-the-job training placements—</text>
<clause commented="no" id="id19F6CB82EECE4C37B2AE3015A473BC71"><enum>(i)</enum><text>provided through
the project shall pay wages comparable to the wages provided for similar
positions in the sector involved for the service area; and</text>
</clause><clause commented="no" id="id2145f567962f48f2a647a8e9ded30b53"><enum>(ii)</enum><text>may be
placements in new or vacant positions, but a participant in such a placement
shall not displace any currently employed employee, consistent with section
181(b) of the Workforce Investment Act of 1998 (29 U.S.C. 2931(b)).</text>
</clause></subparagraph></paragraph></subsection></section><section id="id26bde51d6c9a42a0891f2bb5898cb45d"><enum>128.</enum><header>Matching
requirement</header>
<subsection id="id062ff56f875c4b14b190f775e179aae2"><enum>(a)</enum><header>Requirement</header><text>The
Secretaries shall require that each eligible entity receiving a grant under
section 123 contribute, toward the cost of the project for which the grant was
awarded, matching funds in an amount equal to not less than 50 percent of the
amount of the grant. The eligible entity may contribute such matching funds
from non-Federal sources or Federal sources (other than this subtitle), in cash
or in-kind, fairly evaluated (including plant, equipment, or services).</text>
</subsection><subsection id="idb59cc42747c840a3b2cd595ee208722f"><enum>(b)</enum><header>Waiver or
reduction</header><text>The Secretary may waive or reduce the matching
requirement described in subsection (a) for an eligible entity if the eligible
entity demonstrates a need due to significant financial hardship.</text>
</subsection></section><section id="id288F20043C644A50B92B12729C7E4ADC"><enum>129.</enum><header>Funding</header><text display-inline="no-display-inline">There shall be made available from the
Rebuild America Trust Fund under section 9512 of the Internal Revenue Code of
1986, $5,000,000,000 for each of fiscal years 2013 through 2022 to carry out
this subtitle.</text>
</section></subtitle><subtitle id="id87C127BA58BA40D585CAEB3DC018E966"><enum>D</enum><header>Supporting great
teachers</header>
<section id="id21A6BDBC29204E2AAFBFDA5A11CFC5A2"><enum>131.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote><short-title>College and Career Ready
Classrooms Act</short-title></quote>.</text>
</section><section id="idfca6ec261c1c4c218f3b6afcc93de2e6"><enum>132.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text>
<paragraph id="id84b5e65743274208b28348ee5707e969"><enum>(1)</enum><text>According to the
Department of Labor, almost 90 percent of new jobs in occupations with both
high growth and high wages require at least some postsecondary training. The
majority of new jobs that offer a wage sufficient to support a family and
provide opportunity for career advancement require some postsecondary
education. Moreover, research shows that the skill level required to enter
college or a work-training program is the same.</text>
</paragraph><paragraph id="idb5792db9443c459898b0ed5feadee858"><enum>(2)</enum><text>Implementing
college- and career-ready State standards is a complex undertaking, requiring
that teachers utilize a wide array of knowledge and skills.</text>
</paragraph><paragraph id="id3bbdb51017c14475b66e543a1934629b"><enum>(3)</enum><text>Peer learning
among small groups of teachers is one of the most powerful predictors of
improved student academic achievement. Students achieve more in mathematics and
reading when they attend schools characterized by high levels of teacher
collaboration for school improvement.</text>
</paragraph><paragraph id="idaac62d20684847c08e4a474f05288971"><enum>(4)</enum><text>Other nations
that outperform the United States on international assessments invest more
heavily in professional development for teachers and build time for ongoing,
sustained collaboration and professional development into the school day and
year. Teachers in the United States spend about 80 percent of their working
time engaged in classroom instruction compared to teachers in other countries
where 60 percent of their time is spent in classroom instruction.</text>
</paragraph></section><section id="id1e7dd253758545c2bd31aee093cc3269"><enum>133.</enum><header>Purposes</header><text display-inline="no-display-inline">The purposes of this subtitle are to—</text>
<paragraph id="id83013ce1862c4d768621ca256bbe4c93"><enum>(1)</enum><text>support the
successful implementation of college- and career-ready State academic
standards; and</text>
</paragraph><paragraph id="idaea32dfa47df4ed2bd08f77d870a9993"><enum>(2)</enum><text>strengthen the
capacity of States and local educational agencies to provide professional
development that increases the effectiveness of all teachers in the instruction
of college- and career-ready State standards and the development and use of
curriculum and assessments that are aligned with college- and career-ready
State standards.</text>
</paragraph></section><section id="id71927ccbc41244ff8280185e35ad77de"><enum>134.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text>
<paragraph id="idFE41EE40BD804123A98C56C71D813C32"><enum>(1)</enum><header>ESEA
definitions</header><text>Unless otherwise specified, the terms used in this
subtitle have the meanings given the terms in section 9101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801).</text>
</paragraph><paragraph id="id0824c00965f84559aa7f5e942728cacd"><enum>(2)</enum><header>College- and
career-ready professional development leadership team</header><text>The term
<term>college- and career-ready professional development leadership team</term>
means a group of educators, teacher association representatives, leaders, and
specialists convened by an eligible entity pursuant to section
136(b)(1)(C).</text>
</paragraph><paragraph id="id2ff4618f9d504f7daddfbe1d1a5c7cea"><enum>(3)</enum><header>College- and
career-ready staff network</header><text>The term <term>college- and
career-ready staff network</term> means a group of specialists, convened by a
local entity, including school-based teachers and leaders, teacher association
representatives, and specialists in relevant content areas, in teaching English
learners, and in teaching children with disabilities, who are serving as
mentors, coaches, or facilitators and who are responsible for—</text>
<subparagraph id="id588ED7B3A7B34022A990ED3E8C081778"><enum>(A)</enum><text>establishing
professional development goals;</text>
</subparagraph><subparagraph id="idE4A2A58B21CB4005A7FA9D3B830F610D"><enum>(B)</enum><text>aligning the
instructional work for individual schools;</text>
</subparagraph><subparagraph id="idE968F8B2C739425393C5B5D413D8423C"><enum>(C)</enum><text>supporting the
implementation of inquiry-based models of professional development;</text>
</subparagraph><subparagraph id="id6F5D4609E4CC4D1FA735CD7C4160A276"><enum>(D)</enum><text>identifying and
sharing best practices;</text>
</subparagraph><subparagraph id="idE64816F41E9F461B8A66E77625A0A520"><enum>(E)</enum><text>coordinating with
the college- and career-ready professional development leadership team;
and</text>
</subparagraph><subparagraph id="idC0D4F7ED124F4A72971144E28670857F"><enum>(F)</enum><text>building and
sustaining professional development capacity within the local entity.</text>
</subparagraph></paragraph><paragraph id="idb9d76a01476f4197ba16fe9235e0aae6"><enum>(4)</enum><header>Eligible
entity</header><text>The term <term>eligible entity</term> means a State
educational agency or a consortium of State educational agencies that has
adopted standards in mathematics and English language arts that are aligned
with college and career readiness, as demonstrated to the Secretary.</text>
</paragraph><paragraph id="idf15d17a994dd48628726882761321d25"><enum>(5)</enum><header>Local
entity</header><text>The term <term>local entity</term> means a local
educational agency or a consortium of local educational agencies.</text>
</paragraph></section><section id="id76b183c974e74f76815a1a35d1a703ec"><enum>135.</enum><header>Grants
authorized</header>
<subsection id="idb90bf048786b42c58df500a128ca02a1"><enum>(a)</enum><header>In
general</header><text>The Secretary is authorized to award grants on a
competitive basis to eligible entities for the development, implementation, and
monitoring of comprehensive, statewide professional development that—</text>
<paragraph id="id2CC4666BCFE84231B00C5494900C8352"><enum>(1)</enum><text>is aligned with
local professional development efforts; and</text>
</paragraph><paragraph id="id172A14A03540434A958FA48CD27FB191"><enum>(2)</enum><text>increases the
effectiveness of all teachers in the—</text>
<subparagraph id="id262A97F98CE14CE8BAB236C5DB27952A"><enum>(A)</enum><text>instruction of
college- and career-ready State standards; and</text>
</subparagraph><subparagraph id="idAE406CFFCEAC477B86FE230DC17AAD93"><enum>(B)</enum><text>development and
use of curriculum and assessments and other instructional supports that are
aligned with college- and career-ready State standards.</text>
</subparagraph></paragraph></subsection><subsection id="id69ee85bc426f40ee8a97311ee762eb82"><enum>(b)</enum><header>Duration</header><text>Each
grant awarded under subsection (a)—</text>
<paragraph id="id6755E08B7EA64922B2D0440751617FFB"><enum>(1)</enum><text>shall be for a
minimum of a 3-year period and a maximum of a 5-year period; and</text>
</paragraph><paragraph id="id4F8C9F40136745ADAC346C12FF770FAE"><enum>(2)</enum><text>may be renewed
based on performance, as determined by the Secretary.</text>
</paragraph></subsection><subsection id="id5e417610ff474aa796003d2422f4f98a"><enum>(c)</enum><header>Grant
amount</header><text>The Secretary shall ensure that grants are of sufficient
size and scope to enable grantees to carry out grant activities.</text>
</subsection><subsection id="id735ddda24a784f7f904062869e9d7084"><enum>(d)</enum><header>Geographic
distribution</header><text>The Secretary shall ensure that grantees represent
different geographic regions of the United States, including urban and rural
areas.</text>
</subsection><subsection id="idaaafbc8f1d5a4754b371f8a0dc51cdba"><enum>(e)</enum><header>Reservation of
funds</header><text>From the amount made available under section 142 for a
fiscal year, the Secretary shall reserve not more than 5 percent for the
evaluation of activities implemented pursuant to grants awarded under
subsection (a) and the dissemination of information on effective professional
development activities, curriculum, assessments, and other instructional
supports developed with such grant funds.</text>
</subsection></section><section id="id4a73a8b81d034e89bd62a5b4199b5477"><enum>136.</enum><header>Application</header>
<subsection id="id41802dba0bf7468d9d228ea40bf3b23d"><enum>(a)</enum><header>In
general</header><text>An eligible entity that desires to receive a grant under
section 135 shall submit an application to the Secretary at such time, in such
manner, and containing such information as the Secretary may reasonably
require.</text>
</subsection><subsection id="id6f38bdfdb21542719ee4b3d08af05ca1"><enum>(b)</enum><header>Contents</header>
<paragraph id="id6B5AC87640A74C4EB48CA70C6B60E6CF"><enum>(1)</enum><header>In
general</header><text>Each application submitted under subsection (a) shall
include a comprehensive strategy for implementing professional development
aligned to college- and career-ready State standards and related instructional
supports that shall include—</text>
<subparagraph id="id85952115d7c04d37bde04edab49bedf7"><enum>(A)</enum><text>a description of
how the professional development will increase teacher, principal, and other
school leader knowledge and understanding of college- and career-ready State
standards that is differentiated, including by grade level and subject area,
specific to the teacher;</text>
</subparagraph><subparagraph id="id4aaad72dd07d4f288ee177686d91d94e"><enum>(B)</enum><text>a description of
how the professional development will increase teacher expertise beyond basic
content knowledge for subject-area teachers;</text>
</subparagraph><subparagraph id="id86735026ad00417e8c5620a3ae90afca"><enum>(C)</enum><text>the creation of a
college- and career-ready professional development leadership team responsible
for establishing statewide goals, providing model frameworks to local college-
and career-ready staff networks, leaders, or specialists, for meeting statewide
goals, identifying and sharing best practices around the implementation of
college- and career-ready State standards, curriculum alignment, and
assessments, and supporting local comprehensive college- and career-ready
professional development strategy activities;</text>
</subparagraph><subparagraph id="idb843b4ad686748bd817c4b93d49ac7df"><enum>(D)</enum><text>dissemination to
local college- and career-ready staff networks in an easily accessible format
that may include the use of technology, such as a web-based statewide
instructional performance support system, exemplary professional development
activities, opportunities to participate in professional learning networks,
technical assistance, and other professional development resources designed to
support the successful implementation of college- and career-ready State
standards;</text>
</subparagraph><subparagraph id="idb5520b0de9cb426eacefaf5de863999d"><enum>(E)</enum><text>a description of
how the professional development will be developed in collaboration with
nonprofit organizations, which may include institutions of higher education,
with a demonstrated record of expertise, and other education stakeholders;
and</text>
</subparagraph><subparagraph id="idf9573b2ba599424a81994dc2ae3a8eea"><enum>(F)</enum><text>a description of
how the professional development will be based on an analysis of data and
evidence that indicates the needs of leaders, teachers, and students.</text>
</subparagraph></paragraph><paragraph id="idB89B4A3A64DC468DBF71B2C2067D7F72"><enum>(2)</enum><header>Development of
strategy</header><text>The comprehensive strategy described in paragraph (1)
shall be developed in collaboration with the representative organizations for
teachers in the State.</text>
</paragraph></subsection></section><section id="idf9a6da0744b049d586041ac9a5cec1f1"><enum>137.</enum><header>State use of
grant funds</header><text display-inline="no-display-inline">An eligible entity
that receives a grant under section 135 shall carry out the following:</text>
<paragraph id="id3d0db7e4437546af9c6d2742e6d58336"><enum>(1)</enum><header>Professional
development implementation activities</header>
<subparagraph id="id449193dd8b7c446d93b3ba6432093d33"><enum>(A)</enum><header>Impact on
teaching practice and student achievement</header>
<clause id="id116394F7A8A142F9975E47749B327ABA"><enum>(i)</enum><header>In
general</header><text>The eligible entity shall reserve not less than 2 percent
of the grant funds—</text>
<subclause id="idB53CB0A8D9E741769CF3846397C3E8AF"><enum>(I)</enum><text>to conduct an
evaluation by a knowledgeable, skilled, and impartial evaluator of the impact
of the comprehensive college- and career-ready professional development
strategy on teaching practice and student achievement; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id16108DB402B84ECCA3AE6FA32DB98B63"><enum>(II)</enum><text>to inform
continuous improvement of professional development activities and, if
applicable, redirecting professional development resources towards those
activities that are most beneficial to teachers and students.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="idB9920901CF714C9AAAD2F368785E37A4"><enum>(ii)</enum><header>Conduct of
evaluation and informing improvement</header><text>The activities described in
subclauses (I) and (II) of clause (i) shall be conducted by an entity other
than the State educational agency.</text>
</clause></subparagraph><subparagraph id="id93C910A9027D4C169C31D3AD42AA9743"><enum>(B)</enum><header>Strategy
activities</header>
<clause id="idC7C1354CDF134E1EB7F6F4ED6E57EB90"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), the eligible entity
shall reserve not more than 13 percent of the grant funds to carry out the
comprehensive college- and career-ready professional development activities
described under section 136.</text>
</clause><clause id="idE9A02FF4F1C6449E99F1DD3A524F58B3"><enum>(ii)</enum><header>Exception for
small or rural States</header><text>The Secretary may allow a small or rural
State, upon application by such State, to reserve more than 13 percent of the
grant funds to carry out the comprehensive college- and career-ready
professional development activities described under section 136, and activities
described under section 138(c)(4) as the activities apply to the State, if the
State demonstrates to the Secretary that it would be more efficient and
effective for the State to carry out such activities rather than local
entities.</text>
</clause></subparagraph><subparagraph id="id3040e6dbdc6b42bbb3dc1d7fad043f6a"><enum>(C)</enum><header>Implementation
activities</header><text>From the amount reserved under subparagraph (B), the
eligible entity may implement activities described under section 138(c)(4) as
the activities apply to the State educational agency.</text>
</subparagraph></paragraph><paragraph id="id2ff4833a941d45ce8cf3d72c5a5d401f"><enum>(2)</enum><header>Subgrants</header><text>The
eligible entity shall reserve not less than 85 percent of the grant funds to
award subgrants to local entities under section 138.</text>
</paragraph></section><section id="idb74f39488748496baca81b585721b350"><enum>138.</enum><header>Subgrants to
local entities</header>
<subsection id="id45cf7dd3d80d49f08b0a670591a65cd1"><enum>(a)</enum><header>Authorization</header>
<paragraph id="idFF898EA7450D48A3ACF1F2815CA6FFAB"><enum>(1)</enum><header>In
general</header><text>An eligible entity that receives a grant under section
135 shall award subgrants, on a competitive basis, to local entities.</text>
</paragraph><paragraph id="id6f3bcb5d099b48078eca976c1b8096fe"><enum>(2)</enum><header>Application</header><text>A
local entity that desires to receive a subgrant under this section shall submit
an application to the eligible entity at such time, in such manner, and
containing such information as the eligible entity may reasonably
require.</text>
</paragraph><paragraph id="id4eec55bc2cfb4c0b8eb963fb35fed3ef"><enum>(3)</enum><header>Contents of
application</header>
<subparagraph id="ide8e365ecb6b144b8917e574c2d866ebc"><enum>(A)</enum><header>Local
comprehensive college- and career-ready professional development
implementation</header><text>Each application submitted under paragraph (2)
shall include a comprehensive strategy for implementing professional
development aligned to college- and career-ready State standards and related
instructional supports at the local level (referred to in this subtitle as the
<term>local strategy</term>) that will improve teacher practice and increase
student learning. Such local strategy shall include—</text>
<clause id="idbc981101f24b4a43b357a3474a5bc0d9"><enum>(i)</enum><text>a
description of how the local strategy was developed in consultation with the
exclusive representative organization for teachers in the school district or,
where there is no exclusive representative, teachers who shall be selected by
teachers in the school district pursuant to a fair and democratic election
process open to all teachers in the school district, principals, and other
school leaders, and teacher-educators;</text>
</clause><clause id="idd962c481a8e44fffae1ad5ba45be363a"><enum>(ii)</enum><text>the clear
learning goals to be achieved under the local strategy based on student,
teacher, and leader learning needs and how they are aligned with the State
goals established in the comprehensive college- and career-ready professional
development strategy described under section 136;</text>
</clause><clause id="idd1396a3169a940ab89f6caa1953c32e3"><enum>(iii)</enum><text>a
description of the tools that will be developed under the local strategy to
enable teachers to easily access college- and career-ready professional
development materials and related resources, including model lesson plans and
assessments, and other professional development materials relevant to teacher
practice;</text>
</clause><clause id="idf277a4e7ffe848a0b68d3797528f52f8"><enum>(iv)</enum><text>a
description of how the professional development provided with funds under this
section will—</text>
<subclause id="idF4201049BCB644698E8D92014A97BAC1"><enum>(I)</enum><text>be delivered in a
format that is job-embedded, ongoing, sustained, and collaborative;</text>
</subclause><subclause id="id540E3C84BF62450F80D5F6F7214D14A1"><enum>(II)</enum><text>foster
individual and collective responsibility for improving teacher effectiveness
and student academic achievement and provide ongoing opportunities for teachers
to assess the impact of teaching strategies on student learning and reflect on
practice; and</text>
</subclause><subclause id="id0293580230A24DDDB3C35F405B0EB48F"><enum>(III)</enum><text>support the use
of technology to personalize instruction and use technology for professional
development, consistent with subsection (c)(3);</text>
</subclause></clause><clause id="idc6defe910889494697f48ac6a05e8e01"><enum>(v)</enum><text>a
description of how the professional development provided with funds under this
section will strengthen the ability of teachers to analyze student data,
including through the use of a statewide longitudinal data system, if
available, to adjust teaching strategies in a timely and effective manner and
improve practice; and</text>
</clause><clause id="idd1c8374b7cb045b4925e4750a99ab792"><enum>(vi)</enum><text>a
description of how external partners, including content area experts, nonprofit
organizations (including institutions of higher education), and teacher
preparation programs, will be included in the implementation of the local
strategy.</text>
</clause></subparagraph><subparagraph id="id2d3e8580b7c744c98e70b3062aeac74b"><enum>(B)</enum><header>Assurance</header><text>Each
application submitted under paragraph (2) shall include an assurance
that—</text>
<clause id="idE0C99E77722C496FB66D5CDB16F3EFC0"><enum>(i)</enum><text>a
minimum of 50 hours of relevant and high-quality professional development per
school year will be provided to each teacher responsible for implementing, or
assisting in the implementation of, college- and career-ready State standards,
including opportunities for ongoing, job-embedded collaboration and
participation in peer observations; and</text>
</clause><clause id="idE5FB00406646466697FB7BB92E5D613D"><enum>(ii)</enum><text>participating
local educational agencies and schools, in collaboration with the exclusive
representative organization for teachers in the school district or, where there
is no exclusive representative, teachers who shall be selected by teachers in
the school district pursuant to a fair and democratic election process open to
all teachers in the school district, will negotiate or agree to restructure or
extend the length of the school day, week, or year, to accommodate additional
professional development hours in a manner that meets the requirements of this
subtitle over the course of the school-year.</text>
</clause></subparagraph></paragraph></subsection><subsection id="id0ce7244d93894c53bb55a5cd326e264b"><enum>(b)</enum><header>Priority</header><text>In
awarding subgrants under this section, an eligible entity shall give priority
to local entities—</text>
<paragraph id="id66cd0fa7197a41a2b0db2efb346003a3"><enum>(1)</enum><text>that serves not
fewer than 10,000 children as described in section 1124(c)(1)(A) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6333(c)(1)(A));</text>
</paragraph><paragraph id="id9f1a5883c26941cda93479dd7e7628ad"><enum>(2)</enum><text>for which not
less than 20 percent of the children served by the local entity are children as
described in section 1124(c)(1)(A) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6333(c)(1)(A));</text>
</paragraph><paragraph id="id49827bc299954b7bbf46ce6749b2bb93"><enum>(3)</enum><text>that meets the
eligibility requirements for funding under the Small, Rural School Achievement
Program under section 6211(b) of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7345(b)); or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idec7772aefd68419abda136ae5381653a"><enum>(4)</enum><text>that meets the
eligibility requirements for funding under the Rural and Low-Income School
Program under section 6221(b) of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7351(b)).</text>
</paragraph></subsection><subsection id="id1f1f50d211de43e18553ce58ea4f9ff3"><enum>(c)</enum><header>Local use of
funds</header><text>A local entity awarded a subgrant under this section shall
use the subgrant funds to implement, in consultation with teachers or other
representative organizations selected or identified to represent the teachers,
a local strategy, which shall include—</text>
<paragraph id="id32141a274387471095167588146f0d6a"><enum>(1)</enum><text>assisting local
educational agencies in implementing college- and career-ready standards,
specifically in the areas of increasing content area expertise, curriculum
development and alignment, and assessment practices;</text>
</paragraph><paragraph id="id9204d42beed94066adb3e4184212a4e9"><enum>(2)</enum><text>creating and
supporting a college- and career-ready staff network;</text>
</paragraph><paragraph id="id9530b13b181d42058c79a64ed804868c"><enum>(3)</enum><text>providing, to the
extent practicable, a hybrid model for professional learning that combines
technology-based and in-person professional learning experiences and support,
such as the use of a web-based local, regional, or statewide instructional
performance support system that includes exemplary professional development
activities, opportunities to participate in professional learning networks,
training programs, technical assistance, and other professional development
resources designed to support the successful implementation of college- and
career-ready standards;</text>
</paragraph><paragraph id="id95c178b9b2bb42e88c049e79b4b5ca1d"><enum>(4)</enum><text>providing
frequent and sustained opportunities for teachers to develop, implement, and
assess—</text>
<subparagraph id="id2f4bd0404908491c85a648aad2203e7d"><enum>(A)</enum><text>strategies for
aligning the curriculum with college- and career-ready standards, including
lesson planning and instructional strategies that reflect the rigor of the
standards;</text>
</subparagraph><subparagraph id="id736ee26117db42c09e1631fb0cf5755d"><enum>(B)</enum><text>instructional
strategies, such as interdisciplinary or project-based learning approaches,
that enhance students’ ability to think critically, problem-solve, complete
complex tasks, conduct research and inquiry, communicate and demonstrate
skills, and think independently;</text>
</subparagraph><subparagraph id="idad92beade04145bfa8380d0624955dec"><enum>(C)</enum><text>instructional
strategies and assessments that meet the needs of English learners and children
with disabilities; and</text>
</subparagraph><subparagraph id="ideb810a066fb64997aebb54e8a4d30d6c"><enum>(D)</enum><text>formative
students assessments and other student assessments that measure student mastery
of the relevant college- and career-ready State standards;</text>
</subparagraph></paragraph><paragraph id="id88d47694b7bf4ee1a447e53048a933a8"><enum>(5)</enum><text>providing
in-service activities for school principals and other school administrators
that support instructional leadership around the implementation of college- and
career-ready standards;</text>
</paragraph><paragraph id="ida51f6b6c02b54c7fbd42aa33b0a64507"><enum>(6)</enum><text>changing the
structure and length of the school day, week, or year, to allow for additional
time for teacher collaboration, planning, and observation;</text>
</paragraph><paragraph commented="no" id="id27f39491d17244239f0a6340d14dc776"><enum>(7)</enum><text>coordinating or
sharing information with pre-service teacher preparation programs to support
the successful implementation of college- and career-ready State standards;
and</text>
</paragraph><paragraph commented="no" id="id7E132198EBBA47FE85AFEB08474E43AF"><enum>(8)</enum><text>developing tools
to assist teachers in evaluating student work.</text>
</paragraph></subsection><subsection id="idf270f1b4ec35467fa75d5e418c92a1c4"><enum>(d)</enum><header>Evaluation</header>
<paragraph id="idEA00074E33E645608A5835EDE4A2EC54"><enum>(1)</enum><header>In
general</header><text>Each local entity that receives a subgrant under this
section shall reserve not less than 5 percent of the subgrant funds to—</text>
<subparagraph id="id3CBE2106E0E844169D13237343CF3BB9"><enum>(A)</enum><text>conduct an
evaluation of the impact of the local strategy on teaching practice and student
growth and learning; and</text>
</subparagraph><subparagraph id="idD4C734EDC0054FA5BADB69C1D8435949"><enum>(B)</enum><text>inform continuous
improvement of professional development activities.</text>
</subparagraph></paragraph><paragraph id="id5BB6F894E09B478FBB9233C201F1086F"><enum>(2)</enum><header>Conduct of
evaluation and informing improvement</header><text>The activities described in
subparagraphs (A) and (B) of paragraph (1) shall be conducted by an entity
other than the local entity.</text>
</paragraph></subsection></section><section id="idd148439b524b4bc897d8880b96fc64e0"><enum>139.</enum><header>Reporting</header>
<subsection id="ide173e10e94104ff1b5c042d3b4a35ded"><enum>(a)</enum><header>State
reporting</header><text>Each eligible entity that receives a grant under
section 135 shall annually, for each year of the grant, submit to the Secretary
and make available to the public a report that shall include—</text>
<paragraph id="idFBF0C25A0DF94C37821D8632A8B3F232"><enum>(1)</enum><text>information on
the number of local educational agencies, schools, and teachers that received
professional development supported with grant funds under section 135;</text>
</paragraph><paragraph id="id2E3CB34F610D49969246CD7A740F006F"><enum>(2)</enum><text>the professional
development activities funded under this subtitle; and</text>
</paragraph><paragraph id="idAE8C3BA45DAD4F51BE6FD2F3B436DDCD"><enum>(3)</enum><text>a description of
the impact of the comprehensive college- and career-ready professional
development strategy, including results from the evaluation conducted under
section 137(1)(A)(i)(I).</text>
</paragraph></subsection><subsection id="id39e2e418db614572bc6d68ec6652ce57"><enum>(b)</enum><header>Report to
Congress</header><text>The Secretary shall annually submit to Congress and make
available to the public a summary of the eligible entity reports required under
subsection (a).</text>
</subsection><subsection id="id6d7011dfe8e8422c85c4694fb46d4d6e"><enum>(c)</enum><header>Local
reporting</header><text>Each local entity that receives a subgrant under
section 138 shall annually, for each year of the subgrant, submit to the
eligible entity and make available to the public a report that shall
include—</text>
<paragraph id="idFC6C173E9FA84EB4A7381CD59BC0A5DA"><enum>(1)</enum><text>information on
the number of local educational agencies, schools, and teachers that received
professional development supported with subgrant funds under section
138;</text>
</paragraph><paragraph id="id89B04257E9E545DD8E0F5580F5638340"><enum>(2)</enum><text>the professional
development activities funded under section 138; and</text>
</paragraph><paragraph id="idAE2271C15E53410BAF7D4287143756B5"><enum>(3)</enum><text>a description of
the impact of the local strategy, including results from the evaluation
conducted under section 138(d).</text>
</paragraph></subsection></section><section id="idFC0BD83094604F5193174EF2DAAEAB11"><enum>140.</enum><header>Teacher
privacy</header><text display-inline="no-display-inline">No State or local
educational agency shall be required to publicly report information in
compliance with this subtitle in a case in which the results would reveal
personally identifiable information about an individual teacher.</text>
</section><section id="idad7eeea753df4a8891c0e4f779a50bf4"><enum>141.</enum><header>Rule of
construction</header><text display-inline="no-display-inline">Nothing in this
section shall be construed to alter or otherwise affect the rights, remedies,
and procedures afforded school or school district employees under Federal,
State, or local laws (including applicable regulations or court orders) or
under the terms of collective bargaining agreements, memoranda of
understanding, or other agreements between such employees and their
employers.</text>
</section><section commented="no" display-inline="no-display-inline" id="id267c86ad88d4442f81f51c69bbdc557e" section-type="subsequent-section"><enum>142.</enum><header>Funding</header><text display-inline="no-display-inline">There shall be made available from the
Rebuild America Trust Fund under section 9512 of the Internal Revenue Code of
1986, $2,000,000,000 for each of the fiscal years 2013 through 2017, to carry
out this subtitle.</text>
</section></subtitle><subtitle id="idDB607B2F13C14A5AACF57F0633AE0F5C"><enum>E</enum><header>Creating middle
class jobs</header>
<part id="id2C5C89CF481D47098EA5F0466A78E251"><enum>I</enum><header>Teacher
stabilization</header>
<section id="id297574f059634ca58ad29644b2c3d879"><enum>151.</enum><header>Purpose</header><text display-inline="no-display-inline">The purpose of this part is to provide funds
to States to prevent teacher layoffs in public schools and support the creation
of additional jobs in public early childhood education and care programs and
public elementary and secondary education in the 2012–2013, 2013–2014, and
2014–2015 school years.</text>
</section><section id="id76d9a3dfd440463e8579bd27e6efab20"><enum>152.</enum><header>Definitions</header>
<paragraph id="id7fc83209a2a04068862fc6958d1d8f88"><enum>(1)</enum><header>ESEA
definitions</header><text>Except as otherwise provided, the terms <term>local
educational agency</term>, <term>outlying area</term>, <term>Secretary</term>,
and <term>State educational agency</term> have the meanings given those terms
in section 9101 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801).</text>
</paragraph><paragraph id="id81953cbdc9bd489d8a8d720da54bf1c3"><enum>(2)</enum><header>Early childhood
educator</header><text>The term <term>early childhood educator</term> means an
individual who—</text>
<subparagraph id="idf6e89a5ffc8d4b4688be8e0bdd5e11f3"><enum>(A)</enum><text>works directly
with children in a State or local funded early childhood education and care
program in a low-income community; and</text>
</subparagraph><subparagraph id="id0d762dba51b34ea8ac4c1ec42053ebe9"><enum>(B)</enum><text>in the course of
such employment, is involved directly in the care, development, and education
of infants, toddlers, or children ages 5 and under.</text>
</subparagraph></paragraph><paragraph id="idfbe40c754b714c6fa0c5efb6b79b5eb9"><enum>(3)</enum><header>State</header><text>The
term <term>State</term> means each of the 50 States, the District of Columbia,
and the Commonwealth of Puerto Rico.</text>
</paragraph><paragraph id="id268970176CE5491D84AC088B5E280D03"><enum>(4)</enum><header>State funded
early childhood program</header><text>The term <term>State funded early
childhood program</term> means a program that provides educational services to
children from ages birth through kindergarten entry and receives funding from a
State.</text>
</paragraph><paragraph id="ideff147b661a24d19a28f102e90bd9680"><enum>(5)</enum><header>State or local
funded early childhood program</header><text>The term <term>State or local
funded early childhood program</term> means a program that provides educational
services to children from ages birth through kindergarten entry and receives
funding from a State or local government.</text>
</paragraph></section><section id="id2979a5918a394a5795e988178d90d638"><enum>153.</enum><header>Reservations
for the outlying areas and the Secretary of the Interior</header><text display-inline="no-display-inline">From the amount appropriated to carry out
this part under section 159 for each fiscal year, the Secretary—</text>
<paragraph id="id28272b5d81f74628b866dc70f6760bf7"><enum>(1)</enum><text>shall reserve 0.5
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 part and under such terms and conditions as the Secretary may
determine; and</text>
</paragraph><paragraph id="id388340d3d2bf4e578cee717e5d2d55f9"><enum>(2)</enum><text>shall reserve 0.5
percent to provide assistance to the Secretary of the Interior to carry out
activities consistent with this part in schools operated or funded by the
Bureau of Indian Education.</text>
</paragraph></section><section id="idcb2e465380a14d88b5412da48fe50acf"><enum>154.</enum><header>State
allotments</header>
<subsection id="id922d98faafff428bac979652eaefd856"><enum>(a)</enum><header>In
general</header><text>From the amounts appropriated to carry out this part for
a fiscal year that remain after the reservations under section 153, the
Secretary shall allot to each State—</text>
<paragraph id="id8117d166be9e437da99b5bd4dd69544c"><enum>(1)</enum><text>an amount that
bears the same relation to 60 percent of such remaining funds as the State's
population of individuals aged 5 through 17 bears to the total population of
individuals aged 5 through 17 in all States; and</text>
</paragraph><paragraph id="idd1d80c90126144469a33085a200b6f54"><enum>(2)</enum><text>an amount that
bears the same relation to 40 percent on such remaining funds as the State's
population bears to the total population of all States.</text>
</paragraph></subsection><subsection id="idb1d1b9b8699947f98a31f1bec3717cf8"><enum>(b)</enum><header>Awards to
States</header><text>In order for a State to receive an allotment under
subsection (a), the Governor of the State shall submit an approvable
application under section 155(a).</text>
</subsection><subsection id="idf34dc26049b24dedb8c6dbb9b53daec5"><enum>(c)</enum><header>Reallotment</header><text>If
a State does not apply for funding under this part or only uses a portion of
its allotment, the Secretary shall reallot the State’s entire allotment or the
remaining portion of its allotment, as the case may be, to the remaining States
in accordance with subsection (a).</text>
</subsection></section><section id="iddc850de9ce32453a8284520fcc434453"><enum>155.</enum><header>State
application, reservation, and responsibilities</header>
<subsection id="idB6027E8B856F4B90B1FE70E0CB87B09F"><enum>(a)</enum><header>Application</header><text display-inline="yes-display-inline">The Governor of a State desiring to receive
a grant under this part shall submit an application to the Secretary not later
than 30 days after 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>
</subsection><subsection id="idd2e0eae667f94c3994780870928f462b"><enum>(b)</enum><header>State
reservations, allocations, and responsibilities</header>
<paragraph id="id9ea8100f0b754179947a76dc9535d6f5"><enum>(1)</enum><header>Reservation</header><text>Each
State receiving an allotment under this part may reserve, for each fiscal
year—</text>
<subparagraph id="idF612FA69B8FD4D3FA358AFBC76FE65C1"><enum>(A)</enum><text>not more than 2
percent of the grant funds for the administrative costs of carrying out the
State's responsibilities under this part; and</text>
</subparagraph><subparagraph id="id01E627D32E424E488B3BE7193171F4F1"><enum>(B)</enum><text>not more than 10
percent of the grant funds to award subgrants to State funded early childhood
care and education programs to enable the programs to carry out the activities
described in section 156(b).</text>
</subparagraph></paragraph><paragraph id="id281229aad0194e7f893254ee58689ff0"><enum>(2)</enum><header>Allocations to
local educational agencies</header><text>From amounts remaining after reserving
funds under paragraph (1), each State receiving an allotment under this part
for a fiscal year shall use such remaining funds only for awarding subgrants to
local educational agencies in the State for the support of high-quality early
childhood education and care programs and elementary and secondary education by
allocating to each local educational agency—</text>
<subparagraph id="idd2a62b1a353643899af72f7c0dff26db"><enum>(A)</enum><text>an amount that
bears the same relation to 35 percent of such remaining funds as the number of
students enrolled in the schools served by the local educational agency bears
to the number of students enrolled in the schools served by all local
educational agencies in the State; and</text>
</subparagraph><subparagraph id="id92cc05bdb9144d84bc1d5b488eb7272a"><enum>(B)</enum><text>an amount that
bears the same relation to 65 percent of such remaining funds as the number of
individuals age 5 through 17 from families below the poverty line in the
geographic area served by the local educational agency, as determined by the
Secretary on the basis of the most recent satisfactory data, bears to the total
number of those individuals in the geographic area served by all local
educational agencies in the State, as so determined.</text>
</subparagraph></paragraph><paragraph id="id3b00a73ea9684b5ba80419b40abecb02"><enum>(3)</enum><header>Timing</header><text>Each
State receiving an allotment under this part for a fiscal year shall make the
subgrants described in paragraphs (1)(B) and (2) available to the subgrantees
not later than 100 days after receiving the allotment from the
Secretary.</text>
</paragraph><paragraph id="id920bcfc26b2a489499377c258ef1cc07"><enum>(4)</enum><header>Prohibitions</header><text>A
State shall not use funds received under this part to directly or
indirectly—</text>
<subparagraph id="idab0801c832ea40608a68a15bd600c80f"><enum>(A)</enum><text>establish,
restore, or supplement a rainy-day fund;</text>
</subparagraph><subparagraph id="id73d7b618203c4ba2b8f7b86eb7249bf7"><enum>(B)</enum><text>supplant State
funds in a manner that has the effect of establishing, restoring, or
supplementing a rainy-day fund;</text>
</subparagraph><subparagraph id="id3482b83099104d7187fa5a89b4ae784e"><enum>(C)</enum><text>reduce or retire
debt obligations incurred by the State; or</text>
</subparagraph><subparagraph id="id07e8f8c164fc44389e76189c530b5348"><enum>(D)</enum><text>supplant State
funds in a manner that has the effect of reducing or retiring debt obligations
incurred by the State.</text>
</subparagraph></paragraph></subsection></section><section id="id5c15dab2159047a9b286e86290de7c8a"><enum>156.</enum><header>Subgrants</header>
<subsection id="idDC27BD7C9A9E4703A426EE0798D6C1FB"><enum>(a)</enum><header>Local
educational agency responsibilities</header><text display-inline="yes-display-inline">Each local educational agency that receives
a subgrant under this part shall—</text>
<paragraph id="idaec4a744ad9e4a768e4767992cdf9adc"><enum>(1)</enum><text>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 high-quality early childhood
education and care, elementary or secondary education, or related
services;</text>
</paragraph><paragraph id="id4baf8b285c69440ab28b0fbde1496062"><enum>(2)</enum><text>obligate such
funds not later than September 30 of the fiscal year for which the funds are
received; and</text>
</paragraph><paragraph id="id2574a2be036c4f38ad8ccc139f5540af"><enum>(3)</enum><text>not use such
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></subsection><subsection id="ide3c4f15cbd0d4fdfa03bf40efe28f87d"><enum>(b)</enum><header>Early childhood
education and care program responsibilities</header><text display-inline="yes-display-inline">Each State or local funded early childhood
education and care program that receives a subgrant under this part
shall—</text>
<paragraph id="idc3b91e9449904f128fb397ab97e71bc3"><enum>(1)</enum><text>use the subgrant
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 high-quality early childhood education and care services; and</text>
</paragraph><paragraph id="id2758f1fa5c2a472c8892c1a4eeab9f81"><enum>(2)</enum><text>obligate such
funds not later than September 30 of the fiscal year for which the funds are
received.</text>
</paragraph></subsection></section><section id="idabf8ebffa5ee4efc87ec86e99fc9daae"><enum>157.</enum><header>Maintenance of
effort</header>
<subsection id="id4555c02ae37d47958fc0555fbddaf266"><enum>(a)</enum><header>In
general</header><text>The Secretary shall not award an allotment to a State
under this part unless the State provides an assurance to the Secretary that,
for each fiscal year of the grant, the State will maintain State support for
early childhood education and care, elementary, and secondary education
programs and services (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 2
categories for the State fiscal year preceding the year for which the
determination is being made.</text>
</subsection><subsection id="idF9CA48B15FC74CAEB7D41F624BE4579F"><enum>(b)</enum><header>Supplement not
supplant</header><text>A State educational agency or local educational agency
shall use Federal funds received under this part only to supplement the funds
that would, in the absence of such Federal funds, be made available from
non-Federal sources for the education of pupils participating in programs
assisted under this part, and not to supplant such funds.</text>
</subsection><subsection id="ida394ad7c950d43d4bab63950e7b5ec7c"><enum>(c)</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="id4dac3b90ca844887b23db9c1a2c898d3"><enum>(1)</enum><text>exceptional or
uncontrollable circumstances, such as a natural disaster; or</text>
</paragraph><paragraph id="idee66ae8ecd5e490b9e496e041ada2137"><enum>(2)</enum><text>a precipitous
decline in the financial resources of the State.</text>
</paragraph></subsection></section><section id="id7d85b959366b4e91898f08a35b3c0131"><enum>158.</enum><header>Reporting</header><text display-inline="no-display-inline">Each State that receives an allotment under
this part shall submit, on an annual basis, a report to the Secretary that
contains—</text>
<paragraph id="idb19609850c2a4cc5b74f81049ff55e83"><enum>(1)</enum><text>a description of
how funds received under this part were expended or obligated; and</text>
</paragraph><paragraph id="id7d901e0e8c874c8e8c9fea72d29c926d"><enum>(2)</enum><text>an estimate of
the number of jobs supported by the State using funds received under this
part.</text>
</paragraph></section><section commented="no" id="idc43cc0f093a941038ce4321213dcb1c3"><enum>159.</enum><header>Funding</header>
<subsection commented="no" id="idEC9744D027B44A628116599BDD28E54B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">There shall be made
available from the Rebuild America Trust Fund under section 9512 of the
Internal Revenue Code of 1986, the following amounts to carry out this
part:</text>
<paragraph commented="no" id="id6C3D3CC5B5914D52BEBC0F11C9C0F4FE"><enum>(1)</enum><text display-inline="yes-display-inline">For fiscal year 2013,
$30,000,000,000.</text>
</paragraph><paragraph commented="no" id="idCA177300AA8F4ED785574BB79FABFC1D"><enum>(2)</enum><text display-inline="yes-display-inline">For fiscal year 2014,
$20,000,000,000.</text>
</paragraph><paragraph commented="no" id="idC20A52BAA72C4EBF9384278C9D425125"><enum>(3)</enum><text display-inline="yes-display-inline">For fiscal year 2015,
$10,000,000,000.</text>
</paragraph></subsection><subsection commented="no" id="id258c02db16294e62b61797f6fc9f037e"><enum>(b)</enum><header>Availability of
funds</header><text>Funds made available under subsection (a) shall remain
available to the Secretary until September 30, 2015.</text>
</subsection></section></part><part id="H5D0A34395A7B432C8336357805C4FDF2"><enum>II</enum><header>First
responder stabilization</header>
<section id="H9D038E508374445898853B7563902E8D"><enum>161.</enum><header>Purpose</header><text display-inline="no-display-inline">The purpose of this part 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="H50884A451C7E46F0A64C8BE3E11B9794"><enum>162.</enum><header>Career law
enforcement officers grant program</header>
<subsection id="id55A3A4AE6E02497B921B31EC67C0B229"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Attorney General
shall make competitive grants under section 1701 of title I of the Omnibus
Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796dd) for the hiring,
rehiring, or retention of career law enforcement officers under part Q of such
title.</text>
</subsection><subsection id="id4824040B45B14A138DCFB0F1185B3AE5"><enum>(b)</enum><header>Applicability
of grant requirements</header><text display-inline="yes-display-inline">Grants
awarded under subsection (a) shall not be subject to—</text>
<paragraph id="id0C2E07961229462B891DAEFFF0C7116D"><enum>(1)</enum><text display-inline="yes-display-inline">subsection (g) or (i) of section 1701 of
title I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C.
3796dd); or</text>
</paragraph><paragraph id="id4FB12A4DDCE74E118FD35E6EEEBF438B"><enum>(2)</enum><text display-inline="yes-display-inline">section 1704 of such Act (42 U.S.C.
