[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4550 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4550
To extend the emergency unemployment compensation program, and to
stimulate the economy and create opportunities for new job creation.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 1, 2014
Mr. Fitzpatrick introduced the following bill; which was referred to
the Committee on Ways and Means, and in addition to the Committees on
Transportation and Infrastructure, Education and the Workforce, Small
Business, Energy and Commerce, Financial Services, and Natural
Resources, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To extend the emergency unemployment compensation program, and to
stimulate the economy and create opportunities for new job creation.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Emergency
Unemployment Compensation Extension Act of 2014''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--PROVISIONS RELATING TO UNEMPLOYMENT COMPENSATION
Sec. 101. Extension of emergency unemployment compensation program.
Sec. 102. Temporary extension of extended benefit provisions.
Sec. 103. Extension of funding for reemployment services and
reemployment and eligibility assessment
activities.
Sec. 104. Additional extended unemployment benefits under the Railroad
Unemployment Insurance Act.
Sec. 105. Flexibility for unemployment program agreements.
Sec. 106. Ending unemployment payments to jobless millionaires and
billionaires.
Sec. 107. GAO study on the use of work suitability requirements in
unemployment insurance programs.
Sec. 108. Funding stabilization.
Sec. 109. Prepayment of certain PBGC premiums.
Sec. 110. Extension of customs user fees.
Sec. 111. Emergency services, government, and certain nonprofit
volunteers.
TITLE II--PROVISIONS RELATING TO JOB CREATION
Sec. 201. Treatment of employment assistance voucher programs.
Sec. 202. Disadvantaged business enterprises.
Sec. 203. America Star Program.
Sec. 204. Fostering innovation.
Sec. 205. Partnership To Build America.
Sec. 206. Keystone XL pipeline.
TITLE I--PROVISIONS RELATING TO UNEMPLOYMENT COMPENSATION
SEC. 101. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.
(a) Extension.--Section 4007(a)(2) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is
amended by striking ``January 1, 2014'' and inserting ``June 1, 2014''.
(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 (I), by striking ``and'' at the end;
(2) in subparagraph (J), by inserting ``and'' at the end;
and
(3) by inserting after subparagraph (J) the following:
``(K) the amendment made by section 101(a) of the
Emergency Unemployment Compensation Extension Act of
2014;''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the enactment of the American Taxpayer Relief
Act of 2012 (Public Law 112-240).
SEC. 102. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.
(a) In General.--Section 2005 of the Assistance for Unemployed
Workers and Struggling Families Act, as contained in Public Law 111-5
(26 U.S.C. 3304 note), is amended--
(1) by striking ``December 31, 2013'' each place it appears
and inserting ``May 31, 2014''; and
(2) in subsection (c), by striking ``June 30, 2014'' and
inserting ``November 30, 2014''.
(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 30, 2014''
and inserting ``November 30, 2014''.
(c) Extension of Modification of Indicators Under the Extended
Benefit Program.--Section 203 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is
amended--
(1) in subsection (d), by striking ``December 31, 2013''
and inserting ``May 31, 2014''; and
(2) in subsection (f)(2), by striking ``December 31, 2013''
and inserting ``May 31, 2014''.
(d) Effective Date.--The amendments made by this section shall take
effect as if included in the enactment of the American Taxpayer Relief
Act of 2012 (Public Law 112-240).
SEC. 103. EXTENSION OF FUNDING FOR REEMPLOYMENT SERVICES AND
REEMPLOYMENT AND ELIGIBILITY ASSESSMENT ACTIVITIES.
(a) Extension.--
(1) In general.--Section 4004(c)(2)(A) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended by striking ``through fiscal year 2014'' and
inserting ``through the first five months of fiscal year
2015''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the enactment of the
American Taxpayer Relief Act of 2012 (Public Law 112-240).
(b) Timing for Services and Activities.--
(1) In general.--Section 4001(i)(1)(A) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended by adding at the end the following new
sentence:
``At a minimum, such reemployment services and
reemployment and eligibility assessment activities
shall be provided to an individual within a time period
(determined appropriate by the Secretary) after the
date the individual begins to receive amounts under
section 4002(b) (first tier benefits) and, if
applicable, again within a time period (determined
appropriate by the Secretary) after the date the
individual begins to receive amounts under section
4002(d) (third tier benefits).''.
(2) Effective date.--The amendment made by this subsection
shall apply on and after the date of the enactment of this Act.
(c) Purposes of Services and Activities.--The purposes of the
reemployment services and reemployment and eligibility assessment
activities under section 4001(i) of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) are--
(1) to better link the unemployed with the overall
workforce system by bringing individuals receiving unemployment
insurance benefits in for personalized assessments and
referrals to reemployment services; and
(2) to provide individuals receiving unemployment insurance
benefits with early access to specific strategies that can help
get them back into the workforce faster, including through--
(A) the development of a reemployment plan;
(B) the provision of access to relevant labor
market information;
(C) the provision of access to information about
industry-recognized credentials that are regionally
relevant or nationally portable;
(D) the provision of referrals to reemployment
services and training; and
(E) an assessment of the individual's on-going
eligibility for unemployment insurance benefits.
SEC. 104. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD
UNEMPLOYMENT INSURANCE ACT.
(a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad
Unemployment Insurance Act (45 U.S.C. 352(c)(2)(D)(iii)) is amended--
(1) by striking ``June 30, 2013'' and inserting ``November
30, 2013''; and
(2) by striking ``December 31, 2013'' and inserting ``May
31, 2014''.
(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 enactment of this Act.
(c) Funding for Administration.--Out of any funds in the Treasury
not otherwise appropriated, there are appropriated to the Railroad
Retirement Board $105,000 for administrative expenses associated with
the payment of additional extended unemployment benefits provided under
section 2(c)(2)(D) of the Railroad Unemployment Insurance Act by reason
of the amendments made by subsection (a), to remain available until
expended.
SEC. 105. FLEXIBILITY FOR UNEMPLOYMENT PROGRAM AGREEMENTS.
(a) Flexibility.--
(1) In general.--Subsection (g) of section 4001 of the
Supplemental Appropriations Act, 2008 (Public Law 110-252; 26
U.S.C. 3304 note) shall not apply with respect to a State that
has enacted a law before December 1, 2013, that, upon taking
effect, would violate such subsection.
(2) Effective date.--Paragraph (1) is effective with
respect to weeks of unemployment beginning on or after December
29, 2013.
(b) Permitting a Subsequent Agreement.--Nothing in title IV of the
Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C.
3304 note) shall preclude a State whose agreement under such title was
terminated from entering into a subsequent agreement under such title
on or after the date of the enactment of this Act if the State, taking
into account the application of subsection (a), would otherwise meet
the requirements for an agreement under such title.
