(iv) Solid waste disposal facility. 
(v) Drinking water treatment facility. 
(vi) Levee. 
(vii) Open space management system. 
(D) 
ENERGY
INFRASTRUCTURE 
PROJECT.—The term ‘‘energy infrastructure 
project’’ means the construction, alteration, or 
repair of the following subsectors: 
(i) Pollution reduced energy genera-
tion. 
(ii) Transmission and distribution. 
(iii) Storage. 
(iv) Energy efficiency enhancements 
for buildings, including public and com-
mercial buildings. 
(E) BOARD AUTHORITY TO MODIFY SUB-
SECTORS.—The Board of Directors may make 
modifications, at the discretion of the Board, to 
the subsectors described in this paragraph by a 
vote of not fewer than 5 of the voting members 
of the Board of Directors. 
(10) INVESTMENT PROSPECTUS.— 
(A) The term ‘‘investment prospectus’’ 
means the processes and publications described 
below that will guide the priorities and strategic 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00082
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
focus for AIFA’s investments. The investment 
prospectus shall follow rulemaking procedures 
under section 553 of title 5, United States 
Code. 
(B) AIFA shall publish a detailed descrip-
tion of its strategy in an investment prospectus 
within one year of the enactment of this sub-
chapter. The investment prospectus shall— 
(i) specify what AIFA shall consider 
significant to the economic competitiveness 
of the United States or a region thereof in 
a manner consistent with the primary ob-
jective; 
(ii) specify the priorities and strategic 
focus of AIFA in forwarding its strategic 
objectives and carrying out AIFA strategy; 
(iii) specify the priorities and strategic 
focus of AIFA in promoting greater effi-
ciency in the movement of freight; 
(iv) specify the priorities and strategic 
focus of AIFA in promoting the use of in-
novation and best practices in the plan-
ning, design, development and delivery of 
projects; 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00083
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
(v) describe in detail the framework 
and methodology for calculating applica-
tion qualification scores and associated 
ranges as specified in this subchapter, 
along with the data to be requested from 
applicants and the mechanics of calcula-
tions to be applied to that data to deter-
mine qualification scores and ranges; 
(vi) describe how selection criteria will 
be applied by the Chief Executive Officer 
in determining the competitiveness of an 
application and its qualification score and 
range relative to other current applications 
and previously funded applications; and 
(vii) describe how the qualification 
score and range methodology and project 
selection framework are consistent with 
maximizing AIFA goals in both urban and 
rural areas. 
(C) The investment prospectus and any 
subsequent updates thereto shall be approved 
by a majority vote of the Board of Directors 
prior to publication. 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00084
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
(D) AIFA shall update the investment pro-
spectus on every biennial anniversary of its 
original publication. 
(11) INVESTMENT-GRADE
RATING.—The term 
‘‘investment-grade rating’’ means a rating of BBB 
minus, Baa3, or higher assigned to an infrastructure 
project by a ratings agency. 
(12) LOAN GUARANTEE.—The term ‘‘loan guar-
antee’’ has the same meaning as in section 502 of 
the Federal Credit Reform Act of 1990 (2 U.S.C. 
661a). 
(13) 
PUBLIC-PRIVATE
PARTNERSHIP.—The 
term ‘‘public-private partnership’’ means any eligible 
entity— 
(A)(i) which is undertaking the develop-
ment of all or part of an infrastructure project 
that will have a public benefit, pursuant to re-
quirements established in one or more contracts 
between the entity and a State or an instru-
mentality of a State; or 
(ii) the activities of which, with respect to 
such an infrastructure project, are subject to 
regulation by a State or any instrumentality of 
a State; 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00085
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
(B) which owns, leases, or operates or will 
own, lease, or operate, the project in whole or 
in part; and 
(C) the participants in which include not 
fewer than 1 nongovernmental entity with sig-
nificant investment and some control over the 
project or project vehicle. 
(14) RURAL INFRASTRUCTURE PROJECT.—The 
term ‘‘rural infrastructure project’’ means an infra-
structure project in a rural area, as that term is de-
fined in section 343(a)(13)(A) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 
1991(a)(13)(A)). 
(15) SECRETARY.—Unless the context other-
wise requires, the term ‘‘Secretary’’ means the Sec-
retary of the Treasury or the designee thereof. 
(16) SENIOR MANAGEMENT.—The term ‘‘senior 
management’’ means the chief financial officer, chief 
risk officer, chief compliance officer, general counsel, 
chief lending officer, and chief operations officer of 
AIFA established under section 249, and such other 
officers as the Board of Directors may, by majority 
vote, add to senior management. 
(17) STATE.—The term ‘‘State’’ includes the 
District of Columbia, Puerto Rico, Guam, American 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00086
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
Samoa, the Virgin Islands, the Commonwealth of 
Northern Mariana Islands, and any other territory 
of the United States. 
PART I—AMERICAN INFRASTRUCTURE 
FINANCING AUTHORITY 
SEC. 245. ESTABLISHMENT AND GENERAL AUTHORITY OF 
AIFA. 
(a) ESTABLISHMENT OF AIFA.—The American In-
frastructure Financing Authority is established as a whol-
ly owned Government corporation. 
(b) GENERAL AUTHORITY OF AIFA.—AIFA shall 
provide direct loans and loan guarantees to facilitate infra-
structure projects that are both economically viable and 
of regional or national significance, and shall have such 
other authority, as provided in this Act. 
(c) INCORPORATION.— 
(1) IN GENERAL.—The Board of Directors first 
appointed shall be deemed the incorporator of AIFA, 
and the incorporation shall be held to have been ef-
fected from the date of the first meeting of the 
Board of Directors. 
(2) CORPORATE OFFICE.—AIFA shall— 
(A) maintain an office in Washington, DC; 
and 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00087
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
(B) for purposes of venue in civil actions, 
be considered to be a resident of Washington, 
DC. 
(d) RESPONSIBILITY OF THE SECRETARY.—The Sec-
retary shall take such action as may be necessary to assist 
in implementing AIFA, and in carrying out the purpose 
of this Act. 
(e) RULE OF CONSTRUCTION.—Chapter 91 of title 
31, United States Code, does not apply to AIFA, unless 
otherwise specifically provided in this Act. 
SEC. 246. VOTING MEMBERS OF THE BOARD OF DIREC-
TORS. 
(a) VOTING MEMBERSHIP OF THE BOARD OF DIREC-
TORS.— 
(1) IN GENERAL.—AIFA shall have a Board of 
Directors consisting of 7 voting members appointed 
by the President, by and with the advice and consent 
of the Senate, not more than 4 of whom shall be 
from the same political party. 
(2) CHAIRPERSON.—One of the voting members 
of the Board of Directors shall be designated by the 
President to serve as Chairperson thereof. 
(3) CONGRESSIONAL RECOMMENDATIONS.—Not 
later than 30 days after the date of enactment of 
this Act, the majority leader of the Senate, the mi-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00088
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
nority leader of the Senate, the Speaker of the 
House of Representatives, and the minority leader of 
the House of Representatives shall each submit a 
recommendation to the President for appointment of 
a member of the Board of Directors, after consulta-
tion with the appropriate committees of Congress. 
(b) VOTING RIGHTS.—Each voting member of the 
Board of Directors shall have an equal vote in all decisions 
of the Board of Directors. 
(c) QUALIFICATIONS OF VOTING MEMBERS.—Each 
voting member of the Board of Directors shall— 
(1) be a citizen of the United States; and 
(2) have significant demonstrated expertise in— 
(A) the management and administration of 
a financial institution relevant to the operation 
of AIFA; or a public financial agency or author-
ity; 
(B) the financing, development, or oper-
ation of infrastructure projects; or 
(C) analyzing the economic benefits of in-
frastructure investment. 
(d) TERMS.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this Act, each voting member of the Board 
of Directors shall be appointed for a term of 4 years. 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00089
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
(2) INITIAL STAGGERED TERMS.—Of the voting 
members first appointed to the Board of Directors— 
(A) the initial Chairperson and 3 of the 
other voting members shall each be appointed 
for a term of 4 years; and 
(B) the remaining 3 voting members shall 
each be appointed for a term of 2 years. 
(3) DATE OF INITIAL NOMINATIONS.—The ini-
tial nominations for the appointment of all voting 
members of the Board of Directors shall be made 
not later than 60 days after the date of enactment 
of this Act. 
(4) BEGINNING OF TERM.—The term of each of 
the initial voting members appointed under this sec-
tion shall commence immediately upon the date of 
appointment, except that, for purposes of calculating 
the term limits specified in this subsection, the ini-
tial terms shall each be construed as beginning on 
January 22 of the year following the date of the ini-
tial appointment. 
(5) VACANCIES.—A vacancy in the position of 
a voting member of the Board of Directors shall be 
filled by the President, and a member appointed to 
fill a vacancy on the Board of Directors occurring 
before the expiration of the term for which the pred-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00090
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
ecessor was appointed shall be appointed only for 
the remainder of that term. 
(e) MEETINGS.— 
(1) OPEN TO THE PUBLIC; NOTICE.—Except as 
provided in paragraph (3), all meetings of the Board 
of Directors shall be— 
(A) open to the public; and 
(B) preceded by reasonable public notice. 
(2) FREQUENCY.—The Board of Directors shall 
meet not later than 60 days after the date on which 
all members of the Board of Directors are first ap-
pointed, at least quarterly thereafter, and otherwise 
at the call of either the Chairperson or 5 voting 
members of the Board of Directors. 
(3) EXCEPTION FOR CLOSED MEETINGS.—The 
voting members of the Board of Directors may, by 
majority vote, close a meeting to the public if, dur-
ing the meeting to be closed, there is likely to be dis-
closed proprietary or sensitive information regarding 
an infrastructure project under consideration for as-
sistance under this Act. The Board of Directors 
shall prepare minutes of any meeting that is closed 
to the public, and shall make such minutes available 
as soon as practicable, not later than 1 year after 
the date of the closed meeting, with any necessary 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00091
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
redactions to protect any proprietary or sensitive in-
formation. 
(4) QUORUM.—For purposes of meetings of the 
Board of Directors, 5 voting members of the Board 
of Directors shall constitute a quorum. 
(f) COMPENSATION
OF
MEMBERS.—Each voting 
member of the Board of Directors shall be compensated 
at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level III of the Executive 
Schedule under section 5314 of title 5, United States 
Code, for each day (including travel time) during which 
the member is engaged in the performance of the duties 
of the Board of Directors. 
(g) CONFLICTS OF INTEREST.—A voting member of 
the Board of Directors may not participate in any review 
or decision affecting an infrastructure project under con-
sideration for assistance under this Act, if the member has 
or is affiliated with an entity who has a financial interest 
in such project. 
SEC. 247. CHIEF EXECUTIVE OFFICER OF AIFA. 
(a) IN GENERAL.—The chief executive officer of 
AIFA shall be a nonvoting member of the Board of Direc-
tors, who shall be responsible for all activities of AIFA, 
and shall support the Board of Directors as set forth in 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00092
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
this Act and as the Board of Directors deems necessary 
or appropriate. 
(b) APPOINTMENT AND TENURE OF THE CHIEF EX-
ECUTIVE OFFICER.— 
(1) IN GENERAL.—The President shall appoint 
the chief executive officer, by and with the advice 
and consent of the Senate. 
(2) TERM.—The chief executive officer shall be 
appointed for a term of 6 years. 
(3) VACANCIES.—Any vacancy in the office of 
the chief executive officer shall be filled by the Presi-
dent, and the person appointed to fill a vacancy in 
that position occurring before the expiration of the 
term for which the predecessor was appointed shall 
be appointed only for the remainder of that term. 
(c) QUALIFICATIONS.—The chief executive officer— 
(1) shall have significant expertise in manage-
ment and administration of a financial institution, 
or significant expertise in the financing and develop-
ment of infrastructure projects, or significant exper-
tise in analyzing the economic benefits of infrastruc-
ture investment; and 
(2) may not— 
(A) hold any other public office; 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00093
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
(B) have any financial interest in an infra-
structure project then being considered by the 
Board of Directors, unless that interest is 
placed in a blind trust; or 
(C) have any financial interest in an in-
vestment institution or its affiliates or any 
other entity seeking or likely to seek financial 
assistance for any infrastructure project from 
AIFA, unless any such interest is placed in a 
blind trust for the tenure of the service of the 
chief executive officer plus 2 additional years. 
