American Jobs Act of 2011 - Prohibits the use of funds made available by this Act for a project for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron, steel, and manufactured goods used in such project are produced in the United States (Buy American).
Waives such prohibition in cases where: (1) the prohibition would be inconsistent with the public interest; (2) iron, steel, and the relevant manufactured goods are not produced in the United States in sufficient and reasonably available quantities of a satisfactory quality; or (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%.
Requires all laborers and mechanics employed by contractors and subcontractors on federally-assisted projects to be paid wages at the locally prevailing rates (Davis-Bacon Act).
Amends the Internal Revenue Code to: (1) reduce employment and self-employment tax rates in 2012 to 3.1%; (2) allow employers a tax credit for payroll increases in the last quarter of 2011 and in 2012; (3) extend the 100% bonus depreciation allowance through 2012; (4) delay until 2014 the 3% withholding requirement on payments due to vendors who provide services to federal, state, and local governmental entities; and (5) increase the work opportunity tax credit for hiring unemployed veterans.
Amends the Small Business Investment Act of 1958 to increase from $2 million to $5 million the limit on the guarantee for contract surety bonds and on the liability for bonds obtained by fraud or misrepresentation.
Directs the Secretary of Education to allocate grants to states and, through them, subgrants to local educational agencies (LEAs) for the costs of retaining, recalling, rehiring, or hiring employees to provide early childhood, elementary, or secondary education and related services.
Requires LEAs and state-funded early learning programs to obligate such funding by September 30, 2013.
Prohibits the use of such grants to supplant state funding for education.
Directs the Attorney General to carry out a competitive grant program pursuant to the Omnibus Crime Control and Safe Streets Act of 1968 for the hiring, rehiring, or retention of career law enforcement officers. Makes appropriations to the Community Oriented Policing Stabilization Fund to carry out such program and for transfer to a First Responder Stabilization Fund from which the Secretary of Homeland Security (DHS) shall make competitive grants for hiring additional firefighters pursuant to the Federal Fire Prevention Control Act of 1974.
Directs the Secretary of Education to allocate grants to states and, through them, subgrants to local educational agencies (LEAs) to modernize, renovate, or repair early learning or elementary or secondary education facilities.
Requires the Secretary to allocate grants directly to the 100 LEAs with the largest numbers of children aged 5-17 living in poverty.
Requires states to give subgrant priority to projects that comply with certain green building standards.
Prohibits the use of such grants for new construction, routine maintenance costs, or on facilities used for events for which the public is charged admission.
Allows private, nonprofit elementary or secondary schools with a rate of child poverty of at least 40% to participate in the program on a limited basis.
Directs the Secretary to allocate grants to states to modernize, renovate, or repair existing facilities at community colleges.
Prohibits the use of such grants: (1) for routine maintenance costs, (2) on facilities used for events for which the public is charged admission, or (3) on facilities which are used for sectarian purposes.
Requires states, in providing assistance to community college projects, to consider the extent to which the project complies with certain green building standards.
Makes specified funds available to the Secretary of Transportation (DOT) for: (1) grants-in-aid for airport planning and development and noise compatibility planning projects under the airport improvement program (AIP); (2) Federal Aviation Administration (FAA) Next Generation air traffic control system advancements; (3) highway and bridge restoration, repair, and construction projects and for passenger and freight rail transportation and port infrastructure projects; (4) grants for high-speed rail projects, capital investment grants for intercity passenger rail service, and grants to reduce congestion on intercity rail passenger transportation; (5) capital grants to the National Railroad Passenger Corporation (Amtrak); (6) transit capital assistance grants; (7) capital projects for existing fixed guideway system modernization, replacement and repair of buses and bus-related equipment, and construction of bus-related facilities; and (8) discretionary capital investment grants for surface transportation infrastructure.
Authorizes the Secretary to establish standards under which contracts for construction projects contain requirements for the local hiring of individuals to perform construction work under such contracts.
Requires projects to comply with Buy American requirements.
Building and Upgrading Infrastructure for Long-Term Development Act - Establishes the American Infrastructure Financing Authority (AIFA) as a wholly-owned government corporation to make direct loans and loan guarantees to facilitate transportation, water, or energy infrastructure projects. Requires infrastructure projects assisted under this Act to have costs that are reasonably anticipated to equal or exceed $100 million ($25 million for rural infrastructure projects).
Sets forth special requirements for infrastructure projects in rural areas. Requires the AIFA Chief Lending Officer to establish: (1) an Office of Rural Assistance to provide technical assistance in the development and financing of rural infrastructure projects, and (2) a Center for Excellence to provide such assistance to public sector borrowers for the same purpose.
Establishes an Office of Special Inspector General to audit and investigate the business activities of AIFA.
Makes private projects for which no public benefit is created ineligible for financial assistance. Sets forth terms for loans or loan guarantees for infrastructure projects.
Requires the Chief Executive Officer of AIFA to establish and collect fees sufficient to cover AIFA administrative costs.
Amends the Internal Revenue Code to extend through 2012 the exemption from the alternative minimum tax (AMT) for certain tax-exempt private activity bonds.
Appropriates funds for assistance to eligible entities including state and local governments, and qualified nonprofit organizations, businesses or eligible consortia for the redevelopment of abandoned and foreclosed-upon properties and for stabilization of affected neighborhoods (Project Rebuild).
Allows the use of funds to: (1) establish financing mechanisms for the purchase and redevelopment of abandoned and foreclosed-upon properties; (2) purchase and rehabilitate such properties; (3) establish and operate land banks for them; (4) demolish blighted structures (except public housing); and (5) redevelop abandoned, foreclosed, demolished, or vacant properties.
Requires each state to receive at least $20 million of formula funds, all of which shall be used with respect to low and moderate-income individuals and families.
Requires each state and local government grantee to establish procedures to create preferences for development of affordable rental housing.
Allows a grantee to use up to 10% to create jobs by establishing and operating a program to maintain eligible neighborhood properties.
Amends the National Telecommunications and Information Administration Organization Act to permit: (1) payments from the Spectrum Relocation Fund to reimburse certain federal entities for relocation or sharing costs incurred by planning for a potential or planned auction of spectrum frequencies or the reallocation of spectrum from federal use to exclusive nonfederal (currently, required) or shared federal and nonfederal use, and (2) federal entities to allow nonfederal entities access to frequency assignments with National Telecommunications and Information Administration (NTIA) approval. Revises the categories of relocation and sharing costs.
Authorizes the Federal Communications Commission (FCC), if it is consistent with the public interest in spectrum utilization for a licensee to voluntarily relinquish licensed spectrum usage rights in order to permit the assignment of new initial licenses through a competitive bidding process subject to new service rules, or to permit the designation of new spectrum for unlicensed use, to pay to such licensee a portion of any auction proceeds attributable to the licensee's relinquished spectrum usage rights. Permits the FCC, if it is in the public interest to modify the spectrum usage rights of any incumbent licensee to facilitate such new assignments and designations, to pay a portion of auction proceeds to incumbent licensees relocating to designated alternative frequencies or locations.
Requires the FCC to: (1) notify Congress of the methodology (considering the value of spectrum vacated in its current use and the timeliness of clearing) for calculating such payments to licensees at least three months before the relevant auction, and (2) assign at least the first 84 megahertz from certain specified bands through a competitive bidding process.
Extends permanently (currently, expires on September 30, 2012) the FCC's authority to grant a license or permit under applicable competitive bidding provisions.
Sets forth requirements concerning: (1) terrestrial broadband rights on spectrum primarily licensed for mobile satellite services, and (2) domestic satellite communications services licenses.
Directs: (1) the Assistant Secretary of Commerce for Communications and Information and the FCC or the President to identify specified frequencies for competitive bidding or other reallocation or sharing, and (2) the FCC to auction specified frequency ranges.
Modifies competitive bidding system design requirements.
Amends the Communications Act of 1934 to authorize the FCC to establish and collect annual user fees for: (1) initial spectrum licenses or construction permits that are not granted through competitive bidding; and (2) renewals or modifications of initial licenses or other authorizations, whether or not granted through competitive bidding. Sets forth required minimum collection amounts for FY2012-FY2021.
Requires that all such proceeds be deposited in the general fund of the Treasury.
Directs the FCC to: (1) establish, by regulation, a fee-collection methodology and schedule; and (2) exempt broadcast television and public safety services licensees from such fees.
Increases the allocation of electromagnetic spectrum for public safety entities by: (1) directing the FCC to reallocate to such entities specified frequencies of the 700 MHz D block spectrum; and (2) amending the Communications Act of 1934 to increase public safety services allocation and reduce commercial use allocation by 10 megahertz within a specified range. Authorizes flexible use of narrowband spectrum, including for public safety broadband communications, subject to exceptions.
Establishes the Public Safety Broadband Corporation as a private, nonprofit corporation required to: (1) hold the single public safety wireless license (a license to be reallocated and granted by the FCC for an initial 10-year term renewable, upon application, for subsequent terms, each term a maximum of 15 years) for the 700 MHz D block and existing public safety broadband spectrums; and (2) build, deploy, and operate a nationwide public safety interoperable broadband network.
Supporting Unemployed Workers Act of 2011 - Amends the Supplemental Appropriations Act, 2008 (SSA, 2008) with respect to the state-established individual emergency unemployment compensation account (EUCA). Extends the final date for entering a federal-state agreement under the Emergency Unemployment Compensation (EUC) program through January 3, 2013. Postpones the termination of the program until June 8, 2013.
Amends the Assistance for Unemployed Workers and Struggling Families Act to extend until January 4, 2013, requirements that federal payments to states cover 100% of EUC.
Amends the Unemployment Compensation Extension Act of 2008 to exempt weeks of unemployment between enactment of this Act and June 9, 2013, from the prohibition in the Federal-State Extended Unemployment Compensation Act of 1970 (FSEUCA of 1970) against federal matching payments to a state for the first week in an individual's eligibility period for which extended compensation or sharable regular compensation is paid if the state law provides for payment of regular compensation to an individual for his or her first week of otherwise compensable unemployment. (Thus allows temporary federal matching for the first week of extended benefits for states with no waiting period.)
Amends the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 with respect to a state's authority to apply certain requirements of the FSEUCA of 1970, with specified substitutions, for determining an extended unemployment compensation period.
Requires the state's "on" and "off" indicators to be based on its rate of insured unemployment and rate of total unemployment for the period beginning on the enactment of the FSEUCA of 1970 (or, if later, the date established pursuant to state law) and ending on or before December 31, 2012 (currently, December 31, 2011).
Amends the SSA, 2008 to include in a federal-state agreement under the EUC program a requirement that a state provide reemployment services and reemployment eligibility assessment activities to certain recipients of EUC.
Conditions an individual's continuing eligibility for EUC for any week on whether such individual has been referred to such services or activities and participated, or has completed such participation, unless there is justifiable cause for failure to do so.
Authorizes the federal-state agreement to require that a state agency administering EUC establish a self-employment assistance program to provide for the payment of EUC for up to 26 weeks as self-employment assistance allowances to individuals who meet specified eligibility criteria. Allows a participant in a self-employment assistance program to opt to discontinue such participation.
Requires any state that establishes a Bridge to Work program under the Supporting Unemployment Workers Act of 2011 to deduct from an individual's EUC account necessary sums to pay wages for such individual.
Amends the Railroad Unemployment Insurance Act, as amended by the American Recovery and Reinvestment Act of 2009, and as amended by the Worker, Homeownership, and Business Assistance Act of 2009, to extend through December 31, 2012, the temporary increase in extended unemployment benefits for employees with 10 or more years of service as well as for those with less than 10.
Establishes the Reemployment NOW program to facilitate the reemployment of individuals receiving emergency unemployment compensation (EUC claimants). Requires a state to submit for approval by the Secretary of Labor a state plan meeting certain minimum requirements in order to be eligible for an allotment of federal funds under the program.
Authorizes a state to use its allotted funds to establish a Bridge to Work program to provide EUC claimants with short-term work experience placements with eligible employers to increase opportunities for such individuals to move to permanent employment.
Authorizes a state to use its allotted funds to provide a wage insurance program to pay, for up to two years, an EUC claimant who obtains reemployment up to 50% of the difference between the wages received by the worker at the time of work separation and the wages the worker received for reemployment.
Authorizes a state to its allotted funds to provide: (1) a program of enhanced reemployment services to EUC claimants, including unemployed individuals who have exhausted their EUC rights; (2) for the administrative costs associated with starting up certain self-employment assistance programs; and (3) for additional innovative programs designed to facilitate the reemployment of EUC claimants.
Amends the Internal Revenue Code to set forth requirements relating to short-time compensation programs to allow employers to reduce the workweek of their employees in lieu of layoffs.
Provides for federal financing of state short-time compensation programs. Requires the Secretary of Labor to: (1) award grants to states that enact such programs; (2) develop model legislative language for use by states in developing, enacting, and implementing such programs; and (3) report to Congress and the President on the implementation of such programs.
Allows an increased work opportunity tax credit for long-term unemployed individuals (individuals who are unemployed and receiving unemployment compensation for six months or more).
Pathways Back to Work Act of 2011 - Establishes the Pathways Back to Work Fund, with an initial appropriation of $5 billion.
Requires the Secretary of Labor to make certain Fund allocations to states with approved plans, qualifying outlying areas (U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Republic of Palau), and Native American program grantees to provide: (1) subsidized employment to unemployed, low-income adults; and (2) summer and year-round employment opportunities to low-income youth.
Requires the Secretary to award competitive grants to local entities for work-based training and other work-related and educational strategies and activities of demonstrated effectiveness to provide unemployed, low-income adults and low-income youths with skills that will lead to employment.
Subjects activities funded under this Act to federal labor standards and nondiscrimination protections.
Fair Employment Opportunity Act of 2011 - Makes it an unlawful practice for certain employers to: (1) publish an advertisement or announcement for a job with provisions indicating that an individual's status as unemployed disqualifies the individual for employment, or that the employer will not consider or hire an individual for employment based on such status; (2) fail or refuse to consider or hire an individual because of such status; or (3) direct or request that an employment agency take an individual's status into account to disqualify an applicant for consideration for employment, or when screening or referring employees.
Makes it an unlawful practice for an employment agency to commit similar acts, including to: (1) screen, or fail or refuse to consider or refer, an individual for employment because of the individual's unemployed status; or (2) limit, segregate, or classify any individual in any manner that would limit access to job information, or consideration, screening, or referral for jobs.
Makes it unlawful for any employer or employment agency to: (1) interfere with, restrain, or deny the exercise of any right provided under this Act; or (2) fail or refuse to hire, discharge, or otherwise discriminate against an employee because such individual opposed any practice made unlawful by this Act or asserted any right under it.
Prescribes enforcement authorities with respect to violations of this Act.
Authorizes an individual, or any person acting on the individual's behalf, who files a claim in the appropriate U.S. court alleging violation of the prohibitions of this Act to receive: (1) an order enjoining the unlawful employment practice, (2) the reimbursement of costs expended as a result of such practice, (3) liquidated damages of at least $1,000 for each day of the violation, and (4) reasonable attorney's fees (including expert fees) and court costs.
Amends the Internal Revenue Code to impose on individual taxpayers in taxable years beginning after 2012 an additional tax equal to 5.6% of so much of their modified adjusted gross income as exceeds $1 million. Defines "modified adjusted gross income" as adjusted gross income reduced by any deduction allowed for investment interest. Provides for an inflation adjustment to the $1 million threshold amount for taxable years beginning after 2013.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1660 Placed on Calendar Senate (PCS)]
Calendar No. 187
112th CONGRESS
1st Session
S. 1660
To provide tax relief for American workers and businesses, to put
workers back on the job while rebuilding and modernizing America, and
to provide pathways back to work for Americans looking for jobs.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 5, 2011
Mr. Reid introduced the following bill; which was read the first time
October 6, 2011
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To provide tax relief for American workers and businesses, to put
workers back on the job while rebuilding and modernizing America, and
to provide pathways back to work for Americans looking for jobs.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``American Jobs Act
of 2011''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. Severability.
Sec. 4. Buy American--Use of American iron, steel, and manufactured
goods.
Sec. 5. Wage rate and employment protection requirements.
TITLE I--RELIEF FOR WORKERS AND BUSINESSES
Subtitle A--Payroll Tax Relief
Sec. 101. Temporary payroll tax cut for employers, employees and the
self-employed.
Sec. 102. Temporary tax credit for increased payroll.
Subtitle B--Other Relief for Businesses
Sec. 111. Extension of temporary 100 percent bonus depreciation for
certain business assets.
Sec. 112. Surety bonds.
Sec. 113. Delay in application of withholding on government
contractors.
TITLE II--PUTTING WORKERS BACK ON THE JOB WHILE REBUILDING AND
MODERNIZING AMERICA
Subtitle A--Veterans Hiring Preferences
Sec. 201. Returning heroes and wounded warriors work opportunity tax
credits.
Subtitle B--Teacher Stabilization
Sec. 202. Purpose.
Sec. 203. Grants for the outlying areas and the Secretary of the
Interior; availability of funds.
Sec. 204. State allocation.
Sec. 205. State application.
Sec. 206. State reservation and responsibilities.
Sec. 207. Local educational agencies.
Sec. 208. Early learning.
Sec. 209. Maintenance of effort.
Sec. 210. Reporting.
Sec. 211. Definitions.
Sec. 212. Authorization of appropriations.
Subtitle C--First Responder Stabilization
Sec. 213. Purpose.
Sec. 214. Grant program.
Sec. 215. Appropriations.
Subtitle D--School Modernization
PART I--Elementary and Secondary Schools
Sec. 221. Purpose.
Sec. 222. Authorization of appropriations.
Sec. 223. Allocation of funds.
Sec. 224. State use of funds.
Sec. 225. State and local applications.
Sec. 226. Use of funds.
Sec. 227. Private schools.
Sec. 228. Additional provisions.
PART II--Community College Modernization
Sec. 229. Federal assistance for community college modernization.
PART III--General Provisions
Sec. 230. Definitions.
Sec. 231. Buy American.
Subtitle E--Immediate Transportation Infrastrucure Investments
Sec. 241. Immediate transportation infrastructure investments.
Subtitle F--Building and Upgrading Infrastructure for Long-Term
Development
Sec. 242. Short title; table of contents.
Sec. 243. Findings and purpose.
Sec. 244. Definitions.
PART I--American Infrastructure Financing Authority
Sec. 245. Establishment and general authority of AIFA.
Sec. 246. Voting members of the board of directors.
Sec. 247. Chief executive officer of AIFA.
Sec. 248. Powers and duties of the board of directors.
Sec. 249. Senior management.
Sec. 250. Special Inspector General for AIFA.
Sec. 251. Other personnel.
Sec. 252. Compliance.
PART II--Terms and Limitations on Direct Loans and Loan Guarantees
Sec. 253. Eligibility criteria for assistance from AIFA and terms and
limitations of loans.
Sec. 254. Loan terms and repayment.
Sec. 255. Compliance and enforcement.
Sec. 256. Audits; reports to the President and Congress.
PART III--Funding of AIFA
Sec. 257. Administrative fees.
Sec. 258. Efficiency of AIFA.
Sec. 259. Funding.
PART IV--Extension of Exemption From Alternative Minimum Tax Treatment
for Certain Tax-Exempt Bonds
Sec. 260. Extension of exemption from alternative minimum tax treatment
for certain tax-exempt bonds.
Subtitle G--Project Rebuild
Sec. 261. Project Rebuild.
Subtitle H--National Wireless Initiative
Sec. 271. Definitions.
PART I--Auctions of Spectrum and Spectrum Management
Sec. 272. Clarification of authorities to repurpose Federal spectrum
for commercial purposes.
Sec. 273. Incentive auction authority.
Sec. 274. Requirements when repurposing certain mobile satellite
services spectrum for terrestrial broadband
use.
Sec. 275. Permanent extension of auction authority.
Sec. 276. Authority to auction licenses for domestic satellite
services.
Sec. 277. Directed auction of certain spectrum.
Sec. 278. Authority to establish spectrum license user fees.
PART II--Public Safety Broadband Network
Sec. 281. Reallocation of D block for public safety.
Sec. 282. Flexible use of narrowband spectrum.
Sec. 283. Single public safety wireless network licensee.
Sec. 284. Establishment of Public Safety Broadband Corporation.
Sec. 285. Board of directors of the corporation.
Sec. 286. Officers, employees, and committees of the corporation.
Sec. 287. Nonprofit and nonpolitical nature of the corporation.
Sec. 288. Powers, duties, and responsibilities of the corporation.
Sec. 289. Initial funding for corporation.
Sec. 290. Permanent self-funding; duty to assess and collect fees for
network use.
Sec. 291. Audit and report.
Sec. 292. Annual report to Congress.
Sec. 293. Provision of technical assistance.
Sec. 294. State and local implementation.
Sec. 295. State and Local Implementation Fund.
Sec. 296. Public safety wireless communications research and
development.
Sec. 297. Public Safety Trust Fund.
Sec. 298. FCC report on efficient use of public safety spectrum.
Sec. 299. Public safety roaming and priority access.
TITLE III--ASSISTANCE FOR THE UNEMPLOYED AND PATHWAYS BACK TO WORK
Subtitle A--Supporting Unemployed Workers
Sec. 301. Short title.
PART I--Extension of Emergency Unemployment Compensation and Certain
Extended Benefits Provisions, and Establishment of Self-Employment
Assistance Program
Sec. 311. Extension of emergency unemployment compensation program.
Sec. 312. Temporary extension of extended benefit provisions.
Sec. 313. Reemployment services and reemployment and eligibility
assessment activities.
Sec. 314. Federal-State agreements to administer a self-employment
assistance program.
Sec. 315. Conforming amendment on payment of Bridge to Work wages.
Sec. 316. Additional extended unemployment benefits under the Railroad
Unemployment Insurance Act.
PART II--Reemployment NOW Program
Sec. 321. Establishment of Reemployment NOW program.
Sec. 322. Distribution of funds.
Sec. 323. State plan.
Sec. 324. Bridge to Work program.
Sec. 325. Wage insurance.
Sec. 326. Enhanced reemployment strategies.
Sec. 327. Self-employment programs.
Sec. 328. Additional innovative programs.
Sec. 329. Guidance and additional requirements.
Sec. 330. Report of information and evaluations to Congress and the
public.
Sec. 331. State.
PART III--Short-Time Compensation Program
Sec. 341. Treatment of short-time compensation programs.
Sec. 342. Temporary financing of short-time compensation payments in
States with programs in law.
Sec. 343. Temporary financing of short-time compensation agreements.
Sec. 344. Grants for short-time compensation programs.
Sec. 345. Assistance and guidance in implementing programs.
Sec. 346. Reports.
Subtitle B--Long Term Unemployed Hiring Preferences
Sec. 351. Long term unemployed workers work opportunity tax credits.
Subtitle C--Pathways Back to Work
Sec. 361. Short title.
Sec. 362. Establishment of Pathways Back to Work Fund.
Sec. 363. Availability of funds.
Sec. 364. Subsidized employment for unemployed, low-income adults.
Sec. 365. Summer employment and year-round employment opportunities for
low-income youth.
Sec. 366. Work-based employment strategies of demonstrated
effectiveness.
Sec. 367. General requirements.
Sec. 368. Definitions.
Subtitle D--Prohibition of Discrimination in Employment on the Basis of
an Individual's Status as Unemployed
Sec. 371. Short title.
Sec. 372. Findings and purpose.
Sec. 373. Definitions.
Sec. 374. Prohibited acts.
Sec. 375. Enforcement.
Sec. 376. Federal and State immunity.
Sec. 377. Relationship to other laws.
Sec. 378. Severability.
TITLE IV--SURTAX ON MILLIONAIRES
Sec. 401. Surtax on millionaires.
SEC. 2. REFERENCES.
Except as expressly provided otherwise, any reference to ``this
Act'' contained in any subtitle of this Act shall be treated as
referring only to the provisions of that subtitle.
SEC. 3. SEVERABILITY.
If any provision of this Act, or the application thereof to any
person or circumstance, is held invalid, the remainder of the Act and
the application of such provision to other persons or circumstances
shall not be affected thereby.
SEC. 4. BUY AMERICAN--USE OF AMERICAN IRON, STEEL, AND MANUFACTURED
GOODS.
(a) None of the funds appropriated or otherwise made available by
this Act may be used for a project for the construction, alteration,
maintenance, 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) 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 inconsistent with the
public interest;
(2) iron, steel, and the relevant manufactured goods are
not produced in the United States in sufficient and reasonably
available quantities and of a satisfactory quality; or
(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 percent.
(c) If the head of a Federal department 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 justification
as to why the provision is being waived.
(d) This section shall be applied in a manner consistent with
United States obligations under international agreements.
SEC. 5. WAGE RATE AND EMPLOYMENT PROTECTION REQUIREMENTS.
(a) Notwithstanding any other provision of law and in a manner
consistent with other provisions 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 Federal
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 Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40, United States Code.
(b) With respect to the labor standards specified in this section,
the Secretary of Labor shall have the authority and functions set forth
in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C.
App.) and section 3145 of title 40, United States Code.
(c) 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.
TITLE I--RELIEF FOR WORKERS AND BUSINESSES
Subtitle A--Payroll Tax Relief
SEC. 101. TEMPORARY PAYROLL TAX CUT FOR EMPLOYERS, EMPLOYEES AND THE
SELF-EMPLOYED.
(a) Wages.--Notwithstanding any other provision of law--
(1) with respect to remuneration received during the
payroll tax holiday period, the rate of tax under 3101(a) of
the Internal Revenue Code of 1986 shall be 3.1 percent
(including for purposes of determining the applicable
percentage under sections 3201(a) and 3211(a) of such Code),
and
(2) with respect to remuneration paid during the payroll
tax holiday period, the rate of tax under 3111(a) of such Code
shall be 3.1 percent (including for purposes of determining the
applicable percentage under sections 3221(a) and 3211(a) of
such Code).
(3) Subsection (a)(2) shall only apply to--
(A) employees performing services in a trade or
business of a qualified employer, or
(B) in the case of a qualified employer exempt from
tax under section 501(a), in furtherance of the
activities related to the purpose or function
constituting the basis of the employer's exemption
under section 501.
(4) Subsection (a)(2) shall apply only to the first $5
million of remuneration or compensation paid by a qualified
employer subject to section 3111(a) or a corresponding amount
of compensation subject to 3221(a).
(b) Self-Employment Taxes.--
(1) In general.--Notwithstanding any other provision of
law, with respect to any taxable year which begins in the
payroll tax holiday period, the rate of tax under section
1401(a) of the Internal Revenue Code of 1986 shall be--
(A) 6.2 percent on the portion of net earnings from
self-employment subject to 1401(a) during the payroll
tax period that does not exceed the amount of the
excess of $5 million over total remuneration, if any,
subject to section 3111(a) paid during the payroll tax
holiday period to employees of the self-employed
person, and
(B) 9.3 percent for any portion of net earnings
from self-employment not subject to subsection
(b)(1)(A).
(2) Coordination with deductions for employment taxes.--For
purposes of the Internal Revenue Code of 1986, in the case of
any taxable year which begins in the payroll tax holiday
period--
(A) Deduction in computing net earnings from self-
employment.--The deduction allowed under section
1402(a)(12) of such Code shall be the sum of (i) 4.55
percent times the amount of the taxpayer's net earnings
from self-employment for the taxable year subject to
paragraph (b)(1)(A) of this section, plus (ii) 7.65
percent of the taxpayer's net earnings from self-
employment in excess of that amount.
(B) Individual deduction.--The deduction under
section 164(f) of such Code shall be equal to the sum
of (i) one-half of the taxes imposed by section 1401
(after the application of this section) with respect to
the taxpayer's net earnings from self-employment for
the taxable year subject to paragraph (b)(1)(A) of this
section plus (ii) 62.7 percent of the taxes imposed by
section 1401 (after the application of this section)
with respect to the excess.
(c) Regulatory Authority.--The Secretary may prescribe any such
regulations or other guidance necessary or appropriate to carry out
this section, including the allocation of the excess of $5 million over
total remuneration subject to section 3111(a) paid during the payroll
tax holiday period among related taxpayers treated as a single
qualified employer.
(d) Definitions.--
(1) Payroll tax holiday period.--The term ``payroll tax
holiday period'' means calendar year 2012.
(2) Qualified employer.--For purposes of this paragraph,
(A) In general.--The term ``qualified employer''
means any employer other than the United States, any
State or possession of the United States, or any
political subdivision thereof, or any instrumentality
of the foregoing.
(B) Treatment of employees of post-secondary
educational institutions.--Notwithstanding paragraph
(A), the term ``qualified employer'' includes any
employer which is a public institution of higher
education (as defined in section 101 of the Higher
Education Act of 1965).
(3) Aggregation rules.--For purposes of this subsection
rules similar to sections 414(b), 414(c), 414(m) and 414(o)
shall apply to determine when multiple entities shall be
treated as a single employer, and rules with respect to
predecessor and successor employers may be applied, in such
manner as may be prescribed by the Secretary.
(e) Transfers of Funds.--
(1) Transfers to federal old-age and survivors insurance
trust fund.--There are hereby appropriated to the Federal Old-
Age and Survivors Trust Fund and the Federal Disability
Insurance Trust Fund established under section 201 of the
Social Security Act (42 U.S.C. 401) amounts equal to the
reduction in revenues to the Treasury by reason of the
application of subsections (a) and (b) to employers other than
those described in (e)(2). Amounts appropriated by the
preceding sentence shall be transferred from the general fund
at such times and in such manner as to replicate to the extent
possible the transfers which would have occurred to such Trust
Fund had such amendments not been enacted.
(2) Transfers to social security equivalent benefit
account.--There are hereby appropriated to the Social Security
Equivalent Benefit Account established under section 15A(a) of
the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(a))
amounts equal to the reduction in revenues to the Treasury by
reason of the application of subsection (a) to employers
subject to the Railroad Retirement Tax. Amounts appropriated by
the preceding sentence shall be transferred from the general
fund at such times and in such manner as to replicate to the
extent possible the transfers which would have occurred to such
Account had such amendments not been enacted.
(f) Coordination With Other Federal Laws.--For purposes of applying
any provision of Federal law other than the provisions of the Internal
Revenue Code of 1986, the rate of tax in effect under section 3101(a)
of such Code shall be determined without regard to the reduction in
such rate under this section.
SEC. 102. TEMPORARY TAX CREDIT FOR INCREASED PAYROLL.
(a) In General.--Notwithstanding any other provision of law, each
qualified employer shall be allowed, with respect to wages for services
performed for such qualified employer, a payroll increase credit
determined as follows:
(1) With respect to the period from October 1, 2011 through
December 31, 2011, 6.2 percent of the excess, if any, (but not
more than $12.5 million of the excess) of the wages subject to
tax under section 3111(a) of the Internal Revenue Code of 1986
for such period over such wages for the corresponding period of
2010.
(2) With respect to the period from January 1, 2012 through
December 31, 2012,
(A) 6.2 percent of the excess, if any, (but not
more than $50 million of the excess) of the wages
subject to tax under section 3111(a) of the Internal
Revenue Code of 1986 for such period over such wages
for calendar year 2011, minus
(B) 3.1 percent of the result (but not less than
zero) of subtracting from $5 million such wages for
calendar year 2011.
(3) In the case of a qualified employer for which the wages
subject to tax under section 3111(a) of the Internal Revenue
Code of 1986 (a) were zero for the corresponding period of 2010
referred to in subsection (a)(1), the amount of such wages
shall be deemed to be 80 percent of the amount of wages taken
into account for the period from October 1, 2011 through
December 31, 2011 and (b) were zero for the calendar year 2011
referred to in subsection (a)(2), then the amount of such wages
shall be deemed to be 80 percent of the amount of wages taken
into account for 2012.
(4) This subsection (a) shall only apply with respect to
the wages of employees performing services in a trade or
business of a qualified employer or, in the case of a qualified
employer exempt from tax under section 501(a) of the Internal
Revenue Code of 1986, in furtherance of the activities related
to the purpose or function constituting the basis of the
employer's exemption under section 501.
(b) Qualified Employers.--For purposes of this section--
(1) In general.--The term ``qualified employer'' means any
employer other than the United States, any State or possession
of the United States, or any political subdivision thereof, or
any instrumentality of the foregoing.
(2) Treatment of employees of post-secondary educational
institutions.--Notwithstanding subparagraph (1), the term
``qualified employer'' includes any employer which is a public
institution of higher education (as defined in section 101 of
the Higher Education Act of 1965).
(c) Aggregation Rules.--For purposes of this subsection rules
similar to sections 414(b), 414(c), 414(m) and 414(o) of the Internal
Revenue Code of 1986 shall apply to determine when multiple entities
shall be treated as a single employer, and rules with respect to
predecessor and successor employers may be applied, in such manner as
may be prescribed by the Secretary.
(d) Application of Credits.--The payroll increase credit shall be
treated as a credit allowable under Subtitle C of the Internal Revenue
Code of 1986 under rules prescribed by the Secretary of the Treasury,
provided that the amount so treated for the period described in
subsection (a)(1) or subsection (a)(2) shall not exceed the amount of
tax imposed on the qualified employer under section 3111(a) of such
Code for the relevant period. Any income tax deduction by a qualified
employer for amounts paid under section 3111(a) of such Code or similar
Railroad Retirement Tax provisions shall be reduced by the amounts so
credited.
(e) Transfers to Federal Old-Age and Survivors Insurance Trust
Fund.--There are hereby appropriated to the Federal Old-Age and
Survivors Trust Fund and the Federal Disability Insurance Trust Fund
established under section 201 of the Social Security Act (42 U.S.C.
401) amounts equal to the reduction in revenues to the Treasury by
reason of the amendments made by subsection (d). Amounts appropriated
by the preceding sentence shall be transferred from the general fund at
such times and in such manner as to replicate to the extent possible
the transfers which would have occurred to such Trust Fund had such
amendments not been enacted.
(f) Application to Railroad Retirement Taxes.--For purposes of
qualified employers that are employers under section 3231(a) of the
Internal Revenue Code of 1986, subsections (a)(1) and (a)(2) of this
section shall apply by substituting section 3221 for section 3111, and
substituting the term ``compensation'' for ``wages'' as appropriate.
Subtitle B--Other Relief for Businesses
SEC. 111. EXTENSION OF TEMPORARY 100 PERCENT BONUS DEPRECIATION FOR
CERTAIN BUSINESS ASSETS.
(a) In General.--Paragraph (5) of section 168(k) of the Internal
Revenue Code is amended--
(1) by striking ``January 1, 2012'' each place it appears
and inserting ``January 1, 2013'', and
(2) by striking ``January 1, 2013'' and inserting ``January
1, 2014''.
