,i #aacth ,,congress #ast ,session ,h4 ,r4 #bhba ,,in ,,the ,,house ,,of ,,representatives ,july #bd1 #bjac ,ms4 ,wilson of ,florida 7for herself1 ,ms4 ,pelosi1 ,mr4 ,clyburn1 ,ms4 ,fudge1 ,mr4 ,cicilline1 ,mr4 ,enyart1 ,ms4 ,hanabusa1 ,ms4 ,norton1 ,ms4 ,bass1 ,mr4 ,butterfield1 ,ms4 ,sewell of ,alabama1 ,mr4 ,richmond1 ,mr4 ,conyers1 ,ms4 ,brown of ,florida1 ,mrs4 ,christensen1 ,mr4 ,crdenas1 ,ms4 ,lee of ,california1 ,mr4 ,takano1 ,mrs4 ,napolitano1 ,ms4 ,de,lauro1 ,ms4 ,frankel of ,florida1 ,ms4 ,clarke1 ,mr4 ,brady of ,pennsylvania1 ,ms4 ,schakowsky1 ,mr4 ,tonko1 ,ms4 ,shea-,porter1 ,mr4 ,grijalva1 ,mr4 ,holt1 ,mr4 ,sablan1 ,mr4 ,cartwright1 ,ms4 ,wasserman ,schultz1 ,mr4 ,nadler1 ,mr4 ,larson of ,connecticut1 ,mr4 ,payne1 ,mr4 ,mc,govern1 ,ms4 ,eddie ,bernice ,johnson of ,texas1 ,mr4 ,rush1 ,ms4 ,moore1 ,mr4 ,veasey1 ,mrs4 ,beatty1 ,ms4 ,kelly of ,illinois1 ,mr4 ,al ,green of ,texas1 ,mr4 ,scott of ,virginia1 ,mr4 ,david ,scott of ,georgia1 ,mr4 ,johnson of ,georgia1 ,ms4 ,edwards1 ,mr4 ,rangel1 ,ms4 ,jackson ,lee1 ,mr4 ,jeffries1 ,mr4 ,bishop of ,georgia1 ,mr4 ,cleaver1 ,mr4 ,danny ,k4 ,davis of ,illinois1 ,mr4 ,thompson of ,mississippi1 ,mr4 ,carson of ,indiana1 ,ms4 ,waters1 ,mr4 ,watt1 ,mr4 ,lewis1 ,mr4 ,gutirrez1 ,mr4 ,clay1 ,mr4 ,cummings1 ,mr4 ,garcia1 ,ms4 ,mc,collum1 ,mr4 ,ellison1 ,mr4 ,fattah1 ,mr4 ,deutch1 ,mr4 ,meeks1 ,ms4 ,hahn1 ,mr4 ,carney1 and ,mr4 ,keating7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committees on ,small ,business1 ,education and the ,workforce1 the ,judiciary1 ,transportation and ,infrastructure1 ,financial ,services1 ,house ,administration1 ,oversight and ,government ,reform1 and the ,budget1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to provide tax relief for ,american workers and businesses1 to put workers back on the job while rebuilding and modernizing ,america1 and to provide pathways back to work for ,americans looking for jobs4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,american ,jobs ,act of #bjac4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,references4 ,sec4 #c4 ,severability4 ,sec4 #d4 ,buy ,american--,use of ,american iron1 steel1 and manufactured goods4 ,sec4 #e4 ,wage rate and employment protection requirements4 ,title ,i--,relief for workers and businesses ,subtitle ,a--,making work pay credit ,sec4 #aja4 ,making work pay credit4 ,subtitle ,b--,other relief for businesses ,sec4 #aaa4 ,extension of temporary #ajj percent bonus depreciation for certain business assets4 ,sec4 #aab4 ,surety bonds4 ,title ,,ii--,putting workers back on the job while rebuilding and modernizing ,america ,subtitle ,a--,teacher stabilization ,sec4 #bja4 ,purpose4 ,sec4 #bjb4 ,grants for the outlying areas and the ,secretary of the ,interior2 availability of funds4 ,sec4 #bjc4 ,state allocation4 ,sec4 #bjd4 ,state application4 ,sec4 #bje4 ,state reservation and responsibilities4 ,sec4 #bjf4 ,local educational agencies4 ,sec4 #bjg4 ,early learning4 ,sec4 #bjh4 ,maintenance of effort4 ,sec4 #bji4 ,reporting4 ,sec4 #baj4 ,definitions4 ,sec4 #baa4 ,authorization of appropriations4 ,subtitle ,b--,first responder stabilization ,sec4 #bab4 ,purpose4 ,sec4 #bac4 ,grant program4 ,sec4 #bad4 ,appropriations4 ,subtitle ,c--,school modernization ,part ,i--,elementary and secondary schools ,sec4 #bba4 ,purpose4 ,sec4 #bbb4 ,authorization of appropriations4 ,sec4 #bbc4 ,allocation of funds4 ,sec4 #bbd4 ,state use of funds4 ,sec4 #bbe4 ,state and local applications4 ,sec4 #bbf4 ,use of funds4 ,sec4 #bbg4 ,private schools4 ,sec4 #bbh4 ,additional provisions4 ,part ,,ii--,community ,college modernization ,sec4 #bbi4 ,federal assistance for community college modernization4 ,part ,,iii--,definitions ,sec4 #bcj4 ,definitions4 ,subtitle ,d--,immediate transportation infrastructure investments ,sec4 #bda4 ,immediate transportation infrastructure investments4 ,subtitle ,e--,building and upgrading infrastructure for long-,term development ,sec4 #bdb4 ,short title4 ,sec4 #bdc4 ,findings and purpose4 ,sec4 #bdd4 ,definitions4 ,part ,i--,american infrastructure financing authority ,sec4 #bde4 ,establishment and general authority of ,,aifa4 ,sec4 #bdf4 ,voting members of the ,board of ,directors4 ,sec4 #bdg4 ,chief executive officer of ,,aifa4 ,sec4 #bdh4 ,powers and duties of the ,board of ,directors4 ,sec4 #bdi4 ,senior management4 ,sec4 #bej4 ,special ,inspector ,general for ,,aifa4 ,sec4 #bea4 ,other personnel4 ,sec4 #beb4 ,compliance4 ,part ,,ii--,terms and limitations on direct loans and loan guarantees ,sec4 #bec4 ,eligibility criteria for assistance from ,,aifa and terms and limitations of loans4 ,sec4 #bed4 ,loan terms and repayment4 ,sec4 #bee4 ,compliance and enforcement4 ,sec4 #bef4 ,audits2 reports to the ,president and ,congress4 ,part ,,iii--,funding of ,,aifa ,sec4 #beg4 ,administrative fees4 ,sec4 #beh4 ,efficiency of ,,aifa4 ,sec4 #bei4 ,funding4 ,part ,,iv--,extension of exemption from alternative minimum tax treatment for certain tax-,exempt bonds ,sec4 #bfj4 ,extension of exemption from alternative minimum tax treatment for certain tax-exempt bonds4 ,subtitle ,f--,project rebuild ,sec4 #bfa4 ,project rebuild4 ,title ,,iii--,assistance for the unemployed and pathways back to work ,subtitle ,a--,supporting unemployed workers ,sec4 #cja4 ,short title4 ,part ,i--,extension of emergency unemployment compensation and certain extended benefits provisions1 and establishment of self-,employment assistance program ,sec4 #caa4 ,extension of emergency unemployment compensation program4 ,sec4 #cab4 ,temporary extension of extended benefit provisions4 ,sec4 #cac4 ,additional extended unemployment benefits under the ,railroad ,unemployment ,insurance ,act4 ,part ,,ii--,reemployment ,,now program ,sec4 #cba4 ,establishment of reemployment ,,now program4 ,sec4 #cbb4 ,distribution of funds4 ,sec4 #cbc4 ,state plan4 ,sec4 #cbd4 ,bridge to work program4 ,sec4 #cbe4 ,wage insurance4 ,sec4 #cbf4 ,enhanced reemployment strategies4 ,sec4 #cbg4 ,self-employment programs4 ,sec4 #cbh4 ,additional innovative programs4 ,sec4 #cbi4 ,guidance and additional requirements4 ,sec4 #ccj4 ,report of information and evaluations to ,congress and the public4 ,sec4 #cca4 ,state4 ,part ,,iii--,short-,time compensation program ,sec4 #cda4 ,temporary financing of short-time compensation payments in states with programs in law4 ,sec4 #cdb4 ,temporary financing of short-time compensation agreements4 ,sec4 #cdc4 ,grants for short-time compensation programs4 ,sec4 #cdd4 ,assistance and guidance in implementing programs4 ,sec4 #cde4 ,reports4 ,subtitle ,b--,long-,term unemployed hiring preferences ,sec4 #cea4 ,long-term unemployed workers work opportunity tax credits4 ,subtitle ,c--,pathways ,back to ,work ,sec4 #cfa4 ,short title4 ,sec4 #cfb4 ,authorization of appropriations4 ,sec4 #cfc4 ,availability of funds4 ,sec4 #cfd4 ,subsidized employment for unemployed1 low-income adults4 ,sec4 #cfe4 ,summer employment and year-round employment opportunities for low-income youth4 ,sec4 #cff4 ,work-based employment strategies of demonstrated effectiveness4 ,sec4 #cfg4 ,general requirements4 ,sec4 #cfh4 ,definitions4 ,subtitle ,d--,prohibition of discrimination in employment on the basis of an individual's status as unemployed ,sec4 #cga4 ,short title4 ,sec4 #cgb4 ,findings and purpose4 ,sec4 #cgc4 ,definitions4 ,sec4 #cgd4 ,prohibited acts4 ,sec4 #cge4 ,enforcement4 ,sec4 #cgf4 ,federal and ,state immunity4 ,sec4 #cgg4 ,relationship to other laws4 ,sec4 #cgh4 ,severability4 ,sec4 #cgi4 ,effective date4 ,title ,,iv--,offsets ,subtitle ,a--#bh percent limitation on certain deductions and exclusions ,sec4 #dja4 #bh percent limitation on certain deductions and exclusions4 ,subtitle ,b--,tax carried interest in investment partnerships as ordinary income ,sec4 #daa4 ,partnership interests transferred in connection with performance of services4 ,sec4 #dab4 ,special rules for partners providing investment management services to partnerships4 ,subtitle ,c--,close loophole for corporate jet depreciation ,sec4 #dba4 ,general aviation aircraft treated as #g-year property4 ,subtitle ,d--,repeal oil subsidies ,sec4 #dca4 ,repeal of deduction for intangible drilling and development costs in the case of oil and gas wells4 ,sec4 #dcb4 ,repeal of deduction for tertiary injectants4 ,sec4 #dcc4 ,repeal of percentage depletion for oil and gas wells4 ,sec4 #dcd4 ,section #aii deduction not allowed with respect to oil1 natural gas1 or primary products thereof4 ,sec4 #dce4 ,repeal oil and gas working interest exception to passive activity rules4 ,sec4 #dcf4 ,repeal enhanced oil recovery credit4 ,sec4 #dcg4 ,uniform seven-year amortization for geological and geophysical expenditures4 ,sec4 #dch4 ,repeal marginal well production credit4 ,subtitle ,e--,dual capacity taxpayers ,sec4 #dda4 ,modifications of foreign tax credit rules applicable to dual capacity taxpayers4 ,sec4 #ddb4 ,separate basket treatment taxes paid on foreign oil and gas income4 ,subtitle ,f--,repeal of sequestration ,sec4 #dea4 ,repeal of sequestration4 #b4 ,references ,except as expressly provided otherwise1 any reference to this ,act contained in any subtitle of this ,act shall be treated as referring only to the provisions of that subtitle4 #c4 ,severability ,if any provision of this ,act1 or the application thereof to any person or circumstance1 is held invalid1 the remainder of the ,act and the application of such provision to other persons or circumstances shall not be affected thereby4 #d4 ,buy ,american--,use of ,american iron1 steel1 and manufactured goods 7a7 ,none of the funds appropriated or otherwise made available by this ,act may be used for a project for the construction1 alteration1 maintenance1 or repair of a public building or public work unless all of the iron1 steel1 and manufactured goods used in the project are produced in the ,united ,states4 7b7 ,subsection 7a7 shall not apply in any case or category of cases in which the head of the ,federal department or agency involved finds that-- 7#a7 applying subsection 7a7 would be inconsistent with the public interest2 7#b7 iron1 steel1 and the relevant manufactured goods are not produced in the ,united ,states in sufficient and reasonably available quantities and of a satisfactory quality2 or 7#c7 inclusion of iron1 steel1 and manufactured goods produced in the ,united ,states will increase the cost of the overall project by more than #be percent4 7c7 ,if the head of a ,federal department or agency determines that it is necessary to waive the application of subsection 7a7 based on a finding under subsection 7b71 the head of the department or agency shall publish in the ,federal ,register a detailed written justification as to why the provision is being waived4 7d7 ,this section shall be applied in a manner consistent with ,united ,states obligations under international agreements4 #e4 ,wage rate and employment protection requirements 7a7 ,notwithstanding any other provision of law and in a manner consistent with other provisions in this ,act1 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 #ca of title #dj1 ,united ,states ,code4 7b7 ,with respect to the labor standards specified in this section1 the ,secretary of ,labor shall have the authority and functions set forth in ,reorganization ,plan ,numbered #ad of #aiej 7#fd ,stat4 #abfg2 #e ,u4,s4,c4 ,app47 and section #cade of title #dj1 ,united ,states ,code4 7c7 ,projects as defined under title #di1 ,united ,states ,code1 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 #eccc7;b7 of title #di1 ,united ,states ,code4 ,i ,relief for workers and businesses ,a ,making work pay credit #aja4 ,making work pay credit 7a7 ,in general ,subsection 7e7 of section #cf;,a of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7e7 ,termination ,this section shall not apply to-- 7#a7 beginning after ,december #ca1 #bjaj1 and before ,january #a1 #bjad1 and 7#b7 taxable years beginning after ,december #ca1 #bjad4 4 7b7 ,treatment of possessions ,rules similar to the rules of subsections 7b7 and 7c7 of section #ajja of the ,american ,recovery and ,reinvestment ,tax ,act of #bjji shall apply with respect to the amendment made by subsection 7a74 ,for purposes of the preceding sentence1 such section shall be applied by substituting taxable years beginning in #bjad for taxable years beginning in #bjji and #bjaj each place it occurs4 7c7 ,effective date ,this section1 and the amendments made by this section1 shall apply to taxable years beginning after ,december #ca1 #bjac4 ,b ,other relief for businesses #aaa4 ,extension of temporary #ajj percent bonus depreciation for certain business assets 7a7 ,in general ,paragraph 7#e7 of section #afh7k7 of the ,internal ,revenue ,code is amended-- 7#a7 by striking ,january #a1 #bjab each place it appears and inserting ,january #a1 #bjae1 and 7#b7 by striking ,january #a1 #bjac and inserting ,january #a1 #bjaf4 7b7 ,conforming amendment ,the heading for paragraph 7#e7 of section #afh7k7 of the ,internal ,revenue ,code is amended by striking ,pre-#bjab periods and inserting ,pre-#bjad periods4 #aab4 ,surety bonds 7a7 ,maximum bond amount ,section #daa7;a77#a7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fid;b7a77#a77 is amended by striking #b1jjj1jjj and inserting #e1jjj1jjj4 7b7 ,denial of liability ,section #daa7;e77#b7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fid;b7e77#b77 is amended by striking #b1jjj1jjj and inserting #e1jjj1jjj4 7c7 ,sunset ,the amendments made by subsections 7a7 and 7b7 of this section shall remain in effect until ,september #cj1 #bjad4 7d7 ,funding ,there is appropriated out of any money in the ,treasury not otherwise appropriated1 #c1jjj1jjj1 to remain available until expended1 for additional capital for the ,surety ,bond ,guarantees ,revolving ,fund1 as authorized by the ,small ,business ,investment ,act of #aieh1 as amended4 ,,ii ,putting workers back on the job while rebuilding and modernizing ,america ,a ,teacher stabilization #bja4 ,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 childhood1 elementary1 and secondary education in the #bjac-bjad and #bjad-bjae school years4 #bjb4 ,grants for the outlying areas and the ,secretary of the ,interior2 availability of funds 7a7 ,reservation of funds ,from the amount appropriated to carry out this subtitle under section #bab1 the ,secretary-- 7#a7 shall reserve up to one-half of one percent to provide assistance to the outlying areas on the basis of their respective needs1 as determined by the ,secretary1 for activities consistent with this subtitle under such terms and conditions as the ,secretary may determine2 7#b7 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 subtitle1 in schools operated or funded by the ,bureau of ,indian ,education2 and 7#c7 may reserve up to #b1jjj1jjj for administration and oversight of this subtitle1 including program evaluation4 7b7 ,availability of funds ,funds made available under section #bab shall remain available to the ,secretary until ,september #cj1 #bjad4 #bjc4 ,state allocation 7a7 ,allocation ,after reserving funds under section #bjc7;a71 the ,secretary shall allocate the remaining funds appropriated under section #bab to ,states1 of which-- 7#a7 #fj percent shall be allocated to ,states on the basis of their relative population of individuals aged #e through #ag2 and 7#b7 #dj percent shall be allocated to ,states on the basis of their relative total population4 7b7 ,awards ,the ,secretary shall award a ,state's allocation under subsection 7a7 to the ,governor of the ,state only if the ,secretary has approved the ,state's application under section #bje4 7c7 ,alternate distribution of funds 7#a7 ,in general ,if1 within #cj days after the date of enactment of this ,act1 a ,governor has not submitted an approvable application to the ,secretary1 the ,secretary shall1 consistent with paragraph 7#b71 provide for funds allocated to that ,state to be distributed to another entity or other entities in the ,state for the support of early childhood1 elementary1 and secondary education1 under such terms and conditions as the ,secretary may establish4 7#b7 ,maintenance of effort 7,a7 ,governor assurance ,the ,secretary shall not allocate funds under paragraph 7#a7 unless the ,governor of the ,state provides an assurance to the ,secretary that the ,state will for fiscal years #bjad and #bjae meet the requirements of section #bji4 7,b7 ,allocations to other entities ,notwithstanding subparagraph 7,a71 the ,secretary may allocate up to #ej percent of the funds that are available to the ,state under paragraph 7#a7 to another entity or entities in the ,state1 provided that the ,state educational agency submits data to the ,secretary demonstrating that the ,state will for fiscal year #bjad meet the requirements of section #bji7;a7 or the ,secretary otherwise determines that the ,state will meet those requirements1 or such comparable requirements as the ,secretary may establish1 for that year4 7#c7 ,requirements ,an entity that receives funds under paragraph 7#a7 shall use those funds in accordance with the requirements of this subtitle4 7d7 ,reallocation ,if a ,state does not receive funding under this subtitle or only receives a portion of its allocation under subsection 7c71 the ,secretary shall reallocate the ,state's entire allocation or the remaining portion of its allocation1 as the case may be1 to the remaining ,states in accordance with subsection 7a74 #bjd4 ,state application ,the ,governor of a ,state desiring to receive a grant under this subtitle shall submit an application to the ,secretary within #cj days of the date of enactment of this ,act1 in such manner1 and containing such information as the ,secretary may reasonably require to determine the ,state's compliance with applicable provisions of law4 #bje4 ,state reservation and responsibilities 7a7 ,reservation ,each ,state receiving a grant under section #bjd7;b7 may reserve-- 7#a7 not more than #aj percent of the grant funds for awards to ,state-funded early learning programs2 and 7#b7 not more than #b percent of the grant funds for the administrative costs of carrying out its responsibilities under this subtitle4 7b7 ,state responsibilities ,each ,state receiving a grant under this subtitle shall1 after reserving any funds under subsection 7a7-- 7#a7 use the remaining grant funds only for awards to local educational agencies for the support of early childhood1 elementary1 and secondary education2 7#b7 distribute those funds1 through subgrants1 to its local educational agencies by distributing-- 7,a7 #fj percent on the basis of the local educational agencies' relative shares of enrollment2 and 7,b7 #dj 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 #aife for fiscal year #bjac2 and 7#c7 make those funds available to local educational agencies no later than #ajj days after receiving a grant from the ,secretary4 7c7 ,prohibitions ,a ,state shall not use funds received under this subtitle to directly or indirectly-- 7#a7 establish1 restore1 or supplement a rainy-day fund2 7#b7 supplant ,state funds in a manner that has the effect of establishing1 restoring1 or supplementing a rainy-day fund2 7#c7 reduce or retire debt obligations incurred by the ,state2 or 7#d7 supplant ,state funds