(d) RESPONSIBILITIES.—The chief executive officer 
shall have such executive functions, powers, and duties as 
may be prescribed by this Act, the bylaws of AIFA, or 
the Board of Directors, including— 
(1) responsibility for the development and im-
plementation of the strategy of AIFA, including— 
(A) the development and submission to the 
Board of Directors of the investment pro-
spectus, the annual business plans and budget; 
(B) the development and submission to the 
Board of Directors of a long-term strategic 
plan; and 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00094
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
(C) the development, revision, and submis-
sion to the Board of Directors of internal poli-
cies; and 
(2) responsibility for the management and over-
sight of the daily activities, decisions, operations, 
and personnel of AIFA, including— 
(A) the appointment of senior manage-
ment, subject to approval by the voting mem-
bers of the Board of Directors, and the hiring 
and termination of all other AIFA personnel; 
(B) requesting the detail, on a reimburs-
able basis, of personnel from any Federal agen-
cy having specific expertise not available from 
within AIFA, following which request the head 
of the Federal agency may detail, on a reim-
bursable basis, any personnel of such agency 
reasonably requested by the chief executive offi-
cer; 
(C) assessing and recommending in the 
first instance, for ultimate approval or dis-
approval by the Board of Directors, compensa-
tion and adjustments to compensation of senior 
management and other personnel of AIFA as 
may be necessary for carrying out the functions 
of AIFA; 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00095
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
(D) ensuring, in conjunction with the gen-
eral counsel of AIFA, that all activities of 
AIFA are carried out in compliance with appli-
cable law; 
(E) overseeing the involvement of AIFA in 
all projects, including— 
(i) developing eligible projects for 
AIFA financial assistance; 
(ii) determining the terms and condi-
tions of all financial assistance packages; 
(iii) 
monitoring 
all 
infrastructure 
projects assisted by AIFA, including re-
sponsibility for ensuring that the proceeds 
of any loan made, guaranteed, or partici-
pated in are used only for the purposes for 
which the loan or guarantee was made; 
(iv) preparing and submitting for ap-
proval by the Board of Directors the docu-
ments required under paragraph (1); and 
(v) ensuring the implementation of de-
cisions of the Board of Directors; and 
(F) such other activities as may be nec-
essary or appropriate in carrying out this Act. 
(e) COMPENSATION.— 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00096
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
(1) IN
GENERAL.—Any compensation assess-
ment or recommendation by the chief executive offi-
cer under this section shall be without regard to the 
provisions of chapter 51 or subchapter III of chapter 
53 of title 5, United States Code. 
(2) CONSIDERATIONS.—The compensation as-
sessment or recommendation required under this 
subsection shall take into account merit principles, 
where applicable, as well as the education, experi-
ence, level of responsibility, geographic differences, 
and retention and recruitment needs in determining 
compensation of personnel. 
SEC. 248. POWERS AND DUTIES OF THE BOARD OF DIREC-
TORS. 
The Board of Directors shall— 
(1) as soon as is practicable after the date on 
which all members are appointed, approve or dis-
approve senior management appointed by the chief 
executive officer; 
(2) not later than 180 days after the date on 
which all members are appointed— 
(A) develop and approve the bylaws of 
AIFA, including bylaws for the regulation of 
the affairs and conduct of the business of 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00097
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
AIFA, consistent with the purpose, goals, objec-
tives, and policies set forth in this Act; 
(B) establish subcommittees, including an 
audit committee that is composed solely of 
members of the Board of Directors who are 
independent of the senior management of 
AIFA; 
(C) develop and approve, in consultation 
with senior management, a conflict-of-interest 
policy for the Board of Directors and for senior 
management; 
(D) approve or disapprove internal policies 
that the chief executive officer shall submit to 
the Board of Directors, including— 
(i) policies regarding the loan applica-
tion and approval process, including— 
(I) disclosure and application 
procedures to be followed by entities 
in the course of nominating infra-
structure projects for assistance under 
this Act; 
(II) guidelines for the selection 
and approval of projects; 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00098
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
(III) specific criteria for deter-
mining eligibility for project selection, 
consistent with title II; and 
(IV) standardized terms and con-
ditions, fee schedules, or legal require-
ments of a contract or program, so as 
to carry out this Act; and 
(ii) operational guidelines; and 
(E) approve or disapprove a multi-year or 
1-year business plan and budget for AIFA; 
(3) ensure that AIFA is at all times operated 
in a manner that is consistent with this Act, by— 
(A) monitoring and assessing the effective-
ness of AIFA in achieving its strategic goals; 
(B) periodically reviewing internal policies; 
(C) reviewing and approving annual busi-
ness plans, annual budgets, and long-term 
strategies submitted by the chief executive offi-
cer; 
(D) reviewing and approving annual re-
ports submitted by the chief executive officer; 
(E) engaging one or more external audi-
tors, as set forth in this Act; and 
(F) reviewing and approving all changes to 
the organization of senior management; 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00099
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
100 
(4) appoint and fix, by a vote of 5 of the 7 vot-
ing members of the Board of Directors, and without 
regard to the provisions of chapter 51 or subchapter 
III of chapter 53 of title 5, United States Code, the 
compensation and adjustments to compensation of 
all AIFA personnel, and where, in appointing and 
fixing any compensation or adjustments to com-
pensation under this paragraph, the Board shall— 
(A) consult with, and seek to maintain 
comparability with, other comparable Federal 
personnel; 
(B) consult with the Office of Personnel 
Management; and 
(C) carry out such duties consistent with 
merit principles, where applicable, as well as the 
education, experience, level of responsibility, ge-
ographic differences, and retention and recruit-
ment needs in determining compensation of per-
sonnel; 
(5) establish such other criteria, requirements, 
or procedures as the Board of Directors may con-
sider to be appropriate in carrying out this Act; 
(6) serve as the primary liaison for AIFA in 
interactions with Congress, the Executive Branch, 
and State and local governments, and to represent 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00100
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
101 
the interests of AIFA in such interactions and oth-
ers; 
(7) approve by a vote of 5 of the 7 voting mem-
bers of the Board of Directors any changes to the 
bylaws or internal policies of AIFA; 
(8) have the authority and responsibility— 
(A) to oversee entering into and carry out 
such contracts, leases, cooperative agreements, 
or other transactions as are necessary to carry 
out this Act with— 
(i) any Federal department or agency; 
(ii) any State, territory, or possession 
(or any political subdivision thereof, includ-
ing State infrastructure banks) of the 
United States; and 
(iii) any individual, public-private 
partnership, firm, association, or corpora-
tion; 
(B) to approve of the acquisition, lease, 
pledge, exchange, and disposal of real and per-
sonal property by AIFA and otherwise approve 
the exercise by AIFA of all of the usual inci-
dents of ownership of property, to the extent 
that the exercise of such powers is appropriate 
to and consistent with the purposes of AIFA; 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00101
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
102 
(C) to determine the character of, and the 
necessity for, the obligations and expenditures 
of AIFA, and the manner in which the obliga-
tions and expenditures will be incurred, allowed, 
and paid, subject to this Act and other Federal 
law specifically applicable to wholly owned Fed-
eral corporations; 
(D) to execute, in accordance with applica-
ble bylaws and regulations, appropriate instru-
ments; 
(E) to approve other forms of credit en-
hancement that AIFA may provide to eligible 
projects, as long as the forms of credit enhance-
ments are consistent with the purposes of this 
Act and terms set forth in title II; 
(F) to exercise all other lawful powers 
which are necessary or appropriate to carry out, 
and are consistent with, the purposes of AIFA; 
(G) to sue or be sued in the corporate ca-
pacity of AIFA in any court of competent juris-
diction; 
(H) to indemnify the members of the 
Board of Directors and officers of AIFA for 
any liabilities arising out of the actions of the 
members and officers in such capacity, in ac-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00102
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
103 
cordance with, and subject to the limitations 
contained in this Act; 
(I) to review all financial assistance pack-
ages to all eligible infrastructure projects, as 
submitted by the chief executive officer and to 
approve, postpone, or deny the same by major-
ity vote; 
(J) to review all restructuring proposals 
submitted by the chief executive officer, includ-
ing assignation, pledging, or disposal of the in-
terest of AIFA in a project, including payment 
or income from any interest owned or held by 
AIFA, and to approve, postpone, or deny the 
same by majority vote; and 
(K) to enter into binding commitments, as 
specified in approved financial assistance pack-
ages; 
(9) delegate to the chief executive officer those 
duties that the Board of Directors deems appro-
priate, to better carry out the powers and purposes 
of the Board of Directors under this section; and 
(10) to approve a maximum aggregate amount 
of outstanding obligations of AIFA at any given 
time, taking into consideration funding, and the size 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00103
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
104 
of AIFA’s addressable market for infrastructure 
projects. 
SEC. 249. SENIOR MANAGEMENT. 
(a) IN GENERAL.—Senior management shall support 
the chief executive officer in the discharge of the respon-
sibilities of the chief executive officer. 
(b) APPOINTMENT OF SENIOR MANAGEMENT.—The 
chief executive officer shall appoint such senior managers 
as are necessary to carry out the purpose of AIFA, as 
approved by a majority vote of the voting members of the 
Board of Directors. 
(c) TERM.—Each member of senior management 
shall serve at the pleasure of the chief executive officer 
and the Board of Directors. 
(d) REMOVAL OF SENIOR MANAGEMENT.—Any mem-
ber of senior management may be removed, either by a 
majority of the voting members of the Board of Directors 
upon request by the chief executive officer, or otherwise 
by vote of not fewer than 5 voting members of the Board 
of Directors. 
(e) SENIOR MANAGEMENT.— 
(1) IN
GENERAL.—Each member of senior 
management shall report directly to the chief execu-
tive officer, other than the Chief Risk Officer, who 
shall report directly to the Board of Directors. 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00104
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
105 
(2) DUTIES AND RESPONSIBILITIES.— 
(A) CHIEF
FINANCIAL
OFFICER.—The 
Chief Financial Officer shall be responsible for 
all financial functions of AIFA. At the discre-
tion of the Board of Directors, specific func-
tions of the Chief Financial Officer may be del-
egated externally. 
(B) CHIEF
RISK
OFFICER.—The Chief 
Risk Officer shall be responsible for all func-
tions of AIFA relating to— 
(i) the creation of financial, credit, 
and operational risk management guide-
lines and policies; 
(ii) credit analysis for infrastructure 
projects; 
(iii) the creation of conforming stand-
ards for infrastructure finance agreements; 
(iv) the monitoring of the financial, 
credit, and operational exposure of AIFA; 
and 
(v) risk management and mitigation 
actions, including by reporting such ac-
tions, or recommendations of such actions 
to be taken, directly to the Board of Direc-
tors. 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00105
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
107 
Board of Directors, preparation of infra-
structure projects to be presented to the 
Board of Directors, and set aside for rural 
infrastructure projects; 
(ii) the creation and management of— 
(I) a Center for Excellence to 
provide technical assistance to public 
sector borrowers in the development 
and 
financing 
of 
infrastructure 
projects; and 
(II) an Office of Rural Assistance 
to provide technical assistance in the 
development and financing of rural in-
frastructure projects; and 
(iii) the establishment of guidelines to 
ensure diversification of lending activities 
by region, infrastructure project type, and 
project size. 
(f) CHANGES TO SENIOR MANAGEMENT.—The Board 
of Directors, in consultation with the chief executive offi-
cer, may alter the structure of the senior management of 
AIFA at any time to better accomplish the goals, objec-
tives, and purposes of AIFA, except that the functions of 
the Chief Financial Officer set forth in subsection (e) shall 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00107
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
108 
remain separate from the functions of the Chief Risk Offi-
cer set forth in subsection (e). 
