I 

114TH CONGRESS 

1ST SESSION H. R. 3555 

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

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

pathways back to work for Americans looking for jobs. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 17, 2015 

Ms. WILSON of Florida (for herself, Ms. ADAMS, Mrs. BEATTY, Ms. BROWN

of Florida, Mr. BUTTERFIELD, Mr. CONYERS, Mr. CUMMINGS, Ms. 

DELAURO, Ms. EDWARDS, Ms. NORTON, Mr. ENGEL, Mr. FATTAH, Ms. 

FRANKEL of Florida, Ms. FUDGE, Ms. MICHELLE LUJAN GRISHAM of 

New Mexico, Mr. HASTINGS, Ms. JACKSON LEE, Mr. JEFFRIES, Ms. 

KAPTUR, Mr. LARSON of Connecticut, Ms. LEE, Ms. MCCOLLUM, Mr. 

MEEKS, Mr. PAYNE, Mr. POCAN, Mr. RANGEL, Mr. SABLAN, Ms. SCHAKOWSKY, Mr. SCOTT of Virginia, Mr. DANNY K. DAVIS of Illinois, Mr. 

GRIJALVA, Mr. TAKANO, Mr. CA ́RDENAS, and Ms. JUDY CHU of California) introduced the following bill; which was referred to the Committee 

on Ways and Means, and in addition to the Committees on Small Business, Education and the Workforce, the Judiciary, Transportation and 

Infrastructure, Financial Services, House Administration, Oversight and 

Government Reform, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To provide tax relief for American workers and businesses, 

to put workers back on the job while rebuilding and 

modernizing America, and to provide pathways back to 

work for Americans looking for jobs. 


SSpencer on DSK4SPTVN1PROD with BILLS
2 

•HR 3555 IH

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 ‘‘Jobs! Jobs! Jobs! Act of 2015’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. References. 

Sec. 3. Severability. 

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

Sec. 5. Wage rate and employment protection requirements. 

TITLE I—RELIEF FOR WORKERS AND BUSINESSES 

Subtitle A—Making Work Pay Credit 

Sec. 101. Making work pay credit. 

Subtitle B—Other Relief for Businesses 

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

business assets. 

Sec. 112. Surety bonds. 

TITLE II—PUTTING WORKERS BACK ON THE JOB WHILE 

REBUILDING AND MODERNIZING AMERICA 

Subtitle A—Teacher Stabilization 

Sec. 201. Purpose. 

Sec. 202. Grants for the outlying areas and the Secretary of the Interior; availability of funds. 

Sec. 203. State allocation. 

Sec. 204. State application. 

Sec. 205. State reservation and responsibilities. 

Sec. 206. Local educational agencies. 

Sec. 207. Early learning. 

Sec. 208. Maintenance of effort. 

Sec. 209. Reporting. 

Sec. 210. Definitions. 

Sec. 211. Authorization of appropriations. 

Subtitle B—First Responder Stabilization 

Sec. 212. Purpose. 

Sec. 213. Grant program. 

Sec. 214. Appropriations. 


SSpencer on DSK4SPTVN1PROD with BILLS
3 

•HR 3555 IH

Subtitle C—School Modernization 

PART I—ELEMENTARY AND SECONDARY SCHOOLS

Sec. 221. Purpose. 

Sec. 222. Authorization of appropriations. 

Sec. 223. Allocation of funds. 

Sec. 224. State use of funds. 

Sec. 225. State and local applications. 

Sec. 226. Use of funds. 

Sec. 227. Private schools. 

Sec. 228. Additional provisions. 

PART II—COMMUNITY COLLEGE MODERNIZATION

Sec. 229. Federal assistance for community college modernization. 

PART III—DEFINITIONS

Sec. 230. Definitions. 

Subtitle D—Immediate Transportation Infrastructure Investments 

Sec. 241. Immediate transportation infrastructure investments. 

Subtitle E—Building and Upgrading Infrastructure for Long-Term 

Development 

Sec. 242. Short title. 

Sec. 243. Findings and purpose. 

Sec. 244. Definitions. 

PART I—AMERICAN INFRASTRUCTURE FINANCING AUTHORITY

Sec. 245. Establishment and general authority of AIFA. 

Sec. 246. Voting members of the Board of Directors. 

Sec. 247. Chief executive officer of AIFA. 

Sec. 248. Powers and duties of the Board of Directors. 

Sec. 249. Senior management. 

Sec. 250. Special Inspector General for AIFA. 

Sec. 251. Other personnel. 

Sec. 252. Compliance. 

PART II—TERMS AND LIMITATIONS ON DIRECT LOANS AND LOAN

GUARANTEES

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

Sec. 254. Loan terms and repayment. 

Sec. 255. Compliance and enforcement. 

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

PART III—FUNDING OF AIFA 

Sec. 257. Administrative fees. 

Sec. 258. Efficiency of AIFA. 

Sec. 259. Funding. 


SSpencer on DSK4SPTVN1PROD with BILLS
4 

•HR 3555 IH

PART IV—EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX

TREATMENT FOR CERTAIN TAX-EXEMPT BONDS

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

certain tax-exempt bonds. 

Subtitle F—Project Rebuild 

Sec. 261. Project rebuild. 

TITLE III—ASSISTANCE FOR THE UNEMPLOYED AND PATHWAYS 

BACK TO WORK 

Subtitle A—Supporting Unemployed Workers 

Sec. 301. Short title. 

PART I—EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION AND

CERTAIN EXTENDED BENEFITS PROVISIONS, AND ESTABLISHMENT OF

SELF-EMPLOYMENT ASSISTANCE PROGRAM

Sec. 311. Extension of emergency unemployment compensation program. 

Sec. 312. Temporary extension of extended benefit provisions. 

Sec. 313. Additional extended unemployment benefits under the Railroad Unemployment Insurance Act. 

PART II—REEMPLOYMENT NOW PROGRAM

Sec. 321. Establishment of reemployment NOW program. 

Sec. 322. Distribution of funds. 

Sec. 323. State plan. 

Sec. 324. Bridge to work program. 

Sec. 325. Wage insurance. 

Sec. 326. Enhanced reemployment strategies. 

Sec. 327. Self-employment programs. 

Sec. 328. Additional innovative programs. 

Sec. 329. Guidance and additional requirements. 

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

Sec. 331. State. 

PART III—SHORT-TIME COMPENSATION PROGRAM

Sec. 341. Temporary financing of short-time compensation payments in States 

with programs in law. 

Sec. 342. Temporary financing of short-time compensation agreements. 

Sec. 343. Grants for short-time compensation programs. 

Sec. 344. Assistance and guidance in implementing programs. 

Sec. 345. Reports. 

Subtitle B—Long-Term Unemployed Hiring Preferences 

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

Subtitle C—Pathways Back to Work 

Sec. 361. Short title. 

Sec. 362. Authorization of appropriations. 

Sec. 363. Availability of funds. 

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


SSpencer on DSK4SPTVN1PROD with BILLS
5 

•HR 3555 IH

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

low-income youth. 

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

Sec. 367. General requirements. 

Sec. 368. Definitions. 

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

Individual’s Status as Unemployed 

Sec. 371. Short title. 

Sec. 372. Findings and purpose. 

Sec. 373. Definitions. 

Sec. 374. Prohibited acts. 

Sec. 375. Enforcement. 

Sec. 376. Federal and State immunity. 

Sec. 377. Relationship to other laws. 

Sec. 378. Severability. 

Sec. 379. Effective date. 

TITLE IV—OFFSETS 

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

Sec. 401. 28-percent limitation on certain deductions and exclusions. 

Subtitle B—Tax Carried Interest in Investment Partnerships as Ordinary 

Income 

Sec. 411. Partnership interests transferred in connection with performance of 

services. 

Sec. 412. Special rules for partners providing investment management services 

to partnerships. 

Subtitle C—Close Loophole for Corporate Jet Depreciation 

Sec. 421. General aviation aircraft treated as 7-year property. 

Subtitle D—Repeal Oil Subsidies 

Sec. 431. Repeal of deduction for intangible drilling and development costs in 

the case of oil and gas wells. 

Sec. 432. Repeal of deduction for tertiary injectants. 

Sec. 433. Repeal of percentage depletion for oil and gas wells. 

Sec. 434. Section 199 deduction not allowed with respect to oil, natural gas, 

or primary products thereof. 

Sec. 435. Repeal oil and gas working interest exception to passive activity rules. 

Sec. 436. Repeal enhanced oil recovery credit. 

Sec. 437. Uniform seven-year amortization for geological and geophysical expenditures. 

Sec. 438. Repeal marginal well production credit. 

Subtitle E—Dual Capacity Taxpayers 

Sec. 441. Modifications of foreign tax credit rules applicable to dual capacity 

taxpayers. 

Sec. 442. Separate basket treatment taxes paid on foreign oil and gas income. 


SSpencer on DSK4SPTVN1PROD with BILLS
6 

•HR 3555 IH

Subtitle F—Repeal of Sequestration 

Sec. 451. Repeal of sequestration. 

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; 


SSpencer on DSK4SPTVN1PROD with BILLS
7 

•HR 3555 IH

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 


SSpencer on DSK4SPTVN1PROD with BILLS
8 

•HR 3555 IH

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—Making Work Pay 

18 Credit 

19 SEC. 101. MAKING WORK PAY CREDIT. 

20 (a) IN GENERAL.—Section 36A(e) of the Internal 

21 Revenue Code of 1986 is amended to read as follows: 

22 ‘‘(e) TERMINATION.—This section shall not apply 

23 to— 

24 ‘‘(1) beginning after December 31, 2010, and 

25 before January 1, 2015, and 


SSpencer on DSK4SPTVN1PROD with BILLS
9 

•HR 3555 IH

1 ‘‘(2) taxable years beginning after December 

2 31, 2014.’’. 

3 (b) TREATMENT OF POSSESSIONS.—Rules similar to 

4 the rules of subsections (b) and (c) of section 1001 of the 

5 American Recovery and Reinvestment Tax Act of 2009 

6 shall apply with respect to the amendment made by sub7 section (a). For purposes of the preceding sentence, such 

8 section shall be applied by substituting ‘‘taxable years be9 ginning in 2015’’ for ‘‘taxable years beginning in 2009 

10 and 2010’’ each place it occurs. 

11 (c) EFFECTIVE DATE.—This section, and the amend12 ments made by this section, shall apply to taxable years 

13 beginning after December 31, 2014. 

14 Subtitle B—Other Relief for 

15 Businesses 

16 SEC. 111. EXTENSION OF TEMPORARY 100-PERCENT BONUS 

17 DEPRECIATION FOR CERTAIN BUSINESS AS18 SETS. 

19 (a) IN GENERAL.—Section 168(k) of the Internal 

20 Revenue Code is amended by adding at the end the fol21 lowing new paragraph: 

22 ‘‘(6) SPECIAL RULE FOR PROPERTY ACQUIRED

23 DURING CERTAIN PRE-2015 PERIOD.—In the case of 

24 qualified property acquired by the taxpayer (under 

25 rules similar to the rules of clauses (ii) and (iii) of 


SSpencer on DSK4SPTVN1PROD with BILLS
10 

•HR 3555 IH

1 paragraph (2)(A)) after December 31, 2013, and be2 fore January 1, 2015, and which is placed in service 

3 by the taxpayer before January 1, 2015 (January 1, 

4 2016, in the case of property described in subpara5 graph (2)(B) or (2)(C)), paragraph (1)(A) shall be 

6 applied by substituting ‘100 percent’ for ‘50 per7 cent’.’’. 

8 (b) CONFORMING AMENDMENT.—The heading for 

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

10 Code is amended by striking ‘‘PRE-2012 PERIODS’’ and in11 serting ‘‘PRE-2015 PERIODS’’. 

12 SEC. 112. SURETY BONDS. 

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

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

15 694b(a)(1)) is amended by striking ‘‘$6,500,000’’ and in16 serting ‘‘$7,500,000’’. 

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

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

19 694b(e)(2)) is amended by striking ‘‘$6,500,000’’ and in20 serting ‘‘$7,500,000’’. 

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

22 (a) and (b) of this section shall remain in effect until Sep23 tember 30, 2016. 

24 (d) FUNDING.—There is authorized to be appro25 priated $3,000,000, to remain available until expended, 


SSpencer on DSK4SPTVN1PROD with BILLS
11 

•HR 3555 IH

1 for additional capital for the revolving fund for surety 

2 bond guarantees authorized under section 412 of the 

3 Small Business Investment Act of 1958 (15 U.S.C. 694c). 

4 TITLE II—PUTTING WORKERS 

5 BACK ON THE JOB WHILE RE6 BUILDING AND MODERNIZING 

7 AMERICA 

8 Subtitle A—Teacher Stabilization 

9 SEC. 201. PURPOSE. 

10 The purpose of this subtitle is to provide funds to 

11 States to prevent teacher layoffs and support the creation 

12 of additional jobs in public early childhood, elementary, 

13 and secondary education in the 2016–2017 and 2017– 

14 2018 school years. 

15 SEC. 202. GRANTS FOR THE OUTLYING AREAS AND THE 

16 SECRETARY OF THE INTERIOR; AVAILABILITY 

17 OF FUNDS. 

18 (a) RESERVATION OF FUNDS.—From the amount ap19 propriated to carry out this subtitle under section 212, 

20 the Secretary— 

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

22 to provide assistance to the outlying areas on the 

23 basis of their respective needs, as determined by the 

24 Secretary, for activities consistent with this subtitle 


SSpencer on DSK4SPTVN1PROD with BILLS
12 

•HR 3555 IH

1 under such terms and conditions as the Secretary 

2 may determine; 

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

4 to provide assistance to the Secretary of the Interior 

5 to carry out activities consistent with this subtitle, in 

6 schools operated or funded by the Bureau of Indian 

7 Education; and 

8 (3) may reserve up to $2,000,000 for adminis9 tration and oversight of this subtitle, including pro10 gram evaluation. 

11 (b) AVAILABILITY OF FUNDS.—Funds made avail12 able under section 212 shall remain available to the Sec13 retary until September 30, 2016. 

14 SEC. 203. STATE ALLOCATION. 

15 (a) ALLOCATION.—After reserving funds under sec16 tion 202(a), the Secretary shall allocate the remaining 

17 funds appropriated under section 212 to States, of 

18 which— 

19 (1) 60 percent shall be allocated to States on 

20 the basis of their relative population of individuals 

21 aged 5 through 17; and 

22 (2) 40 percent shall be allocated to States on 

23 the basis of their relative total population. 

24 (b) AWARDS.—The Secretary shall award a State’s 

25 allocation under subsection (a) to the Governor of the 


SSpencer on DSK4SPTVN1PROD with BILLS
13 

•HR 3555 IH

1 State only if the Secretary has approved the State’s appli2 cation under section 205. 

3 (c) ALTERNATE DISTRIBUTION OF FUNDS.— 

4 (1) IN GENERAL.—If, within 30 days after the 

5 date of enactment of this Act, a Governor has not 

6 submitted an approvable application to the Sec7 retary, the Secretary shall, consistent with para8 graph (2), provide for funds allocated to that State 

9 to be distributed to another entity or other entities 

10 in the State for the support of early childhood, ele11 mentary, and secondary education, under such terms 

12 and conditions as the Secretary may establish. 

13 (2) MAINTENANCE OF EFFORT.— 

14 (A) GOVERNOR ASSURANCE.—The Sec15 retary shall not allocate funds under paragraph 

16 (1) unless the Governor of the State provides 

17 an assurance to the Secretary that the State 

18 will for fiscal years 2016 and 2017 meet the re19 quirements of section 209. 

20 (B) ALLOCATIONS TO OTHER ENTITIES.— 

21 Notwithstanding subparagraph (A), the Sec22 retary may allocate up to 50 percent of the 

23 funds that are available to the State under 

24 paragraph (1) to another entity or entities in 

25 the State, provided that the State educational 


SSpencer on DSK4SPTVN1PROD with BILLS
14 

•HR 3555 IH

1 agency submits data to the Secretary dem2 onstrating that the State will for fiscal year 

3 2016 meet the requirements of section 209(a) 

4 or the Secretary otherwise determines that the 

5 State will meet those requirements, or such 

6 comparable requirements as the Secretary may 

7 establish, for that year. 

8 (3) REQUIREMENTS.—An entity that receives 

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

10 accordance with the requirements of this subtitle. 

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

12 funding under this subtitle or only receives a portion of 

13 its allocation under subsection (c), the Secretary shall re14 allocate the State’s entire allocation or the remaining por15 tion of its allocation, as the case may be, to the remaining 

16 States in accordance with subsection (a). 

17 SEC. 204. STATE APPLICATION. 

18 The Governor of a State desiring to receive a grant 

19 under this subtitle shall submit an application to the Sec20 retary within 30 days of the date of enactment of this Act, 

21 in such manner, and containing such information as the 

22 Secretary may reasonably require to determine the State’s 

23 compliance with applicable provisions of law. 


SSpencer on DSK4SPTVN1PROD with BILLS
15 

•HR 3555 IH

1 SEC. 205. STATE RESERVATION AND RESPONSIBILITIES. 

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

3 under section 204(b) may reserve— 

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

5 funds for awards to State-funded early learning pro6 grams; and 

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

8 for the administrative costs of carrying out its re9 sponsibilities under this subtitle. 

10 (b) STATE RESPONSIBILITIES.—Each State receiving 

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

12 under subsection (a)— 

13 (1) use the remaining grant funds only for 

14 awards to local educational agencies for the support 

15 of early childhood, elementary, and secondary edu16 cation; 

17 (2) distribute those funds, through subgrants, 

18 to its local educational agencies by distributing— 

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

20 educational agencies’ relative shares of enroll21 ment; and 

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

23 educational agencies’ relative shares of funds 

24 received under part A of title I of the Elemen25 tary and Secondary Education Act of 1965 for 

26 fiscal year 2013; and 


SSpencer on DSK4SPTVN1PROD with BILLS
16 

•HR 3555 IH

1 (3) make those funds available to local edu2 cational agencies no later than 100 days after receiv3 ing a grant from the Secretary. 

4 (c) PROHIBITIONS.—A State shall not use funds re5 ceived under this subtitle to directly or indirectly— 

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

7 fund; 

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

9 the effect of establishing, restoring, or 

10 supplementing a rainy-day fund; 

11 (3) reduce or retire debt obligations incurred by 

12 the State; or 

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

14 the effect of reducing or retiring debt obligations in15 curred by the State. 

16 SEC. 206. LOCAL EDUCATIONAL AGENCIES. 

17 Each local educational agency that receives a 

18 subgrant under this subtitle— 

19 (1) shall use the subgrant funds only for com20 pensation and benefits and other expenses, such as 

21 support services, necessary to retain existing employ22 ees, recall or rehire former employees, or hire new 

23 employees to provide early childhood, elementary, or 

24 secondary educational and related services; 


SSpencer on DSK4SPTVN1PROD with BILLS
17 

•HR 3555 IH

1 (2) shall obligate those funds not later than 

2 September 30, 2016; and 

3 (3) may not use those funds for general admin4 istrative expenses or for other support services or ex5 penditures, as those terms are defined by the Na6 tional Center for Education Statistics in the Com7 mon Core of Data, as of the date of enactment of 

8 this Act. 

9 SEC. 207. EARLY LEARNING. 

10 Each State-funded early learning program that re11 ceives funds under this subtitle shall— 

12 (1) use those funds only for compensation, ben13 efits, and other expenses, such as support services, 

14 necessary to retain early childhood educators, recall 

15 or rehire former early childhood educators, or hire 

16 new early childhood educators to provide early learn17 ing services; and 

18 (2) obligate those funds not later than Sep19 tember 30, 2017. 

20 SEC. 208. MAINTENANCE OF EFFORT. 

21 (a) REQUIREMENT.—The Secretary shall not allocate 

22 funds to a State under this subtitle unless the State pro23 vides an assurance to the Secretary that— 

24 (1) for State fiscal year 2016— 


SSpencer on DSK4SPTVN1PROD with BILLS
18 

•HR 3555 IH

1 (A) the State will maintain State support 

2 for early childhood, elementary, and secondary 

3 education (in the aggregate or on the basis of 

4 expenditure per pupil) and for public institu5 tions of higher education (not including support 

6 for capital projects or for research and develop7 ment or tuition and fees paid by students) at 

8 not less than the level of such support for each 

9 of the two categories for State fiscal year 2015; 

10 or 

11 (B) the State will maintain State support 

12 for early childhood, elementary, and secondary 

13 education and for public institutions of higher 

14 education (not including support for capital 

15 projects or for research and development or tui16 tion and fees paid by students) at a percentage 

17 of the total revenues available to the State that 

18 is equal to or greater than the percentage pro19 vided for State fiscal year 2013; and 

20 (2) for State fiscal year 2017— 

21 (A) the State will maintain State support 

22 for early childhood, elementary, and secondary 

23 education (in the aggregate or on the basis of 

24 expenditure per pupil) and for public institu25 tions of higher education (not including support 


SSpencer on DSK4SPTVN1PROD with BILLS
19 

•HR 3555 IH

1 for capital projects or for research and develop2 ment or tuition and fees paid by students) at 

3 not less than the level of such support for each 

4 of the two categories for State fiscal year 2016; 

5 or 

6 (B) the State will maintain State support 

7 for early childhood, elementary, and secondary 

8 education and for public institutions of higher 

9 education (not including support for capital 

10 projects or for research and development or tui11 tion and fees paid by students) at a percentage 

12 of the total revenues available to the State that 

13 is equal to or greater than the percentage pro14 vided for State fiscal year 2016. 

15 (b) WAIVER.—The Secretary may waive the require16 ments of this section if the Secretary determines that a 

17 waiver would be equitable due to— 

18 (1) exceptional or uncontrollable circumstances, 

19 such as a natural disaster; or 

20 (2) a precipitous decline in the financial re21 sources of the State. 

22 SEC. 209. REPORTING. 

23 Each State that receives a grant under this subtitle 

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

25 that contains— 


SSpencer on DSK4SPTVN1PROD with BILLS
20 

•HR 3555 IH

1 (1) a description of how funds received under 

2 this part were expended or obligated; and 

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

4 by the State using funds received under this subtitle. 

5 SEC. 210. DEFINITIONS. 

6 In this subtitle: 

7 (1) ESEA DEFINITIONS.—Except as otherwise 

8 provided, the terms ‘‘local educational agency’’, 

9 ‘‘outlying area’’, ‘‘Secretary’’, ‘‘State’’, and ‘‘State 

10 educational agency’’ have the meanings given those 

11 terms in section 9101 of the Elementary and Sec12 ondary Education Act of 1965 (20 U.S.C. 7801). 

13 (2) STATE.—The term ‘‘State’’ does not include 

14 an outlying area. 

15 (3) EARLY CHILD EDUCATOR.—The term 

16 ‘‘early childhood educator’’ means an individual 

17 who— 

18 (A) works directly with children in a State19 funded early learning program in a low-income 

20 community; 

21 (B) is involved directly in the care, devel22 opment, and education of infants, toddlers, or 

23 young children age five and under; and 

24 (C) has completed a baccalaureate or ad25 vanced degree in early childhood development or 


SSpencer on DSK4SPTVN1PROD with BILLS
21 

•HR 3555 IH

1 early childhood education, or in a field related 

2 to early childhood education. 

3 (4) STATE-FUNDED EARLY LEARNING PRO4 GRAM.—The term ‘‘State-funded early learning pro5 gram’’ means a program that provides educational 

6 services to children from birth to kindergarten entry 

7 and receives funding from a State. 

8 SEC. 211. AUTHORIZATION OF APPROPRIATIONS. 

9 There are authorized to be appropriated, and there 

10 are appropriated, $30,000,000,000 to carry out this sub11 title for fiscal year 2016. 

12 Subtitle B—First Responder 

13 Stabilization 

14 SEC. 212. PURPOSE. 

15 The purpose of this subtitle is to provide funds to 

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

17 creation of additional jobs for, law enforcement officers 

18 and other first responders. 

19 SEC. 213. GRANT PROGRAM. 

20 The Attorney General shall carry out a competitive 

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

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

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

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

25 awarded under this section shall not be subject to subVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
22 

•HR 3555 IH

1 section (g) or (i) of section 1701 or to section 1704 of 

2 such Act (42 U.S.C. 3796dd–3(c)). 

3 SEC. 214. APPROPRIATIONS. 

4 There is hereby appropriated for the Community Ori5 ented Policing Stabilization Fund, out of any money in 

6 the Treasury not otherwise appropriated, $5,000,000,000, 

7 to remain available until September 30, 2016, of which 

8 $4,000,000,000 shall be for the Attorney General to carry 

9 out the competitive grant program under section 213, and 

10 of which $1,000,000,000 shall be transferred by the Attor11 ney General to a First Responder Stabilization Fund, 

12 from which the Secretary of Homeland Security shall 

13 make competitive grants for hiring, rehiring, or retention 

14 pursuant to the Federal Fire Prevention and Control Act 

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

16 34 of such Act (15 U.S.C. 2229a). In making such grants, 

17 the Secretary may grant waivers from the requirements 

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

19 (c)(2), and (c)(4)(A) of such section 34. Of the amounts 

20 appropriated herein, not to exceed $8,000,000 shall be for 

21 administrative costs of the Attorney General, and not to 

22 exceed $2,000,000 shall be for administrative costs of the 

23 Secretary of Homeland Security. 


SSpencer on DSK4SPTVN1PROD with BILLS
23 

•HR 3555 IH

1 Subtitle C—School Modernization 

2 PART I—ELEMENTARY AND SECONDARY 

3 SCHOOLS 

4 SEC. 221. PURPOSE. 

5 The purpose of this part is to provide assistance for 

6 the modernization, renovation, and repair of elementary 

7 and secondary school buildings in public school districts 

8 across America in order to support the achievement of im9 proved educational outcomes in those schools. 

10 SEC. 222. AUTHORIZATION OF APPROPRIATIONS. 

11 There are authorized to be appropriated, and there 

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

13 which shall be available for obligation by the Secretary 

14 until September 30, 2016. 

15 SEC. 223. ALLOCATION OF FUNDS. 

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

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

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

19 the Interior to carry out modernization, renovation, 

20 and repair activities described in section 226 in 

21 schools operated or funded by the Bureau of Indian 

22 Education; 

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

24 the outlying areas for modernization, renovation, 

25 and repair activities described in section 226; and 


SSpencer on DSK4SPTVN1PROD with BILLS
24 

•HR 3555 IH

1 (3) such funds as the Secretary determines are 

2 needed to conduct a survey, by the National Center 

3 for Education Statistics, of the school construction, 

4 modernization, renovation, and repair needs of the 

5 public schools of the United States. 

6 (b) STATE ALLOCATION.—After reserving funds 

7 under subsection (a), the Secretary shall allocate the re8 maining amount among the States in proportion to their 

9 respective allocations under part A of title I of the Ele10 mentary and Secondary Education Act of 1965 (in this 

11 part referred to as the ‘‘ESEA’’) (20 U.S.C. 6311 et seq.) 

12 for fiscal year 2013, except that— 

13 (1) the Secretary shall allocate 40 percent of 

14 such remaining amount to the 100 local educational 

15 agencies with the largest numbers of children aged 

16 5–17 living in poverty, as determined using the most 

17 recent data available from the Department of Com18 merce that are satisfactory to the Secretary, in pro19 portion to those agencies’ respective allocations 

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

21 2013; and 

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

23 by the aggregate amount of the allocations under 

24 paragraph (1) to local educational agencies in that 

25 State. 


SSpencer on DSK4SPTVN1PROD with BILLS
25 

•HR 3555 IH

1 (c) REMAINING ALLOCATION.— 

2 (1) STATES.—If a State does not apply for its 

3 allocation under subsection (b) (or applies for less 

4 than the full allocation for which it is eligible) or 

5 does not use that allocation in a timely manner, the 

6 Secretary may— 

7 (A) reallocate all or a portion of that allo8 cation to the other States in accordance with 

9 subsection (b); or 

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

11 to make direct allocations to local educational 

12 agencies within the State based on their respec13 tive allocations under part A of title I of the 

14 ESEA for fiscal year 2013 or such other meth15 od as the Secretary may determine. 

16 (2) LOCAL EDUCATIONAL AGENCIES.—If a local 

17 educational agency does not apply for its allocation 

18 under subsection (b)(1), applies for less than the full 

19 allocation for which it is eligible, or does not use 

20 that allocation in a timely manner, the Secretary 

21 may reallocate all or a portion of its allocation to the 

22 State in which that agency is located. 

23 SEC. 224. STATE USE OF FUNDS. 

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

25 under this part may reserve not more than one percent 


SSpencer on DSK4SPTVN1PROD with BILLS
26 

•HR 3555 IH

1 of the State’s allocation under section 223(b) for the pur2 pose of administering the grant, except that no State may 

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

4 (b) FUNDS TO LOCAL EDUCATIONAL AGENCIES.— 

5 (1) FORMULA SUBGRANTS.—From the grant 

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

7 State shall allocate at least 50 percent to local edu8 cational agencies, including charter schools that are 

9 local educational agencies, that did not receive funds 

10 under section 223(b)(1) from the Secretary, in ac11 cordance with their respective allocations under part 

12 A of title I of the ESEA for fiscal year 2013, except 

13 that no such local educational agency shall receive 

14 less than $10,000. 

15 (2) ADDITIONAL SUBGRANTS.—The State shall 

16 use any funds remaining, after reserving funds 

17 under subsection (a) and allocating funds under 

18 paragraph (1), for subgrants to local educational 

19 agencies that did not receive funds under section 

20 223(b)(1), including charter schools that are local 

21 educational agencies, to support modernization, ren22 ovation, and repair projects that the State deter23 mines, using objective criteria, are most needed in 

24 the State, with priority given to projects in rural 

25 local educational agencies. 


SSpencer on DSK4SPTVN1PROD with BILLS
27 

•HR 3555 IH

1 (c) REMAINING FUNDS.—If a local educational agen2 cy does not apply for an allocation under subsection 

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

4 use that allocation in a timely manner, the State may re5 allocate any unused portion to other local educational 

6 agencies in accordance with subsection (b). 

7 SEC. 225. STATE AND LOCAL APPLICATIONS. 

8 (a) STATE APPLICATION.—A State that desires to re9 ceive a grant under this part shall submit an application 

10 to the Secretary at such time, in such manner, and con11 taining such information and assurances as the Secretary 

12 may require, which shall include— 

13 (1) an identification of the State agency or enti14 ty that will administer the program under this part; 

15 and 

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

17 grant funds will be distributed and administered, in18 cluding— 

19 (A) how the State will determine the cri20 teria and priorities in making subgrants under 

21 section 224(b)(2); 

22 (B) any additional criteria the State will 

23 use in determining which projects it will fund 

24 under that section; 


SSpencer on DSK4SPTVN1PROD with BILLS
28 

•HR 3555 IH

1 (C) a description of how the State will con2 sider— 

3 (i) the needs of local educational 

4 agencies for assistance under this part; 

5 (ii) the impact of potential projects on 

6 job creation in the State; 

7 (iii) the fiscal capacity of local edu8 cational agencies applying for assistance; 

9 (iv) the percentage of children in 

10 those local educational agencies who are 

11 from low-income families; and 

12 (v) the potential for leveraging assist13 ance provided by the program under this 

14 part through matching or other financing 

15 mechanisms; 

16 (D) a description of how the State will en17 sure that the local educational agencies receiv18 ing subgrants meet the requirements of this 

19 part; 

20 (E) a description of how the State will en21 sure that the State and its local educational 

22 agencies meet the deadlines established in sec23 tion 228; 

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

25 priority to the use of green practices that are 


SSpencer on DSK4SPTVN1PROD with BILLS
29 

•HR 3555 IH

1 certified, verified, or consistent with any appli2 cable provisions of— 

3 (i) the LEED Green Building Rating 

4 System; 

5 (ii) Energy Star; 

6 (iii) the CHPS Criteria; 

7 (iv) Green Globes; or 

8 (v) an equivalent program adopted by 

9 the State or another jurisdiction with au10 thority over the local educational agency; 

11 (G) a description of the steps that the 

12 State will take to ensure that local educational 

13 agencies receiving subgrants under this part 

14 will adequately maintain any facilities that are 

15 modernized, renovated, or repaired with such 

16 subgrant funds; and 

17 (H) such additional information and assur18 ances as the Secretary may require. 

19 (b) LOCAL APPLICATION.—A local educational agen20 cy that is eligible under section 223(b)(1) that desires to 

21 receive a grant under this part shall submit an application 

22 to the Secretary at such time, in such manner, and con23 taining such information and assurances as the Secretary 

24 may require, which shall include— 


SSpencer on DSK4SPTVN1PROD with BILLS
30 

•HR 3555 IH

1 (1) a description of how the local educational 

2 agency will meet the deadlines and requirements of 

3 this part; 

4 (2) a description of the steps that the local edu5 cational agency will take to adequately maintain any 

6 facilities that are modernized, renovated, or repaired 

7 with funds under this part; and 

8 (3) such additional information and assurances 

9 as the Secretary may require. 

10 SEC. 226. USE OF FUNDS. 

11 (a) IN GENERAL.—Funds awarded to local edu12 cational agencies under this part shall be used only for 

13 either or both of the following modernization, renovation, 

14 or repair activities in facilities that are used for elemen15 tary or secondary education or for early learning pro16 grams: 

17 (1) Direct payments for school modernization, 

18 renovation, or repair. 

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

20 other financing instruments that are newly issued 

21 for the purpose of financing school modernization, 

22 renovation, or repair. 

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

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

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


SSpencer on DSK4SPTVN1PROD with BILLS
31 

•HR 3555 IH

1 would otherwise be expended to modernize, renovate, or 

2 repair eligible school facilities. 

3 (c) PROHIBITION.—Funds awarded to local edu4 cational agencies under this part may not be used for— 

5 (1) new construction; 

6 (2) payment of routine maintenance costs; or 

7 (3) modernization, renovation, or repair of sta8 diums or other facilities primarily used for athletic 

9 contests or exhibitions or other events for which ad10 mission is charged to the general public. 

11 SEC. 227. PRIVATE SCHOOLS. 

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

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

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

15 (1) such section 9501 shall not apply with re16 spect to the title to any real property modernized, 

17 renovated, or repaired with assistance provided 

18 under this part; 

19 (2) educational services or other benefits funded 

20 under this part for private schools shall be provided 

21 only to private, nonprofit elementary or secondary 

22 schools with a rate of child poverty of at least 40 

23 percent and may include only— 

24 (A) modifications of school facilities nec25 essary to meet the standards applicable to pubVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
32 

•HR 3555 IH

1 lic schools under the Americans with Disabil2 ities Act of 1990 (42 U.S.C. 12101 et seq.); 

3 (B) modifications of school facilities nec4 essary to meet the standards applicable to pub5 lic schools under section 504 of the Rehabilita6 tion Act of 1973 (29 U.S.C. 794); and 

7 (C) asbestos or polychlorinated biphenyls 

8 abatement or removal from school facilities; and 

9 (3) expenditures for services provided using 

10 funds made available under section 226 shall be con11 sidered equal for purposes of section 9501(a)(4) of 

12 the ESEA if the per-pupil expenditures for services 

13 described in paragraph (2) for students enrolled in 

14 private, nonprofit elementary and secondary schools 

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

16 are consistent with the per-pupil expenditures under 

17 this part for children enrolled in the public schools 

18 of the local educational agency receiving funds under 

19 this part. 

20 (b) REMAINING FUNDS.—If the expenditure for serv21 ices described in subsection (a)(2) is less than the amount 

22 calculated under subsection (a)(3) because of insufficient 

23 need for those services, the remainder shall be available 

24 to the local educational agency for modernization, renova25 tion, or repair of its school facilities. 


SSpencer on DSK4SPTVN1PROD with BILLS
33 

•HR 3555 IH

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

2 or the application thereof, to any person or circumstance 

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

4 section and the application to other persons or cir5 cumstances shall not be affected thereby. 

6 SEC. 228. ADDITIONAL PROVISIONS. 

7 (a) 24-MONTH PERIOD OF AVAILABILITY.—Funds 

8 appropriated under section 222 shall be available for obli9 gation by local educational agencies receiving grants from 

10 the Secretary under section 223(b)(1), by States reserving 

11 funds under section 224(a), and by local educational agen12 cies receiving subgrants under section 224(b)(1) only dur13 ing the period that ends 24 months after the date of enact14 ment of this Act. 

15 (b) 36-MONTH PERIOD OF AVAILABILITY.—Funds 

16 appropriated under section 222 shall be available for obli17 gation by local educational agencies receiving subgrants 

18 under section 224(b)(2) only during the period that ends 

19 36 months after the date of enactment of this Act. 

20 (c) APPLICABILITY OF GEPA.—Section 439 of the 

21 General Education Provisions Act (20 U.S.C. 1232b) shall 

22 apply to funds available under this part. 

