I 
112TH CONGRESS 
2D SESSION 
H. R. 5727 
To rebuild the American middle class by creating jobs, investing in our 
future, building opportunity for working families, and restoring balance 
to the tax code. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 10, 2012 
Ms. DELAURO (for herself and Mr. BRALEY of Iowa) introduced the following 
bill; which was referred to the Committee on Ways and Means, and in 
addition to the Committees on Education and the Workforce, Energy and 
Commerce, Agriculture, Transportation and Infrastructure, Financial 
Services, Science, Space, and Technology, Small Business, the Judiciary, 
Rules, Oversight and Government Reform, and House Administration, 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 com-
mittee concerned 
A BILL 
To rebuild the American middle class by creating jobs, invest-
ing in our future, building opportunity for working fami-
lies, and restoring balance to the tax code. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Rebuild America Act’’. 
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(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—INVESTING IN AMERICA TO CREATE JOBS AND FUTURE 
GROWTH 
Subtitle A—Investing in America’s Roads, Bridges, and Infrastructure 
Sec. 101. Modernization, renovation, and repair of educational facilities. 
Sec. 102. National energy renovation and retrofit program. 
Sec. 103. Rebuilding America’s infrastructure. 
Subtitle B—Rebuilding America’s Manufacturing Power 
Sec. 111. National manufacturing strategy. 
Sec. 112. Sectoral technology and innovation centers. 
Sec. 113. Capital for small manufacturers with firm orders. 
Sec. 114. Manufacturing Extension Partnership. 
Sec. 115. Extension of research credit; increase in alternative simplified re-
search credit. 
Sec. 116. Inclusion of certain provisions in trade agreements. 
Sec. 117. Funding for Interagency Trade Enforcement Center. 
Sec. 118. Imposition of countervailing duties for subsidies relating to fun-
damentally undervalued currencies. 
Subtitle C—Preparing Americans for the Jobs of the Future 
Sec. 121. Short title. 
Sec. 122. Definitions. 
Sec. 123. Program. 
Sec. 124. Eligible entities. 
Sec. 125. Applications. 
Sec. 126. Priority and distribution. 
Sec. 127. Use of funds. 
Sec. 128. Matching requirement. 
Sec. 129. Funding. 
Subtitle D—Supporting Great Teachers 
Sec. 131. Short title. 
Sec. 132. Findings. 
Sec. 133. Purposes. 
Sec. 134. Definitions. 
Sec. 135. Grants authorized. 
Sec. 136. Application. 
Sec. 137. State use of grant funds. 
Sec. 138. Subgrants to local entities. 
Sec. 139. Reporting. 
Sec. 140. Teacher privacy. 
Sec. 141. Rule of construction. 
Sec. 142. Funding. 
Subtitle E—Creating Middle Class Jobs 
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PART I—TEACHER STABILIZATION 
Sec. 151. Purpose. 
Sec. 152. Definitions. 
Sec. 153. Reservations for the outlying areas and the Secretary of the Interior. 
Sec. 154. State allotments. 
Sec. 155. State application, reservation, and responsibilities. 
Sec. 156. Subgrants. 
Sec. 157. Maintenance of effort. 
Sec. 158. Reporting. 
Sec. 159. Funding. 
PART II—FIRST RESPONDER STABILIZATION 
Sec. 161. Purpose. 
Sec. 162. Career law enforcement officers grant program. 
Sec. 163. First responder grant program. 
PART III—MAINTAINING CRITICAL COMMUNITY SERVICES 
Sec. 171. Definitions. 
Sec. 172. Maintaining critical community services. 
Sec. 173. Application. 
Sec. 174. Award basis. 
Sec. 175. Uses of funds. 
Sec. 176. Employee status, compliance with local laws, and contracts. 
Sec. 177. Supplement, not supplant. 
Sec. 178. Funding provided. 
TITLE II—CREATING FINANCIAL STABILITY AND A BETTER 
FUTURE FOR MIDDLE CLASS FAMILIES 
Subtitle A—Alleviating the High Cost of Child Care 
Sec. 201. CCDBG Plus. 
Subtitle B—Helping Americans Enjoy Their Golden Years 
PART I—COMMISSION ON RETIREMENT SECURITY 
Sec. 211. Short title. 
Sec. 212. Findings. 
Sec. 213. Commission on Retirement Security. 
Sec. 214. Duties. 
Sec. 215. Commission personnel matters. 
Sec. 216. Termination of Commission. 
PART II—SOCIAL SECURITY 
Sec. 221. Determination of taxable wages and self-employment income above 
contribution and benefit base after 2012. 
Sec. 222. Adjustments to bend points in determining primary insurance 
amount. 
Sec. 223. Consumer Price Index for Elderly Consumers. 
Sec. 224. Computation of cost-of-living increases for Social Security benefits. 
Sec. 225. Non-application of increase in Social Security benefits for other Fed-
eral or federally assisted programs. 
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Subtitle C—Protecting Overtime Pay for Working Americans 
Sec. 231. Salary thresholds, highly compensated employees, and primary duties. 
Subtitle D—Preventing Americans From Having To Choose Between Their 
Health and Their Paycheck 
Sec. 241. Short title. 
Sec. 242. Findings. 
Sec. 243. Purposes. 
Sec. 244. Definitions. 
Sec. 245. Provision of paid sick time. 
Sec. 246. Posting requirement. 
Sec. 247. Prohibited acts. 
Sec. 248. Enforcement authority. 
Sec. 249. Collection of data on paid sick time and further study. 
Sec. 250. Effect on other laws. 
Sec. 251. Effect on existing employment benefits. 
Sec. 252. Encouragement of more generous leave policies. 
Sec. 253. Regulations. 
Sec. 254. Effective dates. 
Subtitle E—Establishing a Fair Minimum Wage 
Sec. 261. Minimum wage increases. 
Subtitle F—Empowering Hardworking Americans 
Sec. 271. Amendments to the National Labor Relations Act. 
Subtitle G—Increasing Job Opportunities for Americans With Disabilities 
Sec. 281. Modification of work opportunity credit. 
TITLE III—RESTORING BALANCE AND FAIRNESS TO THE TAX 
CODE 
Sec. 300. Amendment of 1986 Code. 
Subtitle A—Instituting the ‘‘Buffett Rule’’ 
Sec. 301. Fair share tax on high-income taxpayers. 
Subtitle B—Adopting a Wall Street Trading and Speculators Tax 
Sec. 311. Transaction tax. 
Subtitle C—Ending Tax Breaks for Companies That Ship Jobs Overseas 
Sec. 321. Allocation of expenses and taxes on basis of repatriation of foreign 
income. 
Sec. 322. Excess income from transfers of intangibles to low-taxed affiliates 
treated as subpart F income. 
Sec. 323. Modifications of foreign tax credit rules applicable to dual capacity 
taxpayers. 
Subtitle D—Making Wall Street Take Responsibility 
Sec. 331. Financial Crisis Responsibility Fee. 
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Subtitle E—Closing the Carried Interest Loophole 
Sec. 341. Partnership interests transferred in connection with performance of 
services. 
Sec. 342. Special rules for partners providing investment management services 
to partnerships. 
Subtitle F—Raising the Capital Gains Rate 
Sec. 351. Increased capital gains rate for high-income individuals. 
Subtitle G—Pension Guaranty Improvement 
Sec. 361. Short title. 
Sec. 362. Findings. 
Sec. 363. Pension Benefit Guaranty Corporation Governance Improvement. 
Sec. 364. Participant and plan sponsor advocate. 
Sec. 365. Increase in multiemployer plan benefit guarantee and annual pre-
mium rates. 
Sec. 366. Improving single employer program solvency. 
Subtitle H—Pension and Participant Protection 
Sec. 371. Short title. 
Sec. 372. Findings. 
Sec. 373. Pension funding stabilization. 
Sec. 374. Congressional commitment to encouraging pensions. 
Sec. 375. Participant protection in bankruptcy. 
Subtitle I—Fair Playing Field 
Sec. 381. Short title; findings; purposes. 
Sec. 382. Authority to issue guidance clarifying employment status for purposes 
of employment taxes. 
TITLE IV—REBUILD AMERICA TRUST FUND 
Sec. 401. Establish Rebuild America Trust Fund. 
TITLE I—INVESTING IN AMERICA 
TO CREATE JOBS AND FU-
TURE GROWTH 
Subtitle A—Investing in America’s 
Roads, Bridges, and Infrastructure 
SEC. 101. MODERNIZATION, RENOVATION, AND REPAIR OF 
EDUCATIONAL FACILITIES. 
(a) PURPOSE.—The purpose of this section is to pro-
vide assistance for the modernization, renovation, and re-
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pair of eligible educational facilities, including early learn-
ing facilities, public elementary school and secondary 
school facilities, and community college facilities. 
(b) DEFINITIONS.—In this section: 
(1) ESEA DEFINITIONS.—The terms ‘‘elemen-
tary school’’, ‘‘local educational agency’’, ‘‘outlying 
area’’, ‘‘secondary school’’, ‘‘Secretary’’, and ‘‘State’’ 
have the meanings given the terms in section 9101 
of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7801). 
(2) CHPS CRITERIA.—The term ‘‘CHPS Cri-
teria’’ means the green building rating criteria devel-
oped by the Collaborative for High Performance 
Schools. 
(3) COMMUNITY COLLEGE.—The term ‘‘commu-
nity college’’ means— 
(A) a junior or community college, as de-
fined in section 312(f) of the Higher Education 
Act of 1965 (20 U.S.C. 1058(f)); or 
(B) a 4-year public institution of higher 
education, as defined under section 101 of the 
Higher Education Act of 1965 (20 U.S.C. 
1001), that awards a significant number of de-
grees and certificates, as determined by the 
Secretary, that are not— 
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(i) baccalaureate degrees, or the 
equivalent of such degrees; or 
(ii) masters, professional, or other ad-
vanced degrees. 
(4) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means the following: 
(A) In reference to the modernization, ren-
ovation, or repair of an early learning facility, 
the term ‘‘eligible entity’’ means— 
(i) an eligible child care provider as 
defined in paragraph (5)(A) of section 
658P of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 
9858n(5)(A)); or 
(ii) a Head Start center under the 
Head Start Act (42 U.S.C. 9831 et seq.). 
(B) In reference to the modernization, ren-
ovation, or repair of a public elementary school 
or secondary school facility, the term ‘‘eligible 
entity’’ means a local educational agency. 
(C) In reference to the modernization, ren-
ovation, or repair of a community college facil-
ity, the term ‘‘eligible entity’’ means the com-
munity college. 
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(5) ENERGY STAR.—The term ‘‘Energy Star’’ 
means the Energy Star program of the Department 
of Energy and the Environmental Protection Agen-
cy. 
(6) 
GREEN
GLOBES.—The 
term 
‘‘Green 
Globes’’ means the Green Building Initiative envi-
ronmental design and rating system. 
(7) LEED GREEN
BUILDING
RATING
SYS-
TEM.—The term ‘‘LEED Green Building Rating 
System’’ means the United States Green Building 
Council Leadership in Energy and Environmental 
Design green building rating system. 
(c) GRANTS TO STATES.— 
(1) IN GENERAL.—The Secretary shall allocate 
funds to each State, as described in paragraph (3), 
to enable the State to award subgrants, on a com-
petitive basis, to eligible entities for the purpose of 
modernizing, renovating, and repairing eligible edu-
cational facilities. Grant funds may be used for di-
rect payments, payment of interest on bonds, or pay-
ments for other financing instruments that are 
newly issued for the purpose of financing school 
modernization, renovation, or repair. 
(2) RESERVATIONS.—From the funds made 
available under subsection (i) for a fiscal year, the 
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Secretary shall reserve for the purposes of this sec-
tion— 
(A) 0.5 percent for payments to the Sec-
retary of the Interior to provide assistance to 
schools funded by the Bureau of Indian Edu-
cation; 
(B) 0.75 percent to provide assistance to 
the outlying areas; and 
(C) 0.25 percent for grants to institutions 
that are eligible to receive a grant under section 
316 of the Higher Education Act of 1965 (20 
U.S.C. 1059c). 
(3) AMOUNT OF FUNDS.—From the funds made 
available under subsection (i) for any fiscal year and 
remaining after the Secretary makes reservations 
under paragraph (2) for the fiscal year, the Sec-
retary shall allot to each State the sum of— 
(A) an amount that bears the same rela-
tionship to 35 percent of the remaining amount 
as the number of individuals who have not yet 
attained age 25 in the State, as determined by 
the Secretary on the basis of the most recent 
satisfactory data, bears to the number of those 
individuals in all such States, as so determined; 
and 
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(B) an amount that bears the same rela-
tionship to 65 percent of the remaining amount 
as the number of individuals who have not yet 
attained age 25 who are from families with in-
comes below the poverty line, in the State, as 
determined by the Secretary on the basis of the 
most recent satisfactory data, bears to the num-
ber of those individuals in all such States, as so 
determined. 
(4) REALLOCATION.—If a State does not apply 
for its allocation under this section, applies for less 
than the full allocation for which it is eligible, or 
does not use the allocation in a timely manner, the 
Secretary may reallocate all or a portion of the allo-
cation to the other States. 
(d) SUBGRANTS.— 
(1) IN GENERAL.—From the funds allocated to 
a State under subsection (c) for any fiscal year and 
remaining after the State makes any reservations 
under paragraph (2) for the fiscal year, each State 
receiving a grant under this section shall dis-
tribute— 
(A) 10 percent to award subgrants to eligi-
ble entities for the modernization, renovation, 
and repair of early learning facilities; 
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(B) 65 percent to award subgrants to eligi-
ble entities for the modernization, renovation, 
and repair of public elementary school and sec-
ondary school facilities; and 
(C) 25 percent to award subgrants to eligi-
ble entities for the modernization, renovation, 
and repair of community college facilities. 
(2) 
STATE
ADMINISTRATION
AND
OTHER 
COSTS.—Each State that receives a grant under this 
section may reserve not more than 1 percent of the 
grant allocation under subsection (c) for the pur-
poses of administering the distribution of subgrants 
under this section, including the provision of tech-
nical assistance to eligible entities. 
(3) MATCHING REQUIREMENT.— 
(A) IN GENERAL.—A State shall require 
eligible entities to match funds awarded under 
this subsection. 
(B) AMOUNT
OF
MATCHING
FUNDS
RE-
QUIREMENT.—The amount of a match de-
scribed in subparagraph (A) may be established 
by using a sliding scale that takes into account 
the relative poverty of the population served by 
the eligible entity. 
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(e) STATE APPLICATIONS.—A State that desires to 
receive a grant under this section shall submit an applica-
tion to the Secretary at such time, in such manner, and 
containing such information and assurances as the Sec-
retary may require. Such application shall include the fol-
lowing: 
(1) An identification of the State agency or en-
tity that will administer the grant program. 
(2) A description of the State’s process for de-
termining how subgrant funds will be distributed 
and administered, including— 
(A) how the State will determine the cri-
teria for awarding subgrants under subsection 
(d); and 
(B) how the State will consider— 
(i) the needs of each eligible entity, or 
each population served by an eligible enti-
ty, for assistance under this section; 
(ii) the impact of potential projects on 
job creation in the State; 
(iii) the fiscal capacity of the eligible 
entity applying for assistance; and 
(iv) the percentage of individuals 
served by the eligible entity who are from 
low-income families. 
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(3) If the State plans to award subgrants to 
early learning facilities, a description of how the 
State will— 
(A) coordinate, to the extent feasible, with 
State early childhood advisory councils estab-
lished under section 642B(b)(1)(A) of the Head 
Start Act (42 U.S.C. 9837b(b)(1)(A)); and 
(B) encourage eligible entities to coordi-
nate with organizations that have demonstrated 
experience in providing technical or financial 
assistance for the modernization, renovation, or 
repair of child care facilities. 
(4) A description of how the State will ensure 
that eligible entities receiving subgrants under this 
section meet the requirements of this section. 
(5) A description of how the State will give pri-
ority to eligible entities that serve the highest per-
centage of low-income individuals. 
(6) A description of how the State will give pri-
ority to eligible entities that use green practices that 
are certified, verified, or consistent with any applica-
ble provisions of— 
(A) the LEED Green Building Rating Sys-
tem; 
(B) Energy Star; 
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(C) the CHPS Criteria; 
(D) Green Globes; or 
(E) an equivalent program adopted by the 
State or another jurisdiction with authority over 
the eligible entity. 
(7) A description of the steps that the State 
will take to ensure that eligible entities receiving 
subgrants will adequately maintain any facilities 
that are modernized, renovated, or repaired with 
subgrant funds awarded under subsection (d). 
(f) USE OF FUNDS.—With respect to funds made 
available under this section that are used for the mod-
ernization, renovation, and repair of eligible educational 
facilities the following rules shall apply: 
(1) PERMISSIBLE
USES
OF
FUNDS.—Facility 
modernization, renovation, and repair shall be lim-
ited to 1 or more of the following: 
(A) Upgrades, repair, or replacement of 
building systems or components to improve the 
quality of education and ensure the health and 
safety of students and staff. 
(B) Modifications necessary to render eligi-
ble educational facilities accessible in order to 
comply with the Americans with Disabilities Act 
of 1990 (42 U.S.C. 12101 et seq.) and section 
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504 of the Rehabilitation Act of 1973 (29 
U.S.C. 794). 
(C) Improvements to environmental condi-
tions, including asbestos abatement or removal, 
and the reduction or elimination of human ex-
posure to lead-based paint, mold, or mildew. 
(D) Measures designed to reduce or elimi-
nate human exposure to classroom noise and 
environmental noise pollution. 
(E) Modifications necessary to reduce the 
consumption of electricity, natural gas, oil, 
water, coal, or land. 
(F) Upgrades or installations of edu-
cational technology infrastructure or training 
equipment. 
(2) IMPERMISSIBLE USES OF FUNDS.—Funds 
received under this section shall not be used for— 
(A) payment of maintenance costs; 
(B) purchase or upgrade of vehicles; 
(C) improvement or construction of stand- 
alone facilities whose purpose is not the edu-
cation or care of children or other students, in-
cluding central office administration or oper-
ations or logistical support facilities; 
(D) athletic facilities; 
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(E) purchase of carbon offsets; or 
(F) the facilities of a sectarian institution, 
or facilities that are used primarily for sec-
tarian purposes. 
(3) SUPPLEMENT, NOT
SUPPLANT.—A local 
educational agency or State-operated or State-sup-
ported eligible entity shall use Federal funds subject 
to this subsection only to supplement the amount of 
funds that would, in the absence of such Federal 
funds, be made available from non-Federal sources 
for school modernization, renovation, and repair. 
(g) GENERAL PROVISION.—Each eligible entity that 
receives subgrant funds under subsection (d) shall ensure 
that, if such eligible entity carries out modernization, ren-
ovation, and repair through a contract, any such contract 
process ensures the maximum number of qualified bidders, 
including small, minority, and women-owned businesses, 
through full and open competition. 
(h) REPORT.—The Secretary shall submit to the ap-
propriations committees and the authorizing committees 
(as defined in section 103 of the Higher Education Act 
of 1965 (20 U.S.C. 1003)) of the House of Representa-
tives and the Senate an annual report regarding the 
grants made under this section. 
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(i) FUNDING.—There shall be made available from 
the Rebuild America Trust Fund under section 9512 of 
the Internal Revenue Code of 1986, $2,000,000,000 for 
each of fiscal years 2013 through 2022 to carry out this 
section. 
SEC. 102. NATIONAL ENERGY RENOVATION AND RETROFIT 
PROGRAM. 
Part D of title III of the Energy Policy and Conserva-
tion Act is amended by inserting after section 364 (42 
U.S.C. 6324) the following: 
‘‘SEC. 364A. NATIONAL ENERGY RENOVATION AND RET-
ROFIT PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary shall provide 
grants to eligible entities to pay the Federal share of the 
cost of carrying out comprehensive energy systems renova-
tion, including— 
‘‘(1) energy systems planning and assessment; 
and 
‘‘(2) implementation of energy efficiency and 
renewable energy projects. 
‘‘(b) ELIGIBLE ENTITIES.—An entity shall be eligible 
to obtain a grant under this section if the entity is a resi-
dential, commercial, industrial, manufacturing, institu-
tional, educational, nonprofit, or other type of entity, orga-
nization, or consortia that is approved by the Secretary. 
