[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3555 Introduced in House (IH)]

<DOC>






114th CONGRESS
  1st Session
                                H. R. 3555

   To provide tax relief for American workers and businesses, to put 
 workers back on the job while rebuilding and modernizing America, and 
    to provide pathways back to work for Americans looking for jobs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 17, 2015

 Ms. Wilson of Florida (for herself, Ms. Adams, Mrs. Beatty, Ms. Brown 
 of Florida, Mr. Butterfield, Mr. Conyers, Mr. Cummings, Ms. DeLauro, 
Ms. Edwards, Ms. Norton, Mr. Engel, Mr. Fattah, Ms. Frankel of Florida, 
Ms. Fudge, Ms. Michelle Lujan Grisham of New Mexico, Mr. Hastings, Ms. 
 Jackson Lee, Mr. Jeffries, Ms. Kaptur, Mr. Larson of Connecticut, Ms. 
  Lee, Ms. McCollum, Mr. Meeks, Mr. Payne, Mr. Pocan, Mr. Rangel, Mr. 
 Sablan, Ms. Schakowsky, Mr. Scott of Virginia, Mr. Danny K. Davis of 
 Illinois, Mr. Grijalva, Mr. Takano, Mr. Cardenas, and Ms. Judy Chu of 
 California) introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committees on Small 
 Business, Education and the Workforce, the Judiciary, Transportation 
and Infrastructure, Financial Services, House Administration, Oversight 
and Government Reform, and the Budget, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To provide tax relief for American workers and businesses, to put 
 workers back on the job while rebuilding and modernizing America, and 
    to provide pathways back to work for Americans looking for jobs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Jobs! Jobs! Jobs! 
Act of 2015''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. Severability.
Sec. 4. Buy American--Use of American iron, steel, and manufactured 
                            goods.
Sec. 5. Wage rate and employment protection requirements.
               TITLE I--RELIEF FOR WORKERS AND BUSINESSES

                   Subtitle A--Making Work Pay Credit

Sec. 101. Making work pay credit.
                Subtitle B--Other Relief for Businesses

Sec. 111. Extension of temporary 100-percent bonus depreciation for 
                            certain business assets.
Sec. 112. Surety bonds.
    TITLE II--PUTTING WORKERS BACK ON THE JOB WHILE REBUILDING AND 
                          MODERNIZING AMERICA

                   Subtitle A--Teacher Stabilization

Sec. 201. Purpose.
Sec. 202. Grants for the outlying areas and the Secretary of the 
                            Interior; availability of funds.
Sec. 203. State allocation.
Sec. 204. State application.
Sec. 205. State reservation and responsibilities.
Sec. 206. Local educational agencies.
Sec. 207. Early learning.
Sec. 208. Maintenance of effort.
Sec. 209. Reporting.
Sec. 210. Definitions.
Sec. 211. Authorization of appropriations.
               Subtitle B--First Responder Stabilization

Sec. 212. Purpose.
Sec. 213. Grant program.
Sec. 214. Appropriations.
                    Subtitle C--School Modernization

                Part I--Elementary and Secondary Schools

Sec. 221. Purpose.
Sec. 222. Authorization of appropriations.
Sec. 223. Allocation of funds.
Sec. 224. State use of funds.
Sec. 225. State and local applications.
Sec. 226. Use of funds.
Sec. 227. Private schools.
Sec. 228. Additional provisions.
                Part II--Community College Modernization

Sec. 229. Federal assistance for community college modernization.
                         Part III--Definitions

Sec. 230. Definitions.
    Subtitle D--Immediate Transportation Infrastructure Investments

Sec. 241. Immediate transportation infrastructure investments.
    Subtitle E--Building and Upgrading Infrastructure for Long-Term 
                              Development

Sec. 242. Short title.
Sec. 243. Findings and purpose.
Sec. 244. Definitions.
          Part I--American Infrastructure Financing Authority

Sec. 245. Establishment and general authority of AIFA.
Sec. 246. Voting members of the Board of Directors.
Sec. 247. Chief executive officer of AIFA.
Sec. 248. Powers and duties of the Board of Directors.
Sec. 249. Senior management.
Sec. 250. Special Inspector General for AIFA.
Sec. 251. Other personnel.
Sec. 252. Compliance.
   Part II--Terms and Limitations on Direct Loans and Loan Guarantees

Sec. 253. Eligibility criteria for assistance from AIFA and terms and 
                            limitations of loans.
Sec. 254. Loan terms and repayment.
Sec. 255. Compliance and enforcement.
Sec. 256. Audits; reports to the President and Congress.
                       Part III--Funding of AIFA

Sec. 257. Administrative fees.
Sec. 258. Efficiency of AIFA.
Sec. 259. Funding.
Part IV--Extension of Exemption From Alternative Minimum Tax Treatment 
                      for Certain Tax-Exempt Bonds

Sec. 260. Extension of exemption from alternative minimum tax treatment 
                            for certain tax-exempt bonds.
                      Subtitle F--Project Rebuild

Sec. 261. Project rebuild.
   TITLE III--ASSISTANCE FOR THE UNEMPLOYED AND PATHWAYS BACK TO WORK

               Subtitle A--Supporting Unemployed Workers

Sec. 301. Short title.
 Part I--Extension of Emergency Unemployment Compensation and Certain 
  Extended Benefits Provisions, and Establishment of Self-Employment 
                           Assistance Program

Sec. 311. Extension of emergency unemployment compensation program.
Sec. 312. Temporary extension of extended benefit provisions.
Sec. 313. Additional extended unemployment benefits under the Railroad 
                            Unemployment Insurance Act.
                   Part II--Reemployment NOW Program

Sec. 321. Establishment of reemployment NOW program.
Sec. 322. Distribution of funds.
Sec. 323. State plan.
Sec. 324. Bridge to work program.
Sec. 325. Wage insurance.
Sec. 326. Enhanced reemployment strategies.
Sec. 327. Self-employment programs.
Sec. 328. Additional innovative programs.
Sec. 329. Guidance and additional requirements.
Sec. 330. Report of information and evaluations to Congress and the 
                            public.
Sec. 331. State.
               Part III--Short-Time Compensation Program

Sec. 341. Temporary financing of short-time compensation payments in 
                            States with programs in law.
Sec. 342. Temporary financing of short-time compensation agreements.
Sec. 343. Grants for short-time compensation programs.
Sec. 344. Assistance and guidance in implementing programs.
Sec. 345. Reports.
          Subtitle B--Long-Term Unemployed Hiring Preferences

Sec. 351. Long-term unemployed workers work opportunity tax credits.
                   Subtitle C--Pathways Back to Work

Sec. 361. Short title.
Sec. 362. Authorization of appropriations.
Sec. 363. Availability of funds.
Sec. 364. Subsidized employment for unemployed, low-income adults.
Sec. 365. Summer employment and year-round employment opportunities for 
                            low-income youth.
Sec. 366. Work-based employment strategies of demonstrated 
                            effectiveness.
Sec. 367. General requirements.
Sec. 368. Definitions.
Subtitle D--Prohibition of Discrimination in Employment on the Basis of 
                  an Individual's Status as Unemployed

Sec. 371. Short title.
Sec. 372. Findings and purpose.
Sec. 373. Definitions.
Sec. 374. Prohibited acts.
Sec. 375. Enforcement.
Sec. 376. Federal and State immunity.
Sec. 377. Relationship to other laws.
Sec. 378. Severability.
Sec. 379. Effective date.
                           TITLE IV--OFFSETS

 Subtitle A--28-Percent Limitation on Certain Deductions and Exclusions

Sec. 401. 28-percent limitation on certain deductions and exclusions.
Subtitle B--Tax Carried Interest in Investment Partnerships as Ordinary 
                                 Income

Sec. 411. Partnership interests transferred in connection with 
                            performance of services.
Sec. 412. Special rules for partners providing investment management 
                            services to partnerships.
       Subtitle C--Close Loophole for Corporate Jet Depreciation

Sec. 421. General aviation aircraft treated as 7-year property.
                    Subtitle D--Repeal Oil Subsidies

Sec. 431. Repeal of deduction for intangible drilling and development 
                            costs in the case of oil and gas wells.
Sec. 432. Repeal of deduction for tertiary injectants.
Sec. 433. Repeal of percentage depletion for oil and gas wells.
Sec. 434. Section 199 deduction not allowed with respect to oil, 
                            natural gas, or primary products thereof.
Sec. 435. Repeal oil and gas working interest exception to passive 
                            activity rules.
Sec. 436. Repeal enhanced oil recovery credit.
Sec. 437. Uniform seven-year amortization for geological and 
                            geophysical expenditures.
Sec. 438. Repeal marginal well production credit.
                  Subtitle E--Dual Capacity Taxpayers

Sec. 441. Modifications of foreign tax credit rules applicable to dual 
                            capacity taxpayers.
Sec. 442. Separate basket treatment taxes paid on foreign oil and gas 
                            income.
                  Subtitle F--Repeal of Sequestration

Sec. 451. Repeal of sequestration.

SEC. 2. REFERENCES.

    Except as expressly provided otherwise, any reference to ``this 
Act'' contained in any subtitle of this Act shall be treated as 
referring only to the provisions of that subtitle.

SEC. 3. SEVERABILITY.

    If any provision of this Act, or the application thereof to any 
person or circumstance, is held invalid, the remainder of the Act and 
the application of such provision to other persons or circumstances 
shall not be affected thereby.

SEC. 4. BUY AMERICAN--USE OF AMERICAN IRON, STEEL, AND MANUFACTURED 
              GOODS.

    (a) None of the funds appropriated or otherwise made available by 
this Act may be used for a project for the construction, alteration, 
maintenance, or repair of a public building or public work unless all 
of the iron, steel, and manufactured goods used in the project are 
produced in the United States.
    (b) Subsection (a) shall not apply in any case or category of cases 
in which the head of the Federal department or agency involved finds 
that--
            (1) applying subsection (a) would be inconsistent with the 
        public interest;
            (2) iron, steel, and the relevant manufactured goods are 
        not produced in the United States in sufficient and reasonably 
        available quantities and of a satisfactory quality; or
            (3) inclusion of iron, steel, and manufactured goods 
        produced in the United States will increase the cost of the 
        overall project by more than 25 percent.
    (c) If the head of a Federal department or agency determines that 
it is necessary to waive the application of subsection (a) based on a 
finding under subsection (b), the head of the department or agency 
shall publish in the Federal Register a detailed written justification 
as to why the provision is being waived.
    (d) This section shall be applied in a manner consistent with 
United States obligations under international agreements.

SEC. 5. WAGE RATE AND EMPLOYMENT PROTECTION REQUIREMENTS.

    (a) Notwithstanding any other provision of law and in a manner 
consistent with other provisions in this Act, all laborers and 
mechanics employed by contractors and subcontractors on projects funded 
directly by or assisted in whole or in part by and through the Federal 
Government pursuant to this Act shall be paid wages at rates not less 
than those prevailing on projects of a character similar in the 
locality as determined by the Secretary of Labor in accordance with 
subchapter IV of chapter 31 of title 40, United States Code.
    (b) With respect to the labor standards specified in this section, 
the Secretary of Labor shall have the authority and functions set forth 
in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 
App.) and section 3145 of title 40, United States Code.
    (c) Projects as defined under title 49, United States Code, funded 
directly by or assisted in whole or in part by and through the Federal 
Government pursuant to this Act shall be subject to the requirements of 
section 5333(b) of title 49, United States Code.

               TITLE I--RELIEF FOR WORKERS AND BUSINESSES

                   Subtitle A--Making Work Pay Credit

SEC. 101. MAKING WORK PAY CREDIT.

    (a) In General.--Section 36A(e) of the Internal Revenue Code of 
1986 is amended to read as follows:
    ``(e) Termination.--This section shall not apply to--
            ``(1) beginning after December 31, 2010, and before January 
        1, 2015, and
            ``(2) taxable years beginning after December 31, 2014.''.
    (b) Treatment of Possessions.--Rules similar to the rules of 
subsections (b) and (c) of section 1001 of the American Recovery and 
Reinvestment Tax Act of 2009 shall apply with respect to the amendment 
made by subsection (a). For purposes of the preceding sentence, such 
section shall be applied by substituting ``taxable years beginning in 
2015'' for ``taxable years beginning in 2009 and 2010'' each place it 
occurs.
    (c) Effective Date.--This section, and the amendments made by this 
section, shall apply to taxable years beginning after December 31, 
2014.

                Subtitle B--Other Relief for Businesses

SEC. 111. EXTENSION OF TEMPORARY 100-PERCENT BONUS DEPRECIATION FOR 
              CERTAIN BUSINESS ASSETS.

    (a) In General.--Section 168(k) of the Internal Revenue Code is 
amended by adding at the end the following new paragraph:
            ``(6) Special rule for property acquired during certain 
        pre-2015 period.--In the case of qualified property acquired by 
        the taxpayer (under rules similar to the rules of clauses (ii) 
        and (iii) of paragraph (2)(A)) after December 31, 2013, and 
        before January 1, 2015, and which is placed in service by the 
        taxpayer before January 1, 2015 (January 1, 2016, in the case 
        of property described in subparagraph (2)(B) or (2)(C)), 
        paragraph (1)(A) shall be applied by substituting `100 percent' 
        for `50 percent'.''.
    (b) Conforming Amendment.--The heading for paragraph (5) of section 
168(k) of the Internal Revenue Code is amended by striking ``Pre-2012 
periods'' and inserting ``Pre-2015 periods''.

SEC. 112. SURETY BONDS.

    (a) Maximum Bond Amount.--Section 411(a)(1) of the Small Business 
Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is amended by striking 
``$6,500,000'' and inserting ``$7,500,000''.
    (b) Denial of Liability.--Section 411(e)(2) of the Small Business 
Investment Act of 1958 (15 U.S.C. 694b(e)(2)) is amended by striking 
``$6,500,000'' and inserting ``$7,500,000''.
    (c) Sunset.--The amendments made by subsections (a) and (b) of this 
section shall remain in effect until September 30, 2016.
    (d) Funding.--There is authorized to be appropriated $3,000,000, to 
remain available until expended, for additional capital for the 
revolving fund for surety bond guarantees authorized under section 412 
of the Small Business Investment Act of 1958 (15 U.S.C. 694c).

    TITLE II--PUTTING WORKERS BACK ON THE JOB WHILE REBUILDING AND 
                          MODERNIZING AMERICA

                   Subtitle A--Teacher Stabilization

SEC. 201. PURPOSE.

    The purpose of this subtitle is to provide funds to States to 
prevent teacher layoffs and support the creation of additional jobs in 
public early childhood, elementary, and secondary education in the 
2016-2017 and 2017-2018 school years.

SEC. 202. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE 
              INTERIOR; AVAILABILITY OF FUNDS.

    (a) Reservation of Funds.--From the amount appropriated to carry 
out this subtitle under section 212, the Secretary--
            (1) shall reserve up to one-half of one percent to provide 
        assistance to the outlying areas on the basis of their 
        respective needs, as determined by the Secretary, for 
        activities consistent with this subtitle under such terms and 
        conditions as the Secretary may determine;
            (2) shall reserve up to one-half of one percent to provide 
        assistance to the Secretary of the Interior to carry out 
        activities consistent with this subtitle, in schools operated 
        or funded by the Bureau of Indian Education; and
            (3) may reserve up to $2,000,000 for administration and 
        oversight of this subtitle, including program evaluation.
    (b) Availability of Funds.--Funds made available under section 212 
shall remain available to the Secretary until September 30, 2016.

SEC. 203. STATE ALLOCATION.

    (a) Allocation.--After reserving funds under section 202(a), the 
Secretary shall allocate the remaining funds appropriated under section 
212 to States, of which--
            (1) 60 percent shall be allocated to States on the basis of 
        their relative population of individuals aged 5 through 17; and
            (2) 40 percent shall be allocated to States on the basis of 
        their relative total population.
    (b) Awards.--The Secretary shall award a State's allocation under 
subsection (a) to the Governor of the State only if the Secretary has 
approved the State's application under section 205.
    (c) Alternate Distribution of Funds.--
            (1) In general.--If, within 30 days after the date of 
        enactment of this Act, a Governor has not submitted an 
        approvable application to the Secretary, the Secretary shall, 
        consistent with paragraph (2), provide for funds allocated to 
        that State to be distributed to another entity or other 
        entities in the State for the support of early childhood, 
        elementary, and secondary education, under such terms and 
        conditions as the Secretary may establish.
            (2) Maintenance of effort.--
                    (A) Governor assurance.--The Secretary shall not 
                allocate funds under paragraph (1) unless the Governor 
                of the State provides an assurance to the Secretary 
                that the State will for fiscal years 2016 and 2017 meet 
                the requirements of section 209.
                    (B) Allocations to other entities.--Notwithstanding 
                subparagraph (A), the Secretary may allocate up to 50 
                percent of the funds that are available to the State 
                under paragraph (1) to another entity or entities in 
                the State, provided that the State educational agency 
                submits data to the Secretary demonstrating that the 
                State will for fiscal year 2016 meet the requirements 
                of section 209(a) or the Secretary otherwise determines 
                that the State will meet those requirements, or such 
                comparable requirements as the Secretary may establish, 
                for that year.
            (3) Requirements.--An entity that receives funds under 
        paragraph (1) shall use those funds in accordance with the 
        requirements of this subtitle.
    (d) Reallocation.--If a State does not receive funding under this 
subtitle or only receives a portion of its allocation under subsection 
(c), the Secretary shall reallocate the State's entire allocation or 
the remaining portion of its allocation, as the case may be, to the 
remaining States in accordance with subsection (a).

SEC. 204. STATE APPLICATION.

    The Governor of a State desiring to receive a grant under this 
subtitle shall submit an application to the Secretary within 30 days of 
the date of enactment of this Act, in such manner, and containing such 
information as the Secretary may reasonably require to determine the 
State's compliance with applicable provisions of law.

SEC. 205. STATE RESERVATION AND RESPONSIBILITIES.

    (a) Reservation.--Each State receiving a grant under section 204(b) 
may reserve--
            (1) not more than 10 percent of the grant funds for awards 
        to State-funded early learning programs; and
            (2) not more than 2 percent of the grant funds for the 
        administrative costs of carrying out its responsibilities under 
        this subtitle.
    (b) State Responsibilities.--Each State receiving a grant under 
this subtitle shall, after reserving any funds under subsection (a)--
            (1) use the remaining grant funds only for awards to local 
        educational agencies for the support of early childhood, 
        elementary, and secondary education;
            (2) distribute those funds, through subgrants, to its local 
        educational agencies by distributing--
                    (A) 60 percent on the basis of the local 
                educational agencies' relative shares of enrollment; 
                and
                    (B) 40 percent on the basis of the local 
                educational agencies' relative shares of funds received 
                under part A of title I of the Elementary and Secondary 
                Education Act of 1965 for fiscal year 2013; and
            (3) make those funds available to local educational 
        agencies no later than 100 days after receiving a grant from 
        the Secretary.
    (c) Prohibitions.--A State shall not use funds received under this 
subtitle to directly or indirectly--
            (1) establish, restore, or supplement a rainy-day fund;
            (2) supplant State funds in a manner that has the effect of 
        establishing, restoring, or supplementing a rainy-day fund;
            (3) reduce or retire debt obligations incurred by the 
        State; or
            (4) supplant State funds in a manner that has the effect of 
        reducing or retiring debt obligations incurred by the State.

SEC. 206. LOCAL EDUCATIONAL AGENCIES.

    Each local educational agency that receives a subgrant under this 
subtitle--
            (1) shall use the subgrant funds only for compensation and 
        benefits and other expenses, such as support services, 
        necessary to retain existing employees, recall or rehire former 
        employees, or hire new employees to provide early childhood, 
        elementary, or secondary educational and related services;
            (2) shall obligate those funds not later than September 30, 
        2016; and
            (3) may not use those funds for general administrative 
        expenses or for other support services or expenditures, as 
        those terms are defined by the National Center for Education 
        Statistics in the Common Core of Data, as of the date of 
        enactment of this Act.

SEC. 207. EARLY LEARNING.

    Each State-funded early learning program that receives funds under 
this subtitle shall--
            (1) use those funds only for compensation, benefits, and 
        other expenses, such as support services, necessary to retain 
        early childhood educators, recall or rehire former early 
        childhood educators, or hire new early childhood educators to 
        provide early learning services; and
            (2) obligate those funds not later than September 30, 2017.

SEC. 208. MAINTENANCE OF EFFORT.

    (a) Requirement.--The Secretary shall not allocate funds to a State 
under this subtitle unless the State provides an assurance to the 
Secretary that--
            (1) for State fiscal year 2016--
                    (A) the State will maintain State support for early 
                childhood, elementary, and secondary education (in the 
                aggregate or on the basis of expenditure per pupil) and 
                for public institutions of higher education (not 
                including support for capital projects or for research 
                and development or tuition and fees paid by students) 
                at not less than the level of such support for each of 
                the two categories for State fiscal year 2015; or
                    (B) the State will maintain State support for early 
                childhood, elementary, and secondary education and for 
                public institutions of higher education (not including 
                support for capital projects or for research and 
                development or tuition and fees paid by students) at a 
                percentage of the total revenues available to the State 
                that is equal to or greater than the percentage 
                provided for State fiscal year 2013; and
            (2) for State fiscal year 2017--
                    (A) the State will maintain State support for early 
                childhood, elementary, and secondary education (in the 
                aggregate or on the basis of expenditure per pupil) and 
                for public institutions of higher education (not 
                including support for capital projects or for research 
                and development or tuition and fees paid by students) 
                at not less than the level of such support for each of 
                the two categories for State fiscal year 2016; or
                    (B) the State will maintain State support for early 
                childhood, elementary, and secondary education and for 
                public institutions of higher education (not including 
                support for capital projects or for research and 
                development or tuition and fees paid by students) at a 
                percentage of the total revenues available to the State 
                that is equal to or greater than the percentage 
                provided for State fiscal year 2016.
    (b) Waiver.--The Secretary may waive the requirements of this 
section if the Secretary determines that a waiver would be equitable 
due to--
            (1) exceptional or uncontrollable circumstances, such as a 
        natural disaster; or
            (2) a precipitous decline in the financial resources of the 
        State.

SEC. 209. REPORTING.

    Each State that receives a grant under this subtitle shall submit, 
on an annual basis, a report to the Secretary that contains--
            (1) a description of how funds received under this part 
        were expended or obligated; and
            (2) an estimate of the number of jobs supported by the 
        State using funds received under this subtitle.

SEC. 210. DEFINITIONS.

    In this subtitle:
            (1) ESEA definitions.--Except as otherwise provided, the 
        terms ``local educational agency'', ``outlying area'', 
        ``Secretary'', ``State'', and ``State educational agency'' have 
        the meanings given those terms in section 9101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801).
            (2) State.--The term ``State'' does not include an outlying 
        area.
            (3) Early child educator.--The term ``early childhood 
        educator'' means an individual who--
                    (A) works directly with children in a State-funded 
                early learning program in a low-income community;
                    (B) is involved directly in the care, development, 
                and education of infants, toddlers, or young children 
                age five and under; and
                    (C) has completed a baccalaureate or advanced 
                degree in early childhood development or early 
                childhood education, or in a field related to early 
                childhood education.
            (4) State-funded early learning program.--The term ``State-
        funded early learning program'' means a program that provides 
        educational services to children from birth to kindergarten 
        entry and receives funding from a State.

SEC. 211. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated, and there are 
appropriated, $30,000,000,000 to carry out this subtitle for fiscal 
year 2016.

               Subtitle B--First Responder Stabilization

SEC. 212. PURPOSE.

    The purpose of this subtitle is to provide funds to States and 
localities to prevent layoffs of, and support the creation of 
additional jobs for, law enforcement officers and other first 
responders.

SEC. 213. GRANT PROGRAM.

    The Attorney General shall carry out a competitive grant program 
pursuant to section 1701 of title I of the Omnibus Crime Control and 
Safe Streets Act of 1968 (42 U.S.C. 3796dd) for hiring, rehiring, or 
retention of career law enforcement officers under part Q of such 
title. Grants awarded under this section shall not be subject to 
subsection (g) or (i) of section 1701 or to section 1704 of such Act 
(42 U.S.C. 3796dd-3(c)).

SEC. 214. APPROPRIATIONS.

    There is hereby appropriated for the Community Oriented Policing 
Stabilization Fund, out of any money in the Treasury not otherwise 
appropriated, $5,000,000,000, to remain available until September 30, 
2016, of which $4,000,000,000 shall be for the Attorney General to 
carry out the competitive grant program under section 213, and of which 
$1,000,000,000 shall be transferred by the Attorney General to a First 
Responder Stabilization Fund, from which the Secretary of Homeland 
Security shall make competitive grants for hiring, rehiring, or 
retention pursuant to the Federal Fire Prevention and Control Act of 
1974 (15 U.S.C. 2201 et seq.), to carry out section 34 of such Act (15 
U.S.C. 2229a). In making such grants, the Secretary may grant waivers 
from the requirements in subsections (a)(1)(A), (a)(1)(B), (a)(1)(E), 
(c)(1), (c)(2), and (c)(4)(A) of such section 34. Of the amounts 
appropriated herein, not to exceed $8,000,000 shall be for 
administrative costs of the Attorney General, and not to exceed 
$2,000,000 shall be for administrative costs of the Secretary of 
Homeland Security.

                    Subtitle C--School Modernization

                PART I--ELEMENTARY AND SECONDARY SCHOOLS

SEC. 221. PURPOSE.

    The purpose of this part is to provide assistance for the 
modernization, renovation, and repair of elementary and secondary 
school buildings in public school districts across America in order to 
support the achievement of improved educational outcomes in those 
schools.

SEC. 222. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated, and there are 
appropriated, $25,000,000,000 to carry out this part, which shall be 
available for obligation by the Secretary until September 30, 2016.

SEC. 223. ALLOCATION OF FUNDS.

    (a) Reservations.--Of the amount made available to carry out this 
part, the Secretary shall reserve--
            (1) one-half of one percent for the Secretary of the 
        Interior to carry out modernization, renovation, and repair 
        activities described in section 226 in schools operated or 
        funded by the Bureau of Indian Education;
            (2) one-half of one percent to make grants to the outlying 
        areas for modernization, renovation, and repair activities 
        described in section 226; and
            (3) such funds as the Secretary determines are needed to 
        conduct a survey, by the National Center for Education 
        Statistics, of the school construction, modernization, 
        renovation, and repair needs of the public schools of the 
        United States.
    (b) State Allocation.--After reserving funds under subsection (a), 
the Secretary shall allocate the remaining amount among the States in 
proportion to their respective allocations under part A of title I of 
the Elementary and Secondary Education Act of 1965 (in this part 
referred to as the ``ESEA'') (20 U.S.C. 6311 et seq.) for fiscal year 
2013, except that--
            (1) the Secretary shall allocate 40 percent of such 
        remaining amount to the 100 local educational agencies with the 
        largest numbers of children aged 5-17 living in poverty, as 
        determined using the most recent data available from the 
        Department of Commerce that are satisfactory to the Secretary, 
        in proportion to those agencies' respective allocations under 
        part A of title I of the ESEA for fiscal year 2013; and
            (2) the allocation to any State shall be reduced by the 
        aggregate amount of the allocations under paragraph (1) to 
        local educational agencies in that State.
    (c) Remaining Allocation.--
            (1) States.--If a State does not apply for its allocation 
        under subsection (b) (or applies for less than the full 
        allocation for which it is eligible) or does not use that 
        allocation in a timely manner, the Secretary may--
                    (A) reallocate all or a portion of that allocation 
                to the other States in accordance with subsection (b); 
                or
                    (B) use all or a portion of that allocation to make 
                direct allocations to local educational agencies within 
                the State based on their respective allocations under 
                part A of title I of the ESEA for fiscal year 2013 or 
                such other method as the Secretary may determine.
            (2) Local educational agencies.--If a local educational 
        agency does not apply for its allocation under subsection 
        (b)(1), applies for less than the full allocation for which it 
        is eligible, or does not use that allocation in a timely 
        manner, the Secretary may reallocate all or a portion of its 
        allocation to the State in which that agency is located.

SEC. 224. STATE USE OF FUNDS.

    (a) Reservation.--Each State that receives a grant under this part 
may reserve not more than one percent of the State's allocation under 
section 223(b) for the purpose of administering the grant, except that 
no State may reserve more than $750,000 for this purpose.
    (b) Funds to Local Educational Agencies.--
            (1) Formula subgrants.--From the grant funds that are not 
        reserved under subsection (a), a State shall allocate at least 
        50 percent to local educational agencies, including charter 
        schools that are local educational agencies, that did not 
        receive funds under section 223(b)(1) from the Secretary, in 
        accordance with their respective allocations under part A of 
        title I of the ESEA for fiscal year 2013, except that no such 
        local educational agency shall receive less than $10,000.
            (2) Additional subgrants.--The State shall use any funds 
        remaining, after reserving funds under subsection (a) and 
        allocating funds under paragraph (1), for subgrants to local 
        educational agencies that did not receive funds under section 
        223(b)(1), including charter schools that are local educational 
        agencies, to support modernization, renovation, and repair 
        projects that the State determines, using objective criteria, 
        are most needed in the State, with priority given to projects 
        in rural local educational agencies.
    (c) Remaining Funds.--If a local educational agency does not apply 
for an allocation under subsection (b)(1), applies for less than its 
full allocation, or fails to use that allocation in a timely manner, 
the State may reallocate any unused portion to other local educational 
agencies in accordance with subsection (b).

SEC. 225. STATE AND LOCAL APPLICATIONS.

    (a) State Application.--A State that desires to receive a grant 
under this part shall submit an application to the Secretary at such 
time, in such manner, and containing such information and assurances as 
the Secretary may require, which shall include--
            (1) an identification of the State agency or entity that 
        will administer the program under this part; and
            (2) the State's process for determining how the grant funds 
        will be distributed and administered, including--
                    (A) how the State will determine the criteria and 
                priorities in making subgrants under section 224(b)(2);
                    (B) any additional criteria the State will use in 
                determining which projects it will fund under that 
                section;
                    (C) a description of how the State will consider--
                            (i) the needs of local educational agencies 
                        for assistance under this part;
                            (ii) the impact of potential projects on 
                        job creation in the State;
                            (iii) the fiscal capacity of local 
                        educational agencies applying for assistance;
                            (iv) the percentage of children in those 
                        local educational agencies who are from low-
                        income families; and
                            (v) the potential for leveraging assistance 
                        provided by the program under this part through 
                        matching or other financing mechanisms;
                    (D) a description of how the State will ensure that 
                the local educational agencies receiving subgrants meet 
                the requirements of this part;
                    (E) a description of how the State will ensure that 
                the State and its local educational agencies meet the 
                deadlines established in section 228;
                    (F) a description of how the State will give 
                priority to the use of green practices that are 
                certified, verified, or consistent with any applicable 
                provisions of--
                            (i) the LEED Green Building Rating System;
                            (ii) Energy Star;
                            (iii) the CHPS Criteria;
                            (iv) Green Globes; or
                            (v) an equivalent program adopted by the 
                        State or another jurisdiction with authority 
                        over the local educational agency;
                    (G) a description of the steps that the State will 
                take to ensure that local educational agencies 
                receiving subgrants under this part will adequately 
                maintain any facilities that are modernized, renovated, 
                or repaired with such subgrant funds; and
                    (H) such additional information and assurances as 
                the Secretary may require.
    (b) Local Application.--A local educational agency that is eligible 
under section 223(b)(1) that desires to receive a grant under this part 
shall submit an application to the Secretary at such time, in such 
manner, and containing such information and assurances as the Secretary 
may require, which shall include--
            (1) a description of how the local educational agency will 
        meet the deadlines and requirements of this part;
            (2) a description of the steps that the local educational 
        agency will take to adequately maintain any facilities that are 
        modernized, renovated, or repaired with funds under this part; 
        and
            (3) such additional information and assurances as the 
        Secretary may require.

SEC. 226. USE OF FUNDS.

    (a) In General.--Funds awarded to local educational agencies under 
this part shall be used only for either or both of the following 
modernization, renovation, or repair activities in facilities that are 
used for elementary or secondary education or for early learning 
programs:
            (1) Direct payments for school modernization, renovation, 
        or repair.
            (2) To pay interest on bonds or payments for other 
        financing instruments that are newly issued for the purpose of 
        financing school modernization, renovation, or repair.
    (b) Supplement, Not Supplant.--Funds made available under this part 
shall be used to supplement, and not supplant, other Federal, State, 
and local funds that would otherwise be expended to modernize, 
renovate, or repair eligible school facilities.
    (c) Prohibition.--Funds awarded to local educational agencies under 
this part may not be used for--
            (1) new construction;
            (2) payment of routine maintenance costs; or
            (3) modernization, renovation, or repair of stadiums or 
        other facilities primarily used for athletic contests or 
        exhibitions or other events for which admission is charged to 
        the general public.

SEC. 227. PRIVATE SCHOOLS.