3796dd–3).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id88EEAF9D532541E0BDA5E7D78E7E8D35"><enum>(c)</enum><header>Funding</header>
<paragraph commented="no" display-inline="no-display-inline" id="id92E6EE5EE626473AA8A39760B6D5918F"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">There shall be made
available from the Rebuild America Trust Fund under section 9512 of the
Internal Revenue Code of 1986, the following amounts to the Community Oriented
Policing Stabilization Fund to enable the Attorney General to carry out the
competitive grant program under this section:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id25B9E564847841EAB295960E00529D94"><enum>(A)</enum><text>$4,000,000,000
for fiscal year 2013,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE8F792C268804CDF80B144A9AFAB40D6"><enum>(B)</enum><text>$2,400,000,000
for fiscal year 2014.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0ED9913DA954456AA467FF5740D67385"><enum>(C)</enum><text>$800,000,000 for
fiscal year 2015.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0090801BF76642F1B1F1D96A45D10D4B"><enum>(2)</enum><header>Limitation</header><text display-inline="yes-display-inline">Of the amounts made available pursuant to
paragraph (1), not to exceed $8,000,000 shall be for administrative costs of
the Attorney General.</text>
</paragraph></subsection></section><section id="idFA1229FA46C54B3FB25240BC460DCB42"><enum>163.</enum><header>First
responder grant program</header>
<subsection commented="no" display-inline="no-display-inline" id="id66E74193BFBA4DCEA939E608A91BA69E"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">There shall be made
available from the Rebuild America Trust Fund under section 9512 of the
Internal Revenue Code of 1986, the following amounts to the Secretary of
Homeland Security to award grants under section 34 of the Federal Fire
Prevention and Control Act of 1974 (15 U.S.C. 2229a):</text>
<paragraph commented="no" display-inline="no-display-inline" id="id9DA0419FB754469B9765856013F3FBF0"><enum>(1)</enum><text display-inline="yes-display-inline">$1,000,000,000 for fiscal year 2013.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id490D0634497B44B18EC51F69975CFF71"><enum>(2)</enum><text display-inline="yes-display-inline">$600,000,000 for fiscal year 2014.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCF8A44083F944C2BBE01D7038E459360"><enum>(3)</enum><text>$200,000,000 for
fiscal year 2015.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id96359C535EDA40F0BEBACCFD2FE11B2F"><enum>(b)</enum><header>Limitation</header><text display-inline="yes-display-inline">Of the amounts made available pursuant to
subsection (a), not to exceed $2,000,000 shall be for administrative costs of
the Secretary of Homeland Security.</text>
</subsection><subsection id="id4AFD8825A729426D8BC76353EAD01B2B"><enum>(c)</enum><header>Waivers</header><text>In
making grants with amounts made available under subsection (a), 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 section 34 of the Federal Fire
Prevention and Control Act of 1974.</text>
</subsection></section></part><part id="idE1EE055D3FA246FCB574A677E2E8B9A1"><enum>III</enum><header>Maintaining
critical community services</header>
<section id="id77663e4076f24e04bbd4f028bf913115"><enum>171.</enum><header>Definitions</header><text display-inline="no-display-inline">In this part:</text>
<paragraph id="ide55bec4c60194e9ab22e70a7323d5c5f"><enum>(1)</enum><header>Benefits</header><text>The
term <term>benefits</term> has the meaning given the term <term>employment
benefits</term> in section 101 of the Family and Medical Leave Act of 1993 (29
U.S.C. 2611).</text>
</paragraph><paragraph id="id570e392395db4f9cb2aba639350c875f"><enum>(2)</enum><header>Employee
compensation</header><text>The term <term>employee compensation</term> includes
wages and benefits.</text>
</paragraph><paragraph id="id97b6ba1dc60c4a148df87fbf5f2fb9b9"><enum>(3)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Labor.</text>
</paragraph><paragraph commented="no" id="id3DC3D76FBBA34D0FA3323820EAF6933D"><enum>(4)</enum><header>State</header><text>The
term <term>State</term> means any State of the United States and the
Commonwealth of Puerto Rico.</text>
</paragraph><paragraph id="id17dab63c607d46319331d7ffc83e2908"><enum>(5)</enum><header>Unit of general
local government</header><text>The term <term>unit of general local
government</term> means—</text>
<subparagraph id="id9BC4F031FA6C4CBA9C502C413FFEE8ED"><enum>(A)</enum><text>any city, county,
town, township, parish, village, or other general purpose political subdivision
of a State;</text>
</subparagraph><subparagraph id="idCF29140F90B2463B80E1BD78037E880C"><enum>(B)</enum><text>Guam, the
Northern Mariana Islands, the Virgin Islands, and American Samoa, or a general
purpose political subdivision thereof;</text>
</subparagraph><subparagraph id="idFC3E96933B9B40D7979BEB3F1EAD9AEE"><enum>(C)</enum><text>a combination of
such political subdivisions that is recognized by the Secretary; or</text>
</subparagraph><subparagraph id="id95FA52831433408396AFA2D1C9CE23B9"><enum>(D)</enum><text>the District of
Columbia.</text>
</subparagraph></paragraph><paragraph id="idb094063a80f64e96bfbce047958a15e5"><enum>(6)</enum><header>Wage</header><text>The
term <term>wage</term> has the meaning given such term in section 3 of the Fair
Labor Standards Act of 1938 (29 U.S.C. 203).</text>
</paragraph></section><section id="id40b15bdb4e3444dcb0f7175e186eca33"><enum>172.</enum><header>Maintaining
critical community services</header>
<subsection id="id81E8797BDE3E45F4A3C3466735901F68"><enum>(a)</enum><header>Program
authorized</header><text display-inline="yes-display-inline">From the amount
made available for this part under section 178 and not reserved under
subsection (b), the Secretary of Labor, acting through the Employment and
Training Administration and in consultation with the Secretary of Housing and
Urban Development, shall award grants, on a competitive basis in accordance
with section 174, to units of general local government to save and create local
jobs through the retention, restoration, or expansion of critical services
needed by local communities.</text>
</subsection><subsection id="idcd53d60ca4c24c40862f9d01fa7158c1"><enum>(b)</enum><header>Reservations by
the Secretary</header><text>Of the amount made available for this part under
section 178 for each fiscal year, the Secretary may reserve not more than 1
percent to administer this part.</text>
</subsection></section><section id="id237e0b9ca8e644f98411cd27ec21cafd"><enum>173.</enum><header>Application</header>
<subsection id="idd98ed006e3a14a01aeb32e1cc69ab7f9"><enum>(a)</enum><header>Application</header><text>In
order to receive funds under this part for a fiscal year, a unit of general
local government shall submit to the Secretary, at such time and in such manner
as determined by the Secretary, an application that includes the information
described in subsection (b) for such fiscal year.</text>
</subsection><subsection id="id76b79c850a754536b5bdfa4b3ecfc09b"><enum>(b)</enum><header>Contents</header><text>An
application submitted under subsection (a) shall include the following
information:</text>
<paragraph id="idc7702b80ce694076b608f89e59c184f4"><enum>(1)</enum><text>A certification
by the unit of general local government of—</text>
<subparagraph id="idAFA89C91974441C1B9A4AC389EDDA573"><enum>(A)</enum><text>the amount of
funds requested by the unit of general local government;</text>
</subparagraph><subparagraph id="id6682196603624e84ad75b5d1172836fd"><enum>(B)</enum><text>the number of
individuals who will receive employee compensation with such funds; and</text>
</subparagraph><subparagraph id="idd92611a985c54b5d9502febee0608d60"><enum>(C)</enum><text>whether the
positions supported with funds under this part will assist in retaining,
restoring, or expanding an existing local public service.</text>
</subparagraph></paragraph><paragraph id="id914a90fadbba4994a0bde5dd442a728a"><enum>(2)</enum><text>A statement
documenting the need for the critical services to be carried out by the
individuals hired for the positions.</text>
</paragraph><paragraph id="id88562cc708be436b9dc91a64b902f3b6"><enum>(3)</enum><text>In the case of a
unit of general local government that desires to use funds received under this
part to continue to provide employee compensation for existing employees of the
unit, a statement documenting the fiscal constraints of the unit that would
result in the termination or reduction of the positions of such
employees.</text>
</paragraph><paragraph id="id0659cf7c074f4a15a60a02645f788905"><enum>(4)</enum><text>An assurance by
the unit of general local government that the unit will comply with all
provisions of this part and with all applicable Federal, State, and local labor
laws, including laws concerning wages and hours, labor relations, family and
medical leave, occupational safety and health, and nondiscrimination.</text>
</paragraph><paragraph id="idE4ECB500D2114967A5D0A5FA17F0D83C"><enum>(5)</enum><text>Such additional
information as the Secretary determines necessary, including information
regarding the criteria described in section 174(a).</text>
</paragraph></subsection></section><section id="idA4B85EB66BEE4950B9C58B116D78DE18"><enum>174.</enum><header>Award
basis</header>
<subsection id="id78FB2D25D49945C894E99081C572CE24"><enum>(a)</enum><header>Criteria</header><text>Subject
to subsection (b), the Secretary shall award grants under this part by taking
into consideration—</text>
<paragraph id="idd847cc2c736a4a7f9e08827d6ee71a77"><enum>(1)</enum><text>the unemployment
rate in the local community served by the unit of general local
government;</text>
</paragraph><paragraph id="idedc2be4ed4ca49c1a5995d94ac8d50f0"><enum>(2)</enum><text>the poverty rate
in such local community;</text>
</paragraph><paragraph id="id8c488acbcf114256bb9b3a3b840fe69f"><enum>(3)</enum><text>the population of
such local community;</text>
</paragraph><paragraph id="id92b17a17365c46cfbdd3b3d752fca176"><enum>(4)</enum><text>excess
unemployment in such local community; and</text>
</paragraph><paragraph id="id09e37f2188cc4bd0aeef0710f95399ee"><enum>(5)</enum><text>other factors as
the Secretary determines necessary.</text>
</paragraph></subsection><subsection id="id0CF08EC3A70C45BEA2967657FDD44C0E"><enum>(b)</enum><header>Maximum
amount</header>
<paragraph id="id4DE911889B704186AEE0E4B0CE8CB58C"><enum>(1)</enum><header>In
general</header><text>In no case shall the ratio of the amount of grant funds
awarded under this part to all units of general local government in the State,
as compared to the total amount of grant funds available under this part, be
greater than the ratio of the State's population, as compared to the total
population of all States and all areas described in paragraph (2).</text>
</paragraph><paragraph id="id5370AA7ADF1C45FEA259515E69828809"><enum>(2)</enum><header>Application to
territories and the District of Columbia</header><text>For the areas of Guam,
the Northern Mariana Islands, the Virgin Islands, American Samoa, and the
District of Columbia, in no case shall the ratio of the amount of grant funds
awarded to any such area, as compared to the total amount of grant funds
available under this part, be greater than the ratio of the population of such
area as compared to the total population of all States and all such
areas.</text>
</paragraph></subsection><subsection id="idCD5BE12354224ED399E0F59AE2B069DB"><enum>(c)</enum><header>Timing</header><text>For
each fiscal year, the Secretary shall award the grants under this part by not
later than 30 days after the end of the application period.</text>
</subsection></section><section id="id4e688fcc35944330abf73c9559dcca19"><enum>175.</enum><header>Uses of
funds</header>
<subsection id="id74c3cc7281cd448799e6f36f5f0adc23"><enum>(a)</enum><header>In
general</header><text>A unit of general local government that receives a grant
under this part—</text>
<paragraph id="id57DDB944917541238475D0CDBEFBFEF0"><enum>(1)</enum><text>shall use the
funds to provide employee compensation to retain or hire individuals to
continue, restore, or expand public services; and</text>
</paragraph><paragraph id="id42257E3CA1254668A932B314591D86C5"><enum>(2)</enum><text>may not use more
than 5 percent for administrative purposes under the grant.</text>
</paragraph></subsection><subsection id="id13849b3856724bf8919396bfaed14fbe"><enum>(b)</enum><header>Nondisplacement</header><text>A
unit of general local government may not employ an individual for a position
funded under this part, if—</text>
<paragraph id="idf4c36fe84445458fa2e6b8f0edc8f0da"><enum>(1)</enum><text>employing such
individual will result in the layoff or partial displacement (such as a
reduction in hours, wages, or employee benefits) of an existing employee of the
unit of general local government; or</text>
</paragraph><paragraph id="id6b2a88bb93b44af5b4e2f92c1bfc72dc"><enum>(2)</enum><text>such individual
will perform the same or substantially similar work that had previously been
performed by an employee of the unit who—</text>
<subparagraph id="idf1629ab7d272475cb5bf14fd1790e4ab"><enum>(A)</enum><text>has been laid off
or partially displaced (as such term is described in paragraph (1)); and</text>
</subparagraph><subparagraph id="idf966342fcf4e4bf295dbc2e9b3b1bd09"><enum>(B)</enum><text>has not been
offered, by the unit or organization, to be restored to the position the
employee had immediately prior to being laid off or partially displaced.</text>
</subparagraph></paragraph></subsection></section><section id="idfac03df32372426b9a71af633fbd1321"><enum>176.</enum><header>Employee
status, compliance with local laws, and contracts</header>
<subsection id="id5d865fdb9f06488ea2424ec69d058a2d"><enum>(a)</enum><header>Employee
status</header><text>An individual hired for a position funded under this part
shall be considered an employee of the unit of general local government by
which such individual was hired and receive the same employee compensation,
have the same rights and responsibilities and job classifications, and be
subject to the same job standards, employer policies, and collective bargaining
agreements as if such individual was hired without assistance under this
part.</text>
</subsection><subsection id="idc5240347d56348d6ba2a0517810ae8a5"><enum>(b)</enum><header>Compliance with
local laws and contracts</header><text>In hiring individuals for positions
funded under this part, or using funds under this part to continue to provide
employee compensation for existing employees, a unit of general local
government shall comply with all applicable Federal, State, and local laws,
personnel policies and regulations, and collective bargaining agreements, as if
such individual was hired, or such employee compensation was provided, without
assistance under this part.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="ID5DAB1A04E0964F6BA637E033EC3CE670"><enum>177.</enum><header display-inline="yes-display-inline">Supplement, not supplant</header><text display-inline="no-display-inline">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 carry out activities under this
part.</text>
</section><section id="id8f92b6458e394a9393f984273760e68a"><enum>178.</enum><header>Funding
provided</header><text display-inline="no-display-inline">There shall be made
available from the Rebuild America Trust Fund under section 9512 of the
Internal Revenue Code of 1986, the following amounts to enable the Secretary of
Labor to carry out the purposes of this part:</text>
<paragraph id="idea5a0db8967848e79971c1a0ec9f5843"><enum>(1)</enum><text>$5,000,000,000
for fiscal year 2013.</text>
</paragraph><paragraph id="id8577fe97b3f04554bd851ee71514087f"><enum>(2)</enum><text>$5,000,000,000
for fiscal year 2014.</text>
</paragraph></section></part></subtitle><enum>II</enum><header>Creating
Financial Stability and a Better Future for Middle Class Families</header>
<subtitle id="idFD0DEC02723B4D0BB52A4DEEBE8D8D9B"><enum>A</enum><header>Alleviating the
High Cost of Child Care</header>
<section id="idE04E82507DAE4222803634310DF13075" section-type="subsequent-section"><enum>201.</enum><header>CCDBG Plus</header>
<subsection id="id09219CF60DF545779134123C11E83572"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="id6AD214753DA04027A2F97BE12C0D2AC1"><enum>(1)</enum><header>Eligible
child</header><text>The term <term>eligible child</term> means a child who has
not attained the age of 13 and whose family income is equal to or less than the
State median income for a family of the same size.</text>
</paragraph><paragraph id="id2C9F30B103FA48B589D7EAAEB8DB95D4"><enum>(2)</enum><header>Low-income</header><text>The
term <term>low-income</term>, when used in reference to an individual, means an
individual with a family income that is less than or equal to 200 percent of
the poverty line, as defined in section 673 of the Community Services Block
Grant Act (42 U.S.C. 9902), applicable to a family of the size involved.</text>
</paragraph><paragraph id="idC63C24FA50714235998116458294FC5C"><enum>(3)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Health and Human
Services.</text>
</paragraph><paragraph commented="no" id="idD5B3A2FC4D5D4C45B41A6EECF1532414"><enum>(4)</enum><header>State</header><text>The
term <term>State</term> means each of the 50 States, the District of Columbia,
and the Commonwealth of Puerto Rico.</text>
</paragraph></subsection><subsection id="id280602fd2c2e4120bf7ff7e47fb0c554"><enum>(b)</enum><header>Program
authorized</header>
<paragraph id="idF545E42E710D408A90937C922F96314D"><enum>(1)</enum><header>In
general</header><text>The Secretary of Health and Human Services is authorized
to award grants, in allotments described in subsection (c)(2), to States to
enable the States to increase the availability of high-quality early childhood
care and education programs to enable more people of the United States to enter
into and advance within the middle class.</text>
</paragraph><paragraph id="id2D86F308BF3E41B89A0B7A667C20990C"><enum>(2)</enum><header>Duration of
grant</header><text>A grant awarded under this section shall be for a period of
not more than 5 years.</text>
</paragraph><paragraph id="id7C346A49A5B843C1BB80BA76631AC75C"><enum>(3)</enum><header>Contingent
funding</header><text>After the third year of the grant period of a grant under
this section, funding for each additional year of the grant period shall be
contingent on the State's progress toward meeting the performance indicators
and benchmarks established under subsection (g).</text>
</paragraph><paragraph id="idf91eb341f5da4f8fb78031f8d07933f4"><enum>(4)</enum><header>Eligibility</header><text>In
order to receive an allotment under this section, a State shall establish or
certify, to the satisfaction of the Secretary, that the State's payments for
the grant or contracts to provide early childhood care and education programs
under subsection (f)(1) are sufficient to ensure that programs and providers
that serve eligible children from birth through age 5 can meet the standards
established under subsection (f)(2).</text>
</paragraph></subsection><subsection id="id380F2FA47F8E42F59DDD7E96A2A2CC18"><enum>(c)</enum><header>Amounts
reserved; allotments</header>
<paragraph commented="no" id="id1ECB0E3864BA4AFDB439ADC037FCBFB5"><enum>(1)</enum><header>Reservations</header><text>From
the amounts appropriated to carry out this section, the Secretary shall
reserve—</text>
<subparagraph commented="no" id="idFC8B78E0EE534371B825CCD66BC00040"><enum>(A)</enum><text>2 percent of such
amounts to make grants or enter into contracts with Indian tribes or tribal
organizations (as such terms are defined in section 658P of the Child Care
Development Block Grant Act of 1990 (42 U.S.C. 9858n)) for programs or
activities consistent with the purposes of this section; and</text>
</subparagraph><subparagraph commented="no" id="id322034F0878A4450B1EB1F56522B3060"><enum>(B)</enum><text>0.5 percent of
such amounts to award grants to Guam, American Samoa, the Virgin Islands of the
United States, and the Commonwealth of the Northern Mariana Islands for
programs or activities consistent with the purposes of this section, to be
allotted in accordance with their respective needs.</text>
</subparagraph></paragraph><paragraph commented="no" id="id39623D2695C94BD4BE7E9C9CC2EBECA8"><enum>(2)</enum><header>Allotments</header><text>From
the amounts appropriated to carry out this section and not reserved under
paragraph (1), the Secretary shall make allotments to each eligible State with
an approved application using the formula established under section 658O(b) of
the Child Care Development Block Grant Act of 1990 (42 U.S.C. 9858m(b)), except
that any calculation in such formula that refers all States shall, for purposes
of this section, be calculated based on all eligible States that have submitted
an approved application.</text>
</paragraph></subsection><subsection id="idde354d3765c9425a9578382f361e7869"><enum>(d)</enum><header>Application</header>
<paragraph id="id23542C04E0F14F9C8E5C1962943C357D"><enum>(1)</enum><header>In
general</header><text>A State desiring a grant under this section shall submit
an application at such time, in such manner, and containing such information as
the Secretary may require, including the following:</text>
<subparagraph id="id6211E5416539400E818AAFC1A89CDBC0"><enum>(A)</enum><text>A description of
how, by not later than 3 years after the date of receipt of the grant, the
State will ensure the health and safety of early childhood care and education
programs by inspecting and monitoring all regulated child care providers in the
State not less than 2 times each year, in accordance with subsection
(e)(2).</text>
</subparagraph><subparagraph id="id9b81caf85d014a858969cc92be5993df"><enum>(B)</enum><text>A description of
the process the State proposes to use to ensure that investments made to
increase access to programs providing high-quality early childhood care and
education programs are prioritized first in local economic areas with
significant concentrations of poverty and unemployment that do not have such
programs.</text>
</subparagraph><subparagraph id="id3696B5871B694E18A2242CFF2BB7E9A2"><enum>(C)</enum><text>A description of
the strategies the State will employ to build on the capacity of State early
childhood care and education programs, and communities, to promote parents’ and
families’ understanding of the State’s early childhood care and education
system and the importance of high-quality early learning opportunities.</text>
</subparagraph><subparagraph id="idcde1faf6e33b4fc59691e6d03d8deee4"><enum>(D)</enum><text>A description of
the proposed timeframe to develop and implement the elements of the grant
program described in the application.</text>
</subparagraph><subparagraph id="id554355aff69c40cbba7346e563890830"><enum>(E)</enum><text>An assurance that
the grant funds will only be used to supplement, and not to supplant, Federal,
State, and local funds otherwise available to support existing (as of the date
of the application) early childhood care and education programs described in
subsection (e)(3).</text>
</subparagraph><subparagraph id="id958a22c4e7884fb79188865c3f5e621a"><enum>(F)</enum><text>A certification
that the State will provide assistance for the provision of early childhood
care and education programs under subsection (f), and provides assistance for
child care services under the Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858 et seq.), for families by using a sliding fee scale that
provides for cost sharing by the families, in order to prioritize increasing
the number and percentage of low-income and otherwise disadvantaged children
and families in high-quality early childhood care and education programs
described in subsection (e)(3).</text>
</subparagraph><subparagraph id="idDDEC15946C2B4C1C960BDD31BB0593DC"><enum>(G)</enum><text>An assurance that
the State will periodically revise the sliding fee scale used to provide
assistance under this section.</text>
</subparagraph><subparagraph commented="no" id="idE726803A1379461CAAFDBB57133A73E2"><enum>(H)</enum><text>A description of
how the State will coordinate the program supported under this section with the
program supported under the Child Care and Development Block Grant Act of 1990
(42 U.S.C. 9858 et seq.), Head Start and Early Head Start programs under the
Head Start Act (42 U.S.C. 9832), the 21st century community learning center
program under part B of title IV of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7171 et seq.), part C and section 619 of the Individuals
with Disabilities Education Act (20 U.S.C. 1431 et seq.), and, as applicable,
activities funded under the Race to The Top-Early Learning Challenge program
under section 14006 of the American Recovery and Reinvestment Act of 2009
(Public Law 111–5; 123 Stat. 283).</text>
</subparagraph></paragraph><paragraph id="id340929fbabb24041ae9f12b9e3358f79"><enum>(2)</enum><header>Consultation</header><text>A
State shall develop its application under this subsection in consultation with
the State Advisory Council on Early Education and Care established pursuant to
section 642B(b)(1)(A) of the Head Start Act (42 U.S.C. 9837b(b)(1)(A)).</text>
</paragraph></subsection><subsection id="id6e09761719814b9cb2a39d084037883f"><enum>(e)</enum><header>Use of
funds</header><text>A State that receives a grant under this section shall use
grant funds to carry out the following:</text>
<paragraph id="id5BA1A43A91BC4C3AA3F34E9FE115AFE1"><enum>(1)</enum><header>Reservation for
enhancing child care quality</header><text>The State shall reserve 10 percent
of the grant funds to support—</text>
<subparagraph id="id1AFC4ED4C5EA4853BD4CE718F9EE1478"><enum>(A)</enum><text>activities that
enhance the skills, knowledge, credentials, and compensation of the child care
workforce, including in ways that support career advancement through career
ladders; and</text>
</subparagraph><subparagraph id="idE19E6F782DF04C6EB1F9473F9EE0796E"><enum>(B)</enum><text>other activities
to enhance child care quality and support child care providers, including
family child care providers, in meeting the standards described in subsection
(f)(2).</text>
</subparagraph></paragraph><paragraph id="idC4765CD969134D93837BB9565B0C2955"><enum>(2)</enum><header>Use for
inspection and monitoring</header><text>From the amount of grant funds
remaining after the reservation under paragraph (1), the State shall use not
less than 10 percent of funds to ensure that the State inspects and monitors
all State-regulated child care providers, to include site visits not less
frequently than 2 times each year. At a minimum, 1 such visit shall address
health and safety and 1 visit shall address child care quality, and at least 1
of the visits shall be unannounced.</text>
</paragraph><paragraph id="id44A3A4E86EB8401580E3684127730DF8"><enum>(3)</enum><header>Use for
subsidies for early childhood care and education programs</header><text>From
the amount of grant funds remaining after carrying out paragraphs (1) and (2),
the State shall make high-quality early childhood care and education programs
more affordable to families of eligible children by—</text>
<subparagraph id="idAA1BC0B4B5DE4E708BB08569E965ED2C"><enum>(A)</enum><text>using two-thirds
of such remaining amounts to provide assistance for the provision of
high-quality early childhood care and education programs under subsection (f)
for eligible children who are infants and toddlers; and</text>
</subparagraph><subparagraph id="idE65AB1EC691A4E9FAC1957316B5266AF"><enum>(B)</enum><text>using the
remaining funds to provide assistance for eligible children who have not
attained the age of 13 for the provision of high-quality early childhood care
and education programs (which, for purposes of serving school-age children
under this subparagraph, shall be deemed to include high-quality after-school
programs) under subsection (f).</text>
</subparagraph></paragraph></subsection><subsection id="idFE99451FD57B4555BF7ED46AD3E0B119"><enum>(f)</enum><header>More affordable
quality child care</header>
<paragraph id="id7B0CEBC5D93247989B3FA93CD6F44C09"><enum>(1)</enum><header>In
general</header><text>To provide the assistance described in subsection (e)(3),
a State shall award grants or contracts to eligible providers that allow
parents of eligible children who are provided assistance under this section to
enroll such children with the eligible providers in high-quality early
childhood care and education programs described in such subsection.</text>
</paragraph><paragraph id="id3BCE6768496847BF86BE36EBF76FEB49"><enum>(2)</enum><header>Eligible
providers</header>
<subparagraph id="idA9DD025559934941AB7B19AABBFE8200"><enum>(A)</enum><header>In
general</header><text>In order for a provider that serves eligible children
from birth through age 5 to be an eligible provider for purposes of this
section, the provider shall be a child care center, Head Start or Early Head
Start program, or family child care home or system that—</text>
<clause id="id1E45145F8EA943AEBB15A8DDD177675F"><enum>(i)</enum><text>offers full-day,
full-year care or before- or after-school care; and</text>
</clause><clause id="id981FB6BA610E42D48AB5073845CCC68F"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id817A943DC8C745EF8B74BD87D34B687A"><enum>(I)</enum><text>meets Head Start
program performance standards, or standards established for the top tier of a
State’s quality rating and improvement system, as appropriate; or</text>
</subclause><subclause id="idAFD9CE37081E49B4B4094217497CBE9C" indent="up1"><enum>(II)</enum><text>is accredited by a national early
childhood body with demonstrated valid and reliable program standards of high
quality.</text>
</subclause></clause></subparagraph><subparagraph id="idD6EE3E0DF2054F70B0CBDEB1118FE151"><enum>(B)</enum><header>Special
rule</header><text>The Secretary may adjust the requirements of subparagraph
(A), to the extent the Secretary determines necessary to carry out the purposes
of this section, for high-quality early childhood care and education programs
providing care to eligible children during nontraditional hours.</text>
</subparagraph></paragraph><paragraph id="id972c4978b3884cbd9d5a2d7103c88d35"><enum>(3)</enum><header>Support for
children with disabilities</header><text>Not less than 15 percent of the funds
described in each of subparagraphs (A) and (B) of subsection (e)(3) shall be
used to support high-quality early childhood care and education programs
through eligible providers for eligible children who are children with
disabilities, as defined in section 602 of the Individuals with Disabilities
Education Act (20 U.S.C. 1401), or infants or toddlers with disabilities, as
defined in section 632 of such Act (20 U.S.C. 1432).</text>
</paragraph><paragraph id="id61935D3B7B6546608824411B53E5E30E"><enum>(4)</enum><header>Support for
quality care during nontraditional hours</header><text>Not less than 10 percent
of the funds described in each of subparagraphs (A) and (B) of subsection
(e)(3) shall be used to support the provision of high-quality early childhood
care and education programs described in such subsection to eligible children
during nontraditional hours.</text>
</paragraph></subsection><subsection id="idc13694a31b3947f3921ece95b46136e2"><enum>(g)</enum><header>Accountability</header>
<paragraph id="id021647c217d14620b0f5335d7d74f9d2"><enum>(1)</enum><header>In
general</header><text>The Secretary shall define, by regulation, indicators to
be used to measure success on the activities carried out under a grant under
this section, the primary indicator of which shall be increasing the number and
percentage of low-income children in high-quality, State early childhood care
and education programs, as described in subsection (e)(3).</text>
</paragraph><paragraph id="idda71b7f990964549bceb47188226ea1c"><enum>(2)</enum><header>Quantifiable
benchmarks</header><text>Each State receiving a grant under this section
shall—</text>
<subparagraph id="id2F4570E91C074FC7876D58949ECEDBB0"><enum>(A)</enum><text>develop
quantifiable benchmarks for the State and the activities supported under the
grant based on indicators described in paragraph (1) that are applicable to the
State; and</text>
</subparagraph><subparagraph id="id39E52F07009E48E1B97814A05EF4D383"><enum>(B)</enum><text>submit such
benchmarks for approval to the Secretary.</text>
</subparagraph></paragraph><paragraph id="id8c758b002b7642c590fbbe628441b87c"><enum>(3)</enum><header>Disaggregation</header><text>The
indicators and benchmarks shall include, at a minimum, indicators and
benchmarks for all eligible children served by the program and for the
categories of children described in paragraphs (2), (3), and (4) of subsection
(i).</text>
</paragraph></subsection><subsection id="id074157b6b7fb489ca314da2383abfb7f"><enum>(h)</enum><header>Maintenance of
effort</header><text>With respect to each period for which a State is awarded a
grant under this section, the expenditures by the State on State early
childhood care and education programs described in subsection (e)(3), and
supports, shall not be less than the greater of the level of the expenditures
for such programs and supports in the prior fiscal year or in the full fiscal
year preceding the date of enactment of the Rebuilding America Act.</text>
</subsection><subsection id="id41f6d8c4e7f14a778f3deb2f56804982"><enum>(i)</enum><header>Reports</header><text>Each
State that receives a grant under this section shall submit to the Secretary an
annual report, which the Secretary shall make publicly available, that includes
information on the activities carried out by the State under this section for
the year, including—</text>
<paragraph id="id9270A9D331B047C5BD61720308077548"><enum>(1)</enum><text>the number of
eligible children, and families, that were assisted under this section;</text>
</paragraph><paragraph id="idB686148355CB4C3A93788EB3E834DFB3"><enum>(2)</enum><text>the number and
percentage of low-income children assisted;</text>
</paragraph><paragraph id="idA1CB6AC706094ECB872CADBFBE4205D0"><enum>(3)</enum><text>the number and
percentage of English learners assisted;</text>
</paragraph><paragraph id="idC81F2EEF3AE24EB5BE9695763E8EC854"><enum>(4)</enum><text>the number and
percentage of children with disabilities assisted; and</text>
</paragraph><paragraph id="id0326D344FA8F4E58905FE1BC357C8C3A"><enum>(5)</enum><text>the number of
early childhood care and education programs, as described in subsection (e)(3)
and disaggregated by type, that received assistance under this section.</text>
</paragraph></subsection><subsection id="idCC180368755D46B5892DC20B93DCC3D1"><enum>(j)</enum><header>Funding</header><text>There
shall be made available from the Rebuild America Trust Fund under section 9512
of the Internal Revenue Code of 1986, $5,000,000,000 for each of fiscal years
2013 through 2022 to carry out this section.</text>
</subsection><subsection id="id0201287b35be4193a961de8dded9784d"><enum>(k)</enum><header>Sunset
provision</header><text>The authority under this section shall expire on the
date that is 10 years after the date of enactment of this Act.</text>
</subsection></section></subtitle><subtitle id="id9DA17F88ADBE40BAB60A2569FA615CA9"><enum>B</enum><header>Helping Americans
enjoy their golden years</header>
<part id="id56E2ADC08D204F549EC5CFD48127A119"><enum>I</enum><header>Commission on
Retirement Security</header>
<section id="idFBB0BEBFAA2C45D385BC9EC4499032F9"><enum>211.</enum><header>Short
title</header><text display-inline="no-display-inline">This part may be cited
as the <quote><short-title>Retirement Security Act of
2012</short-title></quote>.</text>
</section><section id="id240932A4796047AB8811BD15167A64A0"><enum>212.</enum><header>Findings</header><text display-inline="no-display-inline">Congress makes the following
findings:</text>
<paragraph id="IDd78c3451e6224903bd04be54d519afe4"><enum>(1)</enum><text>The United States
is facing a retirement crisis. The difference between what people need for
retirement and what they actually have is approximately
$6,600,000,000,000.</text>
</paragraph><paragraph id="ID30d99d4d5f9249cda10aa1eaf01088d8"><enum>(2)</enum><text>Social Security
is the bedrock of retirement security, but Social Security must be supplemented
by a strong and vibrant private retirement system.</text>
</paragraph><paragraph id="ID17109c49181447ddb6b9f07141a397e8"><enum>(3)</enum><text>The private
retirement system is not doing enough to help families prepare for retirement.
Only <fraction>1/2</fraction> of the workforce has access to an employer
provided retirement plan, and the number of workers covered by defined benefit
pension plans has fallen from 50 percent to 20 percent in just 30 years.
Consequently, retirement is getting less and less secure for middle class
families.</text>
</paragraph><paragraph id="ID192d80e98f8e46ccb44ffe601d3717a4"><enum>(4)</enum><text>In order to
address the retirement crisis, the United States needs a retirement system that
embodies the following principles:</text>
<subparagraph id="ID915c678c55804da0b9e1f09cd2ea4871"><enum>(A)</enum><text>The private
retirement system must be universal and automatic.</text>
</subparagraph><subparagraph id="IDcb5d2656ce244b809837a236eb48957d"><enum>(B)</enum><text>The private
retirement system must provide people with income certainty.</text>
</subparagraph><subparagraph id="ID57f9af0165c84da6a5a7004728a932ec"><enum>(C)</enum><text>The private
retirement system must be one of shared responsibility.</text>
</subparagraph><subparagraph id="ID75fb9ed81fda4e28a97e08f6c8d33b08"><enum>(D)</enum><text>The private
retirement system must be pooled and professionally managed.</text>
</subparagraph></paragraph></section><section id="idBC6D2421E8D9492FA765DBCEFABC8DEE"><enum>213.</enum><header>Commission on
Retirement Security</header>
<subsection id="IDFF26917619E146A894A6DDD0521C8CC3"><enum>(a)</enum><header>Establishment</header><text>There
is established a commission to be known as the <term>Commission on Retirement
Security</term> (referred to in this part as the
<term>Commission</term>).</text>
</subsection><subsection id="idC50C1A6F4C16457FA94196AF34C991FC"><enum>(b)</enum><header>Membership</header>
<paragraph id="id7C8B98215C3748D6BAE64E80D155CE24"><enum>(1)</enum><header>In
general</header><text>The Commission shall be composed of 31 members. Such
members shall be appointed in accordance with the following:</text>
<subparagraph id="ID9ea2475ef6264873b66d34d5b23c23d6"><enum>(A)</enum><text>Two members
appointed by the Chairman of the Committee on Health, Education, Labor, and
Pensions of the Senate.</text>
</subparagraph><subparagraph id="IDd0e533ba07f54ba49de0b85db410f462"><enum>(B)</enum><text>Two members
appointed by the Ranking Member of the Committee on Health, Education, Labor,
and Pensions of the Senate.</text>
</subparagraph><subparagraph id="ID60b615fcec42402db7e8e86f217c4324"><enum>(C)</enum><text>Two members
appointed by the Chairman of the Committee on Finance of the Senate.</text>
</subparagraph><subparagraph id="ID1672f302b3b94b2284647e4d2d9a6e80"><enum>(D)</enum><text>Two members
appointed by the Ranking Member of the Committee on Finance of the
Senate.</text>
</subparagraph><subparagraph id="ID42c7bf3e52be411da9b39c7fff42d7aa"><enum>(E)</enum><text>Two members
appointed by the Chairman of the Committee on Education and the Workforce of
the House of Representatives.</text>
</subparagraph><subparagraph id="ID1aaf6e1a62bd47a79b7e7b78bbbb7b4e"><enum>(F)</enum><text>Two members
appointed by the Ranking Member of the Committee on Education and the Workforce
of the House of Representatives.</text>
</subparagraph><subparagraph id="IDe56b46628954477d8f8e025ad787c7ec"><enum>(G)</enum><text>Two members
appointed by the Chairman of the Committee on Ways and Means of the House of
Representatives.</text>
</subparagraph><subparagraph id="ID926f34e2a0e24d6aa9a7a9ef4e4bd192"><enum>(H)</enum><text>Two members
appointed by the Ranking Member of the Committee on Ways and Means of the House
of Representatives.</text>
</subparagraph><subparagraph id="IDb1106b24f775416498cef2c7629a58e0"><enum>(I)</enum><text>Fifteen members
appointed by the President from among officers or employees of the Executive
Branch, private citizens of the United States, or both. Not more than 8 such
members appointed by the President may be from 1 political party.</text>
</subparagraph></paragraph><paragraph commented="no" id="IDB5942B77FDCE4CDB9FEC39AC096739C9"><enum>(2)</enum><header>Date of
Appointments</header><text>The appointment of a member of the Commission shall
be made not later than 30 days after the date of enactment of this Act.</text>
</paragraph></subsection><subsection id="ID3273B8FC42DA4116888CF5C5B78C3EE2"><enum>(c)</enum><header>Term;
vacancies</header>
<paragraph id="IDB24D11E1E20D4B2395171A2E56662091"><enum>(1)</enum><header>Term</header><text>A
member shall be appointed for the life of the Commission.</text>
</paragraph><paragraph id="IDF9EBBD586A6D43A2814C9D7D8FAF76A8"><enum>(2)</enum><header>Vacancies</header><text>A
vacancy on the Commission—</text>
<subparagraph id="IDA9631872155B4CE58B499962B1D0217B"><enum>(A)</enum><text>shall not affect
the powers of the Commission; and</text>
</subparagraph><subparagraph id="ID22AE9E5E9568490B908023D1C2BCBD2E"><enum>(B)</enum><text>shall be filled
in the same manner as the original appointment was made.</text>
</subparagraph></paragraph></subsection><subsection id="IDED55AC0EF5C749C293B8CB5FAD68FE4C"><enum>(d)</enum><header>Initial
meeting</header><text>Not later than 15 days after the date on which all
members of the Commission have been appointed, the Commission shall hold the
initial meeting of the Commission.</text>
</subsection><subsection id="IDD209FD1ED0F9443ABD8B94A9D757B60B"><enum>(e)</enum><header>Meetings</header><text>The
Commission shall meet at the call of the co-chairpersons. Meetings shall be
open to the public unless designated otherwise by the co-chairpersons.</text>
</subsection><subsection id="IDFA8C485DEF7E44919228ECD7C7403119"><enum>(f)</enum><header>Quorum</header><text>A
majority of the members of the Commission shall constitute a quorum, but a
lesser number of members may hold hearings.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID1E82C49D916F4B068A2D96CD14B3CCEF"><enum>(g)</enum><header>Co-Chairpersons</header><text>The
Chairman of the Committee on Health, Education, Labor, and Pensions of the
Senate and the Chairman of the Committee on Education and the Workforce of the
House of Representatives shall each select 1 member to be co-chairperson of the
Commission.</text>
</subsection></section><section id="IDB7C043BB83214712B28C0E9FD1A77847"><enum>214.</enum><header>Duties</header>
<subsection id="ID28ABCDCE8A0F46EC8107C8B841C9DFCD"><enum>(a)</enum><header>Review and
analysis</header><text>The Commission shall—</text>
<paragraph id="ID7aff7af01699433ba2ecd6be164d3ef4"><enum>(1)</enum><text>review relevant
analyses of the private retirement system;</text>
</paragraph><paragraph id="ID75943bf8aac4489c9c2be87b53bcb715"><enum>(2)</enum><text>identify problems
that threaten retirement security; and</text>
</paragraph><paragraph id="IDc9dc9d69e73142e8a07c1f6f018f641c"><enum>(3)</enum><text>analyze potential
solutions to such problems.</text>
</paragraph></subsection><subsection id="IDB0884C8E282242119A7C1045E27AC0A2"><enum>(b)</enum><header>Recommendations</header><text>The
Commission shall develop recommendations on improving the private retirement
system in the United States.</text>
</subsection><subsection id="ID7D240A7538A64ACD9B6004A70C5C8C19"><enum>(c)</enum><header>Report</header><text>Not
later than 1 year after the date of enactment of this Act, the Commission shall
submit to Congress a report that contains—</text>
<paragraph id="IDEA7E4F851EB14AF1AA932D540CE1EE33"><enum>(1)</enum><text>a detailed
statement of the findings and conclusions of the Commission; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3ADFC9E9908547549EE8AC7CAB05C161"><enum>(2)</enum><text>the
recommendations of the Commission for such legislation (which shall include
proposed legislative language) and administrative actions as the Commission
considers appropriate.</text>
</paragraph></subsection></section><section id="IDCF2AFC6016204C4992172D7E1050ACA9"><enum>215.</enum><header>Commission
personnel matters</header>
<subsection id="ID40CD19C2755743E0A877328695537261"><enum>(a)</enum><header>No compensation
of members</header><text>Members of the Commission shall serve without
compensation.</text>
</subsection><subsection id="ID2806C7831D624B0282FF382049442273"><enum>(b)</enum><header>Travel
expenses</header><text>A member of the Commission who is not an officer or
employee of the Federal Government shall be allowed travel expenses, including
per diem in lieu of subsistence, while away from their homes or regular places
of business in the performance of services for the Commission in the same
manner as persons employed intermittently in the Government service are allowed
such expenses under section 5703 of title 5, United States Code.</text>
</subsection><subsection id="ID0C94A54F18724CA78604561BDE2A59AC"><enum>(c)</enum><header>Staff</header>
<paragraph id="IDE0F4CB3012E4442EBCCA7C3B0E2CB797"><enum>(1)</enum><header>In
general</header><text>The co-chairpersons of the Commission may, without regard
to the civil service laws (including regulations), appoint and terminate an
executive director and such other additional personnel as are necessary to
enable the Commission to perform the duties of the Commission.</text>
</paragraph><paragraph id="IDE702DC947A0449AA8F55F169AFCADE1C"><enum>(2)</enum><header>Confirmation of
executive director</header><text>The employment of an executive director shall
be subject to confirmation by the Commission.</text>
</paragraph><paragraph id="ID5E46BDE4566A42EB82523C89E701671B"><enum>(3)</enum><header>Compensation</header>
<subparagraph id="IDAA2990FA9B504AEB9E14B14852EACEDD"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the
co-chairpersons of the Commission may fix the compensation of the executive
director and other personnel without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of title 5, United States Code, relating to
classification of positions and General Schedule pay rates.</text>
</subparagraph><subparagraph id="ID53852F21B50A4AD49866A188D63DA634"><enum>(B)</enum><header>Maximum rate of
pay</header><text>The rate of pay for the executive director and other
personnel shall not exceed the rate payable for level V of the Executive
Schedule under section 5316 of title 5, United States Code.</text>
</subparagraph></paragraph></subsection><subsection id="ID2B7B620D91FF4CBD8C1299B90E180B9D"><enum>(d)</enum><header>Detail of
Federal Government employees</header>
<paragraph id="ID6494AD933D7D4EC79DB151E93E4BA5BD"><enum>(1)</enum><header>In
general</header><text>An employee of the Federal Government may be detailed to
the Commission without reimbursement.</text>
</paragraph><paragraph id="ID3A4FD5B4FBB244FAA53CA36D5B4E7F64"><enum>(2)</enum><header>Civil service
status</header><text>The detail of the employee shall be without interruption
or loss of civil service status or privilege.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID0B6BBB4F11C648BBA937F2BCD7909B6C"><enum>(e)</enum><header>Procurement of
temporary and intermittent services</header><text>The co-chairpersons of the
Commission may procure temporary and intermittent services in accordance with
section 3109(b) of title 5, United States Code, at rates for individuals that
do not exceed the daily equivalent of the annual rate of basic pay prescribed
for level V of the Executive Schedule under section 5316 of that title.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="ID40C4CF80B47148A39F0845C973A627D3" section-type="subsequent-section"><enum>216.</enum><header>Termination of
Commission</header><text display-inline="no-display-inline">The Commission
shall terminate 30 days after the date on which the Commission submits the
report of the Commission under section 214(c).</text>
</section></part><part id="id1B8FB8698FAF4918878D51B7AC8B363F"><enum>II</enum><header>Social
Security</header>
<section display-inline="no-display-inline" id="H6471A9278D714A938B193A2648CFD209"><enum>221.</enum><header>Determination
of taxable wages and self-employment income above contribution and benefit base
after 2012</header>
<subsection id="HCF95F0F4BFDA4676B3A6629A4D2B90E0"><enum>(a)</enum><header>Determination of
taxable wages above contribution and benefit base after 2012</header>
<paragraph id="HD18619EC358C4426B70A68989D0A8F45"><enum>(1)</enum><header>Amendments to
the Internal Revenue Code of 1986</header><text>Section 3121 of the Internal
Revenue Code of 1986 is amended—</text>
<subparagraph id="H13B5C871F8C6468C8BFAFA07700A9514"><enum>(A)</enum><text>in subsection
(a)(1), by inserting <quote>the applicable percentage (determined under
subsection (c)(1)) of</quote> before <quote>that part of the
remuneration</quote>; and</text>
</subparagraph><subparagraph id="H5944CBEB92D046E598A6C646A72DAB1B"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (c), by striking <quote>(c)
<header-in-text level="subsection" style="OLC">Included and excluded
service.—</header-in-text>For purposes of this chapter, if</quote> and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HF3561CB8EB6D442D8F9670438445B579" style="OLC">
<subsection id="H5B3BDBF5318B4F309E83F9086EB89463"><enum>(c)</enum><header>Special rules
for wages and employment</header>
<paragraph id="H4389E941E4E8436FBF1A9D6F6FB0EC3C"><enum>(1)</enum><header>Applicable
percentage of remuneration in determining taxable wages</header><text display-inline="yes-display-inline">For purposes of subsection (a)(1), the
applicable percentage for a calendar year shall be equal to—</text>
<subparagraph id="id0B3F5BB5D892439B8249F6D44EC4D422"><enum>(A)</enum><text display-inline="yes-display-inline">for 2013, 90 percent;</text>
</subparagraph><subparagraph id="idD9A18DE449724A7499D3E47098D1ECBF"><enum>(B)</enum><text display-inline="yes-display-inline">for 2014 through 2021, the applicable
percentage under this paragraph for the previous year, decreased by 10
percentage points; and</text>
</subparagraph><subparagraph id="id9D7AF7DCBC6D4924A83C307CED98567E"><enum>(C)</enum><text>for 2022 and each
year thereafter, 0 percent.</text>
</subparagraph></paragraph><paragraph id="H20D68718B61C49CB95858B0B2E3B69B9"><enum>(2)</enum><header>Included and
excluded service</header><text display-inline="yes-display-inline">For purposes
of this chapter,
if</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H104536304CF5425DA6660F30A5024C27"><enum>(2)</enum><header>Amendments to
the Social Security Act</header><text>Section 209 of the Social Security Act
(42 U.S.C. 409) is amended—</text>
<subparagraph id="H0438A8BE061D4FB7B3A0AD5E1DB9C899"><enum>(A)</enum><text>in subsection
(a)(1)(I)—</text>
<clause id="H57D79F5D84F54976B1572E6F1148D217"><enum>(i)</enum><text>by
inserting <quote>and before 2013</quote> after <quote>1974</quote>; and</text>
</clause><clause id="H3FC379D07FA943D09ACBD3FBEF6054F1"><enum>(ii)</enum><text>by
inserting <quote>and</quote> after the semicolon;</text>
</clause></subparagraph><subparagraph id="H66F6B8FBAAF2498EA7091F06E0632F9C"><enum>(B)</enum><text>in subsection
(a)(1), by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H475D8F1B5FA84CF286E974FA0FE3EBCE" style="OLC">
<subparagraph id="H1A2BDE0E5C5E4110B8E5F28DA849D468"><enum>(J)</enum><text display-inline="yes-display-inline">The applicable percentage (determined under
subsection (l)) of that part of remuneration which, after remuneration (other
than remuneration referred to in the succeeding subsections of this section)
equal to the contribution and benefit base (determined under section 230) with
respect to employment has been paid to an individual during any calendar year
after 2012 with respect to which such contribution and benefit base is
effective, is paid to such individual during such calendar
year;</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H82013BA7497D487CBA92F390750D575F"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="idFCEE6CD467374B24AE0D4BCD6EDD1705" style="OLC">
<subsection id="id0AC46C03EA0B48708D3ACFC11E43AC59"><enum>(l)</enum><text display-inline="yes-display-inline">For purposes of subsection (a)(1)(J), the
applicable percentage for a calendar year shall be equal to—</text>
<paragraph id="idD0291C28422C44E2A21C0E3AFCDD534D"><enum>(1)</enum><text display-inline="yes-display-inline">for 2013, 90 percent;</text>
</paragraph><paragraph id="id53B6FF1C330B4F28B3E8834B01887CF2"><enum>(2)</enum><text display-inline="yes-display-inline">for 2014 through 2021, the applicable
percentage under this subsection for the previous year, decreased by 10
percentage points; and</text>
</paragraph><paragraph id="id15991B3EC6344578828D68807A61B7C1"><enum>(3)</enum><text display-inline="yes-display-inline">for 2022 and each year thereafter, 0
percent.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HFFC539F269D9495F9F0C75989A2F01E0"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply with
respect to remuneration paid in calendar years after 2012.</text>
</paragraph></subsection><subsection id="H73A4B7B809B9437FB437007C303EDC68"><enum>(b)</enum><header>Determination of
taxable self-Employment income above contribution and benefit base after
2012</header>
<paragraph id="H6024A30892D84EEBBD5D873180F75677"><enum>(1)</enum><header>Amendments to
the Internal Revenue Code of 1986</header><text>Section 1402 of the Internal
Revenue Code of 1986 is amended—</text>
<subparagraph id="H2B2EC22EAF7C487B9426419622189738"><enum>(A)</enum><text>in subsection
(b)(1), by striking <quote>that part of the net earnings</quote> and all that
follows through <quote>minus</quote> and inserting the following: <quote>an
amount equal to the applicable percentage (as determined under subsection
(d)(2)) of that part of the net earnings from self-employment which is in
excess of the difference (not to be less than zero) between (i) an amount equal
to the contribution and benefit base (as determined under section 230 of the
Social Security Act) which is effective for the calendar year in which such
taxable year begins, and</quote>; and</text>
</subparagraph><subparagraph id="H14F8A714F2EC4337937780AA77CA54A3"><enum>(B)</enum><text>in subsection
(d)—</text>
<clause id="HD8E957D7F6764684A9FFBD15E39B4BA7"><enum>(i)</enum><text>by
striking <quote>(d) <header-in-text level="subsection" style="OLC">Employee and
wages.—</header-in-text>The term</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H6283CE5AEE0C48119B032E0C88D2F3D4" style="OLC">
<subsection id="H67401FD04931460C865B2D1CEE8410B1"><enum>(d)</enum><header>Rules and
definitions</header>
<paragraph id="HA8D10EFD520649E283638258422E47CE"><enum>(1)</enum><header>Employee and
wages</header><text display-inline="yes-display-inline">The
term</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="H03E9B8B3A1D14C018F771FE56C037220"><enum>(ii)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id5BFF9F7EE3CA40658CD5B6CBBD012FF1" style="OLC">
<paragraph id="idD4028F71A2B64B029C6F888E3214493C"><enum>(2)</enum><header>Applicable
percentage of net earnings from self-employment in determining taxable
self-employment income</header><text>For purposes of subsection (b)(1), the
applicable percentage for a taxable year beginning in any calendar year
referred to in such paragraph shall be equal to—</text>
<subparagraph id="id32FDA182FE004083A9AC6087D6F1F8E9"><enum>(A)</enum><text display-inline="yes-display-inline">for 2013, 90 percent;</text>
</subparagraph><subparagraph id="id9B48B5B4FB9E4D39A74621FD7CE85523"><enum>(B)</enum><text display-inline="yes-display-inline">for 2014 through 2021, the applicable
percentage under this paragraph for the previous year, decreased by 10
percentage points; and</text>
</subparagraph><subparagraph id="id971DCE8F2C094B5B8DAAD15297665F58"><enum>(C)</enum><text>for 2022 and each
year thereafter, 0
percent.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HF52FCCAE78E2431D97F5C3CC71CB40C9"><enum>(2)</enum><header>Amendments to
the Social Security Act</header><text>Section 211 of the Social Security Act
(42 U.S.C. 411) is amended—</text>
<subparagraph id="HE2858E8238B94DA5BB0016D2EEA911E6"><enum>(A)</enum><text>in subsection
(b)—</text>
<clause id="H6116DF5A64884DF9B8BEFBE765C67A52"><enum>(i)</enum><text>in
paragraph (1)(I)—</text>
<subclause id="idA02D42453DEB40FE870278D62C8C7A90"><enum>(I)</enum><text>by striking
<quote>or</quote> after the semicolon; and</text>
</subclause><subclause id="idB7873E059CBD48C6AEF7994AF0F77F55"><enum>(II)</enum><text>by inserting
<quote>and before 2013</quote> after <quote>1974</quote>;</text>
</subclause></clause><clause id="id534E717D9A6D4E0BADA9DBFE5A91062D"><enum>(ii)</enum><text>by
redesignating paragraph (2) as paragraph (3); and</text>
</clause><clause id="H9F5BD16614E0443590082CCC99EACAC7"><enum>(iii)</enum><text>by
inserting after paragraph (1) the following:</text>
<quoted-block display-inline="no-display-inline" id="H266474D6360E4C6FB4137029FB2443CB" style="OLC">
<paragraph id="H5BE08E0D08324B2885CF353534852BE2"><enum>(2)</enum><text display-inline="yes-display-inline">For any taxable year beginning in any
calendar year after 2012, an amount equal to the applicable percentage (as
determined under subsection (l)) of that part of net earnings from
self-employment which is in excess of the difference (not to be less than zero)
between—</text>
<subparagraph id="idEC5D51AB32BF4834B2D2BCD1ACC392CD"><enum>(A)</enum><text display-inline="yes-display-inline">an amount equal to the contribution and
benefit base (as determined under section 230) that is effective for such
calendar year, and</text>
</subparagraph><subparagraph id="id1F44D030C69F496CB2770D1291B2EC04"><enum>(B)</enum><text display-inline="yes-display-inline">the amount of the wages paid to such
individual during such taxable year; or</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H45D4A60547A8461BAED4B3EC82A4A0A2"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id730D081AFCC84E67BD592064813B2E7C" style="OLC">
<subsection id="id25A1640FDF63432F853661C6BCBD5E2C"><enum>(l)</enum><text>For purposes of
subsection (b)(2), the applicable percentage for a taxable year beginning in
any calendar year referred to in such paragraph shall be equal to—</text>
<paragraph id="idD96220C2B990457AB76985B3A9AF89BB"><enum>(1)</enum><text display-inline="yes-display-inline">for 2013, 90 percent;</text>
</paragraph><paragraph id="id084471F23B4B4315A440C537AF48642F"><enum>(2)</enum><text display-inline="yes-display-inline">for 2014 through 2021, the applicable
percentage under this subsection for the previous year, decreased by 10
percentage points; and</text>
</paragraph><paragraph id="id4D598D9777B74778B6021EADF382042D"><enum>(3)</enum><text display-inline="yes-display-inline">for 2022 and each year thereafter, 0
percent.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H4B02B7FF974B4EA0AEFCF72B98353694"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply with
respect to taxable years beginning during or after calendar year 2013.</text>
</paragraph></subsection></section><section id="id4E1ACB4A5B904BD5900CA0C615D33768"><enum>222.</enum><header>Adjustments to
bend points in determining primary insurance amount</header>
<subsection id="id6A83FFBAADAB424E8D8BAEE7A0645C24"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 215(a)(1) of
the <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.