(g) CONFLICTS OF INTEREST.—No individual ap-
pointed to senior management may— 
(1) hold any other public office; 
(2) have any financial interest in an infrastruc-
ture project then being considered by the Board of 
Directors, unless that interest is placed in a blind 
trust; or 
(3) have any financial interest in an investment 
institution or its affiliates, AIFA or its affiliates, or 
other entity then seeking or likely to seek financial 
assistance for any infrastructure project from AIFA, 
unless any such interest is placed in a blind trust 
during the term of service of that individual in a 
senior management position, and for a period of 2 
years thereafter. 
SEC. 250. SPECIAL INSPECTOR GENERAL FOR AIFA. 
(a) IN GENERAL.—During the first 5 operating years 
of AIFA, the Office of the Inspector General of the De-
partment of the Treasury shall have responsibility for 
AIFA. 
(b) OFFICE
OF
THE SPECIAL INSPECTOR GEN-
ERAL.—Effective 5 years after the date of enactment of 
the commencement of the operations of AIFA, there is es-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00108
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
109 
tablished the Office of the Special Inspector General for 
AIFA. 
(c) APPOINTMENT
OF INSPECTOR GENERAL; RE-
MOVAL.— 
(1) HEAD OF OFFICE.—The head of the Office 
of the Special Inspector General for AIFA shall be 
the Special Inspector General for AIFA (in this Act 
referred to as the ‘‘Special Inspector General’’), who 
shall be appointed by the President, by and with the 
advice and consent of the Senate. 
(2) BASIS
OF
APPOINTMENT.—The appoint-
ment of the Special Inspector General shall be made 
on the basis of integrity and demonstrated ability in 
accounting, auditing, financial analysis, law, man-
agement analysis, public administration, or inves-
tigations. 
(3) TIMING OF NOMINATION.—The nomination 
of an individual as Special Inspector General shall 
be made as soon as is practicable after the effective 
date under subsection (b). 
(4) REMOVAL.—The Special Inspector General 
shall be removable from office in accordance with 
the provisions of section 3(b) of the Inspector Gen-
eral Act of 1978 (5 U.S.C. App.). 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00109
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
110 
(5) RULE OF CONSTRUCTION.—For purposes of 
section 7324 of title 5, United States Code, the Spe-
cial Inspector General shall not be considered an em-
ployee who determines policies to be pursued by the 
United States in the nationwide administration of 
Federal law. 
(6) RATE OF PAY.—The annual rate of basic 
pay of the Special Inspector General shall be the an-
nual rate of basic pay for an Inspector General 
under section 3(e) of the Inspector General Act of 
1978 (5 U.S.C. App.). 
(d) DUTIES.— 
(1) IN GENERAL.—It shall be the duty of the 
Special Inspector General to conduct, supervise, and 
coordinate audits and investigations of the business 
activities of AIFA. 
(2) OTHER SYSTEMS, PROCEDURES, AND CON-
TROLS.—The Special Inspector General shall estab-
lish, maintain, and oversee such systems, procedures, 
and controls as the Special Inspector General con-
siders appropriate to discharge the duty under para-
graph (1). 
(3) ADDITIONAL DUTIES.—In addition to the 
duties specified in paragraphs (1) and (2), the In-
spector General shall also have the duties and re-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00110
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
111 
sponsibilities of inspectors general under the Inspec-
tor General Act of 1978. 
(e) POWERS AND AUTHORITIES.— 
(1) IN GENERAL.—In carrying out the duties 
specified in subsection (c), the Special Inspector 
General shall have the authorities provided in section 
6 of the Inspector General Act of 1978. 
(2) ADDITIONAL AUTHORITY.—The Special In-
spector General shall carry out the duties specified 
in subsection (c)(1) in accordance with section 
4(b)(1) of the Inspector General Act of 1978. 
(f) PERSONNEL, FACILITIES, 
AND
OTHER
RE-
SOURCES.— 
(1) ADDITIONAL OFFICERS.— 
(A) The Special Inspector General may se-
lect, appoint, and employ such officers and em-
ployees as may be necessary for carrying out 
the duties of the Special Inspector General, 
subject to the provisions of title 5, United 
States Code, governing appointments in the 
competitive service, and the provisions of chap-
ter 51 and subchapter III of chapter 53 of such 
title, relating to classification and General 
Schedule pay rates. 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00111
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
112 
(B) The Special Inspector General may ex-
ercise the authorities of subsections (b) through 
(i) of section 3161 of title 5, United States 
Code (without regard to subsection (a) of that 
section). 
(2) RETENTION OF SERVICES.—The Special In-
spector General may obtain services as authorized by 
section 3109 of title 5, United States Code, at daily 
rates not to exceed the equivalent rate prescribed for 
grade GS–15 of the General Schedule by section 
5332 of such title. 
(3) ABILITY TO CONTRACT FOR AUDITS, STUD-
IES, AND OTHER SERVICES.—The Special Inspector 
General may enter into contracts and other arrange-
ments for audits, studies, analyses, and other serv-
ices with public agencies and with private persons, 
and make such payments as may be necessary to 
carry out the duties of the Special Inspector Gen-
eral. 
(4) REQUEST FOR INFORMATION.— 
(A) IN
GENERAL.—Upon request of the 
Special Inspector General for information or as-
sistance from any department, agency, or other 
entity of the Federal Government, the head of 
such entity shall, insofar as is practicable and 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00112
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
113 
not in contravention of any existing law, furnish 
such information or assistance to the Special 
Inspector General, or an authorized designee. 
(B) REFUSAL TO COMPLY.—Whenever in-
formation or assistance requested by the Spe-
cial Inspector General is, in the judgment of the 
Special Inspector General, unreasonably refused 
or not provided, the Special Inspector General 
shall report the circumstances to the Secretary 
of the Treasury, without delay. 
(g) REPORTS.— 
(1) ANNUAL REPORT.—Not later than 1 year 
after the confirmation of the Special Inspector Gen-
eral, and every calendar year thereafter, the Special 
Inspector General shall submit to the President a re-
port summarizing the activities of the Special In-
spector General during the previous 1-year period 
ending on the date of such report. 
(2) PUBLIC
DISCLOSURES.—Nothing in this 
subsection shall be construed to authorize the public 
disclosure of information that is— 
(A) specifically prohibited from disclosure 
by any other provision of law; 
(B) specifically required by Executive order 
to be protected from disclosure in the interest 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00113
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
114 
of national defense or national security or in 
the conduct of foreign affairs; or 
(C) a part of an ongoing criminal inves-
tigation. 
SEC. 251. OTHER PERSONNEL. 
Except as otherwise provided in the bylaws of AIFA, 
the chief executive officer, in consultation with the Board 
of Directors, shall appoint, remove, and define the duties 
of such qualified personnel as are necessary to carry out 
the powers, duties, and purpose of AIFA, other than sen-
ior management, who shall be appointed in accordance 
with section 249. 
SEC. 252. COMPLIANCE. 
The provision of assistance by the Board of Directors 
pursuant to this Act shall not be construed as superseding 
any provision of State law or regulation otherwise applica-
ble to an infrastructure project. 
PART II—TERMS AND LIMITATIONS ON DIRECT 
LOANS AND LOAN GUARANTEES 
SEC. 253. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM 
AIFA AND TERMS AND LIMITATIONS OF 
LOANS. 
(a) IN GENERAL.—Any project whose use or purpose 
is private and for which no public benefit is created shall 
not be eligible for financial assistance from AIFA under 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00114
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
115 
this Act. Financial assistance under this Act shall only 
be made available if the applicant for such assistance has 
demonstrated to the satisfaction of the Board of Directors 
that the infrastructure project for which such assistance 
is being sought— 
(1) is not for the refinancing of an existing in-
frastructure project; and 
(2) meets— 
(A) any pertinent requirements set forth in 
this Act; 
(B) any criteria established by the Board 
of Directors or chief executive officer in accord-
ance with this Act; and 
(C) the definition of a transportation infra-
structure project, water infrastructure project, 
or energy infrastructure project. 
(b) CONSIDERATIONS.—The criteria established by 
the Board of Directors pursuant to this Act shall provide 
adequate consideration of— 
(1) the economic, financial, technical, environ-
mental, and public benefits and costs of each infra-
structure project under consideration for financial 
assistance under this Act, prioritizing infrastructure 
projects that— 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00115
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
116 
(A) contribute to regional or national eco-
nomic growth; 
(B) offer value for money to the Govern-
ment; 
(C) demonstrate a clear and significant 
public benefit; 
(D) lead to job creation; and 
(E) mitigate environmental concerns; 
(2) the means by which development of the in-
frastructure project under consideration is being fi-
nanced, including— 
(A) the terms, conditions, and structure of 
the proposed financing; 
(B) the credit worthiness and standing of 
the project sponsors, providers of equity, and 
cofinanciers; 
(C) the financial assumptions and projec-
tions on which the infrastructure project is 
based; and 
(D) whether there is sufficient State or 
municipal political support for the successful 
completion of the infrastructure project; 
(3) the likelihood that the provision of assist-
ance by AIFA will cause such development to pro-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00116
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
117 
ceed more promptly and with lower costs than would 
be the case without such assistance; 
(4) the extent to which the provision of assist-
ance by AIFA maximizes the level of private invest-
ment in the infrastructure project or supports a 
public-private partnership, while providing a signifi-
cant public benefit; 
(5) the extent to which the provision of assist-
ance by AIFA can mobilize the participation of other 
financing partners in the infrastructure project; 
(6) the technical and operational viability of the 
infrastructure project; 
(7) the proportion of financial assistance from 
AIFA; 
(8) the geographic location of the project in an 
effort to have geographic diversity of projects funded 
by AIFA; 
(9) the size of the project and its impact on the 
resources of AIFA; 
(10) the infrastructure sector of the project, in 
an effort to have projects from more than one sector 
funded by AIFA; and 
(11) Encourages use of innovative procurement, 
asset management, or financing to minimize the all- 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00117
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
118 
in-life-cycle cost, and improve the cost-effectiveness 
of a project. 
(c) APPLICATION.— 
(1) IN GENERAL.—Any eligible entity seeking 
assistance from AIFA under this Act for an eligible 
infrastructure project shall submit an application to 
AIFA at such time, in such manner, and containing 
such information as the Board of Directors or the 
chief executive officer may require. 
(2) REVIEW OF APPLICATIONS.—AIFA shall re-
view applications for assistance under this Act on an 
ongoing basis. The chief executive officer, working 
with the senior management, shall prepare eligible 
infrastructure projects for review and approval by 
the Board of Directors. 
(3) DEDICATED REVENUE SOURCES.—The Fed-
eral credit instrument shall be repayable, in whole or 
in part, from tolls, user fees, or other dedicated rev-
enue sources that also secure the infrastructure 
project obligations. 
(d) ELIGIBLE INFRASTRUCTURE PROJECT COSTS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), to be eligible for assistance under this 
Act, an infrastructure project shall have project 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00118
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
119 
costs that are reasonably anticipated to equal or ex-
ceed $100,000,000. 
(2) RURAL
INFRASTRUCTURE
PROJECTS.—To 
be eligible for assistance under this Act a rural in-
frastructure project shall have project costs that are 
reasonably 
anticipated 
to 
equal 
or 
exceed 
$25,000,000. 
(e) LOAN ELIGIBILITY AND MAXIMUM AMOUNTS.— 
(1) IN GENERAL.—The amount of a direct loan 
or loan guarantee under this Act shall not exceed 
the lesser of 50 percent of the reasonably anticipated 
eligible infrastructure project costs or, if the direct 
loan or loan guarantee does not receive an invest-
ment grade rating, the amount of the senior project 
obligations. 
(2) MAXIMUM ANNUAL LOAN AND LOAN GUAR-
ANTEE VOLUME.—The aggregate amount of direct 
loans and loan guarantees made by AIFA in any 
single fiscal year may not exceed— 
(A) during the first 2 fiscal years of the 
operations of AIFA, $10,000,000,000; 
(B) during fiscal years 3 through 9 of the 
operations of AIFA, $20,000,000,000; or 
(C) during any fiscal year thereafter, 
$50,000,000,000. 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00119
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
120 
(f) STATE AND LOCAL PERMITS REQUIRED.—The 
provision of assistance by the Board of Directors pursuant 
to this Act shall not be deemed to relieve any recipient 
of such assistance, or the related infrastructure project, 
of any obligation to obtain required State and local per-
mits and approvals. 