SEC. 106. ENDING UNEMPLOYMENT PAYMENTS TO JOBLESS MILLIONAIRES AND
BILLIONAIRES.
(a) Prohibition.--Notwithstanding any other provision of law, no
Federal funds may be used for payments of unemployment compensation
under the emergency unemployment compensation program under title IV of
the Supplemental Appropriations Act, 2008 (Public Law 110-252; 26
U.S.C. 3304 note) to an individual whose adjusted gross income in the
preceding year was equal to or greater than $1,000,000.
(b) Compliance.--Unemployment Insurance applications shall include
a form or procedure for an individual applicant to certify the
individual's adjusted gross income was not equal to or greater than
$1,000,000 in the preceding year.
(c) Audits.--The certifications required by subsection (b) shall be
auditable by the U.S. Department of Labor or the U.S. Government
Accountability Office.
(d) Status of Applicants.--It is the duty of the States to verify
the residency, employment, legal, and income status of applicants for
Unemployment Insurance and no Federal funds may be expended for
purposes of determining whether or not the prohibition under subsection
(a) applies with respect to an individual.
(e) Effective Date.--The prohibition under subsection (a) shall
apply to weeks of unemployment beginning on or after the date of the
enactment of this Act.
SEC. 107. GAO STUDY ON THE USE OF WORK SUITABILITY REQUIREMENTS IN
UNEMPLOYMENT INSURANCE PROGRAMS.
(a) Study.--The Comptroller General of the United States shall
conduct a study on the use of work suitability requirements to
strengthen requirements to ensure that unemployment insurance benefits
are being provided to individuals who are actively looking for work and
who truly want to return to the labor force. Such study shall include
an analysis of--
(1) how work suitability requirements work under both State
and Federal unemployment insurance programs; and
(2) how to incorporate and improve such requirements under
Federal unemployment insurance programs; and
(3) other items determined appropriate by the Comptroller
General.
(b) Briefing.--Not later than 90 days after the date of the
enactment of this Act, the Comptroller General of the United States
shall brief Congress on the ongoing study required under subsection
(a). Such briefing shall include preliminary recommendations for such
legislation and administrative action as the Comptroller General
determines appropriate.
SEC. 108. FUNDING STABILIZATION.
(a) Funding Stabilization Under the Internal Revenue Code.--The
table in subclause (II) of section 430(h)(2)(C)(iv) of the Internal
Revenue Code of 1986 is amended to read as follows:
----------------------------------------------------------------------------------------------------------------
The applicable minimum
``If the calendar year is: percentage is: The applicable maximum percentage is:
----------------------------------------------------------------------------------------------------------------
2012, 2013, 2014, 2015, 2016, or 2017. 90%.......................... 110%
2018.................................. 85%.......................... 115%
2019.................................. 80%.......................... 120%
2020.................................. 75%.......................... 125%
After 2020............................ 70%.......................... 130%''.
----------------------------------------------------------------------------------------------------------------
(b) Funding Stabilization Under ERISA.--
(1) In general.--The table in subclause (II) of section
303(h)(2)(C)(iv) of the Employee Retirement Income Security Act
of 1974 is amended to read as follows:
----------------------------------------------------------------------------------------------------------------
The applicable minimum
``If the calendar year is: percentage is: The applicable maximum percentage is:
----------------------------------------------------------------------------------------------------------------
2012, 2013, 2014, 2015, 2016, or 2017. 90%.......................... 110%
2018.................................. 85%.......................... 115%
2019.................................. 80%.......................... 120%
2020.................................. 75%.......................... 125%
After 2020............................ 70%.......................... 130%''.
----------------------------------------------------------------------------------------------------------------
(2) Conforming amendment.--
(A) In general.--Clause (ii) of section
101(f)(2)(D) of such Act is amended by striking
``2015'' and inserting ``2020''.
(B) Statements.--The Secretary of Labor shall
modify the statements required under subclauses (I) and
(II) of section 101(f)(2)(D)(i) of such Act to conform
to the amendments made by this section.
(c) Stabilization Not To Apply for Purposes of Certain Accelerated
Benefit Distribution Rules.--
(1) Internal revenue code of 1986.--The second sentence of
paragraph (2) of section 436(d) of the Internal Revenue Code of
1986 is amended by striking ``of such plan'' and inserting ``of
such plan (determined by not taking into account any adjustment
of segment rates under section 430(h)(2)(C)(iv))''.
(2) Employee retirement income security act of 1974.--The
second sentence of subparagraph (B) of section 206(g)(3) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1056(g)(3)(B)) is amended by striking ``of such plan'' and
inserting ``of such plan (determined by not taking into account
any adjustment of segment rates under section
303(h)(2)(C)(iv))''.
(3) Effective date.--
(A) In general.--Except as provided in subparagraph
(B), the amendments made by this subsection shall apply
to plan years beginning after December 31, 2014.
(B) Collectively bargained plans.--In the case of a
plan maintained pursuant to 1 or more collective
bargaining agreements, the amendments made by this
subsection shall apply to plan years beginning after
December 31, 2015.
(4) Provisions relating to plan amendments.--
(A) In general.--If this paragraph applies to any
amendment to any plan or annuity contract, such plan or
contract shall be treated as being operated in
accordance with the terms of the plan during the period
described in subparagraph (B)(ii).
(B) Amendments to which paragraph applies.--
(i) In general.--This paragraph shall apply
to any amendment to any plan or annuity
contract which is made--
(I) pursuant to the amendments made
by this subsection, or pursuant to any
regulation issued by the Secretary of
the Treasury or the Secretary of Labor
under any provision as so amended, and
(II) on or before the last day of
the first plan year beginning on or
after January 1, 2016, or such later
date as the Secretary of the Treasury
may prescribe.
(ii) Conditions.--This subsection shall not
apply to any amendment unless, during the
period--
(I) beginning on the date that the
amendments made by this subsection or
the regulation described in clause
(i)(I) takes effect (or in the case of
a plan or contract amendment not
required by such amendments or such
regulation, the effective date
specified by the plan), and
(II) ending on the date described
in clause (i)(II) (or, if earlier, the
date the plan or contract amendment is
adopted),
the plan or contract is operated as if such
plan or contract amendment were in effect, and
such plan or contract amendment applies
retroactively for such period.
(C) Anti-cutback relief.--A plan shall not be
treated as failing to meet the requirements of section
204(g) of the Employee Retirement Income Security Act
of 1974 and section 411(d)(6) of the Internal Revenue
Code of 1986 solely by reason of a plan amendment to
which this paragraph applies.
(d) Modification of Funding Target Determination Periods.--
(1) Internal revenue code of 1986.--Clause (i) of section
430(h)(2)(B) of the Internal Revenue Code of 1986 is amended by
striking ``the first day of the plan year'' and inserting ``the
valuation date for the plan year''.