23 (d) LIMITATION.—For purposes of section 223(b)(1), 

24 Hawaii, the District of Columbia, and the Commonwealth 

25 of Puerto Rico are not local educational agencies. 


SSpencer on DSK4SPTVN1PROD with BILLS
34 

•HR 3555 IH

1 PART II—COMMUNITY COLLEGE 

2 MODERNIZATION 

3 SEC. 229. FEDERAL ASSISTANCE FOR COMMUNITY COL4 LEGE MODERNIZATION. 

5 (a) IN GENERAL.— 

6 (1) GRANT PROGRAM.—From the amounts 

7 made available under subsection (h), the Secretary 

8 shall award grants to States to modernize, renovate, 

9 or repair existing facilities at community colleges. 

10 (2) ALLOCATION.— 

11 (A) RESERVATIONS.—Of the amount made 

12 available to carry out this section, the Secretary 

13 shall reserve— 

14 (i) up to 0.25 percent for grants to in15 stitutions that are eligible under section 

16 316 of the Higher Education Act of 1965 

17 (20 U.S.C. 1059c) to provide for mod18 ernization, renovation, and repair activities 

19 described in this section; and 

20 (ii) up to 0.25 percent for grants to 

21 the outlying areas to provide for mod22 ernization, renovation, and repair activities 

23 described in this section. 

24 (B) ALLOCATION.—After reserving funds 

25 under subparagraph (A), the Secretary shall al26 locate to each State that has an application apVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
35 

•HR 3555 IH

1 proved by the Secretary an amount that bears 

2 the same relation to any remaining funds as the 

3 total number of students in such State who are 

4 enrolled in institutions described in section 

5 230(b)(1)(A) plus the number of students who 

6 are estimated to be enrolled in and pursuing a 

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

8 master’s, professional, or other advanced degree 

9 in institutions described in section 

10 230(b)(1)(B), based on the proportion of de11 grees or certificates awarded by such institu12 tions that are not bachelor’s, master’s, profes13 sional, or other advanced degrees, as reported 

14 to the Integrated Postsecondary Data System 

15 bears to the estimated total number of such 

16 students in all States, except that no State shall 

17 receive less than $2,500,000. 

18 (C) REALLOCATION.—Amounts not allo19 cated under this section to a State because the 

20 State either did not submit an application 

21 under subsection (b), the State submitted an 

22 application that the Secretary determined did 

23 not meet the requirements of such subsection, 

24 or the State cannot demonstrate to the Sec25 retary a sufficient demand for projects to warVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
36 

•HR 3555 IH

1 rant the full allocation of the funds, shall be 

2 proportionately reallocated under this para3 graph to the other States that have a dem4 onstrated need for, and are receiving, alloca5 tions under this section. 

6 (D) STATE ADMINISTRATION.—A State 

7 that receives a grant under this section may use 

8 not more than one percent of that grant to ad9 minister it, except that no State may use more 

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

11 (3) SUPPLEMENT, NOT SUPPLANT.—Funds 

12 made available under this section shall be used to 

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

14 and local funds that would otherwise be expended to 

15 modernize, renovate, or repair existing community 

16 college facilities. 

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

18 grant under this section shall submit an application to the 

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

20 such information and assurances as the Secretary may re21 quire. Such application shall include a description of— 

22 (1) how the funds provided under this section 

23 will improve instruction at community colleges in the 

24 State and will improve the ability of those colleges 


SSpencer on DSK4SPTVN1PROD with BILLS
37 

•HR 3555 IH

1 to educate and train students to meet the workforce 

2 needs of employers in the State; 

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

4 estimated number of persons to be employed in the 

5 project; and 

6 (3) the cost of each project and the total 

7 amount of funds requested for each project and for 

8 all projects. 

9 (c) PROHIBITED USES OF FUNDS.— 

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

11 this section may be used for— 

12 (A) payment of routine maintenance costs; 

13 (B) construction, modernization, renova14 tion, or repair of stadiums or other facilities 

15 primarily used for athletic contests or exhibi16 tions or other events for which admission is 

17 charged to the general public; or 

18 (C) construction, modernization, renova19 tion, or repair of facilities— 

20 (i) used for sectarian instruction, reli21 gious worship, or a school or department 

22 of divinity; or 

23 (ii) in which a substantial portion of 

24 the functions of the facilities are subsumed 

25 in a religious mission. 


SSpencer on DSK4SPTVN1PROD with BILLS
38 

•HR 3555 IH

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

2 awarded to a four-year public institution of higher 

3 education under this section may be used for any fa4 cility, service, or program of the institution that is 

5 not available to students who are pursuing a degree 

6 or certificate that is not a bachelor’s, master’s, pro7 fessional, or other advanced degree. 

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

9 community college projects under this section, the State 

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

11 project involves activities that are certified, verified, or 

12 consistent with the applicable provisions of— 

13 (1) the LEED Green Building Rating System; 

14 (2) Energy Star; 

15 (3) the CHPS Criteria, as applicable; 

16 (4) Green Globes; or 

17 (5) an equivalent program adopted by the State 

18 or the State higher education agency that includes 

19 a verifiable method to demonstrate compliance with 

20 such program. 

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

22 General Education Provisions Act (20 U.S.C. 1232b) shall 

23 apply to funds available under this section. 

24 (f) REPORTS BY THE STATES.—Each State that re25 ceives a grant under this section shall, not later than SepVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
39 

•HR 3555 IH

1 tember 30, 2016, and annually thereafter for each fiscal 

2 year in which the State expends funds received under this 

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

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

5 grant was, or will be, used; 

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

7 the assistance provided to each community college 

8 under this section; and 

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

10 funded under this section. 

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

12 shall submit to the authorizing committees (as defined in 

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

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

15 this section, including the information described in sub16 section (f). 

17 (h) AVAILABILITY OF FUNDS.— 

18 (1) There are authorized to be appropriated, 

19 and there are appropriated, to carry out this section 

20 (in addition to any other amounts appropriated to 

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

22 Treasury not otherwise appropriated), 

23 $5,000,000,000 for fiscal year 2016. 

24 (2) Funds appropriated under this subsection 

25 shall be available for obligation by community colVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
40 

•HR 3555 IH

1 leges only during the period that ends 36 months 

2 after the date of enactment of this Act. 

3 PART III—DEFINITIONS 

4 SEC. 230. DEFINITIONS. 

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

6 this subtitle, the terms ‘‘local educational agency’’, ‘‘Sec7 retary’’, and ‘‘State educational agency’’ have the mean8 ings given those terms in section 9101 of the Elementary 

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

10 (b) ADDITIONAL DEFINITIONS.—The following defi11 nitions apply to this title: 

12 (1) COMMUNITY COLLEGE.—The term ‘‘commu13 nity college’’ means— 

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

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

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

17 (B) an institution of higher education (as 

18 defined in section 101 of the Higher Education 

19 Act of 1965 (20 U.S.C. 1001)) that awards a 

20 significant number of degrees and certificates, 

21 as determined by the Secretary, that are not— 

22 (i) bachelor’s degrees (or an equiva23 lent); or 

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

25 advanced degrees. 


SSpencer on DSK4SPTVN1PROD with BILLS
41 

•HR 3555 IH

1 (2) CHPS CRITERIA.—The term ‘‘CHPS Cri2 teria’’ means the green building rating program de3 veloped by the Collaborative for High Performance 

4 Schools. 

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

6 means the Energy Star program of the United 

7 States Department of Energy and the United States 

8 Environmental Protection Agency. 

9 (4) GREEN GLOBES.—The term ‘‘Green 

10 Globes’’ means the Green Building Initiative envi11 ronmental design and rating system referred to as 

12 Green Globes. 

13 (5) LEED GREEN BUILDING RATING SYS14 TEM.—The term ‘‘LEED Green Building Rating 

15 System’’ means the United States Green Building 

16 Council Leadership in Energy and Environmental 

17 Design green building rating standard referred to as 

18 the LEED Green Building Rating System. 

19 (6) MODERNIZATION, RENOVATION, AND RE20 PAIR.—The term ‘‘modernization, renovation, and 

21 repair’’ means— 

22 (A) comprehensive assessments of facili23 ties, including indoor air-quality assessments, to 

24 identify— 


SSpencer on DSK4SPTVN1PROD with BILLS
42 

•HR 3555 IH

1 (i) facility conditions or deficiencies 

2 that could adversely affect student and 

3 staff health, safety, performance, or pro4 ductivity or energy, water, or materials ef5 ficiency; and 

6 (ii) needed facility improvements; 

7 (B) repairing, replacing, or installing roofs 

8 (which may be extensive, intensive, or semi-in9 tensive ‘‘green’’ roofs); electrical wiring; water 

10 supply and plumbing systems, sewage systems, 

11 storm water runoff systems, lighting systems 

12 (or components of such systems); or building 

13 envelope, windows, ceilings, flooring, or doors, 

14 including security doors; 

15 (C) repairing, replacing, or installing heat16 ing, ventilation, or air conditioning systems, or 

17 components of those systems (including insula18 tion) to improve energy efficiency; 

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

20 and safety codes, including professional installa21 tion of fire and life safety alarms, and mod22 ernizations, renovations, and repairs that en23 sure that facilities are prepared for such emer24 gencies as acts of terrorism, campus violence, 

25 and natural disasters, such as improving buildVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
43 

•HR 3555 IH

1 ing infrastructure to accommodate security 

2 measures and installing or upgrading tech3 nology to ensure that a school or incident is 

4 able to respond to such emergencies; 

5 (E) making modifications necessary to 

6 make educational facilities accessible in compli7 ance with the Americans with Disabilities Act 

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

9 504 of the Rehabilitation Act of 1973 (29 

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

11 shall not be the primary use of a grant or 

12 subgrant; 

13 (F) abatement, removal, or interim con14 trols of asbestos, polychlorinated biphenyls, 

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

16 lead-based paint hazards; 

17 (G) retrofitting necessary to increase en18 ergy efficiency; 

19 (H) measures, such as selection and sub20 stitution of products and materials, and imple21 mentation of improved maintenance and oper22 ational procedures, such as ‘‘green cleaning’’ 

23 programs, to reduce or eliminate potential stu24 dent or staff exposure to— 

25 (i) volatile organic compounds; 


SSpencer on DSK4SPTVN1PROD with BILLS
44 

•HR 3555 IH

1 (ii) particles such as dust and pollens; 

2 or 

3 (iii) combustion gases; 

4 (I) modernization, renovation, or repair 

5 necessary to reduce the consumption of coal, 

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

7 (J) installation or upgrading of educational 

8 technology infrastructure; 

9 (K) installation or upgrading of renewable 

10 energy generation and heating systems, includ11 ing solar, photovoltaic, wind, biomass (including 

12 wood pellet and woody biomass), waste-to-en13 ergy, solar-thermal, and geothermal systems, 

14 and energy audits; 

15 (L) modernization, renovation, or repair 

16 activities related to energy efficiency and renew17 able energy, and improvements to building in18 frastructures to accommodate bicycle and pe19 destrian access; 

20 (M) ground improvements, storm water 

21 management, landscaping, and environmental 

22 clean-up when necessary; 

23 (N) other modernization, renovation, or re24 pair to— 


SSpencer on DSK4SPTVN1PROD with BILLS
45 

•HR 3555 IH

1 (i) improve teachers’ ability to teach 

2 and students’ ability to learn; 

3 (ii) ensure the health and safety of 

4 students and staff; or 

5 (iii) improve classroom, laboratory, 

6 and vocational facilities in order to en7 hance the quality of science, technology, 

8 engineering, and mathematics instruction; 

9 and 

10 (O) required environmental remediation re11 lated to facilities modernization, renovation, or 

12 repair activities described in subparagraphs (A) 

13 through (N). 

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

15 area’’ means the U.S. Virgin Islands, Guam, Amer16 ican Samoa, the Commonwealth of the Northern 

17 Mariana Islands, and the Republic of Palau. 

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

19 the 50 States of the United States, the Common20 wealth of Puerto Rico, and the District of Columbia. 


SSpencer on DSK4SPTVN1PROD with BILLS
46 

•HR 3555 IH

1 Subtitle D—Immediate Transpor2 tation Infrastructure Invest3 ments 

4 SEC. 241. IMMEDIATE TRANSPORTATION INFRASTRUCTURE 

5 INVESTMENTS. 

6 (a) GRANTS-IN-AID FOR AIRPORTS.— 

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

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

9 carry out airport improvement under subchapter I of 

10 chapter 471 and subchapter I of chapter 475 of title 

11 49, United States Code. 

12 (2) FEDERAL SHARE; LIMITATION ON OBLIGA13 TIONS.—The Federal share payable of the costs for 

14 which a grant is made under this subsection, shall 

15 be 100 percent. The amount made available under 

16 this subsection shall not be subject to any limitation 

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

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

19 States Code. 

20 (3) DISTRIBUTION OF FUNDS.—Funds provided 

21 to the Secretary under this subsection shall not be 

22 subject to apportionment formulas, special appor23 tionment categories, or minimum percentages under 

24 chapter 471 of such title. 


SSpencer on DSK4SPTVN1PROD with BILLS
47 

•HR 3555 IH

1 (4) AVAILABILITY.—The amounts made avail2 able under this subsection shall be available for obli3 gation until the date that is 2 years after the date 

4 of the enactment of this Act. The Secretary shall ob5 ligate amounts totaling not less than 50 percent of 

6 the funds made available not later than 1 year after 

7 the date of enactment of this Act and obligate re8 maining amounts not later than 2 years after the 

9 date of enactment. 

10 (5) ADMINISTRATIVE EXPENSES.—Of the funds 

11 made available under this subsection, 0.3 percent 

12 shall be available to the Secretary for administrative 

13 expenses, shall remain available for obligation until 

14 September 30, 2016, and may be used in conjunc15 tion with funds otherwise provided for the adminis16 tration of the Grants-In-Aid for Airports program. 

17 (b) NEXT GENERATION AIR TRAFFIC CONTROL AD18 VANCEMENTS.— 

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

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

21 necessary Federal Aviation Administration capital, 

22 research, and operating costs to carry out Next Gen23 eration air traffic control system advancements. 

24 (2) AVAILABILITY.—The amounts made avail25 able under this subsection shall be available for obliVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
48 

•HR 3555 IH

1 gation until the date that is 2 years after the date 

2 of the enactment of this Act. 

3 (c) HIGHWAY INFRASTRUCTURE INVESTMENT.— 

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

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

6 for restoration, repair, construction and other activi7 ties eligible under section 133(b) of title 23, United 

8 States Code, and for passenger and freight rail 

9 transportation and port infrastructure projects eligi10 ble for assistance defined under section 

11 601(a)(12)(D) of title 23. 

12 (2) FEDERAL SHARE; LIMITATION ON OBLIGA13 TIONS.—The Federal share payable on account of 

14 any project or activity carried out with funds made 

15 available under this subsection shall be, at the op16 tion of the recipient, up to 100 percent of the total 

17 cost thereof. The amount made available under this 

18 subsection shall not be subject to any limitation on 

19 obligations for Federal-aid highways and highway 

20 safety construction programs set forth in any Act or 

21 in title 23, United States Code. 

22 (3) AVAILABILITY.—The amounts made avail23 able under this subsection shall be available for obli24 gation until the date that is 2 years after the date 

25 of the enactment of this Act. The Secretary shall obVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
49 

•HR 3555 IH

1 ligate amounts totaling not less than 50 percent of 

2 the funds made available under this subsection with3 in one year of enactment of this Act and obligate re4 maining amounts not later than 2 years after such 

5 date of enactment. 

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

7 provided in this subsection, after making the set8 asides required by paragraphs (9), (10), (11), (12), 

9 and (15), 50 percent of the funds shall be appor10 tioned to States using the formula set forth in sec11 tion 104(b)(3) of title 23, United States Code, and 

12 the remaining funds shall be apportioned to States 

13 in the same ratio as the obligation limitation for fis14 cal year 2010 was distributed among the States in 

15 accordance with the formula specified in section 

16 120(a)(6) of division A of Public Law 111–117. 

17 (5) APPORTIONMENT.—Apportionments under 

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

19 after the date of the enactment of this Act. 

20 (6) REDISTRIBUTION.— 

21 (A) The Secretary shall, 180 days after the 

22 date of apportionment, withdraw from each 

23 State an amount equal to 50 percent of the 

24 funds apportioned under paragraph (4) to that 

25 State (excluding funds suballocated within the 


SSpencer on DSK4SPTVN1PROD with BILLS
50 

•HR 3555 IH

1 State) less the amount of funding obligated (ex2 cluding funds suballocated within the State), 

3 and the Secretary shall redistribute such 

4 amounts to other States that have had no funds 

5 withdrawn under this subparagraph in the man6 ner described in section 120(c) of division A of 

7 Public Law 111–117. 

8 (B) One year after the date of apportion9 ment, the Secretary shall withdraw from each 

10 recipient of funds apportioned under paragraph 

11 (4) any unobligated funds, and the Secretary 

12 shall redistribute such amounts to States that 

13 have had no funds withdrawn under this para14 graph (excluding funds suballocated within the 

15 State) in the manner described in section 

16 120(c) of division A of Public Law 111–117. 

17 (C) At the request of a State, the Sec18 retary may provide an extension of the one-year 

19 period only to the extent that the Secretary de20 termines that the State has encountered ex21 treme conditions that create an unworkable bid22 ding environment or other extenuating cir23 cumstances. Before granting an extension, the 

24 Secretary shall notify in writing the Committee 

25 on Transportation and Infrastructure of the 


SSpencer on DSK4SPTVN1PROD with BILLS
51 

•HR 3555 IH

1 House of Representatives and the Committee 

2 on Environment and Public Works of the Sen3 ate, providing a thorough justification for the 

4 extension. 

5 (7) TRANSPORTATION ENHANCEMENTS.—Three 

6 percent of the funds apportioned to a State under 

7 paragraph (4) shall be set aside for the purposes de8 scribed in section 133(d)(2) of title 23, United 

9 States Code (without regard to the comparison to 

10 fiscal year 2005). 

11 (8) SUBALLOCATION.—Thirty percent of the 

12 funds apportioned to a State under this subsection 

13 shall be suballocated within the State in the manner 

14 and for the purposes described in the first sentence 

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

16 133(d)(3)(D) of title 23, United States Code. Such 

17 suballocation shall be conducted in every State. 

18 Funds suballocated within a State to urbanized 

19 areas and other areas shall not be subject to the re20 distribution of amounts required 180 days after the 

21 date of apportionment of funds provided by para22 graph (6)(A). 

23 (9) PUERTO RICO AND TERRITORIAL HIGHWAY

24 PROGRAMS.—Of the funds provided under this sub25 section, $105,000,000 shall be set aside for the 


SSpencer on DSK4SPTVN1PROD with BILLS
52 

•HR 3555 IH

1 Puerto Rico highway program authorized under sec2 tion 165 of title 23, United States Code, and 

3 $45,000,000 shall be for the territorial highway pro4 gram authorized under section 165 of title 23, 

5 United States Code. 

6 (10) FEDERAL LANDS AND INDIAN RESERVA7 TIONS.—Of the funds provided under this sub8 section, $550,000,000 shall be set aside for invest9 ments in transportation at Indian reservations and 

10 Federal lands in accordance with the following: 

11 (A) Of the funds set aside by this para12 graph, $310,000,000 shall be for the Indian 

13 Reservation Roads program, $170,000,000 

14 shall be for the Park Roads and Parkways pro15 gram, $60,000,000 shall be for the Forest 

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

17 for the Refuge Roads program. 

18 (B) For investments at Indian reservations 

19 and Federal lands, priority shall be given to 

20 capital investments, and to projects and activi21 ties that can be completed within 2 years of en22 actment of this Act. 

23 (C) One year after the enactment of this 

24 Act, to ensure the prompt use of the funding 

25 provided for investments at Indian reservations 


SSpencer on DSK4SPTVN1PROD with BILLS
53 

•HR 3555 IH

1 and Federal lands, the Secretary shall have the 

2 authority to redistribute unobligated funds 

3 within the respective program for which the 

4 funds were appropriated. 

5 (D) Up to four percent of the funding pro6 vided for Indian Reservation Roads may be 

7 used by the Secretary of the Interior for pro8 gram management and oversight and project-re9 lated administrative expenses. 

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

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

12 for the development and administration of transpor13 tation training programs under section 140(b) title 

14 23, United States Code. 

15 (A) Funds set aside under this subsection 

16 shall be competitively awarded and used for the 

17 purpose of providing training, apprenticeship 

18 (including Registered Apprenticeship), skill de19 velopment, and skill improvement programs, as 

20 well as summer transportation institutes and 

21 may be transferred to, or administered in part22 nership with, the Secretary of Labor and shall 

23 demonstrate to the Secretary of Transportation 

24 program outcomes, including— 


SSpencer on DSK4SPTVN1PROD with BILLS
54 

•HR 3555 IH

1 (i) impact on areas with transpor2 tation workforce shortages; 

3 (ii) diversity of training participants; 

4 (iii) number of participants obtaining 

5 certifications or credentials required for 

6 specific types of employment; 

7 (iv) employment outcome metrics, 

8 such as job placement and job retention 

9 rates, established in consultation with the 

10 Secretary of Labor and consistent with 

11 metrics used by programs under the Work12 force Investment Act; 

13 (v) to the extent practical, evidence 

14 that the program did not preclude workers 

15 that participate in training or apprentice16 ship activities under the program from 

17 being referred to, or hired on, projects 

18 funded under this chapter; and 

19 (vi) identification of areas of collabo20 ration with the Department of Labor pro21 grams, including co-enrollment. 

22 (B) To be eligible to receive a competitively 

23 awarded grant under this subsection, a State 

24 must certify that at least 0.1 percent of the 

25 amounts apportioned under the Surface TransVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
55 

•HR 3555 IH

1 portation Program and Bridge Program will be 

2 obligated in the first fiscal year after the date 

3 of enactment of this Act for job training activi4 ties consistent with section 140(b) of title 23, 

5 United States Code. 

6 (12) DISADVANTAGED BUSINESS ENTER7 PRISES.—Of the funds provided under this sub8 section, $10,000,000 shall be set aside for training 

9 programs and assistance programs under section 

10 140(c) of title 23, United States Code. Funds set 

11 aside under this paragraph should be allocated to 

12 businesses that have proven success in adding staff 

13 while effectively completing projects. 

14 (13) STATE PLANNING AND OVERSIGHT EX15 PENSES.—Of amounts apportioned under paragraph 

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

17 percent for activities related to projects funded 

18 under this subsection, including activities eligible 

19 under sections 134 and 135 of title 23, United 

20 States Code, State administration of subgrants, and 

21 State oversight of subrecipients. 

22 (14) CONDITIONS.— 

23 (A) Funds made available under this sub24 section shall be administered as if apportioned 

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


SSpencer on DSK4SPTVN1PROD with BILLS
56 

•HR 3555 IH

1 except for funds made available for investments 

2 in transportation at Indian reservations and 

3 Federal lands, and for the territorial highway 

4 program, which shall be administered in accord5 ance with chapter 2 of title 23, United States 

6 Code, and except for funds made available for 

7 disadvantaged business enterprises bonding as8 sistance, which shall be administered in accord9 ance with subpart A of part 26 of title 49, Code 

10 of Federal Regulations. 

11 (B) Funds made available under this sub12 section shall not be obligated for the purposes 

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

14 United States Code. 

15 (C) Funding provided under this sub16 section shall be in addition to any and all funds 

17 provided for fiscal years 2014 and 2015 in any 

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

19 not affect the distribution of funds provided for 

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

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

22 shall apply to funds apportioned under this sub23 section. 

24 (15) OVERSIGHT.—The Administrator of the 

25 Federal Highway Administration may set aside up 


SSpencer on DSK4SPTVN1PROD with BILLS
57 

•HR 3555 IH

1 to 0.15 percent of the funds provided under this 

2 subsection to fund the oversight by the Adminis3 trator of projects and activities carried out with 

4 funds made available to the Federal Highway Ad5 ministration in this Act, and such funds shall be 

6 available through September 30, 2018. 

7 (d) CAPITAL ASSISTANCE FOR HIGH-SPEED RAIL

8 CORRIDORS AND INTERCITY PASSENGER RAIL SERV9 ICE.— 

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

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

12 grants for high-speed rail projects as authorized 

13 under sections 26104 and 26106 of title 49, United 

14 States Code, capital investment grants to support 

15 intercity passenger rail service as authorized under 

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

17 congestion grants as authorized under section 24105 

18 of title 49, United States Code, and to enter into co19 operative agreements for these purposes as author20 ized, except that the Administrator of the Federal 

21 Railroad Administration may retain up to one per22 cent of the funds provided under this heading to 

23 fund the award and oversight by the Administrator 

24 of grants made under this subsection, which retained 


SSpencer on DSK4SPTVN1PROD with BILLS
58 

•HR 3555 IH

1 amount shall remain available for obligation until 

2 September 30, 2018. 

3 (2) AVAILABILITY.—The amounts made avail4 able under this subsection shall be available for obli5 gation until the date that is 2 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 not later that 1 year of the 

9 date of enactment of this Act and obligate remaining 

10 amounts not later than 2 years after the date of 

11 such enactment. 

12 (3) FEDERAL SHARE.—The Federal share pay13 able of the costs for which a grant or cooperative 

14 agreements is made under this subsection shall be, 

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

16 (4) INTERIM GUIDANCE.—The Secretary shall 

17 issue interim guidance to applicants covering appli18 cation procedures and administer the grants pro19 vided under this subsection pursuant to that guid20 ance until final regulations are issued. 

21 (5) INTERCITY PASSENGER RAIL CORRIDORS.— 

22 Not less than 85 percent of the funds provided 

23 under this subsection shall be for cooperative agree24 ments that lead to the development of entire segVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
59 

•HR 3555 IH

1 ments or phases of intercity or high-speed rail cor2 ridors. 

3 (6) CONDITIONS.— 

4 (A) In addition to the provisions of title 

5 49, United States Code, that apply to each of 

6 the individual programs funded under this sub7 section, sections 24402(a)(2), 24402(i), and 

8 24403 (a) and (c) of title 49, United States 

9 Code, shall also apply to the provision of funds 

10 provided under this subsection. 

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

12 plan developed under chapter 227 of title 49, 

13 United States Code, to be eligible for assistance 

14 under this subsection. 

15 (C) Recipients of grants under this para16 graph shall conduct all procurement trans17 actions using such grant funds in a manner 

18 that provides full and open competition, as de19 termined by the Secretary, in compliance with 

20 existing labor agreements. 

21 (e) CAPITAL GRANTS TO THE NATIONAL RAILROAD

22 PASSENGER CORPORATION.— 

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

24 $2,000,000,000 to enable the Secretary of Transpor25 tation to make capital grants to the National RailVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
60 

•HR 3555 IH

1 road Passenger Corporation (Amtrak), as authorized 

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

3 and Improvement Act of 2008 (Public Law 110– 

4 432). 

5 (2) AVAILABILITY.—The amounts made avail6 able under this subsection shall be available for obli7 gation until the date that is 2 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 not later than 1 year after 

11 the date of enactment of this Act and obligate re12 maining amounts not later than 2 years after date 

13 of such enactment. 

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

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

16 rehabilitation, or upgrade of railroad assets or infra17 structure, and for capital projects that expand pas18 senger rail capacity including the rehabilitation of 

19 rolling stock. 

20 (4) CONDITIONS.— 

21 (A) None of the funds under this sub22 section shall be used to subsidize the operating 

23 losses of Amtrak. 


SSpencer on DSK4SPTVN1PROD with BILLS
61 

•HR 3555 IH

1 (B) The funds provided under this sub2 section shall be awarded not later than 90 days 

3 after the date of enactment of this Act. 

4 (C) The Secretary shall take measures to 

5 ensure that projects funded under this sub6 section shall be completed within 2 years of 

7 date of enactment of this Act, and shall serve 

8 to supplement and not supplant planned ex9 penditures for such activities from other Fed10 eral, State, local and corporate sources. The 

11 Secretary shall certify to the House and Senate 

12 Committees on Appropriations in writing com13 pliance with the preceding sentence. 

14 (5) OVERSIGHT.—The Administrator of the 

15 Federal Railroad Administration may set aside 0.5 

16 percent of the funds provided under this subsection 

17 to fund the oversight by the Administrator of 

18 projects and activities carried out with funds made 

19 available in this subsection, and such funds shall be 

20 available through September 30, 2018. 

21 (f) TRANSIT CAPITAL ASSISTANCE.— 

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

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

24 grants for transit capital assistance grants as de25 fined by section 5302(a)(1) of title 49, United 


SSpencer on DSK4SPTVN1PROD with BILLS
62 

•HR 3555 IH

1 States Code. Notwithstanding any provision of chap2 ter 53 of title 49, a recipient of funding under this 

3 subsection may use up to 10 percent of the amount 

4 provided for the operating costs of equipment and 

5 facilities for use in public transportation or for other 

6 eligible activities. 

7 (2) FEDERAL SHARE; LIMITATION ON OBLIGA8 TIONS.—The applicable requirements of chapter 53 

9 of title 49, United States Code, shall apply to fund10 ing provided under this subsection, except that the 

11 Federal share of the costs for which any grant is 

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

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

14 available under this subsection shall not be subject 

15 to any limitation on obligations for transit programs 

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

17 (3) AVAILABILITY.—The amounts made avail18 able under this subsection shall be available for obli19 gation until the date that is 2 years after the date 

20 of the enactment of this Act. The Secretary shall ob21 ligate amounts totaling not less than 50 percent of 

22 the funds made available within 1 year after the 

23 date of enactment of this Act and obligate remaining 

24 amounts not later than 2 years after date of such 

25 enactment. 


SSpencer on DSK4SPTVN1PROD with BILLS
63 

•HR 3555 IH

1 (4) DISTRIBUTION OF FUNDS.—The Secretary 

2 of Transportation shall— 

3 (A) provide 80 percent of the funds appro4 priated under this subsection for grants under 

5 section 5307 of title 49, United States Code, 

6 and apportion such funds in accordance with 

7 section 5336 of such title; 

8 (B) provide 10 percent of the funds appro9 priated under this subsection in accordance 

10 with section 5340 of such title; and 

11 (C) provide 10 percent of the funds appro12 priated under this subsection for grants under 

13 section 5311 of title 49, United States Code, 

14 and apportion such funds in accordance with 

15 such section. 

16 (5) APPORTIONMENT.—The funds apportioned 

17 under this subsection shall be apportioned not later 

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

19 Act. 

20 (6) REDISTRIBUTION.— 

21 (A) The Secretary shall, 180 days after the 

22 date of apportionment, under this subsection, 

23 withdraw from each urbanized area or State an 

24 amount equal to 50 percent of the funds appor25 tioned to such urbanized areas or States less 


SSpencer on DSK4SPTVN1PROD with BILLS
64 

•HR 3555 IH

1 the amount of funding obligated, and the Sec2 retary shall redistribute such amounts to other 

3 urbanized areas or States that have had no 

4 funds withdrawn under this proviso utilizing 

5 whatever method the Secretary considers appro6 priate to ensure that all funds redistributed 

7 under this proviso shall be utilized promptly. 

8 (B) One year following the date of appor9 tionment, the Secretary shall withdraw from 

10 each urbanized area or State any unobligated 

11 funds, and the Secretary shall redistribute such 

12 amounts to other urbanized areas or States 

13 that have had no funds withdrawn under this 

14 proviso utilizing whatever method the Secretary 

15 deems appropriate to ensure that all funds re16 distributed under this proviso shall be utilized 

17 promptly. 

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

19 State, the Secretary of Transportation may pro20 vide an extension of such 1-year period if the 

21 Secretary determines that the urbanized area or 

22 State has encountered an unworkable bidding 

23 environment or other extenuating cir24 cumstances. Before granting an extension, the 

25 Secretary shall notify in writing the Committee 


SSpencer on DSK4SPTVN1PROD with BILLS
65 

•HR 3555 IH

1 on Transportation and Infrastructure of the 

2 House of Representatives and the Committee 

3 on Banking, Housing, and Urban Affairs of the 

4 Senate, providing a thorough justification for 

5 the extension. 

6 (7) CONDITIONS.— 

7 (A) Of the funds provided for section 5311 

8 of title 49, United States Code, 2.5 percent 

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

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

11 shall apply to funds appropriated under this 

12 subsection. 

13 (C) The funds appropriated under this 

14 subsection shall not be commingled with any 

15 prior year funds. 

16 (8) OVERSIGHT.—Notwithstanding any other 

17 provision of law, 0.3 percent of the funds provided 

18 for grants under section 5307 and section 5340, and 

19 0.3 percent of the funds provided for grants under 

20 section 5311, shall be available for administrative 

21 expenses and program management oversight, and 

22 such funds shall be available through September 30, 

23 2017. 

24 (g) STATE OF GOOD REPAIR.— 


SSpencer on DSK4SPTVN1PROD with BILLS
66 

•HR 3555 IH

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

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

3 capital expenditures as authorized by paragraphs (2) 

4 and (3) of section 5309(b) of title 49, United States 

5 Code. 

6 (2) FEDERAL SHARE.—The applicable require7 ments of chapter 53 of title 49, United States Code, 

8 shall apply, except that the Federal share of the 

9 costs for which a grant is made under this sub10 section shall be, at the option of the recipient, up to 

11 100 percent. 

12 (3) AVAILABILITY.—The amounts made avail13 able under this subsection shall be available for obli14 gation until the date that is two years after the date 

15 of the enactment of this Act. The Secretary shall ob16 ligate amounts totaling not less than 50 percent of 

17 the funds made available within 1 year after the 

18 date of enactment and obligate remaining amounts 

19 not later than 2 years after the date of such enact20 ment. 

21 (4) DISTRIBUTION OF FUNDS.— 

22 (A) The Secretary of Transportation shall 

23 apportion not less than 75 percent of the funds 

24 under this subsection for the modernization of 

25 fixed guideway systems, pursuant to the forVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
67 

•HR 3555 IH

1 mula set forth in section 5336(b) title 49, 

2 United States Code, other than subsection 

3 (b)(2)(A)(ii). 

4 (B) Of the funds appropriated under this 

5 subsection, not less than 25 percent shall be 

6 available for the restoration or replacement of 

7 existing public transportation assets related to 

8 bus systems, pursuant to the formula set forth 

9 in section 5336 other than subsection (b). 

10 (5) APPORTIONMENT.—The funds made avail11 able under this subsection shall be apportioned not 

12 later than 30 days after the date of the enactment 

13 of this Act. 

14 (6) REDISTRIBUTION.— 

15 (A) The Secretary shall, 180 days after the 

16 date of apportionment, withdraw from each ur17 banized area an amount equal to 50 percent of 

18 the funds apportioned to such urbanized area 

19 less the amount of funding obligated, and the 

20 Secretary shall redistribute such amounts to 

21 other urbanized areas that have had no funds 

22 withdrawn under this paragraph utilizing what23 ever method the Secretary considers appro24 priate to ensure that all funds redistributed 

25 under this paragraph shall be utilized promptly. 


SSpencer on DSK4SPTVN1PROD with BILLS
68 

•HR 3555 IH

1 (B) One year after the date of the appor2 tionment, the Secretary shall withdraw from 

3 each urbanized area any unobligated funds, and 

4 the Secretary shall redistribute such amounts to 

5 other urbanized areas that have had no funds 

6 withdrawn under this paragraph, utilizing what7 ever method the Secretary considers appro8 priate to ensure that all funds redistributed 

9 under this paragraph shall be utilized promptly. 

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

11 the Secretary may provide an extension of the 

12 1-year period if the Secretary finds that the ur13 banized area has encountered an unworkable 

14 bidding environment or other extenuating cir15 cumstances. Before granting an extension, the 

16 Secretary shall notify the Committee on Trans17 portation and Infrastructure of the House of 

18 Representatives and the Committee on Bank19 ing, Housing, and Urban Affairs of the Senate, 

20 providing a thorough justification for the exten21 sion. 

22 (7) CONDITIONS.— 

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

24 Public Law 109–59 shall apply to funds made 

25 available under this subsection. 


SSpencer on DSK4SPTVN1PROD with BILLS
69 

•HR 3555 IH

1 (B) The funds appropriated under this 

2 subsection shall not be commingled with any 

3 prior year funds. 

4 (8) OVERSIGHT.—Notwithstanding any other 

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

6 subsection shall be available for administrative ex7 penses and program management oversight and shall 

8 remain available for obligation until September 30, 

9 2016. 

10 (h) TRANSPORTATION INFRASTRUCTURE GRANTS

11 AND FINANCING.— 

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

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

14 capital investments in surface transportation infra15 structure. The Secretary shall distribute funds pro16 vided under this subsection as discretionary grants 

17 to be awarded to State and local governments or 

18 transit agencies on a competitive basis for projects 

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

20 metropolitan area, or a region. 

21 (2) FEDERAL SHARE; LIMITATION ON OBLIGA22 TIONS.—The Federal share payable of the costs for 

23 which a grant that is made under this subsection, 

24 shall be 100 percent. 