(g) EMPLOYEE PROTECTIONS.—As a condition for 
the provision of financial assistance by the Board of Direc-
tors pursuant to this Act, the interests of employees af-
fected by the financial assistance shall be protected under 
arrangements the Secretary of Labor concludes are fair 
and equitable in accordance with section 5333(b)(2) of 
title 49, United States Code. 
SEC. 254. LOAN TERMS AND REPAYMENT. 
(a) IN GENERAL.—A direct loan or loan guarantee 
under this Act with respect to an eligible infrastructure 
project shall be on such terms, subject to such conditions, 
and contain such covenants, representations, warranties, 
and requirements (including requirements for audits) as 
the chief executive officer determines appropriate. 
(b) TERMS.—A direct loan or loan guarantee under 
this Act— 
(1) shall— 
(A) be payable, in whole or in part, from 
tolls, user fees, or other dedicated revenue 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00120
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
121 
sources that also secure the senior project obli-
gations (such as availability payments and dedi-
cated State or local revenues); and 
(B) include a rate covenant, coverage re-
quirement, or similar security feature sup-
porting the project obligations; and 
(2) may have a lien on revenues described in 
paragraph (1), subject to any lien securing project 
obligations. 
(c) BASE INTEREST RATE.—The base interest rate 
on a direct loan under this Act shall be not less than the 
yield on United States Treasury obligations of a similar 
maturity to the maturity of the direct loan. 
(d) RISK ASSESSMENT.—Before entering into an 
agreement for assistance under this Act, the chief execu-
tive officer, in consultation with the Director of the Office 
of Management and Budget and considering rating agency 
preliminary or final rating opinion letters of the project 
under this section, shall estimate an appropriate Federal 
credit subsidy amount for each direct loan and loan guar-
antee, taking into account such letter, as well as any com-
parable market rates available for such a loan or loan 
guarantee, should any exist. The final credit subsidy cost 
for each loan and loan guarantee shall be determined con-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00121
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
122 
sistent with the Federal Credit Reform Act, 2 U.S.C. 
661a, et seq. 
(e) CREDIT FEE.— 
(1) IN GENERAL.—With respect to each agree-
ment for assistance under this Act, the chief execu-
tive officer may charge a credit fee to the recipient 
of such assistance to pay for, over time, all or a por-
tion of the Federal credit subsidy determined under 
subsection (d), with the remainder paid by the ac-
count established for AIFA. 
(2) TREATMENT
OF
SOURCE
OF
FEES.—The 
source of fees paid under this section shall not be a 
loan or debt obligation guaranteed by the Federal 
Government. 
(3) CREDIT FEE ON A DIRECT LOAN.—In the 
case of a direct loan, such credit fee shall be in addi-
tion to the base interest rate established under sub-
section (c). 
(f) MATURITY DATE.—The final maturity date of a 
direct loan or loan guaranteed by AIFA under this Act 
shall be not later than 35 years after the date of substan-
tial completion of the infrastructure project, as determined 
by the chief executive officer. 
(g) RATING OPINION LETTER.— 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00122
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
123 
(1) IN GENERAL.—The chief executive officer 
shall require each applicant for assistance under this 
Act to provide a rating opinion letter from at least 
1 ratings agency, indicating that the senior obliga-
tions of the infrastructure project, which may be the 
Federal credit instrument, have the potential to 
achieve an investment-grade rating. 
(2) RURAL INFRASTRUCTURE PROJECTS.—With 
respect to a rural infrastructure project, a rating 
agency opinion letter described in paragraph (1) 
shall not be required, except that the loan or loan 
guarantee shall receive an internal rating score, 
using methods similar to the ratings agencies gen-
erated by AIFA, measuring the proposed direct loan 
or loan guarantee against comparable direct loans or 
loan guarantees of similar credit quality in a similar 
sector. 
(h) INVESTMENT-GRADE RATING REQUIREMENT.— 
(1) LOANS AND LOAN GUARANTEES.—The exe-
cution of a direct loan or loan guarantee under this 
Act shall be contingent on the senior obligations of 
the infrastructure project receiving an investment- 
grade rating. 
(2) RATING OF AIFA OVERALL PORTFOLIO.— 
The average rating of the overall portfolio of AIFA 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00123
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
124 
shall be not less than investment grade after 5 years 
of operation. 
(i) TERMS AND REPAYMENT OF DIRECT LOANS.— 
(1) SCHEDULE.—The chief executive officer 
shall establish a repayment schedule for each direct 
loan under this Act, based on the projected cash 
flow from infrastructure project revenues and other 
repayment sources. 
(2) COMMENCEMENT.—Scheduled loan repay-
ments of principal or interest on a direct loan under 
this Act shall commence not later than 5 years after 
the date of substantial completion of the infrastruc-
ture project, as determined by the chief executive of-
ficer of AIFA. 
(3) 
DEFERRED
PAYMENTS
OF
DIRECT 
LOANS.— 
(A) AUTHORIZATION.—If, at any time 
after the date of substantial completion of an 
infrastructure project assisted under this Act, 
the infrastructure project is unable to generate 
sufficient revenues to pay the scheduled loan re-
payments of principal and interest on the direct 
loan under this Act, the chief executive officer 
may allow the obligor to add unpaid principal 
and interest to the outstanding balance of the 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00124
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
125 
direct loan, if the result would benefit the Gov-
ernment. 
(B) INTEREST.—Any payment deferred 
under subparagraph (A) shall— 
(i) continue to accrue interest, in ac-
cordance with the terms of the obligation, 
until fully repaid; and 
(ii) be scheduled to be amortized over 
the remaining term of the loan. 
(C) CRITERIA.— 
(i) IN GENERAL.—Any payment defer-
ral under subparagraph (A) shall be con-
tingent on the infrastructure project meet-
ing criteria established by the Board of Di-
rectors. 
(ii) REPAYMENT
STANDARDS.—The 
criteria established under clause (i) shall 
include standards for reasonable assurance 
of repayment. 
(4) PREPAYMENT OF DIRECT LOANS.— 
(A) USE OF EXCESS REVENUES.—Any ex-
cess revenues that remain after satisfying 
scheduled debt service requirements on the in-
frastructure project obligations and direct loan 
and all deposit requirements under the terms of 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00125
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
126 
any trust agreement, bond resolution, or similar 
agreement securing project obligations under 
this Act may be applied annually to prepay the 
direct loan, without penalty. 
(B) 
USE
OF
PROCEEDS
OF
REFI-
NANCING.—A direct loan under this Act may be 
prepaid at any time, without penalty, from the 
proceeds of refinancing from non-Federal fund-
ing sources. 
(5) SALE OF DIRECT LOANS.— 
(A) IN
GENERAL.—As soon as is prac-
ticable after substantial completion of an infra-
structure project assisted under this Act, and 
after notifying the obligor, the chief executive 
officer may sell to another entity, or reoffer into 
the capital markets, a direct loan for the infra-
structure project, if the chief executive officer 
determines that the sale or reoffering can be 
made on favorable terms for the Government. 
(B) CONSENT OF OBLIGOR.—In making a 
sale or reoffering under subparagraph (A), the 
chief executive officer may not change the origi-
nal terms and conditions of the direct loan, 
without the written consent of the obligor. 
(j) LOAN GUARANTEES.— 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00126
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
127 
(1) TERMS.—The terms of a loan guaranteed 
by AIFA under this Act shall be consistent with the 
terms set forth in this section for a direct loan, ex-
cept that the rate on the guaranteed loan and any 
payment, pre-payment, or refinancing features shall 
be negotiated between the obligor and the lender, 
with the consent of the chief executive officer. 
(2) GUARANTEED
LENDER.—A guaranteed 
lender shall be limited to those lenders meeting the 
definition of that term in section 601(a) of title 23, 
United States Code. 
(k) COMPLIANCE WITH FCRA; IN GENERAL.—Di-
rect loans and loan guarantees authorized by this Act shall 
be subject to the provisions of the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661 et seq.). 
SEC. 255. COMPLIANCE AND ENFORCEMENT. 
(a) CREDIT
AGREEMENT.—Notwithstanding any 
other provision of law, each eligible entity that receives 
assistance under this Act from AIFA shall enter into a 
credit agreement that requires such entity to comply with 
all applicable policies and procedures of AIFA, in addition 
to all other provisions of the loan agreement. 
(b) AIFA AUTHORITY ON NONCOMPLIANCE.—In any 
case in which a recipient of assistance under this Act is 
materially out of compliance with the loan agreement, or 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00127
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
128 
any applicable policy or procedure of AIFA, the Board of 
Directors may take action to cancel unutilized loan 
amounts, or to accelerate the repayment terms of any out-
standing obligation. 
(c) CONSTRUCTION.—Nothing in this Act is intended 
to affect existing provisions of law applicable to the plan-
ning, development, construction, or operation of projects 
funded under the Act. 
SEC. 256. AUDITS; REPORTS TO THE PRESIDENT AND CON-
GRESS. 
(a) ACCOUNTING.—The books of account of AIFA 
shall be maintained in accordance with generally accepted 
accounting principles, and shall be subject to an annual 
audit by independent public accountants of nationally rec-
ognized standing appointed by the Board of Directors. 
(b) REPORTS.— 
(1) BOARD OF DIRECTORS.—Not later than 90 
days after the last day of each fiscal year, the Board 
of Directors shall submit to the President and Con-
gress a complete and detailed report with respect to 
the preceding fiscal year, setting forth— 
(A) a summary of the operations of AIFA, 
for such fiscal year; 
(B) a schedule of the obligations of AIFA 
and capital securities outstanding at the end of 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00128
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
129 
such fiscal year, with a statement of the 
amounts issued and redeemed or paid during 
such fiscal year; 
(C) the status of infrastructure projects re-
ceiving funding or other assistance pursuant to 
this Act during such fiscal year, including all 
nonperforming loans, and including disclosure 
of all entities with a development, ownership, or 
operational interest in such infrastructure 
projects; 
(D) a description of the successes and 
challenges encountered in lending to rural com-
munities, including the role of the Center for 
Excellence and the Office of Rural Assistance 
established under this Act; and 
(E) an assessment of the risks of the port-
folio of AIFA, prepared by an independent 
source. 
(2) GAO.—Not later than 5 years after the 
date of enactment of this Act, the Comptroller Gen-
eral of the United States shall conduct an evaluation 
of, and shall submit to Congress a report on, activi-
ties of AIFA for the fiscal years covered by the re-
port that includes an assessment of the impact and 
benefits of each funded infrastructure project, in-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00129
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
130 
cluding a review of how effectively each such infra-
structure project accomplished the goals prioritized 
by the infrastructure project criteria of AIFA. 
(c) BOOKS AND RECORDS.— 
(1) IN GENERAL.—AIFA shall maintain ade-
quate books and records to support the financial 
transactions of AIFA, with a description of financial 
transactions and infrastructure projects receiving 
funding, and the amount of funding for each such 
project maintained on a publically accessible data-
base. 
(2) AUDITS BY THE SECRETARY AND GAO.— 
The books and records of AIFA shall at all times be 
open to inspection by the Secretary of the Treasury, 
the Special Inspector General, and the Comptroller 
General of the United States. 
PART III—FUNDING OF AIFA 
SEC. 257. ADMINISTRATIVE FEES. 
(a) IN GENERAL.—In addition to fees that may be 
collected under section 254(e), the chief executive officer 
shall establish and collect fees from eligible funding recipi-
ents with respect to loans and loan guarantees under this 
Act that— 
(1) are sufficient to cover all or a portion of the 
administrative costs to the Federal Government for 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00130
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
131 
the operations of AIFA, including the costs of expert 
firms, including counsel in the field of municipal and 
project finance, and financial advisors to assist with 
underwriting, credit analysis, or other independent 
reviews, as appropriate; 
(2) may be in the form of an application or 
transaction fee, or other form established by the 
chief executive officer; and 
(3) may be based on the risk premium associ-
ated with the loan or loan guarantee, taking into 
consideration— 
(A) the price of United States Treasury 
obligations of a similar maturity; 
(B) prevailing market conditions; 
(C) the ability of the infrastructure project 
to support the loan or loan guarantee; and 
(D) the total amount of the loan or loan 
guarantee. 