(b) Conforming Amendment.--The heading for paragraph (5) of section
168(k) of the Internal Revenue Code is amended by striking ``PRE-2012
PERIODS'' and inserting ``PRE-2013 PERIODS''.
SEC. 112. SURETY BONDS.
(a) Maximum Bond Amount.--Section 411(a)(1) of the Small Business
Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is amended by striking
``$2,000,000'' and inserting ``$5,000,000''.
(b) Denial of Liability.--Section 411(e)(2) of the Small Business
Investment Act of 1958 (15 U.S.C. 694b(e)(2)) is amended by striking
``$2,000,000'' and inserting ``$5,000,000''.
(c) Sunset.--The amendments made by subsections (a) and (b) of this
section shall remain in effect until September 30, 2012.
(d) Funding.--There is appropriated out of any money in the
Treasury not otherwise appropriated, $3,000,000, to remain available
until expended, for additional capital for the Surety Bond Guarantees
Revolving Fund, as authorized by the Small Business Investment Act of
1958, as amended.
SEC. 113. DELAY IN APPLICATION OF WITHHOLDING ON GOVERNMENT
CONTRACTORS.
Subsection (b) of section 511 of the Tax Increase Prevention and
Reconciliation Act of 2005 is amended by striking ``December 31, 2011''
and inserting ``December 31, 2013''.
TITLE II--PUTTING WORKERS BACK ON THE JOB WHILE REBUILDING AND
MODERNIZING AMERICA
Subtitle A--Veterans Hiring Preferences
SEC. 201. RETURNING HEROES AND WOUNDED WARRIORS WORK OPPORTUNITY TAX
CREDITS.
(a) In General.--Paragraph (3) of section 51(b) of the Internal
Revenue Code is amended by striking ``($12,000 per year in the case of
any individual who is a qualified veteran by reason of subsection
(d)(3)(A)(ii))'' and inserting ``($12,000 per year in the case of any
individual who is a qualified veteran by reason of subsection
(d)(3)(A)(ii)(I), $14,000 per year in the case of any individual who is
a qualified veteran by reason of subsection (d)(3)(A)(iv), and $24,000
per year in the case of any individual who is a qualified veteran by
reason of subsection (d)(3)(A)(ii)(II))''.
(b) Returning Heroes Tax Credits.--Section 51(d)(3)(A) of the
Internal Revenue Code is amended by striking ``or'' at the end of
paragraph (3)(A)(i), and inserting the following new paragraphs after
paragraph (ii)--
``(iii) having aggregate periods of
unemployment during the 1-year period ending on
the hiring date which equal or exceed 4 weeks
(but less than 6 months), or
``(iv) having aggregate periods of
unemployment during the 1-year period ending on
the hiring date which equal or exceed 6
months.''.
(c) Simplified Certification.--Section 51(d) of the Internal
Revenue Code is amended by adding a new paragraph 15 as follows--
``(15) Credit allowed for unemployed veterans.--
``(A) In general.--Any qualified veteran under
paragraphs (3)(A)(ii)(II), (3)(A)(iii), and (3)(A)(iv)
will be treated as certified by the designated local
agency as having aggregate periods of unemployment if--
``(i) in the case of qualified veterans
under paragraphs (3)(A)(ii)(II) and (3)(A)(iv),
the veteran is certified by the designated
local agency as being in receipt of
unemployment compensation under State or
Federal law for not less than 6 months during
the 1-year period ending on the hiring date; or
``(ii) in the case of a qualified veteran
under paragraph (3)(A)(iii), the veteran is
certified by the designated local agency as
being in receipt of unemployment compensation
under State or Federal law for not less than 4
weeks (but less than 6 months) during the 1-
year period ending on the hiring date.
``(B) Regulatory authority.--The Secretary in his
discretion may provide alternative methods for
certification.''.
(d) Credit Made Available to Tax-Exempt Employers in Certain
Circumstances.--Section 52(c) of the Internal Revenue Code is amended--
(1) by striking the word ``No'' at the beginning of the
section and replacing it with ``Except as provided in this
subsection, no'';
(2) the following new paragraphs are inserted at the end of
section 52(c)--
``(1) In general.--In the case of a tax-exempt employer,
there shall be treated as a credit allowable under subpart C
(and not allowable under subpart D) the lesser of--
``(A) the amount of the work opportunity credit
determined under this subpart with respect to such
employer that is related to the hiring of qualified
veterans described in sections 51(d)(3)(A)(ii)(II),
(iii) or (iv); or
``(B) the amount of the payroll taxes of the
employer during the calendar year in which the taxable
year begins.
``(2) Credit amount.--In calculating for tax-exempt
employers, the work opportunity credit shall be determined by
substituting `26 percent' for `40 percent' in section 51(a) and
by substituting `16.25 percent' for `25 percent' in section
51(i)(3)(A).
``(3) Tax-exempt employer.--For purposes of this subpart,
the term `tax-exempt employer' means an employer that is--
``(i) an organization described in section 501(c)
and exempt from taxation under section 501(a), or
``(ii) a public higher education institution (as
defined in section 101 of the Higher Education Act of
1965).
``(4) Payroll taxes.--For purposes of this subsection--
``(A) In general.--The term `payroll taxes' means--
``(i) amounts required to be withheld from
the employees of the tax-exempt employer under
section 3401(a),
``(ii) amounts required to be withheld from
such employees under section 3101(a), and
``(iii) amounts of the taxes imposed on the
tax-exempt employer under section 3111(a).''.
(e) Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possessions.--The Secretary of the
Treasury shall pay to each possession of the United
States with a mirror code tax system amounts equal to
the loss to that possession by reason of the
application of this section (other than this
subsection). Such amounts shall be determined by the
Secretary of the Treasury based on information provided
by the government of the respective possession of the
United States.
(B) Other possessions.--The Secretary of the
Treasury shall pay to each possession of the United
States, which does not have a mirror code tax system,
amounts estimated by the Secretary of the Treasury as
being equal to the aggregate credits that would have
been provided by the possession by reason of the
application of this section (other than this
subsection) if a mirror code tax system had been in
effect in such possession. The preceding sentence shall
not apply with respect to any possession of the United
States unless such possession has a plan, which has
been approved by the Secretary of the Treasury, under
which such possession will promptly distribute such
payments.
(2) Coordination with credit allowed against united states
income taxes.--No increase in the credit determined under
section 38(b) of the Internal Revenue Code of 1986 that is
attributable to the credit provided by this section (other than
this subsection (e)) shall be taken into account with respect
to any person--
(A) to whom a credit is allowed against taxes
imposed by the possession of the United States by
reason of this section for such taxable year, or
(B) who is eligible for a payment under a plan
described in paragraph (1)(B) with respect to such
taxable year.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes
of this subsection (e), the term ``possession of the
United States'' includes American Samoa, the
Commonwealth of the Northern Mariana Islands, the
Commonwealth of Puerto Rico, Guam, and the United
States Virgin Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means,
with respect to any possession of the United States,
the income tax system of such possession if the income
tax liability of the residents of such possession under
such system is determined by reference to the income
tax laws of the United States as if such possession
were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, rules
similar to the rules of section 1001(b)(3)(C) of the
American Recovery and Reinvestment Tax Act of 2009
shall apply.
(f) Effective Date.--The amendment made by this section shall apply
to individuals who begin work for the employer after the date of the
enactment of this Act.
Subtitle B--Teacher Stabilization
SEC. 202. PURPOSE.
The purpose of this subtitle is to provide funds to States to
prevent teacher layoffs and support the creation of additional jobs in
public early childhood, elementary, and secondary education in the
2011-2012 and 2012-2013 school years.
SEC. 203. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE
INTERIOR; AVAILABILITY OF FUNDS.
(a) Reservation of Funds.--From the amount appropriated to carry
out this subtitle under section 212, the Secretary--
(1) shall reserve up to one-half of one percent to provide
assistance to the outlying areas on the basis of their
respective needs, as determined by the Secretary, for
activities consistent with this part under such terms and
conditions as the Secretary may determine;
(2) shall reserve up to one-half of one percent to provide
assistance to the Secretary of the Interior to carry out
activities consistent with this part, in schools operated or
funded by the Bureau of Indian Education; and
(3) may reserve up to $2,000,000 for administration and
oversight of this part, including program evaluation.
(b) Availability of Funds.--Funds made available under section 212
shall remain available to the Secretary until September 30, 2012.
SEC. 204. STATE ALLOCATION.
(a) Allocation.--After reserving funds under section 203(a), the
Secretary shall allocate to the States--
(1) 60 percent on the basis of their relative population of
individuals aged 5 through 17; and
(2) 40 percent on the basis of their relative total
population.
(b) Awards.--From the funds allocated under subsection (a), the
Secretary shall make a grant to the Governor of each State who submits
an approvable application under section 214.
(c) Alternate Distribution of Funds.--
(1) If, within 30 days after the date of enactment of this
Act, a Governor has not submitted an approvable application to
the Secretary, the Secretary shall, consistent with paragraph
(2), provide for funds allocated to that State to be
distributed to another entity or other entities in the State
for the support of early childhood, elementary, and secondary
education, under such terms and conditions as the Secretary may
establish.
(2) Maintenance of effort.--
(A) Governor assurance.--The Secretary shall not
allocate funds under paragraph (1) unless the Governor
of the State provides an assurance to the Secretary
that the State will for fiscal years 2012 and 2013 meet
the requirements of section 209.
(B) Notwithstanding subparagraph (A), the Secretary
may allocate up to 50 percent of the funds that are
available to the State under paragraph (1) to another
entity or entities in the State, provided that the
State educational agency submits data to the Secretary
demonstrating that the State will for fiscal year 2012
meet the requirements of section 209(a) or the
Secretary otherwise determines that the State will meet
those requirements, or such comparable requirements as
the Secretary may establish, for that year.
(3) Requirements.--An entity that receives funds under
paragraph (1) shall use those funds in accordance with the
requirements of this subtitle.
(d) Reallocation.--If a State does not receive funding under this
subtitle or only receives a portion of its allocation under subsection
(c), the Secretary shall reallocate the State's entire allocation or
the remaining portion of its allocation, as the case may be, to the
remaining States in accordance with subsection (a).
SEC. 205. STATE APPLICATION.
The Governor of a State desiring to receive a grant under this
subtitle shall submit an application to the Secretary within 30 days of
the date of enactment of this Act, in such manner, and containing such
information as the Secretary may reasonably require to determine the
State's compliance with applicable provisions of law.
SEC. 206. STATE RESERVATION AND RESPONSIBILITIES.
(a) Reservation.--Each State receiving a grant under section 204(b)
may reserve--
(1) not more than 10 percent of the grant funds for awards
to State-funded early learning programs; and
(2) not more than 2 percent of the grant funds for the
administrative costs of carrying out its responsibilities under
this subtitle.
(b) State Responsibilities.--Each State receiving a grant under
this subtitle shall, after reserving any funds under subsection (a)--
(1) use the remaining grant funds only for awards to local
educational agencies for the support of early childhood,
elementary, and secondary education; and
(2) distribute those funds, through subgrants, to its local
educational agencies by distributing--
(A) 60 percent on the basis of the local
educational agencies' relative shares of enrollment;
and
(B) 40 percent on the basis of the local
educational agencies' relative shares of funds received
under part A of title I of the Elementary and Secondary
Education Act of 1965 for fiscal year 2011; and
(3) make those funds available to local educational
agencies no later than 100 days after receiving a grant from
the Secretary.
(c) Prohibitions.--A State shall not use funds received under this
subtitle to directly or indirectly--
(1) establish, restore, or supplement a rainy-day fund;
(2) supplant State funds in a manner that has the effect of
establishing, restoring, or supplementing a rainy-day fund;
(3) reduce or retire debt obligations incurred by the
State; or
(4) supplant State funds in a manner that has the effect of
reducing or retiring debt obligations incurred by the State.
SEC. 207. LOCAL EDUCATIONAL AGENCIES.
Each local educational agency that receives a subgrant under this
subtitle--
(1) shall use the subgrant funds only for compensation and
benefits and other expenses, such as support services,
necessary to retain existing employees, recall or rehire former
employees, or hire new employees to provide early childhood,
elementary, or secondary educational and related services;
(2) shall obligate those funds no later than September 30,
2013; and
(3) may not use those funds for general administrative
expenses or for other support services or expenditures, as
those terms are defined by the National Center for Education
Statistics in the Common Core of Data, as of the date of
enactment of this Act.
SEC. 208. EARLY LEARNING.
Each State-funded early learning program that receives funds under
this subtitle shall--
(1) use those funds only for compensation, benefits, and
other expenses, such as support services, necessary to retain
early childhood educators, recall or rehire former early
childhood educators, or hire new early childhood educators to
provide early learning services; and
(2) obligate those funds no later than September 30, 2013.
SEC. 209. MAINTENANCE OF EFFORT.
(a) The Secretary shall not allocate funds to a State under this
subtitle unless the State provides an assurance to the Secretary that--
(1) for State fiscal year 2012--
(A) the State will maintain State support for early
childhood, elementary, and secondary education (in the
aggregate or on the basis of expenditure per pupil) and
for public institutions of higher education (not
including support for capital projects or for research
and development or tuition and fees paid by students)
at not less than the level of such support for each of
the two categories for State fiscal year 2011; or
(B) the State will maintain State support for early
childhood, elementary, and secondary education and for
public institutions of higher education (not including
support for capital projects or for research and
development or tuition and fees paid by students) at a
percentage of the total revenues available to the State
that is equal to or greater than the percentage
provided for State fiscal year 2011; and
(2) for State fiscal year 2013--
(A) the State will maintain State support for early
childhood, elementary, and secondary education (in the
aggregate or on the basis of expenditure per pupil) and
for public institutions of higher education (not
including support for capital projects or for research
and development or tuition and fees paid by students)
at not less than the level of such support for each of
the two categories for State fiscal year 2012; or
(B) the State will maintain State support for early
childhood, elementary, and secondary education and for
public institutions of higher education (not including
support for capital projects or for research and
development or tuition and fees paid by students) at a
percentage of the total revenues available to the State
that is equal to or greater than the percentage
provided for State fiscal year 2012.
(b) Waiver.--The Secretary may waive the requirements of this
section if the Secretary determines that a waiver would be equitable
due to--
(1) exceptional or uncontrollable circumstances, such as a
natural disaster; or
(2) a precipitous decline in the financial resources of the
State.
SEC. 210. REPORTING.
Each State that receives a grant under this subtitle shall submit,
on an annual basis, a report to the Secretary that contains--
(1) a description of how funds received under this part
were expended or obligated; and
(2) an estimate of the number of jobs supported by the
State using funds received under this subtitle.
SEC. 211. DEFINITIONS.
(a) Except as otherwise provided, the terms ``local educational
agency'', ``outlying area'', ``Secretary'', ``State'', and ``State
educational agency'' have the meanings given those terms in section
9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).
(b) The term ``State'' does not include an outlying area.
(c) The term ``early childhood educator'' means an individual who--
(1) works directly with children in a State-funded early
learning program in a low-income community;
(2) is involved directly in the care, development, and
education of infants, toddlers, or young children age five and
under; and
(3) has completed a baccalaureate or advanced degree in
early childhood development or early childhood education, or in
a field related to early childhood education.
(d) The term ``State-funded early learning program'' means a
program that provides educational services to children from birth to
kindergarten entry and receives funding from the State.
SEC. 212. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated, and there are
appropriated, $30,000,000,000 to carry out this subtitle for fiscal
year 2012.
Subtitle C--First Responder Stabilization
SEC. 213. PURPOSE.
The purpose of this subtitle is to provide funds to States and
localities to prevent layoffs of, and support the creation of
additional jobs for, law enforcement officers and other first
responders.
SEC. 214. GRANT PROGRAM.
The Attorney General shall carry out a competitive grant program
pursuant to section 1701 of title I of the Omnibus Crime Control and
Safe Streets Act of 1968 (42 U.S.C. 3796dd) for hiring, rehiring, or
retention of career law enforcement officers under part Q of such
title. Grants awarded under this section shall not be subject to
subsections (g) or (i) of section 1701 or to section 1704 of such Act
(42 U.S.C. 3796dd-3(c)).
SEC. 215. APPROPRIATIONS.
There are hereby appropriated to the Community Oriented Policing
Stabilization Fund out of any money in the Treasury not otherwise
obligated, $5,000,000,000, to remain available until September 30,
2012, of which $4,000,000,000 shall be for the Attorney General to
carry out the competitive grant program under Section 214; and of which
$1,000,000,000 shall be transferred by the Attorney General to a First
Responder Stabilization Fund from which the Secretary of Homeland
Security shall make competitive grants for hiring, rehiring, or
retention pursuant to the Federal Fire Prevention and Control Act of
1974 (15 U.S.C. 2201 et seq.), to carry out section 34 of such Act (15
U.S.C. 2229a). In making such grants, the Secretary may grant waivers
from the requirements in subsections (a)(1)(A), (a)(1)(B), (a)(1)(E),
(c)(1), (c)(2), and (c)(4)(A) of section 34. Of the amounts
appropriated herein, not to exceed $8,000,000 shall be for
administrative costs of the Attorney General, and not to exceed
$2,000,000 shall be for administrative costs of the Secretary of
Homeland Security.
Subtitle D--School Modernization
PART I--ELEMENTARY AND SECONDARY SCHOOLS
SEC. 221. PURPOSE.
The purpose of this part is to provide assistance for the
modernization, renovation, and repair of elementary and secondary
school buildings in public school districts across America in order to
support the achievement of improved educational outcomes in those
schools.
SEC. 222. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated, and there are
appropriated, $25,000,000,000 to carry out this part, which shall be
available for obligation by the Secretary until September 30, 2012.
SEC. 223. ALLOCATION OF FUNDS.
(a) Reservations.--Of the amount made available to carry out this
part, the Secretary shall reserve--
(1) one-half of one percent for the Secretary of the
Interior to carry out modernization, renovation, and repair
activities described in section 226 in schools operated or
funded by the Bureau of Indian Education;
(2) one-half of one percent to make grants to the outlying
areas for modernization, renovation, and repair activities
described in section 226; and
(3) such funds as the Secretary determines are needed to
conduct a survey, by the National Center for Education
Statistics, of the school construction, modernization,
renovation, and repair needs of the public schools of the
United States.
(b) State Allocation.--After reserving funds under subsection (a),
the Secretary shall allocate the remaining amount among the States in
proportion to their respective allocations under part A of title I of
the Elementary and Secondary Education Act (ESEA) (20 U.S.C. 6311 et
seq.) for fiscal year 2011, except that--
(1) the Secretary shall allocate 40 percent of such
remaining amount to the 100 local educational agencies with the
largest numbers of children aged 5-17 living in poverty, as
determined using the most recent data available from the
Department of Commerce that are satisfactory to the Secretary,
in proportion to those agencies' respective allocations under
part A of title I of the ESEA for fiscal year 2011; and
(2) the allocation to any State shall be reduced by the
aggregate amount of the allocations under paragraph (1) to
local educational agencies in that State.
(c) Remaining Allocation.--
(1) If a State does not apply for its allocation (or
applies for less than the full allocation for which it is
eligible) or does not use that allocation in a timely manner,
the Secretary may--
(A) reallocate all or a portion of that allocation
to the other States in accordance with subsection (b);
or
(B) use all or a portion of that allocation to make
direct allocations to local educational agencies within
the State based on their respective allocations under
part A of title I of the ESEA for fiscal year 2011 or
such other method as the Secretary may determine.
(2) If a local educational agency does not apply for its
allocation under subsection (b)(1), applies for less than the
full allocation for which it is eligible, or does not use that
allocation in a timely manner, the Secretary may reallocate all
or a portion of its allocation to the State in which that
agency is located.
SEC. 224. STATE USE OF FUNDS.
(a) Reservation.--Each State that receives a grant under this part
may reserve not more than one percent of the State's allocation under
section 223(b) for the purpose of administering the grant, except that
no State may reserve more than $750,000 for this purpose.
(b) Funds to Local Educational Agencies.--
(1) Formula subgrants.--From the grant funds that are not
reserved under subsection (a), a State shall allocate at least
50 percent to local educational agencies, including charter
schools that are local educational agencies, that did not
receive funds under section 223(b)(1) from the Secretary, in
accordance with their respective allocations under part A of
title I of the ESEA for fiscal year 2011, except that no such
local educational agency shall receive less than $10,000.
(2) Additional subgrants.--The State shall use any funds
remaining, after reserving funds under subsection (a) and
allocating funds under paragraph (1), for subgrants to local
educational agencies that did not receive funds under section
223(b)(1), including charter schools that are local educational
agencies, to support modernization, renovation, and repair
projects that the State determines, using objective criteria,
are most needed in the State, with priority given to projects
in rural local educational agencies.
(c) Remaining Funds.--If a local educational agency does not apply
for an allocation under subsection (b)(1), applies for less than its
full allocation, or fails to use that allocation in a timely manner,
the State may reallocate any unused portion to other local educational
agencies in accordance with subsection (b).
SEC. 225. STATE AND LOCAL APPLICATIONS.
(a) State Application.--A State that desires to receive a grant
under this part shall submit an application to the Secretary at such
time, in such manner, and containing such information and assurances as
the Secretary may require, which shall include--
(1) an identification of the State agency or entity that
will administer the program; and
(2) the State's process for determining how the grant funds
will be distributed and administered, including--
(A) how the State will determine the criteria and
priorities in making subgrants under section 224(b)(2);
(B) any additional criteria the State will use in
determining which projects it will fund under that
section;
(C) a description of how the State will consider--
(i) the needs of local educational agencies
for assistance under this part;
(ii) the impact of potential projects on
job creation in the State;
(iii) the fiscal capacity of local
educational agencies applying for assistance;
(iv) the percentage of children in those
local educational agencies who are from low-
income families; and
(v) the potential for leveraging assistance
provided by this program through matching or
other financing mechanisms;
(D) a description of how the State will ensure that
the local educational agencies receiving subgrants meet
the requirements of this part;
(E) a description of how the State will ensure that
the State and its local educational agencies meet the
deadlines established in section 228;
(F) a description of how the State will give
priority to the use of green practices that are
certified, verified, or consistent with any applicable
provisions of--
(i) the LEED Green Building Rating System;
(ii) Energy Star;
(iii) the CHPS Criteria;
(iv) Green Globes; or
(v) an equivalent program adopted by the
State or another jurisdiction with authority
over the local educational agency;
(G) a description of the steps that the State will
take to ensure that local educational agencies
receiving subgrants will adequately maintain any
facilities that are modernized, renovated, or repaired
with subgrant funds under this part; and
(H) such additional information and assurances as
the Secretary may require.
(b) Local Application.--A local educational agency that is eligible
under section 223(b)(1) that desires to receive a grant under this part
shall submit an application to the Secretary at such time, in such
manner, and containing such information and assurances as the Secretary
may require, which shall include--
(1) a description of how the local educational agency will
meet the deadlines and requirements of this part;
(2) a description of the steps that the local educational
agency will take to adequately maintain any facilities that are
modernized, renovated, or repaired with funds under this part;
and
(3) such additional information and assurances as the
Secretary may require.
SEC. 226. USE OF FUNDS.
(a) In General.--Funds awarded to local educational agencies under
this part shall be used only for either or both of the following
modernization, renovation, or repair activities in facilities that are
used for elementary or secondary education or for early learning
programs:
(1) Direct payments for school modernization, renovation,
and repair.
(2) To pay interest on bonds or payments for other
financing instruments that are newly issued for the purpose of
financing school modernization, renovation, and repair.
(b) Supplement, Not Supplant.--Funds made available under this part
shall be used to supplement, and not supplant, other Federal, State,
and local funds that would otherwise be expended to modernize,
renovate, or repair eligible school facilities.
(c) Prohibition.--Funds awarded to local educational agencies under
this part may not be used for--
(1) new construction;
(2) payment of routine maintenance costs; or
(3) modernization, renovation, or repair of stadiums or
other facilities primarily used for athletic contests or
exhibitions or other events for which admission is charged to
the general public.
SEC. 227. PRIVATE SCHOOLS.
(a) In General.--Section 9501 of the ESEA (20 U.S.C. 7881) shall
apply to this part in the same manner as it applies to activities under
that Act, except that--
(1) section 9501 shall not apply with respect to the title
to any real property modernized, renovated, or repaired with
assistance provided under this section;
(2) the term ``services'', as used in section 9501 with
respect to funds under this part, shall be provided only to
private, nonprofit elementary or secondary schools with a rate
of child poverty of at least 40 percent and may include only--
(A) modifications of school facilities necessary to
meet the standards applicable to public schools under
the Americans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.);
(B) modifications of school facilities necessary to
meet the standards applicable to public schools under
section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794); and
(C) asbestos or polychlorinated biphenyls abatement
or removal from school facilities; and
(3) expenditures for services provided using funds made
available under section 226 shall be considered equal for
purposes of section 9501(a)(4) of the ESEA if the per-pupil
expenditures for services described in paragraph (2) for
students enrolled in private nonprofit elementary and secondary
schools that have child-poverty rates of at least 40 percent
are consistent with the per-pupil expenditures under this
subpart for children enrolled in the public schools of the
local educational agency receiving funds under this subpart.
(b) Remaining Funds.--If the expenditure for services described in
paragraph (2) is less than the amount calculated under paragraph (3)
because of insufficient need for those services, the remainder shall be
available to the local educational agency for modernization,
renovation, and repair of its school facilities.
(c) Application.--If any provision of this section, or the
application thereof, to any person or circumstance is judicially
determined to be invalid, the remainder of the section and the
application to other persons or circumstances shall not be affected
thereby.
SEC. 228. ADDITIONAL PROVISIONS.
(a) Funds appropriated under section 222 shall be available for
obligation by local educational agencies receiving grants from the
Secretary under section 223(b)(1), by States reserving funds under
section 224(a), and by local educational agencies receiving subgrants
under section 224(b)(1) only during the period that ends 24 months
after the date of enactment of this Act.
(b) Funds appropriated under section 222 shall be available for
obligation by local educational agencies receiving subgrants under
section 224(b)(2) only during the period that ends 36 months after the
date of enactment of this Act.
(c) Section 439 of the General Education Provisions Act (20 U.S.C.
1232b) shall apply to funds available under this part.
(d) For purposes of section 223(b)(1), Hawaii, the District of
Columbia, and the Commonwealth of Puerto Rico are not local educational
agencies.
PART II--COMMUNITY COLLEGE MODERNIZATION
SEC. 229. FEDERAL ASSISTANCE FOR COMMUNITY COLLEGE MODERNIZATION.
(a) In General.--
(1) Grant program.--From the amounts made available under
subsection (h), the Secretary shall award grants to States to
modernize, renovate, or repair existing facilities at community
colleges.
(2) Allocation.--
(A) Reservations.--Of the amount made available to
carry out this section, the Secretary shall reserve--
(i) up to 0.25 percent for grants to
institutions that are eligible under section
316 of the Higher Education Act of 1965 (20
U.S.C. 1059c) to provide for modernization,
renovation, and repair activities described in
this section; and
(ii) up to 0.25 percent for grants to the
outlying areas to provide for modernization,
renovation, and repair activities described in
this section.
(B) Allocation.--After reserving funds under
subparagraph (A), the Secretary shall allocate to each
State that has an application approved by the Secretary
an amount that bears the same relation to any remaining
funds as the total number of students in such State who
are enrolled in institutions described in section
230(b)(1)(A) plus the number of students who are
estimated to be enrolled in and pursuing a degree or
certificate that is not a bachelor's, master's,
professional, or other advanced degree in institutions
described in section 230(b)(1)(B), based on the
proportion of degrees or certificates awarded by such
institutions that are not bachelor's, master's,
professional, or other advanced degrees, as reported to
the Integrated Postsecondary Data System bears to the
estimated total number of such students in all States,
except that no State shall receive less than
$2,500,000.
(C) Reallocation.--Amounts not allocated under this
section to a State because the State either did not
submit an application under subsection (b), the State
submitted an application that the Secretary determined
did not meet the requirements of such subsection, or
the State cannot demonstrate to the Secretary a
sufficient demand for projects to warrant the full
allocation of the funds, shall be proportionately
reallocated under this paragraph to the other States
that have a demonstrated need for, and are receiving,
allocations under this section.
(D) State administration.--A State that receives a
grant under this section may use not more than one
percent of that grant to administer it, except that no
State may use more than $750,000 of its grant for this
purpose.
(3) Supplement, not supplant.--Funds made available under
this section shall be used to supplement, and not supplant,
other Federal, State, and local funds that would otherwise be
expended to modernize, renovate, or repair existing community
college facilities.
(b) Application.--A State that desires to receive a grant under
this section shall submit an application to the Secretary at such time,
in such manner, and containing such information and assurances as the
Secretary may require. Such application shall include a description
of--
(1) how the funds provided under this section will improve
instruction at community colleges in the State and will improve
the ability of those colleges to educate and train students to
meet the workforce needs of employers in the State; and
(2) the projected start of each project and the estimated
number of persons to be employed in the project.
(c) Prohibited Uses of Funds.--
(1) In general.--No funds awarded under this section may be
used for--
(i) payment of routine maintenance costs;
(ii) construction, modernization, renovation, or
repair of stadiums or other facilities primarily used
for athletic contests or exhibitions or other events
for which admission is charged to the general public;
or
(iii) construction, modernization, renovation, or
repair of facilities--
(I) used for sectarian instruction,
religious worship, or a school or department of
divinity; or
(II) in which a substantial portion of the
functions of the facilities are subsumed in a
religious mission.
(2) Four-year institutions.--No funds awarded to a four-
year public institution of higher education under this section
may be used for any facility, service, or program of the
institution that is not available to students who are pursuing
a degree or certificate that is not a bachelor's, master's,
professional, or other advanced degree.
(d) Green Projects.--In providing assistance to community college
projects under this section, the State shall consider the extent to
which a community college's project involves activities that are
certified, verified, or consistent with the applicable provisions of--
(1) the LEED Green Building Rating System;
(2) Energy Star;
(3) the CHPS Criteria, as applicable;
(4) Green Globes; or
(5) an equivalent program adopted by the State or the State
higher education agency that includes a verifiable method to
demonstrate compliance with such program.
(e) Application of GEPA.--Section 439 of the General Education
Provisions Act such Act (20 U.S.C. 1232b) shall apply to funds
available under this subtitle.
(f) Reports by the States.--Each State that receives a grant under
this section shall, not later than September 30, 2012, and annually
thereafter for each fiscal year in which the State expends funds
received under this section, submit to the Secretary a report that
includes--
(1) a description of the projects for which the grant was,
or will be, used;
(2) a description of the amount and nature of the
assistance provided to each community college under this
section; and
(3) the number of jobs created by the projects funded under
this section.
(g) Report by the Secretary.--The Secretary shall submit to the
authorizing committees (as defined in section 103 of the Higher
Education Act of 1965; 20 U.S.C. 1003) an annual report on the grants
made under this section, including the information described in
subsection (f).
(h) Availability of Funds.--
(1) There are authorized to be appropriated, and there are
appropriated, to carry out this section (in addition to any
other amounts appropriated to carry out this section and out of
any money in the Treasury not otherwise appropriated),
$5,000,000,000 for fiscal year 2012.
(2) Funds appropriated under this subsection shall be
available for obligation by community colleges only during the
period that ends 36 months after the date of enactment of this
Act.
PART III--GENERAL PROVISIONS
SEC. 230. DEFINITIONS.
(a) ESEA Terms.--Except as otherwise provided, in this subtitle,
the terms ``local educational agency'', ``Secretary'', and ``State
educational agency'' have the meanings given those terms in section
9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).
(b) Additional Definitions.--The following definitions apply to
this title:
(1) Community college.--The term ``community college''
means--
(A) a junior or community college, as that term is
defined in section 312(f) of the Higher Education Act
of 1965 (20 U.S.C. 1058(f)); or
(B) a four-year public institution of higher
education (as defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001)) that awards a
significant number of degrees and certificates, as
determined by the Secretary, that are not--
(i) bachelor's degrees (or an equivalent);
or
(ii) master's, professional, or other
advanced degrees.
(2) CHPS criteria.--The term ``CHPS Criteria'' means the
green building rating program developed by the Collaborative
for High Performance Schools.
(3) Energy star.--The term ``Energy Star'' means the Energy
Star program of the United States Department of Energy and the
United States Environmental Protection Agency.
(4) Green globes.--The term ``Green Globes'' means the
Green Building Initiative environmental design and rating
system referred to as Green Globes.
(5) LEED green building rating system.--The term ``LEED
Green Building Rating System'' means the United States Green
Building Council Leadership in Energy and Environmental Design
green building rating standard referred to as the LEED Green
Building Rating System.
(6) Modernization, renovation, and repair.--The term
``modernization, renovation and repair'' means--
(A) comprehensive assessments of facilities to
identify--
(i) facility conditions or deficiencies
that could adversely affect student and staff
health, safety, performance, or productivity or
energy, water, or materials efficiency; and
(ii) needed facility improvements;
(B) repairing, replacing, or installing roofs
(which may be extensive, intensive, or semi-intensive
``green'' roofs); electrical wiring; water supply and
plumbing systems, sewage systems, storm water runoff
systems, lighting systems (or components of such
systems); or building envelope, windows, ceilings,
flooring, or doors, including security doors;
(C) repairing, replacing, or installing heating,
ventilation, or air conditioning systems, or components
of those systems (including insulation), including by
conducting indoor air quality assessments;
(D) compliance with fire, health, seismic, and
safety codes, including professional installation of
fire and life safety alarms, and modernizations,
renovations, and repairs that ensure that facilities
are prepared for such emergencies as acts of terrorism,
campus violence, and natural disasters, such as
improving building infrastructure to accommodate
security measures and installing or upgrading
technology to ensure that a school or incident is able
to respond to such emergencies;
(E) making modifications necessary to make
educational facilities accessible in compliance with
the Americans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.) and section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794), except that such
modifications shall not be the primary use of a grant
or subgrant;
(F) abatement, removal, or interim controls of
asbestos, polychlorinated biphenyls, mold, mildew, or
lead-based hazards, including lead-based paint hazards;
(G) retrofitting necessary to increase energy
efficiency;
(H) measures, such as selection and substitution of
products and materials, and implementation of improved
maintenance and operational procedures, such as ``green
cleaning'' programs, to reduce or eliminate potential
student or staff exposure to--
(i) volatile organic compounds;
(ii) particles such as dust and pollens; or
(iii) combustion gases;
(I) modernization, renovation, or repair necessary
to reduce the consumption of coal, electricity, land,
natural gas, oil, or water;
(J) installation or upgrading of educational
technology infrastructure;
(K) installation or upgrading of renewable energy
generation and heating systems, including solar,
photovoltaic, wind, biomass (including wood pellet and
woody biomass), waste-to-energy, solar-thermal, and
geothermal systems, and energy audits;
(L) modernization, renovation, or repair activities
related to energy efficiency and renewable energy, and
improvements to building infrastructures to accommodate
bicycle and pedestrian access;
(M) ground improvements, storm water management,
landscaping and environmental clean-up when necessary;
(N) other modernization, renovation, or repair to--
(i) improve teachers' ability to teach and
students' ability to learn;
(ii) ensure the health and safety of
students and staff; or
(iii) improve classroom, laboratory, and
vocational facilities in order to enhance the
quality of science, technology, engineering,
and mathematics instruction; and
(O) required environmental remediation related to
facilities modernization, renovation, or repair
activities described in subparagraphs (A) through (L).
