I 

112TH CONGRESS 

1ST SESSION H. R. 3638 

To create American jobs and reduce the deficit, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 13, 2011 

Mr. GRIJALVA (for himself and Mr. ELLISON) introduced the following bill; 

which was referred to the Committee on Ways and Means, and in addition to the Committees on Education and the Workforce, Natural Resources, Agriculture, the Judiciary, Science, Space, and Technology, Energy and Commerce, Oversight and Government Reform, Small Business, 

Transportation and Infrastructure, Financial Services, Veterans’ Affairs, 

the Budget, Armed Services, and Foreign Affairs, 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 create American jobs and reduce the deficit, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Restore the American Dream for the 99% Act’’ or the 

6 ‘‘Act for the 99%’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; Table of contents. 

TITLE I—EMERGENCY JOB CREATION TO REBUILD AMERICA 

Subtitle A—Emergency Jobs to Restore the American Dream Act 

Sec. 1001. Short title. 

PART 1—SCHOOL IMPROVEMENT CORPS

Sec. 1011. Purpose. 

Sec. 1012. Definitions. 

SUBPART A—GRANTS FOR MODERNIZATION, RENOVATION, OR REPAIR OF

PUBLIC SCHOOL FACILITIES

Sec. 1021. Purpose. 

Sec. 1022. Allocation of funds. 

Sec. 1023. Allowable uses of funds. 

Sec. 1024. Priority projects. 

SUBPART B—GRANTS FOR MAINTENANCE COSTS

Sec. 1031. Allocation to States. 

Sec. 1032. Allowable uses of funds. 

SUBPART C—GENERAL PROVISIONS

Sec. 1041. Supplement, not supplant. 

Sec. 1042. Prohibition regarding State aid. 

Sec. 1043. Maintenance of effort. 

Sec. 1044. Special rules on contracting. 

Sec. 1045. Use of American iron, steel, and manufactured goods. 

Sec. 1046. Labor standards; compliance with existing statutes. 

Sec. 1047. Charter schools. 

Sec. 1048. Green schools. 

Sec. 1049. Reporting. 

Sec. 1050. Special rules. 

Sec. 1051. Promotion of employment experiences. 

Sec. 1052. Availability of funds. 

Sec. 1053. Alternate distribution of funds. 

PART 2—STUDENT JOBS CORPS

Sec. 1061. Student Jobs Corps. 

PART 3—PUBLIC LANDS CORPS AND CIVILIAN CONSERVATION CORPS

Sec. 1071. Appropriation of additional funds for existing Public Lands Corps. 

Sec. 1072. Establishment and operation of new Civilian Conservation Corps. 

PART 4—NEIGHBORHOOD HEROES CORPS

Sec. 1081. Teacher Corps. 


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Sec. 1082. Appropriation of additional funds for Community Oriented Policing 

Services. 

Sec. 1083. Firefighters Corps. 

PART 5—HEALTH CARE CORPS

Sec. 1091. Purpose. 

Sec. 1092. Health care and long-term care providers. 

Sec. 1093. Supplement, not supplant. 

PART 6—COMMUNITY CORPS

Sec. 1101. Purpose. 

Sec. 1102. Community Corps. 

Sec. 1103. Application. 

Sec. 1104. Activities of the Community Corps. 

Sec. 1105. Hiring and preferences. 

Sec. 1106. Additional requirements for States and units of general local government. 

Sec. 1107. Employment status and compensation. 

Sec. 1108. Nondisplacement of existing employees. 

Sec. 1109. Dispute resolutions, whistleblower hotline, and enforcement by the 

Secretary. 

Sec. 1110. Definitions. 

PART 7—CHILD DEVELOPMENT CORPS

Sec. 1121. Purpose. 

Sec. 1122. Child Development Corps. 

PART 8—ON-THE-JOB TRAINING

Sec. 1131. Appropriation. 

PART 9—GENERAL PROVISIONS

Sec. 1141. General requirements for entities receiving funding under this subtitle. 

Sec. 1142. Reporting. 

Sec. 1143. Hiring and preferences. 

Sec. 1144. Flexibility on hiring. 

Sec. 1145. Nondisplacement. 

Sec. 1146. Employment status and compensation in new programs. 

Sec. 1147. Dispute resolutions, whistleblower hotline, and enforcement by the 

Secretary. 

Sec. 1148. Termination. 

Subtitle B—Buy American Enhancement Act of 2011 

Sec. 1201. Short title. 

Sec. 1202. Domestic content requirement for the Buy American Act. 

Sec. 1203. Requirement for indirect contracts to comply with the Buy American Act. 

Sec. 1204. Buy American waiver reporting requirement. 

Sec. 1205. Implementation through the Federal Acquisition Regulation. 

Sec. 1206. Definitions. 

Subtitle C—Fairness and Transparency in Contracting Act of 2011 


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Sec. 1301. Short title. 

Sec. 1302. Definitions. 

Sec. 1303. Purpose. 

Sec. 1304. Definition of small business concern and status review. 

Sec. 1305. Notification. 

Sec. 1306. Reporting. 

Sec. 1307. List of contractors. 

Sec. 1308. Contracting databases. 

Sec. 1309. Enforcement. 

Subtitle D—National Infrastructure Development Bank Act of 2011 

Sec. 1401. Short title. 

Sec. 1402. Findings. 

Sec. 1403. Definitions. 

Sec. 1404. Establishment of national infrastructure development bank. 

Sec. 1405. Board of directors. 

Sec. 1406. Executive committee. 

Sec. 1407. Risk management committee. 

Sec. 1408. Audit Committee. 

Sec. 1409. Personnel. 

Sec. 1410. Eligibility criteria for assistance from Bank. 

Sec. 1411. Exemption from local taxation. 

Sec. 1412. Status and applicability of certain Federal laws; no full faith and 

credit. 

Sec. 1413. Compliance with Davis-Bacon Act. 

Sec. 1414. Applicability of certain State laws. 

Sec. 1415. Audits; Reports to President and Congress. 

Sec. 1416. Capitalization of bank. 

Sec. 1417. Sunset. 

Subtitle E—Wounded Veteran Job Security Act 

Sec. 1501. Short title. 

Sec. 1502. Expansion of definition of service in uniformed services for purposes 

of USERRA. 

Sec. 1503. Documentation of treatment for purposes of reemployment under 

USERRA. 

Sec. 1504. Notification of employer of intent to return to a position of employment. 

Sec. 1505. Effective date. 

Subtitle F—Emergency Unemployment Compensation Extension Act of 2011 

Sec. 1601. Short title. 

Sec. 1602. Extension of emergency unemployment compensation program. 

Sec. 1603. Temporary extension of extended benefit provisions. 

Subtitle G—Emergency Unemployment Compensation Expansion Act of 2011 

Sec. 1701. Short title. 

Sec. 1702. Additional first-tier emergency unemployment compensation. 

Sec. 1703. Regulations. 

Sec. 1704. Effective date. 

Subtitle H—Currency Reform for Fair Trade Act 


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Sec. 1801. Short title. 

Sec. 1802. Clarification regarding definition of countervailable subsidy. 

Sec. 1803. Report on implementation of subtitle. 

Sec. 1804. Application to goods from Canada and Mexico. 

Subtitle I—Prioritize Emergency Job Creation Act 

Sec. 1851. Short title. 

Sec. 1852. Emergency job creation. 

Subtitle J—Fair Employment Opportunity Act of 2011 

Sec. 1901. Short title. 

Sec. 1902. Findings and purpose. 

Sec. 1903. Definitions. 

Sec. 1904. Prohibited acts. 

Sec. 1905. Enforcement. 

Subtitle K—New Jobs for America Act of 2011 

Sec. 1951. Short title. 

Sec. 1952. Compensated employment training grants. 

Subtitle L—Transportation Infrastructure Investment 

Sec. 1961. Transportation infrastructure investment. 

Subtitle M—Jobs NOW Act 

Sec. 1971. Short title. 

Sec. 1972. Restoration of TANF Emergency Contingency Fund. 

Subtitle N—Discretionary Spending Limits 

Sec. 1981. Repeal of new discretionary spending limits. 

Subtitle O—Emergency Job Creation Designation 

Sec. 1991. Congressional Designation. 

TITLE II—RESPONSIBLE SAVINGS AND FAIR TAXATION 

Subtitle A—Responsible End to the War in Afghanistan Act 

Sec. 2001. Short title. 

Sec. 2002. Statement of policy. 

Sec. 2003. Limitation on use of funds for operations of the Armed Forces in 

Afghanistan. 

Subtitle B—Defense and Deficit Reduction Act 

Sec. 2101. Short title. 

Sec. 2102. Findings. 

Sec. 2103. Reduction and freeze in budget of Department of Defense. 

Subtitle C—Reduction in Military End Strength Level in Europe 

Sec. 2201. Reduction in end strength level of members of the United States 

Armed Forces assigned to permanent duty in Europe and corresponding general end strength reductions. 


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Sec. 2202. Conforming changes to Armed Forces end strength levels. 

Subtitle D—V–22 Osprey Aircraft Program 

Sec. 2401. Termination of V–22 Osprey aircraft program. 

Subtitle E—Fairness in Taxation 

Sec. 2501. Increased tax rates for taxpayers with more than $1,000,000 taxable income. 

Sec. 2502. Recapture of lower capital gains rates for individuals subject to 

added rate brackets. 

Subtitle F—End Big Oil Tax Subsidies Act of 2011 

Sec. 2601. Short title. 

Sec. 2602. Amortization of geological and geophysical expenditures. 

Sec. 2603. Producing oil and gas from marginal wells. 

Sec. 2604. Enhanced oil recovery credit. 

Sec. 2605. Intangible drilling and development costs in the case of oil and gas 

wells. 

Sec. 2606. Percentage depletion. 

Sec. 2607. Tertiary injectants. 

Sec. 2608. Passive activity losses and credits limited. 

Sec. 2609. Income attributable to domestic production activities. 

Sec. 2610. Prohibition on using last-in, first-out accounting for major integrated oil companies. 

Sec. 2611. Modifications of foreign tax credit rules applicable to dual capacity 

taxpayers. 

Subtitle G—Superfund Reinvestment Act 

Sec. 2701. Short title. 

Sec. 2702. Use of Hazardous Substance Superfund for cleanup. 

Sec. 2703. Budgetary treatment of Hazardous Substance Superfund. 

Sec. 2704. Extension of Superfund taxes. 

Sec. 2705. Applicability. 

Subtitle H—Wall Street Trading and Speculators Tax Act 

Sec. 2801. Short title. 

Sec. 2802. Transaction tax. 

Subtitle I—Making Work Pay Tax Credit 

Sec. 2901. Two-year extension of making work pay credit. 

Subtitle J—Employee Misclassification Prevention Act 

Sec. 2951. Short title. 

Sec. 2952. Classification of employees and non-employees. 

Sec. 2953. Misclassification of employees for unemployment compensation purposes. 

Sec. 2954. Department of Labor coordination, referral, and regulations. 

Sec. 2955. Targeted audits. 

Subtitle K—Corporate Assets Should Be Used to Hire Act 

Sec. 2961. Short title. 


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Sec. 2962. Temporary surtax on increases in retained earnings of domestic corporations. 

TITLE III—PROTECT AND STRENGTHEN SOCIAL SECURITY, 

MEDICARE, AND MEDICAID 

Subtitle A—Public Option Deficit Reduction Act 

Sec. 3001. Short title. 

Sec. 3002. Public health insurance option. 

Subtitle B—Medicare Prescription Drug Price Negotiation Act of 2011 

Sec. 3101. Short title. 

Sec. 3102. Negotiation of lower covered part d drug prices on behalf of medicare beneficiaries. 

Subtitle C—Medicaid Enhancement and Emergency Job Creation Act of 2011 

Sec. 3201. Short title. 

Sec. 3202. Extension of ARRA increase in FMAP through fiscal year 2012. 

Subtitle D—Keeping Our Social Security Promises Act 

Sec. 3301. Short title. 

Sec. 3302. Payroll tax on remuneration up to contribution and benefit base and 

more than $250,000. 

Sec. 3303. Tax on net earnings from self-employment up to contribution and 

benefit base and more than $250,000. 

1 TITLE I—EMERGENCY JOB CRE2 ATION TO REBUILD AMERICA 

3 Subtitle A—Emergency Jobs to 

4 Restore the American Dream Act 

5 SEC. 1001. SHORT TITLE. 

6 This subtitle may be cited as the ‘‘Emergency Jobs 

7 to Restore the American Dream Act’’. 

8 PART 1—SCHOOL IMPROVEMENT CORPS 

9 SEC. 1011. PURPOSE. 

10 It is the purpose of this part to provide for the cre11 ation of 400,000 construction jobs for the purpose of mod12 ernizing, renovating, or repairing public school facilities; 


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1 and 250,000 maintenance jobs for the purpose of main2 taining and improving public school facilities. 

3 SEC. 1012. DEFINITIONS. 

4 In this part: 

5 (1) The term ‘‘Bureau-funded school’’ has the 

6 meaning given such term in section 1141 of the 

7 Education Amendments of 1978 (25 U.S.C. 2021). 

8 (2) The term ‘‘charter school’’ has the meaning 

9 given such term in section 5210 of the Elementary 

10 and Secondary Education Act of 1965 (20 U.S.C. 

11 7221i). 

12 (3) The term ‘‘CHPS Criteria’’ means the 

13 green building rating program developed by the Col14 laborative for High Performance Schools. 

15 (4) The term ‘‘Energy Star’’ means the Energy 

16 Star program of the United States Department of 

17 Energy and the United States Environmental Pro18 tection Agency. 

19 (5) The term ‘‘Green Globes’’ means the Green 

20 Building Initiative environmental design and rating 

21 system referred to as Green Globes. 

22 (6) The term ‘‘LEED Green Building Rating 

23 System’’ means the United States Green Building 

24 Council Leadership in Energy and Environmental 


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1 Design green building rating standard referred to as 

2 LEED Green Building Rating System. 

3 (7) The term ‘‘local educational agency’’— 

4 (A) has the meaning given such term in 

5 section 9101 of the Elementary and Secondary 

6 Education Act of 1965 (20 U.S.C. 7801); 

7 (B) includes any public charter school that 

8 constitutes a local educational agency under 

9 State law; and 

10 (C) includes the Recovery School District 

11 of Louisiana. 

12 (8) The term ‘‘outlying area’’— 

13 (A) means the United States Virgin Is14 lands, Guam, American Samoa, and the Com15 monwealth of the Northern Mariana Islands; 

16 and 

17 (B) includes the Republic of Palau. 

18 (9) The term ‘‘public school facilities’’ means 

19 existing public elementary or secondary school facili20 ties, including public charter school facilities and 

21 other existing facilities planned for adaptive reuse as 

22 public charter school facilities. 

23 (10) The term ‘‘Secretary’’ means the Secretary 

24 of Education. 


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1 (11) The term ‘‘State’’ means each of the 50 

2 States, the District of Columbia, and the Common3 wealth of Puerto Rico. 

4 Subpart A—Grants for Modernization, Renovation, 

5 or Repair of Public School Facilities 

6 SEC. 1021. PURPOSE. 

7 Grants under this subpart shall be for the purpose 

8 of modernizing, renovating, or repairing public school fa9 cilities (including early learning facilities, as appropriate), 

10 based on the need of the facilities for such improvements, 

11 to ensure that public school facilities are safe, healthy, 

12 high-performing, and technologically up-to-date. 

13 SEC. 1022. ALLOCATION OF FUNDS. 

14 (a) RESERVATION.— 

15 (1) IN GENERAL.—From the amount appro16 priated to carry out this subpart for each fiscal year 

17 pursuant to section 1052(a)(1), the Secretary shall 

18 reserve 2 percent of such amount, consistent with 

19 the purpose described in section 1052(a)(1)— 

20 (A) to provide assistance to the outlying 

21 areas; and 

22 (B) for payments to the Secretary of the 

23 Interior to provide assistance to Bureau-funded 

24 schools. 


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1 (2) USE OF RESERVED FUNDS.—In each fiscal 

2 year, the amount reserved under paragraph (1) shall 

3 be divided between the uses described in subpara4 graphs (A) and (B) of such paragraph in the same 

5 proportion as the amount reserved under section 

6 1121(a) of the Elementary and Secondary Edu7 cation Act of 1965 (20 U.S.C. 6331(a)) is divided 

8 between the uses described in paragraphs (1) and 

9 (2) of such section 1121(a) in such fiscal year. 

10 (3) DISTRESSED AREAS AND NATURAL DISAS11 TERS.—From the amount appropriated to carry out 

12 this subpart for each fiscal year pursuant to section 

13 1052(a), the Secretary shall reserve 5 percent of 

14 such amount for grants to— 

15 (A) local educational agencies serving geo16 graphic areas with significant economic distress, 

17 to be used consistent with the purpose de18 scribed in section 1021 and the allowable uses 

19 of funds described in section 1023; 

20 (B) local educational agencies serving geo21 graphic areas recovering from a natural dis22 aster; and 

23 (C) local educational agencies serving geo24 graphic areas that contain a military installa25 tion selected for closure under the base closure 


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1 and realignment process pursuant to the De2 fense Base Closure and Realignment Act of 

3 1990 (part A of title XXIX of Public Law 101– 

4 510; 10 U.S.C. 2687 note). 

5 (b) ALLOCATION TO STATES.— 

6 (1) STATE-BY-STATE ALLOCATION.—Of the 

7 amount appropriated to carry out this subpart for 

8 each fiscal year pursuant to section 1052(a)(1), and 

9 not reserved under subsection (a), each State shall 

10 be allocated an amount in proportion to the amount 

11 received by all local educational agencies in the State 

12 under part A of title I of the Elementary and Sec13 ondary Education Act of 1965 (20 U.S.C. 6311 et 

14 seq.) for the previous fiscal year relative to the total 

15 amount received by all local educational agencies in 

16 every State under such part for such fiscal year. 

17 (2) STATE ADMINISTRATION.—A State may re18 serve up to 1 percent of its allocation under para19 graph (1) to carry out its responsibilities under this 

20 subpart, which include— 

21 (A) providing technical assistance to local 

22 educational agencies; 

23 (B) developing an online, publicly search24 able database that includes an inventory of pub25 lic school facilities in the State, including for 


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1 each such facility, its design, condition, mod2 ernization, renovation and repair needs, utiliza3 tion, energy use, and carbon footprint; and 

4 (C) creating voluntary guidelines for high5 performing school buildings, including guide6 lines concerning the following: 

7 (i) Site location, storm water manage8 ment, outdoor surfaces, outdoor lighting, 

9 and transportation, including public transit 

10 and pedestrian and bicycle accessability. 

11 (ii) Outdoor water systems, land12 scaping to minimize water use, including 

13 elimination of irrigation systems for land14 scaping, and indoor water use reduction. 

15 (iii) Energy efficiency (including min16 imum and superior standards, such as for 

17 heating, ventilation, and air conditioning 

18 systems), use of alternative energy sources, 

19 commissioning, and training. 

20 (iv) Use of durable, sustainable mate21 rials, including life-cycle cost effectiveness, 

22 and waste reduction. 

23 (v) Indoor environmental quality, such 

24 as day lighting in classrooms, lighting 

25 quality, indoor air quality (including with 


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1 reference to reducing the incidence and ef2 fects of asthma and other respiratory ill3 nesses), acoustics, and thermal comfort. 

4 (vi) Operations and management, 

5 such as use of energy-efficient equipment, 

6 indoor environmental management plan, 

7 maintenance plan, and pest management. 

8 (3) GRANTS TO LOCAL EDUCATIONAL AGEN9 CIES.—From the amount allocated to a State under 

10 paragraph (1), each eligible local educational agency 

11 in the State shall receive an amount in proportion 

12 to the amount received by such local educational 

13 agency under part A of title I of the Elementary and 

14 Secondary Education Act of 1965 (20 U.S.C. 6311 

15 et seq.) for the previous fiscal year relative to the 

16 total amount received by all local educational agen17 cies in the State under such part for such fiscal 

18 year, except that no local educational agency that re19 ceived funds under such part for such fiscal year 

20 shall receive a grant of less than $5,000 in any fiscal 

21 year under this subpart. 

22 (4) SPECIAL RULE.—Section 1122(c)(3) of the 

23 Elementary and Secondary Education Act of 1965 

24 (20 U.S.C. 6332(c)(3)) shall not apply to paragraph 

25 (1) or (3). 


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1 (c) SPECIAL RULES.— 

2 (1) DISTRIBUTIONS BY SECRETARY.—The Sec3 retary shall make and distribute the reservations 

4 and allocations described in subsections (a) and (b) 

5 not later than 90 days after an appropriation of 

6 funds for this subpart is made. 

7 (2) DISTRIBUTIONS BY STATES.—A State shall 

8 make and distribute the allocations described in sub9 section (b)(3) within 60 days of receiving such funds 

10 from the Secretary. 

11 SEC. 1023. ALLOWABLE USES OF FUNDS. 

12 (a) IN GENERAL.—A local educational agency receiv13 ing a grant under this subpart shall use the grant for mod14 ernization, renovation, or repair of public school facilities 

15 (including early learning facilities and charter schools, as 

16 appropriate), including— 

17 (1) repair, replacement, or installation of roofs, 

18 including extensive, intensive or semi-intensive green 

19 roofs, electrical wiring, water supply and plumbing 

20 systems, sewage systems, storm water runoff sys21 tems, lighting systems, building envelope, windows, 

22 ceilings, flooring, or doors, including security doors; 

23 (2) repair, replacement, or installation of heat24 ing, ventilation, or air conditioning systems, includVerDate Mar 15 2010 00:56 Dec 17, 2011 Jkt 019200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638

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1 ing insulation, and conducting indoor air quality as2 sessments; 

3 (3) compliance with fire, health, seismic, and 

4 safety codes, including professional installation of 

5 fire and life safety alarms, and modernizations, ren6 ovations, and repairs that ensure that schools are 

7 prepared for emergencies, such as improving build8 ing infrastructure to accommodate security measures 

9 and installing or upgrading technology to ensure 

10 that schools are able to respond to emergencies such 

11 as acts of terrorism, campus violence, and natural 

12 disasters; 

13 (4) retrofitting necessary to increase the energy 

14 efficiency and water efficiency of public school facili15 ties; 

16 (5) modifications necessary to make facilities 

17 accessible in compliance with the Americans with 

18 Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) 

19 and section 504 of the Rehabilitation Act of 1973 

20 (29 U.S.C. 794); 

21 (6) abatement, removal, or interim controls of 

22 asbestos, polychlorinated biphenyls, mold, mildew, 

23 lead-based hazards, including lead-based paint haz24 ards, or a proven carcinogen; 


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1 (7) measures designed to reduce or eliminate 

2 human exposure to classroom noise and environ3 mental noise pollution; 

4 (8) modernization, renovation, or repair nec5 essary to reduce the consumption of coal, electricity, 

6 land, natural gas, oil, or water; 

7 (9) installation or upgrading of educational 

8 technology infrastructure; 

9 (10) modernization, renovation, or repair of 

10 science and engineering laboratories, libraries, and 

11 career and technical education facilities, and im12 provements to building infrastructure to accommo13 date bicycle and pedestrian access; 

14 (11) installation or upgrading of renewable en15 ergy generation and heating systems, including 

16 solar, photovoltaic, wind, biomass (including wood 

17 pellet and woody biomass), waste-to-energy, and 

18 solar-thermal and geothermal systems, and for en19 ergy audits; 

20 (12) measures designed to reduce or eliminate 

21 human exposure to airborne particles such as dust, 

22 sand, and pollens; 

23 (13) creating greenhouses, gardens (including 

24 trees), and other facilities for environmental, sciVerDate Mar 15 2010 00:56 Dec 17, 2011 Jkt 019200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638

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1 entific, or other educational purposes, or to produce 

2 energy savings; 

3 (14) modernizing, renovating, or repairing 

4 physical education facilities for students, including 

5 upgrading or installing recreational structures made 

6 from post-consumer recovered materials in accord7 ance with the comprehensive procurement guidelines 

8 prepared by the Administrator of the Environmental 

9 Protection Agency under section 6002(e) of the 

10 Solid Waste Disposal Act (42 U.S.C. 6962(e)); 

11 (15) other modernization, renovation, or repair 

12 of public school facilities to— 

13 (A) improve teachers’ ability to teach and 

14 students’ ability to learn; 

15 (B) ensure the health and safety of stu16 dents and staff; 

17 (C) make them more energy efficient; or 

18 (D) reduce class size; and 

19 (16) required environmental remediation related 

20 to modernization, renovation, or repair described in 

21 paragraphs (1) through (15). 

22 (b) ADMINISTRATIVE COSTS.—A local educational 

23 agency receiving a grant under this part may not use more 

24 than 1 percent of such grant funds for administrative 

25 costs. 


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1 SEC. 1024. PRIORITY PROJECTS. 

2 In selecting a project under section 113, a local edu3 cational agency may give priority to projects involving the 

4 abatement, removal, or interim controls of asbestos, poly5 chlorinated biphenyls, mold, mildew, lead-based hazards, 

6 including lead-based paint hazards, or a proven car7 cinogen. 

8 Subpart B—Grants for Maintenance Costs 

9 SEC. 1031. ALLOCATION TO STATES. 

10 (a) STATE-BY-STATE ALLOCATION.—Of the amount 

11 appropriated to carry out this subpart for each fiscal year 

12 pursuant to section 1052(a)(2), each State shall be allo13 cated an amount in proportion to the amount received by 

14 all local educational agencies in the State under part A 

15 of title I of the Elementary and Secondary Education Act 

16 of 1965 (20 U.S.C. 6311 et seq.) for the previous fiscal 

17 year relative to the total amount received by all local edu18 cational agencies in every State under such part for such 

19 fiscal year. 

20 (b) GRANTS TO LOCAL EDUCATIONAL AGENCIES.— 

21 From the amount allocated to a State under subsection 

22 (a), each eligible local educational agency in the State 

23 shall receive an amount in proportion to the amount re24 ceived by such local educational agency under part A of 

25 title I of the Elementary and Secondary Education Act 

26 of 1965 (20 U.S.C. 6311 et seq.) for the previous fiscal 


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1 year relative to the total amount received by all local edu2 cational agencies in the State under such part for such 

3 fiscal year. 

4 SEC. 1032. ALLOWABLE USES OF FUNDS. 

5 (a) REQUIRED USE OF FUNDS.—A local educational 

6 agency receiving a grant under this subpart shall use the 

7 grant for payment of maintenance costs, including routine 

8 repairs classified as current expenditures under State or 

9 local law. 

10 (b) ADMINISTRATIVE COSTS.—A local educational 

11 agency receiving a grant under this subpart may not use 

12 more than 1 percent of such grant funds for administra13 tive costs. 

14 Subpart C—General Provisions 

15 SEC. 1041. SUPPLEMENT, NOT SUPPLANT. 

16 A local educational agency receiving a grant under 

17 this part shall use such Federal funds only to supplement 

18 and not supplant the amount of funds that would, in the 

19 absence of such Federal funds, be available for moderniza20 tion, renovation, repair, maintenance, and construction of 

21 public school facilities. 

22 SEC. 1042. PROHIBITION REGARDING STATE AID. 

23 A State shall not take into consideration payments 

24 under this part in determining the eligibility of any local 

25 educational agency in that State for State aid, or the 


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1 amount of State aid, with respect to free public education 

2 of children. 

3 SEC. 1043. MAINTENANCE OF EFFORT. 

4 (a) IN GENERAL.—A local educational agency may 

5 receive a grant under this part for any fiscal year only 

6 if either the combined fiscal effort per student or the ag7 gregate expenditures of the agency and the State involved 

8 with respect to the provision of free public education by 

9 the agency for the preceding fiscal year was not less than 

10 90 percent of the combined fiscal effort or aggregate ex11 penditures for the second preceding fiscal year. 

12 (b) WAIVER.—The Secretary shall waive the require13 ments of this section if the Secretary determines that a 

14 waiver would be equitable due to— 

15 (1) exceptional or uncontrollable circumstances, 

16 such as a natural disaster; or 

17 (2) a precipitous decline in the financial re18 sources of the local educational agency. 

19 SEC. 1044. SPECIAL RULES ON CONTRACTING. 

20 (a) LOCAL EDUCATIONAL AGENCY REQUIRE21 MENTS.— 

22 (1) IN GENERAL.—Each local educational agen23 cy receiving a grant under this part shall ensure 

24 that, if the agency carries out modernization, ren25 ovation, repair, maintenance, or construction 


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1 through a contract, the process for any such con2 tract ensures the maximum number of qualified bid3 ders, including local, small, minority, and women4 and veteran-owned businesses, through full and open 

5 competition. 

6 (2) REVIEW OF APPLICATIONS.—In reviewing 

7 awarding contracts under paragraph (1), a local 

8 educational agency shall give preference to busi9 nesses that demonstrate— 

10 (A) current and past compliance with Fed11 eral and State labor laws, including laws con12 cerning wage and hour, labor relations, family 

13 and medical leave, occupational safety and 

14 health, and living wage standards; and 

15 (B) terms and conditions of employment 

16 including payment of living wage; availability of 

17 sick, vacation and retirement benefits; and ex18 istence of grievance procedures and labor-man19 agement committees. 

20 (b) CERTIFICATION BY BUSINESSES.—Any business 

21 competing for a contract with a local educational agency 

22 receiving funds under this part shall certify to the local 

23 educational agency that the business has a record of com24 pliance and is currently in compliance with Federal, State, 

25 and local labor and workplace laws, including statutes conVerDate Mar 15 2010 00:56 Dec 17, 2011 Jkt 019200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638

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1 cerning wage and hour, labor relations, family and medical 

2 leave, occupational safety and health, and living wage 

3 standards. 

4 SEC. 1045. USE OF AMERICAN IRON, STEEL, AND MANUFAC5 TURED GOODS. 

6 (a) IN GENERAL.—None of the funds appropriated 

7 or otherwise made available by this part may be used for 

8 a project for the modernization, renovation, repair, main9 tenance, or construction of a public school facility unless 

10 all of the iron, steel, and manufactured goods used in the 

11 project are produced in the United States. 

12 (b) EXCEPTIONS.—Subsection (a) shall not apply in 

13 any case or category of cases in which the Secretary finds 

14 that— 

15 (1) applying subsection (a) would be incon16 sistent with the public interest; 

17 (2) iron, steel, and the relevant manufactured 

18 goods are not produced in the United States in suffi19 cient and reasonably available quantities and of a 

20 satisfactory quality; or 

21 (3) inclusion of iron, steel, and manufactured 

22 goods produced in the United States will increase 

23 the cost of the overall project by more than 25 per24 cent. 


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1 (c) PUBLICATION OF JUSTIFICATION.—If the Sec2 retary determines that it is necessary to waive the applica3 tion of subsection (a) based on a finding under subsection 

4 (b), the Secretary shall publish in the Federal Register 

5 a detailed written justification of the determination. 

6 (d) CONSTRUCTION.—This section shall be applied in 

7 a manner consistent with United States obligations under 

8 international agreements. 

9 SEC. 1046. LABOR STANDARDS; COMPLIANCE WITH EXIST10 ING STATUTES. 

11 (a) IN GENERAL.—The grant programs under this 

12 subpart are applicable programs (as that term is defined 

13 in section 400 of the General Education Provisions Act 

14 (20 U.S.C. 1221)) subject to section 439 of such Act (20 

15 U.S.C. 1232b). 

16 (b) COMPLIANCE WITH EXISTING STATUTES.—Each 

17 local educational agency receiving a grant under this part 

18 shall comply with all applicable Federal, State, and local 

19 health, safety, labor, and civil rights laws. 

20 SEC. 1047. CHARTER SCHOOLS. 

21 A local educational agency receiving a grant under 

22 this part may reserve an amount of that grant for charter 

23 schools within its jurisdiction for modernization, renova24 tion, repair, and construction, or maintenance of charter 


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1 school facilities (including early learning facilities, as ap2 propriate). 

3 SEC. 1048. GREEN SCHOOLS. 

4 (a) IN GENERAL.—A local educational agency receiv5 ing a grant under this part shall, to the maximum extent 

6 practicable, use such funds for public school moderniza7 tion, renovation, repair, or construction or maintenance 

8 that are certified, verified, or consistent with any applica9 ble provisions of— 

10 (1) the LEED Green Building Rating System; 

11 (2) Energy Star; 

12 (3) the CHPS Criteria; 

13 (4) Green Globes; or 

14 (5) an equivalent program adopted by the 

15 State, or another jurisdiction with authority over the 

16 local educational agency, that includes a verifiable 

17 method to demonstrate compliance with such pro18 gram. 

19 (b) RULE OF CONSTRUCTION.—Nothing in this sec20 tion shall be construed to prohibit a local educational 

21 agency from using sustainable, domestic hardwood lumber 

22 as ascertained through the forest inventory and analysis 

23 program of the Forest Service of the Department of Agri24 culture under the Forest and Rangeland Renewable Re25 sources Research Act of 1978 (16 U.S.C. 1641 et seq.) 


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1 for public school modernization, renovation, repairs, or 

2 construction. 

3 (c) TECHNICAL ASSISTANCE.—The Secretary, in con4 sultation with the Secretary of Energy and the Adminis5 trator of the Environmental Protection Agency, shall pro6 vide outreach and technical assistance to States and local 

7 educational agencies concerning the best practices in 

8 school modernization, renovation, repair, and construc9 tion, including those related to student academic achieve10 ment, student and staff health, energy efficiency, and envi11 ronmental protection. 

12 SEC. 1049. REPORTING. 

13 (a) REPORTS BY LOCAL EDUCATIONAL AGENCIES.— 

14 Local educational agencies receiving a grant under this 

15 part shall annually compile a report describing the 

16 projects for which such funds were used, including— 

17 (1) the number and identity of public schools in 

18 the agency, including the number of charter schools, 

19 and for each school, the total number of students, 

20 and the number of students counted under section 

21 1113(a)(5) of the Elementary and Secondary Edu22 cation Act of 1965 (20 U.S.C. 6313(a)(5)); 

23 (2) the total amount of funds received by the 

24 local educational agency under this part, and for 

25 each public school in the agency, including each 


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1 charter school, the amount of such funds expended, 

2 and the types of modernization, renovation, repair, 

3 or construction projects for which such funds were 

4 used; 

5 (3) the number of students impacted by such 

6 projects, including the number of students so im7 pacted who are counted under section 1113(a)(5) of 

8 the Elementary and Secondary Education Act of 

9 1965 (20 U.S.C. 6313(a)(5)); 

10 (4) the number of public schools in the agency 

11 with a metro-centric locale code of 41, 42, or 43 as 

12 determined by the National Center for Education 

13 Statistics and the percentage of funds received by 

14 the agency under subpart A or subpart B of this 

15 part that were used for projects at such schools; 

16 (5) the number of public schools in the agency 

17 that are eligible for schoolwide programs under sec18 tion 1114 of the Elementary and Secondary Edu19 cation Act of 1965 (20 U.S.C. 6314) and the per20 centage of funds received by the agency under sub21 part A or subpart B of this part that were used for 

22 projects at such schools; 

23 (6) for each project— 

24 (A) the cost; 


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1 (B) the standard described in section 

2 128(a) with which the use of the funds com3 plied or, if the use of funds did not comply with 

4 a standard described in section 128(a), the rea5 son such funds were not able to be used in com6 pliance with such standards and the agency’s 

7 efforts to use such funds in an environmentally 

8 sound manner; and 

9 (C) any demonstrable or expected benefits 

10 as a result of the project (such as energy sav11 ings, improved indoor environmental quality, 

12 student and staff health, including the reduc13 tion of the incidence and effects of asthma and 

14 other respiratory illnesses, and improved cli15 mate for teaching and learning); 

16 (7) the total number and amount of contracts 

17 awarded, and the number and amount of contracts 

18 awarded to local, small, minority, women, and vet19 eran-owned businesses; and 

20 (8) the total number of jobs created by funding 

21 under this part by— 

22 (A) the local educational agency; and 

23 (B) contractors who performed work for 

24 the local educational agency under this part. 


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1 (b) AVAILABILITY OF REPORTS.—A local educational 

2 agency shall— 

3 (1) submit the report described in subsection 

4 (a) to the State educational agency, which shall com5 pile such information and report it annually to the 

6 Secretary; and 

7 (2) make the report described in subsection (a) 

8 publicly available, including on the agency’s Web 

9 site. 

10 (c) REPORTS BY SECRETARY.—Not later than March 

11 31 of each fiscal year, the Secretary shall submit to the 

12 Committee on Education and the Workforce of the House 

13 of Representatives and the Committee on Health, Edu14 cation, Labor and Pensions of the Senate, and make avail15 able on the Department of Education’s Web site, a report 

16 on grants made under this subpart, including the informa17 tion from the reports described in subsection (b)(1). 

18 SEC. 1050. SPECIAL RULES. 

19 Notwithstanding any other provision of this subpart, 

20 none of the funds authorized by this part may be— 

21 (1) used to employ workers in violation of sec22 tion 274A of the Immigration and Nationality Act 

23 (8 U.S.C. 1324a); or 


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1 (2) distributed to a local educational agency 

2 that does not have a policy that requires a criminal 

3 background check on all employees of the agency. 

4 SEC. 1051. PROMOTION OF EMPLOYMENT EXPERIENCES. 

5 The Secretary of Education, in consultation with the 

6 Secretary of Labor, shall work with recipients of funds 

7 under this subpart to promote appropriate opportunities 

8 to gain employment experience working on modernization, 

9 renovation, repair, maintenance, and construction projects 

10 funded under this subpart for— 

11 (1) participants in a YouthBuild program (as 

12 defined in section 173A of the Workforce Investment 

13 Act of 1998 (29 U.S.C. 2918a)); 

14 (2) individuals enrolled in the Job Corps pro15 gram carried out under subtitle C of title I of the 

16 Workforce Investment Act of 1998 (29 U.S.C. 2881 

17 et seq.); 

18 (3) individuals enrolled in a junior or commu19 nity college (as defined in section 312(f) of the 

20 Higher Education Act of 1965 (20 U.S.C. 1088(f))) 

21 certificate or degree program relating to projects de22 scribed in section 128(a); and 

23 (4) participants in preapprenticeship programs 

24 that have direct linkages with apprenticeship pro25 grams that are registered with the Department of 


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1 Labor or a State Apprenticeship Agency under the 

2 National Apprenticeship Act of 1937 (29 U.S.C. 50 

3 et seq.). 

