II 

Calendar No. 187 

112TH CONGRESS 

1ST SESSION S. 1660 

To provide tax relief for American workers and businesses, to put workers 

back on the job while rebuilding and modernizing America, and to provide 

pathways back to work for Americans looking for jobs. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 5, 2011 

Mr. REID introduced the following bill; which was read the first time 

OCTOBER 6, 2011 

Read the second time and placed on the calendar 

A BILL 

To provide tax relief for American workers and businesses, 

to put workers back on the job while rebuilding and 

modernizing America, and to provide pathways back to 

work for Americans looking for jobs. 

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 ‘‘American Jobs Act of 2011’’. 


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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. 

Sec. 2. References. 

Sec. 3. Severability. 

Sec. 4. Buy American—Use of American iron, steel, and manufactured goods. 

Sec. 5. Wage rate and employment protection requirements. 

TITLE I—RELIEF FOR WORKERS AND BUSINESSES 

Subtitle A—Payroll Tax Relief 

Sec. 101. Temporary payroll tax cut for employers, employees and the self-employed. 

Sec. 102. Temporary tax credit for increased payroll. 

Subtitle B—Other Relief for Businesses 

Sec. 111. Extension of temporary 100 percent bonus depreciation for certain 

business assets. 

Sec. 112. Surety bonds. 

Sec. 113. Delay in application of withholding on government contractors. 

TITLE II—PUTTING WORKERS BACK ON THE JOB WHILE 

REBUILDING AND MODERNIZING AMERICA 

Subtitle A—Veterans Hiring Preferences 

Sec. 201. Returning heroes and wounded warriors work opportunity tax credits. 

Subtitle B—Teacher Stabilization 

Sec. 202. Purpose. 

Sec. 203. Grants for the outlying areas and the Secretary of the Interior; availability of funds. 

Sec. 204. State allocation. 

Sec. 205. State application. 

Sec. 206. State reservation and responsibilities. 

Sec. 207. Local educational agencies. 

Sec. 208. Early learning. 

Sec. 209. Maintenance of effort. 

Sec. 210. Reporting. 

Sec. 211. Definitions. 

Sec. 212. Authorization of appropriations. 

Subtitle C—First Responder Stabilization 

Sec. 213. Purpose. 

Sec. 214. Grant program. 

Sec. 215. Appropriations. 

Subtitle D—School Modernization 

PART I—ELEMENTARY AND SECONDARY SCHOOLS

Sec. 221. Purpose. 


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Sec. 222. Authorization of appropriations. 

Sec. 223. Allocation of funds. 

Sec. 224. State use of funds. 

Sec. 225. State and local applications. 

Sec. 226. Use of funds. 

Sec. 227. Private schools. 

Sec. 228. Additional provisions. 

PART II—COMMUNITY COLLEGE MODERNIZATION

Sec. 229. Federal assistance for community college modernization. 

PART III—GENERAL PROVISIONS

Sec. 230. Definitions. 

Sec. 231. Buy American. 

Subtitle E—Immediate Transportation Infrastrucure Investments 

Sec. 241. Immediate transportation infrastructure investments. 

Subtitle F—Building and Upgrading Infrastructure for Long-Term 

Development 

Sec. 242. Short title; table of contents. 

Sec. 243. Findings and purpose. 

Sec. 244. Definitions. 

PART I—AMERICAN INFRASTRUCTURE FINANCING AUTHORITY

Sec. 245. Establishment and general authority of AIFA. 

Sec. 246. Voting members of the board of directors. 

Sec. 247. Chief executive officer of AIFA. 

Sec. 248. Powers and duties of the board of directors. 

Sec. 249. Senior management. 

Sec. 250. Special Inspector General for AIFA. 

Sec. 251. Other personnel. 

Sec. 252. Compliance. 

PART II—TERMS AND LIMITATIONS ON DIRECT LOANS AND LOAN

GUARANTEES

Sec. 253. Eligibility criteria for assistance from AIFA and terms and limitations of loans. 

Sec. 254. Loan terms and repayment. 

Sec. 255. Compliance and enforcement. 

Sec. 256. Audits; reports to the President and Congress. 

PART III—FUNDING OF AIFA 

Sec. 257. Administrative fees. 

Sec. 258. Efficiency of AIFA. 

Sec. 259. Funding. 

PART IV—EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX

TREATMENT FOR CERTAIN TAX-EXEMPT BONDS

Sec. 260. Extension of exemption from alternative minimum tax treatment for 

certain tax-exempt bonds. 


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Subtitle G—Project Rebuild 

Sec. 261. Project Rebuild. 

Subtitle H—National Wireless Initiative 

Sec. 271. Definitions. 

PART I—AUCTIONS OF SPECTRUM AND SPECTRUM MANAGEMENT

Sec. 272. Clarification of authorities to repurpose Federal spectrum for commercial purposes. 

Sec. 273. Incentive auction authority. 

Sec. 274. Requirements when repurposing certain mobile satellite services spectrum for terrestrial broadband use. 

Sec. 275. Permanent extension of auction authority. 

Sec. 276. Authority to auction licenses for domestic satellite services. 

Sec. 277. Directed auction of certain spectrum. 

Sec. 278. Authority to establish spectrum license user fees. 

PART II—PUBLIC SAFETY BROADBAND NETWORK

Sec. 281. Reallocation of D block for public safety. 

Sec. 282. Flexible use of narrowband spectrum. 

Sec. 283. Single public safety wireless network licensee. 

Sec. 284. Establishment of Public Safety Broadband Corporation. 

Sec. 285. Board of directors of the corporation. 

Sec. 286. Officers, employees, and committees of the corporation. 

Sec. 287. Nonprofit and nonpolitical nature of the corporation. 

Sec. 288. Powers, duties, and responsibilities of the corporation. 

Sec. 289. Initial funding for corporation. 

Sec. 290. Permanent self-funding; duty to assess and collect fees for network 

use. 

Sec. 291. Audit and report. 

Sec. 292. Annual report to Congress. 

Sec. 293. Provision of technical assistance. 

Sec. 294. State and local implementation. 

Sec. 295. State and Local Implementation Fund. 

Sec. 296. Public safety wireless communications research and development. 

Sec. 297. Public Safety Trust Fund. 

Sec. 298. FCC report on efficient use of public safety spectrum. 

Sec. 299. Public safety roaming and priority access. 

TITLE III—ASSISTANCE FOR THE UNEMPLOYED AND PATHWAYS 

BACK TO WORK 

Subtitle A—Supporting Unemployed Workers 

Sec. 301. Short title. 

PART I—EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION AND

CERTAIN EXTENDED BENEFITS PROVISIONS, AND ESTABLISHMENT OF

SELF-EMPLOYMENT ASSISTANCE PROGRAM

Sec. 311. Extension of emergency unemployment compensation program. 

Sec. 312. Temporary extension of extended benefit provisions. 

Sec. 313. Reemployment services and reemployment and eligibility assessment 

activities. 


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Sec. 314. Federal-State agreements to administer a self-employment assistance 

program. 

Sec. 315. Conforming amendment on payment of Bridge to Work wages. 

Sec. 316. Additional extended unemployment benefits under the Railroad Unemployment Insurance Act. 

PART II—REEMPLOYMENT NOW PROGRAM

Sec. 321. Establishment of Reemployment NOW program. 

Sec. 322. Distribution of funds. 

Sec. 323. State plan. 

Sec. 324. Bridge to Work program. 

Sec. 325. Wage insurance. 

Sec. 326. Enhanced reemployment strategies. 

Sec. 327. Self-employment programs. 

Sec. 328. Additional innovative programs. 

Sec. 329. Guidance and additional requirements. 

Sec. 330. Report of information and evaluations to Congress and the public. 

Sec. 331. State. 

PART III—SHORT-TIME COMPENSATION PROGRAM

Sec. 341. Treatment of short-time compensation programs. 

Sec. 342. Temporary financing of short-time compensation payments in States 

with programs in law. 

Sec. 343. Temporary financing of short-time compensation agreements. 

Sec. 344. Grants for short-time compensation programs. 

Sec. 345. Assistance and guidance in implementing programs. 

Sec. 346. Reports. 

Subtitle B—Long Term Unemployed Hiring Preferences 

Sec. 351. Long term unemployed workers work opportunity tax credits. 

Subtitle C—Pathways Back to Work 

Sec. 361. Short title. 

Sec. 362. Establishment of Pathways Back to Work Fund. 

Sec. 363. Availability of funds. 

Sec. 364. Subsidized employment for unemployed, low-income adults. 

Sec. 365. Summer employment and year-round employment opportunities for 

low-income youth. 

Sec. 366. Work-based employment strategies of demonstrated effectiveness. 

Sec. 367. General requirements. 

Sec. 368. Definitions. 

Subtitle D—Prohibition of Discrimination in Employment on the Basis of an 

Individual’s Status as Unemployed 

Sec. 371. Short title. 

Sec. 372. Findings and purpose. 

Sec. 373. Definitions. 

Sec. 374. Prohibited acts. 

Sec. 375. Enforcement. 

Sec. 376. Federal and State immunity. 

Sec. 377. Relationship to other laws. 

Sec. 378. Severability. 


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TITLE IV—SURTAX ON MILLIONAIRES 

Sec. 401. Surtax on millionaires. 

1 SEC. 2. REFERENCES. 

2 Except as expressly provided otherwise, any reference 

3 to ‘‘this Act’’ contained in any subtitle of this Act shall 

4 be treated as referring only to the provisions of that sub5 title. 

6 SEC. 3. SEVERABILITY. 

7 If any provision of this Act, or the application thereof 

8 to any person or circumstance, is held invalid, the remain9 der of the Act and the application of such provision to 

10 other persons or circumstances shall not be affected there11 by. 

12 SEC. 4. BUY AMERICAN—USE OF AMERICAN IRON, STEEL, 

13 AND MANUFACTURED GOODS. 

14 (a) None of the funds appropriated or otherwise made 

15 available by this Act may be used for a project for the 

16 construction, alteration, maintenance, or repair of a public 

17 building or public work unless all of the iron, steel, and 

18 manufactured goods used in the project are produced in 

19 the United States. 

20 (b) Subsection (a) shall not apply in any case or cat21 egory of cases in which the head of the Federal depart22 ment or agency involved finds that— 

23 (1) applying subsection (a) would be incon24 sistent with the public interest; 


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

2 goods are not produced in the United States in suffi3 cient and reasonably available quantities and of a 

4 satisfactory quality; or 

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

6 goods produced in the United States will increase 

7 the cost of the overall project by more than 25 per8 cent. 

9 (c) If the head of a Federal department or agency 

10 determines that it is necessary to waive the application 

11 of subsection (a) based on a finding under subsection (b), 

12 the head of the department or agency shall publish in the 

13 Federal Register a detailed written justification as to why 

14 the provision is being waived. 

15 (d) This section shall be applied in a manner con16 sistent with United States obligations under international 

17 agreements. 

18 SEC. 5. WAGE RATE AND EMPLOYMENT PROTECTION RE19 QUIREMENTS. 

20 (a) Notwithstanding any other provision of law and 

21 in a manner consistent with other provisions in this Act, 

22 all laborers and mechanics employed by contractors and 

23 subcontractors on projects funded directly by or assisted 

24 in whole or in part by and through the Federal Govern25 ment pursuant to this Act shall be paid wages at rates 


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1 not less than those prevailing on projects of a character 

2 similar in the locality as determined by the Secretary of 

3 Labor in accordance with subchapter IV of chapter 31 of 

4 title 40, United States Code. 

5 (b) With respect to the labor standards specified in 

6 this section, the Secretary of Labor shall have the author7 ity and functions set forth in Reorganization Plan Num8 bered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and sec9 tion 3145 of title 40, United States Code. 

10 (c) Projects as defined under title 49, United States 

11 Code, funded directly by or assisted in whole or in part 

12 by and through the Federal Government pursuant to this 

13 Act shall be subject to the requirements of section 5333(b) 

14 of title 49, United States Code. 

15 TITLE I—RELIEF FOR WORKERS 

16 AND BUSINESSES 

17 Subtitle A—Payroll Tax Relief 

18 SEC. 101. TEMPORARY PAYROLL TAX CUT FOR EMPLOYERS, 

19 EMPLOYEES AND THE SELF-EMPLOYED. 

20 (a) WAGES.—Notwithstanding any other provision of 

21 law— 

22 (1) with respect to remuneration received dur23 ing the payroll tax holiday period, the rate of tax 

24 under 3101(a) of the Internal Revenue Code of 1986 

25 shall be 3.1 percent (including for purposes of deterVerDate Mar 15 2010 01:20 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 mining the applicable percentage under sections 

2 3201(a) and 3211(a) of such Code), and 

3 (2) with respect to remuneration paid during 

4 the payroll tax holiday period, the rate of tax under 

5 3111(a) of such Code shall be 3.1 percent (including 

6 for purposes of determining the applicable percent7 age under sections 3221(a) and 3211(a) of such 

8 Code). 

9 (3) Subsection (a)(2) shall only apply to— 

10 (A) employees performing services in a 

11 trade or business of a qualified employer, or 

12 (B) in the case of a qualified employer ex13 empt from tax under section 501(a), in further14 ance of the activities related to the purpose or 

15 function constituting the basis of the employer’s 

16 exemption under section 501. 

17 (4) Subsection (a)(2) shall apply only to the 

18 first $5 million of remuneration or compensation 

19 paid by a qualified employer subject to section 

20 3111(a) or a corresponding amount of compensation 

21 subject to 3221(a). 

22 (b) SELF-EMPLOYMENT TAXES.— 

23 (1) IN GENERAL.—Notwithstanding any other 

24 provision of law, with respect to any taxable year 

25 which begins in the payroll tax holiday period, the 


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1 rate of tax under section 1401(a) of the Internal 

2 Revenue Code of 1986 shall be— 

3 (A) 6.2 percent on the portion of net earn4 ings from self-employment subject to 1401(a) 

5 during the payroll tax period that does not ex6 ceed the amount of the excess of $5 million over 

7 total remuneration, if any, subject to section 

8 3111(a) paid during the payroll tax holiday pe9 riod to employees of the self-employed person, 

10 and 

11 (B) 9.3 percent for any portion of net 

12 earnings from self-employment not subject to 

13 subsection (b)(1)(A). 

14 (2) COORDINATION WITH DEDUCTIONS FOR EM15 PLOYMENT TAXES.—For purposes of the Internal 

16 Revenue Code of 1986, in the case of any taxable 

17 year which begins in the payroll tax holiday period— 

18 (A) DEDUCTION IN COMPUTING NET EARN19 INGS FROM SELF-EMPLOYMENT.—The deduc20 tion allowed under section 1402(a)(12) of such 

21 Code shall be the sum of (i) 4.55 percent times 

22 the amount of the taxpayer’s net earnings from 

23 self-employment for the taxable year subject to 

24 paragraph (b)(1)(A) of this section, plus (ii) 


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1 7.65 percent of the taxpayer’s net earnings 

2 from self-employment in excess of that amount. 

3 (B) INDIVIDUAL DEDUCTION.—The deduc4 tion under section 164(f) of such Code shall be 

5 equal to the sum of (i) one-half of the taxes im6 posed by section 1401 (after the application of 

7 this section) with respect to the taxpayer’s net 

8 earnings from self-employment for the taxable 

9 year subject to paragraph (b)(1)(A) of this sec10 tion plus (ii) 62.7 percent of the taxes imposed 

11 by section 1401 (after the application of this 

12 section) with respect to the excess. 

13 (c) REGULATORY AUTHORITY.—The Secretary may 

14 prescribe any such regulations or other guidance necessary 

15 or appropriate to carry out this section, including the allo16 cation of the excess of $5 million over total remuneration 

17 subject to section 3111(a) paid during the payroll tax holi18 day period among related taxpayers treated as a single 

19 qualified employer. 

20 (d) DEFINITIONS.— 

21 (1) PAYROLL TAX HOLIDAY PERIOD.—The term 

22 ‘‘payroll tax holiday period’’ means calendar year 

23 2012. 

24 (2) QUALIFIED EMPLOYER.—For purposes of 

25 this paragraph, 


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1 (A) IN GENERAL.—The term ‘‘qualified 

2 employer’’ means any employer other than the 

3 United States, any State or possession of the 

4 United States, or any political subdivision 

5 thereof, or any instrumentality of the foregoing. 

6 (B) TREATMENT OF EMPLOYEES OF POST7 SECONDARY EDUCATIONAL INSTITUTIONS.— 

8 Notwithstanding paragraph (A), the term 

9 ‘‘qualified employer’’ includes any employer 

10 which is a public institution of higher education 

11 (as defined in section 101 of the Higher Edu12 cation Act of 1965). 

13 (3) AGGREGATION RULES.—For purposes of 

14 this subsection rules similar to sections 414(b), 

15 414(c), 414(m) and 414(o) shall apply to determine 

16 when multiple entities shall be treated as a single 

17 employer, and rules with respect to predecessor and 

18 successor employers may be applied, in such manner 

19 as may be prescribed by the Secretary. 

20 (e) TRANSFERS OF FUNDS.— 

21 (1) TRANSFERS TO FEDERAL OLD-AGE AND

22 SURVIVORS INSURANCE TRUST FUND.—There are 

23 hereby appropriated to the Federal Old-Age and 

24 Survivors Trust Fund and the Federal Disability In25 surance Trust Fund established under section 201 


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1 of the Social Security Act (42 U.S.C. 401) amounts 

2 equal to the reduction in revenues to the Treasury 

3 by reason of the application of subsections (a) and 

4 (b) to employers other than those described in 

5 (e)(2). Amounts appropriated by the preceding sen6 tence shall be transferred from the general fund at 

7 such times and in such manner as to replicate to the 

8 extent possible the transfers which would have oc9 curred to such Trust Fund had such amendments 

10 not been enacted. 

11 (2) TRANSFERS TO SOCIAL SECURITY EQUIVA12 LENT BENEFIT ACCOUNT.—There are hereby appro13 priated to the Social Security Equivalent Benefit Ac14 count established under section 15A(a) of the Rail15 road Retirement Act of 1974 (45 U.S.C. 231n–1(a)) 

16 amounts equal to the reduction in revenues to the 

17 Treasury by reason of the application of subsection 

18 (a) to employers subject to the Railroad Retirement 

19 Tax. Amounts appropriated by the preceding sen20 tence shall be transferred from the general fund at 

21 such times and in such manner as to replicate to the 

22 extent possible the transfers which would have oc23 curred to such Account had such amendments not 

24 been enacted. 


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1 (f) COORDINATION WITH OTHER FEDERAL LAWS.— 

2 For purposes of applying any provision of Federal law 

3 other than the provisions of the Internal Revenue Code 

4 of 1986, the rate of tax in effect under section 3101(a) 

5 of such Code shall be determined without regard to the 

6 reduction in such rate under this section. 

7 SEC. 102. TEMPORARY TAX CREDIT FOR INCREASED PAY8 ROLL. 

9 (a) IN GENERAL.—Notwithstanding any other provi10 sion of law, each qualified employer shall be allowed, with 

11 respect to wages for services performed for such qualified 

12 employer, a payroll increase credit determined as follows: 

13 (1) With respect to the period from October 1, 

14 2011 through December 31, 2011, 6.2 percent of 

15 the excess, if any, (but not more than $12.5 million 

16 of the excess) of the wages subject to tax under sec17 tion 3111(a) of the Internal Revenue Code of 1986 

18 for such period over such wages for the cor19 responding period of 2010. 

20 (2) With respect to the period from January 1, 

21 2012 through December 31, 2012, 

22 (A) 6.2 percent of the excess, if any, (but 

23 not more than $50 million of the excess) of the 

24 wages subject to tax under section 3111(a) of 

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1 riod over such wages for calendar year 2011, 

2 minus 

3 (B) 3.1 percent of the result (but not less 

4 than zero) of subtracting from $5 million such 

5 wages for calendar year 2011. 

6 (3) In the case of a qualified employer for 

7 which the wages subject to tax under section 

8 3111(a) of the Internal Revenue Code of 1986 (a) 

9 were zero for the corresponding period of 2010 re10 ferred to in subsection (a)(1), the amount of such 

11 wages shall be deemed to be 80 percent of the 

12 amount of wages taken into account for the period 

13 from October 1, 2011 through December 31, 2011 

14 and (b) were zero for the calendar year 2011 re15 ferred to in subsection (a)(2), then the amount of 

16 such wages shall be deemed to be 80 percent of the 

17 amount of wages taken into account for 2012. 

18 (4) This subsection (a) shall only apply with re19 spect to the wages of employees performing services 

20 in a trade or business of a qualified employer or, in 

21 the case of a qualified employer exempt from tax 

22 under section 501(a) of the Internal Revenue Code 

23 of 1986, in furtherance of the activities related to 

24 the purpose or function constituting the basis of the 

25 employer’s exemption under section 501. 


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1 (b) QUALIFIED EMPLOYERS.—For purposes of this 

2 section— 

3 (1) IN GENERAL.—The term ‘‘qualified em4 ployer’’ means any employer other than the United 

5 States, any State or possession of the United States, 

6 or any political subdivision thereof, or any instru7 mentality of the foregoing. 

8 (2) TREATMENT OF EMPLOYEES OF POST-SEC9 ONDARY EDUCATIONAL INSTITUTIONS.—Notwith10 standing subparagraph (1), the term ‘‘qualified em11 ployer’’ includes any employer which is a public in12 stitution of higher education (as defined in section 

13 101 of the Higher Education Act of 1965). 

14 (c) AGGREGATION RULES.—For purposes of this sub15 section rules similar to sections 414(b), 414(c), 414(m) 

16 and 414(o) of the Internal Revenue Code of 1986 shall 

17 apply to determine when multiple entities shall be treated 

18 as a single employer, and rules with respect to predecessor 

19 and successor employers may be applied, in such manner 

20 as may be prescribed by the Secretary. 

21 (d) APPLICATION OF CREDITS.—The payroll increase 

22 credit shall be treated as a credit allowable under Subtitle 

23 C of the Internal Revenue Code of 1986 under rules pre24 scribed by the Secretary of the Treasury, provided that 

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1 section (a)(1) or subsection (a)(2) shall not exceed the 

2 amount of tax imposed on the qualified employer under 

3 section 3111(a) of such Code for the relevant period. Any 

4 income tax deduction by a qualified employer for amounts 

5 paid under section 3111(a) of such Code or similar Rail6 road Retirement Tax provisions shall be reduced by the 

7 amounts so credited. 

8 (e) TRANSFERS TO FEDERAL OLD-AGE AND SUR9 VIVORS INSURANCE TRUST FUND.—There are hereby ap10 propriated to the Federal Old-Age and Survivors Trust 

11 Fund and the Federal Disability Insurance Trust Fund 

12 established under section 201 of the Social Security Act 

13 (42 U.S.C. 401) amounts equal to the reduction in reve14 nues to the Treasury by reason of the amendments made 

15 by subsection (d). Amounts appropriated by the preceding 

16 sentence shall be transferred from the general fund at 

17 such times and in such manner as to replicate to the ex18 tent possible the transfers which would have occurred to 

19 such Trust Fund had such amendments not been enacted. 

20 (f) APPLICATION TO RAILROAD RETIREMENT

21 TAXES.—For purposes of qualified employers that are em22 ployers under section 3231(a) of the Internal Revenue 

23 Code of 1986, subsections (a)(1) and (a)(2) of this section 

24 shall apply by substituting section 3221 for section 3111, 


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1 and substituting the term ‘‘compensation’’ for ‘‘wages’’ as 

2 appropriate. 

3 Subtitle B—Other Relief for 

4 Businesses 

5 SEC. 111. EXTENSION OF TEMPORARY 100 PERCENT BONUS 

6 DEPRECIATION FOR CERTAIN BUSINESS AS7 SETS. 

8 (a) IN GENERAL.—Paragraph (5) of section 168(k) 

9 of the Internal Revenue Code is amended— 

10 (1) by striking ‘‘January 1, 2012’’ each place 

11 it appears and inserting ‘‘January 1, 2013’’, and 

12 (2) by striking ‘‘January 1, 2013’’ and insert13 ing ‘‘January 1, 2014’’. 

14 (b) CONFORMING AMENDMENT.—The heading for 

15 paragraph (5) of section 168(k) of the Internal Revenue 

16 Code is amended by striking ‘‘PRE–2012 PERIODS’’ and 

17 inserting ‘‘PRE–2013 PERIODS’’. 

18 SEC. 112. SURETY BONDS. 

19 (a) MAXIMUM BOND AMOUNT.—Section 411(a)(1) of 

20 the Small Business Investment Act of 1958 (15 U.S.C. 

21 694b(a)(1)) is amended by striking ‘‘$2,000,000’’ and in22 serting ‘‘$5,000,000’’. 

23 (b) DENIAL OF LIABILITY.—Section 411(e)(2) of the 

24 Small Business Investment Act of 1958 (15 U.S.C. 


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1 694b(e)(2)) is amended by striking ‘‘$2,000,000’’ and in2 serting ‘‘$5,000,000’’. 

3 (c) SUNSET.—The amendments made by subsections 

4 (a) and (b) of this section shall remain in effect until Sep5 tember 30, 2012. 

6 (d) FUNDING.—There is appropriated out of any 

7 money in the Treasury not otherwise appropriated, 

8 $3,000,000, to remain available until expended, for addi9 tional capital for the Surety Bond Guarantees Revolving 

10 Fund, as authorized by the Small Business Investment 

11 Act of 1958, as amended. 

12 SEC. 113. DELAY IN APPLICATION OF WITHHOLDING ON 

13 GOVERNMENT CONTRACTORS. 

14 Subsection (b) of section 511 of the Tax Increase 

15 Prevention and Reconciliation Act of 2005 is amended by 

16 striking ‘‘December 31, 2011’’ and inserting ‘‘December 

17 31, 2013’’. 


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1 TITLE II—PUTTING WORKERS 

2 BACK ON THE JOB WHILE RE3 BUILDING AND MODERNIZING 

4 AMERICA 

5 Subtitle A—Veterans Hiring 

6 Preferences 

7 SEC. 201. RETURNING HEROES AND WOUNDED WARRIORS 

8 WORK OPPORTUNITY TAX CREDITS. 

9 (a) IN GENERAL.—Paragraph (3) of section 51(b) of 

10 the Internal Revenue Code is amended by striking 

11 ‘‘($12,000 per year in the case of any individual who is 

12 a qualified veteran by reason of subsection (d)(3)(A)(ii))’’ 

13 and inserting ‘‘($12,000 per year in the case of any indi14 vidual who is a qualified veteran by reason of subsection 

15 (d)(3)(A)(ii)(I), $14,000 per year in the case of any indi16 vidual who is a qualified veteran by reason of subsection 

17 (d)(3)(A)(iv), and $24,000 per year in the case of any in18 dividual who is a qualified veteran by reason of subsection 

19 (d)(3)(A)(ii)(II))’’. 

20 (b) RETURNING HEROES TAX CREDITS.—Section 

21 51(d)(3)(A) of the Internal Revenue Code is amended by 

22 striking ‘‘or’’ at the end of paragraph (3)(A)(i), and in23 serting the following new paragraphs after paragraph 

24 (ii)— 


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1 ‘‘(iii) having aggregate periods of un2 employment during the 1-year period end3 ing on the hiring date which equal or ex4 ceed 4 weeks (but less than 6 months), or 

5 ‘‘(iv) having aggregate periods of un6 employment during the 1-year period end7 ing on the hiring date which equal or ex8 ceed 6 months.’’. 

9 (c) SIMPLIFIED CERTIFICATION.—Section 51(d) of 

10 the Internal Revenue Code is amended by adding a new 

11 paragraph 15 as follows— 

12 ‘‘(15) CREDIT ALLOWED FOR UNEMPLOYED

13 VETERANS.— 

14 ‘‘(A) IN GENERAL.—Any qualified veteran 

15 under paragraphs (3)(A)(ii)(II), (3)(A)(iii), and 

16 (3)(A)(iv) will be treated as certified by the des17 ignated local agency as having aggregate peri18 ods of unemployment if— 

19 ‘‘(i) in the case of qualified veterans 

20 under paragraphs (3)(A)(ii)(II) and 

21 (3)(A)(iv), the veteran is certified by the 

22 designated local agency as being in receipt 

23 of unemployment compensation under 

24 State or Federal law for not less than 6 


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1 months during the 1-year period ending on 

2 the hiring date; or 

3 ‘‘(ii) in the case of a qualified veteran 

4 under paragraph (3)(A)(iii), the veteran is 

5 certified by the designated local agency as 

6 being in receipt of unemployment com7 pensation under State or Federal law for 

8 not less than 4 weeks (but less than 6 

9 months) during the 1-year period ending 

10 on the hiring date. 

11 ‘‘(B) REGULATORY AUTHORITY.—The Sec12 retary in his discretion may provide alternative 

13 methods for certification.’’. 

14 (d) CREDIT MADE AVAILABLE TO TAX-EXEMPT EM15 PLOYERS IN CERTAIN CIRCUMSTANCES.—Section 52(c) of 

16 the Internal Revenue Code is amended— 

17 (1) by striking the word ‘‘No’’ at the beginning 

18 of the section and replacing it with ‘‘Except as pro19 vided in this subsection, no’’; 

20 (2) the following new paragraphs are inserted 

21 at the end of section 52(c)— 

22 ‘‘(1) IN GENERAL.—In the case of a tax-exempt 

23 employer, there shall be treated as a credit allowable 

24 under subpart C (and not allowable under subpart 

25 D) the lesser of— 


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1 ‘‘(A) the amount of the work opportunity 

2 credit determined under this subpart with re3 spect to such employer that is related to the 

4 hiring of qualified veterans described in sections 

5 51(d)(3)(A)(ii)(II), (iii) or (iv); or 

6 ‘‘(B) the amount of the payroll taxes of the 

7 employer during the calendar year in which the 

8 taxable year begins. 

9 ‘‘(2) CREDIT AMOUNT.—In calculating for tax10 exempt employers, the work opportunity credit shall 

11 be determined by substituting ‘26 percent’ for ‘40 

12 percent’ in section 51(a) and by substituting ‘16.25 

13 percent’ for ‘25 percent’ in section 51(i)(3)(A). 

14 ‘‘(3) TAX-EXEMPT EMPLOYER.—For purposes 

15 of this subpart, the term ‘tax-exempt employer’ 

16 means an employer that is— 

17 ‘‘(i) an organization described in section 

18 501(c) and exempt from taxation under section 

19 501(a), or 

20 ‘‘(ii) a public higher education institution 

21 (as defined in section 101 of the Higher Edu22 cation Act of 1965). 

23 ‘‘(4) PAYROLL TAXES.—For purposes of this 

24 subsection— 


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1 ‘‘(A) IN GENERAL.—The term ‘payroll 

2 taxes’ means— 

3 ‘‘(i) amounts required to be withheld 

4 from the employees of the tax-exempt em5 ployer under section 3401(a), 

6 ‘‘(ii) amounts required to be withheld 

7 from such employees under section 

8 3101(a), and 

9 ‘‘(iii) amounts of the taxes imposed on 

10 the tax-exempt employer under section 

11 3111(a).’’. 

12 (e) TREATMENT OF POSSESSIONS.— 

13 (1) PAYMENTS TO POSSESSIONS.— 

14 (A) MIRROR CODE POSSESSIONS.—The 

15 Secretary of the Treasury shall pay to each pos16 session of the United States with a mirror code 

17 tax system amounts equal to the loss to that 

18 possession by reason of the application of this 

19 section (other than this subsection). Such 

20 amounts shall be determined by the Secretary 

21 of the Treasury based on information provided 

22 by the government of the respective possession 

23 of the United States. 

24 (B) OTHER POSSESSIONS.—The Secretary 

25 of the Treasury shall pay to each possession of 


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1 the United States, which does not have a mirror 

2 code tax system, amounts estimated by the Sec3 retary of the Treasury as being equal to the ag4 gregate credits that would have been provided 

5 by the possession by reason of the application 

6 of this section (other than this subsection) if a 

7 mirror code tax system had been in effect in 

8 such possession. The preceding sentence shall 

9 not apply with respect to any possession of the 

10 United States unless such possession has a 

11 plan, which has been approved by the Secretary 

12 of the Treasury, under which such possession 

13 will promptly distribute such payments. 

14 (2) COORDINATION WITH CREDIT ALLOWED

15 AGAINST UNITED STATES INCOME TAXES.—No in16 crease in the credit determined under section 38(b) 

17 of the Internal Revenue Code of 1986 that is attrib18 utable to the credit provided by this section (other 

19 than this subsection (e)) shall be taken into account 

20 with respect to any person— 

21 (A) to whom a credit is allowed against 

22 taxes imposed by the possession of the United 

23 States by reason of this section for such taxable 

24 year, or 


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1 (B) who is eligible for a payment under a 

2 plan described in paragraph (1)(B) with respect 

3 to such taxable year. 

4 (3) DEFINITIONS AND SPECIAL RULES.— 

5 (A) POSSESSION OF THE UNITED

6 STATES.—For purposes of this subsection (e), 

7 the term ‘‘possession of the United States’’ in8 cludes American Samoa, the Commonwealth of 

9 the Northern Mariana Islands, the Common10 wealth of Puerto Rico, Guam, and the United 

11 States Virgin Islands. 

12 (B) MIRROR CODE TAX SYSTEM.—For pur13 poses of this subsection, the term ‘‘mirror code 

14 tax system’’ means, with respect to any posses15 sion of the United States, the income tax sys16 tem of such possession if the income tax liabil17 ity of the residents of such possession under 

18 such system is determined by reference to the 

19 income tax laws of the United States as if such 

20 possession were the United States. 

21 (C) TREATMENT OF PAYMENTS.—For pur22 poses of section 1324(b)(2) of title 31, United 

23 States Code, rules similar to the rules of section 

24 1001(b)(3)(C) of the American Recovery and 

25 Reinvestment Tax Act of 2009 shall apply. 


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

2 this section shall apply to individuals who begin work for 

3 the employer after the date of the enactment of this Act. 

4 Subtitle B—Teacher Stabilization 

5 SEC. 202. PURPOSE. 

6 The purpose of this subtitle is to provide funds to 

7 States to prevent teacher layoffs and support the creation 

8 of additional jobs in public early childhood, elementary, 

9 and secondary education in the 2011–2012 and 2012– 

10 2013 school years. 

11 SEC. 203. GRANTS FOR THE OUTLYING AREAS AND THE 

12 SECRETARY OF THE INTERIOR; AVAILABILITY 

13 OF FUNDS. 

14 (a) RESERVATION OF FUNDS.—From the amount ap15 propriated to carry out this subtitle under section 212, 

16 the Secretary— 

17 (1) shall reserve up to one-half of one percent 

18 to provide assistance to the outlying areas on the 

19 basis of their respective needs, as determined by the 

20 Secretary, for activities consistent with this part 

21 under such terms and conditions as the Secretary 

22 may determine; 

23 (2) shall reserve up to one-half of one percent 

24 to provide assistance to the Secretary of the Interior 

25 to carry out activities consistent with this part, in 


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1 schools operated or funded by the Bureau of Indian 

2 Education; and 

3 (3) may reserve up to $2,000,000 for adminis4 tration and oversight of this part, including program 

5 evaluation. 

6 (b) AVAILABILITY OF FUNDS.—Funds made avail7 able under section 212 shall remain available to the Sec8 retary until September 30, 2012. 

9 SEC. 204. STATE ALLOCATION. 

10 (a) ALLOCATION.—After reserving funds under sec11 tion 203(a), the Secretary shall allocate to the States— 

12 (1) 60 percent on the basis of their relative 

13 population of individuals aged 5 through 17; and 

14 (2) 40 percent on the basis of their relative 

15 total population. 

16 (b) AWARDS.—From the funds allocated under sub17 section (a), the Secretary shall make a grant to the Gov18 ernor of each State who submits an approvable application 

19 under section 214. 

20 (c) ALTERNATE DISTRIBUTION OF FUNDS.— 

21 (1) If, within 30 days after the date of enact22 ment of this Act, a Governor has not submitted an 

23 approvable application to the Secretary, the Sec24 retary shall, consistent with paragraph (2), provide 

25 for funds allocated to that State to be distributed to 


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1 another entity or other entities in the State for the 

2 support of early childhood, elementary, and sec3 ondary education, under such terms and conditions 

4 as the Secretary may establish. 

5 (2) MAINTENANCE OF EFFORT.— 

6 (A) GOVERNOR ASSURANCE.—The Sec7 retary shall not allocate funds under paragraph 

8 (1) unless the Governor of the State provides 

9 an assurance to the Secretary that the State 

10 will for fiscal years 2012 and 2013 meet the re11 quirements of section 209. 

12 (B) Notwithstanding subparagraph (A), 

13 the Secretary may allocate up to 50 percent of 

14 the funds that are available to the State under 

15 paragraph (1) to another entity or entities in 

16 the State, provided that the State educational 

17 agency submits data to the Secretary dem18 onstrating that the State will for fiscal year 

19 2012 meet the requirements of section 209(a) 

20 or the Secretary otherwise determines that the 

21 State will meet those requirements, or such 

22 comparable requirements as the Secretary may 

23 establish, for that year. 


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1 (3) REQUIREMENTS.—An entity that receives 

2 funds under paragraph (1) shall use those funds in 

3 accordance with the requirements of this subtitle. 

4 (d) REALLOCATION.—If a State does not receive 

5 funding under this subtitle or only receives a portion of 

6 its allocation under subsection (c), the Secretary shall re7 allocate the State’s entire allocation or the remaining por8 tion of its allocation, as the case may be, to the remaining 

9 States in accordance with subsection (a). 

10 SEC. 205. STATE APPLICATION. 

11 The Governor of a State desiring to receive a grant 

12 under this subtitle shall submit an application to the Sec13 retary within 30 days of the date of enactment of this Act, 

14 in such manner, and containing such information as the 

15 Secretary may reasonably require to determine the State’s 

16 compliance with applicable provisions of law. 

17 SEC. 206. STATE RESERVATION AND RESPONSIBILITIES. 

18 (a) RESERVATION.—Each State receiving a grant 

19 under section 204(b) may reserve— 

20 (1) not more than 10 percent of the grant 

21 funds for awards to State-funded early learning pro22 grams; and 

23 (2) not more than 2 percent of the grant funds 

24 for the administrative costs of carrying out its re25 sponsibilities under this subtitle. 


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1 (b) STATE RESPONSIBILITIES.—Each State receiving 

2 a grant under this subtitle shall, after reserving any funds 

3 under subsection (a)— 

4 (1) use the remaining grant funds only for 

5 awards to local educational agencies for the support 

6 of early childhood, elementary, and secondary edu7 cation; and 

8 (2) distribute those funds, through subgrants, 

9 to its local educational agencies by distributing— 

10 (A) 60 percent on the basis of the local 

11 educational agencies’ relative shares of enroll12 ment; and 

13 (B) 40 percent on the basis of the local 

14 educational agencies’ relative shares of funds 

15 received under part A of title I of the Elemen16 tary and Secondary Education Act of 1965 for 

17 fiscal year 2011; and 

18 (3) make those funds available to local edu19 cational agencies no later than 100 days after receiv20 ing a grant from the Secretary. 

21 (c) PROHIBITIONS.—A State shall not use funds re22 ceived under this subtitle to directly or indirectly— 

23 (1) establish, restore, or supplement a rainy-day 

24 fund; 


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1 (2) supplant State funds in a manner that has 

2 the effect of establishing, restoring, or 

3 supplementing a rainy-day fund; 

4 (3) reduce or retire debt obligations incurred by 

5 the State; or 

6 (4) supplant State funds in a manner that has 

7 the effect of reducing or retiring debt obligations in8 curred by the State. 

9 SEC. 207. LOCAL EDUCATIONAL AGENCIES. 

10 Each local educational agency that receives a 

11 subgrant under this subtitle— 

12 (1) shall use the subgrant funds only for com13 pensation and benefits and other expenses, such as 

14 support services, necessary to retain existing employ15 ees, recall or rehire former employees, or hire new 

16 employees to provide early childhood, elementary, or 

17 secondary educational and related services; 

18 (2) shall obligate those funds no later than Sep19 tember 30, 2013; and 

20 (3) may not use those funds for general admin21 istrative expenses or for other support services or ex22 penditures, as those terms are defined by the Na23 tional Center for Education Statistics in the Com24 mon Core of Data, as of the date of enactment of 

25 this Act. 


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1 SEC. 208. EARLY LEARNING. 

2 Each State-funded early learning program that re3 ceives funds under this subtitle shall— 

4 (1) use those funds only for compensation, ben5 efits, and other expenses, such as support services, 

6 necessary to retain early childhood educators, recall 

7 or rehire former early childhood educators, or hire 

8 new early childhood educators to provide early learn9 ing services; and 

10 (2) obligate those funds no later than Sep11 tember 30, 2013. 

12 SEC. 209. MAINTENANCE OF EFFORT. 

13 (a) The Secretary shall not allocate funds to a State 

14 under this subtitle unless the State provides an assurance 

15 to the Secretary that— 

16 (1) for State fiscal year 2012— 

17 (A) the State will maintain State support 

18 for early childhood, elementary, and secondary 

19 education (in the aggregate or on the basis of 

20 expenditure per pupil) and for public institu21 tions of higher education (not including support 

22 for capital projects or for research and develop23 ment or tuition and fees paid by students) at 

24 not less than the level of such support for each 

25 of the two categories for State fiscal year 2011; 

26 or 


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1 (B) the State will maintain State support 

2 for early childhood, elementary, and secondary 

3 education and for public institutions of higher 

4 education (not including support for capital 

5 projects or for research and development or tui6 tion and fees paid by students) at a percentage 

7 of the total revenues available to the State that 

8 is equal to or greater than the percentage pro9 vided for State fiscal year 2011; and 

10 (2) for State fiscal year 2013— 

11 (A) the State will maintain State support 

12 for early childhood, elementary, and secondary 

13 education (in the aggregate or on the basis of 

14 expenditure per pupil) and for public institu15 tions of higher education (not including support 

16 for capital projects or for research and develop17 ment or tuition and fees paid by students) at 

18 not less than the level of such support for each 

19 of the two categories for State fiscal year 2012; 

20 or 

21 (B) the State will maintain State support 

22 for early childhood, elementary, and secondary 

23 education and for public institutions of higher 

24 education (not including support for capital 

25 projects or for research and development or tuiVerDate Mar 15 2010 01:20 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 tion and fees paid by students) at a percentage 

2 of the total revenues available to the State that 

3 is equal to or greater than the percentage pro4 vided for State fiscal year 2012. 

5 (b) WAIVER.—The Secretary may waive the require6 ments of this section if the Secretary determines that a 

7 waiver would be equitable due to— 

8 (1) exceptional or uncontrollable circumstances, 

9 such as a natural disaster; or 

10 (2) a precipitous decline in the financial re11 sources of the State. 

12 SEC. 210. REPORTING. 

13 Each State that receives a grant under this subtitle 

14 shall submit, on an annual basis, a report to the Secretary 

15 that contains— 

16 (1) a description of how funds received under 

17 this part were expended or obligated; and 

18 (2) an estimate of the number of jobs supported 

19 by the State using funds received under this subtitle. 

20 SEC. 211. DEFINITIONS. 

21 (a) Except as otherwise provided, the terms ‘‘local 

22 educational agency’’, ‘‘outlying area’’, ‘‘Secretary’’, 

23 ‘‘State’’, and ‘‘State educational agency’’ have the mean24 ings given those terms in section 9101 of the Elementary 

25 and Secondary Education Act of 1965 (20 U.S.C. 7801). 


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1 (b) The term ‘‘State’’ does not include an outlying 

2 area. 

3 (c) The term ‘‘early childhood educator’’ means an 

4 individual who— 

5 (1) works directly with children in a State-fund6 ed early learning program in a low-income commu7 nity; 

8 (2) is involved directly in the care, development, 

9 and education of infants, toddlers, or young children 

10 age five and under; and 

11 (3) has completed a baccalaureate or advanced 

12 degree in early childhood development or early child13 hood education, or in a field related to early child14 hood education. 

15 (d) The term ‘‘State-funded early learning program’’ 

16 means a program that provides educational services to 

17 children from birth to kindergarten entry and receives 

18 funding from the State. 

19 SEC. 212. AUTHORIZATION OF APPROPRIATIONS. 

20 There are authorized to be appropriated, and there 

21 are appropriated, $30,000,000,000 to carry out this sub22 title for fiscal year 2012. 


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1 Subtitle C—First Responder 

2 Stabilization 

3 SEC. 213. PURPOSE. 

4 The purpose of this subtitle is to provide funds to 

5 States and localities to prevent layoffs of, and support the 

6 creation of additional jobs for, law enforcement officers 

7 and other first responders. 

8 SEC. 214. GRANT PROGRAM. 

9 The Attorney General shall carry out a competitive 

10 grant program pursuant to section 1701 of title I of the 

11 Omnibus Crime Control and Safe Streets Act of 1968 (42 

12 U.S.C. 3796dd) for hiring, rehiring, or retention of career 

13 law enforcement officers under part Q of such title. Grants 

14 awarded under this section shall not be subject to sub15 sections (g) or (i) of section 1701 or to section 1704 of 

16 such Act (42 U.S.C. 3796dd–3(c)). 

17 SEC. 215. APPROPRIATIONS. 

18 There are hereby appropriated to the Community 

19 Oriented Policing Stabilization Fund out of any money in 

20 the Treasury not otherwise obligated, $5,000,000,000, to 

21 remain available until September 30, 2012, of which 

22 $4,000,000,000 shall be for the Attorney General to carry 

23 out the competitive grant program under Section 214; and 

24 of which $1,000,000,000 shall be transferred by the Attor25 ney General to a First Responder Stabilization Fund from 


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1 which the Secretary of Homeland Security shall make 

2 competitive grants for hiring, rehiring, or retention pursu3 ant to the Federal Fire Prevention and Control Act of 

4 1974 (15 U.S.C. 2201 et seq.), to carry out section 34 

5 of such Act (15 U.S.C. 2229a). In making such grants, 

6 the Secretary may grant waivers from the requirements 

7 in subsections (a)(1)(A), (a)(1)(B), (a)(1)(E), (c)(1), 

8 (c)(2), and (c)(4)(A) of section 34. Of the amounts appro9 priated herein, not to exceed $8,000,000 shall be for ad10 ministrative costs of the Attorney General, and not to ex11 ceed $2,000,000 shall be for administrative costs of the 

12 Secretary of Homeland Security. 

13 Subtitle D—School Modernization 

14 PART I—ELEMENTARY AND SECONDARY 

15 SCHOOLS 

16 SEC. 221. PURPOSE. 

17 The purpose of this part is to provide assistance for 

18 the modernization, renovation, and repair of elementary 

19 and secondary school buildings in public school districts 

20 across America in order to support the achievement of im21 proved educational outcomes in those schools. 

22 SEC. 222. AUTHORIZATION OF APPROPRIATIONS. 

23 There are authorized to be appropriated, and there 

24 are appropriated, $25,000,000,000 to carry out this part, 


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1 which shall be available for obligation by the Secretary 

2 until September 30, 2012. 

3 SEC. 223. ALLOCATION OF FUNDS. 

4 (a) RESERVATIONS.—Of the amount made available 

5 to carry out this part, the Secretary shall reserve— 

6 (1) one-half of one percent for the Secretary of 

7 the Interior to carry out modernization, renovation, 

8 and repair activities described in section 226 in 

9 schools operated or funded by the Bureau of Indian 

10 Education; 

11 (2) one-half of one percent to make grants to 

12 the outlying areas for modernization, renovation, 

13 and repair activities described in section 226; and 

14 (3) such funds as the Secretary determines are 

15 needed to conduct a survey, by the National Center 

16 for Education Statistics, of the school construction, 

17 modernization, renovation, and repair needs of the 

18 public schools of the United States. 

19 (b) STATE ALLOCATION.—After reserving funds 

20 under subsection (a), the Secretary shall allocate the re21 maining amount among the States in proportion to their 

22 respective allocations under part A of title I of the Ele23 mentary and Secondary Education Act (ESEA) (20 

24 U.S.C. 6311 et seq.) for fiscal year 2011, except that— 


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1 (1) the Secretary shall allocate 40 percent of 

2 such remaining amount to the 100 local educational 

3 agencies with the largest numbers of children aged 

4 5–17 living in poverty, as determined using the most 

5 recent data available from the Department of Com6 merce that are satisfactory to the Secretary, in pro7 portion to those agencies’ respective allocations 

8 under part A of title I of the ESEA for fiscal year 

9 2011; and 

10 (2) the allocation to any State shall be reduced 

11 by the aggregate amount of the allocations under 

12 paragraph (1) to local educational agencies in that 

13 State. 

14 (c) REMAINING ALLOCATION.— 

15 (1) If a State does not apply for its allocation 

16 (or applies for less than the full allocation for which 

17 it is eligible) or does not use that allocation in a 

18 timely manner, the Secretary may— 

19 (A) reallocate all or a portion of that allo20 cation to the other States in accordance with 

21 subsection (b); or 

22 (B) use all or a portion of that allocation 

23 to make direct allocations to local educational 

24 agencies within the State based on their respec25 tive allocations under part A of title I of the 


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1 ESEA for fiscal year 2011 or such other meth2 od as the Secretary may determine. 

3 (2) If a local educational agency does not apply 

4 for its allocation under subsection (b)(1), applies for 

5 less than the full allocation for which it is eligible, 

6 or does not use that allocation in a timely manner, 

7 the Secretary may reallocate all or a portion of its 

8 allocation to the State in which that agency is lo9 cated. 