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‘‘(c) USE.—A grant provided under this section may 
be used by an eligible entity— 
‘‘(1) to conduct entity energy assessments that 
cover total energy use across all members and activi-
ties of the entity; 
‘‘(2) to analyze and summarize the major 
sources and impacts of the energy use described in 
paragraph (1); 
‘‘(3) to identify alternative approaches to modi-
fying energy systems to reduce energy use, reduce 
the environmental and climatic impact of the energy 
use, and increase the use of clean, domestic energy; 
‘‘(4) to formulate an entity strategy for chang-
ing the overall energy usage of the entity; 
‘‘(5) to implement the strategy described in 
paragraph (4) through the purchase and installation 
of energy efficiency and renewable energy systems 
and other actions, as determined by the entity; and 
‘‘(6) to track and evaluate the effects of the en-
tity energy renovation and retrofit efforts. 
‘‘(d) ADMINISTRATION.—The Secretary, in collabora-
tion with State energy offices, shall establish procedures 
for soliciting and evaluating proposals from entities, over-
seeing grants to eligible entities, and otherwise admin-
istering this section, including procedures for— 
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‘‘(1) annual solicitation and grant cycles; 
‘‘(2) education and technical assistance pro-
grams; and 
‘‘(3) reporting and information-sharing activi-
ties. 
‘‘(e) ALLOCATION OF FUNDS.—The Secretary shall— 
‘‘(1) determine the amount of funds that are al-
located for grants for States and political subdivi-
sions of States for a fiscal year under this section; 
‘‘(2) provide a Federal share of not more than 
50 percent of the cost of carrying out energy renova-
tion programs under this section; and 
‘‘(3) permit an eligible entity to provide the 
non-Federal share of the cost of carrying out energy 
renovation and retrofit programs under this section 
in the form of in-kind services. 
‘‘(f) FUNDING.—There shall be made available from 
the Rebuild America Trust Fund under section 9512 of 
the Internal Revenue Code of 1986, $1,500,000,000 for 
each of fiscal years 2013 through 2022 to carry out this 
section.’’. 
SEC. 103. REBUILDING AMERICA’S INFRASTRUCTURE. 
(a) IN GENERAL.—For fiscal years 2013 through 
2022 and subject to the limitations provided in subsection 
(b), the following amounts shall be provided from the Re-
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build America Trust Fund (referred to in this section as 
the ‘‘trust fund’’): 
(1) RURAL COMMUNITY FACILITIES PROGRAM 
ACCOUNT
OF
THE
DEPARTMENT
OF
AGRI-
CULTURE.—For additional amounts for the cost of 
direct loans and grants for rural community facili-
ties programs as provided for under section 306 and 
described in section 381E(d)(1) of the Consolidated 
Farm and Rural Development Act, $400,000,000 in 
each 
of 
fiscal 
years 
2013 
and 
2014 
and 
$200,000,000 in each of fiscal years 2015 through 
fiscal year 2021. 
(2) RURAL WATER AND WASTE DISPOSAL PRO-
GRAM
ACCOUNT
OF
THE
RURAL
UTILITIES
SERV-
ICE.—For an additional amount for the cost of di-
rect loans and grants for the rural water, waste 
water, and waste disposal programs as provide for 
under sections 306 and 310B and described in sec-
tion 381E(d)(2) of the Consolidated Farm and 
Rural Development Act, $1,200,000,000 in each of 
fiscal years 2013 and 2014 and $600,000,000 in 
each of fiscal years 2015 through fiscal year 2021. 
For the calculation of ability to pay for the deter-
mination of the grant loan ratio under this para-
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graph, only the community receiving the benefit for 
a project shall be considered. 
(3) ECONOMIC DEVELOPMENT ADMINISTRATION 
OF THE DEPARTMENT OF COMMERCE.—For an addi-
tional amount for ‘‘Economic Development Assist-
ance Programs’’, $500,000,000 in each of fiscal 
years 2013 and 2014 and $250,000,000 in each of 
fiscal years 2015 through fiscal year 2021. Of the 
sum provided by the preceding sentence, 10 percent 
of those funds provided may be transferred to feder-
ally authorized regional economic development com-
missions. 
(4) CORPS OF ENGINEERS CIVIL OF THE DE-
PARTMENT OF THE ARMY OF THE DEPARTMENT OF 
DEFENSE.— 
(A) INVESTIGATIONS.—For an additional 
amount for ‘‘Investigations’’, $200,000,000 in 
each of fiscal years 2013 and 2014 and 
$100,000,000 in each of fiscal years 2015 
through fiscal year 2021. 
(B) 
CONSTRUCTION.—For 
additional 
amounts for construction, $1,800,000,000 in 
each of fiscal years 2013 and 2014 and 
$900,000,000 in each of fiscal years 2015 
through fiscal year 2021. 
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(C) SHARING.—Notwithstanding any other 
provision of law, funds provided in this para-
graph shall not be cost shared with the Inland 
Waterways Trust Fund as authorized in Public 
Law 99–662. 
(5) ENERGY EFFICIENCY AND RENEWABLE EN-
ERGY
PROGRAM
OF
THE
DEPARTMENT
OF
EN-
ERGY.— 
(A) EFFICIENCY.—$2,000,000,000 shall 
be available for Energy Efficiency and Con-
servation Block Grants for implementation of 
programs authorized under subtitle E of title V 
of the Energy Independence and Security Act 
of 2007 (42 U.S.C. 17151 et seq.) in each of 
fiscal years 2013 and 2014 and $1,000,000,000 
in each of fiscal years 2015 through fiscal year 
2021. Provided further, that 40 percent of 
these funds shall be awarded on a competitive 
basis. 
(B) WEATHERIZATION.— 
(i) 
IN
GENERAL.—$2,000,000,000 
shall be available for the Weatherization 
Assistance Program under part A of title 
IV of the Energy Conservation and Pro-
duction Act (42 U.S.C. 6861 et seq.) in 
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each of fiscal years 2013 and 2014 and 
$1,000,000,000 in each of fiscal years 
2015 through fiscal year 2021. 
(ii) 
WEATHERIZATION
ASSISTANCE 
PROGRAM AMENDMENTS.— 
(I) 
INCOME
LEVEL.—Section 
412(7) of the Energy Conservation 
and 
Production 
Act 
(42 
U.S.C. 
6862(7)) is amended by striking ‘‘150 
percent’’ both places it appears and 
inserting ‘‘200 percent’’. 
(II) ASSISTANCE
LEVEL
PER 
DWELLING
UNIT.—Section 415(c)(1) 
of the Energy Conservation and Pro-
duction Act (42 U.S.C. 6865(c)(1)) is 
amended by striking ‘‘$2,500’’ and in-
serting ‘‘$7,000’’. 
(C) STATES.—$2,000,000,000 shall be for 
the State Energy Program authorized under 
part D of title III of the Energy Policy and 
Conservation Act (42 U.S.C. 6321) in each of 
fiscal years 2013 and 2014 and $1,000,000,000 
in each of fiscal years 2015 through fiscal year 
2022. 
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(6) MITIGATION
FOR
THE
FEDERAL
EMER-
GENCY MANAGEMENT AGENCY OF THE DEPARTMENT 
OF HOMELAND SECURITY.—$1,500,000,000 shall be 
available for the Hazard Mitigation Program in each 
of fiscal years 2013 and 2014 and $750,000,000 in 
each of fiscal years 2015 through fiscal year 2021. 
These funds shall be allocated by the Administrator 
in proportion to the hazard mitigation grants that 
were allocated to the states in the prior 5 years 
through Stafford Act allocations. 
(7) STATE AND TRIBAL ASSISTANCE GRANTS OF 
THE
ENVIRONMENTAL
PROTECTION
AGENCY.—For 
State and Tribal Assistance Grants, $8,000,000,000 
shall be provided in each of fiscal years 2013 and 
2014 and $4,000,000,000 in each of fiscal years 
2015 through fiscal year 2022 to be allocated as 
grants under section 1452 of the Safe Drinking 
Water Act. The funds appropriated by this para-
graph shall not be subject to the matching or cost 
share requirements of sections 602(b)(2), 602(b)(3) 
or 202 of the Federal Water Pollution Control Act 
nor the matching requirements of section 1452(e) of 
the Safe Drinking Water Act. 
(8) SUPPLEMENTAL
DISCRETIONARY
GRANTS 
FOR A NATIONAL SURFACE TRANSPORTATION SYS-
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TEM OF THE DEPARTMENT OF TRANSPORTATION.— 
For an additional amount for capital investments in 
surface 
transportation 
infrastructure, 
$1,500,000,000 in each of fiscal years 2013 and 
2014 and $750,000,000 in each of fiscal years 2015 
through fiscal year 2021 to be awarded by the Sec-
retary of Transportation to State and local govern-
ments or transit agencies on a competitive basis for 
projects that will have a significant impact on the 
United States, a metropolitan area, or a region: Pro-
vided further, That projects eligible for funding pro-
vided under this heading shall include highway or 
bridge projects eligible under title 23, United States 
Code, including interstate rehabilitation, improve-
ments to the rural collector road system, the recon-
struction of overpasses and interchanges, bridge re-
placements, seismic retrofit projects for bridges, and 
road realignments; public transportation projects eli-
gible under chapter 53 of title 49, United States 
Code, including investments in projects participating 
in the New Starts or Small Starts programs that 
will expedite the completion of those projects and 
their entry into revenue service; passenger and 
freight rail transportation projects; and port infra-
structure investments, including projects that con-
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nect ports to other modes of transportation and im-
prove the efficiency of freight movement. Not more 
than 20 percent of the funds made available under 
this paragraph may be awarded to projects in a sin-
gle State. 
(9) FEDERAL
AVIATION
ADMINISTRATION.— 
$300,000,000 for necessary investments in Federal 
Aviation Administration to make improvements to 
power systems, air route traffic control centers, air 
traffic control towers, terminal radar approach con-
trol facilities, and navigation and landing equipment 
in each of fiscal years 2013 and 2014 and 
$150,000,000 in each of fiscal years 2015 through 
fiscal year 2021. 
(10) 
GRANTS-IN-AID
FOR
AIRPORTS.— 
$600,000,000 for ‘‘Grants-In-Aid for Airports’’ to 
make grants for discretionary projects as authorized 
by subchapter 1 of chapter 471 and subchapter 1 of 
chapter 475 of title 49, United States Code, and for 
the procurement, installation and commissioning of 
runway incursion prevention devices and systems at 
airports in each of fiscal years 2013 and 2014 and 
$300,000,000 in each of fiscal years 2015 through 
fiscal year 2021. 
(11) FEDERAL HIGHWAY ADMINISTRATION.— 
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(A) HIGHWAY
INFRASTRUCTURE
INVEST-
MENT.—$24,000,000,000 in each of fiscal years 
2013 and 2014 and $12,000,000,000 in each of 
fiscal years 2015 through fiscal year 2021 to be 
allocated to the States in proportion to the allo-
cations provided for programs under the admin-
istration of the Federal Highway Administra-
tion under SAFTEA–LU. 
(B) 
CAPITAL
ASSISTANCE
FOR
HIGH 
SPEED RAIL CORRIDORS AND INTERCITY PAS-
SENGER
RAIL
SERVICE.—For an additional 
amount for section 501 of Public Law 110–432 
and discretionary grants to States to pay for 
the cost of projects described in paragraphs 
(2)(A) and (2)(B) of section 24401 of title 49, 
United States Code, subsection (b) of section 
24105 of such title, $2,000,000,000 in each of 
fiscal years 2013 through fiscal year 2021. Not 
less than 80 percent of these funds shall be al-
located to the Federal Railroad Administration 
for projects that are expected to achieve 125 
miles per hour on not less than 50 percent of 
the route. 
(12) TRANSIT
CAPITAL
ASSISTANCE
OF
THE 
FEDERAL
TRANSIT
ADMINISTRATION.—For transit 
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capital grants under the allocations provided for 
under SAFTEA–LU and its extensions by both for-
mula and competitively, $3,000,000,000 in each of 
fiscal years 2013 and 2014 and $1,500,000,000 in 
each of fiscal years 2015 through fiscal year 2021. 
Not less than one-third of these funds shall be allo-
cated under the discretionary bus program. 
(13) COMMUNITY DEVELOPMENT FUND OF THE 
COMMUNITY PLANNING AND DEVELOPMENT ADMIN-
ISTRATION.—For an additional amount for ‘‘Com-
munity Development Fund’’, $2,000,000,000 in each 
of fiscal years 2013 and 2014 and $1,000,000,000 
in each of fiscal years 2015 through fiscal year 2021 
to carry out the community development block grant 
program under title I of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 5301 et 
seq.): Provided, That the amount appropriated in 
this paragraph shall be distributed pursuant to 42 
U.S.C. 5306 to grantees that received funding in fis-
cal year 2012. These funds shall be used for capital 
projects. 
(b) SUPPLEMENT NOT SUPPLANT.— 
(1) IN GENERAL.—An entity shall use Federal 
funds made available under this section only to sup-
plement the amount of funds that would, in the ab-
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sence of such Federal funds, be made available from 
non-Federal sources for the activities involved. 
(2) MAINTENANCE
OF
EFFORT.—An entity 
shall ensure that for each fiscal year in which the 
entity receives Federal funds under this section, the 
entity will maintain existing non-Federal support for 
the activities for which such funds are provided at 
not less than the level of such support for the fiscal 
year preceding the year for which the funds are 
being provided. 
(c) GENERAL PROVISION.—Each entity that receives 
assistance with amounts made available under this section 
shall ensure that, if such entity carries out modernization, 
renovation, and repair through a contract, any such con-
tract process ensures the maximum number of qualified 
bidders, including small, minority, and women-owned busi-
nesses, through full and open competition. 
Subtitle B—Rebuilding America’s 
Manufacturing Power 
SEC. 111. NATIONAL MANUFACTURING STRATEGY. 
(a) STRATEGY REQUIRED.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the 
President shall develop a comprehensive national 
manufacturing strategy. 
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(2) BIENNIAL REVISIONS.—Not less frequently 
than once every 2 years after the date on which the 
President completes the strategy required by para-
graph (1), the President shall revise such strategy. 
(b) GOALS OF STRATEGY.—The President shall in-
clude in the national manufacturing strategy required by 
subsection (a) short- and long-term goals for United 
States manufacturing, including goals— 
(1) to increase the aggregate number of manu-
facturing jobs in the United States so that such 
number is not less than 20 percent of the sum of all 
nonfarm jobs in the United States; 
(2) 
to 
identify 
emerging 
technologies 
to 
strengthen the competitiveness of United States 
manufacturing in the global marketplace; and 
(3) to strengthen the manufacturing sectors of 
the United States in which the United States is 
most competitive in the global economy. 
(c) INFORMATION REQUIRED.—The national manu-
facturing strategy required by subsection (a) shall include 
the following: 
(1) A survey of all persons with headquarters in 
the United States that maintain manufacturing fa-
cilities outside of the United States to identify— 
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(A) the categories of products manufac-
tured at such facilities; and 
(B) the number of manufacturing jobs lo-
cated at such facilities. 
(2) A survey of all Federal agencies that pro-
vide assistance to United States manufacturers, in-
cluding the following: 
(A) The Department of Commerce. 
(B) The Department of Defense. 
(C) The Department of Energy. 
(D) The Department of Labor. 
(E) The Department of the Treasury. 
(F) The Small Business Administration. 
(G) The Office of Management and Budg-
et. 
(H) The Office of Science and Technology 
Policy. 
(I) The Office of the United States Trade 
Representative. 
(J) The National Science Foundation. 
(K) Such other Federal agencies as the 
President considers appropriate. 
(3) A survey of manufacturing goods produced 
in the United States and where such goods are pro-
duced. 
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(4) The number of people in the United States 
employed by manufacturers operating in the United 
States. 
(5) An evaluation of the global competitiveness 
of United States manufacturing, including the fol-
lowing: 
(A) A comparison of the manufacturing 
policies and strategies of the United States with 
the policies and strategies of other counties, in-
cluding the countries that are the top 5 trading 
partners of the United States. 
(B) A comparison of the productivity of 
each sector of the manufacturing industry in 
the United States with comparable sectors of 
manufacturing industries in other countries. 
(d) RECOMMENDATIONS.—The President shall in-
clude in the national manufacturing strategy required by 
subsection (a) recommendations for achieving the goals in-
cluded in the strategy pursuant to subsection (b). Such 
recommendations may include proposals as follows: 
(1) Actions to be taken by the President, Con-
gress, State, local, and territorial governments, the 
private sector, universities, industry associations, 
and other stakeholders. 
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(2) Ways to improve Government policies, co-
ordination among entities developing such policies, 
and Government interaction with the manufacturing 
sector, including interagency communications re-
garding the effects of proposed or active Government 
regulations or other executive actions on the United 
States manufacturing sector and its workforce. 
(3) How each Federal agency surveyed under 
subsection (c)(2) can best support the national man-
ufacturing strategy required by subsection (a). 
(4) Adoption of strategies that have been imple-
mented by other countries and proven successful. 
(e) SUBMITTAL OF STRATEGY.—Not later than 180 
days after the date of the enactment of this Act and each 
time the President revises under paragraph (2) of sub-
section (a) the strategy required by paragraph (1) of such 
subsection, the President shall submit to Congress such 
strategy. 
SEC. 112. SECTORAL TECHNOLOGY AND INNOVATION CEN-
TERS. 
The National Institute of Standards and Technology 
Act (15 U.S.C. 271 et seq.) is amended by inserting after 
section 26 (15 U.S.C. 271l) the following: 
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‘‘SEC. 27. SECTORAL TECHNOLOGY AND INNOVATION CEN-
TERS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE ENTITIES.—The term ‘eligible 
entities’ means a consortia that— 
‘‘(A) is comprised of representatives from 
various organizations, such as State and local 
governments, institutions of higher education, 
nonprofit organization, and businesses; 
‘‘(B) has an expertise in either a specific 
area of technology or a specific aspect of the 
manufacturing process; and 
‘‘(C) has a capacity to serve small- or me-
dium-sized manufacturers across the United 
States. 
‘‘(2) INDUSTRY CLUSTER.—The term ‘industry 
cluster’ means a geographic concentration of inter-
connected companies, specialized suppliers, service 
providers, and associated institutions in a particular 
industry sector. 
‘‘(3) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ has the 
meaning given the term in section 102 of the Higher 
Education Act of 1965 (20 U.S.C. 1002). 
‘‘(4) SMALL- 
OR
MEDIUM-SIZED
MANUFAC-
TURER.—The term ‘small- or medium-sized manu-
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facturer’ means a manufacturer that is a small busi-
ness concern (as such term is defined in section 3 
of the Small Business Act (15 U.S.C. 632)). 
‘‘(b) GRANTS AUTHORIZED.— 
‘‘(1) IN GENERAL.—The Secretary may award 
grants to eligible entities to establish sectoral tech-
nology and innovation centers— 
‘‘(A) to improve the capacity of small- or 
medium-sized manufacturers to innovate; 
‘‘(B) to provide assistance to small- or me-
dium-sized 
manufacturers 
with 
early-stage 
product development; 
‘‘(C) to help small- or medium-sized manu-
facturers improve the speed with which they 
commercialize new products, processes, and 
technologies; 
‘‘(D) to help small- or medium-sized manu-
facturers reduce costs by improving efficiencies 
in the manufacturing process, including through 
reduced energy use and environmental waste; 
‘‘(E) to link small- or medium-sized manu-
facturers with cutting edge research and tech-
nologies developed by employees of institutions 
of higher education or other institutions that 
conduct scientific research; and 
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‘‘(F) to facilitate the sharing of informa-
tion and best practices relating to manufac-
turing and product development among the fol-
lowing: 
‘‘(i) Small- or medium-sized manufac-
turers. 
‘‘(ii) Federal and State agencies that 
provide assistance to small- or medium- 
sized manufacturers. 
‘‘(iii) Nongovernmental organizations 
that provide assistance to small- or me-
dium-sized manufacturers. 
‘‘(iv) Institutions of higher education. 
‘‘(2) MINIMUM NUMBER OF SECTORAL TECH-
NOLOGY AND INNOVATION CENTERS.—In awarding 
grants under paragraph (1), the Secretary shall en-
sure that not fewer than 25 sectoral technology and 
innovation centers are established under this section 
before the date that is 2 years after the date of the 
enactment of this section. 
‘‘(c) USE OF FUNDS.— 
‘‘(1) IN GENERAL.—Grants awarded pursuant 
to subsection (b)(1) shall be used to establish a sec-
toral technology and innovation center that offers a 
range of services for the purposes described in para-
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graphs (1) through (6) of such subsection, including 
services relating to the following: 
‘‘(A) Applied research and development. 
‘‘(B) Proof-of-concept development and 
prototyping. 
‘‘(C) Manufacturing process development 
and efficiency enhancements. 
‘‘(D) Other technical business matters. 
‘‘(2) FOCUS.—Each technology innovation cen-
ter established with a grant awarded under sub-
section (b)(1) shall be established with a focus on a 
specific technology area or specific aspect of the 
manufacturing process corresponding with— 
‘‘(A) the expertise of the eligible entity es-
tablishing the center; and 
‘‘(B) the needs of an industry cluster lo-
cated in geographic proximity to the center. 