(7) Outlying area.--The term ``outlying area'' means the
U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of
the Northern Mariana Islands, and the Republic of Palau.
(8) State.--The term ``State'' means each of the 50 States
of the United States, the Commonwealth of Puerto Rico, and the
District of Columbia.
SEC. 231. BUY AMERICAN.
Section 1605 of division A of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5) applies to funds made
available under this title.
Subtitle E--Immediate Transportation Infrastrucure Investments
SEC. 241. IMMEDIATE TRANSPORTATION INFRASTRUCTURE INVESTMENTS.
(a) Grants-In-Aid for Airports.--
(1) In general.--There is made available to the Secretary
of Transportation $2,000,000,000 to carry out airport
improvement under subchapter I of chapter 471 and subchapter I
of chapter 475 of title 49, United States Code.
(2) Federal share; limitation on obligations.--The Federal
share payable of the costs for which a grant is made under this
subsection, shall be 100 percent. The amount made available
under this subsection shall not be subject to any limitation on
obligations for the Grants-In-Aid for Airports program set
forth in any Act or in title 49, United States Code.
(3) Distribution of funds.--Funds provided to the Secretary
under this subsection shall not be subject to apportionment
formulas, special apportionment categories, or minimum
percentages under chapter 471 of such title.
(4) Availability.--The amounts made available under this
subsection shall be available for obligation until the date
that is two years after the date of the enactment of this Act.
The Secretary shall obligate amounts totaling not less than 50
percent of the funds made available within one year of
enactment and obligate remaining amounts not later than two
years after enactment.
(5) Administrative expenses.--Of the funds made available
under this subsection, 0.3 percent shall be available to the
Secretary for administrative expenses, shall remain available
for obligation until September 30, 2015, and may be used in
conjunction with funds otherwise provided for the
administration of the Grants-In-Aid for Airports program.
(b) Next Generation Air Traffic Control Advancements.--
(1) In general.--There is made available to the Secretary
of Transportation $1,000,000,000 for necessary Federal Aviation
Administration capital, research and operating costs to carry
out Next Generation air traffic control system advancements.
(2) Availability.--The amounts made available under this
subsection shall be available for obligation until the date
that is two years after the date of the enactment of this Act.
(c) Highway Infrastructure Investment.--
(1) In general.--There is made available to the Secretary
of Transportation $27,000,000,000 for restoration, repair,
construction and other activities eligible under section 133(b)
of title 23, United States Code, and for passenger and freight
rail transportation and port infrastructure projects eligible
for assistance under section 601(a)(8) of title 23.
(2) Federal share; limitation on obligations.--The Federal
share payable on account of any project or activity carried out
with funds made available under this subsection shall be, at
the option of the recipient, up to 100 percent of the total
cost thereof. The amount made available under this subsection
shall not be subject to any limitation on obligations for
Federal-aid highways and highway safety construction programs
set forth in any Act or in title 23, United States Code.
(3) Availability.--The amounts made available under this
subsection shall be available for obligation until the date
that is two years after the date of the enactment of this Act.
The Secretary shall obligate amounts totaling not less than 50
percent of the funds made available within one year of
enactment and obligate remaining amounts not later than two
years after enactment.
(4) Distribution of funds.--Of the funds provided in this
subsection, after making the set-asides required by paragraphs
(9), (10), (11), (12), and (15), 50 percent of the funds shall
be apportioned to States using the formula set forth in section
104(b)(3) of title 23, United States Code, and the remaining
funds shall be apportioned to States in the same ratio as the
obligation limitation for fiscal year 2010 was distributed
among the States in accordance with the formula specified in
section 120(a)(6) of division A of Public Law 111-117.
(5) Apportionment.--Apportionments under paragraph (4)
shall be made not later than 30 days after the date of the
enactment of this Act.
(6) Redistribution.--
(A) The Secretary shall, 180 days following the
date of apportionment, withdraw from each State an
amount equal to 50 percent of the funds apportioned
under paragraph (4) to that State (excluding funds
suballocated within the State) less the amount of
funding obligated (excluding funds suballocated within
the State), and the Secretary shall redistribute such
amounts to other States that have had no funds
withdrawn under this subparagraph in the manner
described in section 120(c) of division A of Public Law
111-117.
(B) One year following the date of apportionment,
the Secretary shall withdraw from each recipient of
funds apportioned under paragraph (4) any unobligated
funds, and the Secretary shall redistribute such
amounts to States that have had no funds withdrawn
under this paragraph (excluding funds suballocated
within the State) in the manner described in section
120(c) of division A of Public Law 111-117.
(C) At the request of a State, the Secretary may
provide an extension of the one-year period only to the
extent that the Secretary determines that the State has
encountered extreme conditions that create an
unworkable bidding environment or other extenuating
circumstances. Before granting an extension, the
Secretary notify in writing the Committee on
Transportation and Infrastructure and the Committee on
Environment and Public Works, providing a thorough
justification for the extension.
(7) Transportation enhancements.--Three percent of the
funds apportioned to a State under paragraph (4) shall be set
aside for the purposes described in section 133(d)(2) of title
23, United States Code (without regard to the comparison to
fiscal year 2005).
(8) Suballocation.--Thirty percent of the funds apportioned
to a State under this subsection shall be suballocated within
the State in the manner and for the purposes described in the
first sentence of sections 133(d)(3)(A), 133(d)(3)(B), and
133(d)(3)(D) of title 23, United States Code. Such
suballocation shall be conducted in every State. Funds
suballocated within a State to urbanized areas and other areas
shall not be subject to the redistribution of amounts required
180 days following the date of apportionment of funds provided
by paragraph (6)(A).
(9) Puerto rico and territorial highway programs.--Of the
funds provided under this subsection, $105,000,000 shall be set
aside for the Puerto Rico highway program authorized under
section 165 of title 23, United States Code, and $45,000,000
shall be for the territorial highway program authorized under
section 215 of title 23, United States Code.
(10) Federal lands and indian reservations.--Of the funds
provided under this subsection, $550,000,000 shall be set aside
for investments in transportation at Indian reservations and
Federal lands in accordance with the following:
(A) Of the funds set aside by this paragraph,
$310,000,000 shall be for the Indian Reservation Roads
program, $170,000,000 shall be for the Park Roads and
Parkways program, $60,000,000 shall be for the Forest
Highway Program, and $10,000,000 shall be for the
Refuge Roads program.
(B) For investments at Indian reservations and
Federal lands, priority shall be given to capital
investments, and to projects and activities that can be
completed within 2 years of enactment of this Act.
(C) One year following the enactment of this Act,
to ensure the prompt use of the funding provided for
investments at Indian reservations and Federal lands,
the Secretary shall have the authority to redistribute
unobligated funds within the respective program for
which the funds were appropriated.
(D) Up to four percent of the funding provided for
Indian Reservation Roads may be used by the Secretary
of the Interior for program management and oversight
and project-related administrative expenses.
(E) Section 134(f)(3)(C)(ii)(II) of title 23,
United States Code, shall not apply to funds set aside
by this paragraph.
(11) Job training.--Of the funds provided under this
subsection, $50,000,000 shall be set aside for the development
and administration of transportation training programs under
section 140(b) title 23, United States Code.
(A) Funds set aside under this subsection shall be
competitively awarded and used for the purpose of
providing training, apprenticeship (including
Registered Apprenticeship), skill development, and
skill improvement programs, as well as summer
transportation institutes and may be transferred to, or
administered in partnership with, the Secretary of
Labor and shall demonstrate to the Secretary of
Transportation program outcomes, including--
(i) impact on areas with transportation
workforce shortages;
(ii) diversity of training participants;
(iii) number of participants obtaining
certifications or credentials required for
specific types of employment;
(iv) employment outcome metrics, such as
job placement and job retention rates,
established in consultation with the Secretary
of Labor and consistent with metrics used by
programs under the Workforce Investment Act;
(v) to the extent practical, evidence that
the program did not preclude workers that
participate in training or apprenticeship
activities under the program from being
referred to, or hired on, projects funded under
this chapter; and
(vi) identification of areas of
collaboration with the Department of Labor
programs, including co-enrollment.
(B) To be eligible to receive a competitively
awarded grant under this subsection, a State must
certify that at least 0.1 percent of the amounts
apportioned under the Surface Transportation Program
and Bridge Program will be obligated in the first
fiscal year after enactment of this Act for job
training activities consistent with section 140(b) of
title 23, United States Code.
(12) Disadvantaged business enterprises.--Of the funds
provided under this subsection, $10,000,000 shall be set aside
for training programs and assistance programs under section
140(c) of title 23, United States Code. Funds set aside under
this paragraph should be allocated to businesses that have
proven success in adding staff while effectively completing
projects.
(13) State planning and oversight expenses.--Of amounts
apportioned under paragraph (4) of this subsection, a State may
use up to 0.5 percent for activities related to projects funded
under this subsection, including activities eligible under
sections 134 and 135 of title 23, United States Code, State
administration of subgrants, and State oversight of
subrecipients.
(14) Conditions.--
(A) Funds made available under this subsection
shall be administered as if apportioned under chapter 1
of title 23, United States Code, except for funds made
available for investments in transportation at Indian
reservations and Federal lands, and for the territorial
highway program, which shall be administered in
accordance with chapter 2 of title 23, United States
Code, and except for funds made available for
disadvantaged business enterprises bonding assistance,
which shall be administered in accordance with chapter
3 of title 49, United States Code.
(B) Funds made available under this subsection
shall not be obligated for the purposes authorized
under section 115(b) of title 23, United States Code.
(C) Funding provided under this subsection shall be
in addition to any and all funds provided for fiscal
years 2011 and 2012 in any other Act for ``Federal-aid
Highways'' and shall not affect the distribution of
funds provided for ``Federal-aid Highways'' in any
other Act.
(D) Section 1101(b) of Public Law 109-59 shall
apply to funds apportioned under this subsection.
(15) Oversight.--The Administrator of the Federal Highway
Administration may set aside up to 0.15 percent of the funds
provided under this subsection to fund the oversight by the
Administrator of projects and activities carried out with funds
made available to the Federal Highway Administration in this
Act, and such funds shall be available through September 30,
2015.
(d) Capital Assistance for High-Speed Rail Corridors and Intercity
Passenger Rail Service.--
(1) In general.--There is made available to the Secretary
of Transportation $4,000,000,000 for grants for high-speed rail
projects as authorized under sections 26104 and 26106 of title
49, United States Code, capital investment grants to support
intercity passenger rail service as authorized under section
24406 of title 49, United States Code, and congestion grants as
authorized under section 24105 of title 49, United States Code,
and to enter into cooperative agreements for these purposes as
authorized, except that the Administrator of the Federal
Railroad Administration may retain up to one percent of the
funds provided under this heading to fund the award and
oversight by the Administrator of grants made under this
subsection, which retained amount shall remain available for
obligation until September 30, 2015.
(2) Availability.--The amounts made available under this
subsection shall be available for obligation until the date
that is two years after the date of the enactment of this Act.
The Secretary shall obligate amounts totaling not less than 50
percent of the funds made available within one year of
enactment and obligate remaining amounts not later than two
years after enactment.
(3) Federal share.--The Federal share payable of the costs
for which a grant or cooperative agreements is made under this
subsection shall be, at the option of the recipient, up to 100
percent.
(4) Interim guidance.--The Secretary shall issue interim
guidance to applicants covering application procedures and
administer the grants provided under this subsection pursuant
to that guidance until final regulations are issued.
(5) Intercity passenger rail corridors.--Not less than 85
percent of the funds provided under this subsection shall be
for cooperative agreements that lead to the development of
entire segments or phases of intercity or high-speed rail
corridors.
(6) Conditions.--
(A) In addition to the provisions of title 49,
United States Code, that apply to each of the
individual programs funded under this subsection,
subsections 24402(a)(2), 24402(i), and 24403 (a) and
(c) of title 49, United States Code, shall also apply
to the provision of funds provided under this
subsection.
(B) A project need not be in a State rail plan
developed under Chapter 227 of title 49, United States
Code, to be eligible for assistance under this
subsection.
(C) Recipients of grants under this paragraph shall
conduct all procurement transactions using such grant
funds in a manner that provides full and open
competition, as determined by the Secretary, in
compliance with existing labor agreements.
(e) Capital Grants to the National Railroad Passenger
Corporation.--
(1) In general.--There is made available $2,000,000,000 to
enable the Secretary of Transportation to make capital grants
to the National Railroad Passenger Corporation (Amtrak), as
authorized by section 101(c) of the Passenger Rail Investment
and Improvement Act of 2008 (Public Law 110-432).
(2) Availability.--The amounts made available under this
subsection shall be available for obligation until the date
that is two years after the date of the enactment of this Act.
The Secretary shall obligate amounts totaling not less than 50
percent of the funds made available within one year of
enactment and obligate remaining amounts not later than two
years after enactment.
(3) Project priority.--The priority for the use of funds
shall be given to projects for the repair, rehabilitation, or
upgrade of railroad assets or infrastructure, and for capital
projects that expand passenger rail capacity including the
rehabilitation of rolling stock.
(4) Conditions.--
(A) None of the funds under this subsection shall
be used to subsidize the operating losses of Amtrak.
(B) The funds provided under this subsection shall
be awarded not later than 90 days after the date of
enactment of this Act.
(C) The Secretary shall take measures to ensure
that projects funded under this subsection shall be
completed within 2 years of enactment of this Act, and
shall serve to supplement and not supplant planned
expenditures for such activities from other Federal,
State, local and corporate sources. The Secretary shall
certify to the House and Senate Committees on
Appropriations in writing compliance with the preceding
sentence.
(5) Oversight.--The Administrator of the Federal Railroad
Administration may set aside 0.5 percent of the funds provided
under this subsection to fund the oversight by the
Administrator of projects and activities carried out with funds
made available in this subsection, and such funds shall be
available through September 30, 2015.
(f) Transit Capital Assistance.--
(1) In general.--There is made available to the Secretary
of Transportation $3,000,000,000 for grants for transit capital
assistance grants as defined by section 5302(a)(1) of title 49,
United States Code. Notwithstanding any provision of chapter 53
of title 49, however, a recipient of funding under this
subsection may use up to 10 percent of the amount provided for
the operating costs of equipment and facilities for use in
public transportation or for other eligible activities.
(2) Federal share; limtation on obligations.--The
applicable requirements of chapter 53 of title 49, United
States Code, shall apply to funding provided under this
subsection, except that the Federal share of the costs for
which any grant is made under this subsection shall be, at the
option of the recipient, up to 100 percent. The amount made
available under this subsection shall not be subject to any
limitation on obligations for transit programs set forth in any
Act or chapter 53 of title 49.
(3) Availability.--The amounts made available under this
subsection shall be available for obligation until the date
that is two years after the date of the enactment of this Act.
The Secretary shall obligate amounts totaling not less than 50
percent of the funds made available within one year of
enactment and obligate remaining amounts not later than two
years after enactment.
(4) Distribution of funds.--The Secretary of Transportation
shall--
(A) provide 80 percent of the funds appropriated
under this subsection for grants under section 5307 of
title 49, United States Code, and apportion such funds
in accordance with section 5336 of such title;
(B) provide 10 percent of the funds appropriated
under this subsection in accordance with section 5340
of such title; and
(C) provide 10 percent of the funds appropriated
under this subsection for grants under section 5311 of
title 49, United States Code, and apportion such funds
in accordance with such section.
(5) Apportionment.--The funds apportioned under this
subsection shall be apportioned not later than 21 days after
the date of the enactment of this Act.
(6) Redistribution.--
(A) The Secretary shall, 180 days following the
date of apportionment, withdraw from each urbanized
area or State an amount equal to 50 percent of the
funds apportioned to such urbanized areas or States
less the amount of funding obligated, and the Secretary
shall redistribute such amounts to other urbanized
areas or States that have had no funds withdrawn under
this proviso utilizing whatever method he deems
appropriate to ensure that all funds redistributed
under this proviso shall be utilized promptly.
(B) One year following the date of apportionment,
the Secretary shall withdraw from each urbanized area
or State any unobligated funds, and the Secretary shall
redistribute such amounts to other urbanized areas or
States that have had no funds withdrawn under this
proviso utilizing whatever method the Secretary deems
appropriate to ensure that all funds redistributed
under this proviso shall be utilized promptly.
(C) At the request of an urbanized area or State,
the Secretary of Transportation may provide an
extension of such 1-year period if the Secretary
determines that the urbanized area or State has
encountered an unworkable bidding environment or other
extenuating circumstances. Before granting an
extension, the Secretary shall notify in writing the
Committee on Transportation and Infrastructure and the
Committee on Banking, Housing and Urban Affairs,
providing a thorough justification for the extension.
(7) Conditions.--
(A) Of the funds provided for section 5311 of title
49, United States Code, 2.5 percent shall be made
available for section 5311(c)(1).
(B) Section 1101(b) of Public Law 109-59 shall
apply to funds appropriated under this subsection.
(C) The funds appropriated under this subsection
shall not be comingled with any prior year funds.
(8) Oversight.--Notwithstanding any other provision of law,
0.3 percent of the funds provided for grants under section 5307
and section 5340, and 0.3 percent of the funds provided for
grants under section 5311, shall be available for
administrative expenses and program management oversight, and
such funds shall be available through September 30, 2015.
(g) State of Good Repair.--
(1) In general.--There is made available to the Secretary
of Transportation $6,000,000,000 for capital expenditures as
authorized by sections 5309(b) (2) and (3) of title 49, United
States Code.
(2) Federal share.--The applicable requirements of chapter
53 of title 49, United States Code, shall apply, except that
the Federal share of the costs for which a grant is made under
this subsection shall be, at the option of the recipient, up to
100 percent.
(3) Availability.--The amounts made available under this
subsection shall be available for obligation until the date
that is two years after the date of the enactment of this Act.
The Secretary shall obligate amounts totaling not less than 50
percent of the funds made available within one year of
enactment and obligate remaining amounts not later than two
years after enactment.
(4) Distribution of funds.--
(A) The Secretary of Transportation shall apportion
not less than 75 percent of the funds under this
subsection for the modernization of fixed guideway
systems, pursuant to the formula set forth in section
5336(b) title 49, United States Code, other than
subsection (b)(2)(A)(ii).
(B) Of the funds appropriated under this
subsection, not less than 25 percent shall be available
for the restoration or replacement of existing public
transportation assets related to bus systems, pursuant
to the formula set forth in section 5336 other than
subsection (b).
(5) Apportionment.--The funds made available under this
subsection shall be apportioned not later than 30 days after
the date of the enactment of this Act.
(6) Redistribution.--
(A) The Secretary shall, 180 days following the
date of apportionment, withdraw from each urbanized
area an amount equal to 50 percent of the funds
apportioned to such urbanized area less the amount of
funding obligated, and the Secretary shall redistribute
such amounts to other urbanized areas that have had no
funds withdrawn under this paragraph utilizing whatever
method the Secretary deems appropriate to ensure that
all funds redistributed under this paragraph shall be
utilized promptly.
(B) One year following the date of apportionment,
the Secretary shall withdraw from each urbanized area
any unobligated funds, and the Secretary shall
redistribute such amounts to other urbanized areas that
have had no funds withdrawn under this paragraph,
utilizing whatever method the Secretary deems
appropriate to ensure that all funds redistributed
under this paragraph shall be utilized promptly.
(C) At the request of an urbanized area, the
Secretary may provide an extension of the 1-year period
if the Secretary finds that the urbanized area has
encountered an unworkable bidding environment or other
extenuating circumstances. Before granting an
extension, the Secretary shall notify the Committee on
Transportation and Infrastructure and the Committee on
Banking, Housing, and Urban Affairs, providing a
thorough justification for the extension.
(7) Conditions.--
(A) The provisions of section 1101(b) of Public Law
109-59 shall apply to funds made available under this
subsection.
(B) The funds appropriated under this subsection
shall not be commingled with any prior year funds.
(8) Oversight.--Notwithstanding any other provision of law,
0.3 percent of the funds under this subsection shall be
available for administrative expenses and program management
oversight and shall remain available for obligation until
September 30, 2015.
(h) Transportation Infrastructure Grants and Financing.--
(1) In general.--There is made available to the Secretary
of Transportation $5,000,000,000 for capital investments in
surface transportation infrastructure. The Secretary shall
distribute funds provided under this subsection as
discretionary grants to be awarded to State and local
governments or transit agencies on a competitive basis for
projects that will have a significant impact on the Nation, a
metropolitan area, or a region.
(2) Federal share; limitation on obligations.--The Federal
share payable of the costs for which a grant is made under this
subsection, shall be 100 percent.
(3) Availability.--The amounts made available under this
subsection shall be available for obligation until the date
that is two years after the date of the enactment of this Act.
The Secretary shall obligate amounts totaling not less than 50
percent of the funds made available within one year of
enactment and obligate remaining amounts not later than two
years after enactment.
(4) Project eligibility.--Projects eligible for funding
provided under this subsection include--
(A) highway or bridge projects eligible under title
23, United States Code, including interstate
rehabilitation, improvements to the rural collector
road system, the reconstruction of overpasses and
interchanges, bridge replacements, seismic retrofit
projects for bridges, and road realignments;
(B) public transportation projects eligible under
chapter 53 of title 49, United States Code, including
investments in projects participating in the New Starts
or Small Starts programs that will expedite the
completion of those projects and their entry into
revenue service;
(C) passenger and freight rail transportation
projects; and
(D) port infrastructure investments, including
projects that connect ports to other modes of
transportation and improve the efficiency of freight
movement.
(5) TIFIA program.--The Secretary may transfer to the
Federal Highway Administration funds made available under this
subsection for the purpose of paying the subsidy and
administrative costs of projects eligible for federal credit
assistance under chapter 6 of title 23, United States Code, if
the Secretary finds that such use of the funds would advance
the purposes of this subsection.
(6) Project priority.--The Secretary shall give priority to
projects that are expected to be completed within 3 years of
the date of the enactment of this Act.
(7) Deadline for issuance of competition criteria.--The
Secretary shall publish criteria on which to base the
competition for any grants awarded under this subsection not
later than 90 days after enactment of this Act. The Secretary
shall require applications for funding provided under this
subsection to be submitted not later than 180 days after the
publication of the criteria, and announce all projects selected
to be funded from such funds not later than 1 year after the
date of the enactment of the Act.
(8) Applicability of title 40.--Each project conducted
using funds provided under this subsection shall comply with
the requirements of subchapter IV of chapter 31 of title 40,
United States Code.
(9) Administrative expenses.--The Secretary may retain up
to one-half of one percent of the funds provided under this
subsection, and may transfer portions of those funds to the
Administrators of the Federal Highway Administration, the
Federal Transit Administration, the Federal Railroad
Administration and the Maritime Administration, to fund the
award and oversight of grants made under this subsection. Funds
retained shall remain available for obligation until September
30, 2015.
(i) Local Hiring.--
(1) In general.--In the case of the funding made available
under subsections (a) through (h) of this section, the
Secretary of Transportation may establish standards under which
a contract for construction may be advertised that contains
requirements for the employment of individuals residing in or
adjacent to any of the areas in which the work is to be
performed to perform construction work required under the
contract, provided that--
(A) all or part of the construction work performed
under the contract occurs in an area designated by the
Secretary as an area of high unemployment, using data
reported by the United States Department of Labor,
Bureau of Labor Statistics;
(B) the estimated cost of the project of which the
contract is a part is greater than $10 million, except
that the estimated cost of the project in the case of
construction funded under subsection (c) shall be
greater than $50 million; and
(C) the recipient may not require the hiring of
individuals who do not have the necessary skills to
perform work in any craft or trade; provided that the
recipient may require the hiring of such individuals if
the recipient establishes reasonable provisions to
train such individuals to perform any such work under
the contract effectively.
(2) Project standards.--
(A) In general.--Any standards established by the
Secretary under this section shall ensure that any
requirements specified under subsection (c)(1)--
(i) do not compromise the quality of the
project;
(ii) are reasonable in scope and
application;
(iii) do not unreasonably delay the
completion of the project; and
(iv) do not unreasonably increase the cost
of the project.
(B) Available programs.--The Secretary shall make
available to recipients the workforce development and
training programs set forth in section 24604(e)(1)(D)
of this title to assist recipients who wish to
establish training programs that satisfy the provisions
of subsection (c)(1)(C). The Secretary of Labor shall
make available its qualifying workforce and training
development programs to recipients who wish to
establish training programs that satisfy the provisions
of subsection (c)(1)(C).
(3) Implementing regulations.--The Secretary shall
promulgate final regulations to implement the authority of this
subsection.
(j) Administrative Provisions.--
(1) Applicability of title 40.--Each project conducted
using funds provided under this subtitle shall comply with the
requirements of subchapter IV of chapter 31 of title 40, United
States Code.
(2) Buy american.--Section 1605 of division A of the
American Recovery and Reinvestment Act of 2009 (Public Law 111-
5) applies to each project conducted using funds provided under
this subtitle.
Subtitle F--Building and Upgrading Infrastructure for Long-Term
Development
SEC. 242. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This subtitle may be cited as the ``Building and
Upgrading Infrastructure for Long-Term Development Act''.
SEC. 243. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds that--
(1) infrastructure has always been a vital element of the
economic strength of the United States and a key indicator of
the international leadership of the United States;
(2) the Erie Canal, the Hoover Dam, the railroads, and the
interstate highway system are all testaments to American
ingenuity and have helped propel and maintain the United States
as the world's largest economy;
(3) according to the World Economic Forum's Global
Competitiveness Report, the United States fell to second place
in 2009, and dropped to fourth place overall in 2010, however,
in the ``Quality of overall infrastructure'' category of the
same report, the United States ranked twenty-third in the
world;
(4) according to the World Bank's 2010 Logistic Performance
Index, the capacity of countries to efficiently move goods and
connect manufacturers and consumers with international markets
is improving around the world, and the United States now ranks
seventh in the world in logistics-related infrastructure behind
countries from both Europe and Asia;
(5) according to a January 2009 report from the University
of Massachusetts/Alliance for American Manufacturing entitled
``Employment, Productivity and Growth,'' infrastructure
investment is a ``highly effective engine of job creation'';
(6) according to the American Society of Civil Engineers,
the current condition of the infrastructure in the United
States earns a grade point average of D, and an estimated
$2,200,000,000,000 investment is needed over the next 5 years
to bring American infrastructure up to adequate condition;
(7) according to the National Surface Transportation Policy
and Revenue Study Commission, $225,000,000,000 is needed
annually from all sources for the next 50 years to upgrade the
United States surface transportation system to a state of good
repair and create a more advanced system;
(8) the current infrastructure financing mechanisms of the
United States, both on the Federal and State level, will fail
to meet current and foreseeable demands and will create large
funding gaps;
(9) published reports state that there may not be enough
demand for municipal bonds to maintain the same level of
borrowing at the same rates, resulting in significantly
decreased infrastructure investment at the State and local
level;
(10) current funding mechanisms are not readily scalable
and do not--
(A) serve large in-State or cross jurisdiction
infrastructure projects, projects of regional or
national significance, or projects that cross sector
silos;
(B) sufficiently catalyze private sector
investment; or
(C) ensure the optimal return on public resources;
(11) although grant programs of the United States
Government must continue to play a central role in financing
the transportation, environment, and energy infrastructure
needs of the United States, current and foreseeable demands on
existing Federal, State, and local funding for infrastructure
expansion clearly exceed the resources to support these
programs by margins wide enough to prompt serious concerns
about the United States ability to sustain long-term economic
development, productivity, and international competitiveness;
(12) the capital markets, including pension funds, private
equity funds, mutual funds, sovereign wealth funds, and other
investors, have a growing interest in infrastructure investment
and represent hundreds of billions of dollars of potential
investment; and
(13) the establishment of a United States Government-owned,
independent, professionally managed institution that could
provide credit support to qualified infrastructure projects of
regional and national significance, making transparent merit-
based investment decisions based on the commercial viability of
infrastructure projects, would catalyze the participation of
significant private investment capital.
(b) Purpose.--The purpose of this Act is to facilitate investment
in, and long-term financing of, economically viable infrastructure
projects of regional or national significance in a manner that both
complements existing Federal, State, local, and private funding sources
for these projects and introduces a merit-based system for financing
such projects, in order to mobilize significant private sector
investment, create jobs, and ensure United States competitiveness
through an institution that limits the need for ongoing Federal
funding.
SEC. 244. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) AIFA.--The term ``AIFA'' means the American
Infrastructure Financing Authority established under this Act.
(2) Blind trust.--The term ``blind trust'' means a trust in
which the beneficiary has no knowledge of the specific holdings
and no rights over how those holdings are managed by the
fiduciary of the trust prior to the dissolution of the trust.
(3) Board of directors.--The term ``Board of Directors''
means Board of Directors of AIFA.
(4) Chairperson.--The term ``Chairperson'' means the
Chairperson of the Board of Directors of AIFA.
(5) Chief executive officer.--The term ``chief executive
officer'' means the chief executive officer of AIFA, appointed
under section 247.
(6) Cost.--The term ``cost'' has the same meaning as in
section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a).
(7) Direct loan.--The term ``direct loan'' has the same
meaning as in section 502 of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a).
(8) Eligible entity.--The term ``eligible entity'' means an
individual, corporation, partnership (including a public-
private partnership), joint venture, trust, State, or other
non-Federal governmental entity, including a political
subdivision or any other instrumentality of a State, or a
revolving fund.
(9) Infrastructure project.--
(A) In general.--The term ``eligible infrastructure
project'' means any non-Federal transportation, water,
or energy infrastructure project, or an aggregation of
such infrastructure projects, as provided in this Act.
(B) Transportation infrastructure project.--The
term ``transportation infrastructure project'' means
the construction, alteration, or repair, including the
facilitation of intermodal transit, of the following
subsectors:
(i) Highway or road.
(ii) Bridge.
(iii) Mass transit.
(iv) Inland waterways.
(v) Commercial ports.
(vi) Airports.
(vii) Air traffic control systems.
(viii) Passenger rail, including high-speed
rail.
(ix) Freight rail systems.
(C) Water infrastructure project.--The term ``water
infrastructure project'' means the construction,
consolidation, alteration, or repair of the following
subsectors:
(i) Waterwaste treatment facility.
(ii) Storm water management system.
(iii) Dam.
(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 generation.
(ii) Transmission and distribution.
(iii) Storage.
(iv) Energy efficiency enhancements for
buildings, including public and commercial
buildings.
(E) Board authority to modify subsectors.--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 focus for the Bank's
investments. The investment prospectus shall follow
rulemaking procedures under section 553 of title 5,
United States Code.
(B) The Bank shall publish a detailed description
of its strategy in an Investment Prospectus within one
year of the enactment of this subchapter. The
Investment Prospectus shall--
(i) specify what the Bank shall consider
significant to the economic competitiveness of
the United States or a region thereof in a
manner consistent with the primary objective;
(ii) specify the priorities and strategic
focus of the Bank in forwarding its strategic
objectives and carrying out the Bank strategy;
(iii) specify the priorities and strategic
focus of the Bank in promoting greater
efficiency in the movement of freight;
(iv) specify the priorities and strategic
focus of the Bank in promoting the use of
innovation and best practices in the planning,
design, development and delivery of projects;
(v) describe in detail the framework and
methodology for calculating application
qualification scores and associated ranges as
specified in this subchapter, along with the
data to be requested from applicants and the
mechanics of calculations to be applied to that
data to determine 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 the
Bank 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.
(D) The Bank shall update the Investment Prospectus
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 guarantee'' 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 development of all
or part of an infrastructure project that will have a
public benefit, pursuant to requirements established in
one or more contracts between the entity and a State or
an instrumentality 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;
(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 significant
investment and some control over the project or project
vehicle.
(14) Rural infrastructure project.--The term ``rural
infrastructure project'' means an infrastructure project in a
rural area, as that term is defined 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 otherwise requires, the
term ``Secretary'' means the Secretary 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 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 Infrastructure Financing
Authority is established as a wholly owned Government corporation.
(b) General Authority of AIFA.--AIFA shall provide direct loans and
loan guarantees to facilitate infrastructure 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 effected 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
(B) for purposes of venue in civil actions, be
considered to be a resident of Washington, DC.
(d) Responsibility of the Secretary.--The Secretary 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 DIRECTORS.
(a) Voting Membership of the Board of Directors.--
(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 minority 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 consultation 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 authority; or
(B) the financing, development, or operation of
infrastructure projects; or
(C) analyzing the economic benefits of
infrastructure investment.
(d) Terms.--
(1) In general.--Except as otherwise provided in this Act,
each voting member of the Board of Directors shall be appointed
for a term of 4 years.
(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 initial 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 section shall commence
immediately upon the date of appointment, except that, for
purposes of calculating the term limits specified in this
subsection, the initial terms shall each be construed as
beginning on January 22 of the year following the date of the
initial 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 predecessor 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 appointed, 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, during the meeting to be closed, there is
likely to be disclosed proprietary or sensitive information
regarding an infrastructure project under consideration for
assistance 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 redactions to protect any proprietary or sensitive
information.
(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 consideration 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 Directors, who shall be responsible
for all activities of AIFA, and shall support the Board of Directors as
set forth in this Act and as the Board of Directors deems necessary or
appropriate.