    (a) In General.--Section 9501 of the ESEA (20 U.S.C. 7881) shall 
apply to this part in the same manner as it applies to activities under 
that Act, except that--
            (1) such section 9501 shall not apply with respect to the 
        title to any real property modernized, renovated, or repaired 
        with assistance provided under this part;
            (2) educational services or other benefits funded under 
        this part for private schools shall be provided only to 
        private, nonprofit elementary or secondary schools with a rate 
        of child poverty of at least 40 percent and may include only--
                    (A) modifications of school facilities necessary to 
                meet the standards applicable to public schools under 
                the Americans with Disabilities Act of 1990 (42 U.S.C. 
                12101 et seq.);
                    (B) modifications of school facilities necessary to 
                meet the standards applicable to public schools under 
                section 504 of the Rehabilitation Act of 1973 (29 
                U.S.C. 794); and
                    (C) asbestos or polychlorinated biphenyls abatement 
                or removal from school facilities; and
            (3) expenditures for services provided using funds made 
        available under section 226 shall be considered equal for 
        purposes of section 9501(a)(4) of the ESEA if the per-pupil 
        expenditures for services described in paragraph (2) for 
        students enrolled in private, nonprofit elementary and 
        secondary schools that have child-poverty rates of at least 40 
        percent are consistent with the per-pupil expenditures under 
        this part for children enrolled in the public schools of the 
        local educational agency receiving funds under this part.
    (b) Remaining Funds.--If the expenditure for services described in 
subsection (a)(2) is less than the amount calculated under subsection 
(a)(3) because of insufficient need for those services, the remainder 
shall be available to the local educational agency for modernization, 
renovation, or repair of its school facilities.
    (c) Application.--If any provision of this section, or the 
application thereof, to any person or circumstance is judicially 
determined to be invalid, the remainder of the section and the 
application to other persons or circumstances shall not be affected 
thereby.

SEC. 228. ADDITIONAL PROVISIONS.

    (a) 24-Month Period of Availability.--Funds appropriated under 
section 222 shall be available for obligation by local educational 
agencies receiving grants from the Secretary under section 223(b)(1), 
by States reserving funds under section 224(a), and by local 
educational agencies receiving subgrants under section 224(b)(1) only 
during the period that ends 24 months after the date of enactment of 
this Act.
    (b) 36-Month Period of Availability.--Funds appropriated under 
section 222 shall be available for obligation by local educational 
agencies receiving subgrants under section 224(b)(2) only during the 
period that ends 36 months after the date of enactment of this Act.
    (c) Applicability of GEPA.--Section 439 of the General Education 
Provisions Act (20 U.S.C. 1232b) shall apply to funds available under 
this part.
    (d) Limitation.--For purposes of section 223(b)(1), Hawaii, the 
District of Columbia, and the Commonwealth of Puerto Rico are not local 
educational agencies.

                PART II--COMMUNITY COLLEGE MODERNIZATION

SEC. 229. FEDERAL ASSISTANCE FOR COMMUNITY COLLEGE MODERNIZATION.

    (a) In General.--
            (1) Grant program.--From the amounts made available under 
        subsection (h), the Secretary shall award grants to States to 
        modernize, renovate, or repair existing facilities at community 
        colleges.
            (2) Allocation.--
                    (A) Reservations.--Of the amount made available to 
                carry out this section, the Secretary shall reserve--
                            (i) up to 0.25 percent for grants to 
                        institutions that are eligible under section 
                        316 of the Higher Education Act of 1965 (20 
                        U.S.C. 1059c) to provide for modernization, 
                        renovation, and repair activities described in 
                        this section; and
                            (ii) up to 0.25 percent for grants to the 
                        outlying areas to provide for modernization, 
                        renovation, and repair activities described in 
                        this section.
                    (B) Allocation.--After reserving funds under 
                subparagraph (A), the Secretary shall allocate to each 
                State that has an application approved by the Secretary 
                an amount that bears the same relation to any remaining 
                funds as the total number of students in such State who 
                are enrolled in institutions described in section 
                230(b)(1)(A) plus the number of students who are 
                estimated to be enrolled in and pursuing a degree or 
                certificate that is not a bachelor's, master's, 
                professional, or other advanced degree in institutions 
                described in section 230(b)(1)(B), based on the 
                proportion of degrees or certificates awarded by such 
                institutions that are not bachelor's, master's, 
                professional, or other advanced degrees, as reported to 
                the Integrated Postsecondary Data System bears to the 
                estimated total number of such students in all States, 
                except that no State shall receive less than 
                $2,500,000.
                    (C) Reallocation.--Amounts not allocated under this 
                section to a State because the State either did not 
                submit an application under subsection (b), the State 
                submitted an application that the Secretary determined 
                did not meet the requirements of such subsection, or 
                the State cannot demonstrate to the Secretary a 
                sufficient demand for projects to warrant the full 
                allocation of the funds, shall be proportionately 
                reallocated under this paragraph to the other States 
                that have a demonstrated need for, and are receiving, 
                allocations under this section.
                    (D) State administration.--A State that receives a 
                grant under this section may use not more than one 
                percent of that grant to administer it, except that no 
                State may use more than $750,000 of its grant for this 
                purpose.
            (3) Supplement, not supplant.--Funds made available under 
        this section shall be used to supplement, and not supplant, 
        other Federal, State, and local funds that would otherwise be 
        expended to modernize, renovate, or repair existing community 
        college facilities.
    (b) Application.--A State that desires to receive a grant under 
this section shall submit an application to the Secretary at such time, 
in such manner, and containing such information and assurances as the 
Secretary may require. Such application shall include a description 
of--
            (1) how the funds provided under this section will improve 
        instruction at community colleges in the State and will improve 
        the ability of those colleges to educate and train students to 
        meet the workforce needs of employers in the State;
            (2) the projected start of each project and the estimated 
        number of persons to be employed in the project; and
            (3) the cost of each project and the total amount of funds 
        requested for each project and for all projects.
    (c) Prohibited Uses of Funds.--
            (1) In general.--No funds awarded under this section may be 
        used for--
                    (A) payment of routine maintenance costs;
                    (B) construction, modernization, renovation, or 
                repair of stadiums or other facilities primarily used 
                for athletic contests or exhibitions or other events 
                for which admission is charged to the general public; 
                or
                    (C) construction, modernization, renovation, or 
                repair of facilities--
                            (i) used for sectarian instruction, 
                        religious worship, or a school or department of 
                        divinity; or
                            (ii) in which a substantial portion of the 
                        functions of the facilities are subsumed in a 
                        religious mission.
            (2) Four-year institutions.--No funds awarded to a four-
        year public institution of higher education under this section 
        may be used for any facility, service, or program of the 
        institution that is not available to students who are pursuing 
        a degree or certificate that is not a bachelor's, master's, 
        professional, or other advanced degree.
    (d) Green Projects.--In providing assistance to community college 
projects under this section, the State shall consider the extent to 
which a community college's project involves activities that are 
certified, verified, or consistent with the applicable provisions of--
            (1) the LEED Green Building Rating System;
            (2) Energy Star;
            (3) the CHPS Criteria, as applicable;
            (4) Green Globes; or
            (5) an equivalent program adopted by the State or the State 
        higher education agency that includes a verifiable method to 
        demonstrate compliance with such program.
    (e) Application of GEPA.--Section 439 of the General Education 
Provisions Act (20 U.S.C. 1232b) shall apply to funds available under 
this section.
    (f) Reports by the States.--Each State that receives a grant under 
this section shall, not later than September 30, 2016, and annually 
thereafter for each fiscal year in which the State expends funds 
received under this section, submit to the Secretary a report that 
includes--
            (1) a description of the projects for which the grant was, 
        or will be, used;
            (2) a description of the amount and nature of the 
        assistance provided to each community college under this 
        section; and
            (3) the number of jobs created by the projects funded under 
        this section.
    (g) Report by the Secretary.--The Secretary shall submit to the 
authorizing committees (as defined in section 103 of the Higher 
Education Act of 1965; 20 U.S.C. 1003) an annual report on the grants 
made under this section, including the information described in 
subsection (f).
    (h) Availability of Funds.--
            (1) There are authorized to be appropriated, and there are 
        appropriated, to carry out this section (in addition to any 
        other amounts appropriated to carry out this section and out of 
        any money in the Treasury not otherwise appropriated), 
        $5,000,000,000 for fiscal year 2016.
            (2) Funds appropriated under this subsection shall be 
        available for obligation by community colleges only during the 
        period that ends 36 months after the date of enactment of this 
        Act.

                         PART III--DEFINITIONS

SEC. 230. DEFINITIONS.

    (a) ESEA Terms.--Except as otherwise provided, in this subtitle, 
the terms ``local educational agency'', ``Secretary'', and ``State 
educational agency'' have the meanings given those terms in section 
9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
7801).
    (b) Additional Definitions.--The following definitions apply to 
this title:
            (1) Community college.--The term ``community college'' 
        means--
                    (A) a junior or community college, as that term is 
                defined in section 312(f) of the Higher Education Act 
                of 1965 (20 U.S.C. 1058(f)); or
                    (B) an institution of higher education (as defined 
                in 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--
                            (i) bachelor's degrees (or an equivalent); 
                        or
                            (ii) master's, professional, or other 
                        advanced degrees.
            (2) CHPS criteria.--The term ``CHPS Criteria'' means the 
        green building rating program developed by the Collaborative 
        for High Performance Schools.
            (3) Energy star.--The term ``Energy Star'' means the Energy 
        Star program of the United States Department of Energy and the 
        United States Environmental Protection Agency.
            (4) Green globes.--The term ``Green Globes'' means the 
        Green Building Initiative environmental design and rating 
        system referred to as Green Globes.
            (5) LEED green building rating system.--The term ``LEED 
        Green Building Rating System'' means the United States Green 
        Building Council Leadership in Energy and Environmental Design 
        green building rating standard referred to as the LEED Green 
        Building Rating System.
            (6) Modernization, renovation, and repair.--The term 
        ``modernization, renovation, and repair'' means--
                    (A) comprehensive assessments of facilities, 
                including indoor air-quality assessments, to identify--
                            (i) facility conditions or deficiencies 
                        that could adversely affect student and staff 
                        health, safety, performance, or productivity or 
                        energy, water, or materials efficiency; and
                            (ii) needed facility improvements;
                    (B) repairing, replacing, or installing roofs 
                (which may be extensive, intensive, or semi-intensive 
                ``green'' roofs); electrical wiring; water supply and 
                plumbing systems, sewage systems, storm water runoff 
                systems, lighting systems (or components of such 
                systems); or building envelope, windows, ceilings, 
                flooring, or doors, including security doors;
                    (C) repairing, replacing, or installing heating, 
                ventilation, or air conditioning systems, or components 
                of those systems (including insulation) to improve 
                energy efficiency;
                    (D) compliance with fire, health, seismic, and 
                safety codes, including professional installation of 
                fire and life safety alarms, and modernizations, 
                renovations, and repairs that ensure that facilities 
                are prepared for such emergencies as acts of terrorism, 
                campus violence, and natural disasters, such as 
                improving building infrastructure to accommodate 
                security measures and installing or upgrading 
                technology to ensure that a school or incident is able 
                to respond to such emergencies;
                    (E) making modifications necessary to make 
                educational facilities accessible in compliance 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), except that such 
                modifications shall not be the primary use of a grant 
                or subgrant;
                    (F) abatement, removal, or interim controls of 
                asbestos, polychlorinated biphenyls, mold, mildew, or 
                lead-based hazards, including lead-based paint hazards;
                    (G) retrofitting necessary to increase energy 
                efficiency;
                    (H) measures, such as selection and substitution of 
                products and materials, and implementation of improved 
                maintenance and operational procedures, such as ``green 
                cleaning'' programs, to reduce or eliminate potential 
                student or staff exposure to--
                            (i) volatile organic compounds;
                            (ii) particles such as dust and pollens; or
                            (iii) combustion gases;
                    (I) modernization, renovation, or repair necessary 
                to reduce the consumption of coal, electricity, land, 
                natural gas, oil, or water;
                    (J) installation or upgrading of educational 
                technology infrastructure;
                    (K) installation or upgrading of renewable energy 
                generation and heating systems, including solar, 
                photovoltaic, wind, biomass (including wood pellet and 
                woody biomass), waste-to-energy, solar-thermal, and 
                geothermal systems, and energy audits;
                    (L) modernization, renovation, or repair activities 
                related to energy efficiency and renewable energy, and 
                improvements to building infrastructures to accommodate 
                bicycle and pedestrian access;
                    (M) ground improvements, storm water management, 
                landscaping, and environmental clean-up when necessary;
                    (N) other modernization, renovation, or repair to--
                            (i) improve teachers' ability to teach and 
                        students' ability to learn;
                            (ii) ensure the health and safety of 
                        students and staff; or
                            (iii) improve classroom, laboratory, and 
                        vocational facilities in order to enhance the 
                        quality of science, technology, engineering, 
                        and mathematics instruction; and
                    (O) required environmental remediation related to 
                facilities modernization, renovation, or repair 
                activities described in subparagraphs (A) through (N).
            (7) Outlying area.--The term ``outlying area'' means the 
        U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of 
        the Northern Mariana Islands, and the Republic of Palau.
            (8) State.--The term ``State'' means each of the 50 States 
        of the United States, the Commonwealth of Puerto Rico, and the 
        District of Columbia.

    Subtitle D--Immediate Transportation Infrastructure Investments

SEC. 241. IMMEDIATE TRANSPORTATION INFRASTRUCTURE INVESTMENTS.

    (a) Grants-In-Aid for Airports.--
            (1) In general.--There is made available to the Secretary 
        of Transportation $2,000,000,000 to carry out airport 
        improvement under subchapter I of chapter 471 and subchapter I 
        of chapter 475 of title 49, United States Code.
            (2) Federal share; limitation on obligations.--The Federal 
        share payable of the costs for which a grant is made under this 
        subsection, shall be 100 percent. The amount made available 
        under this subsection shall not be subject to any limitation on 
        obligations for the Grants-In-Aid for Airports program set 
        forth in any Act or in title 49, United States Code.
            (3) Distribution of funds.--Funds provided to the Secretary 
        under this subsection shall not be subject to apportionment 
        formulas, special apportionment categories, or minimum 
        percentages under chapter 471 of such title.
            (4) Availability.--The amounts made available under this 
        subsection shall be available for obligation until the date 
        that is 2 years after the date of the enactment of this Act. 
        The Secretary shall obligate amounts totaling not less than 50 
        percent of the funds made available not later than 1 year after 
        the date of enactment of this Act and obligate remaining 
        amounts not later than 2 years after the date of enactment.
            (5) Administrative expenses.--Of the funds made available 
        under this subsection, 0.3 percent shall be available to the 
        Secretary for administrative expenses, shall remain available 
        for obligation until September 30, 2016, and may be used in 
        conjunction with funds otherwise provided for the 
        administration of the Grants-In-Aid for Airports program.
    (b) Next Generation Air Traffic Control Advancements.--
            (1) In general.--There is made available to the Secretary 
        of Transportation $1,000,000,000 for necessary Federal Aviation 
        Administration capital, research, and operating costs to carry 
        out Next Generation air traffic control system advancements.
            (2) Availability.--The amounts made available under this 
        subsection shall be available for obligation until the date 
        that is 2 years after the date of the enactment of this Act.
    (c) Highway Infrastructure Investment.--
            (1) In general.--There is made available to the Secretary 
        of Transportation $27,000,000,000 for restoration, repair, 
        construction and other activities eligible under section 133(b) 
        of title 23, United States Code, and for passenger and freight 
        rail transportation and port infrastructure projects eligible 
        for assistance defined under section 601(a)(12)(D) of title 23.
            (2) Federal share; limitation on obligations.--The Federal 
        share payable on account of any project or activity carried out 
        with funds made available under this subsection shall be, at 
        the option of the recipient, up to 100 percent of the total 
        cost thereof. The amount made available under this subsection 
        shall not be subject to any limitation on obligations for 
        Federal-aid highways and highway safety construction programs 
        set forth in any Act or in title 23, United States Code.
            (3) Availability.--The amounts made available under this 
        subsection shall be available for obligation until the date 
        that is 2 years after the date of the enactment of this Act. 
        The Secretary shall obligate amounts totaling not less than 50 
        percent of the funds made available under this subsection 
        within one year of enactment of this Act and obligate remaining 
        amounts not later than 2 years after such date of enactment.
            (4) Distribution of funds.--Of the funds provided in this 
        subsection, after making the set-asides required by paragraphs 
        (9), (10), (11), (12), and (15), 50 percent of the funds shall 
        be apportioned to States using the formula set forth in section 
        104(b)(3) of title 23, United States Code, and the remaining 
        funds shall be apportioned to States in the same ratio as the 
        obligation limitation for fiscal year 2010 was distributed 
        among the States in accordance with the formula specified in 
        section 120(a)(6) of division A of Public Law 111-117.
            (5) Apportionment.--Apportionments under paragraph (4) 
        shall be made not later than 30 days after the date of the 
        enactment of this Act.
            (6) Redistribution.--
                    (A) The Secretary shall, 180 days after the date of 
                apportionment, withdraw from each State an amount equal 
                to 50 percent of the funds apportioned under paragraph 
                (4) to that State (excluding funds suballocated within 
                the State) less the amount of funding obligated 
                (excluding funds suballocated within the State), and 
                the Secretary shall redistribute such amounts to other 
                States that have had no funds withdrawn under this 
                subparagraph in the manner described in section 120(c) 
                of division A of Public Law 111-117.
                    (B) One year after the date of apportionment, the 
                Secretary shall withdraw from each recipient of funds 
                apportioned under paragraph (4) any unobligated funds, 
                and the Secretary shall redistribute such amounts to 
                States that have had no funds withdrawn under this 
                paragraph (excluding funds suballocated within the 
                State) in the manner described in section 120(c) of 
                division A of Public Law 111-117.
                    (C) At the request of a State, the Secretary may 
                provide an extension of the one-year period only to the 
                extent that the Secretary determines that the State has 
                encountered extreme conditions that create an 
                unworkable bidding environment or other extenuating 
                circumstances. Before granting an extension, the 
                Secretary shall notify in writing the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives and the Committee on Environment and 
                Public Works of the Senate, providing a thorough 
                justification for the extension.
            (7) Transportation enhancements.--Three percent of the 
        funds apportioned to a State under paragraph (4) shall be set 
        aside for the purposes described in section 133(d)(2) of title 
        23, United States Code (without regard to the comparison to 
        fiscal year 2005).
            (8) Suballocation.--Thirty percent of the funds apportioned 
        to a State under this subsection shall be suballocated within 
        the State in the manner and for the purposes described in the 
        first sentence of sections 133(d)(3)(A), 133(d)(3)(B), and 
        133(d)(3)(D) of title 23, United States Code. Such 
        suballocation shall be conducted in every State. Funds 
        suballocated within a State to urbanized areas and other areas 
        shall not be subject to the redistribution of amounts required 
        180 days after the date of apportionment of funds provided by 
        paragraph (6)(A).
            (9) Puerto rico and territorial highway programs.--Of the 
        funds provided under this subsection, $105,000,000 shall be set 
        aside for the Puerto Rico highway program authorized under 
        section 165 of title 23, United States Code, and $45,000,000 
        shall be for the territorial highway program authorized under 
        section 165 of title 23, United States Code.
            (10) Federal lands and indian reservations.--Of the funds 
        provided under this subsection, $550,000,000 shall be set aside 
        for investments in transportation at Indian reservations and 
        Federal lands in accordance with the following:
                    (A) Of the funds set aside by this paragraph, 
                $310,000,000 shall be for the Indian Reservation Roads 
                program, $170,000,000 shall be for the Park Roads and 
                Parkways program, $60,000,000 shall be for the Forest 
                Highway Program, and $10,000,000 shall be for the 
                Refuge Roads program.
                    (B) For investments at Indian reservations and 
                Federal lands, priority shall be given to capital 
                investments, and to projects and activities that can be 
                completed within 2 years of enactment of this Act.
                    (C) One year after the enactment of this Act, to 
                ensure the prompt use of the funding provided for 
                investments at Indian reservations and Federal lands, 
                the Secretary shall have the authority to redistribute 
                unobligated funds within the respective program for 
                which the funds were appropriated.
                    (D) Up to four percent of the funding provided for 
                Indian Reservation Roads may be used by the Secretary 
                of the Interior for program management and oversight 
                and project-related administrative expenses.
            (11) Job training.--Of the funds provided under this 
        subsection, $50,000,000 shall be set aside for the development 
        and administration of transportation training programs under 
        section 140(b) title 23, United States Code.
                    (A) Funds set aside under this subsection shall be 
                competitively awarded and used for the purpose of 
                providing training, apprenticeship (including 
                Registered Apprenticeship), skill development, and 
                skill improvement programs, as well as summer 
                transportation institutes and may be transferred to, or 
                administered in partnership with, the Secretary of 
                Labor and shall demonstrate to the Secretary of 
                Transportation program outcomes, including--
                            (i) impact on areas with transportation 
                        workforce shortages;
                            (ii) diversity of training participants;
                            (iii) number of participants obtaining 
                        certifications or credentials required for 
                        specific types of employment;
                            (iv) employment outcome metrics, such as 
                        job placement and job retention rates, 
                        established in consultation with the Secretary 
                        of Labor and consistent with metrics used by 
                        programs under the Workforce Investment Act;
                            (v) to the extent practical, evidence that 
                        the program did not preclude workers that 
                        participate in training or apprenticeship 
                        activities under the program from being 
                        referred to, or hired on, projects funded under 
                        this chapter; and
                            (vi) identification of areas of 
                        collaboration with the Department of Labor 
                        programs, including co-enrollment.
                    (B) To be eligible to receive a competitively 
                awarded grant under this subsection, a State must 
                certify that at least 0.1 percent of the amounts 
                apportioned under the Surface Transportation Program 
                and Bridge Program will be obligated in the first 
                fiscal year after the date of enactment of this Act for 
                job training activities consistent with section 140(b) 
                of title 23, United States Code.
            (12) Disadvantaged business enterprises.--Of the funds 
        provided under this subsection, $10,000,000 shall be set aside 
        for training programs and assistance programs under section 
        140(c) of title 23, United States Code. Funds set aside under 
        this paragraph should be allocated to businesses that have 
        proven success in adding staff while effectively completing 
        projects.
            (13) State planning and oversight expenses.--Of amounts 
        apportioned under paragraph (4) of this subsection, a State may 
        use up to 0.5 percent for activities related to projects funded 
        under this subsection, including activities eligible under 
        sections 134 and 135 of title 23, United States Code, State 
        administration of subgrants, and State oversight of 
        subrecipients.
            (14) Conditions.--
                    (A) Funds made available under this subsection 
                shall be administered as if apportioned under chapter 1 
                of title 23, United States Code, except for funds made 
                available for investments in transportation at Indian 
                reservations and Federal lands, and for the territorial 
                highway program, which shall be administered in 
                accordance with chapter 2 of title 23, United States 
                Code, and except for funds made available for 
                disadvantaged business enterprises bonding assistance, 
                which shall be administered in accordance with subpart 
                A of part 26 of title 49, Code of Federal Regulations.
                    (B) Funds made available under this subsection 
                shall not be obligated for the purposes authorized 
                under section 115(b) of title 23, United States Code.
                    (C) Funding provided under this subsection shall be 
                in addition to any and all funds provided for fiscal 
                years 2014 and 2015 in any other Act for ``Federal-aid 
                Highways'' and shall not affect the distribution of 
                funds provided for ``Federal-aid Highways'' in any 
                other Act.
                    (D) Section 1101(b) of Public Law 109-59 shall 
                apply to funds apportioned under this subsection.
            (15) Oversight.--The Administrator of the Federal Highway 
        Administration may set aside up to 0.15 percent of the funds 
        provided under this subsection to fund the oversight by the 
        Administrator of projects and activities carried out with funds 
        made available to the Federal Highway Administration in this 
        Act, and such funds shall be available through September 30, 
        2018.
    (d) Capital Assistance for High-Speed Rail Corridors and Intercity 
Passenger Rail Service.--
            (1) In general.--There is made available to the Secretary 
        of Transportation $4,000,000,000 for grants for high-speed rail 
        projects as authorized under sections 26104 and 26106 of title 
        49, United States Code, capital investment grants to support 
        intercity passenger rail service as authorized under section 
        24406 of title 49, United States Code, and congestion grants as 
        authorized under section 24105 of title 49, United States Code, 
        and to enter into cooperative agreements for these purposes as 
        authorized, except that the Administrator of the Federal 
        Railroad Administration may retain up to one percent of the 
        funds provided under this heading to fund the award and 
        oversight by the Administrator of grants made under this 
        subsection, which retained amount shall remain available for 
        obligation until September 30, 2018.
            (2) Availability.--The amounts made available under this 
        subsection shall be available for obligation until the date 
        that is 2 years after the date of the enactment of this Act. 
        The Secretary shall obligate amounts totaling not less than 50 
        percent of the funds made available not later that 1 year of 
        the date of enactment of this Act and obligate remaining 
        amounts not later than 2 years after the date of such 
        enactment.
            (3) Federal share.--The Federal share payable of the costs 
        for which a grant or cooperative agreements is made under this 
        subsection shall be, at the option of the recipient, up to 100 
        percent.
            (4) Interim guidance.--The Secretary shall issue interim 
        guidance to applicants covering application procedures and 
        administer the grants provided under this subsection pursuant 
        to that guidance until final regulations are issued.
            (5) Intercity passenger rail corridors.--Not less than 85 
        percent of the funds provided under this subsection shall be 
        for cooperative agreements that lead to the development of 
        entire segments or phases of intercity or high-speed rail 
        corridors.
            (6) Conditions.--
                    (A) In addition to the provisions of title 49, 
                United States Code, that apply to each of the 
                individual programs funded under this subsection, 
                sections 24402(a)(2), 24402(i), and 24403 (a) and (c) 
                of title 49, United States Code, shall also apply to 
                the provision of funds provided under this subsection.
                    (B) A project need not be in a State rail plan 
                developed under chapter 227 of title 49, United States 
                Code, to be eligible for assistance under this 
                subsection.
                    (C) Recipients of grants under this paragraph shall 
                conduct all procurement transactions using such grant 
                funds in a manner that provides full and open 
                competition, as determined by the Secretary, in 
                compliance with existing labor agreements.
    (e) Capital Grants to the National Railroad Passenger 
Corporation.--
            (1) In general.--There is made available $2,000,000,000 to 
        enable the Secretary of Transportation to make capital grants 
        to the National Railroad Passenger Corporation (Amtrak), as 
        authorized by section 101(c) of the Passenger Rail Investment 
        and Improvement Act of 2008 (Public Law 110-432).
            (2) Availability.--The amounts made available under this 
        subsection shall be available for obligation until the date 
        that is 2 years after the date of the enactment of this Act. 
        The Secretary shall obligate amounts totaling not less than 50 
        percent of the funds made available not later than 1 year after 
        the date of enactment of this Act and obligate remaining 
        amounts not later than 2 years after date of such enactment.
            (3) Project priority.--The priority for the use of funds 
        shall be given to projects for the repair, rehabilitation, or 
        upgrade of railroad assets or infrastructure, and for capital 
        projects that expand passenger rail capacity including the 
        rehabilitation of rolling stock.
            (4) Conditions.--
                    (A) None of the funds under this subsection shall 
                be used to subsidize the operating losses of Amtrak.
                    (B) The funds provided under this subsection shall 
                be awarded not later than 90 days after the date of 
                enactment of this Act.
                    (C) The Secretary shall take measures to ensure 
                that projects funded under this subsection shall be 
                completed within 2 years of date of enactment of this 
                Act, and shall serve to supplement and not supplant 
                planned expenditures for such activities from other 
                Federal, State, local and corporate sources. The 
                Secretary shall certify to the House and Senate 
                Committees on Appropriations in writing compliance with 
                the preceding sentence.
            (5) Oversight.--The Administrator of the Federal Railroad 
        Administration may set aside 0.5 percent of the funds provided 
        under this subsection to fund the oversight by the 
        Administrator of projects and activities carried out with funds 
        made available in this subsection, and such funds shall be 
        available through September 30, 2018.
    (f) Transit Capital Assistance.--
            (1) In general.--There is made available to the Secretary 
        of Transportation $3,000,000,000 for grants for transit capital 
        assistance grants as defined by section 5302(a)(1) of title 49, 
        United States Code. Notwithstanding any provision of chapter 53 
        of title 49, a recipient of funding under this subsection may 
        use up to 10 percent of the amount provided for the operating 
        costs of equipment and facilities for use in public 
        transportation or for other eligible activities.
            (2) Federal share; limitation on obligations.--The 
        applicable requirements of chapter 53 of title 49, United 
        States Code, shall apply to funding provided under this 
        subsection, except that the Federal share of the costs for 
        which any grant is made under this subsection shall be, at the 
        option of the recipient, up to 100 percent. The amount made 
        available under this subsection shall not be subject to any 
        limitation on obligations for transit programs set forth in any 
        Act or chapter 53 of title 49.
            (3) Availability.--The amounts made available under this 
        subsection shall be available for obligation until the date 
        that is 2 years after the date of the enactment of this Act. 
        The Secretary shall obligate amounts totaling not less than 50 
        percent of the funds made available within 1 year after the 
        date of enactment of this Act and obligate remaining amounts 
        not later than 2 years after date of such enactment.
            (4) Distribution of funds.--The Secretary of Transportation 
        shall--
                    (A) provide 80 percent of the funds appropriated 
                under this subsection for grants under section 5307 of 
                title 49, United States Code, and apportion such funds 
                in accordance with section 5336 of such title;
                    (B) provide 10 percent of the funds appropriated 
                under this subsection in accordance with section 5340 
                of such title; and
                    (C) provide 10 percent of the funds appropriated 
                under this subsection for grants under section 5311 of 
                title 49, United States Code, and apportion such funds 
                in accordance with such section.
            (5) Apportionment.--The funds apportioned under this 
        subsection shall be apportioned not later than 21 days after 
        the date of the enactment of this Act.
            (6) Redistribution.--
                    (A) The Secretary shall, 180 days after the date of 
                apportionment, under this subsection, withdraw from 
                each urbanized area or State an amount equal to 50 
                percent of the funds apportioned to such urbanized 
                areas or States less the amount of funding obligated, 
                and the Secretary shall redistribute such amounts to 
                other urbanized areas or States that have had no funds 
                withdrawn under this proviso utilizing whatever method 
                the Secretary considers appropriate to ensure that all 
                funds redistributed under this proviso shall be 
                utilized promptly.
                    (B) One year following the date of apportionment, 
                the Secretary shall withdraw from each urbanized area 
                or State any unobligated funds, and the Secretary shall 
                redistribute such amounts to other urbanized areas or 
                States that have had no funds withdrawn under this 
                proviso utilizing whatever method the Secretary deems 
                appropriate to ensure that all funds redistributed 
                under this proviso shall be utilized promptly.
                    (C) At the request of an urbanized area or State, 
                the Secretary of Transportation may provide an 
                extension of such 1-year period if the Secretary 
                determines that the urbanized area or State has 
                encountered an unworkable bidding environment or other 
                extenuating circumstances. Before granting an 
                extension, the Secretary shall notify in writing the 
                Committee on Transportation and Infrastructure of the 
                House of Representatives and the Committee on Banking, 
                Housing, and Urban Affairs of the Senate, providing a 
                thorough justification for the extension.
            (7) Conditions.--
                    (A) Of the funds provided for section 5311 of title 
                49, United States Code, 2.5 percent shall be made 
                available for section 5311(c)(1).
                    (B) Section 1101(b) of Public Law 109-59 shall 
                apply to funds appropriated under this subsection.
                    (C) The funds appropriated under this subsection 
                shall not be commingled with any prior year funds.
            (8) Oversight.--Notwithstanding any other provision of law, 
        0.3 percent of the funds provided for grants under section 5307 
        and section 5340, and 0.3 percent of the funds provided for 
        grants under section 5311, shall be available for 
        administrative expenses and program management oversight, and 
        such funds shall be available through September 30, 2017.
    (g) State of Good Repair.--
            (1) In general.--There is made available to the Secretary 
        of Transportation $6,000,000,000 for capital expenditures as 
        authorized by paragraphs (2) and (3) of section 5309(b) of 
        title 49, United States Code.
            (2) Federal share.--The applicable requirements of chapter 
        53 of title 49, United States Code, shall apply, except that 
        the Federal share of the costs for which a grant is made under 
        this subsection shall be, at the option of the recipient, up to 
        100 percent.
            (3) Availability.--The amounts made available under this 
        subsection shall be available for obligation until the date 
        that is two years after the date of the enactment of this Act. 
        The Secretary shall obligate amounts totaling not less than 50 
        percent of the funds made available within 1 year after the 
        date of enactment and obligate remaining amounts not later than 
        2 years after the date of such enactment.
            (4) Distribution of funds.--
                    (A) The Secretary of Transportation shall apportion 
                not less than 75 percent of the funds under this 
                subsection for the modernization of fixed guideway 
                systems, pursuant to the formula set forth in section 
                5336(b) title 49, United States Code, other than 
                subsection (b)(2)(A)(ii).
                    (B) Of the funds appropriated under this 
                subsection, not less than 25 percent shall be available 
                for the restoration or replacement of existing public 
                transportation assets related to bus systems, pursuant 
                to the formula set forth in section 5336 other than 
                subsection (b).
            (5) Apportionment.--The funds made available under this 
        subsection shall be apportioned not later than 30 days after 
        the date of the enactment of this Act.
            (6) Redistribution.--
                    (A) The Secretary shall, 180 days after the date of 
                apportionment, withdraw from each urbanized area an 
                amount equal to 50 percent of the funds apportioned to 
                such urbanized area less the amount of funding 
                obligated, and the Secretary shall redistribute such 
                amounts to other urbanized areas that have had no funds 
                withdrawn under this paragraph utilizing whatever 
                method the Secretary considers appropriate to ensure 
                that all funds redistributed under this paragraph shall 
                be utilized promptly.
                    (B) One year after the date of the apportionment, 
                the Secretary shall withdraw from each urbanized area 
                any unobligated funds, and the Secretary shall 
                redistribute such amounts to other urbanized areas that 
                have had no funds withdrawn under this paragraph, 
                utilizing whatever method the Secretary considers 
                appropriate to ensure that all funds redistributed 
                under this paragraph shall be utilized promptly.
                    (C) At the request of an urbanized area, the 
                Secretary may provide an extension of the 1-year period 
                if the Secretary finds that the urbanized area has 
                encountered an unworkable bidding environment or other 
                extenuating circumstances. Before granting an 
                extension, the Secretary shall notify the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives and the Committee on Banking, Housing, 
                and Urban Affairs of the Senate, providing a thorough 
                justification for the extension.
            (7) Conditions.--
                    (A) The provisions of section 1101(b) of Public Law 
                109-59 shall apply to funds made available under this 
                subsection.
                    (B) The funds appropriated under this subsection 
                shall not be commingled with any prior year funds.
            (8) Oversight.--Notwithstanding any other provision of law, 
        0.3 percent of the funds under this subsection shall be 
        available for administrative expenses and program management 
        oversight and shall remain available for obligation until 
        September 30, 2016.
    (h) Transportation Infrastructure Grants and Financing.--
            (1) In general.--There is made available to the Secretary 
        of Transportation $5,000,000,000 for capital investments in 
        surface transportation infrastructure. The Secretary shall 
        distribute funds provided under this subsection as 
        discretionary grants to be awarded to State and local 
        governments or transit agencies on a competitive basis for 
        projects that will have a significant impact on the Nation, a 
        metropolitan area, or a region.
            (2) Federal share; limitation on obligations.--The Federal 
        share payable of the costs for which a grant that is made under 
        this subsection, shall be 100 percent.
            (3) Availability.--The amounts made available under this 
        subsection shall be available for obligation until the date 
        that is 2 years after the date of the enactment of this Act. 
        The Secretary shall obligate amounts totaling not less than 50 
        percent of the funds made available not later than 1 year after 
        the date of enactment and obligate remaining amounts not later 
        than 2 years after such enactment.
            (4) Project eligibility.--Projects eligible for funding 
        provided under this subsection include--
                    (A) 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;
                    (B) 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;
                    (C) passenger and freight rail transportation 
                projects; and
                    (D) port infrastructure investments, including 
                projects that connect ports to other modes of 
                transportation and improve the efficiency of freight 
                movement.
            (5) TIFIA program.--The Secretary may transfer to the 
        Federal Highway Administration funds made available under this 
        subsection for the purpose of paying the subsidy and 
        administrative costs of projects eligible for Federal credit 
        assistance under chapter 6 of title 23, United States Code, if 
        the Secretary finds that such use of the funds would advance 
        the purposes of this subsection.
            (6) Project priority.--The Secretary shall give priority to 
        projects that are expected to be completed within 3 years of 
        the date of the enactment of this Act.
            (7) Deadline for issuance of competition criteria.--The 
        Secretary shall publish criteria on which to base the 
        competition for any grants awarded under this subsection not 
        later than 90 days after the date of enactment of this Act. The 
        Secretary shall require applications for funding provided under 
        this subsection to be submitted not later than 180 days after 
        the publication of the criteria, and announce all projects 
        selected to be funded from such funds not later than 1 year 
        after the date of the enactment of the Act.
            (8) Applicability of title 40.--Each project conducted 
        using funds provided under this subsection shall comply with 
        the requirements of subchapter IV of chapter 31 of title 40, 
        United States Code.
            (9) Administrative expenses.--The Secretary may retain up 
        to one half of one percent of the funds provided under this 
        subsection, and may transfer portions of those funds to the 
        Administrators of the Federal Highway Administration, the 
        Federal Transit Administration, the Federal Railroad 
        Administration and the Maritime Administration, to fund the 
        award and oversight of grants made under this subsection. Funds 
        retained shall remain available for obligation until September 
        30, 2017.
    (i) Local Hiring.--
            (1) In general.--In the case of the funding made available 
        under subsections (a) through (h) of this section, the 
        Secretary of Transportation may establish standards under which 
        a contract for construction may be advertised that contains 
        requirements for the employment of individuals residing in or 
        adjacent to any of the areas in which the work is to be 
        performed to perform construction work required under the 
        contract, provided that--
                    (A) all or part of the construction work performed 
                under the contract occurs in an area designated by the 
                Secretary as an area of high unemployment, using data 
                reported by the United States Department of Labor, 
                Bureau of Labor Statistics;
                    (B) the estimated cost of the project of which the 
                contract is a part is greater than $10 million, except 
                that the estimated cost of the project in the case of 
                construction funded under subsection (c) shall be 
                greater than $50 million; and
                    (C) the recipient may not require the hiring of 
                individuals who do not have the necessary skills to 
                perform work in any craft or trade; provided that the 
                recipient may require the hiring of such individuals if 
                the recipient establishes reasonable provisions to 
                train such individuals to perform any such work under 
                the contract effectively.
            (2) Project standards.--Any standards established by the 
        Secretary under this section shall ensure that any requirements 
        specified under subsection (c)(1)--
                    (A) do not compromise the quality of the project;
                    (B) are reasonable in scope and application;
                    (C) do not unreasonably delay the completion of the 
                project; and
                    (D) do not unreasonably increase the cost of the 
                project.
                    (E) Available programs.--The Secretary shall assist 
                recipients who wish to establish training programs that 
                satisfy the provisions of subsection (c)(11) by making 
                available its qualifying workforce and training 
                development programs.
            (3) Implementing regulations.--The Secretary shall 
        promulgate final regulations to implement the authority of this 
        subsection.
    (j) Administrative Provisions.--
            (1) Applicability of title 40.--Each project conducted 
        using funds provided under this subtitle shall comply with the 
        requirements of subchapter IV of chapter 31 of title 40, United 
        States Code.
            (2) Buy american.--Section 1605 of division A of the 
        American Recovery and Reinvestment Act of 2009 (Public Law 111-
        5) applies to each project conducted using funds provided under 
        this subtitle.