10 SEC. 224. STATE USE OF FUNDS. 

11 (a) RESERVATION.—Each State that receives a grant 

12 under this part may reserve not more than one percent 

13 of the State’s allocation under section 223(b) for the pur14 pose of administering the grant, except that no State may 

15 reserve more than $750,000 for this purpose. 

16 (b) FUNDS TO LOCAL EDUCATIONAL AGENCIES.— 

17 (1) FORMULA SUBGRANTS.—From the grant 

18 funds that are not reserved under subsection (a), a 

19 State shall allocate at least 50 percent to local edu20 cational agencies, including charter schools that are 

21 local educational agencies, that did not receive funds 

22 under section 223(b)(1) from the Secretary, in ac23 cordance with their respective allocations under part 

24 A of title I of the ESEA for fiscal year 2011, except 


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1 that no such local educational agency shall receive 

2 less than $10,000. 

3 (2) ADDITIONAL SUBGRANTS.—The State shall 

4 use any funds remaining, after reserving funds 

5 under subsection (a) and allocating funds under 

6 paragraph (1), for subgrants to local educational 

7 agencies that did not receive funds under section 

8 223(b)(1), including charter schools that are local 

9 educational agencies, to support modernization, ren10 ovation, and repair projects that the State deter11 mines, using objective criteria, are most needed in 

12 the State, with priority given to projects in rural 

13 local educational agencies. 

14 (c) REMAINING FUNDS.—If a local educational agen15 cy does not apply for an allocation under subsection 

16 (b)(1), applies for less than its full allocation, or fails to 

17 use that allocation in a timely manner, the State may re18 allocate any unused portion to other local educational 

19 agencies in accordance with subsection (b). 

20 SEC. 225. STATE AND LOCAL APPLICATIONS. 

21 (a) STATE APPLICATION.—A State that desires to re22 ceive a grant under this part shall submit an application 

23 to the Secretary at such time, in such manner, and con24 taining such information and assurances as the Secretary 

25 may require, which shall include— 


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1 (1) an identification of the State agency or enti2 ty that will administer the program; and 

3 (2) the State’s process for determining how the 

4 grant funds will be distributed and administered, in5 cluding— 

6 (A) how the State will determine the cri7 teria and priorities in making subgrants under 

8 section 224(b)(2); 

9 (B) any additional criteria the State will 

10 use in determining which projects it will fund 

11 under that section; 

12 (C) a description of how the State will con13 sider— 

14 (i) the needs of local educational 

15 agencies for assistance under this part; 

16 (ii) the impact of potential projects on 

17 job creation in the State; 

18 (iii) the fiscal capacity of local edu19 cational agencies applying for assistance; 

20 (iv) the percentage of children in 

21 those local educational agencies who are 

22 from low-income families; and 

23 (v) the potential for leveraging assist24 ance provided by this program through 

25 matching or other financing mechanisms; 


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1 (D) a description of how the State will en2 sure that the local educational agencies receiv3 ing subgrants meet the requirements of this 

4 part; 

5 (E) a description of how the State will en6 sure that the State and its local educational 

7 agencies meet the deadlines established in sec8 tion 228; 

9 (F) a description of how the State will give 

10 priority to the use of green practices that are 

11 certified, verified, or consistent with any appli12 cable provisions of— 

13 (i) the LEED Green Building Rating 

14 System; 

15 (ii) Energy Star; 

16 (iii) the CHPS Criteria; 

17 (iv) Green Globes; or 

18 (v) an equivalent program adopted by 

19 the State or another jurisdiction with au20 thority over the local educational agency; 

21 (G) a description of the steps that the 

22 State will take to ensure that local educational 

23 agencies receiving subgrants will adequately 

24 maintain any facilities that are modernized, 


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1 renovated, or repaired with subgrant funds 

2 under this part; and 

3 (H) such additional information and assur4 ances as the Secretary may require. 

5 (b) LOCAL APPLICATION.—A local educational agen6 cy that is eligible under section 223(b)(1) that desires to 

7 receive a grant under this part shall submit an application 

8 to the Secretary at such time, in such manner, and con9 taining such information and assurances as the Secretary 

10 may require, which shall include— 

11 (1) a description of how the local educational 

12 agency will meet the deadlines and requirements of 

13 this part; 

14 (2) a description of the steps that the local edu15 cational agency will take to adequately maintain any 

16 facilities that are modernized, renovated, or repaired 

17 with funds under this part; and 

18 (3) such additional information and assurances 

19 as the Secretary may require. 

20 SEC. 226. USE OF FUNDS. 

21 (a) IN GENERAL.—Funds awarded to local edu22 cational agencies under this part shall be used only for 

23 either or both of the following modernization, renovation, 

24 or repair activities in facilities that are used for elemenVerDate Mar 15 2010 01:20 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 tary or secondary education or for early learning pro2 grams: 

3 (1) Direct payments for school modernization, 

4 renovation, and repair. 

5 (2) To pay interest on bonds or payments for 

6 other financing instruments that are newly issued 

7 for the purpose of financing school modernization, 

8 renovation, and repair. 

9 (b) SUPPLEMENT, NOT SUPPLANT.—Funds made 

10 available under this part shall be used to supplement, and 

11 not supplant, other Federal, State, and local funds that 

12 would otherwise be expended to modernize, renovate, or 

13 repair eligible school facilities. 

14 (c) PROHIBITION.—Funds awarded to local edu15 cational agencies under this part may not be used for— 

16 (1) new construction; 

17 (2) payment of routine maintenance costs; or 

18 (3) modernization, renovation, or repair of sta19 diums or other facilities primarily used for athletic 

20 contests or exhibitions or other events for which ad21 mission is charged to the general public. 

22 SEC. 227. PRIVATE SCHOOLS. 

23 (a) IN GENERAL.—Section 9501 of the ESEA (20 

24 U.S.C. 7881) shall apply to this part in the same manner 

25 as it applies to activities under that Act, except that— 


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1 (1) section 9501 shall not apply with respect to 

2 the title to any real property modernized, renovated, 

3 or repaired with assistance provided under this sec4 tion; 

5 (2) the term ‘‘services’’, as used in section 9501 

6 with respect to funds under this part, shall be pro7 vided only to private, nonprofit elementary or sec8 ondary schools with a rate of child poverty of at 

9 least 40 percent and may include only— 

10 (A) modifications of school facilities nec11 essary to meet the standards applicable to pub12 lic schools under the Americans with Disabil13 ities Act of 1990 (42 U.S.C. 12101 et seq.); 

14 (B) modifications of school facilities nec15 essary to meet the standards applicable to pub16 lic schools under section 504 of the Rehabilita17 tion Act of 1973 (29 U.S.C. 794); and 

18 (C) asbestos or polychlorinated biphenyls 

19 abatement or removal from school facilities; and 

20 (3) expenditures for services provided using 

21 funds made available under section 226 shall be con22 sidered equal for purposes of section 9501(a)(4) of 

23 the ESEA if the per-pupil expenditures for services 

24 described in paragraph (2) for students enrolled in 

25 private nonprofit elementary and secondary schools 


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1 that have child-poverty rates of at least 40 percent 

2 are consistent with the per-pupil expenditures under 

3 this subpart for children enrolled in the public 

4 schools of the local educational agency receiving 

5 funds under this subpart. 

6 (b) REMAINING FUNDS.—If the expenditure for serv7 ices described in paragraph (2) is less than the amount 

8 calculated under paragraph (3) because of insufficient 

9 need for those services, the remainder shall be available 

10 to the local educational agency for modernization, renova11 tion, and repair of its school facilities. 

12 (c) APPLICATION.—If any provision of this section, 

13 or the application thereof, to any person or circumstance 

14 is judicially determined to be invalid, the remainder of the 

15 section and the application to other persons or cir16 cumstances shall not be affected thereby. 

17 SEC. 228. ADDITIONAL PROVISIONS. 

18 (a) Funds appropriated under section 222 shall be 

19 available for obligation by local educational agencies re20 ceiving grants from the Secretary under section 223(b)(1), 

21 by States reserving funds under section 224(a), and by 

22 local educational agencies receiving subgrants under sec23 tion 224(b)(1) only during the period that ends 24 months 

24 after the date of enactment of this Act. 


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1 (b) Funds appropriated under section 222 shall be 

2 available for obligation by local educational agencies re3 ceiving subgrants under section 224(b)(2) only during the 

4 period that ends 36 months after the date of enactment 

5 of this Act. 

6 (c) Section 439 of the General Education Provisions 

7 Act (20 U.S.C. 1232b) shall apply to funds available 

8 under this part. 

9 (d) For purposes of section 223(b)(1), Hawaii, the 

10 District of Columbia, and the Commonwealth of Puerto 

11 Rico are not local educational agencies. 

12 PART II—COMMUNITY COLLEGE 

13 MODERNIZATION 

14 SEC. 229. FEDERAL ASSISTANCE FOR COMMUNITY COL15 LEGE MODERNIZATION. 

16 (a) IN GENERAL.— 

17 (1) GRANT PROGRAM.—From the amounts 

18 made available under subsection (h), the Secretary 

19 shall award grants to States to modernize, renovate, 

20 or repair existing facilities at community colleges. 

21 (2) ALLOCATION.— 

22 (A) RESERVATIONS.—Of the amount made 

23 available to carry out this section, the Secretary 

24 shall reserve— 


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1 (i) up to 0.25 percent for grants to in2 stitutions that are eligible under section 

3 316 of the Higher Education Act of 1965 

4 (20 U.S.C. 1059c) to provide for mod5 ernization, renovation, and repair activities 

6 described in this section; and 

7 (ii) up to 0.25 percent for grants to 

8 the outlying areas to provide for mod9 ernization, renovation, and repair activities 

10 described in this section. 

11 (B) ALLOCATION.—After reserving funds 

12 under subparagraph (A), the Secretary shall al13 locate to each State that has an application ap14 proved by the Secretary an amount that bears 

15 the same relation to any remaining funds as the 

16 total number of students in such State who are 

17 enrolled in institutions described in section 

18 230(b)(1)(A) plus the number of students who 

19 are estimated to be enrolled in and pursuing a 

20 degree or certificate that is not a bachelor’s, 

21 master’s, professional, or other advanced degree 

22 in institutions described in section 

23 230(b)(1)(B), based on the proportion of de24 grees or certificates awarded by such institu25 tions that are not bachelor’s, master’s, profesVerDate Mar 15 2010 01:20 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 sional, or other advanced degrees, as reported 

2 to the Integrated Postsecondary Data System 

3 bears to the estimated total number of such 

4 students in all States, except that no State shall 

5 receive less than $2,500,000. 

6 (C) REALLOCATION.—Amounts not allo7 cated under this section to a State because the 

8 State either did not submit an application 

9 under subsection (b), the State submitted an 

10 application that the Secretary determined did 

11 not meet the requirements of such subsection, 

12 or the State cannot demonstrate to the Sec13 retary a sufficient demand for projects to war14 rant the full allocation of the funds, shall be 

15 proportionately reallocated under this para16 graph to the other States that have a dem17 onstrated need for, and are receiving, alloca18 tions under this section. 

19 (D) STATE ADMINISTRATION.—A State 

20 that receives a grant under this section may use 

21 not more than one percent of that grant to ad22 minister it, except that no State may use more 

23 than $750,000 of its grant for this purpose. 

24 (3) SUPPLEMENT, NOT SUPPLANT.—Funds 

25 made available under this section shall be used to 


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1 supplement, and not supplant, other Federal, State, 

2 and local funds that would otherwise be expended to 

3 modernize, renovate, or repair existing community 

4 college facilities. 

5 (b) APPLICATION.—A State that desires to receive a 

6 grant under this section shall submit an application to the 

7 Secretary at such time, in such manner, and containing 

8 such information and assurances as the Secretary may re9 quire. Such application shall include a description of— 

10 (1) how the funds provided under this section 

11 will improve instruction at community colleges in the 

12 State and will improve the ability of those colleges 

13 to educate and train students to meet the workforce 

14 needs of employers in the State; and 

15 (2) the projected start of each project and the 

16 estimated number of persons to be employed in the 

17 project. 

18 (c) PROHIBITED USES OF FUNDS.— 

19 (1) IN GENERAL.—No funds awarded under 

20 this section may be used for— 

21 (i) payment of routine maintenance costs; 

22 (ii) construction, modernization, renova23 tion, or repair of stadiums or other facilities 

24 primarily used for athletic contests or exhibiVerDate Mar 15 2010 01:20 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 tions or other events for which admission is 

2 charged to the general public; or 

3 (iii) construction, modernization, renova4 tion, or repair of facilities— 

5 (I) used for sectarian instruction, reli6 gious worship, or a school or department 

7 of divinity; or 

8 (II) in which a substantial portion of 

9 the functions of the facilities are subsumed 

10 in a religious mission. 

11 (2) FOUR-YEAR INSTITUTIONS.—No funds 

12 awarded to a four-year public institution of higher 

13 education under this section may be used for any fa14 cility, service, or program of the institution that is 

15 not available to students who are pursuing a degree 

16 or certificate that is not a bachelor’s, master’s, pro17 fessional, or other advanced degree. 

18 (d) GREEN PROJECTS.—In providing assistance to 

19 community college projects under this section, the State 

20 shall consider the extent to which a community college’s 

21 project involves activities that are certified, verified, or 

22 consistent with the applicable provisions of— 

23 (1) the LEED Green Building Rating System; 

24 (2) Energy Star; 

25 (3) the CHPS Criteria, as applicable; 


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1 (4) Green Globes; or 

2 (5) an equivalent program adopted by the State 

3 or the State higher education agency that includes 

4 a verifiable method to demonstrate compliance with 

5 such program. 

6 (e) APPLICATION OF GEPA.—Section 439 of the 

7 General Education Provisions Act such Act (20 U.S.C. 

8 1232b) shall apply to funds available under this subtitle. 

9 (f) REPORTS BY THE STATES.—Each State that re10 ceives a grant under this section shall, not later than Sep11 tember 30, 2012, and annually thereafter for each fiscal 

12 year in which the State expends funds received under this 

13 section, submit to the Secretary a report that includes— 

14 (1) a description of the projects for which the 

15 grant was, or will be, used; 

16 (2) a description of the amount and nature of 

17 the assistance provided to each community college 

18 under this section; and 

19 (3) the number of jobs created by the projects 

20 funded under this section. 

21 (g) REPORT BY THE SECRETARY.—The Secretary 

22 shall submit to the authorizing committees (as defined in 

23 section 103 of the Higher Education Act of 1965; 20 

24 U.S.C. 1003) an annual report on the grants made under 


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1 this section, including the information described in sub2 section (f). 

3 (h) AVAILABILITY OF FUNDS.— 

4 (1) There are authorized to be appropriated, 

5 and there are appropriated, to carry out this section 

6 (in addition to any other amounts appropriated to 

7 carry out this section and out of any money in the 

8 Treasury not otherwise appropriated), 

9 $5,000,000,000 for fiscal year 2012. 

10 (2) Funds appropriated under this subsection 

11 shall be available for obligation by community col12 leges only during the period that ends 36 months 

13 after the date of enactment of this Act. 

14 PART III—GENERAL PROVISIONS 

15 SEC. 230. DEFINITIONS. 

16 (a) ESEA TERMS.—Except as otherwise provided, in 

17 this subtitle, the terms ‘‘local educational agency’’, ‘‘Sec18 retary’’, and ‘‘State educational agency’’ have the mean19 ings given those terms in section 9101 of the Elementary 

20 and Secondary Education Act of 1965 (20 U.S.C. 7801). 

21 (b) ADDITIONAL DEFINITIONS.—The following defi22 nitions apply to this title: 

23 (1) COMMUNITY COLLEGE.—The term ‘‘commu24 nity college’’ means— 


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1 (A) a junior or community college, as that 

2 term is defined in section 312(f) of the Higher 

3 Education Act of 1965 (20 U.S.C. 1058(f)); or 

4 (B) a four-year public institution of higher 

5 education (as defined in section 101 of the 

6 Higher Education Act of 1965 (20 U.S.C. 

7 1001)) that awards a significant number of de8 grees and certificates, as determined by the 

9 Secretary, that are not— 

10 (i) bachelor’s degrees (or an equiva11 lent); or 

12 (ii) master’s, professional, or other 

13 advanced degrees. 

14 (2) CHPS CRITERIA.—The term ‘‘CHPS Cri15 teria’’ means the green building rating program de16 veloped by the Collaborative for High Performance 

17 Schools. 

18 (3) ENERGY STAR.—The term ‘‘Energy Star’’ 

19 means the Energy Star program of the United 

20 States Department of Energy and the United States 

21 Environmental Protection Agency. 

22 (4) GREEN GLOBES.—The term ‘‘Green 

23 Globes’’ means the Green Building Initiative envi24 ronmental design and rating system referred to as 

25 Green Globes. 


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1 (5) LEED GREEN BUILDING RATING SYS2 TEM.—The term ‘‘LEED Green Building Rating 

3 System’’ means the United States Green Building 

4 Council Leadership in Energy and Environmental 

5 Design green building rating standard referred to as 

6 the LEED Green Building Rating System. 

7 (6) MODERNIZATION, RENOVATION, AND RE8 PAIR.—The term ‘‘modernization, renovation and re9 pair’’ means— 

10 (A) comprehensive assessments of facilities 

11 to identify— 

12 (i) facility conditions or deficiencies 

13 that could adversely affect student and 

14 staff health, safety, performance, or pro15 ductivity or energy, water, or materials ef16 ficiency; and 

17 (ii) needed facility improvements; 

18 (B) repairing, replacing, or installing roofs 

19 (which may be extensive, intensive, or semi-in20 tensive ‘‘green’’ roofs); electrical wiring; water 

21 supply and plumbing systems, sewage systems, 

22 storm water runoff systems, lighting systems 

23 (or components of such systems); or building 

24 envelope, windows, ceilings, flooring, or doors, 

25 including security doors; 


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1 (C) repairing, replacing, or installing heat2 ing, ventilation, or air conditioning systems, or 

3 components of those systems (including insula4 tion), including by conducting indoor air quality 

5 assessments; 

6 (D) compliance with fire, health, seismic, 

7 and safety codes, including professional installa8 tion of fire and life safety alarms, and mod9 ernizations, renovations, and repairs that en10 sure that facilities are prepared for such emer11 gencies as acts of terrorism, campus violence, 

12 and natural disasters, such as improving build13 ing infrastructure to accommodate security 

14 measures and installing or upgrading tech15 nology to ensure that a school or incident is 

16 able to respond to such emergencies; 

17 (E) making modifications necessary to 

18 make educational facilities accessible in compli19 ance with the Americans with Disabilities Act 

20 of 1990 (42 U.S.C. 12101 et seq.) and section 

21 504 of the Rehabilitation Act of 1973 (29 

22 U.S.C. 794), except that such modifications 

23 shall not be the primary use of a grant or 

24 subgrant; 


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1 (F) abatement, removal, or interim con2 trols of asbestos, polychlorinated biphenyls, 

3 mold, mildew, or lead-based hazards, including 

4 lead-based paint hazards; 

5 (G) retrofitting necessary to increase en6 ergy efficiency; 

7 (H) measures, such as selection and sub8 stitution of products and materials, and imple9 mentation of improved maintenance and oper10 ational procedures, such as ‘‘green cleaning’’ 

11 programs, to reduce or eliminate potential stu12 dent or staff exposure to— 

13 (i) volatile organic compounds; 

14 (ii) particles such as dust and pollens; 

15 or 

16 (iii) combustion gases; 

17 (I) modernization, renovation, or repair 

18 necessary to reduce the consumption of coal, 

19 electricity, land, natural gas, oil, or water; 

20 (J) installation or upgrading of educational 

21 technology infrastructure; 

22 (K) installation or upgrading of renewable 

23 energy generation and heating systems, includ24 ing solar, photovoltaic, wind, biomass (including 

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1 ergy, solar-thermal, and geothermal systems, 

2 and energy audits; 

3 (L) modernization, renovation, or repair 

4 activities related to energy efficiency and renew5 able energy, and improvements to building in6 frastructures to accommodate bicycle and pe7 destrian access; 

8 (M) ground improvements, storm water 

9 management, landscaping and environmental 

10 clean-up when necessary; 

11 (N) other modernization, renovation, or re12 pair to— 

13 (i) improve teachers’ ability to teach 

14 and students’ ability to learn; 

15 (ii) ensure the health and safety of 

16 students and staff; or 

17 (iii) improve classroom, laboratory, 

18 and vocational facilities in order to en19 hance the quality of science, technology, 

20 engineering, and mathematics instruction; 

21 and 

22 (O) required environmental remediation re23 lated to facilities modernization, renovation, or 

24 repair activities described in subparagraphs (A) 

25 through (L). 


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1 (7) OUTLYING AREA.—The term ‘‘outlying 

2 area’’ means the U.S. Virgin Islands, Guam, Amer3 ican Samoa, the Commonwealth of the Northern 

4 Mariana Islands, and the Republic of Palau. 

5 (8) STATE.—The term ‘‘State’’ means each of 

6 the 50 States of the United States, the Common7 wealth of Puerto Rico, and the District of Columbia. 

8 SEC. 231. BUY AMERICAN. 

9 Section 1605 of division A of the American Recovery 

10 and Reinvestment Act of 2009 (Public Law 111–5) applies 

11 to funds made available under this title. 

12 Subtitle E—Immediate Transpor13 tation Infrastrucure Invest14 ments 

15 SEC. 241. IMMEDIATE TRANSPORTATION INFRASTRUCTURE 

16 INVESTMENTS. 

17 (a) GRANTS-IN-AID FOR AIRPORTS.— 

18 (1) IN GENERAL.—There is made available to 

19 the Secretary of Transportation $2,000,000,000 to 

20 carry out airport improvement under subchapter I of 

21 chapter 471 and subchapter I of chapter 475 of title 

22 49, United States Code. 

23 (2) FEDERAL SHARE; LIMITATION ON OBLIGA24 TIONS.—The Federal share payable of the costs for 

25 which a grant is made under this subsection, shall 


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1 be 100 percent. The amount made available under 

2 this subsection shall not be subject to any limitation 

3 on obligations for the Grants-In-Aid for Airports 

4 program set forth in any Act or in title 49, United 

5 States Code. 

6 (3) DISTRIBUTION OF FUNDS.—Funds provided 

7 to the Secretary under this subsection shall not be 

8 subject to apportionment formulas, special appor9 tionment categories, or minimum percentages under 

10 chapter 471 of such title. 

11 (4) AVAILABILITY.—The amounts made avail12 able under this subsection shall be available for obli13 gation until the date that is two years after the date 

14 of the enactment of this Act. The Secretary shall ob15 ligate amounts totaling not less than 50 percent of 

16 the funds made available within one year of enact17 ment and obligate remaining amounts not later than 

18 two years after enactment. 

19 (5) ADMINISTRATIVE EXPENSES.—Of the funds 

20 made available under this subsection, 0.3 percent 

21 shall be available to the Secretary for administrative 

22 expenses, shall remain available for obligation until 

23 September 30, 2015, and may be used in conjunc24 tion with funds otherwise provided for the adminis25 tration of the Grants-In-Aid for Airports program. 


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1 (b) NEXT GENERATION AIR TRAFFIC CONTROL AD2 VANCEMENTS.— 

3 (1) IN GENERAL.—There is made available to 

4 the Secretary of Transportation $1,000,000,000 for 

5 necessary Federal Aviation Administration capital, 

6 research and operating costs to carry out Next Gen7 eration air traffic control system advancements. 

8 (2) AVAILABILITY.—The amounts made avail9 able under this subsection shall be available for obli10 gation until the date that is two years after the date 

11 of the enactment of this Act. 

12 (c) HIGHWAY INFRASTRUCTURE INVESTMENT.— 

13 (1) IN GENERAL.—There is made available to 

14 the Secretary of Transportation $27,000,000,000 

15 for restoration, repair, construction and other activi16 ties eligible under section 133(b) of title 23, United 

17 States Code, and for passenger and freight rail 

18 transportation and port infrastructure projects eligi19 ble for assistance under section 601(a)(8) of title 23. 

20 (2) FEDERAL SHARE; LIMITATION ON OBLIGA21 TIONS.—The Federal share payable on account of 

22 any project or activity carried out with funds made 

23 available under this subsection shall be, at the op24 tion of the recipient, up to 100 percent of the total 

25 cost thereof. The amount made available under this 


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1 subsection shall not be subject to any limitation on 

2 obligations for Federal-aid highways and highway 

3 safety construction programs set forth in any Act or 

4 in title 23, United States Code. 

5 (3) AVAILABILITY.—The amounts made avail6 able under this subsection shall be available for obli7 gation until the date that is two years after the date 

8 of the enactment of this Act. The Secretary shall ob9 ligate amounts totaling not less than 50 percent of 

10 the funds made available within one year of enact11 ment and obligate remaining amounts not later than 

12 two years after enactment. 

13 (4) DISTRIBUTION OF FUNDS.—Of the funds 

14 provided in this subsection, after making the set15 asides required by paragraphs (9), (10), (11), (12), 

16 and (15), 50 percent of the funds shall be appor17 tioned to States using the formula set forth in sec18 tion 104(b)(3) of title 23, United States Code, and 

19 the remaining funds shall be apportioned to States 

20 in the same ratio as the obligation limitation for fis21 cal year 2010 was distributed among the States in 

22 accordance with the formula specified in section 

23 120(a)(6) of division A of Public Law 111–117. 


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1 (5) APPORTIONMENT.—Apportionments under 

2 paragraph (4) shall be made not later than 30 days 

3 after the date of the enactment of this Act. 

4 (6) REDISTRIBUTION.— 

5 (A) The Secretary shall, 180 days fol6 lowing the date of apportionment, withdraw 

7 from each State an amount equal to 50 percent 

8 of the funds apportioned under paragraph (4) 

9 to that State (excluding funds suballocated 

10 within the State) less the amount of funding 

11 obligated (excluding funds suballocated within 

12 the State), and the Secretary shall redistribute 

13 such amounts to other States that have had no 

14 funds withdrawn under this subparagraph in 

15 the manner described in section 120(c) of divi16 sion A of Public Law 111–117. 

17 (B) One year following the date of appor18 tionment, the Secretary shall withdraw from 

19 each recipient of funds apportioned under para20 graph (4) any unobligated funds, and the Sec21 retary shall redistribute such amounts to States 

22 that have had no funds withdrawn under this 

23 paragraph (excluding funds suballocated within 

24 the State) in the manner described in section 

25 120(c) of division A of Public Law 111–117. 


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1 (C) At the request of a State, the Sec2 retary may provide an extension of the one-year 

3 period only to the extent that the Secretary de4 termines that the State has encountered ex5 treme conditions that create an unworkable bid6 ding environment or other extenuating cir7 cumstances. Before granting an extension, the 

8 Secretary notify in writing the Committee on 

9 Transportation and Infrastructure and the 

10 Committee on Environment and Public Works, 

11 providing a thorough justification for the exten12 sion. 

13 (7) TRANSPORTATION ENHANCEMENTS.—Three 

14 percent of the funds apportioned to a State under 

15 paragraph (4) shall be set aside for the purposes de16 scribed in section 133(d)(2) of title 23, United 

17 States Code (without regard to the comparison to 

18 fiscal year 2005). 

19 (8) SUBALLOCATION.—Thirty percent of the 

20 funds apportioned to a State under this subsection 

21 shall be suballocated within the State in the manner 

22 and for the purposes described in the first sentence 

23 of sections 133(d)(3)(A), 133(d)(3)(B), and 

24 133(d)(3)(D) of title 23, United States Code. Such 

25 suballocation shall be conducted in every State. 


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1 Funds suballocated within a State to urbanized 

2 areas and other areas shall not be subject to the re3 distribution of amounts required 180 days following 

4 the date of apportionment of funds provided by 

5 paragraph (6)(A). 

6 (9) PUERTO RICO AND TERRITORIAL HIGHWAY

7 PROGRAMS.—Of the funds provided under this sub8 section, $105,000,000 shall be set aside for the 

9 Puerto Rico highway program authorized under sec10 tion 165 of title 23, United States Code, and 

11 $45,000,000 shall be for the territorial highway pro12 gram authorized under section 215 of title 23, 

13 United States Code. 

14 (10) FEDERAL LANDS AND INDIAN RESERVA15 TIONS.—Of the funds provided under this sub16 section, $550,000,000 shall be set aside for invest17 ments in transportation at Indian reservations and 

18 Federal lands in accordance with the following: 

19 (A) Of the funds set aside by this para20 graph, $310,000,000 shall be for the Indian 

21 Reservation Roads program, $170,000,000 

22 shall be for the Park Roads and Parkways pro23 gram, $60,000,000 shall be for the Forest 

24 Highway Program, and $10,000,000 shall be 

25 for the Refuge Roads program. 


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1 (B) For investments at Indian reservations 

2 and Federal lands, priority shall be given to 

3 capital investments, and to projects and activi4 ties that can be completed within 2 years of en5 actment of this Act. 

6 (C) One year following the enactment of 

7 this Act, to ensure the prompt use of the fund8 ing provided for investments at Indian reserva9 tions and Federal lands, the Secretary shall 

10 have the authority to redistribute unobligated 

11 funds within the respective program for which 

12 the funds were appropriated. 

13 (D) Up to four percent of the funding pro14 vided for Indian Reservation Roads may be 

15 used by the Secretary of the Interior for pro16 gram management and oversight and project-re17 lated administrative expenses. 

18 (E) Section 134(f)(3)(C)(ii)(II) of title 23, 

19 United States Code, shall not apply to funds set 

20 aside by this paragraph. 

21 (11) JOB TRAINING.—Of the funds provided 

22 under this subsection, $50,000,000 shall be set aside 

23 for the development and administration of transpor24 tation training programs under section 140(b) title 

25 23, United States Code. 


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1 (A) Funds set aside under this subsection 

2 shall be competitively awarded and used for the 

3 purpose of providing training, apprenticeship 

4 (including Registered Apprenticeship), skill de5 velopment, and skill improvement programs, as 

6 well as summer transportation institutes and 

7 may be transferred to, or administered in part8 nership with, the Secretary of Labor and shall 

9 demonstrate to the Secretary of Transportation 

10 program outcomes, including— 

11 (i) impact on areas with transpor12 tation workforce shortages; 

13 (ii) diversity of training participants; 

14 (iii) number of participants obtaining 

15 certifications or credentials required for 

16 specific types of employment; 

17 (iv) employment outcome metrics, 

18 such as job placement and job retention 

19 rates, established in consultation with the 

20 Secretary of Labor and consistent with 

21 metrics used by programs under the Work22 force Investment Act; 

23 (v) to the extent practical, evidence 

24 that the program did not preclude workers 

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1 ship activities under the program from 

2 being referred to, or hired on, projects 

3 funded under this chapter; and 

4 (vi) identification of areas of collabo5 ration with the Department of Labor pro6 grams, including co-enrollment. 

7 (B) To be eligible to receive a competitively 

8 awarded grant under this subsection, a State 

9 must certify that at least 0.1 percent of the 

10 amounts apportioned under the Surface Trans11 portation Program and Bridge Program will be 

12 obligated in the first fiscal year after enactment 

13 of this Act for job training activities consistent 

14 with section 140(b) of title 23, United States 

15 Code. 

16 (12) DISADVANTAGED BUSINESS ENTER17 PRISES.—Of the funds provided under this sub18 section, $10,000,000 shall be set aside for training 

19 programs and assistance programs under section 

20 140(c) of title 23, United States Code. Funds set 

21 aside under this paragraph should be allocated to 

22 businesses that have proven success in adding staff 

23 while effectively completing projects. 

24 (13) STATE PLANNING AND OVERSIGHT EX25 PENSES.—Of amounts apportioned under paragraph 


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1 (4) of this subsection, a State may use up to 0.5 

2 percent for activities related to projects funded 

3 under this subsection, including activities eligible 

4 under sections 134 and 135 of title 23, United 

5 States Code, State administration of subgrants, and 

6 State oversight of subrecipients. 

7 (14) CONDITIONS.— 

8 (A) Funds made available under this sub9 section shall be administered as if apportioned 

10 under chapter 1 of title 23, United States Code, 

11 except for funds made available for investments 

12 in transportation at Indian reservations and 

13 Federal lands, and for the territorial highway 

14 program, which shall be administered in accord15 ance with chapter 2 of title 23, United States 

16 Code, and except for funds made available for 

17 disadvantaged business enterprises bonding as18 sistance, which shall be administered in accord19 ance with chapter 3 of title 49, United States 

20 Code. 

21 (B) Funds made available under this sub22 section shall not be obligated for the purposes 

23 authorized under section 115(b) of title 23, 

24 United States Code. 


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1 (C) Funding provided under this sub2 section shall be in addition to any and all funds 

3 provided for fiscal years 2011 and 2012 in any 

4 other Act for ‘‘Federal-aid Highways’’ and shall 

5 not affect the distribution of funds provided for 

6 ‘‘Federal-aid Highways’’ in any other Act. 

7 (D) Section 1101(b) of Public Law 109–59 

8 shall apply to funds apportioned under this sub9 section. 

10 (15) OVERSIGHT.—The Administrator of the 

11 Federal Highway Administration may set aside up 

12 to 0.15 percent of the funds provided under this 

13 subsection to fund the oversight by the Adminis14 trator of projects and activities carried out with 

15 funds made available to the Federal Highway Ad16 ministration in this Act, and such funds shall be 

17 available through September 30, 2015. 

18 (d) CAPITAL ASSISTANCE FOR HIGH-SPEED RAIL

19 CORRIDORS AND INTERCITY PASSENGER RAIL SERV20 ICE.— 

21 (1) IN GENERAL.—There is made available to 

22 the Secretary of Transportation $4,000,000,000 for 

23 grants for high-speed rail projects as authorized 

24 under sections 26104 and 26106 of title 49, United 

25 States Code, capital investment grants to support 


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1 intercity passenger rail service as authorized under 

2 section 24406 of title 49, United States Code, and 

3 congestion grants as authorized under section 24105 

4 of title 49, United States Code, and to enter into co5 operative agreements for these purposes as author6 ized, except that the Administrator of the Federal 

7 Railroad Administration may retain up to one per8 cent of the funds provided under this heading to 

9 fund the award and oversight by the Administrator 

10 of grants made under this subsection, which retained 

11 amount shall remain available for obligation until 

12 September 30, 2015. 

13 (2) 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 (3) FEDERAL SHARE.—The Federal share pay22 able of the costs for which a grant or cooperative 

23 agreements is made under this subsection shall be, 

24 at the option of the recipient, up to 100 percent. 


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1 (4) INTERIM GUIDANCE.—The Secretary shall 

2 issue interim guidance to applicants covering appli3 cation procedures and administer the grants pro4 vided under this subsection pursuant to that guid5 ance until final regulations are issued. 

6 (5) INTERCITY PASSENGER RAIL CORRIDORS.— 

7 Not less than 85 percent of the funds provided 

8 under this subsection shall be for cooperative agree9 ments that lead to the development of entire seg10 ments or phases of intercity or high-speed rail cor11 ridors. 

12 (6) CONDITIONS.— 

13 (A) In addition to the provisions of title 

14 49, United States Code, that apply to each of 

15 the individual programs funded under this sub16 section, subsections 24402(a)(2), 24402(i), and 

17 24403 (a) and (c) of title 49, United States 

18 Code, shall also apply to the provision of funds 

19 provided under this subsection. 

20 (B) A project need not be in a State rail 

21 plan developed under Chapter 227 of title 49, 

22 United States Code, to be eligible for assistance 

23 under this subsection. 

24 (C) Recipients of grants under this para25 graph shall conduct all procurement transVerDate Mar 15 2010 01:20 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00074 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 actions using such grant funds in a manner 

2 that provides full and open competition, as de3 termined by the Secretary, in compliance with 

4 existing labor agreements. 

5 (e) CAPITAL GRANTS TO THE NATIONAL RAILROAD

6 PASSENGER CORPORATION.— 

7 (1) IN GENERAL.—There is made available 

8 $2,000,000,000 to enable the Secretary of Transpor9 tation to make capital grants to the National Rail10 road Passenger Corporation (Amtrak), as authorized 

11 by section 101(c) of the Passenger Rail Investment 

12 and Improvement Act of 2008 (Public Law 110– 

13 432). 

14 (2) AVAILABILITY.—The amounts made avail15 able under this subsection shall be available for obli16 gation until the date that is two years after the date 

17 of the enactment of this Act. The Secretary shall ob18 ligate amounts totaling not less than 50 percent of 

19 the funds made available within one year of enact20 ment and obligate remaining amounts not later than 

21 two years after enactment. 

22 (3) PROJECT PRIORITY.—The priority for the 

23 use of funds shall be given to projects for the repair, 

24 rehabilitation, or upgrade of railroad assets or infra25 structure, and for capital projects that expand pasVerDate Mar 15 2010 01:20 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 senger rail capacity including the rehabilitation of 

2 rolling stock. 

3 (4) CONDITIONS.— 

4 (A) None of the funds under this sub5 section shall be used to subsidize the operating 

6 losses of Amtrak. 

7 (B) The funds provided under this sub8 section shall be awarded not later than 90 days 

9 after the date of enactment of this Act. 

10 (C) The Secretary shall take measures to 

11 ensure that projects funded under this sub12 section shall be completed within 2 years of en13 actment of this Act, and shall serve to supple14 ment and not supplant planned expenditures for 

15 such activities from other Federal, State, local 

16 and corporate sources. The Secretary shall cer17 tify to the House and Senate Committees on 

18 Appropriations in writing compliance with the 

19 preceding sentence. 

20 (5) OVERSIGHT.—The Administrator of the 

21 Federal Railroad Administration may set aside 0.5 

22 percent of the funds provided under this subsection 

23 to fund the oversight by the Administrator of 

24 projects and activities carried out with funds made 


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1 available in this subsection, and such funds shall be 

2 available through September 30, 2015. 

3 (f) TRANSIT CAPITAL ASSISTANCE.— 

4 (1) IN GENERAL.—There is made available to 

5 the Secretary of Transportation $3,000,000,000 for 

6 grants for transit capital assistance grants as de7 fined by section 5302(a)(1) of title 49, United 

8 States Code. Notwithstanding any provision of chap9 ter 53 of title 49, however, a recipient of funding 

10 under this subsection may use up to 10 percent of 

11 the amount provided for the operating costs of 

12 equipment and facilities for use in public transpor13 tation or for other eligible activities. 

14 (2) FEDERAL SHARE; LIMTATION ON OBLIGA15 TIONS.—The applicable requirements of chapter 53 

16 of title 49, United States Code, shall apply to fund17 ing provided under this subsection, except that the 

18 Federal share of the costs for which any grant is 

19 made under this subsection shall be, at the option of 

20 the recipient, up to 100 percent. The amount made 

21 available under this subsection shall not be subject 

22 to any limitation on obligations for transit programs 

23 set forth in any Act or chapter 53 of title 49. 

24 (3) AVAILABILITY.—The amounts made avail25 able under this subsection shall be available for obliVerDate Mar 15 2010 01:20 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 gation until the date that is two years after the date 

2 of the enactment of this Act. The Secretary shall ob3 ligate amounts totaling not less than 50 percent of 

4 the funds made available within one year of enact5 ment and obligate remaining amounts not later than 

6 two years after enactment. 

7 (4) DISTRIBUTION OF FUNDS.—The Secretary 

8 of Transportation shall— 

9 (A) provide 80 percent of the funds appro10 priated under this subsection for grants under 

11 section 5307 of title 49, United States Code, 

12 and apportion such funds in accordance with 

13 section 5336 of such title; 

14 (B) provide 10 percent of the funds appro15 priated under this subsection in accordance 

16 with section 5340 of such title; and 

17 (C) provide 10 percent of the funds appro18 priated under this subsection for grants under 

19 section 5311 of title 49, United States Code, 

20 and apportion such funds in accordance with 

21 such section. 

22 (5) APPORTIONMENT.—The funds apportioned 

23 under this subsection shall be apportioned not later 

24 than 21 days after the date of the enactment of this 

25 Act. 


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1 (6) REDISTRIBUTION.— 

2 (A) The Secretary shall, 180 days fol3 lowing the date of apportionment, withdraw 

4 from each urbanized area or State an amount 

5 equal to 50 percent of the funds apportioned to 

6 such urbanized areas or States less the amount 

7 of funding obligated, and the Secretary shall re8 distribute such amounts to other urbanized 

9 areas or States that have had no funds with10 drawn under this proviso utilizing whatever 

11 method he deems appropriate to ensure that all 

12 funds redistributed under this proviso shall be 

13 utilized promptly. 

14 (B) One year following the date of appor15 tionment, the Secretary shall withdraw from 

16 each urbanized area or State any unobligated 

17 funds, and the Secretary shall redistribute such 

18 amounts to other urbanized areas or States 

19 that have had no funds withdrawn under this 

20 proviso utilizing whatever method the Secretary 

21 deems appropriate to ensure that all funds re22 distributed under this proviso shall be utilized 

23 promptly. 

24 (C) At the request of an urbanized area or 

25 State, the Secretary of Transportation may proVerDate Mar 15 2010 01:20 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00079 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 vide an extension of such 1-year period if the 

2 Secretary determines that the urbanized area or 

3 State has encountered an unworkable bidding 

4 environment or other extenuating cir5 cumstances. Before granting an extension, the 

6 Secretary shall notify in writing the Committee 

7 on Transportation and Infrastructure and the 

8 Committee on Banking, Housing and Urban 

9 Affairs, providing a thorough justification for 

10 the extension. 

11 (7) CONDITIONS.— 

12 (A) Of the funds provided for section 5311 

13 of title 49, United States Code, 2.5 percent 

14 shall be made available for section 5311(c)(1). 

15 (B) Section 1101(b) of Public Law 109–59 

16 shall apply to funds appropriated under this 

17 subsection. 

18 (C) The funds appropriated under this 

19 subsection shall not be comingled with any prior 

20 year funds. 

21 (8) OVERSIGHT.—Notwithstanding any other 

22 provision of law, 0.3 percent of the funds provided 

23 for grants under section 5307 and section 5340, and 

24 0.3 percent of the funds provided for grants under 

25 section 5311, shall be available for administrative 


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1 expenses and program management oversight, and 

2 such funds shall be available through September 30, 

3 2015. 

4 (g) STATE OF GOOD REPAIR.— 

5 (1) IN GENERAL.—There is made available to 

6 the Secretary of Transportation $6,000,000,000 for 

7 capital expenditures as authorized by sections 

8 5309(b) (2) and (3) of title 49, United States Code. 

9 (2) FEDERAL SHARE.—The applicable require10 ments of chapter 53 of title 49, United States Code, 

11 shall apply, except that the Federal share of the 

12 costs for which a grant is made under this sub13 section shall be, at the option of the recipient, up to 

14 100 percent. 

15 (3) AVAILABILITY.—The amounts made avail16 able under this subsection shall be available for obli17 gation until the date that is two years after the date 

18 of the enactment of this Act. The Secretary shall ob19 ligate amounts totaling not less than 50 percent of 

20 the funds made available within one year of enact21 ment and obligate remaining amounts not later than 

22 two years after enactment. 

23 (4) DISTRIBUTION OF FUNDS.— 

24 (A) The Secretary of Transportation shall 

25 apportion not less than 75 percent of the funds 


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1 under this subsection for the modernization of 

2 fixed guideway systems, pursuant to the for3 mula set forth in section 5336(b) title 49, 

4 United States Code, other than subsection 

5 (b)(2)(A)(ii). 

6 (B) Of the funds appropriated under this 

7 subsection, not less than 25 percent shall be 

8 available for the restoration or replacement of 

9 existing public transportation assets related to 

10 bus systems, pursuant to the formula set forth 

11 in section 5336 other than subsection (b). 

12 (5) APPORTIONMENT.—The funds made avail13 able under this subsection shall be apportioned not 

14 later than 30 days after the date of the enactment 

15 of this Act. 

16 (6) REDISTRIBUTION.— 

17 (A) The Secretary shall, 180 days fol18 lowing the date of apportionment, withdraw 

19 from each urbanized area an amount equal to 

20 50 percent of the funds apportioned to such ur21 banized area less the amount of funding obli22 gated, and the Secretary shall redistribute such 

23 amounts to other urbanized areas that have had 

24 no funds withdrawn under this paragraph uti25 lizing whatever method the Secretary deems apVerDate Mar 15 2010 01:20 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00082 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 propriate to ensure that all funds redistributed 

2 under this paragraph shall be utilized promptly. 

3 (B) One year following the date of appor4 tionment, the Secretary shall withdraw from 

5 each urbanized area any unobligated funds, and 

6 the Secretary shall redistribute such amounts to 

7 other urbanized areas that have had no funds 

8 withdrawn under this paragraph, utilizing what9 ever method the Secretary deems appropriate to 

10 ensure that all funds redistributed under this 

11 paragraph shall be utilized promptly. 

12 (C) At the request of an urbanized area, 

13 the Secretary may provide an extension of the 

14 1-year period if the Secretary finds that the ur15 banized area has encountered an unworkable 

16 bidding environment or other extenuating cir17 cumstances. Before granting an extension, the 

18 Secretary shall notify the Committee on Trans19 portation and Infrastructure and the Com20 mittee on Banking, Housing, and Urban Af21 fairs, providing a thorough justification for the 

22 extension. 

23 (7) CONDITIONS.— 


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1 (A) The provisions of section 1101(b) of 

2 Public Law 109–59 shall apply to funds made 

3 available under this subsection. 

4 (B) The funds appropriated under this 

5 subsection shall not be commingled with any 

6 prior year funds. 

7 (8) OVERSIGHT.—Notwithstanding any other 

8 provision of law, 0.3 percent of the funds under this 

9 subsection shall be available for administrative ex10 penses and program management oversight and shall 

11 remain available for obligation until September 30, 

12 2015. 

13 (h) TRANSPORTATION INFRASTRUCTURE GRANTS

14 AND FINANCING.— 

15 (1) IN GENERAL.—There is made available to 

16 the Secretary of Transportation $5,000,000,000 for 

17 capital investments in surface transportation infra18 structure. The Secretary shall distribute funds pro19 vided under this subsection as discretionary grants 

20 to be awarded to State and local governments or 

21 transit agencies on a competitive basis for projects 

22 that will have a significant impact on the Nation, a 

23 metropolitan area, or a region. 

24 (2) FEDERAL SHARE; LIMITATION ON OBLIGA25 TIONS.—The Federal share payable of the costs for 


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1 which a grant is made under this subsection, shall 

2 be 100 percent. 

3 (3) AVAILABILITY.—The amounts made avail4 able under this subsection shall be available for obli5 gation until the date that is two years after the date 

6 of the enactment of this Act. The Secretary shall ob7 ligate amounts totaling not less than 50 percent of 

8 the funds made available within one year of enact9 ment and obligate remaining amounts not later than 

10 two years after enactment. 

11 (4) PROJECT ELIGIBILITY.—Projects eligible for 

12 funding provided under this subsection include— 

13 (A) highway or bridge projects eligible 

14 under title 23, United States Code, including 

15 interstate rehabilitation, improvements to the 

16 rural collector road system, the reconstruction 

17 of overpasses and interchanges, bridge replace18 ments, seismic retrofit projects for bridges, and 

19 road realignments; 

20 (B) public transportation projects eligible 

21 under chapter 53 of title 49, United States 

22 Code, including investments in projects partici23 pating in the New Starts or Small Starts pro24 grams that will expedite the completion of those 

25 projects and their entry into revenue service; 


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1 (C) passenger and freight rail transpor2 tation projects; and 

3 (D) port infrastructure investments, in4 cluding projects that connect ports to other 

5 modes of transportation and improve the effi6 ciency of freight movement. 

7 (5) TIFIA PROGRAM.—The Secretary may 

8 transfer to the Federal Highway Administration 

9 funds made available under this subsection for the 

10 purpose of paying the subsidy and administrative 

11 costs of projects eligible for federal credit assistance 

12 under chapter 6 of title 23, United States Code, if 

13 the Secretary finds that such use of the funds would 

14 advance the purposes of this subsection. 

15 (6) PROJECT PRIORITY.—The Secretary shall 

16 give priority to projects that are expected to be com17 pleted within 3 years of the date of the enactment 

18 of this Act. 

19 (7) DEADLINE FOR ISSUANCE OF COMPETITION

20 CRITERIA.—The Secretary shall publish criteria on 

21 which to base the competition for any grants award22 ed under this subsection not later than 90 days after 

23 enactment of this Act. The Secretary shall require 

24 applications for funding provided under this sub25 section to be submitted not later than 180 days after 


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1 the publication of the criteria, and announce all 

2 projects selected to be funded from such funds not 

3 later than 1 year after the date of the enactment of 

4 the Act. 

5 (8) APPLICABILITY OF TITLE 40.—Each project 

6 conducted using funds provided under this sub7 section shall comply with the requirements of sub8 chapter IV of chapter 31 of title 40, United States 

9 Code. 

10 (9) ADMINISTRATIVE EXPENSES.—The Sec11 retary may retain up to one-half of one percent of 

12 the funds provided under this subsection, and may 

13 transfer portions of those funds to the Administra14 tors of the Federal Highway Administration, the 

15 Federal Transit Administration, the Federal Rail16 road Administration and the Maritime Administra17 tion, to fund the award and oversight of grants 

18 made under this subsection. Funds retained shall re19 main available for obligation until September 30, 

20 2015. 