(2) Employee retirement income security act of 1974.--
Clause (i) of section 303(h)(2)(B) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1083(h)(2)(B)(i)) is
amended by striking ``the first day of the plan year'' and
inserting ``the valuation date for the plan year''.
(e) Effective Date.--
(1) In general.--The amendments made by subsections (a),
(b), and (d) shall apply with respect to plan years beginning
after December 31, 2012.
(2) Elections.--A plan sponsor may elect not to have the
amendments made by subsections (a), (b), and (d) apply to any
plan year beginning before January 1, 2014, either (as
specified in the election)--
(A) for all purposes for which such amendments
apply, or
(B) solely for purposes of determining the adjusted
funding target attainment percentage under sections 436
of the Internal Revenue Code of 1986 and 206(g) of the
Employee Retirement Income Security Act of 1974 for
such plan year.
A plan shall not be treated as failing to meet the requirements
of section 204(g) of such Act and section 411(d)(6) of such
Code solely by reason of an election under this paragraph.
SEC. 109. PREPAYMENT OF CERTAIN PBGC PREMIUMS.
(a) In General.--Section 4007 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1307) is amended by adding at the end
the following new subsection:
``(f) Election To Prepay Flat Dollar Premiums.--
``(1) In general.--The designated payor may elect to prepay
during any plan year the premiums due under clause (i) or (v),
whichever is applicable, of section 4006(a)(3)(A) for the
number of consecutive subsequent plan years (not greater than
5) specified in the election.
``(2) Amount of prepayment.--
``(A) In general.--The amount of the prepayment for
any subsequent plan year under paragraph (1) shall be
equal to the amount of the premium determined under
clause (i) or (v), whichever is applicable, of section
4006(a)(3)(A) for the plan year in which the prepayment
is made.
``(B) Additional participants.--If there is an
increase in the number of participants in the plan
during any plan year with respect to which a prepayment
has been made, the designated payor shall pay a premium
for such additional participants at the premium rate in
effect under clause (i) or (v), whichever is
applicable, of section 4006(a)(3)(A) for such plan
year. No credit or other refund shall be granted in the
case of a plan that has a decrease in number of
participants during a plan year with respect to which a
prepayment has been made.
``(C) Coordination with premium for unfunded vested
benefits.--The amount of the premium determined under
section 4006(a)(3)(A)(i) for the purpose of determining
the prepayment amount for any plan year shall be
determined without regard to the increase in such
premium under section 4006(a)(3)(E). Such increase
shall be paid in the same amount and at the same time
as it would otherwise be paid without regard to this
subsection.
``(3) Election.--The election under this subsection shall
be made at such time and in such manner as the corporation may
prescribe.''.
(b) Conforming Amendment.--The second sentence of subsection (a) of
section 4007 of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1307) is amended by striking ``Premiums'' and inserting ``Except
as provided in subsection (f), premiums''.
(c) Effective Date.--The amendments made by this section shall
apply to plan years beginning after the date of the enactment of this
Act.
SEC. 110. EXTENSION OF CUSTOMS USER FEES.
Section 13031(j)(3) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended--
(1) in subparagraph (A), by striking ``September 30, 2023''
and inserting ``September 30, 2024''; and
(2) in subparagraph (B)(i), by striking ``September 30,
2023'' and inserting ``September 30, 2024''.
SEC. 111. EMERGENCY SERVICES, GOVERNMENT, AND CERTAIN NONPROFIT
VOLUNTEERS.
(a) In General.--Section 4980H(c) of the Internal Revenue Code of
1986 is amended by redesignating paragraphs (5), (6), and (7) as
paragraphs (6), (7), and (8), respectively, and by inserting after
paragraph (4) the following new paragraph:
``(5) Special rules for certain emergency services,
government, and nonprofit volunteers.--
``(A) Emergency services volunteers.--Qualified
services rendered as a bona fide volunteer to an
eligible employer shall not be taken into account under
this section as service provided by an employee. For
purposes of the preceding sentence, the terms
`qualified services', `bona fide volunteer', and
`eligible employer' shall have the respective meanings
given such terms under section 457(e).
``(B) Certain other government and nonprofit
volunteers.--
``(i) In general.--Services rendered as a
bona fide volunteer to a specified employer
shall not be taken into account under this
section as service provided by an employee.
``(ii) Bona fide volunteer.--For purposes
of this subparagraph, the term `bona fide
volunteer' means an employee of a specified
employer whose only compensation from such
employer is in the form of--
``(I) reimbursement for (or
reasonable allowance for) reasonable
expenses incurred in the performance of
services by volunteers, or
``(II) reasonable benefits
(including length of service awards),
and nominal fees, customarily paid by
similar entities in connection with the
performance of services by volunteers.
``(iii) Specified employer.--For purposes
of this subparagraph, the term `specified
employer' means--
``(I) any government entity, and
``(II) any organization described
in section 501(c) and exempt from tax
under section 501(a).
``(iv) Coordination with subparagraph
(a).--This subparagraph shall not fail to apply
with respect to services merely because such
services are qualified services (as defined in
section 457(e)(11)(C)).''.
(b) Effective Date.--The amendments made by this section shall
apply to months beginning after December 31, 2013.
TITLE II--PROVISIONS RELATING TO JOB CREATION
SEC. 201. TREATMENT OF EMPLOYMENT ASSISTANCE VOUCHER PROGRAMS.
(a) Use of Unemployment Fund for Employment Assistance Voucher
Program.--
(1) State law.--Section 3304(a)(4) of the Internal Revenue
Code of 1986 is amended by striking ``and'' at the end of
subparagraph (F), by inserting ``and'' at the end of
subparagraph (G), and by adding at the end the following new
subparagraph:
``(H) during the 120-day period beginning on the
date of the enactment of the Emergency Unemployment
Compensation Extension Act of 2014, amounts may be
withdrawn for the payment of allowances under an
employment assistance voucher program (as defined in
section 3306(v));''.
(2) Permissible expenditures.--Section 3306(f) of such Code
is amended--
(A) by striking ``and'' at the end of paragraph
(5),
(B) by redesignating the paragraph relating to the
self-employment assistance program as paragraph (6) and
striking the period at the end of such paragraph and
inserting ``; and'', and
(C) by adding at the end the following new
paragraph:
``(7) during the 120-day period beginning on the date of
the enactment of the Emergency Unemployment Compensation
Extension Act of 2014, amounts may be withdrawn for the payment
of allowances under an employment assistance voucher program
(as defined in subsection (v)).''.