in a manner that has the effect of reducing or retiring debt obligations incurred by the ,state4 #bjf4 ,local educational agencies ,each local educational agency that receives a subgrant under this subtitle-- 7#a7 shall use the subgrant funds only for compensation and benefits and other expenses1 such as support services1 necessary to retain existing employees1 recall or rehire former employees1 or hire new employees to provide early childhood1 elementary1 or secondary educational and related services2 7#b7 shall obligate those funds not later than ,september #cj1 #bjae2 and 7#c7 may not use those funds for general administrative expenses or for other support services or expenditures1 as those terms are defined by the ,national ,center for ,education ,statistics in the ,common ,core of ,data1 as of the date of enactment of this ,act4 #bjg4 ,early learning ,each ,state-funded early learning program that receives funds under this subtitle shall-- 7#a7 use those funds only for compensation1 benefits1 and other expenses1 such as support services1 necessary to retain early childhood educators1 recall or rehire former early childhood educators1 or hire new early childhood educators to provide early learning services2 and 7#b7 obligate those funds not later than ,september #cj1 #bjae4 #bjh4 ,maintenance of effort 7a7 ,requirement ,the ,secretary shall not allocate funds to a ,state under this subtitle unless the ,state provides an assurance to the ,secretary that-- 7#a7 for ,state fiscal year #bjad-- 7,a7 the ,state will maintain ,state support for early childhood1 elementary1 and secondary education 7in the aggregate or on the basis of expenditure per pupil7 and for public institutions of higher education 7not including support for capital projects or for research and development or tuition and fees paid by students7 at not less than the level of such support for each of the two categories for ,state fiscal year #bjac2 or 7,b7 the ,state will maintain ,state support for early childhood1 elementary1 and secondary education and for public institutions of higher education 7not including support for capital projects or for research and development or tuition and fees paid by students7 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 #bjac2 and 7#b7 for ,state fiscal year #bjae-- 7,a7 the ,state will maintain ,state support for early childhood1 elementary1 and secondary education 7in the aggregate or on the basis of expenditure per pupil7 and for public institutions of higher education 7not including support for capital projects or for research and development or tuition and fees paid by students7 at not less than the level of such support for each of the two categories for ,state fiscal year #bjad2 or 7,b7 the ,state will maintain ,state support for early childhood1 elementary1 and secondary education and for public institutions of higher education 7not including support for capital projects or for research and development or tuition and fees paid by students7 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 #bjad4 7b7 ,waiver ,the ,secretary may waive the requirements of this section if the ,secretary determines that a waiver would be equitable due to-- 7#a7 exceptional or uncontrollable circumstances1 such as a natural disaster2 or 7#b7 a precipitous decline in the financial resources of the ,state4 #bji4 ,reporting ,each ,state that receives a grant under this subtitle shall submit1 on an annual basis1 a report to the ,secretary that contains-- 7#a7 a description of how funds received under this part were expended or obligated2 and 7#b7 an estimate of the number of jobs supported by the ,state using funds received under this subtitle4 #baj4 ,definitions ,in this subtitle3 7#a7 ,,esea definitions ,except as otherwise provided1 the terms local educational agency1 outlying area1 ,secretary1 ,state1 and ,state educational agency have the meanings given those terms in section #iaja of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #ghja74 7#b7 ,state ,the term ,state does not include an outlying area4 7#c7 ,early child educator ,the term early childhood educator means an individual who-- 7,a7 works directly with children in a ,state-funded early learning program in a low-income community2 7,b7 is involved directly in the care1 development1 and education of infants1 toddlers1 or young children age five and under2 and 7,c7 has completed a baccalaureate or advanced degree in early childhood development or early childhood education1 or in a field related to early childhood education4 7#d7 ,state-funded early learning program ,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 a ,state4 #baa4 ,authorization of appropriations ,there are authorized to be appropriated1 and there are appropriated1 #cj1jjj1jjj1jjj to carry out this subtitle for fiscal year #bjad4 ,b ,first responder stabilization #bab4 ,purpose ,the purpose of this subtitle is to provide funds to ,states and localities to prevent layoffs of1 and support the creation of additional jobs for1 law enforcement officers and other first responders4 #bac4 ,grant program ,the ,attorney ,general shall carry out a competitive grant program pursuant to section #agja of title ,i of the ,omnibus ,crime ,control and ,safe ,streets ,act of #aifh 7#db ,u4,s4,c4 #cgif;dd7 for hiring1 rehiring1 or retention of career law enforcement officers under part ,q of such title4 ,grants awarded under this section shall not be subject to subsections 7g7 or 7i7 of section #agja or to section #agjd of such ,act 7#db ,u4,s4,c4 #cgif;dd-#c7;c774 #bad4 ,appropriations ,there are hereby appropriated to the ,community ,oriented ,policing ,stabilization ,fund out of any money in the ,treasury not otherwise obligated1 #e1jjj1jjj1jjj1 to remain available until ,september #cj1 #bjab1 of which #d1jjj1jjj1jjj shall be for the ,attorney ,general to carry out the competitive grant program under section #bad2 and of which #a1jjj1jjj1jjj 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 hiring1 rehiring1 or retention pursuant to the ,federal ,fire ,prevention and ,control ,act of #aigd 7#ae ,u4,s4,c4 #bbja et seq471 to carry out section #cd of such ,act 7#ae ,u4,s4,c4 #bbbi;a74 ,in making such grants1 the ,secretary may grant waivers from the requirements in subsections 7a77#a77;,a71 7a77#a77;,b71 7a77#a77;,e71 7c77#a71 7c77#b71 and 7c77#d77;,a7 of such section #cd4 ,of the amounts appropriated herein1 not to exceed #h1jjj1jjj shall be for administrative costs of the ,attorney ,general1 and not to exceed #b1jjj1jjj shall be for administrative costs of the ,secretary of ,homeland ,security4 ,c ,school modernization ,i ,elementary and secondary schools #bba4 ,purpose ,the purpose of this part is to provide assistance for the modernization1 renovation1 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 schools4 #bbb4 ,authorization of appropriations ,there are authorized to be appropriated1 and there are appropriated1 #be1jjj1jjj1jjj to carry out this part1 which shall be available for obligation by the ,secretary until ,september #cj1 #bjad4 #bbc4 ,allocation of funds 7a7 ,reservations ,of the amount made available to carry out this part1 the ,secretary shall reserve-- 7#a7 one-half of one percent for the ,secretary of the ,interior to carry out modernization1 renovation1 and repair activities described in section #bbf in schools operated or funded by the ,bureau of ,indian ,education2 7#b7 one-half of one percent to make grants to the outlying areas for modernization1 renovation1 and repair activities described in section #bbf2 and 7#c7 such funds as the ,secretary determines are needed to conduct a survey1 by the ,national ,center for ,education ,statistics1 of the school construction1 modernization1 renovation1 and repair needs of the public schools of the ,united ,states4 7b7 ,state allocation ,after reserving funds under subsection 7a71 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 of #aife 7in this part referred to as the ,,esea7 7#bj ,u4,s4,c4 #fcaa et seq47 for fiscal year #bjac1 except that-- 7#a7 the ,secretary shall allocate #dj percent of such remaining amount to the #ajj local educational agencies with the largest numbers of children aged #e-ag living in poverty1 as determined using the most recent data available from the ,department of ,commerce that are satisfactory to the ,secretary1 in proportion to those agencies' respective allocations under part ,a of title ,i of the ,,esea for fiscal year #bjac2 and 7#b7 the allocation to any ,state shall be reduced by the aggregate amount of the allocations under paragraph 7#a7 to local educational agencies in that ,state4 7c7 ,remaining allocation 7#a7 ,states ,if a ,state does not apply for its allocation under subsection 7b7 7or applies for less than the full allocation for which it is eligible7 or does not use that allocation in a timely manner1 the ,secretary may-- 7,a7 reallocate all or a portion of that allocation to the other ,states in accordance with subsection 7b72 or 7,b7 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 #bjac or such other method as the ,secretary may determine4 7#b7 ,local educational agencies ,if a local educational agency does not apply for its allocation under subsection 7b77#a71 applies for less than the full allocation for which it is eligible1 or does not use that allocation in a timely manner1 the ,secretary may reallocate all or a portion of its allocation to the ,state in which that agency is located4 #bbd4 ,state use of funds 7a7 ,reservation ,each ,state that receives a grant under this part may reserve not more than one percent of the ,state's allocation under section #bbc7;b7 for the purpose of administering the grant1 except that no ,state may reserve more than #gej1jjj for this purpose4 7b7 ,funds to local educational agencies 7#a7 ,formula subgrants ,from the grant funds that are not reserved under subsection 7a71 a ,state shall allocate at least #ej percent to local educational agencies1 including charter schools that are local educational agencies1 that did not receive funds under section #bbc7;b77#a7 from the ,secretary1 in accordance with their respective allocations under part ,a of title ,i of the ,,esea for fiscal year #bjac1 except that no such local educational agency shall receive less than #aj1jjj4 7#b7 ,additional subgrants ,the ,state shall use any funds remaining1 after reserving funds under subsection 7a7 and allocating funds under paragraph 7#a71 for subgrants to local educational agencies that did not receive funds under section #bbc7;b77#a71 including charter schools that are local educational agencies1 to support modernization1 renovation1 and repair projects that the ,state determines1 using objective criteria1 are most needed in the ,state1 with priority given to projects in rural local educational agencies4 7c7 ,remaining funds ,if a local educational agency does not apply for an allocation under subsection 7b77#a71 applies for less than its full allocation1 or fails to use that allocation in a timely manner1 the ,state may reallocate any unused portion to other local educational agencies in accordance with subsection 7b74 #bbe4 ,state and local applications 7a7 ,state application ,a ,state that desires to receive a grant under this part shall submit an application to the ,secretary at such time1 in such manner1 and containing such information and assurances as the ,secretary may require1 which shall include-- 7#a7 an identification of the ,state agency or entity that will administer the program under this part2 and 7#b7 the ,state's process for determining how the grant funds will be distributed and administered1 including-- 7,a7 how the ,state will determine the criteria and priorities in making subgrants under section #bbd7;b77#b72 7,b7 any additional criteria the ,state will use in determining which projects it will fund under that section2 7,c7 a description of how the ,state will consider-- 7i7 the needs of local educational agencies for assistance under this part2 7ii7 the impact of potential projects on job creation in the ,state2 7iii7 the fiscal capacity of local educational agencies applying for assistance2 7iv7 the percentage of children in those local educational agencies who are from low-income families2 and 7v7 the potential for leveraging assistance provided by the program under this part through matching or other financing mechanisms2 7,d7 a description of how the ,state will ensure that the local educational agencies receiving subgrants meet the requirements of this part2 7,e7 a description of how the ,state will ensure that the ,state and its local educational agencies meet the deadlines established in section #bbh2 7,f7 a description of how the ,state will give priority to the use of green practices that are certified1 verified1 or consistent with any applicable provisions of-- 7i7 the ,,leed ,green ,building ,rating ,system2 7ii7 ,energy ,star2 7iii7 the ,,chps ,criteria2 7iv7 ,green ,globes2 or 7v7 an equivalent program adopted by the ,state or another jurisdiction with authority over the local educational agency2 7,g7 a description of the steps that the ,state will take to ensure that local educational agencies receiving subgrants under this part will adequately maintain any facilities that are modernized1 renovated1 or repaired with such subgrant funds2 and 7,h7 such additional information and assurances as the ,secretary may require4 7b7 ,local application ,a local educational agency that is eligible under section #bbc7;b77#a7 that desires to receive a grant under this part shall submit an application to the ,secretary at such time1 in such manner1 and containing such information and assurances as the ,secretary may require1 which shall include-- 7#a7 a description of how the local educational agency will meet the deadlines and requirements of this part2 7#b7 a description of the steps that the local educational agency will take to adequately maintain any facilities that are modernized1 renovated1 or repaired with funds under this part2 and 7#c7 such additional information and assurances as the ,secretary may require4 #bbf4 ,use of funds 7a7 ,in general ,funds awarded to local educational agencies under this part shall be used only for either or both of the following modernization1 renovation1 or repair activities in facilities that are used for elementary or secondary education or for early learning programs3 7#a7 ,direct payments for school modernization1 renovation1 or repair4 7#b7 ,to pay interest on bonds or payments for other financing instruments that are newly issued for the purpose of financing school modernization1 renovation1 or repair4 7b7 ,supplement1 not supplant ,funds made available under this part shall be used to supplement1 and not supplant1 other ,federal1 ,state1 and local funds that would otherwise be expended to modernize1 renovate1 or repair eligible school facilities4 7c7 ,prohibition ,funds awarded to local educational agencies under this part may not be used for-- 7#a7 new construction2 7#b7 payment of routine maintenance costs2 or 7#c7 modernization1 renovation1 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 public4 #bbg4 ,private schools 7a7 ,in general ,section #ieja of the ,,esea 7#bj ,u4,s4,c4 #ghha7 shall apply to this part in the same manner as it applies to activities under that ,act1 except that-- 7#a7 such section #ieja shall not apply with respect to the title to any real property modernized1 renovated1 or repaired with assistance provided under this part2 7#b7 educational services or other benefits funded under this part for private schools shall be provided only to private1 nonprofit elementary or secondary schools with a rate of child poverty of at least #dj percent and may include only-- 7,a7 modifications of school facilities necessary to meet the standards applicable to public schools under the ,americans with ,disabilities ,act of #aiij 7#db ,u4,s4,c4 #abaja et seq472 7,b7 modifications of school facilities necessary to meet the standards applicable to public schools under section #ejd of the ,rehabilitation ,act of #aigc 7#bi ,u4,s4,c4 #gid72 and 7,c7 asbestos or polychlorinated biphenyls abatement or removal from school facilities2 and 7#c7 expenditures for services provided using funds made available under section #bbf shall be considered equal for purposes of section #ieja7;a77#d7 of the ,,esea if the per-pupil expenditures for services described in paragraph 7#b7 for students enrolled in private1 nonprofit elementary and secondary schools that have child-poverty rates of at least #dj percent are consistent with the per-pupil expenditures under this part for children enrolled in the public schools of the local educational agency receiving funds under this part4 7b7 ,remaining funds ,if the expenditure for services described in subsection 7a77#b7 is less than the amount calculated under subsection 7a77#c7 because of insufficient need for those services1 the remainder shall be available to the local educational agency for modernization1 renovation1 or repair of its school facilities4 7c7 ,application ,if any provision of this section1 or the application thereof1 to any person or circumstance is judicially determined to be invalid1 the remainder of the section and the application to other persons or circumstances shall not be affected thereby4 #bbh4 ,additional provisions 7a7 #bd-,month period of availability ,funds appropriated under section #bbb shall be available for obligation by local educational agencies receiving grants from the ,secretary under section #bbc7;b77#a71 by ,states reserving funds under section #bbd7;a71 and by local educational agencies receiving subgrants under section #bbd7;b77#a7 only during the period that ends #bd months after the date of enactment of this ,act4 7b7 #cf-,month period of availability ,funds appropriated under section #bbb shall be available for obligation by local educational agencies receiving subgrants under section #bbd7;b77#b7 only during the period that ends #cf months after the date of enactment of this ,act4 7c7 ,applicability of ,,gepa ,section #dci of the ,general ,education ,provisions ,act 7#bj ,u4,s4,c4 #abcb;b7 shall apply to funds available under this part4 7d7 ,limitation ,for purposes of section #bbc7;b77#a71 ,hawaii1 the ,district of ,columbia1 and the ,commonwealth of ,puerto ,rico are not local educational agencies4 ,,ii ,community ,college modernization #bbi4 ,federal assistance for community college modernization 7a7 ,in general 7#a7 ,grant program ,from the amounts made available under subsection 7h71 the ,secretary shall award grants to ,states to modernize1 renovate1 or repair existing facilities at community colleges4 7#b7 ,allocation 7,a7 ,reservations ,of the amount made available to carry out this section1 the ,secretary shall reserve-- 7i7 up to #j4be percent for grants to institutions that are eligible under section #caf of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajei;c7 to provide for modernization1 renovation1 and repair activities described in this section2 and 7ii7 up to #j4be percent for grants to the outlying areas to provide for modernization1 renovation1 and repair activities described in this section4 7,b7 ,allocation ,after reserving