SSpencer on DSK4SPTVN1PROD with BILLS
70 

•HR 3555 IH

1 (3) AVAILABILITY.—The amounts made avail2 able under this subsection shall be available for obli3 gation until the date that is 2 years after the date 

4 of the enactment of this Act. The Secretary shall ob5 ligate amounts totaling not less than 50 percent of 

6 the funds made available not later than 1 year after 

7 the date of enactment and obligate remaining 

8 amounts not later than 2 years after such enact9 ment. 

10 (4) PROJECT ELIGIBILITY.—Projects eligible for 

11 funding provided under this subsection include— 

12 (A) highway or bridge projects eligible 

13 under title 23, United States Code, including 

14 interstate rehabilitation, improvements to the 

15 rural collector road system, the reconstruction 

16 of overpasses and interchanges, bridge replace17 ments, seismic retrofit projects for bridges, and 

18 road realignments; 

19 (B) public transportation projects eligible 

20 under chapter 53 of title 49, United States 

21 Code, including investments in projects partici22 pating in the New Starts or Small Starts pro23 grams that will expedite the completion of those 

24 projects and their entry into revenue service; 


SSpencer on DSK4SPTVN1PROD with BILLS
71 

•HR 3555 IH

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 the date of enactment of this Act. The Secretary 

24 shall require applications for funding provided under 

25 this subsection to be submitted not later than 180 


SSpencer on DSK4SPTVN1PROD with BILLS
72 

•HR 3555 IH

1 days after the publication of the criteria, and an2 nounce all projects selected to be funded from such 

3 funds not later than 1 year after the date of the en4 actment of 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 2017. 

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 Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
73 

•HR 3555 IH

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. 


SSpencer on DSK4SPTVN1PROD with BILLS
74 

•HR 3555 IH

1 (2) PROJECT STANDARDS.—Any standards es2 tablished by the Secretary under this section shall 

3 ensure that any requirements specified under sub4 section (c)(1)— 

5 (A) do not compromise the quality of the 

6 project; 

7 (B) are reasonable in scope and applica8 tion; 

9 (C) do not unreasonably delay the comple10 tion of the project; and 

11 (D) do not unreasonably increase the cost 

12 of the project. 

13 (E) AVAILABLE PROGRAMS.—The Sec14 retary shall assist recipients who wish to estab15 lish training programs that satisfy the provi16 sions of subsection (c)(11) by making available 

17 its qualifying workforce and training develop18 ment programs. 

19 (3) IMPLEMENTING REGULATIONS.—The Sec20 retary shall promulgate final regulations to imple21 ment the authority of this subsection. 

22 (j) ADMINISTRATIVE PROVISIONS.— 

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

24 conducted using funds provided under this subtitle 


SSpencer on DSK4SPTVN1PROD with BILLS
75 

•HR 3555 IH

1 shall comply with the requirements of subchapter IV 

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

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

4 A of the American Recovery and Reinvestment Act 

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

6 conducted using funds provided under this subtitle. 

7 Subtitle E—Building and Upgrad8 ing Infrastructure for Long9 Term Development 

10 SEC. 242. SHORT TITLE. 

11 This subtitle may be cited as the ‘‘Building and Up12 grading Infrastructure for Long-Term Development Act’’. 

13 SEC. 243. FINDINGS AND PURPOSE. 

14 (a) FINDINGS.—Congress finds that— 

15 (1) infrastructure has always been a vital ele16 ment of the economic strength of the United States 

17 and a key indicator of the international leadership of 

18 the United States; 

19 (2) the Erie Canal, the Hoover Dam, the rail20 roads, and the interstate highway system are all tes21 taments to American ingenuity and have helped pro22 pel and maintain the United States as the world’s 

23 largest economy; 

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

25 Global Competitiveness Report, the United States 


SSpencer on DSK4SPTVN1PROD with BILLS
76 

•HR 3555 IH

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

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

3 overall infrastructure’’ category of the same report, 

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

5 (4) according to the World Bank’s 2010 Logis6 tic Performance Index, the capacity of countries to 

7 efficiently move goods and connect manufacturers 

8 and consumers with international markets is improv9 ing around the world, and the United States now 

10 ranks seventh in the world in logistics-related infra11 structure behind countries from both Europe and 

12 Asia; 

13 (5) according to a January 2009 report from 

14 the University of Massachusetts/Alliance for Amer15 ican Manufacturing entitled ‘‘Employment, Produc16 tivity and Growth,’’ infrastructure investment is a 

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

18 (6) according to the American Society of Civil 

19 Engineers, the current condition of the infrastruc20 ture in the United States earns a grade point aver21 age of D, and an estimated $2,200,000,000,000 in22 vestment is needed over the next 5 years to bring 

23 American infrastructure up to adequate condition; 

24 (7) according to the National Surface Trans25 portation Policy and Revenue Study Commission, 


SSpencer on DSK4SPTVN1PROD with BILLS
77 

•HR 3555 IH

1 $225,000,000,000 is needed annually from all 

2 sources for the next 50 years to upgrade the United 

3 States surface transportation system to a state of 

4 good repair and create a more advanced system; 

5 (8) the current infrastructure financing mecha6 nisms of the United States, both on the Federal and 

7 State level, will fail to meet current and foreseeable 

8 demands and will create large funding gaps; 

9 (9) published reports state that there may not 

10 be enough demand for municipal bonds to maintain 

11 the same level of borrowing at the same rates, re12 sulting in significantly decreased infrastructure in13 vestment at the State and local level; 

14 (10) current funding mechanisms are not read15 ily scalable and do not— 

16 (A) serve large in-State or cross jurisdic17 tion infrastructure projects, projects of regional 

18 or national significance, or projects that cross 

19 sector silos; 

20 (B) sufficiently catalyze private sector in21 vestment; or 

22 (C) ensure the optimal return on public re23 sources; 

24 (11) although grant programs of the United 

25 States Government must continue to play a central 


SSpencer on DSK4SPTVN1PROD with BILLS
78 

•HR 3555 IH

1 role in financing the transportation, environment, 

2 and energy infrastructure needs of the United 

3 States, current and foreseeable demands on existing 

4 Federal, State, and local funding for infrastructure 

5 expansion clearly exceed the resources to support 

6 these programs by margins wide enough to prompt 

7 serious concerns about the United States ability to 

8 sustain long-term economic development, produc9 tivity, and international competitiveness; 

10 (12) the capital markets, including pension 

11 funds, private equity funds, mutual funds, sovereign 

12 wealth funds, and other investors, have a growing 

13 interest in infrastructure investment and represent 

14 hundreds of billions of dollars of potential invest15 ment; and 

16 (13) the establishment of a United States Gov17 ernment-owned, independent, professionally managed 

18 institution that could provide credit support to quali19 fied infrastructure projects of regional and national 

20 significance, making transparent merit-based invest21 ment decisions based on the commercial viability of 

22 infrastructure projects, would catalyze the participa23 tion of significant private investment capital. 

24 (b) PURPOSE.—The purpose of this Act is to facili25 tate investment in, and long-term financing of, economiVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00078 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
79 

•HR 3555 IH

1 cally viable infrastructure projects of regional or national 

2 significance in a manner that both complements existing 

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

4 projects and introduces a merit-based system for financing 

5 such projects, in order to mobilize significant private sec6 tor investment, create jobs, and ensure United States com7 petitiveness through an institution that limits the need for 

8 ongoing Federal funding. 

9 SEC. 244. DEFINITIONS. 

10 For purposes of this Act, the following definitions 

11 shall apply: 

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

13 American Infrastructure Financing Authority estab14 lished under this Act. 

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

16 means a trust in which the beneficiary has no knowl17 edge of the specific holdings and no rights over how 

18 those holdings are managed by the fiduciary of the 

19 trust prior to the dissolution of the trust. 

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

21 of Directors’’ means Board of Directors of AIFA. 

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

23 means the Chairperson of the Board of Directors of 

24 AIFA. 


SSpencer on DSK4SPTVN1PROD with BILLS
80 

•HR 3555 IH

1 (5) CHIEF EXECUTIVE OFFICER.—The term 

2 ‘‘chief executive officer’’ means the chief executive 

3 officer of AIFA, appointed under section 247. 

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

5 meaning as in section 502 of the Federal Credit Re6 form Act of 1990 (2 U.S.C. 661a). 

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

8 the same meaning as in section 502 of the Federal 

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

10 (8) ELIGIBLE ENTITY.—The term ‘‘eligible enti11 ty’’ means an individual, corporation, partnership 

12 (including a public-private partnership), joint ven13 ture, trust, State, or other non-Federal govern14 mental entity, including a political subdivision or any 

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

16 (9) INFRASTRUCTURE PROJECT.— 

17 (A) IN GENERAL.—The term ‘‘eligible in18 frastructure project’’ means any non-Federal 

19 transportation, water, or energy infrastructure 

20 project, or an aggregation of such infrastruc21 ture projects, as provided in this Act. 

22 (B) TRANSPORTATION INFRASTRUCTURE

23 PROJECT.—The term ‘‘transportation infra24 structure project’’ means the construction, alVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00080 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
81 

•HR 3555 IH

1 teration, or repair, including the facilitation of 

2 intermodal transit, of the following subsectors: 

3 (i) Highway or road. 

4 (ii) Bridge. 

5 (iii) Mass transit. 

6 (iv) Inland waterways. 

7 (v) Commercial ports. 

8 (vi) Airports. 

9 (vii) Air traffic control systems. 

10 (viii) Passenger rail, including high11 speed rail. 

12 (ix) Freight rail systems. 

13 (C) WATER INFRASTRUCTURE PROJECT.— 

14 The term ‘‘water infrastructure project’’ means 

15 the construction, consolidation, alteration, or 

16 repair of the following subsectors: 

17 (i) Waterwaste treatment facility. 

18 (ii) Storm water management system. 

19 (iii) Dam. 

20 (iv) Solid waste disposal facility. 

21 (v) Drinking water treatment facility. 

22 (vi) Levee. 

23 (vii) Open space management system. 

24 (D) ENERGY INFRASTRUCTURE

25 PROJECT.—The term ‘‘energy infrastructure 


SSpencer on DSK4SPTVN1PROD with BILLS
82 

•HR 3555 IH

1 project’’ means the construction, alteration, or 

2 repair of the following subsectors: 

3 (i) Pollution reduced energy genera4 tion. 

5 (ii) Transmission and distribution. 

6 (iii) Storage. 

7 (iv) Energy efficiency enhancements 

8 for buildings, including public and com9 mercial buildings. 

10 (E) BOARD AUTHORITY TO MODIFY SUB11 SECTORS.—The Board of Directors may make 

12 modifications, at the discretion of the Board, to 

13 the subsectors described in this paragraph by a 

14 vote of not fewer than 5 of the voting members 

15 of the Board of Directors. 

16 (10) INVESTMENT PROSPECTUS.— 

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

18 means the processes and publications described 

19 below that will guide the priorities and strategic 

20 focus for AIFA’s investments. The investment 

21 prospectus shall follow rulemaking procedures 

22 under section 553 of title 5, United States 

23 Code. 

24 (B) AIFA shall publish a detailed descrip25 tion of its strategy in an investment prospectus 


SSpencer on DSK4SPTVN1PROD with BILLS
83 

•HR 3555 IH

1 within one year of the enactment of this sub2 chapter. The investment prospectus shall— 

3 (i) specify what AIFA shall consider 

4 significant to the economic competitiveness 

5 of the United States or a region thereof in 

6 a manner consistent with the primary ob7 jective; 

8 (ii) specify the priorities and strategic 

9 focus of AIFA in forwarding its strategic 

10 objectives and carrying out AIFA strategy; 

11 (iii) specify the priorities and strategic 

12 focus of AIFA in promoting greater effi13 ciency in the movement of freight; 

14 (iv) specify the priorities and strategic 

15 focus of AIFA in promoting the use of in16 novation and best practices in the plan17 ning, design, development and delivery of 

18 projects; 

19 (v) describe in detail the framework 

20 and methodology for calculating applica21 tion qualification scores and associated 

22 ranges as specified in this subchapter, 

23 along with the data to be requested from 

24 applicants and the mechanics of calculaVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00083 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
84 

•HR 3555 IH

1 tions to be applied to that data to deter2 mine qualification scores and ranges; 

3 (vi) describe how selection criteria will 

4 be applied by the Chief Executive Officer 

5 in determining the competitiveness of an 

6 application and its qualification score and 

7 range relative to other current applications 

8 and previously funded applications; and 

9 (vii) describe how the qualification 

10 score and range methodology and project 

11 selection framework are consistent with 

12 maximizing AIFA goals in both urban and 

13 rural areas. 

14 (C) The investment prospectus and any 

15 subsequent updates thereto shall be approved 

16 by a majority vote of the Board of Directors 

17 prior to publication. 

18 (D) AIFA shall update the investment pro19 spectus on every biennial anniversary of its 

20 original publication. 

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

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

23 minus, Baa3, or higher assigned to an infrastructure 

24 project by a ratings agency. 


SSpencer on DSK4SPTVN1PROD with BILLS
85 

•HR 3555 IH

1 (12) LOAN GUARANTEE.—The term ‘‘loan guar2 antee’’ has the same meaning as in section 502 of 

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

4 661a). 

5 (13) PUBLIC-PRIVATE PARTNERSHIP.—The 

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

7 entity— 

8 (A)(i) which is undertaking the develop9 ment of all or part of an infrastructure project 

10 that will have a public benefit, pursuant to re11 quirements established in one or more contracts 

12 between the entity and a State or an instru13 mentality of a State; or 

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

15 such an infrastructure project, are subject to 

16 regulation by a State or any instrumentality of 

17 a State; 

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

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

20 in part; and 

21 (C) the participants in which include not 

22 fewer than 1 nongovernmental entity with sig23 nificant investment and some control over the 

24 project or project vehicle. 


SSpencer on DSK4SPTVN1PROD with BILLS
86 

•HR 3555 IH

1 (14) RURAL INFRASTRUCTURE PROJECT.—The 

2 term ‘‘rural infrastructure project’’ means an infra3 structure project in a rural area, as that term is de4 fined in section 343(a)(13)(A) of the Consolidated 

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

6 1991(a)(13)(A)). 

7 (15) SECRETARY.—Unless the context other8 wise requires, the term ‘‘Secretary’’ means the Sec9 retary of the Treasury or the designee thereof. 

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

11 management’’ means the chief financial officer, chief 

12 risk officer, chief compliance officer, general counsel, 

13 chief lending officer, and chief operations officer of 

14 AIFA established under section 249, and such other 

15 officers as the Board of Directors may, by majority 

16 vote, add to senior management. 

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

18 District of Columbia, Puerto Rico, Guam, American 

19 Samoa, the Virgin Islands, the Commonwealth of 

20 the Northern Mariana Islands, and any other terri21 tory of the United States. 


SSpencer on DSK4SPTVN1PROD with BILLS
87 

•HR 3555 IH

1 PART I—AMERICAN INFRASTRUCTURE 

2 FINANCING AUTHORITY 

3 SEC. 245. ESTABLISHMENT AND GENERAL AUTHORITY OF 

4 AIFA. 

5 (a) ESTABLISHMENT OF AIFA.—The American In6 frastructure Financing Authority is established as a whol7 ly owned Government corporation. 

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

9 provide direct loans and loan guarantees to facilitate infra10 structure projects that are both economically viable and 

11 of regional or national significance, and shall have such 

12 other authority, as provided in this Act. 

13 (c) INCORPORATION.— 

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

15 appointed shall be deemed the incorporator of AIFA, 

16 and the incorporation shall be held to have been ef17 fected from the date of the first meeting of the 

18 Board of Directors. 

19 (2) CORPORATE OFFICE.—AIFA shall— 

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

21 and 

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

23 be considered to be a resident of Washington, 

24 DC. 

25 (d) RESPONSIBILITY OF THE SECRETARY.—The Sec26 retary shall take such action as may be necessary to assist 


SSpencer on DSK4SPTVN1PROD with BILLS
88 

•HR 3555 IH

1 in implementing AIFA, and in carrying out the purpose 

2 of this Act. 

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

4 31, United States Code, does not apply to AIFA, unless 

5 otherwise specifically provided in this Act. 

6 SEC. 246. VOTING MEMBERS OF THE BOARD OF DIREC7 TORS. 

8 (a) VOTING MEMBERSHIP OF THE BOARD OF DIREC9 TORS.— 

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

11 Directors consisting of 7 voting members appointed 

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

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

14 from the same political party. 

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

16 of the Board of Directors shall be designated by the 

17 President to serve as Chairperson thereof. 

18 (3) CONGRESSIONAL RECOMMENDATIONS.—Not 

19 later than 30 days after the date of enactment of 

20 this Act, the majority leader of the Senate, the mi21 nority leader of the Senate, the Speaker of the 

22 House of Representatives, and the minority leader of 

23 the House of Representatives shall each submit a 

24 recommendation to the President for appointment of 


SSpencer on DSK4SPTVN1PROD with BILLS
89 

•HR 3555 IH

1 a member of the Board of Directors, after consulta2 tion with the appropriate committees of Congress. 

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

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

5 of the Board of Directors. 

6 (c) QUALIFICATIONS OF VOTING MEMBERS.—Each 

7 voting member of the Board of Directors shall— 

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

9 (2) have significant demonstrated expertise in— 

10 (A) the management and administration of 

11 a financial institution relevant to the operation 

12 of AIFA; or a public financial agency or author13 ity; 

14 (B) the financing, development, or oper15 ation of infrastructure projects; or 

16 (C) analyzing the economic benefits of in17 frastructure investment. 

18 (d) TERMS.— 

19 (1) IN GENERAL.—Except as otherwise pro20 vided in this Act, each voting member of the Board 

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

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

23 members first appointed to the Board of Directors— 


SSpencer on DSK4SPTVN1PROD with BILLS
90 

•HR 3555 IH

1 (A) the initial Chairperson and 3 of the 

2 other voting members shall each be appointed 

3 for a term of 4 years; and 

4 (B) the remaining 3 voting members shall 

5 each be appointed for a term of 2 years. 

6 (3) DATE OF INITIAL NOMINATIONS.—The ini7 tial nominations for the appointment of all voting 

8 members of the Board of Directors shall be made 

9 not later than 60 days after the date of enactment 

10 of this Act. 

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

12 the initial voting members appointed under this sec13 tion shall commence immediately upon the date of 

14 appointment, except that, for purposes of calculating 

15 the term limits specified in this subsection, the ini16 tial terms shall each be construed as beginning on 

17 January 22 of the year following the date of the ini18 tial appointment. 

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

20 a voting member of the Board of Directors shall be 

21 filled by the President, and a member appointed to 

22 fill a vacancy on the Board of Directors occurring 

23 before the expiration of the term for which the pred24 ecessor was appointed shall be appointed only for 

25 the remainder of that term. 


SSpencer on DSK4SPTVN1PROD with BILLS
91 

•HR 3555 IH

1 (e) MEETINGS.— 

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

3 provided in paragraph (3), all meetings of the Board 

4 of Directors shall be— 

5 (A) open to the public; and 

6 (B) preceded by reasonable public notice. 

7 (2) FREQUENCY.—The Board of Directors shall 

8 meet not later than 60 days after the date on which 

9 all members of the Board of Directors are first ap10 pointed, at least quarterly thereafter, and otherwise 

11 at the call of either the Chairperson or 5 voting 

12 members of the Board of Directors. 

13 (3) EXCEPTION FOR CLOSED MEETINGS.—The 

14 voting members of the Board of Directors may, by 

15 majority vote, close a meeting to the public if, dur16 ing the meeting to be closed, there is likely to be dis17 closed proprietary or sensitive information regarding 

18 an infrastructure project under consideration for as19 sistance under this Act. The Board of Directors 

20 shall prepare minutes of any meeting that is closed 

21 to the public, and shall make such minutes available 

22 as soon as practicable, not later than 1 year after 

23 the date of the closed meeting, with any necessary 

24 redactions to protect any proprietary or sensitive in25 formation. 


SSpencer on DSK4SPTVN1PROD with BILLS
92 

•HR 3555 IH

1 (4) QUORUM.—For purposes of meetings of the 

2 Board of Directors, 5 voting members of the Board 

3 of Directors shall constitute a quorum. 

4 (f) COMPENSATION OF MEMBERS.—Each voting 

5 member of the Board of Directors shall be compensated 

6 at a rate equal to the daily equivalent of the annual rate 

7 of basic pay prescribed for level III of the Executive 

8 Schedule under section 5314 of title 5, United States 

9 Code, for each day (including travel time) during which 

10 the member is engaged in the performance of the duties 

11 of the Board of Directors. 

12 (g) CONFLICTS OF INTEREST.—A voting member of 

13 the Board of Directors may not participate in any review 

14 or decision affecting an infrastructure project under con15 sideration for assistance under this Act, if the member has 

16 or is affiliated with an entity who has a financial interest 

17 in such project. 

18 SEC. 247. CHIEF EXECUTIVE OFFICER OF AIFA. 

19 (a) IN GENERAL.—The chief executive officer of 

20 AIFA shall be a nonvoting member of the Board of Direc21 tors, who shall be responsible for all activities of AIFA, 

22 and shall support the Board of Directors as set forth in 

23 this Act and as the Board of Directors deems necessary 

24 or appropriate. 


SSpencer on DSK4SPTVN1PROD with BILLS
93 

•HR 3555 IH

1 (b) APPOINTMENT AND TENURE OF THE CHIEF EX2 ECUTIVE OFFICER.— 

3 (1) IN GENERAL.—The President shall appoint 

4 the chief executive officer, by and with the advice 

5 and consent of the Senate. 

6 (2) TERM.—The chief executive officer shall be 

7 appointed for a term of 6 years. 

8 (3) VACANCIES.—Any vacancy in the office of 

9 the chief executive officer shall be filled by the Presi10 dent, and the person appointed to fill a vacancy in 

11 that position occurring before the expiration of the 

12 term for which the predecessor was appointed shall 

13 be appointed only for the remainder of that term. 

14 (c) QUALIFICATIONS.—The chief executive officer— 

15 (1) shall have significant expertise in manage16 ment and administration of a financial institution, 

17 or significant expertise in the financing and develop18 ment of infrastructure projects, or significant exper19 tise in analyzing the economic benefits of infrastruc20 ture investment; and 

21 (2) may not— 

22 (A) hold any other public office; 

23 (B) have any financial interest in an infra24 structure project then being considered by the 


SSpencer on DSK4SPTVN1PROD with BILLS
94 

•HR 3555 IH

1 Board of Directors, unless that interest is 

2 placed in a blind trust; or 

3 (C) have any financial interest in an in4 vestment institution or its affiliates or any 

5 other entity seeking or likely to seek financial 

6 assistance for any infrastructure project from 

7 AIFA, unless any such interest is placed in a 

8 blind trust for the tenure of the service of the 

9 chief executive officer plus 2 additional years. 

10 (d) RESPONSIBILITIES.—The chief executive officer 

11 shall have such executive functions, powers, and duties as 

12 may be prescribed by this Act, the bylaws of AIFA, or 

13 the Board of Directors, including— 

14 (1) responsibility for the development and im15 plementation of the strategy of AIFA, including— 

16 (A) the development and submission to the 

17 Board of Directors of the investment pro18 spectus, the annual business plans and budget; 

19 (B) the development and submission to the 

20 Board of Directors of a long-term strategic 

21 plan; and 

22 (C) the development, revision, and submis23 sion to the Board of Directors of internal poli24 cies; and 


SSpencer on DSK4SPTVN1PROD with BILLS
95 

•HR 3555 IH

1 (2) responsibility for the management and over2 sight of the daily activities, decisions, operations, 

3 and personnel of AIFA, including— 

4 (A) the appointment of senior manage5 ment, subject to approval by the voting mem6 bers of the Board of Directors, and the hiring 

7 and termination of all other AIFA personnel; 

8 (B) requesting the detail, on a reimburs9 able basis, of personnel from any Federal agen10 cy having specific expertise not available from 

11 within AIFA, following which request the head 

12 of the Federal agency may detail, on a reim13 bursable basis, any personnel of such agency 

14 reasonably requested by the chief executive offi15 cer; 

16 (C) assessing and recommending in the 

17 first instance, for ultimate approval or dis18 approval by the Board of Directors, compensa19 tion and adjustments to compensation of senior 

20 management and other personnel of AIFA as 

21 may be necessary for carrying out the functions 

22 of AIFA; 

23 (D) ensuring, in conjunction with the gen24 eral counsel of AIFA, that all activities of 


SSpencer on DSK4SPTVN1PROD with BILLS
96 

•HR 3555 IH

1 AIFA are carried out in compliance with appli2 cable law; 

3 (E) overseeing the involvement of AIFA in 

4 all projects, including— 

5 (i) developing eligible projects for 

6 AIFA financial assistance; 

7 (ii) determining the terms and condi8 tions of all financial assistance packages; 

9 (iii) monitoring all infrastructure 

10 projects assisted by AIFA, including re11 sponsibility for ensuring that the proceeds 

12 of any loan made, guaranteed, or partici13 pated in are used only for the purposes for 

14 which the loan or guarantee was made; 

15 (iv) preparing and submitting for ap16 proval by the Board of Directors the docu17 ments required under paragraph (1); and 

18 (v) ensuring the implementation of de19 cisions of the Board of Directors; and 

20 (F) such other activities as may be nec21 essary or appropriate in carrying out this Act. 

22 (e) COMPENSATION.— 

23 (1) IN GENERAL.—Any compensation assess24 ment or recommendation by the chief executive offi25 cer under this section shall be without regard to the 


SSpencer on DSK4SPTVN1PROD with BILLS
97 

•HR 3555 IH

1 provisions of chapter 51 or subchapter III of chapter 

2 53 of title 5, United States Code. 

3 (2) CONSIDERATIONS.—The compensation as4 sessment or recommendation required under this 

5 subsection shall take into account merit principles, 

6 where applicable, as well as the education, experi7 ence, level of responsibility, geographic differences, 

8 and retention and recruitment needs in determining 

9 compensation of personnel. 

10 SEC. 248. POWERS AND DUTIES OF THE BOARD OF DIREC11 TORS. 

12 The Board of Directors shall— 

13 (1) as soon as is practicable after the date on 

14 which all members are appointed, approve or dis15 approve senior management appointed by the chief 

16 executive officer; 

17 (2) not later than 180 days after the date on 

18 which all members are appointed— 

19 (A) develop and approve the bylaws of 

20 AIFA, including bylaws for the regulation of 

21 the affairs and conduct of the business of 

22 AIFA, consistent with the purpose, goals, objec23 tives, and policies set forth in this Act; 

24 (B) establish subcommittees, including an 

25 audit committee that is composed solely of 


SSpencer on DSK4SPTVN1PROD with BILLS
98 

•HR 3555 IH

1 members of the Board of Directors who are 

2 independent of the senior management of 

3 AIFA; 

4 (C) develop and approve, in consultation 

5 with senior management, a conflict-of-interest 

6 policy for the Board of Directors and for senior 

7 management; 

8 (D) approve or disapprove internal policies 

9 that the chief executive officer shall submit to 

10 the Board of Directors, including— 

11 (i) policies regarding the loan applica12 tion and approval process, including— 

13 (I) disclosure and application 

14 procedures to be followed by entities 

15 in the course of nominating infra16 structure projects for assistance under 

17 this Act; 

18 (II) guidelines for the selection 

19 and approval of projects; 

20 (III) specific criteria for deter21 mining eligibility for project selection, 

22 consistent with title II; and 

23 (IV) standardized terms and con24 ditions, fee schedules, or legal requireVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00098 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
99 

•HR 3555 IH

1 ments of a contract or program, so as 

2 to carry out this Act; and 

3 (ii) operational guidelines; and 

4 (E) approve or disapprove a multi-year or 

5 1-year business plan and budget for AIFA; 

6 (3) ensure that AIFA is at all times operated 

7 in a manner that is consistent with this Act, by— 

8 (A) monitoring and assessing the effective9 ness of AIFA in achieving its strategic goals; 

10 (B) periodically reviewing internal policies; 

11 (C) reviewing and approving annual busi12 ness plans, annual budgets, and long-term 

13 strategies submitted by the chief executive offi14 cer; 

15 (D) reviewing and approving annual re16 ports submitted by the chief executive officer; 

17 (E) engaging one or more external audi18 tors, as set forth in this Act; and 

19 (F) reviewing and approving all changes to 

20 the organization of senior management; 

21 (4) appoint and fix, by a vote of 5 of the 7 vot22 ing members of the Board of Directors, and without 

23 regard to the provisions of chapter 51 or subchapter 

24 III of chapter 53 of title 5, United States Code, the 

25 compensation and adjustments to compensation of 


SSpencer on DSK4SPTVN1PROD with BILLS
100 

•HR 3555 IH

1 all AIFA personnel, and where, in appointing and 

2 fixing any compensation or adjustments to com3 pensation under this paragraph, the Board shall— 

4 (A) consult with, and seek to maintain 

5 comparability with, other comparable Federal 

6 personnel; 

7 (B) consult with the Office of Personnel 

8 Management; and 

9 (C) carry out such duties consistent with 

10 merit principles, where applicable, as well as the 

11 education, experience, level of responsibility, ge12 ographic differences, and retention and recruit13 ment needs in determining compensation of per14 sonnel; 

15 (5) establish such other criteria, requirements, 

16 or procedures as the Board of Directors may con17 sider to be appropriate in carrying out this Act; 

18 (6) serve as the primary liaison for AIFA in 

19 interactions with Congress, the executive branch, 

20 and State and local governments, and to represent 

21 the interests of AIFA in such interactions and oth22 ers; 

23 (7) approve by a vote of 5 of the 7 voting mem24 bers of the Board of Directors any changes to the 

25 bylaws or internal policies of AIFA; 


SSpencer on DSK4SPTVN1PROD with BILLS
101 

•HR 3555 IH

1 (8) have the authority and responsibility— 

2 (A) to oversee entering into and carry out 

3 such contracts, leases, cooperative agreements, 

4 or other transactions as are necessary to carry 

5 out this Act with— 

6 (i) any Federal department or agency; 

7 (ii) any State, territory, or possession 

8 (or any political subdivision thereof, includ9 ing State infrastructure banks) of the 

10 United States; and 

11 (iii) any individual, public-private 

12 partnership, firm, association, or corpora13 tion; 

14 (B) to approve of the acquisition, lease, 

15 pledge, exchange, and disposal of real and per16 sonal property by AIFA and otherwise approve 

17 the exercise by AIFA of all of the usual inci18 dents of ownership of property, to the extent 

19 that the exercise of such powers is appropriate 

20 to and consistent with the purposes of AIFA; 

21 (C) to determine the character of, and the 

22 necessity for, the obligations and expenditures 

23 of AIFA, and the manner in which the obliga24 tions and expenditures will be incurred, allowed, 

25 and paid, subject to this Act and other Federal 


SSpencer on DSK4SPTVN1PROD with BILLS
102 

•HR 3555 IH

1 law specifically applicable to wholly owned Fed2 eral corporations; 

3 (D) to execute, in accordance with applica4 ble bylaws and regulations, appropriate instru5 ments; 

6 (E) to approve other forms of credit en7 hancement that AIFA may provide to eligible 

8 projects, as long as the forms of credit enhance9 ments are consistent with the purposes of this 

10 Act and terms set forth in title II; 

11 (F) to exercise all other lawful powers 

12 which are necessary or appropriate to carry out, 

13 and are consistent with, the purposes of AIFA; 

14 (G) to sue or be sued in the corporate ca15 pacity of AIFA in any court of competent juris16 diction; 

17 (H) to indemnify the members of the 

18 Board of Directors and officers of AIFA for 

19 any liabilities arising out of the actions of the 

20 members and officers in such capacity, in ac21 cordance with, and subject to the limitations 

22 contained in this Act; 

23 (I) to review all financial assistance pack24 ages to all eligible infrastructure projects, as 

25 submitted by the chief executive officer and to 


SSpencer on DSK4SPTVN1PROD with BILLS
103 

•HR 3555 IH

1 approve, postpone, or deny the same by major2 ity vote; 

3 (J) to review all restructuring proposals 

4 submitted by the chief executive officer, includ5 ing assignation, pledging, or disposal of the in6 terest of AIFA in a project, including payment 

7 or income from any interest owned or held by 

8 AIFA, and to approve, postpone, or deny the 

9 same by majority vote; and 

10 (K) to enter into binding commitments, as 

11 specified in approved financial assistance pack12 ages; 

13 (9) delegate to the chief executive officer those 

14 duties that the Board of Directors deems appro15 priate, to better carry out the powers and purposes 

16 of the Board of Directors under this section; and 

17 (10) to approve a maximum aggregate amount 

18 of outstanding obligations of AIFA at any given 

19 time, taking into consideration funding, and the size 

20 of AIFA’s addressable market for infrastructure 

21 projects. 

22 SEC. 249. SENIOR MANAGEMENT. 

23 (a) IN GENERAL.—Senior management shall support 

24 the chief executive officer in the discharge of the respon25 sibilities of the chief executive officer. 


SSpencer on DSK4SPTVN1PROD with BILLS
104 

•HR 3555 IH

1 (b) APPOINTMENT OF SENIOR MANAGEMENT.—The 

2 chief executive officer shall appoint such senior managers 

3 as are necessary to carry out the purpose of AIFA, as 

4 approved by a majority vote of the voting members of the 

5 Board of Directors. 

6 (c) TERM.—Each member of senior management 

7 shall serve at the pleasure of the chief executive officer 

8 and the Board of Directors. 

9 (d) REMOVAL OF SENIOR MANAGEMENT.—Any mem10 ber of senior management may be removed, either by a 

11 majority of the voting members of the Board of Directors 

12 upon request by the chief executive officer, or otherwise 

13 by vote of not fewer than 5 voting members of the Board 

14 of Directors. 

15 (e) SENIOR MANAGEMENT.— 

16 (1) IN GENERAL.—Each member of senior 

17 management shall report directly to the chief execu18 tive officer, other than the Chief Risk Officer, who 

19 shall report directly to the Board of Directors. 

20 (2) DUTIES AND RESPONSIBILITIES.— 

21 (A) CHIEF FINANCIAL OFFICER.—The 

22 Chief Financial Officer shall be responsible for 

23 all financial functions of AIFA. At the discre24 tion of the Board of Directors, specific funcVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00104 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
105 

•HR 3555 IH

1 tions of the Chief Financial Officer may be del2 egated externally. 

3 (B) CHIEF RISK OFFICER.—The Chief 

4 Risk Officer shall be responsible for all func5 tions of AIFA relating to— 

6 (i) the creation of financial, credit, 

7 and operational risk management guide8 lines and policies; 

9 (ii) credit analysis for infrastructure 

10 projects; 

11 (iii) the creation of conforming stand12 ards for infrastructure finance agreements; 

13 (iv) the monitoring of the financial, 

14 credit, and operational exposure of AIFA; 

15 and 

16 (v) risk management and mitigation 

17 actions, including by reporting such ac18 tions, or recommendations of such actions 

19 to be taken, directly to the Board of Direc20 tors. 

21 (C) CHIEF COMPLIANCE OFFICER.—The 

22 Chief Compliance Officer shall be responsible 

23 for all functions of AIFA relating to internal 

24 audits, accounting safeguards, and the enforceVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
106 

•HR 3555 IH

1 ment of such safeguards and other applicable 

2 requirements. 

3 (D) GENERAL COUNSEL.—The General 

4 Counsel shall be responsible for all functions of 

5 AIFA relating to legal matters and, in consulta6 tion with the chief executive officer, shall be re7 sponsible for ensuring that AIFA complies with 

8 all applicable law. 

9 (E) CHIEF OPERATIONS OFFICER.—The 

10 Chief Operations Officer shall be responsible for 

11 all operational functions of AIFA, including 

12 those relating to the continuing operations and 

13 performance of all infrastructure projects in 

14 which AIFA retains an interest and for all 

15 AIFA functions related to human resources. 

16 (F) CHIEF LENDING OFFICER.—The Chief 

17 Lending Officer shall be responsible for— 

18 (i) all functions of AIFA relating to 

19 the development of project pipeline, finan20 cial structuring of projects, selection of in21 frastructure projects to be reviewed by the 

22 Board of Directors, preparation of infra23 structure projects to be presented to the 

24 Board of Directors, and set aside for rural 

25 infrastructure projects; 


SSpencer on DSK4SPTVN1PROD with BILLS
107 

•HR 3555 IH

1 (ii) the creation and management of— 

2 (I) a Center for Excellence to 

3 provide technical assistance to public 

4 sector borrowers in the development 

5 and financing of infrastructure 

6 projects; and 

7 (II) an Office of Rural Assistance 

8 to provide technical assistance in the 

9 development and financing of rural in10 frastructure projects; and 

11 (iii) the establishment of guidelines to 

12 ensure diversification of lending activities 

13 by region, infrastructure project type, and 

14 project size. 