(b) Employment Assistance Voucher Program Defined.--Section 3306 of
such Code is amended by adding at the end the following new subsection:
``(v) Employment Assistance Voucher Program.--For the purposes of
this chapter--
``(1) In general.--The term `employment assistance voucher
program' means a program under which--
``(A) an eligible individual is issued an
employment assistance voucher,
``(B) upon employment with an employer described in
paragraph (5)--
``(i) the eligible individual transfers the
employment assistance voucher to the employer,
``(ii) the individual ceases to receive
unemployment compensation and is paid wages by
the employer, and
``(iii) the employer receives payments upon
presenting the voucher to the State, and
``(C) the program meets such other requirements as
the Secretary of Labor determines to be appropriate.
``(2) Rules relating to unemployed individuals.--For
purposes of paragraph (1)--
``(A) Compensation.--Compensation pursuant to
paragraph (1)(B)(ii) shall--
``(i) not be less than 200 percent of the
unemployment compensation otherwise payable to
the individual on the date of the individual's
employment under the employment assistance
voucher program,
``(ii) not be less than the minimum wage
(as specified in section 6 of the Fair Labor
Standards Act of 1938), and
``(iii) be payable for a period not to
exceed the maximum number of remaining weeks of
unemployment compensation (including
supplemental and emergency) to which the
employee would be entitled (but for
participating in the employment assistance
voucher program), determined as of the date of
employment.
``(B) Termination of employment.--If, before the
end of the period referred to in subparagraph (A)(iii),
an individual's employment with an employer under the
employment assistance voucher program is terminated for
reasons other than cause, the individual is entitled to
the remaining period of entitlement referred to in
subparagraph (A)(iii) less the number of weeks of such
employment.
``(C) Certain requirements not to apply.--State
requirements relating to availability for work, active
search for work, and refusal to accept work are not
applicable to individuals participating in the
employment assistance voucher program.
``(3) Employment assistance voucher.--The term `employment
assistance voucher' means a voucher--
``(A) obtained by an eligible individual pursuant
to the State law, and
``(B) payable to the employer of the eligible
individual--
``(i) at a rate determined under State law
but not to exceed 90 percent of the amount of
unemployment compensation to which the eligible
individual is entitled, and
``(ii) on the same schedule as unemployment
compensation would be payable to the individual
but for employment under the employment
assistance voucher program.
``(4) Eligible individual.--The term `eligible individual'
means an individual who--
``(A) is eligible to receive regular unemployment
compensation under the State law, extended
unemployment, or emergency unemployment or would be
eligible to receive such compensation except for the
requirements described in paragraph (1)(B),
``(B) is identified pursuant to a State worker
profiling system as an individual likely to exhaust
regular unemployment compensation,
``(C) immediately prior to employment by the
eligible employer, was unemployed for not less than 6
months, and
``(D) is employed by an eligible employer.
``(5) Eligible employer.--The term `eligible employer'
means an employer who agrees to the terms and conditions of
employment under the unemployment assistance voucher program
and who is approved by the State agency.
``(6) Treatment of participating individuals under federal
and state law.--Individuals participating in an unemployment
assistance voucher program shall be treated as unemployed for
the purposes of Federal and State laws applicable to
unemployment compensation, except that wages paid to the
employee under such program shall be subject to Federal and
State taxation to the same extent and in the same manner as
wages generally.
``(7) Cost limiter.--A State program shall not be treated
as an employment assistance voucher program for purposes of
this chapter unless the program does not result in any cost to
the Unemployment Trust Fund (established by section 904(a) of
the Social Security Act) in excess of the cost that would be
incurred by such State and charged to such Fund, or to any
Federal funds in the system if the State had not participated
in such program.
``(8) Prevention of employment termination to participate
in program.--A State program shall not be treated as an
employment assistance voucher program for purposes of this
chapter unless the State has in effect measures to prevent
employers from terminating employment for purposes of
participating in the employment assistance voucher program.
``(9) Prevention in terminating employees during program.--
A State program shall not be treated as an employment
assistance voucher program for purposes of this chapter unless
the State has in effect measures to recoup payments made to an
employer under the program if the employer has terminated from
employment more employees during the 120-day period referred to
in section 3304(a)(4)(H) than the employer has hired under the
program.''.
(c) Conforming Amendment.--Section 303(a)(5) of the Social Security
Act (42 U.S.C. 503(a)(5)) is amended by striking ``; and'' and
inserting ``: Provided further, That amounts may be withdrawn for the
payment of allowances under an employment assistance voucher program
(as defined in section 3306(v) of the Internal Revenue Code of 1986);
and''.
(d) State Reports.--Any State operating an employment assistance
voucher program approved by the Secretary of Labor pursuant to section
3304(a)(4)(H) of the Internal Revenue Code of 1986 (as added by this
section) shall report annually to the Secretary on the number of
individuals who participate in the program, the operating costs of the
program, compliance with program requirements, and any other relevant
aspects of program operations requested by the Secretary.
(e) Report to Congress.--Not later than 1 year after the date of
the enactment of this Act, the Secretary of Labor shall submit a report
to the Congress with respect to the operation of the employment
assistance voucher program. Such report shall be based on the reports
received from the States pursuant to subsection (d) and include such
other information as the Secretary of Labor determines is appropriate.
(f) Effective Date.--The provisions of this section and the
amendments made by this section shall take effect on the date of the
enactment of this Act.
SEC. 202. DISADVANTAGED BUSINESS ENTERPRISES.
Section 1101(b) of MAP-21 (23 U.S.C. 101 note) is amended--
(1) in paragraph (2) by adding at the end the following:
``(C) Veteran-owned small business concern.--The
term `veteran-owned small business concern' has the
meaning given the term `small business concern owned
and controlled by veterans' in section 3(q) of the
Small Business Act (15 U.S.C. 632(q)).'';
(2) in paragraph (3) by inserting ``and veteran-owned small
business concerns'' before the period at the end; and
(3) in paragraph (4)(B)--
(A) in clause (ii) by striking ``and'' at the end;
(B) in clause (iii) by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(iv) veterans.''.
SEC. 203. AMERICA STAR PROGRAM.
(a) In General.--The Secretary shall establish a voluntary program,
to be known as the ``America Star Program'', under which manufacturers
may have products certified as meeting the standards of labels that
indicate to consumers the extent to which the products are manufactured
in the United States.
(b) Establishment of Labels.--
(1) In general.--The Secretary shall by rule establish such
America Star labels as the Secretary considers appropriate,
including the content of the labels and the standards that a
product shall meet in order to bear a particular America Star
label. The labels shall be consistent with public perceptions
of the meaning of descriptions of the extent to which a product
is manufactured in the United States.
(2) Goals.--The America Star labels shall be designed to
achieve the following goals:
(A) Providing clarity for consumers about the
extent to which products are manufactured in the United
States.