21 (i) LOCAL HIRING.— 

22 (1) IN GENERAL.—In the case of the funding 

23 made available under subsections (a) through (h) of 

24 this section, the Secretary of Transportation may es25 tablish standards under which a contract for conVerDate Mar 15 2010 01:20 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00087 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 struction may be advertised that contains require2 ments for the employment of individuals residing in 

3 or adjacent to any of the areas in which the work 

4 is to be performed to perform construction work re5 quired under the contract, provided that— 

6 (A) all or part of the construction work 

7 performed under the contract occurs in an area 

8 designated by the Secretary as an area of high 

9 unemployment, using data reported by the 

10 United States Department of Labor, Bureau of 

11 Labor Statistics; 

12 (B) the estimated cost of the project of 

13 which the contract is a part is greater than $10 

14 million, except that the estimated cost of the 

15 project in the case of construction funded under 

16 subsection (c) shall be greater than $50 million; 

17 and 

18 (C) the recipient may not require the hir19 ing of individuals who do not have the nec20 essary skills to perform work in any craft or 

21 trade; provided that the recipient may require 

22 the hiring of such individuals if the recipient es23 tablishes reasonable provisions to train such in24 dividuals to perform any such work under the 

25 contract effectively. 


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1 (2) PROJECT STANDARDS.— 

2 (A) IN GENERAL.—Any standards estab3 lished by the Secretary under this section shall 

4 ensure that any requirements specified under 

5 subsection (c)(1)— 

6 (i) do not compromise the quality of 

7 the project; 

8 (ii) are reasonable in scope and appli9 cation; 

10 (iii) do not unreasonably delay the 

11 completion of the project; and 

12 (iv) do not unreasonably increase the 

13 cost of the project. 

14 (B) AVAILABLE PROGRAMS.—The Sec15 retary shall make available to recipients the 

16 workforce development and training programs 

17 set forth in section 24604(e)(1)(D) of this title 

18 to assist recipients who wish to establish train19 ing programs that satisfy the provisions of sub20 section (c)(1)(C). The Secretary of Labor shall 

21 make available its qualifying workforce and 

22 training development programs to recipients 

23 who wish to establish training programs that 

24 satisfy the provisions of subsection (c)(1)(C). 


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1 (3) IMPLEMENTING REGULATIONS.—The Sec2 retary shall promulgate final regulations to imple3 ment the authority of this subsection. 

4 (j) ADMINISTRATIVE PROVISIONS.— 

5 (1) APPLICABILITY OF TITLE 40.—Each project 

6 conducted using funds provided under this subtitle 

7 shall comply with the requirements of subchapter IV 

8 of chapter 31 of title 40, United States Code. 

9 (2) BUY AMERICAN.—Section 1605 of division 

10 A of the American Recovery and Reinvestment Act 

11 of 2009 (Public Law 111–5) applies to each project 

12 conducted using funds provided under this subtitle. 

13 Subtitle F—Building and Upgrad14 ing Infrastructure for Long15 Term Development 

16 SEC. 242. SHORT TITLE; TABLE OF CONTENTS. 

17 (a) SHORT TITLE.—This subtitle may be cited as the 

18 ‘‘Building and Upgrading Infrastructure for Long-Term 

19 Development Act’’. 

20 SEC. 243. FINDINGS AND PURPOSE. 

21 (a) FINDINGS.—Congress finds that— 

22 (1) infrastructure has always been a vital ele23 ment of the economic strength of the United States 

24 and a key indicator of the international leadership of 

25 the United States; 


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1 (2) the Erie Canal, the Hoover Dam, the rail2 roads, and the interstate highway system are all tes3 taments to American ingenuity and have helped pro4 pel and maintain the United States as the world’s 

5 largest economy; 

6 (3) according to the World Economic Forum’s 

7 Global Competitiveness Report, the United States 

8 fell to second place in 2009, and dropped to fourth 

9 place overall in 2010, however, in the ‘‘Quality of 

10 overall infrastructure’’ category of the same report, 

11 the United States ranked twenty-third in the world; 

12 (4) according to the World Bank’s 2010 Logis13 tic Performance Index, the capacity of countries to 

14 efficiently move goods and connect manufacturers 

15 and consumers with international markets is improv16 ing around the world, and the United States now 

17 ranks seventh in the world in logistics-related infra18 structure behind countries from both Europe and 

19 Asia; 

20 (5) according to a January 2009 report from 

21 the University of Massachusetts/Alliance for Amer22 ican Manufacturing entitled ‘‘Employment, Produc23 tivity and Growth,’’ infrastructure investment is a 

24 ‘‘highly effective engine of job creation’’; 


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1 (6) according to the American Society of Civil 

2 Engineers, the current condition of the infrastruc3 ture in the United States earns a grade point aver4 age of D, and an estimated $2,200,000,000,000 in5 vestment is needed over the next 5 years to bring 

6 American infrastructure up to adequate condition; 

7 (7) according to the National Surface Trans8 portation Policy and Revenue Study Commission, 

9 $225,000,000,000 is needed annually from all 

10 sources for the next 50 years to upgrade the United 

11 States surface transportation system to a state of 

12 good repair and create a more advanced system; 

13 (8) the current infrastructure financing mecha14 nisms of the United States, both on the Federal and 

15 State level, will fail to meet current and foreseeable 

16 demands and will create large funding gaps; 

17 (9) published reports state that there may not 

18 be enough demand for municipal bonds to maintain 

19 the same level of borrowing at the same rates, re20 sulting in significantly decreased infrastructure in21 vestment at the State and local level; 

22 (10) current funding mechanisms are not read23 ily scalable and do not— 

24 (A) serve large in-State or cross jurisdic25 tion infrastructure projects, projects of regional 


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1 or national significance, or projects that cross 

2 sector silos; 

3 (B) sufficiently catalyze private sector in4 vestment; or 

5 (C) ensure the optimal return on public re6 sources; 

7 (11) although grant programs of the United 

8 States Government must continue to play a central 

9 role in financing the transportation, environment, 

10 and energy infrastructure needs of the United 

11 States, current and foreseeable demands on existing 

12 Federal, State, and local funding for infrastructure 

13 expansion clearly exceed the resources to support 

14 these programs by margins wide enough to prompt 

15 serious concerns about the United States ability to 

16 sustain long-term economic development, produc17 tivity, and international competitiveness; 

18 (12) the capital markets, including pension 

19 funds, private equity funds, mutual funds, sovereign 

20 wealth funds, and other investors, have a growing 

21 interest in infrastructure investment and represent 

22 hundreds of billions of dollars of potential invest23 ment; and 

24 (13) the establishment of a United States Gov25 ernment-owned, independent, professionally managed 


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1 institution that could provide credit support to quali2 fied infrastructure projects of regional and national 

3 significance, making transparent merit-based invest4 ment decisions based on the commercial viability of 

5 infrastructure projects, would catalyze the participa6 tion of significant private investment capital. 

7 (b) PURPOSE.—The purpose of this Act is to facili8 tate investment in, and long-term financing of, economi9 cally viable infrastructure projects of regional or national 

10 significance in a manner that both complements existing 

11 Federal, State, local, and private funding sources for these 

12 projects and introduces a merit-based system for financing 

13 such projects, in order to mobilize significant private sec14 tor investment, create jobs, and ensure United States com15 petitiveness through an institution that limits the need for 

16 ongoing Federal funding. 

17 SEC. 244. DEFINITIONS. 

18 For purposes of this Act, the following definitions 

19 shall apply: 

20 (1) AIFA.—The term ‘‘AIFA’’ means the 

21 American Infrastructure Financing Authority estab22 lished under this Act. 

23 (2) BLIND TRUST.—The term ‘‘blind trust’’ 

24 means a trust in which the beneficiary has no knowl25 edge of the specific holdings and no rights over how 


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1 those holdings are managed by the fiduciary of the 

2 trust prior to the dissolution of the trust. 

3 (3) BOARD OF DIRECTORS.—The term ‘‘Board 

4 of Directors’’ means Board of Directors of AIFA. 

5 (4) CHAIRPERSON.—The term ‘‘Chairperson’’ 

6 means the Chairperson of the Board of Directors of 

7 AIFA. 

8 (5) CHIEF EXECUTIVE OFFICER.—The term 

9 ‘‘chief executive officer’’ means the chief executive 

10 officer of AIFA, appointed under section 247. 

11 (6) COST.—The term ‘‘cost’’ has the same 

12 meaning as in section 502 of the Federal Credit Re13 form Act of 1990 (2 U.S.C. 661a). 

14 (7) DIRECT LOAN.—The term ‘‘direct loan’’ has 

15 the same meaning as in section 502 of the Federal 

16 Credit Reform Act of 1990 (2 U.S.C. 661a). 

17 (8) ELIGIBLE ENTITY.—The term ‘‘eligible enti18 ty’’ means an individual, corporation, partnership 

19 (including a public-private partnership), joint ven20 ture, trust, State, or other non-Federal govern21 mental entity, including a political subdivision or any 

22 other instrumentality of a State, or a revolving fund. 

23 (9) INFRASTRUCTURE PROJECT.— 

24 (A) IN GENERAL.—The term ‘‘eligible in25 frastructure project’’ means any non-Federal 


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1 transportation, water, or energy infrastructure 

2 project, or an aggregation of such infrastruc3 ture projects, as provided in this Act. 

4 (B) TRANSPORTATION INFRASTRUCTURE

5 PROJECT.—The term ‘‘transportation infra6 structure project’’ means the construction, al7 teration, or repair, including the facilitation of 

8 intermodal transit, of the following subsectors: 

9 (i) Highway or road. 

10 (ii) Bridge. 

11 (iii) Mass transit. 

12 (iv) Inland waterways. 

13 (v) Commercial ports. 

14 (vi) Airports. 

15 (vii) Air traffic control systems. 

16 (viii) Passenger rail, including high17 speed rail. 

18 (ix) Freight rail systems. 

19 (C) WATER INFRASTRUCTURE PROJECT.— 

20 The term ‘‘water infrastructure project’’ means 

21 the construction, consolidation, alteration, or 

22 repair of the following subsectors: 

23 (i) Waterwaste treatment facility. 

24 (ii) Storm water management system. 

25 (iii) Dam. 


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1 (iv) Solid waste disposal facility. 

2 (v) Drinking water treatment facility. 

3 (vi) Levee. 

4 (vii) Open space management system. 

5 (D) ENERGY INFRASTRUCTURE

6 PROJECT.—The term ‘‘energy infrastructure 

7 project’’ means the construction, alteration, or 

8 repair of the following subsectors: 

9 (i) Pollution reduced energy genera10 tion. 

11 (ii) Transmission and distribution. 

12 (iii) Storage. 

13 (iv) Energy efficiency enhancements 

14 for buildings, including public and com15 mercial buildings. 

16 (E) BOARD AUTHORITY TO MODIFY SUB17 SECTORS.—The Board of Directors may make 

18 modifications, at the discretion of the Board, to 

19 the subsectors described in this paragraph by a 

20 vote of not fewer than 5 of the voting members 

21 of the Board of Directors. 

22 (10) INVESTMENT PROSPECTUS.— 

23 (A) The term ‘‘investment prospectus’’ 

24 means the processes and publications described 

25 below that will guide the priorities and strategic 


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1 focus for the Bank’s investments. The invest2 ment prospectus shall follow rulemaking proce3 dures under section 553 of title 5, United 

4 States Code. 

5 (B) The Bank shall publish a detailed de6 scription of its strategy in an Investment Pro7 spectus within one year of the enactment of this 

8 subchapter. The Investment Prospectus shall— 

9 (i) specify what the Bank shall con10 sider significant to the economic competi11 tiveness of the United States or a region 

12 thereof in a manner consistent with the 

13 primary objective; 

14 (ii) specify the priorities and strategic 

15 focus of the Bank in forwarding its stra16 tegic objectives and carrying out the Bank 

17 strategy; 

18 (iii) specify the priorities and strategic 

19 focus of the Bank in promoting greater ef20 ficiency in the movement of freight; 

21 (iv) specify the priorities and strategic 

22 focus of the Bank in promoting the use of 

23 innovation and best practices in the plan24 ning, design, development and delivery of 

25 projects; 


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1 (v) describe in detail the framework 

2 and methodology for calculating applica3 tion qualification scores and associated 

4 ranges as specified in this subchapter, 

5 along with the data to be requested from 

6 applicants and the mechanics of calcula7 tions to be applied to that data to deter8 mine qualification scores and ranges; 

9 (vi) describe how selection criteria will 

10 be applied by the Chief Executive Officer 

11 in determining the competitiveness of an 

12 application and its qualification score and 

13 range relative to other current applications 

14 and previously funded applications; and 

15 (vii) describe how the qualification 

16 score and range methodology and project 

17 selection framework are consistent with 

18 maximizing the Bank goals in both urban 

19 and rural areas. 

20 (C) The Investment Prospectus and any 

21 subsequent updates thereto shall be approved 

22 by a majority vote of the Board of Directors 

23 prior to publication. 


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1 (D) The Bank shall update the Investment 

2 Prospectus on every biennial anniversary of its 

3 original publication. 

4 (11) INVESTMENT-GRADE RATING.—The term 

5 ‘‘investment-grade rating’’ means a rating of BBB 

6 minus, Baa3, or higher assigned to an infrastructure 

7 project by a ratings agency. 

8 (12) LOAN GUARANTEE.—The term ‘‘loan guar9 antee’’ has the same meaning as in section 502 of 

10 the Federal Credit Reform Act of 1990 (2 U.S.C. 

11 661a). 

12 (13) PUBLIC-PRIVATE PARTNERSHIP.—The 

13 term ‘‘public-private partnership’’ means any eligible 

14 entity— 

15 (A)(i) which is undertaking the develop16 ment of all or part of an infrastructure project 

17 that will have a public benefit, pursuant to re18 quirements established in one or more contracts 

19 between the entity and a State or an instru20 mentality of a State; or 

21 (ii) the activities of which, with respect to 

22 such an infrastructure project, are subject to 

23 regulation by a State or any instrumentality of 

24 a State; 


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1 (B) which owns, leases, or operates or will 

2 own, lease, or operate, the project in whole or 

3 in part; and 

4 (C) the participants in which include not 

5 fewer than 1 nongovernmental entity with sig6 nificant investment and some control over the 

7 project or project vehicle. 

8 (14) RURAL INFRASTRUCTURE PROJECT.—The 

9 term ‘‘rural infrastructure project’’ means an infra10 structure project in a rural area, as that term is de11 fined in section 343(a)(13)(A) of the Consolidated 

12 Farm and Rural Development Act (7 U.S.C. 

13 1991(a)(13)(A)). 

14 (15) SECRETARY.—Unless the context other15 wise requires, the term ‘‘Secretary’’ means the Sec16 retary of the Treasury or the designee thereof. 

17 (16) SENIOR MANAGEMENT.—The term ‘‘senior 

18 management’’ means the chief financial officer, chief 

19 risk officer, chief compliance officer, general counsel, 

20 chief lending officer, and chief operations officer of 

21 AIFA established under section 249, and such other 

22 officers as the Board of Directors may, by majority 

23 vote, add to senior management. 

24 (17) STATE.—The term ‘‘State’’ includes the 

25 District of Columbia, Puerto Rico, Guam, American 


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1 Samoa, the Virgin Islands, the Commonwealth of 

2 Northern Mariana Islands, and any other territory 

3 of the United States. 

4 PART I—AMERICAN INFRASTRUCTURE 

5 FINANCING AUTHORITY 

6 SEC. 245. ESTABLISHMENT AND GENERAL AUTHORITY OF 

7 AIFA. 

8 (a) ESTABLISHMENT OF AIFA.—The American In9 frastructure Financing Authority is established as a whol10 ly owned Government corporation. 

11 (b) GENERAL AUTHORITY OF AIFA.—AIFA shall 

12 provide direct loans and loan guarantees to facilitate infra13 structure projects that are both economically viable and 

14 of regional or national significance, and shall have such 

15 other authority, as provided in this Act. 

16 (c) INCORPORATION.— 

17 (1) IN GENERAL.—The Board of Directors first 

18 appointed shall be deemed the incorporator of AIFA, 

19 and the incorporation shall be held to have been ef20 fected from the date of the first meeting of the 

21 Board of Directors. 

22 (2) CORPORATE OFFICE.—AIFA shall— 

23 (A) maintain an office in Washington, DC; 

24 and 


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1 (B) for purposes of venue in civil actions, 

2 be considered to be a resident of Washington, 

3 DC. 

4 (d) RESPONSIBILITY OF THE SECRETARY.—The Sec5 retary shall take such action as may be necessary to assist 

6 in implementing AIFA, and in carrying out the purpose 

7 of this Act. 

8 (e) RULE OF CONSTRUCTION.—Chapter 91 of title 

9 31, United States Code, does not apply to AIFA, unless 

10 otherwise specifically provided in this Act. 

11 SEC. 246. VOTING MEMBERS OF THE BOARD OF DIREC12 TORS. 

13 (a) VOTING MEMBERSHIP OF THE BOARD OF DIREC14 TORS.— 

15 (1) IN GENERAL.—AIFA shall have a Board of 

16 Directors consisting of 7 voting members appointed 

17 by the President, by and with the advice and consent 

18 of the Senate, not more than 4 of whom shall be 

19 from the same political party. 

20 (2) CHAIRPERSON.—One of the voting members 

21 of the Board of Directors shall be designated by the 

22 President to serve as Chairperson thereof. 

23 (3) CONGRESSIONAL RECOMMENDATIONS.—Not 

24 later than 30 days after the date of enactment of 

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1 nority leader of the Senate, the Speaker of the 

2 House of Representatives, and the minority leader of 

3 the House of Representatives shall each submit a 

4 recommendation to the President for appointment of 

5 a member of the Board of Directors, after consulta6 tion with the appropriate committees of Congress. 

7 (b) VOTING RIGHTS.—Each voting member of the 

8 Board of Directors shall have an equal vote in all decisions 

9 of the Board of Directors. 

10 (c) QUALIFICATIONS OF VOTING MEMBERS.—Each 

11 voting member of the Board of Directors shall— 

12 (1) be a citizen of the United States; and 

13 (2) have significant demonstrated expertise in— 

14 (A) the management and administration of 

15 a financial institution relevant to the operation 

16 of AIFA; or a public financial agency or author17 ity; or 

18 (B) the financing, development, or oper19 ation of infrastructure projects; or 

20 (C) analyzing the economic benefits of in21 frastructure investment. 

22 (d) TERMS.— 

23 (1) IN GENERAL.—Except as otherwise pro24 vided in this Act, each voting member of the Board 

25 of Directors shall be appointed for a term of 4 years. 


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1 (2) INITIAL STAGGERED TERMS.—Of the voting 

2 members first appointed to the Board of Directors— 

3 (A) the initial Chairperson and 3 of the 

4 other voting members shall each be appointed 

5 for a term of 4 years; and 

6 (B) the remaining 3 voting members shall 

7 each be appointed for a term of 2 years. 

8 (3) DATE OF INITIAL NOMINATIONS.—The ini9 tial nominations for the appointment of all voting 

10 members of the Board of Directors shall be made 

11 not later than 60 days after the date of enactment 

12 of this Act. 

13 (4) BEGINNING OF TERM.—The term of each of 

14 the initial voting members appointed under this sec15 tion shall commence immediately upon the date of 

16 appointment, except that, for purposes of calculating 

17 the term limits specified in this subsection, the ini18 tial terms shall each be construed as beginning on 

19 January 22 of the year following the date of the ini20 tial appointment. 

21 (5) VACANCIES.—A vacancy in the position of 

22 a voting member of the Board of Directors shall be 

23 filled by the President, and a member appointed to 

24 fill a vacancy on the Board of Directors occurring 

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1 ecessor was appointed shall be appointed only for 

2 the remainder of that term. 

3 (e) MEETINGS.— 

4 (1) OPEN TO THE PUBLIC; NOTICE.—Except as 

5 provided in paragraph (3), all meetings of the Board 

6 of Directors shall be— 

7 (A) open to the public; and 

8 (B) preceded by reasonable public notice. 

9 (2) FREQUENCY.—The Board of Directors shall 

10 meet not later than 60 days after the date on which 

11 all members of the Board of Directors are first ap12 pointed, at least quarterly thereafter, and otherwise 

13 at the call of either the Chairperson or 5 voting 

14 members of the Board of Directors. 

15 (3) EXCEPTION FOR CLOSED MEETINGS.—The 

16 voting members of the Board of Directors may, by 

17 majority vote, close a meeting to the public if, dur18 ing the meeting to be closed, there is likely to be dis19 closed proprietary or sensitive information regarding 

20 an infrastructure project under consideration for as21 sistance under this Act. The Board of Directors 

22 shall prepare minutes of any meeting that is closed 

23 to the public, and shall make such minutes available 

24 as soon as practicable, not later than 1 year after 

25 the date of the closed meeting, with any necessary 


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1 redactions to protect any proprietary or sensitive in2 formation. 

3 (4) QUORUM.—For purposes of meetings of the 

4 Board of Directors, 5 voting members of the Board 

5 of Directors shall constitute a quorum. 

6 (f) COMPENSATION OF MEMBERS.—Each voting 

7 member of the Board of Directors shall be compensated 

8 at a rate equal to the daily equivalent of the annual rate 

9 of basic pay prescribed for level III of the Executive 

10 Schedule under section 5314 of title 5, United States 

11 Code, for each day (including travel time) during which 

12 the member is engaged in the performance of the duties 

13 of the Board of Directors. 

14 (g) CONFLICTS OF INTEREST.—A voting member of 

15 the Board of Directors may not participate in any review 

16 or decision affecting an infrastructure project under con17 sideration for assistance under this Act, if the member has 

18 or is affiliated with an entity who has a financial interest 

19 in such project. 

20 SEC. 247. CHIEF EXECUTIVE OFFICER OF AIFA. 

21 (a) IN GENERAL.—The chief executive officer of 

22 AIFA shall be a nonvoting member of the Board of Direc23 tors, who shall be responsible for all activities of AIFA, 

24 and shall support the Board of Directors as set forth in 


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1 this Act and as the Board of Directors deems necessary 

2 or appropriate. 

3 (b) APPOINTMENT AND TENURE OF THE CHIEF EX4 ECUTIVE OFFICER.— 

5 (1) IN GENERAL.—The President shall appoint 

6 the chief executive officer, by and with the advice 

7 and consent of the Senate. 

8 (2) TERM.—The chief executive officer shall be 

9 appointed for a term of 6 years. 

10 (3) VACANCIES.—Any vacancy in the office of 

11 the chief executive officer shall be filled by the Presi12 dent, and the person appointed to fill a vacancy in 

13 that position occurring before the expiration of the 

14 term for which the predecessor was appointed shall 

15 be appointed only for the remainder of that term. 

16 (c) QUALIFICATIONS.—The chief executive officer— 

17 (1) shall have significant expertise in manage18 ment and administration of a financial institution, 

19 or significant expertise in the financing and develop20 ment of infrastructure projects, or significant exper21 tise in analyzing the economic benefits of infrastruc22 ture investment; and 

23 (2) may not— 

24 (A) hold any other public office; 


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1 (B) have any financial interest in an infra2 structure project then being considered by the 

3 Board of Directors, unless that interest is 

4 placed in a blind trust; or 

5 (C) have any financial interest in an in6 vestment institution or its affiliates or any 

7 other entity seeking or likely to seek financial 

8 assistance for any infrastructure project from 

9 AIFA, unless any such interest is placed in a 

10 blind trust for the tenure of the service of the 

11 chief executive officer plus 2 additional years. 

12 (d) RESPONSIBILITIES.—The chief executive officer 

13 shall have such executive functions, powers, and duties as 

14 may be prescribed by this Act, the bylaws of AIFA, or 

15 the Board of Directors, including— 

16 (1) responsibility for the development and im17 plementation of the strategy of AIFA, including— 

18 (A) the development and submission to the 

19 Board of Directors of the investment pro20 spectus, the annual business plans and budget; 

21 (B) the development and submission to the 

22 Board of Directors of a long-term strategic 

23 plan; and 


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1 (C) the development, revision, and submis2 sion to the Board of Directors of internal poli3 cies; and 

4 (2) responsibility for the management and over5 sight of the daily activities, decisions, operations, 

6 and personnel of AIFA, including— 

7 (A) the appointment of senior manage8 ment, subject to approval by the voting mem9 bers of the Board of Directors, and the hiring 

10 and termination of all other AIFA personnel; 

11 (B) requesting the detail, on a reimburs12 able basis, of personnel from any Federal agen13 cy having specific expertise not available from 

14 within AIFA, following which request the head 

15 of the Federal agency may detail, on a reim16 bursable basis, any personnel of such agency 

17 reasonably requested by the chief executive offi18 cer; 

19 (C) assessing and recommending in the 

20 first instance, for ultimate approval or dis21 approval by the Board of Directors, compensa22 tion and adjustments to compensation of senior 

23 management and other personnel of AIFA as 

24 may be necessary for carrying out the functions 

25 of AIFA; 


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1 (D) ensuring, in conjunction with the gen2 eral counsel of AIFA, that all activities of 

3 AIFA are carried out in compliance with appli4 cable law; 

5 (E) overseeing the involvement of AIFA in 

6 all projects, including— 

7 (i) developing eligible projects for 

8 AIFA financial assistance; 

9 (ii) determining the terms and condi10 tions of all financial assistance packages; 

11 (iii) monitoring all infrastructure 

12 projects assisted by AIFA, including re13 sponsibility for ensuring that the proceeds 

14 of any loan made, guaranteed, or partici15 pated in are used only for the purposes for 

16 which the loan or guarantee was made; 

17 (iv) preparing and submitting for ap18 proval by the Board of Directors the docu19 ments required under paragraph (1); and 

20 (v) ensuring the implementation of de21 cisions of the Board of Directors; and 

22 (F) such other activities as may be nec23 essary or appropriate in carrying out this Act. 

24 (e) COMPENSATION.— 


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1 (1) IN GENERAL.—Any compensation assess2 ment or recommendation by the chief executive offi3 cer under this section shall be without regard to the 

4 provisions of chapter 51 or subchapter III of chapter 

5 53 of title 5, United States Code. 

6 (2) CONSIDERATIONS.—The compensation as7 sessment or recommendation required under this 

8 subsection shall take into account merit principles, 

9 where applicable, as well as the education, experi10 ence, level of responsibility, geographic differences, 

11 and retention and recruitment needs in determining 

12 compensation of personnel. 

13 SEC. 248. POWERS AND DUTIES OF THE BOARD OF DIREC14 TORS. 

15 The Board of Directors shall— 

16 (1) as soon as is practicable after the date on 

17 which all members are appointed, approve or dis18 approve senior management appointed by the chief 

19 executive officer; 

20 (2) not later than 180 days after the date on 

21 which all members are appointed— 

22 (A) develop and approve the bylaws of 

23 AIFA, including bylaws for the regulation of 

24 the affairs and conduct of the business of 


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1 AIFA, consistent with the purpose, goals, objec2 tives, and policies set forth in this Act; 

3 (B) establish subcommittees, including an 

4 audit committee that is composed solely of 

5 members of the Board of Directors who are 

6 independent of the senior management of 

7 AIFA; 

8 (C) develop and approve, in consultation 

9 with senior management, a conflict-of-interest 

10 policy for the Board of Directors and for senior 

11 management; 

12 (D) approve or disapprove internal policies 

13 that the chief executive officer shall submit to 

14 the Board of Directors, including— 

15 (i) policies regarding the loan applica16 tion and approval process, including— 

17 (I) disclosure and application 

18 procedures to be followed by entities 

19 in the course of nominating infra20 structure projects for assistance under 

21 this Act; 

22 (II) guidelines for the selection 

23 and approval of projects; 


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1 (III) specific criteria for deter2 mining eligibility for project selection, 

3 consistent with title II; and 

4 (IV) standardized terms and con5 ditions, fee schedules, or legal require6 ments of a contract or program, so as 

7 to carry out this Act; and 

8 (ii) operational guidelines; and 

9 (E) approve or disapprove a multi-year or 

10 1-year business plan and budget for AIFA; 

11 (3) ensure that AIFA is at all times operated 

12 in a manner that is consistent with this Act, by— 

13 (A) monitoring and assessing the effective14 ness of AIFA in achieving its strategic goals; 

15 (B) periodically reviewing internal policies; 

16 (C) reviewing and approving annual busi17 ness plans, annual budgets, and long-term 

18 strategies submitted by the chief executive offi19 cer; 

20 (D) reviewing and approving annual re21 ports submitted by the chief executive officer; 

22 (E) engaging one or more external audi23 tors, as set forth in this Act; and 

24 (F) reviewing and approving all changes to 

25 the organization of senior management; 


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1 (4) appoint and fix, by a vote of 5 of the 7 vot2 ing members of the Board of Directors, and without 

3 regard to the provisions of chapter 51 or subchapter 

4 III of chapter 53 of title 5, United States Code, the 

5 compensation and adjustments to compensation of 

6 all AIFA personnel, provided that in appointing and 

7 fixing any compensation or adjustments to com8 pensation under this paragraph, the Board shall— 

9 (A) consult with, and seek to maintain 

10 comparability with, other comparable Federal 

11 personnel; 

12 (B) consult with the Office of Personnel 

13 Management; and 

14 (C) carry out such duties consistent with 

15 merit principles, where applicable, as well as the 

16 education, experience, level of responsibility, ge17 ographic differences, and retention and recruit18 ment needs in determining compensation of per19 sonnel; 

20 (5) establish such other criteria, requirements, 

21 or procedures as the Board of Directors may con22 sider to be appropriate in carrying out this Act; 

23 (6) serve as the primary liaison for AIFA in 

24 interactions with Congress, the Executive Branch, 

25 and State and local governments, and to represent 


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1 the interests of AIFA in such interactions and oth2 ers; 

3 (7) approve by a vote of 5 of the 7 voting mem4 bers of the Board of Directors any changes to the 

5 bylaws or internal policies of AIFA; 

6 (8) have the authority and responsibility— 

7 (A) to oversee entering into and carry out 

8 such contracts, leases, cooperative agreements, 

9 or other transactions as are necessary to carry 

10 out this Act with— 

11 (i) any Federal department or agency; 

12 (ii) any State, territory, or possession 

13 (or any political subdivision thereof, includ14 ing State infrastructure banks) of the 

15 United States; and 

16 (iii) any individual, public-private 

17 partnership, firm, association, or corpora18 tion; 

19 (B) to approve of the acquisition, lease, 

20 pledge, exchange, and disposal of real and per21 sonal property by AIFA and otherwise approve 

22 the exercise by AIFA of all of the usual inci23 dents of ownership of property, to the extent 

24 that the exercise of such powers is appropriate 

25 to and consistent with the purposes of AIFA; 


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1 (C) to determine the character of, and the 

2 necessity for, the obligations and expenditures 

3 of AIFA, and the manner in which the obliga4 tions and expenditures will be incurred, allowed, 

5 and paid, subject to this Act and other Federal 

6 law specifically applicable to wholly owned Fed7 eral corporations; 

8 (D) to execute, in accordance with applica9 ble bylaws and regulations, appropriate instru10 ments; 

11 (E) to approve other forms of credit en12 hancement that AIFA may provide to eligible 

13 projects, as long as the forms of credit enhance14 ments are consistent with the purposes of this 

15 Act and terms set forth in title II; 

16 (F) to exercise all other lawful powers 

17 which are necessary or appropriate to carry out, 

18 and are consistent with, the purposes of AIFA; 

19 (G) to sue or be sued in the corporate ca20 pacity of AIFA in any court of competent juris21 diction; 

22 (H) to indemnify the members of the 

23 Board of Directors and officers of AIFA for 

24 any liabilities arising out of the actions of the 

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1 cordance with, and subject to the limitations 

2 contained in this Act; 

3 (I) to review all financial assistance pack4 ages to all eligible infrastructure projects, as 

5 submitted by the chief executive officer and to 

6 approve, postpone, or deny the same by major7 ity vote; 

8 (J) to review all restructuring proposals 

9 submitted by the chief executive officer, includ10 ing assignation, pledging, or disposal of the in11 terest of AIFA in a project, including payment 

12 or income from any interest owned or held by 

13 AIFA, and to approve, postpone, or deny the 

14 same by majority vote; and 

15 (K) to enter into binding commitments, as 

16 specified in approved financial assistance pack17 ages; 

18 (9) delegate to the chief executive officer those 

19 duties that the Board of Directors deems appro20 priate, to better carry out the powers and purposes 

21 of the Board of Directors under this section; and 

22 (10) to approve a maximum aggregate amount 

23 of outstanding obligations of AIFA at any given 

24 time, taking into consideration funding, and the size 


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1 of AIFA’s addressable market for infrastructure 

2 projects. 

3 SEC. 249. SENIOR MANAGEMENT. 

4 (a) IN GENERAL.—Senior management shall support 

5 the chief executive officer in the discharge of the respon6 sibilities of the chief executive officer. 

7 (b) APPOINTMENT OF SENIOR MANAGEMENT.—The 

8 chief executive officer shall appoint such senior managers 

9 as are necessary to carry out the purpose of AIFA, as 

10 approved by a majority vote of the voting members of the 

11 Board of Directors. 

12 (c) TERM.—Each member of senior management 

13 shall serve at the pleasure of the chief executive officer 

14 and the Board of Directors. 

15 (d) REMOVAL OF SENIOR MANAGEMENT.—Any mem16 ber of senior management may be removed, either by a 

17 majority of the voting members of the Board of Directors 

18 upon request by the chief executive officer, or otherwise 

19 by vote of not fewer than 5 voting members of the Board 

20 of Directors. 

21 (e) SENIOR MANAGEMENT.— 

22 (1) IN GENERAL.—Each member of senior 

23 management shall report directly to the chief execu24 tive officer, other than the Chief Risk Officer, who 

25 shall report directly to the Board of Directors. 


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1 (2) DUTIES AND RESPONSIBILITIES.— 

2 (A) CHIEF FINANCIAL OFFICER.—The 

3 Chief Financial Officer shall be responsible for 

4 all financial functions of AIFA, provided that, 

5 at the discretion of the Board of Directors, spe6 cific functions of the Chief Financial Officer 

7 may be delegated externally. 

8 (B) CHIEF RISK OFFICER.—The Chief 

9 Risk Officer shall be responsible for all func10 tions of AIFA relating to— 

11 (i) the creation of financial, credit, 

12 and operational risk management guide13 lines and policies; 

14 (ii) credit analysis for infrastructure 

15 projects; 

16 (iii) the creation of conforming stand17 ards for infrastructure finance agreements; 

18 (iv) the monitoring of the financial, 

19 credit, and operational exposure of AIFA; 

20 and 

21 (v) risk management and mitigation 

22 actions, including by reporting such ac23 tions, or recommendations of such actions 

24 to be taken, directly to the Board of Direc25 tors. 


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1 (C) CHIEF COMPLIANCE OFFICER.—The 

2 Chief Compliance Officer shall be responsible 

3 for all functions of AIFA relating to internal 

4 audits, accounting safeguards, and the enforce5 ment of such safeguards and other applicable 

6 requirements. 

7 (D) GENERAL COUNSEL.—The General 

8 Counsel shall be responsible for all functions of 

9 AIFA relating to legal matters and, in consulta10 tion with the chief executive officer, shall be re11 sponsible for ensuring that AIFA complies with 

12 all applicable law. 

13 (E) CHIEF OPERATIONS OFFICER.—The 

14 Chief Operations Officer shall be responsible for 

15 all operational functions of AIFA, including 

16 those relating to the continuing operations and 

17 performance of all infrastructure projects in 

18 which AIFA retains an interest and for all 

19 AIFA functions related to human resources. 

20 (F) CHIEF LENDING OFFICER.—The Chief 

21 Lending Officer shall be responsible for— 

22 (i) all functions of AIFA relating to 

23 the development of project pipeline, finan24 cial structuring of projects, selection of in25 frastructure projects to be reviewed by the 


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1 Board of Directors, preparation of infra2 structure projects to be presented to the 

3 Board of Directors, and set aside for rural 

4 infrastructure projects; 

5 (ii) the creation and management of— 

6 (I) a Center for Excellence to 

7 provide technical assistance to public 

8 sector borrowers in the development 

9 and financing of infrastructure 

10 projects; and 

11 (II) an Office of Rural Assistance 

12 to provide technical assistance in the 

13 development and financing of rural in14 frastructure projects; and 

15 (iii) the establishment of guidelines to 

16 ensure diversification of lending activities 

17 by region, infrastructure project type, and 

18 project size. 

19 (f) CHANGES TO SENIOR MANAGEMENT.—The Board 

20 of Directors, in consultation with the chief executive offi21 cer, may alter the structure of the senior management of 

22 AIFA at any time to better accomplish the goals, objec23 tives, and purposes of AIFA, provided that the functions 

24 of the Chief Financial Officer set forth in subsection (e) 


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1 remain separate from the functions of the Chief Risk Offi2 cer set forth in subsection (e). 

3 (g) CONFLICTS OF INTEREST.—No individual ap4 pointed to senior management may— 

5 (1) hold any other public office; 

6 (2) have any financial interest in an infrastruc7 ture project then being considered by the Board of 

8 Directors, unless that interest is placed in a blind 

9 trust; or 

10 (3) have any financial interest in an investment 

11 institution or its affiliates, AIFA or its affiliates, or 

12 other entity then seeking or likely to seek financial 

13 assistance for any infrastructure project from AIFA, 

14 unless any such interest is placed in a blind trust 

15 during the term of service of that individual in a 

16 senior management position, and for a period of 2 

17 years thereafter. 

18 SEC. 250. SPECIAL INSPECTOR GENERAL FOR AIFA. 

19 (a) IN GENERAL.—During the first 5 operating years 

20 of AIFA, the Office of the Inspector General of the De21 partment of the Treasury shall have responsibility for 

22 AIFA. 

23 (b) OFFICE OF THE SPECIAL INSPECTOR GEN24 ERAL.—Effective 5 years after the date of enactment of 

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1 tablished the Office of the Special Inspector General for 

2 AIFA. 

3 (c) APPOINTMENT OF INSPECTOR GENERAL; RE4 MOVAL.— 

5 (1) HEAD OF OFFICE.—The head of the Office 

6 of the Special Inspector General for AIFA shall be 

7 the Special Inspector General for AIFA (in this Act 

8 referred to as the ‘‘Special Inspector General’’), who 

9 shall be appointed by the President, by and with the 

10 advice and consent of the Senate. 

11 (2) BASIS OF APPOINTMENT.—The appoint12 ment of the Special Inspector General shall be made 

13 on the basis of integrity and demonstrated ability in 

14 accounting, auditing, financial analysis, law, man15 agement analysis, public administration, or inves16 tigations. 

17 (3) TIMING OF NOMINATION.—The nomination 

18 of an individual as Special Inspector General shall 

19 be made as soon as is practicable after the effective 

20 date under subsection (b). 

21 (4) REMOVAL.—The Special Inspector General 

22 shall be removable from office in accordance with 

23 the provisions of section 3(b) of the Inspector Gen24 eral Act of 1978 (5 U.S.C. App.). 


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1 (5) RULE OF CONSTRUCTION.—For purposes of 

2 section 7324 of title 5, United States Code, the Spe3 cial Inspector General shall not be considered an em4 ployee who determines policies to be pursued by the 

5 United States in the nationwide administration of 

6 Federal law. 

7 (6) RATE OF PAY.—The annual rate of basic 

8 pay of the Special Inspector General shall be the an9 nual rate of basic pay for an Inspector General 

10 under section 3(e) of the Inspector General Act of 

11 1978 (5 U.S.C. App.). 

12 (d) DUTIES.— 

13 (1) IN GENERAL.—It shall be the duty of the 

14 Special Inspector General to conduct, supervise, and 

15 coordinate audits and investigations of the business 

16 activities of AIFA. 

17 (2) OTHER SYSTEMS, PROCEDURES, AND CON18 TROLS.—The Special Inspector General shall estab19 lish, maintain, and oversee such systems, procedures, 

20 and controls as the Special Inspector General con21 siders appropriate to discharge the duty under para22 graph (1). 

23 (3) ADDITIONAL DUTIES.—In addition to the 

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1 sponsibilities of inspectors general under the Inspec2 tor General Act of 1978. 

3 (e) POWERS AND AUTHORITIES.— 

4 (1) IN GENERAL.—In carrying out the duties 

5 specified in subsection (c), the Special Inspector 

6 General shall have the authorities provided in section 

7 6 of the Inspector General Act of 1978. 

8 (2) ADDITIONAL AUTHORITY.—The Special In9 spector General shall carry out the duties specified 

10 in subsection (c)(1) in accordance with section 

11 4(b)(1) of the Inspector General Act of 1978. 

12 (f) PERSONNEL, FACILITIES, AND OTHER RE13 SOURCES.— 

14 (1) ADDITIONAL OFFICERS.— 

15 (A) The Special Inspector General may se16 lect, appoint, and employ such officers and em17 ployees as may be necessary for carrying out 

18 the duties of the Special Inspector General, 

19 subject to the provisions of title 5, United 

20 States Code, governing appointments in the 

21 competitive service, and the provisions of chap22 ter 51 and subchapter III of chapter 53 of such 

23 title, relating to classification and General 

24 Schedule pay rates. 


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1 (B) The Special Inspector General may ex2 ercise the authorities of subsections (b) through 

3 (i) of section 3161 of title 5, United States 

4 Code (without regard to subsection (a) of that 

5 section). 

6 (2) RETENTION OF SERVICES.—The Special In7 spector General may obtain services as authorized by 

8 section 3109 of title 5, United States Code, at daily 

9 rates not to exceed the equivalent rate prescribed for 

10 grade GS–15 of the General Schedule by section 

11 5332 of such title. 

12 (3) ABILITY TO CONTRACT FOR AUDITS, STUD13 IES, AND OTHER SERVICES.—The Special Inspector 

14 General may enter into contracts and other arrange15 ments for audits, studies, analyses, and other serv16 ices with public agencies and with private persons, 

17 and make such payments as may be necessary to 

18 carry out the duties of the Special Inspector Gen19 eral. 

20 (4) REQUEST FOR INFORMATION.— 

21 (A) IN GENERAL.—Upon request of the 

22 Special Inspector General for information or as23 sistance from any department, agency, or other 

24 entity of the Federal Government, the head of 

25 such entity shall, insofar as is practicable and 


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1 not in contravention of any existing law, furnish 

2 such information or assistance to the Special 

3 Inspector General, or an authorized designee. 

4 (B) REFUSAL TO COMPLY.—Whenever in5 formation or assistance requested by the Spe6 cial Inspector General is, in the judgment of the 

7 Special Inspector General, unreasonably refused 

8 or not provided, the Special Inspector General 

9 shall report the circumstances to the Secretary 

10 of the Treasury, without delay. 

11 (g) REPORTS.— 

12 (1) ANNUAL REPORT.—Not later than 1 year 

13 after the confirmation of the Special Inspector Gen14 eral, and every calendar year thereafter, the Special 

15 Inspector General shall submit to the President a re16 port summarizing the activities of the Special In17 spector General during the previous 1-year period 

18 ending on the date of such report. 

19 (2) PUBLIC DISCLOSURES.—Nothing in this 

20 subsection shall be construed to authorize the public 

21 disclosure of information that is— 

22 (A) specifically prohibited from disclosure 

23 by any other provision of law; 

24 (B) specifically required by Executive order 

25 to be protected from disclosure in the interest 


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1 of national defense or national security or in 

2 the conduct of foreign affairs; or 

3 (C) a part of an ongoing criminal inves4 tigation. 

5 SEC. 251. OTHER PERSONNEL. 

6 Except as otherwise provided in the bylaws of AIFA, 

7 the chief executive officer, in consultation with the Board 

8 of Directors, shall appoint, remove, and define the duties 

9 of such qualified personnel as are necessary to carry out 

10 the powers, duties, and purpose of AIFA, other than sen11 ior management, who shall be appointed in accordance 

12 with section 249. 

13 SEC. 252. COMPLIANCE. 

14 The provision of assistance by the Board of Directors 

15 pursuant to this Act shall not be construed as superseding 

16 any provision of State law or regulation otherwise applica17 ble to an infrastructure project. 

18 PART II—TERMS AND LIMITATIONS ON DIRECT 

19 LOANS AND LOAN GUARANTEES 

20 SEC. 253. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM 

21 AIFA AND TERMS AND LIMITATIONS OF 

22 LOANS. 

23 (a) IN GENERAL.—Any project whose use or purpose 

24 is private and for which no public benefit is created shall 

25 not be eligible for financial assistance from AIFA under 


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1 this Act. Financial assistance under this Act shall only 

2 be made available if the applicant for such assistance has 

3 demonstrated to the satisfaction of the Board of Directors 

4 that the infrastructure project for which such assistance 

5 is being sought— 

6 (1) is not for the refinancing of an existing in7 frastructure project; and 

8 (2) meets— 

9 (A) any pertinent requirements set forth in 

10 this Act; 

11 (B) any criteria established by the Board 

12 of Directors or chief executive officer in accord13 ance with this Act; and 

14 (C) the definition of a transportation infra15 structure project, water infrastructure project, 

16 or energy infrastructure project. 

17 (b) CONSIDERATIONS.—The criteria established by 

18 the Board of Directors pursuant to this Act shall provide 

19 adequate consideration of— 

20 (1) the economic, financial, technical, environ21 mental, and public benefits and costs of each infra22 structure project under consideration for financial 

23 assistance under this Act, prioritizing infrastructure 

24 projects that— 


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1 (A) contribute to regional or national eco2 nomic growth; 

3 (B) offer value for money to taxpayers; 

4 (C) demonstrate a clear and significant 

5 public benefit; 

6 (D) lead to job creation; and 

7 (E) mitigate environmental concerns; 

8 (2) the means by which development of the in9 frastructure project under consideration is being fi10 nanced, including— 

11 (A) the terms, conditions, and structure of 

12 the proposed financing; 

13 (B) the credit worthiness and standing of 

14 the project sponsors, providers of equity, and 

15 cofinanciers; 

16 (C) the financial assumptions and projec17 tions on which the infrastructure project is 

18 based; and 

19 (D) whether there is sufficient State or 

20 municipal political support for the successful 

21 completion of the infrastructure project; 

22 (3) the likelihood that the provision of assist23 ance by AIFA will cause such development to pro24 ceed more promptly and with lower costs than would 

25 be the case without such assistance; 


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1 (4) the extent to which the provision of assist2 ance by AIFA maximizes the level of private invest3 ment in the infrastructure project or supports a 

4 public-private partnership, while providing a signifi5 cant public benefit; 

6 (5) the extent to which the provision of assist7 ance by AIFA can mobilize the participation of other 

8 financing partners in the infrastructure project; 

9 (6) the technical and operational viability of the 

10 infrastructure project; 

11 (7) the proportion of financial assistance from 

12 AIFA; 

13 (8) the geographic location of the project in an 

14 effort to have geographic diversity of projects funded 

15 by AIFA; 

16 (9) the size of the project and its impact on the 

17 resources of AIFA; 

18 (10) the infrastructure sector of the project, in 

19 an effort to have projects from more than one sector 

20 funded by AIFA; and 

21 (11) encourages use of innovative procurement, 

22 asset management, or financing to minimize the all23 in-life-cycle cost, and improve the cost-effectiveness 

24 of a project. 

25 (c) APPLICATION.— 


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1 (1) IN GENERAL.—Any eligible entity seeking 

2 assistance from AIFA under this Act for an eligible 

3 infrastructure project shall submit an application to 

4 AIFA at such time, in such manner, and containing 

5 such information as the Board of Directors or the 

6 chief executive officer may require. 

7 (2) REVIEW OF APPLICATIONS.—AIFA shall re8 view applications for assistance under this Act on an 

9 ongoing basis. The chief executive officer, working 

10 with the senior management, shall prepare eligible 

11 infrastructure projects for review and approval by 

12 the Board of Directors. 

13 (3) DEDICATED REVENUE SOURCES.—The Fed14 eral credit instrument shall be repayable, in whole or 

15 in part, from tolls, user fees, or other dedicated rev16 enue sources that also secure the infrastructure 

17 project obligations. 

18 (d) ELIGIBLE INFRASTRUCTURE PROJECT COSTS.— 

19 (1) IN GENERAL.—Except as provided in para20 graph (2), to be eligible for assistance under this 

21 Act, an infrastructure project shall have project 

22 costs that are reasonably anticipated to equal or ex23 ceed $100,000,000. 

24 (2) RURAL INFRASTRUCTURE PROJECTS.—To 

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1 frastructure project shall have project costs that are 

2 reasonably anticipated to equal or exceed 

3 $25,000,000. 

4 (e) LOAN ELIGIBILITY AND MAXIMUM AMOUNTS.— 

5 (1) IN GENERAL.—The amount of a direct loan 

6 or loan guarantee under this Act shall not exceed 

7 the lesser of 50 percent of the reasonably anticipated 

8 eligible infrastructure project costs or, if the direct 

9 loan or loan guarantee does not receive an invest10 ment grade rating, the amount of the senior project 

11 obligations. 

12 (2) MAXIMUM ANNUAL LOAN AND LOAN GUAR13 ANTEE VOLUME.—The aggregate amount of direct 

14 loans and loan guarantees made by AIFA in any 

15 single fiscal year may not exceed— 

16 (A) during the first 2 fiscal years of the 

17 operations of AIFA, $10,000,000,000; 

18 (B) during fiscal years 3 through 9 of the 

19 operations of AIFA, $20,000,000,000; or 

20 (C) during any fiscal year thereafter, 

21 $50,000,000,000. 