‘‘(3) CHANGE
IN
SERVICES
PROVIDED.—The 
Secretary may allow a recipient of a grant under 
subsection (b)(1) to modify the range of services of-
fered by the recipient’s technology innovation center 
under paragraph (1) of this subsection. 
‘‘(4) AFFILIATION
WITH
INSTITUTIONS
OF 
HIGHER
EDUCATION
AND
NATIONAL
LABORA-
TORIES.—Services offered by a technology innova-
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tion center under paragraph (1) shall be offered in 
affiliation with an institution of higher education or 
a national laboratory. 
‘‘(d) APPLICATION FOR GRANTS.— 
‘‘(1) IN GENERAL.—An eligible entity seeking a 
grant under subsection (b)(1) shall submit to the 
Secretary an application therefor in such form and 
in such manner as the Secretary considers appro-
priate. 
‘‘(2) PROCESS REQUIRED.—The Secretary shall 
establish a standardized application process for pur-
poses of awarding grants under subsection (b)(1). 
‘‘(3) SOLICITATION
OF
APPLICATIONS.—The 
Secretary shall solicit applications for grants under 
subsection (b) from eligible entities. 
‘‘(e) SELECTION OF GRANT RECIPIENTS.— 
‘‘(1) COMPETITIVE
BASIS.—Grants awarded 
under subsection (b)(1) shall be awarded on a com-
petitive basis. 
‘‘(2) PREFERENCES.—In selecting grant recipi-
ents, the Secretary shall give preference to an eligi-
ble entity that— 
‘‘(A) has an expertise in a specific tech-
nology area or manufacturing process that is 
needed by an industry cluster; 
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‘‘(B) agrees to establish a technology inno-
vation center in the geographical area of such 
industry cluster; 
‘‘(C) represents a broad range of stake-
holders; and 
‘‘(D) can demonstrate that the non-Fed-
eral contributions for the operation of the tech-
nology innovation center will be significant. 
‘‘(3) CONSULTATION.—In selecting grant recipi-
ents, the Secretary shall consult with the Secretary 
of Agriculture, the Secretary of Defense, the Sec-
retary of Energy, the Secretary of Labor, the Assist-
ant Secretary for Economic Development, the Na-
tional Science Foundation, the Office of Innovation 
and Entrepreneurship, and such other Federal agen-
cies as may be appropriate to determine whether ap-
plicants have sufficient expertise to establish a tech-
nology innovation center as described in paragraphs 
(1) and (2) of subsection (c). 
‘‘(f) FEDERAL SHARE.—An eligible entity that re-
ceives a grant under subsection (b)(1) shall provide such 
non-Federal contributions for the operation of the sectoral 
technology and innovation center established with such 
grant as the Secretary considers appropriate. 
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‘‘(g) USER FEES.—An eligible entity that establishes 
a technology innovation center with a grant awarded 
under subsection (b)(1) may establish user fees to be paid 
by recipients of services provided by the center to meet 
the operating costs of the center or for purposes of pro-
viding non-Federal contributions as required by subsection 
(f). 
‘‘(h) FUNDING.—There shall be made available from 
the Rebuild America Trust Fund under section 9512 of 
the Internal Revenue Code of 1986, the following amount 
to carry out this section: 
‘‘(1) $1,000,000,000 for fiscal year 2013. 
‘‘(2) $2,500,000,000 for fiscal year 2014. 
‘‘(3) $2,500,000,000 for fiscal year 2015. 
‘‘(4) $1,000,000,000 for each of fiscal years 
2016 through 2022.’’. 
SEC. 113. CAPITAL FOR SMALL MANUFACTURERS WITH 
FIRM ORDERS. 
(a) IN GENERAL.—Section 7(a) of the Small Busi-
ness Act (15 U.S.C. 636(a)) is amended by adding at the 
end the following: 
‘‘(36) CAPITAL
FOR
SMALL
MANUFACTURERS 
WITH FIRM ORDERS.— 
‘‘(A) DEFINITIONS.—In this paragraph— 
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‘‘(i) the term ‘firm order’ means an 
order for goods placed by a person that the 
Administrator determines is— 
‘‘(I) required by law or contract 
to pay for the goods upon receipt of 
the goods; and 
‘‘(II) likely to make the payment 
described in subclause (I); and 
‘‘(ii) the term ‘manufacturer’ means a 
small business concern the primary busi-
ness of which is classified in sector 31, 32, 
or 33 of the North American Industrial 
Classification System. 
‘‘(B) IN
GENERAL.—The Administrator 
may guarantee a loan under this subsection to 
a manufacturer, to provide capital for the pro-
duction of goods for a firm order, if the Admin-
istrator determines that the manufacturer will 
be able to produce the goods using the capital. 
‘‘(C) AMOUNT.—A loan guaranteed under 
this paragraph shall be in an amount that is 
not more than $10,000,000. 
‘‘(D) GUARANTEE PERCENTAGE.—The Ad-
ministrator may guarantee not more than 95 
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percent of the amount of a loan under this 
paragraph.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
Section 1133(b) of the Small Business Jobs Act of 2010 
(15 U.S.C. 636 note) is amended— 
(1) in paragraph (1), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (2), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(3) by redesignating paragraph (36), as added 
by section 113 of the Rebuild America Act, as para-
graph (35).’’. 
SEC. 114. MANUFACTURING EXTENSION PARTNERSHIP. 
(a) IN GENERAL.—There shall be made available 
from the Rebuild America Trust Fund under section 9512 
of the Internal Revenue Code of 1986, $130,000,000 for 
each of fiscal years 2013 through 2022 for the Hollings 
Manufacturing Extension Partnership of the National In-
stitute of Standards and Technology. 
(b) ADJUSTMENTS FOR INFLATION.—For fiscal year 
2014 and each fiscal year thereafter, the amount specified 
in subsection (a) shall be adjusted to reflect the percent-
age (if any) of the increase or decrease (as the case may 
be) in the average of the Consumer Price Index for the 
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12-month period ending on the April 30 preceding the be-
ginning of the fiscal year compared to the average of the 
Consumer Price Index for the 12-month period ending 
April 30, 2012. 
SEC. 115. EXTENSION OF RESEARCH CREDIT; INCREASE IN 
ALTERNATIVE SIMPLIFIED RESEARCH CRED-
IT. 
(a) EXTENSION OF CREDIT.— 
(1) IN GENERAL.—Subparagraph (B) of section 
41(h)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘December 31, 2011’’ and in-
serting ‘‘December 31, 2016’’. 
(2) CONFORMING AMENDMENT.—Subparagraph 
(D) of section 45C(b)(1) of such Code is amended 
by striking ‘‘December 31, 2011’’ and inserting 
‘‘December 31, 2016’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to amounts paid or in-
curred after December 31, 2011. 
(b) ALTERNATIVE SIMPLIFIED RESEARCH CREDIT 
INCREASED.— 
(1) INCREASED CREDIT.—Subparagraph (A) of 
section 41(c)(5) of the Internal Revenue Code of 
1986 is amended to read as follows: 
‘‘(A) DETERMINATION OF CREDIT.— 
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‘‘(i) IN GENERAL.—At the election of 
the taxpayer, the credit determined under 
subsection (a)(1) shall be equal to the ap-
plicable percentage of so much of the 
qualified research expenses for the taxable 
year as exceeds 50 percent of the average 
qualified research expenses for the 3 tax-
able years preceding the taxable year for 
which the credit is being determined. 
‘‘(ii) APPLICABLE PERCENTAGE.—For 
purposes of clause (i), the applicable per-
centage for any taxable year is equal to— 
‘‘(I) 14 percent, increased by 
‘‘(II) 1 percentage point (not to 
exceed 6 percentage points) for each 2 
percent increase in the taxpayer’s 
qualified 
manufacturing 
full-time 
equivalent employees during the 5-tax-
able-year period ending immediately 
before such taxable year. 
‘‘(iii) LIMITATION.—The increase in 
the amount of the credit determined under 
subsection (a)(1) by reason of the applica-
tion of clause (ii)(II) shall not exceed the 
product of— 
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‘‘(I) $5,000, multiplied by 
‘‘(II) the number of qualified 
manufacturing 
full-time 
equivalent 
employees taken into account for pur-
poses of determining the increase de-
scribed in clause (ii)(II). 
‘‘(iv) 
QUALIFIED
MANUFACTURING 
FULL-TIME
EQUIVALENT
EMPLOYEES.— 
For purposes of this subparagraph, the 
term ‘qualified manufacturing full-time 
equivalent 
employees’ 
means 
full-time 
equivalent employees (as defined in section 
45R(d)(2)) who provide the taxpayer man-
ufacturing services in the United States. 
‘‘(v) EMPLOYEES
EXCLUDED
FOR 
CHANGES IN OWNERSHIP OF TRADES OR 
BUSINESSES.—In determining the number 
of qualified manufacturing full-time equiv-
alent employees for any 5-taxable-year pe-
riod referred to in clause (ii)(II), the tax-
payer shall not take into account— 
‘‘(I) any individual who was an 
employee, on the date of acquisition, 
of any trade or business acquired by 
the taxpayer during such period, and 
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‘‘(II) any individual who was an 
employee of any trade or business dis-
posed of by the taxpayer during such 
period. 
‘‘(vi) MANUFACTURING
SERVICES.— 
For purposes of this subparagraph, the 
term ‘manufacturing services’ means quali-
fied production activities within the mean-
ing of section 199(c) other than the extrac-
tion of fossil fuels or minerals, agricultural 
production, activities described in section 
199(b)(2)(D), or activities described in 
199(c)(4)(B).’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
41(c)(5)(B)(ii) of such Code is amended by striking 
‘‘6 percent’’ and inserting ‘‘one-half of the applicable 
percentage’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning after December 31, 2016. 
(c) TECHNICAL CORRECTIONS.— 
(1) IN GENERAL.—Section 409 of the Internal 
Revenue Code of 1986 is amended— 
(A) by inserting ‘‘, as in effect before the 
enactment of the Tax Reform Act of 1984)’’ 
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after 
‘‘section 
41(c)(1)(B)’’ 
in 
subsection 
(b)(1)(A), 
(B) by inserting ‘‘, as in effect before the 
enactment of the Tax Reform Act of 1984’’ 
after ‘‘relating to the employee stock ownership 
credit’’ in subsection (b)(4), 
(C) by inserting ‘‘(as in effect before the 
enactment of the Tax Reform Act of 1984)’’ 
after 
‘‘section 
41(c)(1)(B)’’ 
in 
subsection 
(i)(1)(A), 
(D) by inserting ‘‘(as in effect before the 
enactment of the Tax Reform Act of 1984)’’ 
after ‘‘section 41(c)(1)(B)’’ in subsection (m), 
(E) by inserting ‘‘(as so in effect)’’ after 
‘‘section 48(n)(1)’’ in subsection (m), 
(F) by inserting ‘‘(as in effect before the 
enactment of the Tax Reform Act of 1984)’’ 
after ‘‘section 48(n)’’ in subsection (q)(1), and 
(G) by inserting ‘‘(as in effect before the 
enactment of the Tax Reform Act of 1984)’’ 
after ‘‘section 41’’ in subsection (q)(3). 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect on the date of the 
enactment of this Act. 
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SEC. 116. INCLUSION OF CERTAIN PROVISIONS IN TRADE 
AGREEMENTS. 
(a) DEFINITIONS.—In this section: 
(1) CORE
LABOR
RIGHTS.—The term ‘‘core 
labor rights’’ means the core labor rights as stated 
in the International Labour Organization conven-
tions dealing with— 
(A) freedom of association and the effec-
tive recognition of the right to collective bar-
gaining; 
(B) the elimination of all forms of forced 
or compulsory labor; 
(C) the effective abolition of child labor; 
and 
(D) the elimination of discrimination with 
respect to employment and occupation. 
(2) MULTILATERAL
ENVIRONMENTAL
AGREE-
MENT.—The 
term 
‘‘multilateral 
environmental 
agreement’’ means any international agreement or 
provision thereof to which the United States is a 
party and that is intended to protect, or has the ef-
fect of protecting, the environment or human health. 
(b) LIMITATION ON CONSIDERATION OF BILLS IM-
PLEMENTING
TRADE
AGREEMENTS.—Notwithstanding 
section 151 of the Trade Act of 1974 (19 U.S.C. 2191) 
or any other provision of law, any bill implementing a 
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trade agreement between the United States and another 
country that is introduced in Congress after the date of 
the enactment of this Act shall be subject to a point of 
order pursuant to subsection (d) unless the trade agree-
ment meets the requirements described in subsection (c). 
(c) REQUIREMENTS.—Each trade agreement between 
the United States and another country with respect to 
which an implementing bill is introduced on or after the 
date of the enactment of this Act shall meet the following 
requirements: 
(1) LABOR STANDARDS.—The labor provisions 
of the agreement shall— 
(A) be included in the core text of the 
agreement; 
(B) require each country that is a party to 
the agreement— 
(i) to adopt and maintain laws and 
regulations (including laws applicable to 
any designated zone in the country) that 
establish core labor rights; and 
(ii) to effectively enforce laws relating 
to core labor rights and laws relating to 
acceptable conditions of work (including 
laws relating to minimum wages, hours of 
work, and occupational safety and health); 
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(C) prohibit a country that is a party to 
the agreement from waiving or otherwise dero-
gating from, or offering to waive or otherwise 
derogate from, the country’s laws and regula-
tions relating to the core labor rights and ac-
ceptable conditions of work described in sub-
paragraph (B); 
(D) provide that failures to meet the labor 
requirements of the agreement, regardless of 
the effect that failure has on trade, shall be 
subject to the dispute resolution and enforce-
ment mechanisms and penalties of the agree-
ment; 
(E) provide that enforcement mechanisms 
and penalties for failures described in subpara-
graph (D) are included in the core text of the 
agreement and are at least as effective as the 
mechanisms and penalties that apply to the 
commercial provisions of the agreement; and 
(F) strengthen the capacity of each coun-
try that is a party to the agreement to promote, 
protect, and enforce core labor rights. 
(2) ENVIRONMENTAL
AND
PUBLIC
SAFETY 
STANDARDS.—The environmental provisions of the 
agreement shall— 
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(A) be included in the text of the agree-
ment; 
(B) prohibit each country that is a party 
to the agreement from weakening, eliminating, 
or failing to enforce domestic environmental or 
other public interest standards to promote trade 
or attract investment; 
(C) require each such country to imple-
ment and enforce fully and effectively the coun-
try’s obligations under multilateral environ-
mental agreements and provide for the enforce-
ment of such obligations under the agreement; 
(D) prohibit the trade of products that are 
illegally harvested or extracted and the trade of 
goods derived from illegally harvested or ex-
tracted natural resources, including timber and 
timber products, fish, wildlife, and associated 
products, mineral resources, or other environ-
mentally sensitive goods; 
(E) provide that the failure to meet the en-
vironmental standards required by the agree-
ment be subject to dispute resolution and en-
forcement mechanisms and penalties that are at 
least as effective as the mechanisms and pen-
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alties that apply to the commercial provisions of 
the agreement; and 
(F) allow each country that is a party to 
the agreement to adopt and implement environ-
mental, health, and safety standards, recog-
nizing the legitimate right of governments to 
protect the environment and public health and 
safety. 
(3) INVESTMENT
PROVISIONS.—If the agree-
ment contains provisions relating to investment, 
such provisions shall— 
(A) ensure that foreign investors operating 
in the United States are not afforded greater 
procedural or substantive rights under the trade 
agreement than those afforded to domestic in-
vestors under the Constitution and laws of the 
United States; 
(B) include strong and enforceable commit-
ments that an entity owned or controlled by a 
foreign government that invests in operations in 
the United States— 
(i) will make such investments and 
will conduct such operations on a commer-
cial basis only; and 
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(ii) will not receive benefits, such as 
financing, at below market rates, or com-
ponents or materials at below market 
prices, from the foreign government for 
such operations; and 
(C) define the standard of minimum treat-
ment to provide that foreign investors do not 
have greater legal rights than United States 
citizens possess under the due process clause of 
section 1 of the 14th Amendment to the Con-
stitution. 
(d) POINT OF ORDER IN SENATE.—The Senate shall 
cease consideration of a bill to implement a trade agree-
ment introduced on or after the date of enactment of this 
Act if— 
(1) a point of order is made by any Senator 
against the bill based on the noncompliance of the 
trade agreement with the requirements of subsection 
(c); and 
(2) the point of order is sustained by the Pre-
siding Officer. 
(e) WAIVERS AND APPEALS.— 
(1) WAIVERS.—Before the Presiding Officer 
rules on a point of order described in subsection (d), 
any Senator may move to waive the point of order 
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and the motion to waive shall not be subject to 
amendment. A point of order described in subsection 
(d) is waived only by the affirmative vote of 60 
Members of the Senate, duly chosen and sworn. 
(2) APPEALS.—After the Presiding Officer 
rules on a point of order described in subsection (d), 
any Senator may appeal the ruling of the Presiding 
Officer on the point of order as it applies to some 
or all of the provisions on which the Presiding Offi-
cer ruled. A ruling of the Presiding Officer on a 
point of order described in subsection (d) is sus-
tained unless 60 Members of the Senate, duly cho-
sen and sworn, vote not to sustain the ruling. 
(3) DEBATE.—Debate on the motion to waive 
under paragraph (1) or on an appeal of the ruling 
of the Presiding Officer under paragraph (2) shall 
be limited to 1 hour. The time shall be equally di-
vided between, and controlled by, the majority leader 
and the minority leader of the Senate, or their des-
ignees. 
SEC. 117. FUNDING FOR INTERAGENCY TRADE ENFORCE-
MENT CENTER. 
(a) IN GENERAL.—There shall be made available 
from the Rebuild America Trust Fund under section 9512 
of the Internal Revenue Code of 1986, the following 
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amounts for the Interagency Trade Enforcement Center 
established by Executive Order of February 28, 2012, en-
titled ‘‘Establishment of the Interagency Trade Enforce-
ment Center’’: 
(1) For fiscal year 2013, $26,000,000. 
(2) For fiscal year 2014 and each fiscal year 
thereafter, the amount specified in paragraph (1), as 
adjusted to reflect the percentage (if any) of the in-
crease or decrease (as the case may be) in the aver-
age of the Consumer Price Index for the 12-month 
period ending on the April 30 preceding the begin-
ning of the fiscal year compared to the average of 
the Consumer Price Index for the 12-month period 
ending April 30, 2012. 
(b) CONSUMER PRICE INDEX DEFINED.—In this sec-
tion, the term ‘‘Consumer Price Index’’ means the Con-
sumer Price Index for All Urban Consumers published by 
the Bureau of Labor Statistics of the Department of 
Labor. 
SEC. 118. IMPOSITION OF COUNTERVAILING DUTIES FOR 
SUBSIDIES RELATING TO FUNDAMENTALLY 
UNDERVALUED CURRENCIES. 
(a) BENEFIT CONFERRED.—Section 771(5)(E) of 
the Tariff Act of 1930 (19 U.S.C. 1677(5)(E)) is amend-
ed— 
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(1) in clause (iii), by striking ‘‘and’’ at the end; 
(2) in clause (iv), by striking the period at the 
end and inserting ‘‘, and’’; and 
(3) by inserting after clause (iv) the following 
new clause: 
‘‘(v) in the case in which the currency 
of a country in which the subject merchan-
dise is produced is exchanged for foreign 
currency obtained from export trans-
actions, and the currency of such country 
is a fundamentally undervalued currency, 
as defined in paragraph (37), if there is a 
difference between the amount of the cur-
rency of such country provided and the 
amount of the currency of such country 
that would have been provided if the real 
effective exchange rate of the currency of 
such country were not undervalued, as de-
termined pursuant to paragraph (38).’’. 
(b) EXPORT SUBSIDY.—Section 771(5A)(B) of the 
Tariff Act of 1930 (19 U.S.C. 1677(5A)(B)) is amended 
by adding at the end the following new sentence: ‘‘In the 
case of a subsidy relating to a fundamentally undervalued 
currency, the fact that the subsidy may also be provided 
in circumstances not involving export shall not, for that 
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reason alone, mean that the subsidy cannot be considered 
contingent upon export performance.’’. 
