[House Document 112-53]
[From the U.S. Government Publishing Office]



112th Congress, 1st Session - - - - - - - - - - - - - House Document 112-53


 
         THE ``AMERICAN JOBS ACT OF 2011'' LEGISLATIVE PROPOSAL

                               __________

                                MESSAGE

                                  from

                  THE PRESIDENT OF THE UNITED STATES

                              transmitting

   A LEGISLATIVE PROPOSAL ENTITLED THE ``AMERICAN JOBS ACT OF 2011''




 September 13, 2011.--Message and accompanying papers referred to the 
    Committees on Education and the Workforce, Energy and Commerce, 
Financial Services, House Administration, the Judiciary, Oversight and 
    Government Reform, Rules, Science, Space, and Technology, Small 
  Business, Transportation and Infrastructure, and Ways and Means and 
                         ordered to be printed
To the Congress of the United States:
    Today, I am pleased to submit to the Congress the enclosed 
legislative proposal, the ``American Jobs Act of 2011,'' 
together with a section-by-section analysis of the legislation.
    The American people understand that the economic crisis and 
the deep recession were not created overnight and will not be 
solved overnight. The economic security of the middle class has 
been under attack for decades. That is why I believe we need to 
do more than just recover from this economic crisis--we need to 
rebuild the economy the American way, based on balance, 
fairness, and the same set of rules for everyone from Wall 
Street to Main Street. We can work together to create the jobs 
of the future by helping small business entrepreneurs, by 
investing in education, and by making things the world buys.
    To create jobs, I am submitting the American Jobs Act of 
2011--nearly all of which is made up of the kinds of proposals 
supported by both Republicans and Democrats, and that the 
Congress should pass right away to get the economy moving now. 
The purpose of the American Jobs Act of 2011 is simple: put 
more people back to work and put more money in the pockets of 
working Americans. And it will do so without adding a dime to 
the deficit.
    First, the American Jobs Act of 2011 provides a tax cut for 
small businesses, to help them hire and expand now, and an 
additional tax cut to any business that hires or increases 
wages. In addition, the American Jobs Act of 2011 puts more 
money in the pockets of working and middle class Americans by 
cutting in half the payroll tax that comes out of the paycheck 
of every worker, saving typical families an average of $1,500 a 
year.
    Second, the American Jobs Act of 2011 puts more people back 
to work, including teachers laid off by State budget cuts, 
first responders and veterans coming back from Iraq and 
Afghanistan, and construction workers repairing crumbling 
bridges, roads and more than 35,000 schools, with projects 
chosen by need and impact, not earmarks and politics. It will 
repair and refurbish hundreds of thousands of foreclosed homes 
and businesses in communities across the country.
    Third, the American Jobs Act of 2011 helps out-of-work 
Americans by extending unemployment benefits to help them 
support their families while looking for work, and by reforming 
the system with training programs that build real skills, 
connect to real jobs, and help the long-term unemployed. It 
bans employers from discriminating against the unemployed when 
hiring, and provides a new tax credit to employers hiring 
workers who have been out of a job for over 6 months. And, it 
expands job opportunities for hundreds of thousands of low 
income youth and adults through a new Pathways Back to Work 
Fund that supports summer and year round jobs for youth; 
innovative new job training programs to connect low-income 
workers to jobs quickly; and successful programs to encourage 
employers to bring on disadvantaged workers.
    Lastly, this legislation is fully paid for. The legislation 
includes specific offsets to close corporate tax loopholes and 
asks the wealthiest Americans to pay their fair share that more 
than cover the cost of the jobs measures. The legislation also 
increases the deficit reduction target for the Joint Committee 
by the amount of the cost of the jobs package and specifies 
that, if the Committee reaches that higher target, then their 
measures would replace and turn off the specific offsets in 
this legislation.
    I urge the prompt and favorable consideration of this 
proposal.

                                                      Barack Obama.
    The White House, September 12, 2011.
Section-by-Section Analysis and Explanation of the ``American Jobs Act 
                               of 2011''

    Section 1--Short Title; Table of Contents. This section 
provides that the bill may be cited as the ``American Jobs Act 
of 2011'' and includes a table of contents for the bill.
    Section 2--References. This section specifies that 
generally any reference to ``this Act'' contained in any 
subtitle of the bill refers only to the provisions of that 
subtitle.
    Section 3--Severability. This section specifies that, if 
any provision of the bill is held invalid, the remainder of the 
bill is not affected.
    Section 4--Buy American--Use of American Iron, Steel, and 
Manufactured Goods. This section provides for the use of 
American iron, steel and manufactured goods, except in certain 
instances.
    Section 5--Wage Rate Requirements. This section provides 
for specific wage rate requirements. 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 the American Jobs Act of 2011 
would have to be paid not less than the wages prevailing in the 
locality for similar projects as determined by the Secretary of 
Labor in accordance with the Davis-Bacon Act.

             TITLE I--TAX RELIEF FOR WORKERS AND BUSINESSES


                     SUBTITLE A--PAYROLL TAX RELIEF

    Section 101--Temporary Payroll Tax Cut for Employers, 
Employees, and the Self-Employed. This section extends and 
expands the existing temporary reduction in payroll taxes. For 
calendar year 2012, it: (a) further reduces the Old Age, 
Survivors and Disability Insurance (social security) portion of 
the payroll tax that was paid by employees during 2011 from 4.2 
percent (reflecting the existing 2 percent temporary reduction 
from the permanent rate) to 3.1 percent; and (b) adds a new 
reduction in the portion of this tax that is paid by employers 
from 6.2 percent to 3.1 percent. The employer reduction applies 
to up to $5 million of wages that are paid by the employer. 
With limited exceptions, the reduction in amounts paid by 
employers is available to all employers, whether private 
businesses or tax-exempt organizations. The employer reduction 
is not available, however, to Federal, State and local 
government employers (other than State colleges and 
universities) or with respect to household workers. This 
section contains equivalent reductions for individuals subject 
to self-employment taxes. Transfers from general revenues are 
provided to protect the social security trust fund.
    Section 102--Temporary Tax Credit for Increased Payroll. 
For the last quarter of 2011 and for calendar year 2012, the 
proposal provides a payroll tax credit that fully offsets the 
employer social security tax that otherwise would apply to 
increases in wages from the corresponding period of the prior 
year. For example, if an employer paid wages subject to social 
security tax of $5 million in 2011 and $6 million in 2012, the 
credit to which the employer would be entitled would eliminate 
the employer's portion of social security taxes on the $1 
million of increased wages. The credit would be available on up 
to $50 million of an employer's increased wages. Generally, the 
credit is available to all employers, whether private 
businesses or tax-exempt organizations, but would not be 
available to Federal, State and local government employers 
(other than State colleges and universities) or with respect to 
household workers. Transfers from general revenues are provided 
to protect the social security trust fund.

                SUBTITLE B--OTHER RELIEF FOR BUSINESSES

    Section 111--Extension of Temporary 100 Percent Bonus 
Depreciation for Certain Business Assets. Under current law, 
businesses generally are allowed to immediately deduct 100 
percent of the cost of qualified property placed in service in 
2011 and 50 percent of the cost of such property placed in 
service in 2012. To encourage additional capital investment, 
this section extends the ability of businesses to deduct 100 
percent of the cost of qualified property through the end of 
2012.
    Section 112--Surety Bonds. Subsection (a) temporarily 
increases the size of contract surety bond that the Small 
Business Administration (SBA) can guarantee from $2,000,000 to 
$5,000,000. This will make it easier for small businesses to 
take advantage of contracting opportunities generated by the 
American Jobs Act's proposed infrastructure investments. 
Subsection (b) amends the section of the Small Business 
Investment Act that limits liability for surety bond guarantees 
in situations when the guarantee was obtained by fraud or 
material misrepresentation, the surety has breached a material 
item of the guarantee agreement, or the surety has violated 
SBA's surety bond regulations, in order to make that section 
consistent with the higher surety bond guarantee limit. 
Subsection (c) provides that the increased surety loan size 
will sunset at the end of fiscal year 2012. Subsection (d) 
provides $3,000,000 in mandatory funding to the Surety Bond 
Guarantees Revolving Fund to cover the estimated cost of this 
section.
    Section 113--Delay in Application of Withholding on 
Government Contractors. This section would delay the effective 
date of the requirement that governmental entities withhold at 
a 3 percent rate from payments to persons providing certain 
property or services. Under this section, this withholding 
requirement would apply to payments made after December 31, 
2013.

    TITLE II--PUTTING WORKERS BACK ON THE JOB WHILE REBUILDING AND 
                          MODERNIZING AMERICA


                SUBTITLE A--VETERANS HIRING PREFERENCES

    Section 201--Returning Heroes and Wounded Warriors Work 
Opportunity Tax Credits. Under current law, employers that hire 
veterans who have been unemployed for at least 6 months and 
have a service-connected disability are eligible for a maximum 
tax credit of $4,800. This section increases the amount of that 
credit to $9,600. This section also creates two new hiring 
credits for veterans. The first is a credit of $2,400 for 
employers that hire veterans who have been unemployed for at 
least 4 weeks. The second is credit of $5,600 for veterans who 
have been unemployed for at least 6 months. Under this section, 
these credits are also available to tax-exempt entities and 
public universities. Finally, this section authorizes the 
Secretary of the treasury to provide alternative methods for 
certifying a veteran's unemployed status.

                   SUBTITLE B--TEACHER STABILIZATION

    Section 202--Purpose. This section establishes the purpose 
of this subtitle as the prevention of teacher layoffs and 
creation of additional jobs in public early childhood, 
elementary, and secondary education.
    Section 203--Grants for the Outlying Areas and the 
Secretary of the Interior; Availability of Funds. This section 
reserves, from the amount provided in section 212, up to one-
half of one percent for outlying areas and up to one-half of 
one percent for Bureau of Indian Education (BIE) schools, and 
allow the Secretary to reserve up to $2,000,000 for 
administration and oversight. Under subsection (b), funds 
provided in section 212 would be made available to the 
Secretary until September 30, 2012.
    Section 204--State Allocation. This section allocates the 
remaining funds to the States based on population, through a 
grant to the Governor of each State who submits an approvable 
application. Under subsection (c), if a Governor does not 
submit an approvable application, the Secretary of Education 
would distribute those funds to other entities in the State, 
provided the Governor assures maintenance of effort for fiscal 
years 2012 and 2013. Under subsection (d), the Secretary would 
reallocate funds to the remaining States if a State does not 
receive funding or receives only 50 percent of its allocation.
    Section 205--State Application. This section allows 
Governors 30 days from the enactment of the Act to submit an 
application for a grant.
    Section 206--State Reservation and Responsibilities. This 
section authorizes States to reserve 10 percent of their grants 
for State-funded preschool programs and to reserve 2 percent 
for administrative costs. Subsection (b) would require States 
to support early, elementary, and secondary education by 
distributing the remaining grant funds to local educational 
agencies (LEAs) no later than 100 days after receiving a grant. 
Subsection (c) prohibits a State from using the funds to 
support a rainy-day fund or reduce debt obligations.
    Section 207--Local Educational Agencies. This section 
limits the use of funds by local educational agencies to those 
necessary to retain existing employees, rehire former 
employees, or hire new employees to provide early, elementary, 
or secondary educational and related services and excludes the 
use of funds for general administrative expenses. It also 
requires the funds to be obligated by September 30, 2013.
    Section 208--Early Learning. This section limits the use of 
funds by State-funded preschool programs to those 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 requires the funds to be 
obligated by September 30, 2013.
    Section 209--Maintenance of Effort. This section of the 
bill requires a State to provide an assurance to the Secretary 
that, for fiscal years 2012 and 2013, the State will maintain 
State support for early childhood, elementary, and secondary 
education and public institutions of higher education at the 
same level of support as the previous fiscal year or higher. 
Subsection (b) allows the Secretary to waive this maintenance 
of effort requirement in the event of exceptional or 
uncontrollable circumstances, or a precipitous decline in the 
financial resources of the State.
    Section 210--Reporting. This section requires each State 
that receives a grant under this part to submit, on an annual 
basis, a report to the Secretary that contains a description of 
how funds received were expended or obligated, and an estimate 
of the number of jobs supported by the State using funds 
received under this subtitle.
    Section 211--Definitions. This section defines the terms 
used in Subtitle B.
    Section 212--Authorization of Appropriations. This section 
authorizes and appropriates $30,000,000,000 to carry out this 
subtitle for fiscal year 2012.

               SUBTITLE C--FIRST RESPONDER STABILIZATION

    Section 213--Purpose. This section indicates that the 
purpose of this subtitle is to provide funding to States and 
localities to prevent layoffs and support the creation of 
additional jobs for law enforcement officers and other first 
responders.
    Section 214--Grant Program. This section provides authority 
for the Attorney General to carry out a competitive grant 
program as authorized by section 1701 of title I of the Omnibus 
Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796dd) 
to support hiring, rehiring, and retention of career law 
enforcement officers. This section further waives the 
requirements of subsections (g) and (i) of section 1701 and 
section 1704 of such Act (42 U.S.C. 3796dd-3(c)), which limit 
the Federal contribution for grants to 75 percent, terminate 
the authority to hire and rehire law enforcement officers after 
September 13, 2000, and limit annual salaries and benefits paid 
for by the grants to $75,000.
    Section 215--Appropriations. This section makes available 
$5,000,000,000 to carry out the program identified in section 
214 for fiscal year 2012, permitting funds to remain available 
through September 30, 2012. This section further authorizes the 
transfer of $1,000,000,000 of this funding to the Department of 
Homeland Security to provide for competitive grants to support 
the hiring of first responder personnel, as authorized by 15 
U.S.C. 2201 et seq., and to carry out section 34 of that Act 
(15 U.S.C. 2229a). This section also permits the Secretary to 
waive the requirements of subsections (a)(1)(A), (a)(1)(B), 
(a)(1)(E), (c)(1), (c)(2), and (c)(4)(A) of section 34, which, 
among other requirements, would limit the use of the funds as 
well as the duration of availability and funding amounts of 
grants. This section further permits that up to $8,000,000 of 
the amounts made available to the Department of Justice to be 
used for program administration, and up to $2,000,000 of 
amounts made available to the Department of Homeland Security 
may be used for program administration.

                    SUBTITLE D--SCHOOL MODERNIZATION

Part I--Elementary and Secondary Schools

    Section 221--Purpose. This section states that the purpose 
of Subtitle D 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.
    Section 222--Authorization of Appropriations. This section 
authorizes and appropriates $25,000,000,000, which would be 
available for obligation until September 30, 2012, to carry out 
this part.
    Section 223--Allocation of Funds. This section reserves 
one-half of one percent of the appropriated funds for BIE 
schools and outlying areas. It also permits funds to be 
reserved for a National Center for Education Statistics (NCES) 
survey on public school modernization, renovation, and repair 
needs. This section also allocates funds to the 100 LEAs with 
the largest numbers of children living in poverty, and provides 
for the remainder of funds to be allocated to States in 
proportion to their respective allocations under Part A of 
Title I of the Elementary and Secondary Education Act (ESEA) 
for fiscal year 2011.
    Section 224--State Use of Funds. This section allows a 
State to reserve no more than 1 percent (with a maximum of 
$750,000) for grant administration. It would also require 
States to allocate at least 50 percent of their funds to LEAs 
(other than those 100 LEAs described in section 1203(b)) based 
on their respective allocations under Part A of Title I of the 
ESEA for FY2011, with a minimum grant of $10,000. This section 
also authorizes States to use any remaining funds for grants to 
LEAs as needed, with priority to rural LEAs.
    Section 225--State and Local Applications. This section 
describes State and local application requirements.
    Section 226--Use of Funds. This section provides for the 
use of funds under this part.
    Section 227--Private Schools. This section allows certain 
private, nonprofit elementary or secondary schools to be 
eligible to receive program services for limited purposes, 
including meeting requirements of the Americans with 
Disabilities Act and the Rehabilitation Act.
    Section 228--Additional Provisions. This section makes 
funds appropriated under this Part available to LEAs for 
obligation for 24 months, and allows LEAs to obligate funds for 
36 months from the date of enactment. It also states that 
section 439 of the General Education Provisions Act (GEPA) 
applies to this Part and clarifies that Hawaii, the District of 
Columbia, and the Commonwealth of Puerto Rico are not LEAs for 
the purpose of receiving direct grants from the Secretary under 
subsection 223(b)(1).

Part II--Community College Modernization

    Section 229--Federal Assistance for Community College 
Modernization. This section authorizes the Secretary of 
Education to award grants to States to modernize, renovate, or 
repair existing facilities at community colleges. This section 
also reserves up to 0.25 percent for grants to Tribally 
Controlled Universities and outlying areas and provides for the 
Secretary's allocation to each State. It also: (1) allows the 
Secretary to reallocate any remaining funds proportionately; 
(2) allows a State to reserve 1 percent (up to $750,000) for 
grant administration; (3) requires that funds 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; (4) lists the 
application requirements for States; (5) prohibits the use of 
funds under this Part for the payment of routine maintenance 
costs, or for construction, modernization, renovation, or 
repair of stadiums or facilities used for religious instruction 
or worship; (6) requires States to consider ``green projects'' 
in their funding of subgrants; (7) establishes that section 439 
GEPA applies to this part; (8) requires States to report on 
their use of funds and job creation; (9) requires the Secretary 
of Education to report on grants made; and (10) authorizes and 
appropriates $5,000,000,000 for fiscal year 2012, available for 
obligation only during the period that ends 36 months after the 
date of enactment of this Act.

Part III--General Provisions

    Section 230--Definitions. This section defines several 
applicable terms used in this subtitle.
    Section 231--Buy American. This section establishes that 
Section 1605 of Division A of the American Recovery and 
Reinvestment Act of 2009 (P.L. 111-5) applies to funds made 
available under this subtitle.

    SUBTITLE E--IMMEDIATE TRANSPORTATION INFRASTRUCTURE INVESTMENTS

    Section 241--Immediate Transportation Infrastructure 
Investments. Subsection (a) of this section makes available $2 
billion for airport development grants. Grants made available 
under the section would have a 100 percent Federal share. 
Additionally, this subsection permits 0.3 percent of the 
available funds to be used for administrative expenses.
    Subsection (b) makes $1 billion available to conduct 
research and development and demonstrations and to acquire, 
establish, and improve FAA air navigation facilities, systems, 
and procedures to advance NextGen.
    Subsection (c) provides $27 billion for highway 
restoration, repair, and construction projects, as well as 
passenger and freight rail transportation projects, distributed 
via traditional formulas that were also utilized in the 
Recovery Act. A portion of the funds within each State would be 
sub-allocated by population areas. To speed project delivery, 
the Federal share of project costs would be 100 percent. In 
addition, set asides are specifically provided for: (1) Puerto 
Rico and territorial highways; (2) Indian reservation roads; 
(3) park roads and parkways; (4) forest highways; (5) refuge 
roads; and (6) management and oversight, including funding for 
State Departments of Transportation planning activities. 
Competitive funding is also provided for transportation 
training programs, particularly focused on workforce skill 
gaps, and disadvantaged business enterprise training 
assistance.
    Subsection (d) makes available $4 billion for projects to 
improve the Nation's existing intercity passenger rail network 
and develop new high speed rail corridors. Grants made 
available under the section would have a 100 percent Federal 
share. The Secretary would be required to issue interim 
guidance to applicants detailing the application process and 
eligibility criteria, and not less than 85 percent of the funds 
awarded shall be for projects supporting the development of 
intercity or high speed passenger rail corridors.
    Subsection (e) makes available $2 billion to Amtrak for the 
repair, rehabilitation, and upgrade of Amtrak's assets and 
infrastructure, including rolling stock.
    Subsection (f) makes available $3 billion for transit 
capital projects, particularly for the purchase of new buses 
and for the repair and rehabilitation of existing rail and bus 
systems, including rolling stock. To speed project delivery, 
the Federal share of project costs would be 100 percent. Of the 
funds provided, 80 percent would be apportioned to urbanized 
areas with a population of at least 50,000, 10 percent shall be 
apportioned to ``Growing States and High Density States'' as 
provided in Section 5340 of title 49, and 10 percent shall be 
apportioned to non-urbanized areas with populations below 
50,000. In addition, within the amount made available for 
apportionment to non-urbanized areas, 2.5 percent would be made 
available for tribal transit programs as provided in Section 
5311(c)(1) of title 49. Funds apportioned to urbanized areas 
with a population of at least 50,000, but not more than 200,000 
are eligible for both capital and operating assistance. Funds 
apportioned to non-urbanized areas are also eligible for 
operating assistance.
    Subsection (g) makes available $6 billion for capital 
projects to modernize existing fixed guideway systems and to 
replace and rehabilitate buses and bus facilities. To speed 
project delivery, the Federal share of project costs would be 
100 percent. To target fixed guideway modernization funding to 
the transit systems with the highest need for state of good 
repair upgrades, 75 percent of the funds provided will be 
apportioned based on fixed guideway revenue vehicle miles and 
passenger miles, as provided in Section 5336(b) of Title 49. 
The remaining 25 percent shall be available for bus and bus 
facilities and shall be apportioned based on formula in Section 
5336 other than subsection (b).
    Subsection (h) provides $5 billion to award grants on a 
competitive basis for projects across all surface 
transportation modes that will have a significant impact on the 
Nation, a metropolitan area or a region. Provisions require the 
Secretary to publish criteria on which to base competition for 
the grants within 90 days of enactment, with priority for 
distribution of funds given to projects expected to be 
completed within three years of the date of enactment of the 
Act. This subsection also provides the Secretary the 
flexibility to provide other forms of federal credit assistance 
for capital investments in surface transportation 
infrastructure.
    Subsection (i) authorizes the Secretary to establish 
standards under which a contract for construction funded under 
subsections (a) through (h) of this section may be advertised 
that contains ``local hiring'' requirements in some limited 
circumstances.