22 (f) STATE AND LOCAL PERMITS REQUIRED.—The 

23 provision of assistance by the Board of Directors pursuant 

24 to this Act shall not be deemed to relieve any recipient 

25 of such assistance, or the related infrastructure project, 


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1 of any obligation to obtain required State and local per2 mits and approvals. 

3 SEC. 254. LOAN TERMS AND REPAYMENT. 

4 (a) IN GENERAL.—A direct loan or loan guarantee 

5 under this Act with respect to an eligible infrastructure 

6 project shall be on such terms, subject to such conditions, 

7 and contain such covenants, representations, warranties, 

8 and requirements (including requirements for audits) as 

9 the chief executive officer determines appropriate. 

10 (b) TERMS.—A direct loan or loan guarantee under 

11 this Act— 

12 (1) shall— 

13 (A) be payable, in whole or in part, from 

14 tolls, user fees, or other dedicated revenue 

15 sources that also secure the senior project obli16 gations (such as availability payments and dedi17 cated State or local revenues); and 

18 (B) include a rate covenant, coverage re19 quirement, or similar security feature sup20 porting the project obligations; and 

21 (2) may have a lien on revenues described in 

22 paragraph (1), subject to any lien securing project 

23 obligations. 

24 (c) BASE INTEREST RATE.—The base interest rate 

25 on a direct loan under this Act shall be not less than the 


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1 yield on United States Treasury obligations of a similar 

2 maturity to the maturity of the direct loan. 

3 (d) RISK ASSESSMENT.—Before entering into an 

4 agreement for assistance under this Act, the chief execu5 tive officer, in consultation with the Director of the Office 

6 of Management and Budget and considering rating agency 

7 preliminary or final rating opinion letters of the project 

8 under this section, shall estimate an appropriate Federal 

9 credit subsidy amount for each direct loan and loan guar10 antee, taking into account such letter, as well as any com11 parable market rates available for such a loan or loan 

12 guarantee, should any exist. The final credit subsidy cost 

13 for each loan and loan guarantee shall be determined con14 sistent with the Federal Credit Reform Act, 2 U.S.C. 661a 

15 et seq. 

16 (e) CREDIT FEE.—With respect to each agreement 

17 for assistance under this Act, the chief executive officer 

18 may charge a credit fee to the recipient of such assistance 

19 to pay for, over time, all or a portion of the Federal credit 

20 subsidy determined under subsection (d), with the remain21 der paid by the account established for AIFA; provided, 

22 that the source of fees paid under this section shall not 

23 be a loan or debt obligation guaranteed by the Federal 

24 Government. In the case of a direct loan, such credit fee 


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1 shall be in addition to the base interest rate established 

2 under subsection (c). 

3 (f) MATURITY DATE.—The final maturity date of a 

4 direct loan or loan guaranteed by AIFA under this Act 

5 shall be not later than 35 years after the date of substan6 tial completion of the infrastructure project, as determined 

7 by the chief executive officer. 

8 (g) RATING OPINION LETTER.— 

9 (1) IN GENERAL.—The chief executive officer 

10 shall require each applicant for assistance under this 

11 Act to provide a rating opinion letter from at least 

12 1 ratings agency, indicating that the senior obliga13 tions of the infrastructure project, which may be the 

14 Federal credit instrument, have the potential to 

15 achieve an investment-grade rating. 

16 (2) RURAL INFRASTRUCTURE PROJECTS.—With 

17 respect to a rural infrastructure project, a rating 

18 agency opinion letter described in paragraph (1) 

19 shall not be required, except that the loan or loan 

20 guarantee shall receive an internal rating score, 

21 using methods similar to the ratings agencies gen22 erated by AIFA, measuring the proposed direct loan 

23 or loan guarantee against comparable direct loans or 

24 loan guarantees of similar credit quality in a similar 

25 sector. 


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1 (h) INVESTMENT-GRADE RATING REQUIREMENT.— 

2 (1) LOANS AND LOAN GUARANTEES.—The exe3 cution of a direct loan or loan guarantee under this 

4 Act shall be contingent on the senior obligations of 

5 the infrastructure project receiving an investment6 grade rating. 

7 (2) RATING OF AIFA OVERALL PORTFOLIO.— 

8 The average rating of the overall portfolio of AIFA 

9 shall be not less than investment grade after 5 years 

10 of operation. 

11 (i) TERMS AND REPAYMENT OF DIRECT LOANS.— 

12 (1) SCHEDULE.—The chief executive officer 

13 shall establish a repayment schedule for each direct 

14 loan under this Act, based on the projected cash 

15 flow from infrastructure project revenues and other 

16 repayment sources. 

17 (2) COMMENCEMENT.—Scheduled loan repay18 ments of principal or interest on a direct loan under 

19 this Act shall commence not later than 5 years after 

20 the date of substantial completion of the infrastruc21 ture project, as determined by the chief executive of22 ficer of AIFA. 

23 (3) DEFERRED PAYMENTS OF DIRECT

24 LOANS.— 


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1 (A) AUTHORIZATION.—If, at any time 

2 after the date of substantial completion of an 

3 infrastructure project assisted under this Act, 

4 the infrastructure project is unable to generate 

5 sufficient revenues to pay the scheduled loan re6 payments of principal and interest on the direct 

7 loan under this Act, the chief executive officer 

8 may allow the obligor to add unpaid principal 

9 and interest to the outstanding balance of the 

10 direct loan, if the result would benefit the tax11 payer. 

12 (B) INTEREST.—Any payment deferred 

13 under subparagraph (A) shall— 

14 (i) continue to accrue interest, in ac15 cordance with the terms of the obligation, 

16 until fully repaid; and 

17 (ii) be scheduled to be amortized over 

18 the remaining term of the loan. 

19 (C) CRITERIA.— 

20 (i) IN GENERAL.—Any payment defer21 ral under subparagraph (A) shall be con22 tingent on the infrastructure project meet23 ing criteria established by the Board of Di24 rectors. 


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1 (ii) REPAYMENT STANDARDS.—The 

2 criteria established under clause (i) shall 

3 include standards for reasonable assurance 

4 of repayment. 

5 (4) PREPAYMENT OF DIRECT LOANS.— 

6 (A) USE OF EXCESS REVENUES.—Any ex7 cess revenues that remain after satisfying 

8 scheduled debt service requirements on the in9 frastructure project obligations and direct loan 

10 and all deposit requirements under the terms of 

11 any trust agreement, bond resolution, or similar 

12 agreement securing project obligations under 

13 this Act may be applied annually to prepay the 

14 direct loan, without penalty. 

15 (B) USE OF PROCEEDS OF REFI16 NANCING.—A direct loan under this Act may be 

17 prepaid at any time, without penalty, from the 

18 proceeds of refinancing from non-Federal fund19 ing sources. 

20 (5) SALE OF DIRECT LOANS.— 

21 (A) IN GENERAL.—As soon as is prac22 ticable after substantial completion of an infra23 structure project assisted under this Act, and 

24 after notifying the obligor, the chief executive 

25 officer may sell to another entity, or reoffer into 


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1 the capital markets, a direct loan for the infra2 structure project, if the chief executive officer 

3 determines that the sale or reoffering can be 

4 made on favorable terms for the taxpayer. 

5 (B) CONSENT OF OBLIGOR.—In making a 

6 sale or reoffering under subparagraph (A), the 

7 chief executive officer may not change the origi8 nal terms and conditions of the direct loan, 

9 without the written consent of the obligor. 

10 (j) LOAN GUARANTEES.— 

11 (1) TERMS.—The terms of a loan guaranteed 

12 by AIFA under this Act shall be consistent with the 

13 terms set forth in this section for a direct loan, ex14 cept that the rate on the guaranteed loan and any 

15 payment, pre-payment, or refinancing features shall 

16 be negotiated between the obligor and the lender, 

17 with the consent of the chief executive officer. 

18 (2) GUARANTEED LENDER.—A guaranteed 

19 lender shall be limited to those lenders meeting the 

20 definition of that term in section 601(a) of title 23, 

21 United States Code. 

22 (k) COMPLIANCE WITH FCRA—IN GENERAL.—Di23 rect loans and loan guarantees authorized by this Act shall 

24 be subject to the provisions of the Federal Credit Reform 

25 Act of 1990 (2 U.S.C. 661 et seq.), as amended. 


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1 SEC. 255. COMPLIANCE AND ENFORCEMENT. 

2 (a) CREDIT AGREEMENT.—Notwithstanding any 

3 other provision of law, each eligible entity that receives 

4 assistance under this Act from AIFA shall enter into a 

5 credit agreement that requires such entity to comply with 

6 all applicable policies and procedures of AIFA, in addition 

7 to all other provisions of the loan agreement. 

8 (b) AIFA AUTHORITY ON NONCOMPLIANCE.—In any 

9 case in which a recipient of assistance under this Act is 

10 materially out of compliance with the loan agreement, or 

11 any applicable policy or procedure of AIFA, the Board of 

12 Directors may take action to cancel unutilized loan 

13 amounts, or to accelerate the repayment terms of any out14 standing obligation. 

15 (c) Nothing in this Act is intended to affect existing 

16 provisions of law applicable to the planning, development, 

17 construction, or operation of projects funded under the 

18 Act. 

19 SEC. 256. AUDITS; REPORTS TO THE PRESIDENT AND CON20 GRESS. 

21 (a) ACCOUNTING.—The books of account of AIFA 

22 shall be maintained in accordance with generally accepted 

23 accounting principles, and shall be subject to an annual 

24 audit by independent public accountants of nationally rec25 ognized standing appointed by the Board of Directors. 

26 (b) REPORTS.— 


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1 (1) BOARD OF DIRECTORS.—Not later than 90 

2 days after the last day of each fiscal year, the Board 

3 of Directors shall submit to the President and Con4 gress a complete and detailed report with respect to 

5 the preceding fiscal year, setting forth— 

6 (A) a summary of the operations of AIFA, 

7 for such fiscal year; 

8 (B) a schedule of the obligations of AIFA 

9 and capital securities outstanding at the end of 

10 such fiscal year, with a statement of the 

11 amounts issued and redeemed or paid during 

12 such fiscal year; 

13 (C) the status of infrastructure projects re14 ceiving funding or other assistance pursuant to 

15 this Act during such fiscal year, including all 

16 nonperforming loans, and including disclosure 

17 of all entities with a development, ownership, or 

18 operational interest in such infrastructure 

19 projects; 

20 (D) a description of the successes and 

21 challenges encountered in lending to rural com22 munities, including the role of the Center for 

23 Excellence and the Office of Rural Assistance 

24 established under this Act; and 


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1 (E) an assessment of the risks of the port2 folio of AIFA, prepared by an independent 

3 source. 

4 (2) GAO.—Not later than 5 years after the 

5 date of enactment of this Act, the Comptroller Gen6 eral of the United States shall conduct an evaluation 

7 of, and shall submit to Congress a report on, activi8 ties of AIFA for the fiscal years covered by the re9 port that includes an assessment of the impact and 

10 benefits of each funded infrastructure project, in11 cluding a review of how effectively each such infra12 structure project accomplished the goals prioritized 

13 by the infrastructure project criteria of AIFA. 

14 (c) BOOKS AND RECORDS.— 

15 (1) IN GENERAL.—AIFA shall maintain ade16 quate books and records to support the financial 

17 transactions of AIFA, with a description of financial 

18 transactions and infrastructure projects receiving 

19 funding, and the amount of funding for each such 

20 project maintained on a publically accessible data21 base. 

22 (2) AUDITS BY THE SECRETARY AND GAO.— 

23 The books and records of AIFA shall at all times be 

24 open to inspection by the Secretary of the Treasury, 


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1 the Special Inspector General, and the Comptroller 

2 General of the United States. 

3 PART III—FUNDING OF AIFA 

4 SEC. 257. ADMINISTRATIVE FEES. 

5 (a) IN GENERAL.—In addition to fees that may be 

6 collected under section 254(e), the chief executive officer 

7 shall establish and collect fees from eligible funding recipi8 ents with respect to loans and loan guarantees under this 

9 Act that— 

10 (1) are sufficient to cover all or a portion of the 

11 administrative costs to the Federal Government for 

12 the operations of AIFA, including the costs of expert 

13 firms, including counsel in the field of municipal and 

14 project finance, and financial advisors to assist with 

15 underwriting, credit analysis, or other independent 

16 reviews, as appropriate; 

17 (2) may be in the form of an application or 

18 transaction fee, or other form established by the 

19 CEO; and 

20 (3) may be based on the risk premium associ21 ated with the loan or loan guarantee, taking into 

22 consideration— 

23 (A) the price of United States Treasury 

24 obligations of a similar maturity; 

25 (B) prevailing market conditions; 


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1 (C) the ability of the infrastructure project 

2 to support the loan or loan guarantee; and 

3 (D) the total amount of the loan or loan 

4 guarantee. 

5 (b) AVAILABILITY OF AMOUNTS.—Amounts collected 

6 under subsections (a)(1), (a)(2), and (a)(3) shall be avail7 able without further action; provided further, that the 

8 source of fees paid under this section shall not be a loan 

9 or debt obligation guaranteed by the Federal Government. 

10 SEC. 258. EFFICIENCY OF AIFA. 

11 The chief executive officer shall, to the extent pos12 sible, take actions consistent with this Act to minimize the 

13 risk and cost to the taxpayer of AIFA activities. Fees and 

14 premiums for loan guarantee or insurance coverage will 

15 be set at levels that minimize administrative and Federal 

16 credit subsidy costs to the Government, as defined in Sec17 tion 502 of the Federal Credit Reform Act of 1990, as 

18 amended, of such coverage, while supporting achievement 

19 of the program’s objectives, consistent with policies as set 

20 forth in the Business Plan. 

21 SEC. 259. FUNDING. 

22 There is hereby appropriated to AIFA to carry out 

23 this Act, for the cost of direct loans and loan guarantees 

24 subject to the limitations under Section 253, and for ad25 ministrative costs, $10,000,000,000, to remain available 


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1 until expended; Provided, That such costs, including the 

2 costs of modifying such loans, shall be as defined in sec3 tion 502 of the Federal Credit Reform Act of 1990, as 

4 amended; Provided further, that of this amount, not more 

5 than $25,000,000 for each of fiscal years 2012 through 

6 2013, and not more than $50,000,000 for fiscal year 2014 

7 may be used for administrative costs of AIFA; provided 

8 further, that not more than 5 percent of such amount shall 

9 be used to offset subsidy costs associated with rural 

10 projects. Amounts authorized shall be available without 

11 further action. 

12 PART IV—EXTENSION OF EXEMPTION FROM AL13 TERNATIVE MINIMUM TAX TREATMENT FOR 

14 CERTAIN TAX-EXEMPT BONDS 

15 SEC. 260. EXTENSION OF EXEMPTION FROM ALTERNATIVE 

16 MINIMUM TAX TREATMENT FOR CERTAIN 

17 TAX-EXEMPT BONDS. 

18 (a) IN GENERAL.—Clause (vi) of section 57(a)(5)(C) 

19 of the Internal Revenue Code of 1986 is amended— 

20 (1) by striking ‘‘January 1, 2011’’ in subclause 

21 (I) and inserting ‘‘January 1, 2013’’; and 

22 (2) by striking ‘‘AND 2010’’ in the heading and 

23 inserting ‘‘, 2010, 2011, AND 2012’’. 


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1 (b) ADJUSTED CURRENT EARNINGS.—Clause (iv) of 

2 section 56(g)(4)(B) of the Internal Revenue Code of 1986 

3 is amended— 

4 (1) by striking ‘‘January 1, 2011’’ in subclause 

5 (I) and inserting ‘‘January 1, 2013’’; and 

6 (2) by striking ‘‘AND 2010’’ in the heading and 

7 inserting ‘‘, 2010, 2011, AND 2012’’. 

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

9 this section shall apply to obligations issued after Decem10 ber 31, 2010. 

11 Subtitle G—Project Rebuild 

12 SEC. 261. PROJECT REBUILD. 

13 (a) DIRECT APPROPRIATIONS.—There is appro14 priated, out of any money in the Treasury not otherwise 

15 appropriated, $15,000,000,000, to remain available until 

16 September 30, 2014, for assistance to eligible entities in17 cluding States and units of general local government (as 

18 such terms are defined in section 102 of the Housing and 

19 Community Development Act of 1974 (42 U.S.C. 5302)), 

20 and qualified nonprofit organizations, businesses or con21 sortia of eligible entities for the redevelopment of aban22 doned and foreclosed-upon properties and for the stabiliza23 tion of affected neighborhoods. 

24 (b) ALLOCATION OF APPROPRIATED AMOUNTS.— 


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1 (1) IN GENERAL.—Of the amounts appro2 priated, two thirds shall be allocated to States and 

3 units of general local government based on a funding 

4 formula established by the Secretary of Housing and 

5 Urban Development (in this subtitle referred to as 

6 the ‘‘Secretary’’). Of the amounts appropriated, one 

7 third shall be distributed competitively to eligible en8 tities. 

9 (2) FORMULA TO BE DEVISED SWIFTLY.—The 

10 funding formula required under paragraph (1) shall 

11 be established and the Secretary shall announce for12 mula funding allocations, not later than 30 days 

13 after the date of enactment of this section. 

14 (3) FORMULA CRITERIA.—The Secretary may 

15 establish a minimum grant size, and the funding for16 mula required under paragraph (1) shall ensure that 

17 any amounts appropriated or otherwise made avail18 able under this section are allocated to States and 

19 units of general local government with the greatest 

20 need, as such need is determined in the discretion of 

21 the Secretary based on— 

22 (A) the number and percentage of home 

23 foreclosures in each State or unit of general 

24 local government; 


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1 (B) the number and percentage of homes 

2 in default or delinquency in each State or unit 

3 of general local government; and 

4 (C) other factors such as established pro5 gram designs, grantee capacity and perform6 ance, number and percentage of commercial 

7 foreclosures, overall economic conditions, and 

8 other market needs data, as determined by the 

9 Secretary. 

10 (4) COMPETITION CRITERIA.— 

11 (A) For the funds distributed competi12 tively, eligible entities shall be States, units of 

13 general local government, nonprofit entities, 

14 for-profit entities, and consortia of eligible enti15 ties that demonstrate capacity to use funding 

16 within the period of this program. 

17 (B) In selecting grantees, the Secretary 

18 shall ensure that grantees are in areas with the 

19 greatest number and percentage of residential 

20 and commercial foreclosures and other market 

21 needs data, as determined by the Secretary. Ad22 ditional award criteria shall include dem23 onstrated grantee capacity to execute projects 

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1 cial property and neighborhood stabilization, le2 verage, knowledge of market conditions and of 

3 effective stabilization activities to address iden4 tified conditions, and any additional factors de5 termined by the Secretary. 

6 (C) The Secretary may establish a min7 imum grant size; and 

8 (D) The Secretary shall publish competi9 tion criteria for any grants awarded under this 

10 heading not later than 60 days after appropria11 tion of funds, and applications shall be due to 

12 the Secretary within 120 days. 

13 (c) USE OF FUNDS.— 

14 (1) OBLIGATION AND EXPENDITURE.—The Sec15 retary shall obligate all funding within 150 days of 

16 enactment of this Act. Any eligible entity that re17 ceives amounts pursuant to this section shall expend 

18 all funds allocated to it within three years of the 

19 date the funds become available to the grantee for 

20 obligation. Furthermore, the Secretary shall by No21 tice establish intermediate expenditure benchmarks 

22 at the one and two year dates from the date the 

23 funds become available to the grantee for obligation. 

24 (2) PRIORITIES.— 


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1 (A) JOB CREATION.—Each grantee or eli2 gible entity shall describe how its proposed use 

3 of funds will prioritize job creation, and sec4 ondly, will address goals to stabilize neighbor5 hoods, reverse vacancy, or increase or stabilize 

6 residential and commercial property values. 

7 (B) TARGETING.—Any State or unit of 

8 general local government that receives formula 

9 amounts pursuant to this section shall, in dis10 tributing and targeting such amounts give pri11 ority emphasis and consideration to those met12 ropolitan areas, metropolitan cities, urban 

13 areas, rural areas, low- and moderate-income 

14 areas, and other areas with the greatest need, 

15 including those— 

16 (i) with the greatest percentage of 

17 home foreclosures; 

18 (ii) identified as likely to face a sig19 nificant rise in the rate of residential or 

20 commercial foreclosures; and 

21 (iii) with higher than national average 

22 unemployment rate. 

23 (C) LEVERAGE.—Each grantee or eligible 

24 entity shall describe how its proposed use of 

25 funds will leverage private funds. 


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1 (3) ELIGIBLE USES.—Amounts made available 

2 under this section may be used to— 

3 (A) establish financing mechanisms for the 

4 purchase and redevelopment of abandoned and 

5 foreclosed-upon properties, including such 

6 mechanisms as soft-seconds, loan loss reserves, 

7 and shared-equity loans for low- and moderate8 income homebuyers; 

9 (B) purchase and rehabilitate properties 

10 that have been abandoned or foreclosed upon, 

11 in order to sell, rent, or redevelop such prop12 erties; 

13 (C) establish and operate land banks for 

14 properties that have been abandoned or fore15 closed upon; 

16 (D) demolish blighted structures; 

17 (E) redevelop abandoned, foreclosed, de18 molished, or vacant properties; and 

19 (F) engage in other activities, as deter20 mined by the Secretary through notice, that are 

21 consistent with the goals of creating jobs, stabi22 lizing neighborhoods, reversing vacancy reduc23 tion, and increasing or stabilizing residential 

24 and commercial property values. 

25 (d) LIMITATIONS.— 


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1 (1) ON PURCHASES.—Any purchase of a prop2 erty under this section shall be at a price not to ex3 ceed its current market value, taking into account 

4 its current condition. 

5 (2) REHABILITATION.—Any rehabilitation of an 

6 eligible property under this section shall be to the 

7 extent necessary to comply with applicable laws, and 

8 other requirements relating to safety, quality, mar9 ketability, and habitability, in order to sell, rent, or 

10 redevelop such properties or provide a renewable en11 ergy source or sources for such properties. 

12 (3) SALE OF HOMES.—If an abandoned or fore13 closed-upon home is purchased, redeveloped, or oth14 erwise sold to an individual as a primary residence, 

15 then such sale shall be in an amount equal to or less 

16 than the cost to acquire and redevelop or rehabilitate 

17 such home or property up to a decent, safe, market18 able, and habitable condition. 

19 (4) ON DEMOLITION OF PUBLIC HOUSING.— 

20 Public housing, as defined at section 3(b)(6) of the 

21 United States Housing Act of 1937, may not be de22 molished with funds under this section. 

23 (5) ON DEMOLITION ACTIVITIES.—No more 

24 than 10 percent of any grant made under this sec25 tion may be used for demolition activities unless the 


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1 Secretary determines that such use represents an 

2 appropriate response to local market conditions. 

3 (6) ON USE OF FUNDS FOR NON-RESIDENTIAL

4 PROPERTY.—No more than 30 percent of any grant 

5 made under this section may be used for eligible ac6 tivities under subparagraphs (A), (B), and (E) of 

7 subsection (c)(3) that will not result in residential 

8 use of the property involved unless the Secretary de9 termines that such use represents an appropriate re10 sponse to local market conditions. 

11 (e) RULES OF CONSTRUCTION.— 

12 (1) IN GENERAL.—Except as otherwise pro13 vided by this section, amounts appropriated, reve14 nues generated, or amounts otherwise made avail15 able to eligible entities under this section shall be 

16 treated as though such funds were community devel17 opment block grant funds under title I of the Hous18 ing and Community Development Act of 1974 (42 

19 U.S.C. 5301 et seq.). 

20 (2) NO MATCH.—No matching funds shall be 

21 required in order for an eligible entity to receive any 

22 amounts under this section. 

23 (3) TENANT PROTECTIONS.—An eligible entity 

24 receiving a grant under this section shall comply 

25 with the 14th, 17th, 18th, 19th, 20th, 21st, 22nd 


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1 and 23rd provisos of the American Recovery and Re2 investment Act of 2009 (Public Law 111–5, 123 

3 Stat. 218–19), as amended by section 1497(b)(2) of 

4 the Dodd-Frank Wall Street Reform and Consumer 

5 Protection Act (Public Law 111–203, 124 Stat. 

6 2211). 

7 (4) VICINITY HIRING.—An eligible entity receiv8 ing a grant under this section shall comply with sec9 tion 1497(a)(8) of the Dodd-Frank Wall Street Re10 form and Consumer Protection Act (Public Law 

11 111–203, 129 Stat. 2210). 

12 (5) BUY AMERICAN.—Section 1605 of Title 

13 XVI—General Provisions of the American Recovery 

14 and Reinvestment Act of 2009—shall apply to 

15 amounts appropriated, revenues generated, and 

16 amounts otherwise made available to eligible entities 

17 under this section. 

18 (f) AUTHORITY TO SPECIFY ALTERNATIVE RE19 QUIREMENTS.— 

20 (1) IN GENERAL.—In administering the pro21 gram under this section, the Secretary may specify 

22 alternative requirements to any provision under title 

23 I of the Housing and Community Development Act 

24 of 1974 or under title I of the Cranston-Gonzalez 

25 National Affordable Housing Act of 1990 (except for 


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1 those provisions in these laws related to fair hous2 ing, nondiscrimination, labor standards, and the en3 vironment) for the purpose of expediting and facili4 tating the use of funds under this section. 

5 (2) NOTICE.—The Secretary shall provide writ6 ten notice of intent to the public via internet to exer7 cise the authority to specify alternative requirements 

8 under paragraph. 

9 (3) LOW AND MODERATE INCOME REQUIRE10 MENT.— 

11 (A) IN GENERAL.—Notwithstanding the 

12 authority of the Secretary under paragraph 

13 (1)— 

14 (i) all of the formula and competitive 

15 grantee funds appropriated or otherwise 

16 made available under this section shall be 

17 used with respect to individuals and fami18 lies whose income does not exceed 120 per19 cent of area median income; and 

20 (ii) not less than 25 percent of the 

21 formula and competitive grantee funds ap22 propriated or otherwise made available 

23 under this section shall be used for the 

24 purchase and redevelopment of eligible 

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1 viduals or families whose incomes do not 

2 exceed 50 percent of area median income. 

3 (B) RECURRENT REQUIREMENT.—The 

4 Secretary shall, by rule or order, ensure, to the 

5 maximum extent practicable and for the longest 

6 feasible term, that the sale, rental, or redevelop7 ment of abandoned and foreclosed-upon homes 

8 and residential properties under this section re9 main affordable to individuals or families de10 scribed in subparagraph (A). 

11 (g) NATIONWIDE DISTRIBUTION OF RESOURCES.— 

12 Notwithstanding any other provision of this section or the 

13 amendments made by this section, each State shall receive 

14 not less than $20,000,000 of formula funds. 

15 (h) LIMITATION ON USE OF FUNDS WITH RESPECT

16 TO EMINENT DOMAIN.—No State or unit of general local 

17 government may use any amounts received pursuant to 

18 this section to fund any project that seeks to use the power 

19 of eminent domain, unless eminent domain is employed 

20 only for a public use, which shall not be construed to in21 clude economic development that primarily benefits pri22 vate entities. 

23 (i) LIMITATION ON DISTRIBUTION OF FUNDS.— 


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1 (1) IN GENERAL.—None of the funds made 

2 available under this title or title IV shall be distrib3 uted to— 

4 (A) an organization which has been in5 dicted for a violation under Federal law relating 

6 to an election for Federal office; or 

7 (B) an organization which employs applica8 ble individuals. 

9 (2) APPLICABLE INDIVIDUALS DEFINED.—In 

10 this section, the term ‘‘applicable individual’’ means 

11 an individual who— 

12 (A) is— 

13 (i) employed by the organization in a 

14 permanent or temporary capacity; 

15 (ii) contracted or retained by the or16 ganization; or 

17 (iii) acting on behalf of, or with the 

18 express or apparent authority of, the orga19 nization; and 

20 (B) has been indicted for a violation under 

21 Federal law relating to an election for Federal 

22 office. 

23 (j) RENTAL HOUSING PREFERENCES.—Each State 

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1 tablish procedures to create preferences for the develop2 ment of affordable rental housing. 

3 (k) JOB CREATION.—If a grantee chooses to use 

4 funds to create jobs by establishing and operating a pro5 gram to maintain eligible neighborhood properties, not 

6 more than 10 percent of any grant may be used for that 

7 purpose. 

8 (l) PROGRAM SUPPORT AND CAPACITY BUILDING.— 

9 The Secretary may use up to 0.75 percent of the funds 

10 appropriated for capacity building of and support for eligi11 ble entities and grantees undertaking neighborhood sta12 bilization programs, staffing, training, technical assist13 ance, technology, monitoring, travel, enforcement, re14 search and evaluation activities. 

15 (1) Funds set aside for the purposes of this 

16 subparagraph shall remain available until September 

17 30, 2016; 

18 (2) Any funds made available under this sub19 paragraph and used by the Secretary for personnel 

20 expenses related to administering funding under this 

21 subparagraph shall be transferred to ‘‘Personnel 

22 Compensation and Benefits, Community Planning 

23 and Development’’; 

24 (3) Any funds made available under this sub25 paragraph and used by the Secretary for training or 


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1 other administrative expenses shall be transferred to 

2 ‘‘Administration, Operations, and Management, 

3 Community Planning and Development’’ for non4 personnel expenses; and 

5 (4) Any funds made available under this sub6 paragraph and used by the Secretary for technology 

7 shall be transferred to ‘‘Working Capital Fund’’. 

8 (m) ENFORCEMENT AND PREVENTION OF FRAUD

9 AND ABUSE.—The Secretary shall establish and imple10 ment procedures to prevent fraud and abuse of funds 

11 under this section, and shall impose a requirement that 

12 grantees have an internal auditor to continuously monitor 

13 grantee performance to prevent fraud, waste, and abuse. 

14 Grantees shall provide the Secretary and citizens with 

15 quarterly progress reports. The Secretary shall recapture 

16 funds from formula and competitive grantees that do not 

17 expend 100 percent of allocated funds within 3 years of 

18 the date that funds become available, and from underper19 forming or mismanaged grantees, and shall re-allocate 

20 those funds by formula to target areas with the greatest 

21 need, as determined by the Secretary through notice. The 

22 Secretary may take an alternative sanctions action only 

23 upon determining that such action is necessary to achieve 

24 program goals in a timely manner. 


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1 (n) The Secretary of Housing and Urban Develop2 ment shall to the extent feasible conform policies and pro3 cedures for grants made under this section to the policies 

4 and practices already in place for the grants made under 

5 Section 2301 of the Housing and Economic Recovery Act 

6 of 2008; Division A, Title XII of the American Recovery 

7 and Reinvestment Act of 2009; or Section 1497 of the 

8 Dodd-Frank Wall Street Reform and Consumer Protec9 tion Act. 

10 Subtitle H—National Wireless 

11 Initiative 

12 SEC. 271. DEFINITIONS. 

13 In this subtitle, the following definitions shall apply: 

14 (1) 700 MHZ BAND.—The term ‘‘700 MHz 

15 band’’ means the portion of the electromagnetic 

16 spectrum between the frequencies from 698 mega17 hertz to 806 megahertz. 

18 (2) 700 MHZ D BLOCK SPECTRUM.—The term 

19 ‘‘700 MHz D block spectrum’’ means the portion of 

20 the electromagnetic spectrum frequencies from 758 

21 megahertz to 763 megahertz and from 788 mega22 hertz to 793 megahertz. 

23 (3) APPROPRIATE COMMITTEES OF CON24 GRESS.—Except as otherwise specifically provided, 


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1 the term ‘‘appropriate committees of Congress’’ 

2 means— 

3 (A) the Committee on Commerce, Science, 

4 and Transportation of the Senate; and 

5 (B) the Committee on Energy and Com6 merce of the House of Representatives. 

7 (4) ASSISTANT SECRETARY.—The term ‘‘Assist8 ant Secretary’’ means the Assistant Secretary of 

9 Commerce for Communications and Information. 

10 (5) COMMISSION.—The term ‘‘Commission’’ 

11 means the Federal Communications Commission. 

12 (6) CORPORATION.—The term ‘‘Corporation’’ 

13 means the Public Safety Broadband Corporation es14 tablished in section 284. 

15 (7) EXISTING PUBLIC SAFETY BROADBAND

16 SPECTRUM.—The term ‘‘existing public safety 

17 broadband spectrum’’ means the portion of the elec18 tromagnetic spectrum between the frequencies— 

19 (A) from 763 megahertz to 768 megahertz; 

20 (B) from 793 megahertz to 798 mega21 hertz; 

22 (C) from 768 megahertz to 769 megahertz; 

23 and 

24 (D) from 798 megahertz to 799 mega25 hertz. 


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1 (8) FEDERAL ENTITY.—The term ‘‘Federal en2 tity’’ has the same meaning as in section 113(i) of 

3 the National Telecommunications and Information 

4 Administration Organization Act (47 U.S.C. 923(i)). 

5 (9) NARROWBAND SPECTRUM.—The term 

6 ‘‘narrowband spectrum’’ means the portion of the 

7 electromagnetic spectrum between the frequencies 

8 from 769 megahertz to 775 megahertz and between 

9 the frequencies from 799 megahertz to 805 mega10 hertz. 

11 (10) NIST.—The term ‘‘NIST’’ means the Na12 tional Institute of Standards and Technology. 

13 (11) NTIA.—The term ‘‘NTIA’’ means the Na14 tional Telecommunications and Information Admin15 istration. 

16 (12) PUBLIC SAFETY ENTITY.—The term ‘‘pub17 lic safety entity’’ means an entity that provides pub18 lic safety services. 

19 (13) PUBLIC SAFETY SERVICES.—The term 

20 ‘‘public safety services’’— 

21 (A) has the meaning given the term in sec22 tion 337(f) of the Communications Act of 1934 

23 (47 U.S.C. 337(f)); and 

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1 fined in section 2 of the Homeland Security Act 

2 of 2002 (6 U.S.C. 101). 

3 PART I—AUCTIONS OF SPECTRUM AND 

4 SPECTRUM MANAGEMENT 

5 SEC. 272. CLARIFICATION OF AUTHORITIES TO REPURPOSE 

6 FEDERAL SPECTRUM FOR COMMERCIAL PUR7 POSES. 

8 (a) Paragraph (1) of subsection 113(g) of the Na9 tional Telecommunications and Information Administra10 tion Organization Act (47 U.S.C. 923(g)(1)) is amended 

11 by striking paragraph (1) and inserting the following: 

12 ‘‘(1) ELIGIBLE FEDERAL ENTITIES.—Any Fed13 eral entity that operates a Federal Government sta14 tion authorized to use a band of frequencies speci15 fied in paragraph (2) and that incurs relocation 

16 costs because of planning for a potential auction of 

17 spectrum frequencies, a planned auction of spectrum 

18 frequencies or the reallocation of spectrum fre19 quencies from Federal use to exclusive non-Federal 

20 use, or shared Federal and non-Federal use may re21 ceive payment for such costs from the Spectrum Re22 location Fund, in accordance with section 118 of 

23 this Act. For purposes of this paragraph, Federal 

24 power agencies exempted under subsection (c)(4) 

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1 fied for reallocation pursuant to subsection (a), are 

2 eligible to receive payment under this paragraph.’’. 

3 (b) ELIGIBLE FREQUENCIES.—Section 113(g)(2)(B) 

4 of the National Telecommunications and Information Ad5 ministration Organization Act (47 U.S.C. 923(g)(2)) is 

6 amended by deleting and replacing subsection (B) with the 

7 following: 

8 ‘‘(B) any other band of frequencies reallo9 cated from Federal use to non-Federal or 

10 shared use after January 1, 2003, that is as11 signed by competitive bidding pursuant to sec12 tion 309(j) of the Communications Act of 1934 

13 (47 U.S.C. 309(j)) or is assigned as a result of 

14 later legislation or other administrative direc15 tion.’’. 

16 (c) Paragraph (3) of subsection 113(g) of the Na17 tional Telecommunications and Information Administra18 tion Organization Act (47 U.S.C. 923(g)(3)) is amended 

19 by striking it in its entirety and replacing it with the fol20 lowing: 

21 ‘‘(3) DEFINITION OF RELOCATION AND SHAR22 ING COSTS.—For purposes of this subsection, the 

23 terms ‘relocation costs’ and ‘sharing costs’ mean the 

24 costs incurred by a Federal entity to plan for a po25 tential or planned auction or sharing of spectrum 


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1 frequencies and to achieve comparable capability of 

2 systems, regardless of whether that capability is 

3 achieved by relocating to a new frequency assign4 ment, relocating a Federal Government station to a 

5 different geographic location, modifying Federal gov6 ernment equipment to mitigate interference or use 

7 less spectrum, in terms of bandwidth, geography or 

8 time, and thereby permitting spectrum sharing (in9 cluding sharing among relocated Federal entities 

10 and incumbents to make spectrum available for non11 Federal use) or relocation, or by utilizing an alter12 native technology. Comparable capability of systems 

13 includes the acquisition of state-of-the-art replace14 ment systems intended to meet comparable oper15 ational scope, which may include incidental increases 

16 in functionality. Such costs include— 

17 ‘‘(A) the costs of any modification or re18 placement of equipment, spares, associated an19 cillary equipment, software, facilities, operating 

20 manuals, training costs, or regulations that are 

21 attributable to relocation or sharing; 

22 ‘‘(B) the costs of all engineering, equip23 ment, software, site acquisition and construc24 tion costs, as well as any legitimate and pru25 dent transaction expense, including term-limited 


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1 Federal civil servant and contractor staff nec2 essary, which may be renewed, to carry out the 

3 relocation activities of an eligible Federal entity, 

4 and reasonable additional costs incurred by the 

5 Federal entity that are attributable to reloca6 tion or sharing, including increased recurring 

7 costs above recurring costs of the system before 

8 relocation for the remaining estimated life of 

9 the system being relocated; 

10 ‘‘(C) the costs of research, engineering 

11 studies, economic analyses, or other expenses 

12 reasonably incurred in connection with (i) cal13 culating the estimated relocation costs that are 

14 provided to the Commission pursuant to para15 graph (4) of this subsection, or in calculating 

16 the estimated sharing costs; (ii) determining the 

17 technical or operational feasibility of relocation 

18 to one or more potential relocation bands; or 

19 (iii) planning for or managing a relocation or 

20 sharing project (including spectrum coordina21 tion with auction winners) or potential reloca22 tion or sharing project; 

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1 quencies or, in the case of frequencies reallo2 cated to exclusive commercial use, prior to the 

3 termination of the Federal entity’s primary allo4 cation or protected status, when the eligible fre5 quencies as defined in paragraph (2) of this 

6 subsection are made available for private sector 

7 uses by competitive bidding and a Federal enti8 ty retains primary allocation or protected status 

9 in those frequencies for a period of time after 

10 the completion of the competitive bidding proc11 ess; 

12 ‘‘(E) the costs associated with the acceler13 ated replacement of systems and equipment if 

14 such acceleration is necessary to ensure the 

15 timely relocation of systems to a new frequency 

16 assignment or the timely accommodation of 

17 sharing of Federal frequencies; and 

18 ‘‘(F) the costs of the use of commercial 

19 systems and services (including systems not uti20 lizing spectrum) to replace Federal systems dis21 continued or relocated pursuant to this Act, in22 cluding lease, subscription, and equipment costs 

23 over an appropriate period, such as the antici24 pated life of an equivalent Federal system or 


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1 other period determined by the Director of the 

2 Office of Management and Budget.’’. 

3 (d) A new subsection (7) is added to Section 113(g) 

4 as follows: 

5 ‘‘(7) SPECTRUM SHARING.—Federal entities are 

6 permitted to allow access to their frequency assign7 ments by non-Federal entities upon approval of the 

8 terms of such access by NTIA, in consultation with 

9 the Office of Management and Budget. Such non10 Federal entities must comply with all applicable 

11 rules of the Commission and NTIA, including any 

12 regulations promulgated pursuant to this section. 

13 Remuneration associated with such access shall be 

14 deposited into the Spectrum Relocation Fund. Fed15 eral entities that incur costs as a result of such ac16 cess are eligible for payment from the Fund for the 

17 purposes specified in subsection (3) of this section. 

18 The revenue associated with such access must be at 

19 least 110 percent of the estimated Federal costs.’’. 

20 (e) Section 118 of such Act (47 U.S.C. 928) is 

21 amended by: 

22 (1) In subsection (b), adding at the end, ‘‘and 

23 any payments made by non-Federal entities for ac24 cess to Federal spectrum pursuant to 47 U.S.C. 

25 113(g)(7)’’; 


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1 (2) replacing subsection (c) with the following: 

2 ‘‘The amounts in the Fund from auctions of eligible 

3 frequencies are authorized to be used to pay relocation 

4 costs, as defined in section (g)(3) of this title, of an eligible 

5 Federal entity incurring such costs with respect to reloca6 tion from any eligible frequency. In addition, the amounts 

7 in the Fund from payments by non-Federal entities for 

8 access to Federal spectrum are authorized to be used to 

9 pay Federal costs associated with such sharing, as defined 

10 in section (g)(3) of this title. The Director of the Office 

11 of Management and Budget (OMB) may transfer at any 

12 time (including prior to any auction or contemplated auc13 tion, or sharing initiative) such sums as may be available 

14 in the Fund to an eligible Federal entity to pay eligible 

15 relocation or sharing costs related to pre-auction estimates 

16 or research as defined in subparagraph (C) of section 

17 923(g)(3) of this title. However, the Director may not 

18 transfer more than $100,000,000 associated with author19 ized pre-auction activities before an auction is completed 

20 and proceeds are deposited in the Spectrum Relocation 

21 Fund. Within the $100,000,000 that may be transferred 

22 before an auction, the Director of OMB may transfer up 

23 to $10,000,000 in total to eligible federal entities for eligi24 ble relocation or sharing costs related to pre-auction esti25 mates or research as defined in subparagraph (C) of secVerDate Mar 15 2010 01:31 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00171 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 tion 923(g)(3) of this title for costs incurred prior to the 

2 enactment of this legislation, but after June 28th, 2010. 

3 These amounts transferred pursuant to the previous pro4 viso are in addition to amounts that the Director of OMB 

5 may transfer after the enactment of this legislation.’’; 

6 (3) amending subsection (d)(1) to add, ‘‘and 

7 sharing’’ before ‘‘costs’’; 

8 (4) amending subsection (d)(2)(B) to add, ‘‘and 

9 sharing’’ before ‘‘costs’’, and adding at the end, 

10 ‘‘and sharing’’; 

11 (5) replacing subsection (d)(3) with the fol12 lowing: 

13 ‘‘Any amounts in the Fund that are remaining after 

14 the payment of the relocation and sharing costs that are 

15 payable from the Fund shall revert to and be deposited 

16 in the general fund of the Treasury not later than 15 years 

17 after the date of the deposit of such proceeds to the Fund, 

18 unless the Director of OMB, in consultation with the As19 sistant Secretary for Communications and Information, 

20 notifies the Committees on Appropriations and Energy 

21 and Commerce of the House of Representatives and the 

22 Committees on Appropriations and Commerce, Science, 

23 and Transportation of the Senate at least 60 days in ad24 vance of the reversion of the funds to the general fund 

25 of the Treasury that such funds are needed to complete 


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1 or to implement current or future relocations or sharing 

2 initiatives.’’; 

3 (6) amending subsection (e)(2) by adding ‘‘and 

4 sharing’’ before ‘‘costs’’; by adding ‘‘or sharing’’ be5 fore ‘‘is complete’’; and by adding ‘‘or sharing’’ be6 fore ‘‘in accordance’’; and 

7 (7) adding a new subsection at the end thereof: 

8 ‘‘(f) Notwithstanding subsections (c) through (e) of 

9 this section and after the amount specified in subsection 

10 (b), up to twenty percent of the amounts deposited in the 

11 Spectrum Relocation Fund from the auction of licenses 

12 following the date of enactment of this section for fre13 quencies vacated by Federal entities, or up to twenty per14 cent of the amounts paid by non-Federal entities for shar15 ing of Federal spectrum, after the date of enactment are 

16 hereby appropriated and available at the discretion of the 

17 Director of the Office of Management and Budget, in con18 sultation with the Assistant Secretary for Communications 

19 and Information, for payment to the eligible Federal enti20 ties, in addition to the relocation and sharing costs defined 

21 in paragraph (3) of subsection 923(g), for the purpose of 

22 encouraging timely access to those frequencies, provided 

23 that: 


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1 ‘‘(1) Such payments may be based on the mar2 ket value of the spectrum, timeliness of clearing, and 

3 needs for agencies’ essential missions; 

4 ‘‘(2) Such payments are authorized for: 

5 ‘‘(A) the purposes of achieving enhanced 

6 capabilities of systems that are affected by the 

7 activities specified in subparagraphs (A) 

8 through (F) of paragraph (3) of subsection 

9 923(g) of this title; and 

10 ‘‘(B) other communications, radar and 

11 spectrum-using investments not directly af12 fected by such reallocation or sharing but essen13 tial for the missions of the Federal entity that 

14 is relocating its systems or sharing frequencies; 

15 ‘‘(3) The increase to the Fund due to any one 

16 auction after any payment is not less than 10 per17 cent of the winning bids in the relevant auction, or 

18 is not less than 10 percent of the payments from 

19 non-Federal entities in the relevant sharing agree20 ment; 

21 ‘‘(4) Payments to eligible entities must be based 

22 on the proceeds generated in the auction that an eli23 gible entity participates in; and 

24 ‘‘(5) Such payments will not be made until 30 

25 days after the Director of OMB has notified the 


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1 Committees on Appropriations and Commerce, 

2 Science, and Transportation of the Senate, and the 

3 Committees on Appropriations and Energy and 

4 Commerce of the House of Representatives.’’. 

5 (f) Subparagraph D of section 309 (j)(8) of the Com6 munications Act of 1934 (47 U.S.C. 309(j)(8)(D)) is 

7 amended by adding ‘‘, after the retention of revenue de8 scribed in subparagraph (B),’’ before ‘‘attributable’’ and 

9 ‘‘and frequencies identified by the Federal Communica10 tions Commission to be auctioned in conjunction with eli11 gible frequencies described in 47 U.S.C. 923(g)(2)’’ before 

12 the first ‘‘shall’’ in the subparagraph. 

13 (g) If the head of an executive agency of the Federal 

14 Government determines that public disclosure of any in15 formation contained in notifications and reports required 

16 by sections 923 or 928 of Title 47 of the United States 

17 Code would reveal classified national security information 

18 or other information for which there is a legal basis for 

19 nondisclosure and such public disclosure would be detri20 mental to national security, homeland security, public 

21 safety, or jeopardize law enforcement investigations the 

22 head of the executive agency shall notify the NTIA of that 

23 determination prior to release of such information. In that 

24 event, such information shall be included in a separate 

25 annex, as needed and to the extent the agency head deterVerDate Mar 15 2010 01:31 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00175 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 mines is consistent with national security or law enforce2 ment purposes. These annexes shall be provided to the ap3 propriate subcommittee in accordance with applicable stip4 ulations, but shall not be disclosed to the public or pro5 vided to any unauthorized person through any other 

6 means. 

7 SEC. 273. INCENTIVE AUCTION AUTHORITY. 

8 (a) Paragraph (8) of section 309(j) of the Commu9 nications Act of 1934 (47 U.S.C. 309(j)) is amended— 

10 (1) in subparagraph (A), by deleting ‘‘and (E)’’ 

11 and inserting ‘‘(E) and (F)’’ after ‘‘subparagraphs 

12 (B), (D),’’; and 

13 (2) by adding at the end the following new sub14 paragraphs: 

15 ‘‘(F) Notwithstanding any other provision 

16 of law, if the Commission determines that it is 

17 consistent with the public interest in utilization 

18 of the spectrum for a licensee to voluntarily re19 linquish some or all of its licensed spectrum 

20 usage rights in order to permit the assignment 

21 of new initial licenses through a competitive 

22 bidding process subject to new service rules, or 

23 the designation of spectrum for unlicensed use, 

24 the Commission may pay to such licensee a por25 tion of any auction proceeds that the CommisVerDate Mar 15 2010 01:31 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00176 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 sion determines, in its discretion, are attrib2 utable to the spectrum usage rights voluntarily 

3 relinquished by such licensee. If the Commis4 sion also determines that it is in the public in5 terest to modify the spectrum usage rights of 

6 any incumbent licensee in order to facilitate the 

7 assignment of such new initial licenses subject 

8 to new service rules, or the designation of spec9 trum for unlicensed use, the Commission may 

10 pay to such licensee a portion of the auction 

11 proceeds for the purpose of relocating to any al12 ternative frequency or location that the Com13 mission may designate; Provided, however, that 

14 with respect to frequency bands between 54 

15 megahertz and 72 megahertz, 76 megahertz 

16 and 88 megahertz, 174 megahertz and 216 

17 megahertz, and 470 megahertz and 698 mega18 hertz (‘the specified bands’), any spectrum 

19 made available for alternative use utilizing pay20 ments authorized under this subsection shall be 

21 assigned via the competitive bidding process 

22 until the winning bidders for licenses covering 

23 at least 84 megahertz from the specified bands 

24 deposit the full amount of their bids in accord25 ance with the Commission’s instructions. In adVerDate Mar 15 2010 01:31 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00177 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 dition, if more than 84 megahertz of spectrum 

2 from the specified bands is made available for 

3 alternative use utilizing payments under this 

4 subsection, and such spectrum is assigned via 

5 competitive bidding, a portion of the proceeds 

6 may be disbursed to licensees of other fre7 quency bands for the purpose of making addi8 tional spectrum available, provided that a ma9 jority of such additional spectrum is assigned 

10 via competitive bidding. Also, provided that in 

11 exercising the authority provided under this sec12 tion: 

13 ‘‘(i) The Chairman of the Commis14 sion, in consultation with the Director of 

15 OMB, shall notify the Committees on Ap16 propriations and Commerce, Science, and 

17 Transportation of the Senate, and the 

18 Committees on Appropriations and Energy 

19 and Commerce of the House of Represent20 atives of the methodology for calculating 

21 such payments to licensees at least 3 

22 months in advance of the relevant auction, 

23 and that such methodology consider the 

24 value of spectrum vacated in its current 

25 use and the timeliness of clearing; and 


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1 ‘‘(ii) Notwithstanding subparagraph 

2 (A), and except as provided in subpara3 graphs (B), (C), and (D), all proceeds (in4 cluding deposits and up front payments 

5 from successful bidders) from the auction 

6 of spectrum under this section and section 

7 106 of this Act shall be deposited with the 

8 Public Safety Trust Fund established 

9 under section 217 of this Act. 