(b) AVAILABILITY OF AMOUNTS.—Amounts collected 
under subsections (a)(1), (a)(2)(a)(3) shall be available 
without further action, and the source of fees paid under 
this section shall not be a loan or debt obligation guaran-
teed by the Federal Government. 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00131
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
132 
SEC. 258. EFFICIENCY OF AIFA. 
The chief executive officer shall, to the extent pos-
sible, take actions consistent with this Act to minimize the 
risk and cost to the Government of AIFA activities. Fees 
and premiums for loan guarantee or insurance coverage 
will be set at levels that minimize administrative and Fed-
eral credit subsidy costs to the Government, as defined 
in section 502 of the Federal Credit Reform Act of 1990, 
of such coverage, while supporting achievement of the pro-
gram’s objectives, consistent with policies as set forth in 
the business plan. 
SEC. 259. FUNDING. 
(a) IN GENERAL.—There is hereby appropriated to 
AIFA to carry out this Act, for the cost of direct loans 
and loan guarantees subject to the limitations under sec-
tion 253, and for administrative costs, $10,000,000,000, 
to remain available until expended. 
(b) COSTS DEFINED.—Such costs, including the 
costs of modifying such loans, shall be as defined in sec-
tion 502 of the Federal Credit Reform Act of 1990. 
(c) ADMINISTRATIVE COSTS.—Of the amounts appro-
priated under subsection (a), not more than $25,000,000 
for each of fiscal years 2012 through 2013, and not more 
than $50,000,000 for fiscal year 2014 may be used for 
administrative costs of AIFA. 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00132
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
133 
(d) OFFSETS OF SUBSIDY COSTS.—Not more than 
5 percent of such amount may be used to offset subsidy 
costs associated with rural projects. 
PART IV—EXTENSION OF EXEMPTION FROM AL-
TERNATIVE MINIMUM TAX TREATMENT FOR 
CERTAIN TAX-EXEMPT BONDS 
SEC. 260. EXTENSION OF EXEMPTION FROM ALTERNATIVE 
MINIMUM TAX TREATMENT FOR CERTAIN 
TAX-EXEMPT BONDS. 
(a) IN GENERAL.—Clause (vi) of section 57(a)(5)(C) 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘January 1, 2011’’ in subclause 
(I) and inserting ‘‘January 1, 2015’’; and 
(2) by striking ‘‘IN 2009 AND 2010’’ in the head-
ing and inserting ‘‘DURING
THE
PERIOD
2009 
THROUGH 2014’’. 
(b) ADJUSTED CURRENT EARNINGS.—Clause (iv) of 
section 56(g)(4)(B) of the Internal Revenue Code of 1986 
is amended— 
(1) by striking ‘‘January 1, 2011’’ in subclause 
(I) and inserting ‘‘January 1, 2015’’; and 
(2) by striking ‘‘IN 2009 AND 2010’’ in the head-
ing and inserting ‘‘DURING
THE
PERIOD
2009 
THROUGH 2014’’. 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00133
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
134 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after Decem-
ber 31, 2010. 
Subtitle F—Project Rebuild 
SEC. 261. PROJECT REBUILD. 
(a) DIRECT
APPROPRIATIONS.—There is appro-
priated, out of any money in the Treasury not otherwise 
appropriated, $15,000,000,000, to remain available until 
September 30, 2016, for assistance to eligible entities in-
cluding States and units of general local government (as 
such terms are defined in section 102 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5302)), 
and qualified nonprofit organizations, businesses or con-
sortia of eligible entities for the redevelopment of aban-
doned and foreclosed-upon properties and for the stabiliza-
tion of affected neighborhoods. 
(b) ALLOCATION OF APPROPRIATED AMOUNTS.— 
(1) IN
GENERAL.—Of the amounts appro-
priated, two thirds shall be allocated to States and 
units of general local government based on a funding 
formula established by the Secretary of Housing and 
Urban Development (in this subtitle referred to as 
the ‘‘Secretary’’). Of the amounts appropriated, one 
third shall be distributed competitively to eligible en-
tities. 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00134
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
135 
(2) FORMULA TO BE DEVISED SWIFTLY.—The 
funding formula required under paragraph (1) shall 
be established and the Secretary shall announce for-
mula funding allocations, not later than 30 days 
after the date of enactment of this section. 
(3) FORMULA CRITERIA.—The Secretary may 
establish a minimum grant size, and the funding for-
mula required under paragraph (1) shall ensure that 
any amounts appropriated or otherwise made avail-
able under this section are allocated to States and 
units of general local government with the greatest 
need, as such need is determined in the discretion of 
the Secretary based on— 
(A) the number and percentage of home 
foreclosures in each State or unit of general 
local government; 
(B) the number and percentage of homes 
in default or delinquency in each State or unit 
of general local government; and 
(C) other factors such as established pro-
gram designs, grantee capacity and perform-
ance, number and percentage of commercial 
foreclosures, overall economic conditions, and 
other market needs data, as determined by the 
Secretary. 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00135
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
136 
(4) COMPETITION CRITERIA.— 
(A) For the funds distributed competi-
tively, eligible entities shall be States, units of 
general local government, nonprofit entities, 
for-profit entities, and consortia of eligible enti-
ties that demonstrate capacity to use funding 
within the period of this program. 
(B) In selecting grantees, the Secretary 
shall ensure that grantees are in areas with the 
greatest number and percentage of residential 
and commercial foreclosures and other market 
needs data, as determined by the Secretary. Ad-
ditional award criteria shall include dem-
onstrated grantee capacity to execute projects 
involving acquisition and rehabilitation or rede-
velopment of foreclosed residential and commer-
cial property and neighborhood stabilization, le-
verage, knowledge of market conditions and of 
effective stabilization activities to address iden-
tified conditions, and any additional factors de-
termined by the Secretary. 
(C) The Secretary may establish a min-
imum grant size. 
(D) The Secretary shall publish competi-
tion criteria for any grants awarded under this 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00136
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
137 
heading not later than 60 days after appropria-
tion of funds, and applications shall be due to 
the Secretary within 120 days. 
(c) USE OF FUNDS.— 
(1) OBLIGATION AND EXPENDITURE.—The Sec-
retary shall obligate all funding within 150 days of 
enactment of this Act. Any eligible entity that re-
ceives amounts pursuant to this section shall expend 
all funds allocated to it within three years of the 
date the funds become available to the grantee for 
obligation. Furthermore, the Secretary shall by No-
tice establish intermediate expenditure benchmarks 
at the one and two year dates from the date the 
funds become available to the grantee for obligation. 
(2) PRIORITIES.— 
(A) JOB CREATION.—Each grantee or eli-
gible entity shall describe how its proposed use 
of funds will prioritize job creation, and sec-
ondly, will address goals to stabilize neighbor-
hoods, reverse vacancy, or increase or stabilize 
residential and commercial property values. 
(B) TARGETING.—Any State or unit of 
general local government that receives formula 
amounts pursuant to this section shall, in dis-
tributing and targeting such amounts give pri-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00137
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
138 
ority emphasis and consideration to those met-
ropolitan areas, metropolitan cities, urban 
areas, rural areas, low- and moderate-income 
areas, and other areas with the greatest need, 
including those— 
(i) with the greatest percentage of 
home foreclosures; 
(ii) identified as likely to face a sig-
nificant rise in the rate of residential or 
commercial foreclosures; and 
(iii) with higher than national average 
unemployment rate. 
(C) LEVERAGE.—Each grantee or eligible 
entity shall describe how its proposed use of 
funds will leverage private funds. 
(3) ELIGIBLE USES.—Amounts made available 
under this section may be used to— 
(A) establish financing mechanisms for the 
purchase and redevelopment of abandoned and 
foreclosed-upon 
properties, 
including 
such 
mechanisms as soft-seconds, loan loss reserves, 
and shared-equity loans for low- and moderate- 
income homebuyers; 
(B) purchase and rehabilitate properties 
that have been abandoned or foreclosed upon, 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00138
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
139 
in order to sell, rent, or redevelop such prop-
erties; 
(C) establish and operate land banks for 
properties that have been abandoned or fore-
closed upon; 
(D) demolish blighted structures; 
(E) redevelop abandoned, foreclosed, de-
molished, or vacant properties; and 
(F) engage in other activities, as deter-
mined by the Secretary through notice, that are 
consistent with the goals of creating jobs, stabi-
lizing neighborhoods, reversing vacancy reduc-
tion, and increasing or stabilizing residential 
and commercial property values. 
(d) LIMITATIONS.— 
(1) ON PURCHASES.—Any purchase of a prop-
erty under this section shall be at a price not to ex-
ceed its current market value, taking into account 
its current condition. 
(2) REHABILITATION.—Any rehabilitation of an 
eligible property under this section shall be to the 
extent necessary to comply with applicable laws, and 
other requirements relating to safety, quality, mar-
ketability, and habitability, in order to sell, rent, or 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00139
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
140 
redevelop such properties or provide a renewable en-
ergy source or sources for such properties. 
(3) SALE OF HOMES.—If an abandoned or fore-
closed-upon home is purchased, redeveloped, or oth-
erwise sold to an individual as a primary residence, 
then such sale shall be in an amount equal to or less 
than the cost to acquire and redevelop or rehabilitate 
such home or property up to a decent, safe, market-
able, and habitable condition. 
(4) ON
DEMOLITION
OF
PUBLIC
HOUSING.— 
Public housing, as defined at section 3(b)(6) of the 
United States Housing Act of 1937, may not be de-
molished with funds under this section. 
(5) ON
DEMOLITION
ACTIVITIES.—No more 
than 10 percent of any grant made under this sec-
tion may be used for demolition activities unless the 
Secretary determines that such use represents an 
appropriate response to local market conditions. 
(6) ON USE OF FUNDS FOR NON-RESIDENTIAL 
PROPERTY.—No more than 30 percent of any grant 
made under this section may be used for eligible ac-
tivities under subparagraphs (A), (B), and (E) of 
subsection (c)(3) that will not result in residential 
use of the property involved unless the Secretary de-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00140
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
141 
termines that such use represents an appropriate re-
sponse to local market conditions. 
(e) RULES OF CONSTRUCTION.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided by this section, amounts appropriated, reve-
nues generated, or amounts otherwise made avail-
able to eligible entities under this section shall be 
treated as though such funds were community devel-
opment block grant funds under title I of the Hous-
ing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.). 
(2) NO MATCH.—No matching funds shall be 
required in order for an eligible entity to receive any 
amounts under this section. 
(3) TENANT PROTECTIONS.—An eligible entity 
receiving a grant under this section shall comply 
with the 14th, 17th, 18th, 19th, 20th, 21st, 22nd, 
and 23rd provisos under the heading ‘‘Department 
of Housing and Urban Development—Community 
Planning and Development—Community Develop-
ment Fund’’ in title XII of division A of the Amer-
ican 
Recovery 
and 
Reinvestment 
Act 
of 
2009American Recovery and Reinvestment Act of 
2009 (Public Law 111–5, 123 Stat. 218–19), as 
amended by section 1497(b)(2) of the Dodd-Frank 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00141
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
142 
Wall Street Reform and Consumer Protection Act 
(Public Law 111–203, 124 Stat. 2211). 
(4) VICINITY HIRING.—An eligible entity receiv-
ing a grant under this section shall comply with sec-
tion 1497(a)(8) of the Dodd-Frank Wall Street Re-
form and Consumer Protection Act (Public Law 
111–203, 129 Stat. 2210). 
(f) AUTHORITY TO SPECIFY ALTERNATIVE RE-
QUIREMENTS.— 
(1) IN
GENERAL.—In administering the pro-
gram under this section, the Secretary may specify 
alternative requirements to any provision under title 
I of the Housing and Community Development Act 
of 1974 or under title I of the Cranston-Gonzalez 
National Affordable Housing Act of 1990 (except for 
those provisions in these laws related to fair hous-
ing, nondiscrimination, labor standards, and the en-
vironment) for the purpose of expediting and facili-
tating the use of funds under this section. 