funds under subparagraph 7,a71 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 #bcj7;b77#a77;,a7 plus the number of students who are estimated to be enrolled in and pursuing a degree or certificate that is not a bachelor's1 master's1 professional1 or other advanced degree in institutions described in section #bcj7;b77#a77;,b71 based on the proportion of degrees or certificates awarded by such institutions that are not bachelor's1 master's1 professional1 or other advanced degrees1 as reported to the ,integrated ,postsecondary ,data ,system bears to the estimated total number of such students in all ,states1 except that no ,state shall receive less than #b1ejj1jjj4 7,c7 ,reallocation ,amounts not allocated under this section to a ,state because the ,state either did not submit an application under subsection 7b71 the ,state submitted an application that the ,secretary determined did not meet the requirements of such subsection1 or the ,state cannot demonstrate to the ,secretary a sufficient demand for projects to warrant the full allocation of the funds1 shall be proportionately reallocated under this paragraph to the other ,states that have a demonstrated need for1 and are receiving1 allocations under this section4 7,d7 ,state administration ,a ,state that receives a grant under this section may use not more than one percent of that grant to administer it1 except that no ,state may use more than #gej1jjj of its grant for this purpose4 7#c7 ,supplement1 not supplant ,funds made available under this section shall be used to supplement1 and not supplant1 other ,federal1 ,state1 and local funds that would otherwise be expended to modernize1 renovate1 or repair existing community college facilities4 7b7 ,application ,a ,state that desires to receive a grant under this section shall submit an application to the ,secretary at such time1 in such manner1 and containing such information and assurances as the ,secretary may require4 ,such application shall include a description of-- 7#a7 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 ,state2 7#b7 the projected start of each project and the estimated number of persons to be employed in the project2 and 7#c7 the cost of each project and the total amount of funds requested for each project and for all projects4 7c7 ,prohibited uses of funds 7#a7 ,in general ,no funds awarded under this section may be used for-- 7,a7 payment of routine maintenance costs2 7,b7 construction1 modernization1 renovation1 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 public2 or 7,c7 construction1 modernization1 renovation1 or repair of facilities-- 7i7 used for sectarian instruction1 religious worship1 or a school or department of divinity2 or 7ii7 in which a substantial portion of the functions of the facilities are subsumed in a religious mission4 7#b7 ,four-year institutions ,no funds awarded to a four-year public institution of higher education under this section may be used for any facility1 service1 or program of the institution that is not available to students who are pursuing a degree or certificate that is not a bachelor's1 master's1 professional1 or other advanced degree4 7d7 ,green projects ,in providing assistance to community college projects under this section1 the ,state shall consider the extent to which a community college's project involves activities that are certified1 verified1 or consistent with the applicable provisions of-- 7#a7 the ,,leed ,green ,building ,rating ,system2 7#b7 ,energy ,star2 7#c7 the ,,chps ,criteria1 as applicable2 7#d7 ,green ,globes2 or 7#e7 an equivalent program adopted by the ,state or the ,state higher education agency that includes a verifiable method to demonstrate compliance with such program4 7e7 ,application of ,,gepa ,section #dci of the ,general ,education ,provisions ,act 7#bj ,u4,s4,c4 #abcb;b7 shall apply to funds available under this section4 7f7 ,reports by the states ,each ,state that receives a grant under this section shall1 not later than ,september #cj1 #bjad1 and annually thereafter for each fiscal year in which the ,state expends funds received under this section1 submit to the ,secretary a report that includes-- 7#a7 a description of the projects for which the grant was1 or will be1 used2 7#b7 a description of the amount and nature of the assistance provided to each community college under this section2 and 7#c7 the number of jobs created by the projects funded under this section4 7g7 ,report by the secretary ,the ,secretary shall submit to the authorizing committees 7as defined in section #ajc of the ,higher ,education ,act of #aife2 #bj ,u4,s4,c4 #ajjc7 an annual report on the grants made under this section1 including the information described in subsection 7f74 7h7 ,availability of funds 7#a7 ,there are authorized to be appropriated1 and there are appropriated1 to carry out this section 7in addition to any other amounts appropriated to carry out this section and out of any money in the ,treasury not otherwise appropriated71 #e1jjj1jjj1jjj for fiscal year #bjad4 7#b7 ,funds appropriated under this subsection shall be available for obligation by community colleges only during the period that ends #cf months after the date of enactment of this ,act4 ,,iii ,definitions #bcj4 ,definitions 7a7 ,,esea terms ,except as otherwise provided1 in this subtitle1 the terms local educational agency1 ,secretary1 and ,state educational agency have the meanings given those terms in section #iaja of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #ghja74 7b7 ,additional definitions ,the following definitions apply to this title3 7#a7 ,community college ,the term community college means-- 7,a7 a junior or community college1 as that term is defined in section #cab7;f7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajeh7;f772 or 7,b7 an institution of higher education 7as defined in section #aja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja77 that awards a significant number of degrees and certificates1 as determined by the ,secretary1 that are not-- 7i7 bachelor's degrees 7or an equivalent72 or 7ii7 master's1 professional1 or other advanced degrees4 7#b7 ,,chps criteria ,the term ,,chps ,criteria means the green building rating program developed by the ,collaborative for ,high ,performance ,schools4 7#c7 ,energy star ,the term ,energy ,star means the ,energy ,star program of the ,united ,states ,department of ,energy and the ,united ,states ,environmental ,protection ,agency4 7#d7 ,green globes ,the term ,green ,globes means the ,green ,building ,initiative environmental design and rating system referred to as ,green ,globes4 7#e7 ,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 ,system4 7#f7 ,modernization1 renovation1 and repair ,the term modernization1 renovation1 and repair means-- 7,a7 comprehensive assessments of facilities1 including indoor air-quality assessments1 to identify-- 7i7 facility conditions or deficiencies that could adversely affect student and staff health1 safety1 performance1 or productivity or energy1 water1 or materials efficiency2 and 7ii7 needed facility improvements2 7,b7 repairing1 replacing1 or installing roofs 7which may be extensive1 intensive1 or semi-intensive green roofs72 electrical wiring2 water supply and plumbing systems1 sewage systems1 storm water runoff systems1 lighting systems 7or components of such systems72 or building envelope1 windows1 ceilings1 flooring1 or doors1 including security doors2 7,c7 repairing1 replacing1 or installing heating1 ventilation1 or air conditioning systems1 or components of those systems 7including insulation7 to improve energy efficiency2 7,d7 compliance with fire1 health1 seismic1 and safety codes1 including professional installation of fire and life safety alarms1 and modernizations1 renovations1 and repairs that ensure that facilities are prepared for such emergencies as acts of terrorism1 campus violence1 and natural disasters1 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 emergencies2 7,e7 making modifications necessary to make educational facilities accessible in compliance with the ,americans with ,disabilities ,act of #aiij 7#db ,u4,s4,c4 #abaja et seq47 and section #ejd of the ,rehabilitation ,act of #aigc 7#bi ,u4,s4,c4 #gid71 except that such modifications shall not be the primary use of a grant or subgrant2 7,f7 abatement1 removal1 or interim controls of asbestos1 polychlorinated biphenyls1 mold1 mildew1 or lead-based hazards1 including lead-based paint hazards2 7,g7 retrofitting necessary to increase energy efficiency2 7,h7 measures1 such as selection and substitution of products and materials1 and implementation of improved maintenance and operational procedures1 such as green cleaning programs1 to reduce or eliminate potential student or staff exposure to-- 7i7 volatile organic compounds2 7ii7 particles such as dust and pollens2 or 7iii7 combustion gases2 7,i7 modernization1 renovation1 or repair necessary to reduce the consumption of coal1 electricity1 land1 natural gas1 oil1 or water2 7,j7 installation or upgrading of educational technology infrastructure2 7,k7 installation or upgrading of renewable energy generation and heating systems1 including solar1 photovoltaic1 wind1 biomass 7including wood pellet and woody biomass71 waste-to-energy1 solar-thermal1 and geothermal systems1 and energy audits2 7,l7 modernization1 renovation1 or repair activities related to energy efficiency and renewable energy1 and improvements to building infrastructures to accommodate bicycle and pedestrian access2 7,m7 ground improvements1 storm water management1 landscaping1 and environmental clean-up when necessary2 7,n7 other modernization1 renovation1 or repair to-- 7i7 improve teachers' ability to teach and students' ability to learn2 7ii7 ensure the health and safety of students and staff2 or 7iii7 improve classroom1 laboratory1 and vocational facilities in order to enhance the quality of science1 technology1 engineering1 and mathematics instruction2 and 7,o7 required environmental remediation related to facilities modernization1 renovation1 or repair activities described in subparagraphs 7,a7 through 7,n74 7#g7 ,outlying area ,the term outlying area means the ,u4,s4 ,virgin ,islands1 ,guam1 ,american ,samoa1 the ,commonwealth of the ,northern ,mariana ,islands1 and the ,republic of ,palau4 7#h7 ,state ,the term ,state means each of the #ej ,states of the ,united ,states1 the ,commonwealth of ,puerto ,rico1 and the ,district of ,columbia4 ,d ,immediate transportation infrastructure investments #bda4 ,immediate transportation infrastructure investments 7a7 ,grants-,in-,aid for airports 7#a7 ,in general ,there is made available to the ,secretary of ,transportation #b1jjj1jjj1jjj to carry out airport improvement under subchapter ,i of chapter #dga and subchapter ,i of chapter #dge of title #di1 ,united ,states ,code4 7#b7 ,federal share2 limitation on obligations ,the ,federal share payable of the costs for which a grant is made under this subsection1 shall be #ajj percent4 ,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 #di1 ,united ,states ,code4 7#c7 ,distribution of funds ,funds provided to the ,secretary under this subsection shall not be subject to apportionment formulas1 special apportionment categories1 or minimum percentages under chapter #dga of such title4 7#d7 ,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 ,act4 ,the ,secretary shall obligate amounts totaling not less than #ej percent of the funds made available within one year of enactment and obligate remaining amounts not later than two years after enactment4 7#e7 ,administrative expenses ,of the funds made available under this subsection1 #j4c percent shall be available to the ,secretary for administrative expenses1 shall remain available for obligation until ,september #cj1 #bjae1 and may be used in conjunction with funds otherwise provided for the administration of the ,grants-,in-,aid for ,airports program4 7b7 ,next generation air traffic control advancements 7#a7 ,in general ,there is made available to the ,secretary of ,transportation #a1jjj1jjj1jjj for necessary ,federal ,aviation ,administration capital1 research1 and operating costs to carry out ,next ,generation air traffic control system advancements4 7#b7 ,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 ,act4 7c7 ,highway infrastructure investment 7#a7 ,in general ,there is made available to the ,secretary of ,transportation #bg1jjj1jjj1jjj for restoration1 repair1 construction and other activities eligible under section #acc7;b7 of title #bc1 ,united ,states ,code1 and for passenger and freight rail transportation and port infrastructure projects eligible for assistance under section #fja7;a77#h7 of title #bc4 7#b7 ,federal share2 limitation on obligations ,the ,federal share payable on account of any project or activity carried out with funds made available under this subsection shall be1 at the option of the recipient1 up to #ajj percent of the total cost thereof4 ,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 #bc1 ,united ,states ,code4 7#c7 ,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 ,act4 ,the ,secretary shall obligate amounts totaling not less than #ej percent of the funds made available within one year of enactment and obligate remaining amounts not later than two years after enactment4 7#d7 ,distribution of funds ,of the funds provided in this subsection1 after making the set-asides required by paragraphs 7#i71 7#aj71 7#aa71 7#ab71 and 7#ae71 #ej percent of the funds shall be apportioned to ,states using the formula set forth in section #ajd7;b77#c7 of title #bc1 ,united ,states ,code1 and the remaining funds shall be apportioned to ,states in the same ratio as the obligation limitation for fiscal year #bjaj was distributed among the ,states in accordance with the formula specified in section #abj7;a77#f7 of division ,a of ,public ,law #aaa-aag4 7#e7 ,apportionment ,apportionments under paragraph 7#d7 shall be made not later than #cj days after the date of the enactment of this ,act4 7#f7 ,redistribution 7,a7 ,the ,secretary shall1 #ahj days following the date of apportionment1 withdraw from each ,state an amount equal to #ej percent of the funds apportioned under paragraph 7#d7 to that ,state 7excluding funds suballocated within the ,state7 less the amount of funding obligated 7excluding funds suballocated within the ,state71 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 #abj7;c7 of division ,a of ,public ,law #aaa-aag4 7,b7 ,one year following the date of apportionment1 the ,secretary shall withdraw from each recipient of funds apportioned under paragraph 7#d7 any unobligated funds1 and the ,secretary shall redistribute such amounts to ,states that have had no funds withdrawn under this paragraph 7excluding funds suballocated within the ,state7 in the manner described in section #abj7;c7 of division ,a of ,public ,law #aaa-aag4 7,c7 ,at the request of a ,state1 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 circumstances4 ,before granting an extension1 the ,secretary notify in writing the ,committee on ,transportation and ,infrastructure and the ,committee on ,environment and ,public ,works1 providing a thorough justification for the extension4 7#g7 ,transportation enhancements ,three percent of the funds apportioned to a ,state under paragraph 7#d7 shall be set aside for the purposes described in section #acc7;d77#b7 of title #bc1 ,united ,states ,code 7without regard to the comparison to fiscal year #bjje74 7#h7 ,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 #acc7;d77#c77;,a71 #acc7;d77#c77;,b71 and #acc7;d77#c77;,d7 of title #bc1 ,united ,states ,code4 ,such suballocation shall be conducted in every ,state4 ,funds suballocated within a ,state to urbanized areas and other areas shall not be subject to the redistribution of amounts required #ahj days following the date of apportionment of funds provided by paragraph 7#f77;,a74 7#i7 ,puerto ,rico and territorial highway programs ,of the funds provided under this subsection1 #aje1jjj1jjj shall be set aside for the ,puerto ,rico highway program authorized under section #afe of title #bc1 ,united ,states ,code1 and #de1jjj1jjj shall be for the territorial highway program authorized under section #bae of title #bc1 ,united ,states ,code4 7#aj7 ,federal lands and ,indian reservations ,of the funds provided under this subsection1 #eej1jjj1jjj shall be set aside for investments in transportation at ,indian reservations and ,federal lands in accordance with the following34 7,a7 ,of the funds set aside by this paragraph1 #caj1jjj1jjj shall be for the ,indian ,reservation ,roads program1 #agj1jjj1jjj shall be for the ,park ,roads and ,parkways program1 #fj1jjj1jjj shall be for the ,forest ,highway ,program1 and #aj1jjj1jjj shall be for the ,refuge ,roads program4 7,b7 ,for investments at ,indian reservations and ,federal lands1 priority shall be given to capital investments1 and to projects and activities that can be completed within #b years of enactment of this ,act4 7,c7 ,one year following the enactment of this ,act1 to ensure the prompt use of the funding provided for investments at ,indian reservations and ,federal lands1 the ,secretary shall have the authority to redistribute unobligated funds within the respective program for which the funds were appropriated4 7,d7 ,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 expenses4 7,e7 ,section #acd7;f77#c77;,c77ii77,,ii7 of title #bc1 ,united ,states ,code1 shall not apply to funds set aside by this paragraph4 7#aa7 ,job training ,of the funds provided under this subsection1 #ej1jjj1jjj shall be set aside for the development and administration of transportation training programs under section #adj7;b7 title #bc1 ,united ,states ,code4 7,a7 ,funds set aside under this subsection shall be competitively awarded and used for the purpose of providing training1 apprenticeship 7including ,registered ,apprenticeship71 skill development1 and skill improvement programs1 as well as summer transportation institutes and may be transferred to1 or administered in partnership with1 the ,secretary of ,labor and shall demonstrate to the ,secretary of ,transportation program outcomes1 including-- 7i7 impact on areas with transportation workforce shortages2 7ii7 diversity of training participants2 7iii7 number of participants obtaining certifications or credentials required for specific types of employment2 7iv7 employment outcome metrics1 such as job placement and job retention rates1 established in consultation with the ,secretary of ,labor and consistent with metrics used by programs under the ,workforce ,investment ,act2 7v7 to the extent practical1 evidence that the program did not preclude workers that participate in training or apprenticeship activities under the program from being referred to1 or hired on1 projects funded under this chapter2 and 7vi7 identification of areas of collaboration with the ,department of ,labor programs1 including co-enrollment4 7,b7 ,to be eligible to receive a competitively awarded grant under this subsection1 a ,state must certify that at least #j4a 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 #adj7;b7 of title #bc1 ,united ,states ,code4 7#ab7 ,disadvantaged