(b) Appointment and Tenure of the Chief Executive 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 President, 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 management and
administration of a financial institution, or significant
expertise in the financing and development of infrastructure
projects, or significant expertise in analyzing the economic
benefits of infrastructure investment; and
(2) may not--
(A) hold any other public office;
(B) have any financial interest in an
infrastructure 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 investment
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 implementation
of the strategy of AIFA, including--
(A) the development and submission to the Board of
Directors of the investment prospectus, the annual
business plans and budget;
(B) the development and submission to the Board of
Directors of a long-term strategic plan; and
(C) the development, revision, and submission to
the Board of Directors of internal policies; and
(2) responsibility for the management and oversight of the
daily activities, decisions, operations, and personnel of AIFA,
including--
(A) the appointment of senior management, subject
to approval by the voting members of the Board of
Directors, and the hiring and termination of all other
AIFA personnel;
(B) requesting the detail, on a reimbursable basis,
of personnel from any Federal agency having specific
expertise not available from within AIFA, following
which request the head of the Federal agency may
detail, on a reimbursable basis, any personnel of such
agency reasonably requested by the chief executive
officer;
(C) assessing and recommending in the first
instance, for ultimate approval or disapproval by the
Board of Directors, compensation and adjustments to
compensation of senior management and other personnel
of AIFA as may be necessary for carrying out the
functions of AIFA;
(D) ensuring, in conjunction with the general
counsel of AIFA, that all activities of AIFA are
carried out in compliance with applicable law;
(E) overseeing the involvement of AIFA in all
projects, including--
(i) developing eligible projects for AIFA
financial assistance;
(ii) determining the terms and conditions
of all financial assistance packages;
(iii) monitoring all infrastructure
projects assisted by AIFA, including
responsibility for ensuring that the proceeds
of any loan made, guaranteed, or participated
in are used only for the purposes for which the
loan or guarantee was made;
(iv) preparing and submitting for approval
by the Board of Directors the documents
required under paragraph (1); and
(v) ensuring the implementation of
decisions of the Board of Directors; and
(F) such other activities as may be necessary or
appropriate in carrying out this Act.
(e) Compensation.--
(1) In general.--Any compensation assessment or
recommendation by the chief executive officer 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 assessment or
recommendation required under this subsection shall take into
account merit principles, where applicable, as well as the
education, experience, level of responsibility, geographic
differences, and retention and recruitment needs in determining
compensation of personnel.
SEC. 248. POWERS AND DUTIES OF THE BOARD OF DIRECTORS.
The Board of Directors shall--
(1) as soon as is practicable after the date on which all
members are appointed, approve or disapprove 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 AIFA, consistent with the
purpose, goals, objectives, 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 application
and approval process, including--
(I) disclosure and application
procedures to be followed by entities
in the course of nominating
infrastructure projects for assistance
under this Act;
(II) guidelines for the selection
and approval of projects;
(III) specific criteria for
determining eligibility for project
selection, consistent with title II;
and
(IV) standardized terms and
conditions, fee schedules, or legal
requirements 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 effectiveness of
AIFA in achieving its strategic goals;
(B) periodically reviewing internal policies;
(C) reviewing and approving annual business plans,
annual budgets, and long-term strategies submitted by
the chief executive officer;
(D) reviewing and approving annual reports
submitted by the chief executive officer;
(E) engaging one or more external auditors, as set
forth in this Act; and
(F) reviewing and approving all changes to the
organization of senior management;
(4) appoint and fix, by a vote of 5 of the 7 voting 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, provided that in appointing
and fixing any compensation or adjustments to compensation
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, geographic
differences, and retention and recruitment needs in
determining compensation of personnel;
(5) establish such other criteria, requirements, or
procedures as the Board of Directors may consider 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 the interests of AIFA in such
interactions and others;
(7) approve by a vote of 5 of the 7 voting members 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,
including State infrastructure banks) of the
United States; and
(iii) any individual, public-private
partnership, firm, association, or corporation;
(B) to approve of the acquisition, lease, pledge,
exchange, and disposal of real and personal property by
AIFA and otherwise approve the exercise by AIFA of all
of the usual incidents of ownership of property, to the
extent that the exercise of such powers is appropriate
to and consistent with the purposes of AIFA;
(C) to determine the character of, and the
necessity for, the obligations and expenditures of
AIFA, and the manner in which the obligations and
expenditures will be incurred, allowed, and paid,
subject to this Act and other Federal law specifically
applicable to wholly owned Federal corporations;
(D) to execute, in accordance with applicable
bylaws and regulations, appropriate instruments;
(E) to approve other forms of credit enhancement
that AIFA may provide to eligible projects, as long as
the forms of credit enhancements 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 capacity of
AIFA in any court of competent jurisdiction;
(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 accordance with, and subject to
the limitations contained in this Act;
(I) to review all financial assistance packages to
all eligible infrastructure projects, as submitted by
the chief executive officer and to approve, postpone,
or deny the same by majority vote;
(J) to review all restructuring proposals submitted
by the chief executive officer, including assignation,
pledging, or disposal of the interest 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 packages;
(9) delegate to the chief executive officer those duties
that the Board of Directors deems appropriate, 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 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 responsibilities 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 member 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 executive officer, other than the
Chief Risk Officer, who shall report directly to the Board of
Directors.
(2) Duties and responsibilities.--
(A) Chief financial officer.--The Chief Financial
Officer shall be responsible for all financial
functions of AIFA, provided that, at the discretion of
the Board of Directors, specific functions of the Chief
Financial Officer may be delegated externally.
(B) Chief risk officer.--The Chief Risk Officer
shall be responsible for all functions of AIFA relating
to--
(i) the creation of financial, credit, and
operational risk management guidelines and
policies;
(ii) credit analysis for infrastructure
projects;
(iii) the creation of conforming standards
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 actions, or
recommendations of such actions to be taken,
directly to the Board of Directors.
(C) Chief compliance officer.--The Chief Compliance
Officer shall be responsible for all functions of AIFA
relating to internal audits, accounting safeguards, and
the enforcement of such safeguards and other applicable
requirements.
(D) General counsel.--The General Counsel shall be
responsible for all functions of AIFA relating to legal
matters and, in consultation with the chief executive
officer, shall be responsible for ensuring that AIFA
complies with all applicable law.
(E) Chief operations officer.--The Chief Operations
Officer shall be responsible for all operational
functions of AIFA, including those relating to the
continuing operations and performance of all
infrastructure projects in which AIFA retains an
interest and for all AIFA functions related to human
resources.
(F) Chief lending officer.--The Chief Lending
Officer shall be responsible for--
(i) all functions of AIFA relating to the
development of project pipeline, financial
structuring of projects, selection of
infrastructure projects to be reviewed by the
Board of Directors, preparation of
infrastructure 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
infrastructure 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 officer, may alter the structure
of the senior management of AIFA at any time to better accomplish the
goals, objectives, and purposes of AIFA, provided that the functions of
the Chief Financial Officer set forth in subsection (e) remain separate
from the functions of the Chief Risk Officer set forth in subsection
(e).
(g) Conflicts of Interest.--No individual appointed to senior
management may--
(1) hold any other public office;
(2) have any financial interest in an infrastructure
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 Department of the Treasury shall
have responsibility for AIFA.
(b) Office of the Special Inspector General.--Effective 5 years
after the date of enactment of the commencement of the operations of
AIFA, there is established the Office of the Special Inspector General
for AIFA.
(c) Appointment of Inspector General; Removal.--
(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 appointment of the Special
Inspector General shall be made on the basis of integrity and
demonstrated ability in accounting, auditing, financial
analysis, law, management analysis, public administration, or
investigations.
(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 General Act of 1978 (5 U.S.C.
App.).
(5) Rule of construction.--For purposes of section 7324 of
title 5, United States Code, the Special Inspector General
shall not be considered an employee 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 annual 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 controls.--The Special
Inspector General shall establish, maintain, and oversee such
systems, procedures, and controls as the Special Inspector
General considers appropriate to discharge the duty under
paragraph (1).
(3) Additional duties.--In addition to the duties specified
in paragraphs (1) and (2), the Inspector General shall also
have the duties and responsibilities of inspectors general
under the Inspector 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 Inspector 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 Resources.--
(1) Additional officers.--
(A) The Special Inspector General may select,
appoint, and employ such officers and employees 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 chapter 51
and subchapter III of chapter 53 of such title,
relating to classification and General Schedule pay
rates.
(B) The Special Inspector General may exercise 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 Inspector 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, studies, and other
services.--The Special Inspector General may enter into
contracts and other arrangements for audits, studies, analyses,
and other services with public agencies and with private
persons, and make such payments as may be necessary to carry
out the duties of the Special Inspector General.
(4) Request for information.--
(A) In general.--Upon request of the Special
Inspector General for information or assistance from
any department, agency, or other entity of the Federal
Government, the head of such entity shall, insofar as
is practicable and 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 information or
assistance requested by the Special 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 General, and every
calendar year thereafter, the Special Inspector General shall
submit to the President a report summarizing the activities of
the Special Inspector 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 of national
defense or national security or in the conduct of
foreign affairs; or
(C) a part of an ongoing criminal investigation.
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 senior 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 applicable 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 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
infrastructure 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 accordance with
this Act; and
(C) the definition of a transportation
infrastructure 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, environmental, and
public benefits and costs of each infrastructure project under
consideration for financial assistance under this Act,
prioritizing infrastructure projects that--
(A) contribute to regional or national economic
growth;
(B) offer value for money to taxpayers;
(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 infrastructure
project under consideration is being financed, 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 projections 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 assistance by AIFA
will cause such development to proceed more promptly and with
lower costs than would be the case without such assistance;
(4) the extent to which the provision of assistance by AIFA
maximizes the level of private investment in the infrastructure
project or supports a public-private partnership, while
providing a significant public benefit;
(5) the extent to which the provision of assistance 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-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 review 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 Federal credit
instrument shall be repayable, in whole or in part, from tolls,
user fees, or other dedicated revenue sources that also secure
the infrastructure project obligations.
(d) Eligible Infrastructure Project Costs.--
(1) In general.--Except as provided in paragraph (2), to be
eligible for assistance under this Act, an infrastructure
project shall have project costs that are reasonably
anticipated to equal or exceed $100,000,000.
(2) Rural infrastructure projects.--To be eligible for
assistance under this Act a rural infrastructure 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 investment grade rating, the amount of the senior
project obligations.
(2) Maximum annual loan and loan guarantee 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.
(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 permits
and approvals.
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 sources that also
secure the senior project obligations (such as
availability payments and dedicated State or local
revenues); and
(B) include a rate covenant, coverage requirement,
or similar security feature supporting 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 executive 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 guarantee,
taking into account such letter, as well as any comparable 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 consistent with the Federal Credit Reform Act, 2 U.S.C. 661a
et seq.
(e) Credit Fee.--With respect to each agreement for assistance
under this Act, the chief executive officer may charge a credit fee to
the recipient of such assistance to pay for, over time, all or a
portion of the Federal credit subsidy determined under subsection (d),
with the remainder paid by the account established for AIFA; provided,
that the source of fees paid under this section shall not be a loan or
debt obligation guaranteed by the Federal Government. In the case of a
direct loan, such credit fee shall be in addition to the base interest
rate established under subsection (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 substantial completion of the infrastructure project,
as determined by the chief executive officer.
(g) Rating Opinion Letter.--
(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 obligations 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 generated
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 execution 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 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 repayments 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 infrastructure project, as determined by the chief
executive officer 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 repayments 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 direct
loan, if the result would benefit the taxpayer.
(B) Interest.--Any payment deferred under
subparagraph (A) shall--
(i) continue to accrue interest, in
accordance 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 deferral under
subparagraph (A) shall be contingent on the
infrastructure project meeting criteria
established by the Board of Directors.
(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 excess revenues
that remain after satisfying scheduled debt service
requirements on the infrastructure project obligations
and direct loan and all deposit requirements under the
terms of 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 refinancing.--A direct loan
under this Act may be prepaid at any time, without
penalty, from the proceeds of refinancing from non-
Federal funding sources.
(5) Sale of direct loans.--
(A) In general.--As soon as is practicable after
substantial completion of an infrastructure 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 infrastructure project, if the
chief executive officer determines that the sale or
reoffering can be made on favorable terms for the
taxpayer.
(B) Consent of obligor.--In making a sale or
reoffering under subparagraph (A), the chief executive
officer may not change the original terms and
conditions of the direct loan, without the written
consent of the obligor.
(j) Loan Guarantees.--
(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, except 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.--Direct 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.), as
amended.
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 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 outstanding
obligation.
(c) Nothing in this Act is intended to affect existing provisions
of law applicable to the planning, development, construction, or
operation of projects funded under the Act.
SEC. 256. AUDITS; REPORTS TO THE PRESIDENT AND CONGRESS.
(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 recognized 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 Congress 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 such
fiscal year, with a statement of the amounts issued and
redeemed or paid during such fiscal year;
(C) the status of infrastructure projects receiving
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 communities, 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 portfolio of
AIFA, prepared by an independent source.
(2) GAO.--Not later than 5 years after the date of
enactment of this Act, the Comptroller General of the United
States shall conduct an evaluation of, and shall submit to
Congress a report on, activities of AIFA for the fiscal years
covered by the report that includes an assessment of the impact
and benefits of each funded infrastructure project, including a
review of how effectively each such infrastructure project
accomplished the goals prioritized by the infrastructure
project criteria of AIFA.
(c) Books and Records.--
(1) In general.--AIFA shall maintain adequate 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 database.
(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 recipients 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 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 CEO; and
(3) may be based on the risk premium associated 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), and (a)(3) shall be available without further action;
provided further, that the source of fees paid under this section shall
not be a loan or debt obligation guaranteed by the Federal Government.
SEC. 258. EFFICIENCY OF AIFA.
The chief executive officer shall, to the extent possible, take
actions consistent with this Act to minimize the risk and cost to the
taxpayer of AIFA activities. Fees and premiums for loan guarantee or
insurance coverage will be set at levels that minimize administrative
and Federal credit subsidy costs to the Government, as defined in
Section 502 of the Federal Credit Reform Act of 1990, as amended, of
such coverage, while supporting achievement of the program's
objectives, consistent with policies as set forth in the Business Plan.
SEC. 259. FUNDING.
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 Section 253, and for administrative costs, $10,000,000,000, to
remain available until expended; Provided, That such costs, including
the costs of modifying such loans, shall be as defined in section 502
of the Federal Credit Reform Act of 1990, as amended; Provided further,
that of this amount, 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; provided further, that
not more than 5 percent of such amount shall be used to offset subsidy
costs associated with rural projects. Amounts authorized shall be
available without further action.
PART IV--EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX TREATMENT
FOR CERTAIN TAX-EXEMPT BONDS
SEC. 260. EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX TREATMENT
FOR CERTAIN TAX-EXEMPT BONDS.
(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, 2013''; and
(2) by striking ``and 2010'' in the heading and inserting
``, 2010, 2011, and 2012''.
(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, 2013''; and
(2) by striking ``and 2010'' in the heading and inserting
``, 2010, 2011, and 2012''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued after December 31, 2010.
Subtitle G--Project Rebuild
SEC. 261. PROJECT REBUILD.
(a) Direct Appropriations.--There is appropriated, out of any money
in the Treasury not otherwise appropriated, $15,000,000,000, to remain
available until September 30, 2014, for assistance to eligible entities
including 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 consortia of eligible entities for the redevelopment of
abandoned and foreclosed-upon properties and for the stabilization of
affected neighborhoods.
(b) Allocation of Appropriated Amounts.--
(1) In general.--Of the amounts appropriated, 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
entities.
(2) Formula to be devised swiftly.--The funding formula
required under paragraph (1) shall be established and the
Secretary shall announce formula 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 formula required under
paragraph (1) shall ensure that any amounts appropriated or
otherwise made available 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 program
designs, grantee capacity and performance, number and
percentage of commercial foreclosures, overall economic
conditions, and other market needs data, as determined
by the Secretary.
(4) Competition criteria.--
(A) For the funds distributed competitively,
eligible entities shall be States, units of general
local government, nonprofit entities, for-profit
entities, and consortia of eligible entities 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. Additional award criteria shall
include demonstrated grantee capacity to execute
projects involving acquisition and rehabilitation or
redevelopment of foreclosed residential and commercial
property and neighborhood stabilization, leverage,
knowledge of market conditions and of effective
stabilization activities to address identified
conditions, and any additional factors determined by
the Secretary.
(C) The Secretary may establish a minimum grant
size; and
(D) The Secretary shall publish competition
criteria for any grants awarded under this heading not
later than 60 days after appropriation of funds, and
applications shall be due to the Secretary within 120
days.
(c) Use of Funds.--
(1) Obligation and expenditure.--The Secretary shall
obligate all funding within 150 days of enactment of this Act.
Any eligible entity that receives 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 Notice
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 eligible entity
shall describe how its proposed use of funds will
prioritize job creation, and secondly, will address
goals to stabilize neighborhoods, 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 distributing and targeting such
amounts give priority emphasis and consideration to
those metropolitan 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
significant 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, in order to sell,
rent, or redevelop such properties;
(C) establish and operate land banks for properties
that have been abandoned or foreclosed upon;
(D) demolish blighted structures;
(E) redevelop abandoned, foreclosed, demolished, or
vacant properties; and
(F) engage in other activities, as determined by
the Secretary through notice, that are consistent with
the goals of creating jobs, stabilizing neighborhoods,
reversing vacancy reduction, and increasing or
stabilizing residential and commercial property values.
(d) Limitations.--
(1) On purchases.--Any purchase of a property under this
section shall be at a price not to exceed 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, marketability, and habitability, in order to
sell, rent, or redevelop such properties or provide a renewable
energy source or sources for such properties.
(3) Sale of homes.--If an abandoned or foreclosed-upon home
is purchased, redeveloped, or otherwise 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,
marketable, 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 demolished with funds under this section.
(5) On demolition activities.--No more than 10 percent of
any grant made under this section 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 activities under subparagraphs (A), (B), and
(E) of subsection (c)(3) that will not result in residential
use of the property involved unless the Secretary determines
that such use represents an appropriate response to local
market conditions.
(e) Rules of Construction.--
(1) In general.--Except as otherwise provided by this
section, amounts appropriated, revenues generated, or amounts
otherwise made available to eligible entities under this
section shall be treated as though such funds were community
development block grant funds under title I of the Housing 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 of the American
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 Wall Street Reform and Consumer Protection Act (Public
Law 111-203, 124 Stat. 2211).
(4) Vicinity hiring.--An eligible entity receiving a grant
under this section shall comply with section 1497(a)(8) of the
Dodd-Frank Wall Street Reform and Consumer Protection Act
(Public Law 111-203, 129 Stat. 2210).
(5) Buy american.--Section 1605 of Title XVI--General
Provisions of the American Recovery and Reinvestment Act of
2009--shall apply to amounts appropriated, revenues generated,
and amounts otherwise made available to eligible entities under
this section.
(f) Authority To Specify Alternative Requirements.--
(1) In general.--In administering the program 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 housing,
nondiscrimination, labor standards, and the environment) for
the purpose of expediting and facilitating the use of funds
under this section.
(2) Notice.--The Secretary shall provide written notice of
intent to the public via internet to exercise the authority to
specify alternative requirements under paragraph.
(3) Low and moderate income requirement.--
(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 families whose
income does not exceed 120 percent of area
median income; and
(ii) not less than 25 percent of the
formula and competitive grantee funds
appropriated or otherwise made available under
this section shall be used for the purchase and
redevelopment of eligible properties that will
be used to house individuals 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 redevelopment of abandoned and
foreclosed-upon homes and residential properties under
this section remain affordable to individuals or
families described in subparagraph (A).
(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 include economic
development that primarily benefits private entities.
(i) Limitation on Distribution of Funds.--
(1) In general.--None of the funds made available under
this title or title IV shall be distributed to--
(A) an organization which has been indicted for a
violation under Federal law relating to an election for
Federal office; or
(B) an organization which employs applicable
individuals.
(2) Applicable individuals defined.--In this section, the
term ``applicable individual'' means an individual who--
(A) is--
(i) employed by the organization in a
permanent or temporary capacity;
(ii) contracted or retained by the
organization; or
(iii) acting on behalf of, or with the
express or apparent authority of, the
organization; 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 establish procedures to create
preferences for the development of affordable rental housing.
(k) Job Creation.--If a grantee chooses to use funds to create jobs
by establishing and operating a program 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 eligible entities and grantees undertaking neighborhood
stabilization programs, staffing, training, technical assistance,
technology, monitoring, travel, enforcement, research and evaluation
activities.
(1) Funds set aside for the purposes of this subparagraph
shall remain available until September 30, 2016;
(2) Any funds made available under this subparagraph 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 subparagraph 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; and
(4) Any funds made available under this subparagraph 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 implement 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 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 underperforming 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) The Secretary of Housing and Urban Development shall to the
extent feasible conform policies and procedures 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; Division A, Title XII of the American Recovery and
Reinvestment Act of 2009; or Section 1497 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act.
Subtitle H--National Wireless Initiative
SEC. 271. DEFINITIONS.
In this subtitle, the following definitions shall apply:
(1) 700 mhz band.--The term ``700 MHz band'' means the
portion of the electromagnetic spectrum between the frequencies
from 698 megahertz to 806 megahertz.
(2) 700 mhz d block spectrum.--The term ``700 MHz D block
spectrum'' means the portion of the electromagnetic spectrum
frequencies from 758 megahertz to 763 megahertz and from 788
megahertz to 793 megahertz.
(3) Appropriate committees of congress.--Except as
otherwise specifically provided, the term ``appropriate
committees of Congress'' means--
(A) the Committee on Commerce, Science, and
Transportation of the Senate; and
(B) the Committee on Energy and Commerce of the
House of Representatives.
(4) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary of Commerce for Communications
and Information.
(5) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(6) Corporation.--The term ``Corporation'' means the Public
Safety Broadband Corporation established in section 284.
(7) Existing public safety broadband spectrum.--The term
``existing public safety broadband spectrum'' means the portion
of the electromagnetic spectrum between the frequencies--
(A) from 763 megahertz to 768 megahertz;
(B) from 793 megahertz to 798 megahertz;
(C) from 768 megahertz to 769 megahertz; and
(D) from 798 megahertz to 799 megahertz.
(8) Federal entity.--The term ``Federal entity'' has the
same meaning as in section 113(i) of the National
Telecommunications and Information Administration Organization
Act (47 U.S.C. 923(i)).
(9) Narrowband spectrum.--The term ``narrowband spectrum''
means the portion of the electromagnetic spectrum between the
frequencies from 769 megahertz to 775 megahertz and between the
frequencies from 799 megahertz to 805 megahertz.
(10) NIST.--The term ``NIST'' means the National Institute
of Standards and Technology.
(11) NTIA.--The term ``NTIA'' means the National
Telecommunications and Information Administration.
(12) Public safety entity.--The term ``public safety
entity'' means an entity that provides public safety services.
(13) Public safety services.--The term ``public safety
services''--
(A) has the meaning given the term in section
337(f) of the Communications Act of 1934 (47 U.S.C.
337(f)); and
(B) includes services provided by emergency
response providers, as that term is defined in section
2 of the Homeland Security Act of 2002 (6 U.S.C. 101).
PART I--AUCTIONS OF SPECTRUM AND SPECTRUM MANAGEMENT
SEC. 272. CLARIFICATION OF AUTHORITIES TO REPURPOSE FEDERAL SPECTRUM
FOR COMMERCIAL PURPOSES.
(a) Paragraph (1) of subsection 113(g) of the National
Telecommunications and Information Administration Organization Act (47
U.S.C. 923(g)(1)) is amended by striking paragraph (1) and inserting
the following:
``(1) Eligible federal entities.--Any Federal entity that
operates a Federal Government station authorized to use a band
of frequencies specified in paragraph (2) and that incurs
relocation costs because of planning for a potential auction of
spectrum frequencies, a planned auction of spectrum frequencies
or the reallocation of spectrum frequencies from Federal use to
exclusive non-Federal use, or shared Federal and non-Federal
use may receive payment for such costs from the Spectrum
Relocation Fund, in accordance with section 118 of this Act.
For purposes of this paragraph, Federal power agencies exempted
under subsection (c)(4) that choose to relocate from the
frequencies identified for reallocation pursuant to subsection
(a), are eligible to receive payment under this paragraph.''.
(b) Eligible Frequencies.--Section 113(g)(2)(B) of the National
Telecommunications and Information Administration Organization Act (47
U.S.C. 923(g)(2)) is amended by deleting and replacing subsection (B)
with the following:
``(B) any other band of frequencies reallocated
from Federal use to non-Federal or shared use after
January 1, 2003, that is assigned by competitive
bidding pursuant to section 309(j) of the
Communications Act of 1934 (47 U.S.C. 309(j)) or is
assigned as a result of later legislation or other
administrative direction.''.
(c) Paragraph (3) of subsection 113(g) of the National
Telecommunications and Information Administration Organization Act (47
U.S.C. 923(g)(3)) is amended by striking it in its entirety and
replacing it with the following:
``(3) Definition of relocation and sharing costs.--For
purposes of this subsection, the terms `relocation costs' and
`sharing costs' mean the costs incurred by a Federal entity to
plan for a potential or planned auction or sharing of spectrum
frequencies and to achieve comparable capability of systems,
regardless of whether that capability is achieved by relocating
to a new frequency assignment, relocating a Federal Government
station to a different geographic location, modifying Federal
government equipment to mitigate interference or use less
spectrum, in terms of bandwidth, geography or time, and thereby
permitting spectrum sharing (including sharing among relocated
Federal entities and incumbents to make spectrum available for
non-Federal use) or relocation, or by utilizing an alternative
technology. Comparable capability of systems includes the
acquisition of state-of-the-art replacement systems intended to
meet comparable operational scope, which may include incidental
increases in functionality. Such costs include--
``(A) the costs of any modification or replacement
of equipment, spares, associated ancillary equipment,
software, facilities, operating manuals, training
costs, or regulations that are attributable to
relocation or sharing;
``(B) the costs of all engineering, equipment,
software, site acquisition and construction costs, as
well as any legitimate and prudent transaction expense,
including term-limited Federal civil servant and
contractor staff necessary, which may be renewed, to
carry out the relocation activities of an eligible
Federal entity, and reasonable additional costs
incurred by the Federal entity that are attributable to
relocation or sharing, including increased recurring
costs above recurring costs of the system before
relocation for the remaining estimated life of the
system being relocated;
``(C) the costs of research, engineering studies,
economic analyses, or other expenses reasonably
incurred in connection with (i) calculating the
estimated relocation costs that are provided to the
Commission pursuant to paragraph (4) of this
subsection, or in calculating the estimated sharing
costs; (ii) determining the technical or operational
feasibility of relocation to one or more potential
relocation bands; or (iii) planning for or managing a
relocation or sharing project (including spectrum
coordination with auction winners) or potential
relocation or sharing project;
``(D) the one-time costs of any modification of
equipment reasonably necessary to accommodate
commercial use of shared frequencies or, in the case of
frequencies reallocated to exclusive commercial use,
prior to the termination of the Federal entity's
primary allocation or protected status, when the
eligible frequencies as defined in paragraph (2) of
this subsection are made available for private sector
uses by competitive bidding and a Federal entity
retains primary allocation or protected status in those
frequencies for a period of time after the completion
of the competitive bidding process;
``(E) the costs associated with the accelerated
replacement of systems and equipment if such
acceleration is necessary to ensure the timely
relocation of systems to a new frequency assignment or
the timely accommodation of sharing of Federal
frequencies; and
``(F) the costs of the use of commercial systems
and services (including systems not utilizing spectrum)
to replace Federal systems discontinued or relocated
pursuant to this Act, including lease, subscription,
and equipment costs over an appropriate period, such as
the anticipated life of an equivalent Federal system or
other period determined by the Director of the Office
of Management and Budget.''.
(d) A new subsection (7) is added to Section 113(g) as follows:
``(7) Spectrum sharing.--Federal entities are permitted to
allow access to their frequency assignments by non-Federal
entities upon approval of the terms of such access by NTIA, in
consultation with the Office of Management and Budget. Such
non-Federal entities must comply with all applicable rules of
the Commission and NTIA, including any regulations promulgated
pursuant to this section. Remuneration associated with such
access shall be deposited into the Spectrum Relocation Fund.
Federal entities that incur costs as a result of such access
are eligible for payment from the Fund for the purposes
specified in subsection (3) of this section. The revenue
associated with such access must be at least 110 percent of the
estimated Federal costs.''.
(e) Section 118 of such Act (47 U.S.C. 928) is amended by:
(1) In subsection (b), adding at the end, ``and any
payments made by non-Federal entities for access to Federal
spectrum pursuant to 47 U.S.C. 113(g)(7)'';
(2) replacing subsection (c) with the following:
``The amounts in the Fund from auctions of eligible frequencies are
authorized to be used to pay relocation costs, as defined in section
(g)(3) of this title, of an eligible Federal entity incurring such
costs with respect to relocation from any eligible frequency. In
addition, the amounts in the Fund from payments by non-Federal entities
for access to Federal spectrum are authorized to be used to pay Federal
costs associated with such sharing, as defined in section (g)(3) of
this title. The Director of the Office of Management and Budget (OMB)
may transfer at any time (including prior to any auction or
contemplated auction, or sharing initiative) such sums as may be
available in the Fund to an eligible Federal entity to pay eligible
relocation or sharing costs related to pre-auction estimates or
research as defined in subparagraph (C) of section 923(g)(3) of this
title. However, the Director may not transfer more than $100,000,000
associated with authorized pre-auction activities before an auction is
completed and proceeds are deposited in the Spectrum Relocation Fund.
Within the $100,000,000 that may be transferred before an auction, the
Director of OMB may transfer up to $10,000,000 in total to eligible
federal entities for eligible relocation or sharing costs related to
pre-auction estimates or research as defined in subparagraph (C) of
section 923(g)(3) of this title for costs incurred prior to the
enactment of this legislation, but after June 28th, 2010. These amounts
transferred pursuant to the previous proviso are in addition to amounts
that the Director of OMB may transfer after the enactment of this
legislation.'';
(3) amending subsection (d)(1) to add, ``and sharing''
before ``costs'';
(4) amending subsection (d)(2)(B) to add, ``and sharing''
before ``costs'', and adding at the end, ``and sharing'';
(5) replacing subsection (d)(3) with the following:
``Any amounts in the Fund that are remaining after the payment of
the relocation and sharing costs that are payable from the Fund shall
revert to and be deposited in the general fund of the Treasury not
later than 15 years after the date of the deposit of such proceeds to
the Fund, unless the Director of OMB, in consultation with the
Assistant Secretary for Communications and Information, notifies the
Committees on Appropriations and Energy and Commerce of the House of
Representatives and the Committees on Appropriations and Commerce,
Science, and Transportation of the Senate at least 60 days in advance
of the reversion of the funds to the general fund of the Treasury that
such funds are needed to complete or to implement current or future
relocations or sharing initiatives.'';
(6) amending subsection (e)(2) by adding ``and sharing''
before ``costs''; by adding ``or sharing'' before ``is
complete''; and by adding ``or sharing'' before ``in
accordance''; and
(7) adding a new subsection at the end thereof:
``(f) Notwithstanding subsections (c) through (e) of this section
and after the amount specified in subsection (b), up to twenty percent
of the amounts deposited in the Spectrum Relocation Fund from the
auction of licenses following the date of enactment of this section for
frequencies vacated by Federal entities, or up to twenty percent of the
amounts paid by non-Federal entities for sharing of Federal spectrum,
after the date of enactment are hereby appropriated and available at
the discretion of the Director of the Office of Management and Budget,
in consultation with the Assistant Secretary for Communications and
Information, for payment to the eligible Federal entities, in addition
to the relocation and sharing costs defined in paragraph (3) of
subsection 923(g), for the purpose of encouraging timely access to
those frequencies, provided that:
``(1) Such payments may be based on the market value of the
spectrum, timeliness of clearing, and needs for agencies'
essential missions;
``(2) Such payments are authorized for:
``(A) the purposes of achieving enhanced
capabilities of systems that are affected by the
activities specified in subparagraphs (A) through (F)
of paragraph (3) of subsection 923(g) of this title;
and
``(B) other communications, radar and spectrum-
using investments not directly affected by such
reallocation or sharing but essential for the missions
of the Federal entity that is relocating its systems or
sharing frequencies;
``(3) The increase to the Fund due to any one auction after
any payment is not less than 10 percent of the winning bids in
the relevant auction, or is not less than 10 percent of the
payments from non-Federal entities in the relevant sharing
agreement;
``(4) Payments to eligible entities must be based on the
proceeds generated in the auction that an eligible entity
participates in; and
``(5) Such payments will not be made until 30 days after
the Director of OMB has notified the Committees on
Appropriations and Commerce, Science, and Transportation of the
Senate, and the Committees on Appropriations and Energy and
Commerce of the House of Representatives.''.
(f) Subparagraph D of section 309 (j)(8) of the Communications Act
of 1934 (47 U.S.C. 309(j)(8)(D)) is amended by adding ``, after the
retention of revenue described in subparagraph (B),'' before
``attributable'' and ``and frequencies identified by the Federal
Communications Commission to be auctioned in conjunction with eligible
frequencies described in 47 U.S.C. 923(g)(2)'' before the first
``shall'' in the subparagraph.
(g) If the head of an executive agency of the Federal Government
determines that public disclosure of any information contained in
notifications and reports required by sections 923 or 928 of Title 47
of the United States Code would reveal classified national security
information or other information for which there is a legal basis for
nondisclosure and such public disclosure would be detrimental to
national security, homeland security, public safety, or jeopardize law
enforcement investigations the head of the executive agency shall
notify the NTIA of that determination prior to release of such
information. In that event, such information shall be included in a
separate annex, as needed and to the extent the agency head determines
is consistent with national security or law enforcement purposes. These
annexes shall be provided to the appropriate subcommittee in accordance
with applicable stipulations, but shall not be disclosed to the public
or provided to any unauthorized person through any other means.
SEC. 273. INCENTIVE AUCTION AUTHORITY.
(a) Paragraph (8) of section 309(j) of the Communications Act of
1934 (47 U.S.C. 309(j)) is amended--
(1) in subparagraph (A), by deleting ``and (E)'' and
inserting ``(E) and (F)'' after ``subparagraphs (B), (D),'';
and
(2) by adding at the end the following new subparagraphs:
``(F) Notwithstanding any other provision of law,
if the Commission determines that it is consistent with
the public interest in utilization of the spectrum for
a licensee to voluntarily relinquish some or all of its
licensed spectrum usage rights in order to permit the
assignment of new initial licenses through a
competitive bidding process subject to new service
rules, or the designation of spectrum for unlicensed
use, the Commission may pay to such licensee a portion
of any auction proceeds that the Commission determines,
in its discretion, are attributable to the spectrum
usage rights voluntarily relinquished by such licensee.