415(a)(1)) is amended—</text>
<paragraph id="id9BB8C9B63F7042029464B927524002CA"><enum>(1)</enum><text>in subparagraph
(A)—</text>
<subparagraph id="id6063198DD33A45E7AE2C3DC9FA088901"><enum>(A)</enum><text>in clause (ii),
by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="id95C48016DB4C42F6886810975218A97B"><enum>(B)</enum><text>in clause (iii),
by striking the comma at the end and inserting the following: <quote>but do not
exceed the amount established for purposes of this clause by subparagraph (B),
and</quote>; and</text>
</subparagraph><subparagraph id="idC95C069FC6CB498BAC7444765E7357C7"><enum>(C)</enum><text>by adding at the
end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="idFF9417883648422D89613A4BCE3A188F" style="OLC">
<clause id="id9AE432839FA8435592DC909A01062844" indent="up2"><enum>(iv)</enum><text>5 percent of the individual's average
indexed monthly earnings to the extent that such earnings exceed the amount
established for purposes of clause
(iii),</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idD4EE6C35B8AC45FB8623F3036ADB2A31"><enum>(2)</enum><text>in subparagraph
(B)—</text>
<subparagraph id="idEEB144952D3E407C8B72A5F83A450D69"><enum>(A)</enum><text>in clause (i), by
striking <quote>clause (i) and (ii) of subparagraph (A) shall be $180 and
$1,085</quote> and inserting <quote>clauses (i), (ii), and (iii) of
subparagraph (A) shall be $180, $1,085, and $2,000</quote>;</text>
</subparagraph><subparagraph id="id3A303DAC0A96448D86DA348EA967B6F8"><enum>(B)</enum><text>by redesignating
clause (iii) as clause (iv); and</text>
</subparagraph><subparagraph id="id21FD0B3CD7EA4A338FC4D895EE9B1EF4"><enum>(C)</enum><text>by inserting
after clause (ii) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="idF16E03DF75F24DB78F4E782F80A64540" style="OLC">
<clause id="idD6C5D9630A724DB7BD7DFF9B882E0944" indent="up2"><enum>(iii)</enum><text>For individuals who initially become
eligible for old-age or disability insurance benefits, or who die (before
becoming eligible for such benefits) in any calendar year after 2012, the
amount determined under clause (i) of this subparagraph for purposes of
subparagraph (A)(i) for such calendar year shall be increased by—</text>
<subclause id="id7293A7C5B96A4088947BE0A4B7BDC162"><enum>(I)</enum><text>for calendar year 2013, 1.5
percent;</text>
</subclause><subclause id="id6235F09E24FD4CBD9150087FAB9DD8F7"><enum>(II)</enum><text>for each of calendar years 2014
through 2021, the percent determined under this clause for the preceding year
increased by 1.5 percentage points; and</text>
</subclause><subclause id="idD7737AE7EE314612A9712CB5B5DBCF58"><enum>(III)</enum><text>for calendar year 2022 and each
year thereafter, 15
percent.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="id73C3E2E842E84A85BBD73F35D96C39B0"><enum>(b)</enum><header>Technical
amendment</header><text>Section 215(e)(1) of such Act (42 U.S.C. 415(e)(1)) is
amended—</text>
<paragraph id="id41037860FA6644F89839A916FC2D5541"><enum>(1)</enum><text>by striking
<quote>before 1975, and the excess</quote> and inserting <quote>before 1975,
the excess</quote>; and</text>
</paragraph><paragraph id="id280806DD341C42CAAD6B5DCEF97F649C"><enum>(2)</enum><text>by inserting
<quote>and for years after 2012, the amount of remuneration and net earnings
from self-employment paid to or derived by such individual during such year
after application of sections 209(a)(1)(J) and 211(b)(2),</quote> after
<quote>such contribution and benefit base is effective,</quote>.</text>
</paragraph></subsection><subsection id="id422284169A49443586324782A88A3A27"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply with respect
to individuals who initially become eligible (within the meaning of section
215(a)(3)(B) of the Social Security Act) for old-age or disability insurance
benefits under title II of the Social Security Act, or who die (before becoming
eligible for such benefits), in any calendar year after 2012.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="ID8E720478EBA742219A6CAED7DA17CD97" section-type="subsequent-section"><enum>223.</enum><header>Consumer Price Index
for Elderly Consumers</header>
<subsection commented="no" display-inline="no-display-inline" id="IDB65F1F3372204988A3FE7C8D13050713"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Bureau of Labor
Statistics of the Department of Labor shall prepare and publish an index for
each calendar month to be known as the <term>Consumer Price Index for Elderly
Consumers</term> that indicates changes over time in expenditures for
consumption which are typical for individuals in the United States who have
attained early retirement age (as defined under section 216(l)(2) of the Social
Security Act (42 U.S.C. 416(l)(2)), for purposes of an old-age, wife's, or
husband's insurance benefit).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDC8680FCF14CB4759ADD0B84EAD4B0F95"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">Subsection (a) shall
apply with respect to calendar months ending on or after June 30 of the
calendar year in which this Act is enacted.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID921105A536A74E3CBD9396AD175287B7"><enum>(c)</enum><header>Authorization
of appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated such sums as are necessary to carry out the
provisions of this section.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDE4837C5E8FBE44BCA44CD49CCB4BE37D" section-type="subsequent-section"><enum>224.</enum><header>Computation of
cost-of-living increases for Social Security benefits</header>
<subsection commented="no" display-inline="no-display-inline" id="ID5E5D1BB3554C4330AD697245B499A287"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline"><external-xref legal-doc="act" parsable-cite="SSA/215(i)">Section 215(i)</external-xref> of
the <act-name parsable-cite="SSA">Social Security Act</act-name>
(<external-xref legal-doc="usc" parsable-cite="usc/42/415(i)">42 U.S.C.
415(i)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDC106E019C22744F3A487922C9C394228"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)(G), by inserting before
the period the following: <quote>, and, with respect to any monthly insurance
benefit payable under this title, effective for adjustments under this
subsection to the primary insurance amount on which such benefit is based (or
to any such benefit under section 227 or 228), the applicable Consumer Price
Index shall be deemed to be the Consumer Price Index for Elderly Consumers and
such primary insurance amount shall be deemed adjusted under this subsection
using such Index</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8A6EE78D21E045B489CDC1D5B4479A11"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (4), by striking <quote>and by
section 9001</quote> and inserting <quote>, by section 9001</quote>, and by
inserting after <quote>1986,</quote> the following: <quote>and by section
224(a) of the <short-title>Rebuild America
Act</short-title>,</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID3512F76C717148B2B6F37FC8840D533D"><enum>(b)</enum><header>Conforming
amendments in applicable former law</header><text display-inline="yes-display-inline"><external-xref legal-doc="act" parsable-cite="SSA/215(i)(1)(C)">Section 215(i)(1)(C)</external-xref> of the
<act-name parsable-cite="SSA">Social Security Act</act-name>, as in effect in
December 1978 and applied in certain cases under the provisions of such Act in
effect after December 1978, is amended by inserting before the period the
following: <quote>, and, with respect to any monthly insurance benefit payable
under this title, effective for adjustments under this subsection to the
primary insurance amount on which such benefit is based (or to any such benefit
under section 227 or 228), the applicable Consumer Price Index shall be deemed
to be the Consumer Price Index for Elderly Consumers and such primary insurance
amount shall be deemed adjusted under this subsection using such
Index</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID99FACC1542E941A18742B22D8DA3270E"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to determinations made by the Commissioner of Social
Security under <external-xref legal-doc="act" parsable-cite="SSA/215(i)(2)">section 215(i)(2)</external-xref> of the
<act-name parsable-cite="SSA">Social Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/415(i)(2)">42 U.S.C.
415(i)(2)</external-xref>), with respect to cost-of-living computation quarters
ending on or after September 30, 2013.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idE598EFBDD35949C288ACC08BC629F6A8"><enum>225.</enum><header>Non-application
of increase in Social Security benefits for other Federal or federally assisted
programs</header><text display-inline="no-display-inline">Any increase in
old-age or disability insurance benefits under title II of the Social Security
Act as a result of the amendments made by this Act shall not be regarded as
income and shall not be regarded as a resource for any month after December
2012, for purposes of determining the eligibility of the recipient (or the
recipient's spouse or family) for benefits or assistance, or the amount or
extent of benefits or assistance, under any Federal program or under any State
or local program financed in whole or in part with Federal funds.</text>
</section></part></subtitle><subtitle id="id081A7EDEF23E4433BAE0782461945E73"><enum>C</enum><header>Protecting
Overtime Pay for Working Americans</header>
<section id="id28c5bdc116c144ed95bcab83f4bf6bf5"><enum>231.</enum><header>Salary
thresholds, highly compensated employees, and primary duties</header>
<subsection id="idF3F0990692424A5999F544C786744B38"><enum>(a)</enum><header>Salary
thresholds for executive, administrative, and professional
employees</header><text display-inline="yes-display-inline">Section 13 of the
Fair Labor Standards Act of 1938 (29 U.S.C. 213) is amended—</text>
<paragraph id="id9c44b157130041ce92dff9e0ccde7f87"><enum>(1)</enum><text>in subsection
(a)(1), by inserting before <quote>; or</quote> the following: <quote>, subject
to the requirement that any employee who the Secretary determines is required
to be paid on a salary or fee basis in order to be exempt under this subsection
shall, in order to be exempt, be compensated at a rate of not less than the
salary rate (or equivalent fee basis) determined under subsection (k)</quote>;
and</text>
</paragraph><paragraph id="id364E269D3C9B43D7AF55CE0C39FC366B"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id7ECBF3027156448386EF46CA34E03BA2" style="OLC">
<subsection id="id5EA32B88299A4577B7C868D80C4E6157"><enum>(k)</enum><header>Salary
rates</header>
<paragraph id="id78311D8037324DB8B6C7A72EF5F09A2A"><enum>(1)</enum><header>In
general</header><text>The salary rate (or equivalent fee basis) determined
under this subsection for purposes of subsection (a)(1) shall be—</text>
<subparagraph id="id834DB333326E42718970E801E338AD01"><enum>(A)</enum><text>beginning 1 year
after the first day of the third month that begins after the date of enactment
of the Rebuild America Act, $655 per week;</text>
</subparagraph><subparagraph id="id84F46EDA05094B489F2CC7C983FDF42E"><enum>(B)</enum><text>beginning 2 years
after that first day, $855 per week;</text>
</subparagraph><subparagraph id="id0DAC909C2B3F42BAA69561B3333CFE98"><enum>(C)</enum><text>beginning 3 years
after that first day, $1,045 per week; and</text>
</subparagraph><subparagraph id="id2F8086C8BCFB427A9C41D318148C8404"><enum>(D)</enum><text>beginning on the
date that is 4 years after that first day, and on that first day in each
succeeding year, an adjusted amount that is—</text>
<clause id="id8DFDAC41042A4C5EACBA233E7F6DC719"><enum>(i)</enum><text>not less than the
amount in effect under this paragraph on the day before the date the adjustment
is being made;</text>
</clause><clause id="id07097BACADAB4B2AB4A9A819D6FDBD83"><enum>(ii)</enum><text>increased from
such amount by the annual percentage increase in the Consumer Price Index for
Urban Wage Earners and Clerical Workers; and</text>
</clause><clause id="id5714F9856D674531BC8640DFC440F3E7"><enum>(iii)</enum><text>rounded to the
nearest multiple of $1.00.</text>
</clause></subparagraph></paragraph><paragraph id="idD90E62FB952046B3B980CE38D79F8297"><enum>(2)</enum><header>Special
rule</header><text>Notwithstanding paragraph (1), for any employee for whom the
minimum wage would otherwise be determined pursuant to section 8103(b) of the
Fair Minimum Wage Act of 2007 (29 U.S.C. 206 note), the Secretary may
determine, through regulations, the salary rate (or equivalent fee
basis).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idF3E9BF037E6B49529830A65289253306"><enum>(b)</enum><header>Definitions</header><text display-inline="yes-display-inline">Section 13 of the Fair Labor Standards Act
of 1938 (as amended by subsection (a)) (29 U.S.C. 213) is further amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id5140899356EC4CA29A3DD3C5AD9DCF88" style="OLC">
<subsection id="idD9FF74897D1D4316B563BE742F537BCB"><enum>(l)</enum><header>Definitions</header>
<paragraph id="idEDA75806162D483BA4C6FF863679EE28"><enum>(1)</enum><header>Annual
percentage increase; Consumer Price Index</header><text>For purposes of this
section—</text>
<subparagraph id="id188B45AD84B2492F8EFBE8F6134B8BBB"><enum>(A)</enum><text>the term
<term>annual percentage increase</term>, when used in reference to the Consumer
Price Index for Urban Wage Earners and Clerical Workers, means the annual
percentage increase calculated by the Secretary under section 6(h)(2), as
amended by section 231 of the Rebuild America Act; and</text>
</subparagraph><subparagraph id="id7C5D0DD793A44151B6F0DA547EA690E5"><enum>(B)</enum><text>the term
<term>Consumer Price Index for Urban Wage Earners and Clerical Workers</term>
means the Consumer Price Index for Urban Wage Earners and Clerical Workers
(United States city average, all items, not seasonally adjusted), or its
successor publication, as determined by the Bureau of Labor Statistics.</text>
</subparagraph></paragraph><paragraph commented="no" id="id5A2B36E696384E2D9DC92C11C1589A4F"><enum>(2)</enum><header>Primary
duty</header><text>For purposes of paragraphs (1) and (17) of subsection (a),
including the regulations interpreting such paragraphs, any reference to the
term <term>primary duty</term> (or a successor term) when used with respect to
determining if an employee is employed in a bona fide executive,
administrative, or professional capacity, or in a position described in
subsection (a)(17), means the duty that an employee spends more than 50 percent
of the employee's work hours per week
performing.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id479F2AC89B4B4C969A9C8F908A679899"><enum>(c)</enum><header>Highly
compensated employees</header>
<paragraph id="id9C05C19887B84072B716FD299C2FECED"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">If the Secretary of
Labor, in the Secretary’s discretion, determines that an employee may be exempt
for purposes of section 13(a)(1) of the Fair Labor Standards Act of 1938 (29
U.S.C. 213(a)(1)), as a highly compensated employee (as such term is defined
and delimited by the Secretary), then the level of total annual compensation
necessary for such exemption shall be—</text>
<subparagraph id="idC48E1C628DDF4203811E6A3FB99809C5"><enum>(A)</enum><text display-inline="yes-display-inline">for the calendar year that includes the
effective date of this subsection, $120,000; and</text>
</subparagraph><subparagraph id="idCF7ED59E6D924A0089645D6E57575CC5"><enum>(B)</enum><text>for each
succeeding calendar year, an adjusted amount that is—</text>
<clause id="idDE0FA409B71147F7BD1B74AADEFA07EA"><enum>(i)</enum><text>not
less than the amount in effect under this paragraph on the day before the date
such adjustment is being made;</text>
</clause><clause id="idCFCCA2EBA0AE480AADAF38B07A6C8496"><enum>(ii)</enum><text>increased from
such amount by the annual percentage increase in the Consumer Price Index for
Urban Wage Earners and Clerical Workers; and</text>
</clause><clause id="idB7A90BA67D354E6A8835AE6CDFCEB64C"><enum>(iii)</enum><text>rounded to the
nearest multiple of $1.00.</text>
</clause></subparagraph></paragraph><paragraph id="idC9945CC5E62D4BD490776F8F64086E2D"><enum>(2)</enum><header>Definitions</header><text>For
purposes of this subsection, the terms <term>annual percentage increase</term>
and <term>Consumer Price Index for Urban Wage Earners and Clerical
Workers</term> have the meanings given the terms in section 13(l) of the Fair
Labor Standards Act of 1938 (29 U.S.C. 213(l)), as added by subsection
(b).</text>
</paragraph><paragraph id="id1216F8CC9CD2429DB65A5482C043DE0C"><enum>(3)</enum><header>Rule of
construction</header><text>Nothing in this subsection or the regulations
promulgated by the Secretary of Labor under this subsection shall override any
provision of a collective bargaining agreement that provides for overtime
employment compensation, or rights to such compensation, that exceed the
requirements of the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et
seq.).</text>
</paragraph></subsection><subsection id="idACCAE3726AB54A7AB2BEEFCBF80C0E43"><enum>(d)</enum><header>Publication of
notice</header><text>Not later than 60 days before the date any increase in the
salary rate (or equivalent fee basis) required under section 13(k)(1)(D) of the
Fair Labor Standards Act of 1938 (29 U.S.C. 213(a)(k)(1)(D)) takes effect, or
any increase in the amount of compensation required for highly compensated
employee exemption required under subsection (c) takes effect, the Secretary of
Labor shall publish, in the Federal Register and on the website of the
Department of Labor, a notice announcing the adjusted salary rate (or
equivalent fee basis) requirement or adjusted amount of compensation,
respectively. The provisions of section 553 of title 5, United States Code,
shall not apply to any notice required under this subsection.</text>
</subsection><subsection id="idFB2E4E2F1D544135B375E078BA55B8E3"><enum>(e)</enum><header>Effective
date</header><text display-inline="yes-display-inline">This section, and the
amendments made by this section, shall take effect on the date that is 1 year
after the first day of the third month that begins after the date of enactment
of the Rebuild America Act.</text>
</subsection></section></subtitle><subtitle id="id45EF6E046986482999E048BCE7111B9E"><enum>D</enum><header>Preventing
Americans from Having To Choose Between Their Health and Their
Paycheck</header>
<section id="id3269396527A043B4A56EC84990D77755"><enum>241.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote><short-title>Healthy Families
Act</short-title></quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="IDF02915CA84824A28B3A0F7BB2FCDB617" section-type="subsequent-section"><enum>242.</enum><header display-inline="yes-display-inline">Findings</header><text display-inline="no-display-inline">Congress makes the following
findings:</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID5BF788F783644ED198D0410FFDAA7643"><enum>(1)</enum><text display-inline="yes-display-inline">Working Americans need time to meet their
own health care needs and to care for family members, including their children,
spouse, parents, and parents-in-law, and other children and adults for whom
they are caregivers.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID050A8F788AED402B902B4B753C71D7FC"><enum>(2)</enum><text display-inline="yes-display-inline">Health care needs include preventive health
care, diagnostic procedures, medical treatment, and recovery in response to
short- and long-term illnesses and injuries.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3EAB95A80841453E9BDC6BB7D5AC7AD3"><enum>(3)</enum><text display-inline="yes-display-inline">Providing employees time off to meet health
care needs ensures that they will be healthier in the long run. Preventive care
helps avoid illnesses and injuries and routine medical care helps detect
illnesses early and shorten their duration.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8539E0947D5D48848759F0590B328562"><enum>(4)</enum><text display-inline="yes-display-inline">When parents are available to care for
their children who become sick, children recover faster, more serious illnesses
are prevented, and children’s overall mental and physical health improve. In a
2009 study published in the American Journal of Public Health, 81 percent of
parents of a child with special health care needs reported that taking leave
from work to be with their child had a <quote>good</quote> or <quote>very
good</quote> effect on their child’s physical health. Similarly, 85 percent of
parents of such a child found that taking such leave had a <quote>good</quote>
or <quote>very good</quote> effect on their child’s emotional health.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id24F24AB810024CEFA4D22CCB85964C92"><enum>(5)</enum><text display-inline="yes-display-inline">When parents cannot afford to miss work and
must send children with contagious illnesses to child care centers or schools,
infection can spread rapidly through child care centers and schools.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAED4B6400379481BA5A3C0990964463C"><enum>(6)</enum><text display-inline="yes-display-inline">Providing paid sick time improves public
health by reducing infectious disease. Policies that make it easier for sick
adults and children to be isolated at home reduce the spread of infectious
disease.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDE7079D317B7A413ABC926479355AC7E5"><enum>(7)</enum><text display-inline="yes-display-inline">Routine medical care reduces medical costs
by detecting and treating illness and injury early, decreasing the need for
emergency care. These savings benefit public and private payers of health
insurance, including private businesses.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID77045FAF274949AD9DCD9385170B1B0B"><enum>(8)</enum><text display-inline="yes-display-inline">The provision of individual and family sick
time by large and small businesses, both here in the United States and
elsewhere, demonstrates that policy solutions are both feasible and affordable
in a competitive economy. A 2009 study by the Center for Economic and Policy
Research found that, of 22 countries with comparable economies, the United
States was 1 of only 3 countries that did not provide any paid time off for
workers with short-term illnesses.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA963D50124064710ABFC36186D3F6B0F"><enum>(9)</enum><text display-inline="yes-display-inline">Measures that ensure that employees are in
good health and do not need to worry about unmet family health problems help
businesses by promoting productivity and reducing employee turnover.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDC401CCDCC7A74E498359D09052881D6E"><enum>(10)</enum><text display-inline="yes-display-inline">The American Productivity Audit completed
in 2003 found that lost productivity due to illness costs $226,000,000,000
annually, and that 71 percent of that cost stems from presenteeism, the
practice of employees coming to work despite illness. Studies in the Journal of
Occupational and Environmental Medicine, the Employee Benefit News, and the
Harvard Business Review show that presenteeism is a larger productivity drain
than either absenteeism or short-term disability.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID74CFD217CDD44327B916B5DB19CE6DCB"><enum>(11)</enum><text display-inline="yes-display-inline">The absence of paid sick time has forced
Americans to make untenable choices between needed income and jobs on the one
hand and caring for their own and their family’s health on the other.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDD10A9997C5374A77A22BB7C5540C4D4F"><enum>(12)</enum><text display-inline="yes-display-inline">Nearly 40 percent of the private-sector
workforce (about 40,000,000 workers) lack paid sick time. Another 4,000,000
theoretically have access to sick time, but have not been on the job long
enough to use it. Millions more lack sick time they can use to care for a sick
child or ill family member.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDB6C2F287D114443E992AE7C4D828CA5A"><enum>(13)</enum><text display-inline="yes-display-inline">Workers’ access to paid sick time varies
dramatically by wage level. For private-sector workers in the lowest quartile
of earners, 68 percent lack paid sick time. For workers in the next 2
quartiles, 34 and 25 percent, respectively, lack paid sick time. Even for
workers in the highest income quartile, 16 percent lack paid sick time. In
addition, millions of workers cannot use paid sick time to care for ill family
members.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9864C6E9595541A09FFA562DE2FABBFA"><enum>(14)</enum><text display-inline="yes-display-inline">Due to the roles of men and women in
society, the primary responsibility for family caregiving often falls on women,
and such responsibility affects the working lives of women more than it affects
the working lives of men.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID45E17337D63240608C6F245210848B14"><enum>(15)</enum><text display-inline="yes-display-inline">An increasing number of men are also taking
on caregiving obligations, and men who request paid time for caregiving
purposes are often denied accommodation or penalized because of stereotypes
that caregiving is only <term>women’s work</term>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDDBAA039636D74609BCAB942C54BD9F0B"><enum>(16)</enum><text display-inline="yes-display-inline">Employers’ reliance on persistent
stereotypes about the <term>proper</term> roles of both men and women in the
workplace and in the home continues a cycle of discrimination and fosters
stereotypical views about women's commitment to work and their value as
employees.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2E5540C361D2458191534CFA89E01BDE"><enum>(17)</enum><text display-inline="yes-display-inline">Employment standards that apply to only one
gender have serious potential for encouraging employers to discriminate against
employees and applicants for employment who are of that gender.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6b962c59a9b64f04b2e3c8c06c478575"><enum>(18)</enum><text display-inline="yes-display-inline">It is in the national interest to ensure
that all Americans can care for their own health and the health of their
families while prospering at work.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDda6126a7fb23439da6f852442fc797b0"><enum>(19)</enum><text display-inline="yes-display-inline">Nearly 1 in 3 American women report
physical or sexual abuse by a husband or boyfriend at some point in their
lives. Domestic violence also affects men. Women account for about 85 percent
of the victims of domestic violence and men account for approximately 15
percent of the victims. Therefore, women disproportionately need time off to
care for their health or to find solutions, such as obtaining a restraining
order or finding housing, to avoid or prevent physical or sexual abuse.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8f16980b21ab40b38d9135bc251047e4"><enum>(20)</enum><text display-inline="yes-display-inline">One study showed that 85 percent of
domestic violence victims at a women’s shelter who were employed missed work
because of abuse. The mean number of days of paid work lost by a rape victim is
8.1 days, by a victim of physical assault is 7.2 days, and by a victim of
stalking is 10.1 days. Nationwide, domestic violence victims lose almost
8,000,000 days of paid work per year.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8859127b9ebf44929a2635fa65ac51cc"><enum>(21)</enum><text display-inline="yes-display-inline">Without paid sick days that can be used to
address the effects of domestic violence, these victims are in grave danger of
losing their jobs. One survey found that 96 percent of employed domestic
violence victims experienced problems at work related to the violence. The
Government Accountability Office similarly found that 24 to 52 percent of
victims report losing a job due, at least in part, to domestic violence. The
loss of employment can be particularly devastating for victims of domestic
violence, who often need economic security to ensure safety.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD16D1F4FC3034865956BF47B7A760715"><enum>(22)</enum><text display-inline="yes-display-inline">The Centers for Disease Control and
Prevention has estimated that domestic violence costs over $700,000,000
annually due to the victims’ lost productivity in employment.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id79F16FAA2E524FFB8CFF6873B4EF6A99"><enum>(23)</enum><text display-inline="yes-display-inline">Efforts to assist abused employees result
in positive outcomes for employers as well as employees because employers can
retain workers who might otherwise be compelled to leave.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="ID570366874D3946A087789F79DE14491B" section-type="subsequent-section"><enum>243.</enum><header display-inline="yes-display-inline">Purposes</header><text display-inline="no-display-inline">The purposes of this subtitle are—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID7289E4FCAD4F4D2F8CFCBC2D3C27D42F"><enum>(1)</enum><text display-inline="yes-display-inline">to ensure that all working Americans can
address their own health needs and the health needs of their families by
requiring employers to permit employees to earn up to 56 hours of paid sick
time including paid time for family care;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDE03C14913DCC4EC392767357496DF678"><enum>(2)</enum><text display-inline="yes-display-inline">to diminish public and private health care
costs by enabling workers to seek early and routine medical care for themselves
and their family members;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDcb202eeffa494e9992b69c9d375a0c04"><enum>(3)</enum><text display-inline="yes-display-inline">to assist employees who are, or whose
family members are, victims of domestic violence, sexual assault, or stalking,
by providing the employees with paid time away from work to allow the victims
to receive treatment and to take the necessary steps to ensure their
protection;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8D8BEF03EA7D4F0CBC01EB48AA7F0931"><enum>(4)</enum><text display-inline="yes-display-inline">to accomplish the purposes described in
paragraphs (1) through (3) in a manner that is feasible for employers;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4523280A0F51412FBCC758AD05176937"><enum>(5)</enum><text display-inline="yes-display-inline">consistent with the provision of the 14th
Amendment to the Constitution relating to equal protection of the laws, and
pursuant to Congress' power to enforce that provision under section 5 of that
Amendment—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id8A87C23F99954C339CAF4C13F87B0E32"><enum>(A)</enum><text display-inline="yes-display-inline">to accomplish the purposes described in
paragraphs (1) through (3) in a manner that minimizes the potential for
employment discrimination on the basis of sex by ensuring generally that paid
sick time is available for eligible medical reasons on a gender-neutral basis;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID605360445D1D4A6F8EF2A5D4E084A282"><enum>(B)</enum><text display-inline="yes-display-inline">to promote the goal of equal employment
opportunity for women and men.</text>
</subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="ID06263128EB4340B0A9FB00CB671A9CF5" section-type="subsequent-section"><enum>244.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">In this subtitle:</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDF18E2C36E02544B8825717E59A26482A"><enum>(1)</enum><header display-inline="yes-display-inline">Child</header><text display-inline="yes-display-inline">The term <term>child</term> means a
biological, foster, or adopted child, a stepchild, a legal ward, or a child of
a person standing in loco parentis, who is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID45C75E9107A6434BA6810DF25434119A"><enum>(A)</enum><text display-inline="yes-display-inline">under 18 years of age; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDFBED30A7A03B4A11AD6374D14B46B7F8"><enum>(B)</enum><text display-inline="yes-display-inline">18 years of age or older and incapable of
self-care because of a mental or physical disability.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5A3FB06E5524444BAE45EF95C4ED9C58"><enum>(2)</enum><header display-inline="yes-display-inline">Domestic violence</header><text display-inline="yes-display-inline">The term <term>domestic violence</term> has
the meaning given the term in section 40002(a) of the Violence Against Women
Act of 1994 (42 U.S.C. 13925(a)), except that the reference in such section to
the term <term>jurisdiction receiving grant monies</term> shall be deemed to
mean the jurisdiction in which the victim lives or the jurisdiction in which
the employer involved is located.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID977F03DF4C324B6A99C6BF67791FB4B7"><enum>(3)</enum><header display-inline="yes-display-inline">Employee</header><text display-inline="yes-display-inline">The term <term>employee</term> means an
individual who is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID8651F24CE0DC4205A46C2F07906F9579"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="ID5A81DCBAF1C34EF8885413A4B070DFAD"><enum>(i)</enum><text display-inline="yes-display-inline">an employee, as defined in section 3(e) of
the Fair Labor Standards Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/29/203(e)">29 U.S.C. 203(e)</external-xref>), who is not
covered under subparagraph (E), including such an employee of the Library of
Congress, except that a reference in such section to an employer shall be
considered to be a reference to an employer described in clauses (i)(I) and
(ii) of paragraph (4)(A); or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDB188C48B2D3045B8A89EA7787A66B709" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">an employee of the Government
Accountability Office;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCC95A3736A88413681CB481837BAAEC1"><enum>(B)</enum><text display-inline="yes-display-inline">a State employee described in section
304(a) of the Government Employee Rights Act of 1991 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e-16c(a)">42 U.S.C.
2000e–16c(a)</external-xref>);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDFB886B95B2C4CE3A1A7AF3B2587AEF2"><enum>(C)</enum><text display-inline="yes-display-inline">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>),
other than an applicant for employment;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5BE4AEA0F9DB4EDA905CF4BECFBBAFEA"><enum>(D)</enum><text display-inline="yes-display-inline">a covered employee, as defined in section
411(c) of title 3, United States Code; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFD478CA4E26347A4A7A7CC8FC08CC731"><enum>(E)</enum><text display-inline="yes-display-inline">a Federal officer or employee covered under
subchapter V of chapter 63 of title 5, United States Code.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1197B6ADB1A14CB2B78A2C7266B5580C"><enum>(4)</enum><header display-inline="yes-display-inline">Employer</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID567EC90B7BEB457B903CF7E56E3EB3D2"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>employer</term> means a
person who is—</text>
<clause commented="no" display-inline="no-display-inline" id="IDA6465EB38CE64E1DA7D73F5FF52F5CF4"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="IDBCEF6065C2C14F98A31AAA0F2B91E376"><enum>(I)</enum><text display-inline="yes-display-inline">a covered employer, as defined in
subparagraph (B), who is not covered under subclause (V);</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID12BFB42BC57A45198213DCADAE371B58" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">an entity employing a State employee
described in section 304(a) of the Government Employee Rights Act of
1991;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDABA5E637F0064D00B01B9DDE8F49B7F5" indent="up1"><enum>(III)</enum><text display-inline="yes-display-inline">an employing office, as defined in section
101 of the Congressional Accountability Act of 1995;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID6A32E0EC3E964F85925C9B004DFBEFDE" indent="up1"><enum>(IV)</enum><text display-inline="yes-display-inline">an employing office, as defined in section
411(c) of title 3, United States Code; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID0A38969FAAFB487587E6D1589CF0A7B0" indent="up1"><enum>(V)</enum><text display-inline="yes-display-inline">an employing agency covered under
subchapter V of chapter 63 of title 5, United States Code; and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="IDC46D40A8AB5249A7996520443BB58EE7"><enum>(ii)</enum><text display-inline="yes-display-inline">is engaged in commerce (including
government), or an industry or activity affecting commerce (including
government), as defined in subparagraph (B)(iii).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0E27879DCBFF4A08BFEA438F3B5FFA93"><enum>(B)</enum><header display-inline="yes-display-inline">Covered employer</header>
<clause commented="no" display-inline="no-display-inline" id="ID1D15DACC9E2F465697DCC8769C58B41F"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In subparagraph (A)(i)(I), the term
<term>covered employer</term>—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID9D88C06A09A64FB8BC255BBA189C7803"><enum>(I)</enum><text display-inline="yes-display-inline">means any person engaged in commerce or in
any industry or activity affecting commerce who employs 15 or more employees
for each working day during each of 20 or more calendar workweeks in the
current or preceding calendar year;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID3E41384441E141CC94CB10D714C42BEB"><enum>(II)</enum><text display-inline="yes-display-inline">includes—</text>
<item commented="no" display-inline="no-display-inline" id="ID1F93FE602BA84DE89157FF498DC27AAC"><enum>(aa)</enum><text display-inline="yes-display-inline">any person who acts, directly or
indirectly, in the interest of an employer to any of the employees of such
employer; and</text>
</item><item commented="no" display-inline="no-display-inline" id="ID7F4BE3D170D24D4B92E56792598DD3AB"><enum>(bb)</enum><text display-inline="yes-display-inline">any successor in interest of an
employer;</text>
</item></subclause><subclause commented="no" display-inline="no-display-inline" id="IDF0171879A5504C8FB7B3F8D0467D8810"><enum>(III)</enum><text display-inline="yes-display-inline">includes any <term>public agency</term>, as
defined in section 3(x) of the Fair Labor Standards Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/29/203(x)">29 U.S.C.
203(x)</external-xref>); and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID902D03B2AC2A4943901CF6732A93F35C"><enum>(IV)</enum><text display-inline="yes-display-inline">includes the Government Accountability
Office and the Library of Congress.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID3360E92C448B4EC6A9D5C6CBEF43C2B3"><enum>(ii)</enum><header display-inline="yes-display-inline">Public agency</header><text display-inline="yes-display-inline">For purposes of clause (i)(III), a public
agency shall be considered to be a person engaged in commerce or in an industry
or activity affecting commerce.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID2D726830ADFF439783ED664B3359C39C"><enum>(iii)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this subparagraph:</text>
<subclause commented="no" display-inline="no-display-inline" id="ID1FFFD585E6394D4EBA51E77577FFC63B"><enum>(I)</enum><header display-inline="yes-display-inline">Commerce</header><text display-inline="yes-display-inline">The terms <term>commerce</term> and
<term>industry or activity affecting commerce</term> mean any activity,
business, or industry in commerce or in which a labor dispute would hinder or
obstruct commerce or the free flow of commerce, and include
<term>commerce</term> and any <term>industry affecting commerce</term>, as
defined in paragraphs (1) and (3) of section 501 of the Labor Management
Relations Act, 1947 (<external-xref legal-doc="usc" parsable-cite="usc/29/142">29 U.S.C. 142</external-xref> (1) and (3)).</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDAF9D048D0AA445CF800258ACC6AD0F95"><enum>(II)</enum><header display-inline="yes-display-inline">Employee</header><text display-inline="yes-display-inline">The term <term>employee</term> has the same
meaning given such term in section 3(e) of the Fair Labor Standards Act of 1938
(<external-xref legal-doc="usc" parsable-cite="usc/29/203(e)">29 U.S.C.
203(e)</external-xref>).</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDB46D1A102370488B95D7958C6AC94D1F"><enum>(III)</enum><header display-inline="yes-display-inline">Person</header><text display-inline="yes-display-inline">The term <term>person</term> has the same
meaning given such term in section 3(a) of the Fair Labor Standards Act of 1938
(<external-xref legal-doc="usc" parsable-cite="usc/29/203(a)">29 U.S.C.
203(a)</external-xref>).</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID9D04DF409E35495598D66C447A541B47"><enum>(C)</enum><header display-inline="yes-display-inline">Predecessors</header><text display-inline="yes-display-inline">Any reference in this paragraph to an
employer shall include a reference to any predecessor of such employer.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDFCC4D5A645434963BDE990BEA18773F9"><enum>(5)</enum><header display-inline="yes-display-inline">Employment benefits</header><text display-inline="yes-display-inline">The term <term>employment benefits</term>
means all benefits provided or made available to employees by an employer,
including group life insurance, health insurance, disability insurance, sick
leave, annual leave, educational benefits, and pensions, regardless of whether
such benefits are provided by a practice or written policy of an employer or
through an <term>employee benefit plan</term>, as defined in
<external-xref legal-doc="act" parsable-cite="ERISA/3(3)">section
3(3)</external-xref> of the <act-name parsable-cite="ERISA">Employee Retirement
Income Security Act of 1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/29/1002(3)">29 U.S.C. 1002(3)</external-xref>).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2F2E00A5D5444EB3A54D50CF2A304B33"><enum>(6)</enum><header display-inline="yes-display-inline">Health care provider</header><text display-inline="yes-display-inline">The term <term>health care provider</term>
means a provider who—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDCA26EDB34FE446ED9DF6415D88F97A87"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="id1B4DBED27BD14F7189200D09589832A1"><enum>(i)</enum><text display-inline="yes-display-inline">is a doctor of medicine or osteopathy who
is authorized to practice medicine or surgery (as appropriate) by the State in
which the doctor practices; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDDD00EF6F95394380B6D93245F3681E61" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">is any other person determined by the
Secretary to be capable of providing health care services; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3A9796084D0B4366836B25DD9260767A"><enum>(B)</enum><text display-inline="yes-display-inline">is not employed by an employer for whom the
provider issues certification under this subtitle.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDBDE1C021B7D14B70828FA280731F3A7A"><enum>(7)</enum><header display-inline="yes-display-inline">Paid
sick time</header><text display-inline="yes-display-inline">The term <term>paid
sick time</term> means an increment of compensated leave that can be earned by
an employee for use during an absence from employment for any of the reasons
described in paragraphs (1) through (4) of section 245(b).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDA624B854E5D8474FB02B7CB7D8FD6810"><enum>(8)</enum><header display-inline="yes-display-inline">Parent</header><text display-inline="yes-display-inline">The term <term>parent</term> means a
biological, foster, or adoptive parent of an employee, a stepparent of an
employee, or a legal guardian or other person who stood in loco parentis to an
employee when the employee was a child.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID47FE2422560F4A2EBB667CA504A5687F"><enum>(9)</enum><header display-inline="yes-display-inline">Secretary</header><text display-inline="yes-display-inline">The term <term>Secretary</term> means the
Secretary of Labor.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id874E22469F1442E092D25D96E2C6EE8C"><enum>(10)</enum><header display-inline="yes-display-inline">Sexual
assault</header><text display-inline="yes-display-inline">The term <term>sexual
assault</term> has the meaning given the term in section 40002(a) of the
Violence Against Women Act of 1994 (42 U.S.C. 13925(a)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDE51E01323B0B477497E5A377862EC9AE"><enum>(11)</enum><header display-inline="yes-display-inline">Spouse</header><text display-inline="yes-display-inline">The term <term>spouse</term>, with respect
to an employee, has the meaning given such term by the marriage laws of the
State in which the employee resides.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id241F9D301E8D47F1AC1F2C33D10460EF"><enum>(12)</enum><header display-inline="yes-display-inline">Stalking</header><text display-inline="yes-display-inline">The term <term>stalking</term> has the
meaning given the term in section 40002(a) of the Violence Against Women Act of
1994 (42 U.S.C. 13925(a)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id51A1CB6453E54E8B9278F10E65006F78"><enum>(13)</enum><header display-inline="yes-display-inline">Victim services organization</header><text display-inline="yes-display-inline">The term <term>victim services
organization</term> means a nonprofit, nongovernmental organization that
provides assistance to victims of domestic violence, sexual assault, or
stalking or advocates for such victims, including a rape crisis center, an
organization carrying out a domestic violence, sexual assault, or stalking
prevention or treatment program, an organization operating a shelter or
providing counseling services, or a legal services organization or other
organization providing assistance through the legal process.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="ID1CD3070B2F8C44A8AF222AF529406289" section-type="subsequent-section"><enum>245.</enum><header display-inline="yes-display-inline">Provision of paid sick time</header>
<subsection commented="no" display-inline="no-display-inline" id="IDd8311b6c5e1b49aeb3322c363ddb1f2d"><enum>(a)</enum><header display-inline="yes-display-inline">Accrual of paid sick time</header>
<paragraph commented="no" display-inline="no-display-inline" id="idD780BB53DEC7438DA84A55A2BE9D790C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">An employer shall permit each employee
employed by the employer to earn not less than 1 hour of paid sick time for
every 30 hours worked, to be used as described in subsection (b). An employer
shall not be required to permit an employee to earn, under this section, more
than 56 hours of paid sick time in a calendar year, unless the employer chooses
to set a higher limit.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDb61e389f7aa64727bee6162cc8a77974"><enum>(2)</enum><header display-inline="yes-display-inline">Exempt employees</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idB929299A23864074B96042A51C764A85"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (3), for
purposes of this section, an employee who is exempt from overtime requirements
under section 13(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C.