(B) Encouraging manufacturers to manufacture more
products in the United States.
(C) Highlighting the importance of domestic
manufacturing for the economy of the United States.
(c) Certification of Products.--
(1) Application procedures.--A manufacturer that wishes to
have a product certified as meeting the standards of an America
Star label may apply to the Secretary for certification in
accordance with such procedures as the Secretary shall by rule
establish.
(2) Action by secretary.--After receiving an application
for certification under paragraph (1), the Secretary shall, not
later than a reasonable time to be specified by the Secretary
by rule--
(A) determine whether the product meets the
standards of the label;
(B) if the product meets such standards, certify
the product; and
(C) notify the manufacturer of the determination
and whether the product has been certified.
(d) Monitoring; Withdrawal of Certification.--
(1) Monitoring.--The Secretary shall conduct such
monitoring and compliance review as the Secretary considers
necessary to--
(A) detect violations of subsection (h); and
(B) ensure that products certified as meeting the
standards of America Star labels continue to meet such
standards.
(2) Withdrawal of certification.--
(A) On initiative of secretary.--If the Secretary
determines that a product certified as meeting the
standards of an America Star label no longer meets such
standards, the Secretary shall--
(i) notify the manufacturer of the
determination and any corrective action that
would enable the product to meet such
standards; and
(ii) if the manufacturer does not take such
action within a reasonable time after receiving
notification under clause (i), to be specified
by the Secretary by rule, the Secretary shall
withdraw the certification of the product and
notify the manufacturer of the withdrawal.
(B) At request of manufacturer.--At the request of
the manufacturer of a product, the Secretary shall
withdraw the certification of the product and notify
the manufacturer of the withdrawal.
(e) Regulations.--
(1) In general.--The Secretary may promulgate such
regulations as are necessary to implement this section.
(2) Deadline.--Not later than 2 years after the date of the
enactment of this Act, the Secretary shall promulgate such
regulations as are necessary to begin certifying products under
the America Star Program.
(f) Administration by Contract.--The Secretary may enter into a
contract with a person under which such person carries out
certification determinations under subsection (c), monitoring
activities and withdrawal determinations under subsection (d),
collection of fees under subsection (k)(1) and the remission of such
fees to the Secretary (but not the establishment of the amounts of such
fees), and related administrative activities. For purposes of
subsections (h) and (j), such a determination, activity, or collection
by such person shall be considered to be an action of the Secretary.
(g) Consultation.--
(1) With federal trade commission.--In establishing the
America Star labels and operating the America Star Program, the
Secretary shall consult with the Federal Trade Commission to
ensure consistency with the requirements enforced by the
Commission with respect to representations of the extent to
which products are manufactured in the United States.
(2) With private-sector companies.--In establishing the
America Star labels and operating the America Star Program, the
Secretary should consult with private-sector companies that
have developed labeling programs to verify or certify to
consumers the extent to which products are manufactured in the
United States.
(h) Prohibited Conduct.--Unless there is in effect a certification
by the Secretary that a product meets the standards of an America Star
label, a person may not place such label on such product, use such
label in any marketing materials for such product, or in any other way
represent that such product meets or is certified as meeting the
standards of such label.
(i) Enforcement.--
(1) Civil penalty.--Any person who knowingly violates
subsection (h) shall be subject to a civil penalty of not more
than $10,000.
(2) Ineligibility.--
(A) In general.--Except as provided in subparagraph
(C), if the Secretary determines that a manufacturer--
(i) has made a false statement to the
Secretary in connection with the America Star
Program;
(ii) knowing, or having reason to know,
that a product does not meet the standards of
an America Star label, has placed such label on
such product, has used such label in any
marketing materials for such product, or in any
other way has represented that such product
meets or is certified as meeting the standards
of such label; or
(iii) has otherwise violated the purposes
of the America Star Program;
the Secretary may not, for a period of 5 years after
the conduct described in clause (i), (ii), or (iii),
certify the product to which such conduct relates as
meeting the standards of an America Star label.
(B) Effect on existing certification.--In the case
of a product with respect to which, at the time of the
determination of the Secretary under subparagraph (A),
there is in effect a certification by the Secretary
that the product meets the standards of an America Star
label--
(i) if the product continues to meet such
standards, the Secretary may either withdraw
the certification or allow the certification to
continue in effect, as the Secretary considers
appropriate; and
(ii) if the product no longer meets such
standards, the Secretary shall withdraw the
certification.
(C) Waiver.--Notwithstanding subparagraph (A), the
Secretary may waive or reduce the period referred to in
such subparagraph if the Secretary determines that the
waiver or reduction is in the best interests of the
America Star Program.
(3) False statements.--A false statement in connection with
the America Star Program to a person with whom the Secretary
contracts under subsection (f) shall be considered a false
statement to the Secretary for purposes of paragraph (2)(A)(i)
and section 1001 of title 18, United States Code.
(j) Administrative Appeal.--
(1) Expedited appeals procedure.--The Secretary shall
establish an expedited administrative appeals procedure under
which persons may appeal an action of the Secretary under this
section that--
(A) adversely affects such person; or
(B) is inconsistent with the America Star Program.
(2) Appeal of final decision.--A final decision of the
Secretary under paragraph (1) may be appealed to the United
States district court for the district in which the person is
located.
(k) Offsetting Collections.--
(1) In general.--The Secretary may collect reasonable fees
from--
(A) manufacturers that apply for certification of
products as meeting the standards of America Star
labels; and
(B) manufacturers of products for which such
certifications are in effect.
(2) Account.--The fees collected under paragraph (1) shall
be credited to the account that incurs the cost of the
certification services provided under this section.
(3) Use.--The fees collected under paragraph (1) shall be
available to the Secretary, without further appropriation or
fiscal-year limitation, to pay the expenses of the Secretary
incurred in providing certification services under this
section.
(l) Definitions.--In this section:
(1) America star label.--The term ``America Star label''
means a label described in subsection (a) and established by
the Secretary under subsection (b)(1).
(2) America star program.--The term ``America Star
Program'' means the voluntary labeling program established
under this section.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
SEC. 204. FOSTERING INNOVATION.
Not later than 180 days after the date of the enactment of this
Act, the Securities and Exchange Commission shall revise the definition
of ``accelerated filer'', as such term is defined in Rule 12b-2 of the
Commission (17 C.F.R. 240.12b-2), to include issuers that have annual
revenues of greater than $100,000,000 during the most recently
completed fiscal year for which audited financial statements are
available and have an aggregated worldwide market value of the voting
and non-voting common equity held by its non-affiliates of $250,000,000
or more, but less than $700,000,000, as of the last business day of the
issuer's most recently completed second fiscal quarter.
SEC. 205. PARTNERSHIP TO BUILD AMERICA.