If the Commission also determines that it is in the
public interest to modify the spectrum usage rights of
any incumbent licensee in order to facilitate the
assignment of such new initial licenses subject to new
service rules, or the designation of spectrum for
unlicensed use, the Commission may pay to such licensee
a portion of the auction proceeds for the purpose of
relocating to any alternative frequency or location
that the Commission may designate; Provided, however,
that with respect to frequency bands between 54
megahertz and 72 megahertz, 76 megahertz and 88
megahertz, 174 megahertz and 216 megahertz, and 470
megahertz and 698 megahertz (`the specified bands'),
any spectrum made available for alternative use
utilizing payments authorized under this subsection
shall be assigned via the competitive bidding process
until the winning bidders for licenses covering at
least 84 megahertz from the specified bands deposit the
full amount of their bids in accordance with the
Commission's instructions. In addition, if more than 84
megahertz of spectrum from the specified bands is made
available for alternative use utilizing payments under
this subsection, and such spectrum is assigned via
competitive bidding, a portion of the proceeds may be
disbursed to licensees of other frequency bands for the
purpose of making additional spectrum available,
provided that a majority of such additional spectrum is
assigned via competitive bidding. Also, provided that
in exercising the authority provided under this
section:
``(i) The Chairman of the Commission, in
consultation with the Director of OMB, shall
notify the Committees on Appropriations and
Commerce, Science, and Transportation of the
Senate, and the Committees on Appropriations
and Energy and Commerce of the House of
Representatives of the methodology for
calculating such payments to licensees at least
3 months in advance of the relevant auction,
and that such methodology consider the value of
spectrum vacated in its current use and the
timeliness of clearing; and
``(ii) Notwithstanding subparagraph (A),
and except as provided in subparagraphs (B),
(C), and (D), all proceeds (including deposits
and up front payments from successful bidders)
from the auction of spectrum under this section
and section 106 of this Act shall be deposited
with the Public Safety Trust Fund established
under section 217 of this Act.
``(G) Establishment of incentive auction relocation
fund.--
``(i) In general.--There is established in
the Treasury of the United States a fund to be
known as the `Incentive Auction Relocation
Fund'.
``(ii) Administration.--The Assistant
Secretary shall administer the Incentive
Auction Relocation Fund using the amounts
deposited pursuant to this section.
``(iii) Crediting of receipts.--There shall
be deposited into or credited to the Incentive
Auction Relocation Fund any amounts specified
in section 217 of this Act.
``(iv) Availability.--Amounts in the
Incentive Auction Relocation Fund shall be
available to the NTIA for use--
``(I) without fiscal year
limitation;
``(II) for a period not to exceed
18 months following the later of--
``(aa) the completion of
incentive auction from which
such amounts were derived;
``(bb) the date on which
the Commission issues all the
new channel assignments
pursuant to any repacking
required under subparagraph
(F)(ii); or
``(cc) the issuance of a
construction permit by the
Commission for a station to
change channels, geographic
locations, to collocate on the
same channel or notification by
a station to the Assistant
Secretary that it is impacted
by such a change; and
``(III) without further
appropriation.
``(v) Use of funds.--Amounts in the
Incentive Auction Relocation Fund may only be
used by the NTIA, in consultation with the
Commission, to cover--
``(I) the reasonable costs of
television broadcast stations that are
relocated to a different spectrum
channel or geographic location
following an incentive auction under
subparagraph (F), or that are impacted
by such relocations, including to cover
the cost of new equipment,
installation, and construction; and
``(II) the costs incurred by
multichannel video programming
distributors for new equipment,
installation, and construction related
to the carriage of such relocated
stations or the carriage of stations
that voluntarily elect to share a
channel, but retain their existing
rights to carriage pursuant to sections
338, 614, and 615.''.
SEC. 274. REQUIREMENTS WHEN REPURPOSING CERTAIN MOBILE SATELLITE
SERVICES SPECTRUM FOR TERRESTRIAL BROADBAND USE.
To the extent that the Commission makes available terrestrial
broadband rights on spectrum primarily licensed for mobile satellite
services, the Commission shall recover a significant portion of the
value of such right either through the authority provided in section
309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)) or by
section 278 of this subtitle.
SEC. 275. PERMANENT EXTENSION OF AUCTION AUTHORITY.
Section 309(j)11 of the Communications Act of 1934 (47 U.S.C. 309
(j)(11)) is repealed.
SEC. 276. AUTHORITY TO AUCTION LICENSES FOR DOMESTIC SATELLITE
SERVICES.
Section 309(j) of the Communications Act of 1934 is amended by
adding the following new subsection at the end thereof:
``(17) Notwithstanding any other provision of law, the
Commission shall use competitive bidding under this subsection
to assign any license, construction permit, reservation, or
similar authorization or modification thereof, that may be used
solely or predominantly for domestic satellite communications
services, including satellite-based television or radio
services. A service is defined to be predominantly for domestic
satellite communications services if the majority of customers
that may be served are located within the geographic boundaries
of the United States. The Commission may, however, use an
alternative approach to assignment of such licenses or similar
authorities if it finds that such an alternative to competitive
bidding would serve the public interest, convenience, and
necessity. This paragraph shall be effective on the date of its
enactment and shall apply to all Commission assignments or
reservations of spectrum for domestic satellite services,
including, but not limited to, all assignments or reservations
for satellite-based television or radio services as of the
effective date.''.
SEC. 277. DIRECTED AUCTION OF CERTAIN SPECTRUM.
(a) Identification of Spectrum.--Not later than 1 year after the
date of enactment of this subtitle, the Assistant Secretary shall
identify and make available for immediate reallocation, at a minimum,
15 megahertz of contiguous spectrum at frequencies located between 1675
megahertz and 1710 megahertz, inclusive, minus the geographic exclusion
zones, or any amendment thereof, identified in NTIA's October 2010
report entitled ``An Assessment of Near-Term Viability of Accommodating
Wireless Broadband Systems in 1675-1710 MHz, 1755-1780 MHz, 3500-3650
MHz, and 4200-4220 MHz, 4380-4400 MHz Bands'', to be made available for
reallocation or sharing with incumbent Government operations.
(b) Auction.--Not later than January 31, 2016, the Commission shall
conduct, in such combination as deemed appropriate by the Commission,
the auctions of the following licenses covering at least the
frequencies described in this section, by commencing the bidding for:
(1) The spectrum between the frequencies of 1915 megahertz
and 1920 megahertz, inclusive.
(2) The spectrum between the frequencies of 1995 megahertz
and 2000 megahertz, inclusive.
(3) The spectrum between the frequencies of 2020 megahertz
and 2025 megahertz, inclusive.
(4) The spectrum between the frequencies of 2155 megahertz
and 2175 megahertz, inclusive.
(5) The spectrum between the frequencies of 2175 megahertz
and 2180 megahertz, inclusive.
(6) At least 25 megahertz of spectrum between the
frequencies of 1755 megahertz and 1850 megahertz, minus
appropriate geographic exclusion zones if necessary, unless the
President of the United States determines that--
(A) such spectrum should not be reallocated due to
the need to protect incumbent Federal operations; or
reallocation must be delayed or progressed in phases to
ensure protection or continuity of Federal operations;
and
(B) allocation of other spectrum--
(i) better serves the public interest,
convenience, and necessity; and
(ii) can reasonably be expected to produce
receipts comparable to auction of spectrum
frequencies identified in this paragraph.
(7) The Commission may substitute alternative spectrum
frequencies for the spectrum frequencies identified in
paragraphs (1) through (5) of this subsection, if the
Commission determines that alternative spectrum would better
serve the public interest and the Office of Management and
Budget certifies that such alternative spectrum frequencies are
reasonably expected to produce receipts comparable to auction
of the spectrum frequencies identified in paragraphs (1)
through (5) of this subsection.
(c) Auction Organization.--The Commission may, if technically
feasible and consistent with the public interest, combine the spectrum
identified in paragraphs (4), (5), and the portion of paragraph (6)
between the frequencies of 1755 megahertz and 1850 megahertz,
inclusive, of subsection (b) in an auction of licenses for paired
spectrum blocks.
(d) Further Reallocation of Certain Other Spectrum.--
(1) Covered spectrum.--For purposes of this subsection, the
term ``covered spectrum'' means the portion of the
electromagnetic spectrum between the frequencies of 3550 to
3650 megahertz, inclusive, minus the geographic exclusion
zones, or any amendment thereof, identified in NTIA's October
2010 report entitled ``An Assessment of Near-Term Viability of
Accommodating Wireless Broadband Systems in 1675-1710 MHz,
1755-1780 MHz, 3500-3650 MHz, and 4200-4220 MHz, 4380-4400 MHz
Bands''.
(2) In general.--Consistent with requirements of section
309(j) of the Communications Act of 1934, the Commission shall
reallocate covered spectrum for assignment by competitive
bidding or allocation to unlicensed use, minus appropriate
exclusion zones if necessary, unless the President of the
United States determines that--
(A) such spectrum cannot be reallocated due to the
need to protect incumbent Federal systems from
interference; or
(B) allocation of other spectrum--
(i) better serves the public interest,
convenience, and necessity; and
(ii) can reasonably be expected to produce
receipts comparable to what the covered
spectrum might auction for without the
geographic exclusion zones.
(3) Actions required if covered spectrum cannot be
reallocated.--
(A) In general.--If the President makes a
determination under paragraph (2) that the covered
spectrum cannot be reallocated, then the President
shall, within 1 year after the date of such
determination--
(i) identify alternative bands of
frequencies totaling more than 20 megahertz and
no more than 100 megahertz of spectrum used
primarily by Federal agencies that satisfy the
requirements of clauses (i) and (ii) of
paragraph (2)(B);
(ii) report to the appropriate committees
of Congress and the Commission an
identification of such alternative spectrum for
assignment by competitive bidding; and
(iii) make such alternative spectrum for
assignment immediately available for
reallocation.
(B) Auction.--If the President makes a
determination under paragraph (2) that the covered
spectrum cannot be reallocated, the Commission shall
commence the bidding of the alternative spectrum
identified pursuant to subparagraph (A) within 3 years
of the date of enactment of this subtitle.
(4) Actions required if covered spectrum can be
reallocated.--If the President does not make a determination
under paragraph (1) that the covered spectrum cannot be
reallocated, the Commission shall commence the competitive
bidding for the covered spectrum within 3 years of the date of
enactment of this subtitle.
(e) Amendments to Design Requirements Related to Competitive
Bidding.--Section 309(j) of the Communications Act of 1934 (47 U.S.C.
309(j)) is amended--
(1) in paragraph (3)--
(A) in subparagraph (E)(ii), by striking ``; and''
and inserting a semicolon; and
(B) in subparagraph (F), by striking the period at
the end and inserting a semicolon; and
(2) by amending clause (i) of the second sentence of
paragraph (8)(C) to read as follows:
``(i) the deposits--
``(I) of successful bidders of any
auction conducted pursuant to
subparagraph (F) of section 106 of this
act shall be paid to the Public Safety
Trust Fund established under section
217 of such Act; and
``(II) of successful bidders of any
other auction shall be paid to the
Treasury;''.
SEC. 278. AUTHORITY TO ESTABLISH SPECTRUM LICENSE USER FEES.
Section 309 of the Communications Act of 1934 is amended by adding
the following new subsection at the end thereof:
``(m) Use of Spectrum License User Fees.--For initial licenses or
construction permits that are not granted through the use of
competitive bidding as set forth in subsection (j), and for renewals or
modifications of initial licenses or other authorizations, whether
granted through competitive bidding or not, the Commission may, where
warranted, establish, assess, and collect annual user fees on holders
of spectrum licenses or construction permits, including their
successors or assignees, in order to promote efficient and effective
use of the electromagnetic spectrum.
``(1) Required collections.--The Commission shall collect
at least the following amounts--
``(A) $200,000,000 in fiscal year 2012;
``(B) $300,000,000 in fiscal year 2013;
``(C) $425,000,000 in fiscal year 2014;
``(D) $550,000,000 in fiscal year 2015;
``(E) $550,000,000 in fiscal year 2016;
``(F) $550,000,000 in fiscal year 2017;
``(G) $550,000,000 in fiscal year 2018;
``(H) $550,000,000 in fiscal year 2019;
``(I) $550,000,000 in fiscal year 2020; and
``(J) $550,000,000 in fiscal year 2021.
``(2) Development of spectrum fee regulations.--
``(A) The Commission shall, by regulation,
establish a methodology for assessing annual spectrum
user fees and a schedule for collection of such fees on
classes of spectrum licenses or construction permits or
other instruments of authorization, consistent with the
public interest, convenience and necessity. The
Commission may determine over time different classes of
spectrum licenses or construction permits upon which
such fees may be assessed. In establishing the fee
methodology, the Commission may consider the following
factors:
``(i) the highest value alternative
spectrum use forgone;
``(ii) scope and type of permissible
services and uses;
``(iii) amount of spectrum and licensed
coverage area;
``(iv) shared versus exclusive use;
``(v) level of demand for spectrum licenses
or construction permits within a certain
spectrum band or geographic area;
``(vi) the amount of revenue raised on
comparable licenses awarded through an auction;
and
``(vii) such factors that the Commission
determines, in its discretion, are necessary to
promote efficient and effective spectrum use.
``(B) In addition, the Commission shall, by
regulation, establish a methodology for assessing
annual user fees and a schedule for collection of such
fees on entities holding Ancillary Terrestrial
Component authority in conjunction with Mobile
Satellite Service spectrum licenses, where the
Ancillary Terrestrial Component authority was not
assigned through use of competitive bidding. The
Commission shall not collect less from the holders of
such authority than a reasonable estimate of the value
of such authority over its term, regardless of whether
terrestrial services is actually provided during this
term. In determining a reasonable estimate of the value
of such authority, the Commission may consider factors
listed in subsection (A).
``(C) Within 60 days of enactment of this Act, the
Commission shall commence a rulemaking to develop the
fee methodology and regulations. The Commission shall
take all actions necessary so that it can collect fees
from the first class or classes of spectrum license or
construction permit holders no later than September 30,
2012.
``(D) The Commission, from time to time, may
commence further rulemakings (separate from or in
connection with other rulemakings or proceedings
involving spectrum-based services, licenses, permits
and uses) and modify the fee methodology or revise its
rules required by paragraph (B) to add or modify
classes of spectrum license or construction permit
holders that must pay fees, and assign or adjust such
fee as a result of the addition, deletion,
reclassification or other change in a spectrum-based
service or use, including changes in the nature of a
spectrum-based service or use as a consequence of
Commission rulemaking proceedings or changes in law.
Any resulting changes in the classes of spectrum
licenses, construction permits or fees shall take
effect upon the dates established in the Commission's
rulemaking proceeding in accordance with applicable
law.
``(E) The Commission shall exempt from such fees
holders of licenses for broadcast television and public
safety services. The term `emergency response
providers' includes State, local, and tribal, emergency
public safety, law enforcement, firefighter, emergency
response, emergency medical (including hospital
emergency facilities), and related personnel, agencies
and authorities.
``(3) Penalties for late payment.--The Commission shall
prescribe by regulation an additional charge which shall be
assessed as a penalty for late payment of fees required by this
subsection.
``(4) Revocation of license or permit.--The Commission may
revoke any spectrum license or construction permit for a
licensee's or permitee's failure to pay in a timely manner any
fee or penalty to the Commission under this subsection. Such
revocation action may be taken by the Commission after notice
of the Commission's intent to take such action is sent to the
licensee by registered mail, return receipt requested, at the
licensee's last known address. The notice will provide the
licensee at least 30 days to either pay the fee or show cause
why the fee does not apply to the licensee or should otherwise
be waived or payment deferred. A hearing is not required under
this subsection unless the licensee's response presents a
substantial and material question of fact. In any case where a
hearing is conducted pursuant to this section, the hearing
shall be based on written evidence only, and the burden of
proceeding with the introduction of evidence and the burden of
proof shall be on the licensee. Unless the licensee
substantially prevails in the hearing, the Commission may
assess the licensee for the costs of such hearing. Any
Commission order adopted pursuant to this subsection shall
determine the amount due, if any, and provide the licensee with
at least 30 days to pay that amount or have its authorization
revoked. No order of revocation under this subsection shall
become final until the licensee has exhausted its right to
judicial review of such order under section 402(b)(5) of this
title.
``(5) Treatment of revenues.--All proceeds obtained
pursuant to the regulations required by this subsection shall
be deposited in the General Fund of the Treasury.''.
PART II--PUBLIC SAFETY BROADBAND NETWORK
SEC. 281. REALLOCATION OF D BLOCK FOR PUBLIC SAFETY.
(a) In General.--The Commission shall reallocate the 700 MHz D
block spectrum for use by public safety entities in accordance with the
provisions of this subtitle.
(b) Spectrum Allocation.--Section 337(a) of the Communications Act
of 1934 (47 U.S.C. 337(a)) is amended--
(1) by striking ``24'' in paragraph (1) and inserting
``34''; and
(2) by striking ``36'' in paragraph (2) and inserting
``26''.
SEC. 282. FLEXIBLE USE OF NARROWBAND SPECTRUM.
The Commission may allow the narrowband spectrum to be used in a
flexible manner, including usage for public safety broadband
communications, subject to such technical and interference protection
measures as the Commission may require and subject to interoperability
requirements of the Commission and the Corporation established in
section 204 of this subtitle.
SEC. 283. SINGLE PUBLIC SAFETY WIRELESS NETWORK LICENSEE.
(a) Reallocation and Grant of License.--Notwithstanding any other
provision of law, and subject to the provisions of this subtitle,
including section 290, the Commission shall grant a license to the
Public Safety Broadband Corporation established under section 284 for
the use of the 700 MHz D block spectrum and existing public safety
broadband spectrum.
(b) Term of License.--
(1) Initial license.--The license granted under subsection
(a) shall be for an initial term of 10 years from the date of
the initial issuance of the license.
(2) Renewal of license.--Prior to expiration of the term of
the initial license granted under subsection (a) or the
expiration of any subsequent renewal of such license, the
Corporation shall submit to the Commission an application for
the renewal of such license. Such renewal application shall
demonstrate that, during the preceding license term, the
Corporation has met the duties and obligations set forth under
this subtitle. A renewal license granted under this paragraph
shall be for a term of not to exceed 15 years.
(c) Facilitation of Transition.--The Commission shall take all
actions necessary to facilitate the transition of the existing public
safety broadband spectrum to the Public Safety Broadband Corporation
established under section 284.
SEC. 284. ESTABLISHMENT OF PUBLIC SAFETY BROADBAND CORPORATION.
(a) Establishment.--There is authorized to be established a
private, nonprofit corporation, to be known as the ``Public Safety
Broadband Corporation'', which is neither an agency nor establishment
of the United States Government or the District of Columbia Government.
(b) Application of Provisions.--The Corporation shall be subject to
the provisions of this subtitle, and, to the extent consistent with
this subtitle, to the District of Columbia Nonprofit Corporation Act
(sec. 29-301.01 et seq., D.C. Official Code).
(c) Residence.--The Corporation shall have its place of business in
the District of Columbia and shall be considered, for purposes of venue
in civil actions, to be a resident of the District of Columbia.
(d) Powers Under DC Act.--In order to carry out the duties and
activities of the Corporation, the Corporation shall have the usual
powers conferred upon a nonprofit corporation by the District of
Columbia Nonprofit Corporation Act.
(e) Incorporation.--The members of the initial Board of Directors
of the Corporation shall serve as incorporators and shall take whatever
steps that are necessary to establish the Corporation under the
District of Columbia Nonprofit Corporation Act.
SEC. 285. BOARD OF DIRECTORS OF THE CORPORATION.
(a) Membership.--The management of the Corporation shall be vested
in a Board of Directors (referred to in this Title as the ``Board''),
which shall consist of the following members:
(1) Federal members.--The following individuals, or their
respective designees, shall serve as Federal members:
(A) The Secretary of Commerce.
(B) The Secretary of Homeland Security.
(C) The Attorney General of the United States.
(D) The Director of the Office of Management and
Budget.
(2) Non-federal members.--
(A) In general.--The Secretary of Commerce, in
consultation with the Secretary of Homeland Security
and the Attorney General of the United States, shall
appoint 11 individuals to serve as non-Federal members
of the Board.
(B) State, territorial, tribal and local government
interests.--In making appointments under subparagraph
(A), the Secretary of Commerce should--
(i) appoint at least 3 individuals with
significant expertise in the collective
interests of State, territorial, tribal and
local governments; and
(ii) seek to ensure geographic and regional
representation of the United States in such
appointments; and
(iii) seek to ensure rural and urban
representation in such appointments.
(C) Public safety interests.--In making
appointments under subparagraph (A), the Secretary of
Commerce should appoint at least 3 individuals who have
served or are currently serving as public safety
professionals.
(D) Required qualifications.--
(i) In general.--Each non-Federal member
appointed under subparagraph (A) should meet at
least 1 of the following criteria:
(I) Public safety experience.--
Knowledge and experience in the use of
Federal, State, local, or tribal public
safety or emergency response.
(II) Technical expertise.--
Technical expertise and fluency
regarding broadband communications,
including public safety communications
and cybersecurity.
(III) Network expertise.--Expertise
in building, deploying, and operating
commercial telecommunications networks.
(IV) Financial expertise.--
Expertise in financing and funding
telecommunications networks.
(ii) Expertise to be represented.--In
making appointments under subparagraph (A), the
Secretary of Commerce should appoint--
(I) at least one individual who
satisfies the requirement under
subclause (II) of clause (i);
(II) at least one individual who
satisfies the requirement under
subclause (III) of clause (i); and
(III) at least one individual who
satisfies the requirement under
subclause (IV) of clause (i).
(E) Independence.--
(i) In general.--Each non-Federal member of
the Board shall be independent and neutral and
maintain a fiduciary relationship with the
Corporation in performing his or her duties.
(ii) Independence determination.--In order
to be considered independent for purposes of
this subparagraph, a member of the Board--
(I) may not, other than in his or
her capacity as a member of the Board
or any committee thereof--
(aa) accept any consulting,
advisory, or other compensatory
fee from the Corporation; or
(bb) be a person associated
with the Corporation or with
any affiliated company thereof;
and
(II) shall be disqualified from any
deliberation involving any transaction
of the Corporation in which the Board
member has a financial interest in the
outcome of the transaction.
(F) Not officers or employees.--The non-Federal
members of the Board shall not, by reason of such
membership, be considered to be officers or employees
of the United States Government or of the District of
Columbia Government.
(G) Citizenship.--No individual other than a
citizen of the United States may serve as a non-Federal
member of the Board.
(H) Clearance for classified information.--In order
to have the threat and vulnerability information
necessary to make risk management decisions regarding
the network, the non-Federal members of the Board shall
be required, prior to appointment, to obtain a
clearance held by the Director of National Intelligence
that permits them to receive information classified at
the level of Top Secret, Special Compartmented
Information.
(b) Terms of Appointment.--
(1) Initial appointment deadline.--Members of the Board
shall be appointed not later than 180 days after the date of
the enactment of this subtitle.
(2) Terms.--
(A) Length.--
(i) Federal members.--Each Federal member
of the Board shall serve as a member of the
Board for the life of the Corporation while
serving in their appointed capacity.
(ii) Non-federal members.--The term of
office of each non-Federal member of the Board
shall be 3 years. No non-Federal member of the
Board may serve more than 2 consecutive full 3-
year terms.
(B) Expiration of term.--Any member whose term has
expired may serve until such member's successor has
taken office, or until the end of the calendar year in
which such member's term has expired, whichever is
earlier.
(C) Appointment to fill vacancy.--Any non-Federal
member appointed to fill a vacancy occurring prior to
the expiration of the term for which that member's
predecessor was appointed shall be appointed for the
remainder of the predecessor's term.
(D) Staggered terms.--With respect to the initial
non-Federal members of the Board--
(i) 4 members shall serve for a term of 3
years;
(ii) 4 members shall serve for a term of 2
years; and
(iii) 3 members shall serve for a term of 1
year.
(3) Vacancies.--A vacancy in the membership of the Board
shall not affect the Board's powers, and shall be filled in the
same manner as the original member was appointed.
(c) Chair.--
(1) Selection.--The Secretary of Commerce, in consultation
with the Secretary of Homeland Security and the Attorney
General of the United States, shall select, from among the
members of the Board, an individual to serve for a 2-year term
as Chair of the Board.
(2) Consecutive terms.--An individual may not serve for
more than 2 consecutive terms as Chair of the Board.
(3) Removal for cause.--The Secretary of Commerce, in
consultation with the Secretary of Homeland Security and the
Attorney General of the United States, may remove the Chair of
the Board and any non-Federal member for good cause.
(d) Removal.--All members of the Board may by majority vote--
(1) remove any non-Federal member of the Board from office
for conduct determined by the Board to be detrimental to the
Board or Corporation; and
(2) request that the Secretary of Commerce exercise his or
her authority to remove the Chair of the Board for conduct
determined by the Board to be detrimental to the Board or
Corporation.
(e) Meetings.--
(1) Frequency.--The Board shall meet in accordance with the
bylaws of the Corporation--
(A) at the call of the Chairperson; and
(B) not less frequently than once each quarter.
(2) Transparency.--Meetings of the Board, including any
committee of the Board, shall be open to the public. The Board
may, by majority vote, close any such meeting only for the time
necessary to preserve the confidentiality of commercial or
financial information that is privileged or confidential, to
discuss personnel matters, to discuss security vulnerabilities
when making those vulnerabilities public would increase risk to
the network or otherwise materially threaten network
operations, or to discuss legal matters affecting the
Corporation, including pending or potential litigation.
(f) Quorum.--Eight members of the Board shall constitute a quorum.
(g) Bylaws.--A majority of the members of the Board of Directors
may amend the bylaws of the Corporation.
(h) Attendance.--Members of the Board of Directors may attend
meetings of the Corporation and vote in person, via telephone
conference, or via video conference.
(i) Prohibition on Compensation.--Members of the Board of the
Corporation shall serve without pay, and shall not otherwise benefit,
directly or indirectly, as a result of their service to the
Corporation, but shall be allowed a per diem allowance for travel
expenses, at rates authorized for an employee of an agency under
subchapter I of chapter 57 of title 5, United States Code, while away
from the home or regular place of business of the member in the
performance of the duties of the Corporation.
SEC. 286. OFFICERS, EMPLOYEES, AND COMMITTEES OF THE CORPORATION.
(a) Officers and Employees.--
(1) In general.--The Corporation shall have a Chief
Executive Officer, and such other officers and employees as may
be named and appointed by the Board for terms and at rates of
compensation fixed by the Board pursuant to this subsection.
The Chief Executive Officer may name and appoint such employees
as are necessary. All officers and employees shall serve at the
pleasure of the Board.
(2) Limitation.--No individual other than a citizen of the
United States may be an officer of the Corporation.
(3) Nonpolitical nature of appointment.--No political test
or qualification shall be used in selecting, appointing,
promoting, or taking other personnel actions with respect to
officers, agents, or employees of the Corporation.
(4) Compensation.--
(A) In general.--The Board may hire and fix the
compensation of employees hired under this subsection
as may be necessary to carry out the purposes of the
Corporation.
(B) Approval by compensation by federal members.--
Notwithstanding any other provision of law, or any
bylaw adopted by the Corporation, all rates of
compensation, including benefit plans and salary
ranges, for officers and employees of the Board, shall
be jointly approved by the Federal members of the
Board.
(C) Limitation on other compensation.--No officer
or employee of the Corporation may receive any salary
or other compensation (except for compensation for
services on boards of directors of other organizations
that do not receive funds from the Corporation, on
committees of such boards, and in similar activities
for such organizations) from any sources other than the
Corporation for services rendered during the period of
the employment of the officer or employee by the
Corporation, unless unanimously approved by all voting
members of the Corporation.
(5) Service on other boards.--Service by any officer on
boards of directors of other organizations, on committees of
such boards, and in similar activities for such organizations
shall be subject to annual advance approval by the Board and
subject to the provisions of the Corporation's Statement of
Ethical Conduct.
(6) Rule of construction.--No officer or employee of the
Board or of the Corporation shall be considered to be an
officer or employee of the United States Government or of the
government of the District of Columbia.
(7) Clearance for classified information.--In order to have
the threat and vulnerability information necessary to make risk
management decisions regarding the network, at a minimum the
Chief Executive Officer and any officers filling the roles
normally titled as Chief Information Officers, Chief
Information Security Officer, and Chief Operations Officer
shall--
(A) be required, within six months of being hired,
to obtain a clearance held by the Director of National
Intelligence that permits them to receive information
classified at the level of Top Secret, Special
Compartmented Information.
(b) Advisory Committees.--The Board--
(1) shall establish a standing public safety advisory
committee to assist the Board in carrying out its duties and
responsibilities under this title; and
(2) may establish additional standing or ad hoc committees,
panels, or councils as the Board determines are necessary.
SEC. 287. NONPROFIT AND NONPOLITICAL NATURE OF THE CORPORATION.
(a) Stock.--The Corporation shall have no power to issue any shares
of stock, or to declare or pay any dividends.
(b) Profit.--No part of the income or assets of the Corporation
shall inure to the benefit of any director, officer, employee, or any
other individual associated with the Corporation, except as salary or
reasonable compensation for services.
(c) Politics.--The Corporation may not contribute to or otherwise
support any political party or candidate for elective public office.
(d) Prohibition on Lobbying Activities.--The Corporation shall not
engage in lobbying activities (as defined in section 3(7) of the
Lobbying Disclosure Act of 1995 (5 U.S.C. 1602(7))).
SEC. 288. POWERS, DUTIES, AND RESPONSIBILITIES OF THE CORPORATION.
(a) General Powers.--The Corporation shall have the authority to do
the following:
(1) To adopt and use a corporate seal.
(2) To have succession until dissolved by an Act of
Congress.
(3) To prescribe, through the actions of its Board, bylaws
not inconsistent with Federal law and the laws of the District
of Columbia, regulating the manner in which the Corporation's
general business may be conducted and the manner in which the
privileges granted to the Corporation by law may be exercised.
(4) To exercise, through the actions of its Board, all
powers specifically granted by the provisions of this title,
and such incidental powers as shall be necessary.
(5) To hold such hearings, sit and act at such times and
places, take such testimony, and receive such evidence as the
Corporation considers necessary to carry out its
responsibilities and duties.
(6) To obtain grants and funds from and make contracts with
individuals, private companies, organizations, institutions,
and Federal, State, regional, and local agencies, pursuant to
guidelines established by the Director of the Office of
Management and Budget.
(7) To accept, hold, administer, and utilize gifts,
donations, and bequests of property, both real and personal,
for the purposes of aiding or facilitating the work of the
Corporation.
(8) To issue notes or bonds, which shall not be guaranteed
or backed in any manner by the Government of the United States,
to purchasers of such instruments in the private capital
markets.
(9) To incur indebtedness, which shall be the sole
liability of the Corporation and shall not be guaranteed or
backed by the Government of the United States, to carry out the
purposes of this Title.
(10) To spend funds under paragraph (6) in a manner
authorized by the Board, but only for purposes that will
advance or enhance public safety communications consistent with
this subtitle.
(11) To establish reserve accounts with funds that the
Corporation may receive from time to time that exceed the
amounts required by the Corporation to timely pay its debt
service and other obligations.
(12) To expend the funds placed in any reserve accounts
established under paragraph (11) (including interest earned on
any such amounts) in a manner authorized by the Board, but only
for purposes that--
(A) will advance or enhance public safety
communications consistent with this subtitle; or
(B) are otherwise approved by an Act of Congress.
(13) To build, operate and maintain the public safety
interoperable broadband network.
(14) To take such other actions as the Corporation (through
its Board) may from time to time determine necessary,
appropriate, or advisable to accomplish the purposes of this
subtitle.
(b) Duty and Responsibility To Deploy and Operate a Nationwide
Public Safety Interoperable Broadband Network.--
(1) In general.--The Corporation shall hold the single
public safety wireless license granted under section 281 and
take all actions necessary to ensure the building, deployment,
and operation of a secure and resilient nationwide public
safety interoperable broadband network in consultation with
Federal, State, tribal, and local public safety entities, the
Director of NIST, the Commission, and the public safety
advisory committee established in section 284(b)(1), including
by--
(A) ensuring nationwide standards including
encryption requirements for use and access of the
network;
(B) issuing open, transparent, and competitive
requests for proposals to private sector entities for
the purposes of building, operating, and maintaining
the network;
(C) managing and overseeing the implementation and
execution of contracts or agreements with non-Federal
entities to build, operate, and maintain the network;
and
(D) establishing policies regarding Federal and
public safety support use.
(2) Interoperability, security and standards.--In carrying
out the duties and responsibilities of this subsection,
including issuing requests for proposals, the Corporation
shall--
(A) ensure the safety, security, and resiliency of
the network, including requirements for protecting and
monitoring the network to protect against cyber
intrusions or cyberattack;
(B) be informed of and manage supply chain risks to
the network, including requirements to provide insight
into the suppliers and supply chains for critical
network components and to implement risk management
best practice in network design, contracting,
operations and maintenance;
(C) promote competition in the equipment market,
including devices for public safety communications, by
requiring that equipment and devices for use on the
network be--
(i) built to open, non-proprietary,
commercially available standards;
(ii) capable of being used across the
nationwide public safety broadband network
operating in the 700 MHz band;
(iii) be able to be interchangeable with
other vendors' equipment; and
(iv) backward-compatible with existing
second and third generation commercial networks
to the extent that such capabilities are
necessary and technically and economically
reasonable; and
(D) promote integration of the network with public
safety answering points or their equivalent.
(3) Rural coverage.--In carrying out the duties and
responsibilities of this subsection, including issuing requests
for proposals, the Corporation, consistent with the license
granted under section 281, shall require deployment phases with
substantial rural coverage milestones as part of each phase of
the construction and deployment of the network.
(4) Execution of authority.--In carrying out the duties and
responsibilities of this subsection, the Corporation may--
(A) obtain grants from and make contracts with
individuals, private companies, and Federal, State,
regional, and local agencies;
(B) hire or accept voluntary services of
consultants, experts, advisory boards, and panels to
aid the Corporation in carrying out such duties and
responsibilities;
(C) receive payment for use of--
(i) network capacity licensed to the
Corporation; and
(ii) network infrastructure constructed,
owned, or operated by the Corporation; and
(D) take such other actions as may be necessary to
accomplish the purposes set forth in this subsection.
(c) Other Specific Duties and Responsibilities.--
(1) Establishment of network policies.--In carrying out the
requirements under subsection (b), the Corporation shall take
such actions as may be necessary, including the development of
requests for proposals--
(A) request for proposals should include--
(i) build timetables, including by taking
into consideration the time needed to build out
to rural areas;
(ii) coverage areas, including coverage in
rural and nonurban areas;
(iii) service levels;
(iv) performance criteria; and
(v) other similar matters for the
construction and deployment of such network;
(B) the technical, operational and security
requirements of the network and, as appropriate,
network suppliers;
(C) practices, procedures, and standards for the
management and operation of such network;
(D) terms of service for the use of such network,
including billing practices; and
(E) ongoing compliance review and monitoring of
the--
(i) management and operation of such
network;
(ii) practices and procedures of the
entities operating on and the personnel using
such network; and
(iii) training needs of entities operating
on and personnel using such network.