15 (f) CHANGES TO SENIOR MANAGEMENT.—The Board 

16 of Directors, in consultation with the chief executive offi17 cer, may alter the structure of the senior management of 

18 AIFA at any time to better accomplish the goals, objec19 tives, and purposes of AIFA, except that the functions of 

20 the Chief Financial Officer set forth in subsection (e) shall 

21 remain separate from the functions of the Chief Risk Offi22 cer set forth in subsection (e). 

23 (g) CONFLICTS OF INTEREST.—No individual ap24 pointed to senior management may— 

25 (1) hold any other public office; 


SSpencer on DSK4SPTVN1PROD with BILLS
108 

•HR 3555 IH

1 (2) have any financial interest in an infrastruc2 ture project then being considered by the Board of 

3 Directors, unless that interest is placed in a blind 

4 trust; or 

5 (3) have any financial interest in an investment 

6 institution or its affiliates, AIFA or its affiliates, or 

7 other entity then seeking or likely to seek financial 

8 assistance for any infrastructure project from AIFA, 

9 unless any such interest is placed in a blind trust 

10 during the term of service of that individual in a 

11 senior management position, and for a period of 2 

12 years thereafter. 

13 SEC. 250. SPECIAL INSPECTOR GENERAL FOR AIFA. 

14 (a) IN GENERAL.—During the first 5 operating years 

15 of AIFA, the Office of the Inspector General of the De16 partment of the Treasury shall have responsibility for 

17 AIFA. 

18 (b) OFFICE OF THE SPECIAL INSPECTOR GEN19 ERAL.—Effective 5 years after the date of enactment of 

20 the commencement of the operations of AIFA, there is es21 tablished the Office of the Special Inspector General for 

22 AIFA. 

23 (c) APPOINTMENT OF INSPECTOR GENERAL; RE24 MOVAL.— 


SSpencer on DSK4SPTVN1PROD with BILLS
109 

•HR 3555 IH

1 (1) HEAD OF OFFICE.—The head of the Office 

2 of the Special Inspector General for AIFA shall be 

3 the Special Inspector General for AIFA (in this Act 

4 referred to as the ‘‘Special Inspector General’’), who 

5 shall be appointed by the President, by and with the 

6 advice and consent of the Senate. 

7 (2) BASIS OF APPOINTMENT.—The appoint8 ment of the Special Inspector General shall be made 

9 on the basis of integrity and demonstrated ability in 

10 accounting, auditing, financial analysis, law, man11 agement analysis, public administration, or inves12 tigations. 

13 (3) TIMING OF NOMINATION.—The nomination 

14 of an individual as Special Inspector General shall 

15 be made as soon as is practicable after the effective 

16 date under subsection (b). 

17 (4) REMOVAL.—The Special Inspector General 

18 shall be removable from office in accordance with 

19 the provisions of section 3(b) of the Inspector Gen20 eral Act of 1978 (5 U.S.C. App.). 

21 (5) RULE OF CONSTRUCTION.—For purposes of 

22 section 7324 of title 5, United States Code, the Spe23 cial Inspector General shall not be considered an em24 ployee who determines policies to be pursued by the 


SSpencer on DSK4SPTVN1PROD with BILLS
110 

•HR 3555 IH

1 United States in the nationwide administration of 

2 Federal law. 

3 (6) RATE OF PAY.—The annual rate of basic 

4 pay of the Special Inspector General shall be the an5 nual rate of basic pay for an Inspector General 

6 under section 3(e) of the Inspector General Act of 

7 1978 (5 U.S.C. App.). 

8 (d) DUTIES.— 

9 (1) IN GENERAL.—It shall be the duty of the 

10 Special Inspector General to conduct, supervise, and 

11 coordinate audits and investigations of the business 

12 activities of AIFA. 

13 (2) OTHER SYSTEMS, PROCEDURES, AND CON14 TROLS.—The Special Inspector General shall estab15 lish, maintain, and oversee such systems, procedures, 

16 and controls as the Special Inspector General con17 siders appropriate to discharge the duty under para18 graph (1). 

19 (3) ADDITIONAL DUTIES.—In addition to the 

20 duties specified in paragraphs (1) and (2), the In21 spector General shall also have the duties and re22 sponsibilities of inspectors general under the Inspec23 tor General Act of 1978. 

24 (e) POWERS AND AUTHORITIES.— 


SSpencer on DSK4SPTVN1PROD with BILLS
111 

•HR 3555 IH

1 (1) IN GENERAL.—In carrying out the duties 

2 specified in subsection (c), the Special Inspector 

3 General shall have the authorities provided in section 

4 6 of the Inspector General Act of 1978. 

5 (2) ADDITIONAL AUTHORITY.—The Special In6 spector General shall carry out the duties specified 

7 in subsection (c)(1) in accordance with section 

8 4(b)(1) of the Inspector General Act of 1978. 

9 (f) PERSONNEL, FACILITIES, AND OTHER RE10 SOURCES.— 

11 (1) ADDITIONAL OFFICERS.— 

12 (A) The Special Inspector General may se13 lect, appoint, and employ such officers and em14 ployees as may be necessary for carrying out 

15 the duties of the Special Inspector General, 

16 subject to the provisions of title 5, United 

17 States Code, governing appointments in the 

18 competitive service, and the provisions of chap19 ter 51 and subchapter III of chapter 53 of such 

20 title, relating to classification and General 

21 Schedule pay rates. 

22 (B) The Special Inspector General may ex23 ercise the authorities of subsections (b) through 

24 (i) of section 3161 of title 5, United States 


SSpencer on DSK4SPTVN1PROD with BILLS
112 

•HR 3555 IH

1 Code (without regard to subsection (a) of that 

2 section). 

3 (2) RETENTION OF SERVICES.—The Special In4 spector General may obtain services as authorized by 

5 section 3109 of title 5, United States Code, at daily 

6 rates not to exceed the equivalent rate prescribed for 

7 grade GS–15 of the General Schedule by section 

8 5332 of such title. 

9 (3) ABILITY TO CONTRACT FOR AUDITS, STUD10 IES, AND OTHER SERVICES.—The Special Inspector 

11 General may enter into contracts and other arrange12 ments for audits, studies, analyses, and other serv13 ices with public agencies and with private persons, 

14 and make such payments as may be necessary to 

15 carry out the duties of the Special Inspector Gen16 eral. 

17 (4) REQUEST FOR INFORMATION.— 

18 (A) IN GENERAL.—Upon request of the 

19 Special Inspector General for information or as20 sistance from any department, agency, or other 

21 entity of the Federal Government, the head of 

22 such entity shall, insofar as is practicable and 

23 not in contravention of any existing law, furnish 

24 such information or assistance to the Special 

25 Inspector General, or an authorized designee. 


SSpencer on DSK4SPTVN1PROD with BILLS
113 

•HR 3555 IH

1 (B) REFUSAL TO COMPLY.—Whenever in2 formation or assistance requested by the Spe3 cial Inspector General is, in the judgment of the 

4 Special Inspector General, unreasonably refused 

5 or not provided, the Special Inspector General 

6 shall report the circumstances to the Secretary 

7 of the Treasury, without delay. 

8 (g) REPORTS.— 

9 (1) ANNUAL REPORT.—Not later than 1 year 

10 after the confirmation of the Special Inspector Gen11 eral, and every calendar year thereafter, the Special 

12 Inspector General shall submit to the President a re13 port summarizing the activities of the Special In14 spector General during the previous 1-year period 

15 ending on the date of such report. 

16 (2) PUBLIC DISCLOSURES.—Nothing in this 

17 subsection shall be construed to authorize the public 

18 disclosure of information that is— 

19 (A) specifically prohibited from disclosure 

20 by any other provision of law; 

21 (B) specifically required by Executive order 

22 to be protected from disclosure in the interest 

23 of national defense or national security or in 

24 the conduct of foreign affairs; or 


SSpencer on DSK4SPTVN1PROD with BILLS
114 

•HR 3555 IH

1 (C) a part of an ongoing criminal inves2 tigation. 

3 SEC. 251. OTHER PERSONNEL. 

4 Except as otherwise provided in the bylaws of AIFA, 

5 the chief executive officer, in consultation with the Board 

6 of Directors, shall appoint, remove, and define the duties 

7 of such qualified personnel as are necessary to carry out 

8 the powers, duties, and purpose of AIFA, other than sen9 ior management, who shall be appointed in accordance 

10 with section 249. 

11 SEC. 252. COMPLIANCE. 

12 The provision of assistance by the Board of Directors 

13 pursuant to this Act shall not be construed as superseding 

14 any provision of State law or regulation otherwise applica15 ble to an infrastructure project. 

16 PART II—TERMS AND LIMITATIONS ON DIRECT 

17 LOANS AND LOAN GUARANTEES 

18 SEC. 253. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM 

19 AIFA AND TERMS AND LIMITATIONS OF 

20 LOANS. 

21 (a) IN GENERAL.—Any project whose use or purpose 

22 is private and for which no public benefit is created shall 

23 not be eligible for financial assistance from AIFA under 

24 this Act. Financial assistance under this Act shall only 

25 be made available if the applicant for such assistance has 


SSpencer on DSK4SPTVN1PROD with BILLS
115 

•HR 3555 IH

1 demonstrated to the satisfaction of the Board of Directors 

2 that the infrastructure project for which such assistance 

3 is being sought— 

4 (1) is not for the refinancing of an existing in5 frastructure project; and 

6 (2) meets— 

7 (A) any pertinent requirements set forth in 

8 this Act; 

9 (B) any criteria established by the Board 

10 of Directors or chief executive officer in accord11 ance with this Act; and 

12 (C) the definition of a transportation infra13 structure project, water infrastructure project, 

14 or energy infrastructure project. 

15 (b) CONSIDERATIONS.—The criteria established by 

16 the Board of Directors pursuant to this Act shall provide 

17 adequate consideration of— 

18 (1) the economic, financial, technical, environ19 mental, and public benefits and costs of each infra20 structure project under consideration for financial 

21 assistance under this Act, prioritizing infrastructure 

22 projects that— 

23 (A) contribute to regional or national eco24 nomic growth; 


SSpencer on DSK4SPTVN1PROD with BILLS
116 

•HR 3555 IH

1 (B) offer value for money to the Govern2 ment; 

3 (C) demonstrate a clear and significant 

4 public benefit; 

5 (D) lead to job creation; and 

6 (E) mitigate environmental concerns; 

7 (2) the means by which development of the in8 frastructure project under consideration is being fi9 nanced, including— 

10 (A) the terms, conditions, and structure of 

11 the proposed financing; 

12 (B) the credit worthiness and standing of 

13 the project sponsors, providers of equity, and 

14 cofinanciers; 

15 (C) the financial assumptions and projec16 tions on which the infrastructure project is 

17 based; and 

18 (D) whether there is sufficient State or 

19 municipal political support for the successful 

20 completion of the infrastructure project; 

21 (3) the likelihood that the provision of assist22 ance by AIFA will cause such development to pro23 ceed more promptly and with lower costs than would 

24 be the case without such assistance; 


SSpencer on DSK4SPTVN1PROD with BILLS
117 

•HR 3555 IH

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) encouraging the use of innovative procure22 ment, asset management, or financing to minimize 

23 the all-in-life-cycle cost, and improve the cost-effec24 tiveness of a project. 

25 (c) APPLICATION.— 


SSpencer on DSK4SPTVN1PROD with BILLS
118 

•HR 3555 IH

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 

25 be eligible for assistance under this Act a rural inVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00118 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
119 

•HR 3555 IH

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, 


SSpencer on DSK4SPTVN1PROD with BILLS
120 

•HR 3555 IH

1 of any obligation to obtain required State and local per2 mits and approvals. 

3 (g) EMPLOYEE PROTECTIONS.—As a condition for 

4 the provision of financial assistance by the Board of Direc5 tors pursuant to this Act, the interests of employees af6 fected by the financial assistance shall be protected under 

7 arrangements the Secretary of Labor concludes are fair 

8 and equitable in accordance with section 5333(b)(2) of 

9 title 49, United States Code. 

10 SEC. 254. LOAN TERMS AND REPAYMENT. 

11 (a) IN GENERAL.—A direct loan or loan guarantee 

12 under this Act with respect to an eligible infrastructure 

13 project shall be on such terms, subject to such conditions, 

14 and contain such covenants, representations, warranties, 

15 and requirements (including requirements for audits) as 

16 the chief executive officer determines appropriate. 

17 (b) TERMS.—A direct loan or loan guarantee under 

18 this Act— 

19 (1) shall— 

20 (A) be payable, in whole or in part, from 

21 tolls, user fees, or other dedicated revenue 

22 sources that also secure the senior project obli23 gations (such as availability payments and dedi24 cated State or local revenues); and 


SSpencer on DSK4SPTVN1PROD with BILLS
121 

•HR 3555 IH

1 (B) include a rate covenant, coverage re2 quirement, or similar security feature sup3 porting the project obligations; and 

4 (2) may have a lien on revenues described in 

5 paragraph (1), subject to any lien securing project 

6 obligations. 

7 (c) BASE INTEREST RATE.—The base interest rate 

8 on a direct loan under this Act shall be not less than the 

9 yield on United States Treasury obligations of a similar 

10 maturity to the maturity of the direct loan. 

11 (d) RISK ASSESSMENT.—Before entering into an 

12 agreement for assistance under this Act, the chief execu13 tive officer, in consultation with the Director of the Office 

14 of Management and Budget and considering rating agency 

15 preliminary or final rating opinion letters of the project 

16 under this section, shall estimate an appropriate Federal 

17 credit subsidy amount for each direct loan and loan guar18 antee, taking into account such letter, as well as any com19 parable market rates available for such a loan or loan 

20 guarantee, should any exist. The final credit subsidy cost 

21 for each loan and loan guarantee shall be determined con22 sistent with the Federal Credit Reform Act (2 U.S.C. 

23 661a et seq.). 

24 (e) CREDIT FEE.— 


SSpencer on DSK4SPTVN1PROD with BILLS
122 

•HR 3555 IH

1 (1) IN GENERAL.—With respect to each agree2 ment for assistance under this Act, the chief execu3 tive officer may charge a credit fee to the recipient 

4 of such assistance to pay for, over time, all or a por5 tion of the Federal credit subsidy determined under 

6 subsection (d), with the remainder paid by the ac7 count established for AIFA. 

8 (2) TREATMENT OF SOURCE OF FEES.—The 

9 source of fees paid under this section shall not be a 

10 loan or debt obligation guaranteed by the Federal 

11 Government. 

12 (3) CREDIT FEE ON A DIRECT LOAN.—In the 

13 case of a direct loan, such credit fee shall be in addi14 tion to the base interest rate established under sub15 section (c). 

16 (f) MATURITY DATE.—The final maturity date of a 

17 direct loan or loan guaranteed by AIFA under this Act 

18 shall be not later than 35 years after the date of substan19 tial completion of the infrastructure project, as determined 

20 by the chief executive officer. 

21 (g) RATING OPINION LETTER.— 

22 (1) IN GENERAL.—The chief executive officer 

23 shall require each applicant for assistance under this 

24 Act to provide a rating opinion letter from at least 

25 1 ratings agency, indicating that the senior obligaVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00122 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
123 

•HR 3555 IH

1 tions of the infrastructure project, which may be the 

2 Federal credit instrument, have the potential to 

3 achieve an investment-grade rating. 

4 (2) RURAL INFRASTRUCTURE PROJECTS.—With 

5 respect to a rural infrastructure project, a rating 

6 agency opinion letter described in paragraph (1) 

7 shall not be required, except that the loan or loan 

8 guarantee shall receive an internal rating score, 

9 using methods similar to the ratings agencies gen10 erated by AIFA, measuring the proposed direct loan 

11 or loan guarantee against comparable direct loans or 

12 loan guarantees of similar credit quality in a similar 

13 sector. 

14 (h) INVESTMENT-GRADE RATING REQUIREMENT.— 

15 (1) LOANS AND LOAN GUARANTEES.—The exe16 cution of a direct loan or loan guarantee under this 

17 Act shall be contingent on the senior obligations of 

18 the infrastructure project receiving an investment19 grade rating. 

20 (2) RATING OF AIFA OVERALL PORTFOLIO.— 

21 The average rating of the overall portfolio of AIFA 

22 shall be not less than investment grade after 5 years 

23 of operation. 

24 (i) TERMS AND REPAYMENT OF DIRECT LOANS.— 


SSpencer on DSK4SPTVN1PROD with BILLS
124 

•HR 3555 IH

1 (1) SCHEDULE.—The chief executive officer 

2 shall establish a repayment schedule for each direct 

3 loan under this Act, based on the projected cash 

4 flow from infrastructure project revenues and other 

5 repayment sources. 

6 (2) COMMENCEMENT.—Scheduled loan repay7 ments of principal or interest on a direct loan under 

8 this Act shall commence not later than 5 years after 

9 the date of substantial completion of the infrastruc10 ture project, as determined by the chief executive of11 ficer of AIFA. 

12 (3) DEFERRED PAYMENTS OF DIRECT

13 LOANS.— 

14 (A) AUTHORIZATION.—If, at any time 

15 after the date of substantial completion of an 

16 infrastructure project assisted under this Act, 

17 the infrastructure project is unable to generate 

18 sufficient revenues to pay the scheduled loan re19 payments of principal and interest on the direct 

20 loan under this Act, the chief executive officer 

21 may allow the obligor to add unpaid principal 

22 and interest to the outstanding balance of the 

23 direct loan, if the result would benefit the Gov24 ernment. 


SSpencer on DSK4SPTVN1PROD with BILLS
125 

•HR 3555 IH

1 (B) INTEREST.—Any payment deferred 

2 under subparagraph (A) shall— 

3 (i) continue to accrue interest, in ac4 cordance with the terms of the obligation, 

5 until fully repaid; and 

6 (ii) be scheduled to be amortized over 

7 the remaining term of the loan. 

8 (C) CRITERIA.— 

9 (i) IN GENERAL.—Any payment defer10 ral under subparagraph (A) shall be con11 tingent on the infrastructure project meet12 ing criteria established by the Board of Di13 rectors. 

14 (ii) REPAYMENT STANDARDS.—The 

15 criteria established under clause (i) shall 

16 include standards for reasonable assurance 

17 of repayment. 

18 (4) PREPAYMENT OF DIRECT LOANS.— 

19 (A) USE OF EXCESS REVENUES.—Any ex20 cess revenues that remain after satisfying 

21 scheduled debt service requirements on the in22 frastructure project obligations and direct loan 

23 and all deposit requirements under the terms of 

24 any trust agreement, bond resolution, or similar 

25 agreement securing project obligations under 


SSpencer on DSK4SPTVN1PROD with BILLS
126 

•HR 3555 IH

1 this Act may be applied annually to prepay the 

2 direct loan, without penalty. 

3 (B) USE OF PROCEEDS OF REFI4 NANCING.—A direct loan under this Act may be 

5 prepaid at any time, without penalty, from the 

6 proceeds of refinancing from non-Federal fund7 ing sources. 

8 (5) SALE OF DIRECT LOANS.— 

9 (A) IN GENERAL.—As soon as is prac10 ticable after substantial completion of an infra11 structure project assisted under this Act, and 

12 after notifying the obligor, the chief executive 

13 officer may sell to another entity, or reoffer into 

14 the capital markets, a direct loan for the infra15 structure project, if the chief executive officer 

16 determines that the sale or reoffering can be 

17 made on favorable terms for the Government. 

18 (B) CONSENT OF OBLIGOR.—In making a 

19 sale or reoffering under subparagraph (A), the 

20 chief executive officer may not change the origi21 nal terms and conditions of the direct loan, 

22 without the written consent of the obligor. 

23 (j) LOAN GUARANTEES.— 

24 (1) TERMS.—The terms of a loan guaranteed 

25 by AIFA under this Act shall be consistent with the 


SSpencer on DSK4SPTVN1PROD with BILLS
127 

•HR 3555 IH

1 terms set forth in this section for a direct loan, ex2 cept that the rate on the guaranteed loan and any 

3 payment, pre-payment, or refinancing features shall 

4 be negotiated between the obligor and the lender, 

5 with the consent of the chief executive officer. 

6 (2) GUARANTEED LENDER.—A guaranteed 

7 lender shall be limited to those lenders meeting the 

8 definition of that term in section 601(a) of title 23, 

9 United States Code. 

10 (k) COMPLIANCE WITH FCRA; IN GENERAL.—Di11 rect loans and loan guarantees authorized by this Act shall 

12 be subject to the provisions of the Federal Credit Reform 

13 Act of 1990 (2 U.S.C. 661 et seq.). 

14 SEC. 255. COMPLIANCE AND ENFORCEMENT. 

15 (a) CREDIT AGREEMENT.—Notwithstanding any 

16 other provision of law, each eligible entity that receives 

17 assistance under this Act from AIFA shall enter into a 

18 credit agreement that requires such entity to comply with 

19 all applicable policies and procedures of AIFA, in addition 

20 to all other provisions of the loan agreement. 

21 (b) AIFA AUTHORITY ON NONCOMPLIANCE.—In any 

22 case in which a recipient of assistance under this Act is 

23 materially out of compliance with the loan agreement, or 

24 any applicable policy or procedure of AIFA, the Board of 

25 Directors may take action to cancel unutilized loan 


SSpencer on DSK4SPTVN1PROD with BILLS
128 

•HR 3555 IH

1 amounts, or to accelerate the repayment terms of any out2 standing obligation. 

3 (c) CONSTRUCTION.—Nothing in this Act is intended 

4 to affect existing provisions of law applicable to the plan5 ning, development, construction, or operation of projects 

6 funded under the Act. 

7 SEC. 256. AUDITS; REPORTS TO THE PRESIDENT AND CON8 GRESS. 

9 (a) ACCOUNTING.—The books of account of AIFA 

10 shall be maintained in accordance with generally accepted 

11 accounting principles, and shall be subject to an annual 

12 audit by independent public accountants of nationally rec13 ognized standing appointed by the Board of Directors. 

14 (b) REPORTS.— 

15 (1) BOARD OF DIRECTORS.—Not later than 90 

16 days after the last day of each fiscal year, the Board 

17 of Directors shall submit to the President and Con18 gress a complete and detailed report with respect to 

19 the preceding fiscal year, setting forth— 

20 (A) a summary of the operations of AIFA, 

21 for such fiscal year; 

22 (B) a schedule of the obligations of AIFA 

23 and capital securities outstanding at the end of 

24 such fiscal year, with a statement of the 


SSpencer on DSK4SPTVN1PROD with BILLS
129 

•HR 3555 IH

1 amounts issued and redeemed or paid during 

2 such fiscal year; 

3 (C) the status of infrastructure projects re4 ceiving funding or other assistance pursuant to 

5 this Act during such fiscal year, including all 

6 nonperforming loans, and including disclosure 

7 of all entities with a development, ownership, or 

8 operational interest in such infrastructure 

9 projects; 

10 (D) a description of the successes and 

11 challenges encountered in lending to rural com12 munities, including the role of the Center for 

13 Excellence and the Office of Rural Assistance 

14 established under this Act; and 

15 (E) an assessment of the risks of the port16 folio of AIFA, prepared by an independent 

17 source. 

18 (2) GAO.—Not later than 5 years after the 

19 date of enactment of this Act, the Comptroller Gen20 eral of the United States shall conduct an evaluation 

21 of, and shall submit to Congress a report on, activi22 ties of AIFA for the fiscal years covered by the re23 port that includes an assessment of the impact and 

24 benefits of each funded infrastructure project, in25 cluding a review of how effectively each such infraVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00129 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
130 

•HR 3555 IH

1 structure project accomplished the goals prioritized 

2 by the infrastructure project criteria of AIFA. 

3 (c) BOOKS AND RECORDS.— 

4 (1) IN GENERAL.—AIFA shall maintain ade5 quate books and records to support the financial 

6 transactions of AIFA, with a description of financial 

7 transactions and infrastructure projects receiving 

8 funding, and the amount of funding for each such 

9 project maintained on a publically accessible data10 base. 

11 (2) AUDITS BY THE SECRETARY AND GAO.— 

12 The books and records of AIFA shall at all times be 

13 open to inspection by the Secretary of the Treasury, 

14 the Special Inspector General, and the Comptroller 

15 General of the United States. 

16 PART III—FUNDING OF AIFA 

17 SEC. 257. ADMINISTRATIVE FEES. 

18 (a) IN GENERAL.—In addition to fees that may be 

19 collected under section 254(e), the chief executive officer 

20 shall establish and collect fees from eligible funding recipi21 ents with respect to loans and loan guarantees under this 

22 Act that— 

23 (1) are sufficient to cover all or a portion of the 

24 administrative costs to the Federal Government for 

25 the operations of AIFA, including the costs of expert 


SSpencer on DSK4SPTVN1PROD with BILLS
131 

•HR 3555 IH

1 firms, including counsel in the field of municipal and 

2 project finance, and financial advisors to assist with 

3 underwriting, credit analysis, or other independent 

4 reviews, as appropriate; 

5 (2) may be in the form of an application or 

6 transaction fee, or other form established by the 

7 chief executive officer; and 

8 (3) may be based on the risk premium associ9 ated with the loan or loan guarantee, taking into 

10 consideration— 

11 (A) the price of United States Treasury 

12 obligations of a similar maturity; 

13 (B) prevailing market conditions; 

14 (C) the ability of the infrastructure project 

15 to support the loan or loan guarantee; and 

16 (D) the total amount of the loan or loan 

17 guarantee. 

18 (b) AVAILABILITY OF AMOUNTS.—Amounts collected 

19 under subsections (a)(1), (a)(2), and (a)(3) shall be avail20 able without further action, and the source of fees paid 

21 under this section shall not be a loan or debt obligation 

22 guaranteed by the Federal Government. 

23 SEC. 258. EFFICIENCY OF AIFA. 

24 The chief executive officer shall, to the extent pos25 sible, take actions consistent with this Act to minimize the 


SSpencer on DSK4SPTVN1PROD with BILLS
132 

•HR 3555 IH

1 risk and cost to the Government of AIFA activities. Fees 

2 and premiums for loan guarantee or insurance coverage 

3 will be set at levels that minimize administrative and Fed4 eral credit subsidy costs to the Government, as defined 

5 in section 502 of the Federal Credit Reform Act of 1990, 

6 of such coverage, while supporting achievement of the pro7 gram’s objectives, consistent with policies as set forth in 

8 the business plan. 

9 SEC. 259. FUNDING. 

10 (a) IN GENERAL.—There is hereby appropriated to 

11 AIFA to carry out this Act, for the cost of direct loans 

12 and loan guarantees subject to the limitations under sec13 tion 253, and for administrative costs, $10,000,000,000, 

14 to remain available until expended. 

15 (b) COSTS DEFINED.—Such costs, including the 

16 costs of modifying such loans, shall be as defined in sec17 tion 502 of the Federal Credit Reform Act of 1990. 

18 (c) ADMINISTRATIVE COSTS.—Of the amounts appro19 priated under subsection (a), not more than $25,000,000 

20 for each of fiscal years 2016 through 2017, and not more 

21 than $50,000,000 for fiscal year 2018 may be used for 

22 administrative costs of AIFA. 

23 (d) OFFSETS OF SUBSIDY COSTS.—Not more than 

24 5 percent of such amount may be used to offset subsidy 

25 costs associated with rural projects. 


SSpencer on DSK4SPTVN1PROD with BILLS
133 

•HR 3555 IH

1 PART IV—EXTENSION OF EXEMPTION FROM AL2 TERNATIVE MINIMUM TAX TREATMENT FOR 

3 CERTAIN TAX-EXEMPT BONDS 

4 SEC. 260. EXTENSION OF EXEMPTION FROM ALTERNATIVE 

5 MINIMUM TAX TREATMENT FOR CERTAIN 

6 TAX-EXEMPT BONDS. 

7 (a) IN GENERAL.—Section 57(a)(5)(C)(vi) of the In8 ternal Revenue Code of 1986 is amended— 

9 (1) by inserting ‘‘, or after December 31, 2014, 

10 and before January 1, 2019’’ after ‘‘January 1, 

11 2011’’ in subclause (I), and 

12 (2) by striking ‘‘BONDS ISSUED IN 2009 AND

13 2010’’ in the heading and inserting ‘‘CERTAIN

14 BONDS’’. 

15 (b) ADJUSTED CURRENT EARNINGS.—Section 

16 56(g)(4)(B)(iv) of the Internal Revenue Code of 1986 is 

17 amended— 

18 (1) by striking ‘‘, or after December 31, 2014, 

19 and before January 1, 2019’’ after ‘‘January 1, 

20 2011’’ in subclause (I), and 

21 (2) by striking ‘‘BONDS ISSUED IN 2009 AND

22 2010’’ in the heading and inserting ‘‘CERTAIN

23 BONDS’’. 

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

25 this section shall apply to obligations issued after Decem26 ber 31, 2014. 


SSpencer on DSK4SPTVN1PROD with BILLS
134 

•HR 3555 IH

1 Subtitle F—Project Rebuild 

2 SEC. 261. PROJECT REBUILD. 

3 (a) DIRECT APPROPRIATIONS.—There is appro4 priated, out of any money in the Treasury not otherwise 

5 appropriated, $15,000,000,000, to remain available until 

6 September 30, 2018, for assistance to eligible entities in7 cluding States and units of general local government (as 

8 such terms are defined in section 102 of the Housing and 

9 Community Development Act of 1974 (42 U.S.C. 5302)), 

10 and qualified nonprofit organizations, businesses or con11 sortia of eligible entities for the redevelopment of aban12 doned and foreclosed-upon properties and for the stabiliza13 tion of affected neighborhoods. 

14 (b) ALLOCATION OF APPROPRIATED AMOUNTS.— 

15 (1) IN GENERAL.—Of the amounts appro16 priated, two thirds shall be allocated to States and 

17 units of general local government based on a funding 

18 formula established by the Secretary of Housing and 

19 Urban Development (in this subtitle referred to as 

20 the ‘‘Secretary’’). Of the amounts appropriated, one 

21 third shall be distributed competitively to eligible en22 tities. 

23 (2) FORMULA TO BE DEVISED SWIFTLY.—The 

24 funding formula required under paragraph (1) shall 

25 be established and the Secretary shall announce forVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00134 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
135 

•HR 3555 IH

1 mula funding allocations, not later than 30 days 

2 after the date of enactment of this section. 

3 (3) FORMULA CRITERIA.—The Secretary may 

4 establish a minimum grant size, and the funding for5 mula required under paragraph (1) shall ensure that 

6 any amounts appropriated or otherwise made avail7 able under this section are allocated to States and 

8 units of general local government with the greatest 

9 need, as such need is determined in the discretion of 

10 the Secretary based on— 

11 (A) the number and percentage of home 

12 foreclosures in each State or unit of general 

13 local government; 

14 (B) the number and percentage of homes 

15 in default or delinquency in each State or unit 

16 of general local government; and 

17 (C) other factors such as established pro18 gram designs, grantee capacity and perform19 ance, number and percentage of commercial 

20 foreclosures, overall economic conditions, and 

21 other market needs data, as determined by the 

22 Secretary. 

23 (4) COMPETITION CRITERIA.— 

24 (A) For the funds distributed competi25 tively, eligible entities shall be States, units of 


SSpencer on DSK4SPTVN1PROD with BILLS
136 

•HR 3555 IH

1 general local government, nonprofit entities, 

2 for-profit entities, and consortia of eligible enti3 ties that demonstrate capacity to use funding 

4 within the period of this program. 

5 (B) In selecting grantees, the Secretary 

6 shall ensure that grantees are in areas with the 

7 greatest number and percentage of residential 

8 and commercial foreclosures and other market 

9 needs data, as determined by the Secretary. Ad10 ditional award criteria shall include dem11 onstrated grantee capacity to execute projects 

12 involving acquisition and rehabilitation or rede13 velopment of foreclosed residential and commer14 cial property and neighborhood stabilization, le15 verage, knowledge of market conditions and of 

16 effective stabilization activities to address iden17 tified conditions, and any additional factors de18 termined by the Secretary. 

19 (C) The Secretary may establish a min20 imum grant size. 

21 (D) The Secretary shall publish competi22 tion criteria for any grants awarded under this 

23 heading not later than 60 days after appropria24 tion of funds, and applications shall be due to 

25 the Secretary within 120 days. 


SSpencer on DSK4SPTVN1PROD with BILLS
137 

•HR 3555 IH

1 (c) USE OF FUNDS.— 

2 (1) OBLIGATION AND EXPENDITURE.—The Sec3 retary shall obligate all funding within 150 days of 

4 enactment of this Act. Any eligible entity that re5 ceives amounts pursuant to this section shall expend 

6 all funds allocated to it within three years of the 

7 date the funds become available to the grantee for 

8 obligation. Furthermore, the Secretary shall by No9 tice establish intermediate expenditure benchmarks 

10 at the one and two year dates from the date the 

11 funds become available to the grantee for obligation. 

12 (2) PRIORITIES.— 

13 (A) JOB CREATION.—Each grantee or eli14 gible entity shall describe how its proposed use 

15 of funds will prioritize job creation, and sec16 ondly, will address goals to stabilize neighbor17 hoods, reverse vacancy, or increase or stabilize 

18 residential and commercial property values. 

19 (B) TARGETING.—Any State or unit of 

20 general local government that receives formula 

21 amounts pursuant to this section shall, in dis22 tributing and targeting such amounts give pri23 ority emphasis and consideration to those met24 ropolitan areas, metropolitan cities, urban 

25 areas, rural areas, low- and moderate-income 


SSpencer on DSK4SPTVN1PROD with BILLS
138 

•HR 3555 IH

1 areas, and other areas with the greatest need, 

2 including those— 

3 (i) with the greatest percentage of 

4 home foreclosures; 

5 (ii) identified as likely to face a sig6 nificant rise in the rate of residential or 

7 commercial foreclosures; and 

8 (iii) with higher than national average 

9 unemployment rate. 

10 (C) LEVERAGE.—Each grantee or eligible 

11 entity shall describe how its proposed use of 

12 funds will leverage private funds. 

13 (3) ELIGIBLE USES.—Amounts made available 

14 under this section may be used to— 

15 (A) establish financing mechanisms for the 

16 purchase and redevelopment of abandoned and 

17 foreclosed-upon properties, including such 

18 mechanisms as soft-seconds, loan loss reserves, 

19 and shared-equity loans for low- and moderate20 income homebuyers; 

21 (B) purchase and rehabilitate properties 

22 that have been abandoned or foreclosed upon, 

23 in order to sell, rent, or redevelop such prop24 erties; 


SSpencer on DSK4SPTVN1PROD with BILLS
139 

•HR 3555 IH

1 (C) establish and operate land banks for 

2 properties that have been abandoned or fore3 closed upon; 

4 (D) demolish blighted structures; 

5 (E) redevelop abandoned, foreclosed, de6 molished, or vacant properties; and 

7 (F) engage in other activities, as deter8 mined by the Secretary through notice, that are 

9 consistent with the goals of creating jobs, stabi10 lizing neighborhoods, reversing vacancy reduc11 tion, and increasing or stabilizing residential 

12 and commercial property values. 

13 (d) LIMITATIONS.— 

14 (1) ON PURCHASES.—Any purchase of a prop15 erty under this section shall be at a price not to ex16 ceed its current market value, taking into account 

17 its current condition. 

18 (2) REHABILITATION.—Any rehabilitation of an 

19 eligible property under this section shall be to the 

20 extent necessary to comply with applicable laws, and 

21 other requirements relating to safety, quality, mar22 ketability, and habitability, in order to sell, rent, or 

23 redevelop such properties or provide a renewable en24 ergy source or sources for such properties. 


SSpencer on DSK4SPTVN1PROD with BILLS
140 

•HR 3555 IH

1 (3) SALE OF HOMES.—If an abandoned or fore2 closed-upon home is purchased, redeveloped, or oth3 erwise sold to an individual as a primary residence, 

4 then such sale shall be in an amount equal to or less 

5 than the cost to acquire and redevelop or rehabilitate 

6 such home or property up to a decent, safe, market7 able, and habitable condition. 

8 (4) ON DEMOLITION OF PUBLIC HOUSING.— 

9 Public housing, as defined at section 3(b)(1) of the 

10 United States Housing Act of 1937 (42 U.S.C. 

11 1437a(b)(1)), may not be demolished with funds 

12 under this section. 

13 (5) ON DEMOLITION ACTIVITIES.—No more 

14 than 10 percent of any grant made under this sec15 tion may be used for demolition activities unless the 

16 Secretary determines that such use represents an 

17 appropriate response to local market conditions. 

18 (6) ON USE OF FUNDS FOR NON-RESIDENTIAL

19 PROPERTY.—No more than 30 percent of any grant 

20 made under this section may be used for eligible ac21 tivities under subparagraphs (A), (B), and (E) of 

22 subsection (c)(3) that will not result in residential 

23 use of the property involved unless the Secretary de24 termines that such use represents an appropriate re25 sponse to local market conditions. 