    Subtitle E--Building and Upgrading Infrastructure for Long-Term 
                              Development

SEC. 242. SHORT TITLE.

    This subtitle may be cited as the ``Building and Upgrading 
Infrastructure for Long-Term Development Act''.

SEC. 243. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) infrastructure has always been a vital element of the 
        economic strength of the United States and a key indicator of 
        the international leadership of the United States;
            (2) the Erie Canal, the Hoover Dam, the railroads, and the 
        interstate highway system are all testaments to American 
        ingenuity and have helped propel and maintain the United States 
        as the world's largest economy;
            (3) according to the World Economic Forum's Global 
        Competitiveness Report, the United States fell to second place 
        in 2009, and dropped to fourth place overall in 2010, however, 
        in the ``Quality of overall infrastructure'' category of the 
        same report, the United States ranked twenty-third in the 
        world;
            (4) according to the World Bank's 2010 Logistic Performance 
        Index, the capacity of countries to efficiently move goods and 
        connect manufacturers and consumers with international markets 
        is improving around the world, and the United States now ranks 
        seventh in the world in logistics-related infrastructure behind 
        countries from both Europe and Asia;
            (5) according to a January 2009 report from the University 
        of Massachusetts/Alliance for American Manufacturing entitled 
        ``Employment, Productivity and Growth,'' infrastructure 
        investment is a ``highly effective engine of job creation'';
            (6) according to the American Society of Civil Engineers, 
        the current condition of the infrastructure in the United 
        States earns a grade point average of D, and an estimated 
        $2,200,000,000,000 investment is needed over the next 5 years 
        to bring American infrastructure up to adequate condition;
            (7) according to the National Surface Transportation Policy 
        and Revenue Study Commission, $225,000,000,000 is needed 
        annually from all sources for the next 50 years to upgrade the 
        United States surface transportation system to a state of good 
        repair and create a more advanced system;
            (8) the current infrastructure financing mechanisms of the 
        United States, both on the Federal and State level, will fail 
        to meet current and foreseeable demands and will create large 
        funding gaps;
            (9) published reports state that there may not be enough 
        demand for municipal bonds to maintain the same level of 
        borrowing at the same rates, resulting in significantly 
        decreased infrastructure investment at the State and local 
        level;
            (10) current funding mechanisms are not readily scalable 
        and do not--
                    (A) serve large in-State or cross jurisdiction 
                infrastructure projects, projects of regional or 
                national significance, or projects that cross sector 
                silos;
                    (B) sufficiently catalyze private sector 
                investment; or
                    (C) ensure the optimal return on public resources;
            (11) although grant programs of the United States 
        Government must continue to play a central role in financing 
        the transportation, environment, and energy infrastructure 
        needs of the United States, current and foreseeable demands on 
        existing Federal, State, and local funding for infrastructure 
        expansion clearly exceed the resources to support these 
        programs by margins wide enough to prompt serious concerns 
        about the United States ability to sustain long-term economic 
        development, productivity, and international competitiveness;
            (12) the capital markets, including pension funds, private 
        equity funds, mutual funds, sovereign wealth funds, and other 
        investors, have a growing interest in infrastructure investment 
        and represent hundreds of billions of dollars of potential 
        investment; and
            (13) the establishment of a United States Government-owned, 
        independent, professionally managed institution that could 
        provide credit support to qualified infrastructure projects of 
        regional and national significance, making transparent merit-
        based investment decisions based on the commercial viability of 
        infrastructure projects, would catalyze the participation of 
        significant private investment capital.
    (b) Purpose.--The purpose of this Act is to facilitate investment 
in, and long-term financing of, economically viable infrastructure 
projects of regional or national significance in a manner that both 
complements existing Federal, State, local, and private funding sources 
for these projects and introduces a merit-based system for financing 
such projects, in order to mobilize significant private sector 
investment, create jobs, and ensure United States competitiveness 
through an institution that limits the need for ongoing Federal 
funding.

SEC. 244. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) AIFA.--The term ``AIFA'' means the American 
        Infrastructure Financing Authority established under this Act.
            (2) Blind trust.--The term ``blind trust'' means a trust in 
        which the beneficiary has no knowledge of the specific holdings 
        and no rights over how those holdings are managed by the 
        fiduciary of the trust prior to the dissolution of the trust.
            (3) Board of directors.--The term ``Board of Directors'' 
        means Board of Directors of AIFA.
            (4) Chairperson.--The term ``Chairperson'' means the 
        Chairperson of the Board of Directors of AIFA.
            (5) Chief executive officer.--The term ``chief executive 
        officer'' means the chief executive officer of AIFA, appointed 
        under section 247.
            (6) Cost.--The term ``cost'' has the same meaning as in 
        section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 
        661a).
            (7) Direct loan.--The term ``direct loan'' has the same 
        meaning as in section 502 of the Federal Credit Reform Act of 
        1990 (2 U.S.C. 661a).
            (8) Eligible entity.--The term ``eligible entity'' means an 
        individual, corporation, partnership (including a public-
        private partnership), joint venture, trust, State, or other 
        non-Federal governmental entity, including a political 
        subdivision or any other instrumentality of a State, or a 
        revolving fund.
            (9) Infrastructure project.--
                    (A) In general.--The term ``eligible infrastructure 
                project'' means any non-Federal transportation, water, 
                or energy infrastructure project, or an aggregation of 
                such infrastructure projects, as provided in this Act.
                    (B) Transportation infrastructure project.--The 
                term ``transportation infrastructure project'' means 
                the construction, alteration, or repair, including the 
                facilitation of intermodal transit, of the following 
                subsectors:
                            (i) Highway or road.
                            (ii) Bridge.
                            (iii) Mass transit.
                            (iv) Inland waterways.
                            (v) Commercial ports.
                            (vi) Airports.
                            (vii) Air traffic control systems.
                            (viii) Passenger rail, including high-speed 
                        rail.
                            (ix) Freight rail systems.
                    (C) Water infrastructure project.--The term ``water 
                infrastructure project'' means the construction, 
                consolidation, alteration, or repair of the following 
                subsectors:
                            (i) Waterwaste treatment facility.
                            (ii) Storm water management system.
                            (iii) Dam.
                            (iv) Solid waste disposal facility.
                            (v) Drinking water treatment facility.
                            (vi) Levee.
                            (vii) Open space management system.
                    (D) Energy infrastructure project.--The term 
                ``energy infrastructure project'' means the 
                construction, alteration, or repair of the following 
                subsectors:
                            (i) Pollution reduced energy generation.
                            (ii) Transmission and distribution.
                            (iii) Storage.
                            (iv) Energy efficiency enhancements for 
                        buildings, including public and commercial 
                        buildings.
                    (E) Board authority to modify subsectors.--The 
                Board of Directors may make modifications, at the 
                discretion of the Board, to the subsectors described in 
                this paragraph by a vote of not fewer than 5 of the 
                voting members of the Board of Directors.
            (10) Investment prospectus.--
                    (A) The term ``investment prospectus'' means the 
                processes and publications described below that will 
                guide the priorities and strategic focus for AIFA's 
                investments. The investment prospectus shall follow 
                rulemaking procedures under section 553 of title 5, 
                United States Code.
                    (B) AIFA shall publish a detailed description of 
                its strategy in an investment prospectus within one 
                year of the enactment of this subchapter. The 
                investment prospectus shall--
                            (i) specify what AIFA shall consider 
                        significant to the economic competitiveness of 
                        the United States or a region thereof in a 
                        manner consistent with the primary objective;
                            (ii) specify the priorities and strategic 
                        focus of AIFA in forwarding its strategic 
                        objectives and carrying out AIFA strategy;
                            (iii) specify the priorities and strategic 
                        focus of AIFA in promoting greater efficiency 
                        in the movement of freight;
                            (iv) specify the priorities and strategic 
                        focus of AIFA in promoting the use of 
                        innovation and best practices in the planning, 
                        design, development and delivery of projects;
                            (v) describe in detail the framework and 
                        methodology for calculating application 
                        qualification scores and associated ranges as 
                        specified in this subchapter, along with the 
                        data to be requested from applicants and the 
                        mechanics of calculations to be applied to that 
                        data to determine qualification scores and 
                        ranges;
                            (vi) describe how selection criteria will 
                        be applied by the Chief Executive Officer in 
                        determining the competitiveness of an 
                        application and its qualification score and 
                        range relative to other current applications 
                        and previously funded applications; and
                            (vii) describe how the qualification score 
                        and range methodology and project selection 
                        framework are consistent with maximizing AIFA 
                        goals in both urban and rural areas.
                    (C) The investment prospectus and any subsequent 
                updates thereto shall be approved by a majority vote of 
                the Board of Directors prior to publication.
                    (D) AIFA shall update the investment prospectus on 
                every biennial anniversary of its original publication.
            (11) Investment-grade rating.--The term ``investment-grade 
        rating'' means a rating of BBB minus, Baa3, or higher assigned 
        to an infrastructure project by a ratings agency.
            (12) Loan guarantee.--The term ``loan guarantee'' has the 
        same meaning as in section 502 of the Federal Credit Reform Act 
        of 1990 (2 U.S.C. 661a).
            (13) Public-private partnership.--The term ``public-private 
        partnership'' means any eligible entity--
                    (A)(i) which is undertaking the development of all 
                or part of an infrastructure project that will have a 
                public benefit, pursuant to requirements established in 
                one or more contracts between the entity and a State or 
                an instrumentality of a State; or
                    (ii) the activities of which, with respect to such 
                an infrastructure project, are subject to regulation by 
                a State or any instrumentality of a State;
                    (B) which owns, leases, or operates or will own, 
                lease, or operate, the project in whole or in part; and
                    (C) the participants in which include not fewer 
                than 1 nongovernmental entity with significant 
                investment and some control over the project or project 
                vehicle.
            (14) Rural infrastructure project.--The term ``rural 
        infrastructure project'' means an infrastructure project in a 
        rural area, as that term is defined in section 343(a)(13)(A) of 
        the Consolidated Farm and Rural Development Act (7 U.S.C. 
        1991(a)(13)(A)).
            (15) Secretary.--Unless the context otherwise requires, the 
        term ``Secretary'' means the Secretary of the Treasury or the 
        designee thereof.
            (16) Senior management.--The term ``senior management'' 
        means the chief financial officer, chief risk officer, chief 
        compliance officer, general counsel, chief lending officer, and 
        chief operations officer of AIFA established under section 249, 
        and such other officers as the Board of Directors may, by 
        majority vote, add to senior management.
            (17) State.--The term ``State'' includes the District of 
        Columbia, Puerto Rico, Guam, American Samoa, the Virgin 
        Islands, the Commonwealth of the Northern Mariana Islands, and 
        any other territory of the United States.

          PART I--AMERICAN INFRASTRUCTURE FINANCING AUTHORITY

SEC. 245. ESTABLISHMENT AND GENERAL AUTHORITY OF AIFA.

    (a) Establishment of AIFA.--The American Infrastructure Financing 
Authority is established as a wholly owned Government corporation.
    (b) General Authority of AIFA.--AIFA shall provide direct loans and 
loan guarantees to facilitate infrastructure projects that are both 
economically viable and of regional or national significance, and shall 
have such other authority, as provided in this Act.
    (c) Incorporation.--
            (1) In general.--The Board of Directors first appointed 
        shall be deemed the incorporator of AIFA, and the incorporation 
        shall be held to have been effected from the date of the first 
        meeting of the Board of Directors.
            (2) Corporate office.--AIFA shall--
                    (A) maintain an office in Washington, DC; and
                    (B) for purposes of venue in civil actions, be 
                considered to be a resident of Washington, DC.
    (d) Responsibility of the Secretary.--The Secretary shall take such 
action as may be necessary to assist in implementing AIFA, and in 
carrying out the purpose of this Act.
    (e) Rule of Construction.--Chapter 91 of title 31, United States 
Code, does not apply to AIFA, unless otherwise specifically provided in 
this Act.

SEC. 246. VOTING MEMBERS OF THE BOARD OF DIRECTORS.

    (a) Voting Membership of the Board of Directors.--
            (1) In general.--AIFA shall have a Board of Directors 
        consisting of 7 voting members appointed by the President, by 
        and with the advice and consent of the Senate, not more than 4 
        of whom shall be from the same political party.
            (2) Chairperson.--One of the voting members of the Board of 
        Directors shall be designated by the President to serve as 
        Chairperson thereof.
            (3) Congressional recommendations.--Not later than 30 days 
        after the date of enactment of this Act, the majority leader of 
        the Senate, the minority leader of the Senate, the Speaker of 
        the House of Representatives, and the minority leader of the 
        House of Representatives shall each submit a recommendation to 
        the President for appointment of a member of the Board of 
        Directors, after consultation with the appropriate committees 
        of Congress.
    (b) Voting Rights.--Each voting member of the Board of Directors 
shall have an equal vote in all decisions of the Board of Directors.
    (c) Qualifications of Voting Members.--Each voting member of the 
Board of Directors shall--
            (1) be a citizen of the United States; and
            (2) have significant demonstrated expertise in--
                    (A) the management and administration of a 
                financial institution relevant to the operation of 
                AIFA; or a public financial agency or authority;
                    (B) the financing, development, or operation of 
                infrastructure projects; or
                    (C) analyzing the economic benefits of 
                infrastructure investment.
    (d) Terms.--
            (1) In general.--Except as otherwise provided in this Act, 
        each voting member of the Board of Directors shall be appointed 
        for a term of 4 years.
            (2) Initial staggered terms.--Of the voting members first 
        appointed to the Board of Directors--
                    (A) the initial Chairperson and 3 of the other 
                voting members shall each be appointed for a term of 4 
                years; and
                    (B) the remaining 3 voting members shall each be 
                appointed for a term of 2 years.
            (3) Date of initial nominations.--The initial nominations 
        for the appointment of all voting members of the Board of 
        Directors shall be made not later than 60 days after the date 
        of enactment of this Act.
            (4) Beginning of term.--The term of each of the initial 
        voting members appointed under this section shall commence 
        immediately upon the date of appointment, except that, for 
        purposes of calculating the term limits specified in this 
        subsection, the initial terms shall each be construed as 
        beginning on January 22 of the year following the date of the 
        initial appointment.
            (5) Vacancies.--A vacancy in the position of a voting 
        member of the Board of Directors shall be filled by the 
        President, and a member appointed to fill a vacancy on the 
        Board of Directors occurring before the expiration of the term 
        for which the predecessor was appointed shall be appointed only 
        for the remainder of that term.
    (e) Meetings.--
            (1) Open to the public; notice.--Except as provided in 
        paragraph (3), all meetings of the Board of Directors shall 
        be--
                    (A) open to the public; and
                    (B) preceded by reasonable public notice.
            (2) Frequency.--The Board of Directors shall meet not later 
        than 60 days after the date on which all members of the Board 
        of Directors are first appointed, at least quarterly 
        thereafter, and otherwise at the call of either the Chairperson 
        or 5 voting members of the Board of Directors.
            (3) Exception for closed meetings.--The voting members of 
        the Board of Directors may, by majority vote, close a meeting 
        to the public if, during the meeting to be closed, there is 
        likely to be disclosed proprietary or sensitive information 
        regarding an infrastructure project under consideration for 
        assistance under this Act. The Board of Directors shall prepare 
        minutes of any meeting that is closed to the public, and shall 
        make such minutes available as soon as practicable, not later 
        than 1 year after the date of the closed meeting, with any 
        necessary redactions to protect any proprietary or sensitive 
        information.
            (4) Quorum.--For purposes of meetings of the Board of 
        Directors, 5 voting members of the Board of Directors shall 
        constitute a quorum.
    (f) Compensation of Members.--Each voting member of the Board of 
Directors shall be compensated at a rate equal to the daily equivalent 
of the annual rate of basic pay prescribed for level III of the 
Executive Schedule under section 5314 of title 5, United States Code, 
for each day (including travel time) during which the member is engaged 
in the performance of the duties of the Board of Directors.
    (g) Conflicts of Interest.--A voting member of the Board of 
Directors may not participate in any review or decision affecting an 
infrastructure project under consideration for assistance under this 
Act, if the member has or is affiliated with an entity who has a 
financial interest in such project.

SEC. 247. CHIEF EXECUTIVE OFFICER OF AIFA.

    (a) In General.--The chief executive officer of AIFA shall be a 
nonvoting member of the Board of Directors, who shall be responsible 
for all activities of AIFA, and shall support the Board of Directors as 
set forth in this Act and as the Board of Directors deems necessary or 
appropriate.
    (b) Appointment and Tenure of the Chief Executive Officer.--
            (1) In general.--The President shall appoint the chief 
        executive officer, by and with the advice and consent of the 
        Senate.
            (2) Term.--The chief executive officer shall be appointed 
        for a term of 6 years.
            (3) Vacancies.--Any vacancy in the office of the chief 
        executive officer shall be filled by the President, and the 
        person appointed to fill a vacancy in that position occurring 
        before the expiration of the term for which the predecessor was 
        appointed shall be appointed only for the remainder of that 
        term.
    (c) Qualifications.--The chief executive officer--
            (1) shall have significant expertise in management and 
        administration of a financial institution, or significant 
        expertise in the financing and development of infrastructure 
        projects, or significant expertise in analyzing the economic 
        benefits of infrastructure investment; and
            (2) may not--
                    (A) hold any other public office;
                    (B) have any financial interest in an 
                infrastructure project then being considered by the 
                Board of Directors, unless that interest is placed in a 
                blind trust; or
                    (C) have any financial interest in an investment 
                institution or its affiliates or any other entity 
                seeking or likely to seek financial assistance for any 
                infrastructure project from AIFA, unless any such 
                interest is placed in a blind trust for the tenure of 
                the service of the chief executive officer plus 2 
                additional years.
    (d) Responsibilities.--The chief executive officer shall have such 
executive functions, powers, and duties as may be prescribed by this 
Act, the bylaws of AIFA, or the Board of Directors, including--
            (1) responsibility for the development and implementation 
        of the strategy of AIFA, including--
                    (A) the development and submission to the Board of 
                Directors of the investment prospectus, the annual 
                business plans and budget;
                    (B) the development and submission to the Board of 
                Directors of a long-term strategic plan; and
                    (C) the development, revision, and submission to 
                the Board of Directors of internal policies; and
            (2) responsibility for the management and oversight of the 
        daily activities, decisions, operations, and personnel of AIFA, 
        including--
                    (A) the appointment of senior management, subject 
                to approval by the voting members of the Board of 
                Directors, and the hiring and termination of all other 
                AIFA personnel;
                    (B) requesting the detail, on a reimbursable basis, 
                of personnel from any Federal agency having specific 
                expertise not available from within AIFA, following 
                which request the head of the Federal agency may 
                detail, on a reimbursable basis, any personnel of such 
                agency reasonably requested by the chief executive 
                officer;
                    (C) assessing and recommending in the first 
                instance, for ultimate approval or disapproval by the 
                Board of Directors, compensation and adjustments to 
                compensation of senior management and other personnel 
                of AIFA as may be necessary for carrying out the 
                functions of AIFA;
                    (D) ensuring, in conjunction with the general 
                counsel of AIFA, that all activities of AIFA are 
                carried out in compliance with applicable law;
                    (E) overseeing the involvement of AIFA in all 
                projects, including--
                            (i) developing eligible projects for AIFA 
                        financial assistance;
                            (ii) determining the terms and conditions 
                        of all financial assistance packages;
                            (iii) monitoring all infrastructure 
                        projects assisted by AIFA, including 
                        responsibility for ensuring that the proceeds 
                        of any loan made, guaranteed, or participated 
                        in are used only for the purposes for which the 
                        loan or guarantee was made;
                            (iv) preparing and submitting for approval 
                        by the Board of Directors the documents 
                        required under paragraph (1); and
                            (v) ensuring the implementation of 
                        decisions of the Board of Directors; and
                    (F) such other activities as may be necessary or 
                appropriate in carrying out this Act.
    (e) Compensation.--
            (1) In general.--Any compensation assessment or 
        recommendation by the chief executive officer under this 
        section shall be without regard to the provisions of chapter 51 
        or subchapter III of chapter 53 of title 5, United States Code.
            (2) Considerations.--The compensation assessment or 
        recommendation required under this subsection shall take into 
        account merit principles, where applicable, as well as the 
        education, experience, level of responsibility, geographic 
        differences, and retention and recruitment needs in determining 
        compensation of personnel.

SEC. 248. POWERS AND DUTIES OF THE BOARD OF DIRECTORS.

    The Board of Directors shall--
            (1) as soon as is practicable after the date on which all 
        members are appointed, approve or disapprove senior management 
        appointed by the chief executive officer;
            (2) not later than 180 days after the date on which all 
        members are appointed--
                    (A) develop and approve the bylaws of AIFA, 
                including bylaws for the regulation of the affairs and 
                conduct of the business of AIFA, consistent with the 
                purpose, goals, objectives, and policies set forth in 
                this Act;
                    (B) establish subcommittees, including an audit 
                committee that is composed solely of members of the 
                Board of Directors who are independent of the senior 
                management of AIFA;
                    (C) develop and approve, in consultation with 
                senior management, a conflict-of-interest policy for 
                the Board of Directors and for senior management;
                    (D) approve or disapprove internal policies that 
                the chief executive officer shall submit to the Board 
                of Directors, including--
                            (i) policies regarding the loan application 
                        and approval process, including--
                                    (I) disclosure and application 
                                procedures to be followed by entities 
                                in the course of nominating 
                                infrastructure projects for assistance 
                                under this Act;
                                    (II) guidelines for the selection 
                                and approval of projects;
                                    (III) specific criteria for 
                                determining eligibility for project 
                                selection, consistent with title II; 
                                and
                                    (IV) standardized terms and 
                                conditions, fee schedules, or legal 
                                requirements of a contract or program, 
                                so as to carry out this Act; and
                            (ii) operational guidelines; and
                    (E) approve or disapprove a multi-year or 1-year 
                business plan and budget for AIFA;
            (3) ensure that AIFA is at all times operated in a manner 
        that is consistent with this Act, by--
                    (A) monitoring and assessing the effectiveness of 
                AIFA in achieving its strategic goals;
                    (B) periodically reviewing internal policies;
                    (C) reviewing and approving annual business plans, 
                annual budgets, and long-term strategies submitted by 
                the chief executive officer;
                    (D) reviewing and approving annual reports 
                submitted by the chief executive officer;
                    (E) engaging one or more external auditors, as set 
                forth in this Act; and
                    (F) reviewing and approving all changes to the 
                organization of senior management;
            (4) appoint and fix, by a vote of 5 of the 7 voting members 
        of the Board of Directors, and without regard to the provisions 
        of chapter 51 or subchapter III of chapter 53 of title 5, 
        United States Code, the compensation and adjustments to 
        compensation of all AIFA personnel, and where, in appointing 
        and fixing any compensation or adjustments to compensation 
        under this paragraph, the Board shall--
                    (A) consult with, and seek to maintain 
                comparability with, other comparable Federal personnel;
                    (B) consult with the Office of Personnel 
                Management; and
                    (C) carry out such duties consistent with merit 
                principles, where applicable, as well as the education, 
                experience, level of responsibility, geographic 
                differences, and retention and recruitment needs in 
                determining compensation of personnel;
            (5) establish such other criteria, requirements, or 
        procedures as the Board of Directors may consider to be 
        appropriate in carrying out this Act;
            (6) serve as the primary liaison for AIFA in interactions 
        with Congress, the executive branch, and State and local 
        governments, and to represent the interests of AIFA in such 
        interactions and others;
            (7) approve by a vote of 5 of the 7 voting members of the 
        Board of Directors any changes to the bylaws or internal 
        policies of AIFA;
            (8) have the authority and responsibility--
                    (A) to oversee entering into and carry out such 
                contracts, leases, cooperative agreements, or other 
                transactions as are necessary to carry out this Act 
                with--
                            (i) any Federal department or agency;
                            (ii) any State, territory, or possession 
                        (or any political subdivision thereof, 
                        including State infrastructure banks) of the 
                        United States; and
                            (iii) any individual, public-private 
                        partnership, firm, association, or corporation;
                    (B) to approve of the acquisition, lease, pledge, 
                exchange, and disposal of real and personal property by 
                AIFA and otherwise approve the exercise by AIFA of all 
                of the usual incidents of ownership of property, to the 
                extent that the exercise of such powers is appropriate 
                to and consistent with the purposes of AIFA;
                    (C) to determine the character of, and the 
                necessity for, the obligations and expenditures of 
                AIFA, and the manner in which the obligations and 
                expenditures will be incurred, allowed, and paid, 
                subject to this Act and other Federal law specifically 
                applicable to wholly owned Federal corporations;
                    (D) to execute, in accordance with applicable 
                bylaws and regulations, appropriate instruments;
                    (E) to approve other forms of credit enhancement 
                that AIFA may provide to eligible projects, as long as 
                the forms of credit enhancements are consistent with 
                the purposes of this Act and terms set forth in title 
                II;
                    (F) to exercise all other lawful powers which are 
                necessary or appropriate to carry out, and are 
                consistent with, the purposes of AIFA;
                    (G) to sue or be sued in the corporate capacity of 
                AIFA in any court of competent jurisdiction;
                    (H) to indemnify the members of the Board of 
                Directors and officers of AIFA for any liabilities 
                arising out of the actions of the members and officers 
                in such capacity, in accordance with, and subject to 
                the limitations contained in this Act;
                    (I) to review all financial assistance packages to 
                all eligible infrastructure projects, as submitted by 
                the chief executive officer and to approve, postpone, 
                or deny the same by majority vote;
                    (J) to review all restructuring proposals submitted 
                by the chief executive officer, including assignation, 
                pledging, or disposal of the interest of AIFA in a 
                project, including payment or income from any interest 
                owned or held by AIFA, and to approve, postpone, or 
                deny the same by majority vote; and
                    (K) to enter into binding commitments, as specified 
                in approved financial assistance packages;
            (9) delegate to the chief executive officer those duties 
        that the Board of Directors deems appropriate, to better carry 
        out the powers and purposes of the Board of Directors under 
        this section; and
            (10) to approve a maximum aggregate amount of outstanding 
        obligations of AIFA at any given time, taking into 
        consideration funding, and the size of AIFA's addressable 
        market for infrastructure projects.

SEC. 249. SENIOR MANAGEMENT.