(2) State and local planning.--
(A) Required consultation.--In developing requests
for proposal and otherwise carrying out its
responsibilities under this subtitle, the Corporation
shall consult with regional, State, tribal, and local
jurisdictions regarding the distribution and
expenditure of any amounts required to carry out the
policies established under paragraph (1), including
with regard to the--
(i) construction of an Evolved Packet Core
or Cores and any Radio Access Network build
out;
(ii) placement of towers;
(iii) coverage areas of the network,
whether at the regional, State, tribal, or
local level;
(iv) adequacy of hardening, security,
reliability, and resiliency requirements;
(v) assignment of priority to local users;
(vi) assignment of priority and selection
of entities seeking access to or use of the
nationwide public safety interoperable
broadband network established under subsection
(b); and
(vii) training needs of local users.
(B) Method of consultation.--The consultation
required under subparagraph (A) shall occur between the
Corporation and the single officer or governmental body
designated under section 294(d).
(3) Leveraging existing infrastructure.--In carrying out
the requirement under subsection (b), the Corporation shall
enter into agreements to utilize, to the maximum economically
desirable, existing--
(A) commercial or other communications
infrastructure; and
(B) Federal, State, tribal, or local
infrastructure.
(4) Maintenance and upgrades.--The Corporation shall ensure
through the maintenance, operation, and improvement of the
nationwide public safety interoperable broadband network
established under subsection (b), including by ensuring that
the Corporation updates and revises any policies established
under paragraph (1) to take into account new and evolving
technologies and security concerns.
(5) Roaming agreements.--The Corporation shall negotiate
and enter into, as it determines appropriate, roaming
agreements with commercial network providers to allow the
nationwide public safety interoperable broadband users to roam
onto commercial networks and gain prioritization of public
safety communications over such networks in times of an
emergency.
(6) Network infrastructure and device criteria.--The
Director of NIST, in consultation with the Corporation and the
Commission, shall ensure the development of a list of certified
devices and components meeting appropriate protocols,
encryption requirements, and standards for public safety
entities and commercial vendors to adhere to, if such entities
or vendors seek to have access to, use of, or compatibility
with the nationwide public safety interoperable broadband
network established under subsection (b).
(7) Representation before standard setting entities.--The
Corporation, in consultation with the Director of NIST, the
Commission, and the public safety advisory committee
established under section 284(b)(1), shall represent the
interests of public safety users of the nationwide public
safety interoperable broadband network established under
subsection (b) before any proceeding, negotiation, or other
matter in which a standards organization, standards body,
standards development organization, or any other recognized
standards-setting entity regarding the development of standards
relating to interoperability.
(8) Prohibition on negotiation with foreign governments.--
Except as authorized by the President, the Corporation shall
not have the authority to negotiate or enter into any
agreements with a foreign government on behalf of the United
States.
(d) Use of Mails.--The Corporation may use the United States mails
in the same manner and under the same conditions as the departments and
agencies of the United States.
SEC. 289. INITIAL FUNDING FOR CORPORATION.
(a) NTIA Provision of Initial Funding to the Corporation.--
(1) In general.--Prior to the commencement of incentive
auctions to be carried out under section 309(j)(8)(F) of the
Communications Act of 1934 or the auction of spectrum pursuant
to section 273 of this subtitle, the NTIA is hereby
appropriated $50,000,000 for reasonable administrative expenses
and other costs associated with the establishment of the
Corporation, and that may be transferred as needed to the
Corporation for expenses before the commencement of incentive
auction: Provided, That funding shall expire on September 30,
2014.
(2) Condition of funding.--At the time of application for,
and as a condition to, any such funding, the Corporation shall
file with the NTIA a statement with respect to the anticipated
use of the proceeds of this funding.
(3) NTIA approval.--If the NTIA determines that such
funding is necessary for the Corporation to carry out its
duties and responsibilities under this title and that
Corporation has submitted a plan, then the NTIA shall notify
the appropriate committees of Congress 30 days before each
transfer of funds takes place.
SEC. 290. PERMANENT SELF-FUNDING; DUTY TO ASSESS AND COLLECT FEES FOR
NETWORK USE.
(a) In General.--The Corporation shall have the authority to assess
and collect the following fees:
(1) Network user fee.--A user or subscription fee from each
entity, including any public safety entity or secondary user,
that seeks access to or use of the nationwide public safety
interoperable broadband network established under this title.
(2) Lease fees related to network capacity.--
(A) In general.--A fee from any non-Federal entity
that seeks to enter into a covered leasing agreement.
(B) Covered leasing agreement.--For purposes of
subparagraph (A), a ``covered leasing agreement'' means
a written agreement between the Corporation and
secondary user to permit--
(i) access to network capacity on a
secondary basis for non-public safety services;
and
(ii) the spectrum allocated to such entity
to be used for commercial transmissions along
the dark fiber of the long-haul network of such
entity.
(3) Lease fees related to network equipment and
infrastructure.--A fee from any non-Federal entity that seeks
access to or use of any equipment or infrastructure, including
antennas or towers, constructed or otherwise owned by the
Corporation.
(b) Establishment of Fee Amounts; Permanent Self-Funding.--The
total amount of the fees assessed for each fiscal year pursuant to this
section shall be sufficient, and shall not exceed the amount necessary,
to recoup the total expenses of the Corporation in carrying out its
duties and responsibilities described under this title for the fiscal
year involved.
(c) Required Reinvestment of Funds.--The Corporation shall reinvest
amounts received from the assessment of fees under this section in the
nationwide public safety interoperable broadband network by using such
funds only for constructing, maintaining, managing or improving the
network.
SEC. 291. AUDIT AND REPORT.
(a) Audit.--
(1) In general.--The financial transactions of the
Corporation for any fiscal year during which Federal funds are
available to finance any portion of its operations shall be
audited by the Comptroller General of the United States in
accordance with the principles and procedures applicable to
commercial corporate transactions and under such rules and
regulations as may be prescribed by the Comptroller General.
(2) Location.--Any audit conducted under paragraph (1)
shall be conducted at the place or places where accounts of the
Corporation are normally kept.
(3) Access to corporation books and documents.--
(A) In general.--For purposes of an audit conducted
under paragraph (1), the representatives of the
Comptroller General shall--
(i) have access to all books, accounts,
records, reports, files, and all other papers,
things, or property belonging to or in use by
the Corporation that pertain to the financial
transactions of the Corporation and are
necessary to facilitate the audit; and
(ii) be afforded full facilities for
verifying transactions with the balances or
securities held by depositories, fiscal agents,
and custodians.
(B) Requirement.--All books, accounts, records,
reports, files, papers, and property of the Corporation
shall remain in the possession and custody of the
Corporation.
(b) Report.--
(1) In general.--The Comptroller General of the United
States shall submit a report of each audit conducted under
subsection (a) to--
(A) the appropriate committees of Congress;
(B) the President; and
(C) the Corporation.
(2) Contents.--Each report submitted under paragraph (1)
shall contain--
(A) such comments and information as the
Comptroller General determines necessary to inform
Congress of the financial operations and condition of
the Corporation;
(B) any recommendations of the Comptroller General
relating to the financial operations and condition of
the Corporation; and
(C) a description of any program, expenditure, or
other financial transaction or undertaking of the
Corporation that was observed during the course of the
audit, which, in the opinion of the Comptroller
General, has been carried on or made without the
authority of law.
SEC. 292. ANNUAL REPORT TO CONGRESS.
(a) In General.--Not later than 1 year after the date of enactment
of this subtitle, and each year thereafter, the Corporation shall
submit an annual report covering the preceding fiscal year to the
President and the appropriate committees of Congress.
(b) Required Content.--The report required under subsection (a)
shall include--
(1) a comprehensive and detailed report of the operations,
activities, financial condition, and accomplishments of the
Corporation under this section; and
(2) such recommendations or proposals for legislative or
administrative action as the Corporation deems appropriate.
(c) Availability To Testify.--The directors, officers, employees,
and agents of the Corporation shall be available to testify before the
appropriate committees of the Congress with respect to--
(1) the report required under subsection (a);
(2) the report of any audit made by the Comptroller General
under section 291; or
(3) any other matter which such committees may determine
appropriate.
SEC. 293. PROVISION OF TECHNICAL ASSISTANCE.
The Commission and the Departments of Homeland Security, Justice
and Commerce may provide technical assistance to the Corporation and
may take any action at the request of the Corporation in effectuating
its duties and responsibilities under this title.
SEC. 294. STATE AND LOCAL IMPLEMENTATION.
(a) Establishment of State and Local Implementation Grant
Program.--The Assistant Secretary, in consultation with the
Corporation, shall take such action as is necessary to establish a
grant program to make grants to States to assist State, regional,
tribal, and local jurisdictions to identify, plan, and implement the
most efficient and effective way for such jurisdictions to utilize and
integrate the infrastructure, equipment, and other architecture
associated with the nationwide public safety interoperable broadband
network established in this subtitle to satisfy the wireless
communications and data services needs of that jurisdiction, including
with regards to coverage, siting, identity management for public safety
users and their devices, and other needs.
(b) Matching Requirements; Federal Share.--
(1) In general.--The Federal share of the cost of any
activity carried out using a grant under this section may not
exceed 80 percent of the eligible costs of carrying out that
activity, as determined by the Assistant Secretary, in
consultation with the Corporation.
(2) Waiver.--The Assistant Secretary may waive, in whole or
in part, the requirements of paragraph (1) for good cause shown
if the Assistant Secretary determines that such a waiver is in
the public interest.
(c) Programmatic Requirements.--Not later than 6 months after the
establishment of the bylaws of the Corporation pursuant to section 286
of this subtitle, the Assistant Secretary, in consultation with the
Corporation, shall establish requirements relating to the grant program
to be carried out under this section, including the following:
(1) Defining eligible costs for purposes of subsection
(b)(1).
(2) Determining the scope of eligible activities for grant
funding under this section.
(3) Prioritizing grants for activities that ensure coverage
in rural as well as urban areas.
(d) Certification and Designation of Officer or Governmental
Body.--In carrying out the grant program established under this
section, the Assistant Secretary shall require each State to certify in
its application for grant funds that the State has designated a single
officer or governmental body to serve as the coordinator of
implementation of the grant funds.
SEC. 295. STATE AND LOCAL IMPLEMENTATION FUND.
(a) Establishment.--There is established in the Treasury of the
United States a fund to be known as the ``State and Local
Implementation Fund''.
(b) Purpose.--The Assistant Secretary shall establish and
administer the grant program authorized under section 294 of this
subtitle using funds deposited in the State and Local Implementation
Fund.
(c) Crediting of Receipts.--There shall be deposited into or
credited to the State and Local Implementation Fund--
(1) any amounts specified in section 297; and
(2) any amounts borrowed by the Assistant Secretary under
subsection (d).
(d) Borrowing Authority.--
(1) In general.--The Assistant Secretary may borrow from
the General Fund of the Treasury beginning on October 1, 2011,
such sums as may be necessary, but not to exceed $100,000,000
to implement section 294.
(2) Reimbursement.--The Assistant Secretary shall reimburse
the General Fund of the Treasury, with interest, for any
amounts borrowed under subparagraph (1) as funds are deposited
into the State and Local Implementation Fund.
SEC. 296. PUBLIC SAFETY WIRELESS COMMUNICATIONS RESEARCH AND
DEVELOPMENT.
(a) NIST Directed Research and Development Program.--From amounts
made available from the Public Safety Trust Fund established under
section 297, the Director of NIST, in consultation with the Commission,
the Secretary of Homeland Security, and the National Institute of
Justice of the Department of Justice, as appropriate, shall conduct
research and assist with the development of standards, technologies,
and applications to advance wireless public safety communications.
(b) Required Activities.--In carrying out the requirement under
subsection (a), the Director of NIST, in consultation with the
Corporation and the public safety advisory committee established under
section 286(b)(1), shall--
(1) document public safety wireless communications
technical requirements;
(2) accelerate the development of the capability for
communications between currently deployed public safety
narrowband systems and the nationwide public safety
interoperable broadband network to be established under this
title;
(3) establish a research plan, and direct research, that
addresses the wireless communications needs of public safety
entities beyond what can be provided by the current generation
of broadband technology;
(4) accelerate the development of mission critical voice,
including device-to-device ``talkaround'' standards for
broadband networks, if necessary and practical, public safety
prioritization, authentication capabilities, as well as a
standard application programing interfaces for the nationwide
public safety interoperable broadband network to be established
under this title, if necessary and practical;
(5) seek to develop technologies, standards, processes, and
architectures that provide a significant improvement in network
security, resiliency and trustworthiness; and
(6) convene working groups of relevant government and
commercial parties to achieve the requirements in paragraphs
(1) through (5).
(c) Transfer Authority.--If in the determination of the Director of
NIST another Federal agency is better suited to carry out and oversee
the research and development of any activity to be carried out in
accordance with the requirements of this section, the Director may
transfer any amounts provided under this section to such agency,
including to the National Institute of Justice of the Department of
Justice and the Department of Homeland Security.
SEC. 297. PUBLIC SAFETY TRUST FUND.
(a) Establishment of Public Safety Trust Fund.--
(1) In general.--There is established in the Treasury of
the United States a trust fund to be known as the ``Public
Safety Trust Fund''.
(2) Crediting of receipts.--
(A) In general.--There shall be deposited into or
credited to the Public Safety Trust Fund the proceeds
from the auction of spectrum carried out pursuant to--
(i) section 273 of this subtitle; and
(ii) section 309(j)(8)(F) of the
Communications Act of 1934, as added by section
273 of this subtitle.
(B) Availability.--Amounts deposited into or
credited to the Public Safety Trust Fund in accordance
with subparagraph (A) shall remain available until the
end of fiscal year 2018. Upon the expiration of the
period described in the prior sentence such amounts
shall be deposited in the General Fund of the Treasury,
where such amounts shall be dedicated for the sole
purpose of deficit reduction.
(b) Use of Fund.--Amounts deposited in the Public Safety Trust Fund
shall be used in the following manner:
(1) Payment of auction incentive.--
(A) Required disbursals.--Amounts in the Public
Safety Trust Fund shall be used to make any required
disbursal of payments to licensees required pursuant to
clause (i) and subclause (IV) of clause (ii) of section
309(j)(8)(F) of the Communications Act of 1934.
(B) Notification to congress.--
(i) In general.--At least 3 months in
advance of any incentive auction conducted
pursuant to subparagraph (F) of section
309(j)(8) of the Communications Act of 1934,
the Chairman of the Commission, in consultation
with the Director of the Office of Management
and Budget, shall notify the appropriate
committees of Congress--
(I) of the methodology for
calculating the disbursal of payments
to certain licensees required pursuant
to clause (i) and subclauses (III) and
(IV) of clause of (ii) of such section;
(II) that such methodology
considers the value of the spectrum
voluntarily relinquished in its current
use and the timeliness with which the
licensee cleared its use of such
spectrum; and
(III) of the estimated payments to
be made from the Incentive Auction
Relocation Fund established under
section 309(j)(8)(G) of the
Communications Act of 1934.
(ii) Definition.--In this clause, the term
``appropriate committees of Congress'' means--
(I) the Committee on Commerce,
Science, and Transportation of the
Senate;
(II) the Committee on
Appropriations of the Senate;
(III) the Committee on Energy and
Commerce of the House of
Representatives; and
(IV) the Committee on
Appropriations of the House of
Representatives.
(2) Incentive auction relocation fund.--Not more than
$1,000,000,000 shall be deposited in the Incentive Auction
Relocation Fund established under section 309(j)(8)(G) of the
Communications Act of 1934.
(3) State and local implementation fund.--$200,000,000
shall be deposited in the State and Local Implementation Fund
established under section 294.
(4) Public safety broadband corporation.--$6,450,000,000
shall be deposited with the Public Safety Broadband Corporation
established under section 284, of which pursuant to its
responsibilities and duties set forth under section 288 to
deploy and operate a nationwide public safety interoperable
broadband network. Funds deposited with the Public Safety
Broadband Corporation shall be available after submission of a
five-year budget by the Corporation and approval by the
Secretary of Commerce, in consultation with the Secretary of
Homeland Security, Director of the Office of Management and
Budget and Attorney General of the United States.
(5) Public safety research and development.--After approval
by the Office of Management and Budget of a spend plan
developed by the Director of NIST, a Wireless Innovation (WIN)
Fund of up to $300,000,000 shall be made available for use by
the Director of NIST to carry out the research program
established under section 296 and be available until expended.
If less than $300,000,000 is approved by the Office of
Management and Budget, the remainder shall be transferred to
the Public Safety Broadband Corporation established in section
284 and be available for duties set forth under section 288 to
deploy and operate a nationwide public safety interoperable
broadband network.
(6) Deficit reduction.--Any amounts remaining after the
deduction of the amounts required under paragraphs (1) through
(5) shall be deposited in the General Fund of the Treasury,
where such amounts shall be dedicated for the sole purpose of
deficit reduction.
SEC. 298. FCC REPORT ON EFFICIENT USE OF PUBLIC SAFETY SPECTRUM.
(a) In General.--Not later than 180 days after the date of the
enactment of this subtitle and every 2 years thereafter, the Commission
shall, in consultation with the Assistant Secretary and the Director of
NIST, conduct a study and submit to the appropriate committees of
Congress a report on the spectrum allocated for public safety use.
(b) Contents.--The report required by subsection (a) shall
include--
(1) an examination of how such spectrum is being used;
(2) recommendations on how such spectrum may be used more
efficiently;
(3) an assessment of the feasibility of public safety
entities relocating from other bands to the public safety
broadband spectrum; and
(4) an assessment of whether any spectrum made available by
the relocation described in paragraph (3) could be returned to
the Commission for reassignment through auction, including
through use of incentive auction authority under subparagraph
(G) of section 309(j)(8) of the Communications Act of 1934 (47
U.S.C. 309(j)(8)), as added by section 273(a).
SEC. 299. PUBLIC SAFETY ROAMING AND PRIORITY ACCESS.
The Commission may adopt rules, if necessary in the public
interest, to improve the ability of public safety users to roam onto
commercial networks and to gain priority access to commercial networks
in an emergency if--
(1) the public safety entity equipment is technically
compatible with the commercial network;
(2) the commercial network is reasonably compensated; and
(3) such access does not preempt or otherwise terminate or
degrade all existing voice conversations or data sessions.
TITLE III--ASSISTANCE FOR THE UNEMPLOYED AND PATHWAYS BACK TO WORK
Subtitle A--Supporting Unemployed Workers
SEC. 301. SHORT TITLE.
This subtitle may be cited as the ``Supporting Unemployed Workers
Act of 2011''.
PART I--EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION AND CERTAIN
EXTENDED BENEFITS PROVISIONS, AND ESTABLISHMENT OF SELF-EMPLOYMENT
ASSISTANCE PROGRAM
SEC. 311. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.
(a) In General.--Section 4007 of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), is amended--
(1) by striking ``January 3, 2012'' each place it appears
and inserting ``January 3, 2013'';
(2) in the heading for subsection (b)(2), by striking
``January 3, 2012'' and inserting ``January 3, 2013''; and
(3) in subsection (b)(3), by striking ``June 9, 2012'' and
inserting ``June 8, 2013''.
(b) Funding.--Section 4004(e)(1) of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), is amended--
(1) in subparagraph (F), by striking ``and'' at the end;
and
(2) by inserting after subparagraph (G) the following:
``(H) the amendments made by section 101 of the
Supporting Unemployed Workers Act of 2011; and''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the enactment of the Unemployment Compensation
Extension Act of 2010 (Public Law 111-205).
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 ``January 4, 2012'' each place it appears
and inserting ``January 4, 2013'';
(2) in the heading for subsection (b)(2), by striking
``January 4, 2012'' and inserting ``January 4, 2013''; and
(3) in subsection (c), by striking ``June 11, 2012'' and
inserting ``June 11, 2013''.
(b) Extension of Matching for States With No Waiting Week.--Section
5 of the Unemployment Compensation Extension Act of 2008 (Public Law
110-449; 26 U.S.C. 3304 note) is amended by striking ``June 10, 2012''
and inserting ``June 9, 2013''.
(c) Extension of Modification of Indicators Under the Extended
Benefit Program.--Section 502 of the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010 (Public Law 111-312; 26
U.S.C. 3304 note) is amended--
(1) in subsection (a) by striking ``December 31, 2011'' and
inserting ``December 31, 2012''; and
(2) in subsection (b)(2) by striking ``December 31, 2011''
and inserting ``December 31, 2012''.
(d) Effective Date.--The amendments made by this section shall take
effect as if included in the enactment of the Unemployment Compensation
Extension Act of 2010 (Public Law 111-205).
SEC. 313. REEMPLOYMENT SERVICES AND REEMPLOYMENT AND ELIGIBILITY
ASSESSMENT ACTIVITIES.
(a) In General.--
(1) Provision of services and activities.--Section 4001 of
the Supplemental Appropriations Act, 2008, (Public Law 110-252;
26 U.S.C. 3304 note), is amended by inserting the following new
subsection (h):
``(h) In General.--
``(1) Required provision of services and activities.--An
agreement under this section shall require that the State
provide reemployment services and reemployment and eligibility
assessment activities to each individual receiving emergency
unemployment compensation who, on or after the date that is 30
days after the date of enactment of the Supporting Unemployed
Workers Act of 2011, establishes an account under section
4002(b), commences receiving the amounts described in section
4002(c), commences receiving the amounts described in section
4002(d), or commences receiving the amounts described in
subsection 4002(e), whichever occurs first. Such services and
activities shall be provided by the staff of the State agency
responsible for administration of the State unemployment
compensation law or the Wagner-Peyser Act from funds available
pursuant to section 4004(c)(2) and may also be provided from
funds available under the Wagner-Peyser Act.
``(2) Description of services and activities.--The
reemployment services and in-person reemployment and
eligibility assessment activities provided to individuals
receiving emergency unemployment compensation described in
paragraph (1)--
``(A) shall include--
``(i) the provision of labor market and
career information;
``(ii) an assessment of the skills of the
individual;
``(iii) orientation to the services
available through the One-Stop centers
established under title I of the Workforce
Investment Act of 1998;
``(iv) job search counseling and the
development or review of an individual
reemployment plan that includes participation
in job search activities and appropriate
workshops and may include referrals to
appropriate training services; and
``(v) review of the eligibility of the
individual for emergency unemployment
compensation relating to the job search
activities of the individual; and
``(B) may include the provision of--
``(i) comprehensive and specialized
assessments;
``(ii) individual and group career
counseling; and
``(iii) additional reemployment services.
``(3) Participation requirement.--As a condition of
continuing eligibility for emergency unemployment compensation
for any week, an individual who has been referred to
reemployment services or reemployment and eligibility
assessment activities under this subsection shall participate,
or shall have completed participation in, such services or
activities, unless the State agency responsible for the
administration of State unemployment compensation law
determines that there is justifiable cause for failure to
participate or complete such services or activities, as defined
in guidance to be issued by the Secretary of Labor.''.
(2) Issuance of guidance.--Not later than 30 days after the
date of enactment of this Act, the Secretary shall issue
guidance on the implementation of the reemployment services and
reemployment and eligibility assessments activities required to
be provided under the amendments made by paragraph (1).
(b) Funding.--
(1) In general.--Section 4004(c) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note), is amended--
(A) by striking ``There'' and inserting ``(1)
Administration.--There''; and
(B) by inserting the following new paragraph:
``(2) Reemployment services and reemployment and
eligibility assessment activities.--
``(A) Appropriation.--There are appropriated from
the general fund of the Treasury, without fiscal year
limitation, out of the employment security
administration account as established by section 901(a)
of the Social Security Act, such sums as determined by
the Secretary of Labor in accordance with subparagraph
(B) to assist States in providing reemployment services
and reemployment and eligibility assessment activities
described in section 4001(h)(2).
``(B) Determination of total amount.--The amount
referred to in subparagraph (A) is the amount the
Secretary estimates is equal to--
``(i) the number of individuals who will
receive reemployment services and reemployment
eligibility and assessment activities described
in section 4001(h)(2) in all States through the
date specified in section 4007(b)(3),
multiplied by
``(ii) $200.
``(C) Distribution among states.--Of the amounts
appropriated under subparagraph (A), the Secretary of
Labor shall distribute amounts to each State, in
accordance with section 4003(c), that the Secretary
estimates is equal to--
``(i) the number of individuals who will
receive reemployment services and reemployment
and eligibility assessment activities described
in section 4001(h)(2) in such State through the
date specified in section 4007(b)(3),
multiplied by
``(ii) $200.''.
(2) Transfer of funds.--Section 4004(e) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note), is amended--
(A) in paragraph (2), by striking the period and
inserting ``; and''; and
(B) by inserting the following paragraph (3):
``(3) to the Employment Ssecurity Administration account
(as established by section 901(a) of the Social Security Act)
such sums as the Secretary of Labor determines to be necessary
in accordance with subsection (c)(2) to assist States in
providing reemployment services and reemployment eligibility
and assessment activities described in section 4001(h)(2).''.
SEC. 314. FEDERAL-STATE AGREEMENTS TO ADMINISTER A SELF-EMPLOYMENT
ASSISTANCE PROGRAM.
Section 4001 of the Supplemental Appropriations Act, 2008 (Public
Law 110-252; 26 U.S.C. 3304 note), as amended by section 313, is
further amended by inserting a new subsection (i) as follows:
``(i) Authority To Conduct Self-Employment Assistance Program.--
``(1) In general.--
``(A) Establishment.--Any agreement under
subsection (a) may provide that the State agency of the
State shall establish a self-employment assistance
program described in paragraph (2), to provide for the
payment of emergency unemployment compensation as self-
employment assistance allowances to individuals who
meet the eligibility criteria specified in subsection
(b).
``(B) Payment of allowances.--The self-employment
assistance allowance described in subparagraph (A)
shall be paid for up to 26 weeks to an eligible
individual from such individual's emergency
unemployment compensation account described in section
4002, and the amount in such account shall be reduced
accordingly.
``(2) Definition of `self-employment assistance program'.--
For the purposes of this title, the term `self-employment
assistance program' means a program as defined under section
3306(t) of the Internal Revenue Code of 1986 (26 U.S.C.
3306(t)), except as follows:
``(A) all references to `regular unemployment
compensation under the State law' shall be deemed to
refer instead to `emergency unemployment compensation
under title IV of the Supplemental Appropriations Act,
2008 (Public Law 110-252; 26 U.S.C. 3304 note)';
``(B) paragraph (3)(B) shall not apply;
``(C) clause (i) of paragraph (3)(C) shall be
deemed to state as follows:
```(i) include any entrepreneurial training
that the State may provide in coordination with
programs of training offered by the Small
Business Administration, which may include
business counseling, mentorship for
participants, access to small business
development resources, and technical
assistance; and';
``(D) the reference to `5 percent' in paragraph (4)
shall be deemed to refer instead to `1 percent'; and
``(E) paragraph (5) shall not apply.
``(3) Availability of self-employment assistance
allowances.--In the case of an individual who has received any
emergency unemployment compensation payment under this title,
such individual shall not receive self-employment assistance
allowances under this subsection unless the State agency has a
reasonable expectation that such individual will be entitled to
at least 26 times the individual's average weekly benefit
amount of emergency unemployment compensation.
``(4) Participant option to terminate participation in
self-employment assistance program.--
``(A) Termination.--An individual who is
participating in a State's self-employment assistance
program may opt to discontinue participation in such
program.
``(B) Continued eligibility for emergency
unemployment compensation.--An individual whose
participation in the self-employment assistance program
is terminated as described in paragraph (1) or who has
completed participation in such program, and who
continues to meet the eligibility requirements for
emergency unemployment compensation under this title,
shall receive emergency unemployment 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) or to the extent that such individual commences
receiving the amounts described in subsections (c),
(d), or (e) of such section, respectively.''.
SEC. 315. CONFORMING AMENDMENT ON PAYMENT OF BRIDGE TO WORK WAGES.
Section 4001 of the Supplemental Appropriations Act, 2008 (Public
Law 110-252; 26 U.S.C. 3304 note), as amended by section 103, is
further amended by inserting a new subsection (j) as follows:
``(j) Authorization To Pay Wages for Purposes of a Bridge to Work
Program.--Any State that establishes a Bridge to Work program under
section 204 of the Supporting Unemployed Workers Act of 2011 is
authorized to deduct from an emergency unemployment compensation
account established for such individual under section 4002 such sums as
may be necessary to pay wages for such individual as authorized under
section 204(b)(1) of such Act.''.
SEC. 316. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD
UNEMPLOYMENT INSURANCE ACT.
(a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad
Unemployment Insurance Act, as added by section 2006 of the American
Recovery and Reinvestment Act of 2009 (Public Law 111-5) and as amended
by section 9 of the Worker, Homeownership, and Business Assistance Act
of 2009 (Public Law 111-92), is amended--
(1) by striking ``June 30, 2011'' and inserting ``June 30,
2012''; and
(2) by striking ``December 31, 2011'' and inserting
``December 31, 2012''.
(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 shall be
available to cover the cost of additional 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 effect on the
day before the date of the enactment of this Act.
PART II--REEMPLOYMENT NOW PROGRAM
SEC. 321. ESTABLISHMENT OF REEMPLOYMENT NOW PROGRAM.
(a) In General.--There is hereby established the Reemployment NOW
program to be carried out by the Secretary of Labor in accordance with
this part in order to facilitate the reemployment of individuals who
are receiving 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'').
(b) Authorization and Appropriation.--There are authorized to be
appropriated and appropriated from the general fund of the Treasury for
fiscal year 2012 $4,000,000,000 to carry out the Reemployment NOW
program under this part.
SEC. 322. DISTRIBUTION OF FUNDS.
(a) In General.--Of the funds appropriated under section 321(b) to
carry out this part, the Secretary of Labor shall--
(1) reserve up to 1 percent for the costs of Federal
administration and for carrying out rigorous evaluations of the
activities conducted under this part; and
(2) allot the remainder of the funds not reserved 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 subsection (a)(2) as follows:
(A) two-thirds of such funds shall be allotted on
the basis of the relative number of unemployed
individuals in each State, compared to the total number
of unemployed individuals in all States; and
(B) one-third of such funds shall be allotted on
the basis of the relative number of individuals in each
State who have been unemployed 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 specified 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 allotments 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 accordance with procedures and
criteria established by the Secretary, recapture the portion of
the State allotment 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 recaptured 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 reobligation not later than December
31, 2012.
SEC. 323. STATE PLAN.
(a) In General.--For a State to be eligible to receive 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 eligible 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 allocate to the activities, respectively;
(2) a description of the performance outcomes to be
achieved by the State through the activities carried out under
this part, including the employment outcomes to be achieved by
participants and the processes the State will use to track
performance, consistent with guidance provided by the Secretary
of Labor regarding such outcomes and processes;
(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 activities
described in the plan and the number of EUC claimants expected
to be enrolled in such activities 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 appropriate
reemployment services, including counseling, to any EUC
claimant who participates in any of the programs authorized
under this part; and
(7) assurances that the State will report such information
as the Secretary may require relating to fiscal, performance
and other matters, including employment 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 Secretary
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 adequate 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.
(b) Description of Program.--In order to increase individuals'
opportunities to move to permanent employment, a State may establish a
Bridge to Work program 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 Supplemental Appropriations Act,
2008 (Public Law 110-252; 26 U.S.C. 3304 note), as wages for
work performed, and as specified in subsection (c);
(2) shall be paid the additional amount described 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 Requirements.--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 note), and who choose to participate in the program
described in subsection (b), shall receive such payments as
wages for work performed during their voluntary 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 individual as described in section 4002 of the
Supplemental 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 individuals who
participate for at least 25 hours per week in the
program described in subsection (b) for the duration of
such individual's participation in the program;
(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 subsection
(b); and
(ii) any wages, in addition to those
described under subsection (b), whether paid by
a State or a participating employer for the
same work activities;
(C) State prohibitions or limitations applied under
such Act relating to employment status shall not apply
to such individuals who participate in the program
described in subsection (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
employment is expected to commence or commences at the
conclusion of the duration specified in paragraph
(4)(A);
(4) the program shall be structured so that individuals
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 participating
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 appropriate 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 guidance by the Secretary of Labor, except that
an employer shall not be certified as eligible for
participation in the program described under subsection (b)--
(A) if such employer--
(i) is a Federal, State, or local
government entity;
(ii) would engage an eligible individual in
work activities under any employer's grant,
contract, or subcontract with a Federal, State,
or local government entity, except with regard
to work activities under any employer's supply
contract or subcontract;
(iii) is delinquent with respect to any
taxes or employer contributions described under
sections 3301 and 3303(a)(1) of the Internal
Revenue Code of 1986 or with respect to any
related reporting requirements;
(iv) is engaged in the business of
supplying workers to other employers and would
participate in the program for the purpose of
supplying individuals participating 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 subsections (h), (i),
or (j), or by any other requirements that the
Secretary may establish for employers under
subsection (c)(6); and
(B) unless such employer provides assurances 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
identified by eligible individuals seeking to
participate in the program;
(iii) ensure that reemployment and
counseling services are available for program
participants, including services describing 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;
(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 insurance
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
ensure workers' compensation or equivalent
coverage for all individuals who participate in
the program;
(ii) to pay compensation to a participating
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 dependent
care, that would enable individuals to
participate in the program;
(iv) for the administration and oversight
of the program; and
(v) to fulfill additional program
requirements included in the approved State
plan.
(e) Payment of Augmented Wages if Necessary.--In the event that the
wages described in subsection (c)(1) are not sufficient to equal or
exceed the minimum 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 determining 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.--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 participation).
(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 position;
(B) the employer has terminated the employment of
any employee or otherwise reduced the workforce of the
employer with the intention of filling or partially
filling the vacancy 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 employment; 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 activities 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
collective 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 employer has not made an offer of
suitable long-term employment 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 additional conditions on
participating employers to ensure that 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 participating employer under this section has violated a
requirement of this section, the State shall bar such employer from
further participation in the program. The State shall establish a
process whereby an individual described in subsection (c)(1), or any
other affected individual or entity, may file a complaint with the
State relating to a violation of any requirement or prohibition under
this section.
(l) Participant Option To Terminate Participation in Bridge to Work
Program.--
(1) Termination.--An individual who is participating in a
program described in subsection (b) may opt to discontinue
participation in such program.
(2) Continued eligibility for emergency unemployment
compensation.--An individual who opts to discontinue
participation in such program, is terminated from such program
by a participating employer, or who has completed participation
in such program, and who continues to meet the eligibility
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
unemployment 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
receiving 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 individual 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 treated as payments of
unemployment insurance for purposes of section 209 of the Social
Security Act (42 U.S.C. 409) and for purposes of subtitle A and
sections 3101 and 3111 of the Internal Revenue Code of 1986.