(2) NOTICE.—The Secretary shall provide writ-
ten notice of intent to the public via internet to exer-
cise the authority to specify alternative requirements 
under paragraph. 
(3) LOW
AND
MODERATE
INCOME
REQUIRE-
MENT.— 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00142
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
143 
(A) IN
GENERAL.—Notwithstanding the 
authority of the Secretary under paragraph 
(1)— 
(i) all of the formula and competitive 
grantee funds appropriated or otherwise 
made available under this section shall be 
used with respect to individuals and fami-
lies whose income does not exceed 120 per-
cent of area median income; and 
(ii) not less than 25 percent of the 
formula and competitive grantee funds ap-
propriated or otherwise made available 
under this section shall be used for the 
purchase and redevelopment of eligible 
properties that will be used to house indi-
viduals or families whose incomes do not 
exceed 50 percent of area median income. 
(B) 
RECURRENT
REQUIREMENT.—The 
Secretary shall, by rule or order, ensure, to the 
maximum extent practicable and for the longest 
feasible term, that the sale, rental, or redevelop-
ment of abandoned and foreclosed-upon homes 
and residential properties under this section re-
main affordable to individuals or families de-
scribed in subparagraph (A). 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00143
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
144 
(g) NATIONWIDE DISTRIBUTION OF RESOURCES.— 
Notwithstanding any other provision of this section or the 
amendments made by this section, each State shall receive 
not less than $20,000,000 of formula funds. 
(h) LIMITATION ON USE OF FUNDS WITH RESPECT 
TO EMINENT DOMAIN.—No State or unit of general local 
government may use any amounts received pursuant to 
this section to fund any project that seeks to use the power 
of eminent domain, unless eminent domain is employed 
only for a public use, which shall not be construed to in-
clude economic development that primarily benefits pri-
vate entities. 
(i) LIMITATION ON DISTRIBUTION OF FUNDS.— 
(1) IN
GENERAL.—None of the funds made 
available under this section shall be distributed to— 
(A) an organization which has been in-
dicted for a violation under Federal law relating 
to an election for Federal office; or 
(B) an organization which employs applica-
ble individuals. 
(2) APPLICABLE
INDIVIDUALS
DEFINED.—In 
this section, the term ‘‘applicable individual’’ means 
an individual who— 
(A) is— 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00144
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
145 
(i) employed by the organization in a 
permanent or temporary capacity; 
(ii) contracted or retained by the or-
ganization; or 
(iii) acting on behalf of, or with the 
express or apparent authority of, the orga-
nization; and 
(B) has been indicted for a violation under 
Federal law relating to an election for Federal 
office. 
(j) RENTAL HOUSING PREFERENCES.—Each State 
and local government receiving formula amounts shall es-
tablish procedures to create preferences for the develop-
ment of affordable rental housing. 
(k) JOB CREATION.—If a grantee chooses to use 
funds to create jobs by establishing and operating a pro-
gram to maintain eligible neighborhood properties, not 
more than 10 percent of any grant may be used for that 
purpose. 
(l) PROGRAM SUPPORT AND CAPACITY BUILDING.— 
The Secretary may use up to 0.75 percent of the funds 
appropriated for capacity building of and support for eligi-
ble entities and grantees undertaking neighborhood sta-
bilization programs, staffing, training, technical assist-
ance, technology, monitoring, travel, enforcement, re-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00145
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
146 
search, and evaluation activities, subject to the following 
requirements: 
(1) Funds set aside for the purposes of this 
subparagraph shall remain available until September 
30, 2018. 
(2) Any funds made available under this sub-
paragraph and used by the Secretary for personnel 
expenses related to administering funding under this 
subparagraph shall be transferred to ‘‘Personnel 
Compensation and Benefits, Community Planning 
and Development’’. 
(3) Any funds made available under this sub-
paragraph and used by the Secretary for training or 
other administrative expenses shall be transferred to 
‘‘Administration, 
Operations, 
and 
Management, 
Community Planning and Development’’ for non- 
personnel expenses. 
(4) Any funds made available under this sub-
paragraph and used by the Secretary for technology 
shall be transferred to ‘‘Working Capital Fund’’. 
(m) ENFORCEMENT AND PREVENTION OF FRAUD 
AND ABUSE.—The Secretary shall establish and imple-
ment procedures to prevent fraud and abuse of funds 
under this section, and shall impose a requirement that 
grantees have an internal auditor to continuously monitor 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00146
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
147 
grantee performance to prevent fraud, waste, and abuse. 
Grantees shall provide the Secretary and citizens with 
quarterly progress reports. The Secretary shall recapture 
funds from formula and competitive grantees that do not 
expend 100 percent of allocated funds within 3 years of 
the date that funds become available, and from underper-
forming or mismanaged grantees, and shall re-allocate 
those funds by formula to target areas with the greatest 
need, as determined by the Secretary through notice. The 
Secretary may take an alternative sanctions action only 
upon determining that such action is necessary to achieve 
program goals in a timely manner. 
(n) CONFORMANCE
OF
POLICIES
AND
PROCE-
DURES.—The Secretary of Housing and Urban Develop-
ment shall to the extent feasible conform policies and pro-
cedures for grants made under this section to the policies 
and practices already in place for the grants made under 
section 2301 of the Housing and Economic Recovery Act 
of 2008 (42 U.S.C. 5301 note); title XII of division A 
of the American Recovery and Reinvestment Act of 2009 
(Public Law 111–5; 123 Stat. 203); or section 1497 of 
the Dodd-Frank Wall Street Reform and Consumer Pro-
tection Act (42 U.S.C. 5301 note). 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00147
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
148 
TITLE III—ASSISTANCE FOR THE 
UNEMPLOYED 
AND 
PATH-
WAYS BACK TO WORK 
Subtitle A—Supporting 
Unemployed Workers 
SEC. 301. SHORT TITLE. 
This subtitle may be cited as the ‘‘Supporting Unem-
ployed Workers Act of 2013’’. 
PART I—EXTENSION OF EMERGENCY UNEMPLOY-
MENT COMPENSATION AND CERTAIN EX-
TENDED BENEFITS PROVISIONS, AND ESTAB-
LISHMENT OF SELF-EMPLOYMENT ASSIST-
ANCE PROGRAM 
SEC. 311. EXTENSION OF EMERGENCY UNEMPLOYMENT 
COMPENSATION PROGRAM. 
(a) IN GENERAL.—Section 4007 of the Supplemental 
Appropriations Act, 2008 (Public Law 110–252; 26 
U.S.C. 3304 note) is amended by striking ‘‘January 1, 
2014’’ and inserting ‘‘January 1, 2016’’. 
(b) FUNDING.—Section 4004(e)(1) of the Supple-
mental Appropriations Act, 2008 (Public Law 110–252; 
26 U.S.C. 3304 note) is amended— 
(1) in subparagraph (I), by striking ‘‘and’’ at 
the end; 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00148
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
149 
(2) in subparagraph (J), by inserting ‘‘and’’ at 
the end; and 
(3) by inserting after subparagraph (J) the fol-
lowing: 
‘‘(K) the amendments made by section 
311(a) of the Supporting Unemployed Workers 
Act of 2013; and’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the enact-
ment of the Tax Relief, Unemployment Insurance Reau-
thorization, and Job Creation Act of 2010 (Public Law 
111–312; 26 U.S.C. 3304 note). 
SEC. 312. TEMPORARY EXTENSION OF EXTENDED BENEFIT 
PROVISIONS. 
(a) IN GENERAL.—Section 2005 of the Assistance for 
Unemployed Workers and Struggling Families Act, as 
contained in Public Law 111–5 (26 U.S.C. 3304 note), 
is amended— 
(1) by striking ‘‘December 31, 2013’’ each 
place it appears and inserting ‘‘December 31, 
2015’’; and 
(2) in subsection (c), by striking ‘‘June 30, 
2014’’ and inserting ‘‘June 30, 2016’’. 
(b) EXTENSION OF MATCHING FOR STATES WITH 
NO WAITING WEEK.—Section 5 of the Unemployment 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00149
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
150 
Compensation Extension Act of 2008 (Public Law 110– 
449; 26 U.S.C. 3304 note) is amended by striking ‘‘June 
30, 2014’’ and inserting ‘‘June 30, 2016’’. 
(c) EXTENSION OF MODIFICATION OF INDICATORS 
UNDER THE EXTENDED BENEFIT PROGRAM.—Section 
203 of the Federal-State Extended Unemployment Com-
pensation Act of 1970 (26 U.S.C. 3304 note) is amend-
ed— 
(1) in subsection (d), by striking ‘‘December 
31, 2013’’ and inserting ‘‘December 31, 2015’’; and 
(2) in subsection (f)(2), by striking ‘‘December 
31, 2013’’ and inserting ‘‘December 31, 2015’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the enact-
ment of the Tax Relief, Unemployment Insurance Reau-
thorization, and Job Creation Act of 2010 (Public Law 
111–312; 26 U.S.C. 3304 note). 
SEC. 313. ADDITIONAL EXTENDED UNEMPLOYMENT BENE-
FITS UNDER THE RAILROAD UNEMPLOY-
MENT INSURANCE ACT. 
(a) EXTENSION.—Section 2(c)(2)(D)(iii) of the Rail-
road 
Unemployment 
Insurance 
Act 
(45 
U.S.C. 
352(c)(2)(D)(iii)) is amended— 
(1) by striking ‘‘June 30, 2013’’ and inserting 
‘‘June 30, 2015’’; and 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00150
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
151 
(2) by striking ‘‘December 31, 2013’’ and in-
serting ‘‘December 31, 2015’’. 
(b) 
CLARIFICATION
ON
AUTHORITY
TO
USE 
FUNDS.—Funds appropriated under either the first or 
second sentence of clause (iv) of section 2(c)(2)(D) of the 
Railroad Unemployment Insurance Act (45 U.S.C. 
352(c)(2)(D)) shall be available to cover the cost of addi-
tional extended unemployment benefits provided under 
such section 2(c)(2)(D) by reason of the amendments 
made by subsection (a) as well as to cover the cost of such 
benefits provided under such section 2(c)(2)(D), as in ef-
fect on the day before the date of the enactment of this 
Act. 
PART II—REEMPLOYMENT NOW PROGRAM 
SEC. 321. ESTABLISHMENT OF REEMPLOYMENT NOW PRO-
GRAM. 
(a) IN GENERAL.—There is established the Reem-
ployment NOW program to be carried out by the Sec-
retary of Labor in accordance with this part in order to 
facilitate the reemployment of individuals who are receiv-
ing emergency unemployment compensation under title IV 
of the Supplemental Appropriations Act, 2008 (Public 
Law 110–252; 26 U.S.C. 3304 note) (hereafter in this 
part referred to as ‘‘EUC claimants’’). 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00151
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
152 
(b) AUTHORIZATION
AND APPROPRIATION.—There 
are authorized to be appropriated $4,000,000,000 for fis-
cal year 2014 to carry out the Reemployment NOW pro-
gram under this part. 
SEC. 322. DISTRIBUTION OF FUNDS. 
(a) IN GENERAL.—Of the amount made available 
under section 321(b) to carry out this part, the Secretary 
of Labor shall— 
(1) reserve up to 1 percent for the costs of Fed-
eral administration and for carrying out rigorous 
evaluations of the activities conducted under this 
part; and 
(2) allot the remainder of the funds not re-
served under paragraph (1) in accordance with the 
requirements of subsection (b) and (c) to States that 
have approved plans under section 323. 
(b) ALLOTMENT FORMULA.— 
(1) FORMULA
FACTORS.—The Secretary of 
Labor shall allot the funds available under sub-
section (a)(2) as follows— 
(A) two-thirds of such funds shall be allot-
ted on the basis of the relative number of un-
employed individuals in each State, compared to 
the total number of unemployed individuals in 
all States; and 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00152
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
153 
(B) one-third of such funds shall be allot-
ted on the basis of the relative number of indi-
viduals in each State who have been unem-
ployed for 27 weeks or more, compared to the 
total number of individuals in all States who 
have been unemployed for 27 weeks or more. 
(2) CALCULATION.—For purposes of paragraph 
(1), the number of unemployed individuals and the 
number of individuals unemployed for 27 weeks or 
more shall be based on the data for the most recent 
12-month period, as determined by the Secretary. 