    (a) In General.--Senior management shall support the chief 
executive officer in the discharge of the responsibilities of the chief 
executive officer.
    (b) Appointment of Senior Management.--The chief executive officer 
shall appoint such senior managers as are necessary to carry out the 
purpose of AIFA, as approved by a majority vote of the voting members 
of the Board of Directors.
    (c) Term.--Each member of senior management shall serve at the 
pleasure of the chief executive officer and the Board of Directors.
    (d) Removal of Senior Management.--Any member of senior management 
may be removed, either by a majority of the voting members of the Board 
of Directors upon request by the chief executive officer, or otherwise 
by vote of not fewer than 5 voting members of the Board of Directors.
    (e) Senior Management.--
            (1) In general.--Each member of senior management shall 
        report directly to the chief executive officer, other than the 
        Chief Risk Officer, who shall report directly to the Board of 
        Directors.
            (2) Duties and responsibilities.--
                    (A) Chief financial officer.--The Chief Financial 
                Officer shall be responsible for all financial 
                functions of AIFA. At the discretion of the Board of 
                Directors, specific functions of the Chief Financial 
                Officer may be delegated externally.
                    (B) Chief risk officer.--The Chief Risk Officer 
                shall be responsible for all functions of AIFA relating 
                to--
                            (i) the creation of financial, credit, and 
                        operational risk management guidelines and 
                        policies;
                            (ii) credit analysis for infrastructure 
                        projects;
                            (iii) the creation of conforming standards 
                        for infrastructure finance agreements;
                            (iv) the monitoring of the financial, 
                        credit, and operational exposure of AIFA; and
                            (v) risk management and mitigation actions, 
                        including by reporting such actions, or 
                        recommendations of such actions to be taken, 
                        directly to the Board of Directors.
                    (C) Chief compliance officer.--The Chief Compliance 
                Officer shall be responsible for all functions of AIFA 
                relating to internal audits, accounting safeguards, and 
                the enforcement of such safeguards and other applicable 
                requirements.
                    (D) General counsel.--The General Counsel shall be 
                responsible for all functions of AIFA relating to legal 
                matters and, in consultation with the chief executive 
                officer, shall be responsible for ensuring that AIFA 
                complies with all applicable law.
                    (E) Chief operations officer.--The Chief Operations 
                Officer shall be responsible for all operational 
                functions of AIFA, including those relating to the 
                continuing operations and performance of all 
                infrastructure projects in which AIFA retains an 
                interest and for all AIFA functions related to human 
                resources.
                    (F) Chief lending officer.--The Chief Lending 
                Officer shall be responsible for--
                            (i) all functions of AIFA relating to the 
                        development of project pipeline, financial 
                        structuring of projects, selection of 
                        infrastructure projects to be reviewed by the 
                        Board of Directors, preparation of 
                        infrastructure projects to be presented to the 
                        Board of Directors, and set aside for rural 
                        infrastructure projects;
                            (ii) the creation and management of--
                                    (I) a Center for Excellence to 
                                provide technical assistance to public 
                                sector borrowers in the development and 
                                financing of infrastructure projects; 
                                and
                                    (II) an Office of Rural Assistance 
                                to provide technical assistance in the 
                                development and financing of rural 
                                infrastructure projects; and
                            (iii) the establishment of guidelines to 
                        ensure diversification of lending activities by 
                        region, infrastructure project type, and 
                        project size.
    (f) Changes to Senior Management.--The Board of Directors, in 
consultation with the chief executive officer, may alter the structure 
of the senior management of AIFA at any time to better accomplish the 
goals, objectives, and purposes of AIFA, except that the functions of 
the Chief Financial Officer set forth in subsection (e) shall remain 
separate from the functions of the Chief Risk Officer set forth in 
subsection (e).
    (g) Conflicts of Interest.--No individual appointed to senior 
management may--
            (1) hold any other public office;
            (2) have any financial interest in an infrastructure 
        project then being considered by the Board of Directors, unless 
        that interest is placed in a blind trust; or
            (3) have any financial interest in an investment 
        institution or its affiliates, AIFA or its affiliates, or other 
        entity then seeking or likely to seek financial assistance for 
        any infrastructure project from AIFA, unless any such interest 
        is placed in a blind trust during the term of service of that 
        individual in a senior management position, and for a period of 
        2 years thereafter.

SEC. 250. SPECIAL INSPECTOR GENERAL FOR AIFA.

    (a) In General.--During the first 5 operating years of AIFA, the 
Office of the Inspector General of the Department of the Treasury shall 
have responsibility for AIFA.
    (b) Office of the Special Inspector General.--Effective 5 years 
after the date of enactment of the commencement of the operations of 
AIFA, there is established the Office of the Special Inspector General 
for AIFA.
    (c) Appointment of Inspector General; Removal.--
            (1) Head of office.--The head of the Office of the Special 
        Inspector General for AIFA shall be the Special Inspector 
        General for AIFA (in this Act referred to as the ``Special 
        Inspector General''), who shall be appointed by the President, 
        by and with the advice and consent of the Senate.
            (2) Basis of appointment.--The appointment of the Special 
        Inspector General shall be made on the basis of integrity and 
        demonstrated ability in accounting, auditing, financial 
        analysis, law, management analysis, public administration, or 
        investigations.
            (3) Timing of nomination.--The nomination of an individual 
        as Special Inspector General shall be made as soon as is 
        practicable after the effective date under subsection (b).
            (4) Removal.--The Special Inspector General shall be 
        removable from office in accordance with the provisions of 
        section 3(b) of the Inspector General Act of 1978 (5 U.S.C. 
        App.).
            (5) Rule of construction.--For purposes of section 7324 of 
        title 5, United States Code, the Special Inspector General 
        shall not be considered an employee who determines policies to 
        be pursued by the United States in the nationwide 
        administration of Federal law.
            (6) Rate of pay.--The annual rate of basic pay of the 
        Special Inspector General shall be the annual rate of basic pay 
        for an Inspector General under section 3(e) of the Inspector 
        General Act of 1978 (5 U.S.C. App.).
    (d) Duties.--
            (1) In general.--It shall be the duty of the Special 
        Inspector General to conduct, supervise, and coordinate audits 
        and investigations of the business activities of AIFA.
            (2) Other systems, procedures, and controls.--The Special 
        Inspector General shall establish, maintain, and oversee such 
        systems, procedures, and controls as the Special Inspector 
        General considers appropriate to discharge the duty under 
        paragraph (1).
            (3) Additional duties.--In addition to the duties specified 
        in paragraphs (1) and (2), the Inspector General shall also 
        have the duties and responsibilities of inspectors general 
        under the Inspector General Act of 1978.
    (e) Powers and Authorities.--
            (1) In general.--In carrying out the duties specified in 
        subsection (c), the Special Inspector General shall have the 
        authorities provided in section 6 of the Inspector General Act 
        of 1978.
            (2) Additional authority.--The Special Inspector General 
        shall carry out the duties specified in subsection (c)(1) in 
        accordance with section 4(b)(1) of the Inspector General Act of 
        1978.
    (f) Personnel, Facilities, and Other Resources.--
            (1) Additional officers.--
                    (A) The Special Inspector General may select, 
                appoint, and employ such officers and employees as may 
                be necessary for carrying out the duties of the Special 
                Inspector General, subject to the provisions of title 
                5, United States Code, governing appointments in the 
                competitive service, and the provisions of chapter 51 
                and subchapter III of chapter 53 of such title, 
                relating to classification and General Schedule pay 
                rates.
                    (B) The Special Inspector General may exercise the 
                authorities of subsections (b) through (i) of section 
                3161 of title 5, United States Code (without regard to 
                subsection (a) of that section).
            (2) Retention of services.--The Special Inspector General 
        may obtain services as authorized by section 3109 of title 5, 
        United States Code, at daily rates not to exceed the equivalent 
        rate prescribed for grade GS-15 of the General Schedule by 
        section 5332 of such title.
            (3) Ability to contract for audits, studies, and other 
        services.--The Special Inspector General may enter into 
        contracts and other arrangements for audits, studies, analyses, 
        and other services with public agencies and with private 
        persons, and make such payments as may be necessary to carry 
        out the duties of the Special Inspector General.
            (4) Request for information.--
                    (A) In general.--Upon request of the Special 
                Inspector General for information or assistance from 
                any department, agency, or other entity of the Federal 
                Government, the head of such entity shall, insofar as 
                is practicable and not in contravention of any existing 
                law, furnish such information or assistance to the 
                Special Inspector General, or an authorized designee.
                    (B) Refusal to comply.--Whenever information or 
                assistance requested by the Special Inspector General 
                is, in the judgment of the Special Inspector General, 
                unreasonably refused or not provided, the Special 
                Inspector General shall report the circumstances to the 
                Secretary of the Treasury, without delay.
    (g) Reports.--
            (1) Annual report.--Not later than 1 year after the 
        confirmation of the Special Inspector General, and every 
        calendar year thereafter, the Special Inspector General shall 
        submit to the President a report summarizing the activities of 
        the Special Inspector General during the previous 1-year period 
        ending on the date of such report.
            (2) Public disclosures.--Nothing in this subsection shall 
        be construed to authorize the public disclosure of information 
        that is--
                    (A) specifically prohibited from disclosure by any 
                other provision of law;
                    (B) specifically required by Executive order to be 
                protected from disclosure in the interest of national 
                defense or national security or in the conduct of 
                foreign affairs; or
                    (C) a part of an ongoing criminal investigation.

SEC. 251. OTHER PERSONNEL.

    Except as otherwise provided in the bylaws of AIFA, the chief 
executive officer, in consultation with the Board of Directors, shall 
appoint, remove, and define the duties of such qualified personnel as 
are necessary to carry out the powers, duties, and purpose of AIFA, 
other than senior management, who shall be appointed in accordance with 
section 249.

SEC. 252. COMPLIANCE.

    The provision of assistance by the Board of Directors pursuant to 
this Act shall not be construed as superseding any provision of State 
law or regulation otherwise applicable to an infrastructure project.

   PART II--TERMS AND LIMITATIONS ON DIRECT LOANS AND LOAN GUARANTEES

SEC. 253. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM AIFA AND TERMS AND 
              LIMITATIONS OF LOANS.

    (a) In General.--Any project whose use or purpose is private and 
for which no public benefit is created shall not be eligible for 
financial assistance from AIFA under this Act. Financial assistance 
under this Act shall only be made available if the applicant for such 
assistance has demonstrated to the satisfaction of the Board of 
Directors that the infrastructure project for which such assistance is 
being sought--
            (1) is not for the refinancing of an existing 
        infrastructure project; and
            (2) meets--
                    (A) any pertinent requirements set forth in this 
                Act;
                    (B) any criteria established by the Board of 
                Directors or chief executive officer in accordance with 
                this Act; and
                    (C) the definition of a transportation 
                infrastructure project, water infrastructure project, 
                or energy infrastructure project.
    (b) Considerations.--The criteria established by the Board of 
Directors pursuant to this Act shall provide adequate consideration 
of--
            (1) the economic, financial, technical, environmental, and 
        public benefits and costs of each infrastructure project under 
        consideration for financial assistance under this Act, 
        prioritizing infrastructure projects that--
                    (A) contribute to regional or national economic 
                growth;
                    (B) offer value for money to the Government;
                    (C) demonstrate a clear and significant public 
                benefit;
                    (D) lead to job creation; and
                    (E) mitigate environmental concerns;
            (2) the means by which development of the infrastructure 
        project under consideration is being financed, including--
                    (A) the terms, conditions, and structure of the 
                proposed financing;
                    (B) the credit worthiness and standing of the 
                project sponsors, providers of equity, and 
                cofinanciers;
                    (C) the financial assumptions and projections on 
                which the infrastructure project is based; and
                    (D) whether there is sufficient State or municipal 
                political support for the successful completion of the 
                infrastructure project;
            (3) the likelihood that the provision of assistance by AIFA 
        will cause such development to proceed more promptly and with 
        lower costs than would be the case without such assistance;
            (4) the extent to which the provision of assistance by AIFA 
        maximizes the level of private investment in the infrastructure 
        project or supports a public-private partnership, while 
        providing a significant public benefit;
            (5) the extent to which the provision of assistance by AIFA 
        can mobilize the participation of other financing partners in 
        the infrastructure project;
            (6) the technical and operational viability of the 
        infrastructure project;
            (7) the proportion of financial assistance from AIFA;
            (8) the geographic location of the project in an effort to 
        have geographic diversity of projects funded by AIFA;
            (9) the size of the project and its impact on the resources 
        of AIFA;
            (10) the infrastructure sector of the project, in an effort 
        to have projects from more than one sector funded by AIFA; and
            (11) encouraging the use of innovative procurement, asset 
        management, or financing to minimize the all-in-life-cycle 
        cost, and improve the cost-effectiveness of a project.
    (c) Application.--
            (1) In general.--Any eligible entity seeking assistance 
        from AIFA under this Act for an eligible infrastructure project 
        shall submit an application to AIFA at such time, in such 
        manner, and containing such information as the Board of 
        Directors or the chief executive officer may require.
            (2) Review of applications.--AIFA shall review applications 
        for assistance under this Act on an ongoing basis. The chief 
        executive officer, working with the senior management, shall 
        prepare eligible infrastructure projects for review and 
        approval by the Board of Directors.
            (3) Dedicated revenue sources.--The Federal credit 
        instrument shall be repayable, in whole or in part, from tolls, 
        user fees, or other dedicated revenue sources that also secure 
        the infrastructure project obligations.
    (d) Eligible Infrastructure Project Costs.--
            (1) In general.--Except as provided in paragraph (2), to be 
        eligible for assistance under this Act, an infrastructure 
        project shall have project costs that are reasonably 
        anticipated to equal or exceed $100,000,000.
            (2) Rural infrastructure projects.--To be eligible for 
        assistance under this Act a rural infrastructure project shall 
        have project costs that are reasonably anticipated to equal or 
        exceed $25,000,000.
    (e) Loan Eligibility and Maximum Amounts.--
            (1) In general.--The amount of a direct loan or loan 
        guarantee under this Act shall not exceed the lesser of 50 
        percent of the reasonably anticipated eligible infrastructure 
        project costs or, if the direct loan or loan guarantee does not 
        receive an investment grade rating, the amount of the senior 
        project obligations.
            (2) Maximum annual loan and loan guarantee volume.--The 
        aggregate amount of direct loans and loan guarantees made by 
        AIFA in any single fiscal year may not exceed--
                    (A) during the first 2 fiscal years of the 
                operations of AIFA, $10,000,000,000;
                    (B) during fiscal years 3 through 9 of the 
                operations of AIFA, $20,000,000,000; or
                    (C) during any fiscal year thereafter, 
                $50,000,000,000.
    (f) State and Local Permits Required.--The provision of assistance 
by the Board of Directors pursuant to this Act shall not be deemed to 
relieve any recipient of such assistance, or the related infrastructure 
project, of any obligation to obtain required State and local permits 
and approvals.
    (g) Employee Protections.--As a condition for the provision of 
financial assistance by the Board of Directors pursuant to this Act, 
the interests of employees affected by the financial assistance shall 
be protected under arrangements the Secretary of Labor concludes are 
fair and equitable in accordance with section 5333(b)(2) of title 49, 
United States Code.

SEC. 254. LOAN TERMS AND REPAYMENT.

    (a) In General.--A direct loan or loan guarantee under this Act 
with respect to an eligible infrastructure project shall be on such 
terms, subject to such conditions, and contain such covenants, 
representations, warranties, and requirements (including requirements 
for audits) as the chief executive officer determines appropriate.
    (b) Terms.--A direct loan or loan guarantee under this Act--
            (1) shall--
                    (A) be payable, in whole or in part, from tolls, 
                user fees, or other dedicated revenue sources that also 
                secure the senior project obligations (such as 
                availability payments and dedicated State or local 
                revenues); and
                    (B) include a rate covenant, coverage requirement, 
                or similar security feature supporting the project 
                obligations; and
            (2) may have a lien on revenues described in paragraph (1), 
        subject to any lien securing project obligations.
    (c) Base Interest Rate.--The base interest rate on a direct loan 
under this Act shall be not less than the yield on United States 
Treasury obligations of a similar maturity to the maturity of the 
direct loan.
    (d) Risk Assessment.--Before entering into an agreement for 
assistance under this Act, the chief executive officer, in consultation 
with the Director of the Office of Management and Budget and 
considering rating agency preliminary or final rating opinion letters 
of the project under this section, shall estimate an appropriate 
Federal credit subsidy amount for each direct loan and loan guarantee, 
taking into account such letter, as well as any comparable market rates 
available for such a loan or loan guarantee, should any exist. The 
final credit subsidy cost for each loan and loan guarantee shall be 
determined consistent with the Federal Credit Reform Act (2 U.S.C. 661a 
et seq.).
    (e) Credit Fee.--
            (1) In general.--With respect to each agreement for 
        assistance under this Act, the chief executive officer may 
        charge a credit fee to the recipient of such assistance to pay 
        for, over time, all or a portion of the Federal credit subsidy 
        determined under subsection (d), with the remainder paid by the 
        account established for AIFA.
            (2) Treatment of source of fees.--The source of fees paid 
        under this section shall not be a loan or debt obligation 
        guaranteed by the Federal Government.
            (3) Credit fee on a direct loan.--In the case of a direct 
        loan, such credit fee shall be in addition to the base interest 
        rate established under subsection (c).
    (f) Maturity Date.--The final maturity date of a direct loan or 
loan guaranteed by AIFA under this Act shall be not later than 35 years 
after the date of substantial completion of the infrastructure project, 
as determined by the chief executive officer.
    (g) Rating Opinion Letter.--
            (1) In general.--The chief executive officer shall require 
        each applicant for assistance under this Act to provide a 
        rating opinion letter from at least 1 ratings agency, 
        indicating that the senior obligations of the infrastructure 
        project, which may be the Federal credit instrument, have the 
        potential to achieve an investment-grade rating.
            (2) Rural infrastructure projects.--With respect to a rural 
        infrastructure project, a rating agency opinion letter 
        described in paragraph (1) shall not be required, except that 
        the loan or loan guarantee shall receive an internal rating 
        score, using methods similar to the ratings agencies generated 
        by AIFA, measuring the proposed direct loan or loan guarantee 
        against comparable direct loans or loan guarantees of similar 
        credit quality in a similar sector.
    (h) Investment-Grade Rating Requirement.--
            (1) Loans and loan guarantees.--The execution of a direct 
        loan or loan guarantee under this Act shall be contingent on 
        the senior obligations of the infrastructure project receiving 
        an investment-grade rating.
            (2) Rating of aifa overall portfolio.--The average rating 
        of the overall portfolio of AIFA shall be not less than 
        investment grade after 5 years of operation.
    (i) Terms and Repayment of Direct Loans.--
            (1) Schedule.--The chief executive officer shall establish 
        a repayment schedule for each direct loan under this Act, based 
        on the projected cash flow from infrastructure project revenues 
        and other repayment sources.
            (2) Commencement.--Scheduled loan repayments of principal 
        or interest on a direct loan under this Act shall commence not 
        later than 5 years after the date of substantial completion of 
        the infrastructure project, as determined by the chief 
        executive officer of AIFA.
            (3) Deferred payments of direct loans.--
                    (A) Authorization.--If, at any time after the date 
                of substantial completion of an infrastructure project 
                assisted under this Act, the infrastructure project is 
                unable to generate sufficient revenues to pay the 
                scheduled loan repayments of principal and interest on 
                the direct loan under this Act, the chief executive 
                officer may allow the obligor to add unpaid principal 
                and interest to the outstanding balance of the direct 
                loan, if the result would benefit the Government.
                    (B) Interest.--Any payment deferred under 
                subparagraph (A) shall--
                            (i) continue to accrue interest, in 
                        accordance with the terms of the obligation, 
                        until fully repaid; and
                            (ii) be scheduled to be amortized over the 
                        remaining term of the loan.
                    (C) Criteria.--
                            (i) In general.--Any payment deferral under 
                        subparagraph (A) shall be contingent on the 
                        infrastructure project meeting criteria 
                        established by the Board of Directors.
                            (ii) Repayment standards.--The criteria 
                        established under clause (i) shall include 
                        standards for reasonable assurance of 
                        repayment.
            (4) Prepayment of direct loans.--
                    (A) Use of excess revenues.--Any excess revenues 
                that remain after satisfying scheduled debt service 
                requirements on the infrastructure project obligations 
                and direct loan and all deposit requirements under the 
                terms of any trust agreement, bond resolution, or 
                similar agreement securing project obligations under 
                this Act may be applied annually to prepay the direct 
                loan, without penalty.
                    (B) Use of proceeds of refinancing.--A direct loan 
                under this Act may be prepaid at any time, without 
                penalty, from the proceeds of refinancing from non-
                Federal funding sources.
            (5) Sale of direct loans.--
                    (A) In general.--As soon as is practicable after 
                substantial completion of an infrastructure project 
                assisted under this Act, and after notifying the 
                obligor, the chief executive officer may sell to 
                another entity, or reoffer into the capital markets, a 
                direct loan for the infrastructure project, if the 
                chief executive officer determines that the sale or 
                reoffering can be made on favorable terms for the 
                Government.
                    (B) Consent of obligor.--In making a sale or 
                reoffering under subparagraph (A), the chief executive 
                officer may not change the original terms and 
                conditions of the direct loan, without the written 
                consent of the obligor.
    (j) Loan Guarantees.--
            (1) Terms.--The terms of a loan guaranteed by AIFA under 
        this Act shall be consistent with the terms set forth in this 
        section for a direct loan, except that the rate on the 
        guaranteed loan and any payment, pre-payment, or refinancing 
        features shall be negotiated between the obligor and the 
        lender, with the consent of the chief executive officer.
            (2) Guaranteed lender.--A guaranteed lender shall be 
        limited to those lenders meeting the definition of that term in 
        section 601(a) of title 23, United States Code.
    (k) Compliance With FCRA; in General.--Direct loans and loan 
guarantees authorized by this Act shall be subject to the provisions of 
the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).

SEC. 255. COMPLIANCE AND ENFORCEMENT.

    (a) Credit Agreement.--Notwithstanding any other provision of law, 
each eligible entity that receives assistance under this Act from AIFA 
shall enter into a credit agreement that requires such entity to comply 
with all applicable policies and procedures of AIFA, in addition to all 
other provisions of the loan agreement.
    (b) AIFA Authority on Noncompliance.--In any case in which a 
recipient of assistance under this Act is materially out of compliance 
with the loan agreement, or any applicable policy or procedure of AIFA, 
the Board of Directors may take action to cancel unutilized loan 
amounts, or to accelerate the repayment terms of any outstanding 
obligation.
    (c) Construction.--Nothing in this Act is intended to affect 
existing provisions of law applicable to the planning, development, 
construction, or operation of projects funded under the Act.

SEC. 256. AUDITS; REPORTS TO THE PRESIDENT AND CONGRESS.

    (a) Accounting.--The books of account of AIFA shall be maintained 
in accordance with generally accepted accounting principles, and shall 
be subject to an annual audit by independent public accountants of 
nationally recognized standing appointed by the Board of Directors.
    (b) Reports.--
            (1) Board of directors.--Not later than 90 days after the 
        last day of each fiscal year, the Board of Directors shall 
        submit to the President and Congress a complete and detailed 
        report with respect to the preceding fiscal year, setting 
        forth--
                    (A) a summary of the operations of AIFA, for such 
                fiscal year;
                    (B) a schedule of the obligations of AIFA and 
                capital securities outstanding at the end of such 
                fiscal year, with a statement of the amounts issued and 
                redeemed or paid during such fiscal year;
                    (C) the status of infrastructure projects receiving 
                funding or other assistance pursuant to this Act during 
                such fiscal year, including all nonperforming loans, 
                and including disclosure of all entities with a 
                development, ownership, or operational interest in such 
                infrastructure projects;
                    (D) a description of the successes and challenges 
                encountered in lending to rural communities, including 
                the role of the Center for Excellence and the Office of 
                Rural Assistance established under this Act; and
                    (E) an assessment of the risks of the portfolio of 
                AIFA, prepared by an independent source.
            (2) GAO.--Not later than 5 years after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall conduct an evaluation of, and shall submit to 
        Congress a report on, activities of AIFA for the fiscal years 
        covered by the report that includes an assessment of the impact 
        and benefits of each funded infrastructure project, including a 
        review of how effectively each such infrastructure project 
        accomplished the goals prioritized by the infrastructure 
        project criteria of AIFA.
    (c) Books and Records.--
            (1) In general.--AIFA shall maintain adequate books and 
        records to support the financial transactions of AIFA, with a 
        description of financial transactions and infrastructure 
        projects receiving funding, and the amount of funding for each 
        such project maintained on a publically accessible database.
            (2) Audits by the secretary and gao.--The books and records 
        of AIFA shall at all times be open to inspection by the 
        Secretary of the Treasury, the Special Inspector General, and 
        the Comptroller General of the United States.

                       PART III--FUNDING OF AIFA

SEC. 257. ADMINISTRATIVE FEES.

    (a) In General.--In addition to fees that may be collected under 
section 254(e), the chief executive officer shall establish and collect 
fees from eligible funding recipients with respect to loans and loan 
guarantees under this Act that--
            (1) are sufficient to cover all or a portion of the 
        administrative costs to the Federal Government for the 
        operations of AIFA, including the costs of expert firms, 
        including counsel in the field of municipal and project 
        finance, and financial advisors to assist with underwriting, 
        credit analysis, or other independent reviews, as appropriate;
            (2) may be in the form of an application or transaction 
        fee, or other form established by the chief executive officer; 
        and
            (3) may be based on the risk premium associated with the 
        loan or loan guarantee, taking into consideration--
                    (A) the price of United States Treasury obligations 
                of a similar maturity;
                    (B) prevailing market conditions;
                    (C) the ability of the infrastructure project to 
                support the loan or loan guarantee; and
                    (D) the total amount of the loan or loan guarantee.
    (b) Availability of Amounts.--Amounts collected under subsections 
(a)(1), (a)(2), and (a)(3) shall be available without further action, 
and the source of fees paid under this section shall not be a loan or 
debt obligation guaranteed by the Federal Government.

SEC. 258. EFFICIENCY OF AIFA.

    The chief executive officer shall, to the extent possible, take 
actions consistent with this Act to minimize the risk and cost to the 
Government of AIFA activities. Fees and premiums for loan guarantee or 
insurance coverage will be set at levels that minimize administrative 
and Federal credit subsidy costs to the Government, as defined in 
section 502 of the Federal Credit Reform Act of 1990, of such coverage, 
while supporting achievement of the program's objectives, consistent 
with policies as set forth in the business plan.

SEC. 259. FUNDING.

    (a) In General.--There is hereby appropriated to AIFA to carry out 
this Act, for the cost of direct loans and loan guarantees subject to 
the limitations under section 253, and for administrative costs, 
$10,000,000,000, to remain available until expended.
    (b) Costs Defined.--Such costs, including the costs of modifying 
such loans, shall be as defined in section 502 of the Federal Credit 
Reform Act of 1990.
    (c) Administrative Costs.--Of the amounts appropriated under 
subsection (a), not more than $25,000,000 for each of fiscal years 2016 
through 2017, and not more than $50,000,000 for fiscal year 2018 may be 
used for administrative costs of AIFA.
    (d) Offsets of Subsidy Costs.--Not more than 5 percent of such 
amount may be used to offset subsidy costs associated with rural 
projects.

PART IV--EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX TREATMENT 
                      FOR CERTAIN TAX-EXEMPT BONDS

SEC. 260. EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX TREATMENT 
              FOR CERTAIN TAX-EXEMPT BONDS.

    (a) In General.--Section 57(a)(5)(C)(vi) of the Internal Revenue 
Code of 1986 is amended--
            (1) by inserting ``, or after December 31, 2014, and before 
        January 1, 2019'' after ``January 1, 2011'' in subclause (I), 
        and
            (2) by striking ``bonds issued in 2009 and 2010'' in the 
        heading and inserting ``certain bonds''.
    (b) Adjusted Current Earnings.--Section 56(g)(4)(B)(iv) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``, or after December 31, 2014, and before 
        January 1, 2019'' after ``January 1, 2011'' in subclause (I), 
        and
            (2) by striking ``bonds issued in 2009 and 2010'' in the 
        heading and inserting ``certain bonds''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2014.

                      Subtitle F--Project Rebuild

SEC. 261. PROJECT REBUILD.

