SEC. 14. ENFORCEMENT AND PREVENTION OF FRAUD, 
WASTE, AND ABUSE. 
The Secretary shall establish and implement proce-
dures to prevent fraud and abuse of funds under this Act, 
and shall impose a requirement that grantees have an in-
ternal auditor to continuously monitor grantee perform-
ance 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 underperforming or mis-
managed grantees, and shall re-allocate those funds by 
formula to target areas with the greatest need, as deter-
mined 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. 
SEC. 15. CONFORMANCE OF POLICIES AND PROCEDURES. 
The Secretary of Housing and Urban Development 
shall to the extent feasible conform policies and procedures 
for grants made under this Act to the policies and prac-
tices already in place for the grants made under section 
2301 of the Housing and Economic Recovery Act of 2008; 
division A, title XII of the American Recovery and Rein-
VerDate Mar 15 2010 
15:55 Apr 01, 2013
Jkt 029200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H1397.IH
H1397
srobinson on DSK4SPTVN1PROD with BILLS
vestment Act of 2009; or section 1497 of the Dodd-Frank 
Wall Street Reform and Consumer Protection Act. 
SEC. 16. SEVERABILITY. 
If any provision of this Act, or the application thereof 
to any person or circumstance, is held invalid, the remain-
der of the Act and the application of such provision to 
other persons or circumstances shall not be affected there-
by. 
SEC. 17. BUY AMERICAN—USE OF AMERICAN IRON, STEEL, 
AND MANUFACTURED GOODS. 
(a) BUY AMERICAN.—None of the funds appro-
priated or otherwise made available by this Act may be 
used for a project for the construction, alteration, mainte-
nance, or repair of a public building or public work unless 
all of the iron, steel, and manufactured goods used in the 
project are produced in the United States. 
(b) EXCEPTIONS.—Subsection (a) shall not apply in 
any case or category of cases in which the head of the 
Federal department or agency involved finds that— 
(1) applying subsection (a) would be incon-
sistent with the public interest; 
(2) iron, steel, and the relevant manufactured 
goods are not produced in the United States in suffi-
cient and reasonably available quantities and of a 
satisfactory quality; or 
VerDate Mar 15 2010 
15:55 Apr 01, 2013
Jkt 029200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H1397.IH
H1397
srobinson on DSK4SPTVN1PROD with BILLS
(3) inclusion of iron, steel, and manufactured 
goods produced in the United States will increase 
the cost of the overall project by more than 25 per-
cent. 
(c) PUBLICATION.—If the head of a Federal depart-
ment or agency determines that it is necessary to waive 
the application of subsection (a) based on a finding under 
subsection (b), the head of the department or agency shall 
publish in the Federal Register a detailed written justifica-
tion as to why the provision is being waived. 
(d) CONSISTENCY WITH INTERNATIONAL AGREE-
MENTS.—This section shall be applied in a manner con-
sistent with United States obligations under international 
agreements. 
SEC. 18. WAGE RATE AND EMPLOYMENT PROTECTION RE-
QUIREMENTS. 
(a) WAGE RATES.—Notwithstanding any other provi-
sion of law and in a manner consistent with other provi-
sions in this Act, all laborers and mechanics employed by 
contractors and subcontractors on projects funded directly 
by or assisted in whole or in part by and through the Fed-
eral Government pursuant to this Act shall be paid wages 
at rates not less than those prevailing on projects of a 
character similar in the locality as determined by the Sec-
VerDate Mar 15 2010 
15:55 Apr 01, 2013
Jkt 029200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H1397.IH
H1397
srobinson on DSK4SPTVN1PROD with BILLS
retary of Labor in accordance with subchapter IV of chap-
ter 31 of title 40, United States Code. 
(b) LABOR STANDARDS.—With respect to the labor 
standards specified in this section, the Secretary of Labor 
shall have the authority and functions set forth in Reorga-
nization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 
U.S.C. App.) and section 3145 of title 40, United States 
Code. 
(c) PROJECTS.—Projects as defined under title 49, 
United States Code, funded directly by or assisted in 
whole or in part by and through the Federal Government 
pursuant to this Act shall be subject to the requirements 
of section 5333(b) of title 49, United States Code. 
Æ 
VerDate Mar 15 2010 
15:55 Apr 01, 2013
Jkt 029200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6301
E:\BILLS\H1397.IH
H1397
srobinson on DSK4SPTVN1PROD with BILLS