4 SEC. 1052. AVAILABILITY OF FUNDS. 

5 (a) AUTHORIZATION AND APPROPRIATION.—There 

6 are authorized to be appropriated, and there are appro7 priated, for each of fiscal years 2012 and 2013— 

8 (1) to carry out subpart A (in addition to any 

9 other amounts appropriated to carry out such title 

10 and out of any money in the Treasury not otherwise 

11 appropriated), $40,000,000,000; and 

12 (2) to carry out subpart B (in addition to any 

13 other amounts appropriated to carry out such title 

14 and out of any money in the Treasury not otherwise 

15 appropriated), $10,000,000,000. 

16 (b) PROHIBITION ON EARMARKS.—None of the funds 

17 appropriated under this section may be used for a Con18 gressional earmark as defined in clause 9(d) of rule XXI 

19 of the Rules of the House of Representatives for the 112th 

20 Congress. 

21 (c) SUNSET.—The authority to award grants under 

22 this part shall expire at the end of fiscal year 2013. 

23 SEC. 1053. ALTERNATE DISTRIBUTION OF FUNDS. 

24 If, within 30 days after the date of the enactment 

25 of this Act, a local educational agency has submitted to 


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1 the Secretary a certification that they are refusing funds 

2 they are eligible to receive under this part, the Secretary 

3 shall provide for funds allocated to that local educational 

4 agency to be distributed to another entity or other entities 

5 in the State, under such terms and conditions as the Sec6 retary may establish, provided that all terms and condi7 tions that apply to funds appropriated under this section 

8 shall apply to such funds distributed to such entity or enti9 ties. 

10 PART 2—STUDENT JOBS CORPS 

11 SEC. 1061. STUDENT JOBS CORPS. 

12 (a) PURPOSE.—It is the purpose of this section to 

13 provide for an additional 250,000 part-time work-study 

14 jobs through the Federal Work-Study Program under part 

15 C of title IV of the Higher Education Act of 1965 (20 

16 U.S.C. 2751 et seq.). 

17 (b) APPROPRIATION OF ADDITIONAL AMOUNTS.— 

18 There are authorized to be appropriated, and there are 

19 hereby appropriated, out of amounts in the Treasury not 

20 otherwise appropriated, to the Secretary of Education 

21 $425,000,000 for each of the fiscal years 2012 and 2013 

22 for grants to institutions of higher education under part 

23 C of title IV of the Higher Education Act of 1965 (20 

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1 pating in work-study programs in accordance with such 

2 part. 

3 (c) RELATION TO OTHER FUNDS.—Amounts appro4 priated by subsection (b) are in addition to amounts ap5 propriated pursuant to the authorization of appropriations 

6 in section 441(b) of the Higher Education Act of 1965 

7 (20 U.S.C. 2751(b)) and amounts otherwise made avail8 able by any other Act for the Federal Work-Study pro9 gram under part C of such Act of 1965. 

10 (d) MATCHING FUNDS NOT REQUIRED.—Notwith11 standing section 443(b)(5) of the Higher Education Act 

12 of 1965 (20 U.S.C. 2753(b)(5)) or an agreement made 

13 pursuant to such section 443, an institution of higher edu14 cation shall not be required to provide matching funds for 

15 any funds made available to the institution by this section. 

16 PART 3—PUBLIC LANDS CORPS AND CIVILIAN 

17 CONSERVATION CORPS 

18 SEC. 1071. APPROPRIATION OF ADDITIONAL FUNDS FOR 

19 EXISTING PUBLIC LANDS CORPS. 

20 (a) PURPOSE.—It is the purpose of this section to 

21 provide for the creation of an additional 100,000 positions 

22 in the Public Lands Corps established under section 204 

23 of the Public Lands Corps Act of 1993 (16 U.S.C. 1723). 

24 (b) AUTHORIZATION AND APPROPRIATION OF ADDI25 TIONAL FUNDS.— 


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1 (1) FOREST SERVICE.—There are authorized to 

2 be appropriated, and there are hereby appropriated, 

3 out of amounts in the Treasury not otherwise appro4 priated, to the Secretary of Agriculture 

5 $125,000,000 for each of fiscal years 2012 and 

6 2013— 

7 (A) to carry out the Public Lands Corps 

8 established in the Department of Agriculture 

9 under section 204 of the Public Lands Corps 

10 Act of 1993 (16 U.S.C. 1723); 

11 (B) to support qualified youth or conserva12 tion corps to perform conservation projects re13 ferred to in subsection (d) of such section; and 

14 (C) to support resource assistants selected 

15 under section 206 of such Act (16 U.S.C. 

16 1725). 

17 (2) DEPARTMENT OF THE INTERIOR.—There 

18 are authorized to be appropriated, and there are 

19 hereby appropriated, out of amounts in the Treasury 

20 not otherwise appropriated, to the Secretary of the 

21 Interior $125,000,000 for each of fiscal years 2012 

22 and 2013— 

23 (A) to carry out the Public Lands Corps 

24 established in the Department of the Interior 


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1 under section 204 of the Public Lands Corps 

2 Act of 1993 (16 U.S.C. 1723); 

3 (B) to support qualified youth or conserva4 tion corps to perform conservation projects re5 ferred to in subsection (d) of such section; and 

6 (C) to support resource assistants selected 

7 under section 206 of such Act (16 U.S.C. 

8 1725). 

9 (c) RELATION TO OTHER FUNDS FOR PUBLIC LANDS

10 CORPS.—Amounts appropriated by subsection (b) are in 

11 addition to amounts appropriated pursuant to the author12 ization of appropriations in section 211 of the Public 

13 Lands Corps Act of 1993 (16 U.S.C. 1730) and amounts 

14 allocated to the Public Lands Corps through other Federal 

15 programs or projects. 

16 (d) EXPEDITED OBLIGATION OF FUNDS.—Not later 

17 than 90 days after the date of the enactment of this Act, 

18 the Secretary of Agriculture and the Secretary of the Inte19 rior shall commence obligation of the funds appropriated 

20 by subsection (b) for fiscal year 2012 by utilizing the pool 

21 of remaining applications for fiscal year 2011 assistance 

22 under the Public Lands Corps Act of 1993 (16 U.S.C. 

23 1721 et seq.). If the number of fiscal year 2011 applica24 tions is insufficient to use the entire amount of the addi25 tional funds appropriated for fiscal year 2012, the SecreVerDate Mar 15 2010 00:56 Dec 17, 2011 Jkt 019200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638

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1 taries shall announce an open solicitation process for new 

2 applications for assistance. 

3 (e) WAIVER OF COST-SHARING REQUIREMENTS.— 

4 The cost-sharing requirements of sections 206(b) and 210 

5 of the Public Lands Corps Act of 1993 (16 U.S.C. 1725, 

6 1730) shall not apply with respect to the expenditure of 

7 amounts appropriated by subsection (b). 

8 SEC. 1072. ESTABLISHMENT AND OPERATION OF NEW CI9 VILIAN CONSERVATION CORPS. 

10 (a) ESTABLISHMENT AND PURPOSE.—The President 

11 may establish and operate a Civilian Conservation Corps 

12 to employ citizens of the United States in the construction, 

13 maintenance, and carrying on of additional works of a 

14 public nature in connection with— 

15 (1) the forestation of lands belonging to the 

16 United States or a State; 

17 (2) the prevention of forest fires, floods, and 

18 soil erosion; 

19 (3) plant pest and disease control; 

20 (4) the construction, maintenance, or repair of 

21 paths, trails, and fire-lanes in units of the National 

22 Park System, public lands, and other lands under 

23 the jurisdiction of the Secretary of the Interior and 

24 units of the National Forest System; and 


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1 (5) such other work on Federal or State land 

2 incidental to or necessary in connection with any 

3 projects of the character enumerated in paragraphs 

4 (1) through (4) that the President determines to be 

5 desirable. 

6 (b) ROLE OF FEDERAL AGENCIES.—To operate the 

7 Civilian Conservation Corps, the President may utilize ex8 isting Federal departments and agencies, including the 

9 Department of Labor, the Department of Defense, the 

10 National Guard Bureau, the Department of Interior, the 

11 Department of Agriculture, the Army Corps of Engineers, 

12 the Department of Transportation, the Department of En13 ergy, the Environmental Protection Agency, and Federal 

14 governmental corporations. 

15 (c) CONTRACT AUTHORITY.—For the purpose of car16 rying out the Civilian Conservation Corps, the President 

17 may enter into such contracts or agreements with States 

18 as may be necessary, including provisions for utilization 

19 of existing State administrative agencies. 

20 (d) ACQUISITION OF REAL PROPERTY.—The Presi21 dent, or the head of any department or agency authorized 

22 by the President to construct any project or to carry on 

23 any public works through the Civilian Conservation Corps, 

24 may acquire real property for such project or public work 

25 by purchase, donation, condemnation, or otherwise. 


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1 (e) EMPLOYMENT PREFERENCE.—If amounts appro2 priated to carry out a Civilian Conservation Corps for a 

3 fiscal year will be insufficient to employ all of the citizens 

4 of the United States who are seeking or likely to seek em5 ployment in the Civilian Conservation Corps, while also 

6 continuing the employment of current employees who de7 sire to remain in the Civilian Conservation Corps, the 

8 President shall employ additional persons in the Civilian 

9 Conservation Corps in the following order of preference: 

10 (1) Unemployed veterans of the Armed Forces 

11 and unemployed members of the reserve components 

12 of the Armed Forces. 

13 (2) Unemployed citizens who have exhausted 

14 their entitlement to unemployment compensation. 

15 (3) Unemployed citizens, who immediately be16 fore employment in the Civilian Conservation Corps, 

17 are eligible for unemployment compensation payable 

18 under any State law or Federal unemployment com19 pensation law, including any additional compensa20 tion or extended compensation under such laws. 

21 (4) Other interested citizens. 

22 (f) AUTHORIZATION OF APPROPRIATIONS.— 

23 (1) AUTHORIZATION OF APPROPRIATIONS.— 

24 There are authorized to be appropriated to the 

25 President $16,000,000,000 for each of fiscal years 


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1 2012 through 2015 to establish and operate a Civil2 ian Conservation Corps. 

3 (2) USE OF UNOBLIGATED FUNDS APPRO4 PRIATED FOR PUBLIC WORKS.— 

5 (A) USE OF EXISTING FUNDS.—The Presi6 dent may use any moneys previously appro7 priated for public works and unobligated as of 

8 the date of the enactment of this Act to estab9 lish and operate a Civilian Conservation Corps. 

10 (B) USE TO RELIEVE UNEMPLOYMENT.— 

11 Not less than 80 percent of the funds utilized 

12 pursuant to subparagraph (A) must be used to 

13 provide for the employment of individuals in the 

14 Civilian Conservation Corps. 

15 (C) EXCEPTIONS.—Subparagraph (A) does 

16 not apply to— 

17 (i) unobligated moneys appropriated 

18 for public works on which actual construc19 tion has been commenced as of the date of 

20 the enactment of this Act or may be com21 menced within 90 days after that date; and 

22 (ii) maintenance funds for river and 

23 harbor improvements already allocated as 

24 of the date of the enactment of this Act. 


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1 (3) DURATION OF AVAILABILITY.—Amounts ap2 propriated pursuant to the authorization of appro3 priations in paragraph (1) or made available under 

4 paragraph (2) shall remain available until expended. 

5 PART 4—NEIGHBORHOOD HEROES CORPS 

6 SEC. 1081. TEACHER CORPS. 

7 (a) PURPOSE.—It is the purpose of this section to 

8 provide for the retention, rehiring, and hiring of 300,000 

9 education jobs. 

10 (b) AUTHORIZATION AND APPROPRIATION.—There 

11 are authorized to be appropriated and there are appro12 priated out of any money in the Treasury not otherwise 

13 obligated for necessary expenses for a Teacher Corps, 

14 $20,000,000,000 for each of fiscal years 2012 and 2013: 

15 Provided, That the amount under this section shall be ad16 ministered under the terms and conditions of sections 

17 14001 through 14013 and title XV of division A of the 

18 American Recovery and Reinvestment Act of 2009 (Public 

19 Law 111–5) except as follows: 

20 (1) ALLOCATION OF FUNDS.— 

21 (A) Funds appropriated under this section 

22 shall be available only for allocation by the Sec23 retary of Education (in this section referred to 

24 as the Secretary) in accordance with sub25 sections (a), (b), (d), (e), and (f) of section 


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1 14001 of division A of Public Law 111–5 and 

2 subparagraph (B) of this paragraph, except 

3 that the amount reserved under such subsection 

4 (b) shall not exceed $4,000,000 and such sub5 section (f) shall be applied by substituting one 

6 year for two years. 

7 (B) Prior to allocating funds to States 

8 under section 14001(d) of division A of Public 

9 Law 111–5, the Secretary shall allocate 0.5 

10 percent to the Secretary of the Interior for 

11 schools operated or funded by the Bureau of In12 dian Affairs on the basis of the schools’ respec13 tive needs for activities consistent with this sec14 tion under such terms and conditions as the 

15 Secretary of the Interior may determine. 

16 (2) RESERVATION.—A State that receives an 

17 allocation of funds appropriated under this section 

18 may reserve not more than 1 percent for the admin19 istrative costs of carrying out its responsibilities with 

20 respect to those funds. 

21 (3) AWARDS TO LOCAL EDUCATIONAL AGEN22 CIES.— 

23 (A) Except as specified in paragraph (2), 

24 an allocation of funds to a State shall be used 

25 only for awards to local educational agencies for 


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1 the support of elementary and secondary edu2 cation in accordance with paragraph (5) for the 

3 2011–2012 and 2012–2013 school years. 

4 (B) Funds used to support elementary and 

5 secondary education shall be distributed 

6 through a State’s primary elementary and sec7 ondary funding formulae or based on local edu8 cational agencies’ relative shares of funds under 

9 part A of title I of the Elementary and Sec10 ondary Education Act of 1965 (20 U.S.C. 6311 

11 et seq.) for the most recent fiscal year for which 

12 data are available. 

13 (C) Subsections (a) and (b) of section 

14 14002 of division A of Public Law 111–5 shall 

15 not apply to funds appropriated under this sec16 tion. 

17 (4) COMPLIANCE WITH EDUCATION REFORM AS18 SURANCES.—For purposes of awarding funds appro19 priated under this section, any State that has an ap20 proved application for Phase II of the State Fiscal 

21 Stabilization Fund that was submitted in accordance 

22 with the application notice published in the Federal 

23 Register on November 17, 2009 (74 Fed. Reg. 

24 59142) shall be deemed to be in compliance with 

25 subsection (b) and paragraphs (2) through (5) of 


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1 subsection (d) of section 14005 of division A of Pub2 lic Law 111–5. 

3 (5) REQUIREMENT TO USE FUNDS TO RETAIN

4 OR CREATE EDUCATION JOBS.—Notwithstanding 

5 section 14003(a) of division A of Public Law 111– 

6 5, funds awarded to local educational agencies under 

7 paragraph (3)— 

8 (A) may be used only for compensation 

9 and benefits and other expenses, such as sup10 port services, necessary to retain existing em11 ployees, to recall or rehire former employees, 

12 and to hire new employees, in order to provide 

13 early childhood, elementary, or secondary edu14 cational and related services; and 

15 (B) may not use more than 1 percent of 

16 such grant funds for administrative costs. 

17 (6) PROHIBITION ON USE OF FUNDS FOR

18 RAINY-DAY FUNDS OR DEBT RETIREMENT.—A State 

19 that receives an allocation may not use such funds, 

20 directly or indirectly, to— 

21 (A) establish, restore, or supplement a 

22 rainy-day fund; 

23 (B) supplant State funds in a manner that 

24 has the effect of establishing, restoring, or 

25 supplementing a rainy-day fund; 


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1 (C) reduce or retire debt obligations in2 curred by the State; or 

3 (D) supplant State funds in a manner that 

4 has the effect of reducing or retiring debt obli5 gations incurred by the State. 

6 (7) SUPPLEMENT, NOT SUPPLANT.—Funds 

7 made available under this section shall be used to 

8 supplement, not supplant, the amount of funds that 

9 would, in the absence of the Federal funds made 

10 available under this section, be made available from 

11 local, State, and Federal sources to provide com12 pensation and other expenses such as support serv13 ices, necessary to retain existing employees, to recall 

14 or rehire former employees, and to hire new employ15 ees, in order to provide early childhood, elementary, 

16 or secondary educational and related services. 

17 (8) DEADLINE FOR AWARD.—The Secretary 

18 shall award funds appropriated under this section 

19 not later than 45 days after the date of the enact20 ment of this Act to States that have submitted ap21 plications meeting the requirements applicable to 

22 funds under this section. The Secretary shall not re23 quire information in applications beyond what is 

24 necessary to determine compliance with applicable 

25 provisions of law. 


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1 (9) ALTERNATE DISTRIBUTION OF FUNDS.—If, 

2 within 30 days after the date of the enactment of 

3 this Act, a Governor has not submitted an approv4 able application, the Secretary shall provide for 

5 funds allocated to that State to be distributed to an6 other entity or other entities in the State (notwith7 standing section 14001(e) of division A of Public 

8 Law 111–5) for support of elementary and sec9 ondary education, under such terms and conditions 

10 as the Secretary may establish, provided that all 

11 terms and conditions that apply to funds appro12 priated under this section shall apply to such funds 

13 distributed to such entity or entities. No distribution 

14 shall be made to a State under this paragraph, how15 ever, unless the Secretary has determined (on the 

16 basis of such information as may be available) that 

17 the requirements of paragraph (11) are likely to be 

18 met, notwithstanding the lack of an application from 

19 the Governor of that State. 

20 (10) LOCAL EDUCATIONAL AGENCY APPLICA21 TION.—Section 442 of the General Education Provi22 sions Act shall not apply to a local educational agen23 cy that has previously submitted an application to 

24 the State under title XIV of division A of Public 

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1 plication shall continue to apply to funds awarded 

2 under this section. 

3 (11) MAINTENANCE OF EFFORT.— 

4 (A) IN GENERAL.—Subject to subpara5 graph (B), a local educational agency may re6 ceive a grant under this part for any fiscal year 

7 only if either the combined fiscal effort per stu8 dent or the aggregate expenditures of the agen9 cy and the State involved with respect to the 

10 provision of free public education by the agency 

11 for the preceding fiscal year was not less than 

12 90 percent of the combined fiscal effort or ag13 gregate expenditures for the second preceding 

14 fiscal year. 

15 (B) WAIVER.—The Secretary shall waive 

16 the requirements of this section if the Secretary 

17 determines that a waiver would be equitable due 

18 to— 

19 (i) exceptional or uncontrollable cir20 cumstances, such as a natural disaster; or 

21 (ii) a precipitous decline in the finan22 cial resources of the local educational agen23 cy. 

24 (C) ARRA PROVISION NOT APPLICABLE.— 

25 Section 14005(d)(1) and subsections (a) 


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1 through (c) of section 14012 of division A of 

2 Public Law 111–5 shall not apply to funds ap3 propriated under this section. 

4 SEC. 1082. APPROPRIATION OF ADDITIONAL FUNDS FOR 

5 COMMUNITY ORIENTED POLICING SERVICES. 

6 (a) PURPOSE.—It is the purpose of this section to 

7 provide for the hiring and rehiring of an additional 40,000 

8 State, local, and tribal career law enforcement officers 

9 through the Community Oriented Policing Services pro10 gram under part Q of title I of the Omnibus Crime Control 

11 and Safe Streets Act of 1968 (42 U.S.C. 3796dd et seq.). 

12 (b) AUTHORIZATION AND APPROPRIATION OF ADDI13 TIONAL AMOUNTS.—There are authorized to be appro14 priated, and there are hereby appropriated, out of 

15 amounts in the Treasury not otherwise appropriated, to 

16 the Attorney General $5,000,000,000 for each of the fiscal 

17 years 2012 and 2013 for grants under section 1701(b)(1) 

18 and (2) of title I of the Omnibus Crime Control and Safe 

19 Streets Act of 1968 (42 U.S.C. 3796dd(b)(1) and (2)) for 

20 hiring and rehiring of additional career law enforcement 

21 officers under part Q of such title, notwithstanding sub22 section (i) of such section. 

23 (c) RELATION TO OTHER FUNDS FOR COPS.— 

24 Amounts appropriated by subsection (b) are in addition 

25 to amounts appropriated pursuant to the authorization of 


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1 appropriations in section 1001(a)(11) of the Omnibus 

2 Crime Control and Safe Streets Act of 1968 (42 U.S.C. 

3 3793(a)(11)) and amounts otherwise made available for 

4 grants under section 1701 of such Act (42 U.S.C. 3796dd) 

5 by any other Act. 

6 (d) EXPEDITED OBLIGATION OF FUNDS.—Not later 

7 than 90 days after the date of the enactment of this Act, 

8 the Attorney General shall commence obligation of the 

9 funds appropriated by subsection (b) for fiscal year 2012 

10 by utilizing the pool of applicants who submitted applica11 tions for fiscal year 2011 grants under part Q of title I 

12 of the Omnibus Crime Control and Safe Streets Act of 

13 1968 (42 U.S.C. 3796dd et seq.) but did not receive fund14 ing under such part for such fiscal year for hiring and 

15 rehiring of additional career law enforcement officers. If 

16 the number of such fiscal year 2011 applicants is insuffi17 cient to use the entire amount of the additional funds ap18 propriated for fiscal year 2012, the Attorney General shall 

19 announce an open solicitation process for new applications 

20 for grants, to be submitted in accordance with the require21 ments of section 1702 of such Act (42 U.S.C. 3796dd– 

22 1). 

23 (e) WAIVER OF CERTAIN REQUIREMENTS.—Notwith24 standing any other provision of law, subsection (g) of sec25 tion 1701 of the Omnibus Crime Control and Safe Streets 


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1 Act of 1968 (42 U.S.C. 3796dd(g)) and subsection (c) of 

2 section 1704 of such Act (42 U.S.C. 3796dd–3(c)) shall 

3 not apply with respect to grants awarded using any funds 

4 made available under this section. 

5 SEC. 1083. FIREFIGHTERS CORPS. 

6 (a) PURPOSE.—It is the purpose of this section to 

7 provide for the hiring and rehiring of an additional 12,000 

8 firefighters through section 34 of the Federal Fire Preven9 tion and Control Act of 1974 (15 U.S.C. 2229a). 

10 (b) AMENDMENT AUTHORIZING FUNDS.—Section 

11 34(i) of the Federal Fire Prevention and Control Act of 

12 1974 (15 U.S.C. 2229a(i)) is amended— 

13 (1) in paragraph (6) by striking ‘‘and’’; 

14 (2) in paragraph (7) by striking the period at 

15 the end and inserting a semicolon; and 

16 (3) by adding at the end the following: 

17 ‘‘(8) $1,200,000,000 for fiscal year 2012; and 

18 ‘‘(9) $1,200,000,000 for fiscal year 2013.’’. 

19 (c) APPROPRIATION.— 

20 (1) IN GENERAL.—There is hereby appro21 priated out of any money in the Treasury not other22 wise appropriated $1,200,000,000 for each of the 

23 fiscal years 2012 and 2013 to carry out section 34 

24 of the Federal Fire Prevention and Control Act of 

25 1974 (15 U.S.C. 2229a). 


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1 (2) LIMITATION.—None of the funds made 

2 available under paragraph (1) of this subsection may 

3 be used to enforce the requirements of subpara4 graphs (A), (B), or (E) of subsection (a)(1) or para5 graphs (1), (2), or (4)(A) of subsection (c) of such 

6 section 34. 

7 (d) EXPEDITED OBLIGATION OF FUNDS.—Not later 

8 than 90 days after the date of the enactment of this Act, 

9 the Secretary of Homeland Security shall commence obli10 gation of the funds appropriated by subsection (c) for fis11 cal year 2012 by utilizing the pool of applicants who sub12 mitted applications for fiscal year 2011 grants under sec13 tion 34 of the Federal Fire Prevention and Control Act 

14 of 1974 but did not receive funding under such section 

15 for such fiscal year for hiring and rehiring of additional 

16 firefighters. If the number of such fiscal year 2011 appli17 cants is insufficient to use the entire amount of the addi18 tional funds appropriated for fiscal year 2012, the Sec19 retary of Homeland Security shall announce an open solic20 itation process for new applications for grants, to be sub21 mitted in accordance with the requirements of such section 

22 34. 


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1 PART 5—HEALTH CARE CORPS 

2 SEC. 1091. PURPOSE. 

3 It is the purpose of this part to provide for the cre4 ation of a grant to hire at least 40,000 health care and 

5 long-term care professionals to expand access to care. 

6 SEC. 1092. HEALTH CARE AND LONG-TERM CARE PRO7 VIDERS. 

8 Part D of title III of the Public Health Service Act 

9 is amended by inserting after subpart III (42 U.S.C. 254l 

10 et seq.) the following: 

11 ‘‘Subpart IV—Hiring and Retaining Additional 

12 Health Care and Long-Term Care Professionals 

13 ‘‘SEC. 338N. HIRING AND RETAINING ADDITIONAL HEALTH 

14 CARE AND LONG-TERM CARE PROFES15 SIONALS. 

16 ‘‘(a) IN GENERAL.—The Secretary may provide fi17 nancial assistance to health care or long-term care pro18 viders to pay all or part of the costs of hiring and retaining 

19 health care or long-term care professionals in addition to 

20 the professionals who, but for such assistance, would be 

21 hired and retained. 

22 ‘‘(b) ELIGIBLE ASSISTANCE RECIPIENTS.—Health 

23 care and long-term care providers eligible for assistance 

24 under subsection (a) include the following: 


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1 ‘‘(1) A health care or long-term care provider 

2 serving a health professional shortage area des3 ignated under section 332. 

4 ‘‘(2) A Federally qualified health center (as de5 fined in section 1861(aa) of the Social Security Act). 

6 ‘‘(3) A rural health clinic. 

7 ‘‘(4) A health care or long-term care provider 

8 that receives payment under title XVIII of the Social 

9 Security Act or under a State plan or State child 

10 health plan under title XIX or XXI, respectively, of 

11 such Act. 

12 ‘‘(5) A public hospital. 

13 ‘‘(6) A public health agency. 

14 ‘‘(7) A nursing home or long-term care facility. 

15 ‘‘(8) An intermediate care or developmentally 

16 disabled facility. 

17 ‘‘(9) A critical access hospital. 

18 ‘‘(10) A school-based health center. 

19 ‘‘(11) A university or college mental health fa20 cility. 

21 ‘‘(12) An Indian health program or facility op22 erated by an Indian tribe or tribal organization. 

23 ‘‘(13) A correctional facility. 

24 ‘‘(c) ELIGIBLE HEALTH PROFESSIONALS.—Health 

25 care and long-term care professionals who may be hired 


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1 or retained using assistance provided under this section 

2 include the following: 

3 ‘‘(1) Dentists. 

4 ‘‘(2) Certified nurse midwives. 

5 ‘‘(3) Psychologists. 

6 ‘‘(4) Licensed clinical social workers. 

7 ‘‘(5) Licensed professional counselors. 

8 ‘‘(6) Marriage and family therapists. 

9 ‘‘(7) Nurse practitioners, including those spe10 cializing in psychiatry. 

11 ‘‘(8) Nurses, including advanced practice 

12 nurses. 

13 ‘‘(9) Physicians, including osteopathic physi14 cians. 

15 ‘‘(10) Physician assistants, including those spe16 cializing in psychiatry. 

17 ‘‘(11) Psychiatric nurse specialists. 

18 ‘‘(12) Registered dental hygienists. 

19 ‘‘(13) Community health workers. 

20 ‘‘(14) Occupational and physical therapists. 

21 ‘‘(15) Optometrists. 

22 ‘‘(16) Certified nursing assistants. 

23 ‘‘(17) Direct care workers. 

24 ‘‘(d) APPLICATION PROCESS.— 

25 ‘‘(1) IN GENERAL.—The Secretary shall— 


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1 ‘‘(A) not later than 60 days after the date 

2 of the enactment of this section, solicit applica3 tions for financial assistance under this section; 

4 ‘‘(B) require that any such application be 

5 submitted— 

6 ‘‘(i) not later than 90 days after the 

7 date of the enactment of this section; and 

8 ‘‘(ii) in such manner and containing 

9 such information as the Secretary may re10 quire; and 

11 ‘‘(C) not later than 120 days after the date 

12 of the enactment of this section, determine 

13 which such applications will be approved and 

14 provide notice of such determination to the ap15 plicants. 

16 ‘‘(2) COMPLIANCE WITH LABOR AND WORK17 PLACE LAWS.—As a condition on eligibility for fi18 nancial assistance under this section, an application 

19 under paragraph (1) shall demonstrate to the Sec20 retary’s satisfaction that the applicant has a record 

21 of compliance, and is currently in compliance, with 

22 Federal, State, and local labor and workplace laws, 

23 including Federal, State, and local laws— 


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1 ‘‘(A) relevant to hiring and retaining 

2 health care or long-term care professionals, 

3 such as laws— 

4 ‘‘(i) requiring background checks in 

5 connection with hiring; 

6 ‘‘(ii) requiring such professionals to be 

7 licensed or certified; or 

8 ‘‘(iii) limiting the scope of practice; 

9 ‘‘(B) concerning wage and hour, labor rela10 tions, family and medical leave, occupational 

11 safety and health, or living wage standards; or 

12 ‘‘(C) concerning other terms and condi13 tions of employment such as the availability of 

14 sick, vacation, and retirement benefits and the 

15 existence of grievance procedures and labor16 management committees. 

17 ‘‘(e) AUTHORIZATION AND APPROPRIATION OF ADDI18 TIONAL AMOUNTS.—To carry out this section, there are 

19 authorized to be appropriated, and there are hereby appro20 priated to the Department of Health and Human Services, 

21 out of amounts in the Treasury not otherwise appro22 priated, $4,000,000,000 for each of fiscal years 2012 and 

23 2013.’’. 


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1 SEC. 1093. SUPPLEMENT, NOT SUPPLANT. 

2 A health care or long-term care provider receiving a 

3 grant under this part shall use such Federal funds only 

4 to supplement and not supplant the amount of funds that 

5 would, in the absence of such Federal funds, be available 

6 for hiring and retaining health care or long-term care pro7 fessionals. 

8 PART 6—COMMUNITY CORPS 

9 SEC. 1101. PURPOSE. 

10 It is the purpose of this part to provide for the cre11 ation of an additional 750,000 jobs through funding to 

12 States and units of general local government to establish 

13 and administer a Community Corps. 

14 SEC. 1102. COMMUNITY CORPS. 

15 (a) FUNDING.—There are authorized to be appro16 priated and there are appropriated out of any money in 

17 the Treasury not otherwise obligated for necessary ex18 penses to the Secretary of Labor, in consultation with the 

19 Secretary of Housing and Urban Development, to provide 

20 to States and units of general local government to estab21 lish and administer a Community Corps, $30,000,000,000 

22 for each of fiscal years 2012 and 2013. 

23 (b) ALLOTMENT FORMULA.— 

24 (1) RESERVATIONS BY THE SECRETARY.—Of 

25 the amount appropriated under subsection (a) for 

26 each fiscal year, the Secretary may reserve— 


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1 (A) not more than 1 percent to administer 

2 this part; 

3 (B) not more than 0.5 percent to award 

4 grants, on a competitive basis, to Indian tribes 

5 for purposes of this part. 

6 (2) MAKING FUNDS AVAILABLE FOR ALLOT7 MENT BY THE SECRETARY.—Of the amounts appro8 priated under subsection (a) and not reserved under 

9 paragraph (1) of this subsection, the Secretary shall 

10 allot the amounts for each fiscal year as follows: 

11 (A) Seventy percent to entitlement commu12 nities, of which the Secretary shall allot— 

13 (i) 25 percent by allotting to each en14 titlement community an amount which 

15 bears the same ratio to the total amount to 

16 be allotted under this clause as the popu17 lation of the entitlement community bears 

18 to the total population of all entitlement 

19 communities; 

20 (ii) 25 percent by allotting each enti21 tlement community an amount which bears 

22 the same ratio to the total amount to be 

23 allotted under this clause as the extent of 

24 poverty in the entitlement community 


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1 bears to the extent of poverty in all entitle2 ment communities; and 

3 (iii) 50 percent by allotting to each 

4 entitlement community in an amount 

5 which bears the same ratio to the total to 

6 be allotted under this clause as the number 

7 of unemployed individuals in the entitle8 ment community bears to the total number 

9 of unemployed individuals in all entitle10 ment communities. 

11 (B) Thirty percent to States, of which the 

12 Secretary shall allot— 

13 (i) 25 percent by allotting to each 

14 State an amount which bears the same 

15 ratio to the total amount to be allotted 

16 under this clause as the population of the 

17 State bears to the total population of all 

18 States; 

19 (ii) 25 percent by allotting to each 

20 State an amount which bears the same 

21 ratio to the total amount to be allotted 

22 under this clause as the extent of poverty 

23 in the State bears to the extent of poverty 

24 in all States; and 


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1 (iii) 50 percent by allotting to each 

2 State an amount which bears the same 

3 ratio to the total amount to be allotted 

4 under this clause as the number of unem5 ployed individuals in the State bears to the 

6 total number of unemployed individuals in 

7 all States. 

8 (3) RESERVATION AND ALLOTMENTS BY

9 STATES.— 

10 (A) RESERVATION.—Of the amount of 

11 funds allotted to a State under paragraph 

12 (2)(B) for each fiscal year, a State may reserve 

13 not more than 50 percent to carry out a State14 wide Community Corps. 

15 (B) ALLOTMENTS BY STATES.—A State 

16 shall provide all of the funds allotted to the 

17 State under paragraph (2)(B) that are not re18 served under subparagraph (A) to units of gen19 eral local government located in nonentitlement 

20 areas of the State to employ individuals under 

21 the Community Corps program, of which the 

22 State shall allot— 

23 (i) 25 percent to each such unit in an 

24 amount which bears the same ratio to the 

25 total amount made available under this 


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1 clause as the population of the unit bears 

2 to the total population of all such units; 

3 (ii) 25 percent to each such unit in an 

4 amount which bears the same ratio to the 

5 total amount made available under this 

6 clause as the extent of poverty in the unit 

7 bears to the extent of poverty in such 

8 units; and 

9 (iii) 50 percent to each such unit in 

10 an amount which bears the same ratio to 

11 the total amount made available under this 

12 clause as the number of unemployed indi13 viduals in the unit bears to the total num14 ber of unemployed individuals in all such 

15 units. 

16 (4) REALLOCATION.—If a State or entitlement 

17 community does not apply for an allotment under 

18 this section for any fiscal year, or if a State’s or en19 titlement community’s application is not approved, 

20 the Secretary shall reallot such amount to the re21 maining States or entitlement in accordance with 

22 paragraph (2). 

23 SEC. 1103. APPLICATION. 

24 (a) IN GENERAL.—Each State or entitlement com25 munity desiring to establish a Community Corps under 


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1 this part shall submit an application to the Secretary at 

2 such time, in such manner, and containing such informa3 tion as the Secretary may require. 

4 (b) FISCAL YEAR 2012 REQUIREMENTS.—For fiscal 

5 year 2012— 

6 (1) application requirements shall be released 

7 by Secretary within 30 days of enactment of this 

8 Act; 

9 (2) States and entitlement communities desiring 

10 to receive funds under this part for such fiscal year 

11 shall submit to the Secretary an application within 

12 60 days of the date of enactment of this Act; and 

13 (3) the first allotments under this part shall be 

14 awarded by the Secretary not later than 90 days 

15 after the date of enactment of this Act. 

16 SEC. 1104. ACTIVITIES OF THE COMMUNITY CORPS. 

17 (a) CONSULTATION.—A chief executive officer of a 

18 unit of general local government shall consult with the 

19 local community and labor organizations representing em20 ployees of such unit in determining the Community Corps 

21 positions that should be funded under this part for such 

22 unit for each fiscal year. 

23 (b) ACTIVITIES.—Each Community Corps funded 

24 under this part shall employee individuals to carry out 1 

25 or more of the following activities. 


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1 (1) ENERGY AUDITS AND CONSERVATION UP2 GRADES.—Perform energy audits of private homes 

3 and offer to weatherize them and install attic and 

4 crawl-space insulation, low-flow plumbing fixtures, 

5 and low-energy lighting fixtures. Provide home6 owners with objective information concerning the 

7 cost and benefits of more complicated conservation 

8 upgrades the homeowners could contract with pri9 vate firms to install. 

10 (2) RECYCLING AND DEMANUFACTURING.—Col11 lect categories of recyclables that currently are 

12 under-collected (such as electronic components and 

13 household paints and chemicals) and perform initial 

14 demanufacturing work to reclaim reusable materials. 

15 (3) URBAN LAND RECLAMATION AND ADDRESS16 ING BLIGHT.—Address the needs of distressed, fore17 closure-affected, and natural-disaster affected areas. 

18 For vacant or foreclosed buildings, conduct mainte19 nance, board up, or tear down, where appropriate. 

20 Salvage materials for recycling. Reclaim vacant land 

21 in urban areas for use as neighborhood parks and 

22 gardens. Test for the presence of hazardous mate23 rials, undertake necessary clean-up work, construct 

24 park and/or garden facilities, and establish mainte25 nance programs involving the local community. For 


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1 community gardens, operate model plantings to pro2 mote the project, involve local residents in the work, 

3 and provide instruction in urban gardening and 

4 farming. 

5 (4) RURAL CONSERVATION WORK.—In collabo6 ration with activities under the Park Improvement 

7 Corps under title III, perform conservation work. 

8 Repair and upgrade trail systems in parklands. Con9 struct shelters, bathrooms and recreational facilities. 

10 Undertake watercourse cleaning and reclamation 

11 projects. With proper training, conduct emergency 

12 work in cases of floods or wildfires, or other natural 

13 disasters. 