SEC. 325. WAGE INSURANCE.
(a) In General.--A State may use the funds allotted to the State
under this part to provide a wage insurance program for EUC claimants.
(b) Benefits.--The wage insurance program provided 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 reemployment.
(c) Individual Eligibility.--The benefits described 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 for purposes of payments described in
subsection (b) during 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 reemployment services to EUC claimants.
In addition to the provision of services to such claimants, the program
may include the provision of reemployment services 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).
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 reemployment services
described in subsection (a) may include services 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 reemployment needs of EUC claimants and
individuals described 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 reemployment services have
previously been provided by the State; and
(5) services that are designed to enhance communication
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 activities, which use a strategy that
is different from the reemployment strategies described in sections
324-327 and which are designed to facilitate the reemployment of EUC
claimants. In addition to the provision of activities to such
claimants, the program may include the provision of activities 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), either as
a benefit paid to such claimant or individual or as a service
provided to such claimant or individual;
(2) shall not result in a reduction in the duration or
amount of, emergency unemployment compensation for which EUC
claimants would otherwise be eligible;
(3) shall not include a reduction in the duration, amount
of or eligibility for regular compensation 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 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 job;
(B) the employer has terminated the employment of
any regular employee or otherwise reduced the workforce
of the employer with the intention of filling or
partially filling the vacancy 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 employment; 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);
(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 guidance, without
regard to the requirements of section 553 of title 5, United States
Code, such additional requirements, including requirements regarding
the allotment, recapture, and reallotment of funds, and reporting
requirements, as the Secretary determines to be necessary to ensure
fiscal integrity, effective monitoring, and appropriate and prompt
implementation of the activities under this Act.
SEC. 330. REPORT OF INFORMATION AND EVALUATIONS TO CONGRESS AND THE
PUBLIC.
The Secretary of Labor shall provide to the appropriate Committees
of the Congress and make available to the public the information
reported pursuant to section 329 and the evaluations of activities
carried out pursuant to the funds reserved under section 322(a)(1).
SEC. 331. STATE.
For purposes of this part, the term ``State'' has the meaning given
that term in section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).
PART III--SHORT-TIME COMPENSATION PROGRAM
SEC. 341. TREATMENT OF SHORT-TIME COMPENSATION PROGRAMS.
(a) Definition.--
(1) In general.--Section 3306 of the Internal Revenue Code
of 1986 (26 U.S.C. 3306) is amended by adding at the end the
following new subsection:
``(v) Short-Time Compensation Program.--For purposes of this
chapter, the term `short-time compensation program' means a program
under which--
``(1) the participation of an employer is voluntary;
``(2) an employer reduces the number of hours worked by
employees in lieu of layoffs;
``(3) such employees whose workweeks have been reduced by
at least 10 percent, and by not more than the percentage, if
any, that is determined by the State to be appropriate (but in
no case more than 60 percent), are eligible for unemployment
compensation;
``(4) the amount of unemployment compensation payable to
any such employee is a pro rata portion of the unemployment
compensation which would otherwise be payable to the employee
if such employee were totally unemployed from the participating
employer;
``(5) such employees meet the availability for work and
work search test requirements while collecting short-time
compensation benefits, by being available for their workweek as
required by their participation in the short-time compensation
program;
``(6) eligible employees may participate, as appropriate,
in training (including employer-sponsored training or worker
training funded under the Workforce Investment Act of 1998) to
enhance job skills if such program has been approved by the
State agency;
``(7) the State agency shall require employers to certify
that if the employer provides health benefits and retirement
benefits under a defined benefit plan (as defined in section
414(j)) or contributions under a defined contribution plan (as
defined in section 414(i)) to any employee whose workweek is
reduced under the program that such benefits will continue to
be provided to employees participating in the short-time
compensation program under the same terms and conditions as
though the workweek of such employee had not been reduced or to
the same extent as other employees not participating in the
short-time compensation program, subject to other requirements
in this section;
``(8) the State agency shall require an employer to submit
a written plan describing the manner in which the requirements
of this subsection will be implemented (including a plan for
giving advance notice, where feasible, to an employee whose
workweek is to be reduced) together with an estimate of the
number of layoffs that would have occurred absent the ability
to participate in short-time compensation and such other
information as the Secretary of Labor determines is
appropriate;
``(9) in the case of employees represented by a union as
the sole and exclusive representative, the appropriate official
of the union has agreed to the terms of the employer's written
plan and implementation is consistent with employer obligations
under the applicable Federal laws; and
``(10) upon request by the State and approval by the
Secretary of Labor, only such other provisions are included in
the State law that are determined to be appropriate for
purposes of a short-time compensation program.''.
(2) Effective date.--Subject to paragraph (3), the
amendment made by paragraph (1) shall take effect on the date
of the enactment of this Act.
(3) Transition period for existing programs.--In the case
of a State that is administering a short-time compensation
program as of the date of the enactment of this Act and the
State law cannot be administered consistent with the amendment
made by paragraph (1), such amendment shall take effect on the
earlier of--
(A) the date the State changes its State law in
order to be consistent with such amendment; or
(B) the date that is 2 years and 6 months after the
date of the enactment of this Act.
(b) Conforming Amendments.--
(1) Internal revenue code of 1986.--
(A) Subparagraph (E) of section 3304(a)(4) of the
Internal Revenue Code of 1986 is amended to read as
follows:
``(E) amounts may be withdrawn for the payment of
short-time compensation under a short-time compensation
program (as defined under section 3306(v));''.
(B) Subsection (f) of section 3306 of the Internal
Revenue Code of 1986 is amended--
(i) by striking paragraph (5) (relating to
short-time compensation) and inserting the
following new paragraph:
``(5) amounts may be withdrawn for the payment of short-
time compensation under a short-time compensation program (as
defined in subsection (v)); and''; and
(ii) by redesignating paragraph (5)
(relating to self-employment assistance
program) as paragraph (6).
(2) Social security act.--Section 303(a)(5) of the Social
Security Act is amended by striking ``the payment of short-time
compensation under a plan approved by the Secretary of Labor''
and inserting ``the payment of short-time compensation under a
short-time compensation program (as defined in section 3306(v)
of the Internal Revenue Code of 1986)''.
(3) Unemployment compensation amendments of 1992.--
Subsections (b) through (d) of section 401 of the Unemployment
Compensation Amendments of 1992 (26 U.S.C. 3304 note) are
repealed.
SEC. 342. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION PAYMENTS IN
STATES WITH PROGRAMS IN LAW.
(a) Payments to States.--
(1) In general.--Subject to paragraph (3), there shall be
paid to a State an amount equal to 100 percent of the amount of
short-time compensation paid under a short-time compensation
program (as defined in section 3306(v) of the Internal Revenue
Code of 1986, as added by section 341(a)) under the provisions
of the State law.
(2) Terms of payments.--Payments made to a State under
paragraph (1) shall be payable by way of reimbursement in such
amounts as the Secretary estimates the State will be entitled
to receive under this section for each calendar month, reduced
or increased, as the case may be, by any amount by which the
Secretary finds that the Secretary's estimates for any prior
calendar month were greater or less than the amounts which
should have been paid to the State. Such estimates may be made
on the basis of such statistical, sampling, or other method as
may be agreed upon by the Secretary and the State agency of the
State involved.
(3) Limitations on payments.--
(A) General payment limitations.--No payments shall
be made to a State under this section for short-time
compensation paid to an individual by the State during
a benefit year in excess of 26 times the amount of
regular compensation (including dependents' allowances)
under the State law payable to such individual for a
week of total unemployment.
(B) Employer limitations.--No payments shall be
made to a State under this section for benefits paid to
an individual by the State under a short-time
compensation program if such individual is employed by
the participating employer on a seasonal, temporary, or
intermittent basis.
(b) Applicability.--
(1) In general.--Payments to a State under subsection (a)
shall be available for weeks of unemployment--
(A) beginning on or after the date of the enactment
of this Act; and
(B) ending on or before the date that is 3 years
and 6 months after the date of the enactment of this
Act.
(2) Three-year funding limitation for combined payments
under this section and section 343.--States may receive
payments under this section and section 343 with respect to a
total of not more than 156 weeks.
(c) Two-Year Transition Period for Existing Programs.--During any
period that the transition provision under section 341(a)(3) is
applicable to a State with respect to a short-time compensation
program, such State shall be eligible for payments under this section.
Subject to paragraphs (1)(B) and (2) of subsection (b), if at any point
after the date of the enactment of this Act the State enacts a State
law providing for the payment of short-time compensation under a short-
time compensation program that meets the definition of such a program
under section 3306(v) of the Internal Revenue Code of 1986, as added by
section 341(a), the State shall be eligible for payments under this
section after the effective date of such enactment.
(d) Funding and Certifications.--
(1) Funding.--There are appropriated, out of moneys in the
Treasury not otherwise appropriated, such sums as may be
necessary for purposes of carrying out this section.
(2) Certifications.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums payable to such State under this section.
(e) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(2) State; state agency; state law.--The terms ``State'',
``State agency'', and ``State law'' have the meanings given
those terms in section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 343. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION AGREEMENTS.
(a) Federal-State Agreements.--
(1) In general.--Any State which desires to do so may enter
into, and participate in, an agreement under this section with
the Secretary provided that such State's law does not provide
for the payment of short-time compensation under a short-time
compensation program (as defined in section 3306(v) of the
Internal Revenue Code of 1986, as added by section 341(a)).
(2) Ability to terminate.--Any State which is a party to an
agreement under this section may, upon providing 30 days'
written notice to the Secretary, terminate such agreement.
(b) Provisions of Federal-State Agreement.--
(1) In general.--Any agreement under this section shall
provide that the State agency of the State will make payments
of short-time compensation under a plan approved by the State.
Such plan shall provide that payments are made in accordance
with the requirements under section 3306(v) of the Internal
Revenue Code of 1986, as added by section 341(a).
(2) Limitations on plans.--
(A) General payment limitations.--A short-time
compensation plan approved by a State shall not permit
the payment of short-time compensation to an individual
by the State during a benefit year in excess of 26
times the amount of regular compensation (including
dependents' allowances) under the State law payable to
such individual for a week of total unemployment.
(B) Employer limitations.--A short-time
compensation plan approved by a State shall not provide
payments to an individual if such individual is
employed by the participating employer on a seasonal,
temporary, or intermittent basis.
(3) Employer payment of costs.--Any short-time compensation
plan entered into by an employer must provide that the employer
will pay the State an amount equal to one-half of the amount of
short-time compensation paid under such plan. Such amount shall
be deposited in the State's unemployment fund and shall not be
used for purposes of calculating an employer's contribution
rate under section 3303(a)(1) of the Internal Revenue Code of
1986.
(c) Payments to States.--
(1) In general.--There shall be paid to each State with an
agreement under this section an amount equal to--
(A) one-half of the amount of short-time
compensation paid to individuals by the State pursuant
to such agreement; and
(B) any additional administrative expenses incurred
by the State by reason of such agreement (as determined
by the Secretary).
(2) Terms of payments.--Payments made to a State under
paragraph (1) shall be payable by way of reimbursement in such
amounts as the Secretary estimates the State will be entitled
to receive under this section for each calendar month, reduced
or increased, as the case may be, by any amount by which the
Secretary finds that the Secretary's estimates for any prior
calendar month were greater or less than the amounts which
should have been paid to the State. Such estimates may be made
on the basis of such statistical, sampling, or other method as
may be agreed upon by the Secretary and the State agency of the
State involved.
(3) Funding.--There are appropriated, out of moneys in the
Treasury not otherwise appropriated, such sums as may be
necessary for purposes of carrying out this section.
(4) Certifications.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums payable to such State under this section.
(d) Applicability.--
(1) In general.--An agreement entered into under this
section shall apply to weeks of unemployment--
(A) beginning on or after the date on which such
agreement is entered into; and
(B) ending on or before the date that is 2 years
and 13 weeks after the date of the enactment of this
Act.
(2) Two-year funding limitation.--States may receive
payments under this section with respect to a total of not more
than 104 weeks.
(e) Special Rule.--If a State has entered into an agreement under
this section and subsequently enacts a State law providing for the
payment of short-time compensation under a short-time compensation
program that meets the definition of such a program under section
3306(v) of the Internal Revenue Code of 1986, as added by section
341(a), the State--
(1) shall not be eligible for payments under this section
for weeks of unemployment beginning after the effective date of
such State law; and
(2) subject to paragraphs (1)(B) and (2) of section 342(b),
shall be eligible to receive payments under section 342 after
the effective date of such State law.
(f) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(2) State; state agency; state law.--The terms ``State'',
``State agency'', and ``State law'' have the meanings given
those terms in section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 344. GRANTS FOR SHORT-TIME COMPENSATION PROGRAMS.
(a) Grants.--
(1) For implementation or improved administration.--The
Secretary shall award grants to States that enact short-time
compensation programs (as defined in subsection (i)(2)) for the
purpose of implementation or improved administration of such
programs.
(2) For promotion and enrollment.--The Secretary shall
award grants to States that are eligible and submit plans for a
grant under paragraph (1) for such States to promote and enroll
employers in short-time compensation programs (as so defined).
(3) Eligibility.--
(A) In general.--The Secretary shall determine
eligibility criteria for the grants under paragraphs
(1) and (2).
(B) Clarification.--A State administering a short-
time compensation program, including a program being
administered by a State that is participating in the
transition under the provisions of sections 341(a)(3)
and 342(c), that does not meet the definition of a
short-time compensation program under section 3306(v)
of the Internal Revenue Code of 1986 (as added by
341(a)), and a State with an agreement under section
343, shall not be eligible to receive a grant under
this section until such time as the State law of the
State provides for payments under a short-time
compensation program that meets such definition and
such law.
(b) Amount of Grants.--
(1) In general.--The maximum amount available for making
grants to a State under paragraphs (1) and (2) shall be equal
to the amount obtained by multiplying $700,000,000 (less the
amount used by the Secretary under subsection (e)) by the same
ratio as would apply under subsection (a)(2)(B) of section 903
of the Social Security Act (42 U.S.C. 1103) for purposes of
determining such State's share of any excess amount (as
described in subsection (a)(1) of such section) that would have
been subject to transfer to State accounts, as of October 1,
2010, under the provisions of subsection (a) of such section.
(2) Amount available for different grants.--Of the maximum
incentive payment determined under paragraph (1) with respect
to a State--
(A) one-third shall be available for a grant under
subsection (a)(1); and
(B) two-thirds shall be available for a grant under
subsection (a)(2).
(c) Grant Application and Disbursal.--
(1) Application.--Any State seeking a grant under paragraph
(1) or (2) of subsection (a) shall submit an application to the
Secretary at such time, in such manner, and complete with such
information as the Secretary may require. In no case may the
Secretary award a grant under this section with respect to an
application that is submitted after December 31, 2014.
(2) Notice.--The Secretary shall, within 30 days after
receiving a complete application, notify the State agency of
the State of the Secretary's findings with respect to the
requirements for a grant under paragraph (1) or (2) (or both)
of subsection (a).
(3) Certification.--If the Secretary finds that the State
law provisions meet the requirements for a grant under
subsection (a), the Secretary shall thereupon make a
certification to that effect to the Secretary of the Treasury,
together with a certification as to the amount of the grant
payment to be transferred to the State account in the
Unemployment Trust Fund (as established in section 904(a) of
the Social Security Act (42 U.S.C. 1104(a))) pursuant to that
finding. The Secretary of the Treasury shall make the
appropriate transfer to the State account within 7 days after
receiving such certification.
(4) Requirement.--No certification of compliance with the
requirements for a grant under paragraph (1) or (2) of
subsection (a) may be made with respect to any State whose--
(A) State law is not otherwise eligible for
certification under section 303 of the Social Security
Act (42 U.S.C. 503) or approvable under section 3304 of
the Internal Revenue Code of 1986; or
(B) short-time compensation program is subject to
discontinuation or is not scheduled to take effect
within 12 months of the certification.
(d) Use of Funds.--The amount of any grant awarded under this
section shall be used for the implementation of short-time compensation
programs and the overall administration of such programs and the
promotion and enrollment efforts associated with such programs, such as
through--
(1) the creation or support of rapid response teams to
advise employers about alternatives to layoffs;
(2) the provision of education or assistance to employers
to enable them to assess the feasibility of participating in
short-time compensation programs; and
(3) the development or enhancement of systems to automate--
(A) the submission and approval of plans; and
(B) the filing and approval of new and ongoing
short-time compensation claims.
(e) Administration.--The Secretary is authorized to use 0.25
percent of the funds available under subsection (g) to provide for
outreach and to share best practices with respect to this section and
short-time compensation programs.
(f) Recoupment.--The Secretary shall establish a process under
which the Secretary shall recoup the amount of any grant awarded under
paragraph (1) or (2) of subsection (a) if the Secretary determines
that, during the 5-year period beginning on the first date that any
such grant is awarded to the State, the State--
(1) terminated the State's short-time compensation program;
or
(2) failed to meet appropriate requirements with respect to
such program (as established by the Secretary).
(g) Funding.--There are appropriated, out of moneys in the Treasury
not otherwise appropriated, to the Secretary, $700,000,000 to carry out
this section, to remain available without fiscal year limitation.
(h) Reporting.--The Secretary may establish reporting requirements
for States receiving a grant under this section in order to provide
oversight of grant funds.
(i) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(2) Short-time compensation program.--The term ``short-time
compensation program'' has the meaning given such term in
section 3306(v) of the Internal Revenue Code of 1986, as added
by section 341(a).
(3) State; state agency; state law.--The terms ``State'',
``State agency'', and ``State law'' have the meanings given
those terms in section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 345. ASSISTANCE AND GUIDANCE IN IMPLEMENTING PROGRAMS.
(a) In General.--In order to assist States in establishing,
qualifying, and implementing short-time compensation programs (as
defined in section 3306(v) of the Internal Revenue Code of 1986, as
added by section 341(a)), the Secretary of Labor (in this section
referred to as the ``Secretary'') shall--
(1) develop model legislative language which may be used by
States in developing and enacting such programs and
periodically review and revise such model legislative language;
(2) provide technical assistance and guidance in
developing, enacting, and implementing such programs;
(3) establish reporting requirements for States, including
reporting on--
(A) the number of estimated averted layoffs;
(B) the number of participating employers and
workers; and
(C) such other items as the Secretary of Labor
determines are appropriate.
(b) Model Language and Guidance.--The model language and guidance
developed under subsection (a) shall allow sufficient flexibility by
States and participating employers while ensuring accountability and
program integrity.
(c) Consultation.--In developing the model legislative language and
guidance under subsection (a), and in order to meet the requirements of
subsection (b), the Secretary shall consult with employers, labor
organizations, State workforce agencies, and other program experts.
SEC. 346. REPORTS.
(a) Report.--
(1) In general.--Not later than 4 years after the date of
the enactment of this Act, the Secretary of Labor shall submit
to Congress and to the President a report or reports on the
implementation of the provisions of this Act.
(2) Requirements.--Any report under paragraph (1) shall at
a minimum include the following:
(A) A description of best practices by States and
employers in the administration, promotion, and use of
short-time compensation programs (as defined in section
3306(v) of the Internal Revenue Code of 1986, as added
by section 341(a)).
(B) An analysis of the significant challenges to
State enactment and implementation of short-time
compensation programs.
(C) A survey of employers in States that have not
enacted a short-time compensation program or entered
into an agreement with the Secretary on a short-time
compensation plan to determine the level of interest
among such employers in participating in short-time
compensation programs.
(b) Funding.--There are appropriated, out of any moneys in the
Treasury not otherwise appropriated, to the Secretary of Labor,
$1,500,000 to carry out this section, to remain available without
fiscal year limitation.
Subtitle B--Long Term Unemployed Hiring Preferences
SEC. 351. LONG TERM UNEMPLOYED WORKERS WORK OPPORTUNITY TAX CREDITS.
(a) In General.--Paragraph (3) of section 51(b) of the Internal
Revenue Code is amended by inserting ``$10,000 per year in the case of
any individual who is a qualified long term unemployed individual by
reason of subsection (d)(11), and'' before ``$12,000 per year''.
(b) Long Term Unemployed Individuals Tax Credits.--Paragraph (d) of
section 51 of the Internal Revenue Code is amended by--
(1) inserting ``(J) qualified long term unemployed
individual'' at the end of paragraph (d)(1);
(2) inserting a new paragraph after paragraph (10) as
follows--
``(11) Qualified long term unemployed individual.--
``(A) In general.--The term `qualified long term
unemployed individual' means any individual who was not
a student for at least 6 months during the 1-year
period ending on the hiring date and is certified by
the designated local agency as having aggregate periods
of unemployment during the 1-year period ending on the
hiring date which equal or exceed 6 months.
``(B) Student.--For purposes of this subsection, a
student is an individual enrolled at least half-time in
a program that leads to a degree, certificate, or other
recognized educational credential for at least 6 months
whether or not consecutive during the 1-year period
ending on the hiring date.''; and
(3) renumbering current paragraphs (11) through (14) as
paragraphs (12) through (15).
(c) Simplified Certification.--Section 51(d) of the Internal
Revenue Code is amended by adding a new paragraph 16 as follows:
``(16) Credit allowed for qualified long term unemployed
individuals.--
``(A) In general.--Any qualified long term
unemployed individual under paragraph (11) will be
treated as certified by the designated local agency as
having aggregate periods of unemployment if--
``(i) the individual is certified by the
designated local agency as being in receipt of
unemployment compensation under State or
Federal law for not less than 6 months during
the 1-year period ending on the hiring date.
``(B) Regulatory authority.--The Secretary in his
discretion may provide alternative methods for
certification.''.
(d) Credit Made Available to Tax-Exempt Employers in Certain
Circumstances.--Section 52(c) of the Internal Revenue Code is amended--
(1) by striking the word ``No'' at the beginning of the
section and replacing it with ``Except as provided in this
subsection, no''; and
(2) the following new paragraphs are inserted at the end of
section 52(c)--
``(1) In general.--In the case of a tax-exempt employer,
there shall be treated as a credit allowable under subpart C
(and not allowable under subpart D) the lesser of--
``(A) the amount of the work opportunity credit
determined under this subpart with respect to such
employer that is related to the hiring of qualified
long term unemployed individuals described in
subsection (d)(11); or
``(B) the amount of the payroll taxes of the
employer during the calendar year in which the taxable
year begins.
``(2) Credit amount.--In calculating tax-exempt employers,
the work opportunity credit shall be determined by substituting
`26 percent' for `40 percent' in section 51(a) and by
substituting `16.25 percent' for `25 percent' in section
51(i)(3)(A).
``(3) Tax-exempt employer.--For purposes of this subtitle,
the term `tax-exempt employer' means an employer that is--
``(A) an organization described in section 501(c)
and exempt from taxation under section 501(a), or
``(B) a public higher education institution (as
defined in section 101 of the Higher Education Act of
1965).
``(4) Payroll taxes.--For purposes of this subsection--
``(A) In general.--The term `payroll taxes' means--
``(i) amounts required to be withheld from
the employees of the tax-exempt employer under
section 3401(a),
``(ii) amounts required to be withheld from
such employees under section 3101, and
``(iii) amounts of the taxes imposed on the
tax-exempt employer under section 3111.''.
(e) Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possessions.--The Secretary of the
Treasury shall pay to each possession of the United
States with a mirror code tax system amounts equal to
the loss to that possession by reason of the
application of this section (other than this
subsection). Such amounts shall be determined by the
Secretary of the Treasury based on information provided
by the government of the respective possession of the
United States.
(B) Other possessions.--The Secretary of the
Treasury shall pay to each possession of the United
States, which does not have a mirror code tax system,
amounts estimated by the Secretary of the Treasury as
being equal to the aggregate credits that would have
been provided by the possession by reason of the
application of this section (other than this
subsection) if a mirror code tax system had been in
effect in such possession. The preceding sentence shall
not apply with respect to any possession of the United
States unless such possession has a plan, which has
been approved by the Secretary of the Treasury, under
which such possession will promptly distribute such
payments.
(2) Coordination with credit allowed against united states
income taxes.--No increase in the credit determined under
section 38(b) of the Internal Revenue Code of 1986 that is
attributable to the credit provided by this section (other than
this subsection (e)) shall be taken into account with respect
to any person--
(A) to whom a credit is allowed against taxes
imposed by the possession of the United States by
reason of this section for such taxable year, or
(B) who is eligible for a payment under a plan
described in paragraph (1)(B) with respect to such
taxable year.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes
of this subsection (e), the term ``possession of the
United States'' includes American Samoa, the
Commonwealth of the Northern Mariana Islands, the
Commonwealth of Puerto Rico, Guam, and the United
States Virgin Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means,
with respect to any possession of the United States,
the income tax system of such possession if the income
tax liability of the residents of such possession under
such system is determined by reference to the income
tax laws of the United States as if such possession
were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, rules
similar to the rules of section 1001(b)(3)(C) of the
American Recovery and Reinvestment Tax Act of 2009
shall apply.
(f) Effective Date.--The amendments made by this section shall
apply to individuals who begin work for the employer after the date of
the enactment of this Act.
Subtitle C--Pathways Back to Work
SEC. 361. SHORT TITLE.
This subtitle may be cited as the ``Pathways Back to Work Act of
2011''.
SEC. 362. ESTABLISHMENT OF PATHWAYS BACK TO WORK FUND.
(a) Establishment.--There is established in the Treasury of the
United States a fund which shall be known as the Pathways Back to Work
Fund (hereafter in this Act referred to as ``the Fund'').
(b) Deposits Into the Fund.--Out of any amounts in the Treasury of
the United States not otherwise appropriated, there are appropriated
$5,000,000,000 for payment to the Fund to be used by the Secretary of
Labor to carry out this Act.
SEC. 363. AVAILABILITY OF FUNDS.
(a) In General.--Of the amounts available to the Fund under section
362(b), the Secretary of Labor shall--
(1) allot $2,000,000,000 in accordance with section 364 to
provide subsidized employment to unemployed, low-income adults;
(2) allot $1,500,000,000 in accordance with section 365 to
provide summer and year-round employment opportunities to low-
income youth;
(3) award $1,500,000,000 in competitive grants in
accordance with section 366 to local entities to carry out
work-based training and other work-related and educational
strategies and activities of demonstrated effectiveness to
unemployed, low-income adults and low-income youth to provide
the skills and assistance needed to obtain employment.
(b) Reservation.--The Secretary of Labor may reserve not more than
1 percent of amounts available to the Fund under each of paragraphs
(1)-(3) of subsection (a) for the costs of technical assistance,
evaluations and Federal administration of this Act.
(c) Period of Availability.--The amounts appropriated under this
Act shall be available for obligation by the Secretary of Labor until
December 31, 2012, and shall be available for expenditure by grantees
and subgrantees until September 30, 2013.
SEC. 364. SUBSIDIZED EMPLOYMENT FOR UNEMPLOYED, LOW-INCOME ADULTS.
(a) In General.--
(1) Allotments.--From the funds available under section
363(a)(1), the Secretary of Labor shall make an allotment under
subsection (b) to each State that has a State plan approved
under subsection (c) and to each outlying area and Native
American grantee under section 166 of the Workforce Investment
Act of 1998 that meets the requirements of this section, for
the purpose of providing subsidized employment opportunities to
unemployed, low-income adults.
(2) Guidance.--Not later than 30 days after the date of
enactment of this Act, the Secretary of Labor, in coordination
with the Secretary of Health and Human Services, shall issue
guidance regarding the implementation of this section. Such
guidance shall, consistent with this section, include
procedures for the submission and approval of State and local
plans and the allotment and allocation of funds, including
reallotment and reallocation of such funds, that promote the
expeditious and effective implementation of the activities
authorized under this section.
(b) State Allotments.--
(1) Reservations for outlying areas and tribes.--Of the
funds described in subsection (a)(1), the Secretary shall
reserve--
(A) not more than one-quarter of one percent to
provide assistance to outlying areas to provide
subsidized employment to low-income adults who are
unemployed; and
(B) 1.5 percent to provide assistance to grantees
of the Native American programs under section 166 of
the Workforce Investment Act of 1998 to provide
subsidized employment to low-income adults who are
unemployed.
(2) States.--After determining the amounts to be reserved
under paragraph (1), the Secretary of Labor shall allot the
remainder of the amounts described in subsection (a)(1) among
the States as follows:
(A) one-third shall be allotted on the basis of the
relative number of unemployed individuals in areas of
substantial unemployment in each State, compared to the
total number of unemployed individuals in areas of
substantial unemployment in all States;
(B) one-third shall be allotted on the basis of the
relative excess number of unemployed individuals in
each State, compared to the total excess number of
unemployed individuals in all States; and
(C) one-third shall be allotted on the basis of the
relative number of disadvantaged adults and youth in
each State, compared to the total number of
disadvantaged adults and youth in all States.
(3) Definitions.--For purposes of the formula described in
paragraph (2)--
(A) Area of substantial unemployment.--The term
``area of substantial unemployment'' means any
contiguous area with a population of at least 10,000
and that has an average rate of unemployment of at
least 6.5 percent for the most recent 12 months, as
determined by the Secretary.
(B) Disadvantaged adults and youth.--The term
``disadvantaged adults and youth'' means an individual
who is age 16 and older (subject to section
132(b)(1)(B)(v)(I) of the Workforce Investment Act of
1998) who received an income, or is a member of a
family that received a total family income, that, in
relation to family size, does not exceed the higher
of--
(i) the poverty line; or
(ii) 70 percent of the lower living
standard income level.
(C) Excess number.--The term ``excess number''
means, used with respect to the excess number of
unemployed individuals within a State, the higher of--
(i) the number that represents the number
of unemployed individuals in excess of 4.5
percent of the civilian labor force in the
State; or
(ii) the number that represents the number
of unemployed individuals in excess of 4.5
percent of the civilian labor force in areas of
substantial unemployment in such State.
(4) Reallotment.--If the Governor of a State does not
submit a State plan by the time specified in subsection (c), 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 paragraph (2) shall be transferred within the
Fund and added to the amounts available for the competitive
grants under section 363(a)(3).
(c) State Plan.--
(1) In general.--For a State to be eligible to receive an
allotment of the funds under subsection (b), the Governor of
the State shall submit to the Secretary of Labor a State plan
in such form and containing such information as the Secretary
may require. At a minimum, such plan shall include--
(A) a description of the strategies and activities
to be carried out by the State, in coordination with
employers in the State, to provide subsidized
employment opportunities to unemployed, low-income
adults, including strategies relating to the level and
duration of subsidies consistent with subsection
(e)(2);
(B) a description of the requirements the State
will apply relating to the eligibility of unemployed,
low-income adults, consistent with section 368(6), for
subsidized employment opportunities, which may include
criteria to target assistance to particular categories
of such adults, such as individuals with disabilities
or individuals who have exhausted all rights to
unemployment compensation;
(C) a description of how the funds allotted to
provide subsidized employment opportunities will be
administered in the State and local areas, in
accordance with subsection (d);
(D) a description of the performance outcomes to be
achieved by the State through the activities carried
out under this section and the processes the State will
use to track performance, consistent with guidance
provided by the Secretary of Labor regarding such
outcomes and processes and with section 367(b);
(E) a description of the coordination of activities
to be carried out with the funds provided under this
section with activities under title I of the Workforce
Investment Act of 1998, the TANF program under part A
of title IV of the Social Security Act, and other
appropriate Federal and State programs that may assist
unemployed, low-income adults in obtaining and
retaining employment;
(F) a description of the timelines for
implementation of the activities described in
subparagraph (A), and the number of unemployed, low-
income adults expected to be placed in subsidized
employment by quarter;
(G) assurances that the State will report such
information as the Secretary of Labor may require
relating to fiscal, performance and other matters that
the Secretary determines is necessary to effectively
monitor the activities carried out under this section;
and
(H) assurances that the State will ensure
compliance with the labor standards and protections
described in section 367(a) of this Act.
(2) Submission and approval of state plan.--
(A) Submission with other plans.--The State plan
described in this subsection may be submitted in
conjunction with the State plan modification or request
for funds required under section 365, and may be
submitted as a modification to a State plan that has
been approved under section 112 of the Workforce
Investment Act of 1998.
(B) Submission and approval.--
(i) Submission.--The Governor shall submit
a plan to the Secretary of Labor not later than
75 days after the enactment of this Act and the
Secretary of Labor shall make a determination
regarding the approval or disapproval of such
plans not later than 45 days after the
submission of such plan. If the plan is
disapproved, the Secretary of Labor may provide
a reasonable period of time in which a
disapproved plan may be amended and resubmitted
for approval.
(ii) Approval.--The Secretary of Labor
shall approve a State plan that the Secretary
determines is consistent with requirements of
this section and reasonably appropriate and
adequate to carry out the purposes of this
section. If the plan is approved, the Secretary
shall allot funds to States within 30 days
after such approval.
(3) Modifications to state plan.--The Governor may submit a
modification to a State plan under this subsection consistent
with the requirements of this section.
(d) Administration Within the State.--
(1) Option.--The State may administer the funds for
activities under this section through--
(A) the State and local entities responsible for
the administration of the adult formula program under
title I-B of the Workforce Investment Act of 1998;
(B) the entities responsible for the administration
of the TANF program under part A of title IV of the
Social Security Act; or
(C) a combination of the entities described in
subparagraphs (A) and (B).
(2) Within-state allocations.--
(A) Allocation of funds.--The Governor may reserve
up to 5 percent of the allotment under subsection
(b)(2) for administration and technical assistance, and
shall allocate the remainder, in accordance with the
option elected under paragraph (1)--
(i) among local workforce investment areas
within the State in accordance with the factors
identified in subsection (b)(2), except that
for purposes of such allocation references to a
State in such paragraph shall be deemed to be
references to a local workforce investment area
and references to all States shall be deemed to
be references to all local areas in the State
involved, of which not more than 10 percent of
the funds allocated to a local workforce
investment area may be used for the costs of
administration of this section; or
(ii) through entities responsible for the
administration of the TANF program under part A
of title IV of the Social Security Act in local
areas in such manner as the State may determine
appropriate.
(B) Local plans.--
(i) In general.--In the case where the
responsibility for the administration of
activities is to be carried out by the entities
described under paragraph (1)(A), in order to
receive an allocation under subparagraph
(A)(i), a local workforce investment board, in
partnership with the chief elected official of
the local workforce investment area involved,
shall submit to the Governor a local plan for
the use of such funds under this section not
later than 30 days after the submission of the
State plan. Such local plan may be submitted as
a modification to a local plan approved under
section 118 of the Workforce Investment Act of
1998.