    SUBTITLE F--BUILDING AND UPGRADING INFRASTRUCTURE FOR LONG-TERM 
                              DEVELOPMENT

    Section 242--Short Title; Table of Contents. The Act is 
entitled the Building and Upgrading Infrastructure for Long-
Term Development (BUILD) Act.
    Section 243--Findings and Purpose. This section sets forth 
findings concerning, among other things, the importance of 
infrastructure and investing in infrastructure, the status of 
U.S. infrastructure as compared to other nations, and the 
issues surrounding our current funding mechanisms. It also sets 
forth the purpose of the Act, which is to create an institution 
that will mobilize significant private investment in 
economically viable infrastructure projects of regional or 
national significance in order to create jobs, reduce our 
infrastructure deficit, and support U.S. competitiveness.
    Section 244--Definitions. In this section-by-section, the 
definitions of significant terms are discussed in the sections 
below in which they appear.

Part I--American Infrastructure Financing Authority

    Section 245--Establishment and General Authority of AIFA. 
This section establishes the American Infrastructure Financing 
Authority (AIFA) as a wholly-owned government corporation that 
will provide direct loans and loan guarantees to facilitate 
investment in economically-viable infrastructure projects of 
regional or national significance. As set forth in the--
Definitions section of the Act, the term--infrastructure 
project includes projects from the transportation, water, and 
energy sectors. These sectors, in turn, include highways, 
roads, bridges, mass transit, inland waterways, commercial 
ports, airports, air traffic control systems, passenger rail, 
freight rail, water-waste treatment facilities, storm-water 
management systems, dams, solid-waste disposal facilities, 
levees, open-space management systems, pollution-reduced energy 
generation, transmission and distribution of energy, storage of 
energy, and energy-efficiency enhancements for buildings. The 
Board of Directors may make changes at its discretion to the 
subsectors by a vote of at least five of the voting members of 
the Board. This section further provides that AIFA shall be 
incorporated on the date of the first meeting of the Board of 
Directors, shall maintain and be considered a resident of 
Washington, D.C., and shall be exempt from the requirements set 
forth in chapter 91 of title 31 related to government 
corporations. Finally, this section requires the Secretary of 
the Treasury to take such action as may be necessary to assist 
AIFA in carrying out the purposes of this Act.
    Section 246--Voting Members of the Board of Directors. 
AIFA's Board of Directors will consist of seven voting members, 
each of whom will have an equal vote and all of whom will be 
appointed by the President with the advice and consent of the 
Senate. The President will also designate the Chairperson of 
the Board. Congressional Leadership (the Majority and Minority 
Leaders of the Senate, and the Speaker and Minority Leader of 
the House) will submit recommendations to the President after 
consulting with the appropriate Congressional committees. No 
more than four of the voting members can be from the same 
political party. Further, to be eligible to serve on the Board, 
the person must be a U.S. citizen and have significant 
expertise either in the management and administration of a 
relevant financial institution or in the financing, 
development, or operation of infrastructure projects. Voting 
members will serve a term of four years, except that the 
initial terms will be staggered for a subset of the Board. 
Voting members will be compensated at the daily equivalent of 
the annual rate of basic pay prescribed for level III of the 
Executive Schedule under section 5314 of Title 5 for each day 
during which the member is engaged in the performance of Board 
duties. A board member will not participate in decisions 
regarding any AIFA project in which the member has a financial 
interest.
    Section 247--Chief Executive Officer of AIFA. This section 
provides that the President will appoint, with the advice and 
consent of the Senate, a Chief Executive Officer of AIFA for a 
term of six years. The CEO will be a nonvoting member of the 
Board of Directors. To be eligible to serve as CEO, the person 
must be a U.S. citizen and have significant expertise in the 
management or administration of a financial institution or the 
financing and development of infrastructure projects. 
Additionally, to be eligible, the candidate must not hold any 
other public office or have any interest in an infrastructure 
project that is being considered by the Board (unless that 
interest is placed in a blind trust). The CEO will be 
responsible for all activities of AIFA, including 
responsibility for the development of AIFA's internal policies 
and responsibility for managing and overseeing AIFA's daily 
activities and personnel. More specifically, the CEO will be 
responsible for appointing senior management (subject to Board 
approval), hiring and terminating all other AIFA personnel, 
overseeing AIFA's involvement in the funded projects, and 
assessing and recommending in the first instance (subject to 
ultimate approval or disapproval by the Board) the compensation 
of all AIFA personnel. Although the Board is responsible for 
ultimately approving or disapproving loans and loan guarantees 
for applying projects, the CEO is responsible, in consultation 
with his or her staff, for developing eligible projects for 
AIFA support, for preparing the financial assistance packages 
for Board approval, and for monitoring any projects that 
receive funding. The CEO's compensation recommendations will be 
without regard to chapter 51 or subchapter III of chapter 53 of 
title 5.
    Section 248--Powers and Duties of the Board of Directors. 
This section lays out the powers and duties of the Board. It 
provides that the Board will be responsible for the ultimate 
review and approval of the eligible project applications and 
financial packages that are submitted by the CEO and senior 
management. The Board will also be responsible for, among other 
things, approving or disapproving any senior management 
appointed by the CEO, approving CEO-submitted documents 
concerning application and lending procedures, approving the 
compensation of AIFA personnel, approving business plans, 
strategies, and budgets, developing bylaws and conflict of 
interest policies, establishing subcommittees of the Board 
(including an audit committee), and ensuring that AIFA is 
operated in compliance with the Act. In setting and approving 
the compensation for the CEO and other AIFA personnel, the 
Board will consult with the Office of Personnel Management and 
seek to maintain comparability with other comparable federal 
personnel. The Board will also have the general authority to 
execute and oversee AIFA's contractual agreements, to determine 
appropriate expenses and obligations of AIFA, to approve other 
forms of credit enhancement that AIFA may provide to eligible 
projects consistent with the Act, to sue and be sued in AIFA's 
corporate capacity, and to exercise all other lawful powers 
that are necessary to carry out AIFA's purposes.
    Section 249--Senior Management. Senior management will be 
appointed by the CEO, subject to approval by the Board of 
Directors, and will serve at the pleasure of the CEO and the 
Board. Members of senior management include the Chief Financial 
Officer, Chief Risk Officer, Chief Compliance Officer, General 
Counsel, Chief Operations Officer, and Chief Lending Officer--
each of whom will report directly to the CEO except for the 
Chief Risk Officer, who will report directly to the Board. The 
primary function of senior management will be to provide 
professional support to the CEO in the discharge of his or her 
duties. The section provides that: (1) the Chief Financial 
Officer will be responsible for all financial functions of AIFA 
except those functions that the Board delegates externally; (2) 
the Chief Risk Officer will be responsible for the creation of 
financial, credit, and operational risk management guidelines, 
the establishment of guidelines to ensure diversification of 
lending activities, the monitoring of the financial, credit, 
and operational exposure of AIFA, and the development of risk-
management actions; (3) the Chief Compliance Officer will be 
responsible for AIFA functions relating to audits and 
accounting safeguards; that the General Counsel will be 
responsible for legal matters; (4) the Chief Operations Officer 
will be responsible for all AIFA operational functions, 
including those related to operations generally and human 
resources; and (5) the Chief Lending Officer will be 
responsible for all functions relating to the development of 
project pipelines, the financial structuring of projects, the 
selection of infrastructure projects to be reviewed by the 
Board, and related functions. The Chief Lending Officer will 
also be responsible for creating and managing both a Center for 
Excellence to provide technical assistance to public-sector 
borrowers and an Office of Rural Assistance to provide 
technical assistance for rural infrastructure projects. 
Finally, this section prevents members of senior management 
from holding any other public office and from having a 
financial interest in projects being considered (unless that 
interest is placed in a blind trust).
    Section 250--Special Inspector General for AIFA. This 
section provides that an Inspector General will oversee AIFA's 
operations. For the first five years of AIFA's existence, 
oversight responsibility will fall to the Inspector General of 
the Department of the Treasury. Beginning five years after 
enactment of the Act, an Office of the Special Inspector 
General for AIFA will be created. The Special IG for AIFA will 
be appointed by the President, with the advice and consent of 
the Senate. The primary duties of this office will be to 
conduct, supervise, and coordinate audits and investigations of 
AIFA's business activities. The Inspector General Act of 1978 
will apply to the Special IG of AIFA, and the Special IG may 
appoint and employ personnel in accordance with Title 5. Other 
federal entities, departments, and agencies are obliged to 
comply with requests for information from the Special IG of 
AIFA. Not later than one year after the confirmation of the 
Special IG of AIFA, and every calendar year thereafter, the 
Special IG will submit to the President a report of his or her 
activities during the previous year.
    Section 251--Other Personnel. Except as otherwise provided 
in the bylaws of AIFA, the CEO (in consultation with the Board) 
shall appoint, remove, and define the duties of such qualified 
personnel as are necessary to carry out the duties and purposes 
of AIFA. Members of senior management are excluded from this 
section, as they are addressed in section 295.
    Section 252--Compliance. This section provides that the 
provision of financial assistance to projects under this Act 
shall not be construed as superseding any provision of State 
law or any regulation that is otherwise applicable to an 
infrastructure project.

Part II--Terms and Limitations on Direct Loans and Loan Guarantees

    Section 253--Eligibility Criteria for Assistance from AIFA 
and Terms and Limitations of Loans. Financial assistance under 
this Act shall not be provided for any project whose purpose is 
private and for which no public benefit is created. Nor will 
financial assistance be provided for the refinancing of an 
existing project. Applicants are required to demonstrate to the 
satisfaction of the Board of Directors that the non-Federal 
project meets any pertinent requirements of this Act, any 
criteria established by the Board of Directors or CEO of AIFA, 
and the definition of a transportation and transportation-
related infrastructure project, water infrastructure project, 
or energy infrastructure project as defined by this Act. The 
criteria established by the Board of Directors shall provide 
adequate consideration of the economic, financial, technical, 
environmental, and public costs of each infrastructure project 
under consideration for financial assistance under this Act. 
The criteria established by the Board of Directors shall also 
provide adequate consideration of: (1) the means by which an 
infrastructure project is being financed; (2) the likelihood 
that assistance from AIFA will accelerate the development of 
the project and lower the overall costs; (3) the extent to 
which assistance from AIFA maximizes private investment or 
supports a public-private partnership; (4) the extent to which 
the support mobilizes other financing; (5) the technical and 
operational viability of the infrastructure project; (6) the 
proportions of financial assistance from AIFA; (7) the 
geographic location of the project (in an effort to have 
geographic diversity); (8) the size of the project and its 
impact on the resources of AIFA; and (9) the infrastructure 
sector of the project (in an effort to have projects from more 
than one sector financed by AIFA). Entities seeking assistance 
from AIFA for an eligible infrastructure project shall submit 
an application to AIFA. The CEO, working with the senior 
management of AIFA, will prepare eligible infrastructure 
projects for review and approval by the Board of Directors. 
Applications are reviewed on an ongoing basis. An eligible 
project has a cost that is reasonably anticipated to equal or 
exceed $100 million, with the exception of rural projects. An 
eligible rural project has a cost that is reasonably 
anticipated to equal or exceed $25 million. Once selected for 
financing, the amount of any direct loan or loan guarantee 
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. The 
maximum amount of new direct loans and loan guarantees in 
AIFA's first two fiscal years is limited to $10 billion each 
year. This increases to $20 billion per year after the second 
year of operations and through the ninth year, and increases to 
$50 billion per year after the ninth year of operations.
    Section 254--Loan Terms and Repayment. A direct loan or 
loan guarantee under this Act shall be on such terms and 
subject to such conditions as the CEO of AIFA determines 
appropriate, but there are certain threshold terms that will 
apply. First, a direct loan or loan guarantee under this Act 
shall be payable (in whole or part) from tolls, user fees, or 
other dedicated revenue sources that secure the senior payment 
obligations and shall include a rate covenant, coverage 
requirement, or similar security feature supporting the project 
obligations. Second, the base interest rate on a direct loan 
shall not be less than the yield on United States Treasury 
obligations of a similar maturity to the maturity of the direct 
loan. Third, the CEO of AIFA (in consultation with the Director 
of the Office of Management and Budget) shall estimate an 
appropriate federal credit subsidy amount for each direct loan 
and loan guarantee before entering an agreement for assistance. 
The final credit subsidy cost will be determined consistent 
with the Federal Credit Reform Act. The CEO of AIFA may charge 
a credit fee to the borrower to pay for all or a portion of the 
Federal credit subsidy. Fourth, the final maturity date of a 
direct loan or loan guarantee by AIFA shall be no later than 35 
years after the date of substantial completion of the project 
(as determined by the CEO of AIFA). The CEO of AIFA will also 
require each applicant to provide an opinion letter from at 
least one rating agency. An opinion letter is not required for 
rural projects, as these projects will receive an internal 
rating score. The execution of loan and loan guarantees under 
this Act will be contingent on the senior obligations of the 
infrastructure project receiving an investment grade rating. 
The CEO of AIFA will establish a repayment schedule for each 
direct loan, with the repayment commencing no later than five 
years after the date of substantial completion. After the first 
five years of AIFA operations, the average rating of AIFA's 
overall portfolio must be investment grade. The terms for loan 
guarantees are consistent with the terms set forth in this 
section for direct loans, except that a rate on the guaranteed 
loan and any payment, pre-payment, or refinancing features will 
be negotiated between the obligor and the lenders with the 
consent of the CEO of AIFA. Direct loans and loan guarantees 
under this Act are subject to the Federal Credit Reform Act.
    Section 255--Compliance and Enforcement. Entities that 
receive assistance from AIFA are required to enter into a 
credit agreement promising compliance with all policies and 
procedures of AIFA. The Board of Directors may take action to 
cancel utilized loan amounts or to accelerate the repayment 
terms of any outstanding obligations if a recipient of 
assistance is materially out of compliance with the loan 
agreement or any applicable procedure of AIFA.
    Section 256--Audits; reports to the President and Congress. 
The books of AIFA shall be maintained with generally accepted 
accounting principles and shall be subject to an annual audit 
by public accountants appointed by the Board of Directors. 
Ninety days after the last day of each fiscal year, the Board 
of Directors will be required to submit to the President and 
Congress an annual report that provides a detailed assessment 
of the preceding fiscal year. The Government Accountability 
Office (GAO) is required to conduct an evaluation and to submit 
a report to Congress on the activities of AIFA no later than 
five years after the date of enactment. AIFA is required to 
maintain appropriate records to support AIFA's financial 
transactions. The AIFA records are at all times 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

    Section 257--Administrative Fees. The CEO of AIFA shall 
establish fees that are sufficient to cover all or a portion of 
the administrative costs of AIFA.
    Section 258--Efficiency of AIFA. The CEO of AIFA shall make 
efforts to minimize the risk and cost to the taxpayer of AIFA 
activities while supporting the program's objectives, in 
establishing fees and risk premiums on loans and loan 
guarantees.
    Section 259--Funding. This section authorizes and 
appropriates $10 billion, which is to remain available until 
expended. Portions of these funds are set aside in the early 
years for administrative costs. No more than five percent will 
be used to offset subsidy costs associated with rural 
infrastructure projects.

Part IV--Extension of Exemption from Alternative Minimum Tax Treatment 
        for Certain Tax-Exempt Bonds

    Section 260--Extension of Exemption from Alternative 
Minimum Tax Treatment for Certain Tax-Exempt Bonds. This 
section excludes from the alternative minimum tax (AMT) 
interest on tax-exempt private activity bonds for bonds issued 
in 2011 or 2012.