(a) American Infrastructure Fund.--
(1) American infrastructure fund.--
(A) In general.--There is established a wholly
owned Government corporation to be called the American
Infrastructure Fund (``AIF'')--
(i) which shall be headed by the Board of
Trustees established under paragraph (2);
(ii) which may have separate sub-accounts
or subsidiaries for funds used to make loans,
bond guarantees, and equity investments under
this subsection and funds used to make bond
guarantees under this subsection;
(iii) which shall be available to the AIF
to pay for the costs of carrying out this
subsection, including the compensation of the
Board and other employees of the AIF; and
(iv) the funds of which may be invested by
the Board in such manner as the Board
determines appropriate.
(B) Deposits to aif.--All funds received from bond
issuances, loan payments, bond guarantee fees, and any
other funds received in carrying out this subsection
shall be held by AIF.
(C) Limitations.--The charter of the AIF shall
limit its activities to those activities described as
the mission of the Board under paragraph (2)(B).
(D) Oversight.--The AIF shall register with the
Securities and Exchange Commission and the Secretary
shall report to Congress annually as to whether the AIF
is fulfilling the mission of the Board under paragraph
(2)(B).
(E) Treatment of aif.--Title 31, United States
Code, is amended in each of sections 9107(c)(3) and
9108(d)(2)--
(i) by inserting ``the American
Infrastructure Fund,'' after ``the Regional
Banks for Cooperatives,''; and
(ii) by striking ``those banks'' and
inserting ``those entities''.
(2) Board of trustees.--
(A) In general.--There is established a Board of
Trustees of the AIF (the ``Board''), which shall be
composed of 11 members, of which at least 4 must be
risk management experts, as certified by the Board,
having substantial experience in bond guarantees or
municipal credit.
(B) Mission.--The Mission of the Board is--
(i) to operate the AIF and its subsidiaries
to be a low cost provider of bond guarantees,
loans, and equity investments to State and
local governments and non-profit infrastructure
providers for both urban and rural non-profit
infrastructure projects that provide a positive
economic impact and to meet such other
standards as the Board may develop;
(ii) to operate the AIF in a self-
sustaining manner so as to allow the AIF to
repay its infrastructure bonds when due;
(iii) to not have a profit motive, but seek
at all times to pursue its mission of providing
low cost bond guarantees and loans while
covering its costs, reserves as may be needed,
and applying prudent underwriting standards;
(iv) to only consider projects put forth by
State and local governments and not to seek
projects directly;
(v) to at all times make clear that no
taxpayer money supports the AIF or ever will;
and
(vi) to engage in no other activities other
than those permitted under this subsection.
(C) Membership.--
(i) Presidentially appointed members.--
Except as provided under clause (iii), 4
members of the Board shall be appointed by the
President, by and with the advice and consent
of the Senate, and serve for a term of 7 years.
(ii) Additional members.--Except as
provided under clause (iii), 7 members of the
Board shall be appointed by the current members
of the Board appointed pursuant to this clause
or clause (iii)(II), and serve for a term of 7
years.
(iii) Initial members.--The Board shall
initially consist of the following members, who
shall be appointed not later than the end of
the 60-day period beginning on the date that
bonds are issued under paragraph (5):
(I) Four members, appointed by the
President, by and with the advice and
consent of the Senate.
(II) Seven additional members,
appointed one each by the seven
entities purchasing the largest amount
of bonds (by aggregate face amount of
bonds purchased) under paragraph (5).
(iv) Staggered terms.--The members of the
Board shall serve staggered terms, with 2 each
of the initial members of the Board serving for
terms of 4, 5, 6, 7, and 8 years, respectively,
and the initial Chair selected under clause (v)
serving for 9 years. The decision of which
Board members, other than the Chair, serve for
which initial terms shall be made by the
members of the Board drawing lots.
(v) Chair.--The members of the Board shall
choose 1 member to serve as the Chair of the
Board for a term of 7 years, except that the
initial Chair shall serve for a term of 7
years, as described under clause (iv).
(vi) Vacancies.--Any member of the Board
appointed to fill a vacancy occurring before
the expiration of the term to which that
member's predecessor was appointed shall be
appointed only for the remainder of the term.
(vii) Continuation of service.--Each member
of the Board may continue to serve after the
expiration of the term of office to which that
member was appointed until a successor has been
appointed.
(viii) Conflicts of interest.--No member of
the Board may have a financial interest in, or
be employed by, a Qualified Infrastructure
Project (``QIP'') related to assistance
provided under this subsection or any entity
that has purchased bonds under paragraph (5).
Owning municipal credit of any State or local
government or owning the securities of a
diversified company that engages in
infrastructure activities, provided those
activities constitute less than 20 percent of
the company's revenues, or investing in broadly
held investment funds shall not be deemed to
create a conflict of interest. The Board may
issue regulations to define terms used under
this clause.
(D) Compensation.--The members of the Board shall
be compensated at an amount to be set by the Board, but
under no circumstances may such compensation be higher
than the rate prescribed for level IV of the Executive
Schedule under section 5315 of title 5, United States
Code.
(E) Staff.--The Board shall employ and set
compensation for such staff as the Board determines as
is necessary to carry out the activities and mission of
the AIF, and such staff may be paid without regard to
the provisions of chapter 51 and subchapter III of
chapter 53, United States Code, relating to
classification and General Schedule pay rates.
(F) Procedures.--The Board shall establish such
procedures as are necessary to carry out this
subsection.
(G) Corporate governance standards.--
(i) Board committees generally.--The Board
shall maintain all of the committees required
to be maintained by the board of directors of
an issuer listed on the New York Stock Exchange
as of the date of the enactment of this
subsection.
(ii) Risk management committee.--The Board
shall maintain a risk management committee,
which shall--
(I) consist of 4 members of the
Board, with the initial 4 members
consisting of 2 members appointed under
paragraph (3)(C)(i) and 2 members
appointed under subparagraph
(C)(iii)(II);
(II) employ additional staff who
are certified by the Board as having
significant and relevant experience in
insurance underwriting and credit risk
management; and
(III) establish the risk management
policies used by the Board.
(iii) Standards.--The Board shall, to the
extent practicable, follow all standards with
respect to corporate governance that are
required to be followed by the board of
directors of an issuer listed on the New York
Stock Exchange as of the date of the enactment
of this subsection.
(3) Infrastructure investment.--
(A) In general.--The AIF shall provide bond
guarantees to debt issued by State and local
governments and non-profit infrastructure providers,
make loans to States, local governments, and non-profit
infrastructure providers, and make equity investments
in projects sponsored by State and local governments
and non-profit infrastructure provider to help
Qualified Infrastructure Projects (``QIPs''). The AIF
may not make any loans or provide bond guaranties to
for-profit entities.