(ii) Contents.--The local plan described in
clause (i) shall contain the elements described
in subparagraphs (A)-(H) of subsection (c)(1),
as applied to the local workforce investment
area.
(iii) Approval.--The Governor shall approve
or disapprove the local plan submitted under
clause (i) within 30 days after submission, or
if later, 30 days after the approval of the
State plan. The Governor shall approve the plan
unless the Governor determines that the plan is
inconsistent with requirements of this section
or is not reasonably appropriate and adequate
to carry out the purposes of this section. If
the Governor has not made a determination
within the period specified under the first
sentence of this clause, the plan shall be
considered approved. If the plan is
disapproved, the Governor may provide a
reasonable period of time in which a
disapproved plan may be amended and resubmitted
for approval. The Governor shall allocate funds
to local workforce investment areas with
approved plans within 30 days after such
approval.
(C) Reallocation of funds to local areas.--If a
local workforce investment board does not submit a
local plan by the time specified in subparagraph (B) or
the Governor does not approve a local plan, the amount
the local workforce investment area would have been
eligible to receive pursuant to the formula under
subparagraph (A)(i) shall be allocated to local
workforce investment areas that receive approval of the
local plan under subparagraph (B). Such reallocations
shall be made in accordance with the relative share of
the allocations to such local workforce investment
areas applying the formula factors described under
subparagraph (A)(i).
(e) Use of Funds.--
(1) In general.--The funds under this section shall be used
to provide subsidized employment for unemployed, low-income
adults. The State and local entities described in subsection
(d)(1) may use a variety of strategies in recruiting employers
and identifying appropriate employment opportunities, with a
priority to be provided to employment opportunities likely to
lead to unsubsidized employment in emerging or in-demand
occupations in the local area. Funds under this section may be
used to provide support services, such as transportation and
child care, that are necessary to enable the participation of
individuals in subsidized employment opportunities.
(2) Level of subsidy and duration.--The States or local
entities described in subsection (d)(1) may determine the
percentage of the wages and costs of employing a participant
for which an employer may receive a subsidy with the funds
provided under this section, and the duration of such subsidy,
in accordance with guidance issued by the Secretary. The State
or local entities may establish criteria for determining such
percentage or duration using appropriate factors such as the
size of the employer and types of employment.
(f) Coordination of Federal Administration.--The Secretary of Labor
shall administer this section in coordination with the Secretary of
Health and Human Services to ensure the effective implementation of
this section.
SEC. 365. SUMMER EMPLOYMENT AND YEAR-ROUND EMPLOYMENT OPPORTUNITIES FOR
LOW-INCOME YOUTH.
(a) In General.--From the funds available under section 363(a)(2),
the Secretary of Labor shall make an allotment under subsection (c) to
each State that has a State plan modification (or other form of request
for funds specified in guidance under subsection (b)) approved under
subsection (d) and to each outlying area and Native American grantee
under section 166 of the Workforce Investment Act of 1998 that meets
the requirements of this section, for the purpose of providing summer
employment and year-round employment opportunities to low-income youth.
(b) Guidance and Application of Requirements.--
(1) Guidance.--Not later than 20 days after the date of
enactment of this Act, the Secretary of Labor shall issue
guidance regarding the implementation of this section. Such
guidance shall, consistent with this section, include
procedures for the submission and approval of State plan
modifications, or for forms of requests for funds by the State
as may be identified in such guidance, local plan
modifications, or other forms of requests for funds from local
workforce investment areas as may be identified in such
guidance, and the allotment and allocation of funds, including
reallotment and reallocation of such funds, that promote the
expeditious and effective implementation of the activities
authorized under this section.
(2) Requirements.--Except as otherwise provided in the
guidance described in paragraph (1) and in this section and
other provisions of this Act, the funds provided for activities
under this section shall be administered in accordance with
subtitles B and E of title I of the Workforce Investment Act of
1998 relating to youth activities.
(c) State Allotments.--
(1) Reservations for outlying areas and tribes.--Of the
funds described in subsection (a), the Secretary shall
reserve--
(A) not more than one-quarter of one percent to
provide assistance to outlying areas to provide summer
and year-round employment opportunities to low-income
youth; and
(B) 1.5 percent to provide assistance to grantees
of the Native American programs under section 166 of
the Workforce Investment Act of 1998 to provide summer
and year-round employment opportunities to low-income
youth.
(2) States.--After determining the amounts to be reserved
under paragraph (1), the Secretary of Labor shall allot the
remainder of the amounts described in subsection (a) among the
States in accordance with the factors described in section
364(b)(2) of this Act.
(3) Reallotment.--If the Governor of a State does not
submit a State plan modification or other request for funds
specified in guidance under subsection (b) by the time
specified in subsection (d)(2)(B), or a State does not receive
approval of such State plan modification or request, the amount
the State would have been eligible to receive pursuant to the
formula under paragraph (2) shall be transferred within the
Fund and added to the amounts available for the competitive
grants under section 363(a)(3).
(d) State Plan Modification.--
(1) In general.--For a State to be eligible to receive an
allotment of the funds under subsection (c), the Governor of
the State shall submit to the Secretary of Labor a modification
to a State plan approved under section 112 of the Workforce
Investment Act of 1998, or other request for funds described in
guidance in subsection (b), in such form and containing such
information as the Secretary may require. At a minimum, such
plan modification or request shall include--
(A) a description of the strategies and activities
to be carried out to provide summer employment
opportunities and year-round employment opportunities,
including the linkages to educational activities,
consistent with subsection (f);
(B) a description of the requirements the States
will apply relating to the eligibility of low-income
youth, consistent with section 368(4), for summer
employment opportunities and year-round employment
opportunities, which may include criteria to target
assistance to particular categories of such low-income
youth, such as youth with disabilities, consistent with
subsection (f);
(C) a description of the performance outcomes to be
achieved by the State through the activities carried
out under this section and the processes the State will
use to track performance, consistent with guidance
provided by the Secretary of Labor regarding such
outcomes and processes and with section 367(b);
(D) a description of the timelines for
implementation of the activities described in
subparagraph (A), and the number of low-income youth
expected to be placed in summer employment
opportunities, and year-round employment opportunities,
respectively, by quarter;
(E) assurances that the State will report such
information as the Secretary may require relating to
fiscal, performance and other matters that the
Secretary determines is necessary to effectively
monitor the activities carried out under this section;
and
(F) assurances that the State will ensure
compliance with the labor standards protections
described in section 367(a).
(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 subsection (b) to the
Secretary of Labor not later than 30 days after the
issuance of such guidance. The State plan modification
or request for funds required under this subsection may
be submitted in conjunction with the State plan
required 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 approved. 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 Secretary shall
allot funds to States within 30 days after such
approval.
(3) Modifications to state plan or request.--The Governor
may submit further modifications to a State plan or request for
funds identified under subsection (b) to carry out this section
in accordance with the requirements of this section.
(e) Within-State Allocation and Administration.--
(1) In general.--Of the funds allotted to the State under
subsection (c), the Governor--
(A) may reserve up to 5 percent of the allotment
for administration and technical assistance; and
(B) shall allocate the remainder of the allotment
among local workforce investment areas within the State
in accordance with the factors identified in section
364(b)(2), except that for purposes of such allocation
references to a State in such paragraph shall be deemed
to be references to a local workforce investment area
and references to all States shall be deemed to be
references to all local areas in the State involved.
Not more than 10 percent of the funds allocated to a
local workforce investment area may be used for the
costs of administration of this section.
(2) Local plan.--
(A) Submission.--In order to receive an allocation
under paragraph (1)(B), the local workforce investment
board, in partnership with the chief elected official
for the local workforce investment area involved, shall
submit to the Governor a modification to a local plan
approved under section 118 of the Workforce Investment
Act of 1998, or other form of request for funds as may
be identified in the guidance issued under subsection
(b), not later than 30 days after the submission by the
State of the modification to the State plan or other
request for funds identified in subsection (b),
describing the strategies and activities to be carried
out under this section.
(B) Approval.--The Governor shall approve the local
plan submitted under subparagraph (A) within 30 days
after submission, unless the Governor determines that
the plan is inconsistent with requirements of this
section. If the Governor has not made a determination
within 30 days, the plan shall be considered approved.
If the plan is disapproved, the Governor may provide a
reasonable period of time in which a disapproved plan
may be amended and resubmitted for approval. The
Governor shall allocate funds to local workforce
investment areas with approved plans within 30 days
after approval.
(3) Reallocation.--If a local workforce investment board
does not submit a local plan modification (or other request for
funds identified in guidance under subsection (b)) by the time
specified in paragraph (2), or does not receive approval of a
local plan, the amount the local workforce investment area
would have been eligible to receive pursuant to the formula
under paragraph (1)(B) shall be allocated to local workforce
investment areas that receive approval of the local plan
modification or request for funds under paragraph (2). Such
reallocations shall be made in accordance with the relative
share of the allocations to such local workforce investment
areas applying the formula factors described under paragraph
(1)(B).
(f) Use of Funds.--
(1) In general.--The funds provided under this section
shall be used--
(A) to provide summer employment opportunities for
low-income youth, ages 16 through 24, with direct
linkages to academic and occupational learning, and may
include the provision of supportive services, such as
transportation or child care, necessary to enable such
youth to participate; and
(B) to provide year-round employment opportunities,
which may be combined with other activities authorized
under section 129 of the Workforce Investment Act of
1998, to low-income youth, ages 16 through 24, with a
priority to out-of-school youth who are--
(i) high school dropouts; or
(ii) recipients of a secondary school
diploma or its equivalent but who are basic
skills deficient unemployed or underemployed.
(2) Program priorities.--In administering the funds under
this section, the local board and local chief elected officials
shall give a priority to--
(A) identifying employment opportunities that are--
(i) in emerging or in-demand occupations in
the local workforce investment area; or
(ii) in the public or nonprofit sector that
meet community needs; and
(B) linking year-round program participants to
training and educational activities that will provide
such participants an industry-recognized certificate or
credential.
(3) Performance accountability.--For activities funded
under this section, in lieu of the requirements described in
section 136 of the Workforce Investment Act of 1998, State and
local workforce investment areas shall provide such reports as
the Secretary of Labor may require regarding the performance
outcomes described in section 367(a)(5).
SEC. 366. WORK-BASED EMPLOYMENT STRATEGIES OF DEMONSTRATED
EFFECTIVENESS.
(a) In General.--From the funds available under section 363(a)(3),
the Secretary of Labor shall award grants on a competitive basis to
eligible entities to carry out work-based strategies of demonstrated
effectiveness.
(b) Use of Funds.--The grants awarded under this section shall be
used to support strategies and activities of demonstrated effectiveness
that are designed to provide unemployed, low-income adults or low-
income youth with the skills that will lead to employment as part of or
upon completion of participation in such activities. Such strategies
and activities may include--
(1) on-the-job training, registered apprenticeship
programs, or other programs that combine work with skills
development;
(2) sector-based training programs that have been designed
to meet the specific requirements of an employer or group of
employers in that sector and where employers are committed to
hiring individuals upon successful completion of the training;
(3) training that supports an industry sector or an
employer-based or labor-management committee industry
partnership which includes a significant work-experience
component;
(4) acquisition of industry-recognized credentials in a
field identified by the State or local workforce investment
area as a growth sector or demand industry in which there are
likely to be significant job opportunities in the short-term;
(5) connections to immediate work opportunities, including
subsidized employment opportunities, or summer employment
opportunities for youth, that includes concurrent skills
training and other supports;
(6) career academies that provide students with the
academic preparation and training, including paid internships
and concurrent enrollment in community colleges or other
postsecondary institutions, needed to pursue a career pathway
that leads to postsecondary credentials and high-demand jobs;
and
(7) adult basic education and integrated basic education
and training models for low-skilled adults, hosted at community
colleges or at other sites, to prepare individuals for jobs
that are in demand in a local area.
(c) Eligible Entity.--An eligible entity shall include a local
chief elected official, in collaboration with the local workforce
investment board for the local workforce investment area involved
(which may include a partnership with such officials and boards in the
region and in the State), or an entity eligible to apply for an Indian
and Native American grant under section 166 of the Workforce Investment
Act of 1998, and may include, in partnership with such officials,
boards, and entities, the following:
(1) employers or employer associations;
(2) adult education providers and postsecondary educational
institutions, including community colleges;
(3) community-based organizations;
(4) joint labor-management committees;
(5) work-related intermediaries; or
(6) other appropriate organizations.
(d) Application.--An eligible entity seeking to receive a grant
under this section shall submit to the Secretary of Labor an
application at such time, in such manner, and containing such
information as the Secretary may require. At a minimum, the application
shall--
(1) describe the strategies and activities of demonstrated
effectiveness that the eligible entities will carry out to
provide unemployed, low-income adults and low-income youth with
the skills that will lead to employment upon completion of
participation in such activities;
(2) describe the requirements that will apply relating to
the eligibility of unemployed, low-income adults or low-income
youth, consistent with paragraphs (4) and (6) of section 368,
for activities carried out under this section, which may
include criteria to target assistance to particular categories
of such adults and youth, such as individuals with disabilities
or individuals who have exhausted all rights to unemployment
compensation;
(3) describe how the strategies and activities address the
needs of the target populations identified in paragraph (2) and
the needs of employers in the local area;
(4) describe the expected outcomes to be achieved by
implementing the strategies and activities;
(5) provide evidence that the funds provided may be
expended expeditiously and efficiently to implement the
strategies and activities;
(6) describe how the strategies and activities will be
coordinated with other Federal, State and local programs
providing employment, education and supportive activities;
(7) provide evidence of employer commitment to participate
in the activities funded under this section, including
identification of anticipated occupational and skill needs;
(8) provide assurances that the grant recipient will report
such information as the Secretary may require relating to
fiscal, performance and other matters that the Secretary
determines is necessary to effectively monitor the activities
carried out under this section; and
(9) provide assurances that the use of the funds provided
under this section will comply with the labor standards and
protections described in section 367(a).
(e) Priority in Awards.--In awarding grants under this section, the
Secretary of Labor shall give a priority to applications submitted by
eligible entities from areas of high poverty and high unemployment, as
defined by the Secretary, such as Public Use Microdata Areas (PUMAs) as
designated by the Census Bureau.
(f) Coordination of Federal Administration.--The Secretary of Labor
shall administer this section in coordination with the Secretary of
Education, Secretary of Health and Human Services, and other
appropriate agency heads, to ensure the effective implementation of
this section.
SEC. 367. GENERAL REQUIREMENTS.
(a) Labor Standards and Protections.--Activities provided with
funds under this Act shall be subject to the requirements and
restrictions, including the labor standards, described in section 181
of the Workforce Investment Act of 1998 and the nondiscrimination
provisions of section 188 of such Act, in addition to other applicable
federal laws.
(b) Reporting.--The Secretary may require the reporting of
information relating to fiscal, performance and other matters that the
Secretary determines is necessary to effectively monitor the activities
carried out with funds provided under this Act. At a minimum, grantees
and subgrantees shall provide information relating to--
(1) the number of individuals participating in activities
with funds provided under this Act and the number of such
individuals who have completed such participation;
(2) the expenditures of funds provided under the Act;
(3) the number of jobs created pursuant to the activities
carried out under this Act;
(4) the demographic characteristics of individuals
participating in activities under this Act; and
(5) the performance outcomes of individuals participating
in activities under this Act, including--
(A) for adults participating in activities funded
under section 364 of this Act--
(i) entry in unsubsidized employment,
(ii) retention in unsubsidized employment,
and
(iii) earnings in unsubsidized employment;
(B) for low-income youth participating in summer
employment activities under sections 365 and 366--
(i) work readiness skill attainment using
an employer validated checklist;
(ii) placement in or return to secondary or
postsecondary education or training, or entry
into unsubsidized employment;
(C) for low-income youth participating in year-
round employment activities under section 365 or in
activities under section 366--
(i) placement in or return to post-
secondary education;
(ii) attainment of high school diploma or
its equivalent;
(iii) attainment of an industry-recognized
credential; and
(iv) entry into unsubsidized employment,
retention, and earnings as described in
subparagraph (A);
(D) for unemployed, low-income adults participating
in activities under section 366--
(i) entry into unsubsidized employment,
retention, and earnings as described in
subparagraph (A); and
(ii) the attainment of industry-recognized
credentials.
(c) Activities Required To Be Additional.--Funds provided under
this Act shall only be used for activities that are in addition to
activities that would otherwise be available in the State or local area
in the absence of such funds.
(d) Additional Requirements.--The Secretary of Labor may establish
such additional requirements as the Secretary determines may be
necessary to ensure fiscal integrity, effective monitoring, and the
appropriate and prompt implementation of the activities under this Act.
(e) Report of Information and Evaluations to Congress and the
Public.--The Secretary of Labor shall provide to the appropriate
Committees of the Congress and make available to the public the
information reported pursuant to subsection (b) and the evaluations of
activities carried out pursuant to the funds reserved under section
363(b).
SEC. 368. DEFINITIONS.
In this Act:
(1) Local chief elected official.--The term ``local chief
elected official'' means the chief elected executive officer of
a unit of local government in a local workforce investment area
or in the case where more than one unit of general government,
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 Workforce 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-income 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 State plans, local plans, and
applications for funds, may increase the income level
specified in subparagraph (B)(i) of such section to an
amount not in excess of 200 percent of the poverty line
for purposes of determining eligibility for
participation in activities under sections 365 and 366
of this Act; and
(C) is in one or more of the categories specified
in section 101(13)(C) of the Workforce Investment Act
of 1998.
(5) Outlying area.--The term ``outlying area'' means the
United States Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, and the Republic
of Palau.
(6) Unemployed, low-income adult.--The term ``unemployed,
low-income adult'' means an individual who--
(A) is age 18 or older;
(B) is without employment and is seeking assistance
under this Act to obtain employment; and
(C) meets the definition of a ``low-income
individual'' under section 101(25) of the Workforce
Investment Act of 1998, except that for that States,
local entities described in section 364(d)(1) and
eligible entities under section 366(c), subject to
approval in the applicable State plans, local plans,
and applications for funds, may increase the income
level specified in subparagraph (B)(i) of such section
to an amount not in excess of 200 percent of the
poverty line for purposes of determining eligibility
for participation in activities under sections 364 and
366 of this Act.
(7) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, and
Puerto Rico.
Subtitle D--Prohibition of Discrimination in Employment on the Basis of
an Individual's Status as Unemployed
SEC. 371. SHORT TITLE.
This subtitle may be cited as the ``Fair Employment Opportunity Act
of 2011''.
SEC. 372. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds that denial of employment
opportunities to individuals because of their status as unemployed is
discriminatory and burdens commerce by--
(1) reducing personal consumption and undermining economic
stability and growth;
(2) squandering human capital essential to the Nation's
economic vibrancy and growth;
(3) increasing demands for Federal and State unemployment
insurance benefits, reducing trust fund assets, and leading to
higher payroll taxes for employers, cuts in benefits for
jobless workers, or both;
(4) imposing additional burdens on publicly funded health
and welfare programs; and
(5) depressing income, property, and other tax revenues
that the Federal Government, States, and localities rely on to
support operations and institutions essential to commerce.
(b) Purposes.--The purposes of this Act are--
(1) to prohibit employers and employment agencies from
disqualifying an individual from employment opportunities
because of that individual's status as unemployed;
(2) to prohibit employers and employment agencies from
publishing or posting any advertisement or announcement for an
employment opportunity that indicates that an individual's
status as unemployed disqualifies that individual for the
opportunity; and
(3) to eliminate the burdens imposed on commerce due to the
exclusion of such individuals from employment.
SEC. 373. DEFINITIONS.
As used in this Act--
(1) the term ``affected individual'' means any person who
was subject to an unlawful employment practice solely because
of that individual's status as unemployed;
(2) the term ``Commission'' means the Equal Employment
Opportunity Commission;
(3) the term ``employee'' means--
(A) an employee as defined in section 701(f) of the
Civil Rights Act of 1964 (42 U.S.C. 2000e(f));
(B) a State employee to which section 302(a)(1) of
the Government Employee Rights Act of 1991 (42 U.S.C.
2000e-16b(a)(1)) applies;
(C) a covered employee, as defined in section 101
of the Congressional Accountability Act of 1995 (2
U.S.C. 1301) or section 411(c) of title 3, United
States Code; or
(D) an employee or applicant to which section
717(a) of the Civil Rights Act of 1964 (42 U.S.C.
2000e-16(a)) applies;
(4) the term ``employer'' means--
(A) a person engaged in an industry affecting
commerce (as defined in section 701(h) of the Civil
Rights Act of 1964 (42 U.S.C. 2000e(h)) who has 15 or
more employees for each working day in each of 20 or
more calendar weeks in the current or preceding
calendar year, and any agent of such a person, but does
not include a bona fide private membership club that is
exempt from taxation under section 501(c) of the
Internal Revenue Code of 1986;
(B) an employing authority to which section
302(a)(1) of the Government Employee Rights Act of 1991
applies;
(C) an employing office, as defined in section 101
of the Congressional Accountability Act of 1995 or
section 411(c) of title 3, United States Code; or
(D) an entity to which section 717(a) of the Civil
Rights Act of 1964 (42 U.S.C. 2000e-16(a)) applies;
(5) the term ``employment agency'' means any person
regularly undertaking with or without compensation to procure
employees for an employer or to procure for individuals
opportunities to work as employees for an employer and includes
an agent of such a person, and any person who maintains an
Internet website or print medium that publishes advertisements
or announcements of openings in jobs for employees;
(6) the term ``person'' has the meaning given the term in
section 701(a) of the Civil Rights Act of 1964 (42 U.S.C.
2000e(a)); and
(7) the term ``status as unemployed'', used with respect to
an individual, means that the individual, at the time of
application for employment or at the time of action alleged to
violate this Act, does not have a job, is available for work
and is searching for work.
SEC. 374. PROHIBITED ACTS.
(a) Employers.--It shall be an unlawful employment practice for an
employer to--
(1) publish in print, on the Internet, or in any other
medium, an advertisement or announcement for an employee for
any job that includes--
(A) any provision stating or indicating that an
individual's status as unemployed disqualifies the
individual for any employment opportunity; or
(B) any provision stating or indicating that an
employer will not consider or hire an individual 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 agency take an
individual's status as unemployed into account to disqualify an
applicant for consideration, screening, or referral for
employment as an employee.
(b) Employment Agencies.--It shall be an unlawful employment
practice for an employment agency to--
(1) publish, in print or on the Internet or in any other
medium, an advertisement or announcement for any vacancy in a
job, as an employee, that includes--
(A) any provision stating or indicating that an
individual's status as unemployed disqualifies the
individual for any employment opportunity; or
(B) any provision stating or indicating that the
employment agency or an employer will not consider or
hire an individual for any employment opportunity based
on that individual's status as unemployed;
(2) screen, fail or refuse to consider, or fail or refuse
to refer an individual for employment as an employee because of
the individual's status as unemployed; or
(3) limit, segregate, or classify any individual in any
manner that would limit or tend to limit the individual's
access to information about jobs, or consideration, screening,
or referral for jobs, as employees, solely because of an
individual's status as unemployed.
(c) Interference With Rights, Proceedings or Inquiries.--It shall
be unlawful for any employer or employment agency to--
(1) interfere with, restrain, or deny the exercise of or
the attempt to exercise, any right provided under this Act; or
(2) fail or refuse to hire, to discharge, or in any other
manner to discriminate against any individual, as an employee,
because such individual--
(A) opposed any practice made unlawful by this Act;
(B) has asserted any right, filed any charge, or
has instituted or caused to be instituted any
proceeding, under or related to this Act;
(C) has given, or is about to give, any information
in connection with any inquiry or proceeding relating
to any right provided under this Act; or
(D) has testified, or is about to testify, in any
inquiry or proceeding relating to any right provided
under this Act.
(d) Construction.--Nothing in this Act is intended to preclude an
employer or employment agency from considering an individual's
employment history, or from examining the reasons underlying an
individual's status as unemployed, in assessing an individual's ability
to perform a job or in otherwise making employment decisions about that
individual. Such consideration or examination may include an assessment
of whether an individual's employment in a similar or related job for a
period of time reasonably proximate to the consideration of such
individual for employment is job-related or consistent with business
necessity.
SEC. 375. ENFORCEMENT.
(a) Enforcement Powers.--With respect to the administration and
enforcement of this Act--
(1) the Commission shall have the same powers as the
Commission has to administer and enforce--
(A) title VII of the Civil Rights Act of 1964 (42
U.S.C. 2000e et seq.); or
(B) sections 302 and 304 of the Government Employee
Rights Act of 1991 (42 U.S.C. 2000e-16b and 2000e-16c),
in the case of an affected individual who would be covered by
such title, or by section 302(a)(1) of the Government Employee
Rights Act of 1991 (42 U.S.C. 2000e-16b(a)(1)), respectively;
(2) the Librarian of Congress shall have the same powers as
the Librarian of Congress has to administer and enforce title
VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.)
in the case of an affected individual who would be covered by
such title;
(3) the Board (as defined in section 101 of the
Congressional Accountability Act of 1995 (2 U.S.C. 1301)) shall
have the same powers as the Board has to administer and enforce
the Congressional Accountability Act of 1995 (2 U.S.C. 1301 et
seq.) in the case of an affected individual who would be
covered by section 201(a)(1) of such Act (2 U.S.C. 1311(a)(1));
(4) the Attorney General shall have the same powers as the
Attorney General has to administer and enforce--
(A) title VII of the Civil Rights Act of 1964 (42
U.S.C. 2000e et seq.); or
(B) sections 302 and 304 of the Government Employee
Rights Act of 1991 (42 U.S.C. 2000e-16b and 2000e-16c);
in the case of an affected individual who would be covered by
such title, or of section 302(a)(1) of the Government Employee
Rights Act of 1991 (42 U.S.C. 2000e-16b(a)(1)), respectively;
(5) the President, the Commission, and the Merit Systems
Protection Board shall have the same powers as the President,
the Commission, and the Board, respectively, have to administer
and enforce chapter 5 of title 3, United States Code, in the
case of an affected individual who would be covered by section
411 of such title; and
(6) a court of the United States shall have the same
jurisdiction and powers as the court has to enforce--
(A) title VII of the Civil Rights Act of 1964 (42
U.S.C. 2000e et seq.) in the case of a claim alleged by
such individual for a violation of such title;
(B) sections 302 and 304 of the Government Employee
Rights Act of 1991 (42 U.S.C. 2000e-16b and 2000e-16c)
in the case of a claim alleged by such individual for a
violation of section 302(a)(1) of such Act (42 U.S.C.
2000e-16b(a)(1));
(C) the Congressional Accountability Act of 1995 (2
U.S.C. 1301 et seq.) in the case of a claim alleged by
such individual for a violation of section 201(a)(1) of
such Act (2 U.S.C. 1311(a)(1)); and
(D) chapter 5 of title 3, United States Code, in
the case of a claim alleged by such individual for a
violation of section 411 of such title.
(b) Procedures.--The procedures applicable to a claim alleged by an
individual for a violation of this Act are--
(1) the procedures applicable for a violation of title VII
of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.) in
the case of a claim alleged by such individual for a violation
of such title;
(2) the procedures applicable for a violation of section
302(a)(1) of the Government Employee Rights Act of 1991 (42
U.S.C. 2000e-16b(a)(1)) in the case of a claim alleged by such
individual for a violation of such section;
(3) the procedures applicable for a violation of section
201(a)(1) of the Congressional Accountability Act of 1995 (2
U.S.C. 1311(a)(1)) in the case of a claim alleged by such
individual for a violation of such section; and
(4) the procedures applicable for a violation of section
411 of title 3, United States Code, in the case of a claim
alleged by such individual for a violation of such section.
(c) Remedies.--
(1) In any claim alleging a violation of Section 374(a)(1)
or 374(b)(1) of this Act, an individual, or any person acting
on behalf of the individual as set forth in Section 375(a) of
this Act, may be awarded, as appropriate--
(A) an order enjoining the respondent from engaging
in the unlawful employment practice;
(B) reimbursement of costs expended as a result of
the unlawful employment practice;
(C) an amount in liquidated damages not to exceed
$1,000 for each day of the violation; and
(D) reasonable attorney's fees (including expert
fees) and costs attributable to the pursuit of a claim
under this Act, except that no person identified in
Section 103(a) of this Act shall be eligible to receive
attorney's fees.
(2) In any claim alleging a violation of any other
subsection of this Act, an individual, or any person acting on
behalf of the individual as set forth in Section 375(a) of this
Act, may be awarded, as appropriate, the remedies available for
a violation of title VII of the Civil Rights Act of 1964 (42
U.S.C. 2000e et seq.), section 302(a)(1) of the Government
Employee Rights Act of 1991 (42 U.S.C. 2000e-16b(a)(1)),
section 201(a)(1) of the Congressional Accountability Act of
1995 (2 U.S.C. 1311(a)(1)), and section 411 of title 3, United
States Code, except that in a case in which wages, salary,
employment benefits, or other compensation have not been denied
or lost to the individual, damages may be awarded in an amount
not to exceed $5,000.
SEC. 376. FEDERAL AND STATE IMMUNITY.
(a) Abrogation of State Immunity.--A State shall not be immune
under the 11th Amendment to the Constitution from a suit brought in a
Federal court of competent jurisdiction for a violation of this Act.
(b) Waiver of State Immunity.--
(1) In general.--
(A) Waiver.--A State's receipt or use of Federal
financial assistance for any program or activity of a
State shall constitute a waiver of sovereign immunity,
under the 11th Amendment to the Constitution or
otherwise, to a suit brought by an employee or
applicant for employment of that program or activity
under this Act for a remedy authorized under Section
375(c) of this Act.
(B) Definition.--In this paragraph, the term
``program or activity'' has the meaning given the term
in section 606 of the Civil Rights Act of 1964 (42
U.S.C. 2000d-4a).
(2) Effective date.--With respect to a particular program
or activity, paragraph (1) applies to conduct occurring on or
after the day, after the date of enactment of this Act, on
which a State first receives or uses Federal financial
assistance for that program or activity.
(c) Remedies Against State Officials.--An official of a State may
be sued in the official capacity of the official by any employee or
applicant for employment who has complied with the applicable
procedures of this Act, for relief that is authorized under this Act.
(d) Remedies Against the United States and the States.--
Notwithstanding any other provision of this Act, in an action or
administrative proceeding against the United States or a State for a
violation of this Act, remedies (including remedies at law and in
equity) are available for the violation to the same extent as such
remedies would be available against a non-governmental entity.
SEC. 377. RELATIONSHIP TO OTHER LAWS.
This Act shall not invalidate or limit the rights, remedies, or
procedures available to an individual claiming discrimination
prohibited under any other Federal law or regulation or any law or
regulation of a State or political subdivision of a State.
SEC. 378. SEVERABILITY.
If any provision of this Act, or the application of the provision
to any person or circumstance, is held to be invalid, the remainder of
this Act and the application of the provision to any other person or
circumstances shall not be affected by the invalidity.
SEC. 379. EFFECTIVE DATE.
This Act shall take effect on the date of enactment of this Act and
shall not apply to conduct occurring before the effective date.
TITLE IV--SURTAX ON MILLIONAIRES
SEC. 401. SURTAX ON MILLIONAIRES.
(a) In General.--Subchapter A of chapter 1 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new part:
``PART VIII--SURTAX ON MILLIONAIRES
``Sec. 59B. Surtax on millionaires.
``SEC. 59B. SURTAX ON MILLIONAIRES.
``(a) General Rule.--In the case of a taxpayer other than a
corporation for any taxable year beginning after 2012, there is hereby
imposed (in addition to any other tax imposed by this subtitle) a tax
equal to 5.6 percent of so much of the modified adjusted gross income
of the taxpayer for such taxable year as exceeds $1,000,000 ($500,000,
in the case of a married individual filing a separate return).
``(b) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning after 2013, each dollar amount under subsection (a)
shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2011' for `calendar year 1992' in
subparagraph (B) thereof.
``(2) Rounding.--If any amount as adjusted under paragraph
(1) is not a multiple of $10,000, such amount shall be rounded
to the next highest multiple of $10,000.
``(c) Modified Adjusted Gross Income.--For purposes of this
section, the term `modified adjusted gross income' means adjusted gross
income reduced by any deduction (not taken into account in determining
adjusted gross income) allowed for investment interest (as defined in
section 163(d)). In the case of an estate or trust, adjusted gross
income shall be determined as provided in section 67(e).
``(d) Special Rules.--
``(1) Nonresident alien.--In the case of a nonresident
alien individual, only amounts taken into account in connection
with the tax imposed under section 871(b) shall be taken into
account under this section.
``(2) Citizens and residents living abroad.--The dollar
amount in effect under subsection (a) shall be decreased by the
excess of--
``(A) the amounts excluded from the taxpayer's
gross income under section 911, over
``(B) the amounts of any deductions or exclusions
disallowed under section 911(d)(6) with respect to the
amounts described in subparagraph (A).
``(3) Charitable trusts.--Subsection (a) shall not apply to
a trust all the unexpired interests in which are devoted to one
or more of the purposes described in section 170(c)(2)(B).
``(4) Not treated as tax imposed by this chapter for
certain purposes.--The tax imposed under this section shall not
be treated as tax imposed by this chapter for purposes of
determining the amount of any credit under this chapter or for
purposes of section 55.''.
(b) Clerical Amendment.--The table of parts for subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by adding at
the end the following new item:
``part viii. surtax on millionaires.''.
(c) Section 15 Not to Apply.--The amendment made by subsection (a)
shall not be treated as a change in a rate of tax for purposes of
section 15 of the Internal Revenue Code of 1986.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.
Calendar No. 187
112th CONGRESS
1st Session
S. 1660
_______________________________________________________________________
A BILL
To provide tax relief for American workers and businesses, to put
workers back on the job while rebuilding and modernizing America, and
to provide pathways back to work for Americans looking for jobs.
_______________________________________________________________________
October 6, 2011
Read the second time and placed on the calendar
Introduced in Senate
Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time. (text of measure as introduced: CR S6188-6225)
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 187.
Motion to proceed to consideration of measure made in Senate. (consideration: CR S6351)
Cloture motion on the motion to proceed to the bill presented in Senate. (consideration: CR S6351; text: CR S6351)
Motion to proceed to consideration of measure withdrawn in Senate. (consideration: CR S6351)
Cloture on the motion to proceed not invoked in Senate by Yea-Nay Vote. 50 - 49. Record Vote Number: 160. (consideration: CR S6382-6384; text: CR S6383)
Roll Call #160 (Senate)Motion by Senator Reid to reconsider the vote by which cloture was not invoked on the motion to proceed to the bill made in Senate. (consideration: CR S6383)
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