14 (5) PUBLIC PROPERTY MAINTENANCE AND

15 BEAUTIFICATION.—Under the direction of public en16 tities that own public property (including building 

17 interiors and exteriors and landscapes, and including 

18 community centers, playgrounds, and libraries), con19 duct maintenance, beautification, and other improve20 ment projects. Where appropriate, collaborate with 

21 projects funded under part 1 of this subtitle (School 

22 Improvement Corps). 

23 (6) HOUSING REHABILITATION.— 

24 (A) IN GENERAL.—Make improvements in 

25 privately owned rental housing units necessary 


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1 to improve such units so that they comply with 

2 the housing quality standards applicable to 

3 units assisted under section 8(o) of the United 

4 States Housing Act of 1937 (42 U.S.C. 

5 1437f(o)), but only if the owner of the unit en6 ters into an agreement sufficient to ensure that 

7 the owner— 

8 (i) pays the cost of materials used in 

9 the renovation work; and 

10 (ii) charges rent for the unit, during 

11 the 5-year period beginning upon comple12 tion of the rehabilitation pursuant to this 

13 paragraph, in an amount not exceeding the 

14 fair market rental established under sec15 tion 8(c) of such Act for a dwelling unit of 

16 the same size located in the same market 

17 area. 

18 (B) FREE OF CHARGE.—The Community 

19 Corps shall provide all labor required for any 

20 rehabilitation pursuant to this paragraph free 

21 of charge, except in the case of any major re22 pairs that the Corps lacks the capacity to per23 form. 

24 (7) NEW HOUSING CONSTRUCTION.—Construct 

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1 nities or the rehabilitate abandoned properties for 

2 use as residences, using the self-help homeowner 

3 participation model employed by Habitat for Hu4 manity International under which prospective home5 owners contribute a significant amount of sweat eq6 uity in the construction or rehabilitation of the 

7 home. Participating homeowners shall be selected on 

8 the basis of inability to otherwise purchase a home 

9 in the regular housing market and willingness and 

10 capability to assume the responsibilities of homeown11 ership. Construction materials shall be included in 

12 the cost of homeownership, but all construction labor 

13 shall be furnished free of charge by the Community 

14 Corps. 

15 (8) OTHER COMMUNITY IMPROVEMENT ACTIVI16 TIES.—Other community improvement activities as 

17 authorized by the Secretary. 

18 SEC. 1105. HIRING AND PREFERENCES. 

19 (a) IN GENERAL.—In hiring individuals for a Com20 munity Corps position under this part, a State or unit of 

21 general local may only employ unemployed individuals, ex22 cept in a case of a position (including a managerial posi23 tion) for which no qualified unemployed individual has ap24 plied. 


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1 (b) PRIORITIES IN RECRUITMENT AND HIRING.—In 

2 recruiting and hiring unemployed individuals for positions 

3 funded under this part, States and units of general local 

4 government shall target recruitment efforts and prioritize 

5 hiring with respect to individuals who are— 

6 (1) unemployed individuals who have exhausted 

7 their entitlement to unemployment compensation; 

8 (2) unemployed veterans of the Armed Forces 

9 and unemployed members of the reserve components 

10 of the Armed Forces; 

11 (3) unemployed individuals, who immediately 

12 before employment in the Community Corps, are eli13 gible for unemployment compensation payable under 

14 any State law or Federal unemployment compensa15 tion law, including any additional compensation or 

16 extended compensation under such laws; 

17 (4) unemployed individuals who are not eligible 

18 to receive unemployment compensation because they 

19 do not have sufficient wages to meet the minimum 

20 qualifications for such compensation; or 

21 (5) unemployed young people, including those 

22 who have not previously been employed. 

23 (c) STATE EMPLOYMENT AGENCIES.—In hiring for 

24 Community Corps positions under this part, a State or 

25 unit of general local government shall utilize, among other 


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1 methods, a State or local employment agencies, such as 

2 a one-stop career center or one-stop partner. 

3 (d) NOTICE.—Each listing for a position for a Com4 munity Corps shall be posted on a State or local employ5 ment web site. 

6 SEC. 1106. ADDITIONAL REQUIREMENTS FOR STATES AND 

7 UNITS OF GENERAL LOCAL GOVERNMENT. 

8 (a) ADMINISTRATIVE EXPENSES.—Each State or 

9 unit of general local government receiving an allotment 

10 under section 1102 may not use more than 5 percent of 

11 the allotment for administrative purposes. 

12 (b) COMPLIANCE WITH LOCAL LAWS AND CON13 TRACTS.—In hiring individuals for positions funded under 

14 this part, or using administrative funds under this part 

15 to continue to provide employee compensation for existing 

16 employees, a State or unit of general local government 

17 shall comply with all applicable Federal, State, and local 

18 laws, personnel policies and regulations, and collective bar19 gaining agreements, as if such individual were hired, or 

20 such employee compensation was provided, without assist21 ance under this part. 

22 (c) COORDINATION.—To the maximum extent prac23 ticable, each State or unit of general local government re24 ceiving an allotment under section 1102, shall— 


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1 (1) integrate education and job skills training, 

2 including basic skills instruction and secondary edu3 cation services; 

4 (2) coordinate to the maximum extent feasible 

5 with pre-apprenticeship and apprenticeship pro6 grams; and 

7 (3) provide jobs in sectors where job growth is 

8 most likely, as determined by the Secretary, and in 

9 which career advancement opportunities exist to 

10 maximize long-term, sustainable employment for in11 dividuals after employment funded under this sub12 title ends. 

13 (d) SUPPLEMENT, NOT SUPPLANT.—A State or unit 

14 of general local government receiving funding under this 

15 part shall use such Federal funds only to supplement and 

16 not supplant the amount of funds that would, in the ab17 sence of such Federal funds, be available to pay the cost 

18 of employing individuals to perform the types of work au19 thorized under this part. 

20 SEC. 1107. EMPLOYMENT STATUS AND COMPENSATION. 

21 (a) EMPLOYEE STATUS.— 

22 (1) IN GENERAL.—An individual hired for a po23 sition funded under this part shall— 


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1 (A) be considered an employee of the State 

2 or unit of general local government by which 

3 such individual was hired; 

4 (B) receive the same employee compensa5 tion, have the same rights (including health in6 surance benefits and paid holidays and vaca7 tions) and responsibilities and job classifica8 tions, and be subject to the same job standards, 

9 employer policies, and collective bargaining 

10 agreements as if such individual was hired with11 out assistance under this part; and 

12 (C) fill a position that offers full-time, full13 year employment. 

14 (2) DEFINITIONS.—For purposes of this sub15 section— 

16 (A) the term ‘‘full-time’’ when used in rela17 tion to employment has the meaning already es18 tablished or, if the meaning has not been estab19 lished, determined to be appropriate for pur20 poses of this part, by the State or unit of gen21 eral local government hiring an individual under 

22 this part; and 

23 (B) the term ‘‘full-year’’ when used in rela24 tion to employment means a position that pro25 vides employment for a 12-month period, except 


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1 that in the case of a position that provides a 

2 service required by a State or unit of general 

3 local government for only the duration of a 

4 school year, the term means a position that pro5 vides employment for such duration. 

6 (b) LIMIT ON NUMBER OF EXECUTIVE, ADMINISTRA7 TIVE, OR PROFESSIONAL POSITIONS.— 

8 (1) UNITS.—Of the total number of positions 

9 funded under this part for a fiscal year for each 

10 State or unit of general local government— 

11 (A) not more than 20 percent shall be in 

12 a bona fide executive, administrative, or profes13 sional capacity; and 

14 (B) at least 80 percent shall not be in a 

15 bona fide executive, administrative, or profes16 sional capacity. 

17 (2) DEFINITIONS.—For purposes of this sub18 section, the terms ‘‘bona fide executive’’, ‘‘bona fide 

19 administrative’’, and ‘‘bona fide professional’’ when 

20 used in relation to capacity shall have the meanings 

21 given such terms under section 13(a)(1) of the Fair 

22 Labor Standards Act of 1938 (29 U.S.C. 

23 213(a)(1)). 

24 (c) TOTAL AMOUNT OF COMPENSATION.—For each 

25 fiscal year for which funds are appropriated to carry out 


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1 this part, each State or unit of general local government 

2 that receives funds under this part for any such fiscal year 

3 shall use such funds to provide an amount equal to the 

4 total amount of employee compensation for individuals 

5 hired under this part. 

6 (d) LIMIT ON PERIOD OF EMPLOYMENT.—Notwith7 standing any agreement or other provision of law (other 

8 than those provisions of law pertaining to civil rights in 

9 employment), a State or unit of general local government 

10 shall not be obligated to employ the individuals hired 

11 under this part or retain the positions filled by such indi12 viduals beyond the period for which the State or unit re13 ceives funding under this part. 

14 SEC. 1108. NONDISPLACEMENT OF EXISTING EMPLOYEES. 

15 (a) IN GENERAL.—A State or unit of general local 

16 government may not employ an individual for a position 

17 funded under this part, if— 

18 (1) employing such individual will result in the 

19 layoff or partial displacement (such as a reduction 

20 in hours, wages, or employee benefits) of an existing 

21 employee of the unit; or 

22 (2) such individual will perform the same or 

23 substantially similar work that had previously been 

24 performed by an employee of the unit who— 


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1 (A) has been laid off or partially displaced 

2 (as such term is described in paragraph (1)); 

3 and 

4 (B) has not been offered by the unit, to be 

5 restored to the position the employee had imme6 diately prior to being laid off or partially dis7 placed. 

8 (b) ELIMINATION OF POSITION.—For the purposes 

9 of this subsection, a position shall be considered to have 

10 been eliminated by a State or unit of general local govern11 ment if the position has remained unfilled and the unit 

12 has not sought to fill such position for at least a period 

13 of one month. 

14 (c) PROMOTIONAL OPPORTUNITIES.—An individual 

15 may not be hired for a position funded under this part 

16 in a manner that infringes upon the promotional opportu17 nities of an existing employee (as of the date of such hir18 ing) of a unit receiving funding under this part. 

19 SEC. 1109. DISPUTE RESOLUTIONS, WHISTLEBLOWER HOT20 LINE, AND ENFORCEMENT BY THE SEC21 RETARY. 

22 (a) ESTABLISHMENT OF ARBITRATION PROCE23 DURE.— 

24 (1) IN GENERAL.—Each unit of general local 

25 government that is an entitlement community and 


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1 each State that receives funding under this part 

2 shall agree to the arbitration procedure described in 

3 this subsection to resolve disputes described in sub4 sections (b) and (c). 

5 (2) WRITTEN GRIEVANCES.— 

6 (A) IN GENERAL.—If an employee (or an 

7 employee representative) wishes to use the arbi8 tration procedure described in this subsection, 

9 such party shall file a written grievance within 

10 the time period required under subsection (b) or 

11 (c), as applicable, simultaneously with the chief 

12 executive officer of a unit or State involved in 

13 the dispute and the Secretary. 

14 (B) IN-PERSON MEETING.—Not later than 

15 10 days after the date of the filing of the griev16 ance, the chief executive officer (or the designee 

17 of the chief executive officer) shall have an in18 person meeting with the party to resolve the 

19 grievance. 

20 (3) ARBITRATION.— 

21 (A) SUBMISSION.—If the grievance is not 

22 resolved within the time period described in 

23 paragraph (2)(B), a party, by written notice to 

24 the other party involved, may submit such 

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1 fied arbitrator who is jointly selected and inde2 pendent of the parties. 

3 (B) APPOINTMENT BY SECRETARY.—If the 

4 parties cannot agree on an arbitrator within 5 

5 days of submitting the grievance to binding ar6 bitration under subparagraph (A), one of the 

7 parties may submit a request to the Secretary 

8 to appoint a qualified and independent arbi9 trator. The Secretary shall appoint a qualified 

10 and independent arbitrator within 15 days after 

11 receiving the request. 

12 (C) HEARING.—Unless the parties mutu13 ally agree otherwise, the arbitrator shall con14 duct a hearing on the grievance and issue a de15 cision not later than 30 days after the date 

16 such arbitrator is selected or appointed. 

17 (D) COSTS.— 

18 (i) IN GENERAL.—Except as provided 

19 in clause (ii), the cost of an arbitration 

20 proceeding shall be divided evenly between 

21 the parties to the arbitration. 

22 (ii) EXCEPTION.—If a grievant pre23 vails under an arbitration proceeding, the 

24 unit of general local government or State 

25 involved in the dispute shall pay the cost 


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1 of such proceeding, including attorneys’ 

2 fees. 

3 (b) DISPUTES CONCERNING THE ALLOTMENT OF

4 FUNDS.—In the case where a dispute arises as to whether 

5 a unit of general local government that is an entitlement 

6 community or State has improperly requested funds for 

7 services, an employee or employee representative of the 

8 unit or State may file a grievance under subsection (a) 

9 not later than 15 days after public notice of an intent to 

10 submit an application under section 1103 is published in 

11 accordance with paragraph (1)(C) of such section. Upon 

12 receiving a copy of the grievance, the Secretary shall with13 hold the funds subject to such grievance, unless and until 

14 the grievance is resolved under subsection (a), by the par15 ties or an arbitrator in favor of providing such funding. 

16 (c) ALL OTHER DISPUTES.— 

17 (1) IN GENERAL.—In the case of a dispute not 

18 covered under subsection (b) concerning compliance 

19 with the requirements of this part by a unit of gen20 eral local government that is an entitlement commu21 nity or State receiving funds under this part, an em22 ployee or employee representative of the unit or 

23 State may file a grievance under subsection (a) not 

24 later than 90 days after the dispute arises. In such 

25 cases, an arbitrator may award such remedies as are 


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1 necessary to make the grievant whole, including the 

2 reinstatement of a displaced employee or the pay3 ment of back wages, and may submit recommenda4 tions to the Secretary to ensure further compliance 

5 with the requirements of this part, including rec6 ommendations to suspend or terminate funding, or 

7 to require the repayment of funds received under 

8 this part during any period of noncompliance. 

9 (2) EXISTING GRIEVANCE PROCEDURES.—A 

10 party to a dispute described in paragraph (1) may 

11 use the existing grievance procedure of a unit or 

12 State involved in such dispute, or the arbitration 

13 procedure described in this subsection, to resolve 

14 such dispute. 

15 (d) PARTY DEFINED.—For purposes of subsections 

16 (a), (b), and (c), the term ‘‘party’’ means an employee, 

17 employee representative, unit of general local government, 

18 or State, involved in a dispute described in subsection (b) 

19 or (c). 

20 (e) WHISTLEBLOWER HOTLINE; ENFORCEMENT BY

21 THE SECRETARY.— 

22 (1) WHISTLEBLOWER HOTLINE.—The Sec23 retary shall post on a publicly accessible Internet 

24 Web site of the Department of Labor the contact in25 formation for reporting noncompliance with this part 


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1 by a State or unit of general local government or in2 dividual receiving funding under this part. 

3 (2) ENFORCEMENT BY THE SECRETARY.— 

4 (A) IN GENERAL.—If the Secretary re5 ceives a complaint alleging noncompliance with 

6 this part, the Secretary may conduct an inves7 tigation and after notice and an opportunity for 

8 a hearing, may order such remedies as the Sec9 retary determines appropriate, including— 

10 (i) withholding further funds under 

11 this part to a noncompliant entity; 

12 (ii) requiring the entity to make an 

13 injured party whole; or 

14 (iii) requiring the entity to repay to 

15 the Secretary any funds received under 

16 this part during any period of noncompli17 ance. 

18 (B) DEFINITION.—For purposes of this 

19 paragraph, the term ‘‘entity’’ means State, unit 

20 of general local government, or individual. 

21 (C) RECOMMENDATION BY AN ARBI22 TRATOR.—A remedy described in subparagraph 

23 (A) may also be ordered by the Secretary upon 

24 recommendation by an arbitrator appointed or 

25 selected under this section. 


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1 SEC. 1110. DEFINITIONS. 

2 In this part: 

3 (1) IN GENERAL.—The terms ‘‘city’’; ‘‘extent of 

4 poverty’’; ‘‘metropolitan city’’; ‘‘urban county’’; 

5 ‘‘nonentitlement area’’; ‘‘population’’; and ‘‘State’’ 

6 have the meanings given the terms in section 102 of 

7 the Housing and Community Development Act of 

8 1974 (42 U.S.C. 5302). 

9 (2) BENEFITS.—The term ‘‘benefits’’ has the 

10 meaning given the term ‘‘employment benefits’’ in 

11 section 101 of the Family and Medical Leave Act of 

12 1993 (29 U.S.C. 2611). 

13 (3) EMPLOYEE COMPENSATION.—The term 

14 ‘‘employee compensation’’ includes wages and bene15 fits. 

16 (4) ENTITLEMENT COMMUNITIES.—The term 

17 ‘‘entitlement communities’’ includes metropolitan cit18 ies and urban counties. 

19 (5) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

20 has the meaning given the term in section 4(e) of 

21 the Indian Self-Determination and Education Assist22 ance Act (25 U.S.C. 450b(e)). 

23 (6) SECRETARY.—The term ‘‘Secretary’’ means 

24 the Secretary of Labor. 

25 (7) UNEMPLOYED INDIVIDUAL.—The term ‘‘un26 employed individual’’ has the meaning given such 


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1 term in section 101 of the Workforce Investment 

2 Act of 1998 (29 U.S.C. 2801). 

3 (8) UNIT OF GENERAL LOCAL GOVERNMENT.— 

4 The term ‘‘unit of general local government’’ means 

5 any city, county, town, township, parish, village, or 

6 other general purpose political subdivision of a 

7 State; Guam, the Northern Mariana Islands, the 

8 Virgin Islands, and American Samoa, or a general 

9 purpose political subdivision thereof; a combination 

10 of such political subdivisions that is recognized by 

11 the Secretary; and the District of Columbia. 

12 (9) VETERAN.—The term ‘‘veteran’’ has the 

13 meaning given such term in section 101 of the 

14 Workforce Investment Act (29 U.S.C. 2801). 

15 (10) WAGE.—The term ‘‘wage’’ has the mean16 ing given such term in section 3 of the Fair Labor 

17 Standards Act of 1938 (29 U.S.C. 203). 

18 PART 7—CHILD DEVELOPMENT CORPS 

19 SEC. 1121. PURPOSE. 

20 It is the purpose of this part to provide for the cre21 ation of an additional 100,000 jobs through the Head 

22 Start Act. 

23 SEC. 1122. CHILD DEVELOPMENT CORPS. 

24 (a) AMENDMENTS TO THE HEAD START ACT.—The 

25 Head Start Act (42 U.S.C. 9831 et seq.) is amended— 


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1 (1) by inserting after section 639 the following: 

2 ‘‘SEC. 639A. AUTHORIZATION OF APPROPRIATIONS FOR EM3 PLOYING EARLY HEAD START PROFESSIONAL 

4 EMPLOYEES. 

5 ‘‘There is authorized to be appropriated 

6 $3,000,000,000 for each of the fiscal years 2012 and 2013 

7 to carry out section 640A.’’; and 

8 (2) by inserting after section 640 the following: 

9 ‘‘SEC. 640A. EMPLOYMENT OF ADDITIONAL INFANT AND 

10 TODDLER SPECIALISTS. 

11 ‘‘(a) EMPLOYMENT OF ADDITIONAL FULL-TIME IN12 FANT AND TODDLER SPECIALISTS.—Not later than 90 

13 days after the date of the enactment of this Act, the Sec14 retary shall provide funds appropriated under section 

15 639A to Early Head Start programs to pay the cost of 

16 employing additional full-time infant and toddler special17 ists. 

18 ‘‘(b) FUNDS TO SUPPLEMENT NOT SUPPLANT.—An 

19 Early Head Start program that receives funds under sub20 section (a) shall use such funds only to supplement and 

21 not supplant the amount of funds that would, in the ab22 sence of such Federal funds, be available to pay the cost 

23 of employing additional full-time infant and toddler spe24 cialists.’’. 


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1 (b) APPROPRIATION.—There is hereby appropriated 

2 out of any money in the Treasury not otherwise appro3 priated $3,000,000,000 for each of the fiscal years 2012 

4 and 2013 to carry out section 640A of the Head Start 

5 Act. 

6 PART 8—ON-THE-JOB TRAINING 

7 SEC. 1131. APPROPRIATION. 

8 The following sums are appropriated, out of any 

9 money in the Treasury not otherwise appropriated, and 

10 for the following purposes, namely: 

11 DEPARTMENT OF LABOR 

12 EMPLOYMENT AND TRAINING ADMINISTRATION

13 TRAINING AND EMPLOYMENT SERVICES

14 For an additional amount for ‘‘Training and Employ15 ment Services’’ for activities under the Workforce Invest16 ment Act of 1998 (‘‘WIA’’), $500,000,000 which shall be 

17 available for obligation on the date of enactment of this 

18 Act, Provided, That such funds shall be used solely for 

19 on-the-job training (as such term is defined in section 

20 101(31) of the WIA): Provided further, That 

21 $250,000,000 of such amount shall be for such on-the22 job training for individuals who reside in local areas 

23 that— 


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1 (1) have a poverty rate of 12 percent or more 

2 for each Public Use Microdata Area (PUMA) in 

3 such local area; or 

4 (2) have an unemployment rate that is 2 per5 cent higher than the national unemployment rate. 

6 PART 9—GENERAL PROVISIONS 

7 SEC. 1141. GENERAL REQUIREMENTS FOR ENTITIES RE8 CEIVING FUNDING UNDER THIS SUBTITLE. 

9 (a) COMPLIANCE WITH EXISTING LAWS AND CON10 TRACTS.—In hiring individuals for positions funded under 

11 this subtitle, or using funds under this subtitle to continue 

12 to provide employee compensation for existing employees, 

13 a State, unit of general local government, community14 based organization, or business shall comply with all appli15 cable Federal, State, and local laws relating to health, 

16 safety, civil rights, personnel policies and regulations, 

17 labor, and collective bargaining agreements, as if such in18 dividual were hired, or such employee compensation was 

19 provided, without assistance under this subtitle. 

20 (b) COMPLIANCE WITH FEDERAL CIVIL RIGHTS

21 LAWS.—Federal civil rights laws described in subsection 

22 (a) shall include the following: 

23 (1) Title VI of the Civil Rights Act of 1964. 

24 (2) Title IX of the Education Amendments of 

25 1972. 


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1 (3) Sections 503 and 504 of the Rehabilitation 

2 Act of 1973. 

3 (4) The Age Discrimination Act of 1975. 

4 SEC. 1142. REPORTING. 

5 (a) REPORTS TO SECRETARIES.—At the end of fiscal 

6 year 2012 and 2013, each State, unit of general local gov7 ernment, community-based organization, or business, or 

8 other entity that receives assistance under this subtitle 

9 shall submit to the Secretary that provided such assistance 

10 a report on the number of jobs created and, if applicable, 

11 the projects completed with funding under this subtitle. 

12 (b) REPORTS TO CONGRESS.—Each Secretary that 

13 receives a report under subsection (a) shall provide such 

14 reports to Congress not later than July 1, 2014. 

15 SEC. 1143. HIRING AND PREFERENCES. 

16 (a) IN GENERAL.—In hiring individuals for positions 

17 funded under part 1, part 5, and part 7, an entity de18 scribed in section 1142 receiving funding under this sub19 title may only employ unemployed individuals, except in 

20 a case of a position (including a managerial position) for 

21 which no qualified unemployed individual has applied. 

22 (b) PRIORITIES IN RECRUITMENT AND HIRING.—In 

23 recruiting and hiring unemployed individuals for positions 

24 described in subsection, the entity shall target recruitment 


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1 efforts and prioritize hiring with respect to individuals who 

2 are— 

3 (1) unemployed individuals who have exhausted 

4 their entitlement to unemployment compensation; 

5 (2) unemployed veterans of the Armed Forces 

6 and unemployed members of the reserve components 

7 of the Armed Forces; 

8 (3) unemployed individuals, who immediately 

9 before employment in the programs described in sub10 paragraph (a), are eligible for unemployment com11 pensation payable under any State law or Federal 

12 unemployment compensation law, including any ad13 ditional compensation or extended compensation 

14 under such laws; 

15 (4) unemployed individuals who are not eligible 

16 to receive unemployment compensation because they 

17 do not have sufficient wages to meet the minimum 

18 qualifications for such compensation; or 

19 (5) in the case of employment under subpart B 

20 of part 1, unemployed young people, including those 

21 who have not previously been employed. 

22 (c) RULE OF CONSTRUCTION.—Nothing in this sec23 tion shall supersede the qualification requirements under 

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1 sure where applicable for health corps or certification for 

2 early childhood development workers. 

3 SEC. 1144. FLEXIBILITY ON HIRING. 

4 Funding under this subtitle shall be tied to the job 

5 created with the funding rather than to the individual 

6 awarded the job, and entities receiving funding under this 

7 subtitle are authorized to hire new employees to replace 

8 an individual that was hired with such funds, but who has 

9 left the position. 

10 SEC. 1145. NONDISPLACEMENT. 

11 (a) NONDISPLACEMENT OF EXISTING EMPLOYEES.— 

12 (1) IN GENERAL.—An entity described in sec13 tion 1142 that receives funding under this subtitle 

14 may not employ an individual for a position funded 

15 under this subtitle, if— 

16 (A) employing such individual will result in 

17 the layoff or partial displacement (such as a re18 duction in hours, wages, or employee benefits) 

19 of an existing employee of the unit or organiza20 tion; or 

21 (B) such individual will perform the same 

22 or substantially similar work that had pre23 viously been performed by an employee of the 

24 unit or organization who— 


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1 (i) has been laid off or partially dis2 placed (as such term is described in sub3 paragraph (A)); and 

4 (ii) has not been offered by the unit 

5 or organization, to be restored to the posi6 tion the employee had immediately prior to 

7 being laid off or partially displaced. 

8 (2) ELIMINATION OF POSITION.—For the pur9 poses of this subsection, a position shall be consid10 ered to have been eliminated by an entity receiving 

11 funding under this subtitle if the position has re12 mained unfilled and the unit or organization has not 

13 sought to fill such position for at least a period of 

14 one month. 

15 (3) PROMOTIONAL OPPORTUNITIES.—An indi16 vidual may not be hired for a position funded under 

17 this part in a manner that infringes upon the pro18 motional opportunities of an existing employee (as of 

19 the date of such hiring) of an entity receiving fund20 ing under this subtitle. 

21 (b) NONDISPLACEMENT OF LOCAL GOVERNMENT

22 SERVICES.—A business or community-based organization 

23 receiving funds under this part may not use such funds 

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1 vided by a unit of general local government where such 

2 services or functions are provided by the organization. 

3 (c) NONDISPLACEMENT OF LOCAL BUSINESS.— 

4 Where appropriate, any unit of government or community5 based organizations receiving funds under this subtitle 

6 cannot use those funds to provide services or functions 

7 that are currently provided by a local business. 

8 SEC. 1146. EMPLOYMENT STATUS AND COMPENSATION IN 

9 NEW PROGRAMS. 

10 (a) EMPLOYEE STATUS.—An individual hired for a 

11 position funded under part 1, part 5, or part 6, or section 

12 1081 of part 4 shall— 

13 (1) be considered an employee of the unit of 

14 general local government, business, or community15 based organization, by which such individual was 

16 hired; and 

17 (2) receive the same employee compensation, 

18 have the same rights and responsibilities and job 

19 classifications, and be subject to the same job stand20 ards, employer policies, and collective bargaining 

21 agreements as if such individual was hired without 

22 assistance under this subtitle. 

23 (b) TOTAL AMOUNT OF COMPENSATION.—For each 

24 fiscal year for which funds are appropriated to carry out 

25 this subtitle, each unit of general local government, each 


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1 business, and each community-based organization that re2 ceives funds under the provisions described in subsection 

3 (a) for any such fiscal year shall use such funds to provide 

4 an amount equal to the total amount of employee com5 pensation for the individuals such the entity hired under 

6 this subtitle. 

7 (c) LIMIT ON PERIOD OF EMPLOYMENT.—Notwith8 standing any agreement or other provision of law (other 

9 than those provisions of law pertaining to civil rights in 

10 employment), a unit of general local government, business, 

11 or community-based organization shall not be obligated to 

12 employ the individuals hired under this subtitle or retain 

13 the positions filled by such individuals beyond the period 

14 for which the unit or organization receives funding under 

15 the provisions described in subsection (a). 

16 SEC. 1147. DISPUTE RESOLUTIONS, WHISTLEBLOWER HOT17 LINE, AND ENFORCEMENT BY THE SEC18 RETARY. 

19 (a) ESTABLISHMENT OF ARBITRATION PROCE20 DURE.— 

21 (1) IN GENERAL.—Each entity that receives 

22 funding under this subtitle shall agree to the arbi23 tration procedure described in this subsection to re24 solve disputes described in subsections (b) and (c). 

25 (2) WRITTEN GRIEVANCES.— 


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1 (A) IN GENERAL.—If an employee (or an 

2 employee representative) wishes to use the arbi3 tration procedure described in this subsection, 

4 such party shall file a written grievance within 

5 the time period required under subsection (b) or 

6 (c), as applicable, simultaneously with the chief 

7 executive officer of an entity involved in the dis8 pute and the Secretary of Labor. 

9 (B) IN-PERSON MEETING.—Not later than 

10 10 days after the date of the filing of the griev11 ance, the chief executive officer (or the designee 

12 of the chief executive officer) shall have an in13 person meeting with the party to resolve the 

14 grievance. 

15 (3) ARBITRATION.— 

16 (A) SUBMISSION.—If the grievance is not 

17 resolved within the time period described in 

18 paragraph (2)(B), a party, by written notice to 

19 the other party involved, may submit such 

20 grievance to binding arbitration before a quali21 fied arbitrator who is jointly selected and inde22 pendent of the parties. 

23 (B) APPOINTMENT BY SECRETARY.—If the 

24 parties cannot agree on an arbitrator within 5 

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1 bitration under subparagraph (A), one of the 

2 parties may submit a request to the Secretary 

3 of Labor to appoint a qualified and independent 

4 arbitrator. The Secretary of Labor shall appoint 

5 a qualified and independent arbitrator within 

6 15 days after receiving the request. 

7 (C) HEARING.—Unless the parties mutu8 ally agree otherwise, the arbitrator shall con9 duct a hearing on the grievance and issue a de10 cision not later than 30 days after the date 

11 such arbitrator is selected or appointed. 

12 (D) COSTS.— 

13 (i) IN GENERAL.—Except as provided 

14 in clause (ii), the cost of an arbitration 

15 proceeding shall be divided evenly between 

16 the parties to the arbitration. 

17 (ii) EXCEPTION.—If a grievant pre18 vails under an arbitration proceeding, the 

19 entity involved in the dispute shall pay the 

20 cost of such proceeding, including attor21 neys’ fees. 

22 (b) DISPUTES CONCERNING THE ALLOTMENT OF

23 FUNDS.—In the case where a dispute arises as to whether 

24 an entity has improperly requested funds for services, an 

25 employee or employee representative of entity may file a 


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1 grievance under subsection (a) not later than 15 days 

2 after public notice of an intent to request funds for serv3 ices. Upon receiving a copy of the grievance, the Secretary 

4 of Labor shall withhold the funds subject to such griev5 ance, unless and until the grievance is resolved under sub6 section (a), by the parties or an arbitrator in favor of pro7 viding such funding. 

8 (c) ALL OTHER DISPUTES.— 

9 (1) IN GENERAL.—In the case of a dispute not 

10 covered under subsection (b) concerning compliance 

11 with the requirements of this subtitle by an entity 

12 receiving funds under this part, an employee or em13 ployee representative of an entity may file a griev14 ance under subsection (a) not later than 90 days 

15 after the dispute arises. In such cases, an arbitrator 

16 may award such remedies as are necessary to make 

17 the grievant whole, including the reinstatement of a 

18 displaced employee or the payment of back wages, 

19 and may submit recommendations to the Secretary 

20 of Labor to ensure further compliance with the re21 quirements of this subtitle, including recommenda22 tions to suspend or terminate funding, or to require 

23 the repayment of funds received under this part dur24 ing any period of noncompliance. 


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1 (2) EXISTING GRIEVANCE PROCEDURES.—A 

2 party to a dispute described in paragraph (1) may 

3 use the existing grievance procedure of an entity in4 volved in such dispute, or the arbitration procedure 

5 described in this subsection, to resolve such dispute. 

6 (d) PARTY DEFINED.—For purposes of subsections 

7 (a), (b), and (c), the term ‘‘party’’ means an employee, 

8 employee representative, or entity involved in a dispute de9 scribed in subsection (b) or (c). 

10 (e) WHISTLEBLOWER HOTLINE; ENFORCEMENT BY

11 THE SECRETARY.— 

12 (1) WHISTLEBLOWER HOTLINE.—The Sec13 retary of Labor shall post on a publicly accessible 

14 Internet Web site of the Department of Labor the 

15 contact information for reporting noncompliance 

16 with this part by a State, unit of general local gov17 ernment, community-based organization, business, or 

18 individual receiving funding under this part. 

19 (2) ENFORCEMENT BY THE SECRETARY.— 

20 (A) IN GENERAL.—If the Secretary of 

21 Labor receives a complaint alleging noncompli22 ance with this subtitle, the Secretary may con23 duct an investigation and after notice and an 

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1 edies as the Secretary of Labor determines ap2 propriate, including— 

3 (i) withholding further funds under 

4 this part to a noncompliant entity; 

5 (ii) requiring the entity to make an 

6 injured party whole; or 

7 (iii) requiring the entity to repay to 

8 the Secretary of Labor any funds received 

9 under this part during any period of non10 compliance. 

11 (B) RECOMMENDATION BY AN ARBI12 TRATOR.—A remedy described in subparagraph 

13 (A) may also be ordered by the Secretary of 

14 Labor upon recommendation by an arbitrator 

15 appointed or selected under this section. 

16 SEC. 1148. TERMINATION. 

17 Programs and funding authorized under this subtitle 

18 shall be phased-out over a 90-day period if national unem19 ployment, as measured by the Bureau of Labor Statistics, 

20 falls under 5 percent. Such phase-out shall ensure that— 

21 (1) an individual hired under this subtitle shall 

22 not be fired prematurely; 

23 (2) projects funded under this subtitle shall be 

24 continued until completion; and 


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1 (3) an individual hired under this subtitle may 

2 be replaced when such individual leaves the position 

3 for which the individual was hired. 

4 Subtitle B—Buy American 

5 Enhancement Act of 2011 

6 SEC. 1201. SHORT TITLE. 

7 This subtitle may be cited as the ‘‘The Buy American 

8 Enhancement Act of 2011’’. 

9 SEC. 1202. DOMESTIC CONTENT REQUIREMENT FOR THE 

10 BUY AMERICAN ACT. 

11 (a) SUBSTANTIALLY ALL DEFINED.—Section 8301 

12 of title 41, United States Code, is amended— 

13 (1) by redesignating paragraph (2) as para14 graph (3); and 

15 (2) by inserting after paragraph (1) the fol16 lowing new paragraph: 

17 ‘‘(2) SUBSTANTIALLY ALL.—Articles, materials, 

18 or supplies shall be treated as made substantially all 

19 from articles, materials, or supplies mined, pro20 duced, or manufactured in the United States if the 

21 cost of the domestic components of such articles, 

22 materials, or supplies exceeds 75 percent of the total 

23 cost of all components of such articles, materials, or 

24 supplies.’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 subsection (a) shall take effect not later than 180 days 

3 after the date of the enactment of this subtitle. 

4 SEC. 1203. REQUIREMENT FOR INDIRECT CONTRACTS TO 

5 COMPLY WITH THE BUY AMERICAN ACT. 

6 (a) CONTRACT REQUIREMENT.—The head of each 

7 Federal agency shall ensure that each contract described 

8 in subsection (b) awarded by such Federal agency includes 

9 a provision requiring any articles, materials, and supplies 

10 provided under the contract to comply with chapter 83 of 

11 title 41, United States Code (popularly referred to as the 

12 ‘‘Buy American Act’’), subject to the exceptions to that 

13 chapter provided in the Trade Agreements Act of 1979 

14 (19 U.S.C. 2501 et seq.) or otherwise provided by law. 

15 (b) CONTRACTS DESCRIBED.—The contracts de16 scribed in this subsection include each of the following: 

17 (1) Housing leases, including military housing 

18 provided by a private entity. 

19 (2) Power purchase agreements. 

20 (3) Enhanced-use leases. 

21 (4) Energy savings performance contracts. 

22 (5) Utility energy service contracts. 


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1 SEC. 1204. BUY AMERICAN WAIVER REPORTING REQUIRE2 MENT. 

3 (a) WAIVER DEFINED.—Section 8301 of title 41, 

4 United States Code, as amended by section 1202, is fur5 ther amended by adding at the end the following new para6 graph: 

7 ‘‘(4) WAIVER.—The term ‘waiver’ means, with 

8 respect to the acquisition of an article, material, or 

9 supply for public use, the inapplicability of this 

10 chapter to the acquisition by reason of any of the 

11 following: 

12 ‘‘(A) A determination by the head of the 

13 Federal agency concerned that the acquisition 

14 is inconsistent with the public interest. 

15 ‘‘(B) A determination by the head of the 

16 Federal agency concerned that the cost of the 

17 acquisition is unreasonable. 

18 ‘‘(C) Use outside of the United States. 

19 ‘‘(D) A determination by the head of the 

20 Federal agency concerned that the article, ma21 terial, or supply is not mined, produced, or 

22 manufactured in the United States in sufficient 

23 and reasonably available commercial quantities 

24 of a satisfactory quality. 

25 ‘‘(E) Procured under a contract with an 

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1 purchase threshold under section 1902 of this 

2 title. 

3 ‘‘(F) An exception under the Trade Agree4 ments Act of 1979 (19 U.S.C. 2501 et seq.). 

5 ‘‘(G) Any other exception otherwise pro6 vided by law.’’. 

7 (b) WAIVER REPORTING REQUIREMENT.—Section 

8 8302 of title 41, United States Code, is amended by add9 ing at the end the following new section: 

10 ‘‘(c) WAIVER REPORTING REQUIREMENT.—The head 

11 of each Federal agency shall establish a location on the 

12 website of such agency for the publication of waivers ac13 cessible by the public and shall publish a list at such loca14 tion of each waiver granted under this chapter not later 

15 than 30 days after such waiver is granted.’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall take effect not later than 180 days after 

18 the date of the enactment of this subtitle. 