10 ‘‘(G) ESTABLISHMENT OF INCENTIVE AUC11 TION RELOCATION FUND.— 

12 ‘‘(i) IN GENERAL.—There is estab13 lished in the Treasury of the United States 

14 a fund to be known as the ‘Incentive Auc15 tion Relocation Fund’. 

16 ‘‘(ii) ADMINISTRATION.—The Assist17 ant Secretary shall administer the Incen18 tive Auction Relocation Fund using the 

19 amounts deposited pursuant to this sec20 tion. 

21 ‘‘(iii) CREDITING OF RECEIPTS.— 

22 There shall be deposited into or credited to 

23 the Incentive Auction Relocation Fund any 

24 amounts specified in section 217 of this 

25 Act. 


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1 ‘‘(iv) AVAILABILITY.—Amounts in the 

2 Incentive Auction Relocation Fund shall be 

3 available to the NTIA for use— 

4 ‘‘(I) without fiscal year limita5 tion; 

6 ‘‘(II) for a period not to exceed 

7 18 months following the later of— 

8 ‘‘(aa) the completion of in9 centive auction from which such 

10 amounts were derived; 

11 ‘‘(bb) the date on which the 

12 Commission issues all the new 

13 channel assignments pursuant to 

14 any repacking required under 

15 subparagraph (F)(ii); or 

16 ‘‘(cc) the issuance of a con17 struction permit by the Commis18 sion for a station to change chan19 nels, geographic locations, to col20 locate on the same channel or no21 tification by a station to the As22 sistant Secretary that it is im23 pacted by such a change; and 

24 ‘‘(III) without further appropria25 tion. 


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1 ‘‘(v) USE OF FUNDS.—Amounts in the 

2 Incentive Auction Relocation Fund may 

3 only be used by the NTIA, in consultation 

4 with the Commission, to cover— 

5 ‘‘(I) the reasonable costs of tele6 vision broadcast stations that are relo7 cated to a different spectrum channel 

8 or geographic location following an in9 centive auction under subparagraph 

10 (F), or that are impacted by such re11 locations, including to cover the cost 

12 of new equipment, installation, and 

13 construction; and 

14 ‘‘(II) the costs incurred by multi15 channel video programming distribu16 tors for new equipment, installation, 

17 and construction related to the car18 riage of such relocated stations or the 

19 carriage of stations that voluntarily 

20 elect to share a channel, but retain 

21 their existing rights to carriage pursu22 ant to sections 338, 614, and 615.’’. 


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1 SEC. 274. REQUIREMENTS WHEN REPURPOSING CERTAIN 

2 MOBILE SATELLITE SERVICES SPECTRUM 

3 FOR TERRESTRIAL BROADBAND USE. 

4 To the extent that the Commission makes available 

5 terrestrial broadband rights on spectrum primarily li6 censed for mobile satellite services, the Commission shall 

7 recover a significant portion of the value of such right ei8 ther through the authority provided in section 309(j) of 

9 the Communications Act of 1934 (47 U.S.C. 309(j)) or 

10 by section 278 of this subtitle. 

11 SEC. 275. PERMANENT EXTENSION OF AUCTION AUTHOR12 ITY. 

13 Section 309(j)11 of the Communications Act of 1934 

14 (47 U.S.C. 309 (j)(11)) is repealed. 

15 SEC. 276. AUTHORITY TO AUCTION LICENSES FOR DOMES16 TIC SATELLITE SERVICES. 

17 Section 309(j) of the Communications Act of 1934 

18 is amended by adding the following new subsection at the 

19 end thereof: 

20 ‘‘(17) Notwithstanding any other provision of 

21 law, the Commission shall use competitive bidding 

22 under this subsection to assign any license, construc23 tion permit, reservation, or similar authorization or 

24 modification thereof, that may be used solely or pre25 dominantly for domestic satellite communications 

26 services, including satellite-based television or radio 


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1 services. A service is defined to be predominantly for 

2 domestic satellite communications services if the ma3 jority of customers that may be served are located 

4 within the geographic boundaries of the United 

5 States. The Commission may, however, use an alter6 native approach to assignment of such licenses or 

7 similar authorities if it finds that such an alternative 

8 to competitive bidding would serve the public inter9 est, convenience, and necessity. This paragraph shall 

10 be effective on the date of its enactment and shall 

11 apply to all Commission assignments or reservations 

12 of spectrum for domestic satellite services, including, 

13 but not limited to, all assignments or reservations 

14 for satellite-based television or radio services as of 

15 the effective date.’’. 

16 SEC. 277. DIRECTED AUCTION OF CERTAIN SPECTRUM. 

17 (a) IDENTIFICATION OF SPECTRUM.—Not later than 

18 1 year after the date of enactment of this subtitle, the 

19 Assistant Secretary shall identify and make available for 

20 immediate reallocation, at a minimum, 15 megahertz of 

21 contiguous spectrum at frequencies located between 1675 

22 megahertz and 1710 megahertz, inclusive, minus the geo23 graphic exclusion zones, or any amendment thereof, identi24 fied in NTIA’s October 2010 report entitled ‘‘An Assess25 ment of Near-Term Viability of Accommodating Wireless 


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1 Broadband Systems in 1675–1710 MHz, 1755–1780 

2 MHz, 3500–3650 MHz, and 4200–4220 MHz, 4380– 

3 4400 MHz Bands’’, to be made available for reallocation 

4 or sharing with incumbent Government operations. 

5 (b) AUCTION.—Not later than January 31, 2016, the 

6 Commission shall conduct, in such combination as deemed 

7 appropriate by the Commission, the auctions of the fol8 lowing licenses covering at least the frequencies described 

9 in this section, by commencing the bidding for: 

10 (1) The spectrum between the frequencies of 

11 1915 megahertz and 1920 megahertz, inclusive. 

12 (2) The spectrum between the frequencies of 

13 1995 megahertz and 2000 megahertz, inclusive. 

14 (3) The spectrum between the frequencies of 

15 2020 megahertz and 2025 megahertz, inclusive. 

16 (4) The spectrum between the frequencies of 

17 2155 megahertz and 2175 megahertz, inclusive. 

18 (5) The spectrum between the frequencies of 

19 2175 megahertz and 2180 megahertz, inclusive. 

20 (6) At least 25 megahertz of spectrum between 

21 the frequencies of 1755 megahertz and 1850 mega22 hertz, minus appropriate geographic exclusion zones 

23 if necessary, unless the President of the United 

24 States determines that— 


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1 (A) such spectrum should not be reallo2 cated due to the need to protect incumbent 

3 Federal operations; or reallocation must be de4 layed or progressed in phases to ensure protec5 tion or continuity of Federal operations; and 

6 (B) allocation of other spectrum— 

7 (i) better serves the public interest, 

8 convenience, and necessity; and 

9 (ii) can reasonably be expected to 

10 produce receipts comparable to auction of 

11 spectrum frequencies identified in this 

12 paragraph. 

13 (7) The Commission may substitute alternative 

14 spectrum frequencies for the spectrum frequencies 

15 identified in paragraphs (1) through (5) of this sub16 section, if the Commission determines that alter17 native spectrum would better serve the public inter18 est and the Office of Management and Budget cer19 tifies that such alternative spectrum frequencies are 

20 reasonably expected to produce receipts comparable 

21 to auction of the spectrum frequencies identified in 

22 paragraphs (1) through (5) of this subsection. 

23 (c) AUCTION ORGANIZATION.—The Commission may, 

24 if technically feasible and consistent with the public inter25 est, combine the spectrum identified in paragraphs (4), 


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1 (5), and the portion of paragraph (6) between the fre2 quencies of 1755 megahertz and 1850 megahertz, inclu3 sive, of subsection (b) in an auction of licenses for paired 

4 spectrum blocks. 

5 (d) FURTHER REALLOCATION OF CERTAIN OTHER

6 SPECTRUM.— 

7 (1) COVERED SPECTRUM.—For purposes of this 

8 subsection, the term ‘‘covered spectrum’’ means the 

9 portion of the electromagnetic spectrum between the 

10 frequencies of 3550 to 3650 megahertz, inclusive, 

11 minus the geographic exclusion zones, or any amend12 ment thereof, identified in NTIA’s October 2010 re13 port entitled ‘‘An Assessment of Near-Term Viabil14 ity of Accommodating Wireless Broadband Systems 

15 in 1675–1710 MHz, 1755–1780 MHz, 3500–3650 

16 MHz, and 4200–4220 MHz, 4380–4400 MHz 

17 Bands’’. 

18 (2) IN GENERAL.—Consistent with require19 ments of section 309(j) of the Communications Act 

20 of 1934, the Commission shall reallocate covered 

21 spectrum for assignment by competitive bidding or 

22 allocation to unlicensed use, minus appropriate ex23 clusion zones if necessary, unless the President of 

24 the United States determines that— 


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1 (A) such spectrum cannot be reallocated 

2 due to the need to protect incumbent Federal 

3 systems from interference; or 

4 (B) allocation of other spectrum— 

5 (i) better serves the public interest, 

6 convenience, and necessity; and 

7 (ii) can reasonably be expected to 

8 produce receipts comparable to what the 

9 covered spectrum might auction for with10 out the geographic exclusion zones. 

11 (3) ACTIONS REQUIRED IF COVERED SPECTRUM

12 CANNOT BE REALLOCATED.— 

13 (A) IN GENERAL.—If the President makes 

14 a determination under paragraph (2) that the 

15 covered spectrum cannot be reallocated, then 

16 the President shall, within 1 year after the date 

17 of such determination— 

18 (i) identify alternative bands of fre19 quencies totaling more than 20 megahertz 

20 and no more than 100 megahertz of spec21 trum used primarily by Federal agencies 

22 that satisfy the requirements of clauses (i) 

23 and (ii) of paragraph (2)(B); 

24 (ii) report to the appropriate commit25 tees of Congress and the Commission an 


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1 identification of such alternative spectrum 

2 for assignment by competitive bidding; and 

3 (iii) make such alternative spectrum 

4 for assignment immediately available for 

5 reallocation. 

6 (B) AUCTION.—If the President makes a 

7 determination under paragraph (2) that the 

8 covered spectrum cannot be reallocated, the 

9 Commission shall commence the bidding of the 

10 alternative spectrum identified pursuant to sub11 paragraph (A) within 3 years of the date of en12 actment of this subtitle. 

13 (4) ACTIONS REQUIRED IF COVERED SPECTRUM

14 CAN BE REALLOCATED.—If the President does not 

15 make a determination under paragraph (1) that the 

16 covered spectrum cannot be reallocated, the Commis17 sion shall commence the competitive bidding for the 

18 covered spectrum within 3 years of the date of en19 actment of this subtitle. 

20 (e) AMENDMENTS TO DESIGN REQUIREMENTS RE21 LATED TO COMPETITIVE BIDDING.—Section 309(j) of the 

22 Communications Act of 1934 (47 U.S.C. 309(j)) is 

23 amended— 

24 (1) in paragraph (3)— 


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1 (A) in subparagraph (E)(ii), by striking ‘‘; 

2 and’’ and inserting a semicolon; and 

3 (B) in subparagraph (F), by striking the 

4 period at the end and inserting a semicolon; 

5 and 

6 (2) by amending clause (i) of the second sen7 tence of paragraph (8)(C) to read as follows: 

8 ‘‘(i) the deposits— 

9 ‘‘(I) of successful bidders of any 

10 auction conducted pursuant to sub11 paragraph (F) of section 106 of this 

12 act shall be paid to the Public Safety 

13 Trust Fund established under section 

14 217 of such Act; and 

15 ‘‘(II) of successful bidders of any 

16 other auction shall be paid to the 

17 Treasury;’’. 

18 SEC. 278. AUTHORITY TO ESTABLISH SPECTRUM LICENSE 

19 USER FEES. 

20 Section 309 of the Communications Act of 1934 is 

21 amended by adding the following new subsection at the 

22 end thereof: 

23 ‘‘(m) USE OF SPECTRUM LICENSE USER FEES.— 

24 For initial licenses or construction permits that are not 

25 granted through the use of competitive bidding as set 


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1 forth in subsection (j), and for renewals or modifications 

2 of initial licenses or other authorizations, whether granted 

3 through competitive bidding or not, the Commission may, 

4 where warranted, establish, assess, and collect annual user 

5 fees on holders of spectrum licenses or construction per6 mits, including their successors or assignees, in order to 

7 promote efficient and effective use of the electromagnetic 

8 spectrum. 

9 ‘‘(1) REQUIRED COLLECTIONS.—The Commis10 sion shall collect at least the following amounts— 

11 ‘‘(A) $200,000,000 in fiscal year 2012; 

12 ‘‘(B) $300,000,000 in fiscal year 2013; 

13 ‘‘(C) $425,000,000 in fiscal year 2014; 

14 ‘‘(D) $550,000,000 in fiscal year 2015; 

15 ‘‘(E) $550,000,000 in fiscal year 2016; 

16 ‘‘(F) $550,000,000 in fiscal year 2017; 

17 ‘‘(G) $550,000,000 in fiscal year 2018; 

18 ‘‘(H) $550,000,000 in fiscal year 2019; 

19 ‘‘(I) $550,000,000 in fiscal year 2020; and 

20 ‘‘(J) $550,000,000 in fiscal year 2021. 

21 ‘‘(2) DEVELOPMENT OF SPECTRUM FEE REGU22 LATIONS.— 

23 ‘‘(A) The Commission shall, by regulation, 

24 establish a methodology for assessing annual 

25 spectrum user fees and a schedule for collection 


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1 of such fees on classes of spectrum licenses or 

2 construction permits or other instruments of 

3 authorization, consistent with the public inter4 est, convenience and necessity. The Commission 

5 may determine over time different classes of 

6 spectrum licenses or construction permits upon 

7 which such fees may be assessed. In estab8 lishing the fee methodology, the Commission 

9 may consider the following factors: 

10 ‘‘(i) the highest value alternative spec11 trum use forgone; 

12 ‘‘(ii) scope and type of permissible 

13 services and uses; 

14 ‘‘(iii) amount of spectrum and li15 censed coverage area; 

16 ‘‘(iv) shared versus exclusive use; 

17 ‘‘(v) level of demand for spectrum li18 censes or construction permits within a 

19 certain spectrum band or geographic area; 

20 ‘‘(vi) the amount of revenue raised on 

21 comparable licenses awarded through an 

22 auction; and 

23 ‘‘(vii) such factors that the Commis24 sion determines, in its discretion, are necVerDate Mar 15 2010 01:31 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00191 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 essary to promote efficient and effective 

2 spectrum use. 

3 ‘‘(B) In addition, the Commission shall, by 

4 regulation, establish a methodology for assess5 ing annual user fees and a schedule for collec6 tion of such fees on entities holding Ancillary 

7 Terrestrial Component authority in conjunction 

8 with Mobile Satellite Service spectrum licenses, 

9 where the Ancillary Terrestrial Component au10 thority was not assigned through use of com11 petitive bidding. The Commission shall not col12 lect less from the holders of such authority than 

13 a reasonable estimate of the value of such au14 thority over its term, regardless of whether ter15 restrial services is actually provided during this 

16 term. In determining a reasonable estimate of 

17 the value of such authority, the Commission 

18 may consider factors listed in subsection (A). 

19 ‘‘(C) Within 60 days of enactment of this 

20 Act, the Commission shall commence a rule21 making to develop the fee methodology and reg22 ulations. The Commission shall take all actions 

23 necessary so that it can collect fees from the 

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1 struction permit holders no later than Sep2 tember 30, 2012. 

3 ‘‘(D) The Commission, from time to time, 

4 may commence further rulemakings (separate 

5 from or in connection with other rulemakings or 

6 proceedings involving spectrum-based services, 

7 licenses, permits and uses) and modify the fee 

8 methodology or revise its rules required by 

9 paragraph (B) to add or modify classes of spec10 trum license or construction permit holders that 

11 must pay fees, and assign or adjust such fee as 

12 a result of the addition, deletion, reclassification 

13 or other change in a spectrum-based service or 

14 use, including changes in the nature of a spec15 trum-based service or use as a consequence of 

16 Commission rulemaking proceedings or changes 

17 in law. Any resulting changes in the classes of 

18 spectrum licenses, construction permits or fees 

19 shall take effect upon the dates established in 

20 the Commission’s rulemaking proceeding in ac21 cordance with applicable law. 

22 ‘‘(E) The Commission shall exempt from 

23 such fees holders of licenses for broadcast tele24 vision and public safety services. The term 

25 ‘emergency response providers’ includes State, 


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1 local, and tribal, emergency public safety, law 

2 enforcement, firefighter, emergency response, 

3 emergency medical (including hospital emer4 gency facilities), and related personnel, agencies 

5 and authorities. 

6 ‘‘(3) PENALTIES FOR LATE PAYMENT.—The 

7 Commission shall prescribe by regulation an addi8 tional charge which shall be assessed as a penalty 

9 for late payment of fees required by this subsection. 

10 ‘‘(4) REVOCATION OF LICENSE OR PERMIT.— 

11 The Commission may revoke any spectrum license or 

12 construction permit for a licensee’s or permitee’s 

13 failure to pay in a timely manner any fee or penalty 

14 to the Commission under this subsection. Such rev15 ocation action may be taken by the Commission 

16 after notice of the Commission’s intent to take such 

17 action is sent to the licensee by registered mail, re18 turn receipt requested, at the licensee’s last known 

19 address. The notice will provide the licensee at least 

20 30 days to either pay the fee or show cause why the 

21 fee does not apply to the licensee or should otherwise 

22 be waived or payment deferred. A hearing is not re23 quired under this subsection unless the licensee’s re24 sponse presents a substantial and material question 

25 of fact. In any case where a hearing is conducted 


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1 pursuant to this section, the hearing shall be based 

2 on written evidence only, and the burden of pro3 ceeding with the introduction of evidence and the 

4 burden of proof shall be on the licensee. Unless the 

5 licensee substantially prevails in the hearing, the 

6 Commission may assess the licensee for the costs of 

7 such hearing. Any Commission order adopted pursu8 ant to this subsection shall determine the amount 

9 due, if any, and provide the licensee with at least 30 

10 days to pay that amount or have its authorization 

11 revoked. No order of revocation under this sub12 section shall become final until the licensee has ex13 hausted its right to judicial review of such order 

14 under section 402(b)(5) of this title. 

15 ‘‘(5) TREATMENT OF REVENUES.—All proceeds 

16 obtained pursuant to the regulations required by this 

17 subsection shall be deposited in the General Fund of 

18 the Treasury.’’. 

19 PART II—PUBLIC SAFETY BROADBAND NETWORK 

20 SEC. 281. REALLOCATION OF D BLOCK FOR PUBLIC SAFE21 TY. 

22 (a) IN GENERAL.—The Commission shall reallocate 

23 the 700 MHz D block spectrum for use by public safety 

24 entities in accordance with the provisions of this subtitle. 


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1 (b) SPECTRUM ALLOCATION.—Section 337(a) of the 

2 Communications Act of 1934 (47 U.S.C. 337(a)) is 

3 amended— 

4 (1) by striking ‘‘24’’ in paragraph (1) and in5 serting ‘‘34’’; and 

6 (2) by striking ‘‘36’’ in paragraph (2) and in7 serting ‘‘26’’. 

8 SEC. 282. FLEXIBLE USE OF NARROWBAND SPECTRUM. 

9 The Commission may allow the narrowband spectrum 

10 to be used in a flexible manner, including usage for public 

11 safety broadband communications, subject to such tech12 nical and interference protection measures as the Commis13 sion may require and subject to interoperability require14 ments of the Commission and the Corporation established 

15 in section 204 of this subtitle. 

16 SEC. 283. SINGLE PUBLIC SAFETY WIRELESS NETWORK LI17 CENSEE. 

18 (a) REALLOCATION AND GRANT OF LICENSE.—Not19 withstanding any other provision of law, and subject to 

20 the provisions of this subtitle, including section 290, the 

21 Commission shall grant a license to the Public Safety 

22 Broadband Corporation established under section 284 for 

23 the use of the 700 MHz D block spectrum and existing 

24 public safety broadband spectrum. 

25 (b) TERM OF LICENSE.— 


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1 (1) INITIAL LICENSE.—The license granted 

2 under subsection (a) shall be for an initial term of 

3 10 years from the date of the initial issuance of the 

4 license. 

5 (2) RENEWAL OF LICENSE.—Prior to expiration 

6 of the term of the initial license granted under sub7 section (a) or the expiration of any subsequent re8 newal of such license, the Corporation shall submit 

9 to the Commission an application for the renewal of 

10 such license. Such renewal application shall dem11 onstrate that, during the preceding license term, the 

12 Corporation has met the duties and obligations set 

13 forth under this subtitle. A renewal license granted 

14 under this paragraph shall be for a term of not to 

15 exceed 15 years. 

16 (c) FACILITATION OF TRANSITION.—The Commis17 sion shall take all actions necessary to facilitate the transi18 tion of the existing public safety broadband spectrum to 

19 the Public Safety Broadband Corporation established 

20 under section 284. 

21 SEC. 284. ESTABLISHMENT OF PUBLIC SAFETY BROADBAND 

22 CORPORATION. 

23 (a) ESTABLISHMENT.—There is authorized to be es24 tablished a private, nonprofit corporation, to be known as 

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1 ther an agency nor establishment of the United States 

2 Government or the District of Columbia Government. 

3 (b) APPLICATION OF PROVISIONS.—The Corporation 

4 shall be subject to the provisions of this subtitle, and, to 

5 the extent consistent with this subtitle, to the District of 

6 Columbia Nonprofit Corporation Act (sec. 29–301.01 et 

7 seq., D.C. Official Code). 

8 (c) RESIDENCE.—The Corporation shall have its 

9 place of business in the District of Columbia and shall be 

10 considered, for purposes of venue in civil actions, to be 

11 a resident of the District of Columbia. 

12 (d) POWERS UNDER DC ACT.—In order to carry out 

13 the duties and activities of the Corporation, the Corpora14 tion shall have the usual powers conferred upon a non15 profit corporation by the District of Columbia Nonprofit 

16 Corporation Act. 

17 (e) INCORPORATION.—The members of the initial 

18 Board of Directors of the Corporation shall serve as 

19 incorporators and shall take whatever steps that are nec20 essary to establish the Corporation under the District of 

21 Columbia Nonprofit Corporation Act. 

22 SEC. 285. BOARD OF DIRECTORS OF THE CORPORATION. 

23 (a) MEMBERSHIP.—The management of the Corpora24 tion shall be vested in a Board of Directors (referred to 


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1 in this Title as the ‘‘Board’’), which shall consist of the 

2 following members: 

3 (1) FEDERAL MEMBERS.—The following indi4 viduals, or their respective designees, shall serve as 

5 Federal members: 

6 (A) The Secretary of Commerce. 

7 (B) The Secretary of Homeland Security. 

8 (C) The Attorney General of the United 

9 States. 

10 (D) The Director of the Office of Manage11 ment and Budget. 

12 (2) NON-FEDERAL MEMBERS.— 

13 (A) IN GENERAL.—The Secretary of Com14 merce, in consultation with the Secretary of 

15 Homeland Security and the Attorney General of 

16 the United States, shall appoint 11 individuals 

17 to serve as non-Federal members of the Board. 

18 (B) STATE, TERRITORIAL, TRIBAL AND

19 LOCAL GOVERNMENT INTERESTS.—In making 

20 appointments under subparagraph (A), the Sec21 retary of Commerce should— 

22 (i) appoint at least 3 individuals with 

23 significant expertise in the collective inter24 ests of State, territorial, tribal and local 

25 governments; and 


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1 (ii) seek to ensure geographic and re2 gional representation of the United States 

3 in such appointments; and 

4 (iii) seek to ensure rural and urban 

5 representation in such appointments. 

6 (C) PUBLIC SAFETY INTERESTS.—In mak7 ing appointments under subparagraph (A), the 

8 Secretary of Commerce should appoint at least 

9 3 individuals who have served or are currently 

10 serving as public safety professionals. 

11 (D) REQUIRED QUALIFICATIONS.— 

12 (i) IN GENERAL.—Each non-Federal 

13 member appointed under subparagraph (A) 

14 should meet at least 1 of the following cri15 teria: 

16 (I) PUBLIC SAFETY EXPERI17 ENCE.—Knowledge and experience in 

18 the use of Federal, State, local, or 

19 tribal public safety or emergency re20 sponse. 

21 (II) TECHNICAL EXPERTISE.— 

22 Technical expertise and fluency re23 garding broadband communications, 

24 including public safety communica25 tions and cybersecurity. 


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1 (III) NETWORK EXPERTISE.— 

2 Expertise in building, deploying, and 

3 operating commercial telecommuni4 cations networks. 

5 (IV) FINANCIAL EXPERTISE.— 

6 Expertise in financing and funding 

7 telecommunications networks. 

8 (ii) EXPERTISE TO BE REP9 RESENTED.—In making appointments 

10 under subparagraph (A), the Secretary of 

11 Commerce should appoint— 

12 (I) at least one individual who 

13 satisfies the requirement under sub14 clause (II) of clause (i); 

15 (II) at least one individual who 

16 satisfies the requirement under sub17 clause (III) of clause (i); and 

18 (III) at least one individual who 

19 satisfies the requirement under sub20 clause (IV) of clause (i). 

21 (E) INDEPENDENCE.— 

22 (i) IN GENERAL.—Each non-Federal 

23 member of the Board shall be independent 

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1 tionship with the Corporation in per2 forming his or her duties. 

3 (ii) INDEPENDENCE DETERMINA4 TION.—In order to be considered inde5 pendent for purposes of this subparagraph, 

6 a member of the Board— 

7 (I) may not, other than in his or 

8 her capacity as a member of the 

9 Board or any committee thereof— 

10 (aa) accept any consulting, 

11 advisory, or other compensatory 

12 fee from the Corporation; or 

13 (bb) be a person associated 

14 with the Corporation or with any 

15 affiliated company thereof; and 

16 (II) shall be disqualified from 

17 any deliberation involving any trans18 action of the Corporation in which the 

19 Board member has a financial interest 

20 in the outcome of the transaction. 

21 (F) NOT OFFICERS OR EMPLOYEES.—The 

22 non-Federal members of the Board shall not, by 

23 reason of such membership, be considered to be 

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1 ernment or of the District of Columbia Govern2 ment. 

3 (G) CITIZENSHIP.—No individual other 

4 than a citizen of the United States may serve 

5 as a non-Federal member of the Board. 

6 (H) CLEARANCE FOR CLASSIFIED INFOR7 MATION.—In order to have the threat and vul8 nerability information necessary to make risk 

9 management decisions regarding the network, 

10 the non-Federal members of the Board shall be 

11 required, prior to appointment, to obtain a 

12 clearance held by the Director of National In13 telligence that permits them to receive informa14 tion classified at the level of Top Secret, Special 

15 Compartmented Information. 

16 (b) TERMS OF APPOINTMENT.— 

17 (1) INITIAL APPOINTMENT DEADLINE.—Mem18 bers of the Board shall be appointed not later than 

19 180 days after the date of the enactment of this 

20 subtitle. 

21 (2) TERMS.— 

22 (A) LENGTH.— 

23 (i) FEDERAL MEMBERS.—Each Fed24 eral member of the Board shall serve as a 

25 member of the Board for the life of the 


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1 Corporation while serving in their ap2 pointed capacity. 

3 (ii) NON-FEDERAL MEMBERS.—The 

4 term of office of each non-Federal member 

5 of the Board shall be 3 years. No non-Fed6 eral member of the Board may serve more 

7 than 2 consecutive full 3-year terms. 

8 (B) EXPIRATION OF TERM.—Any member 

9 whose term has expired may serve until such 

10 member’s successor has taken office, or until 

11 the end of the calendar year in which such 

12 member’s term has expired, whichever is earlier. 

13 (C) APPOINTMENT TO FILL VACANCY.— 

14 Any non-Federal member appointed to fill a va15 cancy occurring prior to the expiration of the 

16 term for which that member’s predecessor was 

17 appointed shall be appointed for the remainder 

18 of the predecessor’s term. 

19 (D) STAGGERED TERMS.—With respect to 

20 the initial non-Federal members of the Board— 

21 (i) 4 members shall serve for a term 

22 of 3 years; 

23 (ii) 4 members shall serve for a term 

24 of 2 years; and 


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1 (iii) 3 members shall serve for a term 

2 of 1 year. 

3 (3) VACANCIES.—A vacancy in the membership 

4 of the Board shall not affect the Board’s powers, 

5 and shall be filled in the same manner as the origi6 nal member was appointed. 

7 (c) CHAIR.— 

8 (1) SELECTION.—The Secretary of Commerce, 

9 in consultation with the Secretary of Homeland Se10 curity and the Attorney General of the United 

11 States, shall select, from among the members of the 

12 Board, an individual to serve for a 2-year term as 

13 Chair of the Board. 

14 (2) CONSECUTIVE TERMS.—An individual may 

15 not serve for more than 2 consecutive terms as 

16 Chair of the Board. 

17 (3) REMOVAL FOR CAUSE.—The Secretary of 

18 Commerce, in consultation with the Secretary of 

19 Homeland Security and the Attorney General of the 

20 United States, may remove the Chair of the Board 

21 and any non-Federal member for good cause. 

22 (d) REMOVAL.—All members of the Board may by 

23 majority vote— 

24 (1) remove any non-Federal member of the 

25 Board from office for conduct determined by the 


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1 Board to be detrimental to the Board or Corpora2 tion; and 

3 (2) request that the Secretary of Commerce ex4 ercise his or her authority to remove the Chair of 

5 the Board for conduct determined by the Board to 

6 be detrimental to the Board or Corporation. 

7 (e) MEETINGS.— 

8 (1) FREQUENCY.—The Board shall meet in ac9 cordance with the bylaws of the Corporation— 

10 (A) at the call of the Chairperson; and 

11 (B) not less frequently than once each 

12 quarter. 

13 (2) TRANSPARENCY.—Meetings of the Board, 

14 including any committee of the Board, shall be open 

15 to the public. The Board may, by majority vote, 

16 close any such meeting only for the time necessary 

17 to preserve the confidentiality of commercial or fi18 nancial information that is privileged or confidential, 

19 to discuss personnel matters, to discuss security 

20 vulnerabilities when making those vulnerabilities 

21 public would increase risk to the network or other22 wise materially threaten network operations, or to 

23 discuss legal matters affecting the Corporation, in24 cluding pending or potential litigation. 


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1 (f) QUORUM.—Eight members of the Board shall 

2 constitute a quorum. 

3 (g) BYLAWS.—A majority of the members of the 

4 Board of Directors may amend the bylaws of the Corpora5 tion. 

6 (h) ATTENDANCE.—Members of the Board of Direc7 tors may attend meetings of the Corporation and vote in 

8 person, via telephone conference, or via video conference. 

9 (i) PROHIBITION ON COMPENSATION.—Members of 

10 the Board of the Corporation shall serve without pay, and 

11 shall not otherwise benefit, directly or indirectly, as a re12 sult of their service to the Corporation, but shall be al13 lowed a per diem allowance for travel expenses, at rates 

14 authorized for an employee of an agency under subchapter 

15 I of chapter 57 of title 5, United States Code, while away 

16 from the home or regular place of business of the member 

17 in the performance of the duties of the Corporation. 

18 SEC. 286. OFFICERS, EMPLOYEES, AND COMMITTEES OF 

19 THE CORPORATION. 

20 (a) OFFICERS AND EMPLOYEES.— 

21 (1) IN GENERAL.—The Corporation shall have 

22 a Chief Executive Officer, and such other officers 

23 and employees as may be named and appointed by 

24 the Board for terms and at rates of compensation 

25 fixed by the Board pursuant to this subsection. The 


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1 Chief Executive Officer may name and appoint such 

2 employees as are necessary. All officers and employ3 ees shall serve at the pleasure of the Board. 

4 (2) LIMITATION.—No individual other than a 

5 citizen of the United States may be an officer of the 

6 Corporation. 

7 (3) NONPOLITICAL NATURE OF APPOINT8 MENT.—No political test or qualification shall be 

9 used in selecting, appointing, promoting, or taking 

10 other personnel actions with respect to officers, 

11 agents, or employees of the Corporation. 

12 (4) COMPENSATION.— 

13 (A) IN GENERAL.—The Board may hire 

14 and fix the compensation of employees hired 

15 under this subsection as may be necessary to 

16 carry out the purposes of the Corporation. 

17 (B) APPROVAL BY COMPENSATION BY FED18 ERAL MEMBERS.—Notwithstanding any other 

19 provision of law, or any bylaw adopted by the 

20 Corporation, all rates of compensation, includ21 ing benefit plans and salary ranges, for officers 

22 and employees of the Board, shall be jointly ap23 proved by the Federal members of the Board. 

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1 tion may receive any salary or other compensa2 tion (except for compensation for services on 

3 boards of directors of other organizations that 

4 do not receive funds from the Corporation, on 

5 committees of such boards, and in similar ac6 tivities for such organizations) from any sources 

7 other than the Corporation for services ren8 dered during the period of the employment of 

9 the officer or employee by the Corporation, un10 less unanimously approved by all voting mem11 bers of the Corporation. 

12 (5) SERVICE ON OTHER BOARDS.—Service by 

13 any officer on boards of directors of other organiza14 tions, on committees of such boards, and in similar 

15 activities for such organizations shall be subject to 

16 annual advance approval by the Board and subject 

17 to the provisions of the Corporation’s Statement of 

18 Ethical Conduct. 

19 (6) RULE OF CONSTRUCTION.—No officer or 

20 employee of the Board or of the Corporation shall be 

21 considered to be an officer or employee of the United 

22 States Government or of the government of the Dis23 trict of Columbia. 

24 (7) CLEARANCE FOR CLASSIFIED INFORMA25 TION.—In order to have the threat and vulnerability 


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1 information necessary to make risk management de2 cisions regarding the network, at a minimum the 

3 Chief Executive Officer and any officers filling the 

4 roles normally titled as Chief Information Officers, 

5 Chief Information Security Officer, and Chief Oper6 ations Officer shall— 

7 (A) be required, within six months of being 

8 hired, to obtain a clearance held by the Director 

9 of National Intelligence that permits them to 

10 receive information classified at the level of Top 

11 Secret, Special Compartmented Information. 

12 (b) ADVISORY COMMITTEES.—The Board— 

13 (1) shall establish a standing public safety advi14 sory committee to assist the Board in carrying out 

15 its duties and responsibilities under this title; and 

16 (2) may establish additional standing or ad hoc 

17 committees, panels, or councils as the Board deter18 mines are necessary. 

19 SEC. 287. NONPROFIT AND NONPOLITICAL NATURE OF THE 

20 CORPORATION. 

21 (a) STOCK.—The Corporation shall have no power to 

22 issue any shares of stock, or to declare or pay any divi23 dends. 

24 (b) PROFIT.—No part of the income or assets of the 

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1 cer, employee, or any other individual associated with the 

2 Corporation, except as salary or reasonable compensation 

3 for services. 

4 (c) POLITICS.—The Corporation may not contribute 

5 to or otherwise support any political party or candidate 

6 for elective public office. 

7 (d) PROHIBITION ON LOBBYING ACTIVITIES.—The 

8 Corporation shall not engage in lobbying activities (as de9 fined in section 3(7) of the Lobbying Disclosure Act of 

10 1995 (5 U.S.C. 1602(7))). 

11 SEC. 288. POWERS, DUTIES, AND RESPONSIBILITIES OF THE 

12 CORPORATION. 

13 (a) GENERAL POWERS.—The Corporation shall have 

14 the authority to do the following: 

15 (1) To adopt and use a corporate seal. 

16 (2) To have succession until dissolved by an Act 

17 of Congress. 

18 (3) To prescribe, through the actions of its 

19 Board, bylaws not inconsistent with Federal law and 

20 the laws of the District of Columbia, regulating the 

21 manner in which the Corporation’s general business 

22 may be conducted and the manner in which the 

23 privileges granted to the Corporation by law may be 

24 exercised. 


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1 (4) To exercise, through the actions of its 

2 Board, all powers specifically granted by the provi3 sions of this title, and such incidental powers as 

4 shall be necessary. 

5 (5) To hold such hearings, sit and act at such 

6 times and places, take such testimony, and receive 

7 such evidence as the Corporation considers necessary 

8 to carry out its responsibilities and duties. 

9 (6) To obtain grants and funds from and make 

10 contracts with individuals, private companies, orga11 nizations, institutions, and Federal, State, regional, 

12 and local agencies, pursuant to guidelines estab13 lished by the Director of the Office of Management 

14 and Budget. 

15 (7) To accept, hold, administer, and utilize 

16 gifts, donations, and bequests of property, both real 

17 and personal, for the purposes of aiding or facili18 tating the work of the Corporation. 

19 (8) To issue notes or bonds, which shall not be 

20 guaranteed or backed in any manner by the Govern21 ment of the United States, to purchasers of such in22 struments in the private capital markets. 

23 (9) To incur indebtedness, which shall be the 

24 sole liability of the Corporation and shall not be 

25 guaranteed or backed by the Government of the 


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1 United States, to carry out the purposes of this 

2 Title. 

3 (10) To spend funds under paragraph (6) in a 

4 manner authorized by the Board, but only for pur5 poses that will advance or enhance public safety 

6 communications consistent with this subtitle. 

7 (11) To establish reserve accounts with funds 

8 that the Corporation may receive from time to time 

9 that exceed the amounts required by the Corporation 

10 to timely pay its debt service and other obligations. 

11 (12) To expend the funds placed in any reserve 

12 accounts established under paragraph (11) (includ13 ing interest earned on any such amounts) in a man14 ner authorized by the Board, but only for purposes 

15 that— 

16 (A) will advance or enhance public safety 

17 communications consistent with this subtitle; or 

18 (B) are otherwise approved by an Act of 

19 Congress. 

20 (13) To build, operate and maintain the public 

21 safety interoperable broadband network. 

22 (14) To take such other actions as the Corpora23 tion (through its Board) may from time to time de24 termine necessary, appropriate, or advisable to ac25 complish the purposes of this subtitle. 


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1 (b) DUTY AND RESPONSIBILITY TO DEPLOY AND

2 OPERATE A NATIONWIDE PUBLIC SAFETY INTEROPER3 ABLE BROADBAND NETWORK.— 

4 (1) IN GENERAL.—The Corporation shall hold 

5 the single public safety wireless license granted 

6 under section 281 and take all actions necessary to 

7 ensure the building, deployment, and operation of a 

8 secure and resilient nationwide public safety inter9 operable broadband network in consultation with 

10 Federal, State, tribal, and local public safety enti11 ties, the Director of NIST, the Commission, and the 

12 public safety advisory committee established in sec13 tion 284(b)(1), including by— 

14 (A) ensuring nationwide standards includ15 ing encryption requirements for use and access 

16 of the network; 

17 (B) issuing open, transparent, and com18 petitive requests for proposals to private sector 

19 entities for the purposes of building, operating, 

20 and maintaining the network; 

21 (C) managing and overseeing the imple22 mentation and execution of contracts or agree23 ments with non-Federal entities to build, oper24 ate, and maintain the network; and 


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1 (D) establishing policies regarding Federal 

2 and public safety support use. 

3 (2) INTEROPERABILITY, SECURITY AND STAND4 ARDS.—In carrying out the duties and responsibil5 ities of this subsection, including issuing requests for 

6 proposals, the Corporation shall— 

7 (A) ensure the safety, security, and resil8 iency of the network, including requirements for 

9 protecting and monitoring the network to pro10 tect against cyber intrusions or cyberattack; 

11 (B) be informed of and manage supply 

12 chain risks to the network, including require13 ments to provide insight into the suppliers and 

14 supply chains for critical network components 

15 and to implement risk management best prac16 tice in network design, contracting, operations 

17 and maintenance; 

18 (C) promote competition in the equipment 

19 market, including devices for public safety com20 munications, by requiring that equipment and 

21 devices for use on the network be— 

22 (i) built to open, non-proprietary, 

23 commercially available standards; 


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1 (ii) capable of being used across the 

2 nationwide public safety broadband net3 work operating in the 700 MHz band; 

4 (iii) be able to be interchangeable with 

5 other vendors’ equipment; and 

6 (iv) backward-compatible with existing 

7 second and third generation commercial 

8 networks to the extent that such capabili9 ties are necessary and technically and eco10 nomically reasonable; and 

11 (D) promote integration of the network 

12 with public safety answering points or their 

13 equivalent. 

14 (3) RURAL COVERAGE.—In carrying out the du15 ties and responsibilities of this subsection, including 

16 issuing requests for proposals, the Corporation, con17 sistent with the license granted under section 281, 

18 shall require deployment phases with substantial 

19 rural coverage milestones as part of each phase of 

20 the construction and deployment of the network. 

21 (4) EXECUTION OF AUTHORITY.—In carrying 

22 out the duties and responsibilities of this subsection, 

23 the Corporation may— 


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1 (A) obtain grants from and make contracts 

2 with individuals, private companies, and Fed3 eral, State, regional, and local agencies; 

4 (B) hire or accept voluntary services of 

5 consultants, experts, advisory boards, and pan6 els to aid the Corporation in carrying out such 

7 duties and responsibilities; 

8 (C) receive payment for use of— 

9 (i) network capacity licensed to the 

10 Corporation; and 

11 (ii) network infrastructure con12 structed, owned, or operated by the Cor13 poration; and 

14 (D) take such other actions as may be nec15 essary to accomplish the purposes set forth in 

16 this subsection. 

17 (c) OTHER SPECIFIC DUTIES AND RESPONSIBIL18 ITIES.— 

19 (1) ESTABLISHMENT OF NETWORK POLICIES.— 

20 In carrying out the requirements under subsection 

21 (b), the Corporation shall take such actions as may 

22 be necessary, including the development of requests 

23 for proposals— 

24 (A) request for proposals should include— 


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1 (i) build timetables, including by tak2 ing into consideration the time needed to 

3 build out to rural areas; 

4 (ii) coverage areas, including coverage 

5 in rural and nonurban areas; 

6 (iii) service levels; 

7 (iv) performance criteria; and 

8 (v) other similar matters for the con9 struction and deployment of such network; 

10 (B) the technical, operational and security 

11 requirements of the network and, as appro12 priate, network suppliers; 

13 (C) practices, procedures, and standards 

14 for the management and operation of such net15 work; 

16 (D) terms of service for the use of such 

17 network, including billing practices; and 

18 (E) ongoing compliance review and moni19 toring of the— 

20 (i) management and operation of such 

21 network; 

22 (ii) practices and procedures of the 

23 entities operating on and the personnel 

24 using such network; and 


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1 (iii) training needs of entities oper2 ating on and personnel using such net3 work. 

4 (2) STATE AND LOCAL PLANNING.— 

5 (A) REQUIRED CONSULTATION.—In devel6 oping requests for proposal and otherwise car7 rying out its responsibilities under this subtitle, 

8 the Corporation shall consult with regional, 

9 State, tribal, and local jurisdictions regarding 

10 the distribution and expenditure of any 

11 amounts required to carry out the policies es12 tablished under paragraph (1), including with 

13 regard to the— 

14 (i) construction of an Evolved Packet 

15 Core or Cores and any Radio Access Net16 work build out; 

17 (ii) placement of towers; 

18 (iii) coverage areas of the network, 

19 whether at the regional, State, tribal, or 

20 local level; 

21 (iv) adequacy of hardening, security, 

22 reliability, and resiliency requirements; 

23 (v) assignment of priority to local 

24 users; 


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1 (vi) assignment of priority and selec2 tion of entities seeking access to or use of 

3 the nationwide public safety interoperable 

4 broadband network established under sub5 section (b); and 

6 (vii) training needs of local users. 

7 (B) METHOD OF CONSULTATION.—The 

8 consultation required under subparagraph (A) 

9 shall occur between the Corporation and the 

10 single officer or governmental body designated 

11 under section 294(d). 

12 (3) LEVERAGING EXISTING INFRASTRUC13 TURE.—In carrying out the requirement under sub14 section (b), the Corporation shall enter into agree15 ments to utilize, to the maximum economically desir16 able, existing— 

17 (A) commercial or other communications 

18 infrastructure; and 

19 (B) Federal, State, tribal, or local infra20 structure. 

21 (4) MAINTENANCE AND UPGRADES.—The Cor22 poration shall ensure through the maintenance, op23 eration, and improvement of the nationwide public 

24 safety interoperable broadband network established 

25 under subsection (b), including by ensuring that the 


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1 Corporation updates and revises any policies estab2 lished under paragraph (1) to take into account new 

3 and evolving technologies and security concerns. 

4 (5) ROAMING AGREEMENTS.—The Corporation 

5 shall negotiate and enter into, as it determines ap6 propriate, roaming agreements with commercial net7 work providers to allow the nationwide public safety 

8 interoperable broadband users to roam onto com9 mercial networks and gain prioritization of public 

10 safety communications over such networks in times 

11 of an emergency. 

12 (6) NETWORK INFRASTRUCTURE AND DEVICE

13 CRITERIA.—The Director of NIST, in consultation 

14 with the Corporation and the Commission, shall en15 sure the development of a list of certified devices 

16 and components meeting appropriate protocols, 

17 encryption requirements, and standards for public 

18 safety entities and commercial vendors to adhere to, 

19 if such entities or vendors seek to have access to, use 

20 of, or compatibility with the nationwide public safety 

21 interoperable broadband network established under 

22 subsection (b). 

23 (7) REPRESENTATION BEFORE STANDARD SET24 TING ENTITIES.—The Corporation, in consultation 

25 with the Director of NIST, the Commission, and the 


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1 public safety advisory committee established under 

2 section 284(b)(1), shall represent the interests of 

3 public safety users of the nationwide public safety 

4 interoperable broadband network established under 

5 subsection (b) before any proceeding, negotiation, or 

6 other matter in which a standards organization, 

7 standards body, standards development organization, 

8 or any other recognized standards-setting entity re9 garding the development of standards relating to 

10 interoperability. 

11 (8) PROHIBITION ON NEGOTIATION WITH FOR12 EIGN GOVERNMENTS.—Except as authorized by the 

13 President, the Corporation shall not have the au14 thority to negotiate or enter into any agreements 

15 with a foreign government on behalf of the United 

16 States. 

17 (d) USE OF MAILS.—The Corporation may use the 

18 United States mails in the same manner and under the 

19 same conditions as the departments and agencies of the 

20 United States. 

21 SEC. 289. INITIAL FUNDING FOR CORPORATION. 

22 (a) NTIA PROVISION OF INITIAL FUNDING TO THE

23 CORPORATION.— 

24 (1) IN GENERAL.—Prior to the commencement 

25 of incentive auctions to be carried out under section 


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1 309(j)(8)(F) of the Communications Act of 1934 or 

2 the auction of spectrum pursuant to section 273 of 

3 this subtitle, the NTIA is hereby appropriated 

4 $50,000,000 for reasonable administrative expenses 

5 and other costs associated with the establishment of 

6 the Corporation, and that may be transferred as 

7 needed to the Corporation for expenses before the 

8 commencement of incentive auction: Provided, That 

9 funding shall expire on September 30, 2014. 

10 (2) CONDITION OF FUNDING.—At the time of 

11 application for, and as a condition to, any such 

12 funding, the Corporation shall file with the NTIA a 

13 statement with respect to the anticipated use of the 

14 proceeds of this funding. 

15 (3) NTIA APPROVAL.—If the NTIA determines 

16 that such funding is necessary for the Corporation 

17 to carry out its duties and responsibilities under this 

18 title and that Corporation has submitted a plan, 

19 then the NTIA shall notify the appropriate commit20 tees of Congress 30 days before each transfer of 

21 funds takes place. 

22 SEC. 290. PERMANENT SELF-FUNDING; DUTY TO ASSESS 

23 AND COLLECT FEES FOR NETWORK USE. 

24 (a) IN GENERAL.—The Corporation shall have the 

25 authority to assess and collect the following fees: 


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1 (1) NETWORK USER FEE.—A user or subscrip2 tion fee from each entity, including any public safety 

3 entity or secondary user, that seeks access to or use 

4 of the nationwide public safety interoperable 

5 broadband network established under this title. 

6 (2) LEASE FEES RELATED TO NETWORK CA7 PACITY.— 

8 (A) IN GENERAL.—A fee from any non9 Federal entity that seeks to enter into a covered 

10 leasing agreement. 