213(a)(1)) shall be assumed to work 40 hours in each workweek.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE99C93AEB10548FA9111CC889930C936"><enum>(B)</enum><header display-inline="yes-display-inline">Shorter normal workweek</header><text display-inline="yes-display-inline">If the normal workweek of such an employee
is less than 40 hours, the employee shall earn paid sick time based upon that
normal workweek.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDb7f6d10d12994648be4353f88a5df056"><enum>(3)</enum><header display-inline="yes-display-inline">Dates of accrual and use</header><text display-inline="yes-display-inline">Employees shall begin to earn paid sick
time under this section at the commencement of their employment. An employee
shall be entitled to use the earned paid sick time beginning on the 60th
calendar day following commencement of the employee's employment. After that
60th calendar day, the employee may use the paid sick time as the time is
earned. An employer may, at the discretion of the employer, loan paid sick time
to an employee in advance of the earning of such time under this section by
such employee.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDf1632686b3464b4695882130b05fdf28"><enum>(4)</enum><header display-inline="yes-display-inline">Carryover</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id4B1DE93C1EF7416ABEBD277493D10865"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B),
paid sick time earned under this section shall carry over from 1 calendar year
to the next.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDC73533EBF0147A890F0E9F4D46CEAED"><enum>(B)</enum><header display-inline="yes-display-inline">Construction</header><text display-inline="yes-display-inline">This subtitle shall not be construed to
require an employer to permit an employee to accrue more than 56 hours of
earned paid sick time at a given time.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID007607096f1d4823a635feb481f20772"><enum>(5)</enum><header display-inline="yes-display-inline">Employers with existing
policies</header><text display-inline="yes-display-inline">Any employer with a
paid leave policy who makes available an amount of paid leave that is
sufficient to meet the requirements of this section and that may be used for
the same purposes and under the same conditions as the purposes and conditions
outlined in subsection (b) shall not be required to permit an employee to earn
additional paid sick time under this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3bac9cce9cab47959cdf2d66de29c7c2"><enum>(6)</enum><header display-inline="yes-display-inline">Construction</header><text display-inline="yes-display-inline">Nothing in this section shall be construed
as requiring financial or other reimbursement to an employee from an employer
upon the employee’s termination, resignation, retirement, or other separation
from employment for earned paid sick time that has not been used.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8d6b7c45321142a0a1552c3e28004560"><enum>(7)</enum><header display-inline="yes-display-inline">Reinstatement</header><text display-inline="yes-display-inline">If an employee is separated from employment
with an employer and is rehired, within 12 months after that separation, by the
same employer, the employer shall reinstate the employee's previously earned
paid sick time. The employee shall be entitled to use the earned paid sick time
and earn additional paid sick time at the recommencement of employment with the
employer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDd4d7f6ff09d547b89dff5e33c6733231"><enum>(8)</enum><header display-inline="yes-display-inline">Prohibition</header><text display-inline="yes-display-inline">An employer may not require, as a condition
of providing paid sick time under this subtitle, that the employee involved
search for or find a replacement worker to cover the hours during which the
employee is using paid sick time.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDC6D97C38C2A249A88103C177AEF5EF7F"><enum>(b)</enum><header display-inline="yes-display-inline">Uses</header><text display-inline="yes-display-inline">Paid sick time earned under this section
may be used by an employee for any of the following:</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID7261DA42825140088BF129FA6244B1C4"><enum>(1)</enum><text display-inline="yes-display-inline">An absence resulting from a physical or
mental illness, injury, or medical condition of the employee.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8F5124E8157B4F72A3809A4058F5E8E8"><enum>(2)</enum><text display-inline="yes-display-inline">An absence resulting from obtaining
professional medical diagnosis or care, or preventive medical care, for the
employee.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID7E538612B743435298CE62DE97B4144F"><enum>(3)</enum><text display-inline="yes-display-inline">An absence for the purpose of caring for a
child, a parent, a spouse, or any other individual related by blood or affinity
whose close association with the employee is the equivalent of a family
relationship, who—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID1545C92E29844BD597AC8096252D9180"><enum>(A)</enum><text display-inline="yes-display-inline">has any of the conditions or needs for
diagnosis or care described in paragraph (1) or (2); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID48AE148DBDDF46DF99945B38F8CA9B84"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of someone who is not a child,
is otherwise in need of care.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID46b6739536834be0b8b9a51c4dc3c518"><enum>(4)</enum><text display-inline="yes-display-inline">An absence resulting from domestic
violence, sexual assault, or stalking, if the time is to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDf268aba279d5453d867b262ccc31b151"><enum>(A)</enum><text display-inline="yes-display-inline">seek medical attention for the employee or
the employee’s child, parent, or spouse, or an individual related to the
employee as described in paragraph (3), to recover from physical or
psychological injury or disability caused by domestic violence, sexual assault,
or stalking;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID6dfdda57c9e54aed8607aa1c9784530e"><enum>(B)</enum><text display-inline="yes-display-inline">obtain or assist a related person described
in paragraph (3) in obtaining services from a victim services
organization;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID3894bd47fd5241a891973253e089f863"><enum>(C)</enum><text display-inline="yes-display-inline">obtain or assist a related person described
in paragraph (3) in obtaining psychological or other counseling;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDa1b3097b79434a60b8136adf19926760"><enum>(D)</enum><text display-inline="yes-display-inline">seek relocation; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDf9114f126bff49d0bf1b449ed30ce614"><enum>(E)</enum><text display-inline="yes-display-inline">take legal action, including preparing for
or participating in any civil or criminal legal proceeding related to or
resulting from domestic violence, sexual assault, or stalking.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID3F1E01B2DD084DA4BB3FAC190E2DBB2B"><enum>(c)</enum><header display-inline="yes-display-inline">Scheduling</header><text display-inline="yes-display-inline">An employee shall make a reasonable effort
to schedule a period of paid sick time under this subtitle in a manner that
does not unduly disrupt the operations of the employer.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID3FC03435381147128DC5A6EC4C0B868C"><enum>(d)</enum><header display-inline="yes-display-inline">Procedures</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDC9CFFCB859AC45BBBA81E883E9E3D4D6"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paid sick time shall be provided upon the
oral or written request of an employee. Such request shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID1020E04EB3CE45EC829DC81F34A5F361"><enum>(A)</enum><text display-inline="yes-display-inline">include the expected duration of the period
of such time;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID174CCA361EC54E56B6DA67EC1A1C031F"><enum>(B)</enum><text display-inline="yes-display-inline">in a case in which the need for such period
of time is foreseeable at least 7 days in advance of such period, be provided
at least 7 days in advance of such period; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID935A1E140B654BB79B89CA0508A7752F"><enum>(C)</enum><text display-inline="yes-display-inline">otherwise, be provided as soon as
practicable after the employee is aware of the need for such period.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID582C82BB8B254BFE82E6F88C83B9D095"><enum>(2)</enum><header display-inline="yes-display-inline">Certification in general</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID0AF3B532D16E44D09B2EB36613C3C33E"><enum>(A)</enum><header display-inline="yes-display-inline">Provision</header>
<clause commented="no" display-inline="no-display-inline" id="id9D49D55072614F41BC541AF88D329C21"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subject to subparagraph (C), an employer
may require that a request for paid sick time under this section for a purpose
described in paragraph (1), (2), or (3) of subsection (b) be supported by a
certification issued by the health care provider of the eligible employee or of
an individual described in subsection (b)(3), as appropriate, if the period of
such time covers more than 3 consecutive workdays.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID6C0965C691054589B21F902E4314940A"><enum>(ii)</enum><header display-inline="yes-display-inline">Timeliness</header><text display-inline="yes-display-inline">The employee shall provide a copy of such
certification to the employer in a timely manner, not later than 30 days after
the first day of the period of time. The employer shall not delay the
commencement of the period of time on the basis that the employer has not yet
received the certification.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0DFDC5B8BA6A4C9381FFAF03092F97CE"><enum>(B)</enum><header display-inline="yes-display-inline">Sufficient certification</header>
<clause commented="no" display-inline="no-display-inline" id="ID6E3FB4A73D9845888AF102E6195880DE"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A certification provided under subparagraph
(A) shall be sufficient if it states—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID16E61928FF304C81A56C61792D52B4E6"><enum>(I)</enum><text display-inline="yes-display-inline">the date on which the period of time will
be needed;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID076517204C474C6484E4974B80111484"><enum>(II)</enum><text display-inline="yes-display-inline">the probable duration of the period of
time;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID554ED68AD9C241DE9694ED95449A411F"><enum>(III)</enum><text display-inline="yes-display-inline">the appropriate medical facts within the
knowledge of the health care provider regarding the condition involved, subject
to clause (ii); and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID30509F7AE332431A9B99316BEBA0D817"><enum>(IV)</enum><item commented="no" display-inline="yes-display-inline" id="IDA22F81F20C634110B82FDEDDCED0D4B4"><enum>(aa)</enum><text display-inline="yes-display-inline">for purposes of paid sick time under
subsection (b)(1), a statement that absence from work is medically
necessary;</text>
</item><item commented="no" display-inline="no-display-inline" id="ID0958346F2AB549609F0D3E99EFC9C78E" indent="up1"><enum>(bb)</enum><text display-inline="yes-display-inline">for purposes of such time under subsection
(b)(2), the dates on which testing for a medical diagnosis or care is expected
to be given and the duration of such testing or care; and</text>
</item><item commented="no" display-inline="no-display-inline" id="ID45C792002C4448AAA8450C0CCDADA205" indent="up1"><enum>(cc)</enum><text display-inline="yes-display-inline">for purposes of such time under subsection
(b)(3), in the case of time to care for someone who is not a child, a statement
that care is needed for an individual described in such subsection, and an
estimate of the amount of time that such care is needed for such
individual.</text>
</item></subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID97E0B4D234AC4BE195EC189895AE0DBA"><enum>(ii)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">In issuing a certification under
subparagraph (A), a health care provider shall make reasonable efforts to limit
the medical facts described in clause (i)(III) that are disclosed in the
certification to the minimum necessary to establish a need for the employee to
utilize paid sick time.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDCAFBA567E3A448C09DCD6E96E1D57E29"><enum>(C)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">Regulations prescribed under section 253
shall specify the manner in which an employee who does not have health
insurance shall provide a certification for purposes of this paragraph.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID54B32C1472064F6E9229ABBDE3C39D9B"><enum>(D)</enum><header display-inline="yes-display-inline">Confidentiality and nondisclosure</header>
<clause commented="no" display-inline="no-display-inline" id="ID46743ECFFF5B4BED956AE6A7B5EB1F3A"><enum>(i)</enum><header display-inline="yes-display-inline">Protected health information</header><text display-inline="yes-display-inline">Nothing in this subtitle shall be construed
to require a health care provider to disclose information in violation of
<external-xref legal-doc="act" parsable-cite="SSA/1177">section
1177</external-xref> of the <act-name parsable-cite="SSA">Social Security
Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/1320d-6">42 U.S.C. 1320d–6</external-xref>) or the
regulations promulgated pursuant to section 264(c) of the Health Insurance
Portability and Accountability Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/42/1320d-2 note">42 U.S.C. 1320d–2
note</external-xref>).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID0B5605E3DE6B45EFB5875D952965D527"><enum>(ii)</enum><header display-inline="yes-display-inline">Health information records</header><text display-inline="yes-display-inline">If an employer possesses health information
about an employee or an employee’s child, parent, spouse or other individual
described in subsection (b)(3), such information shall—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID660B905D6ADB4FD7BFC05ADB5BDDA1C6"><enum>(I)</enum><text display-inline="yes-display-inline">be maintained on a separate form and in a
separate file from other personnel information;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDB755BD9ADBD5489DB4A31F8C6B904096"><enum>(II)</enum><text display-inline="yes-display-inline">be treated as a confidential medical
record; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID4E0F9FC02DFC49039E635D8B11825AF9"><enum>(III)</enum><text display-inline="yes-display-inline">not be disclosed except to the affected
employee or with the permission of the affected employee.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA99ECDD71C534181B88C5C70DF9DBFBB"><enum>(3)</enum><header display-inline="yes-display-inline">Certification in the case of domestic
violence, sexual assault, or stalking</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id27529B7BE5DF46D5A3A9E82B3312447C"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">An employer may require that a request for
paid sick time under this section for a purpose described in subsection (b)(4)
be supported by 1 of the following forms of documentation:</text>
<clause commented="no" display-inline="no-display-inline" id="idFBDAD70512AA47368E49A3AD97CD4F99"><enum>(i)</enum><text display-inline="yes-display-inline">A police report indicating that the
employee, or a member of the employee's family described in subsection (b)(4),
was a victim of domestic violence, sexual assault, or stalking.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id53491F0AB9414AD5BF982E8086804CEE"><enum>(ii)</enum><text display-inline="yes-display-inline">A court order protecting or separating the
employee or a member of the employee's family described in subsection (b)(4)
from the perpetrator of an act of domestic violence, sexual assault, or
stalking, or other evidence from the court or prosecuting attorney that the
employee or a member of the employee's family described in subsection (b)(4)
has appeared in court or is scheduled to appear in court in a proceeding
related to domestic violence, sexual assault, or stalking.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id893F127C27AD4FB4B49F106614F5DAC2"><enum>(iii)</enum><text display-inline="yes-display-inline">Other documentation signed by an employee
or volunteer working for a victim services organization, an attorney, a police
officer, a medical professional, a social worker, an antiviolence counselor, or
a member of the clergy, affirming that the employee or a member of the
employee's family described in subsection (b)(4) is a victim of domestic
violence, sexual assault, or stalking.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id59A55FF8BB8C4ECA8711B235AE75A146"><enum>(B)</enum><header display-inline="yes-display-inline">Requirements</header><text display-inline="yes-display-inline">The requirements of paragraph (2) shall
apply to certifications under this paragraph, except that—</text>
<clause commented="no" display-inline="no-display-inline" id="id137348237821480A809D7702CD977D40"><enum>(i)</enum><text display-inline="yes-display-inline">subclauses (III) and (IV) of subparagraph
(B)(i) and subparagraph (B)(ii) of such paragraph shall not apply;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id06F56EFB1608452C91DAE67DB74581A5"><enum>(ii)</enum><text display-inline="yes-display-inline">the certification shall state the reason
that the leave is required with the facts to be disclosed limited to the
minimum necessary to establish a need for the employee to be absent from work,
and the employee shall not be required to explain the details of the domestic
violence, sexual assault, or stalking involved; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id7EBF3B71C4ED43CDBC18E2C58FA0237E"><enum>(iii)</enum><text display-inline="yes-display-inline">with respect to confidentiality under
subparagraph (D) of such paragraph, any information provided to the employer
under this paragraph shall be confidential, except to the extent that any
disclosure of such information is—</text>
<subclause commented="no" display-inline="no-display-inline" id="id282A5EE7B00044AEAA277659628E29C6"><enum>(I)</enum><text display-inline="yes-display-inline">requested or consented to in writing by the
employee; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idEFA1BA7789164B0098AEE86DAF79A394"><enum>(II)</enum><text display-inline="yes-display-inline">otherwise required by applicable Federal or
State law.</text>
</subclause></clause></subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID6145AAE3FB9D4D948EEEE50D65E04985" section-type="subsequent-section"><enum>246.</enum><header display-inline="yes-display-inline">Posting requirement</header>
<subsection commented="no" display-inline="no-display-inline" id="ID3848EE4DF7594CFE82D26AA156AFB5C8"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Each employer shall post and keep posted a
notice, to be prepared or approved in accordance with procedures specified in
regulations prescribed under section 253, setting forth excerpts from, or
summaries of, the pertinent provisions of this subtitle including—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDB5652B089B294B51B971658703A5EA9F"><enum>(1)</enum><text display-inline="yes-display-inline">information describing paid sick time
available to employees under this subtitle;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5C2F570C288E4DD0B9B738149E9D4FB3"><enum>(2)</enum><text display-inline="yes-display-inline">information pertaining to the filing of an
action under this subtitle;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6A7327FBC33E48E19ABA0F5867807063"><enum>(3)</enum><text display-inline="yes-display-inline">the details of the notice requirement for a
foreseeable period of time under section 245(d)(1)(B); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8F560869FBD84A54BDF740DA231E418C"><enum>(4)</enum><text display-inline="yes-display-inline">information that describes—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idFA7453AA66F543928BBDBB31D0D10346"><enum>(A)</enum><text display-inline="yes-display-inline">the protections that an employee has in
exercising rights under this subtitle; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9F9774B4616C4A54BD0E902D01782EB9"><enum>(B)</enum><text display-inline="yes-display-inline">how the employee can contact the Secretary
(or other appropriate authority as described in section 248) if any of the
rights are violated.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID602ECFB6F4694A87A47F96FDF0271076"><enum>(b)</enum><header display-inline="yes-display-inline">Location</header><text display-inline="yes-display-inline">The notice described under subsection (a)
shall be posted—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID4D94E4E8EF714405952E75133939AA63"><enum>(1)</enum><text display-inline="yes-display-inline">in conspicuous places on the premises of
the employer, where notices to employees (including applicants) are customarily
posted; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3DFDF9341EA146639E85354FDB8B782F"><enum>(2)</enum><text display-inline="yes-display-inline">in employee handbooks.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID3968CACBF806433BBF71D514EB7672B3"><enum>(c)</enum><header display-inline="yes-display-inline">Violation; penalty</header><text display-inline="yes-display-inline">Any employer who willfully violates the
posting requirements of this section shall be subject to a civil fine in an
amount not to exceed $100 for each separate offense.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDB6C3DBF5F0544E6E966E948C6B93FB3B" section-type="subsequent-section"><enum>247.</enum><header display-inline="yes-display-inline">Prohibited acts</header>
<subsection commented="no" display-inline="no-display-inline" id="ID9F966291FF6D45EC8757E7DE27C19C88"><enum>(a)</enum><header display-inline="yes-display-inline">Interference with rights</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID5142681D0F4F4D15B794A61FDC550B74"><enum>(1)</enum><header display-inline="yes-display-inline">Exercise of rights</header><text display-inline="yes-display-inline">It shall be unlawful for any employer to
interfere with, restrain, or deny the exercise of, or the attempt to exercise,
any right provided under this subtitle, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDe31adea3922844399333fec3c3f3ca8a"><enum>(A)</enum><text display-inline="yes-display-inline">discharging or discriminating against
(including retaliating against) any individual, including a job applicant, for
exercising, or attempting to exercise, any right provided under this
subtitle;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID064908a491bd47ffa7497b1122c0d097"><enum>(B)</enum><text display-inline="yes-display-inline">using the taking of paid sick time under
this subtitle as a negative factor in an employment action, such as hiring,
promotion, or a disciplinary action; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDf20cb3ea4ead48ce9f1224df9dd63286"><enum>(C)</enum><text display-inline="yes-display-inline">counting the paid sick time under a
no-fault attendance policy or any other absence control policy.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID68B434DEFA4D4799A941989C5D18776A"><enum>(2)</enum><header display-inline="yes-display-inline">Discrimination</header><text display-inline="yes-display-inline">It shall be unlawful for any employer to
discharge or in any other manner discriminate against (including retaliating
against) any individual, including a job applicant, for opposing any practice
made unlawful by this subtitle.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID141BC5A368234D55ABF0077C567EAC02"><enum>(b)</enum><header display-inline="yes-display-inline">Interference with proceedings or
inquiries</header><text display-inline="yes-display-inline">It shall be
unlawful for any person to discharge or in any other manner discriminate
against (including retaliating against) any individual, including a job
applicant, because such individual—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDB92086DE9E8F4DA5966F26D435791671"><enum>(1)</enum><text display-inline="yes-display-inline">has filed an action, or has instituted or
caused to be instituted any proceeding, under or related to this
subtitle;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1F3F44EBC5224DC689CE09D48151F4A2"><enum>(2)</enum><text display-inline="yes-display-inline">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>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0280BF26C7174E1690CE9BF97397AAB3"><enum>(3)</enum><text display-inline="yes-display-inline">has testified, or is about to testify, in
any inquiry or proceeding relating to any right provided under this
subtitle.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id660AADEADE8848CFA50C1EB5905D067D"><enum>(c)</enum><header display-inline="yes-display-inline">Construction</header><text display-inline="yes-display-inline">Nothing in this section shall be construed
to state or imply that the scope of the activities prohibited by section 105 of
the Family and Medical Leave Act of 1993 (29 U.S.C. 2615) is less than the
scope of the activities prohibited by this section.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDC885427648414BEDB19DA0938B7CBF84" section-type="subsequent-section"><enum>248.</enum><header display-inline="yes-display-inline">Enforcement authority</header>
<subsection commented="no" display-inline="no-display-inline" id="ID5C6914CE3F3943E49BE4571F1175FB05"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDE6853BFA3E8246A997201188DE7CB1DB"><enum>(1)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">In this subsection:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID5877B08B3FC64765AEA6D84E58701120"><enum>(A)</enum><text display-inline="yes-display-inline">the term <term>employee</term> means an
employee described in subparagraph (A) or (B) of section 244(3); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDBF819A01C22249EF94CC91F9E2EED602"><enum>(B)</enum><text display-inline="yes-display-inline">the term <term>employer</term> means an
employer described in subclause (I) or (II) of section 244(4)(A)(i).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2034732D704D4A65B0DE3144EB193038"><enum>(2)</enum><header display-inline="yes-display-inline">Investigative authority</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDC10CA86916244D60935DB4F4A53972B4"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">To ensure compliance with the provisions of
this subtitle, or any regulation or order issued under this subtitle, the
Secretary shall have, subject to subparagraph (C), the investigative authority
provided under section 11(a) of the Fair Labor Standards Act of 1938
(<external-xref legal-doc="usc" parsable-cite="usc/29/211(a)">29 U.S.C.
211(a)</external-xref>), with respect to employers, employees, and other
individuals affected.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDE201194969A247E0B63CD8873C92F453"><enum>(B)</enum><header display-inline="yes-display-inline">Obligation to keep and preserve
records</header><text display-inline="yes-display-inline">An employer shall
make, keep, and preserve records pertaining to compliance with this subtitle in
accordance with section 11(c) of the Fair Labor Standards Act of 1938
(<external-xref legal-doc="usc" parsable-cite="usc/29/211(c)">29 U.S.C.
211(c)</external-xref>) and in accordance with regulations prescribed by the
Secretary.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID9CAFDB6B199D4D129994DF10911C50B8"><enum>(C)</enum><header display-inline="yes-display-inline">Required submissions generally limited to
an annual basis</header><text display-inline="yes-display-inline">The Secretary
shall not require, under the authority of this paragraph, an employer to submit
to the Secretary any books or records more than once during any 12-month
period, unless the Secretary has reasonable cause to believe there may exist a
violation of this subtitle or any regulation or order issued pursuant to this
subtitle, or is investigating a charge pursuant to paragraph (4).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID3D3921A8BEF1497B9E9472972F1B84A8"><enum>(D)</enum><header display-inline="yes-display-inline">Subpoena authority</header><text display-inline="yes-display-inline">For the purposes of any investigation
provided for in this paragraph, the Secretary shall have the subpoena authority
provided for under section 9 of the Fair Labor Standards Act of 1938
(<external-xref legal-doc="usc" parsable-cite="usc/29/209">29 U.S.C.
209</external-xref>).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDD36F7C6C67BE4BE18338EE47D7E683DF"><enum>(3)</enum><header display-inline="yes-display-inline">Civil action by employees or
individuals</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDE88045C1DDE94507BBB055FF6FE2F354"><enum>(A)</enum><header display-inline="yes-display-inline">Right of action</header><text display-inline="yes-display-inline">An action to recover the damages or
equitable relief prescribed in subparagraph (B) may be maintained against any
employer in any Federal or State court of competent jurisdiction by one or more
employees or individuals or their representative for and on behalf of—</text>
<clause commented="no" display-inline="no-display-inline" id="ID8786F1E02BAC43F5B53D22832F73194F"><enum>(i)</enum><text display-inline="yes-display-inline">the employees or individuals; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDD4633590E982425CB606CFAD901CF946"><enum>(ii)</enum><text display-inline="yes-display-inline">the employees or individuals and others
similarly situated.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7915A33A72EB49DBA8CB63F3258016EF"><enum>(B)</enum><header display-inline="yes-display-inline">Liability</header><text display-inline="yes-display-inline">Any employer who violates section 247
(including a violation relating to rights provided under section 245) shall be
liable to any employee or individual affected—</text>
<clause commented="no" display-inline="no-display-inline" id="IDEC181CEB227F470DAC5F9F6F530DCAAD"><enum>(i)</enum><text display-inline="yes-display-inline">for damages equal to—</text>
<subclause commented="no" display-inline="no-display-inline" id="IDBA7B860F1AEF453197097B4DE907018F"><enum>(I)</enum><text display-inline="yes-display-inline">the amount of—</text>
<item commented="no" display-inline="no-display-inline" id="IDFF417E4512604C14BE2B012681ECB64B"><enum>(aa)</enum><text display-inline="yes-display-inline">any wages, salary, employment benefits, or
other compensation denied or lost by reason of the violation; or</text>
</item><item commented="no" display-inline="no-display-inline" id="ID99FAC3C41F6749F8BBC11BFBB2B235EE"><enum>(bb)</enum><text display-inline="yes-display-inline">in a case in which wages, salary,
employment benefits, or other compensation have not been denied or lost, any
actual monetary losses sustained as a direct result of the violation up to a
sum equal to 56 hours of wages or salary for the employee or individual;</text>
</item></subclause><subclause commented="no" display-inline="no-display-inline" id="IDCECA62E566C1427FA3DF00B4ADB42669"><enum>(II)</enum><text display-inline="yes-display-inline">the interest on the amount described in
subclause (I) calculated at the prevailing rate; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID1EA328A4CE5A47CD89ABFDE83CDD5F15"><enum>(III)</enum><text display-inline="yes-display-inline">an additional amount as liquidated damages;
and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID686A89522DA647C29DE64FBBBA030125"><enum>(ii)</enum><text display-inline="yes-display-inline">for such equitable relief as may be
appropriate, including employment, reinstatement, and promotion.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDC44CF17118CD4D56835EFB362DB59117"><enum>(C)</enum><header display-inline="yes-display-inline">Fees
and costs</header><text display-inline="yes-display-inline">The court in an
action under this paragraph shall, in addition to any judgment awarded to the
plaintiff, allow a reasonable attorney’s fee, reasonable expert witness fees,
and other costs of the action to be paid by the defendant.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID413F6831BB044B36A6C3895820C2ED30"><enum>(4)</enum><header display-inline="yes-display-inline">Action by the Secretary</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID98F63999AC4B4C5AA37A3AAB27875FC2"><enum>(A)</enum><header display-inline="yes-display-inline">Administrative action</header><text display-inline="yes-display-inline">The Secretary shall receive, investigate,
and attempt to resolve complaints of violations of section 247 (including a
violation relating to rights provided under section 245) in the same manner
that the Secretary receives, investigates, and attempts to resolve complaints
of violations of sections 6 and 7 of the Fair Labor Standards Act of 1938
(<external-xref legal-doc="usc" parsable-cite="usc/29/206">29 U.S.C.
206</external-xref> and 207).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDE49D4C4EA8294912BD19E49E80A801F5"><enum>(B)</enum><header display-inline="yes-display-inline">Civil action</header><text display-inline="yes-display-inline">The Secretary may bring an action in any
court of competent jurisdiction to recover the damages described in paragraph
(3)(B)(i).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID37E547AFA0764A699F09DDEDD694511D"><enum>(C)</enum><header display-inline="yes-display-inline">Sums
recovered</header><text display-inline="yes-display-inline">Any sums recovered
by the Secretary pursuant to subparagraph (B) shall be held in a special
deposit account and shall be paid, on order of the Secretary, directly to each
employee or individual affected. Any such sums not paid to an employee or
individual affected because of inability to do so within a period of 3 years
shall be deposited into the Treasury of the United States as miscellaneous
receipts.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID046015D7137942DE86E5D92CBDF3390E"><enum>(5)</enum><header display-inline="yes-display-inline">Limitation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDFAC87278748C43D99C2420BDAD318152"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), an
action may be brought under paragraph (3), (4), or (6) not later than 2 years
after the date of the last event constituting the alleged violation for which
the action is brought.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDBBB407F97CF9426FA71B802D3204DB03"><enum>(B)</enum><header display-inline="yes-display-inline">Willful violation</header><text display-inline="yes-display-inline">In the case of an action brought for a
willful violation of section 247 (including a willful violation relating to
rights provided under section 245), such action may be brought within 3 years
of the date of the last event constituting the alleged violation for which such
action is brought.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDF1ABB1FE86914E11B9F112CBDA7C228D"><enum>(C)</enum><header display-inline="yes-display-inline">Commencement</header><text display-inline="yes-display-inline">In determining when an action is commenced
under paragraph (3), (4), or (6) for the purposes of this paragraph, it shall
be considered to be commenced on the date when the complaint is filed.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID55F06BF34B69499C8D40D657491A80EC"><enum>(6)</enum><header display-inline="yes-display-inline">Action for injunction by
Secretary</header><text display-inline="yes-display-inline">The district courts
of the United States shall have jurisdiction, for cause shown, in an action
brought by the Secretary—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID5753C9E06E6941A6B6CBBA7801763B29"><enum>(A)</enum><text display-inline="yes-display-inline">to restrain violations of section 247
(including a violation relating to rights provided under section 245),
including the restraint of any withholding of payment of wages, salary,
employment benefits, or other compensation, plus interest, found by the court
to be due to employees or individuals eligible under this subtitle; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID4940F05B300A4DDAB6411FC75B642750"><enum>(B)</enum><text display-inline="yes-display-inline">to award such other equitable relief as may
be appropriate, including employment, reinstatement, and promotion.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4975A384EF92401AA7634931922BB312"><enum>(7)</enum><header display-inline="yes-display-inline">Solicitor of Labor</header><text display-inline="yes-display-inline">The Solicitor of Labor may appear for and
represent the Secretary on any litigation brought under paragraph (4) or
(6).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID748F0004432946BC84B20C7A18633882"><enum>(8)</enum><header display-inline="yes-display-inline">Government Accountability Office and
Library of Congress</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this
subsection, in the case of the Government Accountability Office and the Library
of Congress, the authority of the Secretary of Labor under this subsection
shall be exercised respectively by the Comptroller General of the United States
and the Librarian of Congress.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDD56E1814D1FA4A1BBDF0A1D5801D3673"><enum>(b)</enum><header display-inline="yes-display-inline">Employees covered by Congressional
Accountability Act of 1995</header><text display-inline="yes-display-inline">The powers, remedies, and procedures
provided in the Congressional Accountability Act of 1995 (<external-xref legal-doc="usc" parsable-cite="usc/2/1301">2 U.S.C. 1301</external-xref> et
seq.) to the Board (as defined in section 101 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/2/1301">2 U.S.C. 1301</external-xref>)), or
any person, alleging a violation of section 202(a)(1) of that Act
(<external-xref legal-doc="usc" parsable-cite="usc/42/1312(a)(1)">2 U.S.C.
1312(a)(1)</external-xref>) shall be the powers, remedies, and procedures this
subtitle provides to that Board, or any person, alleging an unlawful employment
practice in violation of this subtitle against an employee described in section
244(3)(C).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID184C4A90706E4249AA2CF13B8CE43FF6"><enum>(c)</enum><header display-inline="yes-display-inline">Employees covered by chapter
<enum-in-header>5</enum-in-header> of title <enum-in-header>3</enum-in-header>,
United States Code</header><text display-inline="yes-display-inline">The
powers, remedies, and procedures provided in chapter 5 of title 3, United
States Code, to the President, the Merit Systems Protection Board, or any
person, alleging a violation of section 412(a)(1) of that title, shall be the
powers, remedies, and procedures this subtitle provides to the President, that
Board, or any person, respectively, alleging an unlawful employment practice in
violation of this subtitle against an employee described in section
244(3)(D).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDB78A412792184A0AA0CD070EDB5E123D"><enum>(d)</enum><header display-inline="yes-display-inline">Employees covered by chapter
<enum-in-header>63 </enum-in-header>of title
<enum-in-header>5,</enum-in-header> United States Code</header><text display-inline="yes-display-inline">The powers, remedies, and procedures
provided in title 5, United States Code, to an employing agency, provided in
chapter 12 of that title to the Merit Systems Protection Board, or provided in
that title to any person, alleging a violation of chapter 63 of that title,
shall be the powers, remedies, and procedures this subtitle provides to that
agency, that Board, or any person, respectively, alleging an unlawful
employment practice in violation of this subtitle against an employee described
in section 244(3)(E).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID967773c3c0a349518d1edbb7d85930fc"><enum>(e)</enum><header display-inline="yes-display-inline">Remedies for State employees</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDf64975e19a4045b5b91e9a2e23c0fed8"><enum>(1)</enum><header display-inline="yes-display-inline">Waiver of sovereign immunity</header><text display-inline="yes-display-inline">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 of that program or activity under
this subtitle for equitable, legal, or other relief authorized under this
subtitle.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDac7c5af32f41453e9a2f38160885f829"><enum>(2)</enum><header display-inline="yes-display-inline">Official capacity</header><text display-inline="yes-display-inline">An official of a State may be sued in the
official capacity of the official by any employee who has complied with the
procedures under subsection (a)(3), for injunctive relief that is authorized
under this subtitle. In such a suit the court may award to the prevailing party
those costs authorized by section 722 of the Revised Statutes (42 U.S.C.
1988).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id64E6DE377D994DADB376085D47E6F02C"><enum>(3)</enum><header display-inline="yes-display-inline">Applicability</header><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="ID6021d226efc841789187b22516768daf"><enum>(4)</enum><header display-inline="yes-display-inline">Definition of program or
activity</header><text display-inline="yes-display-inline">In this subsection,
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>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID9a0cb34b482540a7b61a017460964002" section-type="subsequent-section"><enum>249.</enum><header display-inline="yes-display-inline">Collection of data on paid sick time and
further study</header>
<subsection commented="no" display-inline="no-display-inline" id="ID85a215389a134f32ba49ca7813cbfaf7"><enum>(a)</enum><header display-inline="yes-display-inline">Compilation of information</header><text display-inline="yes-display-inline">Effective 90 days after the date of
enactment of this Act, the Commissioner of Labor Statistics shall annually
compile information on the following:</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID7865f3635ac24fa89157ab171d16aada"><enum>(1)</enum><text display-inline="yes-display-inline">The number of employees who used paid sick
time.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID08e3e7ebe28b444ea36ef5898b27260d"><enum>(2)</enum><text display-inline="yes-display-inline">The number of hours of paid sick time
used.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9D508C7E575A4FE5AB8D2DDF62438EAC"><enum>(3)</enum><text display-inline="yes-display-inline">The number of employees who used paid sick
time for absences necessary due to domestic violence, sexual assault, or
stalking.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDb820a6fa5f614947a57d0a5b7988b7ed"><enum>(4)</enum><text display-inline="yes-display-inline">The demographic characteristics of
employees who were eligible for and who used paid sick time.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID976183F5363847F294C5D84E92EE1ABF"><enum>(b)</enum><header display-inline="yes-display-inline">GAO study</header>
<paragraph commented="no" display-inline="no-display-inline" id="idC7A1C8F612E04897BA0B3E903611AC54"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Comptroller General of the United
States shall annually conduct a study to determine the following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDA54D9B1B2F79476299FFFCF7E4A7B85D"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="id435429A0EB9F42159E09371CABB0F0CE"><enum>(i)</enum><text display-inline="yes-display-inline">The number of days employees used paid sick
time and the reasons for the use.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID4E092F8EBC8B4C0CAE64D05AAFC77AB9" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">The number of employees who used the paid
sick time for periods of time covering more than 3 consecutive workdays.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID9AAFB2F9688345068FA754207DE36964"><enum>(B)</enum><text display-inline="yes-display-inline">The cost and benefits to employers of
implementing the paid sick time policies.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0C064648185E402ABAD83FD77F275ECB"><enum>(C)</enum><text display-inline="yes-display-inline">The cost to employees of providing
certification to obtain the paid sick time.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDC5862D2A7E984879911ABCBC3170512E"><enum>(D)</enum><text display-inline="yes-display-inline">The benefits of the paid sick time to
employees and their family members, including effects on employees' ability to
care for their family members or to provide for their own health needs.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID49CBDDF3306C40F3872D3CB97BE8E062"><enum>(E)</enum><text display-inline="yes-display-inline">Whether the paid sick time affected
employees' ability to sustain an adequate income while meeting needs of the
employees and their family members.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID3A22D53653C74A6D97D398D641017284"><enum>(F)</enum><text display-inline="yes-display-inline">Whether employers who administered paid
sick time policies prior to the date of enactment of this Act were affected by
the provisions of this subtitle.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID2697C1393A514ABDAFE5AA1A240D8A1F"><enum>(G)</enum><text display-inline="yes-display-inline">Whether other types of leave were affected
by this subtitle.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDE07FDAD615E7424A8373671D6DE5DF51"><enum>(H)</enum><text display-inline="yes-display-inline">Whether paid sick time affected retention
and turnover and costs of presenteeism.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE3FFD29EE40249BE9F7559697CD20963"><enum>(I)</enum><text display-inline="yes-display-inline">Whether the paid sick time increased the
use of less costly preventive medical care and lowered the use of emergency
room care.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCBC99C896C5F4024B4D1CC02C6CA7B0D"><enum>(J)</enum><text display-inline="yes-display-inline">Whether the paid sick time reduced the
number of children sent to school when the children were sick.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDB00A71517A7B4EE0BC22259B07984DEF"><enum>(2)</enum><header display-inline="yes-display-inline">Aggregating data</header><text display-inline="yes-display-inline">The data collected under subparagraphs (A)
and (D) of paragraph (1) shall be aggregated by gender, race, disability,
earnings level, age, marital status, family type, including parental status,
and industry.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDCE796606AE4B48AFA585ABC521686F9C"><enum>(3)</enum><header display-inline="yes-display-inline">Reports</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID9C868FB084254C8F9584B7BEFAEBB34E"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Not later than 18 months after the date of
enactment of this Act, the Comptroller General of the United States shall
prepare and submit a report to the appropriate committees of Congress
concerning the results of the study conducted pursuant to paragraph (1) and the
data aggregated under paragraph (2).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID4D1820416A8141D2B6BBA72DEAD6A3EA"><enum>(B)</enum><header display-inline="yes-display-inline">Followup report</header><text display-inline="yes-display-inline">Not later than 5 years after the date of
enactment of this Act, the Comptroller General of the United States shall
prepare and submit a followup report to the appropriate committees of Congress
concerning the results of the study conducted pursuant to paragraph (1) and the
data aggregated under paragraph (2).</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="IDC3ADEEA12BC54EB0817C476146CB5B32" section-type="subsequent-section"><enum>250.</enum><header display-inline="yes-display-inline">Effect on other laws</header>
<subsection commented="no" display-inline="no-display-inline" id="ID99834C16ADEE44A4A4F9FA42FAAF15E1"><enum>(a)</enum><header display-inline="yes-display-inline">Federal and State antidiscrimination
laws</header><text display-inline="yes-display-inline">Nothing in this subtitle
shall be construed to modify or affect any Federal or State law prohibiting
discrimination on the basis of race, religion, color, national origin, sex,
age, or disability.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID009D332A14AF46D6ACBD549362C85338"><enum>(b)</enum><header display-inline="yes-display-inline">State and local laws</header><text display-inline="yes-display-inline">Nothing in this subtitle shall be construed
to supersede (including preempting) any provision of any State or local law
that provides greater paid sick time or leave rights (including greater paid
sick time or leave, or greater coverage of those eligible for paid sick time or
leave) than the rights established under this subtitle.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDB97AEBABA51C4DB7A8E851E6FADCC5DB" section-type="subsequent-section"><enum>251.</enum><header display-inline="yes-display-inline">Effect on existing employment
benefits</header>
<subsection commented="no" display-inline="no-display-inline" id="ID0199F9BBAD67461AA2DB59685B3995D7"><enum>(a)</enum><header display-inline="yes-display-inline">More protective</header><text display-inline="yes-display-inline">Nothing in this subtitle shall be construed
to diminish the obligation of an employer to comply with any contract,
collective bargaining agreement, or any employment benefit program or plan that
provides greater paid sick leave or other leave rights to employees or
individuals than the rights established under this subtitle.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID63C959D4D690437A9BA7A0737E288C53"><enum>(b)</enum><header display-inline="yes-display-inline">Less protective</header><text display-inline="yes-display-inline">The rights established for employees under
this subtitle shall not be diminished by any contract, collective bargaining
agreement, or any employment benefit program or plan.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="ID59ECD1D07F214E36B062C2A84AD6238B" section-type="subsequent-section"><enum>252.</enum><header display-inline="yes-display-inline">Encouragement of more generous leave
policies</header><text display-inline="no-display-inline">Nothing in this
subtitle shall be construed to discourage employers from adopting or retaining
leave policies more generous than policies that comply with the requirements of
this subtitle.</text>
</section><section commented="no" display-inline="no-display-inline" id="IDCC151902A41049ABAB3044EE880B6CBE" section-type="subsequent-section"><enum>253.</enum><header display-inline="yes-display-inline">Regulations</header>
<subsection commented="no" display-inline="no-display-inline" id="IDBC5B770A6317401BB4A75EBCF169BD82"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDE45E8A1885094093B489A2BA1640DB80"><enum>(1)</enum><header display-inline="yes-display-inline">Authority</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), not
later than 180 days after the date of enactment of this Act, the Secretary
shall prescribe such regulations as are necessary to carry out this subtitle
with respect to employees described in subparagraph (A) or (B) of section
244(3) and other individuals affected by employers described in subclause (I)
or (II) of section 244(4)(A)(i).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID64886B6DA75248E6810F0BE243C6504B"><enum>(2)</enum><header display-inline="yes-display-inline">Government Accountability Office; Library
of Congress</header><text display-inline="yes-display-inline">The Comptroller
General of the United States and the Librarian of Congress shall prescribe the
regulations with respect to employees of the Government Accountability Office
and the Library of Congress, respectively, and other individuals affected by
the Comptroller General of the United States and the Librarian of Congress,
respectively.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDBFF65889659E4B1FABF558C47324919B"><enum>(b)</enum><header display-inline="yes-display-inline">Employees covered by Congressional
Accountability Act of 1995</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID6E4E24A4B25B4123B2960FB8E3483A49"><enum>(1)</enum><header display-inline="yes-display-inline">Authority</header><text display-inline="yes-display-inline">Not later than 120 days after the date of
enactment of this Act, the Board of Directors of the Office of Compliance shall
prescribe (in accordance with section 304 of the Congressional Accountability
Act of 1995 (<external-xref legal-doc="usc" parsable-cite="usc/2/1384">2 U.S.C.
1384</external-xref>)) such regulations as are necessary to carry out this
subtitle with respect to employees described in section 244(3)(C) and other
individuals affected by employers described in section
244(4)(A)(i)(III).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID11012002D8E648E3A333D5228C109FAB"><enum>(2)</enum><header display-inline="yes-display-inline">Agency regulations</header><text display-inline="yes-display-inline">The regulations prescribed under paragraph
(1) shall be the same as substantive regulations promulgated by the Secretary
to carry out this subtitle except insofar as the Board may determine, for good
cause shown and stated together with the regulations prescribed under paragraph
(1), that a modification of such regulations would be more effective for the
implementation of the rights and protections involved under this
section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDA310A90AB2224F9590CCFC3A6E14FDA2"><enum>(c)</enum><header display-inline="yes-display-inline">Employees covered by chapter
<enum-in-header>5</enum-in-header> of title <enum-in-header>3</enum-in-header>,
United States Code</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDF0BA0C12330F45D895E6B7A1E740EA35"><enum>(1)</enum><header display-inline="yes-display-inline">Authority</header><text display-inline="yes-display-inline">Not later than 120 days after the date of
enactment of this Act, the President (or the designee of the President) shall
prescribe such regulations as are necessary to carry out this subtitle with
respect to employees described in section 244(3)(D) and other individuals
affected by employers described in section 244(4)(A)(i)(IV).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDC953F8BA939F4BC9A039FE109AFE76BD"><enum>(2)</enum><header display-inline="yes-display-inline">Agency regulations</header><text display-inline="yes-display-inline">The regulations prescribed under paragraph
(1) shall be the same as substantive regulations promulgated by the Secretary
to carry out this subtitle except insofar as the President (or designee) may
determine, for good cause shown and stated together with the regulations
prescribed under paragraph (1), that a modification of such regulations would
be more effective for the implementation of the rights and protections involved
under this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID9981BF42ABC54D2BA173A313F13F044B"><enum>(d)</enum><header display-inline="yes-display-inline">Employees covered by chapter
<enum-in-header>63</enum-in-header> of title
<enum-in-header>5</enum-in-header>, United States Code</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDE5853E64BF08462BBDC9EB53CB464CAA"><enum>(1)</enum><header display-inline="yes-display-inline">Authority</header><text display-inline="yes-display-inline">Not later than 120 days after the date of
enactment of this Act, the Director of the Office of Personnel Management shall
prescribe such regulations as are necessary to carry out this subtitle with
respect to employees described in section 244(3)(E) and other individuals
affected by employers described in section 244(4)(A)(i)(V).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID63DB207C21604C1983AE0FCB16098E58"><enum>(2)</enum><header display-inline="yes-display-inline">Agency regulations</header><text display-inline="yes-display-inline">The regulations prescribed under paragraph
(1) shall be the same as substantive regulations promulgated by the Secretary
to carry out this subtitle except insofar as the Director may determine, for
good cause shown and stated together with the regulations prescribed under
paragraph (1), that a modification of such regulations would be more effective
for the implementation of the rights and protections involved under this
section.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID3B628EA4A4934B76B8B86DBE9E8F7F4C" section-type="subsequent-section"><enum>254.</enum><header display-inline="yes-display-inline">Effective dates</header>
<subsection commented="no" display-inline="no-display-inline" id="ID183A9FC0A1B84A0A9FE42BD5BBCFDCEE"><enum>(a)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">This subtitle shall take
effect 6 months after the date of issuance of regulations under section
253(a)(1).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID7FFCEB929C5D4EC7997FD8364E498D9D"><enum>(b)</enum><header display-inline="yes-display-inline">Collective bargaining
agreements</header><text display-inline="yes-display-inline">In the case of a
collective bargaining agreement in effect on the effective date prescribed by
subsection (a), this subtitle shall take effect on the earlier of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID567FBDB3EDAC442EA7D67026CCF04C12"><enum>(1)</enum><text display-inline="yes-display-inline">the date of the termination of such
agreement; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6CB01716B1B04B3FA017E7F05915EDD2"><enum>(2)</enum><text display-inline="yes-display-inline">the date that occurs 18 months after the
date of issuance of regulations under section 253(a)(1).</text>
</paragraph></subsection></section></subtitle><subtitle id="id9B774B5AF801475A9BE501FD4B58F09F"><enum>E</enum><header>Establishing a
fair minimum wage</header>
<section id="H97A2DB93309E49738D9FF170BE822007"><enum>261.</enum><header>Minimum wage
increases</header>
<subsection id="id4488825D89064E888A4C5D87AB7CB0AB"><enum>(a)</enum><header>Minimum
wage</header>
<paragraph id="H4BA3EDC4526942C8A22EEACCE558A669"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 6(a)(1) of
the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="H2097BC09D0844A05B75F18F07FDD6592" style="OLC">
<paragraph id="HFC443CDCF1984D9F8457931BF5625D83"><enum>(1)</enum><text display-inline="yes-display-inline">except as otherwise provided in this
section, not less than—</text>
<subparagraph id="H45A921D049734511811524C5C5874847"><enum>(A)</enum><text>$8.10 an hour,
beginning on the first day of the third month that begins after the date of
enactment of the <short-title>Rebuild America
Act</short-title>;</text>
</subparagraph><subparagraph id="H1AB4E7CB2D2E4265A0830A33B92723A8"><enum>(B)</enum><text>$8.95 an hour,
beginning 1 year after that first day;</text>
</subparagraph><subparagraph id="H588F49A9EF3B4797B4B87ECB2E02B268"><enum>(C)</enum><text>$9.80 an hour,
beginning 2 years after that first day; and</text>
</subparagraph><subparagraph id="HD74BCE817A7C4EB3A14BA13659FB65F8"><enum>(D)</enum><text>beginning on the
date that is 3 years after that first day, and annually thereafter, the amount
determined by the Secretary pursuant to subsection
(h);</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H891D9B23C5144A9597FFD16EBC8F857A"><enum>(2)</enum><header>Determination
based on increase in the consumer price index</header><text>Section 6 of the
Fair Labor Standards Act of 1938 (29 U.S.C. 206) is amended by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC4B0BE89C51C479FA77F3C0F8326AF40" style="OLC">
<subsection id="H72EAC79FBB204106BE4B4B9485EE49FA"><enum>(h)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idF538D029A79D40A9B59B3BEE7AE6F003"><enum>(1)</enum><text display-inline="yes-display-inline">Each year, by not later than the date that
is 90 days before a new minimum wage determined under subsection (a)(1)(D) is
to take effect, the Secretary shall determine the minimum wage to be in effect
pursuant to this subsection for the subsequent 1-year period. The wage
determined pursuant to this subsection for a year shall be—</text>
<subparagraph id="idAAEBFD5C90B54B89A3A03D9310425BF5" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">not less than the amount in effect under
subsection (a)(1) on the date of such determination;</text>
</subparagraph><subparagraph id="id8A8BAC6926BD4D5AB27A31D7C85B3206" indent="up1"><enum>(B)</enum><text>increased from such amount by the
annual percentage increase in the Consumer Price Index for Urban Wage Earners
and Clerical Workers (United States city average, all items, not seasonally
adjusted), or its successor publication, as determined by the Bureau of Labor
Statistics; and</text>
</subparagraph><subparagraph id="id59D8271001A24F21897A53DFBAC62FAD" indent="up1"><enum>(C)</enum><text>rounded to the nearest multiple of
$0.05.</text>
</subparagraph></paragraph><paragraph id="id27FF8DAFFF1949E69ABBAF66F4958976" indent="up1"><enum>(2)</enum><text>In calculating the annual percentage
increase in the Consumer Price Index for purposes of paragraph (1)(B), the
Secretary shall compare such Consumer Price Index for the most recent month,
quarter, or year available (as selected by the Secretary prior to the first
year for which a minimum wage is in effect pursuant to this subsection) with
the Consumer Price Index for the same month in the preceding year, the same
quarter in the preceding year, or the preceding year,
respectively.</text>
</paragraph></subsection><after-quoted-block>.