(c) REALLOTMENT.— 
(1) FAILURE TO SUBMIT STATE PLAN.—If a 
State does not submit a State plan by the time spec-
ified in section 323(b), or a State does not receive 
approval of a State plan, the amount the State 
would have been eligible to receive pursuant to the 
formula under subsection (b) shall be allotted to 
States that receive approval of the State plan under 
section 323 in accordance with the relative allot-
ments of such States as determined by the Secretary 
under subsection (b). 
(2) FAILURE TO IMPLEMENT ACTIVITIES ON A 
TIMELY BASIS.—The Secretary of Labor may, in ac-
cordance with procedures and criteria established by 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00153
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
154 
the Secretary, recapture the portion of the State al-
lotment under this part that remains unobligated if 
the Secretary determines such funds are not being 
obligated at a rate sufficient to meet the purposes 
of this part. The Secretary shall reallot such recap-
tured funds to other States that are not subject to 
recapture in accordance with the relative share of 
the allotments of such States as determined by the 
Secretary under subsection (b). 
(3) RECAPTURE OF FUNDS.—Funds recaptured 
under paragraph (2) shall be available for reobliga-
tion not later than December 31, 2015. 
SEC. 323. STATE PLAN. 
(a) IN GENERAL.—For a State to be eligible to re-
ceive an allotment under section 322, a State shall submit 
to the Secretary of Labor a State plan in such form and 
containing such information as the Secretary may require, 
which at a minimum shall include— 
(1) a description of the activities to be carried 
out by the State to assist in the reemployment of eli-
gible individuals to be served in accordance with this 
part, including which of the activities authorized in 
sections 324–328 the State intends to carry out and 
an estimate of the amounts the State intends to allo-
cate to the activities, respectively; 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00154
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
155 
(2) a description of the performance outcomes 
to be achieved by the State through the activities 
carried out under this part, including the employ-
ment outcomes to be achieved by participants and 
the processes the State will use to track perform-
ance, consistent with guidance provided by the Sec-
retary of Labor regarding such outcomes and proc-
esses; 
(3) a description of coordination of activities to 
be carried out under this part with activities under 
title I of the Workforce Investment Act of 1998, the 
Wagner-Peyser Act, and other appropriate Federal 
programs; 
(4) the timelines for implementation of the ac-
tivities described in the plan and the number of 
EUC claimants expected to be enrolled in such ac-
tivities by quarter; 
(5) assurances that the State will participate in 
the evaluation activities carried out by the Secretary 
of Labor under this section; 
(6) assurances that the State will provide ap-
propriate reemployment services, including coun-
seling, to any EUC claimant who participates in any 
of the programs authorized under this part; and 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00155
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
156 
(7) assurances that the State will report such 
information as the Secretary may require relating to 
fiscal, performance and other matters, including em-
ployment outcomes and effects, which the Secretary 
determines are necessary to effectively monitor the 
activities carried out under this part. 
(b) PLAN SUBMISSION
AND APPROVAL.—A State 
plan under this section shall be submitted to the Secretary 
of Labor for approval not later than 30 days after the 
Secretary issues guidance relating to submission of such 
plan. The Secretary shall approve such plans if the Sec-
retary determines that the plans meet the requirements 
of this part and are appropriate and adequate to carry 
out the purposes of this part. 
(c) PLAN MODIFICATIONS.—A State may submit 
modifications to a State plan that has been approved 
under this part, and the Secretary of Labor may approve 
such modifications, if the plan as modified would meet the 
requirements of this part and are appropriate and ade-
quate to carry out the purposes of this part. 
SEC. 324. BRIDGE TO WORK PROGRAM. 
(a) IN GENERAL.—A State may use funds allotted 
to the State under this part to establish and administer 
a Bridge to Work program described in this section. 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00156
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
157 
(b) DESCRIPTION
OF PROGRAM.—In order to in-
crease individuals’ opportunities to move to permanent 
employment, a State may establish a Bridge to Work pro-
gram to provide an EUC claimant with short-term work 
experience placements with an eligible employer, during 
which time such individual— 
(1) shall be paid emergency unemployment 
compensation payable under title IV of the Supple-
mental Appropriations Act, 2008 (Public Law 110– 
252; 26 U.S.C. 3304 note), as wages for work per-
formed, and as specified in subsection (c); 
(2) shall be paid the additional amount de-
scribed in subsection (e) as augmented wages for 
work performed; and 
(3) may be paid compensation in addition to 
the amounts described in paragraphs (1) and (2) by 
a State or by a participating employer as wages for 
work performed. 
(c) PROGRAM ELIGIBILITY AND OTHER REQUIRE-
MENTS.—For purposes of this program— 
(1) individuals who, except for the requirements 
described in paragraph (3), are eligible to receive 
emergency unemployment compensation payments 
under title IV of the Supplemental Appropriations 
Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00157
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
158 
note), and who choose to participate in the program 
described in subsection (b), shall receive such pay-
ments as wages for work performed during their vol-
untary participation in the program described under 
subsection (b); 
(2) the wages payable to individuals described 
in paragraph (1) shall be paid from the emergency 
unemployment compensation account for such indi-
vidual as described in section 4002 of the Supple-
mental Appropriations Act, 2008 (Public Law 110– 
252; 26 U.S.C. 3304 note), and the amount in such 
individual’s account shall be reduced accordingly; 
(3) the wages payable to an individual described 
in paragraph (1) shall be payable in the same 
amount, at the same interval, on the same terms, 
and subject to the same conditions under title IV of 
the Supplemental Appropriations Act, 2008 (Public 
Law 110–252; 26 U.S.C. 3304 note), except that— 
(A) State requirements applied under such 
Act relating to availability for work and active 
search for work are not applicable to such indi-
viduals who participate for at least 25 hours 
per week in the program described in subsection 
(b) for the duration of such individual’s partici-
pation in the program; 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00158
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
159 
(B) State requirements applied under such 
Act relating to disqualifying income regarding 
wages earned shall not apply to such individuals 
who participate for at least 25 hours per week 
in the program described in subsection (b), and 
shall not apply with respect to— 
(i) the wages described under sub-
section (b); and 
(ii) any wages, in addition to those de-
scribed under subsection (b), whether paid 
by a State or a participating employer for 
the same work activities; 
(C) State prohibitions or limitations ap-
plied under such Act relating to employment 
status shall not apply to such individuals who 
participate in the program described in sub-
section (b); and 
(D) State requirements applied under such 
Act relating to an individual’s acceptance of an 
offer of employment shall not apply with regard 
to an offer of long-term employment from a 
participating employer made to such individual 
who is participating in the program described in 
subsection (b) in a work experience provided by 
such employer, where such long-term employ-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00159
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
160 
ment is expected to commence or commences at 
the conclusion of the duration specified in para-
graph (4)(A); 
(4) the program shall be structured so that in-
dividuals described in paragraph (1) may participate 
in the program for up to— 
(A) 8 weeks, and 
(B) 38 hours for each such week; 
(5) a State shall ensure that all individuals par-
ticipating in the program are covered by a workers’ 
compensation insurance program; and 
(6) the program meets such other requirements 
as the Secretary of Labor determines to be appro-
priate in guidance issued by the Secretary. 
(d) STATE REQUIREMENTS.— 
(1) CERTIFICATION OF ELIGIBLE EMPLOYER.— 
A State may certify as eligible for participation in 
the program under this section any employer that 
meets the eligibility criteria as established in guid-
ance by the Secretary of Labor, except that an em-
ployer shall not be certified as eligible for participa-
tion in the program described under subsection 
(b)— 
(A) if such employer— 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00160
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
161 
(i) is a Federal, State, or local govern-
ment entity; 
(ii) would engage an eligible individual 
in work activities under any employer’s 
grant, contract, or subcontract with a Fed-
eral, State, or local government entity, ex-
cept with regard to work activities under 
any employer’s supply contract or sub-
contract; 
(iii) is delinquent with respect to any 
taxes or employer contributions described 
under sections 3301 and 3302(a)(1) of the 
Internal Revenue Code of 1986 or with re-
spect to any related reporting require-
ments; 
(iv) is engaged in the business of sup-
plying workers to other employers and 
would participate in the program for the 
purpose of supplying individuals partici-
pating in the program to other employers; 
or 
(v) has previously participated in the 
program and the State has determined 
that such employer has failed to abide by 
any of the requirements specified in sub-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00161
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
162 
sections (h), (i), or (j), or by any other re-
quirements that the Secretary may estab-
lish for employers under subsection (c)(6); 
and 
(B) unless such employer provides assur-
ances that it has not displaced existing workers 
pursuant to the requirements of subsection (h). 
(2) AUTHORIZED ACTIVITIES.—Funds allotted 
to a State under this part for the program— 
(A) shall be used to— 
(i) recruit employers for participation 
in the program; 
(ii) review and certify employers iden-
tified by eligible individuals seeking to par-
ticipate in the program; 
(iii) ensure that reemployment and 
counseling services are available for pro-
gram participants, including services de-
scribing the program under subsection (b), 
prior to an individual’s participation in 
such program; 
(iv) establish and implement processes 
to monitor the progress and performance 
of individual participants for the duration 
of the program; 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00162
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
163 
(v) prevent misuse of the program; 
and 
(vi) pay augmented wages to eligible 
individuals, if necessary, as described in 
subsection (e); and 
(B) may be used— 
(i) to pay workers’ compensation in-
surance premiums to cover all individuals 
participating in the program, except that, 
if a State opts not to make such payments 
directly to a State administered workers’ 
compensation program, the State involved 
shall describe in the approved State plan 
the means by which such State shall en-
sure workers’ compensation or equivalent 
coverage for all individuals who participate 
in the program; 
(ii) to pay compensation to a partici-
pating individual that is in addition to the 
amounts described in subsections (c)(1) 
and (e) as wages for work performed; 
(iii) to provide supportive services, 
such as transportation, child care, and de-
pendent care, that would enable individuals 
to participate in the program; 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00163
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
164 
(iv) for the administration and over-
sight of the program; and 
(v) to fulfill additional program re-
quirements included in the approved State 
plan. 
(e) PAYMENT
OF AUGMENTED WAGES
IF NEC-
ESSARY.—In the event that the wages described in sub-
section (c)(1) are not sufficient to equal or exceed the min-
imum wages that are required to be paid by an employer 
under section 6(a)(1) of the Fair Labor Standards Act 
of 1938 (29 U.S.C. 206(a)(1)) or the applicable State or 
local minimum wage law, whichever is higher, a State shall 
pay augmented wages to a program participant in any 
amount necessary to cover the difference between— 
(1) such minimum wages amount; and 
(2) the wages payable under subsection (c)(1). 
(f) EFFECT OF WAGES ON ELIGIBILITY FOR OTHER 
PROGRAMS.—None of the wages paid under this section 
shall be considered as income for the purposes of deter-
mining eligibility for and the amount of income transfer 
and in-kind aid furnished under any Federal or federally 
assisted program based on need. 
(g) EFFECT
OF WAGES, WORK ACTIVITIES, AND 
PROGRAM PARTICIPATION ON CONTINUING ELIGIBILITY 
FOR EMERGENCY UNEMPLOYMENT COMPENSATION.— 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00164
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
165 
Any wages paid under this section and any additional 
wages paid by an employer to an individual described in 
subsection (c)(1), and any work activities performed by 
such individual as a participant in the program, shall not 
be construed so as to render such individual ineligible to 
receive emergency unemployment compensation under title 
IV of the Supplemental Appropriations Act, 2008 (Public 
Law 110–252; 26 U.S.C. 3304 note). 
(h) NONDISPLACEMENT OF EMPLOYEES.— 
(1) PROHIBITION.—An employer shall not use a 
program participant to displace (including a partial 
displacement, such as a reduction in the hours of 
non-overtime work, wages, or employment benefits) 
any current employee (as of the date of the partici-
pation). 