11 (B) COVERED LEASING AGREEMENT.—For 

12 purposes of subparagraph (A), a ‘‘covered leas13 ing agreement’’ means a written agreement be14 tween the Corporation and secondary user to 

15 permit— 

16 (i) access to network capacity on a 

17 secondary basis for non-public safety serv18 ices; and 

19 (ii) the spectrum allocated to such en20 tity to be used for commercial trans21 missions along the dark fiber of the long22 haul network of such entity. 

23 (3) LEASE FEES RELATED TO NETWORK EQUIP24 MENT AND INFRASTRUCTURE.—A fee from any non25 Federal entity that seeks access to or use of any 


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1 equipment or infrastructure, including antennas or 

2 towers, constructed or otherwise owned by the Cor3 poration. 

4 (b) ESTABLISHMENT OF FEE AMOUNTS; PERMA5 NENT SELF-FUNDING.—The total amount of the fees as6 sessed for each fiscal year pursuant to this section shall 

7 be sufficient, and shall not exceed the amount necessary, 

8 to recoup the total expenses of the Corporation in carrying 

9 out its duties and responsibilities described under this title 

10 for the fiscal year involved. 

11 (c) REQUIRED REINVESTMENT OF FUNDS.—The 

12 Corporation shall reinvest amounts received from the as13 sessment of fees under this section in the nationwide pub14 lic safety interoperable broadband network by using such 

15 funds only for constructing, maintaining, managing or im16 proving the network. 

17 SEC. 291. AUDIT AND REPORT. 

18 (a) AUDIT.— 

19 (1) IN GENERAL.—The financial transactions of 

20 the Corporation for any fiscal year during which 

21 Federal funds are available to finance any portion of 

22 its operations shall be audited by the Comptroller 

23 General of the United States in accordance with the 

24 principles and procedures applicable to commercial 

25 corporate transactions and under such rules and 


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1 regulations as may be prescribed by the Comptroller 

2 General. 

3 (2) LOCATION.—Any audit conducted under 

4 paragraph (1) shall be conducted at the place or 

5 places where accounts of the Corporation are nor6 mally kept. 

7 (3) ACCESS TO CORPORATION BOOKS AND DOC8 UMENTS.— 

9 (A) IN GENERAL.—For purposes of an 

10 audit conducted under paragraph (1), the rep11 resentatives of the Comptroller General shall— 

12 (i) have access to all books, accounts, 

13 records, reports, files, and all other papers, 

14 things, or property belonging to or in use 

15 by the Corporation that pertain to the fi16 nancial transactions of the Corporation 

17 and are necessary to facilitate the audit; 

18 and 

19 (ii) be afforded full facilities for 

20 verifying transactions with the balances or 

21 securities held by depositories, fiscal 

22 agents, and custodians. 

23 (B) REQUIREMENT.—All books, accounts, 

24 records, reports, files, papers, and property of 


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1 the Corporation shall remain in the possession 

2 and custody of the Corporation. 

3 (b) REPORT.— 

4 (1) IN GENERAL.—The Comptroller General of 

5 the United States shall submit a report of each 

6 audit conducted under subsection (a) to— 

7 (A) the appropriate committees of Con8 gress; 

9 (B) the President; and 

10 (C) the Corporation. 

11 (2) CONTENTS.—Each report submitted under 

12 paragraph (1) shall contain— 

13 (A) such comments and information as the 

14 Comptroller General determines necessary to in15 form Congress of the financial operations and 

16 condition of the Corporation; 

17 (B) any recommendations of the Comp18 troller General relating to the financial oper19 ations and condition of the Corporation; and 

20 (C) a description of any program, expendi21 ture, or other financial transaction or under22 taking of the Corporation that was observed 

23 during the course of the audit, which, in the 

24 opinion of the Comptroller General, has been 


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1 carried on or made without the authority of 

2 law. 

3 SEC. 292. ANNUAL REPORT TO CONGRESS. 

4 (a) IN GENERAL.—Not later than 1 year after the 

5 date of enactment of this subtitle, and each year there6 after, the Corporation shall submit an annual report cov7 ering the preceding fiscal year to the President and the 

8 appropriate committees of Congress. 

9 (b) REQUIRED CONTENT.—The report required 

10 under subsection (a) shall include— 

11 (1) a comprehensive and detailed report of the 

12 operations, activities, financial condition, and accom13 plishments of the Corporation under this section; 

14 and 

15 (2) such recommendations or proposals for leg16 islative or administrative action as the Corporation 

17 deems appropriate. 

18 (c) AVAILABILITY TO TESTIFY.—The directors, offi19 cers, employees, and agents of the Corporation shall be 

20 available to testify before the appropriate committees of 

21 the Congress with respect to— 

22 (1) the report required under subsection (a); 

23 (2) the report of any audit made by the Comp24 troller General under section 291; or 


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1 (3) any other matter which such committees 

2 may determine appropriate. 

3 SEC. 293. PROVISION OF TECHNICAL ASSISTANCE. 

4 The Commission and the Departments of Homeland 

5 Security, Justice and Commerce may provide technical as6 sistance to the Corporation and may take any action at 

7 the request of the Corporation in effectuating its duties 

8 and responsibilities under this title. 

9 SEC. 294. STATE AND LOCAL IMPLEMENTATION. 

10 (a) ESTABLISHMENT OF STATE AND LOCAL IMPLE11 MENTATION GRANT PROGRAM.—The Assistant Secretary, 

12 in consultation with the Corporation, shall take such ac13 tion as is necessary to establish a grant program to make 

14 grants to States to assist State, regional, tribal, and local 

15 jurisdictions to identify, plan, and implement the most ef16 ficient and effective way for such jurisdictions to utilize 

17 and integrate the infrastructure, equipment, and other ar18 chitecture associated with the nationwide public safety 

19 interoperable broadband network established in this sub20 title to satisfy the wireless communications and data serv21 ices needs of that jurisdiction, including with regards to 

22 coverage, siting, identity management for public safety 

23 users and their devices, and other needs. 

24 (b) MATCHING REQUIREMENTS; FEDERAL SHARE.— 


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1 (1) IN GENERAL.—The Federal share of the 

2 cost of any activity carried out using a grant under 

3 this section may not exceed 80 percent of the eligible 

4 costs of carrying out that activity, as determined by 

5 the Assistant Secretary, in consultation with the 

6 Corporation. 

7 (2) WAIVER.—The Assistant Secretary may 

8 waive, in whole or in part, the requirements of para9 graph (1) for good cause shown if the Assistant Sec10 retary determines that such a waiver is in the public 

11 interest. 

12 (c) PROGRAMMATIC REQUIREMENTS.—Not later than 

13 6 months after the establishment of the bylaws of the Cor14 poration pursuant to section 286 of this subtitle, the As15 sistant Secretary, in consultation with the Corporation, 

16 shall establish requirements relating to the grant program 

17 to be carried out under this section, including the fol18 lowing: 

19 (1) Defining eligible costs for purposes of sub20 section (b)(1). 

21 (2) Determining the scope of eligible activities 

22 for grant funding under this section. 

23 (3) Prioritizing grants for activities that ensure 

24 coverage in rural as well as urban areas. 


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1 (d) CERTIFICATION AND DESIGNATION OF OFFICER

2 OR GOVERNMENTAL BODY.—In carrying out the grant 

3 program established under this section, the Assistant Sec4 retary shall require each State to certify in its application 

5 for grant funds that the State has designated a single offi6 cer or governmental body to serve as the coordinator of 

7 implementation of the grant funds. 

8 SEC. 295. STATE AND LOCAL IMPLEMENTATION FUND. 

9 (a) ESTABLISHMENT.—There is established in the 

10 Treasury of the United States a fund to be known as the 

11 ‘‘State and Local Implementation Fund’’. 

12 (b) PURPOSE.—The Assistant Secretary shall estab13 lish and administer the grant program authorized under 

14 section 294 of this subtitle using funds deposited in the 

15 State and Local Implementation Fund. 

16 (c) CREDITING OF RECEIPTS.—There shall be depos17 ited into or credited to the State and Local Implementa18 tion Fund— 

19 (1) any amounts specified in section 297; and 

20 (2) any amounts borrowed by the Assistant 

21 Secretary under subsection (d). 

22 (d) BORROWING AUTHORITY.— 

23 (1) IN GENERAL.—The Assistant Secretary 

24 may borrow from the General Fund of the Treasury 

25 beginning on October 1, 2011, such sums as may be 


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1 necessary, but not to exceed $100,000,000 to imple2 ment section 294. 

3 (2) REIMBURSEMENT.—The Assistant Sec4 retary shall reimburse the General Fund of the 

5 Treasury, with interest, for any amounts borrowed 

6 under subparagraph (1) as funds are deposited into 

7 the State and Local Implementation Fund. 

8 SEC. 296. PUBLIC SAFETY WIRELESS COMMUNICATIONS RE9 SEARCH AND DEVELOPMENT. 

10 (a) NIST DIRECTED RESEARCH AND DEVELOPMENT

11 PROGRAM.—From amounts made available from the Pub12 lic Safety Trust Fund established under section 297, the 

13 Director of NIST, in consultation with the Commission, 

14 the Secretary of Homeland Security, and the National In15 stitute of Justice of the Department of Justice, as appro16 priate, shall conduct research and assist with the develop17 ment of standards, technologies, and applications to ad18 vance wireless public safety communications. 

19 (b) REQUIRED ACTIVITIES.—In carrying out the re20 quirement under subsection (a), the Director of NIST, in 

21 consultation with the Corporation and the public safety 

22 advisory committee established under section 286(b)(1), 

23 shall— 

24 (1) document public safety wireless communica25 tions technical requirements; 


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1 (2) accelerate the development of the capability 

2 for communications between currently deployed pub3 lic safety narrowband systems and the nationwide 

4 public safety interoperable broadband network to be 

5 established under this title; 

6 (3) establish a research plan, and direct re7 search, that addresses the wireless communications 

8 needs of public safety entities beyond what can be 

9 provided by the current generation of broadband 

10 technology; 

11 (4) accelerate the development of mission crit12 ical voice, including device-to-device ‘‘talkaround’’ 

13 standards for broadband networks, if necessary and 

14 practical, public safety prioritization, authentication 

15 capabilities, as well as a standard application pro16 graming interfaces for the nationwide public safety 

17 interoperable broadband network to be established 

18 under this title, if necessary and practical; 

19 (5) seek to develop technologies, standards, 

20 processes, and architectures that provide a signifi21 cant improvement in network security, resiliency and 

22 trustworthiness; and 

23 (6) convene working groups of relevant govern24 ment and commercial parties to achieve the require25 ments in paragraphs (1) through (5). 


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1 (c) TRANSFER AUTHORITY.—If in the determination 

2 of the Director of NIST another Federal agency is better 

3 suited to carry out and oversee the research and develop4 ment of any activity to be carried out in accordance with 

5 the requirements of this section, the Director may transfer 

6 any amounts provided under this section to such agency, 

7 including to the National Institute of Justice of the De8 partment of Justice and the Department of Homeland Se9 curity. 

10 SEC. 297. PUBLIC SAFETY TRUST FUND. 

11 (a) ESTABLISHMENT OF PUBLIC SAFETY TRUST

12 FUND.— 

13 (1) IN GENERAL.—There is established in the 

14 Treasury of the United States a trust fund to be 

15 known as the ‘‘Public Safety Trust Fund’’. 

16 (2) CREDITING OF RECEIPTS.— 

17 (A) IN GENERAL.—There shall be depos18 ited into or credited to the Public Safety Trust 

19 Fund the proceeds from the auction of spec20 trum carried out pursuant to— 

21 (i) section 273 of this subtitle; and 

22 (ii) section 309(j)(8)(F) of the Com23 munications Act of 1934, as added by sec24 tion 273 of this subtitle. 


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1 (B) AVAILABILITY.—Amounts deposited 

2 into or credited to the Public Safety Trust 

3 Fund in accordance with subparagraph (A) 

4 shall remain available until the end of fiscal 

5 year 2018. Upon the expiration of the period 

6 described in the prior sentence such amounts 

7 shall be deposited in the General Fund of the 

8 Treasury, where such amounts shall be dedi9 cated for the sole purpose of deficit reduction. 

10 (b) USE OF FUND.—Amounts deposited in the Public 

11 Safety Trust Fund shall be used in the following manner: 

12 (1) PAYMENT OF AUCTION INCENTIVE.— 

13 (A) REQUIRED DISBURSALS.—Amounts in 

14 the Public Safety Trust Fund shall be used to 

15 make any required disbursal of payments to li16 censees required pursuant to clause (i) and sub17 clause (IV) of clause (ii) of section 309(j)(8)(F) 

18 of the Communications Act of 1934. 

19 (B) NOTIFICATION TO CONGRESS.— 

20 (i) IN GENERAL.—At least 3 months 

21 in advance of any incentive auction con22 ducted pursuant to subparagraph (F) of 

23 section 309(j)(8) of the Communications 

24 Act of 1934, the Chairman of the Commis25 sion, in consultation with the Director of 


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1 the Office of Management and Budget, 

2 shall notify the appropriate committees of 

3 Congress— 

4 (I) of the methodology for calcu5 lating the disbursal of payments to 

6 certain licensees required pursuant to 

7 clause (i) and subclauses (III) and 

8 (IV) of clause of (ii) of such section; 

9 (II) that such methodology con10 siders the value of the spectrum vol11 untarily relinquished in its current use 

12 and the timeliness with which the li13 censee cleared its use of such spec14 trum; and 

15 (III) of the estimated payments 

16 to be made from the Incentive Auction 

17 Relocation Fund established under 

18 section 309(j)(8)(G) of the Commu19 nications Act of 1934. 

20 (ii) DEFINITION.—In this clause, the 

21 term ‘‘appropriate committees of Con22 gress’’ means— 

23 (I) the Committee on Commerce, 

24 Science, and Transportation of the 

25 Senate; 


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1 (II) the Committee on Appropria2 tions of the Senate; 

3 (III) the Committee on Energy 

4 and Commerce of the House of Rep5 resentatives; and 

6 (IV) the Committee on Appro7 priations of the House of Representa8 tives. 

9 (2) INCENTIVE AUCTION RELOCATION FUND.— 

10 Not more than $1,000,000,000 shall be deposited in 

11 the Incentive Auction Relocation Fund established 

12 under section 309(j)(8)(G) of the Communications 

13 Act of 1934. 

14 (3) STATE AND LOCAL IMPLEMENTATION

15 FUND.—$200,000,000 shall be deposited in the 

16 State and Local Implementation Fund established 

17 under section 294. 

18 (4) PUBLIC SAFETY BROADBAND CORPORA19 TION.—$6,450,000,000 shall be deposited with the 

20 Public Safety Broadband Corporation established 

21 under section 284, of which pursuant to its respon22 sibilities and duties set forth under section 288 to 

23 deploy and operate a nationwide public safety inter24 operable broadband network. Funds deposited with 

25 the Public Safety Broadband Corporation shall be 


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1 available after submission of a five-year budget by 

2 the Corporation and approval by the Secretary of 

3 Commerce, in consultation with the Secretary of 

4 Homeland Security, Director of the Office of Man5 agement and Budget and Attorney General of the 

6 United States. 

7 (5) PUBLIC SAFETY RESEARCH AND DEVELOP8 MENT.—After approval by the Office of Management 

9 and Budget of a spend plan developed by the Direc10 tor of NIST, a Wireless Innovation (WIN) Fund of 

11 up to $300,000,000 shall be made available for use 

12 by the Director of NIST to carry out the research 

13 program established under section 296 and be avail14 able until expended. If less than $300,000,000 is ap15 proved by the Office of Management and Budget, 

16 the remainder shall be transferred to the Public 

17 Safety Broadband Corporation established in section 

18 284 and be available for duties set forth under sec19 tion 288 to deploy and operate a nationwide public 

20 safety interoperable broadband network. 

21 (6) DEFICIT REDUCTION.—Any amounts re22 maining after the deduction of the amounts required 

23 under paragraphs (1) through (5) shall be deposited 

24 in the General Fund of the Treasury, where such 


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1 amounts shall be dedicated for the sole purpose of 

2 deficit reduction. 

3 SEC. 298. FCC REPORT ON EFFICIENT USE OF PUBLIC 

4 SAFETY SPECTRUM. 

5 (a) IN GENERAL.—Not later than 180 days after the 

6 date of the enactment of this subtitle and every 2 years 

7 thereafter, the Commission shall, in consultation with the 

8 Assistant Secretary and the Director of NIST, conduct a 

9 study and submit to the appropriate committees of Con10 gress a report on the spectrum allocated for public safety 

11 use. 

12 (b) CONTENTS.—The report required by subsection 

13 (a) shall include— 

14 (1) an examination of how such spectrum is 

15 being used; 

16 (2) recommendations on how such spectrum 

17 may be used more efficiently; 

18 (3) an assessment of the feasibility of public 

19 safety entities relocating from other bands to the 

20 public safety broadband spectrum; and 

21 (4) an assessment of whether any spectrum 

22 made available by the relocation described in para23 graph (3) could be returned to the Commission for 

24 reassignment through auction, including through use 

25 of incentive auction authority under subparagraph 


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1 (G) of section 309(j)(8) of the Communications Act 

2 of 1934 (47 U.S.C. 309(j)(8)), as added by section 

3 273(a). 

4 SEC. 299. PUBLIC SAFETY ROAMING AND PRIORITY AC5 CESS. 

6 The Commission may adopt rules, if necessary in the 

7 public interest, to improve the ability of public safety users 

8 to roam onto commercial networks and to gain priority 

9 access to commercial networks in an emergency if— 

10 (1) the public safety entity equipment is tech11 nically compatible with the commercial network; 

12 (2) the commercial network is reasonably com13 pensated; and 

14 (3) such access does not preempt or otherwise 

15 terminate or degrade all existing voice conversations 

16 or data sessions. 

17 TITLE III—ASSISTANCE FOR THE 

18 UNEMPLOYED AND PATH19 WAYS BACK TO WORK 

20 Subtitle A—Supporting 

21 Unemployed Workers 

22 SEC. 301. SHORT TITLE. 

23 This subtitle may be cited as the ‘‘Supporting Unem24 ployed Workers Act of 2011’’. 


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1 PART I—EXTENSION OF EMERGENCY UNEMPLOY2 MENT COMPENSATION AND CERTAIN EX3 TENDED BENEFITS PROVISIONS, AND ESTAB4 LISHMENT OF SELF-EMPLOYMENT ASSIST5 ANCE PROGRAM 

6 SEC. 311. EXTENSION OF EMERGENCY UNEMPLOYMENT 

7 COMPENSATION PROGRAM. 

8 (a) IN GENERAL.—Section 4007 of the Supplemental 

9 Appropriations Act, 2008 (Public Law 110–252; 26 

10 U.S.C. 3304 note), is amended— 

11 (1) by striking ‘‘January 3, 2012’’ each place 

12 it appears and inserting ‘‘January 3, 2013’’; 

13 (2) in the heading for subsection (b)(2), by 

14 striking ‘‘January 3, 2012’’ and inserting ‘‘January 

15 3, 2013’’; and 

16 (3) in subsection (b)(3), by striking ‘‘June 9, 

17 2012’’ and inserting ‘‘June 8, 2013’’. 

18 (b) FUNDING.—Section 4004(e)(1) of the Supple19 mental Appropriations Act, 2008 (Public Law 110–252; 

20 26 U.S.C. 3304 note), is amended— 

21 (1) in subparagraph (F), by striking ‘‘and’’ at 

22 the end; and 

23 (2) by inserting after subparagraph (G) the fol24 lowing: 


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1 ‘‘(H) the amendments made by section 101 

2 of the Supporting Unemployed Workers Act of 

3 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 Unemployment Compensation Extension Act 

7 of 2010 (Public Law 111–205). 

8 SEC. 312. TEMPORARY EXTENSION OF EXTENDED BENEFIT 

9 PROVISIONS. 

10 (a) IN GENERAL.—Section 2005 of the Assistance for 

11 Unemployed Workers and Struggling Families Act, as 

12 contained in Public Law 111–5 (26 U.S.C. 3304 note), 

13 is amended— 

14 (1) by striking ‘‘January 4, 2012’’ each place 

15 it appears and inserting ‘‘January 4, 2013’’; 

16 (2) in the heading for subsection (b)(2), by 

17 striking ‘‘JANUARY 4, 2012’’ and inserting ‘‘JANU18 ARY 4, 2013’’; and 

19 (3) in subsection (c), by striking ‘‘June 11, 

20 2012’’ and inserting ‘‘June 11, 2013’’. 

21 (b) EXTENSION OF MATCHING FOR STATES WITH

22 NO WAITING WEEK.—Section 5 of the Unemployment 

23 Compensation Extension Act of 2008 (Public Law 110– 

24 449; 26 U.S.C. 3304 note) is amended by striking ‘‘June 

25 10, 2012’’ and inserting ‘‘June 9, 2013’’. 


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1 (c) EXTENSION OF MODIFICATION OF INDICATORS

2 UNDER THE EXTENDED BENEFIT PROGRAM.—Section 

3 502 of the Tax Relief, Unemployment Insurance Reau4 thorization, and Job Creation Act of 2010 (Public Law 

5 111–312; 26 U.S.C. 3304 note) is amended— 

6 (1) in subsection (a) by striking ‘‘December 31, 

7 2011’’ and inserting ‘‘December 31, 2012’’; and 

8 (2) in subsection (b)(2) by striking ‘‘December 

9 31, 2011’’ and inserting ‘‘December 31, 2012’’. 

10 (d) EFFECTIVE DATE.—The amendments made by 

11 this section shall take effect as if included in the enact12 ment of the Unemployment Compensation Extension Act 

13 of 2010 (Public Law 111–205). 

14 SEC. 313. REEMPLOYMENT SERVICES AND REEMPLOYMENT 

15 AND ELIGIBILITY ASSESSMENT ACTIVITIES. 

16 (a) IN GENERAL.— 

17 (1) PROVISION OF SERVICES AND ACTIVITIES.— 

18 Section 4001 of the Supplemental Appropriations 

19 Act, 2008, (Public Law 110–252; 26 U.S.C. 3304 

20 note), is amended by inserting the following new 

21 subsection (h): 

22 ‘‘(h) IN GENERAL.— 

23 ‘‘(1) REQUIRED PROVISION OF SERVICES AND

24 ACTIVITIES.—An agreement under this section shall 

25 require that the State provide reemployment services 


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1 and reemployment and eligibility assessment activi2 ties to each individual receiving emergency unem3 ployment compensation who, on or after the date 

4 that is 30 days after the date of enactment of the 

5 Supporting Unemployed Workers Act of 2011, es6 tablishes an account under section 4002(b), com7 mences receiving the amounts described in section 

8 4002(c), commences receiving the amounts described 

9 in section 4002(d), or commences receiving the 

10 amounts described in subsection 4002(e), whichever 

11 occurs first. Such services and activities shall be pro12 vided by the staff of the State agency responsible for 

13 administration of the State unemployment com14 pensation law or the Wagner-Peyser Act from funds 

15 available pursuant to section 4004(c)(2) and may 

16 also be provided from funds available under the 

17 Wagner-Peyser Act. 

18 ‘‘(2) DESCRIPTION OF SERVICES AND ACTIVI19 TIES.—The reemployment services and in-person re20 employment and eligibility assessment activities pro21 vided to individuals receiving emergency unemploy22 ment compensation described in paragraph (1)— 

23 ‘‘(A) shall include— 

24 ‘‘(i) the provision of labor market and 

25 career information; 


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1 ‘‘(ii) an assessment of the skills of the 

2 individual; 

3 ‘‘(iii) orientation to the services avail4 able through the One-Stop centers estab5 lished under title I of the Workforce In6 vestment Act of 1998; 

7 ‘‘(iv) job search counseling and the 

8 development or review of an individual re9 employment plan that includes participa10 tion in job search activities and appro11 priate workshops and may include referrals 

12 to appropriate training services; and 

13 ‘‘(v) review of the eligibility of the in14 dividual for emergency unemployment com15 pensation relating to the job search activi16 ties of the individual; and 

17 ‘‘(B) may include the provision of— 

18 ‘‘(i) comprehensive and specialized as19 sessments; 

20 ‘‘(ii) individual and group career 

21 counseling; and 

22 ‘‘(iii) additional reemployment serv23 ices. 

24 ‘‘(3) PARTICIPATION REQUIREMENT.—As a con25 dition of continuing eligibility for emergency unemVerDate Mar 15 2010 01:31 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00245 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 ployment compensation for any week, an individual 

2 who has been referred to reemployment services or 

3 reemployment and eligibility assessment activities 

4 under this subsection shall participate, or shall have 

5 completed participation in, such services or activi6 ties, unless the State agency responsible for the ad7 ministration of State unemployment compensation 

8 law determines that there is justifiable cause for fail9 ure to participate or complete such services or activi10 ties, as defined in guidance to be issued by the Sec11 retary of Labor.’’. 

12 (2) ISSUANCE OF GUIDANCE.—Not later than 

13 30 days after the date of enactment of this Act, the 

14 Secretary shall issue guidance on the implementation 

15 of the reemployment services and reemployment and 

16 eligibility assessments activities required to be pro17 vided under the amendments made by paragraph 

18 (1). 

19 (b) FUNDING.— 

20 (1) IN GENERAL.—Section 4004(c) of the Sup21 plemental Appropriations Act, 2008 (Public Law 

22 110–252; 26 U.S.C. 3304 note), is amended— 

23 (A) by striking ‘‘There’’ and inserting ‘‘(1) 

24 ADMINISTRATION.—There’’; and 


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1 (B) by inserting the following new para2 graph: 

3 ‘‘(2) REEMPLOYMENT SERVICES AND REEM4 PLOYMENT AND ELIGIBILITY ASSESSMENT ACTIVI5 TIES.— 

6 ‘‘(A) APPROPRIATION.—There are appro7 priated from the general fund of the Treasury, 

8 without fiscal year limitation, out of the em9 ployment security administration account as es10 tablished by section 901(a) of the Social Secu11 rity Act, such sums as determined by the Sec12 retary of Labor in accordance with subpara13 graph (B) to assist States in providing reem14 ployment services and reemployment and eligi15 bility assessment activities described in section 

16 4001(h)(2). 

17 ‘‘(B) DETERMINATION OF TOTAL

18 AMOUNT.—The amount referred to in subpara19 graph (A) is the amount the Secretary esti20 mates is equal to— 

21 ‘‘(i) the number of individuals who 

22 will receive reemployment services and re23 employment eligibility and assessment ac24 tivities described in section 4001(h)(2) in 


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1 all States through the date specified in sec2 tion 4007(b)(3), multiplied by 

3 ‘‘(ii) $200. 

4 ‘‘(C) DISTRIBUTION AMONG STATES.—Of 

5 the amounts appropriated under subparagraph 

6 (A), the Secretary of Labor shall distribute 

7 amounts to each State, in accordance with sec8 tion 4003(c), that the Secretary estimates is 

9 equal to— 

10 ‘‘(i) the number of individuals who 

11 will receive reemployment services and re12 employment and eligibility assessment ac13 tivities described in section 4001(h)(2) in 

14 such State through the date specified in 

15 section 4007(b)(3), multiplied by 

16 ‘‘(ii) $200.’’. 

17 (2) TRANSFER OF FUNDS.—Section 4004(e) of 

18 the Supplemental Appropriations Act, 2008 (Public 

19 Law 110–252; 26 U.S.C. 3304 note), is amended— 

20 (A) in paragraph (2), by striking the pe21 riod and inserting ‘‘; and’’; and 

22 (B) by inserting the following paragraph 

23 (3): 

24 ‘‘(3) to the Employment Ssecurity Administra25 tion account (as established by section 901(a) of the 


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1 Social Security Act) such sums as the Secretary of 

2 Labor determines to be necessary in accordance with 

3 subsection (c)(2) to assist States in providing reem4 ployment services and reemployment eligibility and 

5 assessment activities described in section 

6 4001(h)(2).’’. 

7 SEC. 314. FEDERAL-STATE AGREEMENTS TO ADMINISTER A 

8 SELF-EMPLOYMENT ASSISTANCE PROGRAM. 

9 Section 4001 of the Supplemental Appropriations 

10 Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note), 

11 as amended by section 313, is further amended by insert12 ing a new subsection (i) as follows: 

13 ‘‘(i) AUTHORITY TO CONDUCT SELF-EMPLOYMENT

14 ASSISTANCE PROGRAM.— 

15 ‘‘(1) IN GENERAL.— 

16 ‘‘(A) ESTABLISHMENT.—Any agreement 

17 under subsection (a) may provide that the State 

18 agency of the State shall establish a self-em19 ployment assistance program described in para20 graph (2), to provide for the payment of emer21 gency unemployment compensation as self-em22 ployment assistance allowances to individuals 

23 who meet the eligibility criteria specified in sub24 section (b). 


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1 ‘‘(B) PAYMENT OF ALLOWANCES.—The 

2 self-employment assistance allowance described 

3 in subparagraph (A) shall be paid for up to 26 

4 weeks to an eligible individual from such indi5 vidual’s emergency unemployment compensation 

6 account described in section 4002, and the 

7 amount in such account shall be reduced ac8 cordingly. 

9 ‘‘(2) DEFINITION OF ‘SELF-EMPLOYMENT AS10 SISTANCE PROGRAM’.—For the purposes of this title, 

11 the term ‘self-employment assistance program’ 

12 means a program as defined under section 3306(t) 

13 of the Internal Revenue Code of 1986 (26 U.S.C. 

14 3306(t)), except as follows: 

15 ‘‘(A) all references to ‘regular unemploy16 ment compensation under the State law’ shall 

17 be deemed to refer instead to ‘emergency unem18 ployment compensation under title IV of the 

19 Supplemental Appropriations Act, 2008 (Public 

20 Law 110–252; 26 U.S.C. 3304 note)’; 

21 ‘‘(B) paragraph (3)(B) shall not apply; 

22 ‘‘(C) clause (i) of paragraph (3)(C) shall 

23 be deemed to state as follows: 

24 ‘‘ ‘(i) include any entrepreneurial 

25 training that the State may provide in coVerDate Mar 15 2010 01:31 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00250 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 ordination with programs of training of2 fered by the Small Business Administra3 tion, which may include business coun4 seling, mentorship for participants, access 

5 to small business development resources, 

6 and technical assistance; and’; 

7 ‘‘(D) the reference to ‘5 percent’ in para8 graph (4) shall be deemed to refer instead to ‘1 

9 percent’; and 

10 ‘‘(E) paragraph (5) shall not apply. 

11 ‘‘(3) AVAILABILITY OF SELF-EMPLOYMENT AS12 SISTANCE ALLOWANCES.—In the case of an indi13 vidual who has received any emergency unemploy14 ment compensation payment under this title, such 

15 individual shall not receive self-employment assist16 ance allowances under this subsection unless the 

17 State agency has a reasonable expectation that such 

18 individual will be entitled to at least 26 times the in19 dividual’s average weekly benefit amount of emer20 gency unemployment compensation. 

21 ‘‘(4) PARTICIPANT OPTION TO TERMINATE PAR22 TICIPATION IN SELF-EMPLOYMENT ASSISTANCE PRO23 GRAM.— 

24 ‘‘(A) TERMINATION.—An individual who is 

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1 sistance program may opt to discontinue par2 ticipation in such program. 

3 ‘‘(B) CONTINUED ELIGIBILITY FOR EMER4 GENCY UNEMPLOYMENT COMPENSATION.—An 

5 individual whose participation in the self-em6 ployment assistance program is terminated as 

7 described in paragraph (1) or who has com8 pleted participation in such program, and who 

9 continues to meet the eligibility requirements 

10 for emergency unemployment compensation 

11 under this title, shall receive emergency unem12 ployment compensation payments with respect 

13 to subsequent weeks of unemployment, to the 

14 extent that amounts remain in the account es15 tablished for such individual under section 

16 4002(b) or to the extent that such individual 

17 commences receiving the amounts described in 

18 subsections (c), (d), or (e) of such section, re19 spectively.’’. 

20 SEC. 315. CONFORMING AMENDMENT ON PAYMENT OF 

21 BRIDGE TO WORK WAGES. 

22 Section 4001 of the Supplemental Appropriations 

23 Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note), 

24 as amended by section 103, is further amended by insert25 ing a new subsection (j) as follows: 


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1 ‘‘(j) AUTHORIZATION TO PAY WAGES FOR PURPOSES

2 OF A BRIDGE TO WORK PROGRAM.—Any State that estab3 lishes a Bridge to Work program under section 204 of the 

4 Supporting Unemployed Workers Act of 2011 is author5 ized to deduct from an emergency unemployment com6 pensation account established for such individual under 

7 section 4002 such sums as may be necessary to pay wages 

8 for such individual as authorized under section 204(b)(1) 

9 of such Act.’’. 

10 SEC. 316. ADDITIONAL EXTENDED UNEMPLOYMENT BENE11 FITS UNDER THE RAILROAD UNEMPLOY12 MENT INSURANCE ACT. 

13 (a) EXTENSION.—Section 2(c)(2)(D)(iii) of the Rail14 road Unemployment Insurance Act, as added by section 

15 2006 of the American Recovery and Reinvestment Act of 

16 2009 (Public Law 111–5) and as amended by section 9 

17 of the Worker, Homeownership, and Business Assistance 

18 Act of 2009 (Public Law 111–92), is amended— 

19 (1) by striking ‘‘June 30, 2011’’ and inserting 

20 ‘‘June 30, 2012’’; and 

21 (2) by striking ‘‘December 31, 2011’’ and in22 serting ‘‘December 31, 2012’’. 

23 (b) CLARIFICATION ON AUTHORITY TO USE

24 FUNDS.—Funds appropriated under either the first or 

25 second sentence of clause (iv) of section 2(c)(2)(D) of the 


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1 Railroad Unemployment Insurance Act shall be available 

2 to cover the cost of additional extended unemployment 

3 benefits provided under such section 2(c)(2)(D) by reason 

4 of the amendments made by subsection (a) as well as to 

5 cover the cost of such benefits provided under such section 

6 2(c)(2)(D), as in effect on the day before the date of the 

7 enactment of this Act. 

8 PART II—REEMPLOYMENT NOW PROGRAM 

9 SEC. 321. ESTABLISHMENT OF REEMPLOYMENT NOW PRO10 GRAM. 

11 (a) IN GENERAL.—There is hereby established the 

12 Reemployment NOW program to be carried out by the 

13 Secretary of Labor in accordance with this part in order 

14 to facilitate the reemployment of individuals who are re15 ceiving emergency unemployment compensation under title 

16 IV of the Supplemental Appropriations Act, 2008 (Public 

17 Law 110–252; 26 U.S.C. 3304 note) (hereafter in this 

18 part referred to as ‘‘EUC claimants’’). 

19 (b) AUTHORIZATION AND APPROPRIATION.—There 

20 are authorized to be appropriated and appropriated from 

21 the general fund of the Treasury for fiscal year 2012 

22 $4,000,000,000 to carry out the Reemployment NOW pro23 gram under this part. 


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1 SEC. 322. DISTRIBUTION OF FUNDS. 

2 (a) IN GENERAL.—Of the funds appropriated under 

3 section 321(b) to carry out this part, the Secretary of 

4 Labor shall— 

5 (1) reserve up to 1 percent for the costs of Fed6 eral administration and for carrying out rigorous 

7 evaluations of the activities conducted under this 

8 part; and 

9 (2) allot the remainder of the funds not re10 served under paragraph (1) in accordance with the 

11 requirements of subsection (b) and (c) to States that 

12 have approved plans under section 323. 

13 (b) ALLOTMENT FORMULA.— 

14 (1) FORMULA FACTORS.—The Secretary of 

15 Labor shall allot the funds available under sub16 section (a)(2) as follows: 

17 (A) two-thirds of such funds shall be allot18 ted on the basis of the relative number of un19 employed individuals in each State, compared to 

20 the total number of unemployed individuals in 

21 all States; and 

22 (B) one-third of such funds shall be allot23 ted on the basis of the relative number of indi24 viduals in each State who have been unem25 ployed for 27 weeks or more, compared to the 


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1 total number of individuals in all States who 

2 have been unemployed for 27 weeks or more. 

3 (2) CALCULATION.—For purposes of paragraph 

4 (1), the number of unemployed individuals and the 

5 number of individuals unemployed for 27 weeks or 

6 more shall be based on the data for the most recent 

7 12-month period, as determined by the Secretary. 

8 (c) REALLOTMENT.— 

9 (1) FAILURE TO SUBMIT STATE PLAN.—If a 

10 State does not submit a State plan by the time spec11 ified in section 323(b), or a State does not receive 

12 approval of a State plan, the amount the State 

13 would have been eligible to receive pursuant to the 

14 formula under subsection (b) shall be allotted to 

15 States that receive approval of the State plan under 

16 section 323 in accordance with the relative allot17 ments of such States as determined by the Secretary 

18 under subsection (b). 

19 (2) FAILURE TO IMPLEMENT ACTIVITIES ON A

20 TIMELY BASIS.—The Secretary of Labor may, in ac21 cordance with procedures and criteria established by 

22 the Secretary, recapture the portion of the State al23 lotment under this part that remains unobligated if 

24 the Secretary determines such funds are not being 

25 obligated at a rate sufficient to meet the purposes 


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1 of this part. The Secretary shall reallot such recap2 tured funds to other States that are not subject to 

3 recapture in accordance with the relative share of 

4 the allotments of such States as determined by the 

5 Secretary under subsection (b). 

6 (3) RECAPTURE OF FUNDS.—Funds recaptured 

7 under paragraph (2) shall be available for reobliga8 tion not later than December 31, 2012. 

9 SEC. 323. STATE PLAN. 

10 (a) IN GENERAL.—For a State to be eligible to re11 ceive an allotment under section 322, a State shall submit 

12 to the Secretary of Labor a State plan in such form and 

13 containing such information as the Secretary may require, 

14 which at a minimum shall include— 

15 (1) a description of the activities to be carried 

16 out by the State to assist in the reemployment of eli17 gible individuals to be served in accordance with this 

18 part, including which of the activities authorized in 

19 sections 324–328 the State intends to carry out and 

20 an estimate of the amounts the State intends to allo21 cate to the activities, respectively; 

22 (2) a description of the performance outcomes 

23 to be achieved by the State through the activities 

24 carried out under this part, including the employ25 ment outcomes to be achieved by participants and 


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1 the processes the State will use to track perform2 ance, consistent with guidance provided by the Sec3 retary of Labor regarding such outcomes and proc4 esses; 

5 (3) a description of coordination of activities to 

6 be carried out under this part with activities under 

7 title I of the Workforce Investment Act of 1998, the 

8 Wagner-Peyser Act, and other appropriate Federal 

9 programs; 

10 (4) the timelines for implementation of the ac11 tivities described in the plan and the number of 

12 EUC claimants expected to be enrolled in such ac13 tivities by quarter; 

14 (5) assurances that the State will participate in 

15 the evaluation activities carried out by the Secretary 

16 of Labor under this section; 

17 (6) assurances that the State will provide ap18 propriate reemployment services, including coun19 seling, to any EUC claimant who participates in any 

20 of the programs authorized under this part; and 

21 (7) assurances that the State will report such 

22 information as the Secretary may require relating to 

23 fiscal, performance and other matters, including em24 ployment outcomes and effects, which the Secretary 


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1 determines are necessary to effectively monitor the 

2 activities carried out under this part. 

3 (b) PLAN SUBMISSION AND APPROVAL.—A State 

4 plan under this section shall be submitted to the Secretary 

5 of Labor for approval not later than 30 days after the 

6 Secretary issues guidance relating to submission of such 

7 plan. The Secretary shall approve such plans if the Sec8 retary determines that the plans meet the requirements 

9 of this part and are appropriate and adequate to carry 

10 out the purposes of this part. 

11 (c) PLAN MODIFICATIONS.—A State may submit 

12 modifications to a State plan that has been approved 

13 under this part, and the Secretary of Labor may approve 

14 such modifications, if the plan as modified would meet the 

15 requirements of this part and are appropriate and ade16 quate to carry out the purposes of this part. 

17 SEC. 324. BRIDGE TO WORK PROGRAM. 

18 (a) IN GENERAL.—A State may use funds allotted 

19 to the State under this part to establish and administer 

20 a Bridge to Work program described in this section. 

21 (b) DESCRIPTION OF PROGRAM.—In order to in22 crease individuals’ opportunities to move to permanent 

23 employment, a State may establish a Bridge to Work pro24 gram to provide an EUC claimant with short-term work 


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1 experience placements with an eligible employer, during 

2 which time such individual— 

3 (1) shall be paid emergency unemployment 

4 compensation payable under title IV of the Supple5 mental Appropriations Act, 2008 (Public Law 110– 

6 252; 26 U.S.C. 3304 note), as wages for work per7 formed, and as specified in subsection (c); 

8 (2) shall be paid the additional amount de9 scribed in subsection (e) as augmented wages for 

10 work performed; and 

11 (3) may be paid compensation in addition to 

12 the amounts described in paragraphs (1) and (2) by 

13 a State or by a participating employer as wages for 

14 work performed. 

15 (c) PROGRAM ELIGIBILITY AND OTHER REQUIRE16 MENTS.—For purposes of this program— 

17 (1) individuals who, except for the requirements 

18 described in paragraph (3), are eligible to receive 

19 emergency unemployment compensation payments 

20 under title IV of the Supplemental Appropriations 

21 Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 

22 note), and who choose to participate in the program 

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1 untary participation in the program described under 

2 subsection (b); 

3 (2) the wages payable to individuals described 

4 in paragraph (1) shall be paid from the emergency 

5 unemployment compensation account for such indi6 vidual as described in section 4002 of the Supple7 mental Appropriations Act, 2008 (Public Law 110– 

8 252; 26 U.S.C. 3304 note), and the amount in such 

9 individual’s account shall be reduced accordingly; 

10 (3) the wages payable to an individual described 

11 in paragraph (1) shall be payable in the same 

12 amount, at the same interval, on the same terms, 

13 and subject to the same conditions under title IV of 

14 the Supplemental Appropriations Act, 2008 (Public 

15 Law 110–252; 26 U.S.C. 3304 note), except that— 

16 (A) State requirements applied under such 

17 Act relating to availability for work and active 

18 search for work are not applicable to such indi19 viduals who participate for at least 25 hours 

20 per week in the program described in subsection 

21 (b) for the duration of such individual’s partici22 pation in the program; 

23 (B) State requirements applied under such 

24 act relating to disqualifying income regarding 

25 wages earned shall not apply to such individuals 


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1 who participate for at least 25 hours per week 

2 in the program described in subsection (b), and 

3 shall not apply with respect to— 

4 (i) the wages described under sub5 section (b); and 

6 (ii) any wages, in addition to those de7 scribed under subsection (b), whether paid 

8 by a State or a participating employer for 

9 the same work activities; 

10 (C) State prohibitions or limitations ap11 plied under such Act relating to employment 

12 status shall not apply to such individuals who 

13 participate in the program described in sub14 section (b); and 

15 (D) State requirements applied under such 

16 Act relating to an individual’s acceptance of an 

17 offer of employment shall not apply with regard 

18 to an offer of long-term employment from a 

19 participating employer made to such individual 

20 who is participating in the program described in 

21 subsection (b) in a work experience provided by 

22 such employer, where such long-term employ23 ment is expected to commence or commences at 

24 the conclusion of the duration specified in para25 graph (4)(A); 


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1 (4) the program shall be structured so that in2 dividuals described in paragraph (1) may participate 

3 in the program for up to— 

4 (A) 8 weeks, and 

5 (B) 38 hours for each such week; 

6 (5) a State shall ensure that all individuals par7 ticipating in the program are covered by a workers’ 

8 compensation insurance program; and 

9 (6) the program meets such other requirements 

10 as the Secretary of Labor determines to be appro11 priate in guidance issued by the Secretary. 

12 (d) STATE REQUIREMENTS.— 

13 (1) CERTIFICATION OF ELIGIBLE EMPLOYER.— 

14 A State may certify as eligible for participation in 

15 the program under this section any employer that 

16 meets the eligibility criteria as established in guid17 ance by the Secretary of Labor, except that an em18 ployer shall not be certified as eligible for participa19 tion in the program described under subsection 

20 (b)— 

21 (A) if such employer— 

22 (i) is a Federal, State, or local govern23 ment entity; 

24 (ii) would engage an eligible individual 

25 in work activities under any employer’s 


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1 grant, contract, or subcontract with a Fed2 eral, State, or local government entity, ex3 cept with regard to work activities under 

4 any employer’s supply contract or sub5 contract; 

6 (iii) is delinquent with respect to any 

7 taxes or employer contributions described 

8 under sections 3301 and 3303(a)(1) of the 

9 Internal Revenue Code of 1986 or with re10 spect to any related reporting require11 ments; 

12 (iv) is engaged in the business of sup13 plying workers to other employers and 

14 would participate in the program for the 

15 purpose of supplying individuals partici16 pating in the program to other employers; 

17 or 

18 (v) has previously participated in the 

19 program and the State has determined 

20 that such employer has failed to abide by 

21 any of the requirements specified in sub22 sections (h), (i), or (j), or by any other re23 quirements that the Secretary may estab24 lish for employers under subsection (c)(6); 

25 and 


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1 (B) unless such employer provides assur2 ances that it has not displaced existing workers 

3 pursuant to the requirements of subsection (h). 

4 (2) AUTHORIZED ACTIVITIES.—Funds allotted 

5 to a State under this part for the program— 

6 (A) shall be used to— 

7 (i) recruit employers for participation 

8 in the program; 

9 (ii) review and certify employers iden10 tified by eligible individuals seeking to par11 ticipate in the program; 

12 (iii) ensure that reemployment and 

13 counseling services are available for pro14 gram participants, including services de15 scribing the program under subsection (b), 

16 prior to an individual’s participation in 

17 such program; 

18 (iv) establish and implement processes 

19 to monitor the progress and performance 

20 of individual participants for the duration 

21 of the program; 

22 (v) prevent misuse of the program; 

23 and 


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1 (vi) pay augmented wages to eligible 

2 individuals, if necessary, as described in 

3 subsection (e); and 

4 (B) may be used— 

5 (i) to pay workers’ compensation in6 surance premiums to cover all individuals 

7 participating in the program, except that, 

8 if a State opts not to make such payments 

9 directly to a State administered workers’ 

10 compensation program, the State involved 

11 shall describe in the approved State plan 

12 the means by which such State shall en13 sure workers’ compensation or equivalent 

14 coverage for all individuals who participate 

15 in the program; 

16 (ii) to pay compensation to a partici17 pating individual that is in addition to the 

18 amounts described in subsections (c)(1) 

19 and (e) as wages for work performed; 

20 (iii) to provide supportive services, 

21 such as transportation, child care, and de22 pendent care, that would enable individuals 

23 to participate in the program; 

24 (iv) for the administration and over25 sight of the program; and 


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1 (v) to fulfill additional program re2 quirements included in the approved State 

3 plan. 

4 (e) PAYMENT OF AUGMENTED WAGES IF NEC5 ESSARY.—In the event that the wages described in sub6 section (c)(1) are not sufficient to equal or exceed the min7 imum wages that are required to be paid by an employer 

8 under section 6(a)(1) of the Fair Labor Standards Act 

9 of 1938 (29 U.S.C. 206(a)(1)) or the applicable State or 

10 local minimum wage law, whichever is higher, a State shall 

11 pay augmented wages to a program participant in any 

12 amount necessary to cover the difference between— 

13 (1) such minimum wages amount; and 

14 (2) the wages payable under subsection (c)(1). 

15 (f) EFFECT OF WAGES ON ELIGIBILITY FOR OTHER

16 PROGRAMS.—None of the wages paid under this section 

17 shall be considered as income for the purposes of deter18 mining eligibility for and the amount of income transfer 

19 and in-kind aid furnished under any Federal or federally 

20 assisted program based on need. 

21 (g) EFFECT OF WAGES, WORK ACTIVITIES, AND

22 PROGRAM PARTICIPATION ON CONTINUING ELIGIBILITY

23 FOR EMERGENCY UNEMPLOYMENT COMPENSATION.— 

24 Any wages paid under this section and any additional 

25 wages paid by an employer to an individual described in 


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1 subsection (c)(1), and any work activities performed by 

2 such individual as a participant in the program, shall not 

3 be construed so as to render such individual ineligible to 

4 receive emergency unemployment compensation under title 

5 IV of the Supplemental Appropriations Act, 2008 (Public 

6 Law 110–252; 26 U.S.C. 3304 note). 

7 (h) NONDISPLACEMENT OF EMPLOYEES.— 

8 (1) PROHIBITION.—An employer shall not use a 

9 program participant to displace (including a partial 

10 displacement, such as a reduction in the hours of 

11 non-overtime work, wages, or employment benefits) 

12 any current employee (as of the date of the partici13 pation). 

14 (2) OTHER PROHIBITIONS.—An employer shall 

15 not permit a program participant to perform work 

16 activities related to any job for which— 

17 (A) any other individual is on layoff from 

18 the same or any substantially equivalent posi19 tion; 

20 (B) the employer has terminated the em21 ployment of any employee or otherwise reduced 

22 the workforce of the employer with the inten23 tion of filling or partially filling the vacancy so 

24 created with the work activities to be performed 

25 by a program participant; 


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1 (C) there is a strike or lock out at the 

2 worksite that is the participant’s place of em3 ployment; or 

4 (D) the job is created in a manner that 

5 will infringe in any way upon the promotional 

6 opportunities of currently employed individuals 

7 (as of the date of the participation). 