                      SUBTITLE G--PROJECT REBUILD

    This subtitle authorizes $15 billion in investments to put 
construction workers on the job rehabilitating and refurbishing 
hundreds of thousands of vacant and foreclosed homes and 
businesses. Building on proven approaches to stabilizing 
neighborhoods with high concentrations of foreclosures, Project 
Rebuild will bring in expertise and capital from the private 
sector, focus on commercial and residential property 
improvements, and expand innovative property solutions like 
land banks. The goals of this subtitle are to create jobs, as 
well as stabilize neighborhoods, reverse vacancy reduction, and 
increase or stabilize residential and commercial property 
values.
    Section 261--Project Rebuild. Subsection (a) includes $15 
billion in direct appropriations and enumerates the eligible 
entities, including units of general local government, states, 
nonprofits, for-profits, and consortia. This section makes for-
profits eligible to be a potential direct grant recipients and 
not only as partners with a local government or non-profit 
entity. This addition is consistent with the added emphasis on 
job creation, innovation, and capacity to carry out real 
property acquisition. To offset potential new risks inherent in 
direct grants to for-profit entities, HUD will implement the 
enforcement policies and procedures as described at the end of 
the subtitle.
    Subsection (b)(1) describes the allocation of funds, with 
two-thirds allocated by formula to States and local governments 
and one-third allocated competitively to all types of eligible 
entity. This split allows the program both to use the speed of 
a formula and to use the more policy-driven competitive process 
to bring new players with capacity into the program, spurring 
leverage and innovation. The formula mandated by subsections 
(b)(2) and (b)(3) will be developed and allocations made within 
30 days of enactment. Entities eligible to receive formula 
allocations are States and units of general local government. 
The formula criteria subsection includes factors such as home 
foreclosures, mortgage defaults and delinquencies, and other 
criteria determined by the Secretary. As the nature of the 
causes of neighborhood de-stabilizing foreclosures has shifted 
over time, the formula factors are designed to capture greatest 
need areas and high capacity grantees. These factors will allow 
HUD to prepare a formula that will target effectively. 
Subsection (b)(4) describes the eligible entities for the 
competitively distributed funds and the competition factors. 
For-profit entities are included as possible direct grantees 
and factors have been added to identify applicant capacity to 
acquire foreclosed residential and commercial property and to 
demonstrate their knowledge of market conditions and 
appropriate responses. Capacity to undertake acquisition and 
stabilization activities is the most critical factor, so 
eligible entities will include consortia. The subsection 
requires publication of the competition NOFA within 60 days of 
enactment and submission of applications within 120 days.
    Under subsection (c), all funding must be obligated by HUD 
within 150 days, and eligible entities will have ambitious 
expenditure goals: 100 percent of funds expended within 3 years 
of receipt by the grantee, and the Secretary shall, by notice, 
establish expenditure benchmarks at the one- and two-year 
milestones. This ensures the program leverages experience and 
begins generating benefits sooner for targeted high need 
neighborhoods. Subsection (c) also requires each grantee to 
address how the use of funds will prioritize job creation. 
Other goals that must be addressed include neighborhood 
stabilization, vacancy rates, and stabilization of property 
values. This subsection also governs grantee targeting of 
resources. It requires grantees to target funds to needy 
geographical areas based on foreclosure-related factors. In 
addition, commercial foreclosures and higher than average 
unemployment will be considered in targeting. Grantees will be 
required to describe how their proposed use of funds will 
leverage private funds.
    Eligible uses of these funds include financing mechanisms, 
property acquisition/rehabilitation, land banks, demolition, 
and redevelopment. In addition, other eligible activities are 
property acquisition, direct homeownership assistance, 
homebuyer rehabilitation, property maintenance and disposition, 
and public improvements of public facilities. Eligible property 
types include foreclosed, abandoned, blighted, demolished, and 
vacant residential and commercial property. Commercial 
properties may be used for job generating activities, providing 
another employment and neighborhood stabilization tool. Another 
eligible use will allow the Secretary to support innovative 
uses of funds that support program goals, especially job 
creation through special economic development or modernization 
of public facilities.
    Subsection (d)(1) requires that grantees not purchase 
properties at a price in excess of current market value. 
Subsection (d)(2) requires quality rehabilitation that brings 
properties to applicable codes and permits use of renewable 
energy sources. Subsection (d)(3) requires the sale of homes at 
an amount less than or equal to the acquisition or 
rehabilitation cost to ensure housing affordability. Subsection 
(d)(4) prohibits using the funds to demolish public housing. 
This is an important safeguard to ensure that funds are not 
used to decrease affordable housing. Subsection (d)(5) limits 
the use of funds for demolition of other types of housing 
unless the Secretary determines that more demolition is an 
appropriate response to market conditions. This helps focus 
grantees on appropriate responses to market conditions and 
ensures that the vast majority of funds are used in ways that 
increase job opportunities and affordable housing. Subsection 
(d)(6) limits the use of funds under certain eligible uses for 
commercial purposes to 30 percent of each grant. The majority 
of properties in foreclosure nationally are residential, not 
commercial. This limitation will help maintain an appropriate 
focus on each property type. The limitation will not apply to 
properties in land banks. Land banks are frequently used in 
areas of very high unemployment where a focus on commercial 
uses is appropriate. Further, the Secretary will be able to 
provide exceptions to this limitation where appropriate to 
address local market conditions.
    Subsection (e)(1) establishes the program within the 
frameworks of the Housing and Community Development Act of 1974 
and title I of the Cranston-Gonzalez National Affordable 
Housing Act of 1990, which ensure strong financial management 
accountability, citizen participation, environmental review 
delegations, and other time-tested established requirements. 
Subsection (e)(2) states that no match will be required. 
Subsection (e)(3) references the tenant protections 
requirements in prior enacted language to be applicable in this 
Act. The provisions require grantees to extend certain 
protections to legal tenants of foreclosed property acquired 
with funds. Subsection (e)(4) includes vicinity hiring 
requirements to emphasize local hiring preferences. Subsection 
(e)(5) applies the Buy American provisions that was in the 
American Recovery and Reinvestment Act of 2009 to this program.
    Subsection (f)(1) permits the Secretary to specify waivers 
and alternative requirements for provisions that underlie the 
Housing and Community Development Act of 1974 and the National 
Affordable Housing Act, to expedite and facilitate use of 
funds. However, the Secretary may not specify alternative 
requirements to fair housing, nondiscrimination, labor 
standards or environmental provisions under these laws. 
Subsection (f)(2) provides for the Secretary to provide written 
notice of intent to exercise the authority to specify 
alternative requirements. This is consistent with the policy 
goal of increasing transparency. Subsection (f)(3) provides 
that the beneficiaries of the program are individuals and 
families whose income are 120 percent or less of the area 
median with 25 percent of the funds set aside for uses that 
provide housing for persons whose incomes are 50 percent or 
less of area median. This allows Project Rebuild to address the 
employment and housing needs of families with a wider range of 
incomes, but still ensuring assistance to lower income 
families. The Recurrent Requirement under subsection (f)(3)(B) 
directs the Secretary to take action to ensure long term 
affordability of residential property treated with Project 
Rebuild funds. Through notice, HUD will prescribe different 
affordability periods for different investment amounts, with 
greater investment resulting in longer affordability periods. 
Resale or recapture provisions are used for homeowner 
properties.
    Subsection (g) assures nationwide distribution of formula 
funds by providing a minimum of $20 million for each state.
    Subsection (h) limits the use of eminent domain so that it 
may not be used for purposes of economic development that 
primarily benefits private entities.
    Subsection (i) Limitation on distribution of funds does not 
allow grants to an organization that is itself or has employees 
that have been indicted for a violation under Federal law 
relating to election for Federal office.
    Subsection (j) requires every formula grantee to establish 
procedures related to the development of affordable rental 
housing. Many Project Rebuild grantees will be working in 
markets in which more rental housing is needed and this 
provision requires grantees to consider how to address these 
needs.
    Subsection (k) provides a 10 percent cap on the amount of 
funds in any grant that may be used to support a job-creating 
property maintenance program. This allows grantees to create 
short-term jobs on an interim basis while taking other actions 
to stabilize the neighborhood for the longer term.
    Subsection (l) allows 0.75 percent of the funds to be 
directed by HUD for grantee capacity building assistance and 
HUD expenses including, enforcement and program evaluation. 
With these funds, HUD will carry out its role in launching, 
overseeing, and closing out these grants. HUD's use of the 
grantee capacity building funds will support continued 
improvements and operations of the online reporting system used 
to track financial and activity progress.
    Subsection (m) requires the Secretary to establish and 
implement procedures to prevent fraud, waste, and abuse of 
funds. Further, grantees will be required to have an internal 
auditor and to provide performance reports to HUD on a 
quarterly basis. This subsection also specifies that the 
sanction for failure to meet expenditure requirements, as 
determined by the Secretary, shall be recapture of funds and 
reallocation. The Secretary will only be able to take an 
alternative sanction if the action is necessary to achieve 
program goals in a timely manner.

                SUBTITLE H--NATIONAL WIRELESS INITIATIVE

    Section 271--Definitions. This section defines several 
applicable terms used in this subtitle.

Part I--Auctions of Spectrum and Spectrum Management

    Section 272--Clarification of Authorities to Repurpose 
Federal Spectrum for Commercial Purposes. Subsections (a) and 
(b) permit Federal agencies to be fully reimbursed through the 
Spectrum Relocation Fund (SRF) for relocation costs (including 
planning costs that occur before an auction), to better enable 
agencies to evaluate the cost and scheduling implications of 
relocation activities, and thereby facilitate both an improved 
auction and relocation process while ensuring the continuity of 
agency missions. Also, subsection (b) allows for support of 
costs incurred by Federal agencies to allow shared and 
unlicensed use of spectrum assigned to agencies.
    Subsection (c) permits Federal agencies to be reimbursed 
for costs incurred in accommodating additional non-Federal 
access to their frequencies, as well as for studies related to 
sharing bands among Federal users. Reimbursable costs to enable 
sharing are consistent with system modifications made in the 
context of relocation.
    In addition, subsection (c) clarifies that the agencies are 
permitted to acquire state of the art replacement systems under 
the current-law standard of comparable capability of systems. 
Section 101(c) also permits agencies to hire term-limited civil 
servant and contractor support staff to implement relocation 
projects, and provides further authority for expenditures 
related to planning in advance of an auction. Subsection (c) 
furthermore clarifies that the SRF can be used to reimburse 
agencies for the cost of using commercial services, if these 
services are the most cost effective way of vacating Federal 
frequencies while maintaining agency missions. Subsection (d) 
allows Federal agencies to enter into sharing arrangements with 
non-Federal entities, upon approval of NTIA and the Office of 
Management and Budget (OMB). Subsection (e) provides authority 
to the Director of OMB to transfer amounts from the SRF for the 
costs of activities (including planning) directly attributable 
to relocation of Federal systems. This section also extends the 
period of funds availability in the SRF from 8 to 15 years, and 
provides additional flexibility beyond that period upon 
notification of the Congress. Furthermore, subsection (e) 
provides that up to 20 percent of the revenue from the auction 
of licenses associated with frequencies vacated by Federal 
agencies, or made available through sharing, may be used to 
enhance agency communications, radar and other spectrum using 
capabilities; this funding availability for enhancements would 
be in addition to the relocation costs covered under the 
current authorities, which provide for maintaining comparable 
capability for agencies. Use of funds for enhancements, like 
current authorities for relocation cost reimbursement, would be 
subject to notification of the appropriate Congressional 
committees. Subsection (f) clarifies that proceeds from non-
federal spectrum auctioned and paired with spectrum from 
federal inventories is available to support relocation 
activities after retention of revenues by the Federal 
Communications Commission to support its auctions program. 
Subsection (g) provides for a classified annex, if required, 
for any reports and notifications arising from the requirements 
of Sections 923 and 928 of Title 47, including the provisions 
of the bill.
    Section 273--Incentive Auction Authority. Subsection (a) 
authorizes the FCC to hold incentive auctions, where non-
government holders of spectrum will be reimbursed for its value 
from a portion of auction proceeds in return for voluntarily 
relinquishing their spectrum rights. The method of determining 
the portion paid to licensees would be subject to review prior 
to implementation. This section would require the FCC to assign 
at least the first 84 megahertz from certain specified bands 
through a competitive bidding process.
    Section 274--Requirements When Repurposing Mobile Satellite 
Services Spectrum for Terrestrial Broadband Use. This section 
would require the FCC to recover a significant portion of the 
value of new terrestrial broadband deployment rights in certain 
spectrum frequencies that were originally set aside for 
satellite services either through competitive bidding 
procedures or spectrum fee authority.
    Section 275--Permanent Extension of Auction Authority. This 
section would make permanent FCC's authority to auction 
spectrum, which expires on September 30, 2012, under current 
law.
    Section 276--Authority to Auction Licenses for Domestic 
Satellite Services. This section would clarify FCC's authority 
to auction certain spectrum that is solely or predominantly 
used for domestic satellite communications.
    Section 277--Directed Auction of Certain Spectrum. This 
section requires certain spectrum assigned to Federal agencies 
or in FCC inventories to be identified by NTIA and auctioned by 
the Commission. The section provides procedures for the 
President to not auction certain Federal spectrum if the 
President determines that it is not in the public interest to 
do so and provided that alternative spectrum is identified.
    Section 278--Authority to Establish Spectrum License User 
Fees. This section creates a new subsection (m) under section 
309 of the Communications Act of 1934, which provides the FCC 
with authority to establish, assess, and collect fees for 
initial spectrum licenses and construction permits that were 
not assigned by auction (competitive bidding) under section 
309(j) and for modifications or renewals of initial licenses 
and other authorizations, whether granted through competitive 
bidding or not, based upon public interest principles (for 
example, if a modification increases the value of a license). 
Fee authority will assist the FCC in managing the spectrum 
efficiently in cases in which auctions are prohibited or may 
not be an appropriate assignment tool but in which it is 
important to ensure that license holders pay the opportunity 
costs of their spectrum use, such as mobile satellite spectrum 
that is also licensed for ancillary terrestrial services.
    Paragraph (1) of new subsection (m) requires the FCC to 
collect certain amounts in fees in each fiscal year from 2012 
through 2021. Paragraph (2) governs the FCC's development of 
regulations to implement its fee authority. Subparagraph (A) 
requires the FCC to conduct a rulemaking to establish a fee 
methodology and a fee collection schedule. The FCC is directed 
to develop a fee methodology consistent with the public 
interest, convenience, and necessity requirement, which is 
found throughout the Communications Act. The FCC is expected to 
undertake a multi-stage rulemaking during which fees for 
different classes of spectrum licenses or construction permits 
may be developed and phased-in over time, consistent with sound 
spectrum management principles. It is expected that fees would 
encourage efficient allocation and use of the radio spectrum, 
as the opportunity cost of spectrum resources would be 
reflected to commercial license holders that did not receive 
authorizations through competitive bidding. The proposal 
specifies that the FCC may take the following factors into 
account when developing a fee methodology: (1) the highest 
value use of the spectrum that is forgone by the license or 
class of licenses or construction permits (i.e., the 
opportunity cost of spectrum use); (2) the scope and type of 
permissible services and uses; (3) the amount of spectrum and 
licensed coverage area; (4) shared versus exclusive use; (5) 
the level of demand for spectrum licenses or construction 
permits within a certain spectrum band or geographic area; (6) 
the amount of revenue raised on comparable licenses awarded 
through auction; and (7) such other factors that the FCC 
determines, in its discretion, are necessary to promote 
efficient and effective spectrum use. These factors may assist 
the FCC in determining which classes of spectrum licenses and 
construction permits should be subject to user fees and in 
developing a methodology that addresses the relative value of 
the spectrum to different classes of users. The FCC may 
consider other factors that may be raised during the rulemaking 
process. The FCC may also determine that certain classes of 
licenses or permits should be exempt from fees.
    Subparagraph (B) requires the FCC to conduct a rulemaking 
to establish a fee methodology and a fee collection schedule 
for entities holding Ancillary Terrestrial Component (ATC) 
authority on Mobile Satellite Service spectrum licenses. The 
FCC is directed to develop a fee methodology to collect an 
amount not less than a reasonable estimate of the value of the 
licenses over their term regardless of whether the spectrum is 
used for the ATC service. The FCC may take the same factors 
under subparagraph (A) into account when developing a fee 
methodology for the spectrum used for ATC service.
    Subparagraph (C) directs the FCC to commence a rulemaking 
regarding fees as a spectrum management tool within 60 days of 
enactment of the Act. The FCC is also directed to take all 
actions necessary so that fees for first class or classes of 
spectrum licenses or construction permits can be collected by 
September 30, 2012.
    Subparagraph (D) provides clarification that the FCC may 
modify the fee methodology or revise the rules implementing 
fees either through separate rulemakings, or as part of 
rulemakings or proceedings involving spectrum-based services, 
licenses, permits, and uses. Such modifications or revisions 
may add or modify classes of spectrum license or construction 
permit holders that must pay fees, and reflect appropriate 
increases or decreases in fees 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 FCC rulemaking 
proceedings or changes in law. Such modifications or revisions 
can take effect upon the date established in the FCC's 
rulemaking or in the law.
    Subparagraph (E) provides an exemption from spectrum 
licensing fees for holders of licenses for broadcast television 
and public safety radio services. The meaning of ``emergency 
response providers'' is derived from the definition of the term 
found in section 2(6) of the Homeland Security Act of 2002. 
Federal agencies are not FCC licensees and would not be subject 
to FCC fees.
    Paragraph (3) directs the FCC to assess penalties for late 
payment of fees. Paragraph (4) provides the FCC with the 
authority to revoke a license or permit if the license or 
construction permit holder has failed to pay to the FCC the fee 
or penalty authorized under this subsection. Paragraph (5) 
requires that all proceeds collected by the FCC under this 
section of the legislation be deposited in the Treasury's 
General Fund.

Part II--Public Safety Broadband Network

    Section 281--Reallocation of D Block for Public Safety. 
This section would reallocate spectrum known as the D block for 
use by first responders and other public safety uses. Under 
current law, the spectrum would be auctioned.
    Section 282--Flexible Use of Narrowband Spectrum. This 
section would allow the FCC to authorize broadband technologies 
to operate in spectrum currently designated for legacy 
narrowband and other land mobile radio technologies used for 
public safety operations.
    Section 283--Single Public Safety Wireless Licensee. This 
section would grant the Public Safety Broadband Corporation, 
which is established under section 284, the license for the D 
block of spectrum in addition to certain spectrum held for 
public safety use by broadband technologies.
    Section 284--Establishment of Public Safety Broadband 
Corporation. This section establishes the Public Safety 
Broadband Corporation to promote the construction and 
development of a nationwide public safety network. The section 
designates that the Corporation is not an agency or 
establishment of the U.S. or District of Columbia governments.
    Section 285--Board of Directors of the Corporation. This 
section establishes that the Corporation shall have a board of 
directors comprised of Federal and non-Federal members. The 
section also provides procedures for the election of non-
Federal members, qualifications, terms of apportionment, and 
other matters.
    Section 286--Officers, Employees, and Committees of the 
Corporation. This section describes the officers and employees 
of the corporation and compensation among other issues.
    Section 287--Nonprofit and Nonpolitical Nature of the 
Corporation. This section prohibits the Corporation from 
profiting on its assets, issuing stock, or supporting political 
parties or candidates for elective office.
    Section 288--Powers, Duties, and Responsibilities of the 
Corporation. This section describes the Corporation's 
authorities and responsibilities in deploying a nationwide 
public safety broadband network.
    Section 289--Initial Funding for the Corporation. This 
section provides up to $50 million to the National 
Telecommunications and Information Administration to transfer 
to the Corporation for expenses before proceeds from spectrum 
auctions authorized in this bill are realized.
    Section 290--Permanent Self-Funding; Duty to Assess and 
Collect Fees for Network Use. This section allows the 
Corporation to charge fees for the use of the public safety 
broadband network's capacity, whether public safety users or 
commercial users on a secondary basis. It also requires that 
fees cover the operations of the network after the initial 
expenditure of Federal funds and that proceeds from fees be 
reinvested in the network.
    Section 291--Audit and Report. This section requires that 
the Comptroller General have access to the Corporation's 
financial records in years where federal funds are available to 
finance operations. The section also requires the Comptroller 
General to submit reports to appropriate committees of 
Congress, the President, and the Corporation after an audit is 
conducted.
    Section 292--Annual Report to Congress. This section 
requires the Corporation to submit an annual report to Congress 
and the President on its activities.
    Section 293--Provision of Technical Assistance. This 
section allows the Commission and the Departments of Commerce, 
Justice and Homeland Security to provide technical assistance 
to the Corporation in carrying out its duties.
    Section 294--State and Local Implementation. This section 
authorizes a grant program to be administered by NTIA for 
states and localities to plan for the nationwide public safety 
broadband network.
    Section 295--State and Local Implementation Fund. This 
section creates a State and Local Implementation Fund for the 
grant program authorized in section 294. The fund is authorized 
to spend up to $100 million, and up to this amount could be 
borrowed from future spectrum proceeds to operate the program 
before proceeds from an auction are realized.
    Section 296--Public Safety Wireless Communications Research 
and Development. This section authorizes the program at the 
National Institute of Standards and Technology to develop 
technical requirements and standards for the public safety 
broadband network.
    Section 297--Public Safety Trust Fund. This section 
establishes the Public Safety Trust Fund, where proceeds from 
certain spectrum auctions are authorized to be deposited. This 
section provides $7 billion to build and operate the nationwide 
public safety broadband network as well as conduct research to 
develop standards for the network. Specifically, $200 million 
is provided to the state and local grant program to plan for 
and implement the network, $6.5 billion is provided for network 
construction (including up to $50 million of initial funding 
provided by NTIA) and up to $300 million is provided for the 
public safety communications research and development 
activities authorized in section 296. Funds are available until 
fiscal year 2016. In addition, after funds have been provided 
to licensees that participate in incentive auctions, the 
Commission may deposit $1 billion in the incentive auction 
relocation fund for the purpose of compensating licensees for 
costs incurred in repacking spectrum to make contiguous blocks 
available.
    Section 298--FCC Report on Efficient Use of Public Safety 
Spectrum. This section requires the Commission to report on use 
of spectrum assigned to public safety entities. This includes 
an examination of spectrum use, whether efficiency can be 
increased, and the feasibility of repurposing spectrum.
    Section 299--Public Safety Roaming and Priority Access. 
This section provides the Commission with authority to adopt 
rules that allow public safety entities to roam and have 
priority access on commercial networks in emergencies if 
certain conditions are met.