business enterprises ,of the funds provided under this subsection1 #aj1jjj1jjj shall be set aside for training programs and assistance programs under section #adj7;c7 of title #bc1 ,united ,states ,code4 ,funds set aside under this paragraph should be allocated to businesses that have proven success in adding staff while effectively completing projects4 7#ac7 ,state planning and oversight expenses ,of amounts apportioned under paragraph 7#d7 of this subsection1 a ,state may use up to #j4e percent for activities related to projects funded under this subsection1 including activities eligible under sections #acd and #ace of title #bc1 ,united ,states ,code1 ,state administration of subgrants1 and ,state oversight of subrecipients4 7#ad7 ,conditions 7,a7 ,funds made available under this subsection shall be administered as if apportioned under chapter #a of title #bc1 ,united ,states ,code1 except for funds made available for investments in transportation at ,indian reservations and ,federal lands1 and for the territorial highway program1 which shall be administered in accordance with chapter #b of title #bc1 ,united ,states ,code1 and except for funds made available for disadvantaged business enterprises bonding assistance1 which shall be administered in accordance with chapter #c of title #di1 ,united ,states ,code4 7,b7 ,funds made available under this subsection shall not be obligated for the purposes authorized under section #aae7;b7 of title #bc1 ,united ,states ,code4 7,c7 ,funding provided under this subsection shall be in addition to any and all funds provided for fiscal years #bjaa and #bjab in any other ,act for ,federal-aid ,highways and shall not affect the distribution of funds provided for ,federal-aid ,highways in any other ,act4 7,d7 ,section #aaja7;b7 of ,public ,law #aji-ei shall apply to funds apportioned under this subsection4 7#ae7 ,oversight ,the ,administrator of the ,federal ,highway ,administration may set aside up to #j4ae 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 ,act1 and such funds shall be available through ,september #cj1 #bjae4 7d7 ,capital assistance for high-,speed rail corridors and intercity passenger rail service 7#a7 ,in general ,there is made available to the ,secretary of ,transportation #d1jjj1jjj1jjj for grants for high-speed rail projects as authorized under sections #bfajd and #bfajf of title #di1 ,united ,states ,code1 capital investment grants to support intercity passenger rail service as authorized under section #bddjf of title #di1 ,united ,states ,code1 and congestion grants as authorized under section #bdaje of title #di1 ,united ,states ,code1 and to enter into cooperative agreements for these purposes as authorized1 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 subsection1 which retained amount shall remain available for obligation until ,september #cj1 #bjae4 7#b7 ,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 ,act4 ,the ,secretary shall obligate amounts totaling not less than #ej percent of the funds made available within one year of enactment and obligate remaining amounts not later than two years after enactment4 7#c7 ,federal share ,the ,federal share payable of the costs for which a grant or cooperative agreements is made under this subsection shall be1 at the option of the recipient1 up to #ajj percent4 7#d7 ,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 issued4 7#e7 ,intercity passenger rail corridors ,not less than #he 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 corridors4 7#f7 ,conditions 7,a7 ,in addition to the provisions of title #di1 ,united ,states ,code1 that apply to each of the individual programs funded under this subsection1 subsections #bddjb7;a77#b71 #bddjb7;i71 and #bddjc7;a7 and 7c7 of title #di1 ,united ,states ,code1 shall also apply to the provision of funds provided under this subsection4 7,b7 ,a project need not be in a ,state rail plan developed under ,chapter #bbg of title #di1 ,united ,states ,code1 to be eligible for assistance under this subsection4 7,c7 ,recipients of grants under this paragraph shall conduct all procurement transactions using such grant funds in a manner that provides full and open competition1 as determined by the ,secretary1 in compliance with existing labor agreements4 7e7 ,capital grants to the national railroad passenger corporation 7#a7 ,in general ,there is made available #b1jjj1jjj1jjj to enable the ,secretary of ,transportation to make capital grants to the ,national ,railroad ,passenger ,corporation 7,amtrak71 as authorized by section #aja7;c7 of the ,passenger ,rail ,investment and ,improvement ,act of #bjjh 7,public ,law #aaj-dcb74 7#b7 ,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 ,act4 ,the ,secretary shall obligate amounts totaling not less than #ej percent of the funds made available within one year of enactment and obligate remaining amounts not later than two years after enactment4 7#c7 ,project priority ,the priority for the use of funds shall be given to projects for the repair1 rehabilitation1 or upgrade of railroad assets or infrastructure1 and for capital projects that expand passenger rail capacity including the rehabilitation of rolling stock4 7#d7 ,conditions 7,a7 ,none of the funds under this subsection shall be used to subsidize the operating losses of ,amtrak4 7,b7 ,the funds provided under this subsection shall be awarded not later than #ij days after the date of enactment of this ,act4 7,c7 ,the ,secretary shall take measures to ensure that projects funded under this subsection shall be completed within #b years of enactment of this ,act1 and shall serve to supplement and not supplant planned expenditures for such activities from other ,federal1 ,state1 local and corporate sources4 ,the ,secretary shall certify to the ,house and ,senate ,committees on ,appropriations in writing compliance with the preceding sentence4 7#e7 ,oversight ,the ,administrator of the ,federal ,railroad ,administration may set aside #j4e 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 subsection1 and such funds shall be available through ,september #cj1 #bjae4 7f7 ,transit capital assistance 7#a7 ,in general ,there is made available to the ,secretary of ,transportation #c1jjj1jjj1jjj for grants for transit capital assistance grants as defined by section #ecjb7;a77#a7 of title #di1 ,united ,states ,code4 ,notwithstanding any provision of chapter #ec of title #di1 however1 a recipient of funding under this subsection may use up to #aj percent of the amount provided for the operating costs of equipment and facilities for use in public transportation or for other eligible activities4 7#b7 ,federal share2 limitation on obligations ,the applicable requirements of chapter #ec of title #di1 ,united ,states ,code1 shall apply to funding provided under this subsection1 except that the ,federal share of the costs for which any grant is made under this subsection shall be1 at the option of the recipient1 up to #ajj percent4 ,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 #ec of title #di4 7#c7 ,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 ,act4 ,the ,secretary shall obligate amounts totaling not less than #ej percent of the funds made available within one year of enactment and obligate remaining amounts not later than two years after enactment4 7#d7 ,distribution of funds ,the ,secretary of ,transportation shall-- 7,a7 provide #hj percent of the funds appropriated under this subsection for grants under section #ecjg of title #di1 ,united ,states ,code1 and apportion such funds in accordance with section #eccf of such title2 7,b7 provide #aj percent of the funds appropriated under this subsection in accordance with section #ecdj of such title2 and 7,c7 provide #aj percent of the funds appropriated under this subsection for grants under section #ecaa of title #di1 ,united ,states ,code1 and apportion such funds in accordance with such section4 7#e7 ,apportionment ,the funds apportioned under this subsection shall be apportioned not later than #ba days after the date of the enactment of this ,act4 7#f7 ,redistribution 7,a7 ,the ,secretary shall1 #ahj days following the date of apportionment1 withdraw from each urbanized area or ,state an amount equal to #ej percent of the funds apportioned to such urbanized areas or ,states less the amount of funding obligated1 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 promptly4 7,b7 ,one year following the date of apportionment1 the ,secretary shall withdraw from each urbanized area or ,state any unobligated funds1 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 promptly4 7,c7 ,at the request of an urbanized area or ,state1 the ,secretary of ,transportation may provide an extension of such #a-year period if the ,secretary determines that the urbanized area or ,state has encountered an unworkable bidding environment or other extenuating circumstances4 ,before granting an extension1 the ,secretary shall notify in writing the ,committee on ,transportation and ,infrastructure and the ,committee on ,banking1 ,housing and ,urban ,affairs1 providing a thorough justification for the extension4 7#g7 ,conditions 7,a7 ,of the funds provided for section #ecaa of title #di1 ,united ,states ,code1 #b4e percent shall be made available for section #ecaa7;c77#a74 7,b7 ,section #aaja7;b7 of ,public ,law #aji-ei shall apply to funds appropriated under this subsection4 7,c7 ,the funds appropriated under this subsection shall not be comingled with any prior year funds4 7#h7 ,oversight ,notwithstanding any other provision of law1 #j4c percent of the funds provided for grants under section #ecjg and section #ecdj1 and #j4c percent of the funds provided for grants under section #ecaa1 shall be available for administrative expenses and program management oversight1 and such funds shall be available through ,september #cj1 #bjae4 7g7 ,state of good repair 7#a7 ,in general ,there is made available to the ,secretary of ,transportation #f1jjj1jjj1jjj for capital expenditures as authorized by sections #ecji7;b77#b7 and 7#c7 of title #di1 ,united ,states ,code4 7#b7 ,federal share ,the applicable requirements of chapter #ec of title #di1 ,united ,states ,code1 shall apply1 except that the ,federal share of the costs for which a grant is made under this subsection shall be1 at the option of the recipient1 up to #ajj percent4 7#c7 ,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 ,act4 ,the ,secretary shall obligate amounts totaling not less than #ej percent of the funds made available within one year of enactment and obligate remaining amounts not later than two years after enactment4 7#d7 ,distribution of funds 7,a7 ,the ,secretary of ,transportation shall apportion not less than #ge percent of the funds under this subsection for the modernization of fixed guideway systems1 pursuant to the formula set forth in section #eccf7;b7 title #di1 ,united ,states ,code1 other than subsection 7b77#b77;,a77ii74 7,b7 ,of the funds appropriated under this subsection1 not less than #be percent shall be available for the restoration or replacement of existing public transportation assets related to bus systems1 pursuant to the formula set forth in section #eccf other than subsection 7b74 7#e7 ,apportionment ,the funds made available under this subsection shall be apportioned not later than #cj days after the date of the enactment of this ,act4 7#f7 ,redistribution 7,a7 ,the ,secretary shall1 #ahj days following the date of apportionment1 withdraw from each urbanized area an amount equal to #ej percent of the funds apportioned to such urbanized area less the amount of funding obligated1 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 promptly4 7,b7 ,one year following the date of apportionment1 the ,secretary shall withdraw from each urbanized area any unobligated funds1 and the ,secretary shall redistribute such amounts to other urbanized areas that have had no funds withdrawn under this paragraph1 utilizing whatever method the ,secretary deems appropriate to ensure that all funds redistributed under this paragraph shall be utilized promptly4 7,c7 ,at the request of an urbanized area1 the ,secretary may provide an extension of the #a-year period if the ,secretary finds that the urbanized area has encountered an unworkable bidding environment or other extenuating circumstances4 ,before granting an extension1 the ,secretary shall notify the ,committee on ,transportation and ,infrastructure and the ,committee on ,banking1 ,housing1 and ,urban ,affairs1 providing a thorough justification for the extension4 7#g7 ,conditions 7,a7 ,the provisions of section #aaja7;b7 of ,public ,law #aji-ei shall apply to funds made available under this subsection4 7,b7 ,the funds appropriated under this subsection shall not be commingled with any prior year funds4 7#h7 ,oversight ,notwithstanding any other provision of law1 #j4c 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 #cj1 #bjae4 7h7 ,transportation infrastructure grants and financing 7#a7 ,in general ,there is made available to the ,secretary of ,transportation #e1jjj1jjj1jjj for capital investments in surface transportation infrastructure4 ,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 ,nation1 a metropolitan area1 or a region4 7#b7 ,federal share2 limitation on obligations ,the ,federal share payable of the costs for which a grant is made under this subsection1 shall be #ajj percent4 7#c7 ,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 ,act4 ,the ,secretary shall obligate amounts totaling not less than #ej percent of the funds made available within one year of enactment and obligate remaining amounts not later than two years after enactment4 7#d7 ,project eligibility ,projects eligible for funding provided under this subsection include-- 7,a7 highway or bridge projects eligible under title #bc1 ,united ,states ,code1 including interstate rehabilitation1 improvements to the rural collector road system1 the reconstruction of overpasses and interchanges1 bridge replacements1 seismic retrofit projects for bridges1 and road realignments2 7,b7 public transportation projects eligible under chapter #ec of title #di1 ,united ,states ,code1 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 service2 7,c7 passenger and freight rail transportation projects2 and 7,d7 port infrastructure investments1 including projects that connect ports to other modes of transportation and improve the efficiency of freight movement4 7#e7 ,,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 #f of title #bc1 ,united ,states ,code1 if the ,secretary finds that such use of the funds would advance the purposes of this subsection4 7#f7 ,project priority ,the ,secretary shall give priority to projects that are expected to be completed within #c years of the date of the enactment of this ,act4 7#g7 ,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 #ij days after enactment of this ,act4 ,the ,secretary shall require applications for funding provided under this subsection to be submitted not later than #ahj days after the publication of the criteria1 and announce all projects selected to be funded from such funds not later than #a year after the date of the enactment of the ,act4 7#h7 ,applicability of title #dj ,each project conducted using funds provided under this subsection shall comply with the requirements of subchapter ,,iv of chapter #ca of title #dj1 ,united ,states ,code4 7#i7 ,administrative expenses ,the ,secretary may retain up to one half of one percent of the funds provided under this subsection1 and may transfer portions of those funds to the ,administrators of the ,federal ,highway ,administration1 the ,federal ,transit ,administration1 the ,federal ,railroad ,administration and the ,maritime ,administration1 to fund the award and oversight of grants made under this subsection4 ,funds retained shall remain available for obligation until ,september #cj1 #bjae4 7i7 ,local hiring 7#a7 ,in general ,in the case of the funding made available under subsections 7a7 through 7h7 of this section1 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 contract1 provided that-- 7,a7 all or part of the construction work performed under the contract occurs in an area designated by the ,secretary as an area of high unemployment1 using data reported by the ,united ,states ,department of ,labor1 ,bureau of ,labor ,statistics2 7,b7 the estimated cost of the project of which the contract is a part is greater than #aj million1 except that the estimated cost of the project in the case of construction funded under subsection 7c7 shall be greater than #ej million2 and 7,c7 the recipient may not require the hiring of individuals who do not have the necessary skills to perform work in any craft or trade2 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 effectively4 7#b7 ,project standards 7,a7 ,in general ,any standards established by the ,secretary under this section shall ensure that any requirements specified under subsection 7c77#a7-- 7i7 do not compromise the quality of the project2 7ii7 are reasonable in scope and application2 7iii7 do not unreasonably delay the completion of the project2 and 7iv7 do not unreasonably increase the cost of the project4 7,b7 ,available programs ,the ,secretary shall make available to recipients the workforce development and training programs set forth in section #bdfjd7;e77#a77;,d7 of this title to assist recipients who wish to establish training programs that satisfy the provisions of section 7c77#a77;,c74 ,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 7c77#a77;,c74 7#c7 ,implementing regulations ,the ,secretary shall promulgate final regulations to implement the authority of this subsection4 7j7 ,administrative provisions 7#a7 ,applicability of title #dj ,each project conducted using funds provided under this subtitle shall comply with the requirements of subchapter ,,iv of chapter #ca of title #dj1 ,united ,states ,code4 7#b7 ,buy ,american ,section #afje of division ,a of the ,american ,recovery and ,reinvestment ,act of #bjji 7,public ,law #aaa-e7 applies to each project conducted using funds provided under this subtitle4 ,e ,building and upgrading infrastructure for long-,term development #bdb4 ,short title ,this subtitle may be cited as the ,building and ,upgrading ,infrastructure for ,long-,term ,development ,act4 #bdc4 ,findings and purpose 7a7 ,findings ,congress finds that-- 7#a7 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 ,states2 7#b7 the ,erie ,canal1 the ,hoover ,dam1 the railroads1 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 economy2 7#c7 according to the ,world ,economic ,forum's ,global ,competitiveness ,report1 the ,united ,states fell to second place in #bjji1 and dropped to fourth place overall in #bjaj1 however1 in the ,quality of overall infrastructure category of the same report1 the ,united ,states ranked twenty-third in the world2 7#d7 according to the ,world ,bank's #bjaj ,logistic ,performance ,index1 the capacity of countries to efficiently move goods and connect manufacturers and consumers with international markets is improving around the world1 and the ,united ,states now ranks seventh in the world in logistics-related infrastructure behind countries from both ,europe and ,asia2 7#e7 according to a ,january #bjji report from the ,university of ,massachusetts_/,alliance for ,american ,manufacturing entitled ,employment1 ,productivity and ,growth1 infrastructure investment is a highly effective engine of job creation2 7#f7 according to the ,american ,society of ,civil ,engineers1 the current condition of the infrastructure in the ,united ,states earns a grade point average of ,d1 and an estimated #b1bjj1jjj1jjj1jjj investment is needed over the next #e years to bring ,american infrastructure up to adequate condition2 7#g7 according to the ,national ,surface ,transportation ,policy and ,revenue ,study ,commission1 #bbe1jjj1jjj1jjj is needed annually from all sources for the next #ej years to upgrade the ,united ,states surface transportation system to a state of good repair and create a more advanced system2 7#h7 the current infrastructure financing mechanisms of the ,united ,states1 both on the ,federal and ,state level1 will fail to meet current and foreseeable demands and will create large funding gaps2 7#i7 published reports state that there may not be enough demand for municipal bonds to maintain the same level of borrowing at the same rates1 resulting in significantly decreased infrastructure investment at the ,state and local level2 7#aj7 current funding mechanisms are not readily scalable and do not-- 7,a7 serve large in-,state or cross jurisdiction infrastructure projects1 projects of regional or national significance1 or projects that cross sector silos2 7,b7 sufficiently catalyze private sector investment2 or 7,c7 ensure the optimal return on public resources2 7#aa7 although grant programs of the ,united ,states ,government must continue to play a central role in financing the transportation1 environment1 and energy infrastructure needs of the ,united ,states1 current and foreseeable demands on existing ,federal1 ,state1 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 development1 productivity1 and international competitiveness2 7#ab7 the capital markets1 including pension funds1 private equity funds1 mutual funds1 sovereign wealth funds1 and other investors1 have a growing interest in infrastructure investment and represent hundreds of billions of dollars of potential investment2 and 7#ac7 the establishment of a ,united ,states ,government-owned1 independent1 professionally managed institution that could provide credit support to qualified infrastructure projects of regional and national significance1 making transparent merit-based investment decisions based on the commercial viability of infrastructure projects1 would catalyze the participation of significant private investment capital4 7b7 ,purpose ,the purpose of this ,act is to facilitate investment in1 and long-term financing of1 economically viable infrastructure projects of regional or national significance in a manner that both complements existing ,federal1 ,state1 local1 and private funding sources for these projects and introduces a merit-based system for financing such projects1 in order to mobilize significant private sector investment1 create jobs1 and ensure ,united ,states competitiveness through an institution that limits the need for ongoing ,federal funding4 #bdd4 ,definitions ,for purposes of this ,act1 the following definitions shall apply3 7#a7 ,,aifa ,the term ,,aifa means the ,american ,infrastructure ,financing ,authority established under this ,act4 7#b7 ,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 trust4 7#c7 ,board of directors ,the term ,board of ,directors means ,board of ,directors of ,,aifa4 7#d7 ,chairperson ,the term ,chairperson means the ,chairperson of the ,board of ,directors of ,,aifa4 7#e7 ,chief executive officer ,the term chief executive officer means the chief executive officer of ,,aifa1 appointed under section #bdg4 7#f7 ,cost ,the term cost has the same meaning as in section #ejb of the ,federal ,credit ,reform ,act of #aiij 7#b ,u4,s4,c4 #ffa;a74 7#g7 ,direct loan ,the term direct loan has the same meaning as in section #ejb of the ,federal ,credit ,reform ,act of #aiij 7#b ,u4,s4,c4 #ffa;a74 7#h7 ,eligible entity ,the term eligible entity means an individual1 corporation1 partnership 7including a public-private partnership71 joint venture1 trust1 ,state1 or other non-,federal governmental entity1 including a political subdivision or any other instrumentality of a ,state1 or a revolving fund4 7#i7 ,infrastructure project 7,a7 ,in general ,the term eligible infrastructure project means any non-,federal transportation1 water1 or energy infrastructure project1 or an aggregation of such infrastructure projects1 as provided in this ,act4 7,b7 ,transportation infrastructure project ,the term transportation infrastructure project means the construction1 alteration1 or repair1 including the facilitation of intermodal transit1 of the following subsectors3 7i7 ,highway or road4 7ii7 ,bridge4 7iii7 ,mass transit4 7iv7 ,inland waterways4 7v7 ,commercial ports4 7vi7 ,airports4 7vii7 ,air traffic control systems4 7viii7 ,passenger rail1 including high-speed rail4 7ix7 ,freight rail systems4 7,c7 ,water infrastructure project ,the term water infrastructure project means the construction1 consolidation1 alteration1 or repair of the following subsectors3 7i7 ,waterwaste treatment facility4 7ii7 ,storm water management system4 7iii7 ,dam4 7iv7 ,solid waste disposal facility4 7v7 ,drinking water treatment facility4 7vi7 ,levee4 7vii7 ,open space management system4 7,d7 ,energy infrastructure project ,the term energy infrastructure project means the construction1 alteration1 or repair of the following subsectors3 7i7 ,pollution reduced energy generation4 7ii7 ,transmission and distribution4 7iii7 ,storage4 7iv7 ,energy efficiency enhancements for buildings1 including public and commercial buildings4 7,e7 ,board authority to modify subsectors ,the ,board of ,directors may make modifications1 at the discretion of the ,board1 to the subsectors described in this paragraph by a vote of not fewer than #e of the voting members of the ,board of ,directors4 7#aj7 ,investment prospectus 7,a7 ,the term investment prospectus means the processes and publications described below that will guide the priorities and strategic focus for ,,aifa's investments4 ,the investment prospectus shall follow rulemaking procedures under section #eec of title #e1 ,united ,states ,code4 7,b7 ,,aifa shall publish a detailed description of its strategy in an investment prospectus within one year of the enactment of this subchapter4 ,the investment prospectus shall-- 7i7 specify what ,,aifa shall consider significant to the economic competitiveness of the ,united ,states or a region thereof in a manner consistent with the primary objective2 7ii7 specify the priorities and strategic focus of ,,aifa in forwarding its strategic objectives and carrying out ,,aifa strategy2 7iii7 specify the priorities and strategic focus of ,,aifa in promoting greater efficiency in the movement of freight2 7iv7 specify the priorities and strategic focus of ,,aifa in promoting the use of innovation and best practices in the planning1 design1 development and delivery of projects2 7v7 describe in detail the framework and methodology for calculating application qualification scores and associated ranges as specified in this subchapter1 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 ranges2 7vi7 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 applications2 and 7vii7 describe how the qualification score and range methodology and project selection framework are consistent with maximizing ,,aifa goals in both urban and rural areas4 7,c7 ,the investment prospectus and any subsequent updates thereto shall be approved by a majority vote of the ,board of ,directors prior to publication4 7,d7 ,,aifa shall update the investment prospectus on every biennial anniversary of its original publication4 7#aa7 ,investment-grade rating ,the term investment-grade rating means a rating of ,,bbb minus1 ,baa#c1 or higher assigned to an infrastructure project by a ratings agency4 7#ab7 ,loan guarantee ,the term loan guarantee has the same meaning as in section #ejb of the ,federal ,credit ,reform ,act of #aiij 7#b ,u4,s4,c4 #ffa;a74 7#ac7 ,public-private partnership ,the term public-private partnership means any eligible entity-- 7,a7 7i7 which is undertaking the development of all or part of an infrastructure project that will have a public benefit1 pursuant to requirements established in one or more contracts between the entity and a ,state or an instrumentality of a ,state2 or 7ii7 the activities of which1 with respect to such an infrastructure project1 are subject to regulation by a ,state or any instrumentality of a ,state2 7,b7 which owns1 leases1 or operates or will own1 lease1 or operate1 the project in whole or in part2 and 7,c7 the participants in which include not fewer than #a nongovernmental entity with significant investment and some control over the project or project vehicle4 7#ad7 ,rural infrastructure project ,the term rural infrastructure project means an infrastructure project in a rural area1 as that term is defined in section #cdc7;a77#ac77;,a7 of the ,consolidated ,farm and ,rural ,development ,act 7#g ,u4,s4,c4 #aiia7;a77#ac77;,a774 7#ae7 ,secretary ,unless the context otherwise requires1 the term ,secretary means the ,secretary of the ,treasury or the designee thereof4 7#af7 ,senior management ,the term senior management means the chief financial officer1 chief risk officer1 chief compliance officer1 general counsel1 chief lending officer1 and chief operations officer of ,,aifa established under section #bdi1 and such other officers as the ,board of ,directors may1 by majority vote1 add to senior management4 7#ag7 ,state ,the term ,state includes the ,district of ,columbia1 ,puerto ,rico1 ,guam1 ,american ,samoa1 the ,virgin ,islands1 the ,commonwealth of ,northern ,mariana ,islands1 and any other territory of the ,united ,states4 ,i ,american infrastructure financing authority #bde4 ,establishment and general authority of ,,aifa 7a7 ,establishment of ,,aifa ,the ,american ,infrastructure ,financing ,authority is established as a wholly owned ,government corporation4 7b7 ,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 significance1 and shall have such other authority1 as provided in this ,act4 7c7 ,incorporation 7#a7 ,in general ,the ,board of ,directors first appointed shall be deemed the incorporator of ,,aifa1 and the incorporation shall be held to have been effected from the date of the first meeting of the ,board of ,directors4 7#b7 ,corporate office ,,aifa shall-- 7,a7 maintain an office in ,washington1 ,,dc2 and 7,b7 for purposes of venue in civil actions1 be considered to be a resident of ,washington1 ,,dc4 7d7 ,responsibility of the secretary ,the ,secretary shall take such action as may be necessary to assist in implementing ,,aifa1 and in carrying out the purpose of this ,act4 7e7 ,rule of construction ,chapter #ia of title #ca1 ,united ,states ,code1 does not apply to ,,aifa1 unless otherwise specifically provided in this ,act4 #bdf4 ,voting members of the ,board of ,directors 7a7 ,voting membership of the board of directors 7#a7 ,in general ,,aifa shall have a ,board of ,directors consisting of #g voting members appointed by the ,president1 by and with the advice and consent of the ,senate1 not more than #d of whom shall be from the same political party4 7#b7 ,chairperson ,one of the voting members of the ,board of ,directors shall be designated by the ,president to serve as ,chairperson thereof4 7#c7 ,congressional recommendations ,not later than #cj days after the date of enactment of this ,act1 the majority leader of the ,senate1 the minority leader of the ,senate1 the ,speaker of the ,house of ,representatives1 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 ,directors1 after consultation with the appropriate committees of ,congress4 7b7 ,voting rights ,each voting member of the ,board of ,directors shall have an equal vote in all decisions of the ,board of ,directors4 7c7 ,qualifications of voting members ,each voting member of the ,board of ,directors shall-- 7#a7 be a citizen of the ,united ,states2 and 7#b7 have significant demonstrated expertise in-- 7,a7 the management and administration of a financial institution relevant to the operation of ,,aifa2 or a public financial agency or authority2 7,b7 the financing1 development1 or operation of infrastructure projects2 or 7,c7 analyzing the economic benefits of infrastructure investment4 7d7 ,terms 7#a7 ,in general ,except as otherwise provided in this ,act1 each voting member of the ,board of ,directors shall be appointed for a term of #d years4 7#b7 ,initial staggered terms ,of the voting members first appointed to the ,board of ,directors-- 7,a7 the initial ,chairperson and #c of the other voting members shall each be appointed for a term of #d years2 and 7,b7 the remaining #c voting members shall each be appointed for a term of #b years4 7#c7 ,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 #fj days after the date of enactment of this ,act4 7#d7 ,beginning of term ,the term of each of the initial voting members appointed under this section shall commence immediately upon the date of appointment1 except that1 for purposes of calculating the term limits specified in this subsection1 the initial terms shall each be construed as beginning on ,january #bb of the year following the date of the initial appointment4 7#e7 ,vacancies ,a vacancy in the position of a voting member of the ,board of ,directors shall be filled by the ,president1 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 term4 7e7 ,meetings 7#a7 ,open to the public2 notice ,except as provided in paragraph 7#c71 all meetings of the ,board of ,directors shall be-- 7,a7 open to the public2 and 7,b7 preceded by reasonable public notice4 7#b7 ,frequency ,the ,board of ,directors shall meet not later than #fj days after the date on which all members of the ,board of ,directors are first appointed1 at least quarterly thereafter1 and otherwise at the call of either the ,chairperson or #e voting members of the ,board of ,directors4 7#c7 ,exception for closed meetings ,the voting members of the ,board of ,directors may1 by majority vote1 close a meeting to the public if1 during the meeting to be closed1 there is likely to be disclosed proprietary or sensitive information regarding an infrastructure project under consideration for assistance under this ,act4 ,the ,board of ,directors shall prepare minutes of any meeting that is closed to the public1 and shall make such minutes available as soon as practicable1 not later than #a year after the date of the closed meeting1 with any necessary redactions to protect any proprietary or sensitive information4 7#d7 ,quorum ,for purposes of meetings of the ,board of ,directors1 #e voting members of the ,board of ,directors shall constitute a quorum4 7f7 ,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 #ecad of title #e1 ,united ,states ,code1 for each day 7including travel time7 during which the member is engaged in the performance of the duties of the ,board of ,directors4 7g7 ,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 ,act1 if the member has or is affiliated with an entity who has a financial interest in such project4 #bdg4 ,chief executive officer of ,,aifa 7a7 ,in general ,the chief executive officer of ,,aifa shall be a nonvoting member of the ,board of ,directors1 who shall be responsible for all activities of ,,aifa1 and shall support the ,board of ,directors as set forth in this ,act and as the ,board of ,directors deems necessary or appropriate4 7b7 ,appointment and tenure of the chief executive officer 7#a7 ,in general ,the ,president shall appoint the chief executive officer1 by and with the advice and consent of the ,senate4 7#b7 ,term ,the chief executive officer shall be appointed for a term of #f years4 7#c7 ,vacancies ,any vacancy in the office of the chief executive officer shall be filled by the ,president1 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 term4 7c7 ,qualifications ,the chief executive officer-- 7#a7 shall have significant expertise in management and administration of a financial institution1 or significant expertise in the financing and development of infrastructure projects1 or significant expertise in analyzing the economic benefits of infrastructure investment2 and 7#b7 may not-- 7,a7 hold any other public office2 7,b7 have any financial interest in an infrastructure project then being considered by the ,board of ,directors1 unless that interest is placed in a blind trust2 or 7,c7 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 ,,aifa1 unless any such interest is placed in a blind trust for the tenure of the service of the chief executive officer plus #b additional years4 7d7 ,responsibilities ,the chief executive officer shall have such executive functions1 powers1 and duties as may be prescribed by this ,act1 the bylaws of ,,aifa1 or the ,board of ,directors1 including-- 7#a7 responsibility for the development and implementation of the strategy of ,,aifa1 including-- 7,a7 the development and submission to the ,board of ,directors of the investment prospectus1 the annual business plans and budget2 7,b7 the development and submission to the ,board of ,directors of a long-term strategic plan2 and 7,c7 the development1 revision1 and submission to the ,board of ,directors of internal policies2 and 7#b7 responsibility for the management and oversight of the daily activities1 decisions1 operations1 and personnel of ,,aifa1 including-- 7,a7 the appointment of senior management1 subject to approval by the voting members of the ,board of ,directors1 and the hiring and termination of all other ,,aifa personnel2 7,b7 requesting the detail1 on a reimbursable basis1 of personnel from any ,federal agency having specific expertise not available from within ,,aifa1 following which request the head of the ,federal agency may detail1 on a reimbursable basis1 any personnel of such agency reasonably requested by the chief executive officer2 7,c7 assessing and recommending in the first instance1 for ultimate approval or disapproval by the ,board of ,directors1 compensation and adjustments to compensation of senior management and other personnel of ,,aifa as may be necessary for carrying out the functions of ,,aifa2 7,d7 ensuring1 in conjunction with the general counsel of ,,aifa1 that all activities of ,,aifa are carried out in compliance with applicable law2 7,e7 overseeing the involvement of ,,aifa in all projects1 including-- 7i7 developing eligible projects for ,,aifa financial assistance2 7ii7 determining the terms and conditions of all financial assistance packages2 7iii7 monitoring all infrastructure projects assisted by ,,aifa1 including responsibility for ensuring that the proceeds of any loan made1 guaranteed1 or participated in are used only for the purposes for which the loan or guarantee was made2 7iv7 preparing and submitting for approval by the ,board of ,directors the documents required under paragraph 7#a72 and 7v7 ensuring the implementation of decisions of the ,board of ,directors2 and 7,f7 such other activities