8 (i) PROHIBITION ON IMPAIRMENT OF CONTRACTS.— 

9 An employer shall not, by means of assigning work activi10 ties under this section, impair an existing contract for 

11 services or a collective bargaining agreement, and no such 

12 activity that would be inconsistent with the terms of a col13 lective bargaining agreement shall be undertaken without 

14 the written concurrence of the labor organization that is 

15 signatory to the collective bargaining agreement. 

16 (j) LIMITATION ON EMPLOYER PARTICIPATION.—If, 

17 after 24 weeks of participation in the program, an em18 ployer has not made an offer of suitable long-term employ19 ment to any individual described under subsection (c)(1) 

20 who was placed with such employer and has completed the 

21 program, a State shall bar such employer from further 

22 participation in the program. States may impose addi23 tional conditions on participating employers to ensure that 

24 an appropriate number of participants receive offers of 

25 suitable long term employment. 


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1 (k) FAILURE TO MEET PROGRAM REQUIREMENTS.— 

2 If a State makes a determination based on information 

3 provided to the State, or acquired by the State by means 

4 of its administration and oversight functions, that a par5 ticipating employer under this section has violated a re6 quirement of this section, the State shall bar such em7 ployer from further participation in the program. The 

8 State shall establish a process whereby an individual de9 scribed in subsection (c)(1), or any other affected indi10 vidual or entity, may file a complaint with the State relat11 ing to a violation of any requirement or prohibition under 

12 this section. 

13 (l) PARTICIPANT OPTION TO TERMINATE PARTICIPA14 TION IN BRIDGE TO WORK PROGRAM.— 

15 (1) TERMINATION.—An individual who is par16 ticipating in a program described in subsection (b) 

17 may opt to discontinue participation in such pro18 gram. 

19 (2) CONTINUED ELIGIBILITY FOR EMERGENCY

20 UNEMPLOYMENT COMPENSATION.—An individual 

21 who opts to discontinue participation in such pro22 gram, is terminated from such program by a partici23 pating employer, or who has completed participation 

24 in such program, and who continues to meet the eli25 gibility requirements for emergency unemployment 


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1 compensation under title IV of the Supplemental 

2 Appropriations Act, 2008 (Public Law 110–252; 26 

3 U.S.C. 3304 note), shall receive emergency unem4 ployment compensation payments with respect to 

5 subsequent weeks of unemployment, to the extent 

6 that amounts remain in the account established for 

7 such individual under section 4002(b) of such Act or 

8 to the extent that such individual commences receiv9 ing the amounts described in subsections (c), (d), or 

10 (e) of such section, respectively. 

11 (m) EFFECT OF OTHER LAWS.—Unless otherwise 

12 provided in this section, nothing in this section shall be 

13 construed to alter or affect the rights or obligations under 

14 any Federal, State, or local laws with respect to any indi15 vidual described in subsection (c)(1) and with respect to 

16 any participating employer under this section. 

17 (n) TREATMENT OF PAYMENTS.—All wages or other 

18 payments to an individual under this section shall be treat19 ed as payments of unemployment insurance for purposes 

20 of section 209 of the Social Security Act (42 U.S.C. 409) 

21 and for purposes of subtitle A and sections 3101 and 3111 

22 of the Internal Revenue Code of 1986. 


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1 SEC. 325. WAGE INSURANCE. 

2 (a) IN GENERAL.—A State may use the funds allot3 ted to the State under this part to provide a wage insur4 ance program for EUC claimants. 

5 (b) BENEFITS.—The wage insurance program pro6 vided under this section may use funds allotted to the 

7 State under this part to pay, for a period not to exceed 

8 2 years, to a worker described in subsection (c), up to 50 

9 percent of the difference between— 

10 (1) the wages received by the worker at the 

11 time of separation; and 

12 (2) the wages received by the worker for reem13 ployment. 

14 (c) INDIVIDUAL ELIGIBILITY.—The benefits de15 scribed in subsection (b) may be paid to an individual who 

16 is an EUC claimant at the time such individual obtains 

17 reemployment and who— 

18 (1) is at least 50 years of age; 

19 (2) earns not more than $50,000 per year in 

20 wages from reemployment; 

21 (3) is employed on a full-time basis as defined 

22 by the law of the State; and 

23 (4) is not employed by the employer from which 

24 the individual was last separated. 

25 (d) TOTAL AMOUNT OF PAYMENTS.—A State shall 

26 establish a maximum amount of payments per individual 


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1 for purposes of payments described in subsection (b) dur2 ing the eligibility period described in such subsection. 

3 (e) NON-DISCRIMINATION REGARDING WAGES.—An 

4 employer shall not pay a worker described in subsection 

5 (c) less than such employer pays to a regular worker in 

6 the same or substantially equivalent position. 

7 SEC. 326. ENHANCED REEMPLOYMENT STRATEGIES. 

8 (a) IN GENERAL.—A State may use funds allotted 

9 under this part to provide a program of enhanced reem10 ployment services to EUC claimants. In addition to the 

11 provision of services to such claimants, the program may 

12 include the provision of reemployment services to individ13 uals who are unemployed and have exhausted their rights 

14 to emergency unemployment compensation under title IV 

15 of the Supplemental Appropriations Act, 2008, (Public 

16 Law 110–252; 26 U.S.C. 3304 note). The program shall 

17 provide reemployment services that are more intensive 

18 than the reemployment services provided by the State 

19 prior to the receipt of the allotment under this part. 

20 (b) TYPES OF SERVICES.—The enhanced reemploy21 ment services described in subsection (a) may include serv22 ices such as— 

23 (1) assessments, counseling, and other intensive 

24 services that are provided by staff on a one-to-one 

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1 ment needs of EUC claimants and individuals de2 scribed in subsection (a); 

3 (2) comprehensive assessments designed to 

4 identify alternative career paths; 

5 (3) case management; 

6 (4) reemployment services that are provided 

7 more frequently and more intensively than such re8 employment services have previously been provided 

9 by the State; and 

10 (5) services that are designed to enhance com11 munication skills, interviewing skills, and other skills 

12 that would assist in obtaining reemployment. 

13 SEC. 327. SELF-EMPLOYMENT PROGRAMS. 

14 A State may use funds allotted to the State under 

15 this part, in an amount specified under an approved State 

16 plan, for the administrative costs associated with starting 

17 up the self-employment assistance program described in 

18 section 4001(i) of the Supplemental Appropriations Act, 

19 2008, (Public Law 110–252; 26 U.S.C. 3304 note). 

20 SEC. 328. ADDITIONAL INNOVATIVE PROGRAMS. 

21 (a) IN GENERAL.—A State may use funds allotted 

22 under this part to provide a program for innovative activi23 ties, which use a strategy that is different from the reem24 ployment strategies described in sections 324–327 and 

25 which are designed to facilitate the reemployment of EUC 


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1 claimants. In addition to the provision of activities to such 

2 claimants, the program may include the provision of activi3 ties to individuals who are unemployed and have exhausted 

4 their rights to emergency unemployment compensation 

5 under title IV of the Supplemental Appropriations Act, 

6 2008, (Public Law 110–252; 26 U.S.C. 3304 note). 

7 (b) CONDITIONS.—The innovative activities approved 

8 in accordance with subsection (a)— 

9 (1) shall directly benefit EUC claimants and, if 

10 applicable, individuals described in subsection (a), ei11 ther as a benefit paid to such claimant or individual 

12 or as a service provided to such claimant or indi13 vidual; 

14 (2) shall not result in a reduction in the dura15 tion or amount of, emergency unemployment com16 pensation for which EUC claimants would otherwise 

17 be eligible; 

18 (3) shall not include a reduction in the dura19 tion, amount of or eligibility for regular compensa20 tion or extended benefits; 

21 (4) shall not be used to displace (including a 

22 partial displacement, such as a reduction in the 

23 hours of non-overtime work, wages, or employment 

24 benefits) any currently employed employee (as of the 

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1 pant to perform work activities related to any job for 

2 which— 

3 (A) any other individual is on layoff from 

4 the same or any substantially equivalent job; 

5 (B) the employer has terminated the em6 ployment of any regular employee or otherwise 

7 reduced the workforce of the employer with the 

8 intention of filling or partially filling the va9 cancy so created with the work activities to be 

10 performed by a program participant; 

11 (C) there is a strike or lock out at the 

12 worksite that is the participant’s place of em13 ployment; or 

14 (D) the job is created in a manner that 

15 will infringe in any way upon the promotional 

16 opportunities of currently employed individuals 

17 (as of the date of the participation); 

18 (5) shall not be in violation of any Federal, 

19 State, or local law. 

20 SEC. 329. GUIDANCE AND ADDITIONAL REQUIREMENTS. 

21 The Secretary of Labor may establish through guid22 ance, without regard to the requirements of section 553 

23 of title 5, United States Code, such additional require24 ments, including requirements regarding the allotment, re25 capture, and reallotment of funds, and reporting requireVerDate Mar 15 2010 01:31 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00276 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 ments, as the Secretary determines to be necessary to en2 sure fiscal integrity, effective monitoring, and appropriate 

3 and prompt implementation of the activities under this 

4 Act. 

5 SEC. 330. REPORT OF INFORMATION AND EVALUATIONS TO 

6 CONGRESS AND THE PUBLIC. 

7 The Secretary of Labor shall provide to the appro8 priate Committees of the Congress and make available to 

9 the public the information reported pursuant to section 

10 329 and the evaluations of activities carried out pursuant 

11 to the funds reserved under section 322(a)(1). 

12 SEC. 331. STATE. 

13 For purposes of this part, the term ‘‘State’’ has the 

14 meaning given that term in section 205 of the Federal15 State Extended Unemployment Compensation Act of 1970 

16 (26 U.S.C. 3304 note). 

17 PART III—SHORT-TIME COMPENSATION 

18 PROGRAM 

19 SEC. 341. TREATMENT OF SHORT-TIME COMPENSATION 

20 PROGRAMS. 

21 (a) DEFINITION.— 

22 (1) IN GENERAL.—Section 3306 of the Internal 

23 Revenue Code of 1986 (26 U.S.C. 3306) is amended 

24 by adding at the end the following new subsection: 


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1 ‘‘(v) SHORT-TIME COMPENSATION PROGRAM.—For 

2 purposes of this chapter, the term ‘short-time compensa3 tion program’ means a program under which— 

4 ‘‘(1) the participation of an employer is vol5 untary; 

6 ‘‘(2) an employer reduces the number of hours 

7 worked by employees in lieu of layoffs; 

8 ‘‘(3) such employees whose workweeks have 

9 been reduced by at least 10 percent, and by not 

10 more than the percentage, if any, that is determined 

11 by the State to be appropriate (but in no case more 

12 than 60 percent), are eligible for unemployment 

13 compensation; 

14 ‘‘(4) the amount of unemployment compensa15 tion payable to any such employee is a pro rata por16 tion of the unemployment compensation which would 

17 otherwise be payable to the employee if such em18 ployee were totally unemployed from the partici19 pating employer; 

20 ‘‘(5) such employees meet the availability for 

21 work and work search test requirements while col22 lecting short-time compensation benefits, by being 

23 available for their workweek as required by their 

24 participation in the short-time compensation pro25 gram; 


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1 ‘‘(6) eligible employees may participate, as ap2 propriate, in training (including employer-sponsored 

3 training or worker training funded under the Work4 force Investment Act of 1998) to enhance job skills 

5 if such program has been approved by the State 

6 agency; 

7 ‘‘(7) the State agency shall require employers to 

8 certify that if the employer provides health benefits 

9 and retirement benefits under a defined benefit plan 

10 (as defined in section 414(j)) or contributions under 

11 a defined contribution plan (as defined in section 

12 414(i)) to any employee whose workweek is reduced 

13 under the program that such benefits will continue 

14 to be provided to employees participating in the 

15 short-time compensation program under the same 

16 terms and conditions as though the workweek of 

17 such employee had not been reduced or to the same 

18 extent as other employees not participating in the 

19 short-time compensation program, subject to other 

20 requirements in this section; 

21 ‘‘(8) the State agency shall require an employer 

22 to submit a written plan describing the manner in 

23 which the requirements of this subsection will be im24 plemented (including a plan for giving advance no25 tice, where feasible, to an employee whose workweek 


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1 is to be reduced) together with an estimate of the 

2 number of layoffs that would have occurred absent 

3 the ability to participate in short-time compensation 

4 and such other information as the Secretary of 

5 Labor determines is appropriate; 

6 ‘‘(9) in the case of employees represented by a 

7 union as the sole and exclusive representative, the 

8 appropriate official of the union has agreed to the 

9 terms of the employer’s written plan and implemen10 tation is consistent with employer obligations under 

11 the applicable Federal laws; and 

12 ‘‘(10) upon request by the State and approval 

13 by the Secretary of Labor, only such other provi14 sions are included in the State law that are deter15 mined to be appropriate for purposes of a short-time 

16 compensation program.’’. 

17 (2) EFFECTIVE DATE.—Subject to paragraph 

18 (3), the amendment made by paragraph (1) shall 

19 take effect on the date of the enactment of this Act. 

20 (3) TRANSITION PERIOD FOR EXISTING PRO21 GRAMS.—In the case of a State that is administering 

22 a short-time compensation program as of the date of 

23 the enactment of this Act and the State law cannot 

24 be administered consistent with the amendment 


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1 made by paragraph (1), such amendment shall take 

2 effect on the earlier of— 

3 (A) the date the State changes its State 

4 law in order to be consistent with such amend5 ment; or 

6 (B) the date that is 2 years and 6 months 

7 after the date of the enactment of this Act. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) INTERNAL REVENUE CODE OF 1986.— 

10 (A) Subparagraph (E) of section 

11 3304(a)(4) of the Internal Revenue Code of 

12 1986 is amended to read as follows: 

13 ‘‘(E) amounts may be withdrawn for the 

14 payment of short-time compensation under a 

15 short-time compensation program (as defined 

16 under section 3306(v));’’. 

17 (B) Subsection (f) of section 3306 of the 

18 Internal Revenue Code of 1986 is amended— 

19 (i) by striking paragraph (5) (relating 

20 to short-time compensation) and inserting 

21 the following new paragraph: 

22 ‘‘(5) amounts may be withdrawn for the pay23 ment of short-time compensation under a short-time 

24 compensation program (as defined in subsection (v)); 

25 and’’; and 


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1 (ii) by redesignating paragraph (5) 

2 (relating to self-employment assistance 

3 program) as paragraph (6). 

4 (2) SOCIAL SECURITY ACT.—Section 303(a)(5) 

5 of the Social Security Act is amended by striking 

6 ‘‘the payment of short-time compensation under a 

7 plan approved by the Secretary of Labor’’ and in8 serting ‘‘the payment of short-time compensation 

9 under a short-time compensation program (as de10 fined in section 3306(v) of the Internal Revenue 

11 Code of 1986)’’. 

12 (3) UNEMPLOYMENT COMPENSATION AMEND13 MENTS OF 1992.—Subsections (b) through (d) of sec14 tion 401 of the Unemployment Compensation 

15 Amendments of 1992 (26 U.S.C. 3304 note) are re16 pealed. 

17 SEC. 342. TEMPORARY FINANCING OF SHORT-TIME COM18 PENSATION PAYMENTS IN STATES WITH PRO19 GRAMS IN LAW. 

20 (a) PAYMENTS TO STATES.— 

21 (1) IN GENERAL.—Subject to paragraph (3), 

22 there shall be paid to a State an amount equal to 

23 100 percent of the amount of short-time compensa24 tion paid under a short-time compensation program 

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1 enue Code of 1986, as added by section 341(a)) 

2 under the provisions of the State law. 

3 (2) TERMS OF PAYMENTS.—Payments made to 

4 a State under paragraph (1) shall be payable by way 

5 of reimbursement in such amounts as the Secretary 

6 estimates the State will be entitled to receive under 

7 this section for each calendar month, reduced or in8 creased, as the case may be, by any amount by 

9 which the Secretary finds that the Secretary’s esti10 mates for any prior calendar month were greater or 

11 less than the amounts which should have been paid 

12 to the State. Such estimates may be made on the 

13 basis of such statistical, sampling, or other method 

14 as may be agreed upon by the Secretary and the 

15 State agency of the State involved. 

16 (3) LIMITATIONS ON PAYMENTS.— 

17 (A) GENERAL PAYMENT LIMITATIONS.— 

18 No payments shall be made to a State under 

19 this section for short-time compensation paid to 

20 an individual by the State during a benefit year 

21 in excess of 26 times the amount of regular 

22 compensation (including dependents’ allow23 ances) under the State law payable to such in24 dividual for a week of total unemployment. 


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1 (B) EMPLOYER LIMITATIONS.—No pay2 ments shall be made to a State under this sec3 tion for benefits paid to an individual by the 

4 State under a short-time compensation program 

5 if such individual is employed by the partici6 pating employer on a seasonal, temporary, or 

7 intermittent basis. 

8 (b) APPLICABILITY.— 

9 (1) IN GENERAL.—Payments to a State under 

10 subsection (a) shall be available for weeks of unem11 ployment— 

12 (A) beginning on or after the date of the 

13 enactment of this Act; and 

14 (B) ending on or before the date that is 3 

15 years and 6 months after the date of the enact16 ment of this Act. 

17 (2) THREE-YEAR FUNDING LIMITATION FOR

18 COMBINED PAYMENTS UNDER THIS SECTION AND

19 SECTION 343.—States may receive payments under 

20 this section and section 343 with respect to a total 

21 of not more than 156 weeks. 

22 (c) TWO-YEAR TRANSITION PERIOD FOR EXISTING

23 PROGRAMS.—During any period that the transition provi24 sion under section 341(a)(3) is applicable to a State with 

25 respect to a short-time compensation program, such State 


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1 shall be eligible for payments under this section. Subject 

2 to paragraphs (1)(B) and (2) of subsection (b), if at any 

3 point after the date of the enactment of this Act the State 

4 enacts a State law providing for the payment of short5 time compensation under a short-time compensation pro6 gram that meets the definition of such a program under 

7 section 3306(v) of the Internal Revenue Code of 1986, as 

8 added by section 341(a), the State shall be eligible for pay9 ments under this section after the effective date of such 

10 enactment. 

11 (d) FUNDING AND CERTIFICATIONS.— 

12 (1) FUNDING.—There are appropriated, out of 

13 moneys in the Treasury not otherwise appropriated, 

14 such sums as may be necessary for purposes of car15 rying out this section. 

16 (2) CERTIFICATIONS.—The Secretary shall 

17 from time to time certify to the Secretary of the 

18 Treasury for payment to each State the sums pay19 able to such State under this section. 

20 (e) DEFINITIONS.—In this section: 

21 (1) SECRETARY.—The term ‘‘Secretary’’ means 

22 the Secretary of Labor. 

23 (2) STATE; STATE AGENCY; STATE LAW.—The 

24 terms ‘‘State’’, ‘‘State agency’’, and ‘‘State law’’ 

25 have the meanings given those terms in section 205 


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1 of the Federal-State Extended Unemployment Com2 pensation Act of 1970 (26 U.S.C. 3304 note). 

3 SEC. 343. TEMPORARY FINANCING OF SHORT-TIME COM4 PENSATION AGREEMENTS. 

5 (a) FEDERAL-STATE AGREEMENTS.— 

6 (1) IN GENERAL.—Any State which desires to 

7 do so may enter into, and participate in, an agree8 ment under this section with the Secretary provided 

9 that such State’s law does not provide for the pay10 ment of short-time compensation under a short-time 

11 compensation program (as defined in section 

12 3306(v) of the Internal Revenue Code of 1986, as 

13 added by section 341(a)). 

14 (2) ABILITY TO TERMINATE.—Any State which 

15 is a party to an agreement under this section may, 

16 upon providing 30 days’ written notice to the Sec17 retary, terminate such agreement. 

18 (b) PROVISIONS OF FEDERAL-STATE AGREEMENT.— 

19 (1) IN GENERAL.—Any agreement under this 

20 section shall provide that the State agency of the 

21 State will make payments of short-time compensa22 tion under a plan approved by the State. Such plan 

23 shall provide that payments are made in accordance 

24 with the requirements under section 3306(v) of the 


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1 Internal Revenue Code of 1986, as added by section 

2 341(a). 

3 (2) LIMITATIONS ON PLANS.— 

4 (A) GENERAL PAYMENT LIMITATIONS.—A 

5 short-time compensation plan approved by a 

6 State shall not permit the payment of short7 time compensation to an individual by the State 

8 during a benefit year in excess of 26 times the 

9 amount of regular compensation (including de10 pendents’ allowances) under the State law pay11 able to such individual for a week of total un12 employment. 

13 (B) EMPLOYER LIMITATIONS.—A short14 time compensation plan approved by a State 

15 shall not provide payments to an individual if 

16 such individual is employed by the participating 

17 employer on a seasonal, temporary, or intermit18 tent basis. 

19 (3) EMPLOYER PAYMENT OF COSTS.—Any 

20 short-time compensation plan entered into by an em21 ployer must provide that the employer will pay the 

22 State an amount equal to one-half of the amount of 

23 short-time compensation paid under such plan. Such 

24 amount shall be deposited in the State’s unemploy25 ment fund and shall not be used for purposes of calVerDate Mar 15 2010 01:31 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00287 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 culating an employer’s contribution rate under sec2 tion 3303(a)(1) of the Internal Revenue Code of 

3 1986. 

4 (c) PAYMENTS TO STATES.— 

5 (1) IN GENERAL.—There shall be paid to each 

6 State with an agreement under this section an 

7 amount equal to— 

8 (A) one-half of the amount of short-time 

9 compensation paid to individuals by the State 

10 pursuant to such agreement; and 

11 (B) any additional administrative expenses 

12 incurred by the State by reason of such agree13 ment (as determined by the Secretary). 

14 (2) TERMS OF PAYMENTS.—Payments made to 

15 a State under paragraph (1) shall be payable by way 

16 of reimbursement in such amounts as the Secretary 

17 estimates the State will be entitled to receive under 

18 this section for each calendar month, reduced or in19 creased, as the case may be, by any amount by 

20 which the Secretary finds that the Secretary’s esti21 mates for any prior calendar month were greater or 

22 less than the amounts which should have been paid 

23 to the State. Such estimates may be made on the 

24 basis of such statistical, sampling, or other method 


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1 as may be agreed upon by the Secretary and the 

2 State agency of the State involved. 

3 (3) FUNDING.—There are appropriated, out of 

4 moneys in the Treasury not otherwise appropriated, 

5 such sums as may be necessary for purposes of car6 rying out this section. 

7 (4) CERTIFICATIONS.—The Secretary shall 

8 from time to time certify to the Secretary of the 

9 Treasury for payment to each State the sums pay10 able to such State under this section. 

11 (d) APPLICABILITY.— 

12 (1) IN GENERAL.—An agreement entered into 

13 under this section shall apply to weeks of unemploy14 ment— 

15 (A) beginning on or after the date on 

16 which such agreement is entered into; and 

17 (B) ending on or before the date that is 2 

18 years and 13 weeks after the date of the enact19 ment of this Act. 

20 (2) TWO-YEAR FUNDING LIMITATION.—States 

21 may receive payments under this section with re22 spect to a total of not more than 104 weeks. 

23 (e) SPECIAL RULE.—If a State has entered into an 

24 agreement under this section and subsequently enacts a 

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1 pensation under a short-time compensation program that 

2 meets the definition of such a program under section 

3 3306(v) of the Internal Revenue Code of 1986, as added 

4 by section 341(a), the State— 

5 (1) shall not be eligible for payments under this 

6 section for weeks of unemployment beginning after 

7 the effective date of such State law; and 

8 (2) subject to paragraphs (1)(B) and (2) of sec9 tion 342(b), shall be eligible to receive payments 

10 under section 342 after the effective date of such 

11 State law. 

12 (f) DEFINITIONS.—In this section: 

13 (1) SECRETARY.—The term ‘‘Secretary’’ means 

14 the Secretary of Labor. 

15 (2) STATE; STATE AGENCY; STATE LAW.—The 

16 terms ‘‘State’’, ‘‘State agency’’, and ‘‘State law’’ 

17 have the meanings given those terms in section 205 

18 of the Federal-State Extended Unemployment Com19 pensation Act of 1970 (26 U.S.C. 3304 note). 

20 SEC. 344. GRANTS FOR SHORT-TIME COMPENSATION PRO21 GRAMS. 

22 (a) GRANTS.— 

23 (1) FOR IMPLEMENTATION OR IMPROVED AD24 MINISTRATION.—The Secretary shall award grants 

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1 grams (as defined in subsection (i)(2)) for the pur2 pose of implementation or improved administration 

3 of such programs. 

4 (2) FOR PROMOTION AND ENROLLMENT.—The 

5 Secretary shall award grants to States that are eligi6 ble and submit plans for a grant under paragraph 

7 (1) for such States to promote and enroll employers 

8 in short-time compensation programs (as so de9 fined). 

10 (3) ELIGIBILITY.— 

11 (A) IN GENERAL.—The Secretary shall de12 termine eligibility criteria for the grants under 

13 paragraphs (1) and (2). 

14 (B) CLARIFICATION.—A State admin15 istering a short-time compensation program, in16 cluding a program being administered by a 

17 State that is participating in the transition 

18 under the provisions of sections 341(a)(3) and 

19 342(c), that does not meet the definition of a 

20 short-time compensation program under section 

21 3306(v) of the Internal Revenue Code of 1986 

22 (as added by 341(a)), and a State with an 

23 agreement under section 343, shall not be eligi24 ble to receive a grant under this section until 

25 such time as the State law of the State provides 


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1 for payments under a short-time compensation 

2 program that meets such definition and such 

3 law. 

4 (b) AMOUNT OF GRANTS.— 

5 (1) IN GENERAL.—The maximum amount avail6 able for making grants to a State under paragraphs 

7 (1) and (2) shall be equal to the amount obtained 

8 by multiplying $700,000,000 (less the amount used 

9 by the Secretary under subsection (e)) by the same 

10 ratio as would apply under subsection (a)(2)(B) of 

11 section 903 of the Social Security Act (42 U.S.C. 

12 1103) for purposes of determining such State’s 

13 share of any excess amount (as described in sub14 section (a)(1) of such section) that would have been 

15 subject to transfer to State accounts, as of October 

16 1, 2010, under the provisions of subsection (a) of 

17 such section. 

18 (2) AMOUNT AVAILABLE FOR DIFFERENT

19 GRANTS.—Of the maximum incentive payment deter20 mined under paragraph (1) with respect to a 

21 State— 

22 (A) one-third shall be available for a grant 

23 under subsection (a)(1); and 

24 (B) two-thirds shall be available for a 

25 grant under subsection (a)(2). 


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1 (c) GRANT APPLICATION AND DISBURSAL.— 

2 (1) APPLICATION.—Any State seeking a grant 

3 under paragraph (1) or (2) of subsection (a) shall 

4 submit an application to the Secretary at such time, 

5 in such manner, and complete with such information 

6 as the Secretary may require. In no case may the 

7 Secretary award a grant under this section with re8 spect to an application that is submitted after De9 cember 31, 2014. 

10 (2) NOTICE.—The Secretary shall, within 30 

11 days after receiving a complete application, notify 

12 the State agency of the State of the Secretary’s find13 ings with respect to the requirements for a grant 

14 under paragraph (1) or (2) (or both) of subsection 

15 (a). 

16 (3) CERTIFICATION.—If the Secretary finds 

17 that the State law provisions meet the requirements 

18 for a grant under subsection (a), the Secretary shall 

19 thereupon make a certification to that effect to the 

20 Secretary of the Treasury, together with a certifi21 cation as to the amount of the grant payment to be 

22 transferred to the State account in the Unemploy23 ment Trust Fund (as established in section 904(a) 

24 of the Social Security Act (42 U.S.C. 1104(a))) pur25 suant to that finding. The Secretary of the Treasury 


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1 shall make the appropriate transfer to the State ac2 count within 7 days after receiving such certifi3 cation. 

4 (4) REQUIREMENT.—No certification of compli5 ance with the requirements for a grant under para6 graph (1) or (2) of subsection (a) may be made with 

7 respect to any State whose— 

8 (A) State law is not otherwise eligible for 

9 certification under section 303 of the Social Se10 curity Act (42 U.S.C. 503) or approvable under 

11 section 3304 of the Internal Revenue Code of 

12 1986; or 

13 (B) short-time compensation program is 

14 subject to discontinuation or is not scheduled to 

15 take effect within 12 months of the certifi16 cation. 

17 (d) USE OF FUNDS.—The amount of any grant 

18 awarded under this section shall be used for the implemen19 tation of short-time compensation programs and the over20 all administration of such programs and the promotion 

21 and enrollment efforts associated with such programs, 

22 such as through— 

23 (1) the creation or support of rapid response 

24 teams to advise employers about alternatives to lay25 offs; 


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1 (2) the provision of education or assistance to 

2 employers to enable them to assess the feasibility of 

3 participating in short-time compensation programs; 

4 and 

5 (3) the development or enhancement of systems 

6 to automate— 

7 (A) the submission and approval of plans; 

8 and 

9 (B) the filing and approval of new and on10 going short-time compensation claims. 

11 (e) ADMINISTRATION.—The Secretary is authorized 

12 to use 0.25 percent of the funds available under subsection 

13 (g) to provide for outreach and to share best practices with 

14 respect to this section and short-time compensation pro15 grams. 

16 (f) RECOUPMENT.—The Secretary shall establish a 

17 process under which the Secretary shall recoup the 

18 amount of any grant awarded under paragraph (1) or (2) 

19 of subsection (a) if the Secretary determines that, during 

20 the 5-year period beginning on the first date that any such 

21 grant is awarded to the State, the State— 

22 (1) terminated the State’s short-time compensa23 tion program; or 


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1 (2) failed to meet appropriate requirements 

2 with respect to such program (as established by the 

3 Secretary). 

4 (g) FUNDING.—There are appropriated, out of mon5 eys in the Treasury not otherwise appropriated, to the 

6 Secretary, $700,000,000 to carry out this section, to re7 main available without fiscal year limitation. 

8 (h) REPORTING.—The Secretary may establish re9 porting requirements for States receiving a grant under 

10 this section in order to provide oversight of grant funds. 

11 (i) DEFINITIONS.—In this section: 

12 (1) SECRETARY.—The term ‘‘Secretary’’ means 

13 the Secretary of Labor. 

14 (2) SHORT-TIME COMPENSATION PROGRAM.— 

15 The term ‘‘short-time compensation program’’ has 

16 the meaning given such term in section 3306(v) of 

17 the Internal Revenue Code of 1986, as added by sec18 tion 341(a). 

19 (3) STATE; STATE AGENCY; STATE LAW.—The 

20 terms ‘‘State’’, ‘‘State agency’’, and ‘‘State law’’ 

21 have the meanings given those terms in section 205 

22 of the Federal-State Extended Unemployment Com23 pensation Act of 1970 (26 U.S.C. 3304 note). 


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1 SEC. 345. ASSISTANCE AND GUIDANCE IN IMPLEMENTING 

2 PROGRAMS. 

3 (a) IN GENERAL.—In order to assist States in estab4 lishing, qualifying, and implementing short-time com5 pensation programs (as defined in section 3306(v) of the 

6 Internal Revenue Code of 1986, as added by section 

7 341(a)), the Secretary of Labor (in this section referred 

8 to as the ‘‘Secretary’’) shall— 

9 (1) develop model legislative language which 

10 may be used by States in developing and enacting 

11 such programs and periodically review and revise 

12 such model legislative language; 

13 (2) provide technical assistance and guidance in 

14 developing, enacting, and implementing such pro15 grams; 

16 (3) establish reporting requirements for States, 

17 including reporting on— 

18 (A) the number of estimated averted lay19 offs; 

20 (B) the number of participating employers 

21 and workers; and 

22 (C) such other items as the Secretary of 

23 Labor determines are appropriate. 

24 (b) MODEL LANGUAGE AND GUIDANCE.—The model 

25 language and guidance developed under subsection (a) 

26 shall allow sufficient flexibility by States and participating 


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1 employers while ensuring accountability and program in2 tegrity. 

3 (c) CONSULTATION.—In developing the model legisla4 tive language and guidance under subsection (a), and in 

5 order to meet the requirements of subsection (b), the Sec6 retary shall consult with employers, labor organizations, 

7 State workforce agencies, and other program experts. 

8 SEC. 346. REPORTS. 

9 (a) REPORT.— 

10 (1) IN GENERAL.—Not later than 4 years after 

11 the date of the enactment of this Act, the Secretary 

12 of Labor shall submit to Congress and to the Presi13 dent a report or reports on the implementation of 

14 the provisions of this Act. 

15 (2) REQUIREMENTS.—Any report under para16 graph (1) shall at a minimum include the following: 

17 (A) A description of best practices by 

18 States and employers in the administration, 

19 promotion, and use of short-time compensation 

20 programs (as defined in section 3306(v) of the 

21 Internal Revenue Code of 1986, as added by 

22 section 341(a)). 

23 (B) An analysis of the significant chal24 lenges to State enactment and implementation 

25 of short-time compensation programs. 


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1 (C) A survey of employers in States that 

2 have not enacted a short-time compensation 

3 program or entered into an agreement with the 

4 Secretary on a short-time compensation plan to 

5 determine the level of interest among such em6 ployers in participating in short-time compensa7 tion programs. 

8 (b) FUNDING.—There are appropriated, out of any 

9 moneys in the Treasury not otherwise appropriated, to the 

10 Secretary of Labor, $1,500,000 to carry out this section, 

11 to remain available without fiscal year limitation. 

12 Subtitle B—Long Term 

13 Unemployed Hiring Preferences 

14 SEC. 351. LONG TERM UNEMPLOYED WORKERS WORK OP15 PORTUNITY TAX CREDITS. 

16 (a) IN GENERAL.—Paragraph (3) of section 51(b) of 

17 the Internal Revenue Code is amended by inserting 

18 ‘‘$10,000 per year in the case of any individual who is 

19 a qualified long term unemployed individual by reason of 

20 subsection (d)(11), and’’ before ‘‘$12,000 per year’’. 

21 (b) LONG TERM UNEMPLOYED INDIVIDUALS TAX

22 CREDITS.—Paragraph (d) of section 51 of the Internal 

23 Revenue Code is amended by— 

24 (1) inserting ‘‘(J) qualified long term unem25 ployed individual’’ at the end of paragraph (d)(1); 


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1 (2) inserting a new paragraph after paragraph 

2 (10) as follows— 

3 ‘‘(11) QUALIFIED LONG TERM UNEMPLOYED

4 INDIVIDUAL.— 

5 ‘‘(A) IN GENERAL.—The term ‘qualified 

6 long term unemployed individual’ means any in7 dividual who was not a student for at least 6 

8 months during the 1-year period ending on the 

9 hiring date and is certified by the designated 

10 local agency as having aggregate periods of un11 employment during the 1-year period ending on 

12 the hiring date which equal or exceed 6 months. 

13 ‘‘(B) STUDENT.—For purposes of this sub14 section, a student is an individual enrolled at 

15 least half-time in a program that leads to a de16 gree, certificate, or other recognized educational 

17 credential for at least 6 months whether or not 

18 consecutive during the 1-year period ending on 

19 the hiring date.’’; and 

20 (3) renumbering current paragraphs (11) 

21 through (14) as paragraphs (12) through (15). 

22 (c) SIMPLIFIED CERTIFICATION.—Section 51(d) of 

23 the Internal Revenue Code is amended by adding a new 

24 paragraph 16 as follows: 


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1 ‘‘(16) CREDIT ALLOWED FOR QUALIFIED LONG

2 TERM UNEMPLOYED INDIVIDUALS.— 

3 ‘‘(A) IN GENERAL.—Any qualified long 

4 term unemployed individual under paragraph 

5 (11) will be treated as certified by the des6 ignated local agency as having aggregate peri7 ods of unemployment if— 

8 ‘‘(i) the individual is certified by the 

9 designated local agency as being in receipt 

10 of unemployment compensation under 

11 State or Federal law for not less than 6 

12 months during the 1-year period ending on 

13 the hiring date. 

14 ‘‘(B) REGULATORY AUTHORITY.—The Sec15 retary in his discretion may provide alternative 

16 methods for certification.’’. 

17 (d) CREDIT MADE AVAILABLE TO TAX-EXEMPT EM18 PLOYERS IN CERTAIN CIRCUMSTANCES.—Section 52(c) of 

19 the Internal Revenue Code is amended— 

20 (1) by striking the word ‘‘No’’ at the beginning 

21 of the section and replacing it with ‘‘Except as pro22 vided in this subsection, no’’; and 

23 (2) the following new paragraphs are inserted 

24 at the end of section 52(c)— 


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1 ‘‘(1) IN GENERAL.—In the case of a tax-exempt 

2 employer, there shall be treated as a credit allowable 

3 under subpart C (and not allowable under subpart 

4 D) the lesser of— 

5 ‘‘(A) the amount of the work opportunity 

6 credit determined under this subpart with re7 spect to such employer that is related to the 

8 hiring of qualified long term unemployed indi9 viduals described in subsection (d)(11); or 

10 ‘‘(B) the amount of the payroll taxes of the 

11 employer during the calendar year in which the 

12 taxable year begins. 

13 ‘‘(2) CREDIT AMOUNT.—In calculating tax-ex14 empt employers, the work opportunity credit shall be 

15 determined by substituting ‘26 percent’ for ‘40 per16 cent’ in section 51(a) and by substituting ‘16.25 

17 percent’ for ‘25 percent’ in section 51(i)(3)(A). 

18 ‘‘(3) TAX-EXEMPT EMPLOYER.—For purposes 

19 of this subtitle, the term ‘tax-exempt employer’ 

20 means an employer that is— 

21 ‘‘(A) an organization described in section 

22 501(c) and exempt from taxation under section 

23 501(a), or 


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1 ‘‘(B) a public higher education institution 

2 (as defined in section 101 of the Higher Edu3 cation Act of 1965). 

4 ‘‘(4) PAYROLL TAXES.—For purposes of this 

5 subsection— 

6 ‘‘(A) IN GENERAL.—The term ‘payroll 

7 taxes’ means— 

8 ‘‘(i) amounts required to be withheld 

9 from the employees of the tax-exempt em10 ployer under section 3401(a), 

11 ‘‘(ii) amounts required to be withheld 

12 from such employees under section 3101, 

13 and 

14 ‘‘(iii) amounts of the taxes imposed on 

15 the tax-exempt employer under section 

16 3111.’’. 

17 (e) TREATMENT OF POSSESSIONS.— 

18 (1) PAYMENTS TO POSSESSIONS.— 

19 (A) MIRROR CODE POSSESSIONS.—The 

20 Secretary of the Treasury shall pay to each pos21 session of the United States with a mirror code 

22 tax system amounts equal to the loss to that 

23 possession by reason of the application of this 

24 section (other than this subsection). Such 

25 amounts shall be determined by the Secretary 


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1 of the Treasury based on information provided 

2 by the government of the respective possession 

3 of the United States. 

4 (B) OTHER POSSESSIONS.—The Secretary 

5 of the Treasury shall pay to each possession of 

6 the United States, which does not have a mirror 

7 code tax system, amounts estimated by the Sec8 retary of the Treasury as being equal to the ag9 gregate credits that would have been provided 

10 by the possession by reason of the application 

11 of this section (other than this subsection) if a 

12 mirror code tax system had been in effect in 

13 such possession. The preceding sentence shall 

14 not apply with respect to any possession of the 

15 United States unless such possession has a 

16 plan, which has been approved by the Secretary 

17 of the Treasury, under which such possession 

18 will promptly distribute such payments. 

19 (2) COORDINATION WITH CREDIT ALLOWED

20 AGAINST UNITED STATES INCOME TAXES.—No in21 crease in the credit determined under section 38(b) 

22 of the Internal Revenue Code of 1986 that is attrib23 utable to the credit provided by this section (other 

24 than this subsection (e)) shall be taken into account 

25 with respect to any person— 


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1 (A) to whom a credit is allowed against 

2 taxes imposed by the possession of the United 

3 States by reason of this section for such taxable 

4 year, or 

5 (B) who is eligible for a payment under a 

6 plan described in paragraph (1)(B) with respect 

7 to such taxable year. 

8 (3) DEFINITIONS AND SPECIAL RULES.— 

9 (A) POSSESSION OF THE UNITED

10 STATES.—For purposes of this subsection (e), 

11 the term ‘‘possession of the United States’’ in12 cludes American Samoa, the Commonwealth of 

13 the Northern Mariana Islands, the Common14 wealth of Puerto Rico, Guam, and the United 

15 States Virgin Islands. 

16 (B) MIRROR CODE TAX SYSTEM.—For pur17 poses of this subsection, the term ‘‘mirror code 

18 tax system’’ means, with respect to any posses19 sion of the United States, the income tax sys20 tem of such possession if the income tax liabil21 ity of the residents of such possession under 

22 such system is determined by reference to the 

23 income tax laws of the United States as if such 

24 possession were the United States. 


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1 (C) TREATMENT OF PAYMENTS.—For pur2 poses of section 1324(b)(2) of title 31, United 

3 States Code, rules similar to the rules of section 

4 1001(b)(3)(C) of the American Recovery and 

5 Reinvestment Tax Act of 2009 shall apply. 

6 (f) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to individuals who begin work for 

8 the employer after the date of the enactment of this Act. 

9 Subtitle C—Pathways Back to 

10 Work 

11 SEC. 361. SHORT TITLE. 

12 This subtitle may be cited as the ‘‘Pathways Back 

13 to Work Act of 2011’’. 

14 SEC. 362. ESTABLISHMENT OF PATHWAYS BACK TO WORK 

15 FUND. 

16 (a) ESTABLISHMENT.—There is established in the 

17 Treasury of the United States a fund which shall be 

18 known as the Pathways Back to Work Fund (hereafter 

19 in this Act referred to as ‘‘the Fund’’). 

20 (b) DEPOSITS INTO THE FUND.—Out of any 

21 amounts in the Treasury of the United States not other22 wise appropriated, there are appropriated $5,000,000,000 

23 for payment to the Fund to be used by the Secretary of 

24 Labor to carry out this Act. 


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1 SEC. 363. AVAILABILITY OF FUNDS. 

2 (a) IN GENERAL.—Of the amounts available to the 

3 Fund under section 362(b), the Secretary of Labor shall— 

4 (1) allot $2,000,000,000 in accordance with 

5 section 364 to provide subsidized employment to un6 employed, low-income adults; 

7 (2) allot $1,500,000,000 in accordance with 

8 section 365 to provide summer and year-round em9 ployment opportunities to low-income youth; 

10 (3) award $1,500,000,000 in competitive grants 

11 in accordance with section 366 to local entities to 

12 carry out work-based training and other work-re13 lated and educational strategies and activities of 

14 demonstrated effectiveness to unemployed, low-in15 come adults and low-income youth to provide the 

16 skills and assistance needed to obtain employment. 

17 (b) RESERVATION.—The Secretary of Labor may re18 serve not more than 1 percent of amounts available to the 

19 Fund under each of paragraphs (1)–(3) of subsection (a) 

20 for the costs of technical assistance, evaluations and Fed21 eral administration of this Act. 

22 (c) PERIOD OF AVAILABILITY.—The amounts appro23 priated under this Act shall be available for obligation by 

24 the Secretary of Labor until December 31, 2012, and shall 

25 be available for expenditure by grantees and subgrantees 

26 until September 30, 2013. 


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1 SEC. 364. SUBSIDIZED EMPLOYMENT FOR UNEMPLOYED, 

2 LOW-INCOME ADULTS. 

3 (a) IN GENERAL.— 

4 (1) ALLOTMENTS.—From the funds available 

5 under section 363(a)(1), the Secretary of Labor 

6 shall make an allotment under subsection (b) to each 

7 State that has a State plan approved under sub8 section (c) and to each outlying area and Native 

9 American grantee under section 166 of the Work10 force Investment Act of 1998 that meets the re11 quirements of this section, for the purpose of pro12 viding subsidized employment opportunities to unem13 ployed, low-income adults. 

14 (2) GUIDANCE.—Not later than 30 days after 

15 the date of enactment of this Act, the Secretary of 

16 Labor, in coordination with the Secretary of Health 

17 and Human Services, shall issue guidance regarding 

18 the implementation of this section. Such guidance 

19 shall, consistent with this section, include procedures 

20 for the submission and approval of State and local 

21 plans and the allotment and allocation of funds, in22 cluding reallotment and reallocation of such funds, 

23 that promote the expeditious and effective implemen24 tation of the activities authorized under this section. 

25 (b) STATE ALLOTMENTS.— 


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1 (1) RESERVATIONS FOR OUTLYING AREAS AND

2 TRIBES.—Of the funds described in subsection 

3 (a)(1), the Secretary shall reserve— 

4 (A) not more than one-quarter of one per5 cent to provide assistance to outlying areas to 

6 provide subsidized employment to low-income 

7 adults who are unemployed; and 

8 (B) 1.5 percent to provide assistance to 

9 grantees of the Native American programs 

10 under section 166 of the Workforce Investment 

11 Act of 1998 to provide subsidized employment 

12 to low-income adults who are unemployed. 

13 (2) STATES.—After determining the amounts to 

14 be reserved under paragraph (1), the Secretary of 

15 Labor shall allot the remainder of the amounts de16 scribed in subsection (a)(1) among the States as fol17 lows: 

18 (A) one-third shall be allotted on the basis 

19 of the relative number of unemployed individ20 uals in areas of substantial unemployment in 

21 each State, compared to the total number of 

22 unemployed individuals in areas of substantial 

23 unemployment in all States; 

24 (B) one-third shall be allotted on the basis 

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1 dividuals in each State, compared to the total 

2 excess number of unemployed individuals in all 

3 States; and 

4 (C) one-third shall be allotted on the basis 

5 of the relative number of disadvantaged adults 

6 and youth in each State, compared to the total 

7 number of disadvantaged adults and youth in 

8 all States. 

9 (3) DEFINITIONS.—For purposes of the for10 mula described in paragraph (2)— 

11 (A) AREA OF SUBSTANTIAL UNEMPLOY12 MENT.—The term ‘‘area of substantial unem13 ployment’’ means any contiguous area with a 

14 population of at least 10,000 and that has an 

15 average rate of unemployment of at least 6.5 

16 percent for the most recent 12 months, as de17 termined by the Secretary. 

18 (B) DISADVANTAGED ADULTS AND

19 YOUTH.—The term ‘‘disadvantaged adults and 

20 youth’’ means an individual who is age 16 and 

21 older (subject to section 132(b)(1)(B)(v)(I) of 

22 the Workforce Investment Act of 1998) who re23 ceived an income, or is a member of a family 

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1 lation to family size, does not exceed the higher 

2 of— 

3 (i) the poverty line; or 

4 (ii) 70 percent of the lower living 

5 standard income level. 

6 (C) EXCESS NUMBER.—The term ‘‘excess 

7 number’’ means, used with respect to the excess 

8 number of unemployed individuals within a 

9 State, the higher of— 

10 (i) the number that represents the 

11 number of unemployed individuals in ex12 cess of 4.5 percent of the civilian labor 

13 force in the State; or 

14 (ii) the number that represents the 

15 number of unemployed individuals in ex16 cess of 4.5 percent of the civilian labor 

17 force in areas of substantial unemployment 

18 in such State. 

19 (4) REALLOTMENT.—If the Governor of a State 

20 does not submit a State plan by the time specified 

21 in subsection (c), or a State does not receive ap22 proval of a State plan, the amount the State would 

23 have been eligible to receive pursuant to the formula 

24 under paragraph (2) shall be transferred within the 


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1 Fund and added to the amounts available for the 

2 competitive grants under section 363(a)(3). 

3 (c) STATE PLAN.— 

4 (1) IN GENERAL.—For a State to be eligible to 

5 receive an allotment of the funds under subsection 

6 (b), the Governor of the State shall submit to the 

7 Secretary of Labor a State plan in such form and 

8 containing such information as the Secretary may 

9 require. At a minimum, such plan shall include— 

10 (A) a description of the strategies and ac11 tivities to be carried out by the State, in coordi12 nation with employers in the State, to provide 

13 subsidized employment opportunities to unem14 ployed, low-income adults, including strategies 

15 relating to the level and duration of subsidies 

16 consistent with subsection (e)(2); 

17 (B) a description of the requirements the 

18 State will apply relating to the eligibility of un19 employed, low-income adults, consistent with 

20 section 368(6), for subsidized employment op21 portunities, which may include criteria to target 

22 assistance to particular categories of such 

23 adults, such as individuals with disabilities or 

24 individuals who have exhausted all rights to un25 employment compensation; 


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1 (C) a description of how the funds allotted 

2 to provide subsidized employment opportunities 

3 will be administered in the State and local 

4 areas, in accordance with subsection (d); 

5 (D) a description of the performance out6 comes to be achieved by the State through the 

7 activities carried out under this section and the 

8 processes the State will use to track perform9 ance, consistent with guidance provided by the 

10 Secretary of Labor regarding such outcomes 

11 and processes and with section 367(b); 

12 (E) a description of the coordination of ac13 tivities to be carried out with the funds pro14 vided under this section with activities under 

15 title I of the Workforce Investment Act of 

16 1998, the TANF program under part A of title 

17 IV of the Social Security Act, and other appro18 priate Federal and State programs that may as19 sist unemployed, low-income adults in obtaining 

20 and retaining employment; 

21 (F) a description of the timelines for im22 plementation of the activities described in sub23 paragraph (A), and the number of unemployed, 

24 low-income adults expected to be placed in sub25 sidized employment by quarter; 


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1 (G) assurances that the State will report 

2 such information as the Secretary of Labor may 

3 require relating to fiscal, performance and other 

4 matters that the Secretary determines is nec5 essary to effectively monitor the activities car6 ried out under this section; and 

7 (H) assurances that the State will ensure 

8 compliance with the labor standards and protec9 tions described in section 367(a) of this Act. 