    (a) Direct Appropriations.--There is appropriated, out of any money 
in the Treasury not otherwise appropriated, $15,000,000,000, to remain 
available until September 30, 2018, for assistance to eligible entities 
including States and units of general local government (as such terms 
are defined in section 102 of the Housing and Community Development Act 
of 1974 (42 U.S.C. 5302)), and qualified nonprofit organizations, 
businesses or consortia of eligible entities for the redevelopment of 
abandoned and foreclosed-upon properties and for the stabilization of 
affected neighborhoods.
    (b) Allocation of Appropriated Amounts.--
            (1) In general.--Of the amounts appropriated, two thirds 
        shall be allocated to States and units of general local 
        government based on a funding formula established by the 
        Secretary of Housing and Urban Development (in this subtitle 
        referred to as the ``Secretary''). Of the amounts appropriated, 
        one third shall be distributed competitively to eligible 
        entities.
            (2) Formula to be devised swiftly.--The funding formula 
        required under paragraph (1) shall be established and the 
        Secretary shall announce formula funding allocations, not later 
        than 30 days after the date of enactment of this section.
            (3) Formula criteria.--The Secretary may establish a 
        minimum grant size, and the funding formula required under 
        paragraph (1) shall ensure that any amounts appropriated or 
        otherwise made available under this section are allocated to 
        States and units of general local government with the greatest 
        need, as such need is determined in the discretion of the 
        Secretary based on--
                    (A) the number and percentage of home foreclosures 
                in each State or unit of general local government;
                    (B) the number and percentage of homes in default 
                or delinquency in each State or unit of general local 
                government; and
                    (C) other factors such as established program 
                designs, grantee capacity and performance, number and 
                percentage of commercial foreclosures, overall economic 
                conditions, and other market needs data, as determined 
                by the Secretary.
            (4) Competition criteria.--
                    (A) For the funds distributed competitively, 
                eligible entities shall be States, units of general 
                local government, nonprofit entities, for-profit 
                entities, and consortia of eligible entities that 
                demonstrate capacity to use funding within the period 
                of this program.
                    (B) In selecting grantees, the Secretary shall 
                ensure that grantees are in areas with the greatest 
                number and percentage of residential and commercial 
                foreclosures and other market needs data, as determined 
                by the Secretary. Additional award criteria shall 
                include demonstrated grantee capacity to execute 
                projects involving acquisition and rehabilitation or 
                redevelopment of foreclosed residential and commercial 
                property and neighborhood stabilization, leverage, 
                knowledge of market conditions and of effective 
                stabilization activities to address identified 
                conditions, and any additional factors determined by 
                the Secretary.
                    (C) The Secretary may establish a minimum grant 
                size.
                    (D) The Secretary shall publish competition 
                criteria for any grants awarded under this heading not 
                later than 60 days after appropriation of funds, and 
                applications shall be due to the Secretary within 120 
                days.
    (c) Use of Funds.--
            (1) Obligation and expenditure.--The Secretary shall 
        obligate all funding within 150 days of enactment of this Act. 
        Any eligible entity that receives amounts pursuant to this 
        section shall expend all funds allocated to it within three 
        years of the date the funds become available to the grantee for 
        obligation. Furthermore, the Secretary shall by Notice 
        establish intermediate expenditure benchmarks at the one and 
        two year dates from the date the funds become available to the 
        grantee for obligation.
            (2) Priorities.--
                    (A) Job creation.--Each grantee or eligible entity 
                shall describe how its proposed use of funds will 
                prioritize job creation, and secondly, will address 
                goals to stabilize neighborhoods, reverse vacancy, or 
                increase or stabilize residential and commercial 
                property values.
                    (B) Targeting.--Any State or unit of general local 
                government that receives formula amounts pursuant to 
                this section shall, in distributing and targeting such 
                amounts give priority emphasis and consideration to 
                those metropolitan areas, metropolitan cities, urban 
                areas, rural areas, low- and moderate-income areas, and 
                other areas with the greatest need, including those--
                            (i) with the greatest percentage of home 
                        foreclosures;
                            (ii) identified as likely to face a 
                        significant rise in the rate of residential or 
                        commercial foreclosures; and
                            (iii) with higher than national average 
                        unemployment rate.
                    (C) Leverage.--Each grantee or eligible entity 
                shall describe how its proposed use of funds will 
                leverage private funds.
            (3) Eligible uses.--Amounts made available under this 
        section may be used to--
                    (A) establish financing mechanisms for the purchase 
                and redevelopment of abandoned and foreclosed-upon 
                properties, including such mechanisms as soft-seconds, 
                loan loss reserves, and shared-equity loans for low- 
                and moderate-income homebuyers;
                    (B) purchase and rehabilitate properties that have 
                been abandoned or foreclosed upon, in order to sell, 
                rent, or redevelop such properties;
                    (C) establish and operate land banks for properties 
                that have been abandoned or foreclosed upon;
                    (D) demolish blighted structures;
                    (E) redevelop abandoned, foreclosed, demolished, or 
                vacant properties; and
                    (F) engage in other activities, as determined by 
                the Secretary through notice, that are consistent with 
                the goals of creating jobs, stabilizing neighborhoods, 
                reversing vacancy reduction, and increasing or 
                stabilizing residential and commercial property values.
    (d) Limitations.--
            (1) On purchases.--Any purchase of a property under this 
        section shall be at a price not to exceed its current market 
        value, taking into account its current condition.
            (2) Rehabilitation.--Any rehabilitation of an eligible 
        property under this section shall be to the extent necessary to 
        comply with applicable laws, and other requirements relating to 
        safety, quality, marketability, and habitability, in order to 
        sell, rent, or redevelop such properties or provide a renewable 
        energy source or sources for such properties.
            (3) Sale of homes.--If an abandoned or foreclosed-upon home 
        is purchased, redeveloped, or otherwise sold to an individual 
        as a primary residence, then such sale shall be in an amount 
        equal to or less than the cost to acquire and redevelop or 
        rehabilitate such home or property up to a decent, safe, 
        marketable, and habitable condition.
            (4) On demolition of public housing.--Public housing, as 
        defined at section 3(b)(1) of the United States Housing Act of 
        1937 (42 U.S.C. 1437a(b)(1)), may not be demolished with funds 
        under this section.
            (5) On demolition activities.--No more than 10 percent of 
        any grant made under this section may be used for demolition 
        activities unless the Secretary determines that such use 
        represents an appropriate response to local market conditions.
            (6) On use of funds for non-residential property.--No more 
        than 30 percent of any grant made under this section may be 
        used for eligible activities under subparagraphs (A), (B), and 
        (E) of subsection (c)(3) that will not result in residential 
        use of the property involved unless the Secretary determines 
        that such use represents an appropriate response to local 
        market conditions.
    (e) Rules of Construction.--
            (1) In general.--Except as otherwise provided by this 
        section, amounts appropriated, revenues generated, or amounts 
        otherwise made available to eligible entities under this 
        section shall be treated as though such funds were community 
        development block grant funds under title I of the Housing and 
        Community Development Act of 1974 (42 U.S.C. 5301 et seq.).
            (2) No match.--No matching funds shall be required in order 
        for an eligible entity to receive any amounts under this 
        section.
            (3) Tenant protections.--An eligible entity receiving a 
        grant under this section shall comply with the 14th, 17th, 
        18th, 19th, 20th, 21st, 22nd, and 23rd provisos under the 
        heading ``Department of Housing and Urban Development--
        Community Planning and Development--Community Development 
        Fund'' in title XII of division A of the American Recovery and 
        Reinvestment Act of 2009 (Public Law 111-5, 123 Stat. 218-19), 
        as amended by section 1497(b)(2) of the Dodd-Frank Wall Street 
        Reform and Consumer Protection Act (Public Law 111-203, 124 
        Stat. 2211).
            (4) Vicinity hiring.--An eligible entity receiving a grant 
        under this section shall comply with section 1497(a)(8) of the 
        Dodd-Frank Wall Street Reform and Consumer Protection Act 
        (Public Law 111-203, 129 Stat. 2210).
    (f) Authority To Specify Alternative Requirements.--
            (1) In general.--In administering the program under this 
        section, the Secretary may specify alternative requirements to 
        any provision under title I of the Housing and Community 
        Development Act of 1974 or under title I of the Cranston-
        Gonzalez National Affordable Housing Act of 1990 (except for 
        those provisions in these laws related to fair housing, 
        nondiscrimination, labor standards, and the environment) for 
        the purpose of expediting and facilitating the use of funds 
        under this section.
            (2) Notice.--The Secretary shall provide written notice of 
        intent to the public via Internet to exercise the authority to 
        specify alternative requirements under paragraph.
            (3) Low and moderate income requirement.--
                    (A) In general.--Notwithstanding the authority of 
                the Secretary under paragraph (1)--
                            (i) all of the formula and competitive 
                        grantee funds appropriated or otherwise made 
                        available under this section shall be used with 
                        respect to individuals and families whose 
                        income does not exceed 120 percent of area 
                        median income; and
                            (ii) not less than 25 percent of the 
                        formula and competitive grantee funds 
                        appropriated or otherwise made available under 
                        this section shall be used for the purchase and 
                        redevelopment of eligible properties that will 
                        be used to house individuals or families whose 
                        incomes do not exceed 50 percent of area median 
                        income.
                    (B) Recurrent requirement.--The Secretary shall, by 
                rule or order, ensure, to the maximum extent 
                practicable and for the longest feasible term, that the 
                sale, rental, or redevelopment of abandoned and 
                foreclosed-upon homes and residential properties under 
                this section remain affordable to individuals or 
                families described in subparagraph (A).
    (g) Nationwide Distribution of Resources.--Notwithstanding any 
other provision of this section or the amendments made by this section, 
each State shall receive not less than $20,000,000 of formula funds.
    (h) Limitation on Use of Funds With Respect to Eminent Domain.--No 
State or unit of general local government may use any amounts received 
pursuant to this section to fund any project that seeks to use the 
power of eminent domain, unless eminent domain is employed only for a 
public use, which shall not be construed to include economic 
development that primarily benefits private entities.
    (i) Limitation on Distribution of Funds.--
            (1) In general.--None of the funds made available under 
        this section shall be distributed to--
                    (A) an organization which has been indicted for a 
                violation under Federal law relating to an election for 
                Federal office; or
                    (B) an organization which employs applicable 
                individuals.
            (2) Applicable individuals defined.--In this section, the 
        term ``applicable individual'' means an individual who--
                    (A) is--
                            (i) employed by the organization in a 
                        permanent or temporary capacity;
                            (ii) contracted or retained by the 
                        organization; or
                            (iii) acting on behalf of, or with the 
                        express or apparent authority of, the 
                        organization; and
                    (B) has been indicted for a violation under Federal 
                law relating to an election for Federal office.
    (j) Rental Housing Preferences.--Each State and local government 
receiving formula amounts shall establish procedures to create 
preferences for the development of affordable rental housing.
    (k) Job Creation.--If a grantee chooses to use funds to create jobs 
by establishing and operating a program to maintain eligible 
neighborhood properties, not more than 10 percent of any grant may be 
used for that purpose.
    (l) Program Support and Capacity Building.--The Secretary may use 
up to 0.75 percent of the funds appropriated for capacity building of 
and support for eligible entities and grantees undertaking neighborhood 
stabilization programs, staffing, training, technical assistance, 
technology, monitoring, travel, enforcement, research, and evaluation 
activities, subject to the following requirements:
            (1) Funds set aside for the purposes of this subparagraph 
        shall remain available until September 30, 2018.
            (2) Any funds made available under this subparagraph and 
        used by the Secretary for personnel expenses related to 
        administering funding under this subparagraph shall be 
        transferred to ``Personnel Compensation and Benefits, Community 
        Planning and Development''.
            (3) Any funds made available under this subparagraph and 
        used by the Secretary for training or other administrative 
        expenses shall be transferred to ``Administration, Operations, 
        and Management, Community Planning and Development'' for non-
        personnel expenses.
            (4) Any funds made available under this subparagraph and 
        used by the Secretary for technology shall be transferred to 
        ``Working Capital Fund''.
    (m) Enforcement and Prevention of Fraud and Abuse.--The Secretary 
shall establish and implement procedures to prevent fraud and abuse of 
funds under this section, and shall impose a requirement that grantees 
have an internal auditor to continuously monitor grantee performance to 
prevent fraud, waste, and abuse. Grantees shall provide the Secretary 
and citizens with quarterly progress reports. The Secretary shall 
recapture funds from formula and competitive grantees that do not 
expend 100 percent of allocated funds within 3 years of the date that 
funds become available, and from underperforming or mismanaged 
grantees, and shall re-allocate those funds by formula to target areas 
with the greatest need, as determined by the Secretary through notice. 
The Secretary may take an alternative sanctions action only upon 
determining that such action is necessary to achieve program goals in a 
timely manner.
    (n) Conformance of Policies and Procedures.--The Secretary of 
Housing and Urban Development shall to the extent feasible conform 
policies and procedures for grants made under this section to the 
policies and practices already in place for the grants made under 
section 2301 of the Housing and Economic Recovery Act of 2008 (42 
U.S.C. 5301 note); title XII of division A of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 203); or section 
1497 of the Dodd-Frank Wall Street Reform and Consumer Protection Act 
(42 U.S.C. 5301 note).

   TITLE III--ASSISTANCE FOR THE UNEMPLOYED AND PATHWAYS BACK TO WORK

               Subtitle A--Supporting Unemployed Workers

SEC. 301. SHORT TITLE.

    This subtitle may be cited as the ``Supporting Unemployed Workers 
Act of 2015''.

 PART I--EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION AND CERTAIN 
  EXTENDED BENEFITS PROVISIONS, AND ESTABLISHMENT OF SELF-EMPLOYMENT 
                           ASSISTANCE PROGRAM

SEC. 311. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.

    (a) In General.--Section 4007 of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2016''.
    (b) Funding.--Section 4004(e)(1) of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
            (1) in subparagraph (I), by striking ``and'' at the end;
            (2) in subparagraph (J), by inserting ``and'' at the end; 
        and
            (3) by inserting after subparagraph (J) the following:
                    ``(K) the amendments made by section 311(a) of the 
                Supporting Unemployed Workers Act of 2015; and''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the American Taxpayer Relief 
Act of 2012 (Public Law 112-240; 26 U.S.C. 3304 note).

SEC. 312. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.

    (a) In General.--Section 2005 of the Assistance for Unemployed 
Workers and Struggling Families Act, as contained in Public Law 111-5 
(26 U.S.C. 3304 note), is amended--
            (1) by striking ``December 31, 2013'' each place it appears 
        and inserting ``December 31, 2015''; and
            (2) in subsection (c), by striking ``June 30, 2014'' and 
        inserting ``June 30, 2016''.
    (b) Extension of Matching for States With No Waiting Week.--Section 
5 of the Unemployment Compensation Extension Act of 2008 (Public Law 
110-449; 26 U.S.C. 3304 note) is amended by striking ``June 30, 2014'' 
and inserting ``June 30, 2016''.
    (c) Extension of Modification of Indicators Under the Extended 
Benefit Program.--Section 203 of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is 
amended--
            (1) in subsection (d), by striking ``December 31, 2013'' 
        and inserting ``December 31, 2015''; and
            (2) in subsection (f)(2), by striking ``December 31, 2013'' 
        and inserting ``December 31, 2015''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the American Taxpayer Relief 
Act of 2012 (Public Law 112-240; 26 U.S.C. 3304 note).

SEC. 313. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD 
              UNEMPLOYMENT INSURANCE ACT.

    (a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad 
Unemployment Insurance Act (45 U.S.C. 352(c)(2)(D)(iii)) is amended--
            (1) by striking ``June 30, 2013'' and inserting ``June 30, 
        2015''; and
            (2) by striking ``December 31, 2013'' and inserting 
        ``December 31, 2015''.
    (b) Clarification on Authority To Use Funds.--Funds appropriated 
under either the first or second sentence of clause (iv) of section 
2(c)(2)(D) of the Railroad Unemployment Insurance Act (45 U.S.C. 
352(c)(2)(D)) shall be available to cover the cost of additional 
extended unemployment benefits provided under such section 2(c)(2)(D) 
by reason of the amendments made by subsection (a) as well as to cover 
the cost of such benefits provided under such section 2(c)(2)(D), as in 
effect on the day before the date of the enactment of this Act.

                   PART II--REEMPLOYMENT NOW PROGRAM

SEC. 321. ESTABLISHMENT OF REEMPLOYMENT NOW PROGRAM.

    (a) In General.--There is established the Reemployment NOW program 
to be carried out by the Secretary of Labor in accordance with this 
part in order to facilitate the reemployment of individuals who are 
receiving emergency unemployment compensation under title IV of the 
Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 
3304 note) (hereafter in this part referred to as ``EUC claimants'').
    (b) Authorization and Appropriation.--There are authorized to be 
appropriated $4,000,000,000 for fiscal year 2016 to carry out the 
Reemployment NOW program under this part.

SEC. 322. DISTRIBUTION OF FUNDS.

    (a) In General.--Of the amount made available under section 321(b) 
to carry out this part, the Secretary of Labor shall--
            (1) reserve up to 1 percent for the costs of Federal 
        administration and for carrying out rigorous evaluations of the 
        activities conducted under this part; and
            (2) allot the remainder of the funds not reserved under 
        paragraph (1) in accordance with the requirements of 
        subsections (b) and (c) to States that have approved plans 
        under section 323.
    (b) Allotment Formula.--
            (1) Formula factors.--The Secretary of Labor shall allot 
        the funds available under subsection (a)(2) as follows--
                    (A) two-thirds of such funds shall be allotted on 
                the basis of the relative number of unemployed 
                individuals in each State, compared to the total number 
                of unemployed individuals in all States; and
                    (B) one-third of such funds shall be allotted on 
                the basis of the relative number of individuals in each 
                State who have been unemployed for 27 weeks or more, 
                compared to the total number of individuals in all 
                States who have been unemployed for 27 weeks or more.
            (2) Calculation.--For purposes of paragraph (1), the number 
        of unemployed individuals and the number of individuals 
        unemployed for 27 weeks or more shall be based on the data for 
        the most recent 12-month period, as determined by the 
        Secretary.
    (c) Reallotment.--
            (1) Failure to submit state plan.--If a State does not 
        submit a State plan by the time specified in section 323(b), or 
        a State does not receive approval of a State plan, the amount 
        the State would have been eligible to receive pursuant to the 
        formula under subsection (b) shall be allotted to States that 
        receive approval of the State plan under section 323 in 
        accordance with the relative allotments of such States as 
        determined by the Secretary under subsection (b).
            (2) Failure to implement activities on a timely basis.--The 
        Secretary of Labor may, in accordance with procedures and 
        criteria established by the Secretary, recapture the portion of 
        the State allotment under this part that remains unobligated if 
        the Secretary determines such funds are not being obligated at 
        a rate sufficient to meet the purposes of this part. The 
        Secretary shall reallot such recaptured funds to other States 
        that are not subject to recapture in accordance with the 
        relative share of the allotments of such States as determined 
        by the Secretary under subsection (b).
            (3) Recapture of funds.--Funds recaptured under paragraph 
        (2) shall be available for reobligation not later than December 
        31, 2015.

SEC. 323. STATE PLAN.

    (a) In General.--For a State to be eligible to receive an allotment 
under section 322, a State shall submit to the Secretary of Labor a 
State plan in such form and containing such information as the 
Secretary may require, which at a minimum shall include--
            (1) a description of the activities to be carried out by 
        the State to assist in the reemployment of eligible individuals 
        to be served in accordance with this part, including which of 
        the activities authorized in sections 324 through 328 the State 
        intends to carry out and an estimate of the amounts the State 
        intends to allocate to the activities, respectively;
            (2) a description of the performance outcomes to be 
        achieved by the State through the activities carried out under 
        this part, including the employment outcomes to be achieved by 
        participants and the processes the State will use to track 
        performance, consistent with guidance provided by the Secretary 
        of Labor regarding such outcomes and processes;
            (3) a description of coordination of activities to be 
        carried out under this part with activities under title I of 
        the Workforce Innovation and Opportunity Act, the Wagner-Peyser 
        Act, and other appropriate Federal programs;
            (4) the timelines for implementation of the activities 
        described in the plan and the number of EUC claimants expected 
        to be enrolled in such activities by quarter;
            (5) assurances that the State will participate in the 
        evaluation activities carried out by the Secretary of Labor 
        under this section;
            (6) assurances that the State will provide appropriate 
        reemployment services, including counseling, to any EUC 
        claimant who participates in any of the programs authorized 
        under this part; and
            (7) assurances that the State will report such information 
        as the Secretary may require relating to fiscal, performance 
        and other matters, including employment outcomes and effects, 
        which the Secretary determines are necessary to effectively 
        monitor the activities carried out under this part.
    (b) Plan Submission and Approval.--A State plan under this section 
shall be submitted to the Secretary of Labor for approval not later 
than 30 days after the Secretary issues guidance relating to submission 
of such plan. The Secretary shall approve such plans if the Secretary 
determines that the plans meet the requirements of this part and are 
appropriate and adequate to carry out the purposes of this part.
    (c) Plan Modifications.--A State may submit modifications to a 
State plan that has been approved under this part, and the Secretary of 
Labor may approve such modifications, if the plan as modified would 
meet the requirements of this part and are appropriate and adequate to 
carry out the purposes of this part.

SEC. 324. BRIDGE TO WORK PROGRAM.

    (a) In General.--A State may use funds allotted to the State under 
this part to establish and administer a Bridge to Work program 
described in this section.
    (b) Description of Program.--In order to increase individuals' 
opportunities to move to permanent employment, a State may establish a 
Bridge to Work program to provide an EUC claimant with short-term work 
experience placements with an eligible employer, during which time such 
individual--
            (1) shall be paid emergency unemployment compensation 
        payable under title IV of the Supplemental Appropriations Act, 
        2008 (Public Law 110-252; 26 U.S.C. 3304 note), as wages for 
        work performed, and as specified in subsection (c);
            (2) shall be paid the additional amount described in 
        subsection (e) as augmented wages for work performed; and
            (3) may be paid compensation in addition to the amounts 
        described in paragraphs (1) and (2) by a State or by a 
        participating employer as wages for work performed.
    (c) Program Eligibility and Other Requirements.--For purposes of 
this program--
            (1) individuals who, except for the requirements described 
        in paragraph (3), are eligible to receive emergency 
        unemployment compensation payments under title IV of the 
        Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 
        U.S.C. 3304 note), and who choose to participate in the program 
        described in subsection (b), shall receive such payments as 
        wages for work performed during their voluntary participation 
        in the program described under subsection (b);
            (2) the wages payable to individuals described in paragraph 
        (1) shall be paid from the emergency unemployment compensation 
        account for such individual as described in section 4002 of the 
        Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 
        U.S.C. 3304 note), and the amount in such individual's account 
        shall be reduced accordingly;
            (3) the wages payable to an individual described in 
        paragraph (1) shall be payable in the same amount, at the same 
        interval, on the same terms, and subject to the same conditions 
        under title IV of the Supplemental Appropriations Act, 2008 
        (Public Law 110-252; 26 U.S.C. 3304 note), except that--
                    (A) State requirements applied under such Act 
                relating to availability for work and active search for 
                work are not applicable to such individuals who 
                participate for at least 25 hours per week in the 
                program described in subsection (b) for the duration of 
                such individual's participation in the program;
                    (B) State requirements applied under such Act 
                relating to disqualifying income regarding wages earned 
                shall not apply to such individuals who participate for 
                at least 25 hours per week in the program described in 
                subsection (b), and shall not apply with respect to--
                            (i) the wages described under subsection 
                        (b); and
                            (ii) any wages, in addition to those 
                        described under subsection (b), whether paid by 
                        a State or a participating employer for the 
                        same work activities;
                    (C) State prohibitions or limitations applied under 
                such Act relating to employment status shall not apply 
                to such individuals who participate in the program 
                described in subsection (b); and
                    (D) State requirements applied under such Act 
                relating to an individual's acceptance of an offer of 
                employment shall not apply with regard to an offer of 
                long-term employment from a participating employer made 
                to such individual who is participating in the program 
                described in subsection (b) in a work experience 
                provided by such employer, where such long-term 
                employment is expected to commence or commences at the 
                conclusion of the duration specified in paragraph 
                (4)(A);
            (4) the program shall be structured so that individuals 
        described in paragraph (1) may participate in the program for 
        up to--
                    (A) 8 weeks, and
                    (B) 38 hours for each such week;
            (5) a State shall ensure that all individuals participating 
        in the program are covered by a workers' compensation insurance 
        program; and
            (6) the program meets such other requirements as the 
        Secretary of Labor determines to be appropriate in guidance 
        issued by the Secretary.
    (d) State Requirements.--
            (1) Certification of eligible employer.--A State may 
        certify as eligible for participation in the program under this 
        section any employer that meets the eligibility criteria as 
        established in guidance by the Secretary of Labor, except that 
        an employer shall not be certified as eligible for 
        participation in the program described under subsection (b)--
                    (A) if such employer--
                            (i) is a Federal, State, or local 
                        government entity;
                            (ii) would engage an eligible individual in 
                        work activities under any employer's grant, 
                        contract, or subcontract with a Federal, State, 
                        or local government entity, except with regard 
                        to work activities under any employer's supply 
                        contract or subcontract;
                            (iii) is delinquent with respect to any 
                        taxes or employer contributions described under 
                        sections 3301 and 3302(a)(1) of the Internal 
                        Revenue Code of 1986 or with respect to any 
                        related reporting requirements;
                            (iv) is engaged in the business of 
                        supplying workers to other employers and would 
                        participate in the program for the purpose of 
                        supplying individuals participating in the 
                        program to other employers; or
                            (v) has previously participated in the 
                        program and the State has determined that such 
                        employer has failed to abide by any of the 
                        requirements specified in subsection (h), (i), 
                        or (j), or by any other requirements that the 
                        Secretary may establish for employers under 
                        subsection (c)(6); and
                    (B) unless such employer provides assurances that 
                it has not displaced existing workers pursuant to the 
                requirements of subsection (h).
            (2) Authorized activities.--Funds allotted to a State under 
        this part for the program--
                    (A) shall be used to--
                            (i) recruit employers for participation in 
                        the program;
                            (ii) review and certify employers 
                        identified by eligible individuals seeking to 
                        participate in the program;
                            (iii) ensure that reemployment and 
                        counseling services are available for program 
                        participants, including services describing the 
                        program under subsection (b), prior to an 
                        individual's participation in such program;
                            (iv) establish and implement processes to 
                        monitor the progress and performance of 
                        individual participants for the duration of the 
                        program;
                            (v) prevent misuse of the program; and
                            (vi) pay augmented wages to eligible 
                        individuals, if necessary, as described in 
                        subsection (e); and
                    (B) may be used--
                            (i) to pay workers' compensation insurance 
                        premiums to cover all individuals participating 
                        in the program, except that, if a State opts 
                        not to make such payments directly to a State 
                        administered workers' compensation program, the 
                        State involved shall describe in the approved 
                        State plan the means by which such State shall 
                        ensure workers' compensation or equivalent 
                        coverage for all individuals who participate in 
                        the program;
                            (ii) to pay compensation to a participating 
                        individual that is in addition to the amounts 
                        described in subsections (c)(1) and (e) as 
                        wages for work performed;
                            (iii) to provide supportive services, such 
                        as transportation, child care, and dependent 
                        care, that would enable individuals to 
                        participate in the program;
                            (iv) for the administration and oversight 
                        of the program; and
                            (v) to fulfill additional program 
                        requirements included in the approved State 
                        plan.
    (e) Payment of Augmented Wages if Necessary.--In the event that the 
wages described in subsection (c)(1) are not sufficient to equal or 
exceed the minimum wages that are required to be paid by an employer 
under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 
U.S.C. 206(a)(1)) or the applicable State or local minimum wage law, 
whichever is higher, a State shall pay augmented wages to a program 
participant in any amount necessary to cover the difference between--
            (1) such minimum wages amount; and
            (2) the wages payable under subsection (c)(1).
    (f) Effect of Wages on Eligibility for Other Programs.--None of the 
wages paid under this section shall be considered as income for the 
purposes of determining eligibility for and the amount of income 
transfer and in-kind aid furnished under any Federal or federally 
assisted program based on need.
    (g) Effect of Wages, Work Activities, and Program Participation on 
Continuing Eligibility for Emergency Unemployment Compensation.--Any 
wages paid under this section and any additional wages paid by an 
employer to an individual described in subsection (c)(1), and any work 
activities performed by such individual as a participant in the 
program, shall not be construed so as to render such individual 
ineligible to receive emergency unemployment compensation under title 
IV of the Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 
U.S.C. 3304 note).
    (h) Nondisplacement of Employees.--
            (1) Prohibition.--An employer shall not use a program 
        participant to displace (including a partial displacement, such 
        as a reduction in the hours of non-overtime work, wages, or 
        employment benefits) any current employee (as of the date of 
        the participation).
            (2) Other prohibitions.--An employer shall not permit a 
        program participant to perform work activities related to any 
        job for which--
                    (A) any other individual is on layoff from the same 
                or any substantially equivalent position;
                    (B) the employer has terminated the employment of 
                any employee or otherwise reduced the workforce of the 
                employer with the intention of filling or partially 
                filling the vacancy so created with the work activities 
                to be performed by a program participant;
                    (C) there is a strike or lock out at the worksite 
                that is the participant's place of employment; or
                    (D) the job is created in a manner that will 
                infringe in any way upon the promotional opportunities 
                of currently employed individuals (as of the date of 
                the participation).
    (i) Prohibition on Impairment of Contracts.--An employer shall not, 
by means of assigning work activities under this section, impair an 
existing contract for services or a collective bargaining agreement, 
and no such activity that would be inconsistent with the terms of a 
collective bargaining agreement shall be undertaken without the written 
concurrence of the labor organization that is signatory to the 
collective bargaining agreement.
    (j) Limitation on Employer Participation.--If, after 24 weeks of 
participation in the program, an employer has not made an offer of 
suitable long-term employment to any individual described under 
subsection (c)(1) who was placed with such employer and has completed 
the program, a State shall bar such employer from further participation 
in the program. States may impose additional conditions on 
participating employers to ensure that an appropriate number of 
participants receive offers of suitable long-term employment.
    (k) Failure To Meet Program Requirements.--If a State makes a 
determination based on information provided to the State, or acquired 
by the State by means of its administration and oversight functions, 
that a participating employer under this section has violated a 
requirement of this section, the State shall bar such employer from 
further participation in the program. The State shall establish a 
process whereby an individual described in subsection (c)(1), or any 
other affected individual or entity, may file a complaint with the 
State relating to a violation of any requirement or prohibition under 
this section.
    (l) Participant Option To Terminate Participation in Bridge to Work 
Program.--
            (1) Termination.--An individual who is participating in a 
        program described in subsection (b) may opt to discontinue 
        participation in such program.
            (2) Continued eligibility for emergency unemployment 
        compensation.--An individual who opts to discontinue 
        participation in such program, is terminated from such program 
        by a participating employer, or who has completed participation 
        in such program, and who continues to meet the eligibility 
        requirements for emergency unemployment compensation under 
        title IV of the Supplemental Appropriations Act, 2008 (Public 
        Law 110-252; 26 U.S.C. 3304 note), shall receive emergency 
        unemployment compensation payments with respect to subsequent 
        weeks of unemployment, to the extent that amounts remain in the 
        account established for such individual under section 4002(b) 
        of such Act or to the extent that such individual commences 
        receiving the amounts described in subsection (c), (d), or (e) 
        of such section, respectively.
    (m) Effect of Other Laws.--Unless otherwise provided in this 
section, nothing in this section shall be construed to alter or affect 
the rights or obligations under any Federal, State, or local laws with 
respect to any individual described in subsection (c)(1) and with 
respect to any participating employer under this section.
    (n) Treatment of Payments.--All wages or other payments to an 
individual under this section shall be treated as payments of 
unemployment compensation for purposes of section 209 of the Social 
Security Act (42 U.S.C. 409) and for purposes of subtitle A and 
sections 3101, 3111, and 3301 of the Internal Revenue Code of 1986.

SEC. 325. WAGE INSURANCE.

    (a) In General.--A State may use the funds allotted to the State 
under this part to provide a wage insurance program for EUC claimants.
    (b) Benefits.--The wage insurance program provided under this 
section may use funds allotted to the State under this part to pay, for 
a period not to exceed 2 years, to a worker described in subsection 
(c), up to 50 percent of the difference between--
            (1) the wages received by the worker at the time of 
        separation; and
            (2) the wages received by the worker for reemployment.
    (c) Individual Eligibility.--The benefits described in subsection 
(b) may be paid to an individual who is an EUC claimant at the time 
such individual obtains reemployment and who--
            (1) is at least 50 years of age;
            (2) earns not more than $50,000 per year in wages from 
        reemployment;
            (3) is employed on a full-time basis as defined by the law 
        of the State; and
            (4) is not employed by the employer from which the 
        individual was last separated.
    (d) Total Amount of Payments.--A State shall establish a maximum 
amount of payments per individual for purposes of payments described in 
subsection (b) during the eligibility period described in such 
subsection.
    (e) Non-Discrimination Regarding Wages.--An employer shall not pay 
a worker described in subsection (c) less than such employer pays to a 
regular worker in the same or substantially equivalent position.

SEC. 326. ENHANCED REEMPLOYMENT STRATEGIES.

    (a) In General.--A State may use funds allotted under this part to 
provide a program of enhanced reemployment services to EUC claimants. 
In addition to the provision of services to such claimants, the program 
may include the provision of reemployment services to individuals who 
are unemployed and have exhausted their rights to emergency 
unemployment compensation under title IV of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note). The 
program shall provide reemployment services that are more intensive 
than the reemployment services provided by the State prior to the 
receipt of the allotment under this part.
    (b) Types of Services.--The enhanced reemployment services 
described in subsection (a) may include services such as--
            (1) assessments, counseling, and other intensive services 
        that are provided by staff on a one-to-one basis and may be 
        customized to meet the reemployment needs of EUC claimants and 
        individuals described in subsection (a);
            (2) comprehensive assessments designed to identify 
        alternative career paths;
            (3) case management;
            (4) reemployment services that are provided more frequently 
        and more intensively than such reemployment services have 
        previously been provided by the State; and
            (5) services that are designed to enhance communication 
        skills, interviewing skills, and other skills that would assist 
        in obtaining reemployment.

SEC. 327. SELF-EMPLOYMENT PROGRAMS.

    A State may use funds allotted to the State under this part, in an 
amount specified under an approved State plan, for the administrative 
costs associated with starting up the self-employment assistance 
program described in section 4001(i) of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note).

SEC. 328. ADDITIONAL INNOVATIVE PROGRAMS.

    (a) In General.--A State may use funds allotted under this part to 
provide a program for innovative activities, which use a strategy that 
is different from the reemployment strategies described in sections 
324-327 and which are designed to facilitate the reemployment of EUC 
claimants. In addition to the provision of activities to such 
claimants, the program may include the provision of activities to 
individuals who are unemployed and have exhausted their rights to 
emergency unemployment compensation under title IV of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note).
    (b) Conditions.--The innovative activities approved in accordance 
with subsection (a)--
            (1) shall directly benefit EUC claimants and, if 
        applicable, individuals described in subsection (a), either as 
        a benefit paid to such claimant or individual or as a service 
        provided to such claimant or individual;
            (2) shall not result in a reduction in the duration or 
        amount of, emergency unemployment compensation for which EUC 
        claimants would otherwise be eligible;
            (3) shall not include a reduction in the duration, amount 
        of or eligibility for regular compensation or extended 
        benefits;
            (4) shall not be used to displace (including a partial 
        displacement, such as a reduction in the hours of non-overtime 
        work, wages, or employment benefits) any currently employed 
        employee (as of the date of the participation) or allow a 
        program participant to perform work activities related to any 
        job for which--
                    (A) any other individual is on layoff from the same 
                or any substantially equivalent job;
                    (B) the employer has terminated the employment of 
                any regular employee or otherwise reduced the workforce 
                of the employer with the intention of filling or 
                partially filling the vacancy so created with the work 
                activities to be performed by a program participant;
                    (C) there is a strike or lock out at the worksite 
                that is the participant's place of employment; or
                    (D) the job is created in a manner that will 
                infringe in any way upon the promotional opportunities 
                of currently employed individuals (as of the date of 
                the participation); and
            (5) shall not be in violation of any Federal, State, or 
        local law.

SEC. 329. GUIDANCE AND ADDITIONAL REQUIREMENTS.

    The Secretary of Labor may establish through guidance, without 
regard to the requirements of section 553 of title 5, United States 
Code, such additional requirements, including requirements regarding 
the allotment, recapture, and reallotment of funds, and reporting 
requirements, as the Secretary determines to be necessary to ensure 
fiscal integrity, effective monitoring, and appropriate and prompt 
implementation of the activities under this Act.

SEC. 330. REPORT OF INFORMATION AND EVALUATIONS TO CONGRESS AND THE 
              PUBLIC.

    The Secretary of Labor shall provide to the appropriate Committees 
of the Congress and make available to the public the information 
reported pursuant to section 329 and the evaluations of activities 
carried out pursuant to the funds reserved under section 322(a)(1).

SEC. 331. STATE.

    For purposes of this part, the term ``State'' has the meaning given 
that term in section 205 of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note).

               PART III--SHORT-TIME COMPENSATION PROGRAM

SEC. 341. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION PAYMENTS IN 
              STATES WITH PROGRAMS IN LAW.