   TITLE III--ASSISTANCE FOR THE UNEMPLOYED AND PATHWAYS BACK TO WORK


               SUBTITLE A--SUPPORTING UNEMPLOYED WORKERS

    Section 301--Short Title. This section provides that 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

    This part provides for the extension of emergency 
unemployment compensation and certain extended benefits and 
establishes the self-employment assistance program.
    Section 311--Extension of Emergency Unemployment 
Compensation Program. This section generally provides for the 
extension of emergency unemployment compensation benefits. 
Subsection (a) would extend the emergency unemployment 
compensation (EUC) program for individuals to enter the program 
(upon exhaustion of regular unemployment compensation (UC) 
payments) by one year to January 3, 2013. It also would extend 
the transition period so individuals would be permitted to 
continue to receive amounts remaining in their EUC accounts 
until June 8, 2013. Subsection (b) would continue general 
revenue funding of EUC benefits and related administrative 
costs. Subsection (c) would provide that the amendments made by 
this section take effect as if included in the enactment of the 
Unemployment Compensation Extension Act of 2010.
    Section 312--Temporary Extension of Extended Benefit 
Provisions. This section generally provides for the extension 
of certain extended benefits. Subsection (a) would extend 100 
percent Federal funding of most extended benefits (EB) by one 
year to January 4, 2013. It also would extend the transition 
period by one year so 100 percent federal funding of EB would 
continue until June 11, 2013 for individuals who started 
receiving EB before January 4, 2013. Subsection (b) would 
extend 100 percent Federal funding of the first week of EB by 
one year to June 9, 2013. Subsection (c) would extend by one 
year the temporary modification to EB indicators, which makes 
it easier for EB to remain payable in states, to December 31, 
2012. Subsection (d) would provide that the amendments made by 
this section take effect as if included in the enactment of the 
Unemployment Compensation Extension Act of 2010.
    Section 313--Reemployment Services and Reemployment and 
Eligibility Assessment Activities. This section generally 
provides for the establishment of requirements for States to 
provide reemployment services and reemployment and eligibility 
assessments to certain emergency unemployment compensation 
recipients. Subsection (a) would require, as a condition of the 
Federal-State agreement permitting States to pay EUC, that 
States provide reemployment services and reemployment and 
eligibility assessment activities to each individual receiving 
EUC who, beginning 30 days after enactment of the Act, first 
establishes an EUC account or who begins to receive the amounts 
available under tiers 2, 3, or 4 of the EUC program.
    These services and activities would be provided from funds 
appropriated for this purpose. Staff of State agencies 
administering UI or the Wagner-Peyser Act would provide these 
services and activities, which would include: the provision of 
labor market and career information; an assessment of the 
individual's skills; orientation to services available in One-
Stop centers; job search counseling and development or review 
of individual's reemployment plan (including participation in 
job search activities, workshops, or appropriate training); and 
review of the individual's eligibility for EUC relating to the 
individual's job search efforts. States also would be 
authorized to use the funds to provide: comprehensive and 
specialized assessments; career counseling; and additional 
reemployment services. EUC claimants would be required to 
participate in the services or activities to which they are 
referred, as a condition of continuing EUC eligibility, unless 
the State agency determines there is justifiable cause for the 
failure to participate. Finally, the Secretary of Labor would 
be required to issue guidance on implementation of the required 
services and assessments no later than 30 days after enactment 
of the Act.
    Subsection (b) provides that the funds for such services 
and assessments would be appropriated from the general fund of 
the Treasury out of the employment security administration 
account. The total amount of funding appropriated would equal 
the number of individuals the Secretary estimates would receive 
such services and assessment activities multiplied by $200. 
Each State would then receive a distribution equal to the 
number of individuals who would receive the services and 
assessment activities multiplied by $200.
    Section 314--Federal-State Agreements to Administer a Self-
Employment Assistance Program. This section would amend the EUC 
law to permit States to enter into an agreement with the 
Secretary of Labor to establish self-employment assistance 
(SEA) programs, which would permit the payment of EUC as self-
employment allowances to eligible individuals. For an 
individual who chooses to participate in the program, the SEA 
allowances would be paid for up to 26 weeks from amounts 
remaining in such individual's EUC account, and the amounts in 
such account would be reduced accordingly. For purposes of this 
title, the term ``self employment assistance program'' would 
mean a program as defined in section 3306(t) of the Internal 
Revenue Code of 1986, except as follows: participation would 
not be limited to individuals who were identified pursuant to a 
State worker profiling system as likely to exhaust regular 
unemployment compensation; entrepreneurial training would not 
be mandatory and would be available in coordination with 
programs of the Small Business Administration; and 
participation would be capped at 1 percent of the number of 
individuals receiving EUC. SEA allowances only would be 
available to individuals that the State agency reasonably 
expects would have at least 26 times their average weekly 
benefit amount in potential EUC entitlement remaining. Further, 
an individual who chooses to terminate his or her participation 
in the SEA program, or who has completed participation in the 
program, and who continues to meet the EUC eligibility 
requirements, would be permitted to receive amounts remaining 
in their EUC accounts with respect to subsequent weeks of 
unemployment.
    Section 315--Conforming Amendment on Payment of Bridge To 
Work Wages. This section would authorize States that establish 
a bridge to work program under Part II of this Act to deduct 
amounts from an individual's EUC account to pay the 
individual's wages during participation in the program.
    Section 316--Additional Extended Unemployment Benefits 
Under the Railroad Unemployment Insurance Act. This section 106 
would amend the Railroad Unemployment Insurance Act to extend 
through December 31, 2012, the temporary increase in extended 
unemployment benefits for employees with 10 or more years of 
service and for those with less than 10 years of service. This 
section would make pre-existing appropriated funds under such 
Act available to cover the cost of such extended unemployment 
benefits as well as the costs of current benefits.

Part II--Reemployment NOW program

    This part establishes the Reemployment NOW program.
    Section 321--Establishment of Reemployment NOW Program. 
This section would authorize and appropriate $4 billion for 
fiscal year 2012 for the Secretary of Labor to establish and 
carry out a Reemployment NOW program, which would facilitate 
the reemployment of individuals receiving emergency 
unemployment compensation.
    Section 322--Distribution of Funds. This section provides 
for the distribution of funds to carry out the Reemployment NOW 
program. Subsection (a) provides that the Secretary of Labor 
may reserve up to 1 percent of the funds appropriated for the 
program to pay the costs of Federal administration and for 
rigorous evaluations of the activities that are carried out by 
the States under the program. The remaining 99 percent or more 
of the funds would be allotted among the States that receive 
approval of State plans. Subsection (b) provides the formula 
for allotting funds among the States. Two-thirds of the funds 
would be allotted on the basis of the relative number of 
unemployed individuals in each State and one-third would be 
allotted on the basis of the relative number of individuals who 
have been unemployed for 27 weeks or more in each State. 
Subsection (c) provides for the reallotment of funds. If a 
State does not submit a plan by the required date, or fails to 
receive approval of its plan, the State's allotment is 
reallotted to States with approved plans, using the allotment 
formula. The Secretary of Labor also is authorized, in 
accordance with guidance issued by the Secretary, to recapture 
and reobligate funds if the funds are not being obligated at a 
rate sufficient to meet the purposes of the program. Funds 
recaptured by the Secretary would be available for reobligation 
until December 31, 2012.
    Section 323--State Plan. This section provides the 
requirements for the State plan. Subsection (a) provides that 
for a State to be eligible to receive an allotment under the 
program, the State must submit a State plan in the form and 
containing the information the Secretary may require. At a 
minimum, the plan is to include: (1) a description of the 
activities to be carried out and an estimate of how the State 
intends to allocate funds among the authorized activities; (2) 
the performance outcomes to be achieved; (3) the coordination 
of activities with the activities under other Federal programs; 
(4) timelines for implementation; assurances that the State 
will participate in evaluation activities; (5) assurances that 
reemployment services will be provided for EUC claimants who 
participate in program activities; and (6) assurances that the 
State will report on any information required by the Secretary 
relating to fiscal, performance and other matters. Subsection 
(b) requires that a State submit plans not later than 30 days 
after the Secretary issues guidance. The Secretary is to 
approve the plans that meet the requirements of the program and 
are appropriate and adequate to carry out the program's 
purposes. Subsection (c) authorizes modifications to the State 
plan.
    Section 324--Bridge to Work Program. This section provides 
for the establishment of a bridge to work program. Subsection 
(a) would authorize a State to use Reemployment NOW funds to 
provide a bridge to work program.
    Subsection (b) would provide that, under the bridge to work 
program, eligible individuals would have the option to engage 
in short-term work experiences with an eligible employer. 
During participation in the bridge to work program, an 
individual receiving EUC would: continue to receive EUC as 
wages for work performed for the participating employer; 
receive any augmented wages, if applicable, under subsection 
(e); and could be paid compensation by a participating employer 
or by a State that is in addition to EUC and augmented wages 
paid.
    Subsection (c) establishes program and eligibility 
requirements. Under this provision, an individual would be paid 
EUC from his or her EUC account as wages during the bridge to 
work program. Bridge to work wages are to be paid in the same 
amount as EUC; however, some EUC requirements would not apply, 
specifically, requirements with respect to work search and 
disqualifying income would not apply, as long as a 
participating individual works at least 25 hours.
    Subsection (c) further provides that State limitations or 
prohibitions on the work status of an EUC claimant shall not 
render the individual ineligible to participate in, or receive 
wages from, the bridge to work program. A participating 
individual would be permitted to accept an offer of long-term 
employment from a participating employer that commences after 
the conclusion of the bridge to work program, and this 
acceptance would not render such individual ineligible to 
participate in, or receive wages from, the program.
    Subsection (c) would also require a State to structure the 
program so that bridge to work placements could last for up to 
8 weeks and could provide an individual who voluntarily 
participates in the program with up to 38 hours of work 
experience per week with an eligible employer. Additionally, 
this subsection would require that the State ensure that all 
bridge to work participants are covered by a workers' 
compensation insurance program, and that the State meets other 
requirements as may be established by the Secretary of Labor.
    Subsection (d) would establish eligibility requirements for 
employers wishing to participate in the program. Specifically, 
subsection (d) would provide that an employer is not eligible 
for the bridge to work program if the employer is: a Federal, 
State, or local government entity; would provide work relating 
to government contracts and grants (other than supply 
contracts); is delinquent on any Federal unemployment insurance 
tax or State contribution obligations, or related reporting 
requirements; is engaged in the business of supplying workers 
to other employers and would participate in the program to 
supply participating individuals to other employers; or has 
previously failed to meet program requirements. In addition, 
the employer must provide assurances that it has not displaced 
existing workers.
    Subsection (d) would also require that States use allotted 
funds to: recruit employers for participation in the program; 
review and certify employers identified by eligible individuals 
seeking to participate in the program; ensure that reemployment 
and counseling services are made available to program 
participants; establish and implement processes to monitor the 
progress and performance of individual participants for the 
duration of the program; prevent misuse of the program; and pay 
augmented wages under subsection (e) to eligible individuals, 
if necessary.
    Finally, subsection (d) would permit States to use allotted 
funds to pay workers' compensation insurance premiums to cover 
all individuals participating in the program through a State 
administered workers' compensation program, except that a State 
could choose another method of providing this coverage, which 
the State would have to describe in the approved State plan. 
The State also could use allotted funds: to pay compensation to 
participating individuals that is in addition to EUC and 
augmented wages paid; to provide supportive services, such as 
transportation, child care, and dependent care, which would 
enable individuals to participate in the program; to administer 
and oversee the program; and to fulfill additional program 
requirements included in the approved State plan.
    Subsection (e) would require that, to the degree EUC 
payments are insufficient to meet minimum wage thresholds under 
the Fair Labor Standards Act of 1938, or any applicable State 
or local laws (whichever is higher), the State would be 
required to augment a bridge to work participant's wages by the 
amount necessary to meet the applicable minimum wage.
    Subsection (f) would specify that neither the emergency 
unemployment compensation paid as wages, nor the augmented 
wages received by a program participant, could be treated as 
income for Federal needs-based programs.
    Subsection (g) would prohibit any wages or participation 
relating to the bridge to work program from being considered as 
factors that render an individual ineligible for emergency 
unemployment compensation.
    Subsection (h) would prohibit a participating employer 
from: displacing current employees with a program participant. 
In addition, an employer could not permit a program participant 
to perform work activities relating to any job for which any 
other individual is on layoff, a current worker was terminated, 
there is a strike or lockout at the workplace, or for which the 
job would infringe on a current worker's promotional 
opportunities.
    Subsection (i) would provide that work activities under the 
program also could not impair a contract for services or a 
collective bargaining agreement without the concurrence of the 
relevant labor organization.
    Subsection (j) would place certain limits on employer 
participation. Specifically, if, after 24 weeks an employer has 
not provided an offer of suitable employment to any individual 
who has participated in the program with the employer, the 
State would be required to bar the employer from further 
participation. In addition, States would be permitted to impose 
additional conditions on participating employers to ensure that 
an appropriate number of participants receive offers of 
suitable long term employment.
    Subsection (k) would permit a State to bar an employer from 
further participation if the State receives information or, 
through its oversight and administration of the program, 
determines that the employer has violated a requirement or a 
prohibition relating to the program. Subsection (k) also would 
require a participating State to establish a process whereby a 
participating individual may file a complaint with the State 
relating to any violation of a requirement or prohibition under 
this section.
    Subsection (l) would provide that an eligible individual's 
participation in the program is voluntary, and may be 
terminated by the individual or the participating employer. If 
a bridge to work participant opts to discontinue participation 
in the program, or is terminated by the employer, the 
individual would potentially remain eligible for continued 
receipt of emergency unemployment compensation under the terms 
of the applicable law, as long as amounts remain available in 
such individual's emergency unemployment compensation account.
    Subsection (m) provides that nothing in this section is to 
be construed to alter or affect the rights or obligations under 
any Federal, State, or local laws that apply to individual 
participants and to employer participants under the program.
    Subsection (n) provides that all wages and other payments 
to participating individuals under this section would be 
treated as payments of unemployment insurance for purposes of 
section 209 of the Social Security Act, subtitle A of the 
Internal Revenue Code of 1986, and sections 3101 and 3111 of 
such Code.
    Section 325--Wage Insurance. This section generally 
provides for a wage insurance program. Subsection (a) would 
permit a State to use Reemployment NOW funds to establish a 
wage insurance program in the State for EUC claimants. 
Subsection (b) provides that the State may make payments to EUC 
claimants who obtain reemployment that pays less than the 
employment from which the claimant was separated. The amount of 
the payments could be up to 50 percent of the difference 
between the reemployment wages and the wages at separation, and 
such payments could last for a period of up to 2 years. 
Subsection (c) provides that in order to be eligible for wage 
insurance payments, the EUC claimant must be at least 50 years 
of age, earn not more than $50,000 in wages from reemployment, 
be reemployed on a full-time basis, and not be reemployed by 
the same employer from which the claimant was laid off. 
Subsection (d) provides that the State is to establish a 
maximum amount that an eligible individual may receive under 
the program. Subsection (e) requires that the employer who 
provides the reemployment is to pay the eligible individual the 
same wages as regular workers in the same or substantially 
equivalent position.
    Section 326--Enhanced Reemployment Strategies. This section 
would permit a State to use allotted Reemployment NOW funds to 
provide EUC claimants with enhanced reemployment services. A 
State also could opt to provide individuals who have exhausted 
their right to EUC, and who remain unemployed, with such 
services. Subsection (a) would require that the services 
offered under any such program must be more intensive than the 
reemployment services previously provided by the State.
    Subsection (b) provides that services that qualify as 
enhanced reemployment services include: 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 the EUC claimant and individuals who have 
exhausted their right to EUC and who remain unemployed; 
comprehensive assessments designed to identify alternative 
career paths; case management; reemployment services that are 
provided more frequently and more intensively than those 
previously offered by the State; and services that are designed 
to enhance communication skills, interviewing skills, and other 
skills that would assist in obtaining reemployment.
    Section 327--Self-Employment Programs. This section would 
authorize a State to use allotted Reemployment NOW funds for 
administrative costs related to the start-up of a self-
employment assistance program. The amount of any funds a State 
intends to use for such costs must be specified in the State's 
approved State plan.
    Section 328--Additional Innovative Programs. Subsection (a) 
would permit the Secretary of Labor to authorize a State to use 
allotted Reemployment NOW funds for other innovative activities 
designed to facilitate the reemployment of EUC claimants. The 
State also could opt to provide such activities to individuals 
who have exhausted their right to EUC and who remain 
unemployed.
    Subsection (b) would require that innovative activities 
directly benefit EUC claimants. In addition, subsection (b) 
provides that approved innovative activities shall not: (1) 
result in a reduction in the duration or amount of emergency 
unemployment compensation for which EUC claimants would 
otherwise be eligible; (2) include a reduction in the duration, 
amount of or eligibility for regular compensation or extended 
benefits; (3) be used to displace any currently employed 
employee; (4) allow a program participant to perform work 
activities related to any job that meets certain enumerated 
criteria; or (5) violate of any State, local or Federal law.
    Section 329--Guidance and Additional Requirements. This 
section would grant the Secretary of Labor the authority to 
issue guidance establishing such additional requirements as the 
Secretary determines to be necessary to ensure fiscal 
integrity, effective monitoring, and appropriate and prompt 
implementation of the activities under the Act. The guidance 
may include reporting requirements on employment outcomes.
    Section 330--Report of Information and Evaluations to 
Congress and the Public. This section would require the 
Secretary of Labor to provide the appropriate Congressional 
Committees with information reported pursuant to section 209 
and the evaluations of activities carried out pursuant to the 
funds reserved under section 202(a)(1). This section would also 
require that the Secretary of Labor make the information and 
evaluations available to the public.
    Section 331--State. This section defines the term State for 
purposes of this part.

Part III--Short-Time Compensation Program

    This subtitle provides clarification for short-time 
compensation programs.
    Section 341--Treatment of Short-Time Compensation Programs. 
This section would generally make clear that the requirements 
relating to short-time compensation (STC or ``worksharing'') 
programs under the Internal Revenue Code and the Social 
Security Act. Under STC programs, employers reduce the workweek 
of their employees in lieu of temporary layoffs and the 
affected employees receive a pro-rated share of their weekly 
benefit amount for the period not worked.
    Section 342--Temporary Financing of Short-Time Compensation 
Payments in States With Programs in Law. This section provides 
States with temporary Federal financing of 100 percent of STC 
benefits paid to individual workers for up to 26 weeks. 
Payments are available to the State for no more than 156 weeks 
(3 years) under either Section 302 or 303.
    Section 343--Temporary Financing of Short-Time Compensation 
Agreements. This section provides that any State without an STC 
program may enter into an agreement with the Secretary of Labor 
and receive one-half of the STC paid by the State. States may 
receive payments for a total of not more than 104 weeks (2 
years). Under a special rule, if a State enacts a law providing 
for payment of STC, the State shall be eligible to receive 
payments for 100 percent of the costs after the effective date 
of the State law.
    Section 344--Grants for Short-Time Compensation Programs. 
This section requires the Secretary to award grants to States 
that enact STC programs. One-third of each State's grant shall 
be available for the purposes of implementation and improved 
administration, and two-thirds shall be available for promotion 
of the programs and enrollment of employers. The maximum amount 
of all grants is $700 million.
    Section 345--Assistance and Guidance in Implementing 
Programs. This section requires the Secretary to develop for 
State's use model legislative language for STC, provide 
technical assistance to the States, and establish reporting 
requirements, including the number of averted layoffs, the 
number of participating employers and workers, and other items 
the Secretary determines are appropriate. The section also 
would require the Secretary to consult with employers, labor 
organizations, state workforce agencies and other experts in 
developing model STC legislative language.
    Section 346--Reports. This section requires the Secretary 
to submit to Congress and to the President reports on the 
implementation of the Act, including a description of best 
practices, analysis of significant challenges, and surveys of 
employers in states without STC programs to determine level of 
interest. The section also provides $1.5 million for this 
purpose.

          SUBTITLE B--LONG-TERM UNEMPLOYED HIRING PREFERENCES

    Section 351--Long Term Unemployed Workers Work Opportunity 
Tax Credits. This section makes employers eligible for a 
maximum tax credit of $4,000 if they hire individuals who have 
been unemployed for at least 6 months. This credit is also made 
available to tax-exempt entities and public universities. 
Finally, this section authorizes the Secretary of the Treasury 
to provide alternative methods for certifying an individual's 
unemployed status.