</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H5BCF9F0360F943D18EA0F418BD02FF4D"><enum>(b)</enum><header>Base minimum
wage for tipped employees</header><text display-inline="yes-display-inline">Section 3(m)(1) of the Fair Labor Standards
Act of 1938 (29 U.S.C. 203(m)(1)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idB9C56F4BF775444DB488D56621A0BF1F" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="IDEEF9D7BB051349548B4E4AECC6FB15E1"><enum>(1)</enum><text display-inline="yes-display-inline">the cash wage paid such employee, which for
purposes of such determination shall be not less than—</text>
<subparagraph id="id9CC16E484F664068A6CAAA9C4ECE684C"><enum>(A)</enum><text>for the 1-year
period beginning on the first day of the third month that begins after the date
of enactment of the <short-title>Rebuild America
Act</short-title>, $3.00 an hour;</text>
</subparagraph><subparagraph id="idE337F67DCF134D55BB822B06E133794F"><enum>(B)</enum><text>for each
succeeding 1-year period until the hourly wage under this paragraph equals 70
percent of the wage in effect under section 6(a)(1) for such period, an hourly
wage equal to the amount determined under this paragraph for the preceding
year, increased by the lesser of—</text>
<clause id="H829182A483464B8D8E8FA2C7C6BC4E80"><enum>(i)</enum><text>$0.85; or</text>
</clause><clause id="id3138DB89250E40368D8FBF3189996EC1"><enum>(ii)</enum><text>the amount
necessary for the wage in effect under this paragraph to equal 70 percent of
the wage in effect under section 6(a)(1) for such period, rounded to the
nearest multiple of $0.05; and</text>
</clause></subparagraph><subparagraph id="id94982518DC3C47C883C847647D377765"><enum>(C)</enum><text>for each
succeeding 1-year period after the year in which the hourly wage under this
paragraph first equals 70 percent of the wage in effect under section 6(a)(1)
for the same period, the amount necessary to ensure that the wage in effect
under this paragraph remains equal to 70 percent of the wage in effect under
section 6(a)(1), rounded to the nearest multiple of $0.05;
and</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H3CA81708D36F4A3E955706D20CC3F66D"><enum>(c)</enum><header>Publication of
notice</header><text display-inline="yes-display-inline">Section 6 of the Fair
Labor Standards Act of 1938 (as amended by subsection (a)) (29 U.S.C. 206) is
further amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HB4E90E5E979A4227BAE82CBC2F1F875E" style="traditional">
<subsection id="H6949E4BD02284D05B2353BB9C498122B"><enum>(i)</enum><text display-inline="yes-display-inline">Not later than 60 days prior to the
effective date of any increase in the minimum wage determined under subsection
(h) or required for tipped employees in accordance with subparagraph (B) or (C)
of section 3(m)(1), as amended by section 261 of the
<short-title>Rebuild America Act</short-title>, the
Secretary shall publish in the Federal Register and on the website of the
Department of Labor a notice announcing the adjusted required
wage.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id2317D2E6142046718125A0FA35EA1C2E"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by subsections (a) and (b) shall take
effect on the first day of the third month that begins after the date of
enactment of this Act.</text>
</subsection></section></subtitle><subtitle id="id347921D7623349C6B46C175CC051E364"><enum>F</enum><header>Empowering
hardworking Americans</header>
<section id="idC733C39949A8499F8190022AED26E32C"><enum>271.</enum><header>Amendments to
the National Labor Relations Act</header>
<subsection id="id4BC7A47A9209492C9B0BE349E7239839"><enum>(a)</enum><header>Coverage</header>
<paragraph id="id4B71C3A22F7C485A9886CA368D28DC18"><enum>(1)</enum><header>Supervisors</header><text>Section
2(11) of the National Labor Relations Act (29 U.S.C. 152(11)) is
amended—</text>
<subparagraph id="idd8621bf5e3cb4b7fb31da788d6e79849"><enum>(A)</enum><text>by inserting
<quote>and for a majority of the individual’s worktime</quote> after
<quote>interest of the employer</quote>;</text>
</subparagraph><subparagraph id="idf43d124fcb28455e839f9668e7ef425b"><enum>(B)</enum><text>by striking
<quote>assign,</quote>; and</text>
</subparagraph><subparagraph id="idf79fcbc0950e44f7810fc86a628ab70a"><enum>(C)</enum><text>by striking
<quote>or responsibly to direct them</quote>.</text>
</subparagraph></paragraph><paragraph id="id4fe987f104bd469885ba418178aa5d0e"><enum>(2)</enum><header>Independent
contractors</header><text>Section 2 of the National Labor Relations Act (29
U.S.C. 152) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id39B630093B234D44A944BD7F901F0C3E" style="OLC">
<paragraph id="idd21953246c1b4c879d8612cea6b07eb9"><enum>(15)</enum><text>The term
<term>independent contractor</term> means an individual who performs services
for an employer for remuneration and for whom it is found, to the satisfaction
of the Board, that—</text>
<subparagraph id="id69cb606488ca4277969f03f137f67348"><enum>(A)</enum><text>the individual
has been and will continue to be free from direction and control of the
employer, both under the individual's contract of service and in fact;</text>
</subparagraph><subparagraph id="id042bab20b55a4eb1b4aec4e21062b7c7"><enum>(B)</enum><text>the service is
outside the usual course of business of the employer; and</text>
</subparagraph><subparagraph id="id21d6d4d4960e4f6b83ebca1f7d0a02b5"><enum>(C)</enum><text>the individual is
customarily engaged in an independently established trade, occupation,
profession, or business, both under the individual's contract of service and in
fact.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id6f0684f8edaf415a82b40529579d13f8"><enum>(b)</enum><header>Remedies</header>
<paragraph id="id568a4b86c09846489cd00a1decd453a5"><enum>(1)</enum><header>In
general</header><text>Section 10(l) of the National Labor Relations Act (29
U.S.C. 160(l)) is amended—</text>
<subparagraph id="id3add7f13d35c4f328ad804658790fb5e"><enum>(A)</enum><text>in the first
sentence—</text>
<clause id="id6F8CAD01686840A2B6171D652D0F2E54"><enum>(i)</enum><text>by
inserting after <quote>charged that</quote> the following: <quote>any person
that is an employer has engaged in an unfair labor practice within the meaning
of section 8(a) which results in the discharge of an employee or other serious
economic loss, or that</quote>; and</text>
</clause><clause id="idc65bfc34621745b189935b3de7f99f77"><enum>(ii)</enum><text>by
striking <quote>case of like character</quote> and inserting <quote>other cases
described in this sentence</quote>; and</text>
</clause></subparagraph><subparagraph id="id36d190ebc08442d5b560339c50848fae"><enum>(B)</enum><text>in the third
sentence, by striking <quote>as it deems just and proper, notwithstanding any
other provision of law:</quote> and inserting the following: <quote>to protect
the rights guaranteed by this Act, notwithstanding any other provision of law.
The district court shall grant the relief requested if the court finds that
there is reasonable cause to believe that the alleged violation of the Act has
occurred and, giving deference to the Board’s expertise in labor policy, there
exists a reasonable probability that the purposes of the Act will be frustrated
unless temporary relief is granted, or temporary relief is reasonably necessary
to preserve the effectiveness of the remedy or forestall further
violations:</quote>.</text>
</subparagraph></paragraph><paragraph id="idf5257d509efa4bb0969d85b3c303cc1a"><enum>(2)</enum><header>Civil
penalties</header><text>Section 12 of the National Labor Relations Act (29
U.S.C. 162) is amended—</text>
<subparagraph id="idF796CB368342439A851247B88A9D8BC5"><enum>(A)</enum><text>by striking
<quote><header-in-text level="section" style="OLC">Sec. 12.
</header-in-text>Any</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="ideccd80f210a6480383bdccf4942a3f62" style="OLC">
<section id="idFB5C514196EC4D9A9B5DC78EED25CAE6"><enum>12.</enum><header>Penalties</header>
<subsection id="idBD2CC398E1B04675902AFB5B7DDA2D4A"><enum>(a)</enum><header>Criminal
penalties</header><text display-inline="yes-display-inline">Any</text>
</subsection></section><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id1D0D1A38651E4747950D53FE61793197"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id43EDE9DAE9054083AA960CE8D987B587" style="OLC">
<subsection id="id6f95b4d867e34eca887b5354b66cd884"><enum>(b)</enum><header>Civil
penalties</header><text>Any employer who engages in a violation of section 8
that results in the discharge of an employee or other serious economic loss,
shall, in addition to any remedy ordered, be subject to a civil penalty not to
exceed $20,000 for each violation. In determining the amount of any penalty
under this subsection, the Board shall consider—</text>
<paragraph id="id6505150421084914b325bbf0d78563f6"><enum>(1)</enum><text>the gravity of
the unfair labor practice;</text>
</paragraph><paragraph id="id89e9e637c11e41a19df6c6d0f22acb3c"><enum>(2)</enum><text>the impact of the
unfair labor practice on the charging party, on other persons seeking to
exercise rights guaranteed by this Act, and on the public interest; and</text>
</paragraph><paragraph id="id9844d56dc61e43808df6673c5931ddb0"><enum>(3)</enum><text>the size of the
employer.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection></section></subtitle><subtitle id="id426A2EAFA6C94255B272D26F719F6727"><enum>G</enum><header>Increasing Job
Opportunities for Americans with Disabilities</header>
<section id="id47060BF4417E436D8097FE65C8613266"><enum>281.</enum><header>Modification
of work opportunity credit</header>
<subsection id="id339FED668929473E98BF9438B347B25D"><enum>(a)</enum><header>Qualified
disability insurance recipients treated as members of targeted groups</header>
<paragraph id="id67A2165D396A42458BF67FF5D85CCB11"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 51(d) of the Internal Revenue
Code of 1986 is amended 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 adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id75C88921FF8F48DAB779FAF460098715" style="OLC">
<subparagraph id="id76C8C6B1E1B243C7A96F95004A9DF86C"><enum>(J)</enum><text>a qualified
disability insurance
recipient.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idC3B5CA0BB67F42CB8941F2278C1AABA4"><enum>(2)</enum><header>Qualified
disability insurance recipient defined</header><text>Subsection (d) of section
51 of such Code is amended by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id1FDB1BC2573F42C78FDF12DCEEAD9EF0" style="OLC">
<paragraph id="id1E4F31D6E6CE4202B22A09817A782880"><enum>(15)</enum><header>Qualified
disability insurance recipient</header><text>The term <term>qualified
disability insurance recipient</term> means any individual who is certified by
the local designated agency as receiving disability insurance benefits under
title II of the Social Security Act for any month ending within the 60-day
period ending on the hiring
date.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id1FC4E60239FF4586A40D7EEAAEBD1154"><enum>(b)</enum><header>Modification of
vocational rehabilitation referrals</header><text>Section 51(d)(6) of the
Internal Revenue Code of 1986 is amended by striking subparagraphs (A) and (B)
and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id6667549EAD16484CB98E120DD882F664" style="OLC">
<subparagraph id="idCDC2E45A70E6459AB1DDA2B10BE132F6"><enum>(A)</enum><text>having a physical
or mental disability which, for such individual, constitutes or results in a
substantial impediment to employment, and</text>
</subparagraph><subparagraph id="ID6c64986339854ff595106ccd9d6ec670"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="id215CEE8DD47E4D0DBF1959F461E2103F"><enum>(i)</enum><text>having been referred to
the employer upon completion of (or while receiving) rehabilitative services
pursuant to—</text>
<subclause id="ID1bed6667e4014420987df1033d458131" indent="up1"><enum>(I)</enum><text>an individualized plan for employment
under title I of the Rehabilitation Act of 1973, or</text>
</subclause><subclause id="IDec59264824ec4125b2b162320b73917e" indent="up1"><enum>(II)</enum><text>a program of vocational rehabilitation
carried out under chapter 31 of title 38, United States Code, or</text>
</subclause><subclause commented="no" id="id92286A3EC53E41C4A2CB9C2AB24EB1BF" indent="up1"><enum>(III)</enum><text>an individual work plan developed and
implemented by an employment network pursuant to subsection (g) of section 1148
of the Social Security Act with respect to which the requirements of such
subsection are met, or</text>
</subclause></clause><clause id="id2BBDB0E7877B48838B3AB09391A6A0DA" indent="up1"><enum>(ii)</enum><text>eligible to receive rehabilitative
services pursuant to a plan described in clause (i)(I) or a program described
in clause (i)(II) but not receiving such
services.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idB0A090A350C848E1ABFE408CBA770CAA"><enum>(c)</enum><header>Increased
credit for certain disabled workers</header><text>Section 51 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="idCBBC3AD21AF64714BD5FD418802AD47F" style="OLC">
<subsection id="id33B793B453454D309A398FE482CF1EC0"><enum>(l)</enum><header>Increased
credit for certain disabled workers</header>
<paragraph id="idAAFEE73D9183416380A4BC18CFF4139E"><enum>(1)</enum><header>In
general</header><text>In the case of any qualified disabled worker, subsection
(b) shall be applied by substituting—</text>
<subparagraph id="idCD397A1F6615487EA4D782AB6DF804D1"><enum>(A)</enum><text><quote>2-year
period</quote> for <quote>1-year period</quote> in paragraph (2), and</text>
</subparagraph><subparagraph id="id0F922D1951284231AE3FF8DC46EA4EBF"><enum>(B)</enum><text><quote>$30,000</quote>
for <quote>$6,000</quote> in paragraph (3).</text>
</subparagraph></paragraph><paragraph id="id124BD3FBDBD148B4B967AC65958A1226"><enum>(2)</enum><header>Qualified
disabled worker</header><text>For purposes of this subsection, the term
<term>qualified disabled worker</term> means any individual who is—</text>
<subparagraph id="idBA3E8FCE156E45FDA5DCBE92C2AF349B"><enum>(A)</enum><text>a qualified SSI
recipient who is certified by the local designated agency as an individual who
is receiving benefits described in subsection (d)(9) as the result of being a
blind or disabled individual (as defined in section 1614 of the Social Security
Act),</text>
</subparagraph><subparagraph id="idE0C21382F6D94D228FD9E22ECB2CDB9F"><enum>(B)</enum><text>a qualified
disability insurance recipient, or</text>
</subparagraph><subparagraph id="id825EDE69BC9C435ABC918660BB6A9D3E"><enum>(C)</enum><text>a vocational
rehabilitation
referral.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id7CB1C3C59CE446F9888828E5C510DC04"><enum>(d)</enum><header>Extension of
credit</header><text>Subparagraph (B) of section 51(c)(4) of the Internal
Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idB030ED3A54B64F448A7A428F5DA11D1E" style="OLC">
<subparagraph id="idEE3AF04CE74B4AB38CEB16CD8BB32A9D"><enum>(B)</enum><text>after December
31,
2015.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id7A6183391B9E4BD494F653CE0FCCDA3D"><enum>(e)</enum><header>Reporting</header><text>Section
51 of the Internal Revenue Code of 1986, as amended by subsection (c), is
amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="idF5080E78AD7643BA94378C66125B4EE2" style="OLC">
<subsection id="id25E713841F94441FA795C26DCDB8B38F"><enum>(m)</enum><header>Reporting</header><text>The
Secretary of the Treasury shall require each taxpayer which is allowed a credit
under this section to report—</text>
<paragraph id="id97AD7B576F4B41C0AECBD1F2CE8F3C92"><enum>(1)</enum><text>the number of
employees hired by the taxpayer who are members of a targeted group,</text>
</paragraph><paragraph id="id843AE6E0AA474DBA849AB666EF2F296A"><enum>(2)</enum><text>the number of
employees hired by the taxpayer who have a disability,</text>
</paragraph><paragraph id="id4EDE4C0AEE30468699EB7CC80100D886"><enum>(3)</enum><text>the length of
retention of employees who are members of a targeted group, and</text>
</paragraph><paragraph id="idCBC9E98C81634B3890FB6C4741F43BA9"><enum>(4)</enum><text>such other
information as the Secretary may
require.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id58068BDE41F448B4979D4FE5968A8218"><enum>(f)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
individuals who begin work for an employer after the date of the enactment of
this Act.</text>
</subsection></section></subtitle><enum>III</enum><header>Restoring
balance and fairness to the tax code</header>
<section id="id54E8008EC44F4853A4255C2F45E1C59F" section-type="subsequent-section"><enum>300.</enum><header>Amendment of 1986
Code</header><text display-inline="no-display-inline">Except as otherwise
expressly provided, whenever in this title an amendment or repeal is expressed
in terms of an amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other provision of the
Internal Revenue Code of 1986.</text>
</section><subtitle id="id6C1A27D5FD1C46D099B16241D4784EF4"><enum>A</enum><header>Instituting the
<quote>Buffett Rule</quote></header>
<section id="idA01588A5F663444B8D5725C95DD61604"><enum>301.</enum><header>Fair share tax
on high-income taxpayers</header>
<subsection id="ID471f4f9c7ce444c6bdafa3f70c8957e3"><enum>(a)</enum><header>In
general</header><text>Subchapter A of chapter 1 is amended by adding at the end
the following new part:</text>
<quoted-block display-inline="no-display-inline" id="id28F15319176D4FB1AB1024B0667191D1" style="OLC">
<part id="id52F739CDD1254829A7C4FDBA34D0A9E1"><enum>VII</enum><header>Fair share tax
on high-income taxpayers</header>
<toc>
<toc-entry idref="id769FF3336EE94D5CB6DC7DB75DBBD233" level="section">Sec. 59B. Fair share tax.</toc-entry>
</toc>
<section id="id769FF3336EE94D5CB6DC7DB75DBBD233"><enum>59B.<?LEXA-Enum 59B.?></enum><header>Fair share tax</header>
<subsection id="id61BAD049439C44B4AD36D7515F056795"><enum>(a)</enum><header>General
rule</header>
<paragraph id="idFF5D2371F8E344378DA1C36A849945A0"><enum>(1)</enum><header>Phase-in of
tax</header><text>In the case of any high-income taxpayer, there is hereby
imposed for a taxable year (in addition to any other tax imposed by this
subtitle) a tax equal to the product of—</text>
<subparagraph id="idFDCE8D7D745242E388B7392B4D56E924"><enum>(A)</enum><text>the amount
determined under paragraph (2), and</text>
</subparagraph><subparagraph id="id9E02CFF4C6C241B1BA4409E3EE558006"><enum>(B)</enum><text>a fraction (not
to exceed 1)—</text>
<clause id="id1794986A9F2746968116CD93D1E84DC2"><enum>(i)</enum><text>the numerator of
which is the excess of—</text>
<subclause id="id28D87A9013DD4722A1C1EF144578FBB3"><enum>(I)</enum><text>the taxpayer's
adjusted gross income, over</text>
</subclause><subclause id="id6D5B155F69D04E4FA82D8521E316C84F"><enum>(II)</enum><text>the dollar
amount in effect under subsection (c)(1), and</text>
</subclause></clause><clause id="idAB0ADE8EF6304AD9958A2DEF99533296"><enum>(ii)</enum><text>the denominator
of which is the dollar amount in effect under subsection (c)(1).</text>
</clause></subparagraph></paragraph><paragraph id="id2BE6F98D92A94AA68E2FCC064DD5E88A"><enum>(2)</enum><header>Amount of
tax</header><text>The amount of tax determined under this paragraph is an
amount equal to the excess (if any) of—</text>
<subparagraph id="id332A6913BADF48F6BE4D5959EE7392BC"><enum>(A)</enum><text>the tentative
fair share tax for the taxable year, over</text>
</subparagraph><subparagraph id="id46536D3AF7D1429E94DDA13646557E79"><enum>(B)</enum><text>the excess
of—</text>
<clause id="id29BDE53EB97A4D24BDBCB9513C0FC6A6"><enum>(i)</enum><text>the sum
of—</text>
<subclause id="id42879461F5CE4CE1B6825C2C97A2AF66"><enum>(I)</enum><text>the regular tax
liability (as defined in section 26(b)) for the taxable year,</text>
</subclause><subclause id="idA603AE8697FB4868930030B7DD24084A"><enum>(II)</enum><text>the tax imposed
by section 55 for the taxable year, plus</text>
</subclause><subclause id="idD7F9BF72579A45D9A24DAAAA00D1057C"><enum>(III)</enum><text>the payroll tax
for the taxable year, over</text>
</subclause></clause><clause id="id08CBA04DC3A548E6BDBE94C81E05163D"><enum>(ii)</enum><text>the credits
allowable under part IV of subchapter A (other than sections 27(a), 31, and
34).</text>
</clause></subparagraph></paragraph></subsection><subsection id="idE57E46EC06E14CEDA08E62CF1B490F39"><enum>(b)</enum><header>Tentative fair
share tax</header><text>For purposes of this section—</text>
<paragraph id="idF516F4D1420D46C69187FAA5FC9370E1"><enum>(1)</enum><header>In
general</header><text>The tentative fair share tax for the taxable year is 30
percent of the excess of—</text>
<subparagraph id="idA1820FD499B241E7B68EECC0B9C48AAA"><enum>(A)</enum><text>the adjusted
gross income of the taxpayer, over</text>
</subparagraph><subparagraph id="id96EF7417666E4763B86E7BF0F72578BD"><enum>(B)</enum><text>the modified
charitable contribution deduction for the taxable year.</text>
</subparagraph></paragraph><paragraph id="id72B669B1E81A4D7BB454311EBFE35640"><enum>(2)</enum><header>Modified
charitable contribution deduction</header><text>For purposes of paragraph
(1)—</text>
<subparagraph id="idA7E0623A2F6248E6955C9039D2490FD0"><enum>(A)</enum><header>In
general</header><text>The modified charitable contribution deduction for any
taxable year is an amount equal to the amount which bears the same ratio to the
deduction allowable under section 170 (section 642(c) in the case of a trust or
estate) for such taxable year as—</text>
<clause id="id09C282E720854724AB6AD18036C85E58"><enum>(i)</enum><text>the amount of
itemized deductions allowable under the regular tax (as defined in section 55)
for such taxable year, determined after the application of section 68, bears
to</text>
</clause><clause id="idEFD53F3D7DD7455DA3FFBC22F720C204"><enum>(ii)</enum><text>such amount,
determined before the application of section 68.</text>
</clause></subparagraph><subparagraph id="id32A6B7194658493AA0F5DBA8151D968B"><enum>(B)</enum><header>Taxpayer must
itemize</header><text>In the case of any individual who does not elect to
itemize deductions for the taxable year, the modified charitable contribution
deduction shall be zero.</text>
</subparagraph></paragraph></subsection><subsection id="idF6366F4AAA144AE3B9B36065FFA4DDFA"><enum>(c)</enum><header>High-Income
taxpayer</header><text>For purposes of this section—</text>
<paragraph id="idA865BD7E47DC49038DD83CC0227D6289"><enum>(1)</enum><header>In
general</header><text>The term <term>high-income taxpayer</term> means, with
respect to any taxable year, any taxpayer (other than a corporation) with an
adjusted gross income for such taxable year in excess of $1,000,000 (50 percent
of such amount in the case of a married individual who files a separate
return).</text>
</paragraph><paragraph id="id4E74A13C415446869B152F87D6158F22"><enum>(2)</enum><header>Inflation
adjustment</header>
<subparagraph id="ID9f20a6d599d747f79c06ab5437f64b42"><enum>(A)</enum><header>In
general</header><text>In the case of a taxable year beginning after 2013, the
$1,000,000 amount under paragraph (1) shall be increased by an amount equal
to—</text>
<clause id="ID9f2d4a37624c40fab5b1ec09249a800c"><enum>(i)</enum><text>such dollar
amount, multiplied by</text>
</clause><clause id="ID5f1194ed00474951baade0befa5a6a92"><enum>(ii)</enum><text>the
cost-of-living adjustment determined under section 1(f)(3) for the calendar
year in which the taxable year begins, determined by substituting
<quote>calendar year 2012</quote> for <quote>calendar year 1992</quote> in
subparagraph (B) thereof.</text>
</clause></subparagraph><subparagraph id="ID84a4d142d70845b281289e53b3894b52"><enum>(B)</enum><header>Rounding</header><text>If
any amount as adjusted under subparagraph (A) is not a multiple of $10,000,
such amount shall be rounded to the next lowest multiple of $10,000.</text>
</subparagraph></paragraph></subsection><subsection id="id583E38523AC1430C93E97150A2C3F7BF"><enum>(d)</enum><header>Payroll
tax</header><text>For purposes of this section, the payroll tax for any taxable
year is an amount equal to the excess of—</text>
<paragraph id="idF6A3FDE92418419EA2151EE1461A9847"><enum>(1)</enum><text>the taxes imposed
on the taxpayer under sections 1401, 1411, 3101, 3201, and 3211(a) (to the
extent such taxes are attributable to the rate of tax in effect under section
3101) with respect to such taxable year or wages or compensation received
during the taxable year, over</text>
</paragraph><paragraph id="id2FB04995F68B462B9BD9CB355CB60E63"><enum>(2)</enum><text>the deduction
allowable under section 164(f) for such taxable year.</text>
</paragraph></subsection><subsection id="id857955860220407A810BBE146622B997"><enum>(e)</enum><header>Special rule
for estates and trusts</header><text>For purposes of this section, in the case
of an estate or trust, adjusted gross income shall be computed in the manner
described in section 67(e).</text>
</subsection><subsection commented="no" id="IDc88d296dce014c7e83446cd26faeb1d1"><enum>(f)</enum><header>Not treated as
tax imposed by this chapter for certain purposes</header><text>The tax imposed
under this section shall not be treated as tax imposed by this chapter for
purposes of determining the amount of any credit under this chapter (other than
the credit allowed under section 27(a)) or for purposes of section
55.</text>
</subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id1CEBD551226E4EEF97C7F0F601843568"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 26(b)(2) is amended by redesignating
subparagraphs (C) through (X) as subparagraphs (D) through (Y), respectively,
and by inserting after subparagraph (B) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id1BCFA4D957364ED18AE05A8133E14F51" style="OLC">
<subparagraph id="id7BEDC0B1E3DC4651A715711F21AC5235"><enum>(C)</enum><text>section 59B
(relating to fair share
tax),</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idA8E4A587BBA045998A4468D5E2E9A61E"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of parts for subchapter A of chapter 1 is
amended by adding at the end the following new item:</text>
<quoted-block id="ida5a95c9a-9bc6-4fee-8389-a66fdd660686" style="OLC">
<toc>
<toc-entry idref="id52F739CDD1254829A7C4FDBA34D0A9E1" level="part">Part VII—Fair share tax on high-Income
taxpayers</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id1A85806DDA7A466BA8007BB2EED1E8A0"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2012.</text>
</subsection></section></subtitle><subtitle id="idCED8FB78B2F74CDB84D696E3C34D2EBD"><enum>B</enum><header>Adopting a Wall
Street trading and speculators tax</header>
<section id="H949B46F1100B4389B4DD8A04D9753513"><enum>311.</enum><header>Transaction
tax</header>
<subsection id="H4DF8CC8771B2442A9371E1250100BD69"><enum>(a)</enum><header>In
general</header><text>Chapter 36 is amended by inserting after subchapter B the
following new subchapter:</text>
<quoted-block display-inline="no-display-inline" id="HE57E183E78434AB7B93DD3D8AF5461EF" style="OLC">
<subchapter id="H591240DBCE744C48BAB1CFC787BD906A"><enum>C</enum><header>Tax on Trading
Transactions</header>
<toc container-level="subchapter-container" idref="H591240DBCE744C48BAB1CFC787BD906A" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H4818E7A1FE294BC78A70B42ABD31F265" level="section">Sec. 4475. Tax on trading transactions.</toc-entry>
</toc>
<section id="H4818E7A1FE294BC78A70B42ABD31F265"><enum>4475.</enum><header>Tax on trading
transactions</header>
<subsection id="HBA283678EBA64AD7A88D9C56640BF573"><enum>(a)</enum><header>Imposition of
tax</header><text display-inline="yes-display-inline">There is hereby imposed a
tax on each covered transaction with respect to any security.</text>
</subsection><subsection id="HEB2D5A3C2D374F03A7DB2CB82062721B"><enum>(b)</enum><header>Rate of
tax</header><text display-inline="yes-display-inline">The tax imposed under
subsection (a) with respect to any covered transaction shall be 0.03 percent of
the specified base amount with respect to such covered transaction.</text>
</subsection><subsection id="HAD4FC857FB7E43F79F9C8FE56A3037CD"><enum>(c)</enum><header>Specified base
amount</header><text>For purposes of this section, the term <term>specified
base amount</term> means—</text>
<paragraph id="H87034E4A20F44F32A2446AA27FAA8FDA"><enum>(1)</enum><text>except as provided
in paragraph (2), the fair market value of the security (determined as of the
time of the covered transaction), and</text>
</paragraph><paragraph id="H5D7F582442014CCAA2BEA7140BD47D5F"><enum>(2)</enum><text>in the case of any
payment described in subsection (h), the amount of such payment.</text>
</paragraph></subsection><subsection id="H9FC41AC9FD8D4F229F43156C7C1187D0"><enum>(d)</enum><header>Covered
transaction</header><text>For purposes of this section, the term <term>covered
transaction</term> means—</text>
<paragraph id="H44BCF2DFA6C0470DA008862CFA442ECF"><enum>(1)</enum><text>except as provided
in paragraph (2), any purchase if—</text>
<subparagraph id="H5E40C059C33C48B390BAD51377381B14"><enum>(A)</enum><text>such purchase
occurs or is cleared on a facility located in the United States, or</text>
</subparagraph><subparagraph id="HA0AE717BA08A4AEB99769027AD2E9FF5"><enum>(B)</enum><text>the purchaser or
seller is a United States person, and</text>
</subparagraph></paragraph><paragraph id="H3995F2301A7A48F3BCC86EF60B71A1A2"><enum>(2)</enum><text>any transaction
with respect to a security described in subparagraph (D), (E), or (F) of
subsection (e)(1), if—</text>
<subparagraph id="H4307935E83754326BC7AE50A904CF46D"><enum>(A)</enum><text>such security is
traded or cleared on a facility located in the United States, or</text>
</subparagraph><subparagraph id="H18E06BE35F494A38A0BC66C0AFB6571B"><enum>(B)</enum><text>any party with
rights under such security is a United States person.</text>
</subparagraph></paragraph></subsection><subsection id="H4BA1A38B1AD04BE4A4F587AF6A34DCAB"><enum>(e)</enum><header>Security and
other definitions</header><text>For purposes of this section—</text>
<paragraph id="HEA5F83D96DC94073812837258D58DC8E"><enum>(1)</enum><header>In
general</header><text>The term <term>security</term> means—</text>
<subparagraph id="H7778708A4E5144E1ABAED9BB90CE66C0"><enum>(A)</enum><text>any share of stock
in a corporation,</text>
</subparagraph><subparagraph id="HE514EE765E944E39BEDA77B11F7EE253"><enum>(B)</enum><text>any partnership or
beneficial ownership interest in a partnership or trust,</text>
</subparagraph><subparagraph id="HB73BA6D7E0EF4BB3964B2B35FAAE42CB"><enum>(C)</enum><text>any note, bond,
debenture, or other evidence of indebtedness,</text>
</subparagraph><subparagraph id="H09322474CA4044BD9F95D8D419EDC718"><enum>(D)</enum><text>any evidence of an
interest in, or a derivative financial instrument with respect to, any security
or securities described in subparagraph (A), (B), or (C),</text>
</subparagraph><subparagraph id="H451402CC37874AA2A7787163CE86CD7D"><enum>(E)</enum><text>any derivative
financial instrument with respect to any currency or commodity, and</text>
</subparagraph><subparagraph id="HD53CBC71F81A46A0833BFEDDB0BD510E"><enum>(F)</enum><text>any other
derivative financial instrument any payment with respect to which is calculated
by reference to any specified index.</text>
</subparagraph></paragraph><paragraph id="H6504A5A1B76B45988969D491A9E2581C"><enum>(2)</enum><header>Derivative
financial instrument</header><text>The term <term>derivative financial
instrument</term> includes any option, forward contract, futures contract,
notional principal contract, or any similar financial instrument.</text>
</paragraph><paragraph id="H9BFE9DE8C0D342709680BC3DFAC0F96F"><enum>(3)</enum><header>Specified
index</header><text>The term <term>specified index</term> means any 1 or more
of any combination of—</text>
<subparagraph id="H4482F40943CE4F99955C9F01FE7FCEFD"><enum>(A)</enum><text>a fixed rate,
price, or amount, or</text>
</subparagraph><subparagraph id="H1521DE62826C4F5AA4C8C511B7D7D94A"><enum>(B)</enum><text>a variable rate,
price, or amount, </text>
</subparagraph><continuation-text continuation-text-level="paragraph">which is
based on any current objectively determinable information which is not within
the control of any of the parties to the contract or instrument and is not
unique to any of the parties’ circumstances.</continuation-text></paragraph><paragraph id="HB6BDBAB5D3AD46F5A8111AD202F756C0"><enum>(4)</enum><header>Treatment of
exchanges</header>
<subparagraph id="HD7CF1D08D9B142919D97DAAF4615A9AD"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">An exchange shall be
treated as the sale of the property transferred and a purchase of the property
received by each party to the exchange.</text>
</subparagraph><subparagraph id="HE16730E8160A4652A96885C3A6048CB0"><enum>(B)</enum><header>Certain deemed
exchanges</header><text>In the case of a distribution treated as an exchange
for stock under section 302 or 331, the corporation making such distribution
shall be treated as having purchased such stock for purposes of this
section.</text>
</subparagraph></paragraph></subsection><subsection id="H0568074749AC4D1D88C980003942BE88"><enum>(f)</enum><header>Exceptions</header>
<paragraph id="H933D4534A9994311BA1736F42E605AE5"><enum>(1)</enum><header>Exception for
initial issues</header><text display-inline="yes-display-inline">No tax shall
be imposed under subsection (a) on any covered transaction with respect to the
initial issuance of any security described in subparagraph (A), (B), or (C) of
subsection (e)(1).</text>
</paragraph><paragraph id="HD33D5358B1AB45E4B57C35BC0C6D4E4A"><enum>(2)</enum><header>Exception for
certain traded short-term indebtedness</header><text>A note, bond, debenture,
or other evidence of indebtedness which—</text>
<subparagraph id="H58CACB59AAF74D788CBBD7C76F8E57F2"><enum>(A)</enum><text>is traded on a
trading facility located in the United States, and</text>
</subparagraph><subparagraph id="HE62E97F268F74DED989A6C908ECBBA36"><enum>(B)</enum><text>has a fixed
maturity of not more than 100 days,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">shall not
be treated as described in subsection (e)(1)(C).</continuation-text></paragraph><paragraph id="HF5CCF94E581F4B929D41A34FB83AAE7F"><enum>(3)</enum><header>Exception for
securities lending arrangements</header><text>No tax shall be imposed under
subsection (a) on any covered transaction with respect to which gain or loss is
not recognized by reason of section 1058.</text>
</paragraph></subsection><subsection id="H7BDBE2E6611041D8B1F44386E08E60F1"><enum>(g)</enum><header>By whom
paid</header>
<paragraph id="H65FF76474295401A9FDE2E998CB263B2"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The tax imposed by
this section shall be paid by—</text>
<subparagraph id="H638998D060F141A89432F3AA21226ECF"><enum>(A)</enum><text>in the case of a
transaction which occurs or is cleared on a facility located in the United
States, such facility, and</text>
</subparagraph><subparagraph id="H09A75F37EF6A4966A7A5CB43339180C2"><enum>(B)</enum><text>in the case of a
purchase not described in subparagraph (A) which is executed by a broker (as
defined in section 6045(c)(1)) which is a United States person, such
broker.</text>
</subparagraph></paragraph><paragraph id="H2BEB1A998DDB4F0DBB0451C6A1863AC2"><enum>(2)</enum><header>Special rules
for direct, etc., transactions</header><text>In the case of any transaction to
which paragraph (1) does not apply, the tax imposed by this section shall be
paid by—</text>
<subparagraph id="HFF3F3845033D4C1CAEC9DC473E9E2348"><enum>(A)</enum><text>in the case of a
transaction described in subsection (d)(1)—</text>
<clause id="HD79606D3380B461CA17E6A505EFFEA10"><enum>(i)</enum><text>the purchaser if
the purchaser is a United States person, and</text>
</clause><clause id="H1331AA3F45504658BC816DDDFE178C68"><enum>(ii)</enum><text>the seller if the
purchaser is not a United States person, and</text>
</clause></subparagraph><subparagraph id="H2FC490A4D53D4043A0F041A4E6A36CCA"><enum>(B)</enum><text>in the case of a
transaction described in subsection (d)(2)—</text>
<clause id="HAE30A5EB2C054BCB818E854FB5C604BC"><enum>(i)</enum><text>the payor if the
payor is a United States person, and</text>
</clause><clause id="HF3CB0CEC419B4BDA957F5CF955950AA6"><enum>(ii)</enum><text>the payee if the
payor is not a United States person.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" id="HC2450CAFD25240FE814633BD38F04336"><enum>(h)</enum><header>Certain payments
treated as separate transactions</header><text display-inline="yes-display-inline">Except as otherwise provided by the
Secretary, any payment with respect to a security described in subparagraph
(D), (E), or (F) of subsection (e)(1) shall be treated as a separate
transaction for purposes of this section, including—</text>
<paragraph id="HD117CC149D644129BB8942EC3456BE8D"><enum>(1)</enum><text>any net initial
payment, net final or terminating payment, or net periodical payment with
respect to a notional principal contract (or similar financial
instrument),</text>
</paragraph><paragraph commented="no" id="H2FE3573CC5614A4FAABA4651AC696DF8"><enum>(2)</enum><text>any payment with
respect to any forward contract (or similar financial instrument), and</text>
</paragraph><paragraph id="H45DE7A3A9F4A4A2D9DBEF57A0ACF1444"><enum>(3)</enum><text>any premium paid
with respect to any option (or similar financial instrument).</text>
</paragraph></subsection><subsection id="HDDDFF7777432463FB882C4DA0E3D903E"><enum>(i)</enum><header>Administration</header><text>The
Secretary shall carry out this section in consultation with the Securities and
Exchange Commission and the Commodity Futures Trading Commission.</text>
</subsection><subsection id="H81D1BD3EB2F6450AB05769EB0B1B8291"><enum>(j)</enum><header>Guidance;
regulations</header><text>The Secretary shall—</text>
<paragraph id="HA8BEF8051F88406BA8ED5B3C05A6A5A0"><enum>(1)</enum><text>provide guidance
regarding such information reporting concerning covered transactions as the
Secretary deems appropriate, and</text>
</paragraph><paragraph id="H979820DD44964DB7B3B72FDD3CB38E67"><enum>(2)</enum><text>prescribe such
regulations as are necessary or appropriate to prevent avoidance of the
purposes of this section, including the use of non-United States persons in
such
transactions.</text>
</paragraph></subsection></section></subchapter><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6FC823926F6E4C849613BBC3C40D80A2"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of subchapters for chapter 36 is amended by
inserting after the item relating to subchapter B the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="HC7C9EF7317404B2380253F90AD2F7308" style="OLC">
<toc container-level="quoted-block-container" idref="HE57E183E78434AB7B93DD3D8AF5461EF" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry level="section">Subchapter C. Tax on trading
transactions.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HAC2421AB589945DBA4191D36A38E1628"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
transactions after December 31, 2012.</text>
</subsection></section></subtitle><subtitle id="id1F12A602DD174153ACC92F3055F10E6E"><enum>C</enum><header>Ending tax breaks
for companies that ship jobs overseas</header>
<section display-inline="no-display-inline" id="H2E9F6CC15B284B3D91F7B5E5044DA200" section-type="subsequent-section"><enum>321.</enum><header>Allocation of
expenses and taxes on basis of repatriation of foreign income</header>
<subsection id="H43EF7191267E403DB37900BD3893E4B7"><enum>(a)</enum><header>In
general</header><text>Part III of subchapter N of chapter 1 is amended by
inserting after subpart G the following new subpart:</text>
<quoted-block display-inline="no-display-inline" id="HD52A43474A684C5BBFFF8CD500D88694" style="OLC">
<subpart id="H379C5A4DBB9B4D0CB2A0AB45FFF2A822"><enum>H</enum><header>Special Rules for
Allocation of Foreign-Related Deductions and Foreign Tax Credits</header>
<toc container-level="subpart-container" idref="H379C5A4DBB9B4D0CB2A0AB45FFF2A822" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H7AE93E10584D4685B195E2E37CE49BA4" level="section">Sec. 975. Deductions allocated to deferred foreign income may
not offset United States source income.</toc-entry>
<toc-entry idref="H72FAB5B02F094996A8936C84B561B7AC" level="section">Sec. 976. Amount of foreign taxes computed on overall
basis.</toc-entry>
<toc-entry idref="H3C198D1DE8E5436391F18F65A192533C" level="section">Sec. 977. Application of subpart.</toc-entry>
</toc>
<section id="H7AE93E10584D4685B195E2E37CE49BA4"><enum>975.</enum><header>Deductions
allocated to deferred foreign income may not offset United States source
income</header>
<subsection id="H558D4E2E71564782AF80ED7BE28D77AE"><enum>(a)</enum><header>Current year
deductions</header><text display-inline="yes-display-inline">For purposes of
this chapter, foreign-related deductions for any taxable year—</text>
<paragraph id="H3D4516BCB89B44BFA222A3EAC2E800E8"><enum>(1)</enum><text>shall be taken
into account for such taxable year only to the extent that such deductions are
allocable to currently-taxed foreign income, and</text>
</paragraph><paragraph id="H28B891782CD740DA8699D3006DAE383C"><enum>(2)</enum><text>to the extent not
so allowed, shall be taken into account in subsequent taxable years as provided
in subsection (b).</text>
</paragraph><continuation-text continuation-text-level="subsection">Foreign-related deductions shall be
allocated to currently-taxed foreign income in the same proportion which
currently-taxed foreign income bears to the sum of currently-taxed foreign
income and deferred foreign income.</continuation-text></subsection><subsection id="HC7F23126B1A44ABC977F7FEB92F63C9B"><enum>(b)</enum><header>Deductions
related to repatriated deferred foreign income</header>
<paragraph id="HE2A9287405DA41C7A943725EA92F3FE"><enum>(1)</enum><header>In
general</header><text>If there is repatriated foreign income for a taxable
year, the portion of the previously deferred deductions allocated to the
repatriated foreign income shall be taken into account for the taxable year as
a deduction allocated to income from sources outside the United States. Any
such amount shall not be included in foreign-related deductions for purposes of
applying subsection (a) to such taxable year.</text>
</paragraph><paragraph id="H4716D1C410B64466AD1FFC5C23F9DBA8"><enum>(2)</enum><header>Portion of
previously deferred deductions</header><text>For purposes of paragraph (1), the
portion of the previously deferred deductions allocated to repatriated foreign
income is—</text>
<subparagraph id="H551707681223474AB2108E064631E00"><enum>(A)</enum><text>the amount which
bears the same proportion to such deductions, as</text>
</subparagraph><subparagraph id="H55EBAF4B3CFE43E9977E628D42E3A0CB"><enum>(B)</enum><text>the repatriated
income bears to the previously deferred foreign income.</text>
</subparagraph></paragraph></subsection><subsection id="HFFED56E6BE3D40E2841DA0899314E470"><enum>(c)</enum><header>Definitions and
special rule</header><text display-inline="yes-display-inline">For purposes of
this section—</text>
<paragraph id="HD8A1B4AD82EE4FC78635BA44EF4517E2"><enum>(1)</enum><header>Foreign-related
deductions</header><text>The term <term>foreign-related deductions</term> means
the total amount of deductions and expenses which would be allocated or
apportioned to gross income from sources without the United States for the
taxable year if both the currently-taxed foreign income and deferred foreign
income were taken into account.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HCD70A802166C4C82A83200DC4EF19B8D"><enum>(2)</enum><header>Currently-taxed
foreign income</header><text>The term <term>currently-taxed foreign
income</term> means the amount of gross income from sources without the United
States for the taxable year (determined without regard to repatriated foreign
income for such year).</text>
</paragraph><paragraph display-inline="no-display-inline" id="H97033661171740CAB35B4364E4B9CD57"><enum>(3)</enum><header>Deferred foreign
income</header><text>The term <term>deferred foreign income</term> means the
excess of—</text>
<subparagraph id="H79626A01C131458E961626248E3499FE"><enum>(A)</enum><text display-inline="yes-display-inline">the amount that would be includible in
gross income under subpart F of this part for the taxable year if—</text>
<clause id="HE5FDDEF44D4945928DAEDC1F782C51ED"><enum>(i)</enum><text>all controlled
foreign corporations were treated as one controlled foreign corporation,
and</text>
</clause><clause id="HBB8BF3A0A12149B296AE83FB48049E71"><enum>(ii)</enum><text>all earnings and
profits of all controlled foreign corporations were subpart F income (as
defined in section 952), over</text>
</clause></subparagraph><subparagraph id="H0485DC431041498A9350ADEFE3E6A012"><enum>(B)</enum><text>the sum of—</text>
<clause id="H23CFAAB66A814FF68EBA6608F7E98725"><enum>(i)</enum><text>all dividends
received during the taxable year from controlled foreign corporations,
plus</text>
</clause><clause id="H704E50F236BE41AC9421A54BACCCED5"><enum>(ii)</enum><text>amounts includible
in gross income under section 951(a).</text>
</clause></subparagraph></paragraph><paragraph id="H584938FDA0224A21A507768466FE0121"><enum>(4)</enum><header>Previously
deferred foreign income</header><text display-inline="yes-display-inline">The
term <term>previously deferred foreign income</term> means the aggregate amount
of deferred foreign income for all prior taxable years to which this part
applies, determined as of the beginning of the taxable year, reduced by the
repatriated foreign income for all such prior taxable years.</text>
</paragraph><paragraph id="HBC687988A56142B39213934B758832BC"><enum>(5)</enum><header>Repatriated
foreign income</header><text>The term <term>repatriated foreign income</term>
means the amount included in gross income on account of distributions out of
previously deferred foreign income.</text>
</paragraph><paragraph id="H2F202257ABB64BC0BF5B247CF0E7471C"><enum>(6)</enum><header>Previously
deferred deductions</header><text display-inline="yes-display-inline">The term
<term>previously deferred deductions</term> means the aggregate amount of
foreign-related deductions not taken into account under subsection (a) for all
prior taxable years (determined as of the beginning of the taxable year),
reduced by any amounts taken into account under subsection (b) for such prior
taxable years.</text>
</paragraph><paragraph id="H4C5FBB0E1F4B4BA396CD3D4D73007FFC"><enum>(7)</enum><header>Treatment of
certain foreign taxes</header>
<subparagraph id="H242E7E3B86844475BF3E725E1F386DD7"><enum>(A)</enum><header>Paid by
controlled foreign corporation</header><text display-inline="yes-display-inline">Section 78 shall not apply for purposes of
determining currently-taxed foreign income and deferred foreign income.</text>
</subparagraph><subparagraph id="H047053A21E294F6C94600063633D9703"><enum>(B)</enum><header>Paid by
taxpayer</header><text>For purposes of determining currently-taxed foreign
income, gross income from sources without the United States shall be reduced by
the aggregate amount of taxes described in the applicable paragraph of section
901(b) which are paid by the taxpayer (without regard to sections 902 and 960)
during the taxable year.</text>
</subparagraph></paragraph><paragraph id="HCB48493BE32A4A5CA500DB53A71EDE06"><enum>(8)</enum><header>Coordination
with section 976</header><text>In determining currently-taxed foreign income
and deferred foreign income, the amount of deemed foreign tax credits shall be
determined with regard to section 976.</text>
</paragraph></subsection></section><section id="H72FAB5B02F094996A8936C84B561B7AC"><enum>976.</enum><header>Amount of
foreign taxes computed on overall basis</header>
<subsection id="H055BDFFE1FF44810A6D76C36652D8790"><enum>(a)</enum><header>Current year
allowance</header><text display-inline="yes-display-inline">For purposes of
this chapter, the amount taken into account as foreign income taxes for any
taxable year shall be an amount which bears the same ratio to the total foreign
income taxes for that taxable year as—</text>
<paragraph id="HBD351B120AEF48B186DF2D20C0314F4E"><enum>(1)</enum><text>the
currently-taxed foreign income for such taxable year, bears to</text>
</paragraph><paragraph id="H141B124864E649C296851E00002FF91D"><enum>(2)</enum><text>the sum of the
currently-taxed foreign income and deferred foreign income for such
year.</text>
</paragraph><continuation-text continuation-text-level="subsection">The
portion of the total foreign income taxes for any taxable year not taken into
account under the preceding sentence for a taxable year shall only be taken
into account as provided in subsection (b) (and shall not be taken into account
for purposes of applying sections 902 and 960).</continuation-text></subsection><subsection display-inline="no-display-inline" id="HE59C0DB4729E4338B46F632039EDFEBC"><enum>(b)</enum><header>Allowance
related to repatriated deferred foreign income</header>
<paragraph id="HB18D79F8C96E41918C29D54585BE224D"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">If there is
repatriated foreign income for any taxable year, the portion of the previously
deferred foreign income taxes paid or accrued during such taxable year shall be
taken into account for the taxable year as foreign taxes paid or accrued. Any
such taxes so taken into account shall not be included in foreign income taxes
for purposes of applying subsection (a) to such taxable year.</text>
</paragraph><paragraph id="HA8EE892845CE4DF79F54152BA2D21DFF"><enum>(2)</enum><header>Portion of
previously deferred foreign income taxes</header><text>For purposes of
paragraph (1), the portion of the previously deferred foreign income taxes
allocated to repatriated deferred foreign income is—</text>
<subparagraph id="HD5C846BB74614C518129AAB7E4640086"><enum>(A)</enum><text>the amount which
bears the same proportion to such taxes, as</text>
</subparagraph><subparagraph id="H9E8C200714044E71BC304C49528C94F3"><enum>(B)</enum><text>the repatriated
deferred income bears to the previously deferred foreign income.</text>
</subparagraph></paragraph></subsection><subsection id="H0A0F0DF4F54546EC00F327A8886516F8"><enum>(c)</enum><header>Definitions and
special rule</header><text display-inline="yes-display-inline">For purposes of
this section—</text>
<paragraph id="H762F03EB740D4865B7BB3F9ED8AC1110"><enum>(1)</enum><header>Previously
deferred foreign income taxes</header><text display-inline="yes-display-inline">The term <term>previously deferred foreign
income taxes</term> means the aggregate amount of total foreign income taxes
not taken into account under subsection (a) for all prior taxable years
(determined as of the beginning of the taxable year), reduced by any amounts
taken into account under subsection (b) for such prior taxable years.</text>
</paragraph><paragraph id="H7C989BA37B7B4CDAABAA907CD116FB14"><enum>(2)</enum><header>Total foreign
income taxes</header><text display-inline="yes-display-inline">The term
<term>total foreign income taxes</term> means the sum of foreign income taxes
paid or accrued during the taxable year (determined without regard to section
904(c)) plus the increase in foreign income taxes that would be paid or accrued
during the taxable year under sections 902 and 960 if—</text>
<subparagraph id="HA105F74CCE6B4884864D89194E19CDE8"><enum>(A)</enum><text>all controlled
foreign corporations were treated as one controlled foreign corporation,
and</text>
</subparagraph><subparagraph id="H7C90AE2052B04A65A3B954EB67EAE042"><enum>(B)</enum><text>all earnings and
profits of all controlled foreign corporations were subpart F income (as
defined in section 952).</text>
</subparagraph></paragraph><paragraph id="HACC5F78C308B45EB8BA32400DBAB1362"><enum>(3)</enum><header>Foreign income
taxes</header><text display-inline="yes-display-inline">The term <term>foreign
income taxes</term> means any income, war profits, or excess profits taxes paid
by the taxpayer to any foreign country or possession of the United
States.</text>
</paragraph><paragraph id="H9388A62A5A98481AB711B77B0FCA56B"><enum>(4)</enum><header>Currently-taxed
foreign income and deferred foreign income</header><text display-inline="yes-display-inline">The terms <term>currently-taxed foreign
income</term> and <term>deferred foreign income</term> have the meanings given