as may be necessary or appropriate in carrying out this ,act4 7e7 ,compensation 7#a7 ,in general ,any compensation assessment or recommendation by the chief executive officer under this section shall be without regard to the provisions of chapter #ea or subchapter ,,iii of chapter #ec of title #e1 ,united ,states ,code4 7#b7 ,considerations ,the compensation assessment or recommendation required under this subsection shall take into account merit principles1 where applicable1 as well as the education1 experience1 level of responsibility1 geographic differences1 and retention and recruitment needs in determining compensation of personnel4 #bdh4 ,powers and duties of the ,board of ,directors ,the ,board of ,directors shall-- 7#a7 as soon as is practicable after the date on which all members are appointed1 approve or disapprove senior management appointed by the chief executive officer2 7#b7 not later than #ahj days after the date on which all members are appointed-- 7,a7 develop and approve the bylaws of ,,aifa1 including bylaws for the regulation of the affairs and conduct of the business of ,,aifa1 consistent with the purpose1 goals1 objectives1 and policies set forth in this ,act2 7,b7 establish subcommittees1 including an audit committee that is composed solely of members of the ,board of ,directors who are independent of the senior management of ,,aifa2 7,c7 develop and approve1 in consultation with senior management1 a conflict-of-interest policy for the ,board of ,directors and for senior management2 7,d7 approve or disapprove internal policies that the chief executive officer shall submit to the ,board of ,directors1 including-- 7i7 policies regarding the loan application and approval process1 including-- 7,i7 disclosure and application procedures to be followed by entities in the course of nominating infrastructure projects for assistance under this ,act2 7,,ii7 guidelines for the selection and approval of projects2 7,,iii7 specific criteria for determining eligibility for project selection1 consistent with title ,,ii2 and 7,,iv7 standardized terms and conditions1 fee schedules1 or legal requirements of a contract or program1 so as to carry out this ,act2 and 7ii7 operational guidelines2 and 7,e7 approve or disapprove a multi-year or #a-year business plan and budget for ,,aifa2 7#c7 ensure that ,,aifa is at all times operated in a manner that is consistent with this ,act1 by-- 7,a7 monitoring and assessing the effectiveness of ,,aifa in achieving its strategic goals2 7,b7 periodically reviewing internal policies2 7,c7 reviewing and approving annual business plans1 annual budgets1 and long-term strategies submitted by the chief executive officer2 7,d7 reviewing and approving annual reports submitted by the chief executive officer2 7,e7 engaging one or more external auditors1 as set forth in this ,act2 and 7,f7 reviewing and approving all changes to the organization of senior management2 7#d7 appoint and fix1 by a vote of #e of the #g voting members of the ,board of ,directors1 and without regard to the provisions of chapter #ea or subchapter ,,iii of chapter #ec of title #e1 ,united ,states ,code1 the compensation and adjustments to compensation of all ,,aifa personnel1 and where1 in appointing and fixing any compensation or adjustments to compensation under this paragraph1 the ,board shall-- 7,a7 consult with1 and seek to maintain comparability with1 other comparable ,federal personnel2 7,b7 consult with the ,office of ,personnel ,management2 and 7,c7 carry out such duties consistent with merit principles1 where applicable1 as well as the education1 experience1 level of responsibility1 geographic differences1 and retention and recruitment needs in determining compensation of personnel2 7#e7 establish such other criteria1 requirements1 or procedures as the ,board of ,directors may consider to be appropriate in carrying out this ,act2 7#f7 serve as the primary liaison for ,,aifa in interactions with ,congress1 the ,executive ,branch1 and ,state and local governments1 and to represent the interests of ,,aifa in such interactions and others2 7#g7 approve by a vote of #e of the #g voting members of the ,board of ,directors any changes to the bylaws or internal policies of ,,aifa2 7#h7 have the authority and responsibility-- 7,a7 to oversee entering into and carry out such contracts1 leases1 cooperative agreements1 or other transactions as are necessary to carry out this ,act with-- 7i7 any ,federal department or agency2 7ii7 any ,state1 territory1 or possession 7or any political subdivision thereof1 including ,state infrastructure banks7 of the ,united ,states2 and 7iii7 any individual1 public-private partnership1 firm1 association1 or corporation2 7,b7 to approve of the acquisition1 lease1 pledge1 exchange1 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 property1 to the extent that the exercise of such powers is appropriate to and consistent with the purposes of ,,aifa2 7,c7 to determine the character of1 and the necessity for1 the obligations and expenditures of ,,aifa1 and the manner in which the obligations and expenditures will be incurred1 allowed1 and paid1 subject to this ,act and other ,federal law specifically applicable to wholly owned ,federal corporations2 7,d7 to execute1 in accordance with applicable bylaws and regulations1 appropriate instruments2 7,e7 to approve other forms of credit enhancement that ,,aifa may provide to eligible projects1 as long as the forms of credit enhancements are consistent with the purposes of this ,act and terms set forth in title ,,ii2 7,f7 to exercise all other lawful powers which are necessary or appropriate to carry out1 and are consistent with1 the purposes of ,,aifa2 7,g7 to sue or be sued in the corporate capacity of ,,aifa in any court of competent jurisdiction2 7,h7 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 capacity1 in accordance with1 and subject to the limitations contained in this ,act2 7,i7 to review all financial assistance packages to all eligible infrastructure projects1 as submitted by the chief executive officer and to approve1 postpone1 or deny the same by majority vote2 7,j7 to review all restructuring proposals submitted by the chief executive officer1 including assignation1 pledging1 or disposal of the interest of ,,aifa in a project1 including payment or income from any interest owned or held by ,,aifa1 and to approve1 postpone1 or deny the same by majority vote2 and 7,k7 to enter into binding commitments1 as specified in approved financial assistance packages2 7#i7 delegate to the chief executive officer those duties that the ,board of ,directors deems appropriate1 to better carry out the powers and purposes of the ,board of ,directors under this section2 and 7#aj7 to approve a maximum aggregate amount of outstanding obligations of ,,aifa at any given time1 taking into consideration funding1 and the size of ,,aifa's addressable market for infrastructure projects4 #bdi4 ,senior management 7a7 ,in general ,senior management shall support the chief executive officer in the discharge of the responsibilities of the chief executive officer4 7b7 ,appointment of senior management ,the chief executive officer shall appoint such senior managers as are necessary to carry out the purpose of ,,aifa1 as approved by a majority vote of the voting members of the ,board of ,directors4 7c7 ,term ,each member of senior management shall serve at the pleasure of the chief executive officer and the ,board of ,directors4 7d7 ,removal of senior management ,any member of senior management may be removed1 either by a majority of the voting members of the ,board of ,directors upon request by the chief executive officer1 or otherwise by vote of not fewer than #e voting members of the ,board of ,directors4 7e7 ,senior management 7#a7 ,in general ,each member of senior management shall report directly to the chief executive officer1 other than the ,chief ,risk ,officer1 who shall report directly to the ,board of ,directors4 7#b7 ,duties and responsibilities 7,a7 ,chief financial officer ,the ,chief ,financial ,officer shall be responsible for all financial functions of ,,aifa4 ,at the discretion of the ,board of ,directors1 specific functions of the ,chief ,financial ,officer may be delegated externally4 7,b7 ,chief risk officer ,the ,chief ,risk ,officer shall be responsible for all functions of ,,aifa relating to-- 7i7 the creation of financial1 credit1 and operational risk management guidelines and policies2 7ii7 credit analysis for infrastructure projects2 7iii7 the creation of conforming standards for infrastructure finance agreements2 7iv7 the monitoring of the financial1 credit1 and operational exposure of ,,aifa2 and 7v7 risk management and mitigation actions1 including by reporting such actions1 or recommendations of such actions to be taken1 directly to the ,board of ,directors4 7,c7 ,chief compliance officer ,the ,chief ,compliance ,officer shall be responsible for all functions of ,,aifa relating to internal audits1 accounting safeguards1 and the enforcement of such safeguards and other applicable requirements4 7,d7 ,general counsel ,the ,general ,counsel shall be responsible for all functions of ,,aifa relating to legal matters and1 in consultation with the chief executive officer1 shall be responsible for ensuring that ,,aifa complies with all applicable law4 7,e7 ,chief operations officer ,the ,chief ,operations ,officer shall be responsible for all operational functions of ,,aifa1 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 resources4 7,f7 ,chief lending officer ,the ,chief ,lending ,officer shall be responsible for-- 7i7 all functions of ,,aifa relating to the development of project pipeline1 financial structuring of projects1 selection of infrastructure projects to be reviewed by the ,board of ,directors1 preparation of infrastructure projects to be presented to the ,board of ,directors1 and set aside for rural infrastructure projects2 7ii7 the creation and management of-- 7,i7 a ,center for ,excellence to provide technical assistance to public sector borrowers in the development and financing of infrastructure projects2 and 7,,ii7 an ,office of ,rural ,assistance to provide technical assistance in the development and financing of rural infrastructure projects2 and 7iii7 the establishment of guidelines to ensure diversification of lending activities by region1 infrastructure project type1 and project size4 7f7 ,changes to senior management ,the ,board of ,directors1 in consultation with the chief executive officer1 may alter the structure of the senior management of ,,aifa at any time to better accomplish the goals1 objectives1 and purposes of ,,aifa1 except that the functions of the ,chief ,financial ,officer set forth in subsection 7e7 shall remain separate from the functions of the ,chief ,risk ,officer set forth in subsection 7e74 7g7 ,conflicts of interest ,no individual appointed to senior management may-- 7#a7 hold any other public office2 7#b7 have any financial interest in an infrastructure project then being considered by the ,board of ,directors1 unless that interest is placed in a blind trust2 or 7#c7 have any financial interest in an investment institution or its affiliates1 ,,aifa or its affiliates1 or other entity then seeking or likely to seek financial assistance for any infrastructure project from ,,aifa1 unless any such interest is placed in a blind trust during the term of service of that individual in a senior management position1 and for a period of #b years thereafter4 #bej4 ,special ,inspector ,general for ,,aifa 7a7 ,in general ,during the first #e operating years of ,,aifa1 the ,office of the ,inspector ,general of the ,department of the ,treasury shall have responsibility for ,,aifa4 7b7 ,office of the special inspector general ,effective #e years after the date of enactment of the commencement of the operations of ,,aifa1 there is established the ,office of the ,special ,inspector ,general for ,,aifa4 7c7 ,appointment of ,inspector ,general2 ,removal 7#a7 ,head of office ,the head of the ,office of the ,special ,inspector ,general for ,,aifa shall be the ,special ,inspector ,general for ,,aifa 7in this ,act referred to as the ,special ,inspector ,general71 who shall be appointed by the ,president1 by and with the advice and consent of the ,senate4 7#b7 ,basis of appointment ,the appointment of the ,special ,inspector ,general shall be made on the basis of integrity and demonstrated ability in accounting1 auditing1 financial analysis1 law1 management analysis1 public administration1 or investigations4 7#c7 ,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 7b74 7#d7 ,removal ,the ,special ,inspector ,general shall be removable from office in accordance with the provisions of section #c7;b7 of the ,inspector ,general ,act of #aigh 7#e ,u4,s4,c4 ,app474 7#e7 ,rule of construction ,for purposes of section #gcbd of title #e1 ,united ,states ,code1 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 law4 7#f7 ,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 #c7;e7 of the ,inspector ,general ,act of #aigh 7#e ,u4,s4,c4 ,app474 7d7 ,duties 7#a7 ,in general ,it shall be the duty of the ,special ,inspector ,general to conduct1 supervise1 and coordinate audits and investigations of the business activities of ,,aifa4 7#b7 ,other systems1 procedures1 and controls ,the ,special ,inspector ,general shall establish1 maintain1 and oversee such systems1 procedures1 and controls as the ,special ,inspector ,general considers appropriate to discharge the duty under paragraph 7#a74 7#c7 ,additional duties ,in addition to the duties specified in paragraphs 7#a7 and 7#b71 the ,inspector ,general shall also have the duties and responsibilities of inspectors general under the ,inspector ,general ,act of #aigh4 7e7 ,powers and authorities 7#a7 ,in general ,in carrying out the duties specified in subsection 7c71 the ,special ,inspector ,general shall have the authorities provided in section #f of the ,inspector ,general ,act of #aigh4 7#b7 ,additional authority ,the ,special ,inspector ,general shall carry out the duties specified in subsection 7c77#a7 in accordance with section #d7;b77#a7 of the ,inspector ,general ,act of #aigh4 7f7 ,personnel1 facilities1 and other resources 7#a7 ,additional officers 7,a7 ,the ,special ,inspector ,general may select1 appoint1 and employ such officers and employees as may be necessary for carrying out the duties of the ,special ,inspector ,general1 subject to the provisions of title #e1 ,united ,states ,code1 governing appointments in the competitive service1 and the provisions of chapter #ea and subchapter ,,iii of chapter #ec of such title1 relating to classification and ,general ,schedule pay rates4 7,b7 ,the ,special ,inspector ,general may exercise the authorities of subsections 7b7 through 7i7 of section #cafa of title #e1 ,united ,states ,code 7without regard to subsection 7a7 of that section74 7#b7 ,retention of services ,the ,special ,inspector ,general may obtain services as authorized by section #caji of title #e1 ,united ,states ,code1 at daily rates not to exceed the equivalent rate prescribed for grade ,,gs-#ae of the ,general ,schedule by section #eccb of such title4 7#c7 ,ability to contract for audits1 studies1 and other services ,the ,special ,inspector ,general may enter into contracts and other arrangements for audits1 studies1 analyses1 and other services with public agencies and with private persons1 and make such payments as may be necessary to carry out the duties of the ,special ,inspector ,general4 7#d7 ,request for information 7,a7 ,in general ,upon request of the ,special ,inspector ,general for information or assistance from any department1 agency1 or other entity of the ,federal ,government1 the head of such entity shall1 insofar as is practicable and not in contravention of any existing law1 furnish such information or assistance to the ,special ,inspector ,general1 or an authorized designee4 7,b7 ,refusal to comply ,whenever information or assistance requested by the ,special ,inspector ,general is1 in the judgment of the ,special ,inspector ,general1 unreasonably refused or not provided1 the ,special ,inspector ,general shall report the circumstances to the ,secretary of the ,treasury1 without delay4 7g7 ,reports 7#a7 ,annual report ,not later than #a year after the confirmation of the ,special ,inspector ,general1 and every calendar year thereafter1 the ,special ,inspector ,general shall submit to the ,president a report summarizing the activities of the ,special ,inspector ,general during the previous #a-year period ending on the date of such report4 7#b7 ,public disclosures ,nothing in this subsection shall be construed to authorize the public disclosure of information that is-- 7,a7 specifically prohibited from disclosure by any other provision of law2 7,b7 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 affairs2 or 7,c7 a part of an ongoing criminal investigation4 #bea4 ,other personnel ,except as otherwise provided in the bylaws of ,,aifa1 the chief executive officer1 in consultation with the ,board of ,directors1 shall appoint1 remove1 and define the duties of such qualified personnel as are necessary to carry out the powers1 duties1 and purpose of ,,aifa1 other than senior management1 who shall be appointed in accordance with section #bdi4 #beb4 ,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 project4 ,,ii ,terms and limitations on direct loans and loan guarantees #bec4 ,eligibility criteria for assistance from ,,aifa and terms and limitations of loans 7a7 ,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 ,act4 ,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-- 7#a7 is not for the refinancing of an existing infrastructure project2 and 7#b7 meets-- 7,a7 any pertinent requirements set forth in this ,act2 7,b7 any criteria established by the ,board of ,directors or chief executive officer in accordance with this ,act2 and 7,c7 the definition of a transportation infrastructure project1 water infrastructure project1 or energy infrastructure project4 7b7 ,considerations ,the criteria established by the ,board of ,directors pursuant to this ,act shall provide adequate consideration of-- 7#a7 the economic1 financial1 technical1 environmental1 and public benefits and costs of each infrastructure project under consideration for financial assistance under this ,act1 prioritizing infrastructure projects that-- 7,a7 contribute to regional or national economic growth2 7,b7 offer value for money to the ,government2 7,c7 demonstrate a clear and significant public benefit2 7,d7 lead to job creation2 and 7,e7 mitigate environmental concerns2 7#b7 the means by which development of the infrastructure project under consideration is being financed1 including-- 7,a7 the terms1 conditions1 and structure of the proposed financing2 7,b7 the credit worthiness and standing of the project sponsors1 providers of equity1 and cofinanciers2 7,c7 the financial assumptions and projections on which the infrastructure project is based2 and 7,d7 whether there is sufficient ,state or municipal political support for the successful completion of the infrastructure project2 7#c7 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 