SSpencer on DSK4SPTVN1PROD with BILLS
141 

•HR 3555 IH

1 (e) RULES OF CONSTRUCTION.— 

2 (1) IN GENERAL.—Except as otherwise pro3 vided by this section, amounts appropriated, reve4 nues generated, or amounts otherwise made avail5 able to eligible entities under this section shall be 

6 treated as though such funds were community devel7 opment block grant funds under title I of the Hous8 ing and Community Development Act of 1974 (42 

9 U.S.C. 5301 et seq.). 

10 (2) NO MATCH.—No matching funds shall be 

11 required in order for an eligible entity to receive any 

12 amounts under this section. 

13 (3) TENANT PROTECTIONS.—An eligible entity 

14 receiving a grant under this section shall comply 

15 with the 14th, 17th, 18th, 19th, 20th, 21st, 22nd, 

16 and 23rd provisos under the heading ‘‘Department 

17 of Housing and Urban Development—Community 

18 Planning and Development—Community Develop19 ment Fund’’ in title XII of division A of the Amer20 ican Recovery and Reinvestment Act of 2009 (Public 

21 Law 111–5, 123 Stat. 218–19), as amended by sec22 tion 1497(b)(2) of the Dodd-Frank Wall Street Re23 form and Consumer Protection Act (Public Law 

24 111–203, 124 Stat. 2211). 


SSpencer on DSK4SPTVN1PROD with BILLS
142 

•HR 3555 IH

1 (4) VICINITY HIRING.—An eligible entity receiv2 ing a grant under this section shall comply with sec3 tion 1497(a)(8) of the Dodd-Frank Wall Street Re4 form and Consumer Protection Act (Public Law 

5 111–203, 129 Stat. 2210). 

6 (f) AUTHORITY TO SPECIFY ALTERNATIVE RE7 QUIREMENTS.— 

8 (1) IN GENERAL.—In administering the pro9 gram under this section, the Secretary may specify 

10 alternative requirements to any provision under title 

11 I of the Housing and Community Development Act 

12 of 1974 or under title I of the Cranston-Gonzalez 

13 National Affordable Housing Act of 1990 (except for 

14 those provisions in these laws related to fair hous15 ing, nondiscrimination, labor standards, and the en16 vironment) for the purpose of expediting and facili17 tating the use of funds under this section. 

18 (2) NOTICE.—The Secretary shall provide writ19 ten notice of intent to the public via Internet to ex20 ercise the authority to specify alternative require21 ments under paragraph. 

22 (3) LOW AND MODERATE INCOME REQUIRE23 MENT.— 


SSpencer on DSK4SPTVN1PROD with BILLS
143 

•HR 3555 IH

1 (A) IN GENERAL.—Notwithstanding the 

2 authority of the Secretary under paragraph 

3 (1)— 

4 (i) all of the formula and competitive 

5 grantee funds appropriated or otherwise 

6 made available under this section shall be 

7 used with respect to individuals and fami8 lies whose income does not exceed 120 per9 cent of area median income; and 

10 (ii) not less than 25 percent of the 

11 formula and competitive grantee funds ap12 propriated or otherwise made available 

13 under this section shall be used for the 

14 purchase and redevelopment of eligible 

15 properties that will be used to house indi16 viduals or families whose incomes do not 

17 exceed 50 percent of area median income. 

18 (B) RECURRENT REQUIREMENT.—The 

19 Secretary shall, by rule or order, ensure, to the 

20 maximum extent practicable and for the longest 

21 feasible term, that the sale, rental, or redevelop22 ment of abandoned and foreclosed-upon homes 

23 and residential properties under this section re24 main affordable to individuals or families de25 scribed in subparagraph (A). 


SSpencer on DSK4SPTVN1PROD with BILLS
144 

•HR 3555 IH

1 (g) NATIONWIDE DISTRIBUTION OF RESOURCES.— 

2 Notwithstanding any other provision of this section or the 

3 amendments made by this section, each State shall receive 

4 not less than $20,000,000 of formula funds. 

5 (h) LIMITATION ON USE OF FUNDS WITH RESPECT

6 TO EMINENT DOMAIN.—No State or unit of general local 

7 government may use any amounts received pursuant to 

8 this section to fund any project that seeks to use the power 

9 of eminent domain, unless eminent domain is employed 

10 only for a public use, which shall not be construed to in11 clude economic development that primarily benefits pri12 vate entities. 

13 (i) LIMITATION ON DISTRIBUTION OF FUNDS.— 

14 (1) IN GENERAL.—None of the funds made 

15 available under this section shall be distributed to— 

16 (A) an organization which has been in17 dicted for a violation under Federal law relating 

18 to an election for Federal office; or 

19 (B) an organization which employs applica20 ble individuals. 

21 (2) APPLICABLE INDIVIDUALS DEFINED.—In 

22 this section, the term ‘‘applicable individual’’ means 

23 an individual who— 

24 (A) is— 


SSpencer on DSK4SPTVN1PROD with BILLS
145 

•HR 3555 IH

1 (i) employed by the organization in a 

2 permanent or temporary capacity; 

3 (ii) contracted or retained by the or4 ganization; or 

5 (iii) acting on behalf of, or with the 

6 express or apparent authority of, the orga7 nization; and 

8 (B) has been indicted for a violation under 

9 Federal law relating to an election for Federal 

10 office. 

11 (j) RENTAL HOUSING PREFERENCES.—Each State 

12 and local government receiving formula amounts shall es13 tablish procedures to create preferences for the develop14 ment of affordable rental housing. 

15 (k) JOB CREATION.—If a grantee chooses to use 

16 funds to create jobs by establishing and operating a pro17 gram to maintain eligible neighborhood properties, not 

18 more than 10 percent of any grant may be used for that 

19 purpose. 

20 (l) PROGRAM SUPPORT AND CAPACITY BUILDING.— 

21 The Secretary may use up to 0.75 percent of the funds 

22 appropriated for capacity building of and support for eligi23 ble entities and grantees undertaking neighborhood sta24 bilization programs, staffing, training, technical assist25 ance, technology, monitoring, travel, enforcement, reVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00145 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
146 

•HR 3555 IH

1 search, and evaluation activities, subject to the following 

2 requirements: 

3 (1) Funds set aside for the purposes of this 

4 subparagraph shall remain available until September 

5 30, 2018. 

6 (2) Any funds made available under this sub7 paragraph and used by the Secretary for personnel 

8 expenses related to administering funding under this 

9 subparagraph shall be transferred to ‘‘Personnel 

10 Compensation and Benefits, Community Planning 

11 and Development’’. 

12 (3) Any funds made available under this sub13 paragraph and used by the Secretary for training or 

14 other administrative expenses shall be transferred to 

15 ‘‘Administration, Operations, and Management, 

16 Community Planning and Development’’ for non17 personnel expenses. 

18 (4) Any funds made available under this sub19 paragraph and used by the Secretary for technology 

20 shall be transferred to ‘‘Working Capital Fund’’. 

21 (m) ENFORCEMENT AND PREVENTION OF FRAUD

22 AND ABUSE.—The Secretary shall establish and imple23 ment procedures to prevent fraud and abuse of funds 

24 under this section, and shall impose a requirement that 

25 grantees have an internal auditor to continuously monitor 


SSpencer on DSK4SPTVN1PROD with BILLS
147 

•HR 3555 IH

1 grantee performance to prevent fraud, waste, and abuse. 

2 Grantees shall provide the Secretary and citizens with 

3 quarterly progress reports. The Secretary shall recapture 

4 funds from formula and competitive grantees that do not 

5 expend 100 percent of allocated funds within 3 years of 

6 the date that funds become available, and from underper7 forming or mismanaged grantees, and shall re-allocate 

8 those funds by formula to target areas with the greatest 

9 need, as determined by the Secretary through notice. The 

10 Secretary may take an alternative sanctions action only 

11 upon determining that such action is necessary to achieve 

12 program goals in a timely manner. 

13 (n) CONFORMANCE OF POLICIES AND PROCE14 DURES.—The Secretary of Housing and Urban Develop15 ment shall to the extent feasible conform policies and pro16 cedures for grants made under this section to the policies 

17 and practices already in place for the grants made under 

18 section 2301 of the Housing and Economic Recovery Act 

19 of 2008 (42 U.S.C. 5301 note); title XII of division A 

20 of the American Recovery and Reinvestment Act of 2009 

21 (Public Law 111–5; 123 Stat. 203); or section 1497 of 

22 the Dodd-Frank Wall Street Reform and Consumer Pro23 tection Act (42 U.S.C. 5301 note). 


SSpencer on DSK4SPTVN1PROD with BILLS
148 

•HR 3555 IH

1 TITLE III—ASSISTANCE FOR THE 

2 UNEMPLOYED AND PATH3 WAYS BACK TO WORK 

4 Subtitle A—Supporting 

5 Unemployed Workers 

6 SEC. 301. SHORT TITLE. 

7 This subtitle may be cited as the ‘‘Supporting Unem8 ployed Workers Act of 2015’’. 

9 PART I—EXTENSION OF EMERGENCY UNEMPLOY10 MENT COMPENSATION AND CERTAIN EX11 TENDED BENEFITS PROVISIONS, AND ESTAB12 LISHMENT OF SELF-EMPLOYMENT ASSIST13 ANCE PROGRAM 

14 SEC. 311. EXTENSION OF EMERGENCY UNEMPLOYMENT 

15 COMPENSATION PROGRAM. 

16 (a) IN GENERAL.—Section 4007 of the Supplemental 

17 Appropriations Act, 2008 (Public Law 110–252; 26 

18 U.S.C. 3304 note) is amended by striking ‘‘January 1, 

19 2014’’ and inserting ‘‘January 1, 2016’’. 

20 (b) FUNDING.—Section 4004(e)(1) of the Supple21 mental Appropriations Act, 2008 (Public Law 110–252; 

22 26 U.S.C. 3304 note) is amended— 

23 (1) in subparagraph (I), by striking ‘‘and’’ at 

24 the end; 


SSpencer on DSK4SPTVN1PROD with BILLS
149 

•HR 3555 IH

1 (2) in subparagraph (J), by inserting ‘‘and’’ at 

2 the end; and 

3 (3) by inserting after subparagraph (J) the fol4 lowing: 

5 ‘‘(K) the amendments made by section 

6 311(a) of the Supporting Unemployed Workers 

7 Act of 2015; and’’. 

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

9 this section shall take effect as if included in the enact10 ment of the American Taxpayer Relief Act of 2012 (Public 

11 Law 112–240; 26 U.S.C. 3304 note). 

12 SEC. 312. TEMPORARY EXTENSION OF EXTENDED BENEFIT 

13 PROVISIONS. 

14 (a) IN GENERAL.—Section 2005 of the Assistance for 

15 Unemployed Workers and Struggling Families Act, as 

16 contained in Public Law 111–5 (26 U.S.C. 3304 note), 

17 is amended— 

18 (1) by striking ‘‘December 31, 2013’’ each 

19 place it appears and inserting ‘‘December 31, 

20 2015’’; and 

21 (2) in subsection (c), by striking ‘‘June 30, 

22 2014’’ and inserting ‘‘June 30, 2016’’. 

23 (b) EXTENSION OF MATCHING FOR STATES WITH

24 NO WAITING WEEK.—Section 5 of the Unemployment 

25 Compensation Extension Act of 2008 (Public Law 110– 


SSpencer on DSK4SPTVN1PROD with BILLS
150 

•HR 3555 IH

1 449; 26 U.S.C. 3304 note) is amended by striking ‘‘June 

2 30, 2014’’ and inserting ‘‘June 30, 2016’’. 

3 (c) EXTENSION OF MODIFICATION OF INDICATORS

4 UNDER THE EXTENDED BENEFIT PROGRAM.—Section 

5 203 of the Federal-State Extended Unemployment Com6 pensation Act of 1970 (26 U.S.C. 3304 note) is amend7 ed— 

8 (1) in subsection (d), by striking ‘‘December 

9 31, 2013’’ and inserting ‘‘December 31, 2015’’; and 

10 (2) in subsection (f)(2), by striking ‘‘December 

11 31, 2013’’ and inserting ‘‘December 31, 2015’’. 

12 (d) EFFECTIVE DATE.—The amendments made by 

13 this section shall take effect as if included in the enact14 ment of the American Taxpayer Relief Act of 2012 (Public 

15 Law 112–240; 26 U.S.C. 3304 note). 

16 SEC. 313. ADDITIONAL EXTENDED UNEMPLOYMENT BENE17 FITS UNDER THE RAILROAD UNEMPLOY18 MENT INSURANCE ACT. 

19 (a) EXTENSION.—Section 2(c)(2)(D)(iii) of the Rail20 road Unemployment Insurance Act (45 U.S.C. 

21 352(c)(2)(D)(iii)) is amended— 

22 (1) by striking ‘‘June 30, 2013’’ and inserting 

23 ‘‘June 30, 2015’’; and 

24 (2) by striking ‘‘December 31, 2013’’ and in25 serting ‘‘December 31, 2015’’. 


SSpencer on DSK4SPTVN1PROD with BILLS
151 

•HR 3555 IH

1 (b) CLARIFICATION ON AUTHORITY TO USE

2 FUNDS.—Funds appropriated under either the first or 

3 second sentence of clause (iv) of section 2(c)(2)(D) of the 

4 Railroad Unemployment Insurance Act (45 U.S.C. 

5 352(c)(2)(D)) shall be available to cover the cost of addi6 tional extended unemployment benefits provided under 

7 such section 2(c)(2)(D) by reason of the amendments 

8 made by subsection (a) as well as to cover the cost of such 

9 benefits provided under such section 2(c)(2)(D), as in ef10 fect on the day before the date of the enactment of this 

11 Act. 

12 PART II—REEMPLOYMENT NOW PROGRAM 

13 SEC. 321. ESTABLISHMENT OF REEMPLOYMENT NOW PRO14 GRAM. 

15 (a) IN GENERAL.—There is established the Reem16 ployment NOW program to be carried out by the Sec17 retary of Labor in accordance with this part in order to 

18 facilitate the reemployment of individuals who are receiv19 ing emergency unemployment compensation under title IV 

20 of the Supplemental Appropriations Act, 2008 (Public 

21 Law 110–252; 26 U.S.C. 3304 note) (hereafter in this 

22 part referred to as ‘‘EUC claimants’’). 

23 (b) AUTHORIZATION AND APPROPRIATION.—There 

24 are authorized to be appropriated $4,000,000,000 for fisVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00151 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
152 

•HR 3555 IH

1 cal year 2016 to carry out the Reemployment NOW pro2 gram under this part. 

3 SEC. 322. DISTRIBUTION OF FUNDS. 

4 (a) IN GENERAL.—Of the amount made available 

5 under section 321(b) to carry out this part, the Secretary 

6 of Labor shall— 

7 (1) reserve up to 1 percent for the costs of Fed8 eral administration and for carrying out rigorous 

9 evaluations of the activities conducted under this 

10 part; and 

11 (2) allot the remainder of the funds not re12 served under paragraph (1) in accordance with the 

13 requirements of subsections (b) and (c) to States 

14 that have approved plans under section 323. 

15 (b) ALLOTMENT FORMULA.— 

16 (1) FORMULA FACTORS.—The Secretary of 

17 Labor shall allot the funds available under sub18 section (a)(2) as follows— 

19 (A) two-thirds of such funds shall be allot20 ted on the basis of the relative number of un21 employed individuals in each State, compared to 

22 the total number of unemployed individuals in 

23 all States; and 

24 (B) one-third of such funds shall be allot25 ted on the basis of the relative number of indiVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00152 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
153 

•HR 3555 IH

1 viduals in each State who have been unem2 ployed for 27 weeks or more, compared to the 

3 total number of individuals in all States who 

4 have been unemployed for 27 weeks or more. 

5 (2) CALCULATION.—For purposes of paragraph 

6 (1), the number of unemployed individuals and the 

7 number of individuals unemployed for 27 weeks or 

8 more shall be based on the data for the most recent 

9 12-month period, as determined by the Secretary. 

10 (c) REALLOTMENT.— 

11 (1) FAILURE TO SUBMIT STATE PLAN.—If a 

12 State does not submit a State plan by the time spec13 ified in section 323(b), or a State does not receive 

14 approval of a State plan, the amount the State 

15 would have been eligible to receive pursuant to the 

16 formula under subsection (b) shall be allotted to 

17 States that receive approval of the State plan under 

18 section 323 in accordance with the relative allot19 ments of such States as determined by the Secretary 

20 under subsection (b). 

21 (2) FAILURE TO IMPLEMENT ACTIVITIES ON A

22 TIMELY BASIS.—The Secretary of Labor may, in ac23 cordance with procedures and criteria established by 

24 the Secretary, recapture the portion of the State al25 lotment under this part that remains unobligated if 


SSpencer on DSK4SPTVN1PROD with BILLS
154 

•HR 3555 IH

1 the Secretary determines such funds are not being 

2 obligated at a rate sufficient to meet the purposes 

3 of this part. The Secretary shall reallot such recap4 tured funds to other States that are not subject to 

5 recapture in accordance with the relative share of 

6 the allotments of such States as determined by the 

7 Secretary under subsection (b). 

8 (3) RECAPTURE OF FUNDS.—Funds recaptured 

9 under paragraph (2) shall be available for reobliga10 tion not later than December 31, 2015. 

11 SEC. 323. STATE PLAN. 

12 (a) IN GENERAL.—For a State to be eligible to re13 ceive an allotment under section 322, a State shall submit 

14 to the Secretary of Labor a State plan in such form and 

15 containing such information as the Secretary may require, 

16 which at a minimum shall include— 

17 (1) a description of the activities to be carried 

18 out by the State to assist in the reemployment of eli19 gible individuals to be served in accordance with this 

20 part, including which of the activities authorized in 

21 sections 324 through 328 the State intends to carry 

22 out and an estimate of the amounts the State in23 tends to allocate to the activities, respectively; 

24 (2) a description of the performance outcomes 

25 to be achieved by the State through the activities 


SSpencer on DSK4SPTVN1PROD with BILLS
155 

•HR 3555 IH

1 carried out under this part, including the employ2 ment outcomes to be achieved by participants and 

3 the processes the State will use to track perform4 ance, consistent with guidance provided by the Sec5 retary of Labor regarding such outcomes and proc6 esses; 

7 (3) a description of coordination of activities to 

8 be carried out under this part with activities under 

9 title I of the Workforce Innovation and Opportunity 

10 Act, the Wagner-Peyser Act, and other appropriate 

11 Federal programs; 

12 (4) the timelines for implementation of the ac13 tivities described in the plan and the number of 

14 EUC claimants expected to be enrolled in such ac15 tivities by quarter; 

16 (5) assurances that the State will participate in 

17 the evaluation activities carried out by the Secretary 

18 of Labor under this section; 

19 (6) assurances that the State will provide ap20 propriate reemployment services, including coun21 seling, to any EUC claimant who participates in any 

22 of the programs authorized under this part; and 

23 (7) assurances that the State will report such 

24 information as the Secretary may require relating to 

25 fiscal, performance and other matters, including emVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00155 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
156 

•HR 3555 IH

1 ployment outcomes and effects, which the Secretary 

2 determines are necessary to effectively monitor the 

3 activities carried out under this part. 

4 (b) PLAN SUBMISSION AND APPROVAL.—A State 

5 plan under this section shall be submitted to the Secretary 

6 of Labor for approval not later than 30 days after the 

7 Secretary issues guidance relating to submission of such 

8 plan. The Secretary shall approve such plans if the Sec9 retary determines that the plans meet the requirements 

10 of this part and are appropriate and adequate to carry 

11 out the purposes of this part. 

12 (c) PLAN MODIFICATIONS.—A State may submit 

13 modifications to a State plan that has been approved 

14 under this part, and the Secretary of Labor may approve 

15 such modifications, if the plan as modified would meet the 

16 requirements of this part and are appropriate and ade17 quate to carry out the purposes of this part. 

18 SEC. 324. BRIDGE TO WORK PROGRAM. 

19 (a) IN GENERAL.—A State may use funds allotted 

20 to the State under this part to establish and administer 

21 a Bridge to Work program described in this section. 

22 (b) DESCRIPTION OF PROGRAM.—In order to in23 crease individuals’ opportunities to move to permanent 

24 employment, a State may establish a Bridge to Work pro25 gram to provide an EUC claimant with short-term work 


SSpencer on DSK4SPTVN1PROD with BILLS
157 

•HR 3555 IH

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 

23 described in subsection (b), shall receive such pay24 ments as wages for work performed during their volVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00157 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
158 

•HR 3555 IH

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 


SSpencer on DSK4SPTVN1PROD with BILLS
159 

•HR 3555 IH

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); 


SSpencer on DSK4SPTVN1PROD with BILLS
160 

•HR 3555 IH

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 


SSpencer on DSK4SPTVN1PROD with BILLS
161 

•HR 3555 IH

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 3302(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 section (h), (i), or (j), or by any other re23 quirements that the Secretary may estab24 lish for employers under subsection (c)(6); 

25 and 


SSpencer on DSK4SPTVN1PROD with BILLS
162 

•HR 3555 IH

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 


SSpencer on DSK4SPTVN1PROD with BILLS
163 

•HR 3555 IH

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 


SSpencer on DSK4SPTVN1PROD with BILLS
164 

•HR 3555 IH

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 


SSpencer on DSK4SPTVN1PROD with BILLS
165 

•HR 3555 IH

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; 


SSpencer on DSK4SPTVN1PROD with BILLS
166 

•HR 3555 IH

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. 


SSpencer on DSK4SPTVN1PROD with BILLS
167 

•HR 3555 IH

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 


SSpencer on DSK4SPTVN1PROD with BILLS
168 

•HR 3555 IH

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 subsection (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 compensation for pur20 poses of section 209 of the Social Security Act (42 U.S.C. 

21 409) and for purposes of subtitle A and sections 3101, 

22 3111, and 3301 of the Internal Revenue Code of 1986. 


SSpencer on DSK4SPTVN1PROD with BILLS
169 

•HR 3555 IH

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 


SSpencer on DSK4SPTVN1PROD with BILLS
170 

•HR 3555 IH

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 

25 basis and may be customized to meet the reemployVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00170 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
171 

•HR 3555 IH

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 


SSpencer on DSK4SPTVN1PROD with BILLS
172 

•HR 3555 IH

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 

25 date of the participation) or allow a program particiVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00172 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
173 

•HR 3555 IH

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); and 

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 Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00173 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
174 

•HR 3555 IH

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. TEMPORARY FINANCING OF SHORT-TIME COM20 PENSATION PAYMENTS IN STATES WITH PRO21 GRAMS IN LAW. 

22 (a) PAYMENTS TO STATES.— 

23 (1) IN GENERAL.—Subject to paragraph (3), 

24 there shall be paid to a State an amount equal to 

25 100 percent of the amount of short-time compensaVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00174 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
175 

•HR 3555 IH

1 tion paid under a short-time compensation program 

2 (as defined in section 3306(v) of the Internal Rev3 enue Code of 1986) under the provisions of the 

4 State law. 

5 (2) TERMS OF PAYMENTS.—Payments made to 

6 a State under paragraph (1) shall be payable by way 

7 of reimbursement in such amounts as the Secretary 

8 estimates the State will be entitled to receive under 

9 this section for each calendar month, reduced or in10 creased, as the case may be, by any amount by 

11 which the Secretary finds that the Secretary’s esti12 mates for any prior calendar month were greater or 

13 less than the amounts which should have been paid 

14 to the State. Such estimates may be made on the 

15 basis of such statistical, sampling, or other method 

16 as may be agreed upon by the Secretary and the 

17 State agency of the State involved. 

18 (3) LIMITATIONS ON PAYMENTS.— 

19 (A) GENERAL PAYMENT LIMITATIONS.— 

20 No payments shall be made to a State under 

21 this section for short-time compensation paid to 

22 an individual by the State during a benefit year 

23 in excess of 26 times the amount of regular 

24 compensation (including dependents’ allowVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00175 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
176 

•HR 3555 IH

1 ances) under the State law payable to such in2 dividual for a week of total unemployment. 

3 (B) EMPLOYER LIMITATIONS.—No pay4 ments shall be made to a State under this sec5 tion for benefits paid to an individual by the 

6 State under a short-time compensation program 

7 if such individual is employed by the partici8 pating employer on a seasonal, temporary, or 

9 intermittent basis. 

10 (b) APPLICABILITY.— 

11 (1) IN GENERAL.—Payments to a State under 

12 subsection (a) shall be available for weeks of unem13 ployment— 

14 (A) beginning on or after the date of the 

15 enactment of this Act; and 

16 (B) ending on or before the date that is 3 

17 years and 6 months after the date of the enact18 ment of this Act. 

19 (2) THREE-YEAR FUNDING LIMITATION FOR

20 COMBINED PAYMENTS UNDER THIS SECTION AND

21 SECTION 343.—States may receive payments under 

22 this section and section 343 with respect to a total 

23 of not more than 156 weeks. 

24 (c) TWO-YEAR TRANSITION PERIOD FOR EXISTING

25 PROGRAMS.—During any period that the transition proviVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00176 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
177 

•HR 3555 IH

1 sion under section 341(a)(3) is applicable to a State with 

2 respect to a short-time compensation program, such State 

3 shall be eligible for payments under this section. Subject 

4 to paragraphs (1)(B) and (2) of subsection (b), if at any 

5 point after the date of the enactment of this Act the State 

6 enacts a State law providing for the payment of short7 time compensation under a short-time compensation pro8 gram that meets the definition of such a program under 

9 section 3306(v) of the Internal Revenue Code of 1986, the 

10 State shall be eligible for payments under this section 

11 after the effective date of such enactment. 

12 (d) FUNDING AND CERTIFICATIONS.— 

13 (1) FUNDING.—There are appropriated, out of 

14 moneys in the Treasury not otherwise appropriated, 

15 such sums as may be necessary for purposes of car16 rying out this section. 

17 (2) CERTIFICATIONS.—The Secretary shall 

18 from time to time certify to the Secretary of the 

19 Treasury for payment to each State the sums pay20 able to such State under this section. 

21 (e) DEFINITIONS.—In this section: 

22 (1) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of Labor. 

24 (2) STATE; STATE AGENCY; STATE LAW.—The 

25 terms ‘‘State’’, ‘‘State agency’’, and ‘‘State law’’ 


SSpencer on DSK4SPTVN1PROD with BILLS
178 

•HR 3555 IH

1 have the meanings given those terms in section 205 

2 of the Federal-State Extended Unemployment Com3 pensation Act of 1970 (26 U.S.C. 3304 note). 

4 SEC. 342. TEMPORARY FINANCING OF SHORT-TIME COM5 PENSATION AGREEMENTS. 

6 (a) FEDERAL-STATE AGREEMENTS.— 

7 (1) IN GENERAL.—Any State which desires to 

8 do so may enter into, and participate in, an agree9 ment under this section with the Secretary provided 

10 that such State’s law does not provide for the pay11 ment of short-time compensation under a short-time 

12 compensation program (as defined in section 

13 3306(v) of the Internal Revenue Code of 1986). 

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 

25 Internal Revenue Code of 1986. 


SSpencer on DSK4SPTVN1PROD with BILLS
179 

•HR 3555 IH

1 (2) LIMITATIONS ON PLANS.— 

2 (A) GENERAL PAYMENT LIMITATIONS.—A 

3 short-time compensation plan approved by a 

4 State shall not permit the payment of short5 time compensation to an individual by the State 

6 during a benefit year in excess of 26 times the 

7 amount of regular compensation (including de8 pendents’ allowances) under the State law pay9 able to such individual for a week of total un10 employment. 

11 (B) EMPLOYER LIMITATIONS.—A short12 time compensation plan approved by a State 

13 shall not provide payments to an individual if 

14 such individual is employed by the participating 

15 employer on a seasonal, temporary, or intermit16 tent basis. 

17 (3) EMPLOYER PAYMENT OF COSTS.—Any 

18 short-time compensation plan entered into by an em19 ployer must provide that the employer will pay the 

20 State an amount equal to one-half of the amount of 

21 short-time compensation paid under such plan. Such 

22 amount shall be deposited in the State’s unemploy23 ment fund and shall not be used for purposes of cal24 culating an employer’s contribution rate under secVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00179 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
180 

•HR 3555 IH

1 tion 3303(a)(1) of the Internal Revenue Code of 

2 1986. 

3 (c) PAYMENTS TO STATES.— 

4 (1) IN GENERAL.—There shall be paid to each 

5 State with an agreement under this section an 

6 amount equal to— 

7 (A) one-half of the amount of short-time 

8 compensation paid to individuals by the State 

9 pursuant to such agreement; and 

10 (B) any additional administrative expenses 

11 incurred by the State by reason of such agree12 ment (as determined by the Secretary). 

13 (2) TERMS OF PAYMENTS.—Payments made to 

14 a State under paragraph (1) shall be payable by way 

15 of reimbursement in such amounts as the Secretary 

16 estimates the State will be entitled to receive under 

17 this section for each calendar month, reduced or in18 creased, as the case may be, by any amount by 

19 which the Secretary finds that the Secretary’s esti20 mates for any prior calendar month were greater or 

21 less than the amounts which should have been paid 

22 to the State. Such estimates may be made on the 

23 basis of such statistical, sampling, or other method 

24 as may be agreed upon by the Secretary and the 

25 State agency of the State involved. 


SSpencer on DSK4SPTVN1PROD with BILLS
181 

•HR 3555 IH

1 (3) FUNDING.—There are appropriated, out of 

2 moneys in the Treasury not otherwise appropriated, 

3 such sums as may be necessary for purposes of car4 rying out this section. 

5 (4) CERTIFICATIONS.—The Secretary shall 

6 from time to time certify to the Secretary of the 

7 Treasury for payment to each State the sums pay8 able to such State under this section. 

9 (d) APPLICABILITY.— 

10 (1) IN GENERAL.—An agreement entered into 

11 under this section shall apply to weeks of unemploy12 ment— 

13 (A) beginning on or after the date on 

14 which such agreement is entered into; and 

15 (B) ending on or before the date that is 2 

16 years and 13 weeks after the date of the enact17 ment of this Act. 

18 (2) TWO-YEAR FUNDING LIMITATION.—States 

19 may receive payments under this section with re20 spect to a total of not more than 104 weeks. 

21 (e) SPECIAL RULE.—If a State has entered into an 

22 agreement under this section and subsequently enacts a 

23 State law providing for the payment of short-time com24 pensation under a short-time compensation program that 

25 meets the definition of such a program under section 


SSpencer on DSK4SPTVN1PROD with BILLS
182 

•HR 3555 IH

1 3306(v) of the Internal Revenue Code of 1986, the 

2 State— 

3 (1) shall not be eligible for payments under this 

4 section for weeks of unemployment beginning after 

5 the effective date of such State law; and 

6 (2) subject to paragraphs (1)(B) and (2) of sec7 tion 342(b), shall be eligible to receive payments 

8 under section 342 after the effective date of such 

9 State law. 

10 (f) DEFINITIONS.—In this section: 

11 (1) SECRETARY.—The term ‘‘Secretary’’ means 

12 the Secretary of Labor. 

13 (2) STATE; STATE AGENCY; STATE LAW.—The 

14 terms ‘‘State’’, ‘‘State agency’’, and ‘‘State law’’ 

15 have the meanings given those terms in section 205 

16 of the Federal-State Extended Unemployment Com17 pensation Act of 1970 (26 U.S.C. 3304 note). 

18 SEC. 343. GRANTS FOR SHORT-TIME COMPENSATION PRO19 GRAMS. 

20 (a) GRANTS.— 

21 (1) FOR IMPLEMENTATION OR IMPROVED AD22 MINISTRATION.—The Secretary shall award grants 

23 to States that enact short-time compensation pro24 grams (as defined in subsection (i)(2)) for the purVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00182 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
183 

•HR 3555 IH

1 pose of implementation or improved administration 

2 of such programs. 

3 (2) FOR PROMOTION AND ENROLLMENT.—The 

4 Secretary shall award grants to States that are eligi5 ble and submit plans for a grant under paragraph 

6 (1) for such States to promote and enroll employers 

7 in short-time compensation programs (as so de8 fined). 

9 (3) ELIGIBILITY.— 

10 (A) IN GENERAL.—The Secretary shall de11 termine eligibility criteria for the grants under 

12 paragraphs (1) and (2). 

13 (B) CLARIFICATION.—A State admin14 istering a short-time compensation program, in15 cluding a program being administered by a 

16 State that is participating in the transition 

17 under the provisions of sections 341(a)(3) and 

18 342(c), that does not meet the definition of a 

19 short-time compensation program under section 

20 3306(v) of the Internal Revenue Code of 1986, 

21 and a State with an agreement under section 

22 342, shall not be eligible to receive a grant 

23 under this section until such time as the State 

24 law of the State provides for payments under a 


SSpencer on DSK4SPTVN1PROD with BILLS
184 

•HR 3555 IH

1 short-time compensation program that meets 

2 such definition and such law. 

3 (b) AMOUNT OF GRANTS.— 

4 (1) IN GENERAL.—The maximum amount avail5 able for making grants to a State under paragraphs 

6 (1) and (2) shall be equal to the amount obtained 

7 by multiplying $700,000,000 (less the amount used 

8 by the Secretary under subsection (e)) by the same 

9 ratio as would apply under subsection (a)(2)(B) of 

10 section 903 of the Social Security Act (42 U.S.C. 

11 1103) for purposes of determining such State’s 

12 share of any excess amount (as described in sub13 section (a)(1) of such section) that would have been 

14 subject to transfer to State accounts, as of October 

15 1, 2013, under the provisions of subsection (a) of 

16 such section. 

17 (2) AMOUNT AVAILABLE FOR DIFFERENT

18 GRANTS.—Of the maximum incentive payment deter19 mined under paragraph (1) with respect to a 

20 State— 

21 (A) one-third shall be available for a grant 

22 under subsection (a)(1); and 

23 (B) two-thirds shall be available for a 

24 grant under subsection (a)(2). 

25 (c) GRANT APPLICATION AND DISBURSAL.— 


SSpencer on DSK4SPTVN1PROD with BILLS
185 

•HR 3555 IH

1 (1) APPLICATION.—Any State seeking a grant 

2 under paragraph (1) or (2) of subsection (a) shall 

3 submit an application to the Secretary at such time, 

4 in such manner, and complete with such information 

5 as the Secretary may require. In no case may the 

6 Secretary award a grant under this section with re7 spect to an application that is submitted after De8 cember 31, 2016. 

9 (2) NOTICE.—The Secretary shall, within 30 

10 days after receiving a complete application, notify 

11 the State agency of the State of the Secretary’s find12 ings with respect to the requirements for a grant 

13 under paragraph (1) or (2) (or both) of subsection 

14 (a). 

15 (3) CERTIFICATION.—If the Secretary finds 

16 that the State law provisions meet the requirements 

17 for a grant under subsection (a), the Secretary shall 

18 thereupon make a certification to that effect to the 

19 Secretary of the Treasury, together with a certifi20 cation as to the amount of the grant payment to be 

21 transferred to the State account in the Unemploy22 ment Trust Fund (as established in section 904(a) 

23 of the Social Security Act (42 U.S.C. 1104(a))) pur24 suant to that finding. The Secretary of the Treasury 

25 shall make the appropriate transfer to the State acVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00185 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
186 

•HR 3555 IH

1 count within 7 days after receiving such certifi2 cation. 

3 (4) REQUIREMENT.—No certification of compli4 ance with the requirements for a grant under para5 graph (1) or (2) of subsection (a) may be made with 

6 respect to any State whose— 

7 (A) State law is not otherwise eligible for 

8 certification under section 303 of the Social Se9 curity Act (42 U.S.C. 503) or approvable under 

10 section 3304 of the Internal Revenue Code of 

11 1986; or 

12 (B) short-time compensation program is 

13 subject to discontinuation or is not scheduled to 

14 take effect within 12 months of the certifi15 cation. 

16 (d) USE OF FUNDS.—The amount of any grant 

17 awarded under this section shall be used for the implemen18 tation of short-time compensation programs and the over19 all administration of such programs and the promotion 

20 and enrollment efforts associated with such programs, 

21 such as through— 

22 (1) the creation or support of rapid response 

23 teams to advise employers about alternatives to lay24 offs; 


SSpencer on DSK4SPTVN1PROD with BILLS
187 

•HR 3555 IH

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 


SSpencer on DSK4SPTVN1PROD with BILLS
188 

•HR 3555 IH

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. 

18 (3) STATE; STATE AGENCY; STATE LAW.—The 

19 terms ‘‘State’’, ‘‘State agency’’, and ‘‘State law’’ 

20 have the meanings given those terms in section 205 

21 of the Federal-State Extended Unemployment Com22 pensation Act of 1970 (26 U.S.C. 3304 note). 