(B) Qualified infrastructure projects.--A project
qualifies as a QIP under this subsection if--
(i) the project involves the construction,
maintenance, improvement, or repair of a
transportation, energy, water, communications,
or educational facility; and
(ii) the recipient of bond guarantees,
loans, equity investments, or any other
financing technique authorized under this Act
provides written assurances prescribed by the
AIF that the project will be performed in
compliance with the requirements of all Federal
laws that would otherwise apply to similar
projects to which the United States is a party.
(C) Application for assistance.--
(i) In general.--A State or local
government that wishes to receive a loan or
bond guarantee under this subsection shall
submit an application to the Board in such form
and manner and containing such information as
the Board may require.
(ii) Requirement for non-profit
infrastructure providers to apply through state
or local governments.--A non-profit
infrastructure provider may only receive a bond
guarantee, loan, or equity investment under
this subsection if the State or local
government for the jurisdiction in which the
non-profit infrastructure provider is located
submits an application pursuant to clause (i)
on behalf of such non-profit infrastructure
provider.
(D) Limitations on single state awards.--
(i) Annual limitation.--The Board shall set
an annual limit, as a percentage of total
assistance provided under this subsection
during a year, on the amount of assistance a
single State (including local governments and
other non-profit infrastructure providers
within such State) may receive in assistance
provided under this subsection.
(ii) Cumulative limitation.--The Board
shall set a limit, as a percentage of total
assistance provided under this subsection
outstanding at any one time, on the amount of
assistance a single State (including local
governments and other non-profit infrastructure
providers within such State) may receive in
assistance provided under this subsection.
(E) Loan specifications.--Loans made under this
subsection shall have such maturity and carry such
interest rate as the Board determines appropriate.
(F) Bond guarantee.--The Board shall charge such
fees for Bond guarantees made under this subsection as
the Board determines appropriate.
(G) Equity investments.--With respect to a QIP, the
amount of an equity investment made by the AIF in such
QIP may not exceed 20 percent of the total cost of the
QIP.
(H) Public-private partnership requirements.--At
least 25 percent of the assistance provided under this
subsection shall be provided to QIPs for which at least
20 percent of the financing for such QIPs comes from
private debt or equity.
(I) Prohibition on principal forgiveness.--With
respect to a loan made under this subsection, the Board
may not forgive any amount of principal on such loan.
(4) American infrastructure bonds.--
(A) In general.--The Secretary shall, not later
than the end of the 90-day period following the date of
the enactment of this subsection and acting through the
AIF, issue bonds, to be called ``American
Infrastructure Bonds'', the proceeds from which shall
be deposited into the AIF.
(B) Forms and denominations; interest.--American
Infrastructure Bonds shall--
(i) be in such forms and denominations as
determined by the Secretary, and shall have a
50-year maturity; and
(ii) bear interest of 1 percent.
(C) No full faith and credit.--Interest and
principal payments paid to holders of American
Infrastructure Bonds shall be paid from the AIF, to the
extent funds are available, and shall not be backed by
the full faith and credit of the United States.
(D) Amount of bonds.--The aggregate face amount of
the bonds issued under this paragraph shall be
$50,000,000,000.
(E) Sale of american infrastructure bonds.--
(i) Competitive bidding process.--The
Secretary shall sell the $50,000,000,000 of
American Infrastructure Bonds--
(I) through a competitive bidding
process that encourages aggressive
bidding;
(II) in a manner so as to ensure
that there are at least 7 different un-
affiliated purchasers; and
(III) with prospective purchasers
bidding on how low of a multiplier they
will accept (for purposes of subsection
(b)(1) of section 966 of the Internal
Revenue Code of 1986) when purchasing
the American Infrastructure Bonds, for
purposes of applying the foreign
earnings exclusion described under that
section.
(ii) Limitation.--The multiplier described
under clause (i)(III) may not be greater than
6.
(F) Reimbursement of costs.--The Board shall repay
the Secretary, from funds in the AIF, for the costs to
the Secretary in carrying out this paragraph.
(5) Additional bonds.--
(A) In general.--The Board may issue such other
bonds as the Board determines appropriate, the proceeds
from which shall be deposited into the AIF.
(B) No full faith and credit.--Interest and
principal payments paid to holders of bonds issued
pursuant to subparagraph (A) shall be paid from the
AIF, to the extent funds are available, and shall not
be backed by the full faith and credit of the United
States.
(6) Definitions.--For purposes of this subsection--
(A) Bond guarantee.--The term ``bond guarantee''
has the meaning given the term ``loan guarantee'' under
section 502 of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a).
(B) Cost.--With respect to a loan or a bond
guarantee, the term ``cost'' has the meaning given such
term under section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a).
(C) Non-profit infrastructure provider.--The term
``non-profit infrastructure provider'' means a non-
profit entity that seeks to finance a QIP.
(D) Loan.--The term ``loan'' has the meaning given
the term ``direct loan'' under section 502 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
(E) Secretary.--The term ``Secretary'' means the
Secretary of the Treasury.
(F) State.--The term ``State'' means each of the
several States, the District of Columbia, any territory
or possession of the United States, and each federally
recognized Indian tribe.
(b) Foreign Earnings Exclusion for Purchase of Infrastructure
Bonds.--
(1) In general.--Subpart F of part III of subchapter N of
chapter 1 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new section:
``SEC. 966. FOREIGN EARNINGS EXCLUSION FOR PURCHASE OF INFRASTRUCTURE
BONDS.
``(a) Exclusion.--In the case of a corporation which is a United
States shareholder and for which the election under this section is in
effect for the taxable year, gross income does not include an amount
equal to the qualified cash dividend amount.
``(b) Qualified Cash Dividend Amount.--For purposes of this
section, the term `qualified cash dividend amount' means an amount of
the cash dividends which are received during a taxable year by such
shareholder from controlled foreign corporations equal to--
``(1) the multiplier determined under section 205(a)(4)(E)
of the Emergency Unemployment Compensation Extension Act of
2014 for such shareholder, multiplied by
``(2) the face amount of qualified infrastructure bonds
acquired at its original issue (directly or through an
underwriter) by such shareholder.
``(c) Limitations.--
``(1) In general.--The amount of dividends taken into
account under subsection (a) for a taxable year shall not
exceed the lesser of--
``(A) the cash dividends received by the taxpayer
for such taxable year, or
``(B) the amount shown on the applicable financial
statement as earnings permanently reinvested outside
the United States.
``(2) Dividends must be extraordinary.--The amount of
dividends taken into account under subsection (a) shall not
exceed the excess (if any) of--
``(A) the cash dividends received during the
taxable year by such shareholder from controlled
foreign corporations, over
``(B) the annual average for the base period years
of the cash dividends received during each base period
year by such shareholder from controlled foreign
corporations.