assistance2 7#d7 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 partnership1 while providing a significant public benefit2 7#e7 the extent to which the provision of assistance by ,,aifa can mobilize the participation of other financing partners in the infrastructure project2 7#f7 the technical and operational viability of the infrastructure project2 7#g7 the proportion of financial assistance from ,,aifa2 7#h7 the geographic location of the project in an effort to have geographic diversity of projects funded by ,,aifa2 7#i7 the size of the project and its impact on the resources of ,,aifa2 7#aj7 the infrastructure sector of the project1 in an effort to have projects from more than one sector funded by ,,aifa2 and 7#aa7 ,encourages use of innovative procurement1 asset management1 or financing to minimize the all-in-life-cycle cost1 and improve the cost-effectiveness of a project4 7c7 ,application 7#a7 ,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 time1 in such manner1 and containing such information as the ,board of ,directors or the chief executive officer may require4 7#b7 ,review of applications ,,aifa shall review applications for assistance under this ,act on an ongoing basis4 ,the chief executive officer1 working with the senior management1 shall prepare eligible infrastructure projects for review and approval by the ,board of ,directors4 7#c7 ,dedicated revenue sources ,the ,federal credit instrument shall be repayable1 in whole or in part1 from tolls1 user fees1 or other dedicated revenue sources that also secure the infrastructure project obligations4 7d7 ,eligible infrastructure project costs 7#a7 ,in general ,except as provided in paragraph 7#b71 to be eligible for assistance under this ,act1 an infrastructure project shall have project costs that are reasonably anticipated to equal or exceed #ajj1jjj1jjj4 7#b7 ,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 #be1jjj1jjj4 7e7 ,loan eligibility and maximum amounts 7#a7 ,in general ,the amount of a direct loan or loan guarantee under this ,act shall not exceed the lesser of #ej percent of the reasonably anticipated eligible infrastructure project costs or1 if the direct loan or loan guarantee does not receive an investment grade rating1 the amount of the senior project obligations4 7#b7 ,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-- 7,a7 during the first #b fiscal years of the operations of ,,aifa1 #aj1jjj1jjj1jjj2 7,b7 during fiscal years #c through #i of the operations of ,,aifa1 #bj1jjj1jjj1jjj2 or 7,c7 during any fiscal year thereafter1 #ej1jjj1jjj1jjj4 7f7 ,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 assistance1 or the related infrastructure project1 of any obligation to obtain required ,state and local permits and approvals4 7g7 ,employee protections ,as a condition for the provision of financial assistance by the ,board of ,directors pursuant to this ,act1 the interests of employees affected by the financial assistance shall be protected under arrangements the ,secretary of ,labor concludes are fair and equitable in accordance with section #eccc7;b77#b7 of title #di1 ,united ,states ,code4 #bed4 ,loan terms and repayment 7a7 ,in general ,a direct loan or loan guarantee under this ,act with respect to an eligible infrastructure project shall be on such terms1 subject to such conditions1 and contain such covenants1 representations1 warranties1 and requirements 7including requirements for audits7 as the chief executive officer determines appropriate4 7b7 ,terms ,a direct loan or loan guarantee under this ,act-- 7#a7 shall-- 7,a7 be payable1 in whole or in part1 from tolls1 user fees1 or other dedicated revenue sources that also secure the senior project obligations 7such as availability payments and dedicated ,state or local revenues72 and 7,b7 include a rate covenant1 coverage requirement1 or similar security feature supporting the project obligations2 and 7#b7 may have a lien on revenues described in paragraph 7#a71 subject to any lien securing project obligations4 7c7 ,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 loan4 7d7 ,risk assessment ,before entering into an agreement for assistance under this ,act1 the chief executive officer1 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 section1 shall estimate an appropriate ,federal credit subsidy amount for each direct loan and loan guarantee1 taking into account such letter1 as well as any comparable market rates available for such a loan or loan guarantee1 should any exist4 ,the final credit subsidy cost for each loan and loan guarantee shall be determined consistent with the ,federal ,credit ,reform ,act1 #b ,u4,s4,c4 #ffa;a1 et seq4 7e7 ,credit fee 7#a7 ,in general ,with respect to each agreement for assistance under this ,act1 the chief executive officer may charge a credit fee to the recipient of such assistance to pay for1 over time1 all or a portion of the ,federal credit subsidy determined under subsection 7d71 with the remainder paid by the account established for ,,aifa4 7#b7 ,treatment of source of fees ,the source of fees paid under this section shall not be a loan or debt obligation guaranteed by the ,federal ,government4 7#c7 ,credit fee on a direct loan ,in the case of a direct loan1 such credit fee shall be in addition to the base interest rate established under subsection 7c74 7f7 ,maturity date ,the final maturity date of a direct loan or loan guaranteed by ,,aifa under this ,act shall be not later than #ce years after the date of substantial completion of the infrastructure project1 as determined by the chief executive officer4 7g7 ,rating opinion letter 7#a7 ,in general ,the chief executive officer shall require each applicant for assistance under this ,act to provide a rating opinion letter from at least #a ratings agency1 indicating that the senior obligations of the infrastructure project1 which may be the ,federal credit instrument1 have the potential to achieve an investment-grade rating4 7#b7 ,rural infrastructure projects ,with respect to a rural infrastructure project1 a rating agency opinion letter described in paragraph 7#a7 shall not be required1 except that the loan or loan guarantee shall receive an internal rating score1 using methods similar to the ratings agencies generated by ,,aifa1 measuring the proposed direct loan or loan guarantee against comparable direct loans or loan guarantees of similar credit quality in a similar sector4 7h7 ,investment-,grade ,rating ,requirement 7#a7 ,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 rating4 7#b7 ,rating of ,,aifa overall portfolio ,the average rating of the overall portfolio of ,,aifa shall be not less than investment grade after #e years of operation4 7i7 ,terms and repayment of direct loans 7#a7 ,schedule ,the chief executive officer shall establish a repayment schedule for each direct loan under this ,act1 based on the projected cash flow from infrastructure project revenues and other repayment sources4 7#b7 ,commencement ,scheduled loan repayments of principal or interest on a direct loan under this ,act shall commence not later than #e years after the date of substantial completion of the infrastructure project1 as determined by the chief executive officer of ,,aifa4 7#c7 ,deferred payments of direct loans 7,a7 ,authorization ,if1 at any time after the date of substantial completion of an infrastructure project assisted under this ,act1 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 ,act1 the chief executive officer may allow the obligor to add unpaid principal and interest to the outstanding balance of the direct loan1 if the result would benefit the ,government4 7,b7 ,interest ,any payment deferred under subparagraph 7,a7 shall-- 7i7 continue to accrue interest1 in accordance with the terms of the obligation1 until fully repaid2 and 7ii7 be scheduled to be amortized over the remaining term of the loan4 7,c7 ,criteria 7i7 ,in general ,any payment deferral under subparagraph 7,a7 shall be contingent on the infrastructure project meeting criteria established by the ,board of ,directors4 7ii7 ,repayment standards ,the criteria established under clause 7i7 shall include standards for reasonable assurance of repayment4 7#d7 ,prepayment of direct loans 7,a7 ,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 agreement1 bond resolution1 or similar agreement securing project obligations under this ,act may be applied annually to prepay the direct loan1 without penalty4 7,b7 ,use of proceeds of refinancing ,a direct loan under this ,act may be prepaid at any time1 without penalty1 from the proceeds of refinancing from non-,federal funding sources4 7#e7 ,sale of direct loans 7,a7 ,in general ,as soon as is practicable after substantial completion of an infrastructure project assisted under this ,act1 and after notifying the obligor1 the chief executive officer may sell to another entity1 or reoffer into the capital markets1 a direct loan for the infrastructure project1 if the chief executive officer determines that the sale or reoffering can be made on favorable terms for the ,government4 7,b7 ,consent of obligor ,in making a sale or reoffering under subparagraph 7,a71 the chief executive officer may not change the original terms and conditions of the direct loan1 without the written consent of the obligor4 7j7 ,loan guarantees 7#a7 ,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 loan1 except that the rate on the guaranteed loan and any payment1 pre-payment1 or refinancing features shall be negotiated between the obligor and the lender1 with the consent of the chief executive officer4 7#b7 ,guaranteed lender ,a guaranteed lender shall be limited to those lenders meeting the definition of that term in section #fja7;a7 of title #bc1 ,united ,states ,code4 7k7 ,compliance with ,,fcra2 in general ,direct loans and loan guarantees authorized by this ,act shall be subject to the provisions of the ,federal ,credit ,reform ,act of #aiij 7#b ,u4,s4,c4 #ffa et seq474 #bee4 ,compliance and enforcement 7a7 ,credit agreement ,notwithstanding any other provision of law1 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 ,,aifa1 in addition to all other provisions of the loan agreement4 7b7 ,,aifa authority on noncompliance ,in any case in which a recipient of assistance under this ,act is materially out of compliance with the loan agreement1 or any applicable policy or procedure of ,,aifa1 the ,board of ,directors may take action to cancel unutilized loan amounts1 or to accelerate the repayment terms of any outstanding obligation4 7c7 ,construction ,nothing in this ,act is intended to affect existing provisions of law applicable to the planning1 development1 construction1 or operation of projects funded under the ,act4 #bef4 ,audits2 reports to the ,president and ,congress 7a7 ,accounting ,the books of account of ,,aifa shall be maintained in accordance with generally accepted accounting principles1 and shall be subject to an annual audit by independent public accountants of nationally recognized standing appointed by the ,board of ,directors4 7b7 ,reports 7#a7 ,board of directors ,not later than #ij days after the last day of each fiscal year1 the ,board of ,directors shall submit to the ,president and ,congress a complete and detailed report with respect to the preceding fiscal year1 setting forth-- 7,a7 a summary of the operations of ,,aifa1 for such fiscal year2 7,b7 a schedule of the obligations of ,,aifa and capital securities outstanding at the end of such fiscal year1 with a statement of the amounts issued and redeemed or paid during such fiscal year2 7,c7 the status of infrastructure projects receiving funding or other assistance pursuant to this ,act during such fiscal year1 including all nonperforming loans1 and including disclosure of all entities with a development1 ownership1 or operational interest in such infrastructure projects2 7,d7 a description of the successes and challenges encountered in lending to rural communities1 including the role of the ,center for ,excellence and the ,office of ,rural ,assistance established under this ,act2 and 7,e7 an assessment of the risks of the portfolio of ,,aifa1 prepared by an independent source4 7#b7 ,,gao ,not later than #e years after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall conduct an evaluation of1 and shall submit to ,congress a report on1 activities of ,,aifa for the fiscal years covered by the report that includes an assessment of the impact and benefits of each funded infrastructure project1 including a review of how effectively each such infrastructure project accomplished the goals prioritized by the infrastructure project criteria of ,,aifa4 7c7 ,books and records 7#a7 ,in general ,,aifa shall maintain adequate books and records to support the financial transactions of ,,aifa1 with a description of financial transactions and infrastructure projects receiving funding1 and the amount of funding for each such project maintained on a publically accessible database4 7#b7 ,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 ,treasury1 the ,special ,inspector ,general1 and the ,comptroller ,general of the ,united ,states4 ,,iii ,funding of ,,aifa #beg4 ,administrative fees 7a7 ,in general ,in addition to fees that may be collected under section #bed7;e71 the chief executive officer shall establish and collect fees from eligible funding recipients with respect to loans and loan guarantees under this ,act that-- 7#a7 are sufficient to cover all or a portion of the administrative costs to the ,federal ,government for the operations of ,,aifa1 including the costs of expert firms1 including counsel in the field of municipal and project finance1 and financial advisors to assist with underwriting1 credit analysis1 or other independent reviews1 as appropriate2 7#b7 may be in the form of an application or transaction fee1 or other form established by the chief executive officer2 and 7#c7 may be based on the risk premium associated with the loan or loan guarantee1 taking into consideration-- 7,a7 the price of ,united ,states ,treasury obligations of a similar maturity2 7,b7 prevailing market conditions2 7,c7 the ability of the infrastructure project to support the loan or loan guarantee2 and 7,d7 the total amount of the loan or loan guarantee4 7b7 ,availability of amounts ,amounts collected under subsections 7a77#a71 7a77#b77;a77#c7 shall be available without further action1 and the source of fees paid under this section shall not be a loan or debt obligation guaranteed by the ,federal ,government4 #beh4 ,efficiency of ,,aifa ,the chief executive officer shall1 to the extent possible1 take actions consistent with this ,act to minimize the risk and cost to the ,government of ,,aifa activities4 ,fees and premiums for loan guarantee or insurance coverage will be set at levels that minimize administrative and ,federal credit subsidy costs to the ,government1 as defined in section #ejb of the ,federal ,credit ,reform ,act of #aiij1 of such coverage1 while supporting achievement of the program's objectives1 consistent with policies as set forth in the business plan4 #bei4 ,funding 7a7 ,in general ,there is hereby appropriated to ,,aifa to carry out this ,act1 for the cost of direct loans and loan guarantees subject to the limitations under section #bec1 and for administrative costs1 #aj1jjj1jjj1jjj1 to remain available until expended4 7b7 ,costs defined ,such costs1 including the costs of modifying such loans1 shall be as defined in section #ejb of the ,federal ,credit ,reform ,act of #aiij4 7c7 ,administrative costs ,of the amounts appropriated under subsection 7a71 not more than #be1jjj1jjj for each of fiscal years #bjab through #bjac1 and not more than #ej1jjj1jjj for fiscal year #bjad may be used for administrative costs of ,,aifa4 7d7 ,offsets of subsidy costs ,not more than #e percent of such amount may be used to offset subsidy costs associated with rural projects4 ,,iv ,extension of exemption from alternative minimum tax treatment for certain tax-,exempt bonds #bfj4 ,extension of exemption from alternative minimum tax treatment for certain tax-exempt bonds 7a7 ,in general ,clause 7vi7 of section #eg7;a77#e77;,c7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking ,january #a1 #bjaa in subclause 7,i7 and inserting ,january #a1 #bjae2 and 7#b7 by striking in #bjji and #bjaj in the heading and inserting during the period #bjji through #bjad4 7b7 ,adjusted current earnings ,clause 7iv7 of section #ef7;g77#d77;,b7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking ,january #a1 #bjaa in subclause 7,i7 and inserting ,january #a1 #bjae2 and 7#b7 by striking in #bjji and #bjaj in the heading and inserting during the period #bjji through #bjad4 7c7 ,effective date ,the amendments made by this section shall apply to obligations issued after ,december #ca1 #bjaj4 ,f ,project rebuild #bfa4 ,project rebuild 7a7 ,direct appropriations ,there is appropriated1 out of any money in the ,treasury not otherwise appropriated1 #ae1jjj1jjj1jjj1 to remain available until ,september #cj1 #bjaf1 for assistance to eligible entities including ,states and units of general local government 7as such terms are defined in section #ajb of the ,housing and ,community ,development ,act of #aigd 7#db ,u4,s4,c4 #ecjb771 and qualified nonprofit organizations1 businesses or consortia of eligible entities for the redevelopment of abandoned and foreclosed-upon properties and for the stabilization of affected neighborhoods4 7b7 ,allocation of appropriated amounts 7#a7 ,in general ,of the amounts appropriated1 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 7in this subtitle referred to as the ,secretary74 ,of the amounts appropriated1 one third shall be distributed competitively to eligible entities4 7#b7 ,formula to be devised swiftly ,the funding formula required under paragraph 7#a7 shall be established and the ,secretary shall announce formula funding allocations1 not later than #cj days after the date of enactment of this section4 7#c7 ,formula criteria ,the ,secretary may establish a minimum grant size1 and the funding formula required under paragraph 7#a7 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 need1 as such need is determined in the discretion of the ,secretary based on-- 7,a7 the number and percentage of home foreclosures in each ,state or unit of general local government2 7,b7 the number and percentage of homes in default or delinquency in each ,state or unit of general local government2 and 7,c7 other factors such as established program designs1 grantee capacity and performance1 number and percentage of commercial foreclosures1 overall economic conditions1 and other market needs data1 as determined by the ,secretary4 7#d7 ,competition criteria 7,a7 ,for the funds distributed competitively1 eligible entities shall be ,states1 units of general local government1 nonprofit entities1 for-profit entities1 and consortia of eligible entities that demonstrate capacity to use funding within the period of this program4 7,b7 ,in selecting grantees1 the ,secretary shall ensure that grantees are in areas with the greatest number and percentage of residential and commercial foreclosures and other market needs data1 as determined