SSpencer on DSK4SPTVN1PROD with BILLS
189 

•HR 3555 IH

1 SEC. 344. 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), the Secretary of Labor 

7 (in this section referred to as the ‘‘Secretary’’) shall— 

8 (1) develop model legislative language which 

9 may be used by States in developing and enacting 

10 such programs and periodically review and revise 

11 such model legislative language; 

12 (2) provide technical assistance and guidance in 

13 developing, enacting, and implementing such pro14 grams; and 

15 (3) establish reporting requirements for States, 

16 including reporting on— 

17 (A) the number of estimated averted lay18 offs; 

19 (B) the number of participating employers 

20 and workers; and 

21 (C) such other items as the Secretary of 

22 Labor determines are appropriate. 

23 (b) MODEL LANGUAGE AND GUIDANCE.—The model 

24 language and guidance developed under subsection (a) 

25 shall allow sufficient flexibility by States and participating 


SSpencer on DSK4SPTVN1PROD with BILLS
190 

•HR 3555 IH

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. 345. REPORTS. 

9 (a) REPORTS.— 

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). 

22 (B) An analysis of the significant chal23 lenges to State enactment and implementation 

24 of short-time compensation programs. 


SSpencer on DSK4SPTVN1PROD with BILLS
191 

•HR 3555 IH

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.—Section 51(b)(3) of the Internal 

17 Revenue Code is amended by inserting ‘‘$10,000 per year 

18 in the case of any individual who is a qualified long-term 

19 unemployed individual by reason of subsection (d)(11), 

20 and’’ before ‘‘$12,000 per year’’. 

21 (b) LONG-TERM UNEMPLOYED INDIVIDUALS TAX

22 CREDITS.—Section 51(d) of such Code is amended— 

23 (1) in paragraph (1), by striking ‘‘or’’ at the 

24 end of subparagraph (H), by striking the period at 

25 the end of subparagraph (I) and inserting ‘‘, or’’, 


SSpencer on DSK4SPTVN1PROD with BILLS
192 

•HR 3555 IH

1 and by inserting after subparagraph (I) the fol2 lowing: 

3 ‘‘(J) a qualified long-term unemployed in4 dividual.’’, and 

5 (2) by redesignating paragraphs (11) through 

6 (14) as paragraphs (12) through (15), respectively, 

7 and by inserting after paragraph (10) the following 

8 new paragraph: 

9 ‘‘(11) QUALIFIED LONG-TERM UNEMPLOYED

10 INDIVIDUAL.— 

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

12 long-term unemployed individual’ means any in13 dividual who was not a student for at least 6 

14 months during the 1-year period ending on the 

15 hiring date and is certified by the designated 

16 local agency as having aggregate periods of un17 employment during the 1-year period ending on 

18 the hiring date which equal or exceed 6 months. 

19 ‘‘(B) STUDENT.—For purposes of this sub20 section, a student is an individual enrolled at 

21 least half-time in a program that leads to a de22 gree, certificate, or other recognized educational 

23 credential for at least 6 months whether or not 

24 consecutive during the 1-year period ending on 

25 the hiring date.’’. 


SSpencer on DSK4SPTVN1PROD with BILLS
193 

•HR 3555 IH

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

2 such Code, as amended by subsection (b), is amended by 

3 adding at the end the following new paragraph: 

4 ‘‘(16) CREDIT ALLOWED FOR QUALIFIED LONG5 TERM UNEMPLOYED INDIVIDUALS.— 

6 ‘‘(A) IN GENERAL.—Any qualified long7 term unemployed individual under paragraph 

8 (11) will be treated as certified by the des9 ignated local agency as having aggregate peri10 ods of unemployment if the individual is cer11 tified by the designated local agency as being in 

12 receipt of unemployment compensation under 

13 State or Federal law for not less than 6 months 

14 during the 1-year period ending on the hiring 

15 date. 

16 ‘‘(B) REGULATORY AUTHORITY.—The Sec17 retary may provide alternative methods for cer18 tification as a qualified long-term unemployed 

19 individual under paragraph (11), at the Sec20 retary’s discretion.’’. 

21 (d) CREDIT MADE AVAILABLE TO TAX-EXEMPT EM22 PLOYERS IN CERTAIN CIRCUMSTANCES.—Section 3111(e) 

23 of such Code is amended— 

24 (1) in the heading for the subsection is amend25 ed by inserting ‘‘AND QUALIFIED LONG-TERM UNVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00193 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
194 

•HR 3555 IH

1 EMPLOYED INDIVIDUALS’’ after ‘‘QUALIFIED VET2 ERANS’’, 

3 (2) in paragraph (1) by inserting ‘‘or qualified 

4 long-term unemployed individual’’ after ‘‘qualified 

5 veteran’’, 

6 (3) in paragraph (2) by inserting ‘‘and qualified 

7 long-term unemployed individuals’’ after ‘‘qualified 

8 veterans’’, 

9 (4) in paragraph (3)(C) by inserting ‘‘and 

10 qualified long-term unemployed individual, as the 

11 case may be,’’ after ‘‘qualified veteran’’, 

12 (5) in paragraph (4) by inserting ‘‘or qualified 

13 long-term unemployed individual’’ after ‘‘qualified 

14 veteran’’ both places it appears, and 

15 (6) in paragraph (5) by striking ‘‘and’’ at the 

16 end of subparagraph (A), by striking the period at 

17 the end of subparagraph (B) and inserting ‘‘, and’’, 

18 and by adding at the end the following: 

19 ‘‘(C) the term ‘qualified long-term unem20 ployed individual’ has meaning given such term 

21 by section 51(d)(11).’’. 

22 (e) TREATMENT OF POSSESSIONS.— 

23 (1) PAYMENTS TO POSSESSIONS.— 

24 (A) MIRROR CODE POSSESSIONS.—The 

25 Secretary of the Treasury shall pay to each posVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00194 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
195 

•HR 3555 IH

1 session of the United States with a mirror code 

2 tax system amounts equal to the loss to that 

3 possession by reason of the amendments made 

4 by this section. Such amounts shall be deter5 mined by the Secretary of the Treasury based 

6 on information provided by the government of 

7 the respective possession of the United States. 

8 (B) OTHER POSSESSIONS.—The Secretary 

9 of the Treasury shall pay to each possession of 

10 the United States which does not have a mirror 

11 code tax system the amount estimated by the 

12 Secretary of the Treasury as being equal to the 

13 loss to that possession that would have occurred 

14 by reason of the amendments made by this sec15 tion if a mirror code tax system had been in ef16 fect in such possession. The preceding sentence 

17 shall not apply with respect to any possession 

18 of the United States unless such possession es19 tablishes to the satisfaction of the Secretary 

20 that the possession has implemented (or, at the 

21 discretion of the Secretary, will implement) an 

22 income tax benefit which is substantially equiv23 alent to the income tax credit in effect after the 

24 amendments made by this section. 


SSpencer on DSK4SPTVN1PROD with BILLS
196 

•HR 3555 IH

1 (2) COORDINATION WITH CREDIT ALLOWED

2 AGAINST UNITED STATES INCOME TAXES.—The 

3 credit allowed against United States income taxes 

4 for any taxable year under the amendments made by 

5 this section to section 51 of the Internal Revenue 

6 Code of 1986 to any person with respect to any 

7 qualified long-term unemployed individual shall be 

8 reduced by the amount of any credit (or other tax 

9 benefit described in paragraph (1)(B)) allowed to 

10 such person against income taxes imposed by the 

11 possession of the United States by reason of this 

12 subsection with respect to such qualified long-term 

13 unemployed individual for such taxable year. 

14 (3) DEFINITIONS AND SPECIAL RULES.— 

15 (A) POSSESSION OF THE UNITED

16 STATES.—For purposes of this subsection, the 

17 term ‘‘possession of the United States’’ includes 

18 American Samoa, Guam, the Commonwealth of 

19 the Northern Mariana Islands, the Common20 wealth of Puerto Rico, and the United States 

21 Virgin Islands. 

22 (B) MIRROR CODE TAX SYSTEM.—For pur23 poses of this subsection, the term ‘‘mirror code 

24 tax system’’ means, with respect to any posses25 sion of the United States, the income tax sysVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00196 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
197 

•HR 3555 IH

1 tem of such possession if the income tax liabil2 ity of the residents of such possession under 

3 such system is determined by reference to the 

4 income tax laws of the United States as if such 

5 possession were the United States. 

6 (C) TREATMENT OF PAYMENTS.—For pur7 poses of section 1324(b)(2) of title 31, United 

8 States Code, the payments under this sub9 section shall be treated in the same manner as 

10 a refund due from credit provisions described in 

11 such section. 

12 (f) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to individuals who begin work for 

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

15 Subtitle C—Pathways Back to 

16 Work 

17 SEC. 361. SHORT TITLE. 

18 This subtitle may be cited as the ‘‘Pathways Back 

19 to Work Act of 2015’’. 

20 SEC. 362. AUTHORIZATION OF APPROPRIATIONS. 

21 There is authorized to be appropriated to the Sec22 retary of Labor $5,000,000,000 to carry out this subtitle. 

23 SEC. 363. AVAILABILITY OF FUNDS. 

24 (a) IN GENERAL.—Of the amounts available under 

25 section 362(b), the Secretary of Labor shall— 


SSpencer on DSK4SPTVN1PROD with BILLS
198 

•HR 3555 IH

1 (1) allot $2,000,000,000 in accordance with 

2 section 364 to provide subsidized employment to un3 employed, low-income adults; 

4 (2) allot $1,500,000,000 in accordance with 

5 section 365 to provide summer and year-round em6 ployment opportunities to low-income youth; and 

7 (3) award $1,500,000,000 in competitive grants 

8 in accordance with section 366 to local entities to 

9 carry out work-based training and other work-re10 lated and educational strategies and activities of 

11 demonstrated effectiveness to unemployed, low-in12 come adults and low-income youth to provide the 

13 skills and assistance needed to obtain employment. 

14 (b) RESERVATION.—The Secretary of Labor may re15 serve not more than 1 percent of amounts available under 

16 each of paragraphs (1) through (3) of subsection (a) for 

17 the costs of technical assistance, evaluations and Federal 

18 administration of this Act. 

19 (c) PERIOD OF AVAILABILITY.—The amounts appro20 priated under this Act shall be available for obligation by 

21 the Secretary of Labor until December 31, 2016, and shall 

22 be available for expenditure by grantees and subgrantees 

23 until September 30, 2017. 


SSpencer on DSK4SPTVN1PROD with BILLS
199 

•HR 3555 IH

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 Innovation and Opportunity Act that meets the 

11 requirements 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.— 


SSpencer on DSK4SPTVN1PROD with BILLS
200 

•HR 3555 IH

1 (1) RESERVATIONS FOR OUTLYING AREAS AND

2 TRIBES.—Of the funds described subsection (a)(1), 

3 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 Innovation 

11 and Opportunity Act to provide subsidized em12 ployment to low-income adults who are unem13 ployed. 

14 (2) STATES.—After determining the amounts to 

15 be reserved under paragraph (1), the Secretary of 

16 Labor shall allot the remainder of the amounts de17 scribed in subsection (a)(1) among the States as fol18 lows— 

19 (A) one-third shall be allotted on the basis 

20 of the relative number of unemployed individ21 uals in areas of substantial unemployment in 

22 each State, compared to the total number of 

23 unemployed individuals in areas of substantial 

24 unemployment in all States; 


SSpencer on DSK4SPTVN1PROD with BILLS
201 

•HR 3555 IH

1 (B) one-third shall be allotted on the basis 

2 of the relative excess number of unemployed in3 dividuals in each State, compared to the total 

4 excess number of unemployed individuals in all 

5 States; and 

6 (C) one-third shall be allotted on the basis 

7 of the relative number of disadvantaged adults 

8 and youth in each State, compared to the total 

9 number of disadvantaged adults and youth in 

10 all States. 

11 (3) DEFINITIONS.—For purposes of the for12 mula described in paragraph (2)— 

13 (A) AREA OF SUBSTANTIAL UNEMPLOY14 MENT.—The term ‘‘area of substantial unem15 ployment’’ means any contiguous area with a 

16 population of at least 10,000 and that has an 

17 average rate of unemployment of at least 6.5 

18 percent for the most recent 12 months, as de19 termined by the Secretary. 

20 (B) DISADVANTAGED ADULTS AND

21 YOUTH.—The term ‘‘disadvantaged adults and 

22 youth’’ means an individual who is age 16 and 

23 older who received an income, or is a member 

24 of a family that received a total family income, 


SSpencer on DSK4SPTVN1PROD with BILLS
202 

•HR 3555 IH

1 that, in relation to family size, does not exceed 

2 the higher 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 added to the amounts 


SSpencer on DSK4SPTVN1PROD with BILLS
203 

•HR 3555 IH

1 available for the competitive grants under section 

2 363(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; 


SSpencer on DSK4SPTVN1PROD with BILLS
204 

•HR 3555 IH

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 Innovation and Oppor16 tunity Act, the TANF program under part A of 

17 title IV of the Social Security Act, and other 

18 appropriate Federal and State programs that 

19 may assist unemployed, low-income adults in 

20 obtaining 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; 


SSpencer on DSK4SPTVN1PROD with BILLS
205 

•HR 3555 IH

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 102 or 103 of the Work19 force Innovation and Opportunity Act. 

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 


SSpencer on DSK4SPTVN1PROD with BILLS
206 

•HR 3555 IH

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 

24 for the administration of the adult formula proVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00206 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
207 

•HR 3555 IH

1 gram under subtitle B of title I of the Work2 force Innovation and Opportunity Act; 

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 


SSpencer on DSK4SPTVN1PROD with BILLS
208 

•HR 3555 IH

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 108 of the Workforce Inno24 vation and Opportunity Act. 


SSpencer on DSK4SPTVN1PROD with BILLS
209 

•HR 3555 IH

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 

24 shall allocate funds to local workforce inVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00209 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
210 

•HR 3555 IH

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 


SSpencer on DSK4SPTVN1PROD with BILLS
211 

•HR 3555 IH

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. 


SSpencer on DSK4SPTVN1PROD with BILLS
212 

•HR 3555 IH

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 novation and Opportunity Act that meets the require12 ments of this section, for the purpose of providing summer 

13 employment and year-round employment opportunities to 

14 low-income 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 


SSpencer on DSK4SPTVN1PROD with BILLS
213 

•HR 3555 IH

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 Innovation and 

11 Opportunity Act relating to youth activities. 

12 (c) STATE ALLOTMENTS.— 

13 (1) RESERVATIONS FOR OUTLYING AREAS AND

14 TRIBES.—Of the funds described subsection (a), the 

15 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 Innovation 

23 and Opportunity Act to provide summer and 

24 year-round employment opportunities to low-in25 come youth. 


SSpencer on DSK4SPTVN1PROD with BILLS
214 

•HR 3555 IH

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 added to the amounts available for the competitive 

16 grants under section 363(a)(3). 

17 (d) STATE PLAN MODIFICATION.— 

18 (1) IN GENERAL.—For a State to be eligible to 

19 receive an allotment of the funds under subsection 

20 (c), the Governor of the State shall submit to the 

21 Secretary of Labor a modification to a State plan 

22 approved under section 102 or 103 of the Workforce 

23 Innovation and Opportunity Act, or other request 

24 for funds described in guidance in subsection (b), in 

25 such form and containing such information as the 


SSpencer on DSK4SPTVN1PROD with BILLS
215 

•HR 3555 IH

1 Secretary may require. At a minimum, such plan 

2 modification or request shall include— 

3 (A) a description of the strategies and ac4 tivities to be carried out to provide summer em5 ployment opportunities and year-round employ6 ment opportunities, including the linkages to 

7 educational activities, consistent with subsection 

8 (f); 

9 (B) a description of the requirements the 

10 States will apply relating to the eligibility of 

11 low-income youth, consistent with section 

12 368(4), for summer employment opportunities 

13 and year-round employment opportunities, 

14 which may include criteria to target assistance 

15 to particular categories of such low-income 

16 youth, such as youth with disabilities, con17 sistent with subsection (f); 

18 (C) a description of the performance out19 comes to be achieved by the State through the 

20 activities carried out under this section and the 

21 processes the State will use to track perform22 ance, consistent with guidance provided by the 

23 Secretary of Labor regarding such outcomes 

24 and processes and with section 367(b); 


SSpencer on DSK4SPTVN1PROD with BILLS
216 

•HR 3555 IH

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 


SSpencer on DSK4SPTVN1PROD with BILLS
217 

•HR 3555 IH

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.— 


SSpencer on DSK4SPTVN1PROD with BILLS
218 

•HR 3555 IH

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 

25 Governor a modification to a local plan apVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00218 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
219 

•HR 3555 IH

1 proved under section 108 of the Workforce In2 novation and Opportunity Act, or other form of 

3 request for funds as may be identified in the 

4 guidance issued under subsection (b), not later 

5 than 30 days after the submission by the State 

6 of the modification to the State plan or other 

7 request for funds identified in subsection (b), 

8 describing the strategies and activities to be 

9 carried out 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. 

24 (3) REALLOCATION.—If a local workforce in25 vestment board does not submit a local plan modiVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00219 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
220 

•HR 3555 IH

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 


SSpencer on DSK4SPTVN1PROD with BILLS
221 

•HR 3555 IH

1 activities authorized under section 129 of the 

2 Workforce Innovation and Opportunity Act, to 

3 low-income youth, ages 16 through 24, with a 

4 priority 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, State and local 


SSpencer on DSK4SPTVN1PROD with BILLS
222 

•HR 3555 IH

1 workforce investment areas shall provide such re2 ports as the Secretary of Labor may require regard3 ing the performance outcomes described in section 

4 367(a)(5). 

5 SEC. 366. WORK-BASED EMPLOYMENT STRATEGIES OF 

6 DEMONSTRATED EFFECTIVENESS. 

7 (a) IN GENERAL.—From the funds available under 

8 section 363(a)(3), the Secretary of Labor shall award 

9 grants on a competitive basis to eligible entities to carry 

10 out work-based strategies of demonstrated effectiveness. 

11 (b) USE OF FUNDS.—The grants awarded under this 

12 section shall be used to support strategies and activities 

13 of demonstrated effectiveness that are designed to provide 

14 unemployed, low-income adults or low-income youth with 

15 the skills that will lead to employment as part of or upon 

16 completion of participation in such activities. Such strate17 gies and activities may include— 

18 (1) on-the-job training, registered apprentice19 ship programs, or other programs that combine work 

20 with skills development; 

21 (2) sector-based training programs that have 

22 been designed to meet the specific requirements of 

23 an employer or group of employers in that sector 

24 and where employers are committed to hiring indi25 viduals upon successful completion of the training; 


SSpencer on DSK4SPTVN1PROD with BILLS
223 

•HR 3555 IH

1 (3) training that supports an industry sector or 

2 an employer-based or labor-management committee 

3 industry partnership which includes a significant 

4 work-experience component; 

5 (4) acquisition of industry-recognized creden6 tials in a field identified by the State or local work7 force investment area as a growth sector or demand 

8 industry in which there are likely to be significant 

9 job opportunities in the short term; 

10 (5) connections to immediate work opportuni11 ties, including subsidized employment opportunities, 

12 or summer employment opportunities for youth, that 

13 includes concurrent skills training and other sup14 ports; 

15 (6) career academies that provide students with 

16 the academic preparation and training, including 

17 paid internships and concurrent enrollment in com18 munity colleges or other postsecondary institutions, 

19 needed to pursue a career pathway that leads to 

20 postsecondary credentials and high-demand jobs; 

21 and 

22 (7) adult basic education and integrated basic 

23 education and training models for low-skilled adults, 

24 hosted at community colleges or at other sites, to 


SSpencer on DSK4SPTVN1PROD with BILLS
224 

•HR 3555 IH

1 prepare individuals for jobs that are in demand in 

2 a local area. 

3 (c) ELIGIBLE ENTITY.—An eligible entity shall in4 clude a local chief elected official, in collaboration with the 

5 local workforce investment board for the local workforce 

6 investment area involved (which may include a partnership 

7 with of such officials and boards in the region and in the 

8 State), or an entity eligible to apply for an Indian and 

9 Native American grant under section 166 of the Work10 force Innovation and Opportunity Act, and may include, 

11 in partnership with such officials, boards, and entities, the 

12 following— 

13 (1) employers or employer associations; 

14 (2) adult education providers and postsecondary 

15 educational institutions, including community col16 leges; 

17 (3) community-based organizations; 

18 (4) joint labor-management committees; 

19 (5) work-related intermediaries; or 

20 (6) other appropriate organizations. 

21 (d) APPLICATION.—An eligible entity seeking to re22 ceive a grant under this section shall submit to the Sec23 retary of Labor an application at such time, in such man24 ner, and containing such information as the Secretary may 

25 require. At a minimum, the application shall— 


SSpencer on DSK4SPTVN1PROD with BILLS
225 

•HR 3555 IH

1 (1) describe the strategies and activities of dem2 onstrated effectiveness that the eligible entities will 

3 carry out to provide unemployed, low-income adults 

4 and low-income youth with the skills that will lead 

5 to employment upon completion of participation in 

6 such activities; 

7 (2) describe the requirements that will apply re8 lating to the eligibility of unemployed, low-income 

9 adults or low-income youth, consistent with para10 graphs (4) and (6) of section 368, for activities car11 ried out under this section, which may include cri12 teria to target assistance to particular categories of 

13 such adults and youth, such as individuals with dis14 abilities or individuals who have exhausted all rights 

15 to unemployment compensation; 

16 (3) describe how the strategies and activities 

17 address the needs of the target populations identi18 fied in paragraph (2) and the needs of employers in 

19 the local area; 

20 (4) describe the expected outcomes to be 

21 achieved by implementing the strategies and activi22 ties; 

23 (5) provide evidence that the funds provided 

24 may be expended expeditiously and efficiently to im25 plement the strategies and activities; 


SSpencer on DSK4SPTVN1PROD with BILLS
226 

•HR 3555 IH

1 (6) describe how the strategies and activities 

2 will be coordinated with other Federal, State, and 

3 local programs providing employment, education, 

4 and supportive activities; 

5 (7) provide evidence of employer commitment to 

6 participate in the activities funded under this sec7 tion, including identification of anticipated occupa8 tional and skill needs; 

9 (8) provide assurances that the grant recipient 

10 will report such information as the Secretary may 

11 require relating to fiscal, performance and other 

12 matters that the Secretary determines is necessary 

13 to effectively monitor the activities carried out under 

14 this section; and 

15 (9) provide assurances that the use of the funds 

16 provided under this section will comply with the 

17 labor standards and protections described section 

18 367(a). 

19 (e) PRIORITY IN AWARDS.—In awarding grants 

20 under this section, the Secretary of Labor shall give a pri21 ority to applications submitted by eligible entities from 

22 areas of high poverty and high unemployment, as defined 

23 by the Secretary, such as Public Use Microdata Areas 

24 (PUMAs) as designated by the Census Bureau. 


SSpencer on DSK4SPTVN1PROD with BILLS
227 

•HR 3555 IH

1 (f) COORDINATION OF FEDERAL ADMINISTRATION.— 

2 The Secretary of Labor shall administer this section in 

3 coordination with the Secretary of Education, the Sec4 retary of Health and Human Services, and other appro5 priate agency heads, to ensure the effective implementa6 tion of this section. 

7 SEC. 367. GENERAL REQUIREMENTS. 

8 (a) LABOR STANDARDS AND PROTECTIONS.—Activi9 ties provided with funds under this Act shall be subject 

10 to the requirements and restrictions, including the labor 

11 standards, described in section 181 of the Workforce Inno12 vation and Opportunity Act and the nondiscrimination 

13 provisions of section 188 of such Act, in addition to other 

14 applicable Federal laws. 

15 (b) REPORTING.—The Secretary may require the re16 porting of information relating to fiscal, performance and 

17 other matters that the Secretary determines is necessary 

18 to effectively monitor the activities carried out with funds 

19 provided under this Act. At a minimum, grantees and sub20 grantees shall provide information relating to— 

21 (1) the number individuals participating in ac22 tivities with funds provided under this Act and the 

23 number of such individuals who have completed such 

24 participation; 


SSpencer on DSK4SPTVN1PROD with BILLS
228 

•HR 3555 IH

1 (2) the expenditures of funds provided under 

2 the Act; 

3 (3) the number of jobs created pursuant to the 

4 activities carried out under this Act; 

5 (4) the demographic characteristics of individ6 uals participating in activities under this Act; and 

7 (5) the performance outcomes of individuals 

8 participating in activities under this Act, including— 

9 (A) for adults participating in activities 

10 funded under section 364 of this Act— 

11 (i) entry in unsubsidized employment; 

12 (ii) retention in unsubsidized employ13 ment; and 

14 (iii) earnings in unsubsidized employ15 ment; 

16 (B) for low-income youth participating in 

17 summer employment activities under sections 

18 365 and 366— 

19 (i) work readiness skill attainment 

20 using an employer validated checklist; and 

21 (ii) placement in or return to sec22 ondary or postsecondary education or 

23 training, or entry into unsubsidized em24 ployment; 


SSpencer on DSK4SPTVN1PROD with BILLS
229 

•HR 3555 IH

1 (C) for low-income youth participating in 

2 year-round employment activities under section 

3 365 or in activities under section 366— 

4 (i) placement in or return to post-sec5 ondary education; 

6 (ii) attainment of high school diploma 

7 or its equivalent; 

8 (iii) attainment of an industry-recog9 nized credential; and 

10 (iv) entry into unsubsidized employ11 ment, retention, and earnings as described 

12 in subparagraph (A); and 

13 (D) for unemployed, low-income adults 

14 participating in activities under section 366— 

15 (i) entry into unsubsidized employ16 ment, retention, and earnings as described 

17 in subparagraph (A); and 

18 (ii) the attainment of industry-recog19 nized credentials. 

20 (c) ACTIVITIES REQUIRED TO BE ADDITIONAL.— 

21 Funds provided under this Act shall only be used for ac22 tivities that are in addition to activities that would other23 wise be available in the State or local area in the absence 

24 of such funds. 


SSpencer on DSK4SPTVN1PROD with BILLS
230 

•HR 3555 IH

1 (d) ADDITIONAL REQUIREMENTS.—The Secretary of 

2 Labor may establish such additional requirements as the 

3 Secretary determines may be necessary to ensure fiscal in4 tegrity, effective monitoring, and the appropriate and 

5 prompt implementation of the activities under this Act. 

6 (e) REPORT OF INFORMATION AND EVALUATIONS TO

7 CONGRESS AND THE PUBLIC.—The Secretary of Labor 

8 shall provide to the appropriate Committees of the Con9 gress and make available to the public the information re10 ported pursuant to subsection (b) and the evaluations of 

11 activities carried out pursuant to the funds reserved under 

12 section 363(b). 

13 SEC. 368. DEFINITIONS. 

14 In this Act: 

15 (1) LOCAL CHIEF ELECTED OFFICIAL.—The 

16 term ‘‘local chief elected official’’ means the chief 

17 elected executive officer of a unit of local govern18 ment in a local workforce investment area or in the 

19 case where more than one unit of general govern20 ment, the individuals designated under an agreement 

21 described in section 107(c)(1)(B) of the Workforce 

22 Innovation and Opportunity Act. 

23 (2) LOCAL WORKFORCE INVESTMENT AREA.— 

24 The term ‘‘local workforce investment area’’ means 


SSpencer on DSK4SPTVN1PROD with BILLS
231 

•HR 3555 IH

1 such area designated under section 106 of the Work2 force Innovation and Opportunity Act. 

3 (3) LOCAL WORKFORCE INVESTMENT BOARD.— 

4 The term ‘‘local workforce investment board’’ means 

5 such board established under section 107 of the 

6 Workforce Innovation and Opportunity Act. 

7 (4) LOW-INCOME YOUTH.—The term ‘‘low-in8 come youth’’ means an individual who— 

9 (A) is aged 16 through 24; and 

10 (B) meets the definition of a ‘‘low-income 

11 individual’’ provided in section 3 of the Work12 force Innovation and Opportunity Act, except 

13 that States, local workforce investment areas 

14 under section 365, and eligible entities under 

15 section 366(c), subject to approval in the appli16 cable State plans, local plans, and applications 

17 for funds, may increase the income level speci18 fied in subparagraph (B)(i) of such section to 

19 an amount not in excess of 200 percent of the 

20 poverty line for purposes of determining eligi21 bility for participation in activities under sec22 tions 365 and 366 of this Act. 

23 (5) OUTLYING AREA.—The term ‘‘outlying 

24 area’’ means the United States Virgin Islands, 

25 Guam, American Samoa, the Commonwealth of the 


SSpencer on DSK4SPTVN1PROD with BILLS
232 

•HR 3555 IH

1 Northern Mariana Islands, and the Republic of 

2 Palau. 

3 (6) UNEMPLOYED, LOW-INCOME ADULT.—The 

4 term ‘‘unemployed, low-income adult’’ means an in5 dividual who— 

6 (A) is age 18 or older; 

7 (B) is without employment and is seeking 

8 assistance under this Act to obtain employment; 

9 and 

10 (C) meets the definition of a ‘‘low-income 

11 individual’’ under section 3 of the Workforce 

12 Innovation and Opportunity Act, except that 

13 States, local entities described in section 

14 364(d)(1), and eligible entities under section 

15 366(c), subject to approval in the applicable 

16 State plans, local plans, and applications for 

17 funds, may increase the income level specified 

18 in subparagraph (B)(i) of such section to an 

19 amount not in excess of 200 percent of the pov20 erty line for purposes of determining eligibility 

21 for participation in activities under sections 364 

22 and 366 of this Act. 

23 (7) STATE.—The term ‘‘State’’ means each of 

24 the several States of the United States, the District 

25 of Columbia, and Puerto Rico. 


SSpencer on DSK4SPTVN1PROD with BILLS
233 

•HR 3555 IH

1 Subtitle D—Prohibition of Dis2 crimination in Employment on 

3 the Basis of an Individual’s Sta4 tus as Unemployed 

5 SEC. 371. SHORT TITLE. 

6 This subtitle may be cited as the ‘‘Fair Employment 

7 Opportunity Act of 2015’’. 

8 SEC. 372. FINDINGS AND PURPOSE. 

9 (a) FINDINGS.—Congress finds that denial of em10 ployment opportunities to individuals because of their sta11 tus as unemployed is discriminatory and burdens com12 merce by— 

13 (1) reducing personal consumption and under14 mining economic stability and growth; 

15 (2) squandering human capital essential to the 

16 Nation’s economic vibrancy and growth; 

17 (3) increasing demands for Federal and State 

18 unemployment insurance benefits, reducing trust 

19 fund assets, and leading to higher payroll taxes for 

20 employers, cuts in benefits for jobless workers, or 

21 both; 

22 (4) imposing additional burdens on publicly 

23 funded health and welfare programs; and 

24 (5) depressing income, property, and other tax 

25 revenues that the Federal Government, States, and 


SSpencer on DSK4SPTVN1PROD with BILLS
234 

•HR 3555 IH

1 localities rely on to support operations and institu2 tions essential to commerce. 

3 (b) PURPOSES.—The purposes of this subtitle are— 

4 (1) to prohibit employers and employment agen5 cies from disqualifying an individual from employ6 ment opportunities because of that individual’s sta7 tus as unemployed; 

8 (2) to prohibit employers and employment agen9 cies from publishing or posting any advertisement or 

10 announcement for an employment opportunity that 

11 indicates that an individual’s status as unemployed 

12 disqualifies that individual for the opportunity; and 

13 (3) to eliminate the burdens imposed on com14 merce due to the exclusion of such individuals from 

15 employment. 

16 SEC. 373. DEFINITIONS. 

17 As used in this subtitle— 

18 (1) the term ‘‘affected individual’’ means any 

19 person who was subject to an unlawful employment 

20 practice solely because of that individual’s status as 

21 unemployed; 

22 (2) the term ‘‘Commission’’ means the Equal 

23 Employment Opportunity Commission; 

24 (3) the term ‘‘employee’’ means— 


SSpencer on DSK4SPTVN1PROD with BILLS
235 

•HR 3555 IH

1 (A) an employee as defined in section 

2 701(f) of the Civil Rights Act of 1964 (42 

3 U.S.C. 2000e(f)); 

4 (B) a State employee to which section 

5 302(a)(1) of the Government Employee Rights 

6 Act of 1991 (42 U.S.C. 2000e–16b(a)(1)) ap7 plies; 

8 (C) a covered employee, as defined in sec9 tion 101 of the Congressional Accountability 

10 Act of 1995 (2 U.S.C. 1301) or section 411(c) 

11 of title 3, United States Code; or 

12 (D) an employee or applicant to which sec13 tion 717(a) of the Civil Rights Act of 1964 (42 

14 U.S.C. 2000e–16(a)) applies; 

15 (4) the term ‘‘employer’’ means— 

16 (A) a person engaged in an industry affect17 ing commerce (as defined in section 701(h) of 

18 the Civil Rights Act of 1964 (42 U.S.C. 

19 2000e(h))) who has 15 or more employees for 

20 each working day in each of 20 or more cal21 endar weeks in the current or preceding cal22 endar year, and any agent of such a person, but 

23 does not include a bona fide private member24 ship club that is exempt from taxation under 


SSpencer on DSK4SPTVN1PROD with BILLS
236 

•HR 3555 IH

1 section 501(c) of the Internal Revenue Code of 

2 1986; 

3 (B) an employing authority to which sec4 tion 302(a)(1) of the Government Employee 

5 Rights Act of 1991 applies; 

6 (C) an employing office, as defined in sec7 tion 101 of the Congressional Accountability 

8 Act of 1995 or section 411(c) of title 3, United 

9 States Code; or 

10 (D) an entity to which section 717(a) of 

11 the Civil Rights Act of 1964 (42 U.S.C. 2000e– 

12 16(a)) applies; 

13 (5) the term ‘‘employment agency’’ means any 

14 person regularly undertaking with or without com15 pensation to procure employees for an employer or 

16 to procure for individuals opportunities to work as 

17 employees for an employer and includes an agent of 

18 such a person, and any person who maintains an 

19 Internet website or print medium that publishes ad20 vertisements or announcements of openings in jobs 

21 for employees; 

22 (6) the term ‘‘person’’ has the meaning given 

23 the term in section 701(a) of the Civil Rights Act 

24 of 1964 (42 U.S.C. 2000e(a)); and 


SSpencer on DSK4SPTVN1PROD with BILLS
237 

•HR 3555 IH

1 (7) the term ‘‘status as unemployed’’, used with 

2 respect to an individual, means that the individual, 

3 at the time of application for employment or at the 

4 time of action alleged to violate this subtitle, does 

5 not have a job, is available for work and is searching 

6 for work. 

7 SEC. 374. PROHIBITED ACTS. 

8 (a) EMPLOYERS.—It shall be an unlawful employ9 ment practice for an employer to— 

10 (1) publish in print, on the Internet, or in any 

11 other medium, an advertisement or announcement 

12 for an employee for any job that includes— 

13 (A) any provision stating or indicating that 

14 an individual’s status as unemployed disquali15 fies the individual for any employment oppor16 tunity; or 

17 (B) any provision stating or indicating that 

18 an employer will not consider or hire an indi19 vidual for any employment opportunity based 

20 on that individual’s status as unemployed; 

21 (2) fail or refuse to consider for employment, or 

22 fail or refuse to hire, an individual as an employee 

23 because of the individual’s status as unemployed; or 

24 (3) direct or request that an employment agen25 cy take an individual’s status as unemployed into acVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00237 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
238 

•HR 3555 IH

1 count to disqualify an applicant for consideration, 

2 screening, or referral for employment as an em3 ployee. 

4 (b) EMPLOYMENT AGENCIES.—It shall be an unlaw5 ful employment practice for an employment agency to— 

6 (1) publish, in print or on the Internet or in 

7 any other medium, an advertisement or announce8 ment for any vacancy in a job, as an employee, that 

9 includes— 

10 (A) any provision stating or indicating that 

11 an individual’s status as unemployed disquali12 fies the individual for any employment oppor13 tunity; or 

14 (B) any provision stating or indicating that 

15 the employment agency or an employer will not 

16 consider or hire an individual for any employ17 ment opportunity based on that individual’s sta18 tus as unemployed; 

19 (2) screen, fail or refuse to consider, or fail or 

20 refuse to refer an individual for employment as an 

21 employee because of the individual’s status as unem22 ployed; or 

23 (3) limit, segregate, or classify any individual in 

24 any manner that would limit or tend to limit the in25 dividual’s access to information about jobs, or conVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00238 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
239 

•HR 3555 IH

1 sideration, screening, or referral for jobs, as employ2 ees, solely because of an individual’s status as unem3 ployed. 

4 (c) INTERFERENCE WITH RIGHTS, PROCEEDINGS OR

5 INQUIRIES.—It shall be unlawful for any employer or em6 ployment agency to— 

7 (1) interfere with, restrain, or deny the exercise 

8 of or the attempt to exercise, any right provided 

9 under this subtitle; or 

10 (2) fail or refuse to hire, to discharge, or in any 

11 other manner to discriminate against any individual, 

12 as an employee, because such individual— 

13 (A) opposed any practice made unlawful by 

14 this subtitle; 

15 (B) has asserted any right, filed any 

16 charge, or has instituted or caused to be insti17 tuted any proceeding, under or related to this 

18 subtitle; 

19 (C) has given, or is about to give, any in20 formation in connection with any inquiry or 

21 proceeding relating to any right provided under 

22 this subtitle; or 

23 (D) has testified, or is about to testify, in 

24 any inquiry or proceeding relating to any right 

25 provided under this subtitle. 