                   SUBTITLE C--PATHWAYS BACK TO WORK

    The ``Pathways Back to Work Act of 2011'' would establish a 
$5 billion fund to support subsidized employment opportunities, 
summer and year-round youth employment, and work-based training 
and education programs for unemployed, low-income adults and 
low-income youth.
    Section 361--Short Title. This section provides that this 
subtitle may be cited as the ``Pathways Back to Work Act of 
2011''.
    Section 362--Establishment of Pathways Back to Work Fund. 
This section would establish the Pathways Back to Work Fund 
(the Fund) and appropriates $5 billion to the Fund for the 
Secretary of Labor to carry out the Act.
    Section 363--Availability of Funds. This section would 
direct the Secretary of Labor (the Secretary) to use the $5 
billion in the Fund as follows: $2 billion would be available 
for subsidized employment for unemployed, low-income adults; 
$1.5 billion would be available to provide summer and year-
round employment opportunities to low-income youth; and $1.5 
billion would be available for competitive grants to local 
entities to carry out work-based training for unemployed, low-
income adults and low-income youth. The Secretary is authorized 
to reserve up to 1 percent of funding for technical assistance, 
evaluations, and Federal administration. The funds would be 
available for obligation by the Secretary of Labor through 
December 31, 2012, and for available for expenditure by 
grantees and subgrantees through September 30, 2013.
    Section 364--Subsidized Employment for Unemployed, Low-
Income Adults. This section describes how the $2 billion of 
funding for subsidized employment for unemployed, low-income 
adults would be allotted and administered. Under subsection 
(a), the Secretary would be required, not later than 30 days 
after the enactment of the Act, to issue guidance relating to 
the implementation of this section. The guidance would be 
issued in coordination with the Secretary of Health and Human 
Services, and consistent with the specified requirements in the 
Act, address procedures to promote the expeditious and 
effective implementation of the activities.
    Subsection (b) describes the allotment of funds. The 
Secretary would reserve 0.25 percent for outlying areas and 1.5 
percent for Native American programs, and then allot the 
remainder by formula to States that submit plans which are 
approved by the Secretary. Two-thirds of the formula would be 
based on measures of a State's relative share of unemployed 
individuals and one-third would be based on the relative share 
of disadvantaged individuals. States that do not submit a plan, 
or do not have a plan approved, would have their share of 
funding reallotted to the portion of the Fund used for 
competitive grants to local areas for work-based training.
    Subsection (c) contains the requirements for the State 
plan. The State plan is to include a description of: the 
strategies and activities to be carried out, in coordination 
with employers, to provide subsidized employment opportunities; 
the requirements relating to the eligibility of unemployed, 
low-income adults, including the targeting of assistance to 
categories within that group, such as individuals with 
disabilities and individuals who have exhausted all rights to 
unemployment compensation; the administration of activities at 
the State and local levels; performance outcomes to be 
achieved; coordination with activities funded under WIA, TANF, 
and other programs; timelines for implementation and the number 
of participants expected to be placed in subsidized employment; 
assurances regarding the reporting of information to the 
Secretary; and assurances regarding compliance with labor 
standards and protections.
    The State plan may be submitted in conjunction with the 
request for funds to serve low-income youth under section 365 
or as a modification to the WIA plan. The plan must be 
submitted within 75 days after enactment, and a determination 
regarding approval or disapproval made by the Secretary of 
Labor within 45 days after submission. The Secretary is to 
approve plans that the Secretary determines are consistent with 
the requirements of the section and reasonably appropriate and 
adequate to carry out the purposes of this section.
    Under subsection (d), States would have the option to 
administer the subsidized employment program through local 
entities responsible for the Workforce Investment Act (WIA) 
adult program, entities responsible for Temporary Assistance 
for Needy Families (TANF), or both in coordination. The States 
would allocate funding to local WIA entities that submit plans 
which are approved by the Governor by formula (using the same 
factors as the State formula), or to TANF agencies by any 
method a State determines is appropriate.
    The local plans from the WIA entities are to be submitted 
within 30 days of the submission of the State plan and may be 
submitted as a modification of the local WIA plan. The plan 
would contain the elements required in the State plan. The 
Governor is to approve or disapprove the plan within 30 days, 
and if approved, allocate funds to the local areas within 30 
days after approval.
    The State would reallocate funding from local WIA entities 
that do not submit or have an approved plan to other local 
areas. States would reserve up to 5 percent of funds for 
administration and technical assistance, and local WIA areas 
would be permitted to use up to 10 percent of their funding for 
administrative costs.
    Under subsection (e), funds would be used to provide 
subsidized employment to unemployed, low-income adults, with a 
priority for opportunities likely to lead to unsubsidized 
employment. The funds could also be used to provide support 
services that enable participation in subsidized employment. 
The States or local entities administering the program may, in 
accordance with guidance issued by the Secretary, determine the 
percentage of the wages and costs of employing a participant 
for which an employer will receive a subsidy, and the duration 
of the subsidy.
    Section 365--Summer Employment and Year-Round Employment 
Opportunities for Low-Income Youth. This section describes how 
the $1.5 billion from the Fund for summer jobs and year-round 
employment opportunities for low-income youth is to be allotted 
and administered. Subsection (a) authorizes the allotments. 
Subsection (b) requires the Secretary of Labor to issue 
guidance regarding the implementation of this section not later 
than 20 days after the date the Act is enacted. That subsection 
also provides that except as otherwise provided in guidance or 
in this section, the activities are to be administered in 
accordance with the youth formula program under title I of WIA. 
Subsection (c) provides for State allotments. After a 
reservation of not more than 0.25 percent for outlying areas 
and 1.5 percent for Indian and Native American grantees, the 
Secretary of Labor would allot funds among States in accordance 
with the same formula (based on relative unemployment and the 
number of disadvantaged individuals) that is used under section 
364.
    Subsection (d) provides that for a State to be eligible to 
receive funds under this section, the State must submit a State 
plan modification to its WIA plan or other request in a form 
specified by the Secretary in guidance. The plan modification 
or request is to include: the strategies and activities to 
provide summer employment opportunities and year-round 
employment opportunities for low-income youth, including 
linkages to educational activities; the requirements relating 
to eligibility and targeting of assistance among low-income 
youth; performance outcomes; timelines for implementation and 
the number of youth expected to be placed in employment 
opportunities; assurances regarding reporting to the Secretary; 
and assurances regarding compliance with labor standards.
    The State plan modification or request is to be submitted 
within 30 days of the issuance of guidance by the Secretary. 
The Secretary is then to approve the State plan modification or 
request unless it is inconsistent with the requirements of this 
section. The funds are to be allotted within 30 days after the 
Secretary approves the plan.
    Subsection (e) relates to within-State allocation and 
administration of funds. The State may reserve up to 5 percent 
of the funds for administration and technical assistance and is 
to allocate the remainder to local workforce investment areas 
in accordance with the same formula factors used to allot funds 
among States. To be eligible for an allocation, the local 
workforce investment boards must submit to the Governor a local 
plan modification (or other form of request specified in 
guidance issued by the Secretary), describing the strategies 
and activities to be carried out under this section. The 
Governor is to approve the plan modification or request within 
30 days of submission if it is not inconsistent with the 
requirements of this section, and allocate the funds within 30 
days of approval. If a local area does not submit a plan or its 
plan is not approved, the Governor may recapture and reallocate 
the funds to the other local areas in the State according to 
their relative shares under the formula.
    Subsection (f) relates to the use of funds. The local areas 
are to provide summer employment opportunities with direct 
linkages to academic and occupational learning to low-income 
youth ages 16-24. In addition, the local area is to provide 
year-round employment opportunities, which may be combined with 
other activities, to low-income youth with a priority to out-
of-school youth who are high school dropouts or basic skills 
deficient and unemployed or underemployed. In identifying 
employment opportunities, priority is to be given to emerging 
or in-demand occupations or in the public or nonprofit sector 
that meet community needs. The local areas must also give 
priority to linking year-round program participants to training 
and educational activities that will provide an industry-
recognized certificate or credential.
    Section 366--Work-Based Employment Strategies of 
Demonstrated Effectiveness. This section describes how the $1.5 
billion from the Fund for competitive grants to local areas to 
provide work-based training would be administered. Subsection 
(a) authorizes the Secretary of Labor to competitively award 
grants to eligible entities to support strategies and 
activities of demonstrated effectiveness.
    Under subsection (b), these strategies and activities are 
to be designed to provide unemployed, low-income adults or low-
income youth with skills that will lead to employment upon 
completion of the activities. These activities may include: on-
the-job training, registered apprenticeship programs, or other 
programs that combine work with skills development; sector-
based training programs that are designed to meet specific 
needs of employers or include a significant work experience 
component; acquisition of industry-recognized credentials in a 
growth sector or demand industry; connections to immediate work 
opportunities that includes concurrent skills training and 
other supports; career academies that include paid internships 
and concurrent enrollment in community colleges; and integrated 
basic education and training for low-skilled adults.
    Subsection (c) describes the eligible entities that may 
apply for the competitive grants. These entities would include 
a local chief elected official, in collaboration with the local 
workforce investment board (or a partnership of such officials 
and boards from a region or State), or an entity eligible to 
apply for an Indian and Native American grant under section 166 
of the WIA. These officials, boards and entities would be able 
to partner with a variety of other organizations, including 
employers and employer associations, community colleges and 
other postsecondary and adult education institutions; 
community-based organizations; joint labor-management 
committees; and work-related intermediaries.
    Subsection (d) relates to the application for funds. At a 
minimum, the application is to include the strategies and 
activities that will be used to provide unemployed, low-income 
adults or low-income youth with the skills needed for 
employment; target populations within those categories, such as 
individuals with disabilities and individuals who have 
exhausted all rights to unemployment compensation; how the 
activities will address the needs of the target populations and 
employers in the local area; expected outcomes; evidence that 
the funds may be expended expeditiously; coordination with 
other programs; evidence of employer commitment to participate, 
including identification of anticipated occupational and skill 
needs; and assurances regarding reporting and labor standards 
and protections.
    Subsection (e) provides that in awarding grants, the 
Secretary would give priority to grant applicants from areas of 
high poverty and high unemployment, including Public Use 
Microdata Areas (PUMAs).
    Subsection (f) provides that the Secretary of Labor would 
administer this section in coordination with the Secretary of 
Education, Secretary of Health and Human Services, and other 
appropriate agency heads.
    Section 367--General Requirements. This section contains 
general requirements applicable to all of the activities 
carried out under the Fund. Under subsection (a), the labor 
standards and protections and nondiscrimination requirements 
specified under WIA would apply to activities carried out under 
this Act, in addition to other Federal laws.
    Under subsection (b), the Secretary of Labor is to require 
funding recipients to report fiscal, performance, and other 
information, and would require several minimum reporting 
elements, including: the number and demographic characteristics 
of participants; the amount of fund expenditures; the number of 
jobs created; and specified participant outcomes.
    Under subsection (c), funds provided under this Act may 
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.
    Under subsection (d), the Secretary of Labor may establish 
additional requirements to ensure the appropriate and prompt 
implementation of this Act.
    Under subsection (e), the Secretary of Labor is to report 
performance information and evaluation results to Congress and 
the public.
    Section 368--Definitions. This section would establish 
definitions for the following terms which are used in the Act: 
local chief elected official; local workforce investment area; 
local workforce investment board; low-income youth; outlying 
area; unemployed, low-income adult; and State.

SUBTITLE D--PROHIBITION OF DISCRIMINATION IN EMPLOYMENT ON THE BASIS OF 
                  AN INDIVIDUAL'S STATUS AS UNEMPLOYED

    Section 371--Short Title. This section provides that this 
subtitle may be cited as the ``Fair Employment Opportunity Act 
of 2011.''
    Section 372--Findings and Purpose. This section sets forth 
Congress's findings and the purposes of the Act. Subsection (a) 
states that Congress has found that the denial of employment 
opportunities to individuals because they are currently 
unemployed is discriminatory and burdens commerce in ways 
explained in subsections of this Section. Subsections (a)(1)-
(5) describe the burdens on commerce imposed by denial of 
employment opportunities to individuals who are currently 
unemployed. Those burdens include: (1) reducing personal 
consumption and undermining economic stability; (2) squandering 
essential human capital; (3) increasing demands for 
unemployment insurance, reducing trust fund assets, and raising 
payroll taxes for employers and/or cutting benefits for jobless 
workers; (4) imposing additional burdens on publicly funded 
health and welfare programs; and (5) depressing income and 
other tax revenues that governments rely on to support 
operations and institutions essential to commerce.
    Subsection (b) sets out the purposes of the Act. Subsection 
(b)(1) states that the Act is intended to prohibit employers 
and employment agencies from disqualifying an individual from 
employment opportunities because of that individual's status as 
unemployed. Subsection (b)(2) states that the Act is intended 
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 the individual for the opportunity. 
Subsection (b)(3) states that the Act is intended to eliminate 
the burdens on commerce caused by the exclusion of such 
individuals from employment.
    Section 373--Definitions. Subsection (1) defines ``affected 
individual'' to mean any person who was subject to an unlawful 
employment practice because of his or her status as unemployed.
    Subsection (2) states that ``Commission'' means the Equal 
Employment Opportunity Commission.
    Subsection (3) defines ``employee'' to include employees 
covered under Section 701(f) of the Civil Rights Act of 1964; 
State employees covered by Section 302(a)(1) of the Government 
Employee Rights Act of 1991; covered employees as defined in 
Section 101 of the Congressional Accountability Act of 1995; or 
employees or applicants covered by Section 717(a) of the Civil 
Rights Act of 1964.
    Subsection (4) defines ``employer'' to mean a person 
engaged in an industry affecting commerce 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. This subsection excludes from the definition 
of ``employer'' a bona fide private membership club that is 
exempt from taxation under Section 501(c) of the Internal 
Revenue Code of 1986. The subsection further defines 
``employer'' to mean an employing authority to which Section 
302(a)(1) of the Government Employee Rights Act of 1991 
applies; 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 an entity to which Section 
717(a) of the Civil Rights Act of 1964 applies.
    Subsection (5) defines ``employment agency'' to mean any 
person that regularly undertakes, with or without compensation, 
to procure employees for an employer or to procure for 
individuals opportunities to work as employees of an employer 
and includes an agent of such a person. Subsection (5) further 
defines ``employment agency'' to mean any person who maintains 
a website or print medium that publishes advertisements or 
announcements of openings in jobs for employees.
    Subsection (6) states that the term ``person'' has the 
meaning given that term in Section 701(a) of the Civil Rights 
Act of 1964.
    Subsection (7) defines ``status as unemployed'' to mean, 
with respect to an individual, 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.
    Section 374--Prohibited Acts. This section sets forth the 
actions that the Act prohibits employers and employment 
agencies from taking. Subsection (a) describes unlawful 
employment practices by an employer. Subsection (a)(1) states 
that it shall be an unlawful employment practice for an 
employer to publish, in print, on the Internet, or in any 
medium, an advertisement or announcement for a job that 
includes any provision stating or indicating that an 
individual's status as unemployed disqualifies the individual 
for any employment opportunity. The subsection also bars any 
provision stating or indicating that an employer will not 
consider or hire an individual based on that individual's 
status as unemployed.
    Subsection (a)(2) states that it shall be an unlawful 
employment practice for an employer to 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.
    Subsection (a)(3) states that it shall be an unlawful 
employment practice for an employer to 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.
    Subsection (b) describes unlawful employment practices by 
an employment agency. Subsection (b)(1) states that it shall be 
an unlawful employment practice for an employment agency to 
publish, in print, on the Internet, or in any medium, an 
advertisement or announcement for a job that includes any 
provision stating or indicating that an individual's status as 
unemployed disqualifies the individual for any employment 
opportunity. The subsection also bars any provision stating or 
indicating that an employer or an employment agency will not 
consider or hire an individual based on that individual's 
status as unemployed.
    Subsection (b)(2) bars employment agencies from screening, 
failing or refusing to consider or refer an individual for 
employment as an employee because of the individual's status as 
unemployed.
    Subsection (b)(3) prohibits an employment agency from 
limiting, segregating or classifying individuals in any manner 
that would limit or tend to limit their access to information 
about jobs or consideration, screening or referral for jobs as 
employees, because of their status as unemployed.
    Subsection (c) bars interference with rights, proceedings 
and inquiries under the Act and makes it unlawful for any 
employer or employment agency to: interfere with, restrain, or 
deny the exercise of or the attempt to exercise, any right 
provided under the Act. The subsection further bars any 
employer or employment agency from failing or refusing to hire, 
discharging, or otherwise discriminating against any 
individual, as an employee, because the individual opposed 
practices made unlawful by the Act; asserted any right, filed 
any charge, or instituted any proceeding under or related to 
the Act; gave (or is about to give) any information, or 
testified (or is about to testify) in connection with any 
inquiry or proceeding related to any right provided under the 
Act.
    Subsection (d) sets forth a rule of construction that 
nothing in the Act is intended to preclude an employer or 
employment agency from considering an individual's employment 
history or examining the reasons underlying an individual's 
status as unemployed in assessing the individual's ability to 
perform the job or otherwise making employment decisions about 
the individual. The subsection further states that 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 and consistent 
with business necessity.
    Section 375--Enforcement. Subsection (a) sets out the 
powers provided to different entities to administer and enforce 
the Act. Subsection (a) states that the Equal Employment 
Opportunity Commission; the Librarian of Congress; the Board as 
defined in Section 101 of the Congressional Accountability Act; 
the Attorney General; the President, the Commission and the 
Merit Systems Protection Board; and the courts of the United 
States shall have the same powers under the Act as each entity 
does under other non-discrimination statutes each enforces when 
addressing the case of an affected individual who would be 
covered by such statutes.
    Subsection (b) describes the procedures applicable to a 
claim alleged by an individual for a violation of the Act. 
Those procedures are the procedures that apply for a violation 
of Title VII of the Civil Rights Act of 1964 in the case of a 
claim alleged by the individual for a violation of that title; 
those that are applicable for a violation of Section 302(a)(1) 
of the Government Employee Rights Act of 1991 in the case of a 
claim alleged by the individual for a violation of such 
section; the procedures applicable for a violation of Section 
201(a)(1) or the Congressional Accountability Act of 1995 in 
the case of a claim alleged by the individual for a violation 
of such section; and the procedures applicable for a violation 
of Section 411 of Title 3, United States Code, in the case of a 
claim alleged by the individual for a violation of such 
section.
    Subsection (c)(1) identifies the remedies available for a 
violation of section 374(a)(1) or 374(b)(1) of the Act: (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) 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 pursuit of a claim under the Act, except 
that no person identified in Section 375(a) of the Act is 
eligible to receive attorney's fees.
    Subsection (c)(2) identifies the remedies available for a 
violation of any other subsection of the Act as available under 
other existing law, 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. Those remedies are the 
remedies available for a violation of Title VII of the Civil 
Rights Act of 1964 in the case of a claim alleged by the 
individual for a violation of that title; those that are 
applicable for a violation of Section 302(a)(1) of the 
Government Employee Rights Act of 1991 in the case of a claim 
alleged by the individual for a violation of such section; 
those that are applicable for a violation of Section 201(a)(1) 
or the Congressional Accountability Act of 1995 in the case of 
a claim alleged by the individual for a violation of such 
section; and those that are applicable for a violation of 
Section 411 of Title 3, United States Code, in the case of a 
claim alleged by the individual for a violation of such 
section.
    Section 376--Federal and State Immunity. Subsection (a) 
states that a State shall not be immune under the 11th 
Amendment to the Constitution to suits brought in federal court 
challenging a violation of the Act.
    Subsection (b) states that a State's receipt or use of 
Federal financial assistance for any program or activity shall 
constitute a waiver of sovereign immunity to a suit brought by 
an employee or applicant for employment of that program or 
activity for a remedy authorized under the Act. Subsection (b) 
defines ``program or activity'' to have the meaning given the 
term in Section 606 of the Civil Rights Act of 1964 and 
provides that the waiver of sovereign immunity with respect to 
a program or activity applies to conduct occurring on or after 
the day, after the date of enactment of the Act, on which a 
State first receives or uses Federal financial assistance for 
the program or activity.
    Subsection (c) states that an official of a State may be 
sued in his official capacity by any employee or applicant for 
employment who has complied with the applicable procedures of 
the Act for a remedy authorized under the Act.
    Subsection (d) states that in an action or administrative 
proceeding against the United States or a State for a violation 
of the Act, remedies are available to the same extent as such 
remedies would be available against a non-governmental entity.
    Section 377--Relationship to Other Laws. This section 
states that the Act does 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.
    Section 378--Severability. This section states that if any 
provision of the Act, or application of the provision to any 
person or circumstance, is held to be invalid, the remainder of 
the Act and the application of the provision to other persons 
or circumstances shall not be affected.
    Section 379--Effective Date. This section states that the 
Act shall take effect on the date of enactment and shall not 
apply to conduct occurring before the effective date.

                           TITLE IV--OFFSETS

    The following subtitles raise revenue to support the hiring 
incentives and important tax relief provided by the American 
Jobs Act to American taxpayers.

 SUBTITLE A--28 PERCENT LIMITATION ON CERTAIN DEDUCTIONS AND EXCLUSIONS

    Section 401--28 Percent Limitation on Certain Deductions 
and Exclusions. This section would limit the value of all 
itemized deductions and certain other tax expenditures for 
high-income taxpayers by limiting the tax value of otherwise 
allowable deductions and exclusions to 28 percent. No taxpayer 
with adjusted gross income under $250,000 for married couples 
filing jointly (or $200,000 for single taxpayers) would be 
subject to this limitation. The limitation would affect 
itemized deductions and certain other tax expenditures that 
would otherwise reduce taxable income in the 36 or 39.6 percent 
tax brackets. A similar limitation also would apply under the 
alternative minimum tax. This section would be effective for 
taxable years beginning on or after January 1, 2013.

SUBTITLE B--TAX CARRIED INTEREST IN INVESTMENT PARTNERSHIPS AS ORDINARY 
                                 INCOME

    Section 411--Partnership Interests Transferred in 
Connection With Performance of Services. Current law allows 
service partners to receive capital gains treatment on labor 
income without limit, which creates an unfair and inefficient 
tax preference. This section would tax as ordinary income, and 
make subject to self-employment tax, a service partner's share 
of the income of an investment partnership attributable to a 
carried interest because such income is derived from the 
performance of services.
    Section 412--Special Rules for Partners Providing 
Investment Management Services to Partnerships. To the extent 
that a service partner contributes ``invested capital'' and the 
partnership reasonably allocates its income and loss between 
such invested capital and the remaining interest, income 
attributable to the invested capital would not be 
recharacterized. This subtitle would be effective for taxable 
years beginning after December 31, 2012.

       SUBTITLE C--CLOSE LOOPHOLE FOR CORPORATE JET DEPRECIATION

    Section 421--General Aviation Aircraft Treated as 7-Year 
Property. The cost of capital assets used in businesses 
generally cannot be deducted immediately, but instead may be 
depreciated over a period of years. Current law contains a 
loophole that allows corporate jets to be depreciated faster 
than jets used by airlines to carry passengers. This section 
closes this loophole, requiring corporate jets to be 
depreciated over the same number of years as other aircraft. 
This section would be effective for taxable years beginning 
after December 31, 2012.