such terms by section 975(c)).</text>
</paragraph></subsection></section><section id="H3C198D1DE8E5436391F18F65A192533C"><enum>977.</enum><header>Application of
subpart</header><text display-inline="no-display-inline">This subpart—</text>
<paragraph id="H278B262C823B431BB6E1FF00B1441C4"><enum>(1)</enum><text>shall be applied
before subpart A, and</text>
</paragraph><paragraph id="HDF333812472943F2A07CC7B697DBB61E"><enum>(2)</enum><text>shall be applied
separately with respect to the categories of income specified in section
904(d)(1).</text>
</paragraph></section></subpart><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA73E30222EEC40A7B91D60C64C17D5E"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of subparts for part III of subpart N of
chapter 1 is amended by inserting after the item relating to subpart G the
following new item:</text>
<quoted-block display-inline="no-display-inline" id="HB28BF2482CD94943AF5D591BFD88EC8F" style="OLC">
<toc container-level="quoted-block-container" idref="HD52A43474A684C5BBFFF8CD500D88694" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H379C5A4DBB9B4D0CB2A0AB45FFF2A822" level="subpart">Subpart H. Special Rules for Allocation of Foreign-Related
Deductions and Foreign Tax
Credits.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9125BD1C6DE742C1A41C1C44F13D57C8"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to taxable years beginning after December 31,
2012.</text>
</subsection></section><section id="H3A12CE26F74A427FA16FEA25B303A052"><enum>322.</enum><header>Excess income
from transfers of intangibles to low-taxed affiliates treated as subpart F
income</header>
<subsection id="H0F3FA98A1EF541718E6E84F5C121BE36"><enum>(a)</enum><header>In
general</header><text>Subsection (a) of section 954 is amended by inserting
after paragraph (3) the following new paragraph:</text>
<quoted-block id="HEF792A2EA5E74690AC8C64F8788A5FE5" style="OLC">
<paragraph id="H3856DF2017244234AB2AD455EABA50E4"><enum>(4)</enum><text>the foreign base
company excess intangible income for the taxable year (determined under
subsection (f) and reduced as provided in subsection (b)(5)),
and</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H92BED82C789C4DAD91EE4D71124F23DE"><enum>(b)</enum><header>Foreign base
company excess intangible income</header><text>Section 954 is amended by
inserting after subsection (e) the following new subsection:</text>
<quoted-block id="H8C46C383B83B4CEEB6548283A57C7294" style="OLC">
<subsection id="H35D5B9DB0C2D458B8BDE3370718D30C3"><enum>(f)</enum><header>Foreign base
company excess intangible income</header><text>For purposes of subsection
(a)(4) and this subsection:</text>
<paragraph id="H19C2AFB14FAA47C48831EE31D13C2150"><enum>(1)</enum><header>Foreign base
company excess intangible income defined</header>
<subparagraph id="H8CABB4F9C8B543448F4485E45F89B644"><enum>(A)</enum><header>In
general</header><text>The term <term>foreign base company excess intangible
income</term> means, with respect to any covered intangible, the excess
of—</text>
<clause id="H5B951BE7282742E4981C46C25292877A"><enum>(i)</enum><text>the sum of—</text>
<subclause id="H443CF284DD484DCC8DC24F30B92617E8"><enum>(I)</enum><text>gross income from
the sale, lease, license, or other disposition of property in which such
covered intangible is used directly or indirectly, and</text>
</subclause><subclause id="HEAFABBC6C7E04FF6807D6D21F0BE9938"><enum>(II)</enum><text>gross income from
the provision of services related to such covered intangible or in connection
with property in which such covered intangible is used directly or indirectly,
over</text>
</subclause></clause><clause id="HD4E20AB91333443CA6E9553780C3B626"><enum>(ii)</enum><text>150 percent of
the costs properly allocated and apportioned to the gross income taken into
account under clause (i) other than expenses for interest and taxes and any
expenses which are not directly allocable to such gross income.</text>
</clause></subparagraph><subparagraph id="H05AF02AA4C8F4BEAB451D82EBF6668A9"><enum>(B)</enum><header>Same country
income not taken into account</header><text>If—</text>
<clause id="HF62515FA515C4FD5BFE29393A831AF50"><enum>(i)</enum><text>the sale, lease,
license, or other disposition of the property referred to in subparagraph
(A)(i)(I) is for use, consumption, or disposition in the country under the laws
of which the controlled foreign corporation is created or organized, or</text>
</clause><clause id="HFF8D36B446464BB899FD5BFE279B927B"><enum>(ii)</enum><text>the services
referred to in subparagraph (A)(i)(II) are performed in such country,</text>
</clause><continuation-text continuation-text-level="subparagraph">the
gross income from such sale, lease, license, or other disposition, or provision
of services, shall not be taken into account under subparagraph (A)(i).</continuation-text></subparagraph><subparagraph id="H36F8C800CD0546F0AC2D2DE4D046BA85"><enum>(C)</enum><header>Special rule for
research and development expenses</header><text>Research and development costs
for any taxable year shall be treated for purposes of subparagraph (A) as
properly allocable to gross income derived from a covered intangible if such
costs are properly allocable to the line of business in which such gross income
is earned.</text>
</subparagraph></paragraph><paragraph id="H6CB4C37A79B5458AB692C58C1393E890"><enum>(2)</enum><header>Exception based
on effective foreign income tax rate</header>
<subparagraph id="H29D0919B68CD4F66AFDF76BF681C3909"><enum>(A)</enum><header>In
general</header><text>Foreign base company excess intangible income shall not
include the applicable percentage of any item of income received by a
controlled foreign corporation if the taxpayer establishes to the satisfaction
of the Secretary that such income was subject to an effective rate of income
tax imposed by a foreign country in excess of 10 percent.</text>
</subparagraph><subparagraph id="H66990E1669734DC3815708E9DF49F289"><enum>(B)</enum><header>Applicable
percentage</header><text>For purposes of subparagraph (A), the term
<term>applicable percentage</term> means the ratio (expressed as a percentage),
not greater than 100 percent, of—</text>
<clause id="H2A8BB5084C5747E4923D30FD3DD91C40"><enum>(i)</enum><text>the number of
percentage points by which the effective rate of income tax referred to in
subparagraph (A) exceeds 10 percentage points, over</text>
</clause><clause id="H266DB4BF9678408EB978022C42C09015"><enum>(ii)</enum><text>5
percentage points.</text>
</clause></subparagraph><subparagraph id="H9F6C33FC53B54714B11C239C529F0132"><enum>(C)</enum><header>Treatment of
losses in determining effective rate of foreign income tax</header><text>For
purposes of determining the effective rate of income tax imposed by any foreign
country—</text>
<clause id="H964E96AE73DE410D89A7CB4C9B66F80B"><enum>(i)</enum><text>such effective
rate shall be determined without regard to any losses carried to the relevant
taxable year, and</text>
</clause><clause id="HB380A1AF536C4E0888A25DF2882B56CC"><enum>(ii)</enum><text>to the extent the
income with respect to such intangible reduces losses in the relevant taxable
year, such effective rate shall be treated as being the effective rate which
would have been imposed on such income without regard to such losses.</text>
</clause></subparagraph></paragraph><paragraph id="H85876266E1634A71914F2EFDB59CE898"><enum>(3)</enum><header>Covered
intangible</header><text>The term <term>covered intangible</term> means, with
respect to any controlled foreign corporation, any intangible property (as
defined in section 936(h)(3)(B))—</text>
<subparagraph id="HC6DE62309EAC45BB802432E783F54425"><enum>(A)</enum><text>which is sold,
leased, licensed, or otherwise transferred (directly or indirectly) to such
controlled foreign corporation from a United States related person, or</text>
</subparagraph><subparagraph id="H6FF7B15D42AA42A3914B353BBAF42513"><enum>(B)</enum><text>with respect to
which such controlled foreign corporation and one or more related persons has
(directly or indirectly) entered into any shared risk or development agreement
(including any cost sharing agreement).</text>
</subparagraph></paragraph><paragraph id="H302469F5FE3546738792C2FC765AF7B4"><enum>(4)</enum><header>Related
person</header><text>The term <term>related person</term> has the meaning given
such term in subsection
(d)(3).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H31F610C90647453E8F65B5DC6C1E39D7"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="HF92F3467E8C246BC864F560DD0206892"><enum>(1)</enum><text>Paragraph (4) of
section 954(b) is amended by inserting <quote>foreign base company excess
intangible income described in subsection (a)(4) or</quote> before
<quote>foreign base company oil-related income</quote> in the last sentence
thereof.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA27612F2EB5349BA8C7CFEA865992588"><enum>(2)</enum><text>Paragraph (5) of
section 954(b) is amended by inserting <quote>the foreign base company excess
intangible income,</quote> before <quote>and the foreign base company oil
related income</quote>.</text>
</paragraph><paragraph id="H2A1B92EDFB1B4CECAE2CE6BF3E6BE794"><enum>(3)</enum><text>Subsection (b) of
section 954 is amended by adding at the end the following new paragraph:</text>
<quoted-block id="H13319725CA694A0CB3DDCF93B389F2FE" style="OLC">
<paragraph id="HE45F7C1FF3A2495381C5CE5439FBD30A"><enum>(7)</enum><header>Foreign base
company excess intangible income not treated as another kind of base company
income</header><text>Income of a corporation which is foreign base company
excess intangible income shall not be considered foreign base company income of
such corporation under paragraph (2), (3), or (5) of subsection
(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H214FB7BF3BB44332861BDA89BD949EC8"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to income
from transactions connected with or benefitting from covered intangibles in
taxable years beginning on or after January 1, 2013.</text>
</subsection></section><section id="idB158DDFC73814B12B20A1CBD7EA34E73"><enum>323.</enum><header>Modifications
of foreign tax credit rules applicable to dual capacity taxpayers</header>
<subsection id="HF640F0C224D048B485AC603CECD700D6"><enum>(a)</enum><header>In
general</header><text>Section 901 is amended by redesignating subsection (n) as
subsection (o) and by inserting after subsection (m) the following new
subsection:</text>
<quoted-block id="HB9149A239BE44D51B44BBF495C7A480B" style="OLC">
<subsection id="HD3B9CB3537D941C8B137A7167858889E"><enum>(n)</enum><header>Special Rules
Relating to Dual Capacity Taxpayers</header>
<paragraph id="HC4A08FF0FC6049AD8CCFD6708DA6FF20"><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="HC4A08FF0FC6049AD8CCFD6708DA6FF21"><enum>(2)</enum><header>Dual capacity
taxpayer</header><text>For purposes of this subsection, the term <term>dual
capacity taxpayer</term> means, with respect to any foreign country or
possession of the United States, a person who—</text>
<subparagraph id="HC4A08FF0FC6049AD8CCFD6708DA5FF21"><enum>(A)</enum><text>is subject to a
levy of such country or possession, and</text>
</subparagraph><subparagraph id="HC4A08FF0FC6049AD8CCFD3708DA6FF21"><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="HC4A08FF0FC6049AD8CCFD2708DA6FF21"><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="HC4A08FF0FC6049AD8CCFD1708DA6FF21"><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 commented="no" display-inline="no-display-inline" id="HC4A08FF0FC6049AD9CCFD6708DA6FF21"><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,
2012.</text>
</subsection></section></subtitle><subtitle id="id64D84B10ED554B3688B545C593DAB816"><enum>D</enum><header>Making Wall
Street take responsibility</header>
<section id="id197B5E4195B24A20B08AB0DAD72E6D1C"><enum>331.</enum><header>Financial
Crisis Responsibility Fee</header>
<subsection id="id43733970f74f4fc8a507b32980aba786"><enum>(a)</enum><header>Amount To be
collected</header><text display-inline="yes-display-inline">In order to cover
the costs to the Federal Government of assistance provided through the
Emergency Economic Stabilization Act of 2008, including the Troubled Asset
Relief Program, the Secretary of the Treasury, during the 10-year period
beginning on the first day of fiscal year 2013 and continuing through the end
of fiscal year 2022, shall assess a Financial Crisis Responsibility Fee to
collect a total of $65,000,000,000.</text>
</subsection><subsection id="id78f85e88bc22476cad8a7df36ae58b72"><enum>(b)</enum><header>Assessment and
schedule</header><text display-inline="yes-display-inline">To collect the
Financial Crisis Responsibility Fee, the Secretary of the Treasury shall
establish, by regulation, an assessment schedule by fiscal year, including
assessment base and rates, that—</text>
<paragraph id="idd440e4d689e34f639273bd14007ba81b"><enum>(1)</enum><text>is designed, in
the judgment of the Secretary of the Treasury, to result in the collection of
$65,000,000,000; and</text>
</paragraph><paragraph id="id5cf82fbdb3ce41b6987e37cc238e838e"><enum>(2)</enum><text>shall apply to
any financial institution with $50,000,000,000 or more in total consolidated
assets that received taxpayer assistance under the Emergency Economic
Stabilization Act of 2008, including the Troubled Asset Relief Program.</text>
</paragraph></subsection><subsection id="id5ff1d2746cd045d2bc43193dc990b3d3"><enum>(c)</enum><header>Consideration
of economic recovery</header><text display-inline="yes-display-inline">To
minimize any adverse impact to, and to promote the full recovery of, the
economy and financial sector, the Secretary of the Treasury shall phase in the
assessment rate required under this part over the 10-year period described in
subsection (a), in a manner determined by the Secretary of the Treasury.</text>
</subsection></section></subtitle><subtitle id="idA50FB27B761543EA879F604300B1C1C4"><enum>E</enum><header>Closing the
carried interest loophole</header>
<section commented="no" display-inline="no-display-inline" id="H57425BB0DAD9475FB774E9F2F4BC1C90" section-type="subsequent-section"><enum>341.</enum><header>Partnership
interests transferred in connection with performance of services</header>
<subsection commented="no" id="H29F60B11490E4BEF840B52B4103CA83A"><enum>(a)</enum><header>Modification to
election To include partnership interest in gross income in year of
transfer</header><text display-inline="yes-display-inline">Subsection (c) of
section 83 is amended by redesignating paragraph (4) as paragraph (5) and by
inserting after paragraph (3) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H501867F6D9C94596A5781CEEF03C8A56" style="OLC">
<paragraph id="HFF5FEA3B4BF94EA080E0FFD0BBFC6DA3"><enum>(4)</enum><header>Partnership
interests</header><text display-inline="yes-display-inline">Except as provided
by the Secretary—</text>
<subparagraph id="H4CDA28B1760C438084A24A15AB354539"><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="HF585337F00F64D9F8B874BEFF9D4735A"><enum>(i)</enum><text display-inline="yes-display-inline">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="H47F2B76B9EE0463A81F497B8457A886A"><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="HA125949BF7F44A8CAC54C1D6718BE92C"><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="H3AAFE1197F8F44E3845F4480BDB0AA7F"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to interests
in partnerships transferred after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H0CFEA5C29EAA4E8B96CF5572C134D247" section-type="subsequent-section"><enum>342.</enum><header>Special rules for
partners providing investment management services to partnerships</header>
<subsection id="HDF86C4CAC7E2481C8D72A77779863FB3"><enum>(a)</enum><header>In
general</header><text>Part I of subchapter K of chapter 1 is amended by adding
at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HEE22702F3BDE4BE5BC35214A76B5069E" style="OLC">
<section id="H81E230B949B349C4AB5E4D4A70CA990C"><enum>710.</enum><header>Special rules
for partners providing investment management services to partnerships</header>
<subsection id="H97BC7A3928424F61BBA66ECD451D7C24"><enum>(a)</enum><header>Treatment of
distributive share of partnership items</header><text display-inline="yes-display-inline">For purposes of this title, in the case of
an investment services partnership interest—</text>
<paragraph id="H7726C784B46549CFB34D1936811BCF01"><enum>(1)</enum><header>In
general</header><text>Notwithstanding section 702(b)—</text>
<subparagraph id="H6841F6B338414DA39D0EB6CA2CC498E7"><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="H00CDD1ACDA6E4860B564B63FE99F9346"><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="HEAE837A3BEA3443B85FC15B8213BEAAC"><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="H86988F5FAF444E348340DC65701785E7"><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="H2A470000880A497E82D03B21C4088DA2"><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="HFC66298B9C234E659D62DCDDC4AF0F40"><enum>(3)</enum><header>Allocation to
items of gain and loss</header>
<subparagraph id="HFB73C712DB744B68AFC3B12CB8551521"><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="H6A03E80566D84534BE9F2CF7021EF6C8"><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="H59980574CA8F41C593B51D871A217CE3"><enum>(4)</enum><header>Terms relating
to capital gains and losses</header><text>For purposes of this section—</text>
<subparagraph id="H56906125679E4DCE8F46939DC9E7F6C1"><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="HE059E65ADB40487A85D65DFB7EB9BD9D"><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="H51A9FCA546694039812A3DAB3CB39C1B"><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,
and</text>
</clause><clause id="H262239005663479BBFE5A7EDA2162532"><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.</text>
</clause></subparagraph><subparagraph id="H92319DB8021040AEB9C47881A9BE01C9"><enum>(B)</enum><header>Net capital
loss</header><text>The term <term>net capital loss</term> 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 (iii) of
subparagraph (A) shall apply for purposes of the preceding sentence.</text>
</subparagraph></paragraph><paragraph id="HA53EE80F596F4483A544C46A0CC64A68"><enum>(5)</enum><header>Special rules
for dividends</header>
<subparagraph id="H42A675FC41614E219824D267ECE3497D"><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="HE35A8B489EE7459CB56788171DAF279C"><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><paragraph id="HE981934896974C1787E5A4AFCAE3B1FB"><enum>(6)</enum><header>Special rule for
qualified small business stock</header><text display-inline="yes-display-inline">Section 1202 shall not apply to any gain
from the sale or exchange of qualified small business stock (as defined in
section 1202(c)) allocated with respect to any investment services partnership
interest.</text>
</paragraph></subsection><subsection id="H9BF82464237346CD8D7FB3C1DD0E87E8"><enum>(b)</enum><header>Dispositions of
partnership interests</header>
<paragraph id="HC03E0BE49EFC448791B70C0FD4E5D1A4"><enum>(1)</enum><header>Gain</header>
<subparagraph id="H8024A6DC00E046D9B2F0C623F07458A5"><enum>(A)</enum><header>In
general</header><text>Any gain on the disposition of an investment services
partnership interest shall be—</text>
<clause id="H0A95482448584CE280CE349283A0E688"><enum>(i)</enum><text>treated as
ordinary income, and</text>
</clause><clause id="H5ADC3E1527424454A3EF134D1D27FF0A"><enum>(ii)</enum><text>recognized
notwithstanding any other provision of this subtitle.</text>
</clause></subparagraph><subparagraph id="H35D84079453B4E00993AC159A9A94E51"><enum>(B)</enum><header>Gift and
transfers at death</header><text>In the case of a disposition of an investment
services partnership interest by gift or by reason of death of the
taxpayer—</text>
<clause id="H96BD748552024F20849D3E45ACB9E593"><enum>(i)</enum><text>subparagraph (A)
shall not apply,</text>
</clause><clause id="H130C920C0B2E4E2E92AB98ED949F753E"><enum>(ii)</enum><text>such interest
shall be treated as an investment services partnership interest in the hands of
the person acquiring such interest, and</text>
</clause><clause id="HC533523CD82D408FB87109AC88FB9682"><enum>(iii)</enum><text>any amount that
would have been treated as ordinary income under this subsection had the
decedent sold such interest immediately before death shall be treated as an
item of income in respect of a decedent under section 691.</text>
</clause></subparagraph></paragraph><paragraph id="H9C631F135B554B4892156586F86EE470"><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="H375DFB460FC54C13B34131932821AC5C"><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="H4B380026C5A44F2B8E639EA07A9DEF73"><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="H0C7F424940504CA8AF2EFA3B855D83C8"><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="HDC8F8BED778842D0A752E4FB9CBA2255"><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="H72A89189E01B464B959A382CBD4D7552"><enum>(B)</enum><text>the taxpayer
agrees to comply with such reporting and recordkeeping requirements as the
Secretary may prescribe.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD06D59DE651A4C48BD4873C99F94BFB4"><enum>(4)</enum><header>Distributions of
partnership property</header>
<subparagraph id="HB76706612ECE4ACD99B5B6D3BC55C7E1"><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 commented="no" id="H9E1B0556D6C2406C8E4E57B0821D7A4C"><enum>(i)</enum><text>the fair market
value of such property at the time of such distribution, over</text>
</clause><clause commented="no" id="H791BF7C5F65F46F4BC863C88F4A4AB0A"><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="H4F83EF3D6A01409F8FFC29202231DA72"><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 subsection (a)(2), 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="H94BD2E4362174798B1B14CCE50B02184"><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="H93E1CDF64451433E8C26ADF347FEFB3A"><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="H9BD06301A2EB41048FA8FF1F69F7D384"><enum>(c)</enum><header>Investment
services partnership interest</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" id="H6A9FB051492F4576B4136672C1FDCB97"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<term>investment services partnership interest</term> 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="H7FEDA508BE574254B7525976F34CA6F7"><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="H3C22614BB94E42C3990F02793C629A6D"><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="H0DEED4BE32234956B85FA460C3D72CC1"><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="HC72478A2224F494786E9D4919F940467"><enum>(2)</enum><header>Businesses to
which this section applies</header><text display-inline="yes-display-inline">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="H8E4B0B15686441339693DD9E9E824D13"><enum>(A)</enum><text>Advising as to the
advisability of investing in, purchasing, or selling any specified
asset.</text>
</subparagraph><subparagraph id="H1B6A1FA2918C42B5ADCF9E76FB621613"><enum>(B)</enum><text>Managing,
acquiring, or disposing of any specified asset.</text>
</subparagraph><subparagraph id="H1EEF93F0194B4F2EAF626905E452BDEA"><enum>(C)</enum><text>Arranging
financing with respect to acquiring specified assets.</text>
</subparagraph><subparagraph id="HAE8CD1E46F9E42D38358C0789138B677"><enum>(D)</enum><text>Any activity in
support of any service described in subparagraphs (A) through (C).</text>
</subparagraph></paragraph><paragraph id="HE465C0CB4D264A44BD4F13D8A9DC7DFC"><enum>(3)</enum><header>Investment
partnership</header>
<subparagraph id="H5CC6FE6E1E454ACB8952042FAD3892AB"><enum>(A)</enum><header>In
general</header><text>The term <term>investment partnership</term> means any
partnership if, at the end of any calendar quarter ending after the date of
enactment of this section—</text>
<clause id="HCFF95B2F283346F5B15563C2293DD376"><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="H13CE77622AD34C9280B3579A176D0C54"><enum>(ii)</enum><text>more than half of
the capital of the partnership is attributable to qualified capital interests
which (in the hands of the owners of such interests) constitute property not
held in connection with a trade or business.</text>
</clause></subparagraph><subparagraph id="H303DA07D3151430DA0C3EC351E8CFC1B"><enum>(B)</enum><header>Special rules
for determining if property not held in connection with trade or
business</header><text>Except as otherwise provided by the Secretary, for
purposes of determining whether any interest in a partnership constitutes
property not held in connection with a trade or business under subparagraph
(A)(ii)—</text>
<clause id="H764F266DC60B479F8607FE0B8452F649"><enum>(i)</enum><text>any election under
subsection (e) or (f) of section 475 shall be disregarded, and</text>
</clause><clause id="HC967248320AA4BFAA38BCBBA46DC3A16"><enum>(ii)</enum><text>paragraph (5)(B)
shall not apply.</text>
</clause></subparagraph><subparagraph id="H388AD31E8CA746D3A0D8996ED820F6DE"><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="H6EF9AA0D12194671B0CDA48062475951"><enum>(D)</enum><header>Controlled
groups of entities</header>
<clause id="H217313E38D764C7BA86B5CC3036784E9"><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 held in connection with a trade or
business, 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 held in connection with a trade or
business.</text>
</clause><clause display-inline="no-display-inline" id="HD6D0183E497E4AD7A9824D49AA5DE7B1"><enum>(ii)</enum><header>Controlled
group of entities</header><text display-inline="yes-display-inline">For
purposes of clause (i), the term <term>controlled group of entities</term>
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><subparagraph id="H85B29F4C48E34DFBB48DCDD01E8AA2D1"><enum>(E)</enum><header>Special rule for
corporations</header><text>For purposes of this paragraph, in the case of a
corporation, the determination of whether property is held in connection with a
trade or business shall be determined as if the taxpayer were an
individual.</text>
</subparagraph></paragraph><paragraph id="H2BEA48B1A71147A7B07BE0D12A5C2BF2"><enum>(4)</enum><header>Specified
asset</header><text>The term <term>specified asset</term> 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 display-inline="no-display-inline" id="H0F9B3BCCDB0C489F8898C2A4C3537EC8"><enum>(5)</enum><header>Related
persons</header>
<subparagraph id="H8296750B1DB14BC5974088E61F3C4653"><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="HB55B451304E440B4BA432AC9A2321E8B"><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="H1C2F849FF95F427CA6DEC4CAAA66CEC3"><enum>(d)</enum><header>Exception for
certain capital interests</header>
<paragraph id="HD35E04ED6E074F97842D2BAE7FAA4318"><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="H1CFBC8F447CE4D01ACC45EC15F601341"><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="H316AAF391B8A4C0FA84A9445129C61C2"><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="H6B462D5358224FE1BDAF75B1174F843B"><enum>(2)</enum><header>Authority to
provide exceptions to allocation requirements</header><text display-inline="yes-display-inline">To the extent provided by the Secretary in
regulations or other guidance—</text>
<subparagraph id="HDA1E855D205F4257BD456316FF542258"><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="H6435072D688D4A70AFEAA3783C533372"><enum>(B)</enum><header>No or
insignificant allocations to nonservice providers</header><text display-inline="yes-display-inline">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="H8BC7AE9CFE10455181533437F159F5C3"><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 commented="no" id="HBE8E5D3CBE4E4E299DEE70DD623E1127"><enum>(3)</enum><header>Special rule for
changes in services and capital contributions</header><text display-inline="yes-display-inline">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="H00187C904BD747A285703DAE4FAD81A2"><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="H7B82CDA1003643DAA084E14A798DE46F"><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 display-inline="no-display-inline" id="HD696D9B78F134032801977512707FEBB"><enum>(6)</enum><header>Special rule for
dispositions</header><text display-inline="yes-display-inline">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="H05FDC377C062423080A53DCDA9DB15A6"><enum>(A)</enum><text display-inline="yes-display-inline">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="H795F30FCD2404094864B362332B5AE94"><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 commented="no" display-inline="no-display-inline" id="H297A15F31A234E28980E3FFBBC67C89A"><enum>(7)</enum><header>Qualified
capital interest</header><text>For purposes of this section—</text>
<subparagraph id="H3BEDFFDF4E9C4A9BADB816F4410C3596"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified capital interest</term> means so
much of a partner’s interest in the capital of the partnership as is
attributable to—</text>
<clause commented="no" id="H29B1498F4C304DCF854F9E9E50224F4E"><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 commented="no" id="H357434385BD44435BEA7F40B3D41F293"><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 commented="no" id="HA0205BB101A8420BA1E26A7E339D2F25"><enum>(iii)</enum><text>the excess (if
any) of—</text>
<subclause id="H16D4B22A91BD43C8A653B65CAC8CFF9E"><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="H0DAEEE864FA54CC6BA89C00E8D423A40"><enum>(II)</enum><text>any items of
deduction and loss so taken into account.</text>
</subclause></clause></subparagraph><subparagraph id="H3D2DE42B067C4980A0184E861400C115"><enum>(B)</enum><header>Adjustment to
qualified capital interest</header>
<clause id="H535DB212647D4C9595EA4D38E2023B8C"><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="H6279D9C117A54862A484AA438FC82899"><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="H04ED0D58B29D47DABB52773B8E21903E"><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="H0AC4686291374B339D1A43E7C32B1445"><enum>(8)</enum><header>Treatment of
certain loans</header>
<subparagraph id="H48E7FB6DFBDB40588D2EB650A124AFCA"><enum>(A)</enum><header>Proceeds of
partnership loans not treated as qualified capital interest of service
providing partners</header><text display-inline="yes-display-inline">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 the date of the enactment of this section unless such repayment
is made with the proceeds of a loan or other advance described in the preceding
sentence.</text>
</subparagraph><subparagraph id="H5A2AEF03A1344C93AB0F9C9EE0E697EA"><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="HD715EA19392B44A98AA162864BF2298F"><enum>(e)</enum><header>Other income and
gain in connection with investment management services</header>
<paragraph id="H00E9545D66A44BC8AC41C88D76C7520D"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">If—</text>
<subparagraph id="HC6E98F776AB340A1BCD3C78CDCE63868"><enum>(A)</enum><text>a person performs
(directly or indirectly) investment management services for any investment
entity,</text>
</subparagraph><subparagraph id="HD33501EAB5934509981655F3DAE5D7A2"><enum>(B)</enum><text>such person holds
(directly or indirectly) a disqualified interest with respect to such entity,
and</text>
</subparagraph><subparagraph id="H8B3BF8EB6F9C440EB25D2CFCFD58AED1"><enum>(C)</enum><text display-inline="yes-display-inline">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,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">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.</continuation-text></paragraph><paragraph id="H827E448D6D7A4279ABA094CBCE4E2C57"><enum>(2)</enum><header>Definitions</header><text>For
purposes of this subsection—</text>
<subparagraph id="HD4DBC18DE8BF4D3BA028DE42027542B4"><enum>(A)</enum><header>Disqualified
interest</header>
<clause id="H3835B6BDA7BC49BB8D3571BAEFDAAAEB"><enum>(i)</enum><header>In
general</header><text>The term <term>disqualified interest</term> means, with
respect to any investment entity—</text>
<subclause id="H67C05F3FFF3745B8A1D989BB34993C32"><enum>(I)</enum><text>any interest in
such entity other than indebtedness,</text>
</subclause><subclause id="HC01A48CF5C7D4558ADDF5188B5D8BCB3"><enum>(II)</enum><text>convertible or
contingent debt of such entity,</text>
</subclause><subclause id="H43496E85B925427DA46B3E9A7662A51D"><enum>(III)</enum><text>any option or
other right to acquire property described in subclause (I) or (II), and</text>
</subclause><subclause id="HC63E01F5C3B5443A896020E6DF7ACBD9"><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="H605A1FA1E9F9460D95A7D17D5F61CB09"><enum>(ii)</enum><header>Exceptions</header><text>Such
term shall not include—</text>
<subclause id="H5EBD540885954081B4FE2EAA1F170AE6"><enum>(I)</enum><text>a partnership
interest,</text>
</subclause><subclause id="HE7BC3CC437A842DCA3CA1ABEA449251D"><enum>(II)</enum><text>except as
provided by the Secretary, any interest in a taxable corporation, and</text>
</subclause><subclause id="HD0632D5A542249B9B1684EDA1EA8EB97"><enum>(III)</enum><text>except as
provided by the Secretary, stock in an S corporation.</text>
</subclause></clause></subparagraph><subparagraph id="HF3C502158977474595EEA8EBD86F7641"><enum>(B)</enum><header>Taxable
corporation</header><text>The term <term>taxable corporation</term>
means—</text>
<clause id="H7B5804B41E55421E88E778CAF49E21C5"><enum>(i)</enum><text>a
domestic C corporation, or</text>
</clause><clause id="H62358AC0AB2343A18B4B855DEA68979B"><enum>(ii)</enum><text>a
foreign corporation substantially all of the income of which is—</text>
<subclause id="H43D8509D0F954B3BA778E4B2787F046F"><enum>(I)</enum><text>effectively
connected with the conduct of a trade or business in the United States,
or</text>
</subclause><subclause id="HBDE192DA2F684B7EB6A54B36FC7D13C8"><enum>(II)</enum><text>subject to a
comprehensive foreign income tax (as defined in section 457A(d)(2)).</text>
</subclause></clause></subparagraph><subparagraph id="H1C106DC4CCE146A7A8BFA3D987FF7B17"><enum>(C)</enum><header>Investment
management services</header><text>The term <term>investment management
services</term> means a substantial quantity of any of the services described
in subsection (c)(2).</text>
</subparagraph><subparagraph id="HE9CA26C246BB4B65A34E8457559692C1"><enum>(D)</enum><header>Investment
entity</header><text>The term <term>investment entity</term> means any entity
which, if it were a partnership, would be an investment partnership.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H7FDD60C58FD5499AB49053648CE31DF9"><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 commented="no" id="H2E7C80AC15F84C8A966E0B58142078A7"><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,</text>
</paragraph><paragraph id="H6B3248B5C66F4A6B8B06137C72BCB6DD"><enum>(2)</enum><text display-inline="yes-display-inline">prevent the avoidance of the purposes of
this section, and</text>
</paragraph><paragraph commented="no" id="H3B8BD768818C4AF191EE3A7CBCD52CA2"><enum>(3)</enum><text>coordinate this
section with the other provisions of this title.</text>
</paragraph></subsection><subsection commented="no" id="H7D043EDE1E3C4742AB226AC4C0C01719"><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="H49607A27CAF7459DAA4A7F6AB2D22AC2"><enum>(b)</enum><header>Application of
section 751 to indirect dispositions of investment services partnership
interests</header>
<paragraph id="HC5CEE53783E44212A9805E075C7A5AF8"><enum>(1)</enum><header>In
general</header><text>Subsection (a) of section 751 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 display-inline="no-display-inline" id="HD8C31AE8BF534796B261684E948A522D" style="OLC">
<paragraph id="HBD7226F0EDAB42E99EF0EA4EF3B43D0A"><enum>(3)</enum><text display-inline="yes-display-inline">investment services partnership interests
held by the
partnership,</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H4F5470130786441E8FDBF4A5034673DA"><enum>(2)</enum><header>Certain
distributions treated as sales or exchanges</header><text>Subparagraph (A) of
section 751(b)(1) 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 display-inline="no-display-inline" id="HCB63E95543184F54BA571BE748474998" style="OLC">
<clause id="H04C1C13D414F4B48989CC113367A530A"><enum>(iii)</enum><text display-inline="yes-display-inline">investment services partnership interests
held by the
partnership,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HC2AA590F6B2843DDBF5CCE2DCA6C2523"><enum>(3)</enum><header>Application of
special rules in the case of tiered partnerships</header><text>Subsection (f)
of section 751 is amended—</text>
<subparagraph id="H331E7B109DE54E9797A24BCD8C343FE4"><enum>(A)</enum><text>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 display-inline="no-display-inline" id="HADD9569C71C646BA8ADBF79D3F0B1728" style="OLC">
<paragraph id="H157C33AD7EB5456D8B17B2361FD5106E"><enum>(3)</enum><text display-inline="yes-display-inline">an investment services partnership interest
held by the partnership,</text>
</paragraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HA2E95BCF6D7C46B48E264B764B75633C"><enum>(B)</enum><text>by striking
<quote>partner.</quote> and inserting <quote>partner (other than a partnership
in which it holds an investment services partnership interest).</quote>.</text>
</subparagraph></paragraph><paragraph id="H9A71B9D3F80F4C4899B40EC4C1AAA4B7"><enum>(4)</enum><header>Investment
services partnership interests; qualified capital
interests</header><text>Section 751 is amended by adding at the end the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HABD19B5CFAC34786988B4664A3517DD4" style="OLC">
<subsection id="HF4BFE0AA842C48C1BFB47015E1D25586"><enum>(g)</enum><header>Investment
services partnership interests</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph id="HFAAC5B92632A4E66B07B456F147558BC"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<term>investment services partnership interest</term> has the meaning given
such term by section 710(c).</text>
</paragraph><paragraph id="H2D9DC2D2A8E74AF1B822FCD5793771EF"><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="HF9D8128C344E47208CC0B2192C6DDADD"><enum>(3)</enum><header>Exception for
publicly traded partnerships</header><text>In the case of an exchange of an
interest in a publicly traded partnership (as defined in section 7704) to which
subsection (a) applies—</text>
<subparagraph id="H88F1424FB00B471B9286EFF55FE6EBFE"><enum>(A)</enum><text>this section shall
be applied without regard to subsections (a)(3), (b)(1)(A)(iii), and (f)(3),
and</text>
</subparagraph><subparagraph id="H9ED8829754FB4AE9825009CB8DA56C28"><enum>(B)</enum><text display-inline="yes-display-inline">such partnership shall be treated as owning
its proportionate share of the property of any other partnership in which it is
a partner.</text>
</subparagraph></paragraph><paragraph id="H4811AA64E8B948A5BEFB297AC97BA3B0"><enum>(4)</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="H6035E977A12D43A7B7D0D4405A417E9C"><enum>(5)</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="HE084B8A6E2014EDE95274AF8C2F53A2B"><enum>(6)</enum><header>Prevention of
double counting</header><text display-inline="yes-display-inline">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><paragraph id="HC364E031042642F88D32AD8856815F88"><enum>(7)</enum><header>Valuation
methods</header><text display-inline="yes-display-inline">The Secretary shall
prescribe regulations or other guidance which provide the acceptable methods
for valuing investment services partnership interests for purposes of this
section.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H6D35FB0BF139417D855F0D50111E017A"><enum>(c)</enum><header>Treatment for
purposes of section 7704</header><text>Subsection (d) of section 7704 is
amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H483C7CF14FC946FD8B4C29FE53AD1F73" style="OLC">
<paragraph id="H2C4D89ED13574B098776B88FBB3D4F11"><enum>(6)</enum><header>Income from
certain carried interests not qualified</header>
<subparagraph id="H7A5C785D9E974ED888A132C2FC8AA4E8"><enum>(A)</enum><header>In
general</header><text>Specified carried interest income shall not be treated as
qualifying income.</text>
</subparagraph><subparagraph id="H318BCC5950084F3EA416BAB2F8055637"><enum>(B)</enum><header>Specified
carried interest income</header><text>For purposes of this paragraph—</text>
<clause id="H8B843C29172E411FB1A0837036519D64"><enum>(i)</enum><header>In
general</header><text>The term <term>specified carried interest income</term>
means—</text>
<subclause id="HE4D5FBB97A824419AA8A5CF90FE7D02F"><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="HD23564F53FA74C11B2F52DF827A86B0A"><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="H686BB03FBBA94AFEB7D6977B8E21045F"><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="H31E55E04516E480CB3232BF76CDD903D"><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="H61711AAD7B794CCEB95571F3F5CF6234"><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="H87B3E8D598CD4EB2A78856E388112DC3"><enum>(D)</enum><header>Special rules
for certain partnerships</header>
<clause id="HF79A76EDCB77499F862371591740E2C3"><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="HF8AD5F35E25440AC98AE26BD24F363A2"><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="H47EC79DE6F2D42BF84EB29FEF1A2C509"><enum>(II)</enum><text display-inline="yes-display-inline">Fifty 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="HD24C15CD85BF41C5AB42CD64F5D3A077"><enum>(III)</enum><text>Such partnership
meets the requirements of paragraphs (2), (3), and (4) of section
856(c).</text>
</subclause></clause><clause id="HF3B74FD17FF846E5A6E757D698D4558A"><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="HDF888FAC3D5849E48C1D24384D271CAF"><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 commented="no" id="H526FCEB8A8204AB0AD8CF81C718D25DA"><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="H9DC7455ED2934EEA80F01FA84668F6CE"><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 the date of the
enactment of this
paragraph.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7546864F4C4B49F0B36F883F7FB21E92"><enum>(d)</enum><header>Imposition of
penalty on underpayments</header>
<paragraph id="H459B7B61E5C3455E89E0654BED33F4A9"><enum>(1)</enum><header>In
general</header><text>Subsection (b) of section 6662 is amended by inserting
after paragraph (7) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HE903C63C9D204EB6B624F6FFDE56AA31" style="OLC">
<paragraph id="H07BE26C9616046A4BA3171071797591A"><enum>(8)</enum><text>The application of
section 710(e) or the regulations or other guidance prescribed under section
710(f) to prevent the avoidance of the purposes of section
710.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H66B8449F14014CAEA70990FC46F6C1B6"><enum>(2)</enum><header>Amount of
penalty</header>
<subparagraph id="HD12A5EC29C454D71816C1B68F9EE5AAD"><enum>(A)</enum><header>In
general</header><text>Section 6662 is amended by adding at the end the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HDA3300B3D69342E69E6253246CCC1756" style="OLC">
<subsection id="H932B363BA6044D74B03858D1A9661EDE"><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 display-inline="no-display-inline" id="H88ABB511F2144B0FA80489EA126A7BA1"><enum>(B)</enum><header>Conforming
amendment</header><text>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 display-inline="no-display-inline" id="HD7FC54E3DC9A4606BCA192414335DA18"><enum>(3)</enum><header>Special rules
for application of reasonable cause exception</header><text>Subsection (c) of
section 6664 is amended—</text>
<subparagraph id="HDFD6F858F7EA4D6CABCFA4FA379A7F56"><enum>(A)</enum><text>by redesignating
paragraphs (3) and (4) as paragraphs (4) and (5), respectively;</text>
</subparagraph><subparagraph id="H34F0DFEBA33C4F739C0078AEF8AA1E80"><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="H28712E7430B74FDEBE337376841E10DA"><enum>(C)</enum><text>by inserting after
paragraph (2) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H172416EDEE87475294657071327CF213" style="OLC">
<paragraph id="HACB4E449AB1A416E8E354A6520EAC3EE"><enum>(3)</enum><header>Special rule for
underpayments attributable to investment management services</header>
<subparagraph id="HEAA851E9E898417ABED84B8799BB68A4"><enum>(A)</enum><header>In
general</header><text>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="H0B8B03483C8343B08C3EBE2726E47826"><enum>(i)</enum><text display-inline="yes-display-inline">the relevant facts affecting the tax
treatment of the item are adequately disclosed,</text>
</clause><clause id="HFA41139E3775453BA5D56A22224D7688"><enum>(ii)</enum><text>there is or was
substantial authority for such treatment, and</text>
</clause><clause id="H2D72CB89ABB84D1CBD7D3536675C504D"><enum>(iii)</enum><text>the taxpayer
reasonably believed that such treatment was more likely than not the proper
treatment.</text>
</clause></subparagraph><subparagraph id="H48553A76ECF242B7BC199AD328C43C1A"><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="H3D745F3F2B404EDB8CF2999C1BFF9AE2"><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="HC6FD69F59E9B4E6A9E0589428429697B"><enum>(1)</enum><header>Internal Revenue
Code</header>
<subparagraph id="H839684FC71C04A119C3D258BCAF33459"><enum>(A)</enum><header>In
general</header><text>Section 1402(a) 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 display-inline="no-display-inline" id="H2CE2906D46A14476803E5CBF7BEBBEA3" style="OLC">
<paragraph id="H823722D9F10A4EC18F07A21AFF401E83"><enum>(18)</enum><text display-inline="yes-display-inline">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="H2BBBFDC79A7D41CC8451521355A40723"><enum>(B)</enum><header>Investment
services partnership income or loss</header><text>Section 1402 is amended by
adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H201C3DF217604590A397E48316E959CD" style="OLC">
<subsection id="H0F7EBD9465604CE98F10E03709D4F3E6"><enum>(m)</enum><header>Investment
services partnership income or loss</header><text display-inline="yes-display-inline">For purposes of subsection (a)—</text>
<paragraph commented="no" id="H02869117949D4D44977AE4C3ED962CEB"><enum>(1)</enum><header>In
general</header><text>The term <term>investment services partnership income or
loss</term> means, with respect to any investment services partnership interest
(as defined in section 710(c)) or disqualified interest (as defined in section
710(e)), the net of—</text>
<subparagraph commented="no" id="H56E601EC82084415B7A32E2045432233"><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 commented="no" id="H40B0BCD24A064A6896B3C2CBF1B06157"><enum>(B)</enum><text>all items of
income, gain, loss, and deduction allocated to such interest, and</text>
</subparagraph><subparagraph commented="no" id="HBE7FA3C7EDCE4B2197EC30416CBB4551"><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="H3E4FE83FC247449A80EDF2A646721EDE"><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).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H0FCB1B2B44C141388A90122973C9576A"><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 display-inline="no-display-inline" id="HFA82B85986244B2195CA68A554398349" style="OLC">
<paragraph id="H1815DF0C7261482FA395185DD9A30BA5"><enum>(17)</enum><text display-inline="yes-display-inline">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="H111A53C1ED1843C6B5B243D4B50D5318"><enum>(f)</enum><header>Conforming
amendments</header>
<paragraph id="H3C43806E048F4935B5218411370A6546"><enum>(1)</enum><text>Subsection (d) of
section 731 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="HB914624AB1FD4A60A2601C72167C6A3F"><enum>(2)</enum><text>Section 741 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="HC68C05AD03064C4FBE58D719C159CFA8"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for part I of
subchapter K of chapter 1 is amended by adding at the end the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="HC3CF0E4427354964A749F424AEF478F7" style="OLC">
<toc container-level="quoted-block-container" idref="HEE22702F3BDE4BE5BC35214A76B5069E" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H81E230B949B349C4AB5E4D4A70CA990C" 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="H802F0282698B4169A3158A6EC85E5F79"><enum>(g)</enum><header>Effective
date</header>
<paragraph id="H9B6822A29C674BD6B3DDF39CB617179E"><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 the
date of the enactment of this Act.</text>
</paragraph><paragraph id="H24A1653E114A4E07AE252B31A1094002"><enum>(2)</enum><header>Partnership
taxable years which include effective date</header><text display-inline="yes-display-inline">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 the date of the enactment of this Act, the amount
of the net capital gain referred to in such section shall be treated as being
the lesser of the net capital gain for the entire partnership taxable year or
the net capital gain 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="H6E3A7D2A3265409BB1886315AD3AA3FC"><enum>(3)</enum><header>Dispositions of
partnership interests</header>
<subparagraph id="HD89579ABF9D14F6B8AE64B2F2AF21B92"><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 the date of the enactment
of this Act.</text>
</subparagraph><subparagraph id="H587F8352FC4F49FA8F41A04922E67AD1"><enum>(B)</enum><header>Indirect
dispositions</header><text>The amendments made by subsection (b) shall apply to
transactions after the date of the enactment of this Act.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD39BADEB9AB248D683586AD3C8BD70C9"><enum>(4)</enum><header>Other income and
gain in connection with investment management services</header><text display-inline="yes-display-inline">Section 710(e) of such Code (as added by
this section) shall take effect on the date of the enactment of this
Act.</text>
</paragraph></subsection></section></subtitle><subtitle id="id9506D945823D4652B2828D64E8891B8D"><enum>F</enum><header>Raising the
capital gains rate</header>
<section id="id6FCEB5C9D90B4089B26AD8E738085EA1"><enum>351.</enum><header>Increased
capital gains rate for high-income individuals</header>
<subsection id="idEBE8A861D1464FD4B0CD1AD9813D86F7"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 1(h) is amended—</text>
<paragraph id="id4A7005A4E57A4DBF8C5327A052AC3105"><enum>(1)</enum><text>in subparagraph
(C), by striking <quote>of the adjusted net capital gain</quote> and all that
follows, and inserting “of the lesser of—</text>
<quoted-block display-inline="no-display-inline" id="id8D68B9B55CDB49E696F35A0765336F45" style="OLC">
<clause id="idD9677082877148CE9AC523E6D716F6CC"><enum>(i)</enum><text>so much of the
adjusted net capital gain (or, if less, taxable income) as exceeds the amount
on which a tax is determined under subparagraph (B), or</text>
</clause><clause id="id18E85F95FBCE4CC8BC5449AB5F8F679C"><enum>(ii)</enum><text>the excess (if
any) of—</text>
<subclause id="id91CBC1E56D564FA9832B1639FAA4A4BA"><enum>(I)</enum><text>$50,000 ($100,000
in the case of a joint return), over</text>
</subclause><subclause id="idB45C77E63874406B8B31B056C8B2E042"><enum>(II)</enum><text>the sum of the
amounts on which a tax is determined under subparagraphs (A) and (B),
and</text>
</subclause></clause><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id66B8651F15FE43A1A13634B933399217"><enum>(2)</enum><text>by striking
subparagraphs (D) and (E) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idBCB5AB9BDF2E411B96428F8CC0D66BB4" style="OLC">
<subparagraph id="id3CCAAE802BA84719B0866123BEB92F0F"><enum>(D)</enum><text>the lesser
of—</text>
<clause id="idAE734565372E4D1EBF88F7F2C3D24EC6"><enum>(i)</enum><text>28 percent,
or</text>
</clause><clause id="id48534C7A4BFF4BABAC3E51EE7F2F52D5"><enum>(ii)</enum><text>the highest
marginal tax rate determined under this section (determined without regard to
this subsection) which would be imposed on the taxable income of the taxpayer
in excess of the sum of the amount on which tax is determined under the
preceding subparagraphs of this paragraph,</text>
</clause><continuation-text continuation-text-level="subparagraph">multiplied by such amount of
taxable
income.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="idD4B86CD2DDC24BB28F0C5172AF158C43"><enum>(b)</enum><header>Minimum
tax</header><text>Paragraph (3) of section 55(b) is amended—</text>
<paragraph commented="no" id="id36ED6138E29D42D895F2A0D5BCABB169"><enum>(1)</enum><text>in subparagraph