    (a) Payments to States.--
            (1) In general.--Subject to paragraph (3), there shall be 
        paid to a State an amount equal to 100 percent of the amount of 
        short-time compensation paid under a short-time compensation 
        program (as defined in section 3306(v) of the Internal Revenue 
        Code of 1986) under the provisions of the State law.
            (2) Terms of payments.--Payments made to a State under 
        paragraph (1) shall be payable by way of reimbursement in such 
        amounts as the Secretary estimates the State will be entitled 
        to receive under this section for each calendar month, reduced 
        or increased, as the case may be, by any amount by which the 
        Secretary finds that the Secretary's estimates for any prior 
        calendar month were greater or less than the amounts which 
        should have been paid to the State. Such estimates may be made 
        on the basis of such statistical, sampling, or other method as 
        may be agreed upon by the Secretary and the State agency of the 
        State involved.
            (3) Limitations on payments.--
                    (A) General payment limitations.--No payments shall 
                be made to a State under this section for short-time 
                compensation paid to an individual by the State during 
                a benefit year in excess of 26 times the amount of 
                regular compensation (including dependents' allowances) 
                under the State law payable to such individual for a 
                week of total unemployment.
                    (B) Employer limitations.--No payments shall be 
                made to a State under this section for benefits paid to 
                an individual by the State under a short-time 
                compensation program if such individual is employed by 
                the participating employer on a seasonal, temporary, or 
                intermittent basis.
    (b) Applicability.--
            (1) In general.--Payments to a State under subsection (a) 
        shall be available for weeks of unemployment--
                    (A) beginning on or after the date of the enactment 
                of this Act; and
                    (B) ending on or before the date that is 3 years 
                and 6 months after the date of the enactment of this 
                Act.
            (2) Three-year funding limitation for combined payments 
        under this section and section 343.--States may receive 
        payments under this section and section 343 with respect to a 
        total of not more than 156 weeks.
    (c) Two-Year Transition Period for Existing Programs.--During any 
period that the transition provision under section 341(a)(3) is 
applicable to a State with respect to a short-time compensation 
program, such State shall be eligible for payments under this section. 
Subject to paragraphs (1)(B) and (2) of subsection (b), if at any point 
after the date of the enactment of this Act the State enacts a State 
law providing for the payment of short-time compensation under a short-
time compensation program that meets the definition of such a program 
under section 3306(v) of the Internal Revenue Code of 1986, the State 
shall be eligible for payments under this section after the effective 
date of such enactment.
    (d) Funding and Certifications.--
            (1) Funding.--There are appropriated, out of moneys in the 
        Treasury not otherwise appropriated, such sums as may be 
        necessary for purposes of carrying out this section.
            (2) Certifications.--The Secretary shall from time to time 
        certify to the Secretary of the Treasury for payment to each 
        State the sums payable to such State under this section.
    (e) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (2) State; state agency; state law.--The terms ``State'', 
        ``State agency'', and ``State law'' have the meanings given 
        those terms in section 205 of the Federal-State Extended 
        Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

SEC. 342. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION AGREEMENTS.

    (a) Federal-State Agreements.--
            (1) In general.--Any State which desires to do so may enter 
        into, and participate in, an agreement under this section with 
        the Secretary provided that such State's law does not provide 
        for the payment of short-time compensation under a short-time 
        compensation program (as defined in section 3306(v) of the 
        Internal Revenue Code of 1986).
            (2) Ability to terminate.--Any State which is a party to an 
        agreement under this section may, upon providing 30 days' 
        written notice to the Secretary, terminate such agreement.
    (b) Provisions of Federal-State Agreement.--
            (1) In general.--Any agreement under this section shall 
        provide that the State agency of the State will make payments 
        of short-time compensation under a plan approved by the State. 
        Such plan shall provide that payments are made in accordance 
        with the requirements under section 3306(v) of the Internal 
        Revenue Code of 1986.
            (2) Limitations on plans.--
                    (A) General payment limitations.--A short-time 
                compensation plan approved by a State shall not permit 
                the payment of short-time compensation to an individual 
                by the State during a benefit year in excess of 26 
                times the amount of regular compensation (including 
                dependents' allowances) under the State law payable to 
                such individual for a week of total unemployment.
                    (B) Employer limitations.--A short-time 
                compensation plan approved by a State shall not provide 
                payments to an individual if such individual is 
                employed by the participating employer on a seasonal, 
                temporary, or intermittent basis.
            (3) Employer payment of costs.--Any short-time compensation 
        plan entered into by an employer must provide that the employer 
        will pay the State an amount equal to one-half of the amount of 
        short-time compensation paid under such plan. Such amount shall 
        be deposited in the State's unemployment fund and shall not be 
        used for purposes of calculating an employer's contribution 
        rate under section 3303(a)(1) of the Internal Revenue Code of 
        1986.
    (c) Payments to States.--
            (1) In general.--There shall be paid to each State with an 
        agreement under this section an amount equal to--
                    (A) one-half of the amount of short-time 
                compensation paid to individuals by the State pursuant 
                to such agreement; and
                    (B) any additional administrative expenses incurred 
                by the State by reason of such agreement (as determined 
                by the Secretary).
            (2) Terms of payments.--Payments made to a State under 
        paragraph (1) shall be payable by way of reimbursement in such 
        amounts as the Secretary estimates the State will be entitled 
        to receive under this section for each calendar month, reduced 
        or increased, as the case may be, by any amount by which the 
        Secretary finds that the Secretary's estimates for any prior 
        calendar month were greater or less than the amounts which 
        should have been paid to the State. Such estimates may be made 
        on the basis of such statistical, sampling, or other method as 
        may be agreed upon by the Secretary and the State agency of the 
        State involved.
            (3) Funding.--There are appropriated, out of moneys in the 
        Treasury not otherwise appropriated, such sums as may be 
        necessary for purposes of carrying out this section.
            (4) Certifications.--The Secretary shall from time to time 
        certify to the Secretary of the Treasury for payment to each 
        State the sums payable to such State under this section.
    (d) Applicability.--
            (1) In general.--An agreement entered into under this 
        section shall apply to weeks of unemployment--
                    (A) beginning on or after the date on which such 
                agreement is entered into; and
                    (B) ending on or before the date that is 2 years 
                and 13 weeks after the date of the enactment of this 
                Act.
            (2) Two-year funding limitation.--States may receive 
        payments under this section with respect to a total of not more 
        than 104 weeks.
    (e) Special Rule.--If a State has entered into an agreement under 
this section and subsequently enacts a State law providing for the 
payment of short-time compensation under a short-time compensation 
program that meets the definition of such a program under section 
3306(v) of the Internal Revenue Code of 1986, the State--
            (1) shall not be eligible for payments under this section 
        for weeks of unemployment beginning after the effective date of 
        such State law; and
            (2) subject to paragraphs (1)(B) and (2) of section 342(b), 
        shall be eligible to receive payments under section 342 after 
        the effective date of such State law.
    (f) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (2) State; state agency; state law.--The terms ``State'', 
        ``State agency'', and ``State law'' have the meanings given 
        those terms in section 205 of the Federal-State Extended 
        Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

SEC. 343. GRANTS FOR SHORT-TIME COMPENSATION PROGRAMS.

    (a) Grants.--
            (1) For implementation or improved administration.--The 
        Secretary shall award grants to States that enact short-time 
        compensation programs (as defined in subsection (i)(2)) for the 
        purpose of implementation or improved administration of such 
        programs.
            (2) For promotion and enrollment.--The Secretary shall 
        award grants to States that are eligible and submit plans for a 
        grant under paragraph (1) for such States to promote and enroll 
        employers in short-time compensation programs (as so defined).
            (3) Eligibility.--
                    (A) In general.--The Secretary shall determine 
                eligibility criteria for the grants under paragraphs 
                (1) and (2).
                    (B) Clarification.--A State administering a short-
                time compensation program, including a program being 
                administered by a State that is participating in the 
                transition under the provisions of sections 341(a)(3) 
                and 342(c), that does not meet the definition of a 
                short-time compensation program under section 3306(v) 
                of the Internal Revenue Code of 1986, and a State with 
                an agreement under section 342, shall not be eligible 
                to receive a grant under this section until such time 
                as the State law of the State provides for payments 
                under a short-time compensation program that meets such 
                definition and such law.
    (b) Amount of Grants.--
            (1) In general.--The maximum amount available for making 
        grants to a State under paragraphs (1) and (2) shall be equal 
        to the amount obtained by multiplying $700,000,000 (less the 
        amount used by the Secretary under subsection (e)) by the same 
        ratio as would apply under subsection (a)(2)(B) of section 903 
        of the Social Security Act (42 U.S.C. 1103) for purposes of 
        determining such State's share of any excess amount (as 
        described in subsection (a)(1) of such section) that would have 
        been subject to transfer to State accounts, as of October 1, 
        2013, under the provisions of subsection (a) of such section.
            (2) Amount available for different grants.--Of the maximum 
        incentive payment determined under paragraph (1) with respect 
        to a State--
                    (A) one-third shall be available for a grant under 
                subsection (a)(1); and
                    (B) two-thirds shall be available for a grant under 
                subsection (a)(2).
    (c) Grant Application and Disbursal.--
            (1) Application.--Any State seeking a grant under paragraph 
        (1) or (2) of subsection (a) shall submit an application to the 
        Secretary at such time, in such manner, and complete with such 
        information as the Secretary may require. In no case may the 
        Secretary award a grant under this section with respect to an 
        application that is submitted after December 31, 2016.
            (2) Notice.--The Secretary shall, within 30 days after 
        receiving a complete application, notify the State agency of 
        the State of the Secretary's findings with respect to the 
        requirements for a grant under paragraph (1) or (2) (or both) 
        of subsection (a).
            (3) Certification.--If the Secretary finds that the State 
        law provisions meet the requirements for a grant under 
        subsection (a), the Secretary shall thereupon make a 
        certification to that effect to the Secretary of the Treasury, 
        together with a certification as to the amount of the grant 
        payment to be transferred to the State account in the 
        Unemployment Trust Fund (as established in section 904(a) of 
        the Social Security Act (42 U.S.C. 1104(a))) pursuant to that 
        finding. The Secretary of the Treasury shall make the 
        appropriate transfer to the State account within 7 days after 
        receiving such certification.
            (4) Requirement.--No certification of compliance with the 
        requirements for a grant under paragraph (1) or (2) of 
        subsection (a) may be made with respect to any State whose--
                    (A) State law is not otherwise eligible for 
                certification under section 303 of the Social Security 
                Act (42 U.S.C. 503) or approvable under section 3304 of 
                the Internal Revenue Code of 1986; or
                    (B) short-time compensation program is subject to 
                discontinuation or is not scheduled to take effect 
                within 12 months of the certification.
    (d) Use of Funds.--The amount of any grant awarded under this 
section shall be used for the implementation of short-time compensation 
programs and the overall administration of such programs and the 
promotion and enrollment efforts associated with such programs, such as 
through--
            (1) the creation or support of rapid response teams to 
        advise employers about alternatives to layoffs;
            (2) the provision of education or assistance to employers 
        to enable them to assess the feasibility of participating in 
        short-time compensation programs; and
            (3) the development or enhancement of systems to automate--
                    (A) the submission and approval of plans; and
                    (B) the filing and approval of new and ongoing 
                short-time compensation claims.
    (e) Administration.--The Secretary is authorized to use 0.25 
percent of the funds available under subsection (g) to provide for 
outreach and to share best practices with respect to this section and 
short-time compensation programs.
    (f) Recoupment.--The Secretary shall establish a process under 
which the Secretary shall recoup the amount of any grant awarded under 
paragraph (1) or (2) of subsection (a) if the Secretary determines 
that, during the 5-year period beginning on the first date that any 
such grant is awarded to the State, the State--
            (1) terminated the State's short-time compensation program; 
        or
            (2) failed to meet appropriate requirements with respect to 
        such program (as established by the Secretary).
    (g) Funding.--There are appropriated, out of moneys in the Treasury 
not otherwise appropriated, to the Secretary, $700,000,000 to carry out 
this section, to remain available without fiscal year limitation.
    (h) Reporting.--The Secretary may establish reporting requirements 
for States receiving a grant under this section in order to provide 
oversight of grant funds.
    (i) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (2) Short-time compensation program.--The term ``short-time 
        compensation program'' has the meaning given such term in 
        section 3306(v) of the Internal Revenue Code of 1986.
            (3) State; state agency; state law.--The terms ``State'', 
        ``State agency'', and ``State law'' have the meanings given 
        those terms in section 205 of the Federal-State Extended 
        Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

SEC. 344. ASSISTANCE AND GUIDANCE IN IMPLEMENTING PROGRAMS.

    (a) In General.--In order to assist States in establishing, 
qualifying, and implementing short-time compensation programs (as 
defined in section 3306(v) of the Internal Revenue Code of 1986), the 
Secretary of Labor (in this section referred to as the ``Secretary'') 
shall--
            (1) develop model legislative language which may be used by 
        States in developing and enacting such programs and 
        periodically review and revise such model legislative language;
            (2) provide technical assistance and guidance in 
        developing, enacting, and implementing such programs; and
            (3) establish reporting requirements for States, including 
        reporting on--
                    (A) the number of estimated averted layoffs;
                    (B) the number of participating employers and 
                workers; and
                    (C) such other items as the Secretary of Labor 
                determines are appropriate.
    (b) Model Language and Guidance.--The model language and guidance 
developed under subsection (a) shall allow sufficient flexibility by 
States and participating employers while ensuring accountability and 
program integrity.
    (c) Consultation.--In developing the model legislative language and 
guidance under subsection (a), and in order to meet the requirements of 
subsection (b), the Secretary shall consult with employers, labor 
organizations, State workforce agencies, and other program experts.

SEC. 345. REPORTS.

    (a) Reports.--
            (1) In general.--Not later than 4 years after the date of 
        the enactment of this Act, the Secretary of Labor shall submit 
        to Congress and to the President a report or reports on the 
        implementation of the provisions of this Act.
            (2) Requirements.--Any report under paragraph (1) shall at 
        a minimum include the following:
                    (A) A description of best practices by States and 
                employers in the administration, promotion, and use of 
                short-time compensation programs (as defined in section 
                3306(v) of the Internal Revenue Code of 1986).
                    (B) An analysis of the significant challenges to 
                State enactment and implementation of short-time 
                compensation programs.
                    (C) A survey of employers in States that have not 
                enacted a short-time compensation program or entered 
                into an agreement with the Secretary on a short-time 
                compensation plan to determine the level of interest 
                among such employers in participating in short-time 
                compensation programs.
    (b) Funding.--There are appropriated, out of any moneys in the 
Treasury not otherwise appropriated, to the Secretary of Labor, 
$1,500,000 to carry out this section, to remain available without 
fiscal year limitation.

          Subtitle B--Long-Term Unemployed Hiring Preferences

SEC. 351. LONG-TERM UNEMPLOYED WORKERS WORK OPPORTUNITY TAX CREDITS.

    (a) In General.--Section 51(b)(3) of the Internal Revenue Code is 
amended by inserting ``$10,000 per year in the case of any individual 
who is a qualified long-term unemployed individual by reason of 
subsection (d)(11), and'' before ``$12,000 per year''.
    (b) Long-Term Unemployed Individuals Tax Credits.--Section 51(d) of 
such Code is amended--
            (1) in paragraph (1), by striking ``or'' at the end of 
        subparagraph (H), by striking the period at the end of 
        subparagraph (I) and inserting ``, or'', and by inserting after 
        subparagraph (I) the following:
                    ``(J) a qualified long-term unemployed 
                individual.'', and
            (2) by redesignating paragraphs (11) through (14) as 
        paragraphs (12) through (15), respectively, and by inserting 
        after paragraph (10) the following new paragraph:
            ``(11) Qualified long-term unemployed individual.--
                    ``(A) In general.--The term `qualified long-term 
                unemployed individual' means any individual who was not 
                a student for at least 6 months during the 1-year 
                period ending on the hiring date and is certified by 
                the designated local agency as having aggregate periods 
                of unemployment during the 1-year period ending on the 
                hiring date which equal or exceed 6 months.
                    ``(B) Student.--For purposes of this subsection, a 
                student is an individual enrolled at least half-time in 
                a program that leads to a degree, certificate, or other 
                recognized educational credential for at least 6 months 
                whether or not consecutive during the 1-year period 
                ending on the hiring date.''.
    (c) Simplified Certification.--Section 51(d) of such Code, as 
amended by subsection (b), is amended by adding at the end the 
following new paragraph:
            ``(16) Credit allowed for qualified long-term unemployed 
        individuals.--
                    ``(A) In general.--Any qualified long-term 
                unemployed individual under paragraph (11) will be 
                treated as certified by the designated local agency as 
                having aggregate periods of unemployment if the 
                individual is certified by the designated local agency 
                as being in receipt of unemployment compensation under 
                State or Federal law for not less than 6 months during 
                the 1-year period ending on the hiring date.
                    ``(B) Regulatory authority.--The Secretary may 
                provide alternative methods for certification as a 
                qualified long-term unemployed individual under 
                paragraph (11), at the Secretary's discretion.''.
    (d) Credit Made Available to Tax-Exempt Employers in Certain 
Circumstances.--Section 3111(e) of such Code is amended--
            (1) in the heading for the subsection is amended by 
        inserting ``and Qualified Long-Term Unemployed Individuals'' 
        after ``Qualified Veterans'',
            (2) in paragraph (1) by inserting ``or qualified long-term 
        unemployed individual'' after ``qualified veteran'',
            (3) in paragraph (2) by inserting ``and qualified long-term 
        unemployed individuals'' after ``qualified veterans'',
            (4) in paragraph (3)(C) by inserting ``and qualified long-
        term unemployed individual, as the case may be,'' after 
        ``qualified veteran'',
            (5) in paragraph (4) by inserting ``or qualified long-term 
        unemployed individual'' after ``qualified veteran'' both places 
        it appears, and
            (6) in paragraph (5) by striking ``and'' at the end of 
        subparagraph (A), by striking the period at the end of 
        subparagraph (B) and inserting ``, and'', and by adding at the 
        end the following:
                    ``(C) the term `qualified long-term unemployed 
                individual' has meaning given such term by section 
                51(d)(11).''.
    (e) Treatment of Possessions.--
            (1) Payments to possessions.--
                    (A) Mirror code possessions.--The Secretary of the 
                Treasury shall pay to each possession of the United 
                States with a mirror code tax system amounts equal to 
                the loss to that possession by reason of the amendments 
                made by this section. Such amounts shall be determined 
                by the Secretary of the Treasury based on information 
                provided by the government of the respective possession 
                of the United States.
                    (B) Other possessions.--The Secretary of the 
                Treasury shall pay to each possession of the United 
                States which does not have a mirror code tax system the 
                amount estimated by the Secretary of the Treasury as 
                being equal to the loss to that possession that would 
                have occurred by reason of the amendments made by this 
                section if a mirror code tax system had been in effect 
                in such possession. The preceding sentence shall not 
                apply with respect to any possession of the United 
                States unless such possession establishes to the 
                satisfaction of the Secretary that the possession has 
                implemented (or, at the discretion of the Secretary, 
                will implement) an income tax benefit which is 
                substantially equivalent to the income tax credit in 
                effect after the amendments made by this section.
            (2) Coordination with credit allowed against united states 
        income taxes.--The credit allowed against United States income 
        taxes for any taxable year under the amendments made by this 
        section to section 51 of the Internal Revenue Code of 1986 to 
        any person with respect to any qualified long-term unemployed 
        individual shall be reduced by the amount of any credit (or 
        other tax benefit described in paragraph (1)(B)) allowed to 
        such person against income taxes imposed by the possession of 
        the United States by reason of this subsection with respect to 
        such qualified long-term unemployed individual for such taxable 
        year.
            (3) Definitions and special rules.--
                    (A) Possession of the united states.--For purposes 
                of this subsection, the term ``possession of the United 
                States'' includes American Samoa, Guam, the 
                Commonwealth of the Northern Mariana Islands, the 
                Commonwealth of Puerto Rico, and the United States 
                Virgin Islands.
                    (B) Mirror code tax system.--For purposes of this 
                subsection, the term ``mirror code tax system'' means, 
                with respect to any possession of the United States, 
                the income tax system of such possession if the income 
                tax liability of the residents of such possession under 
                such system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
                    (C) Treatment of payments.--For purposes of section 
                1324(b)(2) of title 31, United States Code, the 
                payments under this subsection shall be treated in the 
                same manner as a refund due from credit provisions 
                described in such section.
    (f) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after the date of 
the enactment of this Act.

                   Subtitle C--Pathways Back to Work

SEC. 361. SHORT TITLE.

    This subtitle may be cited as the ``Pathways Back to Work Act of 
2015''.

SEC. 362. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Secretary of Labor 
$5,000,000,000 to carry out this subtitle.

SEC. 363. AVAILABILITY OF FUNDS.

    (a) In General.--Of the amounts available under section 362(b), the 
Secretary of Labor shall--
            (1) allot $2,000,000,000 in accordance with section 364 to 
        provide subsidized employment to unemployed, low-income adults;
            (2) allot $1,500,000,000 in accordance with section 365 to 
        provide summer and year-round employment opportunities to low-
        income youth; and
            (3) award $1,500,000,000 in competitive grants in 
        accordance with section 366 to local entities to carry out 
        work-based training and other work-related and educational 
        strategies and activities of demonstrated effectiveness to 
        unemployed, low-income adults and low-income youth to provide 
        the skills and assistance needed to obtain employment.
    (b) Reservation.--The Secretary of Labor may reserve not more than 
1 percent of amounts available under each of paragraphs (1) through (3) 
of subsection (a) for the costs of technical assistance, evaluations 
and Federal administration of this Act.
    (c) Period of Availability.--The amounts appropriated under this 
Act shall be available for obligation by the Secretary of Labor until 
December 31, 2016, and shall be available for expenditure by grantees 
and subgrantees until September 30, 2017.

SEC. 364. SUBSIDIZED EMPLOYMENT FOR UNEMPLOYED, LOW-INCOME ADULTS.

    (a) In General.--
            (1) Allotments.--From the funds available under section 
        363(a)(1), the Secretary of Labor shall make an allotment under 
        subsection (b) to each State that has a State plan approved 
        under subsection (c) and to each outlying area and Native 
        American grantee under section 166 of the Workforce Innovation 
        and Opportunity Act that meets the requirements of this 
        section, for the purpose of providing subsidized employment 
        opportunities to unemployed, low-income adults.
            (2) Guidance.--Not later than 30 days after the date of 
        enactment of this Act, the Secretary of Labor, in coordination 
        with the Secretary of Health and Human Services, shall issue 
        guidance regarding the implementation of this section. Such 
        guidance shall, consistent with this section, include 
        procedures for the submission and approval of State and local 
        plans and the allotment and allocation of funds, including 
        reallotment and reallocation of such funds, that promote the 
        expeditious and effective implementation of the activities 
        authorized under this section.
    (b) State Allotments.--
            (1) Reservations for outlying areas and tribes.--Of the 
        funds described subsection (a)(1), the Secretary shall 
        reserve--
                    (A) not more than one-quarter of one percent to 
                provide assistance to outlying areas to provide 
                subsidized employment to low-income adults who are 
                unemployed; and
                    (B) 1.5 percent to provide assistance to grantees 
                of the Native American programs under section 166 of 
                the Workforce Innovation and Opportunity Act to provide 
                subsidized employment to low-income adults who are 
                unemployed.
            (2) States.--After determining the amounts to be reserved 
        under paragraph (1), the Secretary of Labor shall allot the 
        remainder of the amounts described in subsection (a)(1) among 
        the States as follows--
                    (A) one-third shall be allotted on the basis of the 
                relative number of unemployed individuals in areas of 
                substantial unemployment in each State, compared to the 
                total number of unemployed individuals in areas of 
                substantial unemployment in all States;
                    (B) one-third shall be allotted on the basis of the 
                relative excess number of unemployed individuals in 
                each State, compared to the total excess number of 
                unemployed individuals in all States; and
                    (C) one-third shall be allotted on the basis of the 
                relative number of disadvantaged adults and youth in 
                each State, compared to the total number of 
                disadvantaged adults and youth in all States.
            (3) Definitions.--For purposes of the formula described in 
        paragraph (2)--
                    (A) Area of substantial unemployment.--The term 
                ``area of substantial unemployment'' means any 
                contiguous area with a population of at least 10,000 
                and that has an average rate of unemployment of at 
                least 6.5 percent for the most recent 12 months, as 
                determined by the Secretary.
                    (B) Disadvantaged adults and youth.--The term 
                ``disadvantaged adults and youth'' means an individual 
                who is age 16 and older who received an income, or is a 
                member of a family that received a total family income, 
                that, in relation to family size, does not exceed the 
                higher of--
                            (i) the poverty line; or
                            (ii) 70 percent of the lower living 
                        standard income level.
                    (C) Excess number.--The term ``excess number'' 
                means, used with respect to the excess number of 
                unemployed individuals within a State, the higher of--
                            (i) the number that represents the number 
                        of unemployed individuals in excess of 4.5 
                        percent of the civilian labor force in the 
                        State; or
                            (ii) the number that represents the number 
                        of unemployed individuals in excess of 4.5 
                        percent of the civilian labor force in areas of 
                        substantial unemployment in such State.
            (4) Reallotment.--If the Governor of a State does not 
        submit a State plan by the time specified in subsection (c), or 
        a State does not receive approval of a State plan, the amount 
        the State would have been eligible to receive pursuant to the 
        formula under paragraph (2) shall be added to the amounts 
        available for the competitive grants under section 363(a)(3).
    (c) State Plan.--
            (1) In general.--For a State to be eligible to receive an 
        allotment of the funds under subsection (b), the Governor of 
        the State shall submit to the Secretary of Labor a State plan 
        in such form and containing such information as the Secretary 
        may require. At a minimum, such plan shall include--
                    (A) a description of the strategies and activities 
                to be carried out by the State, in coordination with 
                employers in the State, to provide subsidized 
                employment opportunities to unemployed, low-income 
                adults, including strategies relating to the level and 
                duration of subsidies consistent with subsection 
                (e)(2);
                    (B) a description of the requirements the State 
                will apply relating to the eligibility of unemployed, 
                low-income adults, consistent with section 368(6), for 
                subsidized employment opportunities, which may include 
                criteria to target assistance to particular categories 
                of such adults, such as individuals with disabilities 
                or individuals who have exhausted all rights to 
                unemployment compensation;
                    (C) a description of how the funds allotted to 
                provide subsidized employment opportunities will be 
                administered in the State and local areas, in 
                accordance with subsection (d);
                    (D) a description of the performance outcomes to be 
                achieved by the State through the activities carried 
                out under this section and the processes the State will 
                use to track performance, consistent with guidance 
                provided by the Secretary of Labor regarding such 
                outcomes and processes and with section 367(b);
                    (E) a description of the coordination of activities 
                to be carried out with the funds provided under this 
                section with activities under title I of the Workforce 
                Innovation and Opportunity Act, the TANF program under 
                part A of title IV of the Social Security Act, and 
                other appropriate Federal and State programs that may 
                assist unemployed, low-income adults in obtaining and 
                retaining employment;
                    (F) a description of the timelines for 
                implementation of the activities described in 
                subparagraph (A), and the number of unemployed, low-
                income adults expected to be placed in subsidized 
                employment by quarter;
                    (G) assurances that the State will report such 
                information as the Secretary of Labor may require 
                relating to fiscal, performance and other matters that 
                the Secretary determines is necessary to effectively 
                monitor the activities carried out under this section; 
                and
                    (H) assurances that the State will ensure 
                compliance with the labor standards and protections 
                described in section 367(a) of this Act.
            (2) Submission and approval of state plan.--
                    (A) Submission with other plans.--The State plan 
                described in this subsection may be submitted in 
                conjunction with the State plan modification or request 
                for funds required under section 365, and may be 
                submitted as a modification to a State plan that has 
                been approved under section 102 or 103 of the Workforce 
                Innovation and Opportunity Act.
                    (B) Submission and approval.--
                            (i) Submission.--The Governor shall submit 
                        a plan to the Secretary of Labor not later than 
                        75 days after the enactment of this Act and the 
                        Secretary of Labor shall make a determination 
                        regarding the approval or disapproval of such 
                        plans not later than 45 days after the 
                        submission of such plan. If the plan is 
                        disapproved, the Secretary of Labor may provide 
                        a reasonable period of time in which a 
                        disapproved plan may be amended and resubmitted 
                        for approval.
                            (ii) Approval.--The Secretary of Labor 
                        shall approve a State plan that the Secretary 
                        determines is consistent with requirements of 
                        this section and reasonably appropriate and 
                        adequate to carry out the purposes of this 
                        section. If the plan is approved, the Secretary 
                        shall allot funds to States within 30 days 
                        after such approval.
            (3) Modifications to state plan.--The Governor may submit a 
        modification to a State plan under this subsection consistent 
        with the requirements of this section.
    (d) Administration Within the State.--
            (1) Option.--The State may administer the funds for 
        activities under this section through--
                    (A) the State and local entities responsible for 
                the administration of the adult formula program under 
                subtitle B of title I of the Workforce Innovation and 
                Opportunity Act;
                    (B) the entities responsible for the administration 
                of the TANF program under part A of title IV of the 
                Social Security Act; or
                    (C) a combination of the entities described in 
                subparagraphs (A) and (B).
            (2) Within-state allocations.--
                    (A) Allocation of funds.--The Governor may reserve 
                up to 5 percent of the allotment under subsection 
                (b)(2) for administration and technical assistance, and 
                shall allocate the remainder, in accordance with the 
                option elected under paragraph (1)--
                            (i) among local workforce investment areas 
                        within the State in accordance with the factors 
                        identified in subsection (b)(2), except that 
                        for purposes of such allocation references to a 
                        State in such paragraph shall be deemed to be 
                        references to a local workforce investment area 
                        and references to all States shall be deemed to 
                        be references to all local areas in the State 
                        involved, of which not more than 10 percent of 
                        the funds allocated to a local workforce 
                        investment area may be used for the costs of 
                        administration of this section; or
                            (ii) through entities responsible for the 
                        administration of the TANF program under part A 
                        of title IV of the Social Security Act in local 
                        areas in such manner as the State may determine 
                        appropriate.
                    (B) Local plans.--
                            (i) In general.--In the case where the 
                        responsibility for the administration of 
                        activities is to be carried out by the entities 
                        described under paragraph (1)(A), in order to 
                        receive an allocation under subparagraph 
                        (A)(i), a local workforce investment board, in 
                        partnership with the chief elected official of 
                        the local workforce investment area involved, 
                        shall submit to the Governor a local plan for 
                        the use of such funds under this section not 
                        later than 30 days after the submission of the 
                        State plan. Such local plan may be submitted as 
                        a modification to a local plan approved under 
                        section 108 of the Workforce Innovation and 
                        Opportunity Act.
                            (ii) Contents.--The local plan described in 
                        clause (i) shall contain the elements described 
                        in subparagraphs (A)-(H) of subsection (c)(1), 
                        as applied to the local workforce investment 
                        area.
                            (iii) Approval.--The Governor shall approve 
                        or disapprove the local plan submitted under 
                        clause (i) within 30 days after submission, or 
                        if later, 30 days after the approval of the 
                        State plan. The Governor shall approve the plan 
                        unless the Governor determines that the plan is 
                        inconsistent with requirements of this section 
                        or is not reasonably appropriate and adequate 
                        to carry out the purposes of this section. If 
                        the Governor has not made a determination 
                        within the period specified under the first 
                        sentence of this clause, the plan shall be 
                        considered approved. If the plan is 
                        disapproved, the Governor may provide a 
                        reasonable period of time in which a 
                        disapproved plan may be amended and resubmitted 
                        for approval. The Governor shall allocate funds 
                        to local workforce investment areas with 
                        approved plans within 30 days after such 
                        approval.
                    (C) Reallocation of funds to local areas.--If a 
                local workforce investment board does not submit a 
                local plan by the time specified in subparagraph (B) or 
                the Governor does not approve a local plan, the amount 
                the local workforce investment area would have been 
                eligible to receive pursuant to the formula under 
                subparagraph (A)(i) shall be allocated to local 
                workforce investment areas that receive approval of the 
                local plan under subparagraph (B). Such reallocations 
                shall be made in accordance with the relative share of 
                the allocations to such local workforce investment 
                areas applying the formula factors described under 
                subparagraph (A)(i).
    (e) Use of Funds.--
            (1) In general.--The funds under this section shall be used 
        to provide subsidized employment for unemployed, low-income 
        adults. The State and local entities described in subsection 
        (d)(1) may use a variety of strategies in recruiting employers 
        and identifying appropriate employment opportunities, with a 
        priority to be provided to employment opportunities likely to 
        lead to unsubsidized employment in emerging or in-demand 
        occupations in the local area. Funds under this section may be 
        used to provide support services, such as transportation and 
        child care, that are necessary to enable the participation of 
        individuals in subsidized employment opportunities.
            (2) Level of subsidy and duration.--The States or local 
        entities described in subsection (d)(1) may determine the 
        percentage of the wages and costs of employing a participant 
        for which an employer may receive a subsidy with the funds 
        provided under this section, and the duration of such subsidy, 
        in accordance with guidance issued by the Secretary. The State 
        or local entities may establish criteria for determining such 
        percentage or duration using appropriate factors such as the 
        size of the employer and types of employment.
    (f) Coordination of Federal Administration.--The Secretary of Labor 
shall administer this section in coordination with the Secretary of 
Health and Human Services to ensure the effective implementation of 
this section.

SEC. 365. SUMMER EMPLOYMENT AND YEAR-ROUND EMPLOYMENT OPPORTUNITIES FOR 
              LOW-INCOME YOUTH.