19 SEC. 1205. IMPLEMENTATION THROUGH THE FEDERAL AC20 QUISITION REGULATION. 

21 Not later than 180 days after the date of the enact22 ment of this subtitle, the Federal Acquisition Regulation 

23 shall be revised as necessary to implement the provisions 

24 of this subtitle. 


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1 SEC. 1206. DEFINITIONS. 

2 In this subtitle: 

3 (1) ENERGY SAVINGS PERFORMANCE CON4 TRACT.—The term ‘‘energy savings performance 

5 contract’’ has the meaning given that term under 

6 section 436.31 of title 10, Code of Federal Regula7 tions. 

8 (2) FEDERAL AGENCY.—The term ‘‘Federal 

9 agency’’ means any executive agency (as defined in 

10 section 133 of title 41, United States Code) or any 

11 establishment in the legislative or judicial branch of 

12 the Federal Government. 

13 Subtitle C—Fairness and Trans14 parency in Contracting Act of 

15 2011 

16 SEC. 1301. SHORT TITLE. 

17 This subtitle may be cited as the ‘‘Fairness and 

18 Transparency in Contracting Act of 2011’’. 

19 SEC. 1302. DEFINITIONS. 

20 In this subtitle— 

21 (1) the terms ‘‘Administration’’ and ‘‘Adminis22 trator’’ mean the Small Business Administration 

23 and the Administrator thereof, respectively; 

24 (2) the term ‘‘parent company’’, relating to a 

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1 dividual that owns not less than 51 percent of that 

2 business concern; 

3 (3) the terms ‘‘small business concern’’, ‘‘small 

4 business concern owned and controlled by veterans’’, 

5 ‘‘small business concern owned and controlled by 

6 service-disabled veterans’’, and ‘‘small business con7 cern owned and controlled by women’’ have the 

8 meanings given those terms in section 3 of the Small 

9 Business Act (15 U.S.C. 632), as amended by this 

10 subtitle; and 

11 (4) the term ‘‘small business concern owned 

12 and controlled by socially and economically disadvan13 taged individuals’’ has the meaning given that term 

14 in section 8(d)(3)(C) of the Small Business Act (15 

15 U.S.C. 637(d)(3)(C)). 

16 SEC. 1303. PURPOSE. 

17 The purpose of this subtitle is to modify the defini18 tions relating to whether a business concern qualifies as 

19 a small business concern to establish additional require20 ments that ensure that no publically traded business con21 cern, subsidiary of a publically traded business concern, 

22 foreign-owned business concern, or subsidiary of a foreign23 owned business concern is considered a small business con24 cern for the purpose of Federal Government contracting 

25 and subcontracting, including for procurement goals. 


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1 SEC. 1304. DEFINITION OF SMALL BUSINESS CONCERN AND 

2 STATUS REVIEW. 

3 Section 3(a) of the Small Business Act (15 U.S.C. 

4 632(a)) is amended by adding at the end the following: 

5 ‘‘(6) INDEPENDENTLY OWNED AND OPERATED.— 

6 ‘‘(A) IN GENERAL.—In this subsection, the 

7 term ‘independently owned and operated’ does not 

8 include a business concern— 

9 ‘‘(i) that is— 

10 ‘‘(I) an issuer of a class of securities 

11 registered or that is required to be reg12 istered pursuant to section 12 of the Secu13 rities Exchange Act of 1934 (15 U.S.C. 

14 78l) or that is required to file reports pur15 suant to section 15(d) of that Act (15 

16 U.S.C. 78o(d)); or 

17 ‘‘(II) owned by an entity that is an 

18 issuer of a class of securities registered or 

19 that is required to be registered pursuant 

20 to section 12 of the Securities Exchange 

21 Act of 1934 (15 U.S.C. 78l) or that is re22 quired to file reports pursuant to section 

23 15(d) of that Act (15 U.S.C. 78o(d)); or 

24 ‘‘(ii) more than 50 percent of which is 

25 owned, directly or indirectly, by one or more in26 dividuals that are not United States citizens. 


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1 ‘‘(B) ENTITIES.—In determining ownership of 

2 a business concern, any interest in the business con3 cern that is owned by a person that is not an indi4 vidual (including a corporation, partnership, estate, 

5 or trust) shall be considered owned proportionately 

6 by or for the individuals that own that person.’’. 

7 SEC. 1305. NOTIFICATION. 

8 (a) IN GENERAL.—Not later than 6 months after the 

9 date of enactment of this subtitle, the Administrator shall 

10 notify the head of each Federal department or agency re11 garding this subtitle and the amendments made by this 

12 subtitle. 

13 (b) TO CONTRACTORS.—Not later than 6 months 

14 after receiving notice under subsection (a), the head of a 

15 Federal department or agency shall notify any contractor 

16 of that department or agency regarding this subtitle and 

17 the amendments made by this subtitle. 

18 SEC. 1306. REPORTING. 

19 (a) IN GENERAL.—Not later than 6 months after the 

20 end of each fiscal year, the Administrator shall publish 

21 a report regarding prime contracts with the Federal Gov22 ernment awarded to business concerns that were identified 

23 as small business concerns for the purposes of achieving 

24 the small business contracting goals of the Federal Gov25 ernment during the previous fiscal year. 


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1 (b) CONTENTS.— 

2 (1) IN GENERAL.—Each report under sub3 section (a) shall, for the fiscal year before the year 

4 in which that report is published, include— 

5 (A) the name of each small business con6 cern, small business concern owned and con7 trolled by socially and economically disadvan8 taged individuals, small business concern owned 

9 and controlled by women, small business con10 cern owned and controlled by veterans, and 

11 small business concern owned and controlled by 

12 service-disabled veterans that was awarded a 

13 prime contract with the Federal Government; 

14 and 

15 (B) for each small business concern de16 scribed in subparagraph (A), the total dollar 

17 amount of prime contracts with the Federal 

18 Government awarded to that small business 

19 concern in descending order. 

20 (2) PARENT COMPANIES.—If a small business 

21 concern described in paragraph (1)(A) has a parent 

22 company, the Administrator shall report information 

23 relating to any prime contract with the Federal Gov24 ernment of that small business concern under the 

25 name of that parent company. 


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1 (c) AVAILABILITY.—The Administrator shall make 

2 each report under subsection (a) available on the Web site 

3 of the Administration in a manner that is easily accessible 

4 by members of the public. 

5 SEC. 1307. LIST OF CONTRACTORS. 

6 (a) IN GENERAL.—Each Federal department and 

7 agency shall publish on the Web site of that department 

8 or agency a list of each business concern that received a 

9 contract award because that business concern was identi10 fied as a small business concern. 

11 (b) LIST CONTENTS.—A list published under sub12 section (a) shall— 

13 (1) list business concerns in the order of the 

14 total amount in dollars of contracts between the 

15 Federal Government and that business concern, be16 ginning with the largest total value; 

17 (2) include the total amount in dollars of con18 tracts between the Federal Government and each 

19 business concern on such list; and 

20 (3) include the name of any parent company of 

21 a business concern on such list. 

22 SEC. 1308. CONTRACTING DATABASES. 

23 The Administrator shall, by regulation, establish pro24 cedures to ensure that the Central Contractor Registration 

25 database and any successor database provide an adequate 


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1 warning regarding criminal penalties established under 

2 section 16(d) of the Small Business Act (15 U.S.C. 

3 645(d)) for misrepresenting the status of a business con4 cern or person in order to obtain certain contracts with 

5 the Federal Government. 

6 SEC. 1309. ENFORCEMENT. 

7 (a) COMPLAINTS.— 

8 (1) IN GENERAL.—Any person may file a com9 plaint with the Administrator and the head of the 

10 affected department or agency about the classifica11 tion of a business concern as a small business con12 cern and the Administrator and the head of the af13 fected department or agency shall resolve any com14 plaint filed under this paragraph in a timely man15 ner. 

16 (2) REPORTS.—The Administrator shall annu17 ally submit to Congress a report describing any com18 plaints described in paragraph (1) that were filed 

19 during the relevant year and the resolution of any 

20 such complaint. 

21 (b) DEBARMENT.—The head of each Federal depart22 ment or agency shall issue or amend the contracting rules 

23 and regulations for that department or agency to ensure 

24 that a business concern shall be debarred from receiving 


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1 a Federal contract for a period of not less than 5 years 

2 if that business concern— 

3 (1) fraudulently represents that it is a small 

4 business concern as part of a bid for a small busi5 ness contract with that department or agency; or 

6 (2) violates this subtitle or an amendment made 

7 by this subtitle. 

8 Subtitle D—National Infrastruc9 ture Development Bank Act of 

10 2011 

11 SEC. 1401. SHORT TITLE. 

12 This subtitle may be cited as the ‘‘National Infra13 structure Development Bank Act of 2011’’. 

14 SEC. 1402. FINDINGS. 

15 Congress finds the following: 

16 (1) According to the American Society of Civil 

17 Engineers, the current condition of the infrastruc18 ture in the United States earns a grade point aver19 age of D, and an estimated $2,200,000,000,000 in20 vestment is needed over the next 5 years to meet 

21 adequate conditions. 

22 (2) According to the National Surface Trans23 portation Policy and Revenue Study Commission, 

24 $225,000,000,000 is needed annually from all 

25 sources for the next 50 years to upgrade our surface 


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1 transportation system to a state of good repair and 

2 create a more advanced system. 

3 (3) The Environmental Protection Agency 

4 projects that— 

5 (A) $334,000,000,000 is needed to invest 

6 in infrastructure improvements over 20 years to 

7 ensure the provision of safe water; and 

8 (B) $202,500,000,000 is needed for pub9 licly owned wastewater systems-related infra10 structure needs over 20 years. 

11 (4) According to the Edison Electric Institute, 

12 the electric power industry will need to invest 

13 $298,000,000,000 in the Nation’s transmission sys14 tem by 2030 in order to maintain reliable service. 

15 (5) According to the American Council on Re16 newable Energy, renewable energy could provide up 

17 to 635 gigawatts of new electricity generating capac18 ity by 2025, a substantial contribution and poten19 tially more than the Nation’s need for new capacity, 

20 according to the United States Energy Information 

21 Administration. 

22 (6) According to the United States Green 

23 Building Council, United States buildings account 

24 for nearly 39 percent of primary energy use and 38 

25 percent of carbon emissions. 


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1 (7) According to the Organization for Economic 

2 Cooperation and Development (OECD), the United 

3 States ranks 14th among OECD nations in 

4 broadband access per 100 inhabitants. 

5 (8) Although grant programs of the Govern6 ment must continue to play a central role in financ7 ing the transportation, environment, energy, and 

8 telecommunications infrastructure needs of the 

9 United States, current and foreseeable demands on 

10 existing Federal, State, and local funding for infra11 structure expansion exceed the resources to support 

12 these programs by margins wide enough to prompt 

13 serious concerns about the United States’ ability to 

14 sustain long-term economic development, produc15 tivity, and international competitiveness. 

16 (9) The capital markets, including central 

17 banks, pension funds, financial institutions, sov18 ereign wealth funds, and insurance companies, have 

19 a growing interest in infrastructure investment. The 

20 establishment of a United States Government-owned 

21 institution that would provide this investment oppor22 tunity through high-quality bond issues that would 

23 be used to finance qualifying infrastructure projects 

24 would attract needed capital for United States infra25 structure development. 


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1 SEC. 1403. DEFINITIONS. 

2 For purposes of this subtitle, the following definitions 

3 apply unless the context requires otherwise: 

4 (1) BANK.—The term ‘‘Bank’’ means the Na5 tional Infrastructure Development Bank established 

6 under section 1404(a). 

7 (2) BOARD.—The term ‘‘Board’’ means the Na8 tional Infrastructure Development Bank Board. 

9 (3) CHIEF ASSET AND LIABILITY MANAGEMENT

10 OFFICER.—The term ‘‘chief asset and liability man11 agement officer’’ means the chief individual respon12 sible for coordinating the management of assets and 

13 liabilities of the Bank. 

14 (4) CHIEF COMPLIANCE OFFICER.—The term 

15 ‘‘chief compliance officer or CCO’’ means the chief 

16 individual responsible for overseeing and managing 

17 the compliance and regulatory affairs issues of the 

18 Bank. 

19 (5) CHIEF FINANCIAL OFFICER.—The term 

20 ‘‘chief financial officer or CFO’’ means the chief in21 dividual responsible for managing the financial risks, 

22 planning, and reporting of the Bank. 

23 (6) CHIEF LOAN ORIGINATION OFFICER.—The 

24 term ‘‘chief loan origination officer’’ means the chief 

25 individual responsible for the processing of new 

26 loans provided by the Bank. 


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1 (7) CHIEF OPERATIONS OFFICER.—The term 

2 ‘‘chief operations officer or COO’’ means the chief 

3 individual responsible for information technology and 

4 the day to day operations of the Bank. 

5 (8) CHIEF RISK OFFICER.—The term ‘‘chief 

6 risk officer or CRO’’ means the chief individual re7 sponsible for managing operational and compliance8 related risks of the Bank. 

9 (9) CHIEF TREASURY OFFICER.—The term 

10 ‘‘chief treasury officer’’ means the chief individual 

11 responsible for managing the Bank’s treasury oper12 ations. 

13 (10) DEVELOPMENT.—The terms ‘‘develop14 ment’’ and ‘‘develop’’ mean, with respect to an infra15 structure project, any— 

16 (A) preconstruction planning, feasibility re17 view, permitting, design work, and other 

18 preconstruction activities; and 

19 (B) construction, reconstruction, rehabili20 tation, replacement, or expansion. 

21 (11) DISADVANTAGED COMMUNITY.—The term 

22 ‘‘disadvantaged community’’ means a community 

23 with a median household income of less than 80 per24 cent of the statewide median household income for 

25 the State in which the community is located. 


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1 (12) ENERGY INFRASTRUCTURE PROJECT.— 

2 The term ‘‘energy infrastructure project’’ means any 

3 project for energy transmission, energy efficiency en4 hancement for buildings, public housing, and 

5 schools, renewable energy, and energy storage. 

6 (13) ENTITY.—The term ‘‘entity’’ means an in7 dividual, corporation, partnership (including a pub8 lic-private partnership), joint venture, trust, and a 

9 State or other governmental entity, including a polit10 ical subdivision or any other instrumentality of a 

11 State or a revolving fund. 

12 (14) ENVIRONMENTAL INFRASTRUCTURE

13 PROJECT.—The term ‘‘environmental infrastructure 

14 project’’ means any project for the establishment, 

15 maintenance, or enhancement of any drinking water 

16 and wastewater treatment facility, storm water man17 agement system, dam, levee, open space manage18 ment system, solid waste disposal facility, hazardous 

19 waste facility, or industrial site cleanup. 

20 (15) EXECUTIVE DIRECTOR.—The term ‘‘execu21 tive director’’ means the individual serving as the 

22 chief executive officer of the Bank. 

23 (16) GENERAL COUNSEL.—The term ‘‘general 

24 counsel’’ means the individual who serves as the 

25 chief lawyer for the Bank. 


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1 (17) INFRASTRUCTURE PROJECT.—The term 

2 ‘‘infrastructure project’’ means any energy, environ3 mental, telecommunications, or transportation infra4 structure project. 

5 (18) PUBLIC BENEFIT BOND.—The term ‘‘pub6 lic benefit bond’’ means a bond issued with respect 

7 to an infrastructure project in accordance with this 

8 subtitle if— 

9 (A) the net spendable proceeds from the 

10 sale of the issue may be used for expenditures 

11 incurred after the date of issuance with respect 

12 to the project, subject to the rules of the Bank; 

13 (B) the bond issued by the Bank is in reg14 istered form and meets the requirements of this 

15 subtitle and otherwise applicable law; and 

16 (C) the payment of principal with respect 

17 to the bond is the obligation of the Bank. 

18 (19) PUBLIC-PRIVATE PARTNERSHIP.—The 

19 term ‘‘public-private partnership’’ means any enti20 ty— 

21 (A)(i) which is undertaking the develop22 ment of all or part of an infrastructure project, 

23 which will have a public benefit, pursuant to re24 quirements established in one or more contracts 


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1 between the entity and a State or an instru2 mentality of a State; or 

3 (ii) the activities of which, with respect to 

4 such an infrastructure project, are subject to 

5 regulation by a State or any instrumentality of 

6 a State; and 

7 (B) which owns, leases, or operates, or will 

8 own, lease, or operate, the project in whole or 

9 in part, and at least one of the participants in 

10 the entity is a nongovernmental entity. 

11 (20) REVOLVING FUND.—The term ‘‘revolving 

12 fund’’ means a fund or program established by a 

13 State or a political subdivision or other instrumen14 tality of a State, the principal activity of which is to 

15 make loans, commitments, or other financial accom16 modation available for the development of one or 

17 more categories of infrastructure projects. 

18 (21) SECRETARY.—The term ‘‘Secretary’’ 

19 means the Secretary of the Treasury or the designee 

20 of the Secretary. 

21 (22) SMART GRID.—The term ‘‘smart grid’’ 

22 means a system that provides for any of the smart 

23 grid functions set forth in section 1306(d) of the 

24 Energy Independence and Security Act of 2007 (42 

25 U.S.C. 17386(d)). 


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1 (23) STATE.—The term ‘‘State’’ includes the 

2 District of Columbia, Puerto Rico, Guam, American 

3 Samoa, the Virgin Islands, the Commonwealth of 

4 Northern Mariana Islands, and any other territory 

5 of the United States. 

6 (24) TELECOMMUNICATIONS INFRASTRUCTURE

7 PROJECT.—The term ‘‘telecommunications infra8 structure project’’ means any project involving infra9 structure required to provide communications by 

10 wire or radio. 

11 (25) TRANSPORTATION INFRASTRUCTURE

12 PROJECT.—The term ‘‘transportation infrastructure 

13 project’’ means any project for the construction, 

14 maintenance, or enhancement of highways, roads, 

15 bridges, transit and intermodal systems, inland wa16 terways, commercial ports, airports, high speed rail 

17 and freight rail systems. 

18 SEC. 1404. ESTABLISHMENT OF NATIONAL INFRASTRUC19 TURE DEVELOPMENT BANK. 

20 (a) ESTABLISHMENT OF NATIONAL INFRASTRUC21 TURE DEVELOPMENT BANK.—The National Infrastruc22 ture Development Bank is established as a wholly owned 

23 Government corporation subject to chapter 91 of title 31, 

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1 ment Corporation Control Act’’), except as otherwise pro2 vided in this subtitle. 

3 (b) RESPONSIBILITY OF THE SECRETARY.—The Sec4 retary shall take such action as may be necessary to assist 

5 in implementing the establishment of the bank in accord6 ance with this subtitle. 

7 (c) CONFORMING AMENDMENT.—Section 9101(3) of 

8 title 31, United States Code, is amended by inserting after 

9 subparagraph (N) the following: 

10 ‘‘(O) the National Infrastructure Develop11 ment Bank.’’. 

12 SEC. 1405. BOARD OF DIRECTORS. 

13 (a) IN GENERAL.—The Bank shall have a Board of 

14 Directors consisting of 5 members appointed by the Presi15 dent by and with the advice and consent of the Senate. 

16 (b) QUALIFICATIONS.—The directors of the Board 

17 shall include individuals representing different regions of 

18 the United States and— 

19 (1) 2 of the directors shall have public sector 

20 experience; and 

21 (2) 3 of the directors shall have private sector 

22 experience. 

23 (c) CHAIRPERSON AND VICE CHAIRPERSON.—As des24 ignated at the time of appointment, one of the directors 

25 of the Board shall be designated chairperson of the Board 


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1 by the President and one shall be designated as vice chair2 person of the Board by the President. 

3 (d) TERMS.— 

4 (1) IN GENERAL.—Except as provided in para5 graph (2) and subsection (f), each director shall be 

6 appointed for a term of 6 years. 

7 (2) INITIAL STAGGERED TERMS.—Of the initial 

8 members of the Board— 

9 (A) the chairperson and vice chairperson 

10 shall be appointed for terms of 6 years; 

11 (B) 1 shall be appointed for a term of 5 

12 years; 

13 (C) 1 shall be appointed for a term of 4 

14 years; and 

15 (D) 1 shall be appointed for a term of 3 

16 years. 

17 (e) DATE OF INITIAL NOMINATIONS.—The initial 

18 nominations by the President for appointment of directors 

19 to the Board shall be made not later than 60 days after 

20 the date of enactment of this Act. 

21 (f) VACANCIES.— 

22 (1) IN GENERAL.—A vacancy on the Board 

23 shall be filled in the manner in which the original 

24 appointment was made. 


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1 (2) APPOINTMENT TO REPLACE DURING

2 TERM.—Any director appointed to fill a vacancy oc3 curring before the expiration of the term for which 

4 the director’s predecessor was appointed shall be ap5 pointed only for the remainder of the term. 

6 (3) DURATION.—A director may serve after the 

7 expiration of that director’s term until a successor 

8 has taken office. 

9 (g) QUORUM.—Three directors shall constitute a 

10 quorum. 

11 (h) REAPPOINTMENT.—A director of the Board ap12 pointed by the President may be reappointed by the Presi13 dent in accordance with this section. 

14 (i) PER DIEM REIMBURSEMENT.—Directors of the 

15 Board shall serve on a part-time basis and shall receive 

16 a per diem when engaged in the actual performance of 

17 Bank business, plus reasonable reimbursement for travel, 

18 subsistence, and other necessary expenses incurred in the 

19 performance of their duties. 

20 (j) LIMITATIONS.—A director of the Board may not 

21 participate in any review or decision affecting a project 

22 under consideration for assistance under this subtitle if 

23 the director has or is affiliated with a person who has an 

24 interest in such project. 

25 (k) POWERS AND LIMITATIONS OF THE BOARD.— 


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1 (1) POWERS.—In order to carry out the pur2 poses of the Bank as set forth in this subtitle, the 

3 Board shall be responsible for monitoring and over4 seeing infrastructure projects and have the following 

5 powers: 

6 (A) To make senior and subordinated 

7 loans and purchase senior and subordinated 

8 debt securities and enter into a binding commit9 ment to make any such loan or purchase any 

10 such security, on such terms as the Board may 

11 determine, in the Board’s discretion, to be ap12 propriate, the proceeds of which are used to as13 sist in the financing or refinancing of the devel14 opment of one or more infrastructure projects. 

15 (B) To issue and sell debt securities of the 

16 Bank on such terms as the Board shall deter17 mine from time to time. 

18 (C) To issue public benefit bonds and to 

19 provide financing to infrastructure projects 

20 from amounts made available from the issuance 

21 of such bonds. 

22 (D) To make loan guarantees. 

23 (E) To make agreements and contracts 

24 with any entity in furtherance of the business 

25 of the Bank. 


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1 (F) To borrow on the global capital market 

2 and lend to regional, State, and local entities, 

3 and commercial banks for the purpose of fund4 ing infrastructure projects. 

5 (G) To purchase in the open market any of 

6 the Bank’s outstanding obligations at any time 

7 and at any price. 

8 (H) To monitor and oversee infrastructure 

9 projects financed, in whole or in part, by the 

10 Bank. 

11 (I) To acquire, lease, pledge, exchange, 

12 and dispose of real and personal property and 

13 otherwise exercise all the usual incidents of 

14 ownership of property to the extent the exercise 

15 of such powers are appropriate to and con16 sistent with the purposes of the Bank. 

17 (J) To sue and be sued in the Bank’s cor18 porate capacity in any court of competent juris19 diction, except that no attachment, injunction, 

20 or similar process, may be issued against the 

21 property of the Bank or against the Bank with 

22 respect to such property. 

23 (K) To indemnify the directors and officers 

24 of the Bank for liabilities arising out of the ac25 tions of the directors and officers in such capacVerDate Mar 15 2010 00:56 Dec 17, 2011 Jkt 019200 PO 00000 Frm 00118 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638

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1 ity, in accordance with, and subject to the limi2 tations contained in, this subtitle. 

3 (L) To serve as the primary liaison be4 tween the Bank, Congress, the executive 

5 branch, and State and local governments and to 

6 represent the Bank’s interests. 

7 (M) To exercise all other lawful powers 

8 which are necessary or appropriate to carry out, 

9 and are consistent with, the purposes of the 

10 Bank. 

11 (2) LIMITATIONS.— 

12 (A) ISSUANCE OF DEBT SECURITY.—The 

13 Board may not issue any debt security without 

14 the prior consent of the Secretary. 

15 (B) ISSUANCE OF VOTING SECURITY.—The 

16 Board may not issue any voting security in the 

17 Bank to any entity other than the Secretary. 

18 (3) ACTIONS CONSISTENT WITH SELF-SUP19 PORTING ENTITY STATUS.—The Board shall conduct 

20 its business in a manner consistent with the require21 ments of this section. 

22 (4) COORDINATION WITH STATE AND LOCAL

23 REGULATORY AUTHORITY.—The provision of finan24 cial assistance by the Board pursuant to this subtitle 

25 shall not be construed as— 


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1 (A) limiting the right of any State or polit2 ical subdivision or other instrumentality of a 

3 State to approve or regulate rates of return on 

4 private equity invested in a project; or 

5 (B) otherwise superseding any State law or 

6 regulation applicable to a project. 

7 (5) FEDERAL PERSONNEL REQUESTS.—The 

8 Board shall have the power to request the detail, on 

9 a reimbursable basis, of personnel from other Fed10 eral agencies with specific expertise not available 

11 from within the Bank or elsewhere. The head of any 

12 Federal agency may detail, on a reimbursable basis, 

13 any personnel of such agency requested by the 

14 Board and shall not withhold unreasonably the de15 tail of any personnel requested by the Board. 

16 (l) MEETINGS.— 

17 (1) OPEN TO THE PUBLIC; NOTICE.—All meet18 ings of the Board held to conduct the business of the 

19 Bank shall be open to the public and shall be pre20 ceded by reasonable notice. 

21 (2) INITIAL MEETING.—The Board shall meet 

22 not later than 90 days after the date on which all 

23 directors of the Board are first appointed and other24 wise at the call of the Chairperson. 


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1 (3) EXCEPTION FOR CLOSED MEETINGS.—Pur2 suant to such rules as the Board may establish 

3 through their bylaws, the directors may close a 

4 meeting of the Board if, at the meeting, there is 

5 likely to be disclosed information which could ad6 versely affect or lead to speculation relating to an in7 frastructure project under consideration for assist8 ance under this subtitle or in financial or securities 

9 or commodities markets or institutions, utilities, or 

10 real estate. The determination to close any meeting 

11 of the Board shall be made in a meeting of the 

12 Board, open to the public, and preceded by reason13 able notice. The Board shall prepare minutes of any 

14 meeting which is closed to the public and make such 

15 minutes available as soon as the considerations ne16 cessitating closing such meeting no longer apply. 

17 SEC. 1406. EXECUTIVE COMMITTEE. 

18 (a) IN GENERAL.—The Board shall have an executive 

19 committee consisting of 9 members, headed by the execu20 tive director of the Bank. 

21 (b) EXECUTIVE DIRECTOR.—A majority of the Board 

22 shall have the authority to appoint and reappoint the exec23 utive director. 

24 (c) CEO.—The executive director shall be the chief 

25 executive officer of the Bank, with such executive funcVerDate Mar 15 2010 00:56 Dec 17, 2011 Jkt 019200 PO 00000 Frm 00121 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638

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1 tions, powers, and duties as may be prescribed by this sub2 title, the bylaws of the Bank, or the Board. 

3 (d) OTHER EXECUTIVE OFFICERS.—The Board shall 

4 appoint, remove, fix the compensation, and define duties 

5 of 8 other executive officers to serve on the Executive 

6 Committee as the— 

7 (1) chief compliance officer; 

8 (2) chief financial officer; 

9 (3) chief asset and liability management officer; 

10 (4) chief loan origination officer; 

11 (5) chief operations officer; 

12 (6) chief risk officer; 

13 (7) chief treasury officer; and 

14 (8) general counsel. 

15 (e) QUALIFICATIONS.—The executive director and 

16 other executive officers shall have demonstrated experience 

17 and expertise in one or more of the following: 

18 (1) Transportation infrastructure. 

19 (2) Environmental infrastructure. 

20 (3) Energy infrastructure. 

21 (4) Telecommunications infrastructure. 

22 (5) Economic development. 

23 (6) Workforce development. 

24 (7) Public health. 

25 (8) Private or public finance. 


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1 (f) DUTIES.—In order to carry out the purposes of 

2 the Bank as set forth in this subtitle, the executive com3 mittee shall— 

4 (1) establish disclosure and application proce5 dures for entities nominating projects for assistance 

6 under this subtitle; 

7 (2) accept, for consideration, project proposals 

8 relating to the development of infrastructure 

9 projects, which meet the basic criteria established by 

10 the Board, and which are submitted by an entity; 

11 (3) provide recommendations to the Board and 

12 place project proposals accepted by the executive 

13 committee on a list for consideration for financial 

14 assistance from the Board; and 

15 (4) provide technical assistance to entities re16 ceiving financing from the Bank and otherwise im17 plement decisions of the Board. 

18 (g) VACANCY.—A vacancy in the position of executive 

19 director shall be filled in the manner in which the original 

20 appointment was made. 

21 (h) COMPENSATION.—The compensation of the exec22 utive director and other executive officers of the executive 

23 committee shall be determined by the Board. 


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1 (i) REMOVAL.—The executive director and other ex2 ecutive officers may be removed at the discretion of a ma3 jority of the Board. 

4 (j) TERM.—The executive director and other execu5 tive officers shall serve a 6-year term and may be re6 appointed in accordance with this section. 

7 (k) LIMITATIONS.—The executive director and other 

8 executive officers shall not— 

9 (1) hold any other public office; 

10 (2) have any interest in an infrastructure 

11 project considered by the Board; 

12 (3) have any interest in an investment institu13 tion, commercial bank, or other entity seeking finan14 cial assistance for any infrastructure project from 

15 the Bank; and 

16 (4) have any such interest during the 2-year pe17 riod beginning on the date such officer ceases to 

18 serve in such capacity. 

19 SEC. 1407. RISK MANAGEMENT COMMITTEE. 

20 (a) ESTABLISHMENT OF RISK MANAGEMENT COM21 MITTEE.—The Bank shall establish a risk management 

22 committee consisting of 5 members, headed by the chief 

23 risk officer. 


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1 (b) APPOINTMENTS.—A majority of the Board shall 

2 have the authority to appoint and reappoint the CRO of 

3 the Bank. 

4 (c) FUNCTIONS; DUTIES.— 

5 (1) IN GENERAL.—The CRO shall have such 

6 functions, powers, and duties as may be prescribed 

7 by one or more of the following: This subtitle, the 

8 bylaws of the Bank, and the Board. The CRO shall 

9 report directly to the Board. 

10 (2) RISK MANAGEMENT DUTIES.—In order to 

11 carry out the purposes of this subtitle, the risk man12 agement committee shall— 

13 (A) create financial, credit, and operational 

14 risk management guidelines and policies to be 

15 adhered to by the Bank; 

16 (B) set guidelines to ensure diversification 

17 of lending activities by both region and infra18 structure project type; 

19 (C) create conforming standards for infra20 structure finance securities; 

21 (D) monitor financial, credit and oper22 ational exposure of the Bank; and 

23 (E) provide financial recommendations to 

24 the Board. 


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1 (d) OTHER RISK MANAGEMENT OFFICERS.—The 

2 Board shall appoint, remove, fix the compensation, and 

3 define the duties of 4 other risk management officers to 

4 serve on the risk management committee. 

5 (e) QUALIFICATIONS.—The CRO and other risk man6 agement officers shall have demonstrated experience and 

7 expertise in one or more of the following: 

8 (1) Treasury and asset and liability manage9 ment. 

10 (2) Investment regulations. 

11 (3) Insurance. 

12 (4) Credit risk management and credit evalua13 tions. 

14 (5) Related disciplines. 

15 (f) VACANCY.—A vacancy in the position of CRO or 

16 any other risk management officer shall be filled in the 

17 manner in which the original appointment was made. 

18 (g) COMPENSATION.—The compensation of the CRO 

19 and other risk management officers shall be determined 

20 by the Board. 

21 (h) REMOVAL.—The CRO and any other risk man22 agement officers may be removed at the discretion of a 

23 majority of the Board. 


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1 (i) TERM.—The CRO and other risk management of2 ficers shall serve a 6-year term and may be reappointed 

3 in accordance with this section. 

4 (j) LIMITATIONS.—The CRO and other risk manage5 ment officers shall not— 

6 (1) hold any other public office; 

7 (2) have any interest in an infrastructure 

8 project considered by the Board; 

9 (3) have any interest in an investment institu10 tion, commercial bank, or other entity seeking finan11 cial assistance for any infrastructure project from 

12 the Bank; and 

13 (4) have any such interest during the 2-year pe14 riod beginning on the date such officer ceases to 

15 serve in such capacity. 

16 SEC. 1408. AUDIT COMMITTEE. 

17 (a) IN GENERAL.—The Bank shall have an audit 

18 committee consisting of 5 members, headed by the chief 

19 compliance officer of the Bank. 

20 (b) APPOINTMENTS.—A majority of the Board shall 

21 have the authority to appoint and reappoint the CCO of 

22 the Bank. 

23 (c) FUNCTIONS; DUTIES.—The CCO shall have such 

24 functions, powers, and duties as may be prescribed by one 

25 or more of the following: This subtitle, the bylaws of the 


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1 Bank, and the Board. The CCO shall report directly to 

2 the Board. 

3 (d) AUDIT DUTIES.—In order to carry out the pur4 poses of the Bank under this subtitle, the audit committee 

5 shall— 

6 (1) provide internal controls and internal audit7 ing activities for the Bank; 

8 (2) maintain responsibility for the accounting 

9 activities of the Bank; 

10 (3) issue financial reports of the Bank; and 

11 (4) complete reports with outside auditors and 

12 public accountants appointed by the Board. 

13 (e) OTHER AUDIT OFFICERS.—The Board shall ap14 point, remove, fix the compensation, and define the duties 

15 of 4 other audit officers to serve on the audit committee. 

16 (f) QUALIFICATIONS.—The CCO and other audit offi17 cers shall have demonstrated experience and expertise in 

18 one or more of the following: 

19 (1) Internal auditing. 

20 (2) Internal investigations. 

21 (3) Accounting practices. 

22 (4) Financing practices. 

23 (g) VACANCY.—A vacancy in the position of CCO or 

24 any other audit officer shall be filled in the manner in 

25 which the original appointment was made. 


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1 (h) COMPENSATION.—The compensation of the CCO 

2 and other audit officers shall be determined by the Board. 

3 (i) REMOVAL.—The CCO and other audit officers 

4 may be removed at the discretion of a majority of the 

5 Board. 

6 (j) TERM.—The CCO and other audit officers shall 

7 serve a 6-year term and may be reappointed in accordance 

8 with this section. 

9 (k) LIMITATIONS.—The CCO and other audit officers 

10 shall not— 

11 (1) hold any other public office; 

12 (2) have any interest in an infrastructure 

13 project considered by the Board; 

14 (3) have any interest in an investment institu15 tion, commercial bank, or other entity seeking finan16 cial assistance for any infrastructure project from 

17 the Bank; and 

18 (4) have any such interest during the 2-year pe19 riod beginning on the date such officer ceases to 

20 serve in such capacity. 

21 SEC. 1409. PERSONNEL. 

22 The chairperson of the Board, executive director, 

23 chief risk officer, and chief compliance officer shall ap24 point, remove, fix the compensation of, and define the du25 ties of such qualified personnel to serve under the Board, 


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1 executive committee, risk management committee, or 

2 audit committee, as the case may be, as necessary and 

3 prescribed by one or more of the following: This subtitle, 

4 the bylaws of the Bank, and the Board. 

5 SEC. 1410. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM 

6 BANK. 

7 (a) IN GENERAL.—No financial assistance shall be 

8 available under this subtitle from the Bank unless the ap9 plicant for such assistance has demonstrated to the satis10 faction of the Board that the project for which such assist11 ance is being sought meets— 

12 (1) the requirements of this subtitle; and 

13 (2) any criteria established in accordance with 

14 this subtitle by the Board. 

15 (b) ESTABLISHMENT OF PROJECT CRITERIA.— 

16 (1) IN GENERAL.—Consistent with the require17 ments of subsections (c) and (d), the Board shall es18 tablish— 

19 (A) criteria for determining eligibility for 

20 financial assistance under this subtitle; 

21 (B) disclosure and application procedures 

22 to be followed by entities to nominate projects 

23 for assistance under this subtitle; and 


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1 (C) such other criteria as the Board may 

2 consider to be appropriate for purposes of car3 rying out this subtitle. 

4 (2) FACTORS TO BE TAKEN INTO ACCOUNT.— 

5 (A) IN GENERAL.—The Bank shall con6 duct an analysis that takes into account the 

7 economic, environmental, social benefits, and 

8 costs of each project under consideration for fi9 nancial assistance under this subtitle, 

10 prioritizing projects that contribute to economic 

11 growth, lead to job creation, and are of regional 

12 or national significance. 

13 (B) CRITERIA.—The criteria established 

14 pursuant to paragraph (1)(A) shall provide for 

15 the consideration of the following factors in 

16 considering eligibility for financial assistance 

17 under this subtitle: 

18 (i) The means by which development 

19 of the infrastructure project under consid20 eration is being financed, including— 

21 (I) the terms and conditions and 

22 financial structure of the proposed fi23 nancing; 


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1 (II) the financial assumptions 

2 and projections on which the project 

3 is based; and 

4 (III) the extent to which the in5 frastructure project maximizes invest6 ment from other sources. 

7 (ii) The likelihood that the provision 

8 of assistance by the Bank will cause such 

9 development to proceed more promptly and 

10 with lower costs for financing than would 

11 be the case without such assistance. 

12 (iii) The extent to which the provision 

13 of assistance by the Bank maximizes the 

14 level of private investment in the infra15 structure project while providing a public 

16 benefit. 

17 (c) FACTORS FOR SPECIFIC TYPES OF PROJECTS.— 

18 (1) TRANSPORTATION INFRASTRUCTURE

19 PROJECTS.—For any transportation infrastructure 

20 project, the Board shall consider the following: 

21 (A) Job creation, including workforce de22 velopment for women and minorities, respon23 sible employment practices, and quality job 

24 training opportunities. 