(c) DEFINITION
OF
FUNDAMENTALLY
UNDER-
VALUED CURRENCY.—Section 771 of the Tariff Act of 
1930 (19 U.S.C. 1677) is amended by adding at the end 
the following new paragraph: 
‘‘(37) FUNDAMENTALLY
UNDERVALUED
CUR-
RENCY.—The administering authority shall deter-
mine that the currency of a country in which the 
subject merchandise is produced is a ‘fundamentally 
undervalued currency’ if— 
‘‘(A) the government of the country (in-
cluding any public entity within the territory of 
the country) engages in protracted, large-scale 
intervention in one or more foreign exchange 
markets during part or all of the 18-month pe-
riod that represents the most recent 18 months 
for which the information required under para-
graph (38) is reasonably available, but that 
does not include any period of time later than 
the final month in the period of investigation or 
the period of review, as applicable; 
‘‘(B) the real effective exchange rate of the 
currency is undervalued by at least 5 percent, 
on average and as calculated under paragraph 
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(38), relative to the equilibrium real effective 
exchange rate for the country’s currency during 
the 18-month period; 
‘‘(C) during the 18-month period, the 
country has experienced significant and per-
sistent global current account surpluses; and 
‘‘(D) during the 18-month period, the for-
eign asset reserves held by the government of 
the country exceed— 
‘‘(i) the amount necessary to repay all 
debt obligations of the government falling 
due within the coming 12 months; 
‘‘(ii) 20 percent of the country’s 
money supply, using standard measures of 
M2; and 
‘‘(iii) the value of the country’s im-
ports during the previous 4 months.’’. 
(d) DEFINITION OF REAL EFFECTIVE EXCHANGE 
RATE UNDERVALUATION.—Section 771 of the Tariff Act 
of 1930 (19 U.S.C. 1677), as amended by subsection (c) 
of this section, is further amended by adding at the end 
the following new paragraph: 
‘‘(38) REAL
EFFECTIVE
EXCHANGE
RATE 
UNDERVALUATION.—The calculation of real effective 
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exchange rate undervaluation, for purposes of para-
graph (5)(E)(v) and paragraph (37), shall— 
‘‘(A)(i) rely upon, and where appropriate 
be the simple average of, the results yielded 
from application of the approaches described in 
the guidelines of the International Monetary 
Fund’s Consultative Group on Exchange Rate 
Issues; or 
‘‘(ii) if the guidelines of the International 
Monetary Fund’s Consultative Group on Ex-
change Rate Issues are not available, be based 
on generally accepted economic and econometric 
techniques and methodologies to measure the 
level of undervaluation; 
‘‘(B) rely upon data that are publicly avail-
able, reliable, and compiled and maintained by 
the International Monetary Fund or, if the 
International Monetary Fund cannot provide 
the data, by other international organizations or 
by national governments; and 
‘‘(C) use inflation-adjusted, trade-weighted 
exchange rates.’’. 
(e) APPLICATION
TO GOODS FROM CANADA
AND 
MEXICO.—Pursuant to article 1902 of the North Amer-
ican Free Trade Agreement and section 408 of the North 
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American Free Trade Agreement Implementation Act of 
1993 (19 U.S.C. 3438), the amendments made by this sec-
tion shall apply to goods from Canada and Mexico. 
Subtitle C—Preparing Americans 
for the Jobs of the Future 
SEC. 121. SHORT TITLE. 
This subtitle may be cited as the ‘‘Regional Partner-
ships for High-Quality Jobs Act’’. 
SEC. 122. DEFINITIONS. 
In this subtitle: 
(1) CAREER AND TECHNICAL EDUCATION SYS-
TEM.—The term ‘‘career and technical education 
system’’ means, with respect to a State, the eligible 
agency (as defined in section 3 of the Carl D. Per-
kins Career and Technical Education Act of 2006 
(20 U.S.C. 2302)) for the State, and the eligible re-
cipients (as so defined) in the State that receive 
funds under section 131 or 132 of such Act (20 
U.S.C. 2351, 2352). 
(2) CAREER PATHWAY.— 
(A) IN GENERAL.—The term ‘‘career path-
way’’ means a set of rigorous, engaging, and 
high-quality education, occupational training, 
and other services to prepare individuals to 
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meet a set of career-related objectives as ref-
erenced in subparagraph (C). 
(B) SERVICES.—The services referred to in 
subparagraph (A) shall be— 
(i) aligned with the skill needs of in-
dustries in the economy of the service area 
involved; and 
(ii) designed to increase an individ-
ual’s educational and skill attainment, and 
improve the individual’s employment out-
comes and ability to meet career-related 
objectives, by— 
(I) preparing individuals for the 
full range of secondary or postsec-
ondary education options, including 
apprenticeships registered under the 
Act of August 16, 1937 (commonly 
known as the ‘‘National Apprentice-
ship Act’’; 50 Stat. 664, chapter 663; 
29 U.S.C. 50 et seq.) (referred to in-
dividually in this subtitle as an ‘‘ap-
prenticeship’’); 
(II) including counseling and 
support services to help individuals 
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achieve their education and career 
goals; 
(III) including, as appropriate for 
an individual, education offered con-
currently with and in the same con-
text as workforce preparation activi-
ties and training for a specific occupa-
tion or occupational cluster; and 
(IV) organizing education, occu-
pational training, and other services 
to meet the particular needs of the in-
dividual in a manner that accelerates 
the educational and career advance-
ment of the individual to the extent 
practicable. 
(C) OBJECTIVES.—The objectives referred 
to in subparagraph (A) include— 
(i) enabling a worker to attain a sec-
ondary school diploma or its recognized 
equivalent, and at least 1 recognized post-
secondary credential; and 
(ii) helping a worker enter or advance 
within a specific occupation or occupational 
cluster. 
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(3) COMMUNITY COLLEGE.—The term ‘‘commu-
nity college’’ has the same meaning as the term 
‘‘junior or community college’’, as defined in section 
312(f) of the Higher Education Act of 1965 (20 
U.S.C. 1058(f)). 
(4) EDUCATION TERMS.—The term ‘‘adult edu-
cation’’ has the meaning given the term in section 
203 of the Adult Education and Family Literacy Act 
(20 U.S.C. 9202). The terms ‘‘State educational 
agency’’ and ‘‘local educational agency’’ have the 
meanings given the terms in section 9101 of the Ele-
mentary and Secondary Education Act of 1965 (20 
U.S.C. 7801). 
(5) HIGH-QUALITY
EMPLOYMENT.—The term 
‘‘high-quality employment’’ means employment with, 
at a minimum, family-sustaining compensation (as 
determined by the Secretaries) and opportunities for 
advancement (as so determined). 
(6) INDIVIDUAL WITH A DISABILITY; INDIVID-
UALS WITH DISABILITIES.— 
(A) INDIVIDUAL WITH A DISABILITY.—The 
term ‘‘individual with a disability’’ has the 
meaning given the term in section 7(20)(A) of 
the Rehabilitation Act of 1973 (29 U.S.C. 
705(20)(A)). 
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(B) INDIVIDUALS
WITH
DISABILITIES.— 
The term ‘‘individuals with disabilities’’ means 
more than 1 individual with a disability. 
(7) INDUSTRY-RECOGNIZED CREDENTIAL.—The 
term ‘‘industry-recognized credential’’ means such a 
credential within the meaning of section 3 of the 
Carl D. Perkins Career and Technical Education 
Act of 2006 (20 U.S.C. 2302). 
(8) LABOR ORGANIZATION.—The term ‘‘labor 
organization’’ has the meaning given the term in 
section 2 of the National Labor Relations Act (29 
U.S.C. 152). 
(9) OCCUPATIONAL TRAINING.—The term ‘‘oc-
cupational training’’ means training services, as de-
scribed in section 134(d)(4)(D) of the Workforce In-
vestment Act of 1998 (29 U.S.C. 2864(d)(4)(D)). 
(10) PRIORITY WORKERS.—The term ‘‘priority 
workers’’ means individuals who are— 
(A) individuals unemployed for 52 weeks 
or more; 
(B) youth age 16 through 24 who have 
been out of school or out of work, as appro-
priate, for more than 6 months and do not pos-
sess a secondary school diploma or its recog-
nized equivalent; 
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(C) individuals with disabilities; 
(D) individuals with low literacy levels; or 
(E) veterans, as defined in section 101 of 
title 38, United States Code. 
(11) RECOGNIZED
POSTSECONDARY
CREDEN-
TIAL.—The term ‘‘recognized postsecondary creden-
tial’’ means a credential consisting of an industry- 
recognized credential, a certificate of completion of 
an apprenticeship registered under the Act of Au-
gust 16, 1937 (commonly known as the ‘‘National 
Apprenticeship Act’’; 50 Stat. 664, chapter 663; 29 
U.S.C. 50 et seq.), or an associate or baccalaureate 
degree. 
(12) SECRETARIES.—The term ‘‘Secretaries’’ 
means the Secretary of Education and the Secretary 
of Labor, acting in accordance with the agreement 
described in section 123(c). 
(13) 
SERVICE
AREA.—The 
term 
‘‘service 
area’’— 
(A) used with respect to a regional part-
nership, means a labor market area; and 
(B) used with respect to a State partner-
ship, means 2 or more labor market areas in 
the State that are identified by the State part-
nership. 
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SEC. 123. PROGRAM. 
(a) IN GENERAL.—The Secretary of Labor and the 
Secretary of Education shall establish a program to edu-
cate and train workers for high-quality employment. 
(b) GRANTS.— 
(1) IN GENERAL.—In carrying out the program, 
the Secretaries shall award grants, on a competitive 
basis, to eligible entities to develop or enhance, and 
provide, career pathways and adult learning strate-
gies that integrate education, occupational training, 
and supportive services. The career pathways and 
learning strategies shall prepare individuals for ex-
isting or emerging employment opportunities in a 
service area, which shall include such preparation 
through the attainment of a recognized postsec-
ondary credential. 
(2) GRANT PERIOD.—A grant awarded to an el-
igible entity under this section shall be awarded for 
a period of not more than 5 years. The grant may 
be renewed for not more than 1 such additional 
grant period, contingent on satisfactory performance 
of the eligible entity relating to the expected out-
comes described in section 125(1). 
(3) PARTNERSHIPS.—The eligible entities shall 
provide the career pathways and learning strategies 
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through industry-focused, employer-linked regional 
or State partnerships described in section 124. 
(c) AGREEMENT.—The Secretary of Labor and the 
Secretary of Education shall enter into an interagency 
agreement that describes how the Secretaries will jointly 
administer the program. 
SEC. 124. ELIGIBLE ENTITIES. 
(a) IN GENERAL.—To be eligible to receive a grant 
under section 123 for a service area, an entity shall consist 
of a partnership described in section 123(b)— 
(1) that shall include— 
(A) employers of various sizes in the serv-
ice area, whose job vacancies represent a sig-
nificant share of current or future job vacan-
cies, and that pledge to train or employ partici-
pants in the project carried out under the 
grant; and 
(B) community colleges that will provide 
education and occupational training, aligned 
with current or future job vacancies, through 
the project; and 
(2) that shall include at least 1 of the following: 
(A) A State agency. 
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(B) A chief elected official, as defined in 
section 101 of the Workforce Investment Act of 
1998 (29 U.S.C. 2801). 
(C) A nonprofit organization with a dem-
onstrated record of serving priority workers. 
(D) Local boards or State boards as such 
terms are defined in section 101 of the Work-
force Investment Act of 1998 (29 U.S.C. 2801), 
or designated State units, as defined in section 
7 of the Rehabilitation Act of 1973 (29 U.S.C. 
705) or other vocational rehabilitation offices. 
(E) An economic development agency. 
(F) A local educational agency. 
(G) A labor organization or labor-manage-
ment partnership. 
(H) An adult education provider. 
(I) An agency, which may be a public li-
brary, that provides occupational training or 
supportive services. 
(b) STATE OR REGIONAL PARTNERSHIP.—The part-
nership described in subsection (a) may be— 
(1) a State partnership, serving 2 or more labor 
market areas in the State; or 
(2) a regional partnership, serving a labor mar-
ket area. 
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SEC. 125. APPLICATIONS. 
To be eligible to receive a grant under section 123, 
an entity described in section 124 shall submit an applica-
tion to the Secretaries at such time, in such manner, and 
containing such information as the Secretaries may deter-
mine to be appropriate, including, at a minimum, a plan 
for the project to be carried out under the grant, with 
information describing each of the following: 
(1) How the partnership will address the objec-
tives of the project, including identifying a fiscal 
agent and expected outcomes for the partnership. 
(2) How the partnership will develop or enhance 
career pathways that result in the attainment of a 
recognized postsecondary credential and high-quality 
employment in the service area, including— 
(A) a description of how the partnership 
has used labor market information (including 
projections of job openings, job growth, wages, 
and skill and certification requirements related 
to the credential) to ensure the education and 
occupational training provided through the 
grant are aligned with employment needs in the 
service area; 
(B) a description of how the partnership 
has incorporated best practices in adult edu-
cation and occupational training, such as use of 
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cohort models, compressed course schedules, in-
tegrated adult basic education, and work readi-
ness training and certificates; 
(C) information on how the partnership 
will identify and prepare workers for employ-
ment opportunities; 
(D) an analysis of how the partnership will 
engage 
the 
entities 
described 
in 
section 
124(a)(2), to leverage resources and optimize 
outcomes, including by coordinating existing (as 
of the date the grant is received) education and 
occupational training efforts; and 
(E) a description of how the partnership 
will conduct data collection, monitoring, report-
ing, and information sharing to continuously 
evaluate and improve outcomes for the project. 
(3) The commitment of members of the part-
nership, including— 
(A) each partner’s financial and pro-
grammatic commitment to the strategies de-
scribed in the application; 
(B) each partner’s capacity, such as capac-
ity to provide staff and facilities, to leverage 
State and local investments, to coordinate ac-
tivities with related agencies, and to establish 
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linkages among employment and labor market 
information data systems, to support the strate-
gies described in the application; 
(C) each partner’s long-term commitment 
to the partnership that, at a minimum, ac-
counts for the cost of supporting the project, 
including providing support after grant funds 
are no longer available; and 
(D) each partner’s commitment to ensure 
sound fiscal management and controls, includ-
ing evidence of a related system of supports and 
personnel. 
(4) How the partnership will make work experi-
ences available to all priority workers, including— 
(A) the types of paid internships, on-the- 
job training, or other work experiences the part-
nership will make available to all priority work-
ers; and 
(B) how the partnership will provide any 
developmental education or supportive services 
necessary to ensure priority workers receive and 
succeed in work experiences. 
(5) How the partnership will engage commu-
nity-based organizations with experience providing 
education, occupational training, and related sup-
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portive services to individuals in the service area, 
with particular attention to such organizations that 
have experience supporting priority workers. 
(6) The Federal and non-Federal sources of 
funding that the partnership will secure to comply 
with the matching funds requirement set forth in 
section 128. 
(7) In the case of a State partnership, how the 
partnership will carry out goals described in section 
127(b)(1)(B). 
SEC. 126. PRIORITY AND DISTRIBUTION. 
(a) PRIORITY.—The Secretaries shall give priority 
consideration to a partnership that— 
(1) includes in the partnership involved a labor 
organization, 
labor-management 
partnership, 
or 
community-based organization that represents the 
interests of workers, especially priority workers; or 
(2) is a partnership serving at least 1 labor 
market area with 1 of the highest levels of unem-
ployment or poverty, as defined by the Secretaries, 
in the Nation. 
(b) GEOGRAPHIC DIVERSITY.—In administering the 
grants awarded under section 123, the Secretaries shall 
ensure geographic diversity in the distribution of funds to 
regional and State partnerships. 
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SEC. 127. USE OF FUNDS. 
(a) IN GENERAL.—An eligible entity that receives a 
grant under section 123 shall use the grant funds to im-
plement the plan described in the entity’s application, sub-
mitted under section 125. 
(b) PARTNERSHIPS.— 
(1) PARTNERSHIPS, CAREER
PATHWAYS, AND 
LEARNING STRATEGIES.— 
(A) IN GENERAL.—A partnership that re-
ceives a grant under section 123 shall use the 
grant funds for investments designed to develop 
or enhance, and provide, through an industry- 
focused, employer-linked partnership, career 
pathways and adult learning strategies that 
connect individuals with existing or emerging 
employment opportunities. 
(B) ADDITIONAL
USES.—In addition, a 
partnership described in section 124(b)(1) shall 
use the grant funds to support the activities de-
scribed in subparagraph (A) by— 
(i) supporting programs of tuition as-
sistance, using funding resources, and 
through other evidence-based strategies, 
except that such support shall not supplant 
other Federal funds for such tuition assist-
ance; 
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(ii) providing incentives and technical 
support to employers who, through partici-
pation in industry-focused, employer-linked 
partnerships, or through provision of ca-
reer pathways or adult learning strategies, 
retain and promote incumbent workers, 
employ new workers, or upgrade jobs for 
program participants; and 
(iii) for State partnerships, enhancing 
linkages among employment and labor 
market information data systems in the 
State. 
(2) SERVICES FOR PRIORITY WORKERS.—The 
partnership shall use at least 50 percent of the 
grant funds to support the pathways and strategies 
and provide supportive services for priority workers. 
(3) CONDITIONS OF EDUCATION AND OCCUPA-
TIONAL TRAINING.— 
(A) TRAINING
LEADING
TO
JOBS.—All 
education and occupational training provided 
through the project shall lead to high-quality 
employment provided by, at a minimum, the 
employers represented in the partnership, and 
also including other employers of all sizes in the 
service area. 
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(B) INTERNSHIPS.—Paid internship posi-
tions provided through the project shall be pri-
marily occupational training positions, and the 
internships may not permit interns to spend a 
significant amount of time doing work for 
which an employee would otherwise be com-
pensated. 
(C) ON-THE-JOB
TRAINING.—On-the-job 
training placements— 
(i) provided through the project shall 
pay wages comparable to the wages pro-
vided for similar positions in the sector in-
volved for the service area; and 
(ii) may be placements in new or va-
cant positions, but a participant in such a 
placement shall not displace any currently 
employed employee, consistent with section 
181(b) of the Workforce Investment Act of 
1998 (29 U.S.C. 2931(b)). 
SEC. 128. MATCHING REQUIREMENT. 
(a) REQUIREMENT.—The Secretaries shall require 
that each eligible entity receiving a grant under section 
123 contribute, toward the cost of the project for which 
the grant was awarded, matching funds in an amount 
equal to not less than 50 percent of the amount of the 
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grant. The eligible entity may contribute such matching 
funds from non-Federal sources or Federal sources (other 
than this subtitle), in cash or in-kind, fairly evaluated (in-
cluding plant, equipment, or services). 
(b) WAIVER OR REDUCTION.—The Secretary may 
waive or reduce the matching requirement described in 
subsection (a) for an eligible entity if the eligible entity 
demonstrates a need due to significant financial hardship. 
SEC. 129. FUNDING. 
There shall be made available from the Rebuild 
America Trust Fund under section 9512 of the Internal 
Revenue Code of 1986, $5,000,000,000 for each of fiscal 
years 2013 through 2022 to carry out this subtitle. 
Subtitle D—Supporting Great 
Teachers 
SEC. 131. SHORT TITLE. 
This subtitle may be cited as the ‘‘College and Career 
Ready Classrooms Act’’. 
SEC. 132. FINDINGS. 
Congress finds the following: 
(1) According to the Department of Labor, al-
most 90 percent of new jobs in occupations with 
both high growth and high wages require at least 
some postsecondary training. The majority of new 
jobs that offer a wage sufficient to support a family 
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and provide opportunity for career advancement re-
quire some postsecondary education. Moreover, re-
search shows that the skill level required to enter 
college or a work-training program is the same. 
(2) Implementing college- and career-ready 
State standards is a complex undertaking, requiring 
that teachers utilize a wide array of knowledge and 
skills. 
(3) Peer learning among small groups of teach-
ers is one of the most powerful predictors of im-
proved student academic achievement. Students 
achieve more in mathematics and reading when they 
attend schools characterized by high levels of teacher 
collaboration for school improvement. 
(4) Other nations that outperform the United 
States on international assessments invest more 
heavily in professional development for teachers and 
build time for ongoing, sustained collaboration and 
professional development into the school day and 
year. Teachers in the United States spend about 80 
percent of their working time engaged in classroom 
instruction compared to teachers in other countries 
where 60 percent of their time is spent in classroom 
instruction. 
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SEC. 133. PURPOSES. 
The purposes of this subtitle are to— 
(1) support the successful implementation of 
college- and career-ready State academic standards; 
and 
(2) strengthen the capacity of States and local 
educational agencies to provide professional develop-
ment that increases the effectiveness of all teachers 
in the instruction of college- and career-ready State 
standards and the development and use of cur-
riculum and assessments that are aligned with 
college- and career-ready State standards. 
SEC. 134. DEFINITIONS. 
In this subtitle: 
(1) ESEA 
DEFINITIONS.—Unless otherwise 
specified, the terms used in this subtitle have the 
meanings given the terms in section 9101 of the Ele-
mentary and Secondary Education Act of 1965 (20 
U.S.C. 7801). 