    (a) In General.--From the funds available under section 363(a)(2), 
the Secretary of Labor shall make an allotment under subsection (c) to 
each State that has a State plan modification (or other form of request 
for funds specified in guidance under subsection (b)) approved under 
subsection (d) and to each outlying area and Native American grantee 
under section 166 of the Workforce Innovation and Opportunity Act that 
meets the requirements of this section, for the purpose of providing 
summer employment and year-round employment opportunities to low-income 
youth.
    (b) Guidance and Application of Requirements.--
            (1) Guidance.--Not later than 20 days after the date of 
        enactment of this Act, the Secretary of Labor shall issue 
        guidance regarding the implementation of this section. Such 
        guidance shall, consistent with this section, include 
        procedures for the submission and approval of State plan 
        modifications, or for forms of requests for funds by the State 
        as may be identified in such guidance, local plan 
        modifications, or other forms of requests for funds from local 
        workforce investment areas as may be identified in such 
        guidance, and the allotment and allocation of funds, including 
        reallotment and reallocation of such funds, that promote the 
        expeditious and effective implementation of the activities 
        authorized under this section.
            (2) Requirements.--Except as otherwise provided in the 
        guidance described in paragraph (1) and in this section and 
        other provisions of this Act, the funds provided for activities 
        under this section shall be administered in accordance with 
        subtitles B and E of title I of the Workforce Innovation and 
        Opportunity Act relating to youth activities.
    (c) State Allotments.--
            (1) Reservations for outlying areas and tribes.--Of the 
        funds described subsection (a), the Secretary shall reserve--
                    (A) not more than one-quarter of one percent to 
                provide assistance to outlying areas to provide summer 
                and year-round employment opportunities to low-income 
                youth; and
                    (B) 1.5 percent to provide assistance to grantees 
                of the Native American programs under section 166 of 
                the Workforce Innovation and Opportunity Act to provide 
                summer and year-round employment opportunities to low-
                income youth.
            (2) States.--After determining the amounts to be reserved 
        under paragraph (1), the Secretary of Labor shall allot the 
        remainder of the amounts described in subsection (a) among the 
        States in accordance with the factors described in section 
        364(b)(2) of this Act.
            (3) Reallotment.--If the Governor of a State does not 
        submit a State plan modification or other request for funds 
        specified in guidance under subsection (b) by the time 
        specified in subsection (d)(2)(B), or a State does not receive 
        approval of such State plan modification or request, the amount 
        the State would have been eligible to receive pursuant to the 
        formula under paragraph (2) shall be added to the amounts 
        available for the competitive grants under section 363(a)(3).
    (d) State Plan Modification.--
            (1) In general.--For a State to be eligible to receive an 
        allotment of the funds under subsection (c), the Governor of 
        the State shall submit to the Secretary of Labor a modification 
        to a State plan approved under section 102 or 103 of the 
        Workforce Innovation and Opportunity Act, or other request for 
        funds described in guidance in subsection (b), in such form and 
        containing such information as the Secretary may require. At a 
        minimum, such plan modification or request shall include--
                    (A) a description of the strategies and activities 
                to be carried out to provide summer employment 
                opportunities and year-round employment opportunities, 
                including the linkages to educational activities, 
                consistent with subsection (f);
                    (B) a description of the requirements the States 
                will apply relating to the eligibility of low-income 
                youth, consistent with section 368(4), for summer 
                employment opportunities and year-round employment 
                opportunities, which may include criteria to target 
                assistance to particular categories of such low-income 
                youth, such as youth with disabilities, consistent with 
                subsection (f);
                    (C) a description of the performance outcomes to be 
                achieved by the State through the activities carried 
                out under this section and the processes the State will 
                use to track performance, consistent with guidance 
                provided by the Secretary of Labor regarding such 
                outcomes and processes and with section 367(b);
                    (D) a description of the timelines for 
                implementation of the activities described in 
                subparagraph (A), and the number of low-income youth 
                expected to be placed in summer employment 
                opportunities, and year-round employment opportunities, 
                respectively, by quarter;
                    (E) assurances that the State will report such 
                information as the Secretary may require relating to 
                fiscal, performance and other matters that the 
                Secretary determines is necessary to effectively 
                monitor the activities carried out under this section; 
                and
                    (F) assurances that the State will ensure 
                compliance with the labor standards protections 
                described in section 367(a).
            (2) Submission and approval of state plan modification or 
        request.--
                    (A) Submission.--The Governor shall submit a 
                modification of the State plan or other request for 
                funds described in guidance in subsection (b) to the 
                Secretary of Labor not later than 30 days after the 
                issuance of such guidance. The State plan modification 
                or request for funds required under this subsection may 
                be submitted in conjunction with the State plan 
                required under section 364.
                    (B) Approval.--The Secretary of Labor shall approve 
                the plan or request submitted under subparagraph (A) 
                within 30 days after submission, unless the Secretary 
                determines that the plan or request is inconsistent 
                with the requirements of this section. If the Secretary 
                has not made a determination within 30 days, the plan 
                or request shall be considered approved. If the plan or 
                request is disapproved, the Secretary may provide a 
                reasonable period of time in which a disapproved plan 
                or request may be amended and resubmitted for approval. 
                If the plan or request is approved, the Secretary shall 
                allot funds to States within 30 days after such 
                approval.
            (3) Modifications to state plan or request.--The Governor 
        may submit further modifications to a State plan or request for 
        funds identified under subsection (b) to carry out this section 
        in accordance with the requirements of this section.
    (e) Within-State Allocation and Administration.--
            (1) In general.--Of the funds allotted to the State under 
        subsection (c), the Governor--
                    (A) may reserve up to 5 percent of the allotment 
                for administration and technical assistance; and
                    (B) shall allocate the remainder of the allotment 
                among local workforce investment areas within the State 
                in accordance with the factors identified in section 
                364(b)(2), except that for purposes of such allocation 
                references to a State in such paragraph shall be deemed 
                to be references to a local workforce investment area 
                and references to all States shall be deemed to be 
                references to all local areas in the State involved. 
                Not more than 10 percent of the funds allocated to a 
                local workforce investment area may be used for the 
                costs of administration of this section.
            (2) Local plan.--
                    (A) Submission.--In order to receive an allocation 
                under paragraph (1)(B), the local workforce investment 
                board, in partnership with the chief elected official 
                for the local workforce investment area involved, shall 
                submit to the Governor a modification to a local plan 
                approved under section 108 of the Workforce Innovation 
                and Opportunity Act, or other form of request for funds 
                as may be identified in the guidance issued under 
                subsection (b), not later than 30 days after the 
                submission by the State of the modification to the 
                State plan or other request for funds identified in 
                subsection (b), describing the strategies and 
                activities to be carried out under this section.
                    (B) Approval.--The Governor shall approve the local 
                plan submitted under subparagraph (A) within 30 days 
                after submission, unless the Governor determines that 
                the plan is inconsistent with requirements of this 
                section. If the Governor has not made a determination 
                within 30 days, the plan shall be considered approved. 
                If the plan is disapproved, the Governor may provide a 
                reasonable period of time in which a disapproved plan 
                may be amended and resubmitted for approval. The 
                Governor shall allocate funds to local workforce 
                investment areas with approved plans within 30 days 
                after approval.
            (3) Reallocation.--If a local workforce investment board 
        does not submit a local plan modification (or other request for 
        funds identified in guidance under subsection (b)) by the time 
        specified in paragraph (2), or does not receive approval of a 
        local plan, the amount the local workforce investment area 
        would have been eligible to receive pursuant to the formula 
        under paragraph (1)(B) shall be allocated to local workforce 
        investment areas that receive approval of the local plan 
        modification or request for funds under paragraph (2). Such 
        reallocations shall be made in accordance with the relative 
        share of the allocations to such local workforce investment 
        areas applying the formula factors described under paragraph 
        (1)(B).
    (f) Use of Funds.--
            (1) In general.--The funds provided under this section 
        shall be used--
                    (A) to provide summer employment opportunities for 
                low-income youth, ages 16 through 24, with direct 
                linkages to academic and occupational learning, and may 
                include the provision of supportive services, such as 
                transportation or child care, necessary to enable such 
                youth to participate; and
                    (B) to provide year round employment opportunities, 
                which may be combined with other activities authorized 
                under section 129 of the Workforce Innovation and 
                Opportunity Act, to low-income youth, ages 16 through 
                24, with a priority to out-of-school youth who are--
                            (i) high school dropouts; or
                            (ii) recipients of a secondary school 
                        diploma or its equivalent but who are basic 
                        skills deficient unemployed or underemployed.
            (2) Program priorities.--In administering the funds under 
        this section, the local board and local chief elected officials 
        shall give a priority to--
                    (A) identifying employment opportunities that are--
                            (i) in emerging or in-demand occupations in 
                        the local workforce investment area; or
                            (ii) in the public or nonprofit sector that 
                        meet community needs; and
                    (B) linking year-round program participants to 
                training and educational activities that will provide 
                such participants an industry-recognized certificate or 
                credential.
            (3) Performance accountability.--For activities funded 
        under this section, State and local workforce investment areas 
        shall provide such reports as the Secretary of Labor may 
        require regarding the performance outcomes described in section 
        367(a)(5).

SEC. 366. WORK-BASED EMPLOYMENT STRATEGIES OF DEMONSTRATED 
              EFFECTIVENESS.

    (a) In General.--From the funds available under section 363(a)(3), 
the Secretary of Labor shall award grants on a competitive basis to 
eligible entities to carry out work-based strategies of demonstrated 
effectiveness.
    (b) Use of Funds.--The grants awarded under this section shall be 
used to support strategies and activities of demonstrated effectiveness 
that are designed to provide unemployed, low-income adults or low-
income youth with the skills that will lead to employment as part of or 
upon completion of participation in such activities. Such strategies 
and activities may include--
            (1) on-the-job training, registered apprenticeship 
        programs, or other programs that combine work with skills 
        development;
            (2) sector-based training programs that have been designed 
        to meet the specific requirements of an employer or group of 
        employers in that sector and where employers are committed to 
        hiring individuals upon successful completion of the training;
            (3) training that supports an industry sector or an 
        employer-based or labor-management committee industry 
        partnership which includes a significant work-experience 
        component;
            (4) acquisition of industry-recognized credentials in a 
        field identified by the State or local workforce investment 
        area as a growth sector or demand industry in which there are 
        likely to be significant job opportunities in the short term;
            (5) connections to immediate work opportunities, including 
        subsidized employment opportunities, or summer employment 
        opportunities for youth, that includes concurrent skills 
        training and other supports;
            (6) career academies that provide students with the 
        academic preparation and training, including paid internships 
        and concurrent enrollment in community colleges or other 
        postsecondary institutions, needed to pursue a career pathway 
        that leads to postsecondary credentials and high-demand jobs; 
        and
            (7) adult basic education and integrated basic education 
        and training models for low-skilled adults, hosted at community 
        colleges or at other sites, to prepare individuals for jobs 
        that are in demand in a local area.
    (c) Eligible Entity.--An eligible entity shall include a local 
chief elected official, in collaboration with the local workforce 
investment board for the local workforce investment area involved 
(which may include a partnership with of such officials and boards in 
the region and in the State), or an entity eligible to apply for an 
Indian and Native American grant under section 166 of the Workforce 
Innovation and Opportunity Act, and may include, in partnership with 
such officials, boards, and entities, the following--
            (1) employers or employer associations;
            (2) adult education providers and postsecondary educational 
        institutions, including community colleges;
            (3) community-based organizations;
            (4) joint labor-management committees;
            (5) work-related intermediaries; or
            (6) other appropriate organizations.
    (d) Application.--An eligible entity seeking to receive a grant 
under this section shall submit to the Secretary of Labor an 
application at such time, in such manner, and containing such 
information as the Secretary may require. At a minimum, the application 
shall--
            (1) describe the strategies and activities of demonstrated 
        effectiveness that the eligible entities will carry out to 
        provide unemployed, low-income adults and low-income youth with 
        the skills that will lead to employment upon completion of 
        participation in such activities;
            (2) describe the requirements that will apply relating to 
        the eligibility of unemployed, low-income adults or low-income 
        youth, consistent with paragraphs (4) and (6) of section 368, 
        for activities carried out under this section, which may 
        include criteria to target assistance to particular categories 
        of such adults and youth, such as individuals with disabilities 
        or individuals who have exhausted all rights to unemployment 
        compensation;
            (3) describe how the strategies and activities address the 
        needs of the target populations identified in paragraph (2) and 
        the needs of employers in the local area;
            (4) describe the expected outcomes to be achieved by 
        implementing the strategies and activities;
            (5) provide evidence that the funds provided may be 
        expended expeditiously and efficiently to implement the 
        strategies and activities;
            (6) describe how the strategies and activities will be 
        coordinated with other Federal, State, and local programs 
        providing employment, education, and supportive activities;
            (7) provide evidence of employer commitment to participate 
        in the activities funded under this section, including 
        identification of anticipated occupational and skill needs;
            (8) provide assurances that the grant recipient will report 
        such information as the Secretary may require relating to 
        fiscal, performance and other matters that the Secretary 
        determines is necessary to effectively monitor the activities 
        carried out under this section; and
            (9) provide assurances that the use of the funds provided 
        under this section will comply with the labor standards and 
        protections described section 367(a).
    (e) Priority in Awards.--In awarding grants under this section, the 
Secretary of Labor shall give a priority to applications submitted by 
eligible entities from areas of high poverty and high unemployment, as 
defined by the Secretary, such as Public Use Microdata Areas (PUMAs) as 
designated by the Census Bureau.
    (f) Coordination of Federal Administration.--The Secretary of Labor 
shall administer this section in coordination with the Secretary of 
Education, the Secretary of Health and Human Services, and other 
appropriate agency heads, to ensure the effective implementation of 
this section.

SEC. 367. GENERAL REQUIREMENTS.

    (a) Labor Standards and Protections.--Activities provided with 
funds under this Act shall be subject to the requirements and 
restrictions, including the labor standards, described in section 181 
of the Workforce Innovation and Opportunity Act and the 
nondiscrimination provisions of section 188 of such Act, in addition to 
other applicable Federal laws.
    (b) Reporting.--The Secretary may require the reporting of 
information relating to fiscal, performance and other matters that the 
Secretary determines is necessary to effectively monitor the activities 
carried out with funds provided under this Act. At a minimum, grantees 
and subgrantees shall provide information relating to--
            (1) the number individuals participating in activities with 
        funds provided under this Act and the number of such 
        individuals who have completed such participation;
            (2) the expenditures of funds provided under the Act;
            (3) the number of jobs created pursuant to the activities 
        carried out under this Act;
            (4) the demographic characteristics of individuals 
        participating in activities under this Act; and
            (5) the performance outcomes of individuals participating 
        in activities under this Act, including--
                    (A) for adults participating in activities funded 
                under section 364 of this Act--
                            (i) entry in unsubsidized employment;
                            (ii) retention in unsubsidized employment; 
                        and
                            (iii) earnings in unsubsidized employment;
                    (B) for low-income youth participating in summer 
                employment activities under sections 365 and 366--
                            (i) work readiness skill attainment using 
                        an employer validated checklist; and
                            (ii) placement in or return to secondary or 
                        postsecondary education or training, or entry 
                        into unsubsidized employment;
                    (C) for low-income youth participating in year-
                round employment activities under section 365 or in 
                activities under section 366--
                            (i) placement in or return to post-
                        secondary education;
                            (ii) attainment of high school diploma or 
                        its equivalent;
                            (iii) attainment of an industry-recognized 
                        credential; and
                            (iv) entry into unsubsidized employment, 
                        retention, and earnings as described in 
                        subparagraph (A); and
                    (D) for unemployed, low-income adults participating 
                in activities under section 366--
                            (i) entry into unsubsidized employment, 
                        retention, and earnings as described in 
                        subparagraph (A); and
                            (ii) the attainment of industry-recognized 
                        credentials.
    (c) Activities Required To Be Additional.--Funds provided under 
this Act shall only be used for activities that are in addition to 
activities that would otherwise be available in the State or local area 
in the absence of such funds.
    (d) Additional Requirements.--The Secretary of Labor may establish 
such additional requirements as the Secretary determines may be 
necessary to ensure fiscal integrity, effective monitoring, and the 
appropriate and prompt implementation of the activities under this Act.
    (e) Report of Information and Evaluations to Congress and the 
Public.--The Secretary of Labor shall provide to the appropriate 
Committees of the Congress and make available to the public the 
information reported pursuant to subsection (b) and the evaluations of 
activities carried out pursuant to the funds reserved under section 
363(b).

SEC. 368. DEFINITIONS.

    In this Act:
            (1) Local chief elected official.--The term ``local chief 
        elected official'' means the chief elected executive officer of 
        a unit of local government in a local workforce investment area 
        or in the case where more than one unit of general government, 
        the individuals designated under an agreement described in 
        section 107(c)(1)(B) of the Workforce Innovation and 
        Opportunity Act.
            (2) Local workforce investment area.--The term ``local 
        workforce investment area'' means such area designated under 
        section 106 of the Workforce Innovation and Opportunity Act.
            (3) Local workforce investment board.--The term ``local 
        workforce investment board'' means such board established under 
        section 107 of the Workforce Innovation and Opportunity Act.
            (4) Low-income youth.--The term ``low-income youth'' means 
        an individual who--
                    (A) is aged 16 through 24; and
                    (B) meets the definition of a ``low-income 
                individual'' provided in section 3 of the Workforce 
                Innovation and Opportunity Act, except that States, 
                local workforce investment areas under section 365, and 
                eligible entities under section 366(c), subject to 
                approval in the applicable State plans, local plans, 
                and applications for funds, may increase the income 
                level specified in subparagraph (B)(i) of such section 
                to an amount not in excess of 200 percent of the 
                poverty line for purposes of determining eligibility 
                for participation in activities under sections 365 and 
                366 of this Act.
            (5) Outlying area.--The term ``outlying area'' means the 
        United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and the Republic 
        of Palau.
            (6) Unemployed, low-income adult.--The term ``unemployed, 
        low-income adult'' means an individual who--
                    (A) is age 18 or older;
                    (B) is without employment and is seeking assistance 
                under this Act to obtain employment; and
                    (C) meets the definition of a ``low-income 
                individual'' under section 3 of the Workforce 
                Innovation and Opportunity Act, except that States, 
                local entities described in section 364(d)(1), and 
                eligible entities under section 366(c), subject to 
                approval in the applicable State plans, local plans, 
                and applications for funds, may increase the income 
                level specified in subparagraph (B)(i) of such section 
                to an amount not in excess of 200 percent of the 
                poverty line for purposes of determining eligibility 
                for participation in activities under sections 364 and 
                366 of this Act.
            (7) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, and 
        Puerto Rico.

Subtitle D--Prohibition of Discrimination in Employment on the Basis of 
                  an Individual's Status as Unemployed

SEC. 371. SHORT TITLE.

    This subtitle may be cited as the ``Fair Employment Opportunity Act 
of 2015''.

SEC. 372. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that denial of employment 
opportunities to individuals because of their status as unemployed is 
discriminatory and burdens commerce by--
            (1) reducing personal consumption and undermining economic 
        stability and growth;
            (2) squandering human capital essential to the Nation's 
        economic vibrancy and growth;
            (3) increasing demands for Federal and State unemployment 
        insurance benefits, reducing trust fund assets, and leading to 
        higher payroll taxes for employers, cuts in benefits for 
        jobless workers, or both;
            (4) imposing additional burdens on publicly funded health 
        and welfare programs; and
            (5) depressing income, property, and other tax revenues 
        that the Federal Government, States, and localities rely on to 
        support operations and institutions essential to commerce.
    (b) Purposes.--The purposes of this subtitle are--
            (1) to prohibit employers and employment agencies from 
        disqualifying an individual from employment opportunities 
        because of that individual's status as unemployed;
            (2) to prohibit employers and employment agencies from 
        publishing or posting any advertisement or announcement for an 
        employment opportunity that indicates that an individual's 
        status as unemployed disqualifies that individual for the 
        opportunity; and
            (3) to eliminate the burdens imposed on commerce due to the 
        exclusion of such individuals from employment.

SEC. 373. DEFINITIONS.

    As used in this subtitle--
            (1) the term ``affected individual'' means any person who 
        was subject to an unlawful employment practice solely because 
        of that individual's status as unemployed;
            (2) the term ``Commission'' means the Equal Employment 
        Opportunity Commission;
            (3) the term ``employee'' means--
                    (A) an employee as defined in section 701(f) of the 
                Civil Rights Act of 1964 (42 U.S.C. 2000e(f));
                    (B) a State employee to which section 302(a)(1) of 
                the Government Employee Rights Act of 1991 (42 U.S.C. 
                2000e-16b(a)(1)) applies;
                    (C) a covered employee, as defined in section 101 
                of the Congressional Accountability Act of 1995 (2 
                U.S.C. 1301) or section 411(c) of title 3, United 
                States Code; or
                    (D) an employee or applicant to which section 
                717(a) of the Civil Rights Act of 1964 (42 U.S.C. 
                2000e-16(a)) applies;
            (4) the term ``employer'' means--
                    (A) a person engaged in an industry affecting 
                commerce (as defined in section 701(h) of the Civil 
                Rights Act of 1964 (42 U.S.C. 2000e(h))) who has 15 or 
                more employees for each working day in each of 20 or 
                more calendar weeks in the current or preceding 
                calendar year, and any agent of such a person, but does 
                not include a bona fide private membership club that is 
                exempt from taxation under section 501(c) of the 
                Internal Revenue Code of 1986;
                    (B) an employing authority to which section 
                302(a)(1) of the Government Employee Rights Act of 1991 
                applies;
                    (C) an employing office, as defined in section 101 
                of the Congressional Accountability Act of 1995 or 
                section 411(c) of title 3, United States Code; or
                    (D) an entity to which section 717(a) of the Civil 
                Rights Act of 1964 (42 U.S.C. 2000e-16(a)) applies;
            (5) the term ``employment agency'' means any person 
        regularly undertaking with or without compensation to procure 
        employees for an employer or to procure for individuals 
        opportunities to work as employees for an employer and includes 
        an agent of such a person, and any person who maintains an 
        Internet website or print medium that publishes advertisements 
        or announcements of openings in jobs for employees;
            (6) the term ``person'' has the meaning given the term in 
        section 701(a) of the Civil Rights Act of 1964 (42 U.S.C. 
        2000e(a)); and
            (7) the term ``status as unemployed'', used with respect to 
        an individual, means that the individual, at the time of 
        application for employment or at the time of action alleged to 
        violate this subtitle, does not have a job, is available for 
        work and is searching for work.

SEC. 374. PROHIBITED ACTS.

    (a) Employers.--It shall be an unlawful employment practice for an 
employer to--
            (1) publish in print, on the Internet, or in any other 
        medium, an advertisement or announcement for an employee for 
        any job that includes--
                    (A) any provision stating or indicating that an 
                individual's status as unemployed disqualifies the 
                individual for any employment opportunity; or
                    (B) any provision stating or indicating that an 
                employer will not consider or hire an individual for 
                any employment opportunity based on that individual's 
                status as unemployed;
            (2) fail or refuse to consider for employment, or fail or 
        refuse to hire, an individual as an employee because of the 
        individual's status as unemployed; or
            (3) direct or request that an employment agency take an 
        individual's status as unemployed into account to disqualify an 
        applicant for consideration, screening, or referral for 
        employment as an employee.
    (b) Employment Agencies.--It shall be an unlawful employment 
practice for an employment agency to--
            (1) publish, in print or on the Internet or in any other 
        medium, an advertisement or announcement for any vacancy in a 
        job, as an employee, that includes--
                    (A) any provision stating or indicating that an 
                individual's status as unemployed disqualifies the 
                individual for any employment opportunity; or
                    (B) any provision stating or indicating that the 
                employment agency or an employer will not consider or 
                hire an individual for any employment opportunity based 
                on that individual's status as unemployed;
            (2) screen, fail or refuse to consider, or fail or refuse 
        to refer an individual for employment as an employee because of 
        the individual's status as unemployed; or
            (3) limit, segregate, or classify any individual in any 
        manner that would limit or tend to limit the individual's 
        access to information about jobs, or consideration, screening, 
        or referral for jobs, as employees, solely because of an 
        individual's status as unemployed.
    (c) Interference With Rights, Proceedings or Inquiries.--It shall 
be unlawful for any employer or employment agency to--
            (1) interfere with, restrain, or deny the exercise of or 
        the attempt to exercise, any right provided under this 
        subtitle; or
            (2) fail or refuse to hire, to discharge, or in any other 
        manner to discriminate against any individual, as an employee, 
        because such individual--
                    (A) opposed any practice made unlawful by this 
                subtitle;
                    (B) has asserted any right, filed any charge, or 
                has instituted or caused to be instituted any 
                proceeding, under or related to this subtitle;
                    (C) 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
                    (D) has testified, or is about to testify, in any 
                inquiry or proceeding relating to any right provided 
                under this subtitle.
    (d) Construction.--Nothing in this subtitle is intended to preclude 
an employer or employment agency from considering an individual's 
employment history, or from examining the reasons underlying an 
individual's status as unemployed, in assessing an individual's ability 
to perform a job or in otherwise making employment decisions about that 
individual. Such consideration or examination may include an assessment 
of whether an individual's employment in a similar or related job for a 
period of time reasonably proximate to the consideration of such 
individual for employment is job-related or consistent with business 
necessity.

SEC. 375. ENFORCEMENT.

    (a) Enforcement Powers.--With respect to the administration and 
enforcement of this subtitle--
            (1) the Commission shall have the same powers as the 
        Commission has to administer and enforce--
                    (A) title VII of the Civil Rights Act of 1964 (42 
                U.S.C. 2000e et seq.); or
                    (B) sections 302 and 304 of the Government Employee 
                Rights Act of 1991 (42 U.S.C. 2000e-16b and 2000e-16c), 
                in the case of an affected individual who would be 
                covered by such title, or by section 302(a)(1) of the 
                Government Employee Rights Act of 1991 (42 U.S.C. 
                2000e-16b(a)(1)), respectively;
            (2) the Librarian of Congress shall have the same powers as 
        the Librarian of Congress has to administer and enforce title 
        VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.) 
        in the case of an affected individual who would be covered by 
        such title;
            (3) the Board (as defined in section 101 of the 
        Congressional Accountability Act of 1995 (2 U.S.C. 1301)) shall 
        have the same powers as the Board has to administer and enforce 
        the Congressional Accountability Act of 1995 (2 U.S.C. 1301 et 
        seq.) in the case of an affected individual who would be 
        covered by section 201(a)(1) of such Act (2 U.S.C. 1311(a)(1));
            (4) the Attorney General shall have the same powers as the 
        Attorney General has to administer and enforce--
                    (A) title VII of the Civil Rights Act of 1964 (42 
                U.S.C. 2000e et seq.); or
                    (B) sections 302 and 304 of the Government Employee 
                Rights Act of 1991 (42 U.S.C. 2000e-16b and 2000e-16c); 
                in the case of an affected individual who would be 
                covered by such title, or of section 302(a)(1) of the 
                Government Employee Rights Act of 1991 (42 U.S.C. 
                2000e-16b(a)(1)), respectively;
            (5) the President, the Commission, and the Merit Systems 
        Protection Board shall have the same powers as the President, 
        the Commission, and the Board, respectively, have to administer 
        and enforce chapter 5 of title 3, United States Code, in the 
        case of an affected individual who would be covered by section 
        411 of such title; and
            (6) a court of the United States shall have the same 
        jurisdiction and powers as the court has to enforce--
                    (A) title VII of the Civil Rights Act of 1964 (42 
                U.S.C. 2000e et seq.) in the case of a claim alleged by 
                such individual for a violation of such title;
                    (B) sections 302 and 304 of the Government Employee 
                Rights Act of 1991 (42 U.S.C. 2000e-16b and 2000e-16c) 
                in the case of a claim alleged by such individual for a 
                violation of section 302(a)(1) of such Act (42 U.S.C. 
                2000e-16b(a)(1));
                    (C) the Congressional Accountability Act of 1995 (2 
                U.S.C. 1301 et seq.) in the case of a claim alleged by 
                such individual for a violation of section 201(a)(1) of 
                such Act (2 U.S.C. 1311(a)(1)); and
                    (D) chapter 5 of title 3, United States Code, in 
                the case of a claim alleged by such individual for a 
                violation of section 411 of such title.
    (b) Procedures.--The procedures applicable to a claim alleged by an 
individual for a violation of this subtitle are--
            (1) the procedures applicable for a violation of title VII 
        of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.) in 
        the case of a claim alleged by such individual for a violation 
        of such title;
            (2) the procedures applicable for a violation of section 
        302(a)(1) of the Government Employee Rights Act of 1991 (42 
        U.S.C. 2000e-16b(a)(1)) in the case of a claim alleged by such 
        individual for a violation of such section;
            (3) the procedures applicable for a violation of section 
        201(a)(1) of the Congressional Accountability Act of 1995 (2 
        U.S.C. 1311(a)(1)) in the case of a claim alleged by such 
        individual for a violation of such section; and
            (4) the procedures applicable for a violation of section 
        411 of title 3, United States Code, in the case of a claim 
        alleged by such individual for a violation of such section.
    (c) Remedies.--
            (1) In any claim alleging a violation of section 374(a)(1) 
        or 374(b)(1) of this subtitle, an individual, or any person 
        acting on behalf of the individual as set forth in section 
        375(a) of this subtitle, may be awarded, as appropriate:
                    (A) An order enjoining the respondent from engaging 
                in the unlawful employment practice.
                    (B) Reimbursement of costs expended as a result of 
                the unlawful employment practice.
                    (C) An amount in liquidated damages not to exceed 
                $1,000 for each day of the violation.
                    (D) Reasonable attorney's fees (including expert 
                fees) and costs attributable to the pursuit of a claim 
                under this subtitle.
            (2) In any claim alleging a violation of any other 
        subsection of this subtitle, an individual, or any person 
        acting on behalf of the individual as set forth in section 
        375(a) of this subtitle, may be awarded, as appropriate, the 
        remedies available for a violation of title VII of the Civil 
        Rights Act of 1964 (42 U.S.C. 2000e et seq.), section 302(a)(1) 
        of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e-
        16b(a)(1)), section 201(a)(1) of the Congressional 
        Accountability Act of 1995 (2 U.S.C. 1311(a)(1)), and section 
        411 of title 3, United States Code, except that in a case in 
        which wages, salary, employment benefits, or other compensation 
        have not been denied or lost to the individual, damages may be 
        awarded in an amount not to exceed $5,000.

SEC. 376. FEDERAL AND STATE IMMUNITY.

    (a) Abrogation of State Immunity.--A State shall not be immune 
under the 11th Amendment to the Constitution from a suit brought in a 
Federal court of competent jurisdiction for a violation of this 
subtitle.
    (b) Waiver of State Immunity.--
            (1) In general.--
                    (A) Waiver.--A State's receipt or use of Federal 
                financial assistance for any program or activity of a 
                State shall constitute a waiver of sovereign immunity, 
                under the 11th Amendment to the Constitution or 
                otherwise, to a suit brought by an employee or 
                applicant for employment of that program or activity 
                under this subtitle for a remedy authorized under 
                section 375(c) of this subtitle.
                    (B) Definition.--In this paragraph, the term 
                ``program or activity'' has the meaning given the term 
                in section 606 of the Civil Rights Act of 1964 (42 
                U.S.C. 2000d-4a).
            (2) Effective date.--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.
    (c) Remedies Against State Officials.--An official of a State may 
be sued in the official capacity of the official by any employee or 
applicant for employment who has complied with the applicable 
procedures of this subtitle, for relief that is authorized under this 
subtitle.
    (d) Remedies Against the United States and the States.--
Notwithstanding any other provision of this subtitle, in an action or 
administrative proceeding against the United States or a State for a 
violation of this subtitle, remedies (including remedies at law and in 
equity) are available for the violation to the same extent as such 
remedies would be available against a non-governmental entity.

SEC. 377. RELATIONSHIP TO OTHER LAWS.

    This subtitle shall not invalidate or limit the rights, remedies, 
or procedures available to an individual claiming discrimination 
prohibited under any other Federal law or regulation or any law or 
regulation of a State or political subdivision of a State.

SEC. 378. SEVERABILITY.

    If any provision of this subtitle, or the application of the 
provision to any person or circumstance, is held to be invalid, the 
remainder of this subtitle and the application of the provision to any 
other person or circumstances shall not be affected by the invalidity.

SEC. 379. EFFECTIVE DATE.

    This subtitle shall take effect on the date of enactment of this 
Act and shall not apply to conduct occurring before the effective date.

                           TITLE IV--OFFSETS

 Subtitle A--28-Percent Limitation on Certain Deductions and Exclusions

SEC. 401. 28-PERCENT LIMITATION ON CERTAIN DEDUCTIONS AND EXCLUSIONS.

    (a) In General.--Part I of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new section:

``SEC. 69. LIMITATION ON CERTAIN DEDUCTIONS AND EXCLUSIONS.