(C), by striking <quote>of the adjusted net capital gain</quote> and all that
follows, and inserting</text>
<quoted-block display-inline="yes-display-inline" id="id0190DEBCE1FC4BE79294F08512F10630" style="OLC">
<text>of the lesser
of—</text><clause commented="no" id="id69FE2160AA164E539C58C42B61F0081D"><enum>(i)</enum><text>so much of the
adjusted net capital gain (or, if less, taxable excess) as exceeds the amount
on which tax is determined under subparagraph (B),
or</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
<quoted-block display-inline="no-display-inline" id="id879C597E653A4D3491C28B4A2AE00798" style="OLC">
<clause commented="no" id="id0EA5EEEE9CB84D0B80FA199180E441CA"><enum>(ii)</enum><text>the excess
described in section 1(h)(1)(C)(ii),
plus</text>
</clause><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="idF4B626D8E262499287E6C01A97BD1455"><enum>(2)</enum><text>by striking
subparagraphs (D) inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idC287F0FB393C488F838DA47901E191A2" style="OLC">
<subparagraph id="id337CBB139A194E62987669A984765B23"><enum>(D)</enum><text>the lesser
of—</text>
<clause id="idAB177CC341B34F708D7CB0836FEC41BA"><enum>(i)</enum><text>28 percent,
or</text>
</clause><clause id="id0B06CE67201E4374942C4FA02661B838"><enum>(ii)</enum><text>the highest
marginal tax rate determined under section 1 (determined without regard to
subsection (h)) which would be imposed on the taxable excess of the taxpayer in
excess of the sum of the amount on which tax is determined under the preceding
subparagraphs of this paragraph,</text>
</clause><continuation-text continuation-text-level="subparagraph">multiplied by such amount of
taxable
excess.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idE935BA530645438D9A0321288DE57722"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph commented="no" id="idA07255590D294C379E9D9FA4F5C25B01"><enum>(1)</enum><text>The following
provisions are amended by striking <quote>15 percent</quote> and inserting
<quote>28 percent</quote>:</text>
<subparagraph commented="no" id="idE8AA4201FA4145ADA5CAEA5FA0312938"><enum>(A)</enum><text>Section
1445(e)(1).</text>
</subparagraph><subparagraph commented="no" id="idFBD60252C8B64BFAAC1593D48EFE034A"><enum>(B)</enum><text>The second
sentence of section 7518(g)(6)(A).</text>
</subparagraph><subparagraph commented="no" id="id19D5A7D1014F4381A1BAB5289D8B46BF"><enum>(C)</enum><text>Section
53511(f)(2) of title 46, United States Code.</text>
</subparagraph></paragraph><paragraph id="id4858C0DF84C048A8983FC363FEC67884"><enum>(2)</enum><text display-inline="yes-display-inline">Section 1445(e)(6) is amended by striking
<quote>15 percent (20 percent in the case of taxable years beginning after
December 31, 2010)</quote> and inserting <quote>28 percent</quote>.</text>
</paragraph></subsection><subsection id="idAD23A8969C2E4A179ECBCD26BA9CC71A"><enum>(d)</enum><header>Effective
dates</header>
<paragraph id="idAA90C7456F844629AFC28AEBA79E9BFB"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to taxable years beginning after December 31,
2012.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8A5B1F800BCF46FEB1FB8874F677B9C3"><enum>(2)</enum><header>Withholding</header><text>The
amendments made by paragraphs (1)(A) and (2) of subsection (c) shall apply to
amounts paid on or after January 1, 2013.</text>
</paragraph></subsection></section></subtitle><subtitle id="idAB7B99D665264E67B66DFE9E5CE14D99"><enum>G</enum><header>Pension Guaranty
Improvement</header>
<section id="id31049362CD994AB1B393073209C8CB81"><enum>361.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote>Pension Guaranty Improvement Act of 2012</quote>.</text>
</section><section id="idB949175031D845558E044CA1FBC21539"><enum>362.</enum><header>Findings</header><text display-inline="no-display-inline">Congress makes the following
findings:</text>
<paragraph id="id87d35b111aee48a99cf3863cbdb86f58"><enum>(1)</enum><text>The Pension
Benefit Guaranty Corporation (referred to in this section as the
<term>Corporation</term>) plays a critical role in helping to protect the
retirement security of the 44,000,000 workers and retirees with defined benefit
pension plans.</text>
</paragraph><paragraph id="ide3a70bf98557437e8d239b8652ff1853"><enum>(2)</enum><text>The Corporation
has struggled over the years to address deficiencies and implement long-term
strategies for success.</text>
</paragraph><paragraph id="id51a8a374b1e4408daf7eb7623dce143f"><enum>(3)</enum><text>The Corporation
faces long-term fiscal challenges, which have been exacerbated by the recent
financial crisis.</text>
</paragraph><paragraph id="idf8cf30b5b1054f33b64b4a4f66dce593"><enum>(4)</enum><text>It is necessary
for Congress to take immediate steps to improve the governance of the
Corporation and ensure appropriate oversight by, and accountability to, key
stakeholders, including labor, plan sponsors, and retirees.</text>
</paragraph><paragraph id="id844ecb1bba104f13b3e4f8bca411b867"><enum>(5)</enum><text>It is further
necessary to takes steps to ensure that the guaranty provided by the
Corporation is fair to participants and that the Corporation has sufficient
resources to satisfy its obligations.</text>
</paragraph></section><section id="idB61A9FB9C0E042EEA46EFB9CFB1F822D"><enum>363.</enum><header>Pension
Benefit Guaranty Corporation Governance Improvement</header>
<subsection id="id13B4C8E9738A4A448C734C4FC5211BFE"><enum>(a)</enum><header>Board of
Directors of the Pension Benefit Guaranty Corporation</header>
<paragraph id="id354B72A769FF4CEFB5463BAE8CA1C50F"><enum>(1)</enum><header>In
general</header><text>Section 4002(d) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1302(d)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id4A72294D9C2741BB850CE5344CD26C44" style="OLC">
<subsection id="idACBB97A5040C4F1193439168C4AD8C86"><enum>(d)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id8FD43074D80E40FAA04BD9017862DB36"><enum>(1)</enum><text>The board of directors
of the corporation consists of—</text>
<subparagraph id="id898AB2653B2D4DF089605BAC86DA6D34" indent="up1"><enum>(A)</enum><text>the Secretary of the Treasury, the
Secretary of Labor, and the Secretary of Commerce; and</text>
</subparagraph><subparagraph id="id0EB842C7232B42A6AEF84EB8BC7ECFB8" indent="up1"><enum>(B)</enum><text>4 other members.</text>
</subparagraph></paragraph><paragraph id="id9DA25A8593CE4CD0AE2F402328550393" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id969C1933961542BAA470DEEE0B36B8F1"><enum>(A)</enum><text>The members of the
board of directors described under paragraph (1)(B)—</text>
<clause id="id7E87360ACEB34500B481F5B1D77D40FC" indent="up1"><enum>(i)</enum><text>shall be appointed by the President;
and</text>
</clause><clause id="idD457CD5999EE4946B21CF9BF08B2EE90" indent="up1"><enum>(ii)</enum><text>shall have expertise relevant to
business of the corporation, which may include experience with insurance
programs, defined benefit pension plans, or institutional asset
management.</text>
</clause></subparagraph><subparagraph id="id24AC2514433B496D977B768F347C6D72" indent="up1"><enum>(B)</enum><text>Except as provided in subparagraph
(C)(ii), each member of the board of directors described under paragraph (1)(B)
shall be appointed for a term of 4 years.</text>
</subparagraph><subparagraph id="idD543373C9AA445ADA1BBCCE2007CA37B" indent="up1"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="idDB8494C78A944AD4A5F11ADCB2C992C2"><enum>(i)</enum><text>The initial members of
the board of directors described under paragraph (1)(B) shall be appointed as
soon as practicable after the date of enactment of the Pension Guaranty
Improvement Act of 2012.</text>
</clause><clause id="id217A832A647D48B487B26F8467E48EED" indent="up1"><enum>(ii)</enum><text>Of the initial members of the board
of directors described under paragraph (1)(B) and appointed under clause
(i)—</text>
<subclause id="id3064076B32CC40D8BF1276F247CD0DFE"><enum>(I)</enum><text>the term of one such member shall end
on December 31, 2013;</text>
</subclause><subclause id="id13DF75A99E5541CA9A6FA41C0D9FB011"><enum>(II)</enum><text>the term of one such member shall end
on December 31, 2014;</text>
</subclause><subclause id="id9AC5822958EF496283C33D6E2DC90E86"><enum>(III)</enum><text>the term of one such member shall
end on December 31, 2015; and</text>
</subclause><subclause id="id12D8052C0D6547A7B25E23325E611255"><enum>(IV)</enum><text>the term of one such member shall end
on December 31, 2016.</text>
</subclause></clause></subparagraph><subparagraph id="id16734EDA09E64D63BD4DD2CDBF338D7F" indent="up1"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="idBE148296C8B04342AC5EDDAA16359FE0"><enum>(i)</enum><text>Not more than 2 members
of the board of directors described under paragraph (1)(B) may be members of
the same political party.</text>
</clause><clause id="id8CD0C3FC947D4D2A8F4D21FBD857C857" indent="up1"><enum>(ii)</enum><text>At least 1 member of the board of
directors shall be an enrolled actuary or other financial expert.</text>
</clause><clause id="idD3A44DF02673487EA9C7A648621E26D4" indent="up1"><enum>(iii)</enum><text>At least 1 member of the board of
directors shall have experience with the issues unique to retired plan
participants.</text>
</clause></subparagraph><subparagraph id="idAF6C2C2BF6F24902809FB0125E9DBBB0" indent="up1"><enum>(E)</enum><clause commented="no" display-inline="yes-display-inline" id="id1C80535D858C43C39191BD67570D9897"><enum>(i)</enum><text>Any vacancy on the
board of directors shall be filled in the manner in which the original
appointment was made.</text>
</clause><clause id="id024C061D6F4647DEBD76254C4C355809" indent="up1"><enum>(ii)</enum><text>In the event of vacancy in the
office of the Secretary of the Treasury, the Secretary of Labor, or the
Secretary of Commerce and pending the appointment of a successor, or during the
absence or disability of such a Secretary, the applicable acting Secretary
shall be a member of the board of directors.</text>
</clause><clause id="idA817C65408124396934E4934517576B0" indent="up1"><enum>(iii)</enum><text>A member of the board of directors
appointed to fill a vacancy occurring before the expiration of the term for
which the predecessor of such member was appointed shall be appointed for the
remainder of such term.</text>
</clause><clause id="id7388422EB80B419381A2802BB28AA0CB" indent="up1"><enum>(iv)</enum><text>A member of the board of directors
described under paragraph (1)(B) may continue to serve after the expiration of
the term of office for which such member was appointed until a successor has
been appointed.</text>
</clause></subparagraph><subparagraph id="idBCFC4A70FD714D55B7DA4B0890144A61" indent="up1"><enum>(F)</enum><text>A member of the board of directors
described under paragraph (1)(B) may be removed for good cause by the President
or by unanimous decision of the other members of the board of directors.</text>
</subparagraph><subparagraph id="idD6B7561DA23D4B93AA19808E594B4048" indent="up1"><enum>(G)</enum><text>A majority of the members of the
board of directors in office shall constitute a quorum for the transaction of
business. The vote of the majority of the members present and voting at a
meeting at which a quorum is present shall be the act of the board of
directors.</text>
</subparagraph></paragraph><paragraph id="id7A8B9AB9885E44C397141EF77A978DEE" indent="up1"><enum>(3)</enum><text>Each member of the board of directors
described under paragraph (1)(A) shall designate in writing an official, not
below the level of Assistant Secretary, to serve as the voting representative
of such member on the board. Such designation shall be effective until revoked
or until a date or event specified therein. Any such representative may refer
for board action any matter under consideration by the designating board
member.</text>
</paragraph><paragraph id="id6FA813C5150C47AAB546D7A3D1DF9B51" indent="up1"><enum>(4)</enum><text>The members of the board of directors
described under—</text>
<subparagraph id="id10C1287D135E43099BAF38ECE20BA4AD"><enum>(A)</enum><text>subparagraph (A) of paragraph (1),
shall serve without compensation, but shall be reimbursed for travel,
subsistence, and other necessary expenses incurred in the performance of their
duties as members of the board; and</text>
</subparagraph><subparagraph id="id0FD8DEB068A54FC8A5766D2DD6AEF4AF"><enum>(B)</enum><text>subparagraph (B) of paragraph (1)
shall, for each day (including traveltime) during which they are attending
meetings or conferences of the board or otherwise engaged in the business of
the board, be compensated at a rate fixed by the corporation which is not in
excess of the daily equivalent of the annual rate of basic pay for a position
at level IV of the Executive Schedule under section 5315 of title 5, United
States Code, and while away from their homes or regular places of business they
may be allowed travel expenses, including per diem in lieu of subsistence, as
authorized by section 5703 of title 5, United States Code.</text>
</subparagraph></paragraph><paragraph id="id487D1FD5C8CF42FC9DAADE19736B0C55" indent="up1"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id4E717333642F4AB3BCD216AE5BB83A03"><enum>(A)</enum><text>The Secretary of Labor
is the chairman of the board of directors.</text>
</subparagraph><subparagraph id="id8262627DFFA445439D1640F39844C84B" indent="up1"><enum>(B)</enum><text>The President shall designate 1 of
the members appointed under paragraph (2) as the vice-chairman of the board of
directors.</text>
</subparagraph></paragraph><paragraph id="id1AA91409CFA84B188791211D2A8405B8" indent="up1"><enum>(6)</enum><text>The Inspector General of the
corporation shall report to the board of directors, and not less than twice a
year, shall attend a meeting of the board of directors to provide a report on
the activities and findings of the Inspector General, including with respect to
monitoring and review of the operations of the corporation.</text>
</paragraph><paragraph id="id54C8A511832747A5A89BFF627B3D926E" indent="up1"><enum>(7)</enum><text>The General Counsel of the
corporation shall—</text>
<subparagraph id="id4077A512B51B4FB8B2A113AAD267D2CB"><enum>(A)</enum><text>serve as the secretary to the board of
directors, and shall advise such board as needed; and</text>
</subparagraph><subparagraph id="id5B58BA9E36B644FBA4494037C446433C"><enum>(B)</enum><text>have overall responsibility for all
legal matters affecting the corporation and provide the corporation with legal
advice and opinions on all matters of law affecting the corporation, except
that the authority of the General Counsel shall not extend to the Office of
Inspector General and the independent legal counsel of such Office.</text>
</subparagraph></paragraph><paragraph id="id7DFDF89380EE4CBDA989ADE3204D33E6" indent="up1"><enum>(8)</enum><text>Notwithstanding any other provision
of this Act, the Office of Inspector General and the legal counsel of such
Office is independent of the management of the corporation and the General
Counsel of the corporation.</text>
</paragraph><paragraph commented="no" id="id2D2E35A8BE384FD18CB93323513CF67B" indent="up1"><enum>(9)</enum><text>The board of directors may appoint
and fix the compensation of employees as may be required to enable the board of
directors to perform its duties. The board of directors shall determine the
qualifications and duties of such employees and may appoint and fix the
compensation of experts and consultants in accordance with the provisions of
section 3109 of title 5, United States
Code.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id36804E64E70B4F6086A3C7AA70F1B781"><enum>(2)</enum><header>Number of
meetings; public availability</header><text>Section 4002(e) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1302(e)) is amended—</text>
<subparagraph id="idA8126E75204945E49E67E52FD44E9ED7"><enum>(A)</enum><text>by striking
<quote>The board</quote> and inserting <quote>(1) The board</quote>;</text>
</subparagraph><subparagraph id="id3C2A346B546B4D25940FABA9299FAEE5"><enum>(B)</enum><text>by striking
<quote>the corporation.</quote> and inserting <quote>the corporation, but in no
case less than 4 times a year with not less than 5 members present. Not less
than 1 meeting of the board of directors during each year shall be a joint
meeting with the advisory committee under subsection (h).</quote>; and</text>
</subparagraph><subparagraph id="idAD2819EC37554A88BFADB740FE10032F"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idEF509A09C0834D13A8BB31283F15CEE5" style="OLC">
<paragraph id="id5918306CB13C43DFB8B13BE475CC82A5" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id11B1D4DCF33B48A0A5BAFAF4E9006EA2"><enum>(A)</enum><text>Except as provided in
subparagraph (B), the chairman of the board of directors shall make available
to the public the minutes from each meeting of the board of directors.</text>
</subparagraph><subparagraph id="idD6F6AEF9F8494C4B8F72760E50F5FE07" indent="up1"><enum>(B)</enum><text>The minutes of a meeting of the board
of directors, or a portion thereof, shall not be subject to disclosure under
subparagraph (A) if the chairman reasonably determines that such minutes, or
portion thereof, contain confidential information relating to financial
activities or personnel decisions of the corporation.</text>
</subparagraph><subparagraph id="id522F6E57A3114980B968CCA750A21D1B" indent="up1"><enum>(C)</enum><text>The minutes of a meeting, or portion
of thereof, exempt from disclosure pursuant to subparagraph (B) shall be exempt
from disclosure under section 552(b) of title 5, United States Code. For
purposes of such section 552 of title 5, United States Code, this subparagraph
shall be considered a statute described in subsection (b)(3) of such section
552.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id8E884A7B27884279885A78A572B6A79D"><enum>(3)</enum><header>Advisory
committee</header>
<subparagraph id="idC9AEC1DB63A748F8A1724A7B23BBAEB5"><enum>(A)</enum><header>Issues
considered by the Committee</header><text>Section 4002(h)(1) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1302(h)(1)) is
amended—</text>
<clause id="ID7cca9b02932240b389c8f21454cc4856"><enum>(i)</enum><text>by
striking <quote>, and (D)</quote> and inserting <quote>, (D)</quote>;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDa8cbe8d337a04072a5052c90eb5238b9"><enum>(ii)</enum><text>by striking
<quote>time to time.</quote> and inserting <quote>time to time, and (E) other
issues as determined appropriate by the advisory committee.</quote>.</text>
</clause></subparagraph><subparagraph id="id593C7AFF953C4C6BAE7B62ECDA70C2D3"><enum>(B)</enum><header>Joint
meeting</header><text>Section 4002(h)(3) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1302(h)(3)) is amended by adding at the end the
following: <quote>Not less than 1 meeting of the advisory committee during each
year shall be a joint meeting with the board of directors under subsection
(e).</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="id7AF06CB8ECA04741A651B39819675E53"><enum>(b)</enum><header>Avoiding
conflicts of interest</header><text display-inline="yes-display-inline">Section
4002 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1302) is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id646BEF7ADED34748BCCF743241B307BD" style="OLC">
<subsection id="idD97B526F8F804393B5212676FDEFCC5B"><enum>(j)</enum><header>Conflicts of
interest</header>
<paragraph id="id83D43A0B0AF3403DA0BF744743A069AB"><enum>(1)</enum><header>In
general</header><text>The Director of the corporation and each member of the
board of directors shall not participate in a decision of the corporation in
which the Director or such member has a direct financial interest. The Director
of the corporation shall not participate in any activities that would present a
potential conflict of interest or appearance of a conflict of interest without
approval of the board of directors.</text>
</paragraph><paragraph id="idFFF13CBE01A540499D9B78B06D3E1AF4"><enum>(2)</enum><header>Establishment
of policy</header><text>The board of directors shall establish a policy that
will inform the identification of potential conflicts of interests of the
members of the board of directors and mitigate perceived conflicts of interest
of such members and the Director of the
corporation.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id99A559FF7D364970AD1CEB5B8BC0806F"><enum>(c)</enum><header>Risk
mitigation</header><text display-inline="yes-display-inline">Section 4002 of
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1302), as
amended by subsection (b), is further amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id6EF9199DD3CC4BC994E4032BD3C0A715" style="OLC">
<subsection id="idB95F99FB39624ABD8263A5F7432394A5"><enum>(k)</enum><header>Risk management
officer</header><text>The corporation shall have a risk management officer
whose duties include evaluating and mitigating the risk that the corporation
might experience. The individual in such position shall coordinate the risk
management efforts of the corporation, explain risks and controls to senior
management and the board of directors of the corporation, and make
recommendations.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="id92C81A0B2EC34A5C9093876A8C2FF70A"><enum>(d)</enum><header>Director</header><text display-inline="yes-display-inline">Section 4002(c) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1302(c)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idA256CB5C47B9415EBA6D1D931FA4C23D" style="OLC">
<subsection commented="no" id="id4B6CC0EDA0434E41951C6DC20863B893"><enum>(c)</enum><text>The Director
shall be accountable to the board of directors. The Director shall serve for a
term of 5 years unless removed by the President or the board of directors
before the expiration of such 5-year
term.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idB3BFE3EA03914551A62F9BDF77D93C53"><enum>(e)</enum><header>Senses of
Congress</header>
<paragraph id="id5AD813B7C3324E17B7FBE46522DC9BD0"><enum>(1)</enum><header>Formation of
committees</header><text display-inline="yes-display-inline">It is the sense of
Congress that the board of directors of the Pension Benefit Guaranty
Corporation established under section 4002 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1302), as amended by this section, should form
committees, including an audit committee and an investment committee, to
enhance the overall effectiveness of the board of directors.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id925D219BB4FF4CA8A01DA98FB05B8C60"><enum>(2)</enum><header>Advisory
committee</header><text>It is the sense of Congress that the advisory committee
to the Pension Benefit Guaranty Corporation established under section 4002 of
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1302), as
amended by this section, should provide to the board of directors of such
corporation policy recommendations regarding changes to the law that would be
beneficial to the corporation or the voluntary private pension system.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id0756ED0E288846FBB8A4412B4D1A9B0C"><enum>364.</enum><header>Participant
and plan sponsor advocate</header>
<subsection id="idC6FDBA0B54A243C7A3D1EE5158705691"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Title IV of the
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1301 et seq.) is
amended by inserting after section 4003 the following:</text>
<quoted-block display-inline="no-display-inline" id="idFD9F43CFB65440CE9C0EDFEB02F2ED33" style="OLC">
<section id="id6F7588DD01434C309D5E9A6AE3CA7BC1"><enum>4004.</enum><header>Participant
and Plan Sponsor Advocate</header>
<subsection id="id73915F3EA20540FDB0465ACF7259ED82"><enum>(a)</enum><header>In
general</header><text>The Secretary of Labor, in consultation with the Director
of the corporation and pension participant and plan sponsor advocacy groups,
shall select a Participant and Plan Sponsor Advocate. Such selected individual
shall have demonstrated experience in the area of pensions and pension
participant assistance.</text>
</subsection><subsection id="id9F5477C3F0F14C5EB7721FD91E0A008F"><enum>(b)</enum><header>Duties</header><text>The
Participant and Plan Sponsor Advocate shall—</text>
<paragraph id="IDd5dd536619b64bae92491967cb2eb773"><enum>(1)</enum><text>act as a liaison
between the corporation, sponsors of defined benefit pension plans insured by
the corporation, and participants in pension plans trusteed by the
corporation;</text>
</paragraph><paragraph id="ID2612035251d5418aa1f9220cb4d11006"><enum>(2)</enum><text>advocate for the
full attainment of the rights of participants in plans trusteed by the
corporation;</text>
</paragraph><paragraph id="IDbbe5f891a9a74044b1507d96ad7a3869"><enum>(3)</enum><text>assist pension
plan sponsors and participants in resolving disputes with the
corporation;</text>
</paragraph><paragraph id="ID49dba076ca1a4d88bdeade54a2bda2cc"><enum>(4)</enum><text>identify areas in
which participants and plan sponsors have persistent problems in dealings with
the corporation;</text>
</paragraph><paragraph id="ID93eb6645e99341d4b2a16defd14e9125"><enum>(5)</enum><text>to the extent
possible, propose changes in the administrative practices of the corporation to
mitigate problems;</text>
</paragraph><paragraph id="IDde83ac743bf046dc88d3435bf5c16aad"><enum>(6)</enum><text>identify
potential legislative changes which may be appropriate to mitigate problems;
and</text>
</paragraph><paragraph id="ID46b03a60f6fe4b909ad27d0ddaf1ffac"><enum>(7)</enum><text>refer instances
of fraud, waste, and abuse, and violations of law to the Office of the
Inspector General of the corporation.</text>
</paragraph></subsection><subsection id="idD93376DD64D84F7FB02EE727A640B04F"><enum>(c)</enum><header>Removal</header><text>If
the Participant and Plan Sponsor Advocate is removed from office or is
transferred to another position or location within the Department of Labor, the
Secretary shall communicate in writing the reasons for any such removal or
transfer to Congress not less than 30 days before the removal or transfer.
Nothing in this subsection shall prohibit a personnel action otherwise
authorized by law, other than transfer or removal.</text>
</subsection><subsection id="id1FBD3FF32D444D6C8658086145D01AC1"><enum>(d)</enum><header>Compensation</header><text>The
annual rate of basic pay for the Participant and Plan Sponsor Advocate shall be
the rate payable for level III of the Executive Schedule under section 5314 of
title 5, United States Code, plus 3 percent.</text>
</subsection><subsection id="id2927A87435644123B13AEF6C4585E149"><enum>(e)</enum><header>Annual
Report</header>
<paragraph id="id745FF0C8BA6C4137B104BBECBC90678A"><enum>(1)</enum><header>In
general</header><text>Not later than December 31 of each calendar year, the
Participant and Plan Sponsor Advocate shall report to the Health, Education,
Labor, and Pensions Committee of the Senate, the Committee on Finance of the
Senate, the Committee on Education and the Workforce of the House of
Representatives, and the Committee on Ways and Means of the House of
Representatives on the activities of the Office of the Participant and Plan
Sponsor Advocate during the fiscal year ending during such calendar
year.</text>
</paragraph><paragraph id="id414BC414A44148CFA2D3DE3089ADC446"><enum>(2)</enum><header>Content</header><text>Each
report submitted under paragraph (1) shall—</text>
<subparagraph id="IDcefaebd4442b44279251dc926f20d755"><enum>(A)</enum><text>describe the
activities, and evaluate the effectiveness of the Participant and Plan Sponsor
Advocate during the preceding year;</text>
</subparagraph><subparagraph id="ID7f8443cec42e4bceadd145ad09d73e7d"><enum>(B)</enum><text>identify
significant problems the Participant and Plan Sponsor Advocate has
identified;</text>
</subparagraph><subparagraph id="ID329cefde9fd14168b2d05a73f7a1f87f"><enum>(C)</enum><text>include specific
legislative and regulatory changes to address the problems; and</text>
</subparagraph><subparagraph id="IDf3184cb21fdd44218cbe0cb312e1530b"><enum>(D)</enum><text>identify any
actions taken to correct problems identified in any previous report.</text>
</subparagraph></paragraph><paragraph id="idE039B5BDE1204C35A7977B0D721A874C"><enum>(3)</enum><header>Concurrent
submission</header><text>The Participant and Plan Sponsor Advocate shall submit
a copy of each report to the Secretary of Labor, the Director of the
corporation, and any other appropriate official at the same time such report is
submitted to the committees of Congress under paragraph
(1).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id766046BCEFD9493A89608612DDF62D64"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of contents in section 1 of the Employee
Retirement Income Security Act of 1974 is amended by inserting after the item
relating to section 4003 the following new item:</text>
<quoted-block display-inline="no-display-inline" id="idB69C85B3154D451694612553985D867C" style="OLC">
<toc>
<toc-entry bold="off" level="section">4004. Participant and Plan
Sponsor
Advocate.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="id67C88221F979453A8B2CE96F09BB0A96"><enum>365.</enum><header>Increase in
multiemployer plan benefit guarantee and annual premium rates</header>
<subsection id="id7A69415DCFE24C178718F157EA1CB60A"><enum>(a)</enum><header>Monthly benefit
guarantee</header>
<paragraph id="id80697328A3734E0690E4293164433D1F"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (A) of
section 4022A(c)(1) of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1322a(c)(1)) is amended to read as follows:</text>
<quoted-block act-name="" id="id36B939EF93114334948BC7C6980BA4C0" style="OLC">
<subparagraph id="id32CD15F00AD744148CBFA0D05767CB5E" indent="up1"><enum>(A)</enum><text>100 percent of the accrual rate up to
$11, plus the sum of—</text>
<clause id="idA4189AB2C24A4034B4E529F6439D58FF"><enum>(i)</enum><text>75 percent of the lesser of—</text>
<subclause id="id6C59445157E04B9098CB0A66C5F9C4FC"><enum>(I)</enum><text>$33, or</text>
</subclause><subclause id="idBFC6973C54294799A1A1BC82521A7B48"><enum>(II)</enum><text>the accrual rate, if any, in excess of
$11 and up to $44, and</text>
</subclause></clause><clause id="id2A4569AF3481441D94367D14DC4DEFA2"><enum>(ii)</enum><text>50 percent of the lesser
of—</text>
<subclause id="idFA778DCAFF944FDEAD910B7E54C68609"><enum>(I)</enum><text>$40, or</text>
</subclause><subclause id="idE113BEDD9F1E4C1E9CF943CF6952F1A8"><enum>(II)</enum><text>the accrual rate, if any, in excess of
$44,
and</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id0A0FFBB1CD1B4F4B9F92E879D1815DDD"><enum>(2)</enum><header>Adjustment for
inflation</header><text>Section 4022A(c) of such Act (29 U.S.C. 1322a(c)) is
amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idF5B58B0F960743B591609BD1E4481024" style="OLC">
<paragraph id="id38875F3EC59447FD90804018403C9F68" indent="up1"><enum>(4)</enum><text>For each plan year beginning in a
calendar year after 2011, there shall be substituted for each dollar amount
specified in subparagraph (A) of paragraph (1) an amount equal to the greater
of—</text>
<subparagraph id="id29C643933F1F432DB110F28E68C4FA84"><enum>(A)</enum><text>the product derived by multiplying
such dollar amount specified in subparagraph (A) of paragraph (1) by the ratio
of—</text>
<clause id="id69ADB590EDBA4460A5703B7E1988D8AF"><enum>(i)</enum><text>the national average wage index (as
defined in section 209(k)(1) of the Social Security Act) for the first of the 2
calendar years preceding the calendar year in which such plan year begins,
to</text>
</clause><clause id="idA099A9E8DB3543B29A7ED0C6DCC0FD5C"><enum>(ii)</enum><text>the national average wage index
(as so defined) for 2009; and</text>
</clause></subparagraph><subparagraph id="id4BA365A283984F1E9D26D94535401A60"><enum>(B)</enum><text>such dollar amount in effect under
subparagraph (A) of paragraph (1) for plan years beginning in the preceding
calendar year.</text>
</subparagraph></paragraph><quoted-block-continuation-text quoted-block-continuation-text-level="subsection">If the
amount determined under this paragraph is not a multiple of $1, such product
shall be rounded to the nearest multiple of
$1.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id4CB0CC6C50B545E0A24D6A585BF6D5FF"><enum>(3)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to plans
terminating or first receiving financial assistance from the Pension Benefit
Guaranty Corporation (within the meaning under section 4261 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1431)) after the date of the
enactment of this Act.</text>
</paragraph></subsection><subsection id="id5E417B2F2FE9412BB6EAE76B51061ECA"><enum>(b)</enum><header>Required
report</header><text>Section 4022A(f) of such Act (29 U.S.C. 1322a(f)) is
amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id97C1D687A0F94B27841D2899C414FF9C" style="OLC">
<paragraph id="idC5934E3D21BF48D29617BCF9B975AC37" indent="up1"><enum>(5)</enum><text>Notwithstanding any other provision
of this subsection, the next report required to be submitted to Congress under
this subsection after the date of enactment of the Pension Guaranty Improvement
Act of 2012 shall be submitted not later than December 31,
2013.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id64718F19A5B44EE7ABAFCF453329641F"><enum>(c)</enum><header>Annual premium
rate</header>
<paragraph id="idC1B62AE62AB5493787887E3D02EDEDEA"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 4006(a)(3) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)(3)) is
amended—</text>
<subparagraph id="id1076A6D583B3485C893863B6A3319334"><enum>(A)</enum><text>by inserting
<quote>and before January 1, 2012,</quote> after <quote>December 31,
2005,</quote> in clause (iv),</text>
</subparagraph><subparagraph id="idFD4AD1A4298A47AE9B1788E35ACEE229"><enum>(B)</enum><text>by striking
<quote>or</quote> at the end of clause (iii),</text>
</subparagraph><subparagraph id="id5227B5D50C444B9BB7E9D7B756BAABD2"><enum>(C)</enum><text>by striking the
period at the end of clause (iv) and inserting <quote>, or</quote>, and</text>
</subparagraph><subparagraph id="id1FE45BA721F947EB82A16A8E82817B76"><enum>(D)</enum><text>by adding at the
end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="idC1AD880F3234404E86B8A11BC57758E7" style="OLC">
<clause id="idCF559DDCE92C4400B91FB3D4821BAB14" indent="up2"><enum>(v)</enum><text>in the case of a multiemployer plan,
for plan years beginning after December 31, 2011, $18.00 for each individual
who is a participant in such plan during the applicable plan
year.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id23112B60AFD34C7BAE754794B81EB35E"><enum>(2)</enum><header>Inflation
adjustment</header><text>Paragraph (3) of section 4006(a) of such Act (29
U.S.C. 1306(a)) is amended by adding at the end the following new
subparagraph:</text>
<quoted-block act-name="" display-inline="no-display-inline" id="id7086CA4FBDA14053BAE4BA7A2BD1BCF2" style="OLC">
<subparagraph id="idB009555DD7394C7D9DD830AC58A42922" indent="up2"><enum>(I)</enum><text>For each plan year beginning in a
calendar year after 2011, there shall be substituted for the premium rate
specified in clause (v) of subparagraph (A) an amount equal to the greater
of—</text>
<clause id="id0DEDB664C3374B28A2DD98B78B4D1ACE"><enum>(i)</enum><text>the product derived by multiplying the
premium rate specified in clause (v) of subparagraph (A) by the ratio
of—</text>
<subclause id="idAE960D298CFE4462B204E7CA162166DA"><enum>(I)</enum><text>the national average wage index (as
defined in section 209(k)(1) of the Social Security Act) for the first of the 2
calendar years preceding the calendar year in which such plan year begins,
to</text>
</subclause><subclause id="id9674B86A5AFC473C9D9396954D048B1E"><enum>(II)</enum><text>the national average wage index
(as so defined) for 2009; and</text>
</subclause></clause><clause id="id7698CD567B014039A8C57DED8FC18350"><enum>(ii)</enum><text>the premium rate in effect under
clause (v) of subparagraph (A) for plan years beginning in the preceding
calendar year.</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph" indent="subsection">If the amount
determined under this subparagraph is not a multiple of $1, such product shall
be rounded to the nearest multiple of
$1.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="id50B699AB634E434E941ADCF82F6331C4"><enum>366.</enum><header>Improving
single employer program solvency</header>
<subsection id="idFB49CC4858EB452BAC85D900AB7EAA7A"><enum>(a)</enum><header>Flat-Rate
premium</header>
<paragraph id="id1C3116F530B34037A9147C5A02314CA5"><enum>(1)</enum><header>In
general</header><text>Clause (i) of section 4006(a)(3)(A) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)(3)(A)) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id9060CFD6DE894D9CBF31C98EDB23CB5A" style="OLC">
<clause id="id98EC63A0D3424F5092E4DB03FF559BDA" indent="up2"><enum>(i)</enum><text>in the case of a single-employer plan,
an amount for each individual who is a participant in such plan during the plan
year equal to the sum of the additional premium (if any) determined under
subparagraph (E) and—</text>
<subclause id="id9BF3EA07492D4AADA3EAD9CEA54BD29A"><enum>(I)</enum><text>for plan years beginning after
December 31, 2005 and before January 1, 2012, $30;</text>
</subclause><subclause id="idDD4517BA2D5A47D38C5DF3D4AB0F5313"><enum>(II)</enum><text>for plan years beginning after
December 31, 2011, and before January 1, 2013, $42;</text>
</subclause><subclause id="id0BFB9166E7044B2B84EC914F014C293E"><enum>(III)</enum><text>for plan years beginning after
December 31, 2012, and before January 1, 2014, $48; and</text>
</subclause><subclause id="id78EC70BE6FF7488A9751B3A6ABA6A847"><enum>(IV)</enum><text>for plan years beginning after
December 31, 2013,
$54;</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id34FEF421B0B54BED9045C94957F74C1F"><enum>(2)</enum><header>Adjustment for
inflation</header><text>Subparagraph (F) of section 4006(a)(3) of such Act (29
U.S.C. 1306(a)(3)) is amended by adding at the end the following flush
sentence: <quote>For each plan year beginning in a calendar year after 2011,
clause (i)(II) shall be applied by substituting <quote>2009</quote> for
<quote>2004</quote>.</quote>.</text>
</paragraph></subsection><subsection id="id6E6D4A35D8F9486897F3518F27FADCC1"><enum>(b)</enum><header>Variable-Rate
premium adjustment for inflation</header><text>Section 4006(a)(3) of such Act
(29 U.S.C. 1306(a)(3)), as amended by section 365, is further amended by adding
at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="idD3B68F9F47E34701BDC0BB9B3D7427AA" style="OLC">
<subparagraph id="idA04A658BBE9744D1A5C7C495B77B89DC" indent="up2"><enum>(J)</enum><text>For each plan year beginning in a
calendar year after 2011, there shall be substituted for the premium rate
specified in clause (ii) of subparagraph (E) an amount equal to the greater
of—</text>
<clause id="idAD8DD22817A7490EADD6D0F78B478A00"><enum>(i)</enum><text>the product derived by multiplying the
premium rate specified in clause (ii) of subparagraph (E) by the ratio
of—</text>
<subclause id="id8345F0C3C82D48E59DCC80D1442229BB"><enum>(I)</enum><text>the national average wage index (as
defined in section 209(k)(1) of the Social Security Act) for the first of the 2
calendar years preceding the calendar year in which such plan year begins,
to</text>
</subclause><subclause id="idEED66083EFEB4EEF966B818E04BBD49B"><enum>(II)</enum><text>the national average wage index
(as so defined) for 2009; and</text>
</subclause></clause><clause id="idC15CCF32077B4F999F6BE15950691E52"><enum>(ii)</enum><text>the premium rate in effect under
clause (ii) of subparagraph (E) for plan years beginning in the preceding
calendar year.</text>
</clause></subparagraph><quoted-block-continuation-text quoted-block-continuation-text-level="subsection">If the
amount determined under this subparagraph is not a multiple of $1, such product
shall be rounded to the nearest multiple of
$1.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></subtitle><subtitle id="idF689CE5CA31F45049CA5FB67BEBD8A0A"><enum>H</enum><header>Pension and
Participant Protection</header>
<section id="idF22DE3FB0163442D86DB0DABAB35F3ED"><enum>371.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote><short-title>Pension and Participant
Protect Act</short-title></quote>.</text>
</section><section id="id3D89C786A4184156B9BC4BBCA3AD5258"><enum>372.</enum><header>Findings</header><text display-inline="no-display-inline">Congress makes the following
findings:</text>
<paragraph id="id7b1326a9f6c64078a62b75482ee48680"><enum>(1)</enum><text>The ongoing
effects of the financial crisis have put enormous stress on the defined benefit
pension system.</text>
</paragraph><paragraph id="idfc688ac3e7024e339cac9ffbeedb82c2"><enum>(2)</enum><text>It is in the best
interest of plan participants for Congress to take immediate steps to relieve
that stress by ensuring that pension contributions are less volatile and more
predictable, provided that participants are afforded additional protections
should their pensions be terminated in bankruptcy.</text>
</paragraph><paragraph id="idbe5defdcd6c54773a3625039368642f0"><enum>(3)</enum><text>It is further in
the best interest of participants for Congress to take future steps to both
reduce the volatility in pension funding requirements and better protect plan
participants and retirees from loss.</text>
</paragraph></section><section id="id5450EFA73EB34AE7958A60504FA64DD3"><enum>373.</enum><header>Pension
funding stabilization</header>
<subsection id="IDe151418851a746dd90f053a9b435cc88"><enum>(a)</enum><header>Amendments to
Employee Retirement Income Security Act of 1974</header>
<paragraph id="IDf6ae8fa1633e4c54b2cbf5238d925d50"><enum>(1)</enum><header>In
general</header><text>Subparagraph (C) of section 303(h)(2) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1083(h)(2)) is amended by
adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="idE055DC27507B4377989C5D800CCCAEA6" style="OLC">
<clause id="id82DE2EF7AA4C472F8AE3377C04A7D63F"><enum>(iv)</enum><header>Segment rate
stabilization</header>
<subclause id="id59C326038ABD4E42852C48FAADE0FF36"><enum>(I)</enum><header>In
general</header><text>If a segment rate described in clause (i), (ii), or (iii)
with respect to any applicable month (determined without regard to this clause)
is less than the applicable minimum percentage, or more than the applicable
maximum percentage, of the average of the segment rates described in such
clause for years in the 25-year period ending with September 30 of the calendar
year preceding the calendar year in which the plan year begins, then the
segment rate described in such clause with respect to the applicable month
shall be equal to the applicable minimum percentage or the applicable maximum
percentage of such average, whichever is closest. The Secretary of the Treasury
shall determine such average on an annual basis and may prescribe equivalent
rates for years in any such 25-year period for which the rates described in any
such clause are not available.</text>
</subclause><subclause id="id3654D2C1EBC54A95ADA86DAE13FCE3C5"><enum>(II)</enum><header>Applicable
minimum percentage; applicable maximum percentage</header><text>For purposes of
subclause (I), the applicable minimum percentage and the applicable maximum
percentage for a plan year beginning in a calendar year shall be determined in
accordance with the following table:</text>
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 1 text, 2 num" table-type="">
<tgroup cols="3" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec coldef="txt" colname="column1" colwidth="202pts" min-data-value="180"></colspec><colspec coldef="fig" colname="column2" colwidth="75.75pt" min-data-value="10"></colspec><colspec coldef="fig" colname="column3" colwidth="67.25pt" min-data-value="10" rowsep="0"></colspec>
<thead>
<row><entry align="center" colname="column1" morerows="0" namest="column1" rowsep="1">If the calendar year is:</entry><entry align="center" colname="column2" morerows="0" namest="column2" rowsep="1">The<linebreak></linebreak> applicable<linebreak></linebreak> minimum<linebreak></linebreak>
percentage<linebreak></linebreak> is:</entry><entry align="center" colname="column3" morerows="0" namest="column3" rowsep="1">The<linebreak></linebreak> applicable<linebreak></linebreak>
maximum<linebreak></linebreak> percentage<linebreak></linebreak> is:</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2012</entry><entry align="right" colname="column2" rowsep="0">90%</entry><entry align="right" colname="column3" rowsep="0">110%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2013</entry><entry align="right" colname="column2" rowsep="0">85%</entry><entry align="right" colname="column3" rowsep="0">115%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2014</entry><entry align="right" colname="column2" rowsep="0">80%</entry><entry align="right" colname="column3" rowsep="0">120%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2015</entry><entry align="right" colname="column2" rowsep="0">75%</entry><entry align="right" colname="column3" rowsep="0">125%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">After 2015</entry><entry align="right" colname="column2" rowsep="0">70%</entry><entry align="right" colname="column3" rowsep="0">130%.</entry>
</row>
</tbody>
</tgroup></table>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID66898c2f1e044f2fb36c114af04c9891"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="IDf3096fa60baf44f894ad7cbe8e1c3c20"><enum>(A)</enum><text>Subparagraph (F)
of section 303(h)(2) of such Act (29 U.S.C. 1083(h)(2)) is amended by inserting
<quote>and the averages determined under subparagraph (C)(iv)</quote> after
<quote>subparagraph (C)</quote>.</text>
</subparagraph><subparagraph id="ID62fd5979bd794c92b34c04c1f826f517"><enum>(B)</enum><text>Clauses (ii) and
(iii) of section 205(g)(3)(B) of such Act (29 U.S.C. 1055(g)(3)(B)) are each
amended by striking <quote>section 303(h)(2)(C)</quote> and inserting
<quote>section 303(h)(2)(C) (determined by not taking into account any
adjustment under clause (iv) thereof)</quote>.</text>
</subparagraph><subparagraph id="ID96c0f1d0464b4fe698563f8c0db9cba0"><enum>(C)</enum><text>Clause (iv) of
section 4006(a)(3)(E) of such Act (29 U.S.C. 1306(a)(3)(E)) is amended by
striking <quote>section 303(h)(2)(C)</quote> and inserting <quote>section
303(h)(2)(C) (notwithstanding any regulations issued by the corporation,
determined by not taking into account any adjustment under clause (iv)
thereof)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID372e7107d52d42579038cd83391b3a17"><enum>(b)</enum><header>Amendments to
Internal Revenue Code of 1986</header>
<paragraph id="IDc38fffd1d1ea4d1fa7d1ad36426454f1"><enum>(1)</enum><header>In
general</header><text>Subparagraph (C) of section 430(h)(2) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
clause:</text>
<quoted-block display-inline="no-display-inline" id="id7EEF239776F2496F915ED91CAA4201C0" style="OLC">
<clause id="ID80f589bcb2e848aba0eb1c92c29f4074"><enum>(iv)</enum><header>Segment rate
stabilization</header>
<subclause id="id38B504222D554A2183D9710D8637A88F"><enum>(I)</enum><header>In
general</header><text>If a segment rate described in clause (i), (ii), or (iii)
with respect to any applicable month (determined without regard to this clause)
is less than the applicable minimum percentage, or more than the applicable
maximum percentage, of the average of the segment rates described in such
clause for years in the 25-year period ending with September 30 of the calendar
year preceding the calendar year in which the plan year begins, then the
segment rate described in such clause with respect to the applicable month
shall be equal to the applicable minimum percentage or the applicable maximum
percentage of such average, whichever is closest. The Secretary shall determine
such average on an annual basis and may prescribe equivalent rates for years in
any such 25-year period for which the rates described in any such clause are
not available.</text>
</subclause><subclause id="id135DD8A3B0FC49218512B12AB7BF6D83"><enum>(II)</enum><header>Applicable
minimum percentage; applicable maximum percentage</header><text>For purposes of
subclause (I), the applicable minimum percentage and the applicable maximum
percentage for a plan year beginning in a calendar year shall be determined in
accordance with the following table:</text>
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 1 text, 2 num" table-type="">
<tgroup cols="3" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec coldef="txt" colname="column1" colwidth="202pts" min-data-value="180"></colspec><colspec coldef="fig" colname="column2" colwidth="75.75pt" min-data-value="10"></colspec><colspec coldef="fig" colname="column3" colwidth="78.50pt" min-data-value="10" rowsep="0"></colspec>
<thead>
<row><entry align="center" colname="column1" morerows="0" namest="column1" rowsep="1">If the calendar year is:</entry><entry align="center" colname="column2" morerows="0" namest="column2" rowsep="1">The<linebreak></linebreak> applicable<linebreak></linebreak> minimum<linebreak></linebreak>
percentage<linebreak></linebreak> is:</entry><entry align="center" colname="column3" morerows="0" namest="column3" rowsep="1">The<linebreak></linebreak> applicable<linebreak></linebreak>
maximum<linebreak></linebreak> percentage<linebreak></linebreak> is:</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2012</entry><entry align="right" colname="column2" rowsep="0">90%</entry><entry align="right" colname="column3" rowsep="0">110%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2013</entry><entry align="right" colname="column2" rowsep="0">85%</entry><entry align="right" colname="column3" rowsep="0">115%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2014</entry><entry align="right" colname="column2" rowsep="0">80%</entry><entry align="right" colname="column3" rowsep="0">120%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2015</entry><entry align="right" colname="column2" rowsep="0">75%</entry><entry align="right" colname="column3" rowsep="0">125%</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">After 2015</entry><entry align="right" colname="column2" rowsep="0">70%</entry><entry align="right" colname="column3" rowsep="0">130%.</entry>
</row>
</tbody>
</tgroup></table>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDfaf197c2c39946669aa2c67b7f35dbd3"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="id494DAC920FBF47E9BAF6C095CC4515C3"><enum>(A)</enum><text>Paragraph (6) of
section 404(o) of such Code is amended by inserting <quote>(determined by not
taking into account any adjustment under clause (iv) of subsection (h)(2)(C)
thereof)</quote> before the period.</text>
</subparagraph><subparagraph id="ID7a92d83f1acb4aa881dd2c2aca735bd6"><enum>(B)</enum><text>Subparagraph (F)
of section 430(h)(2) of such Code is amended by inserting <quote>and the
averages determined under subparagraph (C)(iv)</quote> after
<quote>subparagraph (C)</quote>.</text>
</subparagraph><subparagraph id="IDad1c0bdf6c33461b8f579615a63f408a"><enum>(C)</enum><text>Subparagraphs (C)
and (D) of section 417(e)(3) of such Code are each amended by striking
<quote>section 430(h)(2)(C)</quote> and inserting <quote>section 430(h)(2)(C)
(determined by not taking into account any adjustment under clause (iv)
thereof)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="IDd576375339ea44da87d17d93ff2c37dd"><enum>(c)</enum><header>Effective
date</header>
<paragraph id="idCFCCB671E88C43F680A829DAD8E51AB0"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply with
respect to plan years beginning after December 31, 2011.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9EBBB389882A42ADA3045E53F602B22C"><enum>(2)</enum><header>Exception</header><text>A
plan sponsor may elect not to have the amendments made by this section apply to
any plan year beginning on or before the date of the enactment of this Act
solely for purposes of determining the adjusted funding target attainment
percentage under sections 436 of the Internal Revenue Code of 1986 and 206(g)
of the Employee Retirement Income Security Act of 1974 for such plan year,
provided that the plan sponsor made such determination in good faith and
without an intent to trigger any statutorily required restrictions on benefits.