(2) COLLEGE- AND
CAREER-READY
PROFES-
SIONAL
DEVELOPMENT
LEADERSHIP
TEAM.—The 
term ‘‘college- and career-ready professional develop-
ment leadership team’’ means a group of educators, 
teacher association representatives, leaders, and spe-
cialists convened by an eligible entity pursuant to 
section 136(b)(1)(C). 
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(3) COLLEGE- AND CAREER-READY STAFF NET-
WORK.—The term ‘‘college- and career-ready staff 
network’’ means a group of specialists, convened by 
a local entity, including school-based teachers and 
leaders, teacher association representatives, and spe-
cialists in relevant content areas, in teaching English 
learners, and in teaching children with disabilities, 
who are serving as mentors, coaches, or facilitators 
and who are responsible for— 
(A) establishing professional development 
goals; 
(B) aligning the instructional work for in-
dividual schools; 
(C) supporting the implementation of in-
quiry-based models of professional development; 
(D) identifying and sharing best practices; 
(E) coordinating with the college- and ca-
reer-ready professional development leadership 
team; and 
(F) building and sustaining professional 
development capacity within the local entity. 
(4) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means a State educational agency or a consor-
tium of State educational agencies that has adopted 
standards in mathematics and English language arts 
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that are aligned with college and career readiness, as 
demonstrated to the Secretary. 
(5) LOCAL ENTITY.—The term ‘‘local entity’’ 
means a local educational agency or a consortium of 
local educational agencies. 
SEC. 135. GRANTS AUTHORIZED. 
(a) IN GENERAL.—The Secretary is authorized to 
award grants on a competitive basis to eligible entities for 
the development, implementation, and monitoring of com-
prehensive, statewide professional development that— 
(1) is aligned with local professional develop-
ment efforts; and 
(2) increases the effectiveness of all teachers in 
the— 
(A) instruction of college- and career-ready 
State standards; and 
(B) development and use of curriculum 
and assessments and other instructional sup-
ports that are aligned with college- and career- 
ready State standards. 
(b) DURATION.—Each grant awarded under sub-
section (a)— 
(1) shall be for a minimum of a 3-year period 
and a maximum of a 5-year period; and 
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(2) may be renewed based on performance, as 
determined by the Secretary. 
(c) GRANT AMOUNT.—The Secretary shall ensure 
that grants are of sufficient size and scope to enable 
grantees to carry out grant activities. 
(d) GEOGRAPHIC
DISTRIBUTION.—The Secretary 
shall ensure that grantees represent different geographic 
regions of the United States, including urban and rural 
areas. 
(e) RESERVATION OF FUNDS.—From the amount 
made available under section 142 for a fiscal year, the Sec-
retary shall reserve not more than 5 percent for the eval-
uation of activities implemented pursuant to grants 
awarded under subsection (a) and the dissemination of in-
formation on effective professional development activities, 
curriculum, assessments, and other instructional supports 
developed with such grant funds. 
SEC. 136. APPLICATION. 
(a) IN GENERAL.—An eligible entity that desires to 
receive a grant under section 135 shall submit an applica-
tion to the Secretary at such time, in such manner, and 
containing such information as the Secretary may reason-
ably require. 
(b) CONTENTS.— 
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(1) IN GENERAL.—Each application submitted 
under subsection (a) shall include a comprehensive 
strategy for implementing professional development 
aligned to college- and career-ready State standards 
and related instructional supports that shall in-
clude— 
(A) a description of how the professional 
development will increase teacher, principal, 
and other school leader knowledge and under-
standing of college- and career-ready State 
standards that is differentiated, including by 
grade level and subject area, specific to the 
teacher; 
(B) a description of how the professional 
development will increase teacher expertise be-
yond basic content knowledge for subject-area 
teachers; 
(C) the creation of a college- and career- 
ready professional development leadership team 
responsible for establishing statewide goals, pro-
viding model frameworks to local college- and 
career-ready staff networks, leaders, or special-
ists, for meeting statewide goals, identifying 
and sharing best practices around the imple-
mentation of college- and career-ready State 
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standards, curriculum alignment, and assess-
ments, and supporting local comprehensive 
college- and career-ready professional develop-
ment strategy activities; 
(D) dissemination to local college- and ca-
reer-ready staff networks in an easily accessible 
format that may include the use of technology, 
such as a web-based statewide instructional per-
formance support system, exemplary profes-
sional development activities, opportunities to 
participate in professional learning networks, 
technical assistance, and other professional de-
velopment resources designed to support the 
successful implementation of college- and ca-
reer-ready State standards; 
(E) a description of how the professional 
development will be developed in collaboration 
with nonprofit organizations, which may include 
institutions of higher education, with a dem-
onstrated record of expertise, and other edu-
cation stakeholders; and 
(F) a description of how the professional 
development will be based on an analysis of 
data and evidence that indicates the needs of 
leaders, teachers, and students. 
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(2) DEVELOPMENT OF STRATEGY.—The com-
prehensive strategy described in paragraph (1) shall 
be developed in collaboration with the representative 
organizations for teachers in the State. 
SEC. 137. STATE USE OF GRANT FUNDS. 
An eligible entity that receives a grant under section 
135 shall carry out the following: 
(1) PROFESSIONAL DEVELOPMENT IMPLEMEN-
TATION ACTIVITIES.— 
(A) IMPACT ON TEACHING PRACTICE AND 
STUDENT ACHIEVEMENT.— 
(i) IN GENERAL.—The eligible entity 
shall reserve not less than 2 percent of the 
grant funds— 
(I) to conduct an evaluation by a 
knowledgeable, skilled, and impartial 
evaluator of the impact of the com-
prehensive college- and career-ready 
professional development strategy on 
teaching practice and student achieve-
ment; and 
(II) to inform continuous im-
provement of professional development 
activities 
and, 
if 
applicable, 
re-
directing professional development re-
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sources towards those activities that 
are most beneficial to teachers and 
students. 
(ii) CONDUCT
OF
EVALUATION
AND 
INFORMING IMPROVEMENT.—The activities 
described in subclauses (I) and (II) of 
clause (i) shall be conducted by an entity 
other than the State educational agency. 
(B) STRATEGY ACTIVITIES.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), the eligible entity shall re-
serve not more than 13 percent of the 
grant funds to carry out the comprehensive 
college- and career-ready professional de-
velopment activities described under sec-
tion 136. 
(ii) EXCEPTION FOR SMALL OR RURAL 
STATES.—The Secretary may allow a small 
or rural State, upon application by such 
State, to reserve more than 13 percent of 
the grant funds to carry out the com-
prehensive college- and career-ready pro-
fessional development activities described 
under section 136, and activities described 
under section 138(c)(4) as the activities 
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apply to the State, if the State dem-
onstrates to the Secretary that it would be 
more efficient and effective for the State to 
carry out such activities rather than local 
entities. 
(C) IMPLEMENTATION ACTIVITIES.—From 
the amount reserved under subparagraph (B), 
the eligible entity may implement activities de-
scribed under section 138(c)(4) as the activities 
apply to the State educational agency. 
(2) SUBGRANTS.—The eligible entity shall re-
serve not less than 85 percent of the grant funds to 
award subgrants to local entities under section 138. 
SEC. 138. SUBGRANTS TO LOCAL ENTITIES. 
(a) AUTHORIZATION.— 
(1) IN GENERAL.—An eligible entity that re-
ceives a grant under section 135 shall award sub-
grants, on a competitive basis, to local entities. 
(2) APPLICATION.—A local entity that desires 
to receive a subgrant under this section shall submit 
an application to the eligible entity at such time, in 
such manner, and containing such information as 
the eligible entity may reasonably require. 
(3) CONTENTS OF APPLICATION.— 
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(A) LOCAL
COMPREHENSIVE
COLLEGE- 
AND CAREER-READY PROFESSIONAL DEVELOP-
MENT
IMPLEMENTATION.—Each 
application 
submitted under paragraph (2) shall include a 
comprehensive strategy for implementing pro-
fessional development aligned to college- and 
career-ready State standards and related in-
structional supports at the local level (referred 
to in this subtitle as the ‘‘local strategy’’) that 
will improve teacher practice and increase stu-
dent learning. Such local strategy shall in-
clude— 
(i) a description of how the local 
strategy was developed in consultation with 
the exclusive representative organization 
for teachers in the school district or, where 
there is no exclusive representative, teach-
ers who shall be selected by teachers in the 
school district pursuant to a fair and 
democratic election process open to all 
teachers in the school district, principals, 
and other school leaders, and teacher-edu-
cators; 
(ii) the clear learning goals to be 
achieved under the local strategy based on 
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student, teacher, and leader learning needs 
and how they are aligned with the State 
goals established in the comprehensive 
college- and career-ready professional de-
velopment strategy described under section 
136; 
(iii) a description of the tools that will 
be developed under the local strategy to 
enable teachers to easily access college- 
and career-ready professional development 
materials and related resources, including 
model lesson plans and assessments, and 
other professional development materials 
relevant to teacher practice; 
(iv) a description of how the profes-
sional development provided with funds 
under this section will— 
(I) be delivered in a format that 
is job-embedded, ongoing, sustained, 
and collaborative; 
(II) foster individual and collec-
tive responsibility for improving teach-
er effectiveness and student academic 
achievement and provide ongoing op-
portunities for teachers to assess the 
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impact of teaching strategies on stu-
dent learning and reflect on practice; 
and 
(III) support the use of tech-
nology to personalize instruction and 
use technology for professional devel-
opment, consistent with subsection 
(c)(3); 
(v) a description of how the profes-
sional development provided with funds 
under this section will strengthen the abil-
ity of teachers to analyze student data, in-
cluding through the use of a statewide lon-
gitudinal data system, if available, to ad-
just teaching strategies in a timely and ef-
fective manner and improve practice; and 
(vi) a description of how external 
partners, including content area experts, 
nonprofit organizations (including institu-
tions of higher education), and teacher 
preparation programs, will be included in 
the implementation of the local strategy. 
(B) ASSURANCE.—Each application sub-
mitted under paragraph (2) shall include an as-
surance that— 
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(i) a minimum of 50 hours of relevant 
and high-quality professional development 
per school year will be provided to each 
teacher responsible for implementing, or 
assisting in the implementation of, college- 
and career-ready State standards, includ-
ing opportunities for ongoing, job-embed-
ded collaboration and participation in peer 
observations; and 
(ii) participating local educational 
agencies and schools, in collaboration with 
the exclusive representative organization 
for teachers in the school district or, where 
there is no exclusive representative, teach-
ers who shall be selected by teachers in the 
school district pursuant to a fair and 
democratic election process open to all 
teachers in the school district, will nego-
tiate or agree to restructure or extend the 
length of the school day, week, or year, to 
accommodate additional professional devel-
opment hours in a manner that meets the 
requirements of this subtitle over the 
course of the school year. 
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resentative organizations selected or identified to rep-
resent the teachers, a local strategy, which shall include— 
(1) assisting local educational agencies in imple-
menting college- and career-ready standards, specifi-
cally in the areas of increasing content area exper-
tise, curriculum development and alignment, and as-
sessment practices; 
(2) creating and supporting a college- and ca-
reer-ready staff network; 
(3) providing, to the extent practicable, a hy-
brid model for professional learning that combines 
technology-based and in-person professional learning 
experiences and support, such as the use of a web- 
based local, regional, or statewide instructional per-
formance support system that includes exemplary 
professional development activities, opportunities to 
participate in professional learning networks, train-
ing programs, technical assistance, and other profes-
sional development resources designed to support the 
successful implementation of college- and career- 
ready standards; 
(4) providing frequent and sustained opportuni-
ties for teachers to develop, implement, and assess— 
(A) strategies for aligning the curriculum 
with college- and career-ready standards, in-
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cluding lesson planning and instructional strat-
egies that reflect the rigor of the standards; 
(B) instructional strategies, such as inter-
disciplinary 
or 
project-based 
learning 
ap-
proaches, that enhance students’ ability to 
think critically, problem-solve, complete complex 
tasks, conduct research and inquiry, commu-
nicate and demonstrate skills, and think inde-
pendently; 
(C) instructional strategies and assess-
ments that meet the needs of English learners 
and children with disabilities; and 
(D) formative students assessments and 
other student assessments that measure student 
mastery of the relevant college- and career- 
ready State standards; 
(5) providing in-service activities for school 
principals and other school administrators that sup-
port instructional leadership around the implementa-
tion of college- and career-ready standards; 
(6) changing the structure and length of the 
school day, week, or year, to allow for additional 
time for teacher collaboration, planning, and obser-
vation; 
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(7) coordinating or sharing information with 
pre-service teacher preparation programs to support 
the successful implementation of college- and career- 
ready State standards; and 
(8) developing tools to assist teachers in evalu-
ating student work. 
(d) EVALUATION.— 
(1) IN GENERAL.—Each local entity that re-
ceives a subgrant under this section shall reserve not 
less than 5 percent of the subgrant funds to— 
(A) conduct an evaluation of the impact of 
the local strategy on teaching practice and stu-
dent growth and learning; and 
(B) inform continuous improvement of pro-
fessional development activities. 
(2) CONDUCT OF EVALUATION AND INFORMING 
IMPROVEMENT.—The activities described in subpara-
graphs (A) and (B) of paragraph (1) shall be con-
ducted by an entity other than the local entity. 
SEC. 139. REPORTING. 
(a) STATE REPORTING.—Each eligible entity that re-
ceives a grant under section 135 shall annually, for each 
year of the grant, submit to the Secretary and make avail-
able to the public a report that shall include— 
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(1) information on the number of local edu-
cational agencies, schools, and teachers that received 
professional development supported with grant funds 
under section 135; 
(2) the professional development activities fund-
ed under this subtitle; and 
(3) a description of the impact of the com-
prehensive college- and career-ready professional de-
velopment strategy, including results from the eval-
uation conducted under section 137(1)(A)(i)(I). 
(b) REPORT TO CONGRESS.—The Secretary shall an-
nually submit to Congress and make available to the pub-
lic a summary of the eligible entity reports required under 
subsection (a). 
(c) LOCAL REPORTING.—Each local entity that re-
ceives a subgrant under section 138 shall annually, for 
each year of the subgrant, submit to the eligible entity 
and make available to the public a report that shall in-
clude— 
(1) information on the number of local edu-
cational agencies, schools, and teachers that received 
professional development supported with subgrant 
funds under section 138; 
(2) the professional development activities fund-
ed under section 138; and 
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(3) a description of the impact of the local 
strategy, including results from the evaluation con-
ducted under section 138(d). 
SEC. 140. TEACHER PRIVACY. 
No State or local educational agency shall be required 
to publicly report information in compliance with this sub-
title in a case in which the results would reveal personally 
identifiable information about an individual teacher. 
SEC. 141. RULE OF CONSTRUCTION. 
Nothing in this section shall be construed to alter or 
otherwise affect the rights, remedies, and procedures af-
forded school or school district employees under Federal, 
State, or local laws (including applicable regulations or 
court orders) or under the terms of collective bargaining 
agreements, memoranda of understanding, or other agree-
ments between such employees and their employers. 
SEC. 142. FUNDING. 
There shall be made available from the Rebuild 
America Trust Fund under section 9512 of the Internal 
Revenue Code of 1986, $2,000,000,000 for each of the 
fiscal years 2013 through 2017, to carry out this subtitle. 
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Subtitle E—Creating Middle Class 
Jobs 
PART I—TEACHER STABILIZATION 
SEC. 151. PURPOSE. 
The purpose of this part is to provide funds to States 
to prevent teacher layoffs in public schools and support 
the creation of additional jobs in public early childhood 
education and care programs and public elementary and 
secondary education in the 2012–2013, 2013–2014, and 
2014–2015 school years. 
SEC. 152. DEFINITIONS. 
(1) ESEA DEFINITIONS.—Except as otherwise 
provided, the terms ‘‘local educational agency’’, 
‘‘outlying area’’, ‘‘Secretary’’, and ‘‘State edu-
cational agency’’ have the meanings given those 
terms in section 9101 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 7801). 
(2) EARLY CHILDHOOD EDUCATOR.—The term 
‘‘early childhood educator’’ means an individual 
who— 
(A) works directly with children in a State 
or local funded early childhood education and 
care program in a low-income community; and 
(B) in the course of such employment, is 
involved directly in the care, development, and 
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education of infants, toddlers, or children ages 
5 and under. 
(3) STATE.—The term ‘‘State’’ means each of 
the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico. 
(4) STATE FUNDED EARLY CHILDHOOD PRO-
GRAM.—The term ‘‘State funded early childhood 
program’’ means a program that provides edu-
cational services to children from ages birth through 
kindergarten entry and receives funding from a 
State. 
(5) STATE OR LOCAL FUNDED EARLY CHILD-
HOOD PROGRAM.—The term ‘‘State or local funded 
early childhood program’’ means a program that 
provides educational services to children from ages 
birth through kindergarten entry and receives fund-
ing from a State or local government. 
SEC. 153. RESERVATIONS FOR THE OUTLYING AREAS AND 
THE SECRETARY OF THE INTERIOR. 
From the amount appropriated to carry out this part 
under section 159 for each fiscal year, the Secretary— 
(1) shall reserve 0.5 percent to provide assist-
ance to the outlying areas on the basis of their re-
spective needs, as determined by the Secretary, for 
activities consistent with this part and under such 
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terms and conditions as the Secretary may deter-
mine; and 
(2) shall reserve 0.5 percent to provide assist-
ance to the Secretary of the Interior to carry out ac-
tivities consistent with this part in schools operated 
or funded by the Bureau of Indian Education. 
SEC. 154. STATE ALLOTMENTS. 
(a) IN GENERAL.—From the amounts appropriated 
to carry out this part for a fiscal year that remain after 
the reservations under section 153, the Secretary shall 
allot to each State— 
(1) an amount that bears the same relation to 
60 percent of such remaining funds as the State’s 
population of individuals aged 5 through 17 bears to 
the total population of individuals aged 5 through 17 
in all States; and 
(2) an amount that bears the same relation to 
40 percent on such remaining funds as the State’s 
population bears to the total population of all States. 
(b) AWARDS TO STATES.—In order for a State to re-
ceive an allotment under subsection (a), the Governor of 
the State shall submit an approvable application under 
section 155(a). 
(c) REALLOTMENT.—If a State does not apply for 
funding under this part or only uses a portion of its allot-
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100 
ment, the Secretary shall reallot the State’s entire allot-
ment or the remaining portion of its allotment, as the case 
may be, to the remaining States in accordance with sub-
section (a). 
SEC. 155. STATE APPLICATION, RESERVATION, AND RE-
SPONSIBILITIES. 
(a) APPLICATION.—The Governor of a State desiring 
to receive a grant under this part shall submit an applica-
tion to the Secretary not later than 30 days after the date 
of enactment of this Act, in such manner, and containing 
such information as the Secretary may reasonably require 
to determine the State’s compliance with applicable provi-
sions of law. 
(b) STATE RESERVATIONS, ALLOCATIONS, AND RE-
SPONSIBILITIES.— 
(1) RESERVATION.—Each State receiving an al-
lotment under this part may reserve, for each fiscal 
year— 
(A) not more than 2 percent of the grant 
funds for the administrative costs of carrying 
out the State’s responsibilities under this part; 
and 
(B) not more than 10 percent of the grant 
funds to award subgrants to State funded early 
childhood care and education programs to en-
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101 
able the programs to carry out the activities de-
scribed in section 156(b). 
(2) ALLOCATIONS
TO
LOCAL
EDUCATIONAL 
AGENCIES.—From amounts remaining after reserv-
ing funds under paragraph (1), each State receiving 
an allotment under this part for a fiscal year shall 
use such remaining funds only for awarding sub-
grants to local educational agencies in the State for 
the support of high-quality early childhood education 
and care programs and elementary and secondary 
education by allocating to each local educational 
agency— 
(A) an amount that bears the same rela-
tion to 35 percent of such remaining funds as 
the number of students enrolled in the schools 
served by the local educational agency bears to 
the number of students enrolled in the schools 
served by all local educational agencies in the 
State; and 
(B) an amount that bears the same rela-
tion to 65 percent of such remaining funds as 
the number of individuals age 5 through 17 
from families below the poverty line in the geo-
graphic area served by the local educational 
agency, as determined by the Secretary on the 
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102 
basis of the most recent satisfactory data, bears 
to the total number of those individuals in the 
geographic area served by all local educational 
agencies in the State, as so determined. 
(3) TIMING.—Each State receiving an allotment 
under this part for a fiscal year shall make the sub-
grants described in paragraphs (1)(B) and (2) avail-
able to the subgrantees not later than 100 days 
after receiving the allotment from the Secretary. 