25 (B) Reduction in carbon emissions. 


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1 (C) Reduction in surface and air traffic 

2 congestion. 

3 (D) Poverty and inequality reduction 

4 through targeted training and employment op5 portunities for low-income workers. 

6 (E) Use of smart tolling, such as vehicle 

7 miles traveled and congestion pricing, for high8 way, road, and bridge projects. 

9 (F) Public health benefits. 

10 (2) ENVIRONMENTAL INFRASTRUCTURE

11 PROJECT.—For any environmental infrastructure 

12 project, the Board shall consider the following: 

13 (A) Public health benefits. 

14 (B) Pollution reductions. 

15 (C) Job creation, including workforce de16 velopment for women and minorities, respon17 sible employment practices, and quality job 

18 training opportunities. 

19 (D) Poverty and inequality reduction 

20 through targeted training and employment op21 portunities for low-income workers. 

22 (3) ENERGY INFRASTRUCTURE PROJECT.—For 

23 any energy infrastructure project, the Board shall 

24 consider the following: 


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1 (A) Job creation, including workforce de2 velopment for women and minorities, respon3 sible employment practices, and quality job 

4 training opportunities. 

5 (B) Poverty and inequality reduction 

6 through targeted training and employment op7 portunities for low-income workers. 

8 (C) Reduction in carbon emissions. 

9 (D) Expanded use of renewable energy. 

10 (E) Development of a smart grid. 

11 (F) Energy efficient building, housing, and 

12 school modernization. 

13 (G) In any case in which the project is also 

14 a public housing project— 

15 (i) improvement of the physical shape 

16 and layout; 

17 (ii) environmental improvement; and 

18 (iii) mobility improvements for resi19 dents. 

20 (H) Public health benefits. 

21 (4) TELECOMMUNICATIONS.—For any tele22 communications project, the Board shall consider 

23 the following: 


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1 (A) The extent to which assistance ex2 pands or improves broadband and wireless serv3 ices in rural and disadvantaged communities. 

4 (B) Poverty and inequality reduction 

5 through targeted training and employment op6 portunities for low-income workers. 

7 (C) Job creation, including work force de8 velopment for women and minorities, respon9 sible employment practices, and quality job 

10 training opportunities. 

11 (d) CONSIDERATION OF PROJECT PROPOSALS.— 

12 (1) PARTICIPATION BY OTHER AGENCY PER13 SONNEL.—Consideration of projects by the executive 

14 committee and the Board shall be conducted with 

15 personnel on detail to the Bank from relevant Fed16 eral agencies from among individuals who are famil17 iar with and experienced in the selection criteria for 

18 competitive projects. 

19 (2) FEES.—A fee may be charged for the re20 view of any project proposal in such amount as 

21 maybe considered appropriate by the executive com22 mittee to cover the cost of such review. 

23 (e) DISCRETION OF BOARD.—Consistent with other 

24 provisions of this subtitle, any determination of the Board 

25 to provide assistance to any project, and the manner in 


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1 which such assistance is provided, including the terms, 

2 conditions, fees, and charges shall be at the sole discretion 

3 of the Board. 

4 (f) STATE AND LOCAL PERMITS REQUIRED.—The 

5 provision of assistance by the Board in accordance with 

6 this subtitle shall not be deemed to relieve any recipient 

7 of assistance or the related project of any obligation to 

8 obtain required State and local permits and approvals. 

9 (g) ANNUAL REPORT.—An entity receiving assistance 

10 from the Board shall make annual reports to the Board 

11 on the use of any such assistance, compliance with the 

12 criteria set forth in this section, and a disclosure of all 

13 entities with a development, ownership, or operational in14 terest in a project assisted or proposed to be assisted 

15 under this subtitle. 

16 SEC. 1411. EXEMPTION FROM LOCAL TAXATION. 

17 All notes, debentures, bonds or other such obligations 

18 issued by the Bank, and the interest on or credits with 

19 respect to such bonds or other obligations, shall not be 

20 subject to taxation by any State, county, municipality, or 

21 local taxing authority. 

22 SEC. 1412. STATUS AND APPLICABILITY OF CERTAIN FED23 ERAL LAWS; NO FULL FAITH AND CREDIT. 

24 (a) BUDGETING AND AUDITORS PRACTICES.—The 

25 Bank shall comply with all Federal laws regulating the 


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1 budgetary and auditing practices of a government corpora2 tion, except as otherwise provided in this subtitle. 

3 (b) NO FULL FAITH AND CREDIT OF THE UNITED

4 STATES.—Obligations of the Bank shall not be obligations 

5 of, or guaranteed as to principal or interest by, the United 

6 States or any agency of the United States and the obliga7 tions shall so plainly state. 

8 (c) EFFECT OF AND EXEMPTIONS FROM OTHER

9 LAWS.— 

10 (1) EXEMPT SECURITIES.—All debt securities 

11 and other obligations issued by the Bank pursuant 

12 to this subtitle shall be deemed to be exempt securi13 ties within the meaning of laws administered by the 

14 Securities and Exchange Commission to the same 

15 extent as securities which are direct obligations of, 

16 or obligations fully guaranteed as to principal or in17 terest by, the United States. 

18 (2) OPEN MARKET OPERATIONS AND STATE

19 TAX EXEMPT STATUS.—The obligations of the Bank 

20 shall be deemed to be obligations of the United 

21 States for the purposes of the provision designated 

22 as (b)(2) of the 2nd undesignated paragraph of sec23 tion 14 of the Federal Reserve Act (12 U.S.C. 355) 

24 and section 3124 of title 31, United States Code. 


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1 (3) NO PRIORITY AS A FEDERAL CLAIM.—The 

2 priority established in favor of the United States by 

3 section 3713 of title 31, United States Code, shall 

4 not apply with respect to any indebtedness of the 

5 Bank. 

6 (d) FEDERAL RESERVE BANKS AS DEPOSITORIES, 

7 CUSTODIANS, AND FISCAL AGENTS.—The Federal reserve 

8 banks may act as depositories for, or custodians or fiscal 

9 agents of, the Bank. 

10 (e) ACCESS TO BOOK-ENTRY SYSTEM.—The Sec11 retary may authorize the Bank to use the book-entry sys12 tem of the Federal reserve system. 

13 SEC. 1413. COMPLIANCE WITH DAVIS-BACON ACT. 

14 All laborers and mechanics employed by contractors 

15 and subcontractors on projects funded directly by or as16 sisted in whole or in part by and through the Bank pursu17 ant to this subtitle shall be paid wages at rates not less 

18 than those prevailing on projects of a character similar 

19 in the locality as determined by the Secretary of Labor 

20 in accordance with subchapter IV of chapter 31 of part 

21 A of title 40, United States Code. With respect to the 

22 labor standards specified in this section, the Secretary of 

23 Labor shall have the authority and functions set forth in 

24 Reorganization Plan Numbered 14 of 1950 (64 Stat. 


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1 1267; 5 U.S.C. App.) and section 3145 of title 40, United 

2 States Code. 

3 SEC. 1414. APPLICABILITY OF CERTAIN STATE LAWS. 

4 The receipt by any entity of any assistance under this 

5 subtitle, directly or indirectly, and any financial assistance 

6 provided by any governmental entity in connection with 

7 such assistance under this subtitle shall be valid and law8 ful notwithstanding any State or local restrictions regard9 ing extensions of credit or other benefits to private persons 

10 or entities, or other similar restrictions. 

11 SEC. 1415. AUDITS; REPORTS TO PRESIDENT AND CON12 GRESS. 

13 (a) ACCOUNTING.—The books of account of the Bank 

14 shall be maintained in accordance with generally accepted 

15 accounting principles and shall be subject to an annual 

16 audit by independent public accountants appointed by the 

17 Board and of nationally recognized standing. 

18 (b) REPORTS.— 

19 (1) BOARD.—The Board shall submit to the 

20 President and Congress, within 90 days after the 

21 last day of each fiscal year, a complete and detailed 

22 report with respect to the preceding fiscal year, set23 ting forth— 

24 (A) a summary of the Bank’s operations, 

25 for such preceding fiscal year; 


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1 (B) a schedule of the Bank’s obligations 

2 and capital securities outstanding at the end of 

3 such preceding fiscal year, with a statement of 

4 the amounts issued and redeemed or paid dur5 ing such preceding fiscal year; and 

6 (C) the status of projects receiving funding 

7 or other assistance pursuant to this subtitle, in8 cluding disclosure of all entities with a develop9 ment, ownership, or operational interest in such 

10 projects. 

11 (2) GAO.—Not later than 5 years after the 

12 date of enactment of this subtitle, the Comptroller 

13 General of the United States shall submit to Con14 gress a report evaluating activities of the Bank for 

15 the fiscal years covered by the report that includes 

16 an assessment of the impact and benefits of each 

17 funded project, including a review of how effectively 

18 each project accomplished the goals prioritized by 

19 the Bank’s project criteria. 

20 (c) BOOKS AND RECORDS.— 

21 (1) IN GENERAL.—The Bank shall maintain 

22 adequate books and records to support the financial 

23 transactions of the Bank with a description of finan24 cial transactions and infrastructure projects receiv25 ing funding, and the amount of funding for each 


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1 project maintained on a publically accessible data2 base. 

3 (2) AUDITS BY THE SECRETARY AND GAO.— 

4 The books and records of the Bank shall be main5 tained in accordance with recommended accounting 

6 practices and shall be open to inspection by the Sec7 retary and the Comptroller General of the United 

8 States. 

9 SEC. 1416. CAPITALIZATION OF BANK. 

10 (a) AUTHORIZATION OF APPROPRIATION.—There is 

11 authorized to be appropriated to the Secretary for pur12 chase of the shares of the Bank $5,000,000,000 for each 

13 of fiscal years 2012, 2013, 2014, 2015, and 2016 with 

14 the aggregate representing 10 percent of the total sub15 scribed capital of the Bank. 

16 (b) CALLABLE CAPITAL.—Of the total subscribed 

17 capital of the Bank, 90 percent shall be callable capital 

18 subject to call from the Secretary only as and when re19 quired by the Bank to meet its obligations on borrowing 

20 of funds for inclusion in its ordinary capital resources or 

21 guarantees chargeable to such resources. 

22 (c) OUTSTANDING LOANS.—At any time, the aggre23 gate amount outstanding of bonds issued by the Bank 

24 shall not exceed 250 percent of its total subscribed capital. 


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1 SEC. 1417. SUNSET. 

2 The Bank shall cease to exist 15 years after the date 

3 of enactment of this subtitle. 

4 Subtitle E—Wounded Veteran Job 

5 Security Act 

6 SEC. 1501. SHORT TITLE. 

7 This subtitle may be cited as the ‘‘Wounded Veteran 

8 Job Security Act’’. 

9 SEC. 1502. EXPANSION OF DEFINITION OF SERVICE IN UNI10 FORMED SERVICES FOR PURPOSES OF 

11 USERRA. 

12 Section 4303(13) of title 38, United States Code, is 

13 amended to read as follows: 

14 ‘‘(13) The term ‘service in the uniformed serv15 ices’ means the performance of duty on a voluntary 

16 or involuntary basis in a uniformed service under 

17 competent authority and includes active duty, active 

18 duty for training, initial active duty for training, in19 active duty training, full-time National Guard duty, 

20 a period for which a person is absent from a position 

21 of employment for the purpose of an examination to 

22 determine the fitness of the person to perform any 

23 such duty, a period for which a person is absent 

24 from employment for the purpose of performing fu25 neral honors duty as authorized by section 12503 of 

26 title 10 or section 115 of title 32, and a period for 


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1 which a person is absent from a position of employ2 ment for the purpose of obtaining medical treatment 

3 for an injury or illness recognized by the Secretary 

4 of Veterans Affairs as a service-connected, or for 

5 which a ‘line of duty’ document has been granted by 

6 the Secretary of Defense.’’. 

7 SEC. 1503. DOCUMENTATION OF TREATMENT FOR PUR8 POSES OF REEMPLOYMENT UNDER USERRA. 

9 Section 4312(f) of such title is amended— 

10 (1) by redesignating paragraphs (2) through 

11 (4) as paragraphs (3) through (5); 

12 (2) by inserting after paragraph (1) the fol13 lowing new paragraph (2): 

14 ‘‘(2) A person who submits an application for reem15 ployment due to an absence for the purpose of obtaining 

16 medical treatment for an injury or illness referred to in 

17 section 4303(13) of this title shall provide to the person’s 

18 employer (upon the request of such employer) documenta19 tion to establish the individual’s eligibility for reemploy20 ment on that basis. Such an application shall include suffi21 cient documentation to establish a link between the injury 

22 or illness and the medical treatment the person obtained.’’; 

23 (3) in paragraph (3), as so redesignated, by 

24 striking ‘‘paragraph (1)’’ and inserting ‘‘paragraph 

25 (1) or paragraph (2)’’; and 


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1 (4) in paragraph (4)(A), as so redesignated— 

2 (A) by striking ‘‘paragraph (2)’’ and in3 serting ‘‘paragraph (3)’’; and 

4 (B) by striking ‘‘paragraph (1)’’ and in5 serting ‘‘paragraph (1) or should be deemed in6 eligible for reemployment on the grounds of 

7 paragraph (2)’’. 

8 SEC. 1504. NOTIFICATION OF EMPLOYER OF INTENT TO RE9 TURN TO A POSITION OF EMPLOYMENT. 

10 Section 4312(e)(1)(A) of such title is amended by in11 serting after ‘‘31 days’’ the following: ‘‘or a person who 

12 was absent from a position of employment for the purpose 

13 of obtaining medical treatment for an injury or illness rec14 ognized by the Secretary of Veterans Affairs as a service15 connected, or for which a ‘line of duty’ document has been 

16 granted by the Secretary of Defense’’. 

17 SEC. 1505. EFFECTIVE DATE. 

18 The amendments made by this subtitle shall take ef19 fect on the date that is 90 days after the date of the enact20 ment of this subtitle. 


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1 Subtitle F—Emergency Unemploy2 ment Compensation Extension 

3 Act of 2011 

4 SEC. 1601. SHORT TITLE. 

5 This subtitle may be cited as the ‘‘Emergency Unem6 ployment Compensation Extension Act of 2011’’. 

7 SEC. 1602. EXTENSION OF EMERGENCY UNEMPLOYMENT 

8 COMPENSATION PROGRAM. 

9 (a) IN GENERAL.—Section 4007 of the Supplemental 

10 Appropriations Act, 2008 (Public Law 110–252; 26 

11 U.S.C. 3304 note) is amended— 

12 (1) by striking ‘‘January 3, 2012’’ each place 

13 it appears and inserting ‘‘January 3, 2013’’; 

14 (2) in the heading for subsection (b)(2), by 

15 striking ‘‘JANUARY 3, 2012’’ and inserting ‘‘JANUARY

16 3, 2013’’; and 

17 (3) in subsection (b)(3), by striking ‘‘June 9, 

18 2012’’ and inserting ‘‘June 8, 2013’’. 

19 (b) FUNDING.—Section 4004(e)(1) of the Supple20 mental Appropriations Act, 2008 (Public Law 110–252; 

21 26 U.S.C. 3304 note) is amended— 

22 (1) in subparagraph (F), by striking ‘‘and’’ at 

23 the end; and 

24 (2) by inserting after subparagraph (G) the fol25 lowing: 


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1 ‘‘(H) the amendments made by section 

2 1602(a) of the Emergency Unemployment Com3 pensation Extension Act of 2011; and’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall take effect as if included in the enact6 ment of the Tax Relief, Unemployment Insurance Reau7 thorization, and Job Creation Act of 2010 (Public Law 

8 111–312; 26 U.S.C. 3304 note). 

9 SEC. 1603. TEMPORARY EXTENSION OF EXTENDED BENEFIT 

10 PROVISIONS. 

11 (a) IN GENERAL.—Section 2005 of the Assistance for 

12 Unemployed Workers and Struggling Families Act, as 

13 contained in Public Law 111–5 (26 U.S.C. 3304 note), 

14 is amended— 

15 (1) by striking ‘‘January 4, 2012’’ each place 

16 it appears and inserting ‘‘January 4, 2013’’; and 

17 (2) in subsection (c), by striking ‘‘June 11, 

18 2012’’ and inserting ‘‘June 11, 2013’’. 

19 (b) EXTENSION OF MATCHING FOR STATES WITH

20 NO WAITING WEEK.—Section 5 of the Unemployment 

21 Compensation Extension Act of 2008 (Public Law 110– 

22 449; 26 U.S.C. 3304 note) is amended by striking ‘‘June 

23 10, 2012’’ and inserting ‘‘June 9, 2013’’. 

24 (c) EXTENSION OF MODIFICATION OF INDICATORS

25 UNDER THE EXTENDED BENEFIT PROGRAM.—Section 


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1 203 of the Federal-State Extended Unemployment Com2 pensation Act of 1970 (26 U.S.C. 3304 note) is amend3 ed— 

4 (1) in subsection (d), by striking ‘‘December 

5 31, 2011’’ and inserting ‘‘December 31, 2012’’; and 

6 (2) in subsection (f)(2), by striking ‘‘December 

7 31, 2011’’ and inserting ‘‘December 31, 2012’’. 

8 (d) EFFECTIVE DATE.—The amendments made by 

9 this section shall take effect as if included in the enact10 ment of the Tax Relief, Unemployment Insurance Reau11 thorization, and Job Creation Act of 2010 (Public Law 

12 111–312; 26 U.S.C. 3304 note). 

13 Subtitle G—Emergency Unemploy14 ment Compensation Expansion 

15 Act of 2011 

16 SEC. 1701. SHORT TITLE. 

17 This subtitle may be cited as the ‘‘Emergency Unem18 ployment Compensation Expansion Act of 2011’’. 

19 SEC. 1702. ADDITIONAL FIRST-TIER EMERGENCY UNEM20 PLOYMENT COMPENSATION. 

21 (a) IN GENERAL.—Section 4002(b)(1) of the Supple22 mental Appropriations Act, 2008 (Public Law 110–252; 

23 26 U.S.C. 3304 note) is amended— 

24 (1) in subparagraph (A), by striking ‘‘80’’ and 

25 inserting ‘‘131’’; and 


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1 (2) in subparagraph (B), by striking ‘‘20’’ and 

2 inserting ‘‘34’’. 

3 (b) COORDINATION RULE.—Section 4002(f) of such 

4 Act is amended by adding at the end the following: 

5 ‘‘(3) RULES RELATING TO ADDITIONAL WEEKS

6 OF FIRST-TIER EMERGENCY UNEMPLOYMENT COM7 PENSATION.— 

8 ‘‘(A) IN GENERAL.—If a State determines 

9 that implementation of the increased entitle10 ment to first-tier emergency unemployment 

11 compensation by reason of the amendments 

12 made by section 1702(a) of the Emergency Un13 employment Compensation Expansion Act of 

14 2011 would unduly delay the prompt payment 

15 of emergency unemployment compensation 

16 under this title, such State may elect to pay 

17 second-tier, third-tier, or fourth-tier emergency 

18 unemployment compensation (or a combination 

19 of those tiers) prior to the payment of such in20 creased first-tier emergency unemployment 

21 compensation until such time as such State de22 termines that such increased first-tier emer23 gency unemployment compensation may be paid 

24 without undue delay. 


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1 ‘‘(B) SPECIAL RULES.—If a State makes 

2 an election under subparagraph (A) which re3 sults in— 

4 ‘‘(i) the payment of second-tier (but 

5 not third-tier) emergency unemployment 

6 compensation prior to the payment of in7 creased first-tier emergency unemployment 

8 compensation, then, for purposes of deter9 mining whether an account may be aug10 mented for third-tier emergency unemploy11 ment compensation under subsection (d), 

12 such State shall treat the date of exhaus13 tion of such increased first-tier emergency 

14 unemployment compensation as the date of 

15 exhaustion of second-tier emergency unem16 ployment compensation, if such date is 

17 later than the date of exhaustion of the 

18 second-tier emergency unemployment com19 pensation; or 

20 ‘‘(ii) the payment of third-tier emer21 gency unemployment compensation prior to 

22 the payment of increased first-tier emer23 gency unemployment compensation, then, 

24 for purposes of determining whether an ac25 count may be augmented for fourth-tier 


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1 emergency unemployment compensation 

2 under subsection (e), such State shall treat 

3 the date of exhaustion of such increased 

4 first-tier emergency unemployment com5 pensation as the date of exhaustion of 

6 third-tier emergency unemployment com7 pensation, if such date is later than the 

8 date of exhaustion of the third-tier emer9 gency unemployment compensation. 

10 ‘‘(4) COORDINATION OF MODIFICATIONS (RE11 LATING TO ADDITIONAL FIRST-TIER EMERGENCY

12 UNEMPLOYMENT COMPENSATION) WITH EXTENDED

13 COMPENSATION.—Notwithstanding an election under 

14 section 4001(e) by a State to provide for the pay15 ment of emergency unemployment compensation 

16 prior to extended compensation, such State may pay 

17 extended compensation to an otherwise eligible indi18 vidual prior to any additional emergency unemploy19 ment compensation under subsection (b) (payable by 

20 reason of the amendments made by section 1702(a) 

21 of the Emergency Unemployment Compensation Ex22 pansion Act of 2011), if such individual claimed ex23 tended compensation for at least 1 week of unem24 ployment after the exhaustion of emergency unem25 ployment compensation under subsection (b) (as 


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1 such subsection was in effect on the day before the 

2 date of the enactment of this paragraph), (c), (d), 

3 or (e).’’. 

4 (c) FUNDING.—Section 4004(e)(1) of such Act, as 

5 amended by section 1602(b) of the Emergency Unemploy6 ment Compensation Extension Act of 2011, is further 

7 amended— 

8 (1) in subparagraph (G), by striking ‘‘and’’ at 

9 the end; and 

10 (2) by inserting after subparagraph (H) the fol11 lowing: 

12 ‘‘(I) the amendments made by section 

13 1702(a) of the Emergency Unemployment Com14 pensation Expansion Act of 2011; and’’. 

15 SEC. 1703. REGULATIONS. 

16 The Secretary of Labor may prescribe any operating 

17 instructions or regulations necessary to carry out this sub18 title and the amendments made by this subtitle. 

19 SEC. 1704. EFFECTIVE DATE. 

20 The amendments made by this subtitle shall take ef21 fect as if included in the enactment of the Unemployment 

22 Compensation Extension Act of 2010 (Public Law 111– 

23 205), except that no additional first-tier emergency unem24 ployment compensation shall be payable by virtue of the 

25 amendments made by section 1702(a) with respect to any 


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1 week of unemployment commencing before the date of the 

2 enactment of this subtitle. 

3 Subtitle H—Currency Reform for 

4 Fair Trade Act 

5 SEC. 1801. SHORT TITLE. 

6 This subtitle may be cited as the ‘‘Currency Reform 

7 for Fair Trade Act’’. 

8 SEC. 1802. CLARIFICATION REGARDING DEFINITION OF 

9 COUNTERVAILABLE SUBSIDY. 

10 (a) BENEFIT CONFERRED.—Section 771(5)(E) of 

11 the Tariff Act of 1930 (19 U.S.C. 1677(5)(E)) is amend12 ed— 

13 (1) in clause (iii), by striking ‘‘and’’ at the end; 

14 (2) in clause (iv), by striking the period at the 

15 end and inserting ‘‘, and’’; and 

16 (3) by inserting after clause (iv) the following 

17 new clause: 

18 ‘‘(v) in the case in which the currency 

19 of a country in which the subject merchan20 dise is produced is exchanged for foreign 

21 currency obtained from export trans22 actions, and the currency of such country 

23 is a fundamentally undervalued currency, 

24 as defined in paragraph (37), the dif25 ference between the amount of the curVerDate Mar 15 2010 00:56 Dec 17, 2011 Jkt 019200 PO 00000 Frm 00152 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638

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1 rency of such country provided and the 

2 amount of the currency of such country 

3 that would have been provided if the real 

4 effective exchange rate of the currency of 

5 such country were not undervalued, as de6 termined pursuant to paragraph (38).’’. 

7 (b) EXPORT SUBSIDY.—Section 771(5A)(B) of the 

8 Tariff Act of 1930 (19 U.S.C. 1677(5A)(B)) is amended 

9 by adding at the end the following new sentence: ‘‘In the 

10 case of a subsidy relating to a fundamentally undervalued 

11 currency, the fact that the subsidy may also be provided 

12 in circumstances not involving export shall not, for that 

13 reason alone, mean that the subsidy cannot be considered 

14 contingent upon export performance.’’. 

15 (c) DEFINITION OF FUNDAMENTALLY UNDER16 VALUED CURRENCY.—Section 771 of the Tariff Act of 

17 1930 (19 U.S.C. 1677) is amended by adding at the end 

18 the following new paragraph: 

19 ‘‘(37) FUNDAMENTALLY UNDERVALUED CUR20 RENCY.—The administering authority shall deter21 mine that the currency of a country in which the 

22 subject merchandise is produced is a ‘fundamentally 

23 undervalued currency’ if— 

24 ‘‘(A) the government of the country (in25 cluding any public entity within the territory of 


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1 the country) engages in protracted, large-scale 

2 intervention in one or more foreign exchange 

3 markets during part or all of the 18-month pe4 riod that represents the most recent 18 months 

5 for which the information required under para6 graph (38) is reasonably available, but that 

7 does not include any period of time later than 

8 the final month in the period of investigation or 

9 the period of review, as applicable; 

10 ‘‘(B) the real effective exchange rate of the 

11 currency is undervalued by at least 5 percent, 

12 on average and as calculated under paragraph 

13 (38), relative to the equilibrium real effective 

14 exchange rate for the country’s currency during 

15 the 18-month period; 

16 ‘‘(C) during the 18-month period, the 

17 country has experienced significant and per18 sistent global current account surpluses; and 

19 ‘‘(D) during the 18-month period, the for20 eign asset reserves held by the government of 

21 the country exceed— 

22 ‘‘(i) the amount necessary to repay all 

23 debt obligations of the government falling 

24 due within the coming 12 months; 


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1 ‘‘(ii) 20 percent of the country’s 

2 money supply, using standard measures of 

3 M2; and 

4 ‘‘(iii) the value of the country’s im5 ports during the previous 4 months.’’. 

6 (d) DEFINITION OF REAL EFFECTIVE EXCHANGE

7 RATE UNDERVALUATION.—Section 771 of the Tariff Act 

8 of 1930 (19 U.S.C. 1677), as amended by subsection (c) 

9 of this section, is further amended by adding at the end 

10 the following new paragraph: 

11 ‘‘(38) REAL EFFECTIVE EXCHANGE RATE

12 UNDERVALUATION.—The calculation of real effective 

13 exchange rate undervaluation, for purposes of para14 graph (5)(E)(v) and paragraph (37), shall— 

15 ‘‘(A)(i) rely upon, and where appropriate 

16 be the simple average of, the results yielded 

17 from application of the approaches described in 

18 the guidelines of the International Monetary 

19 Fund’s Consultative Group on Exchange Rate 

20 Issues; or 

21 ‘‘(ii) if the guidelines of the International 

22 Monetary Fund’s Consultative Group on Ex23 change Rate Issues are not available, be based 

24 on generally accepted economic and econometric 


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1 techniques and methodologies to measure the 

2 level of undervaluation; 

3 ‘‘(B) rely upon data that are publicly avail4 able, reliable, and compiled and maintained by 

5 the International Monetary Fund or, if the 

6 International Monetary Fund cannot provide 

7 the data, by other international organizations or 

8 by national governments; and 

9 ‘‘(C) use inflation-adjusted, trade-weighted 

10 exchange rates.’’. 

11 SEC. 1803. REPORT ON IMPLEMENTATION OF SUBTITLE. 

12 (a) IN GENERAL.—Not later than 9 months after the 

13 date of the enactment of this subtitle, the Comptroller 

14 General of the United States shall submit to Congress a 

15 report on the implementation of the amendments made by 

16 this subtitle. 

17 (b) MATTERS TO BE INCLUDED.—The report re18 quired by subsection (a) shall include a description of the 

19 extent to which United States industries that have been 

20 materially injured by reason of imports of subject mer21 chandise produced in foreign countries with fundamentally 

22 undervalued currencies have received relief under title VII 

23 of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.), as 

24 amended by this subtitle. 


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1 SEC. 1804. APPLICATION TO GOODS FROM CANADA AND 

2 MEXICO. 

3 Pursuant to article 1902 of the North American Free 

4 Trade Agreement and section 408 of the North American 

5 Free Trade Agreement Implementation Act of 1993 (19 

6 U.S.C. 3438), the amendments made by section 1802 shall 

7 apply to goods from Canada and Mexico. 

8 Subtitle I—Prioritize Emergency 

9 Job Creation Act 

10 SEC. 1851. SHORT TITLE. 

11 This subtitle may be cited as the ‘‘Prioritize Emer12 gency Job Creation Act’’. 

13 SEC. 1852. EMERGENCY JOB CREATION. 

14 Section 251(b)(2) of the Balanced Budget and Emer15 gency Deficit Control Act of 1985 is amended by adding 

16 at the end the following new subparagraph: 

17 ‘‘(E) EMERGENCY JOB CREATION.—If, for 

18 fiscal years 2012 through 2021, appropriations 

19 for discretionary accounts are enacted that 

20 Congress designates and the President subse21 quently so designates as being for emergency 

22 job creation in statute, the adjustment for a fis23 cal year shall be the total of such appropria24 tions for the fiscal year in discretionary ac25 counts designated as being for emergency job 

26 creation.’’. 


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1 Subtitle J—Fair Employment 

2 Opportunity Act of 2011 

3 SEC. 1901. SHORT TITLE. 

4 This subtitle may be cited as the ‘‘Fair Employment 

5 Opportunity Act of 2011’’. 

6 SEC. 1902. FINDINGS AND PURPOSE. 

7 (a) FINDINGS.—Congress finds that denial of em8 ployment opportunities to individuals because they are or 

9 have been unemployed is discriminatory and burdens com10 merce by— 

11 (1) reducing personal consumption and under12 mining economic stability and growth; 

13 (2) squandering human capital essential to the 

14 Nation’s economic vibrancy and growth; 

15 (3) increasing demands for State and Federal 

16 unemployment insurance benefits, reducing trust 

17 fund assets, and leading to higher payroll taxes for 

18 employers, cuts in benefits for jobless workers, or 

19 both; 

20 (4) imposing additional burdens on publicly 

21 funded health and welfare programs; and 

22 (5) depressing income, property, and other tax 

23 revenues that states, localities and the Federal Gov24 ernment rely on to support operations and institu25 tions essential to commerce. 


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1 (b) PURPOSE.—The purpose of this subtitle is to pro2 hibit consideration of an individual’s status as unemployed 

3 in screening for or filling positions except where a require4 ment related to employment status is a bona fide occupa5 tional qualification reasonably necessary to successful per6 formance in the job and to eliminate the burdens imposed 

7 on commerce by excluding such individuals from employ8 ment. 

9 SEC. 1903. DEFINITIONS. 

10 As used in this subtitle— 

11 (1) the term ‘‘employer’’ means any person en12 gaged in commerce or any industry or activity af13 fecting commerce who has 15 or more employees for 

14 each working day in each of 20 or more calendar 

15 weeks in the current or preceding calendar year, and 

16 includes— 

17 (A) any person who acts, directly or indi18 rectly, in the interest of an employer with re19 spect to employing individuals to work for the 

20 employer; and 

21 (B) any successor in interest of an em22 ployer; 

23 (2) the term ‘‘employment agency’’ means any 

24 person regularly undertaking with or without com25 pensation to procure employees for an employer or 


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1 to procure for individuals opportunities to work for 

2 an employer and includes an agent of such a person, 

3 and includes any person who maintains an Internet 

4 website that publishes advertisements or announce5 ments of job openings; 

6 (3) the term ‘‘affected individual’’ means any 

7 person who was refused consideration for employ8 ment or was not hired by an employer because of the 

9 person’s current employment status, or any person 

10 who was not considered, screened, or referred for 

11 employment opportunities by an employment agency 

12 because of the person’s current employment status; 

13 (4) the term ‘‘status as unemployed’’ means an 

14 individual’s present or past unemployment regard15 less of the length of time such individual was unem16 ployed; and 

17 (5) the term ‘‘Secretary’’ means the Secretary 

18 of Labor. 

19 SEC. 1904. PROHIBITED ACTS. 

20 (a) EMPLOYERS.—It shall be an unlawful practice for 

21 an employer to— 

22 (1) refuse to consider for employment or refuse 

23 to offer employment to an individual because of the 

24 individual’s status as unemployed; 


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1 (2) publish in print, on the Internet, or in any 

2 other medium, an advertisement or announcement 

3 for any job that includes— 

4 (A) any provision stating or indicating that 

5 an individual’s status as unemployed disquali6 fies the individual for a job; and 

7 (B) any provision stating or indicating that 

8 an employer will not consider an applicant for 

9 employment based on that individual’s status as 

10 unemployed; and 

11 (3) direct or request that an employment agen12 cy take an individual’s status as unemployed into ac13 count in screening or referring applicants for em14 ployment. 

15 (b) EMPLOYMENT AGENCIES.—It shall be an unlaw16 ful practice for an employment agency to— 

17 (1) refuse to consider or refer an individual for 

18 employment based on the individual’s status as un19 employed; 

20 (2) limit, segregate, or classify individuals in 

21 any manner that may limit their access to informa22 tion about jobs or referral for consideration of jobs 

23 because of their status as unemployed; or 


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1 (3) publish, in print or on the Internet or in 

2 any other medium, an advertisement or announce3 ment for any job vacancy that includes— 

4 (A) any provision stating or indicating that 

5 an individual’s status as unemployed disquali6 fies the individual for a job; and 

7 (B) any provision stating or indicating that 

8 an employer will not consider individuals for 

9 employment based on that individual’s status as 

10 unemployed. 

11 (c) INTERFERENCE WITH RIGHTS, PROCEEDINGS OR

12 INQUIRIES.—It shall be unlawful for any employer or em13 ployment agency to— 

14 (1) interfere with, restrain, or deny the exercise 

15 of or the attempt to exercise, any right provided 

16 under this subtitle; or 

17 (2) refuse to hire, to discharge, or in any other 

18 manner to discriminate against any individual be19 cause such individual— 

20 (A) opposed any practice made unlawful by 

21 this subtitle; 

22 (B) has filed any charge, or has instituted 

23 or caused to be instituted any proceeding, 

24 under or related to this subtitle; 


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1 (C) has given, or is about to give, any in2 formation in connection with any inquiry or 

3 proceeding relating to any right provided under 

4 this subtitle; or 

5 (D) has testified, or is about to testify, in 

6 any inquiry or proceeding relating to any right 

7 provided under this subtitle. 

8 (d) BONA FIDE OCCUPATIONAL QUALIFICATION.— 

9 Notwithstanding any other provision of this subtitle, con10 sideration by an employer or employment agency of an in11 dividual’s status as unemployed shall not be an unlawful 

12 employment practice where an individual’s employment in 

13 a similar or related job for a period of time reasonably 

14 proximate to the hiring of such individual is a bona fide 

15 occupational qualification reasonably necessary to success16 ful performance of the job that is being filled. 

17 SEC. 1905. ENFORCEMENT. 

18 (a) CIVIL ACTION BY INDIVIDUAL.— 

19 (1) LIABILITY FOR EMPLOYERS AND EMPLOY20 MENT AGENCIES.—Any employer or employment 

21 agency that violates section 1904(a) or (b) shall be 

22 liable to any affected individual— 

23 (A) for actual damages equal to— 

24 (i) the amount of— 


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1 (I) any wages, salary, employ2 ment benefits, or other compensation 

3 denied or lost to such individual by 

4 reason of the violation; or 

5 (II) in a case in which wages, 

6 salary, employment benefits, or other 

7 compensation have not been denied or 

8 lost to the individual, any actual mon9 etary losses sustained by the indi10 vidual as a direct result of the viola11 tion or a civil penalty of $1,000 per 

12 violation per day, whichever is great13 er; 

14 (ii) the interest on the amount de15 scribed in clause (i) calculated at the pre16 vailing rate; and 

17 (iii) an additional amount as liq18 uidated damages equal to the sum of the 

19 amount described in clause (i) and the in20 terest described in clause (ii), except that 

21 if an employer or employment agency that 

22 has violated section 1904 proves to the sat23 isfaction of the court that the act or omis24 sion that violated section 1904 was in good 

25 faith and that the employer had reasonable 


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1 grounds for believing that the act or omis2 sion was not a violation of section 1904, 

3 such court may, in its discretion, reduce 

4 the amount of the liability to the amount 

5 and interest determined under clauses (i) 

6 and (ii), respectively; and 

7 (B) for such equitable relief as may be ap8 propriate, including employment and compen9 satory and punitive damages. 

10 (2) RIGHT OF ACTION.—An action to recover 

11 the damages or equitable relief prescribed in para12 graph (1) of this subsection may be maintained 

13 against any employer or employment agency in any 

14 Federal or State court of competent jurisdiction by 

15 any one or more persons for and in behalf of— 

16 (A) the affected individual; or 

17 (B) the affected individual and other indi18 viduals similarly situated. 

19 (3) FEES AND COSTS.—The court in such an 

20 action shall, in addition to any judgment awarded to 

21 the plaintiff, allow a reasonable attorney’s fee, rea22 sonable expert witness fees, and other costs of the 

23 action to be paid by the defendant. 

24 (4) LIMITATIONS.—The right provided by para25 graph (2) of this subsection to bring an action by or 


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1 on behalf of any affected individual shall termi2 nate— 

3 (A) on the filing of a complaint by the Sec4 retary in an action under subsection (d) in 

5 which restraint is sought of any violation of sec6 tion 1904; or 

7 (B) on the filing of a complaint by the Sec8 retary in an action under subsection (b) in 

9 which a recovery is sought of the damages de10 scribed in paragraph (1)(A) owing to an af11 fected individual by an employer or employment 

12 agency liable under paragraph (1), unless the 

13 action described in subparagraph (A) or (B) is 

14 dismissed without prejudice on motion of the 

15 Secretary. 

16 (b) ACTION BY THE SECRETARY.— 

17 (1) ADMINISTRATIVE ACTION.—The Secretary 

18 shall receive, investigate, and attempt to resolve 

19 complaints of violations of section 1904 in the same 

20 manner that the Secretary receives, investigates, and 

21 attempts to resolve complaints of violations of sec22 tions 6 and 7 of the Fair Labor Standards Act of 

23 1938 (29 U.S.C. 206 and 207). 