SSpencer on DSK4SPTVN1PROD with BILLS
240 

•HR 3555 IH

1 (d) CONSTRUCTION.—Nothing in this subtitle is in2 tended to preclude an employer or employment agency 

3 from considering an individual’s employment history, or 

4 from examining the reasons underlying an individual’s sta5 tus as unemployed, in assessing an individual’s ability to 

6 perform a job or in otherwise making employment deci7 sions about that individual. Such consideration or exam8 ination may include an assessment of whether an individ9 ual’s employment in a similar or related job for a period 

10 of time reasonably proximate to the consideration of such 

11 individual for employment is job-related or consistent with 

12 business necessity. 

13 SEC. 375. ENFORCEMENT. 

14 (a) ENFORCEMENT POWERS.—With respect to the 

15 administration and enforcement of this subtitle— 

16 (1) the Commission shall have the same powers 

17 as the Commission has to administer and enforce— 

18 (A) title VII of the Civil Rights Act of 

19 1964 (42 U.S.C. 2000e et seq.); or 

20 (B) sections 302 and 304 of the Govern21 ment Employee Rights Act of 1991 (42 U.S.C. 

22 2000e–16b and 2000e–16c), in the case of an 

23 affected individual who would be covered by 

24 such title, or by section 302(a)(1) of the GovVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00240 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
241 

•HR 3555 IH

1 ernment Employee Rights Act of 1991 (42 

2 U.S.C. 2000e–16b(a)(1)), respectively; 

3 (2) the Librarian of Congress shall have the 

4 same powers as the Librarian of Congress has to ad5 minister and enforce title VII of the Civil Rights Act 

6 of 1964 (42 U.S.C. 2000e et seq.) in the case of an 

7 affected individual who would be covered by such 

8 title; 

9 (3) the Board (as defined in section 101 of the 

10 Congressional Accountability Act of 1995 (2 U.S.C. 

11 1301)) shall have the same powers as the Board has 

12 to administer and enforce the Congressional Ac13 countability Act of 1995 (2 U.S.C. 1301 et seq.) in 

14 the case of an affected individual who would be cov15 ered by section 201(a)(1) of such Act (2 U.S.C. 

16 1311(a)(1)); 

17 (4) the Attorney General shall have the same 

18 powers as the Attorney General has to administer 

19 and enforce— 

20 (A) title VII of the Civil Rights Act of 

21 1964 (42 U.S.C. 2000e et seq.); or 

22 (B) sections 302 and 304 of the Govern23 ment Employee Rights Act of 1991 (42 U.S.C. 

24 2000e–16b and 2000e–16c); in the case of an 

25 affected individual who would be covered by 


SSpencer on DSK4SPTVN1PROD with BILLS
242 

•HR 3555 IH

1 such title, or of section 302(a)(1) of the Gov2 ernment Employee Rights Act of 1991 (42 

3 U.S.C. 2000e–16b(a)(1)), respectively; 

4 (5) the President, the Commission, and the 

5 Merit Systems Protection Board shall have the same 

6 powers as the President, the Commission, and the 

7 Board, respectively, have to administer and enforce 

8 chapter 5 of title 3, United States Code, in the case 

9 of an affected individual who would be covered by 

10 section 411 of such title; and 

11 (6) a court of the United States shall have the 

12 same jurisdiction and powers as the court has to en13 force— 

14 (A) title VII of the Civil Rights Act of 

15 1964 (42 U.S.C. 2000e et seq.) in the case of 

16 a claim alleged by such individual for a viola17 tion of such title; 

18 (B) sections 302 and 304 of the Govern19 ment Employee Rights Act of 1991 (42 U.S.C. 

20 2000e–16b and 2000e–16c) in the case of a 

21 claim alleged by such individual for a violation 

22 of section 302(a)(1) of such Act (42 U.S.C. 

23 2000e–16b(a)(1)); 

24 (C) the Congressional Accountability Act 

25 of 1995 (2 U.S.C. 1301 et seq.) in the case of 


SSpencer on DSK4SPTVN1PROD with BILLS
243 

•HR 3555 IH

1 a claim alleged by such individual for a viola2 tion of section 201(a)(1) of such Act (2 U.S.C. 

3 1311(a)(1)); and 

4 (D) chapter 5 of title 3, United States 

5 Code, in the case of a claim alleged by such in6 dividual for a violation of section 411 of such 

7 title. 

8 (b) PROCEDURES.—The procedures applicable to a 

9 claim alleged by an individual for a violation of this sub10 title are— 

11 (1) the procedures applicable for a violation of 

12 title VII of the Civil Rights Act of 1964 (42 U.S.C. 

13 2000e et seq.) in the case of a claim alleged by such 

14 individual for a violation of such title; 

15 (2) the procedures applicable for a violation of 

16 section 302(a)(1) of the Government Employee 

17 Rights Act of 1991 (42 U.S.C. 2000e–16b(a)(1)) in 

18 the case of a claim alleged by such individual for a 

19 violation of such section; 

20 (3) the procedures applicable for a violation of 

21 section 201(a)(1) of the Congressional Account22 ability Act of 1995 (2 U.S.C. 1311(a)(1)) in the 

23 case of a claim alleged by such individual for a viola24 tion of such section; and 


SSpencer on DSK4SPTVN1PROD with BILLS
244 

•HR 3555 IH

1 (4) the procedures applicable for a violation of 

2 section 411 of title 3, United States Code, in the 

3 case of a claim alleged by such individual for a viola4 tion of such section. 

5 (c) REMEDIES.— 

6 (1) In any claim alleging a violation of section 

7 374(a)(1) or 374(b)(1) of this subtitle, an indi8 vidual, or any person acting on behalf of the indi9 vidual as set forth in section 375(a) of this subtitle, 

10 may be awarded, as appropriate: 

11 (A) An order enjoining the respondent 

12 from engaging in the unlawful employment 

13 practice. 

14 (B) Reimbursement of costs expended as a 

15 result of the unlawful employment practice. 

16 (C) An amount in liquidated damages not 

17 to exceed $1,000 for each day of the violation. 

18 (D) Reasonable attorney’s fees (including 

19 expert fees) and costs attributable to the pur20 suit of a claim under this subtitle. 

21 (2) In any claim alleging a violation of any 

22 other subsection of this subtitle, an individual, or 

23 any person acting on behalf of the individual as set 

24 forth in section 375(a) of this subtitle, may be 

25 awarded, as appropriate, the remedies available for 


SSpencer on DSK4SPTVN1PROD with BILLS
245 

•HR 3555 IH

1 a violation of title VII of the Civil Rights Act of 

2 1964 (42 U.S.C. 2000e et seq.), section 302(a)(1) of 

3 the Government Employee Rights Act of 1991 (42 

4 U.S.C. 2000e–16b(a)(1)), section 201(a)(1) of the 

5 Congressional Accountability Act of 1995 (2 U.S.C. 

6 1311(a)(1)), and section 411 of title 3, United 

7 States Code, except that in a case in which wages, 

8 salary, employment benefits, or other compensation 

9 have not been denied or lost to the individual, dam10 ages may be awarded in an amount not to exceed 

11 $5,000. 

12 SEC. 376. FEDERAL AND STATE IMMUNITY. 

13 (a) ABROGATION OF STATE IMMUNITY.—A State 

14 shall not be immune under the 11th Amendment to the 

15 Constitution from a suit brought in a Federal court of 

16 competent jurisdiction for a violation of this subtitle. 

17 (b) WAIVER OF STATE IMMUNITY.— 

18 (1) IN GENERAL.— 

19 (A) WAIVER.—A State’s receipt or use of 

20 Federal financial assistance for any program or 

21 activity of a State shall constitute a waiver of 

22 sovereign immunity, under the 11th Amend23 ment to the Constitution or otherwise, to a suit 

24 brought by an employee or applicant for em25 ployment of that program or activity under this 


SSpencer on DSK4SPTVN1PROD with BILLS
246 

•HR 3555 IH

1 subtitle for a remedy authorized under section 

2 375(c) of this subtitle. 

3 (B) DEFINITION.—In this paragraph, the 

4 term ‘‘program or activity’’ has the meaning 

5 given the term in section 606 of the Civil 

6 Rights Act of 1964 (42 U.S.C. 2000d–4a). 

7 (2) EFFECTIVE DATE.—With respect to a par8 ticular program or activity, paragraph (1) applies to 

9 conduct occurring on or after the day, after the date 

10 of enactment of this Act, on which a State first re11 ceives or uses Federal financial assistance for that 

12 program or activity. 

13 (c) REMEDIES AGAINST STATE OFFICIALS.—An offi14 cial of a State may be sued in the official capacity of the 

15 official by any employee or applicant for employment who 

16 has complied with the applicable procedures of this sub17 title, for relief that is authorized under this subtitle. 

18 (d) REMEDIES AGAINST THE UNITED STATES AND

19 THE STATES.—Notwithstanding any other provision of 

20 this subtitle, in an action or administrative proceeding 

21 against the United States or a State for a violation of this 

22 subtitle, remedies (including remedies at law and in eq23 uity) are available for the violation to the same extent as 

24 such remedies would be available against a non-govern25 mental entity. 


SSpencer on DSK4SPTVN1PROD with BILLS
247 

•HR 3555 IH

1 SEC. 377. RELATIONSHIP TO OTHER LAWS. 

2 This subtitle shall not invalidate or limit the rights, 

3 remedies, or procedures available to an individual claiming 

4 discrimination prohibited under any other Federal law or 

5 regulation or any law or regulation of a State or political 

6 subdivision of a State. 

7 SEC. 378. SEVERABILITY. 

8 If any provision of this subtitle, or the application 

9 of the provision to any person or circumstance, is held to 

10 be invalid, the remainder of this subtitle and the applica11 tion of the provision to any other person or circumstances 

12 shall not be affected by the invalidity. 

13 SEC. 379. EFFECTIVE DATE. 

14 This subtitle shall take effect on the date of enact15 ment of this Act and shall not apply to conduct occurring 

16 before the effective date. 

17 TITLE IV—OFFSETS 

18 Subtitle A—28-Percent Limitation 

19 on Certain Deductions and Ex20 clusions 

21 SEC. 401. 28-PERCENT LIMITATION ON CERTAIN DEDUC22 TIONS AND EXCLUSIONS. 

23 (a) IN GENERAL.—Part I of subchapter B of chapter 

24 1 of the Internal Revenue Code of 1986 is amended by 

25 adding at the end the following new section: 


SSpencer on DSK4SPTVN1PROD with BILLS
248 

•HR 3555 IH

1 ‘‘SEC. 69. LIMITATION ON CERTAIN DEDUCTIONS AND EX2 CLUSIONS. 

3 ‘‘(a) IN GENERAL.—In the case of an individual for 

4 any taxable year, if— 

5 ‘‘(1) the taxpayer’s adjusted gross income ex6 ceeds— 

7 ‘‘(A) $250,000 in the case of a joint return 

8 within the meaning of section 6013, 

9 ‘‘(B) $225,000 in the case of a head of 

10 household return, 

11 ‘‘(C) $125,000 in the case of a married fil12 ing separately return, or 

13 ‘‘(D) $200,000 in all other cases, and 

14 ‘‘(2) the taxpayer’s adjusted taxable income for 

15 such taxable year exceeds the minimum marginal 

16 rate amount, then the tax imposed under section 1 

17 with respect to such taxpayer for such taxable year 

18 shall be increased by the amount determined under 

19 subsection (b). If the taxpayer is subject to tax 

20 under section 55, then in lieu of an increase in tax 

21 under section 1, the tax imposed under section 55 

22 with respect to such taxpayer for such taxable year 

23 shall be increased by the amount determined under 

24 subsection (c). 


SSpencer on DSK4SPTVN1PROD with BILLS
249 

•HR 3555 IH

1 ‘‘(b) ADDITIONAL AMOUNT.—The amount deter2 mined under this subsection with respect to any taxpayer 

3 for any taxable year is the excess (if any) of— 

4 ‘‘(1) the tax which would be imposed under sec5 tion 1 with respect to such taxpayer for such taxable 

6 year if ‘adjusted taxable income’ were substituted 

7 for ‘taxable income’ each place it appears therein, 

8 over 

9 ‘‘(2) the sum of— 

10 ‘‘(A) the tax which would be imposed 

11 under such section with respect to such tax12 payer for such taxable year on the greater of— 

13 ‘‘(i) taxable income, or 

14 ‘‘(ii) the minimum marginal rate 

15 amount, plus 

16 ‘‘(B) 28 percent of the excess (if any) of 

17 the taxpayer’s adjusted taxable income over the 

18 greater of— 

19 ‘‘(i) the taxpayer’s taxable income, or 

20 ‘‘(ii) the minimum marginal rate 

21 amount. 

22 ‘‘(c) ADDITIONAL AMT AMOUNT.— 

23 ‘‘(1) The amount determined under this sub24 section with respect to any taxpayer for any taxable 


SSpencer on DSK4SPTVN1PROD with BILLS
250 

•HR 3555 IH

1 year is the additional amount computed under sub2 section (b) multiplied by the ratio that— 

3 ‘‘(A) the result of— 

4 ‘‘(i) all itemized deductions (before 

5 the application of section 68), plus 

6 ‘‘(ii) the specified above-the-line de7 ductions and specified exclusions, minus 

8 ‘‘(iii) the amount of deductions dis9 allowed under section 56(b)(1) (A) and 

10 (B), minus 

11 ‘‘(iv) the non-preference disallowed de12 ductions, bears to— 

13 ‘‘(B) the sum of— 

14 ‘‘(i) the total of itemized deductions 

15 (after the application of section 68), plus 

16 ‘‘(ii) the specified above-the-line de17 ductions and specified exclusions. 

18 ‘‘(2) If the top of the AMT exemption phase19 out range for the taxpayer exceeds the minimum 

20 marginal rate amount for the taxpayer and if the 

21 taxpayer’s alternative minimum taxable income does 

22 not exceed the top of the AMT exemption phase-out 

23 range, the taxpayer must increase its additional 

24 AMT amount by 7 percent of the excess of— 

25 ‘‘(A) the lesser of— 


SSpencer on DSK4SPTVN1PROD with BILLS
251 

•HR 3555 IH

1 ‘‘(i) the top of the AMT exemption 

2 phase-out range, or 

3 ‘‘(ii) the taxpayer’s alternative min4 imum taxable income, computed— 

5 ‘‘(I) without regard to any 

6 itemized deduction or any specified 

7 above-the-line deduction, and 

8 ‘‘(II) by including the amount of 

9 any specified exclusion, over 

10 ‘‘(B) the greater of— 

11 ‘‘(i) the taxpayer’s alternative min12 imum taxable income, or 

13 ‘‘(ii) the minimum marginal rate 

14 amount. 

15 ‘‘(d) MINIMUM MARGINAL RATE AMOUNT.—For pur16 poses of this section, the term ‘minimum marginal rate 

17 amount’ means, with respect to any taxpayer for any tax18 able year, the highest amount of the taxpayer’s taxable 

19 income which would be subject to a marginal rate of tax 

20 under section 1 that is less than 36 percent with respect 

21 to such taxable year. 

22 ‘‘(e) ADJUSTED TAXABLE INCOME.—For purposes of 

23 this section— 

24 ‘‘(1) IN GENERAL.—The term ‘adjusted taxable 

25 income’ means taxable income computed— 


SSpencer on DSK4SPTVN1PROD with BILLS
252 

•HR 3555 IH

1 ‘‘(A) without regard to any itemized deduc2 tion or any specified above-the-line deduction, 

3 and 

4 ‘‘(B) by including in gross income any 

5 specified exclusion. 

6 ‘‘(2) SPECIFIED ABOVE-THE-LINE DEDUC7 TION.—The term ‘specified above-the-line deduction’ 

8 means— 

9 ‘‘(A) the deduction provided under section 

10 162(l) (relating to special rules for health insur11 ance costs of self-employed individuals), 

12 ‘‘(B) the deduction provided under section 

13 199 (relating to income attributable to domestic 

14 production activities), and 

15 ‘‘(C) the deductions provided under the fol16 lowing paragraphs of section 62(a): 

17 ‘‘(i) Paragraph (2) (relating to certain 

18 trade and business deductions of employ19 ees), other than subparagraph (A) thereof. 

20 ‘‘(ii) Paragraph (15) (relating to mov21 ing expenses). 

22 ‘‘(iii) Paragraph (16) (relating to Ar23 cher MSAs). 

24 ‘‘(iv) Paragraph (17) (relating to in25 terest on education loans). 


SSpencer on DSK4SPTVN1PROD with BILLS
253 

•HR 3555 IH

1 ‘‘(v) Paragraph (18) (relating to high2 er education expenses). 

3 ‘‘(vi) Paragraph (19) (relating to 

4 health savings accounts). 

5 ‘‘(3) SPECIFIED EXCLUSION.—The term ‘speci6 fied exclusion’ means— 

7 ‘‘(A) any interest excluded under section 

8 103, 

9 ‘‘(B) any exclusion with respect to the cost 

10 described in section 6051(a)(14) (without re11 gard to subparagraph (B) thereof), and 

12 ‘‘(C) any foreign earned income excluded 

13 under section 911. 

14 ‘‘(f) NON-PREFERENCE DISALLOWED DEDUC15 TIONS.—For purposes of this section, the term ‘AMT-al16 lowed deductions’ means all itemized deductions dis17 allowed by section 68 multiplied by the ratio that— 

18 ‘‘(1) a taxpayer’s itemized deductions for the 

19 taxable year that are subject to section 68 (that is, 

20 not including those excluded under section 68(c)) 

21 and that are not limited under section 56(b)(1) (A) 

22 or (B), bears to 

23 ‘‘(2) the taxpayer’s itemized deductions for the 

24 taxable year that are subject to section 68 (that is, 

25 not including those excluded under section 68(c)). 


SSpencer on DSK4SPTVN1PROD with BILLS
254 

•HR 3555 IH

1 ‘‘(g) REGULATIONS.—The Secretary shall prescribe 

2 such regulations as may be appropriate to carry out this 

3 section, including regulations which provide appropriate 

4 adjustments to the additional AMT amount.’’. 

5 (b) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to taxable years beginning on or 

7 after January 1, 2015. 

8 Subtitle B—Tax Carried Interest in 

9 Investment Partnerships as Or10 dinary Income 

11 SEC. 411. PARTNERSHIP INTERESTS TRANSFERRED IN 

12 CONNECTION WITH PERFORMANCE OF SERV13 ICES. 

14 (a) MODIFICATION TO ELECTION TO INCLUDE PART15 NERSHIP INTEREST IN GROSS INCOME IN YEAR OF

16 TRANSFER.—Section 83(c) of the Internal Revenue Code 

17 of 1986 is amended by redesignating paragraph (4) as 

18 paragraph (5) and by inserting after paragraph (3) the 

19 following new paragraph: 

20 ‘‘(4) PARTNERSHIP INTERESTS.—Except as 

21 provided by the Secretary— 

22 ‘‘(A) IN GENERAL.—In the case of any 

23 transfer of an interest in a partnership in con24 nection with the provision of services to (or for 

25 the benefit of) such partnership— 


SSpencer on DSK4SPTVN1PROD with BILLS
255 

•HR 3555 IH

1 ‘‘(i) the fair market value of such in2 terest shall be treated for purposes of this 

3 section as being equal to the amount of the 

4 distribution which the partner would re5 ceive if the partnership sold (at the time of 

6 the transfer) all of its assets at fair market 

7 value and distributed the proceeds of such 

8 sale (reduced by the liabilities of the part9 nership) to its partners in liquidation of 

10 the partnership, and 

11 ‘‘(ii) the person receiving such interest 

12 shall be treated as having made the elec13 tion under subsection (b)(1) unless such 

14 person makes an election under this para15 graph to have such subsection not apply. 

16 ‘‘(B) ELECTION.—The election under sub17 paragraph (A)(ii) shall be made under rules 

18 similar to the rules of subsection (b)(2).’’. 

19 (b) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to interests in partnerships trans21 ferred after December 31, 2015. 


SSpencer on DSK4SPTVN1PROD with BILLS
256 

•HR 3555 IH

1 SEC. 412. SPECIAL RULES FOR PARTNERS PROVIDING IN2 VESTMENT MANAGEMENT SERVICES TO 

3 PARTNERSHIPS. 

4 (a) IN GENERAL.—Part I of subchapter K of chapter 

5 1 of the Internal Revenue Code of 1986 is amended by 

6 adding at the end the following new section: 

7 ‘‘SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING IN8 VESTMENT MANAGEMENT SERVICES TO 

9 PARTNERSHIPS. 

10 ‘‘(a) TREATMENT OF DISTRIBUTIVE SHARE OF

11 PARTNERSHIP ITEMS.—For purposes of this title, in the 

12 case of an investment services partnership interest— 

13 ‘‘(1) IN GENERAL.—Notwithstanding section 

14 702(b)— 

15 ‘‘(A) an amount equal to the net capital 

16 gain with respect to such interest for any part17 nership taxable year shall be treated as ordi18 nary income, and 

19 ‘‘(B) subject to the limitation of paragraph 

20 (2), an amount equal to the net capital loss 

21 with respect to such interest for any partner22 ship taxable year shall be treated as an ordi23 nary loss. 

24 ‘‘(2) RECHARACTERIZATION OF LOSSES LIM25 ITED TO RECHARACTERIZED GAINS.—The amount 

26 treated as ordinary loss under paragraph (1)(B) for 


SSpencer on DSK4SPTVN1PROD with BILLS
257 

•HR 3555 IH

1 any taxable year shall not exceed the excess (if any) 

2 of— 

3 ‘‘(A) the aggregate amount treated as ordi4 nary income under paragraph (1)(A) with re5 spect to the investment services partnership in6 terest for all preceding partnership taxable 

7 years to which this section applies, over 

8 ‘‘(B) the aggregate amount treated as or9 dinary loss under paragraph (1)(B) with re10 spect to such interest for all preceding partner11 ship taxable years to which this section applies. 

12 ‘‘(3) ALLOCATION TO ITEMS OF GAIN AND

13 LOSS.— 

14 ‘‘(A) NET CAPITAL GAIN.—The amount 

15 treated as ordinary income under paragraph 

16 (1)(A) shall be allocated ratably among the 

17 items of long-term capital gain taken into ac18 count in determining such net capital gain. 

19 ‘‘(B) NET CAPITAL LOSS.—The amount 

20 treated as ordinary loss under paragraph (1)(B) 

21 shall be allocated ratably among the items of 

22 long-term capital loss and short-term capital 

23 loss taken into account in determining such net 

24 capital loss. 


SSpencer on DSK4SPTVN1PROD with BILLS
258 

•HR 3555 IH

1 ‘‘(4) TERMS RELATING TO CAPITAL GAINS AND

2 LOSSES.—For purposes of this section— 

3 ‘‘(A) IN GENERAL.—Net capital gain, long4 term capital gain, and long-term capital loss, 

5 with respect to any investment services partner6 ship interest for any taxable year, shall be de7 termined under section 1222, except that such 

8 section shall be applied— 

9 ‘‘(i) without regard to the recharacter10 ization of any item as ordinary income or 

11 ordinary loss under this section, 

12 ‘‘(ii) by only taking into account items 

13 of gain and loss taken into account by the 

14 holder of such interest under section 702 

15 with respect to such interest for such tax16 able year, 

17 ‘‘(iii) by treating property which is 

18 taken into account in determining gains 

19 and losses to which section 1231 applies as 

20 capital assets held for more than 1 year, 

21 and 

22 ‘‘(iv) without regard to section 1202. 

23 ‘‘(B) NET CAPITAL LOSS.—The term ‘net 

24 capital loss’ means the excess of the losses from 

25 sales or exchanges of capital assets over the 


SSpencer on DSK4SPTVN1PROD with BILLS
259 

•HR 3555 IH

1 gains from such sales or exchanges. Rules simi2 lar to the rules of clauses (i) through (iv) of 

3 subparagraph (A) shall apply for purposes of 

4 the preceding sentence. 

5 ‘‘(5) SPECIAL RULES FOR DIVIDENDS.— 

6 ‘‘(A) INDIVIDUALS.—Any dividend allo7 cated to any investment services partnership in8 terest shall not be treated as qualified dividend 

9 income for purposes of section 1(h). 

10 ‘‘(B) CORPORATIONS.—No deduction shall 

11 be allowed under section 243 or 245 with re12 spect to any dividend allocated to any invest13 ment services partnership interest. 

14 ‘‘(b) DISPOSITIONS OF PARTNERSHIP INTERESTS.— 

15 ‘‘(1) GAIN.— 

16 ‘‘(A) IN GENERAL.—Any gain on the dis17 position of an investment services partnership 

18 interest shall be— 

19 ‘‘(i) treated as ordinary income, and 

20 ‘‘(ii) recognized notwithstanding any 

21 other provision of this subtitle. 

22 ‘‘(B) EXCEPTIONS; CERTAIN TRANSFERS

23 TO CHARITIES AND RELATED PERSONS.—Sub24 paragraph (A) shall not apply to— 

25 ‘‘(i) a disposition by gift, 


SSpencer on DSK4SPTVN1PROD with BILLS
260 

•HR 3555 IH

1 ‘‘(ii) a transfer at death, or 

2 ‘‘(iii) other disposition identified by 

3 the Secretary as a disposition with respect 

4 to which it would be inconsistent with the 

5 purposes of this section to apply subpara6 graph (A), if such gift, transfer, or other 

7 disposition is to an organization described 

8 in section 170(b)(1)(A) (other than any or9 ganization described in section 509(a)(3) 

10 or any fund or account described in section 

11 4966(d)(2)) or a person with respect to 

12 whom the transferred interest is an invest13 ment services partnership interest. 

14 ‘‘(2) LOSS.—Any loss on the disposition of an 

15 investment services partnership interest shall be 

16 treated as an ordinary loss to the extent of the ex17 cess (if any) of— 

18 ‘‘(A) the aggregate amount treated as ordi19 nary income under subsection (a) with respect 

20 to such interest for all partnership taxable 

21 years to which this section applies, over 

22 ‘‘(B) the aggregate amount treated as or23 dinary loss under subsection (a) with respect to 

24 such interest for all partnership taxable years 

25 to which this section applies. 


SSpencer on DSK4SPTVN1PROD with BILLS
261 

•HR 3555 IH

1 ‘‘(3) ELECTION WITH RESPECT TO CERTAIN EX2 CHANGES.—Paragraph (1)(A)(ii) shall not apply to 

3 the contribution of an investment services partner4 ship interest to a partnership in exchange for an in5 terest in such partnership if— 

6 ‘‘(A) the taxpayer makes an irrevocable 

7 election to treat the partnership interest re8 ceived in the exchange as an investment serv9 ices partnership interest, and 

10 ‘‘(B) the taxpayer agrees to comply with 

11 such reporting and recordkeeping requirements 

12 as the Secretary may prescribe. 

13 ‘‘(4) DISTRIBUTIONS OF PARTNERSHIP PROP14 ERTY.— 

15 ‘‘(A) IN GENERAL.—In the case of any dis16 tribution of property by a partnership with re17 spect to any investment services partnership in18 terest held by a partner, the partner receiving 

19 such property shall recognize gain equal to the 

20 excess (if any) of— 

21 ‘‘(i) the fair market value of such 

22 property at the time of such distribution, 

23 over 

24 ‘‘(ii) the adjusted basis of such prop25 erty in the hands of such partner (deterVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00261 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
262 

•HR 3555 IH

1 mined without regard to subparagraph 

2 (C)). 

3 ‘‘(B) TREATMENT OF GAIN AS ORDINARY

4 INCOME.—Any gain recognized by such partner 

5 under subparagraph (A) shall be treated as or6 dinary income to the same extent and in the 

7 same manner as the increase in such partner’s 

8 distributive share of the taxable income of the 

9 partnership would be treated under subsection 

10 (a) if, immediately prior to the distribution, the 

11 partnership had sold the distributed property at 

12 fair market value and all of the gain from such 

13 disposition were allocated to such partner. For 

14 purposes of applying paragraphs (2) and (3) of 

15 subsection (a), any gain treated as ordinary in16 come under this subparagraph shall be treated 

17 as an amount treated as ordinary income under 

18 subsection (a)(1)(A). 

19 ‘‘(C) ADJUSTMENT OF BASIS.—In the case 

20 a distribution to which subparagraph (A) ap21 plies, the basis of the distributed property in 

22 the hands of the distributee partner shall be the 

23 fair market value of such property. 

24 ‘‘(D) SPECIAL RULES WITH RESPECT TO

25 MERGERS, DIVISIONS, AND TECHNICAL TERMIVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00262 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
263 

•HR 3555 IH

1 NATIONS.—In the case of a taxpayer which sat2 isfies requirements similar to the requirements 

3 of subparagraphs (A) and (B) of paragraph (3), 

4 this paragraph and paragraph (1)(A)(ii) shall 

5 not apply to the distribution of a partnership 

6 interest if such distribution is in connection 

7 with a contribution (or deemed contribution) of 

8 any property of the partnership to which sec9 tion 721 applies pursuant to a transaction de10 scribed in paragraph (1)(B) or (2) of section 

11 708(b). 

12 ‘‘(c) INVESTMENT SERVICES PARTNERSHIP INTER13 EST.—For purposes of this section— 

14 ‘‘(1) IN GENERAL.—The term ‘investment serv15 ices partnership interest’ means any interest in an 

16 investment partnership acquired or held by any per17 son in connection with the conduct of a trade or 

18 business described in paragraph (2) by such person 

19 (or any person related to such person). An interest 

20 in an investment partnership held by any person— 

21 ‘‘(A) shall not be treated as an investment 

22 services partnership interest for any period be23 fore the first date on which it is so held in con24 nection with such a trade or business, 


SSpencer on DSK4SPTVN1PROD with BILLS
264 

•HR 3555 IH

1 ‘‘(B) shall not cease to be an investment 

2 services partnership interest merely because 

3 such person holds such interest other than in 

4 connection with such a trade or business, and 

5 ‘‘(C) shall be treated as an investment 

6 services partnership interest if acquired from a 

7 related person in whose hands such interest was 

8 an investment services partnership interest. 

9 ‘‘(2) BUSINESSES TO WHICH THIS SECTION AP10 PLIES.—A trade or business is described in this 

11 paragraph if such trade or business primarily in12 volves the performance of any of the following serv13 ices with respect to assets held (directly or indi14 rectly) by the investment partnership referred to in 

15 paragraph (1): 

16 ‘‘(A) Advising as to the advisability of in17 vesting in, purchasing, or selling any specified 

18 asset. 

19 ‘‘(B) Managing, acquiring, or disposing of 

20 any specified asset. 

21 ‘‘(C) Arranging financing with respect to 

22 acquiring specified assets. 

23 ‘‘(D) Any activity in support of any service 

24 described in subparagraphs (A) through (C). 

25 ‘‘(3) INVESTMENT PARTNERSHIP.— 


SSpencer on DSK4SPTVN1PROD with BILLS
265 

•HR 3555 IH

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

2 partnership’ means any partnership if, at the 

3 end of any calendar quarter ending after De4 cember 31, 2014— 

5 ‘‘(i) substantially all of the assets of 

6 the partnership are specified assets (deter7 mined without regard to any section 197 

8 intangible within the meaning of section 

9 197(d)), and 

10 ‘‘(ii) more than half of the contributed 

11 capital of the partnership is attributable to 

12 contributions of property by one or more 

13 persons in exchange for interests in the 

14 partnership which (in the hands of such 

15 persons) constitute property held for the 

16 production of income. 

17 ‘‘(B) SPECIAL RULES FOR DETERMINING

18 IF PROPERTY HELD FOR THE PRODUCTION OF

19 INCOME.—Except as otherwise provided by the 

20 Secretary, for purposes of determining whether 

21 any interest in a partnership constitutes prop22 erty held for the production of income under 

23 subparagraph (A)(ii)— 


SSpencer on DSK4SPTVN1PROD with BILLS
266 

•HR 3555 IH

1 ‘‘(i) any election under subsection (e) 

2 or (f) of section 475 shall be disregarded, 

3 and 

4 ‘‘(ii) paragraph (5)(B) shall not apply. 

5 ‘‘(C) ANTIABUSE RULES.—The Secretary 

6 may issue regulations or other guidance which 

7 prevent the avoidance of the purposes of sub8 paragraph (A), including regulations or other 

9 guidance which treat convertible and contingent 

10 debt (and other debt having the attributes of 

11 equity) as a capital interest in the partnership. 

12 ‘‘(D) CONTROLLED GROUPS OF ENTI13 TIES.— 

14 ‘‘(i) IN GENERAL.—In the case of a 

15 controlled group of entities, if an interest 

16 in the partnership received in exchange for 

17 a contribution to the capital of the part18 nership by any member of such controlled 

19 group would (in the hands of such mem20 ber) constitute property not held for the 

21 production of income, then any interest in 

22 such partnership held by any member of 

23 such group shall be treated for purposes of 

24 subparagraph (A) as constituting (in the 


SSpencer on DSK4SPTVN1PROD with BILLS
267 

•HR 3555 IH

1 hands of such member) property not held 

2 for the production of income. 

3 ‘‘(ii) CONTROLLED GROUP OF ENTI4 TIES.—For purposes of clause (i), the term 

5 ‘controlled group of entities’ means a con6 trolled group of corporations as defined in 

7 section 1563(a)(1), applied without regard 

8 to subsections (a)(4) and (b)(2) of section 

9 1563. A partnership or any other entity 

10 (other than a corporation) shall be treated 

11 as a member of a controlled group of enti12 ties if such entity is controlled (within the 

13 meaning of section 954(d)(3)) by members 

14 of such group (including any entity treated 

15 as a member of such group by reason of 

16 this sentence). 

17 ‘‘(4) SPECIFIED ASSET.—The term ‘specified 

18 asset’ means securities (as defined in section 

19 475(c)(2) without regard to the last sentence there20 of), real estate held for rental or investment, inter21 ests in partnerships, commodities (as defined in sec22 tion 475(e)(2)), cash or cash equivalents, or options 

23 or derivative contracts with respect to any of the 

24 foregoing. 

25 ‘‘(5) RELATED PERSONS.— 


SSpencer on DSK4SPTVN1PROD with BILLS
268 

•HR 3555 IH

1 ‘‘(A) IN GENERAL.—A person shall be 

2 treated as related to another person if the rela3 tionship between such persons is described in 

4 section 267(b) or 707(b). 

5 ‘‘(B) ATTRIBUTION OF PARTNER SERV6 ICES.—Any service described in paragraph (2) 

7 which is provided by a partner of a partnership 

8 shall be treated as also provided by such part9 nership. 

10 ‘‘(d) EXCEPTION FOR CERTAIN CAPITAL INTER11 ESTS.— 

12 ‘‘(1) IN GENERAL.—In the case of any portion 

13 of an investment services partnership interest which 

14 is a qualified capital interest, all items of gain and 

15 loss (and any dividends) which are allocated to such 

16 qualified capital interest shall not be taken into ac17 count under subsection (a) if— 

18 ‘‘(A) allocations of items are made by the 

19 partnership to such qualified capital interest in 

20 the same manner as such allocations are made 

21 to other qualified capital interests held by part22 ners who do not provide any services described 

23 in subsection (c)(2) and who are not related to 

24 the partner holding the qualified capital inter25 est, and 


SSpencer on DSK4SPTVN1PROD with BILLS
269 

•HR 3555 IH

1 ‘‘(B) the allocations made to such other in2 terests are significant compared to the alloca3 tions made to such qualified capital interest. 

4 ‘‘(2) AUTHORITY TO PROVIDE EXCEPTIONS TO

5 ALLOCATION REQUIREMENTS.—To the extent pro6 vided by the Secretary in regulations or other guid7 ance— 

8 ‘‘(A) ALLOCATIONS TO PORTION OF QUALI9 FIED CAPITAL INTEREST.—Paragraph (1) may 

10 be applied separately with respect to a portion 

11 of a qualified capital interest. 

12 ‘‘(B) NO OR INSIGNIFICANT ALLOCATIONS

13 TO NONSERVICE PROVIDERS.—In any case in 

14 which the requirements of paragraph (1)(B) are 

15 not satisfied, items of gain and loss (and any 

16 dividends) shall not be taken into account under 

17 subsection (a) to the extent that such items are 

18 properly allocable under such regulations or 

19 other guidance to qualified capital interests. 