(4) PROHIBITIONS.—A State shall not use 
funds received under this part to directly or indi-
rectly— 
(A) establish, restore, or supplement a 
rainy-day fund; 
(B) supplant State funds in a manner that 
has the effect of establishing, restoring, or 
supplementing a rainy-day fund; 
(C) reduce or retire debt obligations in-
curred by the State; or 
(D) supplant State funds in a manner that 
has the effect of reducing or retiring debt obli-
gations incurred by the State. 
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103 
SEC. 156. SUBGRANTS. 
(a) LOCAL EDUCATIONAL AGENCY RESPONSIBIL-
ITIES.—Each local educational agency that receives a 
subgrant under this part shall— 
(1) use the subgrant funds only for compensa-
tion and benefits and other expenses, such as sup-
port services, necessary to retain existing employees, 
recall or rehire former employees, or hire new em-
ployees to provide high-quality early childhood edu-
cation and care, elementary or secondary education, 
or related services; 
(2) obligate such funds not later than Sep-
tember 30 of the fiscal year for which the funds are 
received; and 
(3) not use such funds for general administra-
tive expenses or for other support services or ex-
penditures, as those terms are defined by the Na-
tional Center for Education Statistics in the Com-
mon Core of Data as of the date of enactment of 
this Act. 
(b) EARLY CHILDHOOD EDUCATION AND CARE PRO-
GRAM RESPONSIBILITIES.—Each State or local funded 
early childhood education and care program that receives 
a subgrant under this part shall— 
(1) use the subgrant funds only for compensa-
tion, benefits, and other expenses, such as support 
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104 
services, necessary to retain early childhood edu-
cators, recall or rehire former early childhood edu-
cators, or hire new early childhood educators to pro-
vide high-quality early childhood education and care 
services; and 
(2) obligate such funds not later than Sep-
tember 30 of the fiscal year for which the funds are 
received. 
SEC. 157. MAINTENANCE OF EFFORT. 
(a) IN GENERAL.—The Secretary shall not award an 
allotment to a State under this part unless the State pro-
vides an assurance to the Secretary that, for each fiscal 
year of the grant, the State will maintain State support 
for early childhood education and care, elementary, and 
secondary education programs and services (in the aggre-
gate or on the basis of expenditure per pupil) and for pub-
lic institutions of higher education (not including support 
for capital projects or for research and development or tui-
tion and fees paid by students) at not less than the level 
of such support for each of the 2 categories for the State 
fiscal year preceding the year for which the determination 
is being made. 
(b) SUPPLEMENT NOT SUPPLANT.—A State edu-
cational agency or local educational agency shall use Fed-
eral funds received under this part only to supplement the 
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105 
funds that would, in the absence of such Federal funds, 
be made available from non-Federal sources for the edu-
cation of pupils participating in programs assisted under 
this part, and not to supplant such funds. 
(c) WAIVER.—The Secretary may waive the require-
ments of this section if the Secretary determines that a 
waiver would be equitable due to— 
(1) exceptional or uncontrollable circumstances, 
such as a natural disaster; or 
(2) a precipitous decline in the financial re-
sources of the State. 
SEC. 158. REPORTING. 
Each State that receives an allotment under this part 
shall submit, on an annual basis, a report to the Secretary 
that contains— 
(1) a description of how funds received under 
this part were expended or obligated; and 
(2) an estimate of the number of jobs supported 
by the State using funds received under this part. 
SEC. 159. FUNDING. 
(a) IN GENERAL.—There shall be made available 
from the Rebuild America Trust Fund under section 9512 
of the Internal Revenue Code of 1986, the following 
amounts to carry out this part: 
(1) For fiscal year 2013, $30,000,000,000. 
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106 
(2) For fiscal year 2014, $20,000,000,000. 
(3) For fiscal year 2015, $10,000,000,000. 
(b) AVAILABILITY OF FUNDS.—Funds made avail-
able under subsection (a) shall remain available to the Sec-
retary until September 30, 2015. 
PART II—FIRST RESPONDER STABILIZATION 
SEC. 161. PURPOSE. 
The purpose of this part is to provide funds to States 
and localities to prevent layoffs of, and support the cre-
ation of additional jobs for, law enforcement officers and 
other first responders. 
SEC. 162. CAREER LAW ENFORCEMENT OFFICERS GRANT 
PROGRAM. 
(a) IN GENERAL.—The Attorney General shall make 
competitive grants under section 1701 of title I of the Om-
nibus Crime Control and Safe Streets Act of 1968 (42 
U.S.C. 3796dd) for the hiring, rehiring, or retention of 
career law enforcement officers under part Q of such title. 
(b) APPLICABILITY
OF GRANT REQUIREMENTS.— 
Grants awarded under subsection (a) shall not be subject 
to— 
(1) subsection (g) or (i) of section 1701 of title 
I of the Omnibus Crime Control and Safe Streets 
Act of 1968 (42 U.S.C. 3796dd); or 
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107 
(2) section 1704 of such Act (42 U.S.C. 
3796dd–3). 
(c) FUNDING.— 
(1) IN GENERAL.—There shall be made avail-
able from the Rebuild America Trust Fund under 
section 9512 of the Internal Revenue Code of 1986, 
the following amounts to the Community Oriented 
Policing Stabilization Fund to enable the Attorney 
General to carry out the competitive grant program 
under this section: 
(A) $4,000,000,000 for fiscal year 2013. 
(B) $2,400,000,000 for fiscal year 2014. 
(C) $800,000,000 for fiscal year 2015. 
(2) LIMITATION.—Of the amounts made avail-
able pursuant to paragraph (1), not to exceed 
$8,000,000 shall be for administrative costs of the 
Attorney General. 
SEC. 163. FIRST RESPONDER GRANT PROGRAM. 
(a) IN GENERAL.—There shall be made available 
from the Rebuild America Trust Fund under section 9512 
of the Internal Revenue Code of 1986, the following 
amounts to the Secretary of Homeland Security to award 
grants under section 34 of the Federal Fire Prevention 
and Control Act of 1974 (15 U.S.C. 2229a): 
(1) $1,000,000,000 for fiscal year 2013. 
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(2) $600,000,000 for fiscal year 2014. 
(3) $200,000,000 for fiscal year 2015. 
(b) LIMITATION.—Of the amounts made available 
pursuant to subsection (a), not to exceed $2,000,000 shall 
be for administrative costs of the Secretary of Homeland 
Security. 
(c) WAIVERS.—In making grants with amounts made 
available under subsection (a), the Secretary may grant 
waivers from the requirements in subsections (a)(1)(A), 
(a)(1)(B), (a)(1)(E), (c)(1), (c)(2), and (c)(4)(A) of sec-
tion 34 of the Federal Fire Prevention and Control Act 
of 1974. 
PART III—MAINTAINING CRITICAL COMMUNITY 
SERVICES 
SEC. 171. DEFINITIONS. 
In this part: 
(1) BENEFITS.—The term ‘‘benefits’’ has the 
meaning given the term ‘‘employment benefits’’ in 
section 101 of the Family and Medical Leave Act of 
1993 (29 U.S.C. 2611). 
(2) EMPLOYEE
COMPENSATION.—The term 
‘‘employee compensation’’ includes wages and bene-
fits. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Labor. 
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(4) STATE.—The term ‘‘State’’ means any 
State of the United States and the Commonwealth 
of Puerto Rico. 
(5) UNIT OF GENERAL LOCAL GOVERNMENT.— 
The term ‘‘unit of general local government’’ 
means— 
(A) any city, county, town, township, par-
ish, village, or other general purpose political 
subdivision of a State; 
(B) Guam, the Northern Mariana Islands, 
the Virgin Islands, and American Samoa, or a 
general purpose political subdivision thereof; 
(C) a combination of such political subdivi-
sions that is recognized by the Secretary; or 
(D) the District of Columbia. 
(6) WAGE.—The term ‘‘wage’’ has the meaning 
given such term in section 3 of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 203). 
SEC. 172. MAINTAINING CRITICAL COMMUNITY SERVICES. 
(a) PROGRAM
AUTHORIZED.—From the amount 
made available for this part under section 178 and not 
reserved under subsection (b), the Secretary of Labor, act-
ing through the Employment and Training Administration 
and in consultation with the Secretary of Housing and 
Urban Development, shall award grants, on a competitive 
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basis in accordance with section 174, to units of general 
local government to save and create local jobs through the 
retention, restoration, or expansion of critical services 
needed by local communities. 
(b) RESERVATIONS
BY
THE SECRETARY.—Of the 
amount made available for this part under section 178 for 
each fiscal year, the Secretary may reserve not more than 
1 percent to administer this part. 
SEC. 173. APPLICATION. 
(a) APPLICATION.—In order to receive funds under 
this part for a fiscal year, a unit of general local govern-
ment shall submit to the Secretary, at such time and in 
such manner as determined by the Secretary, an applica-
tion that includes the information described in subsection 
(b) for such fiscal year. 
(b) CONTENTS.—An application submitted under 
subsection (a) shall include the following information: 
(1) A certification by the unit of general local 
government of— 
(A) the amount of funds requested by the 
unit of general local government; 
(B) the number of individuals who will re-
ceive employee compensation with such funds; 
and 
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111 
(C) whether the positions supported with 
funds under this part will assist in retaining, 
restoring, or expanding an existing local public 
service. 
(2) A statement documenting the need for the 
critical services to be carried out by the individuals 
hired for the positions. 
(3) In the case of a unit of general local govern-
ment that desires to use funds received under this 
part to continue to provide employee compensation 
for existing employees of the unit, a statement docu-
menting the fiscal constraints of the unit that would 
result in the termination or reduction of the posi-
tions of such employees. 
(4) An assurance by the unit of general local 
government that the unit will comply with all provi-
sions of this part and with all applicable Federal, 
State, and local labor laws, including laws con-
cerning wages and hours, labor relations, family and 
medical leave, occupational safety and health, and 
nondiscrimination. 
(5) Such additional information as the Sec-
retary determines necessary, including information 
regarding the criteria described in section 174(a). 
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112 
SEC. 174. AWARD BASIS. 
(a) CRITERIA.—Subject to subsection (b), the Sec-
retary shall award grants under this part by taking into 
consideration— 
(1) the unemployment rate in the local commu-
nity served by the unit of general local government; 
(2) the poverty rate in such local community; 
(3) the population of such local community; 
(4) excess unemployment in such local commu-
nity; and 
(5) other factors as the Secretary determines 
necessary. 
(b) MAXIMUM AMOUNT.— 
(1) IN GENERAL.—In no case shall the ratio of 
the amount of grant funds awarded under this part 
to all units of general local government in the State, 
as compared to the total amount of grant funds 
available under this part, be greater than the ratio 
of the State’s population, as compared to the total 
population of all States and all areas described in 
paragraph (2). 
(2) APPLICATION
TO
TERRITORIES
AND
THE 
DISTRICT OF COLUMBIA.—For the areas of Guam, 
the Northern Mariana Islands, the Virgin Islands, 
American Samoa, and the District of Columbia, in 
no case shall the ratio of the amount of grant funds 
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113 
awarded to any such area, as compared to the total 
amount of grant funds available under this part, be 
greater than the ratio of the population of such area 
as compared to the total population of all States and 
all such areas. 
(c) TIMING.—For each fiscal year, the Secretary shall 
award the grants under this part by not later than 30 
days after the end of the application period. 
SEC. 175. USES OF FUNDS. 
(a) IN GENERAL.—A unit of general local govern-
ment that receives a grant under this part— 
(1) shall use the funds to provide employee 
compensation to retain or hire individuals to con-
tinue, restore, or expand public services; and 
(2) may not use more than 5 percent for ad-
ministrative purposes under the grant. 
(b) NONDISPLACEMENT.—A unit of general local gov-
ernment may not employ an individual for a position fund-
ed under this part, if— 
(1) employing such individual will result in the 
layoff or partial displacement (such as a reduction 
in hours, wages, or employee benefits) of an existing 
employee of the unit of general local government; or 
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114 
(2) such individual will perform the same or 
substantially similar work that had previously been 
performed by an employee of the unit who— 
(A) has been laid off or partially displaced 
(as such term is described in paragraph (1)); 
and 
(B) has not been offered, by the unit or or-
ganization, to be restored to the position the 
employee had immediately prior to being laid 
off or partially displaced. 
SEC. 176. EMPLOYEE STATUS, COMPLIANCE WITH LOCAL 
LAWS, AND CONTRACTS. 
(a) EMPLOYEE STATUS.—An individual hired for a 
position funded under this part shall be considered an em-
ployee of the unit of general local government by which 
such individual was hired and receive the same employee 
compensation, have the same rights and responsibilities 
and job classifications, and be subject to the same job 
standards, employer policies, and collective bargaining 
agreements as if such individual was hired without assist-
ance under this part. 
(b) COMPLIANCE WITH LOCAL LAWS
AND CON-
TRACTS.—In hiring individuals for positions funded under 
this part, or using funds under this part to continue to 
provide employee compensation for existing employees, a 
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unit of general local government shall comply with all ap-
plicable Federal, State, and local laws, personnel policies 
and regulations, and collective bargaining agreements, as 
if such individual was hired, or such employee compensa-
tion was provided, without assistance under this part. 
SEC. 177. SUPPLEMENT, NOT SUPPLANT. 
Funds made available under this part shall be used 
to supplement, and not supplant, other Federal, State, 
and local funds that would otherwise be expended to carry 
out activities under this part. 
SEC. 178. FUNDING PROVIDED. 
There shall be made available from the Rebuild 
America Trust Fund under section 9512 of the Internal 
Revenue Code of 1986, the following amounts to enable 
the Secretary of Labor to carry out the purposes of this 
part: 
(1) $5,000,000,000 for fiscal year 2013. 
(2) $5,000,000,000 for fiscal year 2014. 
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116 
TITLE II—CREATING FINANCIAL 
STABILITY AND A BETTER FU-
TURE 
FOR 
MIDDLE 
CLASS 
FAMILIES 
Subtitle A—Alleviating the High 
Cost of Child Care 
SEC. 201. CCDBG PLUS. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE
CHILD.—The term ‘‘eligible 
child’’ means a child who has not attained the age 
of 13 and whose family income is equal to or less 
than the State median income for a family of the 
same size. 
(2) LOW-INCOME.—The term ‘‘low-income’’, 
when used in reference to an individual, means an 
individual with a family income that is less than or 
equal to 200 percent of the poverty line, as defined 
in section 673 of the Community Services Block 
Grant Act (42 U.S.C. 9902), applicable to a family 
of the size involved. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Health and Human Services. 
(4) STATE.—The term ‘‘State’’ means each of 
the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico. 
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(b) PROGRAM AUTHORIZED.— 
(1) IN GENERAL.—The Secretary of Health and 
Human Services is authorized to award grants, in 
allotments described in subsection (c)(2), to States 
to enable the States to increase the availability of 
high-quality early childhood care and education pro-
grams to enable more people of the United States to 
enter into and advance within the middle class. 
(2) DURATION OF GRANT.—A grant awarded 
under this section shall be for a period of not more 
than 5 years. 
(3) CONTINGENT
FUNDING.—After the third 
year of the grant period of a grant under this sec-
tion, funding for each additional year of the grant 
period shall be contingent on the State’s progress to-
ward meeting the performance indicators and bench-
marks established under subsection (g). 
(4) ELIGIBILITY.—In order to receive an allot-
ment under this section, a State shall establish or 
certify, to the satisfaction of the Secretary, that the 
State’s payments for the grant or contracts to pro-
vide early childhood care and education programs 
under subsection (f)(1) are sufficient to ensure that 
programs and providers that serve eligible children 
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118 
from birth through age 5 can meet the standards es-
tablished under subsection (f)(2). 
(c) AMOUNTS RESERVED; ALLOTMENTS.— 
(1) RESERVATIONS.—From the amounts appro-
priated to carry out this section, the Secretary shall 
reserve— 
(A) 2 percent of such amounts to make 
grants or enter into contracts with Indian tribes 
or tribal organizations (as such terms are de-
fined in section 658P of the Child Care Devel-
opment Block Grant Act of 1990 (42 U.S.C. 
9858n)) for programs or activities consistent 
with the purposes of this section; and 
(B) 0.5 percent of such amounts to award 
grants to Guam, American Samoa, the Virgin 
Islands of the United States, and the Common-
wealth of the Northern Mariana Islands for 
programs or activities consistent with the pur-
poses of this section, to be allotted in accord-
ance with their respective needs. 
(2) ALLOTMENTS.—From the amounts appro-
priated to carry out this section and not reserved 
under paragraph (1), the Secretary shall make allot-
ments to each eligible State with an approved appli-
cation using the formula established under section 
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119 
658O(b) of the Child Care Development Block Grant 
Act of 1990 (42 U.S.C. 9858m(b)), except that any 
calculation in such formula that refers all States 
shall, for purposes of this section, be calculated 
based on all eligible States that have submitted an 
approved application. 
(d) APPLICATION.— 
(1) IN
GENERAL.—A State desiring a grant 
under this section shall submit an application at 
such time, in such manner, and containing such in-
formation as the Secretary may require, including 
the following: 
(A) A description of how, by not later than 
3 years after the date of receipt of the grant, 
the State will ensure the health and safety of 
early childhood care and education programs by 
inspecting and monitoring all regulated child 
care providers in the State not less than 2 
times each year, in accordance with subsection 
(e)(2). 
(B) A description of the process the State 
proposes to use to ensure that investments 
made to increase access to programs providing 
high-quality early childhood care and education 
programs are prioritized first in local economic 
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areas with significant concentrations of poverty 
and unemployment that do not have such pro-
grams. 
(C) A description of the strategies the 
State will employ to build on the capacity of 
State early childhood care and education pro-
grams, and communities, to promote parents’ 
and families’ understanding of the State’s early 
childhood care and education system and the 
importance of high-quality early learning oppor-
tunities. 
(D) A description of the proposed time-
frame to develop and implement the elements of 
the grant program described in the application. 
(E) An assurance that the grant funds will 
only be used to supplement, and not to sup-
plant, Federal, State, and local funds otherwise 
available to support existing (as of the date of 
the application) early childhood care and edu-
cation programs described in subsection (e)(3). 
(F) A certification that the State will pro-
vide assistance for the provision of early child-
hood care and education programs under sub-
section (f), and provides assistance for child 
care services under the Child Care and Develop-
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121 
ment Block Grant Act of 1990 (42 U.S.C. 9858 
et seq.), for families by using a sliding fee scale 
that provides for cost sharing by the families, 
in order to prioritize increasing the number and 
percentage of low-income and otherwise dis-
advantaged children and families in high-quality 
early childhood care and education programs 
described in subsection (e)(3). 
(G) An assurance that the State will peri-
odically revise the sliding fee scale used to pro-
vide assistance under this section. 
(H) A description of how the State will co-
ordinate the program supported under this sec-
tion with the program supported under the 
Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858 et seq.), Head Start 
and Early Head Start programs under the 
Head Start Act (42 U.S.C. 9832), the 21st cen-
tury community learning center program under 
part B of title IV of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 7171 
et seq.), part C and section 619 of the Individ-
uals with Disabilities Education Act (20 U.S.C. 
1431 et seq.), and, as applicable, activities 
funded under the Race to The Top-Early 
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Learning Challenge program under section 
14006 of the American Recovery and Reinvest-
ment Act of 2009 (Public Law 111–5; 123 
Stat. 283). 
(2) CONSULTATION.—A State shall develop its 
application under this subsection in consultation 
with the State Advisory Council on Early Education 
and 
Care 
established 
pursuant 
to 
section 
642B(b)(1)(A) of the Head Start Act (42 U.S.C. 
9837b(b)(1)(A)). 
(e) USE OF FUNDS.—A State that receives a grant 
under this section shall use grant funds to carry out the 
following: 
(1) RESERVATION FOR ENHANCING CHILD CARE 
QUALITY.—The State shall reserve 10 percent of the 
grant funds to support— 
(A) activities that enhance the skills, 
knowledge, credentials, and compensation of the 
child care workforce, including in ways that 
support career advancement through career lad-
ders; and 
(B) other activities to enhance child care 
quality and support child care providers, includ-
ing family child care providers, in meeting the 
standards described in subsection (f)(2). 
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123 
(2) USE FOR INSPECTION AND MONITORING.— 
From the amount of grant funds remaining after the 
reservation under paragraph (1), the State shall use 
not less than 10 percent of funds to ensure that the 
State inspects and monitors all State-regulated child 
care providers, to include site visits not less fre-
quently than 2 times each year. At a minimum, 1 
such visit shall address health and safety and 1 visit 
shall address child care quality, and at least 1 of the 
visits shall be unannounced. 