(2) OTHER PROHIBITIONS.—An employer shall 
not permit a program participant to perform work 
activities related to any job for which— 
(A) any other individual is on layoff from 
the same or any substantially equivalent posi-
tion; 
(B) the employer has terminated the em-
ployment of any employee or otherwise reduced 
the workforce of the employer with the inten-
tion of filling or partially filling the vacancy so 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00165
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
166 
created with the work activities to be performed 
by a program participant; 
(C) there is a strike or lock out at the 
worksite that is the participant’s place of em-
ployment; or 
(D) the job is created in a manner that 
will infringe in any way upon the promotional 
opportunities of currently employed individuals 
(as of the date of the participation). 
(i) PROHIBITION ON IMPAIRMENT OF CONTRACTS.— 
An employer shall not, by means of assigning work activi-
ties under this section, impair an existing contract for 
services or a collective bargaining agreement, and no such 
activity that would be inconsistent with the terms of a col-
lective bargaining agreement shall be undertaken without 
the written concurrence of the labor organization that is 
signatory to the collective bargaining agreement. 
(j) LIMITATION ON EMPLOYER PARTICIPATION.—If, 
after 24 weeks of participation in the program, an em-
ployer has not made an offer of suitable long-term employ-
ment to any individual described under subsection (c)(1) 
who was placed with such employer and has completed the 
program, a State shall bar such employer from further 
participation in the program. States may impose addi-
tional conditions on participating employers to ensure that 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00166
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
167 
an appropriate number of participants receive offers of 
suitable long-term employment. 
(k) FAILURE TO MEET PROGRAM REQUIREMENTS.— 
If a State makes a determination based on information 
provided to the State, or acquired by the State by means 
of its administration and oversight functions, that a par-
ticipating employer under this section has violated a re-
quirement of this section, the State shall bar such em-
ployer from further participation in the program. The 
State shall establish a process whereby an individual de-
scribed in subsection (c)(1), or any other affected indi-
vidual or entity, may file a complaint with the State relat-
ing to a violation of any requirement or prohibition under 
this section. 
(l) PARTICIPANT OPTION TO TERMINATE PARTICIPA-
TION IN BRIDGE TO WORK PROGRAM.— 
(1) TERMINATION.—An individual who is par-
ticipating in a program described in subsection (b) 
may opt to discontinue participation in such pro-
gram. 
(2) CONTINUED ELIGIBILITY FOR EMERGENCY 
UNEMPLOYMENT
COMPENSATION.—An 
individual 
who opts to discontinue participation in such pro-
gram, is terminated from such program by a partici-
pating employer, or who has completed participation 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00167
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
168 
in such program, and who continues to meet the eli-
gibility requirements for emergency unemployment 
compensation under title IV of the Supplemental 
Appropriations Act, 2008 (Public Law 110–252; 26 
U.S.C. 3304 note), shall receive emergency unem-
ployment compensation payments with respect to 
subsequent weeks of unemployment, to the extent 
that amounts remain in the account established for 
such individual under section 4002(b) of such Act or 
to the extent that such individual commences receiv-
ing the amounts described in subsections (c), (d), or 
(e) of such section, respectively. 
(m) EFFECT OF OTHER LAWS.—Unless otherwise 
provided in this section, nothing in this section shall be 
construed to alter or affect the rights or obligations under 
any Federal, State, or local laws with respect to any indi-
vidual described in subsection (c)(1) and with respect to 
any participating employer under this section. 
(n) TREATMENT OF PAYMENTS.—All wages or other 
payments to an individual under this section shall be treat-
ed as payments of unemployment compensation for pur-
poses of section 209 of the Social Security Act (42 U.S.C. 
409) and for purposes of subtitle A and sections 3101, 
3111, and 3301 of the Internal Revenue Code of 1986. 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00168
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
169 
SEC. 325. WAGE INSURANCE. 
(a) IN GENERAL.—A State may use the funds allot-
ted to the State under this part to provide a wage insur-
ance program for EUC claimants. 
(b) BENEFITS.—The wage insurance program pro-
vided under this section may use funds allotted to the 
State under this part to pay, for a period not to exceed 
2 years, to a worker described in subsection (c), up to 50 
percent of the difference between— 
(1) the wages received by the worker at the 
time of separation; and 
(2) the wages received by the worker for reem-
ployment. 
(c) INDIVIDUAL
ELIGIBILITY.—The benefits de-
scribed in subsection (b) may be paid to an individual who 
is an EUC claimant at the time such individual obtains 
reemployment and who— 
(1) is at least 50 years of age; 
(2) earns not more than $50,000 per year in 
wages from reemployment; 
(3) is employed on a full-time basis as defined 
by the law of the State; and 
(4) is not employed by the employer from which 
the individual was last separated. 
(d) TOTAL AMOUNT OF PAYMENTS.—A State shall 
establish a maximum amount of payments per individual 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00169
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
170 
for purposes of payments described in subsection (b) dur-
ing the eligibility period described in such subsection. 
(e) NON-DISCRIMINATION REGARDING WAGES.—An 
employer shall not pay a worker described in subsection 
(c) less than such employer pays to a regular worker in 
the same or substantially equivalent position. 
SEC. 326. ENHANCED REEMPLOYMENT STRATEGIES. 
(a) IN GENERAL.—A State may use funds allotted 
under this part to provide a program of enhanced reem-
ployment services to EUC claimants. In addition to the 
provision of services to such claimants, the program may 
include the provision of reemployment services to individ-
uals who are unemployed and have exhausted their rights 
to emergency unemployment compensation under title IV 
of the Supplemental Appropriations Act, 2008, (Public 
Law 110–252; 26 U.S.C. 3304 note). The program shall 
provide reemployment services that are more intensive 
than the reemployment services provided by the State 
prior to the receipt of the allotment under this part. 
(b) TYPES OF SERVICES.—The enhanced reemploy-
ment services described in subsection (a) may include serv-
ices such as— 
(1) assessments, counseling, and other intensive 
services that are provided by staff on a one-to-one 
basis and may be customized to meet the reemploy-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00170
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
171 
ment needs of EUC claimants and individuals de-
scribed in subsection (a); 
(2) comprehensive assessments designed to 
identify alternative career paths; 
(3) case management; 
(4) reemployment services that are provided 
more frequently and more intensively than such re-
employment services have previously been provided 
by the State; and 
(5) services that are designed to enhance com-
munication skills, interviewing skills, and other skills 
that would assist in obtaining reemployment. 
SEC. 327. SELF-EMPLOYMENT PROGRAMS. 
A State may use funds allotted to the State under 
this part, in an amount specified under an approved State 
plan, for the administrative costs associated with starting 
up the self-employment assistance program described in 
section 4001(i) of the Supplemental Appropriations Act, 
2008, (Public Law 110–252; 26 U.S.C. 3304 note). 
SEC. 328. ADDITIONAL INNOVATIVE PROGRAMS. 
(a) IN GENERAL.—A State may use funds allotted 
under this part to provide a program for innovative activi-
ties, which use a strategy that is different from the reem-
ployment strategies described in sections 324–327 and 
which are designed to facilitate the reemployment of EUC 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00171
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
172 
claimants. In addition to the provision of activities to such 
claimants, the program may include the provision of activi-
ties to individuals who are unemployed and have exhausted 
their rights to emergency unemployment compensation 
under title IV of the Supplemental Appropriations Act, 
2008, (Public Law 110–252; 26 U.S.C. 3304 note). 
(b) CONDITIONS.—The innovative activities approved 
in accordance with subsection (a)— 
(1) shall directly benefit EUC claimants and, if 
applicable, individuals described in subsection (a), ei-
ther as a benefit paid to such claimant or individual 
or as a service provided to such claimant or indi-
vidual; 
(2) shall not result in a reduction in the dura-
tion or amount of, emergency unemployment com-
pensation for which EUC claimants would otherwise 
be eligible; 
(3) shall not include a reduction in the dura-
tion, amount of or eligibility for regular compensa-
tion or extended benefits; 
(4) shall not be used to displace (including a 
partial displacement, such as a reduction in the 
hours of non-overtime work, wages, or employment 
benefits) any currently employed employee (as of the 
date of the participation) or allow a program partici-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00172
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
173 
pant to perform work activities related to any job for 
which— 
(A) any other individual is on layoff from 
the same or any substantially equivalent job; 
(B) the employer has terminated the em-
ployment of any regular employee or otherwise 
reduced the workforce of the employer with the 
intention of filling or partially filling the va-
cancy so created with the work activities to be 
performed by a program participant; 
(C) there is a strike or lock out at the 
worksite that is the participant’s place of em-
ployment; or 
(D) the job is created in a manner that 
will infringe in any way upon the promotional 
opportunities of currently employed individuals 
(as of the date of the participation); and 
(5) shall not be in violation of any Federal, 
State, or local law. 
SEC. 329. GUIDANCE AND ADDITIONAL REQUIREMENTS. 
The Secretary of Labor may establish through guid-
ance, without regard to the requirements of section 553 
of title 5, United States Code, such additional require-
ments, including requirements regarding the allotment, re-
capture, and reallotment of funds, and reporting require-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00173
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
214 
(2) SUBMISSION
AND
APPROVAL
OF
STATE 
PLAN MODIFICATION OR REQUEST.— 
(A) SUBMISSION.—The Governor shall 
submit a modification of the State plan or other 
request for funds described in guidance in sub-
section (b) to the Secretary of Labor not later 
than 30 days after the issuance of such guid-
ance. The State plan modification or request for 
funds required under this subsection may be 
submitted in conjunction with the State plan re-
quired under section 364. 
(B) APPROVAL.—The Secretary of Labor 
shall approve the plan or request submitted 
under subparagraph (A) within 30 days after 
submission, unless the Secretary determines 
that the plan or request is inconsistent with the 
requirements of this section. If the Secretary 
has not made a determination within 30 days, 
the plan or request shall be considered ap-
proved. If the plan or request is disapproved, 
the Secretary may provide a reasonable period 
of time in which a disapproved plan or request 
may be amended and resubmitted for approval. 
If the plan or request is approved, the Sec-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00214
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
228 
(1) LOCAL
CHIEF
ELECTED
OFFICIAL.—The 
term ‘‘local chief elected official’’ means the chief 
elected executive officer of a unit of local govern-
ment in a local workforce investment area or in the 
case where more than one unit of general govern-
ment, the individuals designated under an agreement 
described in section 117(c)(1)(B) of the Workforce 
Investment Act of 1998. 
(2) LOCAL WORKFORCE INVESTMENT AREA.— 
The term ‘‘local workforce investment area’’ means 
such area designated under section 116 of the Work-
force Investment Act of 1998. 
(3) LOCAL WORKFORCE INVESTMENT BOARD.— 
The term ‘‘local workforce investment board’’ means 
such board established under section 117 of the 
Workforce Investment Act of 1998. 
(4) LOW-INCOME YOUTH.—The term ‘‘low-in-
come youth’’ means an individual who— 
(A) is aged 16 through 24; 
(B) meets the definition of a low-income 
individual provided in section 101(25) of the 
Workforce Investment Act of 1998, except that 
States, local workforce investment areas under 
section 365 and eligible entities under section 
366(c), subject to approval in the applicable 
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00228
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS
235 
(A) any provision stating or indicating that 
an individual’s status as unemployed disquali-
fies the individual for any employment oppor-
tunity; or 
(B) any provision stating or indicating that 
an employer will not consider or hire an indi-
vidual for any employment opportunity based 
on that individual’s status as unemployed; 
(2) fail or refuse to consider for employment, or 
fail or refuse to hire, an individual as an employee 
because of the individual’s status as unemployed; or 
(3) direct or request that an employment agen-
cy take an individual’s status as unemployed into ac-
count to disqualify an applicant for consideration, 
screening, or referral for employment as an em-
ployee. 
(b) EMPLOYMENT AGENCIES.—It shall be an unlaw-
ful employment practice for an employment agency to— 
(1) publish, in print or on the Internet or in 
any other medium, an advertisement or announce-
ment for any vacancy in a job, as an employee, that 
includes— 
(A) any provision stating or indicating that 
an individual’s status as unemployed disquali-
VerDate Mar 15 2010 
02:19 Jul 30, 2013
Jkt 029200
PO 00000
Frm 00235
Fmt 6652
Sfmt 6201
E:\BILLS\H2821.IH
H2821
pwalker on DSK7TPTVN1PROD with BILLS