                    SUBTITLE D--REPEAL OIL SUBSIDIES

    Section 431--Repeal of Deduction for Intangible Drilling 
and Development Costs in the Case of Oil and Gas Wells. This 
section would not allow expensing of IDCs or 60-month 
amortization of capitalized IDCs. Instead, IDCs would be 
capitalized as depreciable or depletable property, depending on 
the nature of the cost incurred, in accordance with generally 
applicable rules. This section would repeal current law 
expensing of IDCs and 60-month amortization of capitalized IDCs 
effective for costs paid or incurred after December 31, 2012.
    Section 432--Repeal of Deduction for Tertiary Injectants. 
This section would repeal the deduction available under 
existing law for the cost of qualified tertiary injectant 
expenses. Qualified tertiary injectant expenses are amounts 
paid or incurred for any tertiary injectants (other than 
recoverable hydrocarbon injectants) that are used as a part of 
a tertiary recovery method to increase the recovery of crude 
oil. This section would repeal the deduction for qualified 
tertiary injectant expenses effective for amounts paid or 
incurred after December 31, 2012.
    Section 433--Repeal of Percentage Depletion for Oil and Gas 
Wells. This section would repeal the percentage depletion 
method available under existing law for recovery of the capital 
costs of oil and gas wells. Under the percentage depletion 
method, the amount of the deduction is a statutory percentage 
of the gross income from the property. Instead of the 
percentage depletion method, taxpayers would be permitted to 
claim cost depletion on their adjusted basis, if any, in oil 
and gas wells. Under the cost depletion method, the basis 
recovery for a taxable year is proportional to the exhaustion 
of the property during the year. This method does not permit 
cost recovery deductions that exceed basis or that are 
allowable on an accelerated basis. This section would be 
effective for taxable years beginning after December 31, 2012.
    Section 434--Section 199 Deduction Not Allowed With Respect 
to Oil, Natural Gas, or Primary Products Thereof. This section 
would deny the deduction available under existing law with 
respect to income attributable to domestic production 
activities (the manufacturing deduction) for oil and gas 
production. For taxable years beginning after 2009, the 
manufacturing deduction is generally equal to 9 percent of the 
lesser of qualified production activities income for the 
taxable year or taxable income for the taxable year, limited to 
50 percent of the W-2 wages of the taxpayer for the taxable 
year. The deduction for income from oil and gas production 
activities is computed at a 6 percent rate. Qualified 
production activities income is generally calculated as a 
taxpayer's domestic production gross receipts minus the cost of 
goods sold and other expenses, losses, or deductions 
attributable to such receipts. The manufacturing deduction 
generally is available to all taxpayers that generate qualified 
production activities income, which under current law includes 
income from the sale, exchange or disposition of oil, natural 
gas or primary products thereof produced in the United States. 
The proposal would retain the overall manufacturing deduction, 
but exclude from the definition of domestic production gross 
receipts all gross receipts derived from the sale, exchange or 
other disposition of oil, natural gas or a primary product 
thereof. This section would be effective for taxable years 
beginning after December 31, 2012.
    Section 435--Repeal Oil and Gas Working Interest Exception 
to Passive Activity Rules. This section would repeal the 
exception under existing law for oil and gas working interests 
from the passive loss rules that limit deductions and credits 
from passive trade or business activities. Deductions 
attributable to passive activities, to the extent they exceed 
income from passive activities, generally may not be deducted 
against other income, such as wages, portfolio income, or 
business income that is not derived from a passive activity. A 
similar rule applies to credits. Suspended deductions and 
credits are carried forward and treated as deductions and 
credits from passive activities in the next year. The suspended 
losses and credits from a passive activity are allowed in full 
when the taxpayer completely disposes of the activity. Passive 
activities are defined to include trade or business activities 
in which the taxpayer does not materially participate. Under 
existing law, an exception is provided, however, for any 
working interest in an oil or gas property that the taxpayer 
holds directly or through an entity that does not limit the 
liability of the taxpayer with respect to the interest. This 
section would repeal this exception for taxable years beginning 
after December 31, 2012.
    Section 436--Uniform Seven-Year Amortization for Geological 
and Geophysical Expenditures. Geological and geophysical 
expenditures are costs incurred for the purpose of obtaining 
and accumulating data that will serve as the basis for the 
acquisition and retention of mineral properties. Under existing 
law, the amortization period for geological and geophysical 
expenditures incurred in connection with oil and gas 
exploration in the United States is two years for independent 
producers and seven years for integrated oil and gas producers. 
The proposal would increase the amortization period from two 
years to seven years for geological and geophysical 
expenditures incurred by independent producers in connection 
with all oil and gas exploration in the United States. Seven-
year amortization would apply even if the property is abandoned 
and any remaining basis of the abandoned property would be 
recovered over the remainder of the seven-year period. This 
section would be effective for amounts paid or incurred after 
December 31, 2012.
    Section 437--Repeal Enhanced Oil Recovery (EOR) Credit. 
This section would repeal the 15-percent credit available under 
existing law for eligible costs attributable to EOR projects. 
Eligible costs currently include the cost of constructing a gas 
treatment plant to prepare Alaska natural gas for pipeline 
transportation and any of the following costs with respect to a 
qualified EOR project: (1) the cost of depreciable or 
amortizable tangible property that is an integral part of the 
project; (2) intangible drilling and development costs (IDCs) 
that the taxpayer can elect to deduct; and (3) deductible 
tertiary injectant costs. Additional limitations apply, and the 
allowable credit is phased out under existing law over a $6 
range for a taxable year if the annual average unregulated 
wellhead price per barrel of domestic crude oil during the 
calendar year preceding the calendar year in which the taxable 
year begins (the reference price) exceeds an inflation adjusted 
threshold. The repeal of the EOR credit would be effective for 
taxable years beginning after December 31, 2012.
    Section 438--Repeal Marginal Well Production Credit. This 
section would repeal the credit available under existing law 
for crude oil and natural gas produced from marginal wells. 
Under existing law, the credit rate is $3.00 per barrel of oil 
and 50 cents per 1,000 cubic feet of natural gas for taxable 
years beginning in 2005 and is adjusted for inflation in 
taxable years beginning after 2005. The credit can be carried 
back up to five years. The credit is available for production 
from wells that produce oil and gas qualifying as marginal 
production for purposes of the percentage depletion rules or 
that have average daily production of not more than 25 barrel-
of-oil equivalents and produce at least 95 percent water. The 
credit per well is limited to 1,095 barrels of oil or barrel-
of-oil equivalents per year. The credit rate for crude oil is 
phased out for a taxable year if the annual average unregulated 
wellhead price per barrel of domestic crude oil during the 
calendar year preceding the calendar year in which the taxable 
year begins (the reference price) exceeds the applicable 
threshold. The repeal of the marginal well credit would be 
effective for taxable years beginning after December 31, 2012.

                  SUBTITLE E--DUAL CAPACITY TAXPAYERS

    Section 441--Modifications of Foreign Tax Credit Rules 
Applicable to Dual Capacity Taxpayers. The purpose of the 
foreign tax credit is to mitigate double taxation of income by 
the United States and a foreign country. When a payment is made 
to a foreign country in exchange for a specific economic 
benefit, there is no double taxation. Current law recognizes 
the distinction between a payment of creditable taxes and a 
payment in exchange for a specific economic benefit but fails 
to achieve the appropriate split between the two when a single 
payment is made in a case where, for example, a foreign country 
imposes a levy only on oil and gas income, or imposes a higher 
levy on oil and gas income as compared to other income. This 
section would allow a dual capacity taxpayer to treat as a 
creditable tax the portion of a foreign levy that does not 
exceed the foreign levy that the taxpayer would pay if it were 
not a dual-capacity taxpayer.
    Section 442--Separate Basket Treatment Taxes Paid on 
Foreign Oil and Gas Income. This section would convert the 
special foreign tax credit limitation rules of section 907 into 
a separate category within section 904 for foreign oil and gas 
income. This section would yield to United States treaty 
obligations to the extent that they explicitly allow a credit 
for taxes paid or accrued on certain oil or gas income. This 
subtitle would be effective for taxable years beginning after 
December 31, 2012.

SUBTITLE F--INCREASED TARGET AND TRIGGER FOR JOINT SELECT COMMITTEE ON 
                           DEFICIT REDUCTION

    Section 451--Increased Target and Trigger for Joint Select 
Committee on Deficit Reduction. Subtitles A through E of Title 
IV of this bill enact offsets to pay for the jobs creation 
provisions of the bill. If the Joint Select Committee on 
Deficit Reduction achieves additional savings in the amount of 
the cost of these jobs creation provisions, the offsets do not 
take effect.
    Subsection (a) of Section 451 amends the Budget Control Act 
of 2011 to increase the $1.5 trillion deficit reduction target 
of the Joint Committee by the cost of the jobs creation 
provisions (Titles I-III). This increased amount would be 
revised based on the final score of the jobs provisions.
    Subsection (b) of Section 451 amends the Budget Control Act 
to specify that if the Joint Committee exceeds the $1.2 
trillion in deficit reduction necessary to avoid sequestration 
by the cost of the jobs creation provisions, then the offsets 
in Title IV of this bill will not take effect. As in subsection 
(a) of this section, this increased amount would be revised 
based on the final score of the jobs provisions (Titles I-III). 
Subsection (b) does not affect the existing requirement in the 
Budget Control Act for sequestration if the Joint Committee 
does not hit its minimum deficit reduction target of $1.2 
trillion.

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 unemployeed 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.
Sec. 379. Effective date.

                            TITLE IV--OFFSETS

 Subtitle A--28 Percent Limitation on Certain Deductions and Exclusions

Sec. 401. 28 percent limitation on certain deductions and exclusions.

Subtitle B--Tax Carried Interest in Investment Partnerships as Ordinary 
                                 Income

Sec. 411. Partnership interests transferred in connection with 
          performance of services.
Sec. 412. Special rules for partners providing investment management 
          services to partnerships.

        Subtitle C--Close Loophole for Corporate Jet Depreciation

Sec. 421. General aviation aircraft treated as 7-year property.

                    Subtitle D--Repeal Oil Subsidies

Sec. 431. Repeal of deduction for intangible drilling and development 
          costs in the case of oil and gas wells.
Sec. 432. Repeal of deduction for tertiary injectants.
Sec. 433. Repeal of percentage depletion for oil and gas wells.
Sec. 434. Section 199 deduction not allowed with respect to oil, natural 
          gas, or primary products thereof.
Sec. 435. Repeal oil and gas working interest exception to passive 
          activity rules.
Sec. 436. Uniform seven-year amortization for geological and geophysical 
          expenditures.
Sec. 437. Repeal enhanced oil recovery credit.
Sec. 438. Repeal marginal well production credit.

                   Subtitle E--Dual Capacity Taxpayers

Sec. 441. Modifications of foreign tax credit rules applicable to dual 
          capacity taxpayers.
Sec. 442. Separate basket treatment taxes paid on foreign oil and gas 
          income.

 Subtitle F--Increased Target and Trigger for Joint Select Committee on 
                            Deficit Reduction

Sec. 451. Increased target and trigger for joint select committee on 
          deficit reduction.

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 taxpayers 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 section (a)(1) or section (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;
            (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; limtation 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 section (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 section (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 Sates 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; and
                            (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 (Pub. L. 111-5, 123 Stat. 218-19), as amended 
        by section 1497(b)(2) of the Dodd-Frank Wall Street 
        Reform and Consumer Protection Act (Pub. L. 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 (Pub. L. 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 
Representative 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;
                    (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;
                            (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 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 security 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;
                    (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 paragraph (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 UNEMPLOYEED 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 Unemployeed 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 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 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 of 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 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 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; 
                        or
                            (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--OFFSETS

 Subtitle A--28 Percent Limitation on Certain Deductions and Exclusions

SEC. 401. 28 PERCENT LIMITATION ON CERTAIN DEDUCTIONS AND EXCLUSIONS.

    (a) In General.--Part I of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 69. LIMITATION ON CERTAIN DEDUCTIONS AND EXCLUSIONS.

    ``(a) In General.--In the case of an individual for any 
taxable year, if--
            ``(1) the taxpayer's adjusted gross income is 
        above--
                    ``(A) $250,000 in the case of a joint 
                return within the meaning of section 6013,
                    ``(B) $225,000 in the case of a head of 
                household return,
                    ``(C) $125,000 in the case of a married 
                filing separately return, or
                    ``(D) $200,000 in all other cases; and
            ``(2) the taxpayer's adjusted taxable income for 
        such taxable year exceeds the minimum marginal rate 
        amount,

then the tax imposed under section 1 with respect to such 
taxpayer for such taxable year shall be increased by the amount 
determined under subsection (b). If the taxpayer is subject to 
tax under section 55, then in lieu of an increase in tax under 
section 1, the tax imposed under section 55 with respect to 
such taxpayer for such taxable year shall be increased by the 
amount determined under subsection (c).
    ``(b) Additional Amount.--The amount determined under this 
subsection with respect to any taxpayer for any taxable year is 
the excess (if any) of--
            ``(1) the tax which would be imposed under section 
        1 with respect to such taxpayer for such taxable year 
        if `adjusted taxable income' were substituted for 
        `taxable income' each place it appears therein, over
            ``(2) the sum of--
                    ``(A) the tax which would be imposed under 
                such section with respect to such taxpayer for 
                such taxable year on the greater of--
                            ``(i) taxable income, or
                            ``(ii) the minimum marginal rate 
                        amount, plus
                    ``(B) 28 percent of the excess (if any) of 
                the taxpayer's adjusted taxable income over the 
                greater of--
                            ``(i) the taxpayer's taxable 
                        income, or
                            ``(ii) the minimum marginal rate 
                        amount.
    ``(c) Additional AMT Amount.--
            ``(1) The amount determined under this subsection 
        with respect to any taxpayer for any taxable year is 
        the additional amount computed under subsection (b) 
        multiplied by the ratio that--
                    ``(A) the result of--
                            ``(i) all itemized deductions 
                        (before the application of section 68), 
                        plus
                            ``(ii) the specified above-the-line 
                        deductions and specified exclusions, 
                        minus
                            ``(iii) the amount of deductions 
                        disallowed under section 56(b)(1)(A) 
                        and (B), minus
                            ``(iv) the non-preference 
                        disallowed deductions, bears to
                    ``(B) the sum of--
                            ``(i) the total of itemized 
                        deductions (after the application of 
                        section 68), plus
                            ``(ii) the specified above-the-line 
                        deductions and specified exclusions.
            ``(2) If the top of the AMT exemption phase-out 
        range for the taxpayer exceeds the minimum marginal 
        rate amount for the taxpayer and if the taxpayer's 
        alternative minimum taxable income does not exceed the 
        top of the AMT exemption phase-out range, the taxpayer 
        must increase its additional AMT amount by 7 percent of 
        the excess of--
                    ``(A) the lesser of--
                            ``(i) the top of the AMT exemption 
                        phase-out range, or
                            ``(ii) the taxpayer's alternative 
                        minimum taxable income, computed--
                                    ``(I) without regard to any 
                                itemized deduction or any 
                                specified above-the-line 
                                deduction, and
                                    ``(II) by including the 
                                amount of any specified 
                                exclusion; over
                    ``(B) the greater of--
                            ``(i) the taxpayer's alternative 
                        minimum taxable income, or
                            ``(ii) the minimum marginal rate 
                        amount.
    ``(d) Minimum Marginal Rate Amount.--For purposes of this 
section, the term `minimum marginal rate amount' means, with 
respect to any taxpayer for any taxable year, the highest 
amount of the taxpayer's taxable income which would be subject 
to a marginal rate of tax under section 1 that is less than 36 
percent with respect to such taxable year.
    ``(e) Adjusted Taxable Income.--For purposes of this 
section--
            ``(1) In general.--The term `adjusted taxable 
        income' means taxable income computed--
                    ``(A) without regard to any itemized 
                deduction or any specified above-the-line 
                deduction, and
                    ``(B) by including in gross income any 
                specified exclusion.
            ``(2) Specified above-the-line deduction.--The term 
        `specified above-the-line deduction' means--
                    ``(A) the deduction provided under section 
                162(l) (relating to special rules for health 
                insurance costs of self-employed individuals),
                    ``(B) the deduction provided under section 
                199 (relating to income attributable to 
                domestic production activities), and
                    ``(C) the deductions provided under the 
                following paragraphs of section 62(a):
                            ``(i) Paragraph (2) (relating to 
                        certain trade and business deductions 
                        of employees), other than subparagraph 
                        (A) thereof.
                            ``(ii) Paragraph (15) (relating to 
                        moving expenses).
                            ``(iii) Paragraph (16) (relating to 
                        Archer MSAs).
                            ``(iv) Paragraph (17) (relating to 
                        interest on education loans).
                            ``(v) Paragraph (18) (relating to 
                        higher education expenses).
                            ``(vi) Paragraph (19) (relating to 
                        health savings accounts).
            ``(3) Specified exclusion.--The term `specified 
        exclusion' means--
                    ``(A) any interest excluded under section 
                103,
                    ``(B) any exclusion with respect to the 
                cost described in section 6051(a)(14) (without 
                regard to subparagraph (B) thereof), and
                    ``(C) any foreign earned income excluded 
                under section 911.
    ``(f) Non-Preference Disallowed Deductions.--For purposes 
of this section, the term `AMT-allowed deductions' means all 
itemized deductions disallowed by section 68 multiplied by the 
ratio that--
            ``(1) a taxpayer's itemized deductions for the 
        taxable year that are subject to section 68 (that is, 
        not including those excluded under section 68(c)) and 
        that are not limited under section 56(b)(1)(A) or (B), 
        bears to
            ``(2) the taxpayer's itemized deductions for the 
        taxable year that are subject to section 68 (that is, 
        not including those excluded under section 68(c)).
    ``(g) Regulations.--The Secretary shall prescribe such 
regulations as may be appropriate to carry out this section, 
including regulations which provide appropriate adjustments to 
the additional AMT amount.''.
    (b) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning on or after January 1, 
2013.

Subtitle B--Tax Carried Interest in Investment Partnerships as Ordinary 
                                 Income

SEC. 411. PARTNERSHIP INTERESTS TRANSFERRED IN CONNECTION WITH 
                    PERFORMANCE OF SERVICES.

    (a) Modification to Election To Include Partnership 
Interest in Gross Income in Year of Transfer.--Subsection (c) 
of section 83 of the Internal Revenue Code of 1986 is amended 
by redesignating paragraph (4) as paragraph (5) and by 
inserting after paragraph (3) the following new paragraph:
            ``(4) Partnership interests.--Except as provided by 
        the Secretary--
                    ``(A) In general.--In the case of any 
                transfer of an interest in a partnership in 
                connection with the provision of services to 
                (or for the benefit of) such partnership--
                            ``(i) the fair market value of such 
                        interest shall be treated for purposes 
                        of this section as being equal to the 
                        amount of the distribution which the 
                        partner would receive if the 
                        partnership sold (at the time of the 
                        transfer) all of its assets at fair 
                        market value and distributed the 
                        proceeds of such sale (reduced by the 
                        liabilities of the partnership) to its 
                        partners in liquidation of the 
                        partnership, and
                            ``(ii) the person receiving such 
                        interest shall be treated as having 
                        made the election under subsection 
                        (b)(1) unless such person makes an 
                        election under this paragraph to have 
                        such subsection not apply.
                    ``(B) Election.--The election under 
                subparagraph (A)(ii) shall be made under rules 
                similar to the rules of subsection (b)(2).''.
    (b) Effective Date.--The amendments made by this section 
shall apply to interests in partnerships transferred after 
December 31, 2012.

SEC. 412. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT MANAGEMENT 
                    SERVICES TO PARTNERSHIPS.

    (a) In General.--Part I of subchapter K of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT MANAGEMENT 
                    SERVICES TO PARTNERSHIPS.