    ``(a) In General.--In the case of an individual for any taxable 
year, if--
            ``(1) the taxpayer's adjusted gross income exceeds--
                    ``(A) $250,000 in the case of a joint return within 
                the meaning of section 6013,
                    ``(B) $225,000 in the case of a head of household 
                return,
                    ``(C) $125,000 in the case of a married filing 
                separately return, or
                    ``(D) $200,000 in all other cases, and
            ``(2) the taxpayer's adjusted taxable income for such 
        taxable year exceeds the minimum marginal rate amount, then the 
        tax imposed under section 1 with respect to such taxpayer for 
        such taxable year shall be increased by the amount determined 
        under subsection (b). If the taxpayer is subject to tax under 
        section 55, then in lieu of an increase in tax under section 1, 
        the tax imposed under section 55 with respect to such taxpayer 
        for such taxable year shall be increased by the amount 
        determined under subsection (c).
    ``(b) Additional Amount.--The amount determined under this 
subsection with respect to any taxpayer for any taxable year is the 
excess (if any) of--
            ``(1) the tax which would be imposed under section 1 with 
        respect to such taxpayer for such taxable year if `adjusted 
        taxable income' were substituted for `taxable income' each 
        place it appears therein, over
            ``(2) the sum of--
                    ``(A) the tax which would be imposed under such 
                section with respect to such taxpayer for such taxable 
                year on the greater of--
                            ``(i) taxable income, or
                            ``(ii) the minimum marginal rate amount, 
                        plus
                    ``(B) 28 percent of the excess (if any) of the 
                taxpayer's adjusted taxable income over the greater 
                of--
                            ``(i) the taxpayer's taxable income, or
                            ``(ii) the minimum marginal rate amount.
    ``(c) Additional AMT Amount.--
            ``(1) The amount determined under this subsection with 
        respect to any taxpayer for any taxable year is the additional 
        amount computed under subsection (b) multiplied by the ratio 
        that--
                    ``(A) the result of--
                            ``(i) all itemized deductions (before the 
                        application of section 68), plus
                            ``(ii) the specified above-the-line 
                        deductions and specified exclusions, minus
                            ``(iii) the amount of deductions disallowed 
                        under section 56(b)(1) (A) and (B), minus
                            ``(iv) the non-preference disallowed 
                        deductions, bears to--
                    ``(B) the sum of--
                            ``(i) the total of itemized deductions 
                        (after the application of section 68), plus
                            ``(ii) the specified above-the-line 
                        deductions and specified exclusions.
            ``(2) If the top of the AMT exemption phase-out range for 
        the taxpayer exceeds the minimum marginal rate amount for the 
        taxpayer and if the taxpayer's alternative minimum taxable 
        income does not exceed the top of the AMT exemption phase-out 
        range, the taxpayer must increase its additional AMT amount by 
        7 percent of the excess of--
                    ``(A) the lesser of--
                            ``(i) the top of the AMT exemption phase-
                        out range, or
                            ``(ii) the taxpayer's alternative minimum 
                        taxable income, computed--
                                    ``(I) without regard to any 
                                itemized deduction or any specified 
                                above-the-line deduction, and
                                    ``(II) by including the amount of 
                                any specified exclusion, over
                    ``(B) the greater of--
                            ``(i) the taxpayer's alternative minimum 
                        taxable income, or
                            ``(ii) the minimum marginal rate amount.
    ``(d) Minimum Marginal Rate Amount.--For purposes of this section, 
the term `minimum marginal rate amount' means, with respect to any 
taxpayer for any taxable year, the highest amount of the taxpayer's 
taxable income which would be subject to a marginal rate of tax under 
section 1 that is less than 36 percent with respect to such taxable 
year.
    ``(e) Adjusted Taxable Income.--For purposes of this section--
            ``(1) In general.--The term `adjusted taxable income' means 
        taxable income computed--
                    ``(A) without regard to any itemized deduction or 
                any specified above-the-line deduction, and
                    ``(B) by including in gross income any specified 
                exclusion.
            ``(2) Specified above-the-line deduction.--The term 
        `specified above-the-line deduction' means--
                    ``(A) the deduction provided under section 162(l) 
                (relating to special rules for health insurance costs 
                of self-employed individuals),
                    ``(B) the deduction provided under section 199 
                (relating to income attributable to domestic production 
                activities), and
                    ``(C) the deductions provided under the following 
                paragraphs of section 62(a):
                            ``(i) Paragraph (2) (relating to certain 
                        trade and business deductions of employees), 
                        other than subparagraph (A) thereof.
                            ``(ii) Paragraph (15) (relating to moving 
                        expenses).
                            ``(iii) Paragraph (16) (relating to Archer 
                        MSAs).
                            ``(iv) Paragraph (17) (relating to interest 
                        on education loans).
                            ``(v) Paragraph (18) (relating to higher 
                        education expenses).
                            ``(vi) Paragraph (19) (relating to health 
                        savings accounts).
            ``(3) Specified exclusion.--The term `specified exclusion' 
        means--
                    ``(A) any interest excluded under section 103,
                    ``(B) any exclusion with respect to the cost 
                described in section 6051(a)(14) (without regard to 
                subparagraph (B) thereof), and
                    ``(C) any foreign earned income excluded under 
                section 911.
    ``(f) Non-Preference Disallowed Deductions.--For purposes of this 
section, the term `AMT-allowed deductions' means all itemized 
deductions disallowed by section 68 multiplied by the ratio that--
            ``(1) a taxpayer's itemized deductions for the taxable year 
        that are subject to section 68 (that is, not including those 
        excluded under section 68(c)) and that are not limited under 
        section 56(b)(1) (A) or (B), bears to
            ``(2) the taxpayer's itemized deductions for the taxable 
        year that are subject to section 68 (that is, not including 
        those excluded under section 68(c)).
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out this section, including regulations 
which provide appropriate adjustments to the additional AMT amount.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning on or after January 1, 2015.

Subtitle B--Tax Carried Interest in Investment Partnerships as Ordinary 
                                 Income

SEC. 411. PARTNERSHIP INTERESTS TRANSFERRED IN CONNECTION WITH 
              PERFORMANCE OF SERVICES.

    (a) Modification to Election To Include Partnership Interest in 
Gross Income in Year of Transfer.--Section 83(c) of the Internal 
Revenue Code of 1986 is amended by redesignating paragraph (4) as 
paragraph (5) and by inserting after paragraph (3) the following new 
paragraph:
            ``(4) Partnership interests.--Except as provided by the 
        Secretary--
                    ``(A) In general.--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--
                            ``(i) 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
                            ``(ii) 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.
                    ``(B) Election.--The election under subparagraph 
                (A)(ii) shall be made under rules similar to the rules 
                of subsection (b)(2).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to interests in partnerships transferred after December 31, 2015.

SEC. 412. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT MANAGEMENT 
              SERVICES TO PARTNERSHIPS.

    (a) In General.--Part I of subchapter K of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new section:

``SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT MANAGEMENT 
              SERVICES TO PARTNERSHIPS.

    ``(a) Treatment of Distributive Share of Partnership Items.--For 
purposes of this title, in the case of an investment services 
partnership interest--
            ``(1) In general.--Notwithstanding section 702(b)--
                    ``(A) 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
                    ``(B) 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.
            ``(2) Recharacterization of losses limited to 
        recharacterized gains.--The amount treated as ordinary loss 
        under paragraph (1)(B) for any taxable year shall not exceed 
        the excess (if any) of--
                    ``(A) 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
                    ``(B) 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.
            ``(3) Allocation to items of gain and loss.--
                    ``(A) Net capital gain.--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.
                    ``(B) Net capital loss.--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.
            ``(4) Terms relating to capital gains and losses.--For 
        purposes of this section--
                    ``(A) In general.--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--
                            ``(i) without regard to the 
                        recharacterization of any item as ordinary 
                        income or ordinary loss under this section,
                            ``(ii) 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,
                            ``(iii) by treating property which is taken 
                        into account in determining gains and losses to 
                        which section 1231 applies as capital assets 
                        held for more than 1 year, and
                            ``(iv) without regard to section 1202.
                    ``(B) Net capital loss.--The term `net capital 
                loss' means the excess of the losses from sales or 
                exchanges of capital assets over the gains from such 
                sales or exchanges. Rules similar to the rules of 
                clauses (i) through (iv) of subparagraph (A) shall 
                apply for purposes of the preceding sentence.
            ``(5) Special rules for dividends.--
                    ``(A) Individuals.--Any dividend allocated to any 
                investment services partnership interest shall not be 
                treated as qualified dividend income for purposes of 
                section 1(h).
                    ``(B) Corporations.--No deduction shall be allowed 
                under section 243 or 245 with respect to any dividend 
                allocated to any investment services partnership 
                interest.
    ``(b) Dispositions of Partnership Interests.--
            ``(1) Gain.--
                    ``(A) In general.--Any gain on the disposition of 
                an investment services partnership interest shall be--
                            ``(i) treated as ordinary income, and
                            ``(ii) recognized notwithstanding any other 
                        provision of this subtitle.
                    ``(B) Exceptions; certain transfers to charities 
                and related persons.--Subparagraph (A) shall not apply 
                to--
                            ``(i) a disposition by gift,
                            ``(ii) a transfer at death, or
                            ``(iii) other disposition identified by the 
                        Secretary as a disposition with respect to 
                        which it would be inconsistent with the 
                        purposes of this section to apply subparagraph 
                        (A), if such gift, transfer, or other 
                        disposition is to an organization described in 
                        section 170(b)(1)(A) (other than any 
                        organization described in section 509(a)(3) or 
                        any fund or account described in section 
                        4966(d)(2)) or a person with respect to whom 
                        the transferred interest is an investment 
                        services partnership interest.
            ``(2) Loss.--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--
                    ``(A) 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
                    ``(B) 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.
            ``(3) Election with respect to certain exchanges.--
        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--
                    ``(A) the taxpayer makes an irrevocable election to 
                treat the partnership interest received in the exchange 
                as an investment services partnership interest, and
                    ``(B) the taxpayer agrees to comply with such 
                reporting and recordkeeping requirements as the 
                Secretary may prescribe.
            ``(4) Distributions of partnership property.--
                    ``(A) In general.--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--
                            ``(i) the fair market value of such 
                        property at the time of such distribution, over
                            ``(ii) the adjusted basis of such property 
                        in the hands of such partner (determined 
                        without regard to subparagraph (C)).
                    ``(B) Treatment of gain as ordinary income.--Any 
                gain recognized by such partner under subparagraph (A) 
                shall be treated as ordinary income to the same extent 
                and in the same manner as the increase in such 
                partner's distributive share of the taxable income of 
                the partnership would be treated under subsection (a) 
                if, immediately prior to the distribution, the 
                partnership had sold the distributed property at fair 
                market value and all of the gain from such disposition 
                were allocated to such partner. For purposes of 
                applying paragraphs (2) and (3) of subsection (a), any 
                gain treated as ordinary income under this subparagraph 
                shall be treated as an amount treated as ordinary 
                income under subsection (a)(1)(A).
                    ``(C) Adjustment of basis.--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.
                    ``(D) Special rules with respect to mergers, 
                divisions, and technical terminations.--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).
    ``(c) Investment Services Partnership Interest.--For purposes of 
this section--
            ``(1) In general.--The term `investment services 
        partnership interest' 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--
                    ``(A) 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,
                    ``(B) 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
                    ``(C) 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.
            ``(2) Businesses to which this section applies.--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):
                    ``(A) Advising as to the advisability of investing 
                in, purchasing, or selling any specified asset.
                    ``(B) Managing, acquiring, or disposing of any 
                specified asset.
                    ``(C) Arranging financing with respect to acquiring 
                specified assets.
                    ``(D) Any activity in support of any service 
                described in subparagraphs (A) through (C).
            ``(3) Investment partnership.--
                    ``(A) In general.--The term `investment 
                partnership' means any partnership if, at the end of 
                any calendar quarter ending after December 31, 2014--
                            ``(i) 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
                            ``(ii) more than half of the contributed 
                        capital of the partnership is attributable to 
                        contributions of property by one or more 
                        persons in exchange for interests in the 
                        partnership which (in the hands of such 
                        persons) constitute property held for the 
                        production of income.
                    ``(B) Special rules for determining if property 
                held for the production of income.--Except as otherwise 
                provided by the Secretary, for purposes of determining 
                whether any interest in a partnership constitutes 
                property held for the production of income under 
                subparagraph (A)(ii)--
                            ``(i) any election under subsection (e) or 
                        (f) of section 475 shall be disregarded, and
                            ``(ii) paragraph (5)(B) shall not apply.
                    ``(C) Antiabuse rules.--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.
                    ``(D) Controlled groups of entities.--
                            ``(i) In general.--In the case of a 
                        controlled group of entities, if an interest in 
                        the partnership received in exchange for a 
                        contribution to the capital of the partnership 
                        by any member of such controlled group would 
                        (in the hands of such member) constitute 
                        property not held for the production of income, 
                        then any interest in such partnership held by 
                        any member of such group shall be treated for 
                        purposes of subparagraph (A) as constituting 
                        (in the hands of such member) property not held 
                        for the production of income.
                            ``(ii) Controlled group of entities.--For 
                        purposes of clause (i), the term `controlled 
                        group of entities' 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).
            ``(4) Specified asset.--The term `specified asset' 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.
            ``(5) Related persons.--
                    ``(A) In general.--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).
                    ``(B) Attribution of partner services.--Any service 
                described in paragraph (2) which is provided by a 
                partner of a partnership shall be treated as also 
                provided by such partnership.
    ``(d) Exception for Certain Capital Interests.--
            ``(1) In general.--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--
                    ``(A) 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
                    ``(B) the allocations made to such other interests 
                are significant compared to the allocations made to 
                such qualified capital interest.
            ``(2) Authority to provide exceptions to allocation 
        requirements.--To the extent provided by the Secretary in 
        regulations or other guidance--
                    ``(A) Allocations to portion of qualified capital 
                interest.--Paragraph (1) may be applied separately with 
                respect to a portion of a qualified capital interest.
                    ``(B) No or insignificant allocations to nonservice 
                providers.--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.
                    ``(C) Allocations to service providers' qualified 
                capital interests which are less than other 
                allocations.--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.
            ``(3) Special rule for changes in services and capital 
        contributions.--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).
            ``(4) Special rule for tiered partnerships.--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.
            ``(5) Exception for no-self-charged carry and management 
        fee provisions.--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).
            ``(6) Special rule for dispositions.--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--
                    ``(A) 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
                    ``(B) 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.
            ``(7) Qualified capital interest.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified capital 
                interest' means so much of a partner's interest in the 
                capital of the partnership as is attributable to--
                            ``(i) 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)),
                            ``(ii) any amounts which have been included 
                        in gross income under section 83 with respect 
                        to the transfer of such interest, and
                            ``(iii) the excess (if any) of--
                                    ``(I) any items of income and gain 
                                taken into account under section 702 
                                with respect to such interest, over
                                    ``(II) any items of deduction and 
                                loss so taken into account.
                    ``(B) Adjustment to qualified capital interest.--
                            ``(i) Distributions and losses.--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).
                            ``(ii) Special rule for contributions of 
                        property.--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.
                    ``(C) Technical terminations, etc., disregarded.--
                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.
            ``(8) Treatment of certain loans.--
                    ``(A) Proceeds of partnership loans not treated as 
                qualified capital interest of service providing 
                partners.--For purposes of this subsection, an 
                investment services partnership interest shall not be 
                treated as a qualified capital interest to the extent 
                that such interest is acquired in connection with the 
                proceeds of any loan or other advance made or 
                guaranteed, directly or indirectly, by any other 
                partner or the partnership (or any person related to 
                any such other partner or the partnership). The 
                preceding sentence shall not apply to the extent the 
                loan or other advance is repaid before January 1, 2017, 
                unless such repayment is made with the proceeds of a 
                loan or other advance described in the preceding 
                sentence.
                    ``(B) Reduction in allocations to qualified capital 
                interests for loans from nonservice-providing partners 
                to the partnership.--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.
    ``(e) Other Income and Gain in Connection With Investment 
Management Services.--
            ``(1) In general.--If--
                    ``(A) a person performs (directly or indirectly) 
                investment management services for any investment 
                entity,
                    ``(B) such person holds (directly or indirectly) a 
                disqualified interest with respect to such entity, and
                    ``(C) the value of such interest (or payments 
                thereunder) is substantially related to the amount of 
                income or gain (whether or not realized) from the 
                assets with respect to which the investment management 
                services are performed, any income or gain with respect 
                to such interest shall be treated as ordinary income. 
                Rules similar to the rules of subsections (a)(5) and 
                (d) shall apply for purposes of this subsection.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Disqualified interest.--
                            ``(i) In general.--The term `disqualified 
                        interest' means, with respect to any investment 
                        entity--
                                    ``(I) any interest in such entity 
                                other than indebtedness,
                                    ``(II) convertible or contingent 
                                debt of such entity,
                                    ``(III) any option or other right 
                                to acquire property described in 
                                subclause (I) or (II), and
                                    ``(IV) any derivative instrument 
                                entered into (directly or indirectly) 
                                with such entity or any investor in 
                                such entity.
                            ``(ii) Exceptions.--Such term shall not 
                        include--
                                    ``(I) a partnership interest,
                                    ``(II) except as provided by the 
                                Secretary, any interest in a taxable 
                                corporation, and
                                    ``(III) except as provided by the 
                                Secretary, stock in an S corporation.
                    ``(B) Taxable corporation.--The term `taxable 
                corporation' means--
                            ``(i) a domestic C corporation, or
                            ``(ii) a foreign corporation substantially 
                        all of the income of which is--
                                    ``(I) effectively connected with 
                                the conduct of a trade or business in 
                                the United States, or
                                    ``(II) subject to a comprehensive 
                                foreign income tax (as defined in 
                                section 457A(d)(2)).
                    ``(C) Investment management services.--The term 
                `investment management services' means a substantial 
                quantity of any of the services described in subsection 
                (c)(2).
                    ``(D) Investment entity.--The term `investment 
                entity' means any entity which, if it were a 
                partnership, would be an investment partnership.
    ``(f) Regulations.--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--
            ``(1) provide modifications to the application of this 
        section (including treating related persons as not related to 
        one another) to the extent such modification is consistent with 
        the purposes of this section, and
            ``(2) coordinate this section with the other provisions of 
        this title.
    ``(g) Cross Reference.--For 40-percent penalty on certain 
underpayments due to the avoidance of this section, see section 
6662.''.
    (b) Application of Section 751 to Indirect Dispositions of 
Investment Services Partnership Interests.--
            (1) In general.--Section 751(a) of such Code is amended by 
        striking ``or'' at the end of paragraph (1), by inserting 
        ``or'' at the end of paragraph (2), and by inserting after 
        paragraph (2) the following new paragraph:
            ``(3) investment services partnership interests held by the 
        partnership,''.
            (2) Certain distributions treated as sales or exchanges.--
        Section 751(b)(1)(A) of such Code is amended by striking ``or'' 
        at the end of clause (i), by inserting ``or'' at the end of 
        clause (ii), and by inserting after clause (ii) the following 
        new clause:
                            ``(iii) investment services partnership 
                        interests held by the partnership,''.
            (3) Application of special rules in the case of tiered 
        partnerships.--Section 751(f) of such Code is amended by 
        striking ``or'' at the end of paragraph (1), by inserting 
        ``or'' at the end of paragraph (2), and by inserting after 
        paragraph (2) the following new paragraph:
            ``(3) investment services partnership interests held by the 
        partnership,''.
            (4) Investment services partnership interests; qualified 
        capital interests.--Section 751 of such Code is amended by 
        adding at the end the following new subsection:
    ``(g) Investment Services Partnership Interests.--For purposes of 
this section--
            ``(1) In general.--The term `investment services 
        partnership interest' has the meaning given such term by 
        section 710(c).
            ``(2) Adjustments for qualified capital interests.--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)).
            ``(3) Recognition of gains.--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.
            ``(4) Coordination with inventory items.--An investment 
        services partnership interest held by the partnership shall not 
        be treated as an inventory item of the partnership.
            ``(5) Prevention of double counting.--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.''.
    (c) Treatment for Purposes of Section 7704.--Section 7704(d) of 
such Code is amended by adding at the end the following new paragraph:
            ``(6) Income from certain carried interests not 
        qualified.--
                    ``(A) In general.--Specified carried interest 
                income shall not be treated as qualifying income.
                    ``(B) Specified carried interest income.--For 
                purposes of this paragraph--
                            ``(i) In general.--The term `specified 
                        carried interest income' means--
                                    ``(I) any item of income or gain 
                                allocated to an investment services 
                                partnership interest (as defined in 
                                section 710(c)) held by the 
                                partnership,
                                    ``(II) 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
                                    ``(III) any income or gain taken 
                                into account by the partnership under 
                                subsection (b)(4) or (e) of section 
                                710.
                            ``(ii) Exception for qualified capital 
                        interests.--A rule similar to the rule of 
                        section 710(d) shall apply for purposes of 
                        clause (i).
                    ``(C) Coordination with other provisions.--
                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)).
                    ``(D) Special rules for certain partnerships.--
                            ``(i) Certain partnerships owned by real 
                        estate investment trusts.--Subparagraph (A) 
                        shall not apply in the case of a partnership 
                        which meets each of the following requirements:
                                    ``(I) 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.
                                    ``(II) 50 percent or more of the 
                                capital and profits interests of such 
                                partnership are owned, directly or 
                                indirectly, at all times during the 
                                taxable year by such real estate 
                                investment trust (determined with the 
                                application of section 267(c)).
                                    ``(III) Such partnership meets the 
                                requirements of paragraphs (2), (3), 
                                and (4) of section 856(c).
                            ``(ii) Certain partnerships owning other 
                        publicly traded partnerships.--Subparagraph (A) 
                        shall not apply in the case of a partnership 
                        which meets each of the following requirements:
                                    ``(I) 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)).
                                    ``(II) Substantially all of the 
                                income of such partnership is ordinary 
                                income or section 1231 gain (as defined 
                                in section 1231(a)(3)).
                    ``(E) Transitional rule.--Subparagraph (A) shall 
                not apply to any taxable year of the partnership 
                beginning before the date which is 10 years after 
                January 1, 2016.''.
    (d) Imposition of Penalty on Underpayments.--
            (1) In general.--Section 6662(b) of such Code is amended by 
        inserting after paragraph (7) the following new paragraph:
            ``(8) The application of section 710(e) or the regulations 
        or other guidance prescribed under section 710(h) to prevent 
        the avoidance of the purposes of section 710.''.
            (2) Amount of penalty.--
                    (A) In general.--Section 6662 of such Code is 
                amended by adding at the end the following new 
                subsection:
    ``(k) Increase in Penalty in Case of Property Transferred for 
Investment Management Services.--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 `40 percent' for `20 percent'.''.
                    (B) Conforming amendment.--Section 6662A(e)(2)(B) 
                is amended by striking ``or (i)'' and inserting ``, 
                (i), or (k)''.
            (3) Special rules for application of reasonable cause 
        exception.--Section 6664(c) is amended--
                    (A) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively;
                    (B) by striking ``paragraph (3)'' in paragraph 
                (5)(A), as so redesignated, and inserting ``paragraph 
                (4)''; and
                    (C) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) Special rule for underpayments attributable to 
        investment management services.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                any portion of an underpayment to which section 6662 
                applies by reason of subsection (b)(8) unless--
                            ``(i) the relevant facts affecting the tax 
                        treatment of the item are adequately disclosed,
                            ``(ii) there is or was substantial 
                        authority for such treatment, and
                            ``(iii) the taxpayer reasonably believed 
                        that such treatment was more likely than not 
                        the proper treatment.
                    ``(B) Rules relating to reasonable belief.--Rules 
                similar to the rules of subsection (d)(3) shall apply 
                for purposes of subparagraph (A)(iii).''.
    (e) Income and Loss From Investment Services Partnership Interests 
Taken Into Account in Determining Net Earnings From Self-Employment.--
            (1) Internal revenue code.--
                    (A) In general.--Section 1402(a) of such Code is 
                amended by striking ``and'' at the end of paragraph 
                (16), by striking the period at the end of paragraph 
                (17) and inserting ``; and'', and by inserting after 
                paragraph (17) the following new paragraph:
            ``(18) 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.''.
                    (B) Investment services partnership income or 
                loss.--Section 1402 of such Code is amended by adding 
                at the end the following new subsection:
    ``(m) Investment Services Partnership Income or Loss.--For purposes 
of subsection (a)--
            ``(1) In general.--The term `investment services 
        partnership income or loss' means, with respect to any 
        investment services partnership interest (as defined in section 
        710(c)), the net of--
                    ``(A) the amounts treated as ordinary income or 
                ordinary loss under subsections (b) and (e) of section 
                710 with respect to such interest,
                    ``(B) all items of income, gain, loss, and 
                deduction allocated to such interest, and
                    ``(C) 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.
            ``(2) Exception for qualified capital interests.--A rule 
        similar to the rule of section 710(d) shall apply for purposes 
        of applying paragraph (1)(B)(ii).''.
            (2) Social security act.--Section 211(a) of the Social 
        Security Act is amended by striking ``and'' at the end of 
        paragraph (15), by striking the period at the end of paragraph 
        (16) and inserting ``; and'', and by inserting after paragraph 
        (16) the following new paragraph:
            ``(17) 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.''.
    (f) Conforming Amendments.--
            (1) Subsection (d) of section 731 of the Internal Revenue 
        Code of 1986 is amended by inserting ``section 710(b)(4) 
        (relating to distributions of partnership property),'' after 
        ``to the extent otherwise provided by''.
            (2) Section 741 of such Code is amended by inserting ``or 
        section 710 (relating to special rules for partners providing 
        investment management services to partnerships)'' before the 
        period at the end.
            (3) The table of sections for part I of subchapter K of 
        chapter 1 of such Code is amended by adding at the end the 
        following new item:

``Sec. 710. Special rules for partners providing investment management 
                            services to partnerships.''.
    (g) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        taxable years ending after December 31, 2015.
            (2) Partnership taxable years which include effective 
        date.--In applying section 710(a) of such Code (as added by 
        this section) in the case of any partnership taxable year which 
        includes January 1, 2016, the amount of the net income referred 
        to in such section shall be treated as being the lesser of the 
        net income for the entire partnership taxable year or the net 
        income determined by only taking into account items 
        attributable to the portion of the partnership taxable year 
        which is after such date.
            (3) Dispositions of partnership interests.--
                    (A) In general.--Section 710(b) of such Code (as 
                added by this section) shall apply to dispositions and 
                distributions after December 31, 2015.
                    (B) Indirect dispositions.--The amendments made by 
                subsection (b) shall apply to transactions after 
                December 31, 2015.
            (4) Other income and gain in connection with investment 
        management services.--Section 710(e) of such Code (as added by 
        this section) shall take effect on January 1, 2016.

       Subtitle C--Close Loophole for Corporate Jet Depreciation

SEC. 421. GENERAL AVIATION AIRCRAFT TREATED AS 7-YEAR PROPERTY.

    (a) In General.--Section 168(e)(3)(C) of the Internal Revenue Code 
of 1986 is amended by striking ``and'' at the end of clause (iv), by 
redesignating clause (v) as clause (vi), and by inserting after clause 
(iv) the following new clause:
    ``(v) any general aviation aircraft, and''.
    (b) Class Life.--Section 168(g)(3) of such Code is amended by 
inserting after subparagraph (E) the following new subparagraph:
                    ``(F) General aviation aircraft. In the case of any 
                general aviation aircraft, the recovery period used for 
                purposes of paragraph (2) shall be 12 years.''.
    (c) General Aviation Aircraft.--Section 168(i) of such Code is 
amended by inserting after paragraph (19) the following new paragraph:
            ``(20) General aviation aircraft.--The term `general 
        aviation aircraft' means any airplane or helicopter (including 
        airframes and engines) not used in commercial or contract 
        carrying of passengers or freight, but which primarily engages 
        in the carrying of passengers.''.
    (d) Effective Date.--This section shall be effective for property 
placed in service after December 31, 2015.

                    Subtitle D--Repeal Oil Subsidies

SEC. 431. REPEAL OF DEDUCTION FOR INTANGIBLE DRILLING AND DEVELOPMENT 
              COSTS IN THE CASE OF OIL AND GAS WELLS.

    (a) In General.--Section 263(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new sentence: ``This 
subsection shall not apply in the case of oil and gas wells with 
respect to amounts paid or incurred after December 31, 2015.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred after December 31, 2015.

SEC. 432. REPEAL OF DEDUCTION FOR TERTIARY INJECTANTS.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by striking section 193 
(relating to tertiary injectants).
    (b) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 of such Code is amended by striking the item 
relating to section 193.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2015.

SEC. 433. REPEAL OF PERCENTAGE DEPLETION FOR OIL AND GAS WELLS.

    (a) In General.--Section 613A of the Internal Revenue Code of 1986 
is amended to read as follows:

``SEC. 613A. PERCENTAGE DEPLETION NOT ALLOWED IN CASE OF OIL AND GAS 
              WELLS.

    ``The allowance for depletion under section 611 with respect to any 
oil and gas well shall be computed without regard to section 613.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2015.

SEC. 434. SECTION 199 DEDUCTION NOT ALLOWED WITH RESPECT TO OIL, 
              NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

    (a) In General.--Section 199(c)(4)(B) of the Internal Revenue Code 
of 1986 (relating to income attributable to domestic production 
activities) is amended--
            (1) by striking ``or'' at the end of clause (ii),
            (2) by striking the period at the end of clause (iii) and 
        inserting in lieu thereof ``, or'', and
            (3) by adding at the end thereof the following new clause:
                            ``(iv) the production, refining, 
                        processing, transportation, or distribution of 
                        oil, natural gas, or any primary product 
                        (within the meaning of subsection (d)(9)) 
                        thereof.''.
    (b) Conforming Amendment.--Paragraph (9) of section 199(d) is 
amended to read as follows:
            ``(9) Primary product.--For purposes of subsection 
        (c)(4)(B)(iv), the term `primary product' has the same meaning 
        as when used in section 927(a)(2)(C), as in effect before its 
        repeal.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 435. REPEAL OIL AND GAS WORKING INTEREST EXCEPTION TO PASSIVE 
              ACTIVITY RULES.

    (a) In General.--Section 469(c)(3) of the Internal Revenue Code of 
1986 is amended by adding at the end thereof the following new 
subparagraph--
                    ``(C) Termination.--Subparagraph (A) shall not 
                apply for any taxable year beginning after December 31 
                2015.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2015.

SEC. 436. REPEAL ENHANCED OIL RECOVERY CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by striking section 43.
    (b) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
striking the item relating to section 43.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 437. UNIFORM SEVEN-YEAR AMORTIZATION FOR GEOLOGICAL AND 
              GEOPHYSICAL EXPENDITURES.

    (a) In General.--Section 167(h)(1) of the Internal Revenue Code of 
1986 is amended by striking ``24-month'' and inserting in lieu thereof 
``7-year''.
    (b) Conforming Amendments.--Section 167(h) of such Code is 
amended--
            (1) by striking ``24-month'' in paragraph (4) and inserting 
        ``7-year'', and
            (2) by striking paragraph (5).
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2015.

SEC. 438. REPEAL MARGINAL WELL PRODUCTION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by striking section 
45I.
    (b) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
striking the item relating to section 45I.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

                  Subtitle E--Dual Capacity Taxpayers

SEC. 441. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO DUAL 
              CAPACITY TAXPAYERS.

    (a) In General.--Section 901 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (n) as subsection (o) and by 
inserting after subsection (m) the following new subsection:
    ``(n) Special Rules Relating to Dual Capacity Taxpayers.--
            ``(1) General rule.--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.
            ``(2) Dual capacity taxpayer.--For purposes of this 
        subsection, the term `dual capacity taxpayer' means, with 
        respect to any foreign country or possession of the United 
        States, a person who--
                    ``(A) is subject to a levy of such country or 
                possession, and
                    ``(B) receives (or will receive) directly or 
                indirectly a specific economic benefit (as determined 
                in accordance with regulations) from such country or 
                possession.
            ``(3) Regulations.--The Secretary may issue such 
        regulations or other guidance as is necessary or appropriate to 
        carry out the purposes of this subsection.''.
    (b) Contrary Treaty Obligations Upheld.--The amendments made by 
this section shall not apply to the extent contrary to any treaty 
obligation of the United States.
    (c) Effective Date.--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, 2015.

SEC. 442. SEPARATE BASKET TREATMENT TAXES PAID ON FOREIGN OIL AND GAS 
              INCOME.

    (a) Separate Basket for Foreign Tax Credit.--Section 904(d)(1) of 
the Internal Revenue Code of 1986 is amended by striking ``and'' at the 
end of subparagraph (A), by striking the period at the end of 
subparagraph (B) and inserting ``, and'', and by adding at the end the 
following:
                    ``(C) combined foreign oil and gas income (as 
                defined in section 907(b)(1)).''.
    (b) Coordination.--Section 904(d)(2) of such Code is amended by 
inserting after subparagraph (I) the following new subparagraph:
                    ``(J) Coordination with combined foreign oil and 
                gas income.--For purposes of this section, passive 
                category income and general category income shall not 
                include combined foreign oil and gas income (as defined 
                in section 907(b)(1)).''.
    (c) Conforming Amendments.--
            (1) Section 907(a) is hereby repealed.
            (2) Section 907(c)(4) is hereby repealed.
            (3) Section 907(f) is hereby repealed.
    (d) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after December 31, 2015.
            (2) Transitional rules.--
                    (A) Carryovers.--Any unused foreign oil and gas 
                taxes which under section 907(f) of such Code (as in 
                effect before the amendment made by subsection (c)(3)) 
                would have been allowable as a carryover to the 
                taxpayer's first taxable year beginning after December 
                31, 2013 (without regard to the limitation of paragraph 
                (2) of such section 907(f) for first taxable year), 
                shall be allowed as carryovers under section 904(c) of 
                such Code in the same manner as if such taxes were 
                unused taxes under such section 904(c) with respect to 
                foreign oil and gas extraction income.
                    (B) Losses.--The amendment made by subsection 
                (c)(2) shall not apply to foreign oil and gas 
                extraction losses arising in taxable years beginning on 
                or before the date of the enactment of this Act.

                  Subtitle F--Repeal of Sequestration

SEC. 451. REPEAL OF SEQUESTRATION.

    Section 251A of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is repealed.
                                 <all>