24 (2) CIVIL ACTION.—The Secretary may bring 

25 an action in any court of competent jurisdiction— 


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1 (A) to enjoin violations of this subtitle and 

2 seek other relief going forward necessary to pre3 vent future violations; 

4 (B) to recover— 

5 (i) the damages described in sub6 section (a)(1)(A); 

7 (ii) in the case of a violation of section 

8 1904(c), a civil penalty of not less than 

9 $250 per violation; or 

10 (iii) such other equitable relief the 

11 Court deems appropriate. 

12 (3) SUMS RECOVERED.—Any sums recovered by 

13 the Secretary pursuant to paragraph (2)(A) shall be 

14 held in a special deposit account and shall be paid, 

15 on order of the Secretary, directly to each affected 

16 individual. Any such sums recovered pursuant to 

17 paragraph (2)(A) that are not paid to an affected in18 dividual because of inability to do so within a period 

19 of 3 years and any sums recovered pursuant to para20 graph (2)(B) shall be deposited into the Treasury of 

21 the United States as miscellaneous receipts. 

22 (c) LIMITATION.— 

23 (1) IN GENERAL.—Except as provided in para24 graph (2), an action under subsection (a) may be 

25 brought not later than 2 years after the date of the 


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1 last event constituting the alleged violation for which 

2 the action is brought, provided that the limitations 

3 for filing an action shall be tolled during the period 

4 that the Secretary is considering a complaint against 

5 any defendant named in a complaint filed with the 

6 Secretary under subsection (b)(1) above. 

7 (2) WILLFUL VIOLATION.—In the case of such 

8 action brought for a willful violation of section 1904, 

9 such action may be brought within 3 years of the 

10 date of the last event constituting the alleged viola11 tion for which such action is brought, provided that 

12 the limitations for filing an action by an individual 

13 shall be tolled during the period that the Secretary 

14 is considering a complaint pursuant to subsection 

15 (b)(1). 

16 (3) COMMENCEMENT.—In determining when an 

17 action is commenced by the Secretary under this 

18 section for the purposes of this subsection, it shall 

19 be considered to be commenced on the date when the 

20 Secretary files a complaint in a court of competent 

21 jurisdiction. 

22 (d) ACTION FOR INJUNCTION BY SECRETARY.—The 

23 district courts of the United States shall have jurisdiction, 

24 for cause shown, in an action brought by the Secretary— 

25 (1) to restrain violations of section 1904; and 


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1 (2) to award such other equitable relief as may 

2 be appropriate, including employment and monetary 

3 damages. 

4 (e) SOLICITOR OF LABOR.—The Solicitor of Labor 

5 may appear for and represent the Secretary on any litiga6 tion brought under this section. 

7 Subtitle K—New Jobs for America 

8 Act of 2011 

9 SEC. 1951. SHORT TITLE. 

10 This subtitle may be cited as the ‘‘New Jobs for 

11 America Act of 2011’’. 

12 SEC. 1952. COMPENSATED EMPLOYMENT TRAINING 

13 GRANTS. 

14 (a) AUTHORIZATION.—Subject to the availability of 

15 appropriations for such funds, the Secretary of Labor 

16 shall make grants to States, units of local government, 

17 and Indian tribes to carry out the activities described in 

18 subsection (b). 

19 (b) USE OF FUNDS.—A recipient of a grant under 

20 this subtitle shall use the grant for the following purposes: 

21 (1) To seek out unemployed individuals strug22 gling financially whose prior training consisted of 

23 skills necessary for a faltering or dying industry. 


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1 (2) To create compensated training programs 

2 that offer training in emerging markets and indus3 tries (such as green technologies). 

4 (3) To partner with historically Black colleges 

5 and universities and Hispanic serving colleges and 

6 universities along with local community college sys7 tems to create innovative retraining programs for 

8 minorities focused on retooling workers for jobs in 

9 the growth sectors of healthcare, biotech, and infor10 mation technology. 

11 (4) To partner with cities and non-profit orga12 nizations to provide apprenticeships and internships. 

13 (5) To provide compensation to participants in 

14 training programs to temporarily aide in their finan15 cial distress. 

16 (6) To provide access to public healthcare pro17 grams for participants. 

18 (7) To create training programs for ex-offend19 ers in an effort to reduce recidivism. 

20 (8) To aide newly trained participants in secur21 ing employment within the field of their newly ac22 quired expertise. 

23 (c) CONDITIONS.—As a condition of receiving a grant 

24 under this subtitle, a grant recipient shall— 


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1 (1) comply with nondiscrimination standards of 

2 the Civil Rights Act; 

3 (2) allocate not less than 80 percent of the 

4 funding allocated under the grant to wages, benefits, 

5 and support activities, including child care services 

6 to individuals receiving compensated training under 

7 such a grant; and 

8 (3) institute a program to aide newly trained 

9 participants in securing employment in their new 

10 area of expertise. 

11 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated such sums as may be 

13 necessary to carry out this subtitle. 

14 Subtitle L—Transportation 

15 Infrastructure Investment 

16 SEC. 1961. TRANSPORTATION INFRASTRUCTURE INVEST17 MENT. 

18 (a) HIGHWAY INFRASTRUCTURE INVESTMENT.— 

19 (1) IN GENERAL.—There is made available to 

20 the Secretary of Transportation $45,000,000,000 

21 for restoration, repair, construction, and other ac22 tivities eligible under section 133(b) of title 23, 

23 United States Code, and for passenger and freight 

24 rail transportation and port infrastructure projects 


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1 eligible for assistance under section 601(a)(8) of 

2 title 23, United States Code. 

3 (2) FEDERAL SHARE; LIMITATION ON OBLIGA4 TIONS.—The Federal share payable on account of 

5 any project or activity carried out with funds made 

6 available under this subsection shall be, at the op7 tion of the recipient, up to 100 percent of the total 

8 cost thereof. The amount made available under this 

9 subsection shall not be subject to any limitation on 

10 obligations for Federal-aid highways and highway 

11 safety construction programs set forth in any Act or 

12 in title 23, United States Code. 

13 (3) AVAILABILITY.—The amounts made avail14 able under this subsection shall be available for obli15 gation until the date that is two years after the date 

16 of the enactment of this Act. The Secretary shall ob17 ligate amounts totaling not less than 50 percent of 

18 the funds made available within one year of enact19 ment and obligate remaining amounts not later than 

20 two years after enactment. 

21 (4) DISTRIBUTION OF FUNDS.—Of the funds 

22 provided in this subsection, after making the set23 asides required by paragraphs (9), (10), (11), (12), 

24 and (15), 50 percent of the funds shall be appor25 tioned to States using the formula set forth in secVerDate Mar 15 2010 00:56 Dec 17, 2011 Jkt 019200 PO 00000 Frm 00172 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638

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1 tion 104(b)(3) of title 23, United States Code, and 

2 the remaining funds shall be apportioned to States 

3 in the same ratio as the obligation limitation for fis4 cal year 2010 was distributed among the States in 

5 accordance with the formula specified in section 

6 120(a)(6) of division A of Public Law 111–117. 

7 (5) APPORTIONMENT.—Apportionments under 

8 paragraph (4) shall be made not later than 30 days 

9 after the date of the enactment of this subtitle. 

10 (6) REDISTRIBUTION.— 

11 (A) The Secretary shall, 180 days fol12 lowing the date of apportionment, withdraw 

13 from each State an amount equal to 50 percent 

14 of the funds apportioned under paragraph (4) 

15 to that State (excluding funds suballocated 

16 within the State) less the amount of funding 

17 obligated (excluding funds suballocated within 

18 the State), and the Secretary shall redistribute 

19 such amounts to other States that have had no 

20 funds withdrawn under this subparagraph in 

21 the manner described in section 120(c) of divi22 sion A of Public Law 111–117. 

23 (B) One year following the date of appor24 tionment, the Secretary shall withdraw from 

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1 graph (4) any unobligated funds, and the Sec2 retary shall redistribute such amounts to States 

3 that have had no funds withdrawn under this 

4 paragraph (excluding funds suballocated within 

5 the State) in the manner described in section 

6 120(c) of division A of Public Law 111–117. 

7 (C) At the request of a State, the Sec8 retary may provide an extension of the one-year 

9 period only to the extent that the Secretary de10 termines that the State has encountered ex11 treme conditions that create an unworkable bid12 ding environment or other extenuating cir13 cumstances. Before granting an extension, the 

14 Secretary shall notify in writing the Committee 

15 on Transportation and Infrastructure of the 

16 House of Representatives and the Committee 

17 on Environment and Public Works of the Sen18 ate, providing a thorough justification for the 

19 extension. 

20 (7) TRANSPORTATION ENHANCEMENTS.—Three 

21 percent of the funds apportioned to a State under 

22 paragraph (4) shall be set aside for the purposes de23 scribed in section 133(d)(2) of title 23, United 

24 States Code (without regard to the comparison to 

25 fiscal year 2005). 


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1 (8) SUBALLOCATION.—Thirty percent of the 

2 funds apportioned to a State under this subsection 

3 shall be suballocated within the State in the manner 

4 and for the purposes described in the first sentence 

5 of sections 133(d)(3)(A), 133(d)(3)(B), and 

6 133(d)(3)(D) of title 23, United States Code. Such 

7 suballocation shall be conducted in every State. 

8 Funds suballocated within a State to urbanized 

9 areas and other areas shall not be subject to the re10 distribution of amounts required 180 days following 

11 the date of apportionment of funds provided by 

12 paragraph (6)(A). 

13 (9) PUERTO RICO AND TERRITORIAL HIGHWAY

14 PROGRAMS.—Of the funds provided under this sub15 section, $105,000,000 shall be set aside for the 

16 Puerto Rico highway program authorized under sec17 tion 165 of title 23, United States Code, and 

18 $45,000,000 shall be for the territorial highway pro19 gram authorized under section 215 of title 23, 

20 United States Code. 

21 (10) FEDERAL LANDS AND INDIAN RESERVA22 TIONS.—Of the funds provided under this sub23 section, $750,000,000 shall be set aside for invest24 ments in transportation at Indian reservations and 

25 Federal lands in accordance with the following: 


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1 (A) Of the funds set aside by this para2 graph, $410,000,000 shall be for the Indian 

3 Reservation Roads program, $270,000,000 

4 shall be for the Park Roads and Parkways pro5 gram, $60,000,000 shall be for the Forest 

6 Highway Program, and $10,000,000 shall be 

7 for the Refuge Roads program. 

8 (B) For investments at Indian reservations 

9 and Federal lands, priority shall be given to 

10 capital investments, and to projects and activi11 ties that can be completed within 2 years of en12 actment of this Act. 

13 (C) One year following the enactment of 

14 this subtitle, to ensure the prompt use of the 

15 funding provided for investments at Indian res16 ervations and Federal lands, the Secretary shall 

17 have the authority to redistribute unobligated 

18 funds within the respective program for which 

19 the funds were appropriated. 

20 (D) Up to four percent of the funding pro21 vided for Indian Reservation Roads may be 

22 used by the Secretary of the Interior for pro23 gram management and oversight and project-re24 lated administrative expenses. 


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1 (E) Section 134(f)(3)(C)(ii)(II) of title 23, 

2 United States Code, shall not apply to funds set 

3 aside by this paragraph. 

4 (11) JOB TRAINING.—Of the funds provided 

5 under this subsection, $100,000,000 shall be set 

6 aside for the development and administration of 

7 transportation training programs under section 

8 140(b) of title 23, United States Code, in accord9 ance with the following: 

10 (A) Funds set aside under this paragraph 

11 shall be competitively awarded and used for the 

12 purpose of providing training, apprenticeship 

13 (including Registered Apprenticeship), skill de14 velopment, and skill improvement programs, as 

15 well as summer transportation institutes, may 

16 be transferred to, or administered in partner17 ship with, the Secretary of Labor, and shall be 

18 used for programs that demonstrate to the Sec19 retary of Transportation program outcomes, in20 cluding with respect to— 

21 (i) impact on areas with transpor22 tation workforce shortages; 

23 (ii) diversity of training participants; 


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1 (iii) number of participants obtaining 

2 certifications or credentials required for 

3 specific types of employment; 

4 (iv) employment outcome metrics, 

5 such as job placement and job retention 

6 rates, established in consultation with the 

7 Secretary of Labor and consistent with 

8 metrics used by programs under the Work9 force Investment Act of 1998 (Public Law 

10 105–220); 

11 (v) to the extent practical, evidence 

12 that the program did not preclude workers 

13 that participate in training or apprentice14 ship activities under the program from 

15 being referred to, or hired on, projects 

16 funded under this chapter; and 

17 (vi) identification of areas of collabo18 ration with the Department of Labor pro19 grams, including co-enrollment. 

20 (B) To be eligible to receive a competitively 

21 awarded grant under this paragraph, a State 

22 must certify that at least 0.1 percent of the 

23 amounts apportioned under the Surface Trans24 portation Program and Bridge Program will be 

25 obligated in the first fiscal year after enactment 


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1 of this Act for job training activities consistent 

2 with section 140(b) of title 23, United States 

3 Code. 

4 (12) DISADVANTAGED BUSINESS ENTER5 PRISES.—Of the funds provided under this sub6 section, $10,000,000 shall be set aside for training 

7 programs and assistance programs under section 

8 140(c) of title 23, United States Code. Funds set 

9 aside under this paragraph should be allocated to 

10 businesses that have proven success in adding staff 

11 while effectively completing projects. 

12 (13) STATE PLANNING AND OVERSIGHT EX13 PENSES.—Of amounts apportioned under paragraph 

14 (4) of this subsection, a State may use up to 0.5 

15 percent for activities related to projects funded 

16 under this subsection, including activities eligible 

17 under sections 134 and 135 of title 23, United 

18 States Code, State administration of subgrants, and 

19 State oversight of subrecipients. 

20 (14) CONDITIONS.— 

21 (A) Funds made available under this sub22 section shall be administered as if apportioned 

23 under chapter 1 of title 23, United States Code, 

24 except for funds made available for investments 

25 in transportation at Indian reservations and 


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1 Federal lands, and for the territorial highway 

2 program, which shall be administered in accord3 ance with chapter 2 of title 23, United States 

4 Code, and except for funds made available for 

5 disadvantaged business enterprises bonding as6 sistance, which shall be administered in accord7 ance with chapter 3 of title 49, United States 

8 Code. 

9 (B) Funds made available under this sub10 section shall not be obligated for the purposes 

11 authorized under section 115(b) of title 23, 

12 United States Code. 

13 (C) Funding provided under this sub14 section shall be in addition to any and all funds 

15 provided for fiscal years 2012 and 2013 in any 

16 other Act for ‘‘Federal-aid Highways’’ and shall 

17 not affect the distribution of funds provided for 

18 ‘‘Federal-aid Highways’’ in any other Act. 

19 (D) Section 1101(b) of Public Law 109–59 

20 shall apply to funds apportioned under this sub21 section. 

22 (15) OVERSIGHT.—The Administrator of the 

23 Federal Highway Administration may set aside up 

24 to 0.15 percent of the funds provided under this 

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1 trator of projects and activities carried out with 

2 funds made available to the Federal Highway Ad3 ministration in this Act, and such funds shall be 

4 available through September 30, 2015. 

5 (b) TRANSPORTATION INFRASTRUCTURE GRANTS

6 AND FINANCING.— 

7 (1) IN GENERAL.—There is made available to 

8 the Secretary of Transportation $5,000,000,000 for 

9 capital investments in surface transportation infra10 structure. The Secretary shall distribute funds pro11 vided under this subsection as discretionary grants 

12 to be awarded to State and local governments or 

13 transit agencies on a competitive basis for projects 

14 that will have a significant impact on the Nation, a 

15 metropolitan area, or a region. 

16 (2) FEDERAL SHARE; LIMITATION ON OBLIGA17 TIONS.—The Federal share payable of the costs for 

18 which a grant is made under this subsection shall be 

19 100 percent. 

20 (3) AVAILABILITY.—The amounts made avail21 able under this subsection shall be available for obli22 gation until the date that is two years after the date 

23 of the enactment of this subtitle. The Secretary shall 

24 obligate amounts totaling not less than 50 percent 

25 of the funds made available within one year of enVerDate Mar 15 2010 00:56 Dec 17, 2011 Jkt 019200 PO 00000 Frm 00181 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638

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1 actment and obligate remaining amounts not later 

2 than two years after enactment. 

3 (4) PROJECT ELIGIBILITY.—Projects eligible for 

4 funding provided under this subsection include— 

5 (A) highway or bridge projects eligible 

6 under title 23, United States Code, including 

7 interstate rehabilitation, improvements to the 

8 rural collector road system, the reconstruction 

9 of overpasses and interchanges, bridge replace10 ments, seismic retrofit projects for bridges, and 

11 road realignments; 

12 (B) public transportation projects eligible 

13 under chapter 53 of title 49, United States 

14 Code, including investments in projects partici15 pating in the New Starts or Small Starts pro16 grams that will expedite the completion of those 

17 projects and their entry into revenue service; 

18 (C) passenger and freight rail transpor19 tation projects; and 

20 (D) port infrastructure investments, in21 cluding projects that connect ports to other 

22 modes of transportation and improve the effi23 ciency of freight movement. 

24 (5) TIFIA PROGRAM.—The Secretary may 

25 transfer to the Federal Highway Administration 


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1 funds made available under this subsection for the 

2 purpose of paying the subsidy and administrative 

3 costs of projects eligible for Federal credit assistance 

4 under chapter 6 of title 23, United States Code, if 

5 the Secretary finds that such use of the funds would 

6 advance the purposes of this subsection. 

7 (6) PROJECT PRIORITY.—The Secretary shall 

8 give priority to projects that are expected to be com9 pleted within 3 years of the date of the enactment 

10 of this subtitle. 

11 (7) DEADLINE FOR ISSUANCE OF COMPETITION

12 CRITERIA.—The Secretary shall publish criteria on 

13 which to base the competition for any grants award14 ed under this subsection not later than 90 days after 

15 enactment of this subtitle. The Secretary shall re16 quire applications for funding provided under this 

17 subsection to be submitted not later than 180 days 

18 after the publication of the criteria and announce all 

19 projects selected to be funded from such funding not 

20 later than one year after the date of the enactment 

21 of this subtitle. 

22 (8) APPLICABILITY OF TITLE 40.—Each project 

23 conducted using funds provided under this sub24 section shall comply with the requirements of subVerDate Mar 15 2010 00:56 Dec 17, 2011 Jkt 019200 PO 00000 Frm 00183 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638

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1 chapter IV of chapter 31 of title 40, United States 

2 Code. 

3 (9) ADMINISTRATIVE EXPENSES.—The Sec4 retary may retain up to one half of one percent of 

5 the funds provided under this subsection, and may 

6 transfer portions of those funds to the Administra7 tors of the Federal Highway Administration, the 

8 Federal Transit Administration, the Federal Rail9 road Administration, and the Maritime Administra10 tion, to fund the award and oversight of grants 

11 made under this subsection. Funds retained shall re12 main available for obligation until September 30, 

13 2015. 

14 Subtitle M—Jobs NOW Act 

15 SEC. 1971. SHORT TITLE. 

16 This subtitle may be cited as the ‘‘Jobs NOW Act’’. 

17 SEC. 1972. RESTORATION OF TANF EMERGENCY CONTIN18 GENCY FUND. 

19 (a) IN GENERAL.—Section 403 of the Social Security 

20 Act (42 U.S.C. 603) is amended by adding at the end the 

21 following: 

22 ‘‘(c) EMERGENCY FUND.— 

23 ‘‘(1) ESTABLISHMENT.—There is established in 

24 the Treasury of the United States a fund which 

25 shall be known as the ‘Emergency Contingency 


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1 Fund for State Temporary Assistance for Needy 

2 Families Programs’ (in this subsection referred to as 

3 the ‘Emergency Fund’). 

4 ‘‘(2) DEPOSITS INTO FUND.— 

5 ‘‘(A) IN GENERAL.—Out of any money in 

6 the Treasury of the United States not otherwise 

7 appropriated, there are appropriated 

8 $5,000,000 for each of fiscal years 2012 and 

9 2013, for payment to the Emergency Fund. 

10 ‘‘(B) AVAILABILITY AND USE OF FUNDS.— 

11 The amounts appropriated to the Emergency 

12 Fund under subparagraph (A) for fiscal year 

13 2012 shall be available for the 1st 12 months 

14 of the program period, and the amounts so ap15 propriated for fiscal year 2013 shall be avail16 able for the 2nd 12 months of the program pe17 riod, and all such amounts shall be used to 

18 make grants to States in accordance with para19 graph (3). 

20 ‘‘(C) LIMITATION.—In no case may the 

21 Secretary make a grant from the Emergency 

22 Fund for a fiscal year after the end of the pro23 gram period. 

24 ‘‘(D) PROGRAM PERIOD DEFINED.—In this 

25 subsection, the term ‘program period’ means 


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1 the 2-year period that begins with the 1st day 

2 of the 1st calendar quarter that begins after the 

3 effective date of this subsection. 

4 ‘‘(3) GRANTS.— 

5 ‘‘(A) IN GENERAL.—For each calendar 

6 quarter in the program period, the Secretary 

7 shall make a grant from the Emergency Fund 

8 to each State that— 

9 ‘‘(i) requests a grant under this sub10 paragraph for the quarter; and 

11 ‘‘(ii) meets the requirement of clause 

12 (ii) for the quarter. 

13 ‘‘(B) REQUIREMENT.—A State meets the 

14 requirement of this clause for a quarter if the 

15 unemployment rate of the State (as determined 

16 by the Secretary of Commerce in consultation 

17 with the Secretary of Labor) was not less than 

18 6 percent for each month in the most recent 6- 

19 month period for which such information is 

20 available. 

21 ‘‘(C) AMOUNT OF GRANT.—The amount of 

22 the grant to be made to a State under this sub23 paragraph for a quarter shall be an amount 

24 equal to 75 percent of the State family assist25 ance grant. 


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1 ‘‘(4) LIMITATIONS ON USE OF FUNDS.—A State 

2 to which an amount is paid under this subsection 

3 may use the amount only as authorized by section 

4 404. 

5 ‘‘(5) TIMING OF IMPLEMENTATION.—The Sec6 retary shall implement this subsection as quickly as 

7 reasonably possible, pursuant to appropriate guid8 ance to States. 

9 ‘‘(6) APPLICATION TO INDIAN TRIBES.—This 

10 subsection shall apply to an Indian tribe with an ap11 proved tribal family assistance plan under section 

12 412 in the same manner as this subsection applies 

13 to a State.’’. 

14 (b) DISREGARD FROM LIMITATION ON TOTAL PAY15 MENTS TO TERRITORIES.—Section 1108(a)(2) of such Act 

16 (42 U.S.C. 1308(a)(2)) is amended by inserting 

17 ‘‘403(c)(3),’’ after ‘‘403(a)(5),’’. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall take effect 90 days after the date of the 

20 enactment of this subtitle. 


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1 Subtitle N—Discretionary 

2 Spending Limits 

3 SEC. 1981. REPEAL OF NEW DISCRETIONARY SPENDING 

4 LIMITS. 

5 (a) IN GENERAL.—Section 251A of the Balanced 

6 Budget and Emergency Deficit Control Act of 1985 (2 

7 U.S.C. 901a) is hereby repealed. 

8 (b) CONFORMING AMENDMENT.—The Balanced 

9 Budget and Emergency Deficit Control Act of 1985 is 

10 amended— 

11 (1) in section 250(a), by amending the table of 

12 contents by striking the item relating to section 

13 251A; and 

14 (2) by amending section 251(c) to read as fol15 lows: 

16 ‘‘(c) DISCRETIONARY SPENDING LIMIT.—As used in 

17 this part, the term ‘discretionary spending limit’ means— 

18 ‘‘(1) with respect to fiscal year 2012— 

19 ‘‘(A) for the security category, 

20 $684,000,000,000 in new budget authority; and 

21 ‘‘(B) for the nonsecurity category, 

22 $359,000,000,000 in new budget authority; 

23 ‘‘(2) with respect to fiscal year 2013— 

24 ‘‘(A) for the security category, 

25 $686,000,000,000 in new budget authority; and 


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1 ‘‘(B) for the nonsecurity category, 

2 $361,000,000,000 in new budget authority; 

3 ‘‘(3) with respect to fiscal year 2014, for the 

4 discretionary category, $1,066,000,000,000 in new 

5 budget authority; 

6 ‘‘(4) with respect to fiscal year 2015, for the 

7 discretionary category, $1,086,000,000,000 in new 

8 budget authority; 

9 ‘‘(5) with respect to fiscal year 2016, for the 

10 discretionary category, $1,107,000,000,000 in new 

11 budget authority; 

12 ‘‘(6) with respect to fiscal year 2017, for the 

13 discretionary category, $1,131,000,000,000 in new 

14 budget authority; 

15 ‘‘(7) with respect to fiscal year 2018, for the 

16 discretionary category, $1,156,000,000,000 in new 

17 budget authority; 

18 ‘‘(8) with respect to fiscal year 2019, for the 

19 discretionary category, $1,182,000,000,000 in new 

20 budget authority; 

21 ‘‘(9) with respect to fiscal year 2020, for the 

22 discretionary category, $1,208,000,000,000 in new 

23 budget authority; and 


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1 ‘‘(10) with respect to fiscal year 2021, for the 

2 discretionary category, $1,234,000,000,000 in new 

3 budget authority; 

4 as adjusted in strict conformance with subsection (b).’’. 

5 Subtitle O—Emergency Job 

6 Creation Designation 

7 SEC. 1991. CONGRESSIONAL DESIGNATION. 

8 For purposes of section 251(b)(2) of the Balanced 

9 Budget and Emergency Deficit Control Act of 1985 (2 

10 U.S.C. 901(b)(2)), the Congress hereby designates all ap11 propriations made under this title, and amendments made 

12 by this title, as being for the purpose of emergency job 

13 creation. 

14 TITLE II—RESPONSIBLE 

15 SAVINGS AND FAIR TAXATION 

16 Subtitle A—Responsible End to the 

17 War in Afghanistan Act 

18 SEC. 2001. SHORT TITLE. 

19 This subtitle may be cited as the ‘‘Responsible End 

20 to the War in Afghanistan Act’’. 

21 SEC. 2002. STATEMENT OF POLICY. 

22 It is the policy of the United States to ensure that 

23 funds made available for operations of the Armed Forces 

24 in Afghanistan are to be used only for purposes of pro25 viding for the safe and orderly withdrawal from AfghaniVerDate Mar 15 2010 00:56 Dec 17, 2011 Jkt 019200 PO 00000 Frm 00190 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638

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1 stan of all members of the Armed Forces and Department 

2 of Defense contractor personnel who are in Afghanistan. 

3 SEC. 2003. LIMITATION ON USE OF FUNDS FOR OPER4 ATIONS OF THE ARMED FORCES IN AFGHANI5 STAN. 

6 (a) LIMITATION.—Funds appropriated or otherwise 

7 made available under any provision of law for operations 

8 of the Armed Forces in Afghanistan shall be obligated and 

9 expended only for purposes of providing for the safe and 

10 orderly withdrawal from Afghanistan of all members of 

11 the Armed Forces and Department of Defense contractor 

12 personnel who are in Afghanistan. 

13 (b) RULE OF CONSTRUCTION.—Nothing in this sub14 title shall be construed— 

15 (1) to authorize the use of funds for the con16 tinuation of combat operations in Afghanistan while 

17 carrying out the safe and orderly withdrawal from 

18 Afghanistan of all members of the Armed Forces 

19 and Department of Defense contractor personnel 

20 who are in Afghanistan; and 

21 (2) to prohibit or otherwise restrict the use of 

22 funds available to any department or agency of the 

23 United States to carry out diplomatic efforts or hu24 manitarian, development, or general reconstruction 

25 activities in Afghanistan. 


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1 Subtitle B—Defense and Deficit 

2 Reduction Act 

3 SEC. 2101. SHORT TITLE. 

4 This subtitle may be cited as the ‘‘Defense and Def5 icit Reduction Act’’. 

6 SEC. 2102. FINDINGS. 

7 Congress finds the following: 

8 (1) Under H. Res. 38, the Chair of the Com9 mittee on the Budget shall include in the Congres10 sional Record an allocation for the remainder of fis11 cal year 2011 that assumes nonsecurity spending at 

12 fiscal year 2008 levels. 

13 (2) Reductions in defense spending should be 

14 included in any effort to reduce Federal outlays and 

15 reduce the national deficit. 

16 (3) In fiscal year 2010, defense spending com17 prised 58 percent of discretionary spending. 

18 (4) If defense spending continued at fiscal year 

19 2010 levels for the next 5 years, it would total 

20 $3,600,000,000,000. 

21 (5) Reducing defense spending to fiscal year 

22 2008 levels would save approximately 

23 $182,000,000,000 over 5 years compared to current 

24 levels. 


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1 (6) In January 2011 Secretary of Defense 

2 Gates stated that the Administration is seeking 

3 $78,000,000,000 in cuts to the defense budget over 

4 the next five years on top of $100,000,000,000 in 

5 efficiencies. This savings should be used to decrease 

6 the deficit. 

7 (7) President Obama has pledged to begin 

8 drawing down forces in Afghanistan in July 2011 

9 with a goal of full withdrawal in 2014. With a de10 crease in troops abroad, our defense spending should 

11 decrease. 

12 (8) In a CBS News Poll from January 2011, 

13 over 50 percent of Americans questioned would re14 duce defense spending to decrease the Federal def15 icit. 

16 (9) The United States currently spends more 

17 on its military and defense than the next 19 biggest 

18 spending nations combined. 

19 (10) Making reasonable reductions to the de20 fense budget can help to solve the Nation’s long21 term fiscal problems. 

22 SEC. 2103. REDUCTION AND FREEZE IN BUDGET OF DE23 PARTMENT OF DEFENSE. 

24 (a) REDUCTION AND FREEZE.—The aggregate 

25 amount of funds appropriated or otherwise made available 


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1 for military functions administered by the Department of 

2 Defense (other than the functions excluded by subsection 

3 (b)) for a fiscal year may not exceed— 

4 (1) in the case of fiscal year 2011, the aggre5 gate amount of funds appropriated or otherwise 

6 made available for military functions administered 

7 by the Department of Defense (other than the func8 tions excluded by subsection (b)) for fiscal year 

9 2008; and 

10 (2) in the case of fiscal years 2012 through 

11 2016, the aggregate amount of funds appropriated 

12 or otherwise made available for such functions for 

13 the previous fiscal year. 

14 (b) EXCLUSION OF MILITARY PERSONNEL PAY AND

15 BENEFITS.—In determining the aggregate amount of 

16 funds appropriated or otherwise made available for mili17 tary functions administered by the Department of Defense 

18 for fiscal year 2008 or any subsequent fiscal year for pur19 poses of subsection (a), there shall be excluded all amounts 

20 appropriated or otherwise made available in general and 

21 supplemental appropriations Acts for— 

22 (1) military personnel, reserve personnel, and 

23 National Guard personnel accounts of the Depart24 ment of Defense, generally title I of the annual De25 partment of Defense appropriations Act; 


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1 (2) the Defense Health Program; and 

2 (3) drug interdiction and counter-drug activities 

3 of the Department of Defense, but only to the extent 

4 the amounts were transferred to personnel accounts 

5 referred to in paragraph (1). 

6 (c) USE OF SAVINGS.—All funds saved by the imple7 mentation of this section shall be used for deficit reduc8 tion. 

9 Subtitle C—Reduction in Military 

10 End Strength Level in Europe 

11 SEC. 2201. REDUCTION IN END STRENGTH LEVEL OF MEM12 BERS OF THE UNITED STATES ARMED 

13 FORCES ASSIGNED TO PERMANENT DUTY IN 

14 EUROPE AND CORRESPONDING GENERAL 

15 END STRENGTH REDUCTIONS. 

16 (a) EUROPEAN END STRENGTH LEVEL.—Effective 

17 September 30, 2012, the end strength level of members 

18 of the Armed Forces of the United States assigned to per19 manent duty ashore in Europe may not exceed a perma20 nent ceiling of 30,000 in any fiscal year. 

21 (b) EXCLUSION OF CERTAIN MEMBERS.—For pur22 poses of this section, the following members of the Armed 

23 Forces are excluded in calculating the end strength level 

24 of members of the Armed Forces of the United States as25 signed to permanent duty ashore in Europe: 


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1 (1) Members assigned to permanent duty 

2 ashore in Iceland, Greenland, and the Azores. 

3 (2) Members performing duties in Europe for 

4 more than 179 days under a military-to-military 

5 contact program under section 168 of title 10, 

6 United States Code. 

7 (c) EXCEPTIONS; WAIVER.—This section shall not 

8 apply in the event of a declaration of war or an armed 

9 attack on any European member nation of the North At10 lantic Treaty Organization. The President may waive op11 eration of this section if the President declares an emer12 gency and immediately informs the Congress of the waiver 

13 band the reasons therefor. 

14 (d) REPEAL OF SUPERCEDED END STRENGTH LIMI15 TATION.—Section 1002 of the Department of Defense Au16 thorization Act, 1985 (22 U.S.C. 1928 note) is repealed. 

17 SEC. 2202. CONFORMING CHANGES TO ARMED FORCES END 

18 STRENGTH LEVELS. 

19 (a) END STRENGTHS FOR ACTIVE FORCES FOR FIS20 CAL YEAR 2012.—Notwithstanding section 401, the 

21 Armed Forces are authorized strengths for active duty 

22 personnel as of September 30, 2012, as follows: 

23 (1) The Army, 556,600. 

24 (2) The Navy, 325,239. 

25 (3) The Marine Corps, 202,000. 


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1 (4) The Air Force, 328,800. 

2 (b) CONTINUATION OF REDUCTIONS IN SUBSEQUENT

3 FISCAL YEARS.—For each of fiscal years 2013 through 

4 2016, the end strength numbers shall be reduced by an 

5 additional 10,000 a year, as follows: 

6 (1) 5,400 a year from the Army. 

7 (2) 4,000 a year from the Air Force. 

8 (3) 500 a year from the Navy. 

9 (4) 100 a year from the Marine Corps. 

10 (c) REVISION IN PERMANENT ACTIVE DUTY END

11 STRENGTH MINIMUM LEVELS.—Section 691(b) of title 

12 10, United States Code, as amended by section 402, is 

13 amended by striking paragraphs (1) through (4) and in14 serting the following new paragraphs: 

15 ‘‘(1) For the Army, 535,000. 

16 ‘‘(2) For the Navy, 323,239. 

17 ‘‘(3) For the Marine Corps, 201,600. 

18 ‘‘(4) For the Air Force, 312,800.’’. 

19 Subtitle D—V–22 Osprey Aircraft 

20 Program 

21 SEC. 2401. TERMINATION OF V–22 OSPREY AIRCRAFT PRO22 GRAM. 

23 Notwithstanding any other provision of law, none of 

24 the funds authorized to be appropriated or otherwise made 

25 available for fiscal year 2012 or any fiscal year thereafter 


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1 for the Department of Defense may be obligated or ex2 pended for the procurement of V–22 Osprey aircraft. 

3 Subtitle E—Fairness in Taxation 

4 SEC. 2501. INCREASED TAX RATES FOR TAXPAYERS WITH 

5 MORE THAN $1,000,000 TAXABLE INCOME. 

6 (a) IN GENERAL.— 

7 (1) MARRIED INDIVIDUALS FILING JOINT RE8 TURNS AND SURVIVING SPOUSES.—The table con9 tained in subsection (a) of section 1 of the Internal 

10 Revenue Code of 1986 is amended to read as fol11 lows: 

If taxable income is: The tax is: 

Not over $69,000 .......................... 15% of taxable income. 

Over $69,000 but not over 

$139,350.

$10,350, plus 28% of the excess over 

$69,000. 

Over $139,350 but not over 

$212,300.

$30,048, plus 31% of the excess over 

$139,350. 

Over $212,300 but not over 

$379,150.

$52,662.50, plus 36% of the excess 

over $212,300. 

Over $379,150 but not over 

$1,000,000.

$112,728.50, plus 39.6% of the excess over $379,150. 

Over $1,000,000 but not over 

$10,000,000.

$358,585.10, plus 45% of the excess 

over $1,000,000. 

Over $10,000,000 but not over 

$20,000,000.

$4,408,585.10, plus 46% of the excess over $10,000,000. 

Over $20,000,000 but not over 

$100,000,000.

$9,008,585.10, plus 47% of the excess over $20,000,000. 

Over $100,000,000 but not over 

$1,000,000,000.

$46,608,585.10, plus 48% of the excess over $100,000,000. 

Over $1,000,000,000 ..................... $478,608,585.10, plus 49% over the 

excess over $1,000,000,000. 

12 (2) HEADS OF HOUSEHOLD.—The table con13 tained in subsection (b) of section 1 of such Code is 

14 amended to read as follows: 

If taxable income is: The tax is: 

Not over $46,250 .......................... 15% of taxable income. 

Over $46,250 but not over 

$119,400.

$6,937.50, plus 28% of the excess 

over $46,250. 


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If taxable income is: The tax is: 

Over $119,400 but not over 

$193,350.

$27,419.50, plus 31% of the excess 

over $119,400. 

Over $193,350 but not over 

$379,150.

$50,344, plus 36% of the excess over 

$193,350. 

Over $379,150 but not over 

$1,000,000.

$117,232, plus 39.6% of the excess 

over $379,150. 

Over $1,000,000 but not over 

$10,000,000.

$363,088.60, plus 45% of the excess 

over $1,000,000. 

Over $10,000,000 but not over 

$20,000,000.

$4,413,088.60, plus 46% of the excess over $10,000,000. 

Over $20,000,000 but not over 

$100,000,000.

$9,013,088.60, plus 47% of the excess over $20,000,000. 

Over $100,000,000 but not over 

$1,000,000,000.

$46,613,088.60, plus 48% of the excess over $100,000,000. 

Over $1,000,000,000 ..................... $478,613,088.60, plus 49% of the excess over $1,000,000,000. 