    ``(a) Treatment of Distributive Share of Partnership 
Items.--For purposes of this title, in the case of an 
investment services partnership interest--
            ``(1) In general.--Notwithstanding section 702(b)--
                    ``(A) an amount equal to the net capital 
                gain with respect to such interest for any 
                partnership taxable year shall be treated as 
                ordinary income, and
                    ``(B) subject to the limitation of 
                paragraph (2), an amount equal to the net 
                capital loss with respect to such interest for 
                any partnership taxable year shall be treated 
                as an ordinary loss.
            ``(2) Recharacterization of losses limited to 
        recharacterized gains.--The amount treated as ordinary 
        loss under paragraph (1)(B) for any taxable year shall 
        not exceed the excess (if any) of--
                    ``(A) the aggregate amount treated as 
                ordinary income under paragraph (1)(A) with 
                respect to the investment services partnership 
                interest for all preceding partnership taxable 
                years to which this section applies, over
                    ``(B) the aggregate amount treated as 
                ordinary loss under paragraph (1)(B) with 
                respect to such interest for all preceding 
                partnership taxable years to which this section 
                applies.
            ``(3) Allocation to items of gain and loss.--
                    ``(A) Net capital gain.--The amount treated 
                as ordinary income under paragraph (1)(A) shall 
                be allocated ratably among the items of long-
                term capital gain taken into account in 
                determining such net capital gain.
                    ``(B) Net capital loss.--The amount treated 
                as ordinary loss under paragraph (1)(B) shall 
                be allocated ratably among the items of long-
                term capital loss and short-term capital loss 
                taken into account in determining such net 
                capital loss.
            ``(4) Terms relating to capital gains and losses.--
        For purposes of this section--
                    ``(A) In general.--Net capital gain, long-
                term capital gain, and long-term capital loss, 
                with respect to any investment services 
                partnership interest for any taxable year, 
                shall be determined under section 1222, except 
                that such section shall be applied--
                            ``(i) without regard to the 
                        recharacterization of any item as 
                        ordinary income or ordinary loss under 
                        this section,
                            ``(ii) by only taking into account 
                        items of gain and loss taken into 
                        account by the holder of such interest 
                        under section 702 with respect to such 
                        interest for such taxable year,
                            ``(iii) by treating property which 
                        is taken into account in determining 
                        gains and losses to which section 1231 
                        applies as capital assets held for more 
                        than 1 year, and
                            ``(iv) without regard to section 
                        1202.
                    ``(B) Net capital loss.--The term `net 
                capital loss' means the excess of the losses 
                from sales or exchanges of capital assets over 
                the gains from such sales or exchanges. Rules 
                similar to the rules of clauses (i) through 
                (iv) of subparagraph (A) shall apply for 
                purposes of the preceding sentence.
            ``(5) Special rules for dividends.--
                    ``(A) Individuals.--Any dividend allocated 
                to any investment services partnership interest 
                shall not be treated as qualified dividend 
                income for purposes of section 1(h).
                    ``(B) Corporations.--No deduction shall be 
                allowed under section 243 or 245 with respect 
                to any dividend allocated to any investment 
                services partnership interest.
    ``(b) Dispositions of Partnership Interests.--
            ``(1) Gain.--
                    ``(A) In general.--Any gain on the 
                disposition of an investment services 
                partnership interest shall be--
                            ``(i) treated as ordinary income, 
                        and
                            ``(ii) recognized notwithstanding 
                        any other provision of this subtitle.
                    ``(B) Exceptions--Certain transfers to 
                charities and related persons.--Subparagraph 
                (A) shall not apply to--
                            ``(i) a disposition by gift,
                            ``(ii) a transfer at death, or
                            ``(iii) other disposition 
                        identified by the Secretary as a 
                        disposition with respect to which it 
                        would be inconsistent with the purposes 
                        of this section to apply subparagraph 
                        (A),

                if such gift, transfer, or other disposition is 
                to an organization described in section 
                170(b)(1)(A) (other than any organization 
                described in section 509(a)(3) or any fund or 
                account described in section 4966(d)(2)) or a 
                person with respect to whom the transferred 
                interest is an investment services partnership 
                interest.
            ``(2) Loss.--Any loss on the disposition of an 
        investment services partnership interest shall be 
        treated as an ordinary loss to the extent of the excess 
        (if any) of--
                    ``(A) the aggregate amount treated as 
                ordinary income under subsection (a) with 
                respect to such interest for all partnership 
                taxable years to which this section applies, 
                over
                    ``(B) the aggregate amount treated as 
                ordinary loss under subsection (a) with respect 
                to such interest for all partnership taxable 
                years to which this section applies.
            ``(3) Election with respect to certain exchanges.--
        Paragraph (1)(A)(ii) shall not apply to the 
        contribution of an investment services partnership 
        interest to a partnership in exchange for an interest 
        in such partnership if--
                    ``(A) the taxpayer makes an irrevocable 
                election to treat the partnership interest 
                received in the exchange as an investment 
                services partnership interest, and
                    ``(B) the taxpayer agrees to comply with 
                such reporting and recordkeeping requirements 
                as the Secretary may prescribe.
            ``(4) Distributions of partnership property.--
                    ``(A) In general.--In the case of any 
                distribution of property by a partnership with 
                respect to any investment services partnership 
                interest held by a partner, the partner 
                receiving such property shall recognize gain 
                equal to the excess (if any) of--
                            ``(i) the fair market value of such 
                        property at the time of such 
                        distribution, over
                            ``(ii) the adjusted basis of such 
                        property in the hands of such partner 
                        (determined without regard to 
                        subparagraph (C)).
                    ``(B) Treatment of gain as ordinary 
                income.--Any gain recognized by such partner 
                under subparagraph (A) shall be treated as 
                ordinary income to the same extent and in the 
                same manner as the increase in such partner's 
                distributive share of the taxable income of the 
                partnership would be treated under subsection 
                (a) if, immediately prior to the distribution, 
                the partnership had sold the distributed 
                property at fair market value and all of the 
                gain from such disposition were allocated to 
                such partner. For purposes of applying 
                paragraphs (2) and (3) of subsection (a), any 
                gain treated as ordinary income under this 
                subparagraph shall be treated as an amount 
                treated as ordinary income under subsection 
                (a)(1)(A).
                    ``(C) Adjustment of basis.--In the case a 
                distribution to which subparagraph (A) applies, 
                the basis of the distributed property in the 
                hands of the distributee partner shall be the 
                fair market value of such property.
                    ``(D) Special rules with respect to 
                mergers, divisions, and technical 
                terminations.--In the case of a taxpayer which 
                satisfies requirements similar to the 
                requirements of subparagraphs (A) and (B) of 
                paragraph (3), this paragraph and paragraph 
                (1)(A)(ii) shall not apply to the distribution 
                of a partnership interest if such distribution 
                is in connection with a contribution (or deemed 
                contribution) of any property of the 
                partnership to which section 721 applies 
                pursuant to a transaction described in 
                paragraph (1)(B) or (2) of section 708(b).
    ``(c) Investment Services Partnership Interest.--For 
purposes of this section--
            ``(1) In general.--The term `investment services 
        partnership interest' means any interest in an 
        investment partnership acquired or held by any person 
        in connection with the conduct of a trade or business 
        described in paragraph (2) by such person (or any 
        person related to such person). An interest in an 
        investment partnership held by any person--
                    ``(A) shall not be treated as an investment 
                services partnership interest for any period 
                before the first date on which it is so held in 
                connection with such a trade or business,
                    ``(B) shall not cease to be an investment 
                services partnership interest merely because 
                such person holds such interest other than in 
                connection with such a trade or business, and
                    ``(C) shall be treated as an investment 
                services partnership interest if acquired from 
                a related person in whose hands such interest 
                was an investment services partnership 
                interest.
            ``(2) Businesses to which this section applies.--A 
        trade or business is described in this paragraph if 
        such trade or business primarily involves the 
        performance of any of the following services with 
        respect to assets held (directly or indirectly) by the 
        investment partnership referred to in paragraph (1):
                    ``(A) Advising as to the advisability of 
                investing in, purchasing, or selling any 
                specified asset.
                    ``(B) Managing, acquiring, or disposing of 
                any specified asset.
                    ``(C) Arranging financing with respect to 
                acquiring specified assets.
                    ``(D) Any activity in support of any 
                service described in subparagraphs (A) through 
                (C).
            ``(3) Investment partnership.--
                    ``(A) In general.--The term `investment 
                partnership' means any partnership if, at the 
                end of any calendar quarter ending after 
                December 31, 2012--
                            ``(i) substantially all of the 
                        assets of the partnership are specified 
                        assets (determined without regard to 
                        any section 197 intangible within the 
                        meaning of section 197(d)), and
                            ``(ii) more than half of the 
                        contributed capital of the partnership 
                        is attributable to contributions of 
                        property by one or more persons in 
                        exchange for interests in the 
                        partnership which (in the hands of such 
                        persons) constitute property held for 
                        the production of income.
                    ``(B) Special rules for determining if 
                property held for the production of income.--
                Except as otherwise provided by the Secretary, 
                for purposes of determining whether any 
                interest in a partnership constitutes property 
                held for the production of income under 
                subparagraph (A)(ii)--
                            ``(i) any election under subsection 
                        (e) or (f) of section 475 shall be 
                        disregarded, and
                            ``(ii) paragraph (5)(B) shall not 
                        apply.
                    ``(C) Antiabuse rules.--The Secretary may 
                issue regulations or other guidance which 
                prevent the avoidance of the purposes of 
                subparagraph (A), including regulations or 
                other guidance which treat convertible and 
                contingent debt (and other debt having the 
                attributes of equity) as a capital interest in 
                the partnership.
                    ``(D) Controlled groups of entities.--
                            ``(i) In general.--In the case of a 
                        controlled group of entities, if an 
                        interest in the partnership received in 
                        exchange for a contribution to the 
                        capital of the partnership by any 
                        member of such controlled group would 
                        (in the hands of such member) 
                        constitute property not held for the 
                        production of income, then any interest 
                        in such partnership held by any member 
                        of such group shall be treated for 
                        purposes of subparagraph (A) as 
                        constituting (in the hands of such 
                        member) property not held for the 
                        production of income.
                            ``(ii) Controlled group of 
                        entities.--For purposes of clause (i), 
                        the term `controlled group of entities' 
                        means a controlled group of 
                        corporations as defined in section 
                        1563(a)(1), applied without regard to 
                        subsections (a)(4) and (b)(2) of 
                        section 1563. A partnership or any 
                        other entity (other than a corporation) 
                        shall be treated as a member of a 
                        controlled group of entities if such 
                        entity is controlled (within the 
                        meaning of section 954(d)(3)) by 
                        members of such group (including any 
                        entity treated as a member of such 
                        group by reason of this sentence).
            ``(4) Specified asset.--The term `specified asset' 
        means securities (as defined in section 475(c)(2) 
        without regard to the last sentence thereof), real 
        estate held for rental or investment, interests in 
        partnerships, commodities (as defined in section 
        475(e)(2)), cash or cash equivalents, or options or 
        derivative contracts with respect to any of the 
        foregoing.
            ``(5) Related persons.--
                    ``(A) In general.--A person shall be 
                treated as related to another person if the 
                relationship between such persons is described 
                in section 267(b) or 707(b).
                    ``(B) Attribution of partner services.--Any 
                service described in paragraph (2) which is 
                provided by a partner of a partnership shall be 
                treated as also provided by such partnership.
    ``(d) Exception for Certain Capital Interests.--
            ``(1) In general.--In the case of any portion of an 
        investment services partnership interest which is a 
        qualified capital interest, all items of gain and loss 
        (and any dividends) which are allocated to such 
        qualified capital interest shall not be taken into 
        account under subsection (a) if--
                    ``(A) allocations of items are made by the 
                partnership to such qualified capital interest 
                in the same manner as such allocations are made 
                to other qualified capital interests held by 
                partners who do not provide any services 
                described in subsection (c)(2) and who are not 
                related to the partner holding the qualified 
                capital interest, and
                    ``(B) the allocations made to such other 
                interests are significant compared to the 
                allocations made to such qualified capital 
                interest.
            ``(2) Authority to provide exceptions to allocation 
        requirements.--To the extent provided by the Secretary 
        in regulations or other guidance--
                    ``(A) Allocations to portion of qualified 
                capital interest.--Paragraph (1) may be applied 
                separately with respect to a portion of a 
                qualified capital interest.
                    ``(B) No or insignificant allocations to 
                nonservice providers.--In any case in which the 
                requirements of paragraph (1)(B) are not 
                satisfied, items of gain and loss (and any 
                dividends) shall not be taken into account 
                under subsection (a) to the extent that such 
                items are properly allocable under such 
                regulations or other guidance to qualified 
                capital interests.
                    ``(C) Allocations to service providers' 
                qualified capital interests which are less than 
                other allocations.--Allocations shall not be 
                treated as failing to meet the requirement of 
                paragraph (1)(A) merely because the allocations 
                to the qualified capital interest represent a 
                lower return than the allocations made to the 
                other qualified capital interests referred to 
                in such paragraph.
            ``(3) Special rule for changes in services and 
        capital contributions.--In the case of an interest in a 
        partnership which was not an investment services 
        partnership interest and which, by reason of a change 
        in the services with respect to assets held (directly 
        or indirectly) by the partnership or by reason of a 
        change in the capital contributions to such 
        partnership, becomes an investment services partnership 
        interest, the qualified capital interest of the holder 
        of such partnership interest immediately after such 
        change shall not, for purposes of this subsection, be 
        less than the fair market value of such interest 
        (determined immediately before such change).
            ``(4) Special rule for tiered partnerships.--Except 
        as otherwise provided by the Secretary, in the case of 
        tiered partnerships, all items which are allocated in a 
        manner which meets the requirements of paragraph (1) to 
        qualified capital interests in a lower-tier partnership 
        shall retain such character to the extent allocated on 
        the basis of qualified capital interests in any upper-
        tier partnership.
            ``(5) Exception for no-self-charged carry and 
        management fee provisions.--Except as otherwise 
        provided by the Secretary, an interest shall not fail 
        to be treated as satisfying the requirement of 
        paragraph (1)(A) merely because the allocations made by 
        the partnership to such interest do not reflect the 
        cost of services described in subsection (c)(2) which 
        are provided (directly or indirectly) to the 
        partnership by the holder of such interest (or a 
        related person).
            ``(6) Special rule for dispositions.--In the case 
        of any investment services partnership interest any 
        portion of which is a qualified capital interest, 
        subsection (b) shall not apply to so much of any gain 
        or loss as bears the same proportion to the entire 
        amount of such gain or loss as--
                    ``(A) the distributive share of gain or 
                loss that would have been allocated to the 
                qualified capital interest (consistent with the 
                requirements of paragraph (1)) if the 
                partnership had sold all of its assets at fair 
                market value immediately before the 
                disposition, bears to
                    ``(B) the distributive share of gain or 
                loss that would have been so allocated to the 
                investment services partnership interest of 
                which such qualified capital interest is a 
                part.
            ``(7) Qualified capital interest.--For purposes of 
        this subsection--
                    ``(A) In general.--The term `qualified 
                capital interest' means so much of a partner's 
                interest in the capital of the partnership as 
                is attributable to--
                            ``(i) the fair market value of any 
                        money or other property contributed to 
                        the partnership in exchange for such 
                        interest (determined without regard to 
                        section 752(a)),
                            ``(ii) any amounts which have been 
                        included in gross income under section 
                        83 with respect to the transfer of such 
                        interest, and
                            ``(iii) the excess (if any) of--
                                    ``(I) any items of income 
                                and gain taken into account 
                                under section 702 with respect 
                                to such interest, over
                                    ``(II) any items of 
                                deduction and loss so taken 
                                into account.
                    ``(B) Adjustment to qualified capital 
                interest.--
                            ``(i) Distributions and losses.--
                        The qualified capital interest shall be 
                        reduced by distributions from the 
                        partnership with respect to such 
                        interest and by the excess (if any) of 
                        the amount described in subparagraph 
                        (A)(iii)(II) over the amount described 
                        in subparagraph (A)(iii)(I).
                            ``(ii) Special rule for 
                        contributions of property.--In the case 
                        of any contribution of property 
                        described in subparagraph (A)(i) with 
                        respect to which the fair market value 
                        of such property is not equal to the 
                        adjusted basis of such property 
                        immediately before such contribution, 
                        proper adjustments shall be made to the 
                        qualified capital interest to take into 
                        account such difference consistent with 
                        such regulations or other guidance as 
                        the Secretary may provide.
                    ``(C) Technical terminations, etc., 
                disregarded.--No increase or decrease in the 
                qualified capital interest of any partner shall 
                result from a termination, merger, 
                consolidation, or division described in section 
                708, or any similar transaction.
            ``(8) Treatment of certain loans.--
                    ``(A) Proceeds of partnership loans not 
                treated as qualified capital interest of 
                service providing partners.--For purposes of 
                this subsection, an investment services 
                partnership interest shall not be treated as a 
                qualified capital interest to the extent that 
                such interest is acquired in connection with 
                the proceeds of any loan or other advance made 
                or guaranteed, directly or indirectly, by any 
                other partner or the partnership (or any person 
                related to any such other partner or the 
                partnership). The preceding sentence shall not 
                apply to the extent the loan or other advance 
                is repaid before January 1, 2013 unless such 
                repayment is made with the proceeds of a loan 
                or other advance described in the preceding 
                sentence.
                    ``(B) Reduction in allocations to qualified 
                capital interests for loans from nonservice-
                providing partners to the partnership.--For 
                purposes of this subsection, any loan or other 
                advance to the partnership made or guaranteed, 
                directly or indirectly, by a partner not 
                providing services described in subsection 
                (c)(2) to the partnership (or any person 
                related to such partner) shall be taken into 
                account in determining the qualified capital 
                interests of the partners in the partnership.
    ``(e) Other Income and Gain in Connection With Investment 
Management Services.--
            ``(1) In general.--If--
                    ``(A) a person performs (directly or 
                indirectly) investment management services for 
                any investment entity,
                    ``(B) such person holds (directly or 
                indirectly) a disqualified interest with 
                respect to such entity, and
                    ``(C) the value of such interest (or 
                payments thereunder) is substantially related 
                to the amount of income or gain (whether or not 
                realized) from the assets with respect to which 
                the investment management services are 
                performed,
        any income or gain with respect to such interest shall 
        be treated as ordinary income. Rules similar to the 
        rules of subsections (a)(5) and (d) shall apply for 
        purposes of this subsection.
            ``(2) Definitions.--For purposes of this 
        subsection--
                    ``(A) Disqualified interest.--
                            ``(i) In general.--The term 
                        `disqualified interest' means, with 
                        respect to any investment entity--
                                    ``(I) any interest in such 
                                entity other than indebtedness,
                                    ``(II) convertible or 
                                contingent debt of such entity,
                                    ``(III) any option or other 
                                right to acquire property 
                                described in subclause (I) or 
                                (II), and
                                    ``(IV) any derivative 
                                instrument entered into 
                                (directly or indirectly) with 
                                such entity or any investor in 
                                such entity.
                            ``(ii) Exceptions.--Such term shall 
                        not include--
                                    ``(I) a partnership 
                                interest,
                                    ``(II) except as provided 
                                by the Secretary, any interest 
                                in a taxable corporation, and
                                    ``(III) except as provided 
                                by the Secretary, stock in an S 
                                corporation.
                    ``(B) Taxable corporation.--The term 
                `taxable corporation' means--
                            ``(i) a domestic C corporation, or
                            ``(ii) a foreign corporation 
                        substantially all of the income of 
                        which is--
                                    ``(I) effectively connected 
                                with the conduct of a trade or 
                                business in the United States, 
                                or
                                    ``(II) subject to a 
                                comprehensive foreign income 
                                tax (as defined in section 
                                457A(d)(2)).
                    ``(C) Investment management services.--The 
                term `investment management services' means a 
                substantial quantity of any of the services 
                described in subsection (c)(2).
                    ``(D) Investment entity.--The term 
                `investment entity' means any entity which, if 
                it were a partnership, would be an investment 
                partnership.
    ``(f) Regulations.--The Secretary shall prescribe such 
regulations or other guidance as is necessary or appropriate to 
carry out the purposes of this section, including regulations 
or other guidance to--
            ``(1) provide modifications to the application of 
        this section (including treating related persons as not 
        related to one another) to the extent such modification 
        is consistent with the purposes of this section, and
            ``(2) coordinate this section with the other 
        provisions of this title.
    ``(g) Cross Reference.--For 40 percent penalty on certain 
underpayments due to the avoidance of this section, see section 
6662.''.
    (b) Application of Section 751 to Indirect Dispositions of 
Investment Services Partnership Interests.--
            (1) In general.--Subsection (a) of section 751 of 
        the Internal Revenue Code of 1986 is amended by 
        striking ``or'' at the end of paragraph (1), by 
        inserting ``or'' at the end of paragraph (2), and by 
        inserting after paragraph (2) the following new 
        paragraph:
            ``(3) investment services partnership interests 
        held by the partnership,''.
            (2) Certain distributions treated as sales or 
        exchanges.--Subparagraph (A) of section 751(b)(1) of 
        the Internal Revenue Code of 1986 is amended by 
        striking ``or'' at the end of clause (i), by inserting 
        ``or'' at the end of clause (ii), and by inserting 
        after clause (ii) the following new clause:
                            ``(iii) investment services 
                        partnership interests held by the 
                        partnership,''.
            (3) Application of special rules in the case of 
        tiered partnerships.--Subsection (f) of section 751 of 
        the Internal Revenue Code of 1986 is amended by 
        striking ``or'' at the end of paragraph (1), by 
        inserting ``or'' at the end of paragraph (2), and by 
        inserting after paragraph (2) the following new 
        paragraph:
            ``(3) investment services partnership interests 
        held by the partnership,''.
            (4) Investment services partnership interests; 
        qualified capital interests.--Section 751 of the 
        Internal Revenue Code of 1986 is amended by adding at 
        the end the following new subsection:
    ``(g) Investment Services Partnership Interests.--For 
purposes of this section--
            ``(1) In general.--The term `investment services 
        partnership interest' has the meaning given such term 
        by section 710(c).
            ``(2) Adjustments for qualified capital 
        interests.--The amount to which subsection (a) applies 
        by reason of paragraph (3) thereof shall not include so 
        much of such amount as is attributable to any portion 
        of the investment services partnership interest which 
        is a qualified capital interest (determined under rules 
        similar to the rules of section 710(d)).
            ``(3) Recognition of gains.--Any gain with respect 
        to which subsection (a) applies by reason of paragraph 
        (3) thereof shall be recognized notwithstanding any 
        other provision of this title.
            ``(4) Coordination with inventory items.--An 
        investment services partnership interest held by the 
        partnership shall not be treated as an inventory item 
        of the partnership.
            ``(5) Prevention of double counting.--Under 
        regulations or other guidance prescribed by the 
        Secretary, subsection (a)(3) shall not apply with 
        respect to any amount to which section 710 applies.''.
    (c) Treatment for Purposes of Section 7704.--Subsection (d) 
of section 7704 of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new paragraph:
            ``(6) Income from certain carried interests not 
        qualified.--
                    ``(A) In general.--Specified carried 
                interest income shall not be treated as 
                qualifying income.
                    ``(B) Specified carried interest income.--
                For purposes of this paragraph--
                            ``(i) In general.--The term 
                        `specified carried interest income' 
                        means--
                                    ``(I) any item of income or 
                                gain allocated to an investment 
                                services partnership interest 
                                (as defined in section 710(c)) 
                                held by the partnership,
                                    ``(II) any gain on the 
                                disposition of an investment 
                                services partnership interest 
                                (as so defined) or a 
                                partnership interest to which 
                                (in the hands of the 
                                partnership) section 751 
                                applies, and
                                    ``(III) any income or gain 
                                taken into account by the 
                                partnership under subsection 
                                (b)(4) or (e) of section 710.
                            ``(ii) Exception for qualified 
                        capital interests.--A rule similar to 
                        the rule of section 710(d) shall apply 
                        for purposes of clause (i).
                    ``(C) Coordination with other provisions.--
                Subparagraph (A) shall not apply to any item 
                described in paragraph (1)(E) (or so much of 
                paragraph (1)(F) as relates to paragraph 
                (1)(E)).
                    ``(D) Special rules for certain 
                partnerships.--
                            ``(i) Certain partnerships owned by 
                        real estate investment trusts.--
                        Subparagraph (A) shall not apply in the 
                        case of a partnership which meets each 
                        of the following requirements:
                                    ``(I) Such partnership is 
                                treated as publicly traded 
                                under this section solely by 
                                reason of interests in such 
                                partnership being convertible 
                                into interests in a real estate 
                                investment trust which is 
                                publicly traded.
                                    ``(II) 50 percent or more 
                                of the capital and profits 
                                interests of such partnership 
                                are owned, directly or 
                                indirectly, at all times during 
                                the taxable year by such real 
                                estate investment trust 
                                (determined with the 
                                application of section 267(c)).
                                    ``(III) Such partnership 
                                meets the requirements of 
                                paragraphs (2), (3), and (4) of 
                                section 856(c).
                            ``(ii) Certain partnerships owning 
                        other publicly traded partnerships.--
                        Subparagraph (A) shall not apply in the 
                        case of a partnership which meets each 
                        of the following requirements:
                                    ``(I) Substantially all of 
                                the assets of such partnership 
                                consist of interests in one or 
                                more publicly traded 
                                partnerships (determined 
                                without regard to subsection 
                                (b)(2)).
                                    ``(II) Substantially all of 
                                the income of such partnership 
                                is ordinary income or section 
                                1231 gain (as defined in 
                                section 1231(a)(3)).
                    ``(E) Transitional rule.--Subparagraph (A) 
                shall not apply to any taxable year of the 
                partnership beginning before the date which is 
                10 years after January 1, 2013.''.
    (d) Imposition of Penalty on Underpayments.--
            (1) In general.--Subsection (b) of section 6662 of 
        the Internal Revenue Code of 1986 is amended by 
        inserting after paragraph (7) the following new 
        paragraph:
            ``(8) The application of section 710(e) or the 
        regulations or other guidance prescribed under section 
        710(h) to prevent the avoidance of the purposes of 
        section 710.''.
            (2) Amount of penalty.--
                    (A) In general.--Section 6662 of the 
                Internal Revenue Code of 1986 is amended by 
                adding at the end the following new subsection:
    ``(k) Increase in Penalty in Case of Property Transferred 
for Investment Management Services.--In the case of any portion 
of an underpayment to which this section applies by reason of 
subsection (b)(8), subsection (a) shall be applied with respect 
to such portion by substituting `40 percent' for `20 
percent'.''.
                    (B) Conforming amendment.--Subparagraph (B) 
                of section 6662A(e)(2) is amended by striking 
                ``or (i)'' and inserting ``, (i), or (k)''.
            (3) Special rules for application of reasonable 
        cause exception.--Subsection (c) of section 6664 is 
        amended--
                    (A) by redesignating paragraphs (3) and (4) 
                as paragraphs (4) and (5), respectively;
                    (B) by striking ``paragraph (3)'' in 
                paragraph (5)(A), as so redesignated, and 
                inserting ``paragraph (4)''; and
                    (C) by inserting after paragraph (2) the 
                following new paragraph:
            ``(3) Special rule for underpayments attributable 
        to investment management services.--
                    ``(A) In general.--Paragraph (1) shall not 
                apply to any portion of an underpayment to 
                which section 6662 applies by reason of 
                subsection (b)(8) unless--
                            ``(i) the relevant facts affecting 
                        the tax treatment of the item are 
                        adequately disclosed,
                            ``(ii) there is or was substantial 
                        authority for such treatment, and
                            ``(iii) the taxpayer reasonably 
                        believed that such treatment was more 
                        likely than not the proper treatment.
                    ``(B) Rules relating to reasonable 
                belief.--Rules similar to the rules of 
                subsection (d)(3) shall apply for purposes of 
                subparagraph (A)(iii).''.
    (e) Income and Loss From Investment Services Partnership 
Interests Taken Into Account in Determining Net Earnings From 
Self-Employment.--
            (1) Internal revenue code.--
                    (A) In general.--Section 1402(a) of the 
                Internal Revenue Code of 1986 is amended by 
                striking ``and'' at the end of paragraph (16), 
                by striking the period at the end of paragraph 
                (17) and inserting ``; and'', and by inserting 
                after paragraph (17) the following new 
                paragraph:
            ``(18) notwithstanding the preceding provisions of 
        this subsection, in the case of any individual engaged 
        in the trade or business of providing services 
        described in section 710(c)(2) with respect to any 
        entity, investment services partnership income or loss 
        (as defined in subsection (m)) of such individual with 
        respect to such entity shall be taken into account in 
        determining the net earnings from self-employment of 
        such individual.''.
                    (B) Investment services partnership income 
                or loss.--Section 1402 of the Internal Revenue 
                Code is amended by adding at the end the 
                following new subsection:
    ``(m) Investment Services Partnership Income or Loss.--For 
purposes of subsection (a)--
            ``(1) In general.--The term `investment services 
        partnership income or loss' means, with respect to any 
        investment services partnership interest (as defined in 
        section 710(c)), the net of--
                    ``(A) the amounts treated as ordinary 
                income or ordinary loss under subsections (b) 
                and (e) of section 710 with respect to such 
                interest,
                    ``(B) all items of income, gain, loss, and 
                deduction allocated to such interest, and
                    ``(C) the amounts treated as realized from 
                the sale or exchange of property other than a 
                capital asset under section 751 with respect to 
                such interest.
            ``(2) Exception for qualified capital interests.--A 
        rule similar to the rule of section 710(d) shall apply 
        for purposes of applying paragraph (1)(B)(ii).''.
            (2) Social security act.--Section 211(a) of the 
        Social Security Act is amended by striking ``and'' at 
        the end of paragraph (15), by striking the period at 
        the end of paragraph (16) and inserting ``; and'', and 
        by inserting after paragraph (16) the following new 
        paragraph:
            ``(17) Notwithstanding the preceding provisions of 
        this subsection, in the case of any individual engaged 
        in the trade or business of providing services 
        described in section 710(c)(2) of the Internal Revenue 
        Code of 1986 with respect to any entity, investment 
        services partnership income or loss (as defined in 
        section 1402(m) of such Code) shall be taken into 
        account in determining the net earnings from self-
        employment of such individual.''.
    (f) Conforming Amendments.--
            (1) Subsection (d) of section 731 of the Internal 
        Revenue Code of 1986 is amended by inserting ``section 
        710(b)(4) (relating to distributions of partnership 
        property),'' after ``to the extent otherwise provided 
        by''.
            (2) Section 741 of the Internal Revenue Code of 
        1986 is amended by inserting ``or section 710 (relating 
        to special rules for partners providing investment 
        management services to partnerships)'' before the 
        period at the end.
            (3) The table of sections for part I of subchapter 
        K of chapter 1 of the Internal Revenue Code of 1986 is 
        amended by adding at the end the following new item:

``Sec. 710.  Special rules for partners providing investment management 
          services to partnerships.''.
    (g) Effective Date.--
            (1) In general.--Except as otherwise provided in 
        this subsection, the amendments made by this section 
        shall apply to taxable years ending after December 31, 
        2012.
            (2) Partnership taxable years which include 
        effective date.--In applying section 710(a) of the 
        Internal Revenue Code of 1986 (as added by this 
        section) in the case of any partnership taxable year 
        which includes January 1, 2013, the amount of the net 
        income referred to in such section shall be treated as 
        being the lesser of the net income for the entire 
        partnership taxable year or the net income determined 
        by only taking into account items attributable to the 
        portion of the partnership taxable year which is after 
        such date.
            (3) Dispositions of partnership interests.--
                    (A) In general.--Section 710(b) of such 
                Code (as added by this section) shall apply to 
                dispositions and distributions after December 
                31, 2012.
                    (B) Indirect dispositions.--The amendments 
                made by subsection (b) shall apply to 
                transactions after December 31, 2012.
            (4) Other income and gain in connection with 
        investment management services.--Section 710(e) of such 
        Code (as added by this section) shall take effect on 
        January 1, 2013.

       Subtitle C--Close Loophole for Corporate Jet Depreciation

SECTION 421. GENERAL AVIATION AIRCRAFT TREATED AS 7-YEAR PROPERTY.

    (a) In General.--Subparagraph (C) of section 168(e)(3) of 
the Internal Revenue Code of 1986 (relating to classification 
of certain property) is amended by striking ``and'' at the end 
of clause (iv), by redesignating clause (v) as clause (vi), and 
by inserting after clause (iv) the following new clause:
                            ``(v) any general aviation 
                        aircraft, and''.
    (b) Class Life.--Paragraph (3) of section 168(g) Internal 
Revenue Code of 1986 is amended by inserting after subparagraph 
(E) the following new subparagraph:
                    ``(F) General aviation aircraft.--In the 
                case of any general aviation aircraft, the 
                recovery period used for purposes of paragraph 
                (2) shall be 12 years.''.
    (c) General Aviation Aircraft.--Subsection (i) of section 
168 Internal Revenue Code of 1986 is amended by inserting after 
paragraph (19) the following new paragraph:
            ``(20) General aviation aircraft.--The term 
        `general aviation aircraft' means any airplane or 
        helicopter (including airframes and engines) not used 
        in commercial or contract carrying of passengers or 
        freight, but which primarily engages in the carrying of 
        passengers.''.
    (d) Effective Date.--This section shall be effective for 
property placed in service after December 31, 2012.

                    Subtitle D--Repeal Oil Subsidies

SEC. 431. REPEAL OF DEDUCTION FOR INTANGIBLE DRILLING AND DEVELOPMENT 
                    COSTS IN THE CASE OF OIL AND GAS WELLS.

    (a) In General.--Section 263(c) of the Internal Revenue 
Code of 1986 (relating to intangible drilling and development 
costs) is amended by adding at the end the following new 
sentence: ``This subsection shall not apply in the case of oil 
and gas wells with respect to amounts paid or incurred after 
December 31, 2012.''.
    (b) Effective Date.--The amendment made by this section 
shall apply to amounts paid or incurred after December 31, 
2012.

SEC. 432. REPEAL OF DEDUCTION FOR TERTIARY INJECTANTS.

    (a) In General.--Part VI of subchapter B of chapter 1 of 
the Internal Revenue Code of 1986 (relating to itemized 
deductions for individuals and corporations) is amended by 
striking section 193 (relating to tertiary injectants).
    (b) Clerical Amendment.--The table of sections for part VI 
of subchapter B of chapter 1 of the Internal Revenue Code of 
1986 is amended by striking the item relating to section 193.
    (c) Effective Date.--The amendments made by this section 
shall apply to amounts paid or incurred after December 31, 
2012.

SEC. 433. REPEAL OF PERCENTAGE DEPLETION FOR OIL AND GAS WELLS.

    (a) In General.--Section 613A of the Internal Revenue Code 
of 1986 (relating to limitation on percentage depletion in the 
case of oil and gas wells) is amended to read as follows:

``SEC. 613A. PERCENTAGE DEPLETION NOT ALLOWED IN CASE OF OIL AND GAS 
                    WELLS.

    ``The allowance for depletion under section 611 with 
respect to any oil and gas well shall be computed without 
regard to section 613.''.
    (b) Effective Date.--The amendment made by this section 
shall apply to taxable years beginning after December 31, 2012.

SEC. 434. SECTION 199 DEDUCTION NOT ALLOWED WITH RESPECT TO OIL, 
                    NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

    (a) In General.--Subparagraph (B) of section 199(c)(4) of 
the Internal Revenue Code of 1986 (relating to income 
attributable to domestic production activities) is amended--
            (1) by striking ``or'' at the end of clause (ii),
            (2) by striking the period at the end of clause 
        (iii) and inserting in lieu thereof ``, or'', and
            (3) by adding at the end thereof the following new 
        clause:
                            ``(iv) the production, refining, 
                        processing, transportation, or 
                        distribution of oil, natural gas, or 
                        any primary product (within the meaning 
                        of subsection (d)(9)) thereof.''.
    (b) Conforming Amendment.--Paragraph (9) of section 199(d) 
is amended to read as follows:
            ``(9) Primary product.--For purposes of subsection 
        (c)(4)(B)(iv), the term `primary product' has the same 
        meaning as when used in section 927(a)(2)(C) as in 
        effect before its repeal.''.
    (c) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2012.

SEC. 435. REPEAL OIL AND GAS WORKING INTEREST EXCEPTION TO PASSIVE 
                    ACTIVITY RULES.

    (a) In General.--Paragraph (3) of section 469(c) of the 
Internal Revenue Code of 1986 (relating to passive activity 
defined) is amended by adding at the end thereof the following 
new subparagraph--
                    ``(C) Termination.--Subparagraph (A) shall 
                not apply for any taxable year beginning after 
                December 31 2012.''.
    (b) Effective Date.--The amendment made by this section 
shall apply to taxable years beginning after December 31, 2012.

SEC. 436. UNIFORM SEVEN-YEAR AMORTIZATION FOR GEOLOGICAL AND 
                    GEOPHYSICAL EXPENDITURES.

    (a) In General.--Paragraph (1) of section 167(h) of the 
Internal Revenue Code of 1986 (relating to amortization of 
geological and geophysical expenditures) is amended by striking 
``24-month'' and inserting in lieu thereof ``7-year''.
    (b) Conforming Amendments.--Section 167(h) is amended--
            (1) by striking ``24-month'' in paragraph (4) and 
        inserting in lieu thereof ``7-year'', and
            (2) by striking paragraph (5).
    (c) Effective Date.--The amendments made by this section 
shall apply to amounts paid or incurred after December 31, 
2012.

SEC. 437. REPEAL ENHANCED OIL RECOVERY CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 (relating to 
business related credits) is amended by striking section 43 
(relating to enhanced oil recovery credit).
    (b) Clerical Amendment.--The table of sections for subpart 
D of part IV of subchapter A of chapter 1 of the Internal 
Revenue Code of 1986 is amended by striking the item relating 
to section 43.
    (c) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2012.

SEC. 438. REPEAL MARGINAL WELL PRODUCTION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of 
chapter 1of the Internal Revenue Code of 1986 (relating to 
business related credits) is amended by striking section 45I 
(relating to credit for producing oil and gas from marginal 
wells).
    (b) Clerical Amendment.--The table of sections for subpart 
D of part IV of subchapter A of chapter 1 of the Internal 
Revenue Code of 1986 is amended by striking the item relating 
to section 45I.
    (c) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2012.

                  Subtitle E--Dual Capacity Taxpayers

SEC. 441. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO DUAL 
                    CAPACITY TAXPAYERS.

    (a) In General.--Section 901 of the Internal Revenue Code 
of 1986 (relating to credit for taxes of foreign countries and 
of possessions of the United States) is amended by 
redesignating subsection (n) as subsection (o) and by inserting 
after subsection (m) the following new subsection:
    ``(n) Special Rules Relating to Dual Capacity Taxpayers.--
            ``(1) General rule.--Notwithstanding any other 
        provision of this chapter, any amount paid or accrued 
        by a dual capacity taxpayer or any member of the 
        worldwide affiliated group of which such dual capacity 
        taxpayer is also a member to any foreign country or to 
        any possession of the United States for any period 
        shall not be considered a tax to the extent such amount 
        exceeds the amount (determined in accordance with 
        regulations) which would have been required to be paid 
        if the taxpayer were not a dual capacity taxpayer.
            ``(2) Dual capacity taxpayer.--For purposes of this 
        subsection, the term `dual capacity taxpayer' means, 
        with respect to any foreign country or possession of 
        the United States, a person who--
                    ``(A) is subject to a levy of such country 
                or possession, and
                    ``(B) receives (or will receive) directly 
                or indirectly a specific economic benefit (as 
                determined in accordance with regulations) from 
                such country or possession.
            ``(3) Regulations.--The Secretary may issue such 
        regulations or other guidance as is necessary or 
        appropriate to carry out the purposes of this 
        subsection.''.
    (b) Contrary Treaty Obligations Upheld.--The amendments 
made by this section shall not apply to the extent contrary to 
any treaty obligation of the United States.
    (c) Effective Date.--The amendments made by this section 
shall apply to amounts that, if such amounts were an amount of 
tax paid or accrued, would be considered paid or accrued in 
taxable years beginning after December 31, 2012.

SEC. 442. SEPARATE BASKET TREATMENT TAXES PAID ON FOREIGN OIL AND GAS 
                    INCOME.

    (a) Separate Basket for Foreign Tax Credit.--Paragraph (1) 
of section 904(d) of the Internal Revenue Code of 1986 is 
amended by striking ``and'' at the end of subparagraph (A), by 
striking the period at the end of subparagraph (B) and 
inserting ``, and'', and by adding at the end the following:
                    ``(C) combined foreign oil and gas income 
                (as defined in section 907(b)(1)).''.
    (b) Coordination.--Section 904(d)(2)of such Code is amended 
by redesignating subparagraphs (J) and (K) as subparagraphs (K) 
and (L) and by inserting after subparagraph (I) the following:
                    ``(J) Coordination with combined foreign 
                oil and gas income.--For purposes of this 
                section, passive category income and general 
                category income shall not include combined 
                foreign oil and gas income (as defined in 
                section 907(b)(1)).''.
    (c) Conforming Amendments.--
            (1) Section 907(a) is hereby repealed.
            (2) Section 907(c)(4) is hereby repealed.
            (3) Section 907(f) is hereby repealed.
    (d) Effective Dates.--
            (1) In general.--The amendments made by this 
        section shall apply to taxable years beginning after 
        December 31, 2012.
            (2) Transitional rules.--
                    (A) Carryovers.--Any unused foreign oil and 
                gas taxes which under section 907(f) of such 
                Code (as in effect before the amendment made by 
                subsection (c)(3)) would have been allowable as 
                a carryover to the taxpayer's first taxable 
                year beginning after December 31, 2012 (without 
                regard to the limitation of paragraph (2) of 
                such section 907(f) for first taxable year) 
                shall be allowed as carryovers under section 
                904(c) of such Code in the same manner as if 
                such taxes were unused taxes under such section 
                904(c) with respect to foreign oil and gas 
                extraction income.
                    (B) Losses.--The amendment made by 
                subsection (c)(2) shall not apply to foreign 
                oil and gas extraction losses arising in 
                taxable years beginning on or before the date 
                of the enactment of this Act.

Subtitle F--Increased Target and Trigger for Joint Select Committee on 
                           Deficit Reduction

SEC. 451. INCREASED TARGET AND TRIGGER FOR JOINT SELECT COMMITTEE ON 
                    DEFICIT REDUCTION.

    (a) Increased Target for Joint Select Committee.--Section 
401(b)(2) of the Budget Control Act of 2011 is amended by 
striking ``$1,500,000,000,000'' and inserting 
``$1,950,000,000,000''.
    (b) Trigger for Joint Select Committee.--Section 302 of the 
Budget Control Act of 2011 is amended by redesignating 
subsection (b) as subsection (c) and by inserting after 
subsection (a) the following new subsection:
    ``(b) Trigger.--If a joint committee bill achieving an 
amount greater than `$1,650,000,000,000' in deficit reduction 
as provided in section 401(b)(3)(B)(i)(II) of this Act is 
enacted by January 15, 2012, then the amendments to the 
Internal Revenue Code of 1986 made by subtitles A through E of 
title IV of the American Jobs Act of 2011, shall not be in 
effect for any taxable year.''.