``(3) Reduction of benefit if increase in related party
indebtedness.--The amount of dividends which would (but for
this paragraph) be taken into account under subsection (a)
shall be reduced by the excess (if any) of--
``(A) the amount of indebtedness of the controlled
foreign corporation to any related person (as defined
in section 954(d)(3)) as of the close of the taxable
year for which the election under this section is in
effect, over
``(B) the amount of indebtedness of the controlled
foreign corporation to any related person (as so
defined) as of the close of the preceding taxable year.
All controlled foreign corporations with respect to which the
taxpayer is a United States shareholder shall be treated as 1
controlled foreign corporation for purposes of this subsection.
The Secretary may prescribe such regulations as may be
necessary or appropriate to prevent the avoidance of the
purposes of this subsection, including regulations which
provide that cash dividends shall not be taken into account
under subsection (a) to the extent such dividends are
attributable to the direct or indirect transfer (including
through the use of intervening entities or capital
contributions) of cash or other property from a related person
(as so defined) to a controlled foreign corporation.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Qualified infrastructure bonds.--The term `qualified
infrastructure bond' means a bond issued under section
205(a)(4) of the Emergency Unemployment Compensation Extension
Act of 2014.
``(2) Applicable financial statement.--The term `applicable
financial statement' means, with respect to a taxable year--
``(A) with respect to a United States shareholder
which is required to file a financial statement with
the Securities and Exchange Commission (or which is
included in such a statement so filed by another
person), the most recent audited annual financial
statement (including the notes which form an integral
part of such statement) of such shareholder (or which
includes such shareholder)--
``(i) which was so filed for such taxable
year, and
``(ii) which is certified as being prepared
in accordance with generally accepted
accounting principles, and
``(B) with respect to any other United States
shareholder, the most recent audited financial
statement (including the notes which form an integral
part of such statement) of such shareholder (or which
includes such shareholder)--
``(i) which is certified as being prepared
in accordance with generally accepted
accounting principles, and
``(ii) which is used for the purposes of a
statement or report--
``(I) to creditors,
``(II) to shareholders, or
``(III) for any other substantial
nontax purpose.
``(3) Base period years.--
``(A) In general.--The base period years are the 3
taxable years--
``(i) which are among the 5 most recent
preceding taxable years ending before the
taxable year, and
``(ii) which are determined by
disregarding--
``(I) 1 taxable year for which the
amount described in subsection
(c)(2)(B) is the largest, and
``(II) 1 taxable year for which
such amount is the smallest.
``(B) Shorter period.--If the taxpayer has fewer
than 5 taxable years ending before the taxable year,
then in lieu of applying subparagraph (A), the base
period years shall include all the taxable years of the
taxpayer ending before such taxable year.
``(C) Mergers, acquisitions, etc.--
``(i) In general.--Rules similar to the
rules of subparagraphs (A) and (B) of section
41(f)(3) shall apply for purposes of this
paragraph.
``(ii) Spin-offs, etc.--If there is a
distribution to which section 355 (or so much
of section 356 as relates to section 355)
applies during the 5-year period referred to in
subparagraph (A)(i) and the controlled
corporation (within the meaning of section 355)
is a United States shareholder--
``(I) the controlled corporation
shall be treated as being in existence
during the period that the distributing
corporation (within the meaning of
section 355) is in existence, and
``(II) for purposes of applying
subsection (c)(2) to the controlled
corporation and the distributing
corporation, amounts described in
subsection (c)(2)(B) which are received
or includible by the distributing
corporation or controlled corporation
(as the case may be) before the
distribution referred to in subclause
(I) from a controlled foreign
corporation shall be allocated between
such corporations in proportion to
their respective interests as United
States shareholders of such controlled
foreign corporation immediately after
such distribution.
Subclause (II) shall not apply if neither the
controlled corporation nor the distributing
corporation is a United States shareholder of
such controlled foreign corporation immediately
after such distribution.
``(4) Dividend.--The term `dividend' shall not include
amounts includible in gross income as a dividend under section
78, 367, or 1248. In the case of a liquidation under section
332 to which section 367(b) applies, the preceding sentence
shall not apply to the extent the United States shareholder
actually receives cash as part of the liquidation.
``(5) Coordination with dividend received deduction.--No
deduction shall be allowed under section 243 or 245 for any
dividend which is excluded from income by subsection (a).
``(6) Controlled groups.--All United States shareholders
which are members of an affiliated group filing a consolidated
return under section 1501 shall be treated as one United States
shareholder.
``(7) Reporting.--The Secretary shall require by regulation
or other guidance the reporting of such information as the
Secretary may require to carry out this section.
``(e) Denial of Foreign Tax Credit; Denial of Certain Expenses.--
``(1) Foreign tax credit.--
``(A) In general.--No credit shall be allowed under
section 901 for any taxes paid or accrued (or treated
as paid or accrued) with respect to the excluded
portion of any dividend.
``(B) Denial of deduction of related tax.--No
deduction shall be allowed under this chapter for any
tax for which credit is not allowable by reason of the
preceding sentence.
``(2) Expenses.--No deduction shall be allowed for expenses
directly allocable to the excludable portion described in
paragraph (1).
``(3) Excludable portion.--For purposes of paragraph (1),
unless the taxpayer otherwise specifies, the excludable portion
of any dividend or other amount is the amount which bears the
same ratio to the amount of such dividend or other amount as
the amount excluded from income under subsection (a) for the
taxable year bears to the amount described in subsection
(c)(2)(A) for such year.
``(4) Coordination with section 78.--Section 78 shall not
apply to any tax which is not allowable as a credit under
section 901 by reason of this subsection.
``(f) Election To Have Section Apply.--A taxpayer may elect to have
this section apply for any taxable year.''.
(2) Clerical amendment.--The table of sections for subpart
F of part III of subchapter N of chapter 1 of such Code is
amended by adding at the end the following new item:
``Sec. 966. Foreign earnings exclusion for purchase of infrastructure
bonds.''.
(3) Effective date.--The amendments made by this section
shall apply to dividends received for taxable years ending
after the date of the enactment of this Act.
SEC. 206. KEYSTONE XL PIPELINE.
Notwithstanding Executive Order No. 13337 (3 U.S.C. 301 note),
Executive Order No. 11423 (3 U.S.C. 301 note), section 301 of title 3,
United States Code, and any other Executive order or provision of law,
no Presidential permit shall be required to authorize the construction,
connection, operation, and maintenance of border crossing facilities
for the pipeline described in the application filed on May 4, 2012, by
TransCanada Keystone Pipeline, L.P., to the Department of State for the
Keystone XL pipeline, for the importation of crude oil to be located at
the United States-Canada Border.
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