by the ,secretary4 ,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 stabilization1 leverage1 knowledge of market conditions and of effective stabilization activities to address identified conditions1 and any additional factors determined by the ,secretary4 7,c7 ,the ,secretary may establish a minimum grant size4 7,d7 ,the ,secretary shall publish competition criteria for any grants awarded under this heading not later than #fj days after appropriation of funds1 and applications shall be due to the ,secretary within #abj days4 7c7 ,use of funds 7#a7 ,obligation and expenditure ,the ,secretary shall obligate all funding within #aej days of enactment of this ,act4 ,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 obligation4 ,furthermore1 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 obligation4 7#b7 ,priorities 7,a7 ,job creation ,each grantee or eligible entity shall describe how its proposed use of funds will prioritize job creation1 and secondly1 will address goals to stabilize neighborhoods1 reverse vacancy1 or increase or stabilize residential and commercial property values4 7,b7 ,targeting ,any ,state or unit of general local government that receives formula amounts pursuant to this section shall1 in distributing and targeting such amounts give priority emphasis and consideration to those metropolitan areas1 metropolitan cities1 urban areas1 rural areas1 low- and moderate-income areas1 and other areas with the greatest need1 including those-- 7i7 with the greatest percentage of home foreclosures2 7ii7 identified as likely to face a significant rise in the rate of residential or commercial foreclosures2 and 7iii7 with higher than national average unemployment rate4 7,c7 ,leverage ,each grantee or eligible entity shall describe how its proposed use of funds will leverage private funds4 7#c7 ,eligible uses ,amounts made available under this section may be used to-- 7,a7 establish financing mechanisms for the purchase and redevelopment of abandoned and foreclosed-upon properties1 including such mechanisms as soft-seconds1 loan loss reserves1 and shared-equity loans for low- and moderate-income homebuyers2 7,b7 purchase and rehabilitate properties that have been abandoned or foreclosed upon1 in order to sell1 rent1 or redevelop such properties2 7,c7 establish and operate land banks for properties that have been abandoned or foreclosed upon2 7,d7 demolish blighted structures2 7,e7 redevelop abandoned1 foreclosed1 demolished1 or vacant properties2 and 7,f7 engage in other activities1 as determined by the ,secretary through notice1 that are consistent with the goals of creating jobs1 stabilizing neighborhoods1 reversing vacancy reduction1 and increasing or stabilizing residential and commercial property values4 7d7 ,limitations 7#a7 ,on purchases ,any purchase of a property under this section shall be at a price not to exceed its current market value1 taking into account its current condition4 7#b7 ,rehabilitation ,any rehabilitation of an eligible property under this section shall be to the extent necessary to comply with applicable laws1 and other requirements relating to safety1 quality1 marketability1 and habitability1 in order to sell1 rent1 or redevelop such properties or provide a renewable energy source or sources for such properties4 7#c7 ,sale of homes ,if an abandoned or foreclosed-upon home is purchased1 redeveloped1 or otherwise sold to an individual as a primary residence1 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 decent1 safe1 marketable1 and habitable condition4 7#d7 ,on demolition of public housing ,public housing1 as defined at section #c7;b77#f7 of the ,united ,states ,housing ,act of #aicg1 may not be demolished with funds under this section4 7#e7 ,on demolition activities ,no more than #aj 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 conditions4 7#f7 ,on use of funds for non-residential property ,no more than #cj percent of any grant made under this section may be used for eligible activities under subparagraphs 7,a71 7,b71 and 7,e7 of subsection 7c77#c7 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 conditions4 7e7 ,rules of construction 7#a7 ,in general ,except as otherwise provided by this section1 amounts appropriated1 revenues generated1 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 #aigd 7#db ,u4,s4,c4 #ecja et seq474 7#b7 ,no match ,no matching funds shall be required in order for an eligible entity to receive any amounts under this section4 7#c7 ,tenant protections ,an eligible entity receiving a grant under this section shall comply with the #adth1 #agth1 #ahth1 #aith1 #bjth1 #bast1 #bbnd1 and #bcrd provisos under the heading ,department of ,housing and ,urban ,development--,community ,planning and ,development--,community ,development ,fund in title ,,xii of division ,a of the ,american ,recovery and ,reinvestment ,act of #bjji;,american ,recovery and ,reinvestment ,act of #bjji 7,public ,law #aaa-e1 #abc ,stat4 #bah-ai71 as amended by section #adig7;b77#b7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7,public ,law #aaa-bjc1 #abd ,stat4 #bbaa74 7#d7 ,vicinity hiring ,an eligible entity receiving a grant under this section shall comply with section #adig7;a77#h7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7,public ,law #aaa-bjc1 #abi ,stat4 #bbaj74 7f7 ,authority ,to specify alternative requirements 7#a7 ,in general ,in administering the program under this section1 the ,secretary may specify alternative requirements to any provision under title ,i of the ,housing and ,community ,development ,act of #aigd or under title ,i of the ,cranston-,gonzalez ,national ,affordable ,housing ,act of #aiij 7except for those provisions in these laws related to fair housing1 nondiscrimination1 labor standards1 and the environment7 for the purpose of expediting and facilitating the use of funds under this section4 7#b7 ,notice ,the ,secretary shall provide written notice of intent to the public via internet to exercise the authority to specify alternative requirements under paragraph4 7#c7 ,low and moderate income requirement 7,a7 ,in general ,notwithstanding the authority of the ,secretary under paragraph 7#a7-- 7i7 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 #abj percent of area median income2 and 7ii7 not less than #be 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 #ej percent of area median income4 7,b7 ,recurrent requirement ,the ,secretary shall1 by rule or order1 ensure1 to the maximum extent practicable and for the longest feasible term1 that the sale1 rental1 or redevelopment of abandoned and foreclosed-upon homes and residential properties under this section remain affordable to individuals or families described in subparagraph 7,a74 7g7 ,nationwide distribution of resources ,notwithstanding any other provision of this section or the amendments made by this section1 each ,state shall receive not less than #bj1jjj1jjj of formula funds4 7h7 ,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 domain1 unless eminent domain is employed only for a public use1 which shall not be construed to include economic development that primarily benefits private entities4 7i7 ,limitation on distribution of funds 7#a7 ,in general ,none of the funds made available under this section shall be distributed to-- 7,a7 an organization which has been indicted for a violation under ,federal law relating to an election for ,federal office2 or 7,b7 an organization which employs applicable individuals4 7#b7 ,applicable individuals defined ,in this section1 the term applicable individual means an individual who-- 7,a7 is-- 7i7 employed by the organization in a permanent or temporary capacity2 7ii7 contracted or retained by the organization2 or 7iii7 acting on behalf of1 or with the express or apparent authority of1 the organization2 and 7,b7 has been indicted for a violation under ,federal law relating to an election for ,federal office4 7j7 ,rental housing preferences ,each ,state and local government receiving formula amounts shall establish procedures to create preferences for the development of affordable rental housing4 7k7 ,job creation ,if a grantee chooses to use funds to create jobs by establishing and operating a program to maintain eligible neighborhood properties1 not more than #aj percent of any grant may be used for that purpose4 7l7 ,program support and capacity building ,the ,secretary may use up to #j4ge percent of the funds appropriated for capacity building of and support for eligible entities and grantees undertaking neighborhood stabilization programs1 staffing1 training1 technical assistance1 technology1 monitoring1 travel1 enforcement1 research1 and evaluation activities1 subject to the following requirements3 7#a7 ,funds set aside for the purposes of this subparagraph shall remain available until ,september #cj1 #bjah4 7#b7 ,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 ,benefits1 ,community ,planning and ,development4 7#c7 ,any funds made available under this subparagraph and used by the ,secretary for training or other administrative expenses shall be transferred to ,administration1 ,operations1 and ,management1 ,community ,planning and ,development for non-personnel expenses4 7#d7 ,any funds made available under this subparagraph and used by the ,secretary for technology shall be transferred to ,working ,capital ,fund4 7m7 ,enforcement and prevention of fraud and abuse ,the ,secretary shall establish and implement procedures to prevent fraud and abuse of funds under this section1 and shall impose a requirement that grantees have an internal auditor to continuously monitor grantee performance to prevent fraud1 waste1 and abuse4 ,grantees shall provide the ,secretary and citizens with quarterly progress reports4 ,the ,secretary shall recapture funds from formula and competitive grantees that do not expend #ajj percent of allocated funds within #c years of the date that funds become available1 and from underperforming or mismanaged grantees1 and shall re-allocate those funds by formula to target areas with the greatest need1 as determined by the ,secretary through notice4 ,the ,secretary may take an alternative sanctions action only upon determining that such action is necessary to achieve program goals in a timely manner4 7n7 ,conformance of policies and procedures ,the ,secretary of ,housing and ,urban ,development shall to the extent feasible conform policies and procedures for grants made under this section to the policies and practices already in place for the grants made under section #bcja of the ,housing and ,economic ,recovery ,act of #bjjh 7#db ,u4,s4,c4 #ecja note72 title ,,xii of division ,a of the ,american ,recovery and ,reinvestment ,act of #bjji 7,public ,law #aaa-e2 #abc ,stat4 #bjc72 or section #adig of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#db ,u4,s4,c4 #ecja note74 ,,iii ,assistance for the unemployed and pathways back to work ,a ,supporting unemployed workers #cja4 ,short title ,this subtitle may be cited as the ,supporting ,unemployed ,workers ,act of #bjac4 ,i ,extension of emergency unemployment compensation and certain extended benefits provisions1 and establishment of self-,employment assistance program #caa4 ,extension of emergency unemployment compensation program 7a7 ,in general ,section #djjg of the ,supplemental ,appropriations ,act1 #bjjh 7,public ,law #aaj-beb2 #bf ,u4,s4,c4 #ccjd note7 is amended by striking ,january #a1 #bjad and inserting ,january #a1 #bjaf4 7b7 ,funding ,section #djjd7;e77#a7 of the ,supplemental ,appropriations ,act1 #bjjh 7,public ,law #aaj-beb2 #bf ,u4,s4,c4 #ccjd note7 is amended-- 7#a7 in subparagraph 7,i71 by striking and at the end2 7#b7 in subparagraph 7,j71 by inserting and at the end2 and 7#c7 by inserting after subparagraph 7,j7 the following3 7,k7 the amendments made by section #caa7;a7 of the ,supporting ,unemployed ,workers ,act of #bjac2 and 4 7c7 ,effective date ,the amendments made by this section shall take effect as if included in the enactment of the ,tax ,relief1 ,unemployment ,insurance ,reauthorization1 and ,job ,creation ,act of #bjaj 7,public ,law #aaa-cab2 #bf ,u4,s4,c4 #ccjd note74 #cab4 ,temporary extension of extended benefit provisions 7a7 ,in general ,section #bjje of the ,assistance for ,unemployed ,workers and ,struggling ,families ,act1 as contained in ,public ,law #aaa-e 7#bf ,u4,s4,c4 #ccjd note71 is amended-- 7#a7 by striking ,december #ca1 #bjac each place it appears and inserting ,december #ca1 #bjae2 and 7#b7 in subsection 7c71 by striking ,june #cj1 #bjad and inserting ,june #cj1 #bjaf4 7b7 ,extension of matching for states with no waiting week ,section #e of the ,unemployment ,compensation ,extension ,act of #bjjh 7,public ,law #aaj-ddi2 #bf ,u4,s4,c4 #ccjd note7 is amended by striking ,june #cj1 #bjad and inserting ,june #cj1 #bjaf4 7c7 ,extension of modification of indicators under the extended benefit program ,section #bjc of the ,federal-,state ,extended ,unemployment ,compensation ,act of #aigj 7#bf ,u4,s4,c4 #ccjd note7 is amended-- 7#a7 in subsection 7d71 by striking ,december #ca1 #bjac and inserting ,december #ca1 #bjae2 and 7#b7 in subsection 7f77#b71 by striking ,december #ca1 #bjac and inserting ,december #ca1 #bjae4 7d7 ,effective date ,the amendments made by this section shall take effect as if included in the enactment of the ,tax ,relief1 ,unemployment ,insurance ,reauthorization1 and ,job ,creation ,act of #bjaj 7,public ,law #aaa-cab2 #bf ,u4,s4,c4 #ccjd note74 #cac4 ,additional extended unemployment benefits under the ,railroad ,unemployment ,insurance ,act 7a7 ,extension ,section #b7;c77#b77;,d77iii7 of the ,railroad ,unemployment ,insurance ,act 7#de ,u4,s4,c4 #ceb7;c77#b77;,d77iii77 is amended-- 7#a7 by striking ,june #cj1 #bjac and inserting ,june #cj1 #bjae2 and 7#b7 by striking ,december #ca1 #bjac and inserting ,december #ca1 #bjae4 7b7 ,clarification on authority ,to use funds ,funds appropriated under either the first or second sentence of clause 7iv7 of section #b7;c77#b77;,d7 of the ,railroad ,unemployment ,insurance ,act 7#de ,u4,s4,c4 #ceb7;c77#b77;,d77 shall be available to cover the cost of additional extended unemployment benefits provided under such section #b7;c77#b77;,d7 by reason of the amendments made by subsection 7a7 as well as to cover the cost of such benefits provided under such section #b7;c77#b77;,d71 as in effect on the day before the date of the enactment of this ,act4 ,,ii ,reemployment ,,now program #cba4 ,establishment of reemployment ,,now program 7a7 ,in general ,there is 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 ,act1 #bjjh 7,public ,law #aaj-beb2 #bf ,u4,s4,c4 #ccjd note7 7hereafter in this part referred to as ,,euc claimants74 7b7 ,authorization and appropriation ,there are authorized to be appropriated #d1jjj1jjj1jjj for fiscal year #bjad to carry out the ,reemployment ,,now program under this part4 #cbb4 ,distribution of funds 7a7 ,in general ,of the amount made available under section #cba7;b7 to carry out this part1 the ,secretary of ,labor shall-- 7#a7 reserve up to #a percent for the costs of ,federal administration and for carrying out rigorous evaluations of the activities conducted under this part2 and 7#b7 allot the remainder of the funds not reserved under paragraph 7#a7 in accordance with the requirements of subsection 7b7 and 7c7 to ,states that have approved plans under section #cbc4 7b7 ,allotment formula 7#a7 ,formula factors ,the ,secretary of ,labor shall allot the funds available under subsection 7a77#b7 as follows-- 7,a7 two-thirds of such funds shall be allotted on the basis of the relative number of unemployed individuals in each ,state1 compared to the total number of unemployed individuals in all ,states2 and 7,b7 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 #bg weeks or more1 compared to the total number of individuals in all ,states who have been unemployed for #bg weeks or more4 7#b7 ,calculation ,for purposes of paragraph 7#a71 the number of unemployed individuals and the number of individuals unemployed for #bg weeks or more shall be based on the data for the most recent #ab-month period1 as determined by the ,secretary4 7c7 ,reallotment 7#a7 ,failure to submit state plan ,if a ,state does not submit a ,state plan by the time specified in section #cbc7;b71 or a ,state does not receive approval of a ,state plan1 the amount the ,state would have been eligible to receive pursuant to the formula under subsection 7b7 shall be allotted to ,states that receive approval of the ,state plan under section #cbc in accordance with the relative allotments of such ,states as determined by the ,secretary under subsection 7b74 7#b7 ,failure to implement activities on a timely basis ,the ,secretary of ,labor may1 in accordance with procedures and criteria established by the ,secretary1 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 part4 ,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 7b74 7#c7 ,recapture of funds ,funds recaptured under paragraph 7#b7 shall be available for reobligation not later than ,december #ca1 #bjae4 #cbc4 ,state plan 7a7 ,in general ,for a ,state to be eligible to receive an allotment under section #cbb1 a ,state shall submit to the ,secretary of ,labor a ,state plan in such form and containing such information as the ,secretary may require1 which at a minimum shall include-- 7#a7 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 part1 including which of the activities authorized in sections #cbd-cbh the ,state intends to carry out and an estimate of the amounts the ,state intends to allocate to the activities1 respectively2 7#b7 a description of the performance outcomes to be achieved by the ,state through the activities carried out under this part1 including the employment outcomes to be achieved by participants and the processes the ,state will use to track performance1 consistent with guidance provided by the ,secretary of ,labor regarding such outcomes and processes2 7#c7 a description of coordination of activities to be carried out under this part with activities under title ,i of the ,workforce ,investment ,act of #aiih1 the ,wagner-,peyser ,act1 and other appropriate ,federal programs2 7#d7 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 quarter2 7#e7 assurances that the ,state will participate in the evaluation activities carried out by the ,secretary of ,labor under this section2 7#f7 assurances that the ,state will provide appropriate reemployment services1 including counseling1 to any ,,euc claimant who participates in any of the programs authorized under this part2 and 7#g7 assurances that the ,state will report such information as the ,secretary may require relating to fiscal1 performance and other matters1 including employment outcomes and effects1 which the ,secretary determines are necessary to effectively monitor the activities carried out under this part4 7b7 ,plan submission and approval ,a ,state plan under this section shall be submitted to the ,secretary of ,labor for approval not later than #cj days after the ,secretary issues guidance relating to submission of such plan4 ,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 part4 7c7 ,plan modifications ,a ,state may submit modifications