10 (2) SUBMISSION AND APPROVAL OF STATE

11 PLAN.— 

12 (A) SUBMISSION WITH OTHER PLANS.— 

13 The State plan described in this subsection may 

14 be submitted in conjunction with the State plan 

15 modification or request for funds required 

16 under section 365, and may be submitted as a 

17 modification to a State plan that has been ap18 proved under section 112 of the Workforce In19 vestment Act of 1998. 

20 (B) SUBMISSION AND APPROVAL.— 

21 (i) SUBMISSION.—The Governor shall 

22 submit a plan to the Secretary of Labor 

23 not later than 75 days after the enactment 

24 of this Act and the Secretary of Labor 

25 shall make a determination regarding the 


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1 approval or disapproval of such plans not 

2 later than 45 days after the submission of 

3 such plan. If the plan is disapproved, the 

4 Secretary of Labor may provide a reason5 able period of time in which a disapproved 

6 plan may be amended and resubmitted for 

7 approval. 

8 (ii) APPROVAL.—The Secretary of 

9 Labor shall approve a State plan that the 

10 Secretary determines is consistent with re11 quirements of this section and reasonably 

12 appropriate and adequate to carry out the 

13 purposes of this section. If the plan is ap14 proved, the Secretary shall allot funds to 

15 States within 30 days after such approval. 

16 (3) MODIFICATIONS TO STATE PLAN.—The 

17 Governor may submit a modification to a State plan 

18 under this subsection consistent with the require19 ments of this section. 

20 (d) ADMINISTRATION WITHIN THE STATE.— 

21 (1) OPTION.—The State may administer the 

22 funds for activities under this section through— 

23 (A) the State and local entities responsible 

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1 gram under title I–B of the Workforce Invest2 ment Act of 1998; 

3 (B) the entities responsible for the admin4 istration of the TANF program under part A of 

5 title IV of the Social Security Act; or 

6 (C) a combination of the entities described 

7 in subparagraphs (A) and (B). 

8 (2) WITHIN-STATE ALLOCATIONS.— 

9 (A) ALLOCATION OF FUNDS.—The Gov10 ernor may reserve up to 5 percent of the allot11 ment under subsection (b)(2) for administration 

12 and technical assistance, and shall allocate the 

13 remainder, in accordance with the option elect14 ed under paragraph (1)— 

15 (i) among local workforce investment 

16 areas within the State in accordance with 

17 the factors identified in subsection (b)(2), 

18 except that for purposes of such allocation 

19 references to a State in such paragraph 

20 shall be deemed to be references to a local 

21 workforce investment area and references 

22 to all States shall be deemed to be ref23 erences to all local areas in the State in24 volved, of which not more than 10 percent 

25 of the funds allocated to a local workforce 


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1 investment area may be used for the costs 

2 of administration of this section; or 

3 (ii) through entities responsible for 

4 the administration of the TANF program 

5 under part A of title IV of the Social Secu6 rity Act in local areas in such manner as 

7 the State may determine appropriate. 

8 (B) LOCAL PLANS.— 

9 (i) IN GENERAL.—In the case where 

10 the responsibility for the administration of 

11 activities is to be carried out by the enti12 ties described under paragraph (1)(A), in 

13 order to receive an allocation under sub14 paragraph (A)(i), a local workforce invest15 ment board, in partnership with the chief 

16 elected official of the local workforce in17 vestment area involved, shall submit to the 

18 Governor a local plan for the use of such 

19 funds under this section not later than 30 

20 days after the submission of the State 

21 plan. Such local plan may be submitted as 

22 a modification to a local plan approved 

23 under section 118 of the Workforce Invest24 ment Act of 1998. 


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1 (ii) CONTENTS.—The local plan de2 scribed in clause (i) shall contain the ele3 ments described in subparagraphs (A)–(H) 

4 of subsection (c)(1), as applied to the local 

5 workforce investment area. 

6 (iii) APPROVAL.—The Governor shall 

7 approve or disapprove the local plan sub8 mitted under clause (i) within 30 days 

9 after submission, or if later, 30 days after 

10 the approval of the State plan. The Gov11 ernor shall approve the plan unless the 

12 Governor determines that the plan is in13 consistent with requirements of this section 

14 or is not reasonably appropriate and ade15 quate to carry out the purposes of this sec16 tion. If the Governor has not made a de17 termination within the period specified 

18 under the first sentence of this clause, the 

19 plan shall be considered approved. If the 

20 plan is disapproved, the Governor may pro21 vide a reasonable period of time in which 

22 a disapproved plan may be amended and 

23 resubmitted for approval. The Governor 

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1 vestment areas with approved plans within 

2 30 days after such approval. 

3 (C) REALLOCATION OF FUNDS TO LOCAL

4 AREAS.—If a local workforce investment board 

5 does not submit a local plan by the time speci6 fied in subparagraph (B) or the Governor does 

7 not approve a local plan, the amount the local 

8 workforce investment area would have been eli9 gible to receive pursuant to the formula under 

10 subparagraph (A)(i) shall be allocated to local 

11 workforce investment areas that receive ap12 proval of the local plan under subparagraph 

13 (B). Such reallocations shall be made in accord14 ance with the relative share of the allocations to 

15 such local workforce investment areas applying 

16 the formula factors described under subpara17 graph (A)(i). 

18 (e) USE OF FUNDS.— 

19 (1) IN GENERAL.—The funds under this section 

20 shall be used to provide subsidized employment for 

21 unemployed, low-income adults. The State and local 

22 entities described in subsection (d)(1) may use a va23 riety of strategies in recruiting employers and identi24 fying appropriate employment opportunities, with a 

25 priority to be provided to employment opportunities 


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1 likely to lead to unsubsidized employment in emerg2 ing or in-demand occupations in the local area. 

3 Funds under this section may be used to provide 

4 support services, such as transportation and child 

5 care, that are necessary to enable the participation 

6 of individuals in subsidized employment opportuni7 ties. 

8 (2) LEVEL OF SUBSIDY AND DURATION.—The 

9 States or local entities described in subsection (d)(1) 

10 may determine the percentage of the wages and 

11 costs of employing a participant for which an em12 ployer may receive a subsidy with the funds provided 

13 under this section, and the duration of such subsidy, 

14 in accordance with guidance issued by the Secretary. 

15 The State or local entities may establish criteria for 

16 determining such percentage or duration using ap17 propriate factors such as the size of the employer 

18 and types of employment. 

19 (f) COORDINATION OF FEDERAL ADMINISTRATION.— 

20 The Secretary of Labor shall administer this section in 

21 coordination with the Secretary of Health and Human 

22 Services to ensure the effective implementation of this sec23 tion. 


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1 SEC. 365. SUMMER EMPLOYMENT AND YEAR-ROUND EM2 PLOYMENT OPPORTUNITIES FOR LOW-IN3 COME YOUTH. 

4 (a) IN GENERAL.—From the funds available under 

5 section 363(a)(2), the Secretary of Labor shall make an 

6 allotment under subsection (c) to each State that has a 

7 State plan modification (or other form of request for funds 

8 specified in guidance under subsection (b)) approved 

9 under subsection (d) and to each outlying area and Native 

10 American grantee under section 166 of the Workforce In11 vestment Act of 1998 that meets the requirements of this 

12 section, for the purpose of providing summer employment 

13 and year-round employment opportunities to low-income 

14 youth. 

15 (b) GUIDANCE AND APPLICATION OF REQUIRE16 MENTS.— 

17 (1) GUIDANCE.—Not later than 20 days after 

18 the date of enactment of this Act, the Secretary of 

19 Labor shall issue guidance regarding the implemen20 tation of this section. Such guidance shall, consistent 

21 with this section, include procedures for the submis22 sion and approval of State plan modifications, or for 

23 forms of requests for funds by the State as may be 

24 identified in such guidance, local plan modifications, 

25 or other forms of requests for funds from local work26 force investment areas as may be identified in such 


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1 guidance, and the allotment and allocation of funds, 

2 including reallotment and reallocation of such funds, 

3 that promote the expeditious and effective implemen4 tation of the activities authorized under this section. 

5 (2) REQUIREMENTS.—Except as otherwise pro6 vided in the guidance described in paragraph (1) 

7 and in this section and other provisions of this Act, 

8 the funds provided for activities under this section 

9 shall be administered in accordance with subtitles B 

10 and E of title I of the Workforce Investment Act of 

11 1998 relating to youth activities. 

12 (c) STATE ALLOTMENTS.— 

13 (1) RESERVATIONS FOR OUTLYING AREAS AND

14 TRIBES.—Of the funds described in subsection (a), 

15 the Secretary shall reserve— 

16 (A) not more than one-quarter of one per17 cent to provide assistance to outlying areas to 

18 provide summer and year-round employment 

19 opportunities to low-income youth; and 

20 (B) 1.5 percent to provide assistance to 

21 grantees of the Native American programs 

22 under section 166 of the Workforce Investment 

23 Act of 1998 to provide summer and year-round 

24 employment opportunities to low-income youth. 


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1 (2) STATES.—After determining the amounts to 

2 be reserved under paragraph (1), the Secretary of 

3 Labor shall allot the remainder of the amounts de4 scribed in subsection (a) among the States in ac5 cordance with the factors described in section 

6 364(b)(2) of this Act. 

7 (3) REALLOTMENT.—If the Governor of a State 

8 does not submit a State plan modification or other 

9 request for funds specified in guidance under sub10 section (b) by the time specified in subsection 

11 (d)(2)(B), or a State does not receive approval of 

12 such State plan modification or request, the amount 

13 the State would have been eligible to receive pursu14 ant to the formula under paragraph (2) shall be 

15 transferred within the Fund and added to the 

16 amounts available for the competitive grants under 

17 section 363(a)(3). 

18 (d) STATE PLAN MODIFICATION.— 

19 (1) IN GENERAL.—For a State to be eligible to 

20 receive an allotment of the funds under subsection 

21 (c), the Governor of the State shall submit to the 

22 Secretary of Labor a modification to a State plan 

23 approved under section 112 of the Workforce Invest24 ment Act of 1998, or other request for funds de25 scribed in guidance in subsection (b), in such form 


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1 and containing such information as the Secretary 

2 may require. At a minimum, such plan modification 

3 or request shall include— 

4 (A) a description of the strategies and ac5 tivities to be carried out to provide summer em6 ployment opportunities and year-round employ7 ment opportunities, including the linkages to 

8 educational activities, consistent with subsection 

9 (f); 

10 (B) a description of the requirements the 

11 States will apply relating to the eligibility of 

12 low-income youth, consistent with section 

13 368(4), for summer employment opportunities 

14 and year-round employment opportunities, 

15 which may include criteria to target assistance 

16 to particular categories of such low-income 

17 youth, such as youth with disabilities, con18 sistent with subsection (f); 

19 (C) a description of the performance out20 comes to be achieved by the State through the 

21 activities carried out under this section and the 

22 processes the State will use to track perform23 ance, consistent with guidance provided by the 

24 Secretary of Labor regarding such outcomes 

25 and processes and with section 367(b); 


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1 (D) a description of the timelines for im2 plementation of the activities described in sub3 paragraph (A), and the number of low-income 

4 youth expected to be placed in summer employ5 ment opportunities, and year-round employment 

6 opportunities, respectively, by quarter; 

7 (E) assurances that the State will report 

8 such information as the Secretary may require 

9 relating to fiscal, performance and other mat10 ters that the Secretary determines is necessary 

11 to effectively monitor the activities carried out 

12 under this section; and 

13 (F) assurances that the State will ensure 

14 compliance with the labor standards protections 

15 described in section 367(a). 

16 (2) SUBMISSION AND APPROVAL OF STATE

17 PLAN MODIFICATION OR REQUEST.— 

18 (A) SUBMISSION.—The Governor shall 

19 submit a modification of the State plan or other 

20 request for funds described in guidance in sub21 section (b) to the Secretary of Labor not later 

22 than 30 days after the issuance of such guid23 ance. The State plan modification or request for 

24 funds required under this subsection may be 


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1 submitted in conjunction with the State plan re2 quired under section 364. 

3 (B) APPROVAL.—The Secretary of Labor 

4 shall approve the plan or request submitted 

5 under subparagraph (A) within 30 days after 

6 submission, unless the Secretary determines 

7 that the plan or request is inconsistent with the 

8 requirements of this section. If the Secretary 

9 has not made a determination within 30 days, 

10 the plan or request shall be considered ap11 proved. If the plan or request is disapproved, 

12 the Secretary may provide a reasonable period 

13 of time in which a disapproved plan or request 

14 may be amended and resubmitted for approval. 

15 If the plan or request is approved, the Sec16 retary shall allot funds to States within 30 days 

17 after such approval. 

18 (3) MODIFICATIONS TO STATE PLAN OR RE19 QUEST.—The Governor may submit further modi20 fications to a State plan or request for funds identi21 fied under subsection (b) to carry out this section in 

22 accordance with the requirements of this section. 

23 (e) WITHIN-STATE ALLOCATION AND ADMINISTRA24 TION.— 


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1 (1) IN GENERAL.—Of the funds allotted to the 

2 State under subsection (c), the Governor— 

3 (A) may reserve up to 5 percent of the al4 lotment for administration and technical assist5 ance; and 

6 (B) shall allocate the remainder of the al7 lotment among local workforce investment areas 

8 within the State in accordance with the factors 

9 identified in section 364(b)(2), except that for 

10 purposes of such allocation references to a 

11 State in such paragraph shall be deemed to be 

12 references to a local workforce investment area 

13 and references to all States shall be deemed to 

14 be references to all local areas in the State in15 volved. Not more than 10 percent of the funds 

16 allocated to a local workforce investment area 

17 may be used for the costs of administration of 

18 this section. 

19 (2) LOCAL PLAN.— 

20 (A) SUBMISSION.—In order to receive an 

21 allocation under paragraph (1)(B), the local 

22 workforce investment board, in partnership with 

23 the chief elected official for the local workforce 

24 investment area involved, shall submit to the 

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1 proved under section 118 of the Workforce In2 vestment Act of 1998, or other form of request 

3 for funds as may be identified in the guidance 

4 issued under subsection (b), not later than 30 

5 days after the submission by the State of the 

6 modification to the State plan or other request 

7 for funds identified in subsection (b), describing 

8 the strategies and activities to be carried out 

9 under this section. 

10 (B) APPROVAL.—The Governor shall ap11 prove the local plan submitted under subpara12 graph (A) within 30 days after submission, un13 less the Governor determines that the plan is 

14 inconsistent with requirements of this section. 

15 If the Governor has not made a determination 

16 within 30 days, the plan shall be considered ap17 proved. If the plan is disapproved, the Governor 

18 may provide a reasonable period of time in 

19 which a disapproved plan may be amended and 

20 resubmitted for approval. The Governor shall 

21 allocate funds to local workforce investment 

22 areas with approved plans within 30 days after 

23 approval. 

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1 fication (or other request for funds identified in 

2 guidance under subsection (b)) by the time specified 

3 in paragraph (2), or does not receive approval of a 

4 local plan, the amount the local workforce invest5 ment area would have been eligible to receive pursu6 ant to the formula under paragraph (1)(B) shall be 

7 allocated to local workforce investment areas that re8 ceive approval of the local plan modification or re9 quest for funds under paragraph (2). Such realloca10 tions shall be made in accordance with the relative 

11 share of the allocations to such local workforce in12 vestment areas applying the formula factors de13 scribed under paragraph (1)(B). 

14 (f) USE OF FUNDS.— 

15 (1) IN GENERAL.—The funds provided under 

16 this section shall be used— 

17 (A) to provide summer employment oppor18 tunities for low-income youth, ages 16 through 

19 24, with direct linkages to academic and occu20 pational learning, and may include the provision 

21 of supportive services, such as transportation or 

22 child care, necessary to enable such youth to 

23 participate; and 

24 (B) to provide year-round employment op25 portunities, which may be combined with other 


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1 activities authorized under section 129 of the 

2 Workforce Investment Act of 1998, to low-in3 come youth, ages 16 through 24, with a priority 

4 to out-of-school youth who are— 

5 (i) high school dropouts; or 

6 (ii) recipients of a secondary school 

7 diploma or its equivalent but who are basic 

8 skills deficient unemployed or under9 employed. 

10 (2) PROGRAM PRIORITIES.—In administering 

11 the funds under this section, the local board and 

12 local chief elected officials shall give a priority to— 

13 (A) identifying employment opportunities 

14 that are— 

15 (i) in emerging or in-demand occupa16 tions in the local workforce investment 

17 area; or 

18 (ii) in the public or nonprofit sector 

19 that meet community needs; and 

20 (B) linking year-round program partici21 pants to training and educational activities that 

22 will provide such participants an industry-recog23 nized certificate or credential. 

24 (3) PERFORMANCE ACCOUNTABILITY.—For ac25 tivities funded under this section, in lieu of the reVerDate Mar 15 2010 01:31 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00330 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 quirements described in section 136 of the Work2 force Investment Act of 1998, State and local work3 force investment areas shall provide such reports as 

4 the Secretary of Labor may require regarding the 

5 performance outcomes described in section 

6 367(a)(5). 

7 SEC. 366. WORK-BASED EMPLOYMENT STRATEGIES OF 

8 DEMONSTRATED EFFECTIVENESS. 

9 (a) IN GENERAL.—From the funds available under 

10 section 363(a)(3), the Secretary of Labor shall award 

11 grants on a competitive basis to eligible entities to carry 

12 out work-based strategies of demonstrated effectiveness. 

13 (b) USE OF FUNDS.—The grants awarded under this 

14 section shall be used to support strategies and activities 

15 of demonstrated effectiveness that are designed to provide 

16 unemployed, low-income adults or low-income youth with 

17 the skills that will lead to employment as part of or upon 

18 completion of participation in such activities. Such strate19 gies and activities may include— 

20 (1) on-the-job training, registered apprentice21 ship programs, or other programs that combine work 

22 with skills development; 

23 (2) sector-based training programs that have 

24 been designed to meet the specific requirements of 

25 an employer or group of employers in that sector 


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1 and where employers are committed to hiring indi2 viduals upon successful completion of the training; 

3 (3) training that supports an industry sector or 

4 an employer-based or labor-management committee 

5 industry partnership which includes a significant 

6 work-experience component; 

7 (4) acquisition of industry-recognized creden8 tials in a field identified by the State or local work9 force investment area as a growth sector or demand 

10 industry in which there are likely to be significant 

11 job opportunities in the short-term; 

12 (5) connections to immediate work opportuni13 ties, including subsidized employment opportunities, 

14 or summer employment opportunities for youth, that 

15 includes concurrent skills training and other sup16 ports; 

17 (6) career academies that provide students with 

18 the academic preparation and training, including 

19 paid internships and concurrent enrollment in com20 munity colleges or other postsecondary institutions, 

21 needed to pursue a career pathway that leads to 

22 postsecondary credentials and high-demand jobs; 

23 and 

24 (7) adult basic education and integrated basic 

25 education and training models for low-skilled adults, 


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1 hosted at community colleges or at other sites, to 

2 prepare individuals for jobs that are in demand in 

3 a local area. 

4 (c) ELIGIBLE ENTITY.—An eligible entity shall in5 clude a local chief elected official, in collaboration with the 

6 local workforce investment board for the local workforce 

7 investment area involved (which may include a partnership 

8 with such officials and boards in the region and in the 

9 State), or an entity eligible to apply for an Indian and 

10 Native American grant under section 166 of the Work11 force Investment Act of 1998, and may include, in part12 nership with such officials, boards, and entities, the fol13 lowing: 

14 (1) employers or employer associations; 

15 (2) adult education providers and postsecondary 

16 educational institutions, including community col17 leges; 

18 (3) community-based organizations; 

19 (4) joint labor-management committees; 

20 (5) work-related intermediaries; or 

21 (6) other appropriate organizations. 

22 (d) APPLICATION.—An eligible entity seeking to re23 ceive a grant under this section shall submit to the Sec24 retary of Labor an application at such time, in such manVerDate Mar 15 2010 01:31 Oct 07, 2011 Jkt 019060 PO 00000 Frm 00333 Fmt 6652 Sfmt 6201 E:\BILLS\S1660.PCS S1660

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1 ner, and containing such information as the Secretary may 

2 require. At a minimum, the application shall— 

3 (1) describe the strategies and activities of dem4 onstrated effectiveness that the eligible entities will 

5 carry out to provide unemployed, low-income adults 

6 and low-income youth with the skills that will lead 

7 to employment upon completion of participation in 

8 such activities; 

9 (2) describe the requirements that will apply re10 lating to the eligibility of unemployed, low-income 

11 adults or low-income youth, consistent with para12 graphs (4) and (6) of section 368, for activities car13 ried out under this section, which may include cri14 teria to target assistance to particular categories of 

15 such adults and youth, such as individuals with dis16 abilities or individuals who have exhausted all rights 

17 to unemployment compensation; 

18 (3) describe how the strategies and activities 

19 address the needs of the target populations identi20 fied in paragraph (2) and the needs of employers in 

21 the local area; 

22 (4) describe the expected outcomes to be 

23 achieved by implementing the strategies and activi24 ties; 


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1 (5) provide evidence that the funds provided 

2 may be expended expeditiously and efficiently to im3 plement the strategies and activities; 

4 (6) describe how the strategies and activities 

5 will be coordinated with other Federal, State and 

6 local programs providing employment, education and 

7 supportive activities; 

8 (7) provide evidence of employer commitment to 

9 participate in the activities funded under this sec10 tion, including identification of anticipated occupa11 tional and skill needs; 

12 (8) provide assurances that the grant recipient 

13 will report such information as the Secretary may 

14 require relating to fiscal, performance and other 

15 matters that the Secretary determines is necessary 

16 to effectively monitor the activities carried out under 

17 this section; and 

18 (9) provide assurances that the use of the funds 

19 provided under this section will comply with the 

20 labor standards and protections described in section 

21 367(a). 

22 (e) PRIORITY IN AWARDS.—In awarding grants 

23 under this section, the Secretary of Labor shall give a pri24 ority to applications submitted by eligible entities from 

25 areas of high poverty and high unemployment, as defined 


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1 by the Secretary, such as Public Use Microdata Areas 

2 (PUMAs) as designated by the Census Bureau. 

3 (f) COORDINATION OF FEDERAL ADMINISTRATION.— 

4 The Secretary of Labor shall administer this section in 

5 coordination with the Secretary of Education, Secretary 

6 of Health and Human Services, and other appropriate 

7 agency heads, to ensure the effective implementation of 

8 this section. 

9 SEC. 367. GENERAL REQUIREMENTS. 

10 (a) LABOR STANDARDS AND PROTECTIONS.—Activi11 ties provided with funds under this Act shall be subject 

12 to the requirements and restrictions, including the labor 

13 standards, described in section 181 of the Workforce In14 vestment Act of 1998 and the nondiscrimination provi15 sions of section 188 of such Act, in addition to other appli16 cable federal laws. 

17 (b) REPORTING.—The Secretary may require the re18 porting of information relating to fiscal, performance and 

19 other matters that the Secretary determines is necessary 

20 to effectively monitor the activities carried out with funds 

21 provided under this Act. At a minimum, grantees and sub22 grantees shall provide information relating to— 

23 (1) the number of individuals participating in 

24 activities with funds provided under this Act and the 


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1 number of such individuals who have completed such 

2 participation; 

3 (2) the expenditures of funds provided under 

4 the Act; 

5 (3) the number of jobs created pursuant to the 

6 activities carried out under this Act; 

7 (4) the demographic characteristics of individ8 uals participating in activities under this Act; and 

9 (5) the performance outcomes of individuals 

10 participating in activities under this Act, including— 

11 (A) for adults participating in activities 

12 funded under section 364 of this Act— 

13 (i) entry in unsubsidized employment, 

14 (ii) retention in unsubsidized employ15 ment, and 

16 (iii) earnings in unsubsidized employ17 ment; 

18 (B) for low-income youth participating in 

19 summer employment activities under sections 

20 365 and 366— 

21 (i) work readiness skill attainment 

22 using an employer validated checklist; 

23 (ii) placement in or return to sec24 ondary or postsecondary education or 


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1 training, or entry into unsubsidized em2 ployment; 

3 (C) for low-income youth participating in 

4 year-round employment activities under section 

5 365 or in activities under section 366— 

6 (i) placement in or return to post-sec7 ondary education; 

8 (ii) attainment of high school diploma 

9 or its equivalent; 

10 (iii) attainment of an industry-recog11 nized credential; and 

12 (iv) entry into unsubsidized employ13 ment, retention, and earnings as described 

14 in subparagraph (A); 

15 (D) for unemployed, low-income adults 

16 participating in activities under section 366— 

17 (i) entry into unsubsidized employ18 ment, retention, and earnings as described 

19 in subparagraph (A); and 

20 (ii) the attainment of industry-recog21 nized credentials. 

22 (c) ACTIVITIES REQUIRED TO BE ADDITIONAL.— 

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1 wise be available in the State or local area in the absence 

2 of such funds. 

3 (d) ADDITIONAL REQUIREMENTS.—The Secretary of 

4 Labor may establish such additional requirements as the 

5 Secretary determines may be necessary to ensure fiscal in6 tegrity, effective monitoring, and the appropriate and 

7 prompt implementation of the activities under this Act. 

8 (e) REPORT OF INFORMATION AND EVALUATIONS TO

9 CONGRESS AND THE PUBLIC.—The Secretary of Labor 

10 shall provide to the appropriate Committees of the Con11 gress and make available to the public the information re12 ported pursuant to subsection (b) and the evaluations of 

13 activities carried out pursuant to the funds reserved under 

14 section 363(b). 

15 SEC. 368. DEFINITIONS. 

16 In this Act: 

17 (1) LOCAL CHIEF ELECTED OFFICIAL.—The 

18 term ‘‘local chief elected official’’ means the chief 

19 elected executive officer of a unit of local govern20 ment in a local workforce investment area or in the 

21 case where more than one unit of general govern22 ment, the individuals designated under an agreement 

23 described in section 117(c)(1)(B) of the Workforce 

24 Investment Act of 1998. 


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1 (2) LOCAL WORKFORCE INVESTMENT AREA.— 

2 The term ‘‘local workforce investment area’’ means 

3 such area designated under section 116 of the Work4 force Investment Act of 1998. 

5 (3) LOCAL WORKFORCE INVESTMENT BOARD.— 

6 The term ‘‘local workforce investment board’’ means 

7 such board established under section 117 of the 

8 Workforce Investment Act of 1998. 

9 (4) LOW-INCOME YOUTH.—The term ‘‘low-in10 come youth’’ means an individual who— 

11 (A) is aged 16 through 24; 

12 (B) meets the definition of a low-income 

13 individual provided in section 101(25) of the 

14 Workforce Investment Act of 1998, except that 

15 States, local workforce investment areas under 

16 section 365 and eligible entities under section 

17 366(c), subject to approval in the applicable 

18 State plans, local plans, and applications for 

19 funds, may increase the income level specified 

20 in subparagraph (B)(i) of such section to an 

21 amount not in excess of 200 percent of the pov22 erty line for purposes of determining eligibility 

23 for participation in activities under sections 365 

24 and 366 of this Act; and 


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1 (C) is in one or more of the categories 

2 specified in section 101(13)(C) of the Work3 force Investment Act of 1998. 

4 (5) OUTLYING AREA.—The term ‘‘outlying 

5 area’’ means the United States Virgin Islands, 

6 Guam, American Samoa, the Commonwealth of the 

7 Northern Mariana Islands, and the Republic of 

8 Palau. 

9 (6) UNEMPLOYED, LOW-INCOME ADULT.—The 

10 term ‘‘unemployed, low-income adult’’ means an in11 dividual who— 

12 (A) is age 18 or older; 

13 (B) is without employment and is seeking 

14 assistance under this Act to obtain employment; 

15 and 

16 (C) meets the definition of a ‘‘low-income 

17 individual’’ under section 101(25) of the Work18 force Investment Act of 1998, except that for 

19 that States, local entities described in section 

20 364(d)(1) and eligible entities under section 

21 366(c), subject to approval in the applicable 

22 State plans, local plans, and applications for 

23 funds, may increase the income level specified 

24 in subparagraph (B)(i) of such section to an 

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1 erty line for purposes of determining eligibility 

2 for participation in activities under sections 364 

3 and 366 of this Act. 

4 (7) STATE.—The term ‘‘State’’ means each of 

5 the several States of the United States, the District 

6 of Columbia, and Puerto Rico. 

7 Subtitle D—Prohibition of Dis8 crimination in Employment on 

9 the Basis of an Individual’s Sta10 tus as Unemployed 

11 SEC. 371. SHORT TITLE. 

12 This subtitle may be cited as the ‘‘Fair Employment 

13 Opportunity Act of 2011’’. 

14 SEC. 372. FINDINGS AND PURPOSE. 

15 (a) FINDINGS.—Congress finds that denial of em16 ployment opportunities to individuals because of their sta17 tus as unemployed is discriminatory and burdens com18 merce by— 

19 (1) reducing personal consumption and under20 mining economic stability and growth; 

21 (2) squandering human capital essential to the 

22 Nation’s economic vibrancy and growth; 

23 (3) increasing demands for Federal and State 

24 unemployment insurance benefits, reducing trust 

25 fund assets, and leading to higher payroll taxes for 


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1 employers, cuts in benefits for jobless workers, or 

2 both; 

3 (4) imposing additional burdens on publicly 

4 funded health and welfare programs; and 

5 (5) depressing income, property, and other tax 

6 revenues that the Federal Government, States, and 

7 localities rely on to support operations and institu8 tions essential to commerce. 

9 (b) PURPOSES.—The purposes of this Act are— 

10 (1) to prohibit employers and employment agen11 cies from disqualifying an individual from employ12 ment opportunities because of that individual’s sta13 tus as unemployed; 

14 (2) to prohibit employers and employment agen15 cies from publishing or posting any advertisement or 

16 announcement for an employment opportunity that 

17 indicates that an individual’s status as unemployed 

18 disqualifies that individual for the opportunity; and 

19 (3) to eliminate the burdens imposed on com20 merce due to the exclusion of such individuals from 

21 employment. 

22 SEC. 373. DEFINITIONS. 

23 As used in this Act— 

24 (1) the term ‘‘affected individual’’ means any 

25 person who was subject to an unlawful employment 


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1 practice solely because of that individual’s status as 

2 unemployed; 

3 (2) the term ‘‘Commission’’ means the Equal 

4 Employment Opportunity Commission; 

5 (3) the term ‘‘employee’’ means— 

6 (A) an employee as defined in section 

7 701(f) of the Civil Rights Act of 1964 (42 

8 U.S.C. 2000e(f)); 

9 (B) a State employee to which section 

10 302(a)(1) of the Government Employee Rights 

11 Act of 1991 (42 U.S.C. 2000e–16b(a)(1)) ap12 plies; 

13 (C) a covered employee, as defined in sec14 tion 101 of the Congressional Accountability 

15 Act of 1995 (2 U.S.C. 1301) or section 411(c) 

16 of title 3, United States Code; or 

17 (D) an employee or applicant to which sec18 tion 717(a) of the Civil Rights Act of 1964 (42 

19 U.S.C. 2000e–16(a)) applies; 

20 (4) the term ‘‘employer’’ means— 

21 (A) a person engaged in an industry affect22 ing commerce (as defined in section 701(h) of 

23 the Civil Rights Act of 1964 (42 U.S.C. 

24 2000e(h)) who has 15 or more employees for 

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1 endar weeks in the current or preceding cal2 endar year, and any agent of such a person, but 

3 does not include a bona fide private member4 ship club that is exempt from taxation under 

5 section 501(c) of the Internal Revenue Code of 

6 1986; 

7 (B) an employing authority to which sec8 tion 302(a)(1) of the Government Employee 

9 Rights Act of 1991 applies; 

10 (C) an employing office, as defined in sec11 tion 101 of the Congressional Accountability 

12 Act of 1995 or section 411(c) of title 3, United 

13 States Code; or 

14 (D) an entity to which section 717(a) of 

15 the Civil Rights Act of 1964 (42 U.S.C. 2000e– 

16 16(a)) applies; 

17 (5) the term ‘‘employment agency’’ means any 

18 person regularly undertaking with or without com19 pensation to procure employees for an employer or 

20 to procure for individuals opportunities to work as 

21 employees for an employer and includes an agent of 

22 such a person, and any person who maintains an 

23 Internet website or print medium that publishes ad24 vertisements or announcements of openings in jobs 

25 for employees; 


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1 (6) the term ‘‘person’’ has the meaning given 

2 the term in section 701(a) of the Civil Rights Act 

3 of 1964 (42 U.S.C. 2000e(a)); and 

4 (7) the term ‘‘status as unemployed’’, used with 

5 respect to an individual, means that the individual, 

6 at the time of application for employment or at the 

7 time of action alleged to violate this Act, does not 

8 have a job, is available for work and is searching for 

9 work. 

10 SEC. 374. PROHIBITED ACTS. 

11 (a) EMPLOYERS.—It shall be an unlawful employ12 ment practice for an employer to— 

13 (1) publish in print, on the Internet, or in any 

14 other medium, an advertisement or announcement 

15 for an employee for any job that includes— 

16 (A) any provision stating or indicating that 

17 an individual’s status as unemployed disquali18 fies the individual for any employment oppor19 tunity; or 

20 (B) any provision stating or indicating that 

21 an employer will not consider or hire an indi22 vidual for any employment opportunity based 

23 on that individual’s status as unemployed; 


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1 (2) fail or refuse to consider for employment, or 

2 fail or refuse to hire, an individual as an employee 

3 because of the individual’s status as unemployed; or 

4 (3) direct or request that an employment agen5 cy take an individual’s status as unemployed into ac6 count to disqualify an applicant for consideration, 

7 screening, or referral for employment as an em8 ployee. 

9 (b) EMPLOYMENT AGENCIES.—It shall be an unlaw10 ful employment practice for an employment agency to— 

11 (1) publish, in print or on the Internet or in 

12 any other medium, an advertisement or announce13 ment for any vacancy in a job, as an employee, that 

14 includes— 

15 (A) any provision stating or indicating that 

16 an individual’s status as unemployed disquali17 fies the individual for any employment oppor18 tunity; or 

19 (B) any provision stating or indicating that 

20 the employment agency or an employer will not 

21 consider or hire an individual for any employ22 ment opportunity based on that individual’s sta23 tus as unemployed; 

24 (2) screen, fail or refuse to consider, or fail or 

25 refuse to refer an individual for employment as an 


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1 employee because of the individual’s status as unem2 ployed; or 

3 (3) limit, segregate, or classify any individual in 

4 any manner that would limit or tend to limit the in5 dividual’s access to information about jobs, or con6 sideration, screening, or referral for jobs, as employ7 ees, solely because of an individual’s status as unem8 ployed. 

9 (c) INTERFERENCE WITH RIGHTS, PROCEEDINGS OR

10 INQUIRIES.—It shall be unlawful for any employer or em11 ployment agency to— 

12 (1) interfere with, restrain, or deny the exercise 

13 of or the attempt to exercise, any right provided 

14 under this Act; or 

15 (2) fail or refuse to hire, to discharge, or in any 

16 other manner to discriminate against any individual, 

17 as an employee, because such individual— 

18 (A) opposed any practice made unlawful by 

19 this Act; 

20 (B) has asserted any right, filed any 

21 charge, or has instituted or caused to be insti22 tuted any proceeding, under or related to this 

23 Act; 

24 (C) has given, or is about to give, any in25 formation in connection with any inquiry or 


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1 proceeding relating to any right provided under 

2 this Act; or 

3 (D) has testified, or is about to testify, in 

4 any inquiry or proceeding relating to any right 

5 provided under this Act. 

6 (d) CONSTRUCTION.—Nothing in this Act is intended 

7 to preclude an employer or employment agency from con8 sidering an individual’s employment history, or from ex9 amining the reasons underlying an individual’s status as 

10 unemployed, in assessing an individual’s ability to perform 

11 a job or in otherwise making employment decisions about 

12 that individual. Such consideration or examination may in13 clude an assessment of whether an individual’s employ14 ment in a similar or related job for a period of time rea15 sonably proximate to the consideration of such individual 

16 for employment is job-related or consistent with business 

17 necessity. 

18 SEC. 375. ENFORCEMENT. 

19 (a) ENFORCEMENT POWERS.—With respect to the 

20 administration and enforcement of this Act— 

21 (1) the Commission shall have the same powers 

22 as the Commission has to administer and enforce— 

23 (A) title VII of the Civil Rights Act of 

24 1964 (42 U.S.C. 2000e et seq.); or 


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1 (B) sections 302 and 304 of the Govern2 ment Employee Rights Act of 1991 (42 U.S.C. 

3 2000e–16b and 2000e–16c), 

4 in the case of an affected individual who would be 

5 covered by such title, or by section 302(a)(1) of the 

6 Government Employee Rights Act of 1991 (42 

7 U.S.C. 2000e–16b(a)(1)), respectively; 

8 (2) the Librarian of Congress shall have the 

9 same powers as the Librarian of Congress has to ad10 minister and enforce title VII of the Civil Rights Act 

11 of 1964 (42 U.S.C. 2000e et seq.) in the case of an 

12 affected individual who would be covered by such 

13 title; 

14 (3) the Board (as defined in section 101 of the 

15 Congressional Accountability Act of 1995 (2 U.S.C. 

16 1301)) shall have the same powers as the Board has 

17 to administer and enforce the Congressional Ac18 countability Act of 1995 (2 U.S.C. 1301 et seq.) in 

19 the case of an affected individual who would be cov20 ered by section 201(a)(1) of such Act (2 U.S.C. 

21 1311(a)(1)); 

22 (4) the Attorney General shall have the same 

23 powers as the Attorney General has to administer 

24 and enforce— 


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1 (A) title VII of the Civil Rights Act of 

2 1964 (42 U.S.C. 2000e et seq.); or 

3 (B) sections 302 and 304 of the Govern4 ment Employee Rights Act of 1991 (42 U.S.C. 

5 2000e–16b and 2000e–16c); 

6 in the case of an affected individual who would be 

7 covered by such title, or of section 302(a)(1) of the 

8 Government Employee Rights Act of 1991 (42 

9 U.S.C. 2000e–16b(a)(1)), respectively; 

10 (5) the President, the Commission, and the 

11 Merit Systems Protection Board shall have the same 

12 powers as the President, the Commission, and the 

13 Board, respectively, have to administer and enforce 

14 chapter 5 of title 3, United States Code, in the case 

15 of an affected individual who would be covered by 

16 section 411 of such title; and 

17 (6) a court of the United States shall have the 

18 same jurisdiction and powers as the court has to en19 force— 

20 (A) title VII of the Civil Rights Act of 

21 1964 (42 U.S.C. 2000e et seq.) in the case of 

22 a claim alleged by such individual for a viola23 tion of such title; 

24 (B) sections 302 and 304 of the Govern25 ment Employee Rights Act of 1991 (42 U.S.C. 


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1 2000e–16b and 2000e–16c) in the case of a 

2 claim alleged by such individual for a violation 

3 of section 302(a)(1) of such Act (42 U.S.C. 

4 2000e–16b(a)(1)); 

5 (C) the Congressional Accountability Act 

6 of 1995 (2 U.S.C. 1301 et seq.) in the case of 

7 a claim alleged by such individual for a viola8 tion of section 201(a)(1) of such Act (2 U.S.C. 

9 1311(a)(1)); and 

10 (D) chapter 5 of title 3, United States 

11 Code, in the case of a claim alleged by such in12 dividual for a violation of section 411 of such 

13 title. 

14 (b) PROCEDURES.—The procedures applicable to a 

15 claim alleged by an individual for a violation of this Act 

16 are— 

17 (1) the procedures applicable for a violation of 

18 title VII of the Civil Rights Act of 1964 (42 U.S.C. 

19 2000e et seq.) in the case of a claim alleged by such 

20 individual for a violation of such title; 

21 (2) the procedures applicable for a violation of 

22 section 302(a)(1) of the Government Employee 

23 Rights Act of 1991 (42 U.S.C. 2000e–16b(a)(1)) in 

24 the case of a claim alleged by such individual for a 

25 violation of such section; 


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1 (3) the procedures applicable for a violation of 

2 section 201(a)(1) of the Congressional Account3 ability Act of 1995 (2 U.S.C. 1311(a)(1)) in the 

4 case of a claim alleged by such individual for a viola5 tion of such section; and 

6 (4) the procedures applicable for a violation of 

7 section 411 of title 3, United States Code, in the 

8 case of a claim alleged by such individual for a viola9 tion of such section. 

10 (c) REMEDIES.— 

11 (1) In any claim alleging a violation of Section 

12 374(a)(1) or 374(b)(1) of this Act, an individual, or 

13 any person acting on behalf of the individual as set 

14 forth in Section 375(a) of this Act, may be awarded, 

15 as appropriate— 

16 (A) an order enjoining the respondent from 

17 engaging in the unlawful employment practice; 

18 (B) reimbursement of costs expended as a 

19 result of the unlawful employment practice; 

20 (C) an amount in liquidated damages not 

21 to exceed $1,000 for each day of the violation; 

22 and 

23 (D) reasonable attorney’s fees (including 

24 expert fees) and costs attributable to the pur25 suit of a claim under this Act, except that no 


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1 person identified in Section 103(a) of this Act 

2 shall be eligible to receive attorney’s fees. 

3 (2) In any claim alleging a violation of any 

4 other subsection of this Act, an individual, or any 

5 person acting on behalf of the individual as set forth 

6 in Section 375(a) of this Act, may be awarded, as 

7 appropriate, the remedies available for a violation of 

8 title VII of the Civil Rights Act of 1964 (42 U.S.C. 

9 2000e et seq.), section 302(a)(1) of the Government 

10 Employee Rights Act of 1991 (42 U.S.C. 2000e– 

11 16b(a)(1)), section 201(a)(1) of the Congressional 

12 Accountability Act of 1995 (2 U.S.C. 1311(a)(1)), 

13 and section 411 of title 3, United States Code, ex14 cept that in a case in which wages, salary, employ15 ment benefits, or other compensation have not been 

16 denied or lost to the individual, damages may be 

17 awarded in an amount not to exceed $5,000. 

18 SEC. 376. FEDERAL AND STATE IMMUNITY. 

19 (a) ABROGATION OF STATE IMMUNITY.—A State 

20 shall not be immune under the 11th Amendment to the 

21 Constitution from a suit brought in a Federal court of 

22 competent jurisdiction for a violation of this Act. 

23 (b) WAIVER OF STATE IMMUNITY.— 

24 (1) IN GENERAL.— 


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1 (A) WAIVER.—A State’s receipt or use of 

2 Federal financial assistance for any program or 

3 activity of a State shall constitute a waiver of 

4 sovereign immunity, under the 11th Amend5 ment to the Constitution or otherwise, to a suit 

6 brought by an employee or applicant for em7 ployment of that program or activity under this 

8 Act for a remedy authorized under Section 

9 375(c) of this Act. 

10 (B) DEFINITION.—In this paragraph, the 

11 term ‘‘program or activity’’ has the meaning 

12 given the term in section 606 of the Civil 

13 Rights Act of 1964 (42 U.S.C. 2000d–4a). 

14 (2) EFFECTIVE DATE.—With respect to a par15 ticular program or activity, paragraph (1) applies to 

16 conduct occurring on or after the day, after the date 

17 of enactment of this Act, on which a State first re18 ceives or uses Federal financial assistance for that 

19 program or activity. 

20 (c) REMEDIES AGAINST STATE OFFICIALS.—An offi21 cial of a State may be sued in the official capacity of the 

22 official by any employee or applicant for employment who 

23 has complied with the applicable procedures of this Act, 

24 for relief that is authorized under this Act. 


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1 (d) REMEDIES AGAINST THE UNITED STATES AND

2 THE STATES.—Notwithstanding any other provision of 

3 this Act, in an action or administrative proceeding against 

4 the United States or a State for a violation of this Act, 

5 remedies (including remedies at law and in equity) are 

6 available for the violation to the same extent as such rem7 edies would be available against a non-governmental enti8 ty. 

9 SEC. 377. RELATIONSHIP TO OTHER LAWS. 

10 This Act shall not invalidate or limit the rights, rem11 edies, or procedures available to an individual claiming 

12 discrimination prohibited under any other Federal law or 

13 regulation or any law or regulation of a State or political 

14 subdivision of a State. 

15 SEC. 378. SEVERABILITY. 

16 If any provision of this Act, or the application of the 

17 provision to any person or circumstance, is held to be in18 valid, the remainder of this Act and the application of the 

19 provision to any other person or circumstances shall not 

20 be affected by the invalidity. 

21 SEC. 379. EFFECTIVE DATE. 

22 This Act shall take effect on the date of enactment 

23 of this Act and shall not apply to conduct occurring before 

24 the effective date. 


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1 TITLE IV—SURTAX ON 

2 MILLIONAIRES 

3 SEC. 401. SURTAX ON MILLIONAIRES. 

4 (a) IN GENERAL.—Subchapter A of chapter 1 of the 

5 Internal Revenue Code of 1986 is amended by adding at 

6 the end the following new part: 

7 ‘‘PART VIII—SURTAX ON MILLIONAIRES 

‘‘Sec. 59B. Surtax on millionaires. 

8 ‘‘SEC. 59B. SURTAX ON MILLIONAIRES. 

9 ‘‘(a) GENERAL RULE.—In the case of a taxpayer 

10 other than a corporation for any taxable year beginning 

11 after 2012, there is hereby imposed (in addition to any 

12 other tax imposed by this subtitle) a tax equal to 5.6 per13 cent of so much of the modified adjusted gross income 

14 of the taxpayer for such taxable year as exceeds 

15 $1,000,000 ($500,000, in the case of a married individual 

16 filing a separate return). 

17 ‘‘(b) INFLATION ADJUSTMENT.— 

18 ‘‘(1) IN GENERAL.—In the case of any taxable 

19 year beginning after 2013, each dollar amount under 

20 subsection (a) shall be increased by an amount equal 

21 to— 

22 ‘‘(A) such dollar amount, multiplied by 

23 ‘‘(B) the cost-of-living adjustment deter24 mined under section 1(f)(3) for the calendar 


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1 year in which the taxable year begins, deter2 mined by substituting ‘calendar year 2011’ for 

3 ‘calendar year 1992’ in subparagraph (B) 

4 thereof. 

5 ‘‘(2) ROUNDING.—If any amount as adjusted 

6 under paragraph (1) is not a multiple of $10,000, 

7 such amount shall be rounded to the next highest 

8 multiple of $10,000. 

9 ‘‘(c) MODIFIED ADJUSTED GROSS INCOME.—For 

10 purposes of this section, the term ‘modified adjusted gross 

11 income’ means adjusted gross income reduced by any de12 duction (not taken into account in determining adjusted 

13 gross income) allowed for investment interest (as defined 

14 in section 163(d)). In the case of an estate or trust, ad15 justed gross income shall be determined as provided in sec16 tion 67(e). 

17 ‘‘(d) SPECIAL RULES.— 

18 ‘‘(1) NONRESIDENT ALIEN.—In the case of a 

19 nonresident alien individual, only amounts taken 

20 into account in connection with the tax imposed 

21 under section 871(b) shall be taken into account 

22 under this section. 

23 ‘‘(2) CITIZENS AND RESIDENTS LIVING

24 ABROAD.—The dollar amount in effect under sub25 section (a) shall be decreased by the excess of— 


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1 ‘‘(A) the amounts excluded from the tax2 payer’s gross income under section 911, over 

3 ‘‘(B) the amounts of any deductions or ex4 clusions disallowed under section 911(d)(6) 

5 with respect to the amounts described in sub6 paragraph (A). 

7 ‘‘(3) CHARITABLE TRUSTS.—Subsection (a) 

8 shall not apply to a trust all the unexpired interests 

9 in which are devoted to one or more of the purposes 

10 described in section 170(c)(2)(B). 

11 ‘‘(4) NOT TREATED AS TAX IMPOSED BY THIS

12 CHAPTER FOR CERTAIN PURPOSES.—The tax im13 posed under this section shall not be treated as tax 

14 imposed by this chapter for purposes of determining 

15 the amount of any credit under this chapter or for 

16 purposes of section 55.’’. 

17 (b) CLERICAL AMENDMENT.—The table of parts for 

18 subchapter A of chapter 1 of the Internal Revenue Code 

19 of 1986 is amended by adding at the end the following 

20 new item: 

‘‘PART VIII. SURTAX ON MILLIONAIRES.’’. 

21 (c) SECTION 15 NOT TO APPLY.—The amendment 

22 made by subsection (a) shall not be treated as a change 

23 in a rate of tax for purposes of section 15 of the Internal 

24 Revenue Code of 1986. 


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360 

•S 1660 PCS

1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2012. 


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Calendar No. 187 

112TH CONGRESS 

1ST SESSION S. 1660 

A BILL 

To provide tax relief for American workers and 

ing for jobs. vide pathways back to work for Americans lookrebuilding and modernizing America, and to probusinesses, to put workers back on the job while 

OCTOBER 6, 2011 

Read the second time and placed on the calendar 


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