1 (3) UNMARRIED INDIVIDUALS (OTHER THAN

2 SURVIVING SPOUSES AND HEADS OF HOUSE3 HOLDS).—The table contained in subsection (c) of 

4 section 1 of such Code is amended to read as fol5 lows: 

If taxable income is: The tax is: 

Not over $34,500 .......................... 15% of taxable income. 

Over $34,500 but not over 

$83,600.

$5,175, plus 28% of the excess over 

$34,500. 

Over $83,600 but not over 

$174,400.

$18,923, plus 31% of the excess over 

$83,600. 

Over $174,400 but not over 

$379,150.

$47,071, plus 36% of the excess over 

$174,400. 

Over $379,150 but not over 

$1,000,000.

$120,781, plus 39.6% of the excess 

over $379,150. 

Over $1,000,000 but not over 

$10,000,000.

$366,637.60, plus 45% of the excess 

over $1,000,000. 

Over $10,000,000 but not over 

$20,000,000.

$4,416,637.60, plus 46% of the excess over $10,000,000. 

Over $20,000,000 but not over 

$100,000,000.

$9,016,637.60, plus 47% of the excess over $20,000,000. 

Over $100,000,000 but not over 

$1,000,000,000.

$46,616,637.60, plus 48% of the excess over $100,000,000. 

Over $1,000,000,000 ..................... $478,616,637.60, plus 49% of the excess over $1,000,000,000. 

6 (4) MARRIED INDIVIDUALS FILING SEPARATE

7 RETURNS.—The table contained in subsection (d) of 


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1 section 1 of such Code is amended to read as fol2 lows: 

If taxable income is: The tax is: 

Not over $34,500 .......................... plus 15% of taxable income. 

Over $34,500 but not over 

$69,675.

$5,175, plus 28% of the excess over 

$34,500. 

Over $69,675 but not over 

$106,150.

$15,024, plus 31% of the excess over 

$69,675. 

Over $106,150 but not over 

$189,575.

$26,331.25, plus 35% of the excess 

over $106,150. 

Over $189,575 but not over 

$500,000.

$55,530, plus 39.6% of the excess 

over $189,575. 

Over $500,000 but not over 

$5,000,000.

$178,458.30, plus 45% of the excess 

over $500,000. 

Over $5,000,000 but not over 

$10,000,000.

$2,203,458.30, plus 46% of the excess over $5,000,000. 

Over $10,000,000 but not over 

$50,000,000.

$4,503,458.30, plus 47% of the excess over $10,000,000. 

Over $50,000,000 but not over 

$500,000,000.

$23,303,458.30, plus 48% of the excess over $50,000,000. 

Over $500,000,000 ........................ $239,303,458.30, plus 49% of the excess over $500,000,000. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 December 31, 2011. 

6 SEC. 2502. RECAPTURE OF LOWER CAPITAL GAINS RATES 

7 FOR INDIVIDUALS SUBJECT TO ADDED RATE 

8 BRACKETS. 

9 (a) IN GENERAL.—Section 1 of the Internal Revenue 

10 Code of 1986 is amended by adding at the end the fol11 lowing new subsection: 

12 ‘‘(j) SPECIAL RULE FOR CAPITAL GAINS IN CASE OF

13 TAXABLE INCOME SUBJECT TO AT LEAST 45-PERCENT

14 RATE BRACKET.—If for the taxable year a taxpayer has 

15 taxable income in excess of the minimum dollar amount 


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1 for the 45-percent rate bracket and has a net capital gain, 

2 then— 

3 ‘‘(1) the tax imposed by this section for the tax4 able year with respect to such excess shall be deter5 mined without regard to subsection (h), and 

6 ‘‘(2) the amount of net capital gain of the tax7 payer taken into account for the taxable year under 

8 subsection (h) shall be reduced by the lesser of— 

9 ‘‘(A) such excess, or 

10 ‘‘(B) the net capital gain for the taxable 

11 year. 

12 Any reduction in net capital gain under the pre13 ceding sentence shall be allocated between adjusted 

14 net capital gain, unrecaptured 1250 gain, and sec15 tion 1202 gain in amounts proportionate to the 

16 amounts of each such gain.’’. 

17 (b) CONFORMING AMENDMENT.—Paragraph (1) of 

18 section 1(h) of such Code is amended by striking ‘‘If a 

19 taxpayer has’’ and inserting ‘‘Except to the extent pro20 vided in subsection (j), if a taxpayer has’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 December 31, 2011. 


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1 Subtitle F—End Big Oil Tax 

2 Subsidies Act of 2011 

3 SEC. 2601. SHORT TITLE. 

4 This subtitle may be cited as the ‘‘End Big Oil Tax 

5 Subsidies Act of 2011’’. 

6 SEC. 2602. AMORTIZATION OF GEOLOGICAL AND GEO7 PHYSICAL EXPENDITURES. 

8 (a) IN GENERAL.—Subparagraph (A) of section 

9 167(h)(5) of the Internal Revenue Code of 1986 is amend10 ed by striking ‘‘major integrated oil company’’ and insert11 ing ‘‘covered large oil company’’. 

12 (b) COVERED LARGE OIL COMPANY.—Paragraph (5) 

13 of section 167(h) of such Code is amended by redesig14 nating subparagraph (B) as subparagraph (C) and by in15 serting after subparagraph (A) the following new subpara16 graph: 

17 ‘‘(B) COVERED LARGE OIL COMPANY.— 

18 For purposes of this paragraph, the term ‘cov19 ered large oil company’ means a taxpayer 

20 which— 

21 ‘‘(i) is a major integrated oil com22 pany, or 

23 ‘‘(ii) has gross receipts in excess of 

24 $50,000,000 for the taxable year. 


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1 For purposes of clause (ii), all persons treated 

2 as a single employer under subsections (a) and 

3 (b) of section 52 shall be treated as 1 person.’’. 

4 (c) CONFORMING AMENDMENT.—The heading for 

5 paragraph (5) of section 167(h) of such Code is amended 

6 by inserting ‘‘AND OTHER LARGE TAXPAYERS’’. 

7 (d) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to amounts paid or incurred in tax9 able years beginning after December 31, 2011. 

10 SEC. 2603. PRODUCING OIL AND GAS FROM MARGINAL 

11 WELLS. 

12 (a) IN GENERAL.—Section 45I of the Internal Rev13 enue Code of 1986 is amended by adding at the end the 

14 following new subsection: 

15 ‘‘(e) EXCEPTION FOR TAXPAYER WHO IS NOT

16 SMALL, INDEPENDENT OIL AND GAS COMPANY.— 

17 ‘‘(1) IN GENERAL.—Subsection (a) shall not 

18 apply to any taxpayer which is not a small, inde19 pendent oil and gas company for the taxable year. 

20 ‘‘(2) AGGREGATION RULE.—For purposes of 

21 paragraph (1), all persons treated as a single em22 ployer under subsections (a) and (b) of section 52 

23 shall be treated as 1 person.’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 subsection (a) shall apply to credits determined for taxable 

3 years beginning after December 31, 2011. 

4 SEC. 2604. ENHANCED OIL RECOVERY CREDIT. 

5 (a) IN GENERAL.—Section 43 of the Internal Rev6 enue Code of 1986 is amended by adding at the end the 

7 following new subsection: 

8 ‘‘(f) EXCEPTION FOR TAXPAYER WHO IS NOT

9 SMALL, INDEPENDENT OIL AND GAS COMPANY.— 

10 ‘‘(1) IN GENERAL.—Subsection (a) shall not 

11 apply to any taxpayer which is not a small, inde12 pendent oil and gas company for the taxable year. 

13 ‘‘(2) AGGREGATION RULE.—For purposes of 

14 paragraph (1), all persons treated as a single em15 ployer under subsections (a) and (b) of section 52 

16 shall be treated as 1 person.’’. 

17 (b) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to amounts paid or incurred in tax19 able years beginning after December 31, 2011. 

20 SEC. 2605. INTANGIBLE DRILLING AND DEVELOPMENT 

21 COSTS IN THE CASE OF OIL AND GAS WELLS. 

22 (a) IN GENERAL.—Subsection (c) of section 263 of 

23 the Internal Revenue Code of 1986 is amended by adding 

24 at the end the following new sentence: ‘‘This subsection 

25 shall not apply to amounts paid or incurred by a taxpayer 


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1 in any taxable year in which such taxpayer is not a small, 

2 independent oil and gas company, determined by deeming 

3 all persons treated as a single employer under subsections 

4 (a) and (b) of section 52 as 1 person.’’. 

5 (b) EFFECTIVE DATE.—The amendment made by 

6 this section shall apply to amounts paid or incurred in tax7 able years beginning after December 31, 2011. 

8 SEC. 2606. PERCENTAGE DEPLETION. 

9 (a) IN GENERAL.—Section 613A of the Internal Rev10 enue Code of 1986 is amended by adding at the end the 

11 following new subsection: 

12 ‘‘(f) EXCEPTION FOR TAXPAYER WHO IS NOT

13 SMALL, INDEPENDENT OIL AND GAS COMPANY.— 

14 ‘‘(1) IN GENERAL.—This section and section 

15 611 shall not apply to any taxpayer which is not a 

16 small, independent oil and gas company for the tax17 able year. 

18 ‘‘(2) AGGREGATION RULE.—For purposes of 

19 paragraph (1), all persons treated as a single em20 ployer under subsections (a) and (b) of section 52 

21 shall be treated as 1 person.’’. 

22 (b) CONFORMING AMENDMENT.—Section 613A(c)(1) 

23 of such Code is amended by striking ‘‘subsection (d)’’ and 

24 inserting ‘‘subsections (d) and (f)’’. 


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1 (c) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2011. 

4 SEC. 2607. TERTIARY INJECTANTS. 

5 (a) IN GENERAL.—Section 193 of the Internal Rev6 enue Code of 1986 is amended by adding at the end the 

7 following new subsection: 

8 ‘‘(d) EXCEPTION FOR TAXPAYER WHO IS NOT

9 SMALL, INDEPENDENT OIL AND GAS COMPANY.— 

10 ‘‘(1) IN GENERAL.—Subsection (a) shall not 

11 apply to any taxpayer which is not a small, inde12 pendent oil and gas company for the taxable year. 

13 ‘‘(2) EXCEPTION FOR QUALIFIED CARBON DI14 OXIDE DISPOSED IN SECURE GEOLOGICAL STOR15 AGE.—Paragraph (1) shall not apply in the case of 

16 any qualified tertiary injectant expense paid or in17 curred for any tertiary injectant is qualified carbon 

18 dioxide (as defined in section 45Q(b)) which is dis19 posed of by the taxpayer in secure geological storage 

20 (as defined by section 45Q(d)). 

21 ‘‘(3) AGGREGATION RULE.—For purposes of 

22 paragraph (1), all persons treated as a single em23 ployer under subsections (a) and (b) of section 52 

24 shall be treated as 1 person.’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to expenses incurred after Decem3 ber 31, 2011. 

4 SEC. 2608. PASSIVE ACTIVITY LOSSES AND CREDITS LIM5 ITED. 

6 (a) IN GENERAL.—Paragraph (3) of section 469(c) 

7 of the Internal Revenue Code of 1986 is amended by add8 ing at the end the following: 

9 ‘‘(C) EXCEPTION FOR TAXPAYER WHO IS

10 NOT SMALL, INDEPENDENT OIL AND GAS COM11 PANY.— 

12 ‘‘(i) IN GENERAL.—Subparagraph (A) 

13 shall not apply to any taxpayer which is 

14 not a small, independent oil and gas com15 pany for the taxable year. 

16 ‘‘(ii) AGGREGATION RULE.—For pur17 poses of clause (i), all persons treated as 

18 a single employer under subsections (a) 

19 and (b) of section 52 shall be treated as 1 

20 person.’’. 

21 SEC. 2609. INCOME ATTRIBUTABLE TO DOMESTIC PRODUC22 TION ACTIVITIES. 

23 (a) IN GENERAL.—Section 199 of the Internal Rev24 enue Code of 1986 is amended by adding at the end the 

25 following new subsection: 


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1 ‘‘(e) EXCEPTION FOR TAXPAYER WHO IS NOT

2 SMALL, INDEPENDENT OIL AND GAS COMPANY.—Sub3 section (a) shall not apply to the income derived from the 

4 production, transportation, or distribution of oil, natural 

5 gas, or any primary product (within the meaning of sub6 section (d)(9)) thereof by any taxpayer which for the tax7 able year is an oil and gas company which is not a small, 

8 independent oil and gas company.’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 this section shall apply to taxable years beginning after 

11 December 31, 2011. 

12 SEC. 2610. PROHIBITION ON USING LAST-IN, FIRST-OUT AC13 COUNTING FOR MAJOR INTEGRATED OIL 

14 COMPANIES. 

15 (a) IN GENERAL.—Section 472 of the Internal Rev16 enue Code of 1986 is amended by adding at the end the 

17 following new subsection: 

18 ‘‘(h) MAJOR INTEGRATED OIL COMPANIES.—Not19 withstanding any other provision of this section, a major 

20 integrated oil company (as defined in section 167(h)) may 

21 not use the method provided in subsection (b) in 

22 inventorying of any goods.’’. 

23 (b) EFFECTIVE DATE AND SPECIAL RULE.— 


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1 (1) IN GENERAL.—The amendment made by 

2 subsection (a) shall apply to taxable years beginning 

3 after December 31, 2011. 

4 (2) CHANGE IN METHOD OF ACCOUNTING.—In 

5 the case of any taxpayer required by the amendment 

6 made by this section to change its method of ac7 counting for its first taxable year beginning after the 

8 date of the enactment of this subtitle— 

9 (A) such change shall be treated as initi10 ated by the taxpayer, 

11 (B) such change shall be treated as made 

12 with the consent of the Secretary of the Treas13 ury, and 

14 (C) the net amount of the adjustments re15 quired to be taken into account by the taxpayer 

16 under section 481 of the Internal Revenue Code 

17 of 1986 shall be taken into account ratably over 

18 a period (not greater than 8 taxable years) be19 ginning with such first taxable year. 

20 SEC. 2611. MODIFICATIONS OF FOREIGN TAX CREDIT 

21 RULES APPLICABLE TO DUAL CAPACITY TAX22 PAYERS. 

23 (a) IN GENERAL.—Section 901 of the Internal Rev24 enue Code of 1986 is amended by redesignating subsection 


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1 (n) as subsection (o) and by inserting after subsection (m) 

2 the following new subsection: 

3 ‘‘(n) SPECIAL RULES RELATING TO DUAL CAPACITY

4 TAXPAYERS.— 

5 ‘‘(1) GENERAL RULE.—Notwithstanding any 

6 other provision of this chapter, any amount paid or 

7 accrued by a dual capacity taxpayer to a foreign 

8 country or possession of the United States for any 

9 period with respect to combined foreign oil and gas 

10 income (as defined in section 907(b)(1)) shall not be 

11 considered a tax to the extent such amount exceeds 

12 the amount (determined in accordance with regula13 tions) which would have been required to be paid if 

14 the taxpayer were not a dual capacity taxpayer. 

15 ‘‘(2) DUAL CAPACITY TAXPAYER.—For pur16 poses of this subsection, the term ‘dual capacity tax17 payer’ means, with respect to any foreign country or 

18 possession of the United States, a person who— 

19 ‘‘(A) is subject to a levy of such country or 

20 possession, and 

21 ‘‘(B) receives (or will receive) directly or 

22 indirectly a specific economic benefit (as deter23 mined in accordance with regulations) from 

24 such country or possession.’’. 

25 (b) EFFECTIVE DATE.— 


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1 (1) IN GENERAL.—The amendments made by 

2 this section shall apply to taxes paid or accrued in 

3 taxable years beginning after December 31, 2011. 

4 (2) CONTRARY TREATY OBLIGATIONS

5 UPHELD.—The amendments made by this section 

6 shall not apply to the extent contrary to any treaty 

7 obligation of the United States. 

8 Subtitle G—Superfund 

9 Reinvestment Act 

10 SEC. 2701. SHORT TITLE. 

11 This subtitle may be cited as the ‘‘Superfund Rein12 vestment Act’’. 

13 SEC. 2702. USE OF HAZARDOUS SUBSTANCE SUPERFUND 

14 FOR CLEANUP. 

15 (a) AVAILABILITY OF AMOUNTS.—Section 111 of the 

16 Comprehensive Environmental Response, Compensation, 

17 and Liability Act of 1980 (42 U.S.C. 9611) is amended— 

18 (1) in subsection (a) by striking ‘‘For the pur19 poses specified’’ and all that follows through ‘‘for 

20 the following purposes:’’ and inserting the following: 

21 ‘‘The amount in the Hazardous Substance Super22 fund established under section 9507 of the Internal 

23 Revenue Code of 1986 shall be available, without 

24 further appropriation, to be used for the purposes 


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1 specified in this section. The President shall use 

2 such amount for the following purposes:’’; and 

3 (2) in subsection (c)— 

4 (A) by striking ‘‘Subject to such amounts 

5 as are provided in appropriations Acts, the’’ 

6 each place it appears and inserting ‘‘The’’; and 

7 (B) in paragraph (12) by striking ‘‘to the 

8 extent that such costs’’ and all that follows 

9 through ‘‘and 1994’’. 

10 (b) AMENDMENT TO THE INTERNAL REVENUE

11 CODE.—Section 9507 of the Internal Revenue Code of 

12 1986 is amended— 

13 (1) by striking ‘‘appropriated to’’ in subsection 

14 (a)(1) and inserting ‘‘made available for’’, 

15 (2) by striking ‘‘appropriated’’ in subsection (b) 

16 and inserting ‘‘transferred’’, 

17 (3) by striking ‘‘, as provided in appropriations 

18 Acts,’’ in subsection (c)(1), and 

19 (4) by striking ‘‘1995’’ in subsection (d)(3)(B) 

20 and inserting ‘‘2021’’. 

21 SEC. 2703. BUDGETARY TREATMENT OF HAZARDOUS SUB22 STANCE SUPERFUND. 

23 Notwithstanding any other provision of law, the re24 ceipts and disbursements of the Hazardous Substance 


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1 Superfund established in section 9507 of the Internal Rev2 enue Code of 1986— 

3 (1) shall not be counted as new budget author4 ity, outlays, receipts, or deficit or surplus for pur5 poses of— 

6 (A) the budget of the United States Gov7 ernment as submitted by the President; 

8 (B) the congressional budget (including al9 locations of budget authority and outlays pro10 vided therein); 

11 (C) the Balanced Budget and Emergency 

12 Deficit Control Act of 1985; or 

13 (D) the Statutory Pay-As-You-Go Act of 

14 2010; 

15 (2) shall be exempt from any general budget 

16 limitation imposed by statute on expenditures and 

17 net lending (budget outlays) of the United States 

18 Government; and 

19 (3) shall be available only for the purposes 

20 specified in section 111 of the Comprehensive Envi21 ronmental Response, Compensation, and Liability 

22 Act of 1980 (42 U.S.C. 9611). 


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1 SEC. 2704. EXTENSION OF SUPERFUND TAXES. 

2 (a) EXCISE TAXES.—Subsection (e) of section 4611 

3 of the Internal Revenue Code of 1986 is amended to read 

4 as follows: 

5 ‘‘(e) APPLICATION OF HAZARDOUS SUBSTANCE

6 SUPERFUND FINANCING RATE.—The Hazardous Sub7 stance Superfund financing rate under this section shall 

8 apply after December 31, 1986, and before January 1, 

9 1996, and after the date of the enactment of the Super10 fund Reinvestment Act and before January 1, 2019.’’. 

11 (b) CORPORATE ENVIRONMENTAL INCOME TAX.— 

12 Subsection (e) of section 59A of such Code is amended 

13 to read as follows: 

14 ‘‘(e) APPLICATION OF TAX.—The tax imposed by this 

15 section shall apply to taxable years beginning after De16 cember 31, 1986, and before January 1, 1996, and to tax17 able years beginning after the date of the enactment of 

18 the Superfund Reinvestment Act and before January 1, 

19 2019.’’. 

20 (c) TECHNICAL AMENDMENTS.— 

21 (1) Subsection (b) of section 4611 of such Code 

22 is amended— 

23 (A) by striking ‘‘or exported from’’ in 

24 paragraph (1)(A), 

25 (B) by striking ‘‘or exportation’’ in para26 graph (1)(B), and 


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1 (C) by striking ‘‘AND EXPORTATION’’ in 

2 the heading thereof. 

3 (2) Paragraph (3) of section 4611(d) of such 

4 Code is amended— 

5 (A) by striking ‘‘or exporting the crude oil, 

6 as the case may be’’ and inserting ‘‘the crude 

7 oil’’, and 

8 (B) by striking ‘‘OR EXPORTS’’ in the 

9 heading thereof. 

10 SEC. 2705. APPLICABILITY. 

11 (a) IN GENERAL.—Except as provided in subsections 

12 (b) and (c), this subtitle (including the amendments made 

13 by this subtitle) shall apply to fiscal years beginning after 

14 September 30, 2011. 

15 (b) EXCISE TAXES.—The amendments made by sec16 tions 2704(a) and 2704(c) shall take effect on the date 

17 of the enactment of this subtitle. 

18 (c) INCOME TAX.—The amendment made by section 

19 2704(b) shall apply to taxable years beginning after the 

20 date of the enactment of this subtitle. 

21 Subtitle H—Wall Street Trading 

22 and Speculators Tax Act 

23 SEC. 2801. SHORT TITLE. 

24 This subtitle may be cited as the ‘‘Wall Street Trad25 ing and Speculators Tax Act’’. 


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1 SEC. 2802. TRANSACTION TAX. 

2 (a) IN GENERAL.—Chapter 36 of the Internal Rev3 enue Code of 1986 is amended by inserting after sub4 chapter B the following new subchapter: 

5 ‘‘Subchapter C—Tax on Trading Transactions 

‘‘Sec. 4475. Tax on trading transactions. 

6 ‘‘SEC. 4475. TAX ON TRADING TRANSACTIONS. 

7 ‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 

8 a tax on each covered transaction with respect to any secu9 rity. 

10 ‘‘(b) RATE OF TAX.—The tax imposed under sub11 section (a) with respect to any covered transaction shall 

12 be 0.03 percent of the specified base amount with respect 

13 to such covered transaction. 

14 ‘‘(c) SPECIFIED BASE AMOUNT.—For purposes of 

15 this section, the term ‘specified base amount’ means— 

16 ‘‘(1) except as provided in paragraph (2), the 

17 fair market value of the security (determined as of 

18 the time of the covered transaction), and 

19 ‘‘(2) in the case of any payment described in 

20 subsection (h), the amount of such payment. 

21 ‘‘(d) COVERED TRANSACTION.—For purposes of this 

22 section, the term ‘covered transaction’ means— 

23 ‘‘(1) except as provided in paragraph (2), any 

24 purchase if— 


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1 ‘‘(A) such purchase occurs or is cleared on 

2 a facility located in the United States, or 

3 ‘‘(B) the purchaser or seller is a United 

4 States person, and 

5 ‘‘(2) any transaction with respect to a security 

6 described in subparagraph (D), (E), or (F) of sub7 section (e)(1), if— 

8 ‘‘(A) such security is traded or cleared on 

9 a facility located in the United States, or 

10 ‘‘(B) any party with rights under such se11 curity is a United States person. 

12 ‘‘(e) SECURITY AND OTHER DEFINITIONS.—For pur13 poses of this section— 

14 ‘‘(1) IN GENERAL.—The term ‘security’ 

15 means— 

16 ‘‘(A) any share of stock in a corporation, 

17 ‘‘(B) any partnership or beneficial owner18 ship interest in a partnership or trust, 

19 ‘‘(C) any note, bond, debenture, or other 

20 evidence of indebtedness, 

21 ‘‘(D) any evidence of an interest in, or a 

22 derivative financial instrument with respect to, 

23 any security or securities described in subpara24 graph (A), (B), or (C), 


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1 ‘‘(E) any derivative financial instrument 

2 with respect to any currency or commodity, and 

3 ‘‘(F) any other derivative financial instru4 ment any payment with respect to which is cal5 culated by reference to any specified index. 

6 ‘‘(2) DERIVATIVE FINANCIAL INSTRUMENT.— 

7 The term ‘derivative financial instrument’ includes 

8 any option, forward contract, futures contract, no9 tional principal contract, or any similar financial in10 strument. 

11 ‘‘(3) SPECIFIED INDEX.—The term ‘specified 

12 index’ means any 1 or more of any combination of— 

13 ‘‘(A) a fixed rate, price, or amount, or 

14 ‘‘(B) a variable rate, price, or amount,

15 which is based on any current objectively deter16 minable information which is not within the control 

17 of any of the parties to the contract or instrument 

18 and is not unique to any of the parties’ cir19 cumstances. 

20 ‘‘(4) TREATMENT OF EXCHANGES.— 

21 ‘‘(A) IN GENERAL.—An exchange shall be 

22 treated as the sale of the property transferred 

23 and a purchase of the property received by each 

24 party to the exchange. 


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1 ‘‘(B) CERTAIN DEEMED EXCHANGES.—In 

2 the case of a distribution treated as an ex3 change for stock under section 302 or 331, the 

4 corporation making such distribution shall be 

5 treated as having purchased such stock for pur6 poses of this section. 

7 ‘‘(f) EXCEPTIONS.— 

8 ‘‘(1) EXCEPTION FOR INITIAL ISSUES.—No tax 

9 shall be imposed under subsection (a) on any cov10 ered transaction with respect to the initial issuance 

11 of any security described in subparagraph (A), (B), 

12 or (C) of subsection (e)(1). 

13 ‘‘(2) EXCEPTION FOR CERTAIN TRADED SHORT14 TERM INDEBTEDNESS.—A note, bond, debenture, or 

15 other evidence of indebtedness which— 

16 ‘‘(A) is traded on a trading facility located 

17 in the United States, and 

18 ‘‘(B) has a fixed maturity of not more 

19 than 100 days, 

20 shall not be treated as described in subsection 

21 (e)(1)(C). 

22 ‘‘(3) EXCEPTION FOR SECURITIES LENDING AR23 RANGEMENTS.—No tax shall be imposed under sub24 section (a) on any covered transaction with respect 


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1 to which gain or loss is not recognized by reason of 

2 section 1058. 

3 ‘‘(g) BY WHOM PAID.— 

4 ‘‘(1) IN GENERAL.—The tax imposed by this 

5 section shall be paid by— 

6 ‘‘(A) in the case of a transaction which oc7 curs or is cleared on a facility located in the 

8 United States, such facility, and 

9 ‘‘(B) in the case of a purchase not de10 scribed in subparagraph (A) which is executed 

11 by a broker (as defined in section 6045(c)(1)) 

12 which is a United States person, such broker. 

13 ‘‘(2) SPECIAL RULES FOR DIRECT, ETC., 

14 TRANSACTIONS.—In the case of any transaction to 

15 which paragraph (1) does not apply, the tax imposed 

16 by this section shall be paid by— 

17 ‘‘(A) in the case of a transaction described 

18 in subsection (d)(1)— 

19 ‘‘(i) the purchaser if the purchaser is 

20 a United States person, and 

21 ‘‘(ii) the seller if the purchaser is not 

22 a United States person, and 

23 ‘‘(B) in the case of a transaction described 

24 in subsection (d)(2)— 


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1 ‘‘(i) the payor if the payor is a United 

2 States person, and 

3 ‘‘(ii) the payee if the payor is not a 

4 United States person. 

5 ‘‘(h) CERTAIN PAYMENTS TREATED AS SEPARATE

6 TRANSACTIONS.—Except as otherwise provided by the 

7 Secretary, any payment with respect to a security de8 scribed in subparagraph (D), (E), or (F) of subsection 

9 (e)(1) shall be treated as a separate transaction for pur10 poses of this section, including— 

11 ‘‘(1) any net initial payment, net final or termi12 nating payment, or net periodical payment with re13 spect to a notional principal contract (or similar fi14 nancial instrument), 

15 ‘‘(2) any payment with respect to any forward 

16 contract (or similar financial instrument), and 

17 ‘‘(3) any premium paid with respect to any op18 tion (or similar financial instrument). 

19 ‘‘(i) ADMINISTRATION.—The Secretary shall carry 

20 out this section in consultation with the Securities and Ex21 change Commission and the Commodity Futures Trading 

22 Commission. 

23 ‘‘(j) GUIDANCE; REGULATIONS.—The Secretary 

24 shall— 


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1 ‘‘(1) provide guidance regarding such informa2 tion reporting concerning covered transactions as the 

3 Secretary deems appropriate, and 

4 ‘‘(2) prescribe such regulations as are necessary 

5 or appropriate to prevent avoidance of the purposes 

6 of this section, including the use of non-United 

7 States persons in such transactions.’’. 

8 (b) CLERICAL AMENDMENT.—The table of sub9 chapters for chapter 36 of the Internal Revenue Code of 

10 1986 is amended by inserting after the item relating to 

11 subchapter B the following new item: 

‘‘Subchapter C. Tax on trading transactions.’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to transactions after December 31, 

14 2012. 

15 Subtitle I—Making Work Pay Tax 

16 Credit 

17 SEC. 2901. TWO-YEAR EXTENSION OF MAKING WORK PAY 

18 CREDIT. 

19 (a) IN GENERAL.—Subsection (e) of section 36A of 

20 the Internal Revenue Code of 1986 is amended by striking 

21 ‘‘December 31, 2010’’ and inserting ‘‘December 31, 

22 2012’’. 

23 (b) TREATMENT OF POSSESSIONS.—Paragraph (1) 

24 of section 1001(b) of the American Recovery and Rein25 vestment Tax Act of 2009 is amended by striking ‘‘2009 


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1 and 2010’’ both places it appears and inserting ‘‘2009, 

2 2010, 2011, and 2012’’. 

3 (c) EFFECTIVE DATE.—The amendment made by 

4 this section shall apply to taxable years beginning after 

5 December 31, 2010. 

6 Subtitle J—Employee 

7 Misclassification Prevention Act 

8 SEC. 2951 SHORT TITLE. 

9 This subtitle may be cited as the ‘‘Employee 

10 Misclassification Prevention Act’’. 

11 SEC. 2952. CLASSIFICATION OF EMPLOYEES AND NON-EM12 PLOYEES. 

13 (a) RECORDKEEPING AND NOTICE REQUIRE14 MENTS.—Section 11(c) of the Fair Labor Standards Act 

15 of 1938 (29 U.S.C. 211(c)) is amended— 

16 (1) by striking ‘‘(c) Every employer subject to 

17 any provision of this Act or of any order issued 

18 under this Act’’ and inserting the following: 

19 ‘‘(c) RECORDKEEPING AND NOTICE REQUIRE20 MENTS.— 

21 ‘‘(1) IN GENERAL.—Every person subject to 

22 any provision of this Act or of any order issued 

23 under this Act’’; 

24 (2) by striking ‘‘of the persons employed by 

25 him’’ and inserting the following: ‘‘of— 


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1 ‘‘(A) each individual employed by such per2 son’’; 

3 (3) by striking ‘‘employment maintained by 

4 him, and shall’’ and inserting the following: ‘‘em5 ployment; 

6 ‘‘(B) subject to paragraph (2), each indi7 vidual— 

8 ‘‘(i) who is not an employee within the 

9 meaning given the term in section 3(e) (re10 ferred to in this subsection as a ‘non-em11 ployee’); 

12 ‘‘(ii) whom the person has engaged, in 

13 the course of the person’s trade or busi14 ness, for the performance of labor or serv15 ices; and 

16 ‘‘(iii)(I) with respect to whom the per17 son is required to file an information re18 turn under section 6041A(a) of the Inter19 nal Revenue Code of 1986; or 

20 ‘‘(II) who is providing labor or serv21 ices to the person through an entity that 

22 is a trust, estate, partnership, association, 

23 company, or corporation (as such terms 

24 are used in section 7701(a)(1) of the In25 ternal Revenue Code of 1986) if— 


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1 ‘‘(aa) such individual has an 

2 ownership interest in the entity; 

3 ‘‘(bb) creation or maintenance of 

4 such entity is a condition for the pro5 vision of such labor or services to the 

6 person; and 

7 ‘‘(cc) the person would be re8 quired to file an information return 

9 for the entity under section 6041A(a) 

10 of the Internal Revenue Code of 1986 

11 if the entity were an individual; and 

12 ‘‘(C) the remuneration and hours relating 

13 to the performance of labor or services by each 

14 individual described in subparagraph (B); and 

15 ‘‘(D) the notices required under paragraph 

16 (5), 

17 and shall’’; and 

18 (4) by adding at the end the following: 

19 ‘‘(2) RECORDKEEPING LIMITATION.—A person 

20 otherwise subject to the requirements of paragraph 

21 (1) shall have no responsibility for making, keeping, 

22 or preserving records, including the records de23 scribed in such paragraph and paragraph (4), con24 cerning the employees of any individual described in 

25 paragraph (1)(B) or the non-employees with whom 


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1 such individual has engaged for the performance of 

2 labor or services for such person, unless such 

3 records are provided during the course of the trade 

4 or business to the person. 

5 ‘‘(3) PRESUMPTION.— 

6 ‘‘(A) IN GENERAL.—For purposes of this 

7 Act and the regulations or orders issued under 

8 this Act, an individual who is employed, or who 

9 is remunerated for the performance of labor or 

10 services, by a person, shall be presumed to be 

11 an employee of the person if— 

12 ‘‘(i) the person has not made, kept, 

13 and preserved records in accordance with 

14 subparagraphs (B) and (C) of paragraph 

15 (1) regarding the individual; or 

16 ‘‘(ii) the person has not provided the 

17 individual with the notice required under 

18 paragraph (5). 

19 ‘‘(B) REBUTTAL.—The presumption under 

20 subparagraph (A) shall be rebutted only 

21 through the presentation of clear and con22 vincing evidence that an individual described in 

23 such subparagraph is not an employee (within 

24 the meaning of section 3(e)) of the person. 


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1 ‘‘(4) ACCURATE CLASSIFICATION.—An accurate 

2 classification of the status of each individual de3 scribed in paragraph (1) as either an employee 

4 (within the meaning of section 3(e)) of the person 

5 maintaining the records or a non-employee of such 

6 person shall be included within the records under 

7 this subsection. 

8 ‘‘(5) NOTICE.— 

9 ‘‘(A) IN GENERAL.—Every person subject 

10 to any provision of this Act or of any order 

11 issued under this Act shall provide the notice 

12 described in subparagraph (C) to each employee 

13 of the person and each individual classified by 

14 the person as a non-employee under paragraph 

15 (1)(B). 

16 ‘‘(B) TIMING OF NOTICE.— 

17 ‘‘(i) IN GENERAL.—Such notice shall 

18 be provided, at a minimum, not later than 

19 6 months after the date of enactment of 

20 the Employee Misclassification Prevention 

21 Act, and thereafter— 

22 ‘‘(I) for new employees, upon em23 ployment; and 

24 ‘‘(II) for new non-employees who 

25 are classified under paragraph (1)(B), 


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1 upon commencement of the labor or 

2 services described in such paragraph. 

3 ‘‘(ii) CHANGE IN STATUS.—Each per4 son required to provide notice under sub5 paragraph (A) to an individual shall also 

6 provide such notice to such individual upon 

7 changing such individual’s status as an 

8 employee or non-employee under paragraph 

9 (1). 

10 ‘‘(C) CONTENTS OF NOTICE.—The notice 

11 required under this paragraph shall be in writ12 ing and shall— 

13 ‘‘(i) inform the individual of the indi14 vidual’s classification, by the person sub15 mitting the notice, as an employee or a 

16 non-employee under paragraph (1); 

17 ‘‘(ii) include a statement directing 

18 such individual to a Department of Labor 

19 website established for the purpose of pro20 viding further information about the rights 

21 of employees under the law; 

22 ‘‘(iii) include the address and tele23 phone number for the applicable local of24 fice of the United States Department of 

25 Labor; 


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1 ‘‘(iv) include for each individual classi2 fied as a non-employee under paragraph 

3 (1)(B) by the person submitting the notice, 

4 the following statement: ‘Your rights to 

5 wage, hour, and other labor protections de6 pend upon your proper classification as an 

7 employee or non-employee. If you have any 

8 questions or concerns about how you have 

9 been classified or suspect that you may 

10 have been misclassified, contact the U.S. 

11 Department of Labor.’; and 

12 ‘‘(v) include such additional informa13 tion as the Secretary shall prescribe by 

14 regulation.’’. 

15 (b) SPECIAL PROHIBITED ACTS.—Section 15(a) of 

16 the Fair Labor Standards Act of 1938 (29 U.S.C. 215(a)) 

17 is amended— 

18 (1) by striking paragraph (3) and inserting the 

19 following: 

20 ‘‘(3) to discharge or in any other manner dis21 criminate against any individual (including an em22 ployee) because such individual has— 

23 ‘‘(A) opposed any practice, or filed a peti24 tion or complaint or instituted or caused to be 

25 instituted any proceeding— 


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1 ‘‘(i) under or related to this Act (in2 cluding concerning an individual’s status 

3 as an employee or non-employee for pur4 poses of this Act); or 

5 ‘‘(ii) concerning an individual’s status 

6 as an employee or non-employee for em7 ployment tax purposes within the meaning 

8 of subtitle C of the Internal Revenue Code 

9 of 1986; 

10 ‘‘(B) testified or is about to testify in any 

11 proceeding described in subparagraph (A); or 

12 ‘‘(C) served, or is about to serve, on an in13 dustry committee;’’; 

14 (2) in paragraph (5), by striking the period at 

15 the end and inserting ‘‘; and’’; and 

16 (3) by adding at the end the following: 

17 ‘‘(6) to fail to accurately classify an individual 

18 as an employee.’’. 

