tified by the Secretary as a qualified appren-
ticeship or other training program provided it is 
registered with the Department of Labor, Office 
of Apprenticeship, or a State apprenticeship 
agency recognized by the Office of Apprentice-
ship for Federal purposes. 
(C) APPRENTICE UTILIZATION.—Each con-
tractor and subcontractor performing work on 
contracts subject to this section shall employ 
apprentices or trainees enrolled in qualified ap-
prenticeship programs to the maximum extent 
permitted in the program’s written standards, 
and shall submit adequate assurances that it is 
not party to contractual agreements that pre-
clude its ability to meet the targeted hiring re-
quirements set forth in paragraph (1). 
(3) DEFINITIONS.—For purposes of this sec-
tion— 
(A) the term ‘‘labor market area’’ has the 
meaning given such term in section 101(18) of 
the Workforce Investment Act of 1998 (29 
U.S.C. 2801(18)); 
(B) the term ‘‘qualified apprenticeship pro-
gram’’ means an apprenticeship or other train-
ing program that qualifies as an ‘‘employee wel-
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fare benefit plan’’ as defined in section 3(1) of 
the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1002(1)); and 
(C) the term ‘‘targeted workers’’ means in-
dividuals who reside in the same labor market 
area as the applicable project and who— 
(i)(I) are members of families that re-
ceived a total income, that during the 2- 
year period prior to employment on the 
project or admission to the pre-apprentice-
ship program, did not exceed 200 percent 
of the Federal poverty guidelines (exclusive 
of unemployment compensation, child sup-
port payments, payments described in 29 
United States Code section 2801(25)(A), 
and old-age and survivors insurance bene-
fits received under section 202 of the So-
cial Security Act (42 U.S.C. 402)); and 
(II) reside in a census tract in which 
not less than 20 percent of the households 
have income below the Federal poverty 
guidelines; 
(ii) are members of a targeted group, 
within the meaning of section 51 of the In-
ternal Revenue Code of 1986; or 
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(iii) qualify as ‘‘displaced home-
makers’’ as such term is defined in section 
3(10) of the Carl D. Perkins Career and 
Technical Education Act of 2006 (20 
U.S.C. 2302(10)). 
(c) FACILITATING COMPLIANCE AND PROJECT EFFI-
CIENCY.—In order to achieve the purposes of this section 
and to promote prompt completion of construction projects 
undertaken pursuant to this Act, the Secretary of Labor 
may require that contractors and subcontractors per-
forming construction work under a contract subject to this 
section enter into an agreement consistent with the stand-
ards set forth in section 4 of Executive Order 13502 and 
the requirements of subsection (b)(1) of this section. 
(d) IMPLEMENTATION.— 
(1) IN GENERAL.—No law or regulation gov-
erning the operations or activities of any agency re-
sponsible for implementing provisions of this section 
shall be interpreted to prohibit Federal agencies, 
funding recipients, contractors, or subcontractors, 
from advancing the purposes of this section through 
additional project requirements or actions. The Sec-
retary of Labor shall be responsible for ensuring the 
implementation and enforcement of this section, in-
cluding investigating noncompliance, and shall, not 
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later than 180 days after the date of enactment of 
this Act, adopt such rules, regulations, and guid-
ance, and issue such orders as the Secretary deter-
mines necessary and appropriate to achieve the pur-
poses of this section. 
(2) COMPLIANCE.—In the event of material 
noncompliance with this section by a recipient, con-
tractor, or subcontractor, the Secretary of Labor 
shall have the authority to assess and collect pen-
alties from such recipient, contractor, or subcon-
tractor of not more than 5 percent of the contract 
amount. The Secretary shall allow for reduction or 
avoidance of penalty assessments for non-compliance 
with the targeted hiring requirements of subsection 
(b)(1) only where the entity in question dem-
onstrates that— 
(A) compliance was impossible because of a 
shortage of targeted workers in the local labor 
market; and 
(B) the employer utilized all specified 
measures to obtain targeted workers. 
The Secretary may specify measures required to be 
taken to obtain targeted workers. 
(e) DEDICATED RESOURCES FOR TRAINING AND RE-
CRUITMENT.—In order to facilitate the objectives of this 
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section, not less than 1 percent of any funds authorized 
and appropriated or otherwise allocated for construction 
for fiscal year 2012 shall be set aside to— 
(1) provide pre-apprenticeship training and 
other support services through programs that have 
strong track records of placing targeted workers into 
sustained employment in the construction trades and 
that have written agreements with qualified appren-
ticeship programs; 
(2) provide support to community-based organi-
zations that have written agreements with programs 
described in subsection (b)(2) to participate in such 
programs by recruiting targeted workers; or 
(3) provide support to contractors either— 
(A) that are community-based nonprofit 
organizations that both— 
(i) have a governing body in which a 
majority the members qualify as targeted 
workers; and 
(ii) have less than one million dollars 
in annual revenue from construction work 
of any type, or 
(B) in which such a community-based non-
profit organization has a 100 percent control-
ling interest for work relating to such Act to 
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