20 ‘‘(C) ALLOCATIONS TO SERVICE PRO21 VIDERS’ QUALIFIED CAPITAL INTERESTS WHICH

22 ARE LESS THAN OTHER ALLOCATIONS.—Alloca23 tions shall not be treated as failing to meet the 

24 requirement of paragraph (1)(A) merely be25 cause the allocations to the qualified capital inVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00269 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
270 

•HR 3555 IH

1 terest represent a lower return than the alloca2 tions made to the other qualified capital inter3 ests referred to in such paragraph. 

4 ‘‘(3) SPECIAL RULE FOR CHANGES IN SERVICES

5 AND CAPITAL CONTRIBUTIONS.—In the case of an 

6 interest in a partnership which was not an invest7 ment services partnership interest and which, by 

8 reason of a change in the services with respect to as9 sets held (directly or indirectly) by the partnership 

10 or by reason of a change in the capital contributions 

11 to such partnership, becomes an investment services 

12 partnership interest, the qualified capital interest of 

13 the holder of such partnership interest immediately 

14 after such change shall not, for purposes of this sub15 section, be less than the fair market value of such 

16 interest (determined immediately before such 

17 change). 

18 ‘‘(4) SPECIAL RULE FOR TIERED PARTNER19 SHIPS.—Except as otherwise provided by the Sec20 retary, in the case of tiered partnerships, all items 

21 which are allocated in a manner which meets the re22 quirements of paragraph (1) to qualified capital in23 terests in a lower-tier partnership shall retain such 

24 character to the extent allocated on the basis of 


SSpencer on DSK4SPTVN1PROD with BILLS
271 

•HR 3555 IH

1 qualified capital interests in any upper-tier partner2 ship. 

3 ‘‘(5) EXCEPTION FOR NO-SELF-CHARGED

4 CARRY AND MANAGEMENT FEE PROVISIONS.—Ex5 cept as otherwise provided by the Secretary, an in6 terest shall not fail to be treated as satisfying the 

7 requirement of paragraph (1)(A) merely because the 

8 allocations made by the partnership to such interest 

9 do not reflect the cost of services described in sub10 section (c)(2) which are provided (directly or indi11 rectly) to the partnership by the holder of such in12 terest (or a related person). 

13 ‘‘(6) SPECIAL RULE FOR DISPOSITIONS.—In the 

14 case of any investment services partnership interest 

15 any portion of which is a qualified capital interest, 

16 subsection (b) shall not apply to so much of any 

17 gain or loss as bears the same proportion to the en18 tire amount of such gain or loss as— 

19 ‘‘(A) the distributive share of gain or loss 

20 that would have been allocated to the qualified 

21 capital interest (consistent with the require22 ments of paragraph (1)) if the partnership had 

23 sold all of its assets at fair market value imme24 diately before the disposition, bears to 


SSpencer on DSK4SPTVN1PROD with BILLS
272 

•HR 3555 IH

1 ‘‘(B) the distributive share of gain or loss 

2 that would have been so allocated to the invest3 ment services partnership interest of which such 

4 qualified capital interest is a part. 

5 ‘‘(7) QUALIFIED CAPITAL INTEREST.—For pur6 poses of this subsection— 

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

8 capital interest’ means so much of a partner’s 

9 interest in the capital of the partnership as is 

10 attributable to— 

11 ‘‘(i) the fair market value of any 

12 money or other property contributed to the 

13 partnership in exchange for such interest 

14 (determined without regard to section 

15 752(a)), 

16 ‘‘(ii) any amounts which have been in17 cluded in gross income under section 83 

18 with respect to the transfer of such inter19 est, and 

20 ‘‘(iii) the excess (if any) of— 

21 ‘‘(I) any items of income and 

22 gain taken into account under section 

23 702 with respect to such interest, over 

24 ‘‘(II) any items of deduction and 

25 loss so taken into account. 


SSpencer on DSK4SPTVN1PROD with BILLS
273 

•HR 3555 IH

1 ‘‘(B) ADJUSTMENT TO QUALIFIED CAPITAL

2 INTEREST.— 

3 ‘‘(i) DISTRIBUTIONS AND LOSSES.— 

4 The qualified capital interest shall be re5 duced by distributions from the partner6 ship with respect to such interest and by 

7 the excess (if any) of the amount described 

8 in subparagraph (A)(iii)(II) over the 

9 amount described in subparagraph 

10 (A)(iii)(I). 

11 ‘‘(ii) SPECIAL RULE FOR CONTRIBU12 TIONS OF PROPERTY.—In the case of any 

13 contribution of property described in sub14 paragraph (A)(i) with respect to which the 

15 fair market value of such property is not 

16 equal to the adjusted basis of such prop17 erty immediately before such contribution, 

18 proper adjustments shall be made to the 

19 qualified capital interest to take into ac20 count such difference consistent with such 

21 regulations or other guidance as the Sec22 retary may provide. 

23 ‘‘(C) TECHNICAL TERMINATIONS, ETC., 

24 DISREGARDED.—No increase or decrease in the 

25 qualified capital interest of any partner shall reVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00273 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
274 

•HR 3555 IH

1 sult from a termination, merger, consolidation, 

2 or division described in section 708, or any 

3 similar transaction. 

4 ‘‘(8) TREATMENT OF CERTAIN LOANS.— 

5 ‘‘(A) PROCEEDS OF PARTNERSHIP LOANS

6 NOT TREATED AS QUALIFIED CAPITAL INTER7 EST OF SERVICE PROVIDING PARTNERS.—For 

8 purposes of this subsection, an investment serv9 ices partnership interest shall not be treated as 

10 a qualified capital interest to the extent that 

11 such interest is acquired in connection with the 

12 proceeds of any loan or other advance made or 

13 guaranteed, directly or indirectly, by any other 

14 partner or the partnership (or any person re15 lated to any such other partner or the partner16 ship). The preceding sentence shall not apply to 

17 the extent the loan or other advance is repaid 

18 before January 1, 2017, unless such repayment 

19 is made with the proceeds of a loan or other ad20 vance described in the preceding sentence. 

21 ‘‘(B) REDUCTION IN ALLOCATIONS TO

22 QUALIFIED CAPITAL INTERESTS FOR LOANS

23 FROM NONSERVICE-PROVIDING PARTNERS TO

24 THE PARTNERSHIP.—For purposes of this sub25 section, any loan or other advance to the partVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00274 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
275 

•HR 3555 IH

1 nership made or guaranteed, directly or indi2 rectly, by a partner not providing services de3 scribed in subsection (c)(2) to the partnership 

4 (or any person related to such partner) shall be 

5 taken into account in determining the qualified 

6 capital interests of the partners in the partner7 ship. 

8 ‘‘(e) OTHER INCOME AND GAIN IN CONNECTION

9 WITH INVESTMENT MANAGEMENT SERVICES.— 

10 ‘‘(1) IN GENERAL.—If— 

11 ‘‘(A) a person performs (directly or indi12 rectly) investment management services for any 

13 investment entity, 

14 ‘‘(B) such person holds (directly or indi15 rectly) a disqualified interest with respect to 

16 such entity, and 

17 ‘‘(C) the value of such interest (or pay18 ments thereunder) is substantially related to 

19 the amount of income or gain (whether or not 

20 realized) from the assets with respect to which 

21 the investment management services are per22 formed, any income or gain with respect to such 

23 interest shall be treated as ordinary income. 

24 Rules similar to the rules of subsections (a)(5) 


SSpencer on DSK4SPTVN1PROD with BILLS
276 

•HR 3555 IH

1 and (d) shall apply for purposes of this sub2 section. 

3 ‘‘(2) DEFINITIONS.—For purposes of this sub4 section— 

5 ‘‘(A) DISQUALIFIED INTEREST.— 

6 ‘‘(i) IN GENERAL.—The term ‘dis7 qualified interest’ means, with respect to 

8 any investment entity— 

9 ‘‘(I) any interest in such entity 

10 other than indebtedness, 

11 ‘‘(II) convertible or contingent 

12 debt of such entity, 

13 ‘‘(III) any option or other right 

14 to acquire property described in sub15 clause (I) or (II), and 

16 ‘‘(IV) any derivative instrument 

17 entered into (directly or indirectly) 

18 with such entity or any investor in 

19 such entity. 

20 ‘‘(ii) EXCEPTIONS.—Such term shall 

21 not include— 

22 ‘‘(I) a partnership interest, 

23 ‘‘(II) except as provided by the 

24 Secretary, any interest in a taxable 

25 corporation, and 


SSpencer on DSK4SPTVN1PROD with BILLS
277 

•HR 3555 IH

1 ‘‘(III) except as provided by the 

2 Secretary, stock in an S corporation. 

3 ‘‘(B) TAXABLE CORPORATION.—The term 

4 ‘taxable corporation’ means— 

5 ‘‘(i) a domestic C corporation, or 

6 ‘‘(ii) a foreign corporation substan7 tially all of the income of which is— 

8 ‘‘(I) effectively connected with 

9 the conduct of a trade or business in 

10 the United States, or 

11 ‘‘(II) subject to a comprehensive 

12 foreign income tax (as defined in sec13 tion 457A(d)(2)). 

14 ‘‘(C) INVESTMENT MANAGEMENT SERV15 ICES.—The term ‘investment management serv16 ices’ means a substantial quantity of any of the 

17 services described in subsection (c)(2). 

18 ‘‘(D) INVESTMENT ENTITY.—The term ‘in19 vestment entity’ means any entity which, if it 

20 were a partnership, would be an investment 

21 partnership. 

22 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

23 such regulations or other guidance as is necessary or ap24 propriate to carry out the purposes of this section, includ25 ing regulations or other guidance to— 


SSpencer on DSK4SPTVN1PROD with BILLS
278 

•HR 3555 IH

1 ‘‘(1) provide modifications to the application of 

2 this section (including treating related persons as 

3 not related to one another) to the extent such modi4 fication is consistent with the purposes of this sec5 tion, and 

6 ‘‘(2) coordinate this section with the other pro7 visions of this title. 

8 ‘‘(g) CROSS REFERENCE.—For 40-percent penalty 

9 on certain underpayments due to the avoidance of this sec10 tion, see section 6662.’’. 

11 (b) APPLICATION OF SECTION 751 TO INDIRECT DIS12 POSITIONS OF INVESTMENT SERVICES PARTNERSHIP IN13 TERESTS.— 

14 (1) IN GENERAL.—Section 751(a) of such Code 

15 is amended by striking ‘‘or’’ at the end of paragraph 

16 (1), by inserting ‘‘or’’ at the end of paragraph (2), 

17 and by inserting after paragraph (2) the following 

18 new paragraph: 

19 ‘‘(3) investment services partnership interests 

20 held by the partnership,’’. 

21 (2) CERTAIN DISTRIBUTIONS TREATED AS

22 SALES OR EXCHANGES.—Section 751(b)(1)(A) of 

23 such Code is amended by striking ‘‘or’’ at the end 

24 of clause (i), by inserting ‘‘or’’ at the end of clause 


SSpencer on DSK4SPTVN1PROD with BILLS
279 

•HR 3555 IH

1 (ii), and by inserting after clause (ii) the following 

2 new clause: 

3 ‘‘(iii) investment services partnership 

4 interests held by the partnership,’’. 

5 (3) APPLICATION OF SPECIAL RULES IN THE

6 CASE OF TIERED PARTNERSHIPS.—Section 751(f) of 

7 such Code is amended by striking ‘‘or’’ at the end 

8 of paragraph (1), by inserting ‘‘or’’ at the end of 

9 paragraph (2), and by inserting after paragraph (2) 

10 the following new paragraph: 

11 ‘‘(3) investment services partnership interests 

12 held by the partnership,’’. 

13 (4) INVESTMENT SERVICES PARTNERSHIP IN14 TERESTS; QUALIFIED CAPITAL INTERESTS.—Section 

15 751 of such Code is amended by adding at the end 

16 the following new subsection: 

17 ‘‘(g) INVESTMENT SERVICES PARTNERSHIP INTER18 ESTS.—For purposes of this section— 

19 ‘‘(1) IN GENERAL.—The term ‘investment serv20 ices partnership interest’ has the meaning given 

21 such term by section 710(c). 

22 ‘‘(2) ADJUSTMENTS FOR QUALIFIED CAPITAL

23 INTERESTS.—The amount to which subsection (a) 

24 applies by reason of paragraph (3) thereof shall not 

25 include so much of such amount as is attributable 


SSpencer on DSK4SPTVN1PROD with BILLS
280 

•HR 3555 IH

1 to any portion of the investment services partnership 

2 interest which is a qualified capital interest (deter3 mined under rules similar to the rules of section 

4 710(d)). 

5 ‘‘(3) RECOGNITION OF GAINS.—Any gain with 

6 respect to which subsection (a) applies by reason of 

7 paragraph (3) thereof shall be recognized notwith8 standing any other provision of this title. 

9 ‘‘(4) COORDINATION WITH INVENTORY

10 ITEMS.—An investment services partnership interest 

11 held by the partnership shall not be treated as an 

12 inventory item of the partnership. 

13 ‘‘(5) PREVENTION OF DOUBLE COUNTING.— 

14 Under regulations or other guidance prescribed by 

15 the Secretary, subsection (a)(3) shall not apply with 

16 respect to any amount to which section 710 ap17 plies.’’. 

18 (c) TREATMENT FOR PURPOSES OF SECTION

19 7704.—Section 7704(d) of such Code is amended by add20 ing at the end the following new paragraph: 

21 ‘‘(6) INCOME FROM CERTAIN CARRIED INTER22 ESTS NOT QUALIFIED.— 

23 ‘‘(A) IN GENERAL.—Specified carried in24 terest income shall not be treated as qualifying 

25 income. 


SSpencer on DSK4SPTVN1PROD with BILLS
281 

•HR 3555 IH

1 ‘‘(B) SPECIFIED CARRIED INTEREST IN2 COME.—For purposes of this paragraph— 

3 ‘‘(i) IN GENERAL.—The term ‘speci4 fied carried interest income’ means— 

5 ‘‘(I) any item of income or gain 

6 allocated to an investment services 

7 partnership interest (as defined in 

8 section 710(c)) held by the partner9 ship, 

10 ‘‘(II) any gain on the disposition 

11 of an investment services partnership 

12 interest (as so defined) or a partner13 ship interest to which (in the hands of 

14 the partnership) section 751 applies, 

15 and 

16 ‘‘(III) any income or gain taken 

17 into account by the partnership under 

18 subsection (b)(4) or (e) of section 

19 710. 

20 ‘‘(ii) EXCEPTION FOR QUALIFIED CAP21 ITAL INTERESTS.—A rule similar to the 

22 rule of section 710(d) shall apply for pur23 poses of clause (i). 

24 ‘‘(C) COORDINATION WITH OTHER PROVI25 SIONS.—Subparagraph (A) shall not apply to 


SSpencer on DSK4SPTVN1PROD with BILLS
282 

•HR 3555 IH

1 any item described in paragraph (1)(E) (or so 

2 much of paragraph (1)(F) as relates to para3 graph (1)(E)). 

4 ‘‘(D) SPECIAL RULES FOR CERTAIN PART5 NERSHIPS.— 

6 ‘‘(i) CERTAIN PARTNERSHIPS OWNED

7 BY REAL ESTATE INVESTMENT TRUSTS.— 

8 Subparagraph (A) shall not apply in the 

9 case of a partnership which meets each of 

10 the following requirements: 

11 ‘‘(I) Such partnership is treated 

12 as publicly traded under this section 

13 solely by reason of interests in such 

14 partnership being convertible into in15 terests in a real estate investment 

16 trust which is publicly traded. 

17 ‘‘(II) 50 percent or more of the 

18 capital and profits interests of such 

19 partnership are owned, directly or in20 directly, at all times during the tax21 able year by such real estate invest22 ment trust (determined with the ap23 plication of section 267(c)). 


SSpencer on DSK4SPTVN1PROD with BILLS
283 

•HR 3555 IH

1 ‘‘(III) Such partnership meets 

2 the requirements of paragraphs (2), 

3 (3), and (4) of section 856(c). 

4 ‘‘(ii) CERTAIN PARTNERSHIPS OWN5 ING OTHER PUBLICLY TRADED PARTNER6 SHIPS.—Subparagraph (A) shall not apply 

7 in the case of a partnership which meets 

8 each of the following requirements: 

9 ‘‘(I) Substantially all of the as10 sets of such partnership consist of in11 terests in one or more publicly traded 

12 partnerships (determined without re13 gard to subsection (b)(2)). 

14 ‘‘(II) Substantially all of the in15 come of such partnership is ordinary 

16 income or section 1231 gain (as de17 fined in section 1231(a)(3)). 

18 ‘‘(E) TRANSITIONAL RULE.—Subpara19 graph (A) shall not apply to any taxable year 

20 of the partnership beginning before the date 

21 which is 10 years after January 1, 2016.’’. 

22 (d) IMPOSITION OF PENALTY ON UNDERPAY23 MENTS.— 


SSpencer on DSK4SPTVN1PROD with BILLS
284 

•HR 3555 IH

1 (1) IN GENERAL.—Section 6662(b) of such 

2 Code is amended by inserting after paragraph (7) 

3 the following new paragraph: 

4 ‘‘(8) The application of section 710(e) or the 

5 regulations or other guidance prescribed under sec6 tion 710(h) to prevent the avoidance of the purposes 

7 of section 710.’’. 

8 (2) AMOUNT OF PENALTY.— 

9 (A) IN GENERAL.—Section 6662 of such 

10 Code is amended by adding at the end the fol11 lowing new subsection: 

12 ‘‘(k) INCREASE IN PENALTY IN CASE OF PROPERTY

13 TRANSFERRED FOR INVESTMENT MANAGEMENT SERV14 ICES.—In the case of any portion of an underpayment to 

15 which this section applies by reason of subsection (b)(8), 

16 subsection (a) shall be applied with respect to such portion 

17 by substituting ‘40 percent’ for ‘20 percent’.’’. 

18 (B) CONFORMING AMENDMENT.—Section 

19 6662A(e)(2)(B) is amended by striking ‘‘or (i)’’ 

20 and inserting ‘‘, (i), or (k)’’. 

21 (3) SPECIAL RULES FOR APPLICATION OF REA22 SONABLE CAUSE EXCEPTION.—Section 6664(c) is 

23 amended— 

24 (A) by redesignating paragraphs (3) and 

25 (4) as paragraphs (4) and (5), respectively; 


SSpencer on DSK4SPTVN1PROD with BILLS
285 

•HR 3555 IH

1 (B) by striking ‘‘paragraph (3)’’ in para2 graph (5)(A), as so redesignated, and inserting 

3 ‘‘paragraph (4)’’; and 

4 (C) by inserting after paragraph (2) the 

5 following new paragraph: 

6 ‘‘(3) SPECIAL RULE FOR UNDERPAYMENTS AT7 TRIBUTABLE TO INVESTMENT MANAGEMENT SERV8 ICES.— 

9 ‘‘(A) IN GENERAL.—Paragraph (1) shall 

10 not apply to any portion of an underpayment to 

11 which section 6662 applies by reason of sub12 section (b)(8) unless— 

13 ‘‘(i) the relevant facts affecting the 

14 tax treatment of the item are adequately 

15 disclosed, 

16 ‘‘(ii) there is or was substantial au17 thority for such treatment, and 

18 ‘‘(iii) the taxpayer reasonably believed 

19 that such treatment was more likely than 

20 not the proper treatment. 

21 ‘‘(B) RULES RELATING TO REASONABLE

22 BELIEF.—Rules similar to the rules of sub23 section (d)(3) shall apply for purposes of sub24 paragraph (A)(iii).’’. 


SSpencer on DSK4SPTVN1PROD with BILLS
286 

•HR 3555 IH

1 (e) INCOME AND LOSS FROM INVESTMENT SERVICES

2 PARTNERSHIP INTERESTS TAKEN INTO ACCOUNT IN DE3 TERMINING NET EARNINGS FROM SELF-EMPLOYMENT.— 

4 (1) INTERNAL REVENUE CODE.— 

5 (A) IN GENERAL.—Section 1402(a) of 

6 such Code is amended by striking ‘‘and’’ at the 

7 end of paragraph (16), by striking the period at 

8 the end of paragraph (17) and inserting ‘‘; 

9 and’’, and by inserting after paragraph (17) the 

10 following new paragraph: 

11 ‘‘(18) notwithstanding the preceding provisions 

12 of this subsection, in the case of any individual en13 gaged in the trade or business of providing services 

14 described in section 710(c)(2) with respect to any 

15 entity, investment services partnership income or 

16 loss (as defined in subsection (m)) of such individual 

17 with respect to such entity shall be taken into ac18 count in determining the net earnings from self-em19 ployment of such individual.’’. 

20 (B) INVESTMENT SERVICES PARTNERSHIP

21 INCOME OR LOSS.—Section 1402 of such Code 

22 is amended by adding at the end the following 

23 new subsection: 

24 ‘‘(m) INVESTMENT SERVICES PARTNERSHIP INCOME

25 OR LOSS.—For purposes of subsection (a)— 


SSpencer on DSK4SPTVN1PROD with BILLS
287 

•HR 3555 IH

1 ‘‘(1) IN GENERAL.—The term ‘investment serv2 ices partnership income or loss’ means, with respect 

3 to any investment services partnership interest (as 

4 defined in section 710(c)), the net of— 

5 ‘‘(A) the amounts treated as ordinary in6 come or ordinary loss under subsections (b) and 

7 (e) of section 710 with respect to such interest, 

8 ‘‘(B) all items of income, gain, loss, and 

9 deduction allocated to such interest, and 

10 ‘‘(C) the amounts treated as realized from 

11 the sale or exchange of property other than a 

12 capital asset under section 751 with respect to 

13 such interest. 

14 ‘‘(2) EXCEPTION FOR QUALIFIED CAPITAL IN15 TERESTS.—A rule similar to the rule of section 

16 710(d) shall apply for purposes of applying para17 graph (1)(B)(ii).’’. 

18 (2) SOCIAL SECURITY ACT.—Section 211(a) of 

19 the Social Security Act is amended by striking 

20 ‘‘and’’ at the end of paragraph (15), by striking the 

21 period at the end of paragraph (16) and inserting ‘‘; 

22 and’’, and by inserting after paragraph (16) the fol23 lowing new paragraph: 

24 ‘‘(17) Notwithstanding the preceding provisions 

25 of this subsection, in the case of any individual enVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00287 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
288 

•HR 3555 IH

1 gaged in the trade or business of providing services 

2 described in section 710(c)(2) of the Internal Rev3 enue Code of 1986 with respect to any entity, invest4 ment services partnership income or loss (as defined 

5 in section 1402(m) of such Code) shall be taken into 

6 account in determining the net earnings from self7 employment of such individual.’’. 

8 (f) CONFORMING AMENDMENTS.— 

9 (1) Subsection (d) of section 731 of the Inter10 nal Revenue Code of 1986 is amended by inserting 

11 ‘‘section 710(b)(4) (relating to distributions of part12 nership property),’’ after ‘‘to the extent otherwise 

13 provided by’’. 

14 (2) Section 741 of such Code is amended by in15 serting ‘‘or section 710 (relating to special rules for 

16 partners providing investment management services 

17 to partnerships)’’ before the period at the end. 

18 (3) The table of sections for part I of sub19 chapter K of chapter 1 of such Code is amended by 

20 adding at the end the following new item: 

‘‘Sec. 710. Special rules for partners providing investment management services 

to partnerships.’’. 

21 (g) EFFECTIVE DATE.— 

22 (1) IN GENERAL.—Except as otherwise pro23 vided in this subsection, the amendments made by 


SSpencer on DSK4SPTVN1PROD with BILLS
289 

•HR 3555 IH

1 this section shall apply to taxable years ending after 

2 December 31, 2015. 

3 (2) PARTNERSHIP TAXABLE YEARS WHICH IN4 CLUDE EFFECTIVE DATE.—In applying section 

5 710(a) of such Code (as added by this section) in 

6 the case of any partnership taxable year which in7 cludes January 1, 2016, the amount of the net in8 come referred to in such section shall be treated as 

9 being the lesser of the net income for the entire 

10 partnership taxable year or the net income deter11 mined by only taking into account items attributable 

12 to the portion of the partnership taxable year which 

13 is after such date. 

14 (3) DISPOSITIONS OF PARTNERSHIP INTER15 ESTS.— 

16 (A) IN GENERAL.—Section 710(b) of such 

17 Code (as added by this section) shall apply to 

18 dispositions and distributions after December 

19 31, 2015. 

20 (B) INDIRECT DISPOSITIONS.—The amend21 ments made by subsection (b) shall apply to 

22 transactions after December 31, 2015. 

23 (4) OTHER INCOME AND GAIN IN CONNECTION

24 WITH INVESTMENT MANAGEMENT SERVICES.—SecVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00289 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
290 

•HR 3555 IH

1 tion 710(e) of such Code (as added by this section) 

2 shall take effect on January 1, 2016. 

3 Subtitle C—Close Loophole for 

4 Corporate Jet Depreciation 

5 SEC. 421. GENERAL AVIATION AIRCRAFT TREATED AS 7- 

6 YEAR PROPERTY. 

7 (a) IN GENERAL.—Section 168(e)(3)(C) of the Inter8 nal Revenue Code of 1986 is amended by striking ‘‘and’’ 

9 at the end of clause (iv), by redesignating clause (v) as 

10 clause (vi), and by inserting after clause (iv) the following 

11 new clause: 

12 ‘‘(v) any general aviation aircraft, and’’. 

13 (b) CLASS LIFE.—Section 168(g)(3) of such Code is 

14 amended by inserting after subparagraph (E) the fol15 lowing new subparagraph: 

16 ‘‘(F) General aviation aircraft. In the case 

17 of any general aviation aircraft, the recovery 

18 period used for purposes of paragraph (2) shall 

19 be 12 years.’’. 

20 (c) GENERAL AVIATION AIRCRAFT.—Section 168(i) 

21 of such Code is amended by inserting after paragraph (19) 

22 the following new paragraph: 

23 ‘‘(20) GENERAL AVIATION AIRCRAFT.—The 

24 term ‘general aviation aircraft’ means any airplane 

25 or helicopter (including airframes and engines) not 


SSpencer on DSK4SPTVN1PROD with BILLS
291 

•HR 3555 IH

1 used in commercial or contract carrying of pas2 sengers or freight, but which primarily engages in 

3 the carrying of passengers.’’. 

4 (d) EFFECTIVE DATE.—This section shall be effec5 tive for property placed in service after December 31, 

6 2015. 

7 Subtitle D—Repeal Oil Subsidies 

8 SEC. 431. REPEAL OF DEDUCTION FOR INTANGIBLE DRILL9 ING AND DEVELOPMENT COSTS IN THE CASE 

10 OF OIL AND GAS WELLS. 

11 (a) IN GENERAL.—Section 263(c) of the Internal 

12 Revenue Code of 1986 is amended by adding at the end 

13 the following new sentence: ‘‘This subsection shall not 

14 apply in the case of oil and gas wells with respect to 

15 amounts paid or incurred after December 31, 2015.’’. 

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

17 this section shall apply to amounts paid or incurred after 

18 December 31, 2015. 

19 SEC. 432. REPEAL OF DEDUCTION FOR TERTIARY 

20 INJECTANTS. 

21 (a) IN GENERAL.—Part VI of subchapter B of chap22 ter 1 of the Internal Revenue Code of 1986 is amended 

23 by striking section 193 (relating to tertiary injectants). 


SSpencer on DSK4SPTVN1PROD with BILLS
292 

•HR 3555 IH

1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for part VI of subchapter B of chapter 1 of such Code 

3 is amended by striking the item relating to section 193. 

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

5 this section shall apply to amounts paid or incurred after 

6 December 31, 2015. 

7 SEC. 433. REPEAL OF PERCENTAGE DEPLETION FOR OIL 

8 AND GAS WELLS. 

9 (a) IN GENERAL.—Section 613A of the Internal Rev10 enue Code of 1986 is amended to read as follows: 

11 ‘‘SEC. 613A. PERCENTAGE DEPLETION NOT ALLOWED IN 

12 CASE OF OIL AND GAS WELLS. 

13 ‘‘The allowance for depletion under section 611 with 

14 respect to any oil and gas well shall be computed without 

15 regard to section 613.’’. 

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

17 this section shall apply to taxable years beginning after 

18 December 31, 2015. 

19 SEC. 434. SECTION 199 DEDUCTION NOT ALLOWED WITH 

20 RESPECT TO OIL, NATURAL GAS, OR PRIMARY 

21 PRODUCTS THEREOF. 

22 (a) IN GENERAL.—Section 199(c)(4)(B) of the Inter23 nal Revenue Code of 1986 (relating to income attributable 

24 to domestic production activities) is amended— 

25 (1) by striking ‘‘or’’ at the end of clause (ii), 


SSpencer on DSK4SPTVN1PROD with BILLS
293 

•HR 3555 IH

1 (2) by striking the period at the end of clause 

2 (iii) and inserting in lieu thereof ‘‘, or’’, and 

3 (3) by adding at the end thereof the following 

4 new clause: 

5 ‘‘(iv) the production, refining, proc6 essing, transportation, or distribution of 

7 oil, natural gas, or any primary product 

8 (within the meaning of subsection (d)(9)) 

9 thereof.’’. 

10 (b) CONFORMING AMENDMENT.—Paragraph (9) of 

11 section 199(d) is amended to read as follows: 

12 ‘‘(9) PRIMARY PRODUCT.—For purposes of sub13 section (c)(4)(B)(iv), the term ‘primary product’ has 

14 the same meaning as when used in section 

15 927(a)(2)(C), as in effect before its repeal.’’. 

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

17 this section shall apply to taxable years beginning after 

18 December 31, 2015. 

19 SEC. 435. REPEAL OIL AND GAS WORKING INTEREST EX20 CEPTION TO PASSIVE ACTIVITY RULES. 

21 (a) IN GENERAL.—Section 469(c)(3) of the Internal 

22 Revenue Code of 1986 is amended by adding at the end 

23 thereof the following new subparagraph— 


SSpencer on DSK4SPTVN1PROD with BILLS
294 

•HR 3555 IH

1 ‘‘(C) TERMINATION.—Subparagraph (A) 

2 shall not apply for any taxable year beginning 

3 after December 31 2015.’’. 

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

5 this section shall apply to taxable years beginning after 

6 December 31, 2015. 

7 SEC. 436. REPEAL ENHANCED OIL RECOVERY CREDIT. 

8 (a) IN GENERAL.—Subpart D of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 

10 1986 is amended by striking section 43. 

11 (b) CLERICAL AMENDMENT.—The table of sections 

12 for subpart D of part IV of subchapter A of chapter 1 

13 of such Code is amended by striking the item relating to 

14 section 43. 

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

16 this section shall apply to taxable years beginning after 

17 December 31, 2015. 

18 SEC. 437. UNIFORM SEVEN-YEAR AMORTIZATION FOR GEO19 LOGICAL AND GEOPHYSICAL EXPENDITURES. 

20 (a) IN GENERAL.—Section 167(h)(1) of the Internal 

21 Revenue Code of 1986 is amended by striking ‘‘24-month’’ 

22 and inserting in lieu thereof ‘‘7-year’’. 

23 (b) CONFORMING AMENDMENTS.—Section 167(h) of 

24 such Code is amended— 


SSpencer on DSK4SPTVN1PROD with BILLS
295 

•HR 3555 IH

1 (1) by striking ‘‘24-month’’ in paragraph (4) 

2 and inserting ‘‘7-year’’, and 

3 (2) by striking paragraph (5). 

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

5 this section shall apply to amounts paid or incurred after 

6 December 31, 2015. 

7 SEC. 438. REPEAL MARGINAL WELL PRODUCTION CREDIT. 

8 (a) IN GENERAL.—Subpart D of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 

10 1986 is amended by striking section 45I. 

11 (b) CLERICAL AMENDMENT.—The table of sections 

12 for subpart D of part IV of subchapter A of chapter 1 

13 of such Code is amended by striking the item relating to 

14 section 45I. 

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

16 this section shall apply to taxable years beginning after 

17 December 31, 2015. 

18 Subtitle E—Dual Capacity 

19 Taxpayers 

20 SEC. 441. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 

21 APPLICABLE TO DUAL CAPACITY TAXPAYERS. 

22 (a) IN GENERAL.—Section 901 of the Internal Rev23 enue Code of 1986 is amended by redesignating subsection 

24 (n) as subsection (o) and by inserting after subsection (m) 

25 the following new subsection: 


SSpencer on DSK4SPTVN1PROD with BILLS
296 

•HR 3555 IH

1 ‘‘(n) SPECIAL RULES RELATING TO DUAL CAPACITY

2 TAXPAYERS.— 

3 ‘‘(1) GENERAL RULE.—Notwithstanding any 

4 other provision of this chapter, any amount paid or 

5 accrued by a dual capacity taxpayer or any member 

6 of the worldwide affiliated group of which such dual 

7 capacity taxpayer is also a member to any foreign 

8 country or to any possession of the United States 

9 for any period shall not be considered a tax to the 

10 extent such amount exceeds the amount (determined 

11 in accordance with regulations) which would have 

12 been required to be paid if the taxpayer were not a 

13 dual capacity taxpayer. 

14 ‘‘(2) DUAL CAPACITY TAXPAYER.—For pur15 poses of this subsection, the term ‘dual capacity tax16 payer’ means, with respect to any foreign country or 

17 possession of the United States, a person who— 

18 ‘‘(A) is subject to a levy of such country or 

19 possession, and 

20 ‘‘(B) receives (or will receive) directly or 

21 indirectly a specific economic benefit (as deter22 mined in accordance with regulations) from 

23 such country or possession. 

24 ‘‘(3) REGULATIONS.—The Secretary may issue 

25 such regulations or other guidance as is necessary or 


SSpencer on DSK4SPTVN1PROD with BILLS
297 

•HR 3555 IH

1 appropriate to carry out the purposes of this sub2 section.’’. 

3 (b) CONTRARY TREATY OBLIGATIONS UPHELD.— 

4 The amendments made by this section shall not apply to 

5 the extent contrary to any treaty obligation of the United 

6 States. 

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

8 this section shall apply to amounts that, if such amounts 

9 were an amount of tax paid or accrued, would be consid10 ered paid or accrued in taxable years beginning after De11 cember 31, 2015. 

12 SEC. 442. SEPARATE BASKET TREATMENT TAXES PAID ON 

13 FOREIGN OIL AND GAS INCOME. 

14 (a) SEPARATE BASKET FOR FOREIGN TAX CRED15 IT.—Section 904(d)(1) of the Internal Revenue Code of 

16 1986 is amended by striking ‘‘and’’ at the end of subpara17 graph (A), by striking the period at the end of subpara18 graph (B) and inserting ‘‘, and’’, and by adding at the 

19 end the following: 

20 ‘‘(C) combined foreign oil and gas income 

21 (as defined in section 907(b)(1)).’’. 

22 (b) COORDINATION.—Section 904(d)(2) of such Code 

23 is amended by inserting after subparagraph (I) the fol24 lowing new subparagraph: 


SSpencer on DSK4SPTVN1PROD with BILLS
298 

•HR 3555 IH

1 ‘‘(J) COORDINATION WITH COMBINED FOR2 EIGN OIL AND GAS INCOME.—For purposes of 

3 this section, passive category income and gen4 eral category income shall not include combined 

5 foreign oil and gas income (as defined in section 

6 907(b)(1)).’’. 

7 (c) CONFORMING AMENDMENTS.— 

8 (1) Section 907(a) is hereby repealed. 

9 (2) Section 907(c)(4) is hereby repealed. 

10 (3) Section 907(f) is hereby repealed. 

11 (d) EFFECTIVE DATES.— 

12 (1) IN GENERAL.—The amendments made by 

13 this section shall apply to taxable years beginning 

14 after December 31, 2015. 

15 (2) TRANSITIONAL RULES.— 

16 (A) CARRYOVERS.—Any unused foreign oil 

17 and gas taxes which under section 907(f) of 

18 such Code (as in effect before the amendment 

19 made by subsection (c)(3)) would have been al20 lowable as a carryover to the taxpayer’s first 

21 taxable year beginning after December 31, 

22 2013 (without regard to the limitation of para23 graph (2) of such section 907(f) for first tax24 able year), shall be allowed as carryovers under 

25 section 904(c) of such Code in the same manVerDate Sep 11 2014 03:43 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00298 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555

SSpencer on DSK4SPTVN1PROD with BILLS
299 

•HR 3555 IH

1 ner as if such taxes were unused taxes under 

2 such section 904(c) with respect to foreign oil 

3 and gas extraction income. 

4 (B) LOSSES.—The amendment made by 

5 subsection (c)(2) shall not apply to foreign oil 

6 and gas extraction losses arising in taxable 

7 years beginning on or before the date of the en8 actment of this Act. 

9 Subtitle F—Repeal of 

10 Sequestration 

11 SEC. 451. REPEAL OF SEQUESTRATION. 

12 Section 251A of the Balanced Budget and Emer13 gency Deficit Control Act of 1985 is repealed. 

Æ 


SSpencer on DSK4SPTVN1PROD with BILLS