A plan shall not be treated as failing to meet the requirements of sections
411(d)(6) of such Code and 204(g) of such Act solely by reason of an election
under this paragraph.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id2A62ED4DAED24E769F840B285EF61A59"><enum>374.</enum><header>Congressional
commitment to encouraging pensions</header><text display-inline="no-display-inline">Not later than December 31, 2012, the
Committee on Health, Education, Labor, and Pensions of the Senate and the
Committee on Education and the Workforce of the House of Representatives shall
issue a report providing recommendations to improve and expand the defined
benefit pension system. Such report shall include recommendations
concerning—</text>
<paragraph id="idb2f55f93a9e64b76aaaf347b69469cae"><enum>(1)</enum><text>measures to
further stabilize pension contribution rates;</text>
</paragraph><paragraph id="id472bbd2cb4b24807928529069ee33436"><enum>(2)</enum><text>additional or
expanded options to improve pension funding flexibility for plan sponsors
suffering a temporary business hardship;</text>
</paragraph><paragraph id="id163ec4ad864a40e09a24f4de24e7aee1"><enum>(3)</enum><text>incentives for
plans sponsors to establish or maintain pension plans permitting new entrants
and to encourage plan sponsors to unfreeze their pension plans; and</text>
</paragraph><paragraph id="idfda178a747c9488481046f4dc5a02492"><enum>(4)</enum><text>modifications to
the pension guaranty system and bankruptcy law necessary or appropriate to
protect plan participants and retirees from inequitable treatment.</text>
</paragraph></section><section id="idFEFC5374C9ED42268E8C50AC3DD2E3AC"><enum>375.</enum><header>Participant
protection in bankruptcy</header><text display-inline="no-display-inline">Sections 4022(g) and 4044(e) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1322(g) and 1344(e)), as
added by section 404 of the Pension Protection Act of 2006, are repealed as of
October 1, 2011, and shall not apply with respect to proceedings initiated
under title 11, United States Code, or under any similar Federal law or law of
a State or political subdivision, on or after such date.</text>
</section></subtitle><subtitle id="id0FFBA2EB7C8E4E7080E2F94468FA94AA"><enum>I</enum><header>Fair playing
field</header>
<section id="id4C4379E71AB3416A9CA0F1C756F35760"><enum>381.</enum><header>Short title;
findings; purposes</header>
<subsection id="H163A899F173E4540A059B9FD9D272E68"><enum>(a)</enum><header>Short
title</header><text display-inline="yes-display-inline">This subtitle may be
cited as the <quote><short-title>Fair Playing Field Act of
2012</short-title></quote>.</text>
</subsection><subsection id="HA5FEBFD3D0D04C80B95E5252453F3B2D"><enum>(b)</enum><header>Findings</header><text display-inline="yes-display-inline">Congress makes the following
findings:</text>
<paragraph id="HDC017D826294453DB1FBA717234AE174"><enum>(1)</enum><text display-inline="yes-display-inline">In 1978, Congress was concerned that lack
of clarity as to the proper classification of some workers, increased IRS
enforcement activity, and retroactive application by IRS of interpretations
that were arguably new had caused hardships for some small businesses and other
taxpayers and confusion as to the applicable rules.</text>
</paragraph><paragraph id="HA2194778E34B4EE7A014E4C00B11E6B9"><enum>(2)</enum><text>To allow time to
develop a comprehensive approach to the problem, Congress enacted section 530
of the Revenue Act of 1978 as an interim measure protecting taxpayers from
liability for misclassification if the taxpayer has a reasonable basis for
classifying a worker as an independent contractor and meets certain other
conditions. In addition, the Act prohibited the Secretary of the Treasury from
publishing regulations or revenue rulings on workers’ employment tax status
pending the expected near-term enactment of clarifying legislation.</text>
</paragraph><paragraph id="HF280B886EC324D3EA1EAC2912BD36EB2"><enum>(3)</enum><text>During the ensuing
33 years, Congress made section 530 of the Revenue Act of 1978 permanent,
however, changes in working relationships and the continued prohibition on new
guidance have increased the uncertainty as to the proper classification of
workers.</text>
</paragraph><paragraph id="HB6D4064B67084B9FB2D75E0A7D5D95F4"><enum>(4)</enum><text>Many workers are
properly classified as independent contractors. In other instances, workers who
are employees are being treated as independent contractors. Such
misclassification for tax purposes contributes to inequities in the competitive
positions of businesses and to the Federal and State tax gap, and may also
result in misclassification for other purposes, such as denial of unemployment
benefits, workplace health and safety protections, and retirement or other
benefits or protections available to employees.</text>
</paragraph><paragraph id="HCEA015EA6FC0467D82C38D4CF38E8646"><enum>(5)</enum><text>Workers,
businesses, and other taxpayers will benefit from clear guidance regarding
employment tax status. In the interest of fairness and in view of many service
recipients’ reliance on current section 530, such guidance should apply only
prospectively.</text>
</paragraph></subsection><subsection id="H9C41E3C0054B4BEC8576F60A2949625F"><enum>(c)</enum><header>Purposes</header><text display-inline="yes-display-inline">The purposes of this subtitle are to permit
the Secretary of the Treasury to provide guidance allowing workers and
businesses to clearly understand the proper Federal tax classification of
workers and to provide relief allowing an orderly transition to new rules
designed to increase certainty and uniformity of treatment.</text>
</subsection></section><section id="HFD96E61930B341B7B1B5C23DB13D023B"><enum>382.</enum><header>Authority to
issue guidance clarifying employment status for purposes of employment
taxes</header>
<subsection id="HE37B1C5B85D04BC0833C95FEC1C732F7"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Chapter 25 of the
Internal Revenue Code of 1986 is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="H8882CAAAC7BB48F08807ECF88364A9AE" style="OLC">
<section id="HA37019B6F67F41848B7EC8A81A242C76"><enum>3511.</enum><header>Authority to
issue guidance clarifying employment status</header>
<subsection id="HBD8725350D5F4F67AF078B7F8F4BE5FA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary shall
issue such regulations or other guidance as the Secretary determines to be
necessary or appropriate to clarify the proper employment status of individuals
for purposes of any tax imposed by this subtitle.</text>
</subsection><subsection id="HC674D7C05F3E444E99D89C5ECCC07F32"><enum>(b)</enum><header>Prohibition on
retroactive assessments</header>
<paragraph id="HA84BF577BB1B4E05BECA8687DCD0852A"><enum>(1)</enum><header>In
general</header><text>If—</text>
<subparagraph id="H338ECBFB96374497830199DC3A235C53"><enum>(A)</enum><text>for purposes of
any tax imposed by this subtitle, the taxpayer did not treat an individual as
an employee for any period before the reclassification date with respect to
such individual, and</text>
</subparagraph><subparagraph id="HAB7611F99F42489887A5BC870428A7CD"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of periods after December 31,
1978, and before such reclassification date, all Federal tax returns (including
information returns) required to be filed by the taxpayer with respect to such
individual for such period are filed on a basis consistent with the taxpayer’s
treatment of such individual as not being an employee,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">then, for
purposes of applying such taxes for periods before such reclassification date
with respect to the taxpayer, the individual shall be deemed not to be an
employee unless the taxpayer had no reasonable basis for not treating such
individual as an employee.</continuation-text></paragraph><paragraph display-inline="no-display-inline" id="H5D0DADC80FEA4AF1A3B40987E52E4C0F"><enum>(2)</enum><header>Statutory
standards providing one method of satisfying the requirements of paragraph
(1)</header><text>For purposes of paragraph (1), a taxpayer shall in any case
be treated as having a reasonable basis for not treating an individual as an
employee for a period if the taxpayer’s treatment of such individual for such
period was in reasonable reliance on any of the following:</text>
<subparagraph id="HEB6A102F05B04B54BCE4880B0B8D321D"><enum>(A)</enum><text>Judicial
precedent, published rulings, technical advice with respect to the taxpayer, or
a letter ruling to the taxpayer.</text>
</subparagraph><subparagraph id="H703C670156B2483192C2E8C050DEFF3A"><enum>(B)</enum><text>A past Internal
Revenue Service audit of the taxpayer in which there was no assessment
attributable to the treatment (for purposes of any tax imposed by this
subtitle) of the individuals holding positions substantially similar to the
position held by such individual.</text>
</subparagraph><subparagraph id="H98923514EB1347E3B8988ECFCA16B738"><enum>(C)</enum><text>Long-standing
recognized practice of a significant segment of the industry in which such
individual was engaged.</text>
</subparagraph></paragraph><paragraph id="H26BBCFE4F10C428DB56D83805B000303"><enum>(3)</enum><header>Consistency
required in the case of prior tax treatment</header><text>Paragraph (1) shall
not apply with respect to the treatment of any individual (hereafter in this
paragraph referred to as the reclassified individual) for purposes of any tax
imposed by this subtitle for any period ending after December 31, 1978, if the
taxpayer (or a predecessor) has treated any individual holding a substantially
similar position as an employee for purposes of any tax imposed by this
subtitle for any period beginning after December 31, 1977, and ending before
the reclassification date with respect to such reclassified individual.</text>
</paragraph></subsection><subsection id="H5C46192CBE6A4FC19F1FF7CE12B6D517"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="H3669A17F87634661ACD3B7CB9A86D29B"><enum>(1)</enum><header>Reclassification
date</header>
<subparagraph id="HAAE118BBF98D41ADA1F473A8D1B2EFF2"><enum>(A)</enum><header>In
general</header><text>The term <term>reclassification date</term> means, with
respect to any individual, the earlier of—</text>
<clause id="H710A661BE877491B8818B589B95183BD"><enum>(i)</enum><text>the first day of
the first calendar quarter beginning more than 180 days after the date of an
employee classification determination with respect to such individual,
or</text>
</clause><clause id="H00E66C54C8844DBFAD5A792BF72EEF1D"><enum>(ii)</enum><text display-inline="yes-display-inline">the effective date of the first applicable
final regulation issued by the Secretary under subsection (a) with respect to
such individual (or, if later, the first day of the first calendar quarter
beginning more than 180 days after such regulation is issued).</text>
</clause></subparagraph><subparagraph id="H6399448A504A4A638619186983590497"><enum>(B)</enum><header>Employee
classification determination</header><text display-inline="yes-display-inline">The term <term>employee classification
determination</term> means, with respect to any individual, a determination by
the Secretary, in connection with an audit of the taxpayer which is described
in section 7436 and which commences after the date which is 1 year after the
date of the enactment of this section, that a class of individuals holding
positions with such taxpayer which are substantially similar to the position
held by such individual are employees.</text>
</subparagraph><subparagraph id="H40DA80BB05F34ACF860C84D69EC3DD0B"><enum>(C)</enum><header>First applicable
final regulation</header><text display-inline="yes-display-inline">The term
<term>first applicable final regulation</term> means, with respect to any
individual, the first final regulation (or other guidance of general
applicability) which sets forth the factors for determining the employment
status of a class of individuals holding positions substantially similar to the
position held by such individual.</text>
</subparagraph></paragraph><paragraph id="HA1787CA94F904B5693F16E769D211227"><enum>(2)</enum><header>Employment
status</header><text>The term <term>employment status</term> means the status
of an individual, under the usual common law rules applicable in determining
the employer-employee relationship, as an employee or as an independent
contractor (or other individual who is not an employee).</text>
</paragraph></subsection><subsection id="H64F84A710E5542BDB0717191C4B44302"><enum>(d)</enum><header>Continuation of
certain special rules</header>
<paragraph display-inline="no-display-inline" id="H6750F631BA054D5BBA3CA3293EA7AB69"><enum>(1)</enum><header>Exception for
certain skilled workers</header><text>Subsection (b) shall not apply in the
case of an individual who, pursuant to an arrangement between the taxpayer and
another person, provides services for such other person as an engineer,
designer, drafter, computer programmer, systems analyst, or other similarly
skilled worker engaged in a similar line of work.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H699BABCC448A41BE932F0E078C6086BC"><enum>(2)</enum><header>Notice of
availability of section</header><text>An officer or employee of the Internal
Revenue Service shall, before or at the commencement of any audit inquiry
relating to the employment status of one or more individuals who perform
services for the taxpayer, provide the taxpayer with a written notice of the
provisions of this section.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H80F3528FA71A4D9E8B7611F04A58D512"><enum>(3)</enum><header>Rules relating
to statutory standards</header><text>For purposes of subsection (b)(2)—</text>
<subparagraph id="H0F05DF2D72FB48978DE49581AF5CFC9C"><enum>(A)</enum><text>a taxpayer may not
rely on an audit commenced after December 31, 1996, for purposes of
subparagraph (B) thereof unless such audit included an examination for purposes
of any tax imposed by this subtitle whether the individual involved (or any
individual holding a position substantially similar to the position held by the
individual involved) should be treated as an employee of the taxpayer,</text>
</subparagraph><subparagraph id="HC29BAFDF20DE4A7F86E1B2F7048AD153"><enum>(B)</enum><text>in no event shall
the significant segment requirement of subparagraph (C) thereof be construed to
require a reasonable showing of the practice of more than 25 percent of the
industry (determined by not taking into account the taxpayer), and</text>
</subparagraph><subparagraph id="H1E13AC763B034EC09396DB62100AF4D0"><enum>(C)</enum><text>in applying the
long-standing recognized practice requirement of subparagraph (C)
thereof—</text>
<clause id="H3D621C7BFDDD4743B19897ACA4F69104"><enum>(i)</enum><text>such requirement
shall not be construed as requiring the practice to have continued for more
than 10 years, and</text>
</clause><clause id="HEBAA0A69E52743D49E84BF5D2ABBBC73"><enum>(ii)</enum><text>a
practice shall not fail to be treated as long-standing merely because such
practice began after 1978.</text>
</clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H43A59CA59B774C4E98DA5B6F647766E3"><enum>(4)</enum><header>Availability of
safe harbors</header><text>Nothing in this section shall be construed to
provide that subsection (b) only applies where the individual involved is
otherwise an employee of the taxpayer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1176C0E5B28749E790131C3829B83BB9"><enum>(5)</enum><header>Burden of
proof</header>
<subparagraph commented="no" id="H0EA4C9A3093343A9889C8378A479C7B0"><enum>(A)</enum><header>In
general</header><text>If—</text>
<clause commented="no" id="H8D58021034114D84965801235E1A6D3E"><enum>(i)</enum><text>a taxpayer
establishes a prima facie case that it was reasonable not to treat an
individual as an employee for purposes of subsection (b), and</text>
</clause><clause commented="no" id="H608E6007DADB447E88F504661BFD29B0"><enum>(ii)</enum><text>the taxpayer has
fully cooperated with reasonable requests from the Secretary,</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">then the burden of proof with
respect to such treatment shall be on the Secretary.</continuation-text></subparagraph><subparagraph commented="no" id="H8358F8D8AF344B00B42DE97B012DBA49"><enum>(B)</enum><header>Exception for
other reasonable basis</header><text>In the case of any issue involving whether
the taxpayer had a reasonable basis not to treat an individual as an employee
for purposes of subsection (b), subparagraph (A) shall only apply for purposes
of determining whether the taxpayer meets the requirements of subparagraph (A),
(B), or (C) of subsection (b)(2).</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HC7318697E1EA4B49833D78F4FAADFF16"><enum>(6)</enum><header>Preservation of
prior period safe harbor</header><text>If—</text>
<subparagraph id="H07307C749BB747E8AE3553C01BBA65C0"><enum>(A)</enum><text>an individual
would (but for the treatment referred to in subparagraph (B)) be deemed not to
be an employee of the taxpayer under subsection (b) for any prior period,
and</text>
</subparagraph><subparagraph id="HFC144161FD52447E9484BB78AA175C13"><enum>(B)</enum><text>such individual is
treated by the taxpayer as an employee for purposes of the taxes imposed by
this subtitle for any subsequent period,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">then, for
purposes of applying such taxes for such prior period with respect to the
taxpayer, the individual shall be deemed not to be an employee.</continuation-text></paragraph><paragraph id="H32B3B802B6D84D9F92C964CFB06672D2"><enum>(7)</enum><header>Substantially
similar position</header><text>For purposes of subsection (b) and this
subsection, the determination as to whether an individual holds a position
substantially similar to a position held by another individual shall include
consideration of the relationship between the taxpayer and such
individuals.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HDD3B199327984E44811BC1EE3518C41F"><enum>(8)</enum><header>Treatment of
test room supervisors and proctors who assist in the administration of college
entrance and placement exams</header>
<subparagraph id="H0FABA82E6C694A54813656712E30323A"><enum>(A)</enum><header>In
general</header><text>In the case of an individual described in subparagraph
(B) who is providing services as a test proctor or room supervisor by assisting
in the administration of college entrance or placement examinations, subsection
(b) shall be applied to such services performed after December 31, 2006 (and
remuneration paid for such services) without regard to paragraph (3)
thereof.</text>
</subparagraph><subparagraph id="H25D33848F5D34EAC92068F74C406DA8A"><enum>(B)</enum><header>Applicability</header><text>An
individual is described in this subparagraph if the individual—</text>
<clause id="H7896D63D191A4B73AFC7E5CDB43DD5C4"><enum>(i)</enum><text>is
providing the services described in subsection (b) to an organization described
in section 501(c) and exempt from tax under section 501(a), and</text>
</clause><clause id="H3B24204C1F4F4EF48B1442CD21A7A06C"><enum>(ii)</enum><text>is not otherwise
treated as an employee of such organization for purposes of this
subtitle.</text>
</clause></subparagraph></paragraph><paragraph id="id5D2E3F00710F4EF5B6289D25C9D94EFA"><enum>(9)</enum><header>Treatment of
securities broker dealers</header><text>In determining for purposes of this
title whether a registered representative of a securities broker-dealer is an
employee (as defined in section 3121(d)), no weight shall be given to
instructions from the service recipient which are imposed only in compliance
with investor protection standards imposed by the Federal Government, any State
government, or a governing body pursuant to a delegation by a Federal or State
agency.</text>
</paragraph></subsection><subsection id="HB7D546B7CE564A5182A4A95F2DF8100C"><enum>(e)</enum><header>Statements to
independent contractors</header>
<paragraph id="HD02DDCB2215F46809BDD127BBC6CA608"><enum>(1)</enum><header>In
general</header><text>Each person who contracts for the services of an
independent contractor on a regular and ongoing basis, within the scope of such
person’s trade or business, shall provide a written statement to such
independent contractor notifying such independent contractor of the Federal tax
obligations of an independent contractor, the labor and employment law
protections that do not apply to independent contractors, and the right of such
independent contractor to seek a status determination from the Internal Revenue
Service.</text>
</paragraph><paragraph id="H73DC5AE7F33841D1A7C80891D9828B7D"><enum>(2)</enum><header>Independent
contractor</header><text>For purposes of this subsection, the term
<term>independent contractor</term> means any individual who is not treated as
an employee by the person receiving the services referred to in paragraph
(1).</text>
</paragraph><paragraph id="HC840585D9AAB4D7A9EEBEFC0CD5626C3"><enum>(3)</enum><header>Timing of
statement</header><text>Except as otherwise provided by the Secretary, the
statement required under paragraph (1) shall be provided within a reasonable
period of entering into the contract referred to in paragraph (1).</text>
</paragraph><paragraph id="HE9927AE0DA3F4D09AB26A2B52523B704"><enum>(4)</enum><header>Development of
model statement</header><text>The Secretary shall develop model materials for
providing the statement required under paragraph
(1).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="HC0CC5DFDD0794105B9D06CF42AF5BFEB"><enum>(b)</enum><header>Reduced penalty
not applicable in cases of noncompliance with guidance without reasonable
basis</header><text display-inline="yes-display-inline">Subsection (c) of
section 3509 of the Internal Revenue Code of 1986 is amended—</text>
<paragraph id="H60F677B3E0254AC289931FAA7239787E"><enum>(1)</enum><text>by striking
<quote>if such liability</quote> and
inserting</text>
<quoted-block display-inline="yes-display-inline" id="H354BA47443194962B87274E18B9DCE19" style="OLC">
<text>if—</text><paragraph id="H7F7EFA15DF02442A8FA6435181F03B9C"><enum>(1)</enum><text display-inline="yes-display-inline">such
liability</text>
</paragraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H98964F89AED7487E9A90256C4DD2D6FA"><enum>(2)</enum><text>by striking the
period at the end and inserting</text>
<quoted-block display-inline="yes-display-inline" id="H031E32248D4A49788EDEC7FAA5737116" style="OLC">
<text>,
or</text><paragraph id="H5EDADB5580C54D5BB8289A9D429C9B13"><enum>(2)</enum><text display-inline="yes-display-inline">such liability relates to an individual who
is treated as an employee under regulations or other guidance issued by the
Secretary under section 3511(a) and the taxpayer lacks a reasonable basis for
treating the individual as other than an employee.</text>
</paragraph><quoted-block-continuation-text quoted-block-continuation-text-level="subsection">In the
case of a taxpayer which has received a final written determination from the
Internal Revenue Service holding that the individual referred to in paragraph
(2) (or another individual who holds a position with the taxpayer substantially
similar to the position held by such individual) is an employee, such taxpayer
shall be treated for purposes of paragraph (2) as lacking a reasonable basis
for treating such individual as other than an employee with respect to periods
beginning on and after the first day of the first calendar quarter beginning
more than 180 days after the date of such written determination unless the
taxpayer establishes by clear and convincing evidence that the taxpayer has a
reasonable basis for such
treatment.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H4EE0A5EA077444ABB0455C122C63D4FD"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="H70965183367345D5A9204453AC5B2B7F"><enum>(1)</enum><text>Paragraph (2) of
section 6724(d) of the Internal Revenue Code of 1986 is amended by striking
<quote>or</quote> at the end of subparagraph (GG), by striking the period at
the end of subparagraph (HH) and inserting <quote>, or</quote>, and by
inserting after subparagraph (HH) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H8B82BCD5EB354B008AD8E7A55E301ACD" style="OLC">
<subparagraph id="H70E903EFBAC244EC94C21015D7126B04"><enum>(II)</enum><text display-inline="yes-display-inline">section 3511(e) (relating to statements to
independent
contractors).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA8C92BC70097451AAEF388901C771AB9"><enum>(2)</enum><text>Paragraph (2) of
section 7436(a) of such Code is amended by striking <quote>subsection (a) of
section 530 of the Revenue Act of 1978</quote> and inserting <quote>section
3511(b)</quote>.</text>
</paragraph><paragraph id="H1E2B5A3A0178485C8FF0516A0EEF225C"><enum>(3)</enum><text>The table of
sections for chapter 25 of such Code is amended by adding at the end the
following new item:</text>
<quoted-block display-inline="no-display-inline" id="H11EE2701ABA14D34B61493A86AC26A76" style="OLC">
<toc container-level="quoted-block-container" idref="H8882CAAAC7BB48F08807ECF88364A9AE" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HA37019B6F67F41848B7EC8A81A242C76" level="section">Sec. 3511. Authority to issue guidance clarifying employment
status.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H750FBBC2D7974ECB8181191DDA33F675"><enum>(d)</enum><header>Termination of
section 530 of the Revenue Act of 1978</header><text>The Revenue Act of 1978 is
amended by striking section 530.</text>
</subsection><subsection display-inline="no-display-inline" id="HF6AE767F8B764AC5A71AE21C1A70EAE3"><enum>(e)</enum><header>Reports on
worker misclassification</header><text display-inline="yes-display-inline">Beginning with the first fiscal year
beginning after the date the first regulation or other guidance is issued for
public comment under section 3511(a) of the Internal Revenue Code of 1986 (as
added by this section):</text>
<paragraph id="H749AA8CB670E4FA0BEA7616D18AF9E3D"><enum>(1)</enum><text>A
report each fiscal year on worker classification which shall include the total
number of examinations of employers initiated because of suspected worker
classification issues, the total number of examinations that included
determinations on worker classification issues, the amount of additional tax
liabilities associated with worker classification enforcement actions, the
number of workers reclassified as a result of these actions, the number of
requests for Determination of Worker Status (Form SS–8), and technical guidance
on how to understand the data provided in the report.</text>
</paragraph><paragraph id="HAB05E9B486884F9987C253AE3A5BA9FB"><enum>(2)</enum><text>A
report each fiscal year in which new statistically valid data is compiled and
interpreted on worker classification, prepared on the basis of information
gathered during an Employment Tax Study conducted by the National Research
Program (NRP) of the Internal Revenue Service. Such report shall provide
statistical estimates of the number of employers misclassifying workers, the
number of workers misclassified, the industries involved, data interpretations
and conclusions, and a description of the impact of improper worker
classification on the employment tax gap.</text>
</paragraph></subsection><subsection id="HAE64466F00D14B458443C6279963172E"><enum>(f)</enum><header>Effective
dates</header>
<paragraph id="HD15F5721646347C99E28E014710AC2FF"><enum>(1)</enum><header>Delayed
effective date of regulations and guidance</header><text>Except as provided in
paragraph (2), any regulation or other guidance issued under section 3511(a) of
the Internal Revenue Code of 1986, as added by this section, shall not apply to
services rendered before the date which is 1 year after the date of the
enactment of this Act.</text>
</paragraph><paragraph id="id7C8F4AE0613948B0A251E5A3225DF982"><enum>(2)</enum><header>Treatment of
securities broker dealers</header><text>Paragraph (9) of section 3511(d) of the
Internal Revenue Code of 1986, as added by this section, shall apply to
services performed after December 31, 1997.</text>
</paragraph><paragraph id="HCC401415054E4519943A50F2856602D4"><enum>(3)</enum><header>Authority to
issue regulations and guidance immediately</header><text>So much of the
amendment made by subsection (d) as relates to subsection (b) of section 530 of
the Revenue Act of 1978 shall take effect on the date of the enactment of this
Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4E4EEE50F06D40289EF5D957F01FC133"><enum>(4)</enum><header>Delayed
termination of remainder of section 530 of the Revenue Act of
1978</header><text>Except as provided in paragraph (3), the amendments made by
subsections (c)(1) and (d) shall apply to services rendered on or after the
date which is 1 year after the date of the enactment of this Act.</text>
</paragraph></subsection></section></subtitle><enum>IV</enum><header>Rebuild America
Trust Fund</header>
<section id="id4A595482B5BF4F689D25241E87481225"><enum>401.</enum><header>Establish
Rebuild America Trust Fund</header>
<subsection id="idD1A91DAA7CD24D8D9DF17E20C9B1F00C"><enum>(a)</enum><header>In
general</header><text>Subchapter A of chapter 98 is amended by adding at the
end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HB6442C5099224AEBA1915E5A1A9D54B2" style="OLC">
<section id="HD449140D21A24C689174B1239F306674"><enum>9512.</enum><header>Rebuild
America Trust Fund</header>
<subsection id="HF559DBFDFE3C483CA85A4384E6CEF602"><enum>(a)</enum><header>Creation of
Trust Fund</header><text>There is established in the Treasury of the United
States a trust fund to be known as the <term>Rebuild America Trust Fund</term>,
consisting of such amounts as may be appropriated or credited to such fund as
provided in this section or section 9602(b).</text>
</subsection><subsection id="H515EF83380AA4EB69B6ED4DAC9E1906B"><enum>(b)</enum><header>Transfers to
Trust Fund</header><text>There are hereby appropriated to the Rebuild America
Trust Fund amounts equivalent to the revenues resulting from the amendments
made by title III of the <short-title>Rebuild America
Act</short-title>.</text>
</subsection><subsection id="ida44cc117771846b792a82e7d099ef589"><enum>(c)</enum><header>Authority To
borrow</header>
<paragraph id="id719d46ea02404a17ae23a23246e1a642"><enum>(1)</enum><header>In
general</header><text>There are authorized to be appropriated to the Rebuild
America Trust Fund, as repayable advances, such sums as may be necessary to
carry out the other purposes of the <short-title>Rebuild
America Act</short-title> as described in subsection (d)(2).</text>
</paragraph><paragraph id="id3c2cd03410dd4e4a96c92727f9167ef4"><enum>(2)</enum><header>Limitation on
aggregate advances</header><text>The maximum aggregate amount of repayable
advances to the Rebuild America Trust Fund which is outstanding at any one time
shall not exceed an amount equal to the amount which the Secretary estimates
will be equal to the sum of the amounts appropriated to the Rebuild America
Trust Fund under subsection (b) during the following 60 months.</text>
</paragraph><paragraph id="id83549f2272944dfd9c2219edfbffd282"><enum>(3)</enum><header>Repayment of
advances</header>
<subparagraph id="id8609570eb7ce4bd39164d88078e5e548"><enum>(A)</enum><header>In
general</header><text>Advances made to the Rebuild America Trust Fund shall be
repaid, and interest on such advances shall be paid, to the general fund of the
Treasury when the Secretary determines that moneys are available for such
purposes in the Rebuild America Trust Fund.</text>
</subparagraph><subparagraph id="id810e2285c1d74849a734ad18d800755a"><enum>(B)</enum><header>Final
repayment</header><text>No advance shall be made to the Rebuild America Trust
Fund after September 30, 2022, and all advances to such Trust Fund shall be
repaid on or before September 30, 2024.</text>
</subparagraph><subparagraph id="id8df35a16f51846219ee4de8c1fe4ff6e"><enum>(C)</enum><header>Rate of
interest</header><text>Interest on advances made to the Rebuild America Trust
Fund shall be at a rate determined by the Secretary of the Treasury (as of the
close of the calendar month preceding the month in which the advance is made)
to be equal to the current average market yield on outstanding marketable
obligations of the United States with remaining periods to maturity comparable
to the anticipated period during which the advance will be outstanding and
shall be compounded annually.</text>
</subparagraph></paragraph></subsection><subsection id="H3FBA0F2443C24ABB8445ADC6BF87DE4A"><enum>(d)</enum><header>Expenditures</header>
<paragraph id="id0AD59FFA81774761BB70E71E81E9733A"><enum>(1)</enum><header>In
general</header><text>Amounts in the Rebuild America Trust Fund shall be
available, without further appropriation—</text>
<subparagraph id="id92675F0281C449D5BE1A9B2AFB236AEF"><enum>(A)</enum><text>to transfer to
accounts specified by, and to carry out the provisions of, section 103 of the
<short-title>Rebuild America Act</short-title>, and</text>
</subparagraph><subparagraph id="idA74CFDFAC9D34B3B97CCDA9F8965B169"><enum>(B)</enum><text>as provided for
in the <short-title>Rebuild America Act</short-title> (and
the amendments made by that Act).</text>
</subparagraph></paragraph><paragraph id="idB3AE4E35BE5A44C6B651578A88E7F7F1"><enum>(2)</enum><header>Allocation of
funds</header><text>The Secretary shall allocate funds from the Rebuild America
Trust Fund to the responsible Departments for distribution to the States and
subdivisions within 15 days of the beginning of each fiscal year as set in
section 103 of the <short-title>Rebuild America
Act</short-title>. Each Secretary of such a Department shall allocate the funds
set by formula to the States or local receiving entities within 90 days of the
beginning of such fiscal year.</text>
</paragraph><paragraph id="id907F2D0B17F34727AC530BA5BDD8367A"><enum>(3)</enum><header>Administrative
funds</header><text>The portion of funds allowed for administrative costs for
any account may not exceed the percentage used for administering those funds at
both the Federal and the State levels under the underlying regular program that
is in effect for the latest appropriations measure expiring at the end of a
fiscal year.</text>
</paragraph><paragraph id="id5D501D99E56B449F9FB7196C2928A993"><enum>(4)</enum><header>Maintenance of
effort</header>
<subparagraph id="id2442D9C8FAA74C9AAF3622B1DC00C398"><enum>(A)</enum><header>Federal
level</header><text>The funds provided from the Rebuild America Trust Fund
shall not be provided by the Secretary to an account if the appropriations for
that account are to be funded at not less than the sum provided in fiscal year
2012, not including emergency funds.</text>
</subparagraph><subparagraph id="idFF3A053A61484CF9AF7D0E90192646E7"><enum>(B)</enum><header>State
level</header><text>A State or local government shall not receive funds for an
account provided by the Rebuild America Trust Fund unless that State maintains
the same level of funding for that function as the State and local governments
provided in State fiscal year 2011. The Secretary shall, by rule define the
State programs representing the function for each account for which funds are
provided by the Trust Fund.</text>
</subparagraph></paragraph><paragraph id="idACEA65A0AC244B479396B779E891583C"><enum>(5)</enum><header>Use of American
iron, steel, manufactured goods, and equipment</header>
<subparagraph id="id33D2092850B34CA18C4B125AA3F74BD9"><enum>(A)</enum><header>In
general</header><text>None of the funds made available by the Rebuild America
Trust Fund 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, manufactured goods, and equipment used in the project are produced
in the United States.</text>
</subparagraph><subparagraph id="idF781F39A02C841FFA48E906457FF77FB"><enum>(B)</enum><header>Exceptions</header><text>Subparagraph
(A) shall not apply in any case or category of cases in which the head of the
Federal department or agency involved finds that—</text>
<clause id="id6B5BB717D24B4296852885583861BE53"><enum>(i)</enum><text>applying
subparagraph (A) would be inconsistent with the public interest,</text>
</clause><clause id="idBAE467FB60F5495181B21BEBFE96717B"><enum>(ii)</enum><text>iron, steel, the
relevant manufactured goods, or the relevant equipment are not produced in the
United States in sufficient and reasonably available quantities and of a
satisfactory quality, or</text>
</clause><clause id="id5A17FDD8EFB844768944F48ADE9DB6D5"><enum>(iii)</enum><text>inclusion of
iron, steel, manufactured goods, and equipment produced in the United States
will increase the cost of the overall project by more than 25 percent.</text>
</clause></subparagraph><subparagraph id="idC020487ECBB9431280A9E95BADEA38E2"><enum>(C)</enum><header>Publication of
justification</header><text>If the head of a Federal department or agency
determines that it is necessary to waive the application of subparagraph (A)
based on a finding under subparagraph (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.</text>
</subparagraph><subparagraph id="id0EE4ADADDF7A4A288CC9BA0E9C7DCC84"><enum>(D)</enum><header>Consistency
with international agreements</header><text>This paragraph shall be applied in
a manner consistent with United States obligations under international
agreements.</text>
</subparagraph></paragraph><paragraph id="idE2890E5E440649E195DBA913FF62233B"><enum>(6)</enum><header>Wage rate
requirements</header><text>Notwithstanding any other provision of law and in a
manner consistent with other provisions in this section and in the
<short-title>Rebuild America Act</short-title>, 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 funds made available by the
<short-title>Rebuild America Act</short-title> 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. With respect
to the labor standards specified in this paragraph, 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.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HFC8868E50EBE4DC3AE11373A394E1057"><enum>(b)</enum><header>Conforming
amendment</header><text>The table of sections for subchapter A of chapter 98 is
amended by adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H48CC9E301B3847E5B0578717A2C633F8" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 9512. Rebuild America Trust
Fund.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section>