19 (c) SPECIAL PENALTY FOR CERTAIN

20 MISCLASSIFICATION, RECORDKEEPING, AND NOTICE VIO21 LATIONS.—Section 16 of the Fair Labor Standards Act 

22 of 1938 (29 U.S.C. 216) is amended— 

23 (1) in subsection (b)— 


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1 (A) in the sixth sentence, by striking ‘‘any 

2 employee’’ each place the term occurs and in3 serting ‘‘any employee or individual’’; 

4 (B) in the fourth sentence, by striking 

5 ‘‘employee’’ and inserting ‘‘employee or indi6 vidual’’; 

7 (C) in the third sentence— 

8 (i) by striking ‘‘either of the preceding 

9 sentences’’ and inserting ‘‘any of the pre10 ceding sentences’’; 

11 (ii) by striking ‘‘one or more employ12 ees’’ and inserting ‘‘one or more employees 

13 or individuals’’; and 

14 (iii) by striking ‘‘other employees’’ 

15 and inserting ‘‘other employees or individ16 uals, respectively,’’; and 

17 (D) by inserting after the first sentence 

18 the following: ‘‘Such liquidated damages are 

19 doubled (subject to section 11 of the Portal-to20 Portal Pay Act of 1947 (29 U.S.C. 260)) 

21 where, in addition to violating the provisions of 

22 section 6 or 7, the employer has violated the 

23 provisions of section 15(a)(6) with respect to 

24 such employee or employees.’’; and 


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1 (2) in subsection (e), by striking paragraph (2) 

2 and inserting the following: 

3 ‘‘(2) Any person who violates section 6, 7, 11(c), or 

4 15(a)(6) shall be subject to a civil penalty, for each em5 ployee or other individual who was the subject of such a 

6 violation, in an amount— 

7 ‘‘(A) not to exceed $1,100; or 

8 ‘‘(B) in the case of a person who has repeatedly 

9 or willfully committed such violation, not to exceed 

10 $5,000.’’. 

11 (d) EMPLOYEE RIGHTS WEBSITE.— 

12 (1) IN GENERAL.—Not later than 180 days 

13 after the date of enactment of this subtitle, the Sec14 retary of Labor shall establish, for purposes of sec15 tion 11(c)(5)(C)(ii) of the Fair Labor Standards Act 

16 of 1938 (as added by this subtitle), a single webpage 

17 on the Department of Labor website that summa18 rizes in plain language the rights of employees as 

19 described in the amendments made by subsection (a) 

20 and other information considered appropriate by the 

21 Secretary, including appropriate links to additional 

22 information on the Department of Labor website or 

23 other Federal agency websites. In addition, such 

24 webpage— 


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1 (A) shall include a statement explaining 

2 that employees may have additional or greater 

3 rights under State or local laws and how em4 ployees may obtain additional information about 

5 their rights under State or local laws; 

6 (B) shall be made available in English and 

7 any other languages that the Secretary deter8 mines to be prevalent among individuals likely 

9 to access the webpage; and 

10 (C) may provide a link to permit individ11 uals to file complaints online. 

12 (2) COORDINATION WITH OTHER FEDERAL

13 WEBSITES.—The Secretary shall coordinate with 

14 other relevant Federal agencies in order to provide 

15 information similar to the information described in 

16 paragraph (1) (or a link to the Department of Labor 

17 webpage required by this subsection) on the websites 

18 of such other agencies. 

19 SEC. 2953. MISCLASSIFICATION OF EMPLOYEES FOR UNEM20 PLOYMENT COMPENSATION PURPOSES. 

21 (a) IN GENERAL.—Section 303(a) of the Social Secu22 rity Act (42 U.S.C. 503(a)) is amended— 

23 (1) in paragraph (10), by striking the period 

24 and inserting ‘‘; and’’; and 


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1 (2) by adding after paragraph (10) the fol2 lowing: 

3 ‘‘(11)(A) Such auditing and investigative proce4 dures as may be necessary to identify employers that 

5 have not registered under the State law or that are 

6 paying unreported wages, where these actions or 

7 omissions by the employers have the effect of exclud8 ing employees from unemployment compensation 

9 coverage; and 

10 ‘‘(B) The making of quarterly reports to the 

11 Secretary of Labor (in such form as the Secretary 

12 of Labor may require) describing the results of the 

13 procedures under subparagraph (A); and 

14 ‘‘(12) The establishment of administrative pen15 alties for misclassifying employees, or paying unre16 ported wages to employees without proper record17 keeping, for unemployment compensation pur18 poses.’’. 

19 (b) REVIEW OF AUDITING PROGRAMS.—The Sec20 retary of Labor shall include, in the Department of La21 bor’s system for measuring States’ performance in con22 ducting unemployment compensation tax audits, a specific 

23 measure of their effectiveness in identifying the under24 reporting of wages and the underpayment of unemploy25 ment compensation contributions (including their effecVerDate Mar 15 2010 00:56 Dec 17, 2011 Jkt 019200 PO 00000 Frm 00234 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638

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1 tiveness in identifying instances of such underreporting or 

2 underpayments despite the absence of cancelled checks, 

3 original time sheets, or other similar documentation). 

4 (c) EFFECTIVE DATE.— 

5 (1) IN GENERAL.—Except as provided in para6 graph (2), the amendments made by subsection (a) 

7 shall take effect 12 months after the date of the en8 actment of this subtitle. 

9 (2) EXCEPTION.—If the Secretary of Labor 

10 finds that legislation is necessary in order for the 

11 unemployment compensation law of a State to com12 ply with the amendments made by subsection (a), 

13 such amendments shall not apply with respect to 

14 such law until the later of— 

15 (A) the day after the close of the first reg16 ular session of the legislature of such State 

17 which begins after the date of the enactment of 

18 this subtitle; or 

19 (B) 12 months after the date of the enact20 ment of this subtitle. 

21 (d) DEFINITION OF STATE.—For purposes of this 

22 section, the term ‘‘State’’ has the meaning given such 

23 term by section 3306(j) of the Internal Revenue Code of 

24 1986. 


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1 SEC. 2954. DEPARTMENT OF LABOR COORDINATION, RE2 FERRAL, AND REGULATIONS. 

3 (a) COORDINATION AND REFERRAL.—Notwith4 standing any other provision of law, any office, adminis5 tration, or division of the Department of Labor that, while 

6 in the performance of its official duties, obtains informa7 tion regarding the misclassification by a person subject to 

8 the provisions of the Fair Labor Standards Act of 1938 

9 (29 U.S.C. 201 et seq.) or any order issued under such 

10 Act of any individual regarding whether such individual 

11 is an employee or a non-employee contracted for the per12 formance of labor or services for purposes of section 6 or 

13 7 of such Act (29 U.S.C. 206, 207) or in records required 

14 under section 11(c) of such Act (29 U.S.C. 211(c)), shall 

15 report such information to the Wage and Hour Division 

16 of the Department. The Wage and Hour Division may re17 port such information to the Internal Revenue Service as 

18 the Division considers appropriate. 

19 (b) REGULATIONS.—The Secretary of Labor shall 

20 promulgate regulations to carry out this Act and the 

21 amendments made by this Act. 

22 SEC. 2955. TARGETED AUDITS. 

23 The audits of employers subject to the Fair Labor 

24 Standards Act of 1938 (29 U.S.C. 201 et seq.) that are 

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1 quent incidence of misclassifying employees as non-em2 ployees, as determined by the Secretary of Labor. 

3 Subtitle K—Corporate Assets 

4 Should Be Used to Hire Act 

5 SEC. 2961. SHORT TITLE. 

6 This subtitle may be cited as the ‘‘Corporate Assets 

7 Should be used to Hire Act’’. 

8 SEC. 2962. TEMPORARY SURTAX ON INCREASES IN RE9 TAINED EARNINGS OF DOMESTIC CORPORA10 TIONS. 

11 (a) IN GENERAL.—Part II of subchapter A of chap12 ter 1 of the Internal Revenue Code of 1986 is amended 

13 by redesignating section 12 as section 13 and by inserting 

14 after section 11 the following new section: 

15 ‘‘SEC. 12. TEMPORARY SURTAX ON INCREASES IN RE16 TAINED EARNINGS OF DOMESTIC CORPORA17 TIONS. 

18 ‘‘(a) IN GENERAL.—In the case of a domestic cor19 poration for any taxable year beginning during 2011 or 

20 2012, there is hereby imposed (in addition to any other 

21 tax imposed by this part) a tax equal to 40 percent of 

22 the excess (if any) of— 

23 ‘‘(1) the retained earnings of such corporation 

24 for such taxable year, over 


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1 ‘‘(2) the average retained earnings of such cor2 poration for the 3 taxable years immediately pre3 ceding such taxable year. 

4 ‘‘(b) EXCEPTIONS.— 

5 ‘‘(1) RETAINED EARNINGS REQUIRED BY

6 LAW.—Subsection (a) shall not apply to so much of 

7 the excess described in such subsection as is attrib8 utable to any increase in retained earnings which is 

9 required by Federal law or regulation. 

10 ‘‘(2) SMALL BUSINESS EXCEPTION.—Subsection 

11 (a) shall not apply to any corporation for any tax12 able year with respect to which the retained earnings 

13 of such corporation for such taxable year is less than 

14 $5,000,000. For purposes of this paragraph, all per15 sons treated as a single employer under subsection 

16 (a) or (b) of section 52, or subsection (m) or (o) of 

17 section 414, shall be treated as one person. 

18 ‘‘(3) CORPORATIONS NOT IN EXISTENCE FOR

19 ENTIRE BASE PERIOD.—Subsection (a) shall not 

20 apply to any corporation if such corporation was not 

21 in existence for the entire 3 taxable year period re22 ferred to in subsection (a)(2). 

23 ‘‘(c) RETAINED EARNINGS.—For purposes of this 

24 section, the term ‘retained earnings’ means, with respect 

25 to any taxable year, the excess (if any) of— 


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1 ‘‘(1) the retained earnings of such corporation 

2 as of the end of such taxable year, over 

3 ‘‘(2) the retained earnings of such corporation 

4 as of the beginning of such taxable year. 

5 Appropriated and unappropriated retained earnings shall 

6 be taken into account under paragraphs (1) and (2). 

7 ‘‘(d) TREATMENT OF PREDECESSORS.—Any ref8 erence in this section to a corporation shall include a ref9 erence to any predecessor of such corporation.’’. 

10 (b) CLERICAL AMENDMENT.—The table of sections 

11 for part II of subchapter A of chapter 1 of such Code 

12 is amended by redesignating the item relating to section 

13 12 as an item relating to section 13 and by inserting after 

14 the item relating to section 11 the following new item: 

‘‘Sec. 12. Temporary surtax on increases in retained earnings of domestic corporations.’’. 

15 (c) DEFICIT REDUCTION.—The increase in Federal 

16 revenue resulting from the amendments made by this sec17 tion shall be deposited in the Treasury and used for Fed18 eral budget deficit reduction or, if there is no Federal 

19 budget deficit, for reducing the Federal debt in such man20 ner as the Secretary of the Treasury considers appro21 priate. 

22 (d) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to taxable years beginning after 

24 December 31, 2010. 


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1 TITLE III—PROTECT AND 

2 STRENGTHEN SOCIAL SECU3 RITY, MEDICARE, AND MED4 ICAID 

5 Subtitle A—Public Option Deficit 

6 Reduction Act 

7 SEC. 3001. SHORT TITLE. 

8 This subtitle may be cited as the ‘‘Public Option Def9 icit Reduction Act’’. 

10 SEC. 3002. PUBLIC HEALTH INSURANCE OPTION. 

11 (a) IN GENERAL.—Part III of subtitle D of title I 

12 of the Patient Protection and Affordable Care Act (Public 

13 Law 111–148) is amended by adding at the end the fol14 lowing new section: 

15 ‘‘SEC. 1325. PUBLIC HEALTH INSURANCE OPTION. 

16 ‘‘(a) ESTABLISHMENT AND ADMINISTRATION OF A

17 PUBLIC HEALTH INSURANCE OPTION.— 

18 ‘‘(1) ESTABLISHMENT.—For years beginning 

19 with 2014, the Secretary of Health and Human 

20 Services (in this subtitle referred to as the ‘Sec21 retary’) shall provide for the offering through Ex22 changes established under this title of a health bene23 fits plan (in this Act referred to as the ‘public health 

24 insurance option’) that ensures choice, competition, 

25 and stability of affordable, high-quality coverage 


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1 throughout the United States in accordance with 

2 this section. In designing the option, the Secretary’s 

3 primary responsibility is to create a low-cost plan 

4 without compromising quality or access to care. 

5 ‘‘(2) OFFERING THROUGH EXCHANGES.— 

6 ‘‘(A) EXCLUSIVE TO EXCHANGES.—The 

7 public health insurance option shall only be 

8 made available through Exchanges established 

9 under this title. 

10 ‘‘(B) ENSURING A LEVEL PLAYING

11 FIELD.—Consistent with this section, the public 

12 health insurance option shall comply with re13 quirements that are applicable under this title 

14 to health benefits plans offered through such 

15 Exchanges, including requirements related to 

16 benefits, benefit levels, provider networks, no17 tices, consumer protections, and cost sharing. 

18 ‘‘(C) PROVISION OF BENEFIT LEVELS.— 

19 The public health insurance option— 

20 ‘‘(i) shall offer bronze, silver, and gold 

21 plans; and 

22 ‘‘(ii) may offer platinum plans. 

23 ‘‘(3) ADMINISTRATIVE CONTRACTING.—The 

24 Secretary may enter into contracts for the purpose 

25 of performing administrative functions (including 


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1 functions described in subsection (a)(4) of section 

2 1874A of the Social Security Act) with respect to 

3 the public health insurance option in the same man4 ner as the Secretary may enter into contracts under 

5 subsection (a)(1) of such section. The Secretary has 

6 the same authority with respect to the public health 

7 insurance option as the Secretary has under sub8 sections (a)(1) and (b) of section 1874A of the So9 cial Security Act with respect to title XVIII of such 

10 Act. Contracts under this subsection shall not in11 volve the transfer of insurance risk to such entity. 

12 ‘‘(4) OMBUDSMAN.—The Secretary shall estab13 lish an office of the ombudsman for the public 

14 health insurance option which shall have duties with 

15 respect to the public health insurance option similar 

16 to the duties of the Medicare Beneficiary Ombuds17 man under section 1808(c)(2) of the Social Security 

18 Act. In addition, such office shall work with States 

19 to ensure that information and notice is provided 

20 that the public health insurance option is one of the 

21 health plans available through an Exchange. 

22 ‘‘(5) DATA COLLECTION.—The Secretary shall 

23 collect such data as may be required to establish 

24 premiums and payment rates for the public health 

25 insurance option and for other purposes under this 


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1 section, including to improve quality and to reduce 

2 racial, ethnic, and other disparities in health and 

3 health care. 

4 ‘‘(6) ACCESS TO FEDERAL COURTS.—The provi5 sions of Medicare (and related provisions of title II 

6 of the Social Security Act) relating to access of 

7 Medicare beneficiaries to Federal courts for the en8 forcement of rights under Medicare, including with 

9 respect to amounts in controversy, shall apply to the 

10 public health insurance option and individuals en11 rolled under such option under this title in the same 

12 manner as such provisions apply to Medicare and 

13 Medicare beneficiaries. 

14 ‘‘(b) PREMIUMS AND FINANCING.— 

15 ‘‘(1) ESTABLISHMENT OF PREMIUMS.— 

16 ‘‘(A) IN GENERAL.—The Secretary shall 

17 establish geographically adjusted premium rates 

18 for the public health insurance option— 

19 ‘‘(i) in a manner that complies with 

20 the premium rules under paragraph (3); 

21 and 

22 ‘‘(ii) at a level sufficient to fully fi23 nance the costs of— 


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1 ‘‘(I) health benefits provided by 

2 the public health insurance option; 

3 and 

4 ‘‘(II) administrative costs related 

5 to operating the public health insur6 ance option. 

7 ‘‘(B) CONTINGENCY MARGIN.—In estab8 lishing premium rates under subparagraph (A), 

9 the Secretary shall include an appropriate 

10 amount for a contingency margin. 

11 ‘‘(2) ACCOUNT.— 

12 ‘‘(A) ESTABLISHMENT.—There is estab13 lished in the Treasury of the United States an 

14 account for the receipts and disbursements at15 tributable to the operation of the public health 

16 insurance option, including the start-up funding 

17 under subparagraph (B). Section 1854(g) of 

18 the Social Security Act shall apply to receipts 

19 described in the previous sentence in the same 

20 manner as such section applies to payments or 

21 premiums described in such section. 

22 ‘‘(B) START-UP FUNDING.— 

23 ‘‘(i) IN GENERAL.—In order to pro24 vide for the establishment of the public 

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1 propriated to the Secretary, out of any 

2 funds in the Treasury not otherwise appro3 priated, $2,000,000,000. In order to pro4 vide for initial claims reserves before the 

5 collection of premiums, there is hereby ap6 propriated to the Secretary, out of any 

7 funds in the Treasury not otherwise appro8 priated, such sums as necessary to cover 

9 90 days worth of claims reserves based on 

10 projected enrollment. 

11 ‘‘(ii) AMORTIZATION OF START-UP

12 FUNDING.—The Secretary shall provide for 

13 the repayment of the startup funding pro14 vided under clause (i) to the Treasury in 

15 an amortized manner over the 10-year pe16 riod beginning with 2014. 

17 ‘‘(iii) LIMITATION ON FUNDING.— 

18 Nothing in this subsection shall be con19 strued as authorizing any additional appro20 priations to the account, other than such 

21 amounts as are otherwise provided with re22 spect to other health benefits plans partici23 pating under the Exchange involved. 

24 ‘‘(3) INSURANCE RATING RULES.—The pre25 mium rate charged for the public health insurance 


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1 option may not vary except as provided under sec2 tion 2701 of the Public Health Service Act. 

3 ‘‘(c) PAYMENT RATES FOR ITEMS AND SERVICES.— 

4 ‘‘(1) RATES ESTABLISHED BY SECRETARY.— 

5 ‘‘(A) IN GENERAL.—The Secretary shall 

6 establish payment rates for the public health in7 surance option for services and health care pro8 viders consistent with this subsection and may 

9 change such payment rates in accordance with 

10 subsection (d). 

11 ‘‘(B) INITIAL PAYMENT RULES.— 

12 ‘‘(i) IN GENERAL.—During 2014, 

13 2015, and 2016, the Secretary shall set 

14 the payment rates under this subsection 

15 for services and providers described in sub16 paragraph (A) equal to the payment rates 

17 for equivalent services and providers under 

18 parts A and B of Medicare, subject to 

19 clause (ii), paragraphs (2)(A) and (4), and 

20 subsection (d). 

21 ‘‘(ii) EXCEPTIONS.— 

22 ‘‘(I) PRACTITIONERS’ SERV23 ICES.—Payment rates for practi24 tioners’ services otherwise established 

25 under the fee schedule under section 


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1 1848 of the Social Security Act shall 

2 be applied without regard to the pro3 visions under subsection (f) of such 

4 section and the update under sub5 section (d)(4) under such section for a 

6 year as applied under this paragraph 

7 shall be not less than 1 percent. 

8 ‘‘(II) ADJUSTMENTS.—The Sec9 retary may determine the extent to 

10 which Medicare adjustments applica11 ble to base payment rates under parts 

12 A and B of Medicare for graduate 

13 medical education and dispropor14 tionate share hospitals shall apply 

15 under this section. 

16 ‘‘(C) FOR NEW SERVICES.—The Secretary 

17 shall modify payment rates described in sub18 paragraph (B) in order to accommodate pay19 ments for services, such as well-child visits, that 

20 are not otherwise covered under Medicare. 

21 ‘‘(D) PRESCRIPTION DRUGS.—Payment 

22 rates under this subsection for prescription 

23 drugs that are not paid for under part A or 

24 part B of Medicare shall be at rates negotiated 

25 by the Secretary. 


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1 ‘‘(2) INCENTIVES FOR PARTICIPATING PRO2 VIDERS.— 

3 ‘‘(A) INITIAL INCENTIVE PERIOD.— 

4 ‘‘(i) IN GENERAL.—The Secretary 

5 shall provide, in the case of services de6 scribed in clause (ii) furnished during 

7 2014, 2015, and 2016, for payment rates 

8 that are 5 percent greater than the rates 

9 established under paragraph (1). 

10 ‘‘(ii) SERVICES DESCRIBED.—The 

11 services described in this clause are items 

12 and professional services, under the public 

13 health insurance option by a physician or 

14 other health care practitioner who partici15 pates in both Medicare and the public 

16 health insurance option. 

17 ‘‘(iii) SPECIAL RULES.—A pediatrician 

18 and any other health care practitioner who 

19 is a type of practitioner that does not typi20 cally participate in Medicare (as deter21 mined by the Secretary) shall also be eligi22 ble for the increased payment rates under 

23 clause (i). 

24 ‘‘(B) SUBSEQUENT PERIODS.—Beginning 

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1 retary shall continue to use an administrative 

2 process to set such rates in order to promote 

3 payment accuracy, to ensure adequate bene4 ficiary access to providers, and to promote af5 fordability and the efficient delivery of medical 

6 care consistent with subsection (a)(1). Such 

7 rates shall not be set at levels expected to in8 crease average medical costs per enrollee cov9 ered under the public health insurance option 

10 beyond what would be expected if the process 

11 under paragraph (1)(B) and subparagraph (A) 

12 were continued, as certified by the Office of the 

13 Actuary of the Centers for Medicare & Medicaid 

14 Services. 

15 ‘‘(C) ESTABLISHMENT OF A PROVIDER

16 NETWORK.—Health care providers participating 

17 under Medicare are participating providers in 

18 the public health insurance option unless they 

19 opt out in a process established by the Sec20 retary. 

21 ‘‘(3) ADMINISTRATIVE PROCESS FOR SETTING

22 RATES.—Chapter 5 of title 5, United States Code 

23 shall apply to the process for the initial establish24 ment of payment rates under this subsection but not 


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1 to the specific methodology for establishing such 

2 rates or the calculation of such rates. 

3 ‘‘(4) CONSTRUCTION.—Nothing in this section 

4 shall be construed as limiting the Secretary’s author5 ity to correct for payments that are excessive or defi6 cient, taking into account the provisions of sub7 section (a)(1) and any appropriate adjustments 

8 based on the demographic characteristics of enrollees 

9 covered under the public health insurance option, 

10 but in no case shall the correction of payments 

11 under this paragraph result in a level of expendi12 tures per enrollee that exceeds the level of expendi13 tures that would have occurred under paragraphs 

14 (1)(B) and (2)(A), as certified by the Office of the 

15 Actuary of the Centers for Medicare & Medicaid 

16 Services. 

17 ‘‘(5) CONSTRUCTION.—Nothing in this section 

18 shall be construed as affecting the authority of the 

19 Secretary to establish payment rates, including pay20 ments to provide for the more efficient delivery of 

21 services, such as the initiatives provided for under 

22 subsection (d). 

23 ‘‘(6) LIMITATIONS ON REVIEW.—There shall be 

24 no administrative or judicial review of a payment 


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1 rate or methodology established under this sub2 section or under subsection (d). 

3 ‘‘(d) MODERNIZED PAYMENT INITIATIVES AND DE4 LIVERY SYSTEM REFORM.— 

5 ‘‘(1) IN GENERAL.—For plan years beginning 

6 with 2014, the Secretary may utilize innovative pay7 ment mechanisms and policies to determine pay8 ments for items and services under the public health 

9 insurance option. The payment mechanisms and 

10 policies under this subsection may include patient11 centered medical home and other care management 

12 payments, accountable care organizations, value13 based purchasing, bundling of services, differential 

14 payment rates, performance or utilization based pay15 ments, partial capitation, and direct contracting with 

16 providers. Payment rates under such payment mech17 anisms and policies shall not be set at levels ex18 pected to increase average medical costs per enrollee 

19 covered under the public health insurance option be20 yond what would be expected if the process under 

21 paragraphs (1)(B) and (2)(A) of subsection (c) were 

22 continued, as certified by the Office of the Actuary 

23 of the Centers for Medicare & Medicaid Services. 

24 ‘‘(2) REQUIREMENTS FOR INNOVATIVE PAY25 MENTS.—The Secretary shall design and implement 


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1 the payment mechanisms and policies under this 

2 subsection in a manner that— 

3 ‘‘(A) seeks to— 

4 ‘‘(i) improve health outcomes; 

5 ‘‘(ii) reduce health disparities (includ6 ing racial, ethnic, and other disparities); 

7 ‘‘(iii) provide efficient and affordable 

8 care; 

9 ‘‘(iv) address geographic variation in 

10 the provision of health services; or 

11 ‘‘(v) prevent or manage chronic ill12 ness; and 

13 ‘‘(B) promotes care that is integrated, pa14 tient-centered, high-quality, and efficient. 

15 ‘‘(3) ENCOURAGING THE USE OF HIGH VALUE

16 SERVICES.—To the extent allowed by the benefit 

17 standards applied to all health benefits plans partici18 pating under the Exchange involved, the public 

19 health insurance option may modify cost sharing and 

20 payment rates to encourage the use of services that 

21 promote health and value. 

22 ‘‘(4) NON-UNIFORMITY PERMITTED.—Nothing 

23 in this subtitle shall prevent the Secretary from 

24 varying payments based on different payment struc25 ture models (such as accountable care organizations 


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1 and medical homes) under the public health insur2 ance option for different geographic areas. 

3 ‘‘(e) PROVIDER PARTICIPATION.— 

4 ‘‘(1) IN GENERAL.—The Secretary shall estab5 lish conditions of participation for health care pro6 viders under the public health insurance option. 

7 ‘‘(2) LICENSURE OR CERTIFICATION.—The Sec8 retary shall not allow a health care provider to par9 ticipate in the public health insurance option unless 

10 such provider is appropriately licensed or certified 

11 under State law. 

12 ‘‘(3) PAYMENT TERMS FOR PROVIDERS.— 

13 ‘‘(A) PHYSICIANS.—The Secretary shall 

14 provide for the annual participation of physi15 cians under the public health insurance option, 

16 for which payment may be made for services 

17 furnished during the year, in one of 2 classes: 

18 ‘‘(i) PREFERRED PHYSICIANS.—Those 

19 physicians who agree to accept the pay20 ment rate established under this section 

21 (without regard to cost-sharing) as the 

22 payment in full. 

23 ‘‘(ii) PARTICIPATING, NON-PRE24 FERRED PHYSICIANS.—Those physicians 

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1 tion to the payment rate described in sub2 section (c) for such physicians) that exceed 

3 the ratio permitted under section 

4 1848(g)(2)(C) of the Social Security Act. 

5 ‘‘(B) OTHER PROVIDERS.—The Secretary 

6 shall provide for the participation (on an annual 

7 or other basis specified by the Secretary) of 

8 health care providers (other than physicians) 

9 under the public health insurance option under 

10 which payment shall only be available if the 

11 provider agrees to accept the payment rate es12 tablished under subsection (c) (without regard 

13 to cost-sharing) as the payment in full. 

14 ‘‘(4) EXCLUSION OF CERTAIN PROVIDERS.— 

15 The Secretary shall exclude from participation under 

16 the public health insurance option a health care pro17 vider that is excluded from participation in a Fed18 eral health care program (as defined in section 

19 1128B(f) of the Social Security Act). 

20 ‘‘(f) APPLICATION OF FRAUD AND ABUSE PROVI21 SIONS.—Provisions of law (other than criminal law provi22 sions) identified by the Secretary by regulation, in con23 sultation with the Inspector General of the Department 

24 of Health and Human Services, that impose sanctions 

25 with respect to waste, fraud, and abuse under Medicare, 


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1 such as the False Claims Act (31 U.S.C. 3729 et seq.), 

2 shall also apply to the public health insurance option. 

3 ‘‘(g) MEDICARE DEFINED.—For purposes of this sec4 tion, the term ‘Medicare’ means the health insurance pro5 grams under title XVIII of the Social Security Act.’’. 

6 (b) CONFORMING AMENDMENTS.— 

7 (1) TREATMENT AS QUALIFIED HEALTH

8 PLAN.—Section 1301(a)(2) of the Patient Protection 

9 and Affordable Care Act, as amended by section 

10 10104(a) of such Act, is amended— 

11 (A) in the heading, by inserting ‘‘, THE

12 PUBLIC HEALTH INSURANCE OPTION,’’ before 

13 ‘‘AND’’; and 

14 (B) by inserting ‘‘the public health insur15 ance option under section 1325,’’ before ‘‘and a 

16 multi-State plan’’. 

17 (2) LEVEL PLAYING FIELD.—Section 1324(a) 

18 of such Act, as amended by section 10104(n) of such 

19 Act, is amended by inserting ‘‘the public health in20 surance option under section 1325,’’ before ‘‘or a 

21 multi-State qualified health plan’’. 


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1 Subtitle B—Medicare Prescription 

2 Drug Price Negotiation Act of 2011 

3 SEC. 3101. SHORT TITLE. 

4 This subtitle may be cited as the ‘‘Medicare Prescrip5 tion Drug Price Negotiation Act of 2011’’. 

6 SEC. 3102. NEGOTIATION OF LOWER COVERED PART D 

7 DRUG PRICES ON BEHALF OF MEDICARE 

8 BENEFICIARIES. 

9 (a) NEGOTIATION BY SECRETARY.—Section 1860D– 

10 11 of the Social Security Act (42 U.S.C. 1395w–111) is 

11 amended by striking subsection (i) (relating to noninter12 ference) and inserting the following: 

13 ‘‘(i) NEGOTIATION OF LOWER DRUG PRICES.— 

14 ‘‘(1) IN GENERAL.—Notwithstanding any other 

15 provision of law, the Secretary shall negotiate with 

16 pharmaceutical manufacturers the prices (including 

17 discounts, rebates, and other price concessions) that 

18 may be charged to PDP sponsors and MA organiza19 tions for covered part D drugs for part D eligible in20 dividuals who are enrolled under a prescription drug 

21 plan or under an MA–PD plan. 

22 ‘‘(2) NO CHANGE IN RULES FOR

23 FORMULARIES.— 

24 ‘‘(A) IN GENERAL.—Nothing in paragraph 

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1 retary to establish or require a particular for2 mulary. 

3 ‘‘(B) CONSTRUCTION.—Subparagraph (A) 

4 shall not be construed as affecting the Sec5 retary’s authority to ensure appropriate and 

6 adequate access to covered part D drugs under 

7 prescription drug plans and under MA–PD 

8 plans, including compliance of such plans with 

9 formulary requirements under section 1860D– 

10 4(b)(3). 

11 ‘‘(3) CONSTRUCTION.—Nothing in this sub12 section shall be construed as preventing the sponsor 

13 of a prescription drug plan, or an organization offer14 ing an MA–PD plan, from obtaining a discount or 

15 reduction of the price for a covered part D drug 

16 below the price negotiated under paragraph (1). 

17 ‘‘(4) SEMI-ANNUAL REPORTS TO CONGRESS.— 

18 Not later than June 1, 2012, and every 6 months 

19 thereafter, the Secretary shall submit to the Com20 mittees on Ways and Means, Energy and Commerce, 

21 and Oversight and Government Reform of the House 

22 of Representatives and the Committee on Finance of 

23 the Senate a report on negotiations conducted by the 

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1 ficiaries, and the prices and price discounts achieved 

2 by the Secretary as a result of such negotiations.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 subsection (a) shall take effect on the date of the enact5 ment of this subtitle and shall first apply to negotiations 

6 and prices for plan years beginning on January 1, 2012. 

7 Subtitle C—Medicaid Enhancement 

8 and Emergency Job Creation 

9 Act of 2011 

10 SEC. 3201. SHORT TITLE. 

11 This subtitle may be cited as the ‘‘Medicaid Enhance12 ment and Emergency Job Creation Act of 2011’’. 

13 SEC. 3202. EXTENSION OF ARRA INCREASE IN FMAP 

14 THROUGH FISCAL YEAR 2012. 

15 (a) IN GENERAL.—Section 5001 of division B of the 

16 American Recovery and Reinvestment Act of 2009 (Public 

17 Law 111–5), as amended by section 201 of Public Law 

18 111–226, is amended— 

19 (1) in subsection (a)— 

20 (A) by striking ‘‘and’’ at the end of para21 graph (2); 

22 (B) in paragraph (3), by striking ‘‘, but 

23 only for the first 3 calendar quarters in fiscal 

24 year 2011.’’ and inserting ‘‘; and’’; and 


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1 (C) by adding at the end the following new 

2 paragraph: 

3 ‘‘(4) fiscal year 2011 is less than the FMAP as 

4 so determines for fiscal year 2008, fiscal year 2009 

5 (after the application of paragraph (1)), fiscal year 

6 2010 (after the application of paragraph (2), or fis7 cal year 2011 (after the application of paragraph 

8 (3)), the greatest of such FMAP for the State for 

9 fiscal year 2008, fiscal year 2009, fiscal year 2010, 

10 or fiscal year 2011, shall be substituted for the 

11 State’s FMAP for fiscal year 2012 before the appli12 cation of this section.’’; 

13 (2) in subsection (b)(3), by adding at the end 

14 the following: 

15 ‘‘(C) FOURTH QUARTER OF FISCAL YEAR

16 2011 AND FIRST AND SECOND QUARTERS OF

17 FISCAL YEAR 2012.—For each State, for the 

18 fourth quarter of fiscal year 2011 and the first 

19 and second quarters of fiscal year 2012, the 

20 FMAP percentage increase for the State under 

21 paragraph (1) or (2) (as applicable) shall be 6.2 

22 percentage points. 

23 ‘‘(D) THIRD QUARTER OF FISCAL YEAR

24 2012.—For each State, for the third quarter of 

25 fiscal year 2012, the FMAP percentage increase 


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1 for the State under paragraph (1) or (2) (as 

2 applicable) shall be 3.2 percentage points. 

3 ‘‘(E) FOURTH QUARTER OF FISCAL YEAR

4 2011.—For each State, for the fourth quarter of 

5 fiscal year 2012, the FMAP percentage increase 

6 for the State under paragraph (1) or (2) (as 

7 applicable) shall be 1.2 percentage points.’’; 

8 (3) in subsection (c)— 

9 (A) in paragraph (2)(B), by striking ‘‘Jan10 uary 1, 2011’’ and inserting ‘‘April 1, 2012’’; 

11 (B) in paragraph (3)(B)(i), by striking 

12 ‘‘January 1, 2011’’ and inserting ‘‘April 1, 

13 2012’’ each place it appears; and 

14 (C) in paragraph (4)(C)(ii), by striking 

15 ‘‘January 2011’’ and inserting ‘‘April 2012’’; 

16 (4) in subsection (f)(1)(A), by adding at the 

17 end the following: ‘‘The previous sentence shall 

18 apply for quarters beginning after the date of the 

19 enactment of this sentence in the case of a State op20 erating under a Statewide waiver as of such date re21 gardless of whether the waiver in effect on July 1, 

22 2008, was renewed or extended after such date’’; 

23 (5) in subsection (g)(1), by striking ‘‘March 31, 

24 2012’’ and inserting ‘‘September 30, 2013’’; and 


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1 (6) in subsection (h)(3), by striking ‘‘June 30, 

2 2011’’ and inserting ‘‘September 30, 2012’’. 

3 (b) PAYMENT ADJUSTMENT.—The Secretary of 

4 Health and Human Services shall provide, not later than 

5 30 days after the date of the enactment of this subtitle, 

6 for such adjustments of payments to States under title 

7 XIX of the Social Security Act as may be necessary for 

8 calendar quarters ending before such date to reflect the 

9 amendments made by subsection (a). 

10 Subtitle D—Keeping Our Social 

11 Security Promises Act 

12 SEC. 3301. SHORT TITLE. 

13 This subtitle may be cited as the ‘‘Keeping Our Social 

14 Security Promises Act’’. 

15 SEC. 3302. PAYROLL TAX ON REMUNERATION UP TO CON16 TRIBUTION AND BENEFIT BASE AND MORE 

17 THAN $250,000. 

18 (a) IN GENERAL.—Paragraph (1) of section 3121(a) 

19 of the Internal Revenue Code of 1986 is amended by in20 serting after ‘‘such calendar year.’’ the following: ‘‘The 

21 preceding sentence shall apply only to calendar years for 

22 which the contribution and benefit base (as so determined) 

23 is less than $250,000, and, for such calendar years, only 

24 to so much of the remuneration paid to such employee 


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1 by such employer with respect to employment as does not 

2 exceed $250,000.’’. 

3 (b) CONFORMING AMENDMENT.—Paragraph (1) of 

4 section 3121 of the Internal Revenue Code of 1986 is 

5 amended by striking ‘‘Act) to’’ and inserting ‘‘Act), or in 

6 excess of $250,000, to’’. 

7 (c) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to remuneration paid after Decem9 ber 31, 2011. 

10 SEC. 3303. TAX ON NET EARNINGS FROM SELF-EMPLOY11 MENT UP TO CONTRIBUTION AND BENEFIT 

12 BASE AND MORE THAN $250,000. 

13 (a) IN GENERAL.—Paragraph (1) of section 1402(b) 

14 of the Internal Revenue Code of 1986 is amended to read 

15 as follows: 

16 ‘‘(1) in the case of the tax imposed by section 

17 1401(a), the excess of— 

18 ‘‘(A) that part of the net earnings from 

19 self-employment which is in excess of— 

20 ‘‘(i) an amount equal to the contribu21 tion and benefit base (as determined under 

22 section 230 of the Social Security Act) 

23 which is effective for the calendar year in 

24 which such taxable year begins, minus 


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1 ‘‘(ii) the amount of the wages paid to 

2 such individual during such taxable years; 

3 over 

4 ‘‘(B) that part of the net earnings from 

5 self-employment which is in excess of the sum 

6 of— 

7 ‘‘(i) the excess of— 

8 ‘‘(I) the net earning from self9 employment reduced by the excess (if 

10 any) of subparagraph (A)(i) over sub11 paragraph (A)(ii), over 

12 ‘‘(II) $250,000, reduced by such 

13 contribution and benefit base, plus 

14 ‘‘(ii) the amount of the wages paid to 

15 such individual during such taxable year in 

16 excess of such contribution and benefit 

17 base and not in excess of $250,000; or’’. 

18 (b) PHASEOUT.—Subsection (b) of section 1402 of 

19 the Internal Revenue Code of 1986 is amended by adding 

20 at the end the following: ‘‘Paragraph (1) shall apply only 

21 to taxable years beginning in calendar years for which the 

22 contribution and benefit base (as determined under section 

23 230 of the Social Security Act) is less than $250,000.’’. 

24 (c) EFFECTIVE DATE.—The amendments made by 

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1 ment derived, and remuneration paid, after December 31, 

2 2011. 

Æ 


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