(3) USE
FOR
SUBSIDIES
FOR
EARLY
CHILD-
HOOD CARE AND EDUCATION PROGRAMS.—From the 
amount of grant funds remaining after carrying out 
paragraphs (1) and (2), the State shall make high- 
quality early childhood care and education programs 
more affordable to families of eligible children by— 
(A) using two-thirds of such remaining 
amounts to provide assistance for the provision 
of high-quality early childhood care and edu-
cation programs under subsection (f) for eligible 
children who are infants and toddlers; and 
(B) using the remaining funds to provide 
assistance for eligible children who have not at-
tained the age of 13 for the provision of high- 
quality early childhood care and education pro-
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124 
grams (which, for purposes of serving school- 
age children under this subparagraph, shall be 
deemed to include high-quality after-school pro-
grams) under subsection (f). 
(f) MORE AFFORDABLE QUALITY CHILD CARE.— 
(1) IN
GENERAL.—To provide the assistance 
described in subsection (e)(3), a State shall award 
grants or contracts to eligible providers that allow 
parents of eligible children who are provided assist-
ance under this section to enroll such children with 
the eligible providers in high-quality early childhood 
care and education programs described in such sub-
section. 
(2) ELIGIBLE PROVIDERS.— 
(A) IN GENERAL.—In order for a provider 
that serves eligible children from birth through 
age 5 to be an eligible provider for purposes of 
this section, the provider shall be a child care 
center, Head Start or Early Head Start pro-
gram, or family child care home or system 
that— 
(i) offers full-day, full-year care or 
before- or after-school care; and 
(ii)(I) meets Head Start program per-
formance standards, or standards estab-
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lished for the top tier of a State’s quality 
rating and improvement system, as appro-
priate; or 
(II) is accredited by a national early 
childhood body with demonstrated valid 
and reliable program standards of high 
quality. 
(B) SPECIAL RULE.—The Secretary may 
adjust the requirements of subparagraph (A), 
to the extent the Secretary determines nec-
essary to carry out the purposes of this section, 
for high-quality early childhood care and edu-
cation programs providing care to eligible chil-
dren during nontraditional hours. 
(3) SUPPORT
FOR
CHILDREN
WITH
DISABIL-
ITIES.—Not less than 15 percent of the funds de-
scribed in each of subparagraphs (A) and (B) of 
subsection (e)(3) shall be used to support high-qual-
ity early childhood care and education programs 
through eligible providers for eligible children who 
are children with disabilities, as defined in section 
602 of the Individuals with Disabilities Education 
Act (20 U.S.C. 1401), or infants or toddlers with 
disabilities, as defined in section 632 of such Act (20 
U.S.C. 1432). 
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(4) SUPPORT FOR QUALITY CARE DURING NON-
TRADITIONAL HOURS.—Not less than 10 percent of 
the funds described in each of subparagraphs (A) 
and (B) of subsection (e)(3) shall be used to support 
the provision of high-quality early childhood care 
and education programs described in such subsection 
to eligible children during nontraditional hours. 
(g) ACCOUNTABILITY.— 
(1) IN GENERAL.—The Secretary shall define, 
by regulation, indicators to be used to measure suc-
cess on the activities carried out under a grant 
under this section, the primary indicator of which 
shall be increasing the number and percentage of 
low-income children in high-quality, State early 
childhood care and education programs, as described 
in subsection (e)(3). 
(2) QUANTIFIABLE BENCHMARKS.—Each State 
receiving a grant under this section shall— 
(A) develop quantifiable benchmarks for 
the State and the activities supported under the 
grant based on indicators described in para-
graph (1) that are applicable to the State; and 
(B) submit such benchmarks for approval 
to the Secretary. 
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(3) DISAGGREGATION.—The indicators and 
benchmarks shall include, at a minimum, indicators 
and benchmarks for all eligible children served by 
the program and for the categories of children de-
scribed in paragraphs (2), (3), and (4) of subsection 
(i). 
(h) MAINTENANCE
OF EFFORT.—With respect to 
each period for which a State is awarded a grant under 
this section, the expenditures by the State on State early 
childhood care and education programs described in sub-
section (e)(3), and supports, shall not be less than the 
greater of the level of the expenditures for such programs 
and supports in the prior fiscal year or in the full fiscal 
year preceding the date of enactment of the Rebuilding 
America Act. 
(i) REPORTS.—Each State that receives a grant 
under this section shall submit to the Secretary an annual 
report, which the Secretary shall make publicly available, 
that includes information on the activities carried out by 
the State under this section for the year, including— 
(1) the number of eligible children, and fami-
lies, that were assisted under this section; 
(2) the number and percentage of low-income 
children assisted; 
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128 
(3) the number and percentage of English 
learners assisted; 
(4) the number and percentage of children with 
disabilities assisted; and 
(5) the number of early childhood care and edu-
cation programs, as described in subsection (e)(3) 
and disaggregated by type, that received assistance 
under this section. 
(j) FUNDING.—There shall be made available from 
the Rebuild America Trust Fund under section 9512 of 
the Internal Revenue Code of 1986, $5,000,000,000 for 
each of fiscal years 2013 through 2022 to carry out this 
section. 
(k) SUNSET PROVISION.—The authority under this 
section shall expire on the date that is 10 years after the 
date of enactment of this Act. 
Subtitle B—Helping Americans 
Enjoy Their Golden Years 
PART I—COMMISSION ON RETIREMENT 
SECURITY 
SEC. 211. SHORT TITLE. 
This part may be cited as the ‘‘Retirement Security 
Act of 2012’’. 
SEC. 212. FINDINGS. 
Congress makes the following findings: 
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129 
(1) The United States is facing a retirement 
crisis. The difference between what people need for 
retirement and what they actually have is approxi-
mately $6,600,000,000,000. 
(2) Social Security is the bedrock of retirement 
security, but Social Security must be supplemented 
by a strong and vibrant private retirement system. 
(3) The private retirement system is not doing 
enough to help families prepare for retirement. Only 
1⁄2 of the workforce has access to an employer pro-
vided retirement plan, and the number of workers 
covered by defined benefit pension plans has fallen 
from 50 percent to 20 percent in just 30 years. Con-
sequently, retirement is getting less and less secure 
for middle class families. 
(4) In order to address the retirement crisis, 
the United States needs a retirement system that 
embodies the following principles: 
(A) The private retirement system must be 
universal and automatic. 
(B) The private retirement system must 
provide people with income certainty. 
(C) The private retirement system must be 
one of shared responsibility. 
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(D) The private retirement system must be 
pooled and professionally managed. 
SEC. 213. COMMISSION ON RETIREMENT SECURITY. 
(a) ESTABLISHMENT.—There is established a com-
mission to be known as the ‘‘Commission on Retirement 
Security’’ (referred to in this part as the ‘‘Commission’’). 
(b) MEMBERSHIP.— 
(1) IN
GENERAL.—The Commission shall be 
composed of 31 members. Such members shall be 
appointed in accordance with the following: 
(A) Two members appointed by the Chair-
man of the Committee on Health, Education, 
Labor, and Pensions of the Senate. 
(B) Two members appointed by the Rank-
ing Member of the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate. 
(C) Two members appointed by the Chair-
man of the Committee on Finance of the Sen-
ate. 
(D) Two members appointed by the Rank-
ing Member of the Committee on Finance of 
the Senate. 
(E) Two members appointed by the Chair-
man of the Committee on Education and the 
Workforce of the House of Representatives. 
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131 
(F) Two members appointed by the Rank-
ing Member of the Committee on Education 
and the Workforce of the House of Representa-
tives. 
(G) Two members appointed by the Chair-
man of the Committee on Ways and Means of 
the House of Representatives. 
(H) Two members appointed by the Rank-
ing Member of the Committee on Ways and 
Means of the House of Representatives. 
(I) Fifteen members appointed by the 
President from among officers or employees of 
the Executive Branch, private citizens of the 
United States, or both. Not more than 8 such 
members appointed by the President may be 
from 1 political party. 
(2) DATE
OF
APPOINTMENTS.—The appoint-
ment of a member of the Commission shall be made 
not later than 30 days after the date of enactment 
of this Act. 
(c) TERM; VACANCIES.— 
(1) TERM.—A member shall be appointed for 
the life of the Commission. 
(2) VACANCIES.—A vacancy on the Commis-
sion— 
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132 
(A) shall not affect the powers of the Com-
mission; and 
(B) shall be filled in the same manner as 
the original appointment was made. 
(d) INITIAL MEETING.—Not later than 15 days after 
the date on which all members of the Commission have 
been appointed, the Commission shall hold the initial 
meeting of the Commission. 
(e) MEETINGS.—The Commission shall meet at the 
call of the co-chairpersons. Meetings shall be open to the 
public unless designated otherwise by the co-chairpersons. 
(f) QUORUM.—A majority of the members of the 
Commission shall constitute a quorum, but a lesser num-
ber of members may hold hearings. 
(g) CO-CHAIRPERSONS.—The Chairman of the Com-
mittee on Health, Education, Labor, and Pensions of the 
Senate and the Chairman of the Committee on Education 
and the Workforce of the House of Representatives shall 
each select 1 member to be co-chairperson of the Commis-
sion. 
SEC. 214. DUTIES. 
(a) REVIEW
AND
ANALYSIS.—The Commission 
shall— 
(1) review relevant analyses of the private re-
tirement system; 
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133 
(2) identify problems that threaten retirement 
security; and 
(3) analyze potential solutions to such prob-
lems. 
(b) RECOMMENDATIONS.—The Commission shall de-
velop recommendations on improving the private retire-
ment system in the United States. 
(c) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Commission shall submit to 
Congress a report that contains— 
(1) a detailed statement of the findings and 
conclusions of the Commission; and 
(2) the recommendations of the Commission for 
such legislation (which shall include proposed legisla-
tive language) and administrative actions as the 
Commission considers appropriate. 
SEC. 215. COMMISSION PERSONNEL MATTERS. 
(a) NO COMPENSATION OF MEMBERS.—Members of 
the Commission shall serve without compensation. 
(b) TRAVEL EXPENSES.—A member of the Commis-
sion who is not an officer or employee of the Federal Gov-
ernment shall be allowed travel expenses, including per 
diem in lieu of subsistence, while away from their homes 
or regular places of business in the performance of services 
for the Commission in the same manner as persons em-
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134 
ployed intermittently in the Government service are al-
lowed such expenses under section 5703 of title 5, United 
States Code. 
(c) STAFF.— 
(1) IN GENERAL.—The co-chairpersons of the 
Commission may, without regard to the civil service 
laws (including regulations), appoint and terminate 
an executive director and such other additional per-
sonnel as are necessary to enable the Commission to 
perform the duties of the Commission. 
(2) CONFIRMATION
OF
EXECUTIVE
DIREC-
TOR.—The employment of an executive director shall 
be subject to confirmation by the Commission. 
(3) COMPENSATION.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the co-chairpersons of the 
Commission may fix the compensation of the 
executive director and other personnel without 
regard to the provisions of chapter 51 and sub-
chapter III of chapter 53 of title 5, United 
States Code, relating to classification of posi-
tions and General Schedule pay rates. 
(B) MAXIMUM RATE OF PAY.—The rate of 
pay for the executive director and other per-
sonnel shall not exceed the rate payable for 
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135 
level V of the Executive Schedule under section 
5316 of title 5, United States Code. 
(d) DETAIL OF FEDERAL GOVERNMENT EMPLOY-
EES.— 
(1) IN GENERAL.—An employee of the Federal 
Government may be detailed to the Commission 
without reimbursement. 
(2) CIVIL SERVICE STATUS.—The detail of the 
employee shall be without interruption or loss of civil 
service status or privilege. 
(e) PROCUREMENT OF TEMPORARY AND INTERMIT-
TENT SERVICES.—The co-chairpersons of the Commission 
may procure temporary and intermittent services in ac-
cordance with section 3109(b) of title 5, United States 
Code, at rates for individuals that do not exceed the daily 
equivalent of the annual rate of basic pay prescribed for 
level V of the Executive Schedule under section 5316 of 
that title. 
SEC. 216. TERMINATION OF COMMISSION. 
The Commission shall terminate 30 days after the 
date on which the Commission submits the report of the 
Commission under section 214(c). 
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136 
PART II—SOCIAL SECURITY 
SEC. 221. DETERMINATION OF TAXABLE WAGES AND SELF- 
EMPLOYMENT INCOME ABOVE CONTRIBU-
TION AND BENEFIT BASE AFTER 2012. 
(a) DETERMINATION OF TAXABLE WAGES ABOVE 
CONTRIBUTION AND BENEFIT BASE AFTER 2012.— 
(1) AMENDMENTS TO THE INTERNAL REVENUE 
CODE OF 1986.—Section 3121 of the Internal Rev-
enue Code of 1986 is amended— 
(A) in subsection (a)(1), by inserting ‘‘the 
applicable percentage (determined under sub-
section (c)(1)) of’’ before ‘‘that part of the re-
muneration’’; and 
(B) in subsection (c), by striking ‘‘(c) IN-
CLUDED AND EXCLUDED SERVICE.—For pur-
poses of this chapter, if’’ and inserting the fol-
lowing: 
‘‘(c) SPECIAL RULES
FOR WAGES
AND EMPLOY-
MENT.— 
‘‘(1) APPLICABLE PERCENTAGE OF REMUNERA-
TION IN DETERMINING TAXABLE WAGES.—For pur-
poses of subsection (a)(1), the applicable percentage 
for a calendar year shall be equal to— 
‘‘(A) for 2013, 90 percent; 
‘‘(B) for 2014 through 2021, the applica-
ble percentage under this paragraph for the 
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137 
previous year, decreased by 10 percentage 
points; and 
‘‘(C) for 2022 and each year thereafter, 0 
percent. 
‘‘(2) INCLUDED AND EXCLUDED SERVICE.—For 
purposes of this chapter, if’’. 
(2) AMENDMENTS
TO
THE
SOCIAL
SECURITY 
ACT.—Section 209 of the Social Security Act (42 
U.S.C. 409) is amended— 
(A) in subsection (a)(1)(I)— 
(i) by inserting ‘‘and before 2013’’ 
after ‘‘1974’’; and 
(ii) by inserting ‘‘and’’ after the semi-
colon; 
(B) in subsection (a)(1), by adding at the 
end the following new subparagraph: 
‘‘(J) The applicable percentage (deter-
mined under subsection (l)) of that part of re-
muneration which, after remuneration (other 
than remuneration referred to in the succeeding 
subsections of this section) equal to the con-
tribution and benefit base (determined under 
section 230) with respect to employment has 
been paid to an individual during any calendar 
year after 2012 with respect to which such con-
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138 
tribution and benefit base is effective, is paid to 
such individual during such calendar year;’’; 
and 
(C) by adding at the end the following new 
subsection: 
‘‘(l) For purposes of subsection (a)(1)(J), the applica-
ble percentage for a calendar year shall be equal to— 
‘‘(1) for 2013, 90 percent; 
‘‘(2) for 2014 through 2021, the applicable per-
centage under this subsection for the previous year, 
decreased by 10 percentage points; and 
‘‘(3) for 2022 and each year thereafter, 0 per-
cent.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply with respect to remu-
neration paid in calendar years after 2012. 
(b) DETERMINATION OF TAXABLE SELF-EMPLOY-
MENT INCOME ABOVE CONTRIBUTION
AND BENEFIT 
BASE AFTER 2012.— 
(1) AMENDMENTS TO THE INTERNAL REVENUE 
CODE OF 1986.—Section 1402 of the Internal Rev-
enue Code of 1986 is amended— 
(A) in subsection (b)(1), by striking ‘‘that 
part of the net earnings’’ and all that follows 
through ‘‘minus’’ and inserting the following: 
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139 
‘‘an amount equal to the applicable percentage 
(as determined under subsection (d)(2)) of that 
part of the net earnings from self-employment 
which is in excess of the difference (not to be 
less than zero) between (i) an amount equal to 
the contribution and benefit base (as deter-
mined under section 230 of the Social Security 
Act) which is effective for the calendar year in 
which such taxable year begins, and’’; and 
(B) in subsection (d)— 
(i) by striking ‘‘(d) EMPLOYEE AND 
WAGES.—The term’’ and inserting the fol-
lowing: 
‘‘(d) RULES AND DEFINITIONS.— 
‘‘(1) EMPLOYEE AND WAGES.—The term’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(2) APPLICABLE PERCENTAGE OF NET EARN-
INGS
FROM
SELF-EMPLOYMENT
IN
DETERMINING 
TAXABLE
SELF-EMPLOYMENT
INCOME.—For pur-
poses of subsection (b)(1), the applicable percentage 
for a taxable year beginning in any calendar year re-
ferred to in such paragraph shall be equal to— 
‘‘(A) for 2013, 90 percent; 
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140 
‘‘(B) for 2014 through 2021, the applica-
ble percentage under this paragraph for the 
previous year, decreased by 10 percentage 
points; and 
‘‘(C) for 2022 and each year thereafter, 0 
percent.’’. 
(2) AMENDMENTS
TO
THE
SOCIAL
SECURITY 
ACT.—Section 211 of the Social Security Act (42 
U.S.C. 411) is amended— 
(A) in subsection (b)— 
(i) in paragraph (1)(I)— 
(I) by striking ‘‘or’’ after the 
semicolon; and 
(II) by inserting ‘‘and before 
2013’’ after ‘‘1974’’; 
(ii) by redesignating paragraph (2) as 
paragraph (3); and 
(iii) by inserting after paragraph (1) 
the following: 
‘‘(2) For any taxable year beginning in any cal-
endar year after 2012, an amount equal to the appli-
cable percentage (as determined under subsection 
(l)) of that part of net earnings from self-employ-
ment which is in excess of the difference (not to be 
less than zero) between— 
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141 
‘‘(A) an amount equal to the contribution 
and benefit base (as determined under section 
230) that is effective for such calendar year, 
and 
‘‘(B) the amount of the wages paid to such 
individual during such taxable year; or’’; and 
(B) by adding at the end the following: 
‘‘(l) For purposes of subsection (b)(2), the applicable 
percentage for a taxable year beginning in any calendar 
year referred to in such paragraph shall be equal to— 
‘‘(1) for 2013, 90 percent; 
‘‘(2) for 2014 through 2021, the applicable per-
centage under this subsection for the previous year, 
decreased by 10 percentage points; and 
‘‘(3) for 2022 and each year thereafter, 0 per-
cent.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply with respect to taxable 
years beginning during or after calendar year 2013. 
SEC. 222. ADJUSTMENTS TO BEND POINTS IN DETER-
MINING PRIMARY INSURANCE AMOUNT. 
(a) IN GENERAL.—Section 215(a)(1) of the Social 
Security Act (42 U.S.C. 415(a)(1)) is amended— 
(1) in subparagraph (A)— 
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142 
(A) in clause (ii), by striking ‘‘and’’ at the 
end; 
(B) in clause (iii), by striking the comma 
at the end and inserting the following: ‘‘but do 
not exceed the amount established for purposes 
of this clause by subparagraph (B), and’’; and 
(C) by adding at the end the following new 
clause: 
‘‘(iv) 5 percent of the individual’s average in-
dexed monthly earnings to the extent that such 
earnings exceed the amount established for purposes 
of clause (iii),’’; and 
(2) in subparagraph (B)— 
(A) in clause (i), by striking ‘‘clause (i) 
and (ii) of subparagraph (A) shall be $180 and 
$1,085’’ and inserting ‘‘clauses (i), (ii), and (iii) 
of subparagraph (A) shall be $180, $1,085, and 
$2,000’’; 
(B) by redesignating clause (iii) as clause 
(iv); and 
(C) by inserting after clause (ii) the fol-
lowing new clause: 
‘‘(iii) For individuals who initially become eligi-
ble for old-age or disability insurance benefits, or 
who die (before becoming eligible for such benefits) 
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143 
in any calendar year after 2012, the amount deter-
mined under clause (i) of this subparagraph for pur-
poses of subparagraph (A)(i) for such calendar year 
shall be increased by— 
‘‘(I) for calendar year 2013, 1.5 percent; 
‘‘(II) for each of calendar years 2014 
through 2021, the percent determined under 
this clause for the preceding year increased by 
1.5 percentage points; and 
‘‘(III) for calendar year 2022 and each 
year thereafter, 15 percent.’’. 
(b) TECHNICAL AMENDMENT.—Section 215(e)(1) of 
such Act (42 U.S.C. 415(e)(1)) is amended— 
(1) by striking ‘‘before 1975, and the excess’’ 
and inserting ‘‘before 1975, the excess’’; and 
(2) by inserting ‘‘and for years after 2012, the 
amount of remuneration and net earnings from self- 
employment paid to or derived by such individual 
during such year after application of sections 
209(a)(1)(J) and 211(b)(2),’’ after ‘‘such contribu-
tion and benefit base is effective,’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to individuals who ini-
tially become eligible (within the meaning of section 
215(a)(3)(B) of the Social Security Act) for old-age or dis-
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144 
ability insurance benefits under title II of the Social Secu-
rity Act, or who die (before becoming eligible for such ben-
efits), in any calendar year after 2012. 
SEC. 223. CONSUMER PRICE INDEX FOR ELDERLY CON-
SUMERS. 
(a) IN GENERAL.—The Bureau of Labor Statistics 
of the Department of Labor shall prepare and publish an 
index for each calendar month to be known as the ‘‘Con-
sumer Price Index for Elderly Consumers’’ that indicates 
changes over time in expenditures for consumption which 
are typical for individuals in the United States who have 
attained early retirement age (as defined under section 
216(l)(2) of the Social Security Act (42 U.S.C. 416(l)(2)), 
for purposes of an old-age, wife’s, or husband’s insurance 
benefit). 
(b) EFFECTIVE DATE.—Subsection (a) shall apply 
with respect to calendar months ending on or after June 
30 of the calendar year in which this Act is enacted. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out the provisions of this section. 
SEC. 224. COMPUTATION OF COST-OF-LIVING INCREASES 
FOR SOCIAL SECURITY BENEFITS. 
(a) IN GENERAL.—Section 215(i) of the Social Secu-
rity Act (42 U.S.C. 415(i)) is amended— 
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145 
(1) in paragraph (1)(G), by inserting before the 
period the following: ‘‘, and, with respect to any 
monthly insurance benefit payable under this title, 
effective for adjustments under this subsection to 
the primary insurance amount on which such benefit 
is based (or to any such benefit under section 227 
or 228), the applicable Consumer Price Index shall 
be deemed to be the Consumer Price Index for El-
derly Consumers and such primary insurance 
amount shall be deemed adjusted under this sub-
section using such Index’’; and 
(2) in paragraph (4), by striking ‘‘and by sec-
tion 9001’’ and inserting ‘‘, by section 9001’’, and 
by inserting after ‘‘1986,’’ the following: ‘‘and by 
section 224(a) of the Rebuild America Act,’’. 
(b) CONFORMING
AMENDMENTS
IN
APPLICABLE 
FORMER LAW.—Section 215(i)(1)(C) of the Social Secu-
rity Act, as in effect in December 1978 and applied in 
certain cases under the provisions of such Act in effect 
after December 1978, is amended by inserting before the 
period the following: ‘‘, and, with respect to any monthly 
insurance benefit payable under this title, effective for ad-
justments under this subsection to the primary insurance 
amount on which such benefit is based (or to any such 
benefit under section 227 or 228), the applicable Con-
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146 
sumer Price Index shall be deemed to be the Consumer 
Price Index for Elderly Consumers and such primary in-
surance amount shall be deemed adjusted under this sub-
section using such Index’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to determinations made by the 
Commissioner of Social Security under section 215(i)(2) 
of the Social Security Act (42 U.S.C. 415(i)(2)), with re-
spect to cost-of-living computation quarters ending on or 
after September 30, 2013. 
SEC. 225. NON-APPLICATION OF INCREASE IN SOCIAL SE-
CURITY BENEFITS FOR OTHER FEDERAL OR 
FEDERALLY ASSISTED PROGRAMS. 
Any increase in old-age or disability insurance bene-
fits under title II of the Social Security Act as a result 
of the amendments made by this Act shall not be regarded 
as income and shall not be regarded as a resource for any 
month after December 2012, for purposes of determining 
the eligibility of the recipient (or the recipient’s spouse or 
family) for benefits or assistance, or the amount or extent 
of benefits or assistance, under any Federal program or 
under any State or local program financed in whole or in 
part with Federal funds. 
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147 
Subtitle C—Protecting Overtime 
Pay for Working Americans 
SEC. 231. SALARY THRESHOLDS, HIGHLY COMPENSATED 
EMPLOYEES, AND PRIMARY DUTIES. 
(a) SALARY THRESHOLDS FOR EXECUTIVE, ADMIN-
ISTRATIVE, AND PROFESSIONAL EMPLOYEES.—Section 
13 of the Fair Labor Standards Act of 1938 (29 U.S.C. 
213) is amended— 
(1) in subsection (a)(1), by inserting before ‘‘; 
or’’ the following: ‘‘, subject to the requirement that 
any employee who the Secretary determines is re-
quired to be paid on a salary or fee basis in order 
to be exempt under this subsection shall, in order to 
be exempt, be compensated at a rate of not less than 
the salary rate (or equivalent fee basis) determined 
under subsection (k)’’; and 
(2) by adding at the end the following: 
‘‘(k) SALARY RATES.— 
‘‘(1) IN GENERAL.—The salary rate (or equiva-
lent fee basis) determined under this subsection for 
purposes of subsection (a)(1) shall be— 
‘‘(A) beginning 1 year after the first day 
of the third month that begins after the date of 
enactment of the Rebuild America Act, $655 
per week; 
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148 
‘‘(B) beginning 2 years after that first day, 
$855 per week; 
‘‘(C) beginning 3 years after that first day, 
$1,045 per week; and 
‘‘(D) beginning on the date that is 4 years 
after that first day, and on that first day in 
each succeeding year, an adjusted amount that 
is— 
‘‘(i) not less than the amount in effect 
under this paragraph on the day before the 
date the adjustment is being made; 
‘‘(ii) increased from such amount by 
the annual percentage increase in the Con-
sumer Price Index for Urban Wage Earn-
ers and Clerical Workers; and 
‘‘(iii) rounded to the nearest multiple 
of $1.00. 
‘‘(2) SPECIAL
RULE.—Notwithstanding para-
graph (1), for any employee for whom the minimum 
wage would otherwise be determined pursuant to 
section 8103(b) of the Fair Minimum Wage Act of 
2007 (29 U.S.C. 206 note), the Secretary may de-
termine, through regulations, the salary rate (or 
equivalent fee basis).’’. 
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149 
(b) DEFINITIONS.—Section 13 of the Fair Labor 
Standards Act of 1938 (as amended by subsection (a)) 
(29 U.S.C. 213) is further amended by adding at the end 
the following: 
‘‘(l) DEFINITIONS.— 
‘‘(1) ANNUAL
PERCENTAGE
INCREASE; CON-
SUMER
PRICE
INDEX.—For purposes of this sec-
tion— 
‘‘(A) the term ‘annual percentage in-
crease’, when used in reference to the Con-
sumer Price Index for Urban Wage Earners 
and Clerical Workers, means the annual per-
centage increase calculated by the Secretary 
under section 6(h)(2), as amended by section 
231 of the Rebuild America Act; and 
‘‘(B) the term ‘Consumer Price Index for 
Urban Wage Earners and Clerical Workers’ 
means the Consumer Price Index for Urban 
Wage Earners and Clerical Workers (United 
States city average, all items, not seasonally ad-
justed), or its successor publication, as deter-
mined by the Bureau of Labor Statistics. 
‘‘(2) PRIMARY DUTY.—For purposes of para-
graphs (1) and (17) of subsection (a), including the 
regulations interpreting such paragraphs, any ref-
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erence to the term ‘primary duty’ (or a successor 
term) when used with respect to determining if an 
employee is employed in a bona fide executive, ad-
ministrative, or professional capacity, or in a posi-
tion described in subsection (a)(17), means the duty 
that an employee spends more than 50 percent of 
the employee’s work hours per week performing.’’. 
(c) HIGHLY COMPENSATED EMPLOYEES.— 
(1) IN GENERAL.—If the Secretary of Labor, in 
the Secretary’s discretion, determines that an em-
ployee may be exempt for purposes of section 
13(a)(1) of the Fair Labor Standards Act of 1938 
(29 U.S.C. 213(a)(1)), as a highly compensated em-
ployee (as such term is defined and delimited by the 
Secretary), then the level of total annual compensa-
tion necessary for such exemption shall be— 
(A) for the calendar year that includes the 
effective date of this subsection, $120,000; and 
(B) for each succeeding calendar year, an 
adjusted amount that is— 
(i) not less than the amount in effect 
under this paragraph on the day before the 
date such adjustment is being made; 
(ii) increased from such amount by 
the annual percentage increase in the Con-
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151 
sumer Price Index for Urban Wage Earn-
ers and Clerical Workers; and 
(iii) rounded to the nearest multiple of 
$1.00. 
(2) DEFINITIONS.—For purposes of this sub-
section, the terms ‘‘annual percentage increase’’ and 
‘‘Consumer Price Index for Urban Wage Earners 
and Clerical Workers’’ have the meanings given the 
terms in section 13(l) of the Fair Labor Standards 
Act of 1938 (29 U.S.C. 213(l)), as added by sub-
section (b). 
(3) RULE OF CONSTRUCTION.—Nothing in this 
subsection or the regulations promulgated by the 
Secretary of Labor under this subsection shall over-
ride any provision of a collective bargaining agree-
ment that provides for overtime employment com-
pensation, or rights to such compensation, that ex-
ceed the requirements of the Fair Labor Standards 
Act of 1938 (29 U.S.C. 201 et seq.). 
(d) PUBLICATION OF NOTICE.—Not later than 60 
days before the date any increase in the salary rate (or 
equivalent fee basis) required under section 13(k)(1)(D) 
of the Fair Labor Standards Act of 1938 (29 U.S.C. 
213(a)(k)(1)(D)) takes effect, or any increase in the 
amount of compensation required for highly compensated 
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employee exemption required under subsection (c) takes 
effect, the Secretary of Labor shall publish, in the Federal 
Register and on the website of the Department of Labor, 
a notice announcing the adjusted salary rate (or equiva-
lent fee basis) requirement or adjusted amount of com-
pensation, respectively. The provisions of section 553 of 
title 5, United States Code, shall not apply to any notice 
required under this subsection. 
(e) EFFECTIVE DATE.—This section, and the amend-
ments made by this section, shall take effect on the date 
that is 1 year after the first day of the third month that 
begins after the date of enactment of the Rebuild America 
Act. 
Subtitle D—Preventing Americans 
From Having To Choose Be-
tween Their Health and Their 
Paycheck 
SEC. 241. SHORT TITLE. 
This subtitle may be cited as the ‘‘Healthy Families 
Act’’. 
SEC. 242. FINDINGS. 
Congress makes the following findings: 
(1) Working Americans need time to meet their 
own health care needs and to care for family mem-
bers, including their children, spouse, parents, and 
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153 
parents-in-law, and other children and adults for 
whom they are caregivers. 
(2) Health care needs include preventive health 
care, diagnostic procedures, medical treatment, and 
recovery in response to short- and long-term ill-
nesses and injuries. 
(3) Providing employees time off to meet health 
care needs ensures that they will be healthier in the 
long run. Preventive care helps avoid illnesses and 
injuries and routine medical care helps detect ill-
nesses early and shorten their duration. 
(4) When parents are available to care for their 
children who become sick, children recover faster, 
more serious illnesses are prevented, and children’s 
overall mental and physical health improve. In a 
2009 study published in the American Journal of 
Public Health, 81 percent of parents of a child with 
special health care needs reported that taking leave 
from work to be with their child had a ‘‘good’’ or 
‘‘very good’’ effect on their child’s physical health. 
Similarly, 85 percent of parents of such a child 
found that taking such leave had a ‘‘good’’ or ‘‘very 
good’’ effect on their child’s emotional health. 
(5) When parents cannot afford to miss work 
and must send children with contagious illnesses to 
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child care centers or schools, infection can spread 
rapidly through child care centers and schools. 
(6) Providing paid sick time improves public 
health by reducing infectious disease. Policies that 
make it easier for sick adults and children to be iso-
lated at home reduce the spread of infectious dis-
ease. 
(7) Routine medical care reduces medical costs 
by detecting and treating illness and injury early, 
decreasing the need for emergency care. These sav-
ings benefit public and private payers of health in-
surance, including private businesses. 
(8) The provision of individual and family sick 
time by large and small businesses, both here in the 
United States and elsewhere, demonstrates that pol-
icy solutions are both feasible and affordable in a 
competitive economy. A 2009 study by the Center 
for Economic and Policy Research found that, of 22 
countries with comparable economies, the United 
States was 1 of only 3 countries that did not provide 
any paid time off for workers with short-term ill-
nesses. 
(9) Measures that ensure that employees are in 
good health and do not need to worry about unmet 
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family health problems help businesses by promoting 
productivity and reducing employee turnover. 
(10) The American Productivity Audit com-
pleted in 2003 found that lost productivity due to ill-
ness costs $226,000,000,000 annually, and that 71 
percent of that cost stems from presenteeism, the 
practice of employees coming to work despite illness. 
Studies in the Journal of Occupational and Environ-
mental Medicine, the Employee Benefit News, and 
the 
Harvard 
Business 
Review 
show 
that 
presenteeism is a larger productivity drain than ei-
ther absenteeism or short-term disability. 
(11) The absence of paid sick time has forced 
Americans to make untenable choices between need-
ed income and jobs on the one hand and caring for 
their own and their family’s health on the other. 
(12) Nearly 40 percent of the private-sector 
workforce (about 40,000,000 workers) lack paid sick 
time. Another 4,000,000 theoretically have access to 
sick time, but have not been on the job long enough 
to use it. Millions more lack sick time they can use 
to care for a sick child or ill family member. 
(13) Workers’ access to paid sick time varies 
dramatically by wage level. For private-sector work-
ers in the lowest quartile of earners, 68 percent lack 
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paid sick time. For workers in the next 2 quartiles, 
34 and 25 percent, respectively, lack paid sick time. 
Even for workers in the highest income quartile, 16 
percent lack paid sick time. In addition, millions of 
workers cannot use paid sick time to care for ill 
family members. 
(14) Due to the roles of men and women in so-
ciety, the primary responsibility for family caregiving 
often falls on women, and such responsibility affects 
the working lives of women more than it affects the 
working lives of men. 
(15) An increasing number of men are also tak-
ing on caregiving obligations, and men who request 
paid time for caregiving purposes are often denied 
accommodation or penalized because of stereotypes 
that caregiving is only ‘‘women’s work’’. 
(16) Employers’ reliance on persistent stereo-
types about the ‘‘proper’’ roles of both men and 
women in the workplace and in the home continues 
a cycle of discrimination and fosters stereotypical 
views about women’s commitment to work and their 
value as employees. 
(17) Employment standards that apply to only 
one gender have serious potential for encouraging 
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employers to discriminate against employees and ap-
plicants for employment who are of that gender. 
(18) It is in the national interest to ensure that 
all Americans can care for their own health and the 
health of their families while prospering at work. 
(19) Nearly 1 in 3 American women report 
physical or sexual abuse by a husband or boyfriend 
at some point in their lives. Domestic violence also 
affects men. Women account for about 85 percent of 
the victims of domestic violence and men account for 
approximately 15 percent of the victims. Therefore, 
women disproportionately need time off to care for 
their health or to find solutions, such as obtaining 
a restraining order or finding housing, to avoid or 
prevent physical or sexual abuse. 
(20) One study showed that 85 percent of do-
mestic violence victims at a women’s shelter who 
were employed missed work because of abuse. The 
mean number of days of paid work lost by a rape 
victim is 8.1 days, by a victim of physical assault is 
7.2 days, and by a victim of stalking is 10.1 days. 
Nationwide, domestic violence victims lose almost 
8,000,000 days of paid work per year. 
(21) Without paid sick days that can be used 
to address the effects of domestic violence, these vic-
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158 
tims are in grave danger of losing their jobs. One 
survey found that 96 percent of employed domestic 
violence victims experienced problems at work re-
lated to the violence. The Government Accountability 
Office similarly found that 24 to 52 percent of vic-
tims report losing a job due, at least in part, to do-
mestic violence. The loss of employment can be par-
ticularly devastating for victims of domestic violence, 
who often need economic security to ensure safety. 
(22) The Centers for Disease Control and Pre-
vention has estimated that domestic violence costs 
over $700,000,000 annually due to the victims’ lost 
productivity in employment. 
(23) Efforts to assist abused employees result 
in positive outcomes for employers as well as em-
ployees because employers can retain workers who 
might otherwise be compelled to leave. 
SEC. 243. PURPOSES. 
The purposes of this subtitle are— 
(1) to ensure that all working Americans can 
address their own health needs and the health needs 
of their families by requiring employers to permit 
employees to earn up to 56 hours of paid sick time 
including paid time for family care; 
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(2) to diminish public and private health care 
costs by enabling workers to seek early and routine 
medical care for themselves and their family mem-
bers; 
(3) to assist employees who are, or whose fam-
ily members are, victims of domestic violence, sexual 
assault, or stalking, by providing the employees with 
paid time away from work to allow the victims to re-
ceive treatment and to take the necessary steps to 
ensure their protection; 
(4) to accomplish the purposes described in 
paragraphs (1) through (3) in a manner that is fea-
sible for employers; and 
(5) consistent with the provision of the 14th 
Amendment to the Constitution relating to equal 
protection of the laws, and pursuant to Congress’ 
power to enforce that provision under section 5 of 
that Amendment— 
(A) to accomplish the purposes described 
in paragraphs (1) through (3) in a manner that 
minimizes the potential for employment dis-
crimination on the basis of sex by ensuring gen-
erally that paid sick time is available for eligible 
medical reasons on a gender-neutral basis; and 
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(B) to promote the goal of equal employ-
ment opportunity for women and men. 
SEC. 244. DEFINITIONS. 
In this subtitle: 
(1) CHILD.—The term ‘‘child’’ means a biologi-
cal, foster, or adopted child, a stepchild, a legal 
ward, or a child of a person standing in loco 
parentis, who is— 
(A) under 18 years of age; or 
(B) 18 years of age or older and incapable 
of self-care because of a mental or physical dis-
ability. 
(2) DOMESTIC VIOLENCE.—The term ‘‘domestic 
violence’’ has the meaning given the term in section 
40002(a) of the Violence Against Women Act of 
1994 (42 U.S.C. 13925(a)), except that the ref-
erence in such section to the term ‘‘jurisdiction re-
ceiving grant monies’’ shall be deemed to mean the 
jurisdiction in which the victim lives or the jurisdic-
tion in which the employer involved is located. 
(3) EMPLOYEE.—The term ‘‘employee’’ means 
an individual who is— 
(A)(i) an employee, as defined in section 
3(e) of the Fair Labor Standards Act of 1938 
(29 U.S.C. 203(e)), who is not covered under 
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subparagraph (E), including such an employee 
of the Library of Congress, except that a ref-
erence in such section to an employer shall be 
considered to be a reference to an employer de-
scribed in clauses (i)(I) and (ii) of paragraph 
(4)(A); or 
(ii) an employee of the Government Ac-
countability Office; 
(B) a State employee described in section 
304(a) of the Government Employee Rights Act 
of 1991 (42 U.S.C. 2000e–16c(a)); 
(C) a covered employee, as defined in sec-
tion 101 of the Congressional Accountability 
Act of 1995 (2 U.S.C. 1301), other than an ap-
plicant for employment; 
(D) a covered employee, as defined in sec-
tion 411(c) of title 3, United States Code; or 
(E) a Federal officer or employee covered 
under subchapter V of chapter 63 of title 5, 
United States Code. 
(4) EMPLOYER.— 
(A) IN GENERAL.—The term ‘‘employer’’ 
means a person who is— 
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162 
(i)(I) a covered employer, as defined 
in subparagraph (B), who is not covered 
under subclause (V); 
(II) an entity employing a State em-
ployee described in section 304(a) of the 
Government Employee Rights Act of 1991; 
(III) an employing office, as defined 
in section 101 of the Congressional Ac-
countability Act of 1995; 
(IV) an employing office, as defined in 
section 411(c) of title 3, United States 
Code; or 
(V) an employing agency covered 
under subchapter V of chapter 63 of title 
5, United States Code; and 
(ii) is engaged in commerce (including 
government), or an industry or activity af-
fecting commerce (including government), 
as defined in subparagraph (B)(iii). 
(B) COVERED EMPLOYER.— 
(i) IN
GENERAL.—In subparagraph 
(A)(i)(I), the term ‘‘covered employer’’— 
(I) means any person engaged in 
commerce or in any industry or activ-
ity affecting commerce who employs 
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15 or more employees for each work-
ing day during each of 20 or more 
calendar workweeks in the current or 
preceding calendar year; 
(II) includes— 
(aa) any person who acts, 
directly or indirectly, in the inter-
est of an employer to any of the 
employees of such employer; and 
(bb) any successor in inter-
est of an employer; 
(III) includes any ‘‘public agen-
cy’’, as defined in section 3(x) of the 
Fair Labor Standards Act of 1938 
(29 U.S.C. 203(x)); and 
(IV) includes the Government 
Accountability Office and the Library 
of Congress. 
(ii) PUBLIC
AGENCY.—For purposes 
of clause (i)(III), a public agency shall be 
considered to be a person engaged in com-
merce or in an industry or activity affect-
ing commerce. 
(iii) DEFINITIONS.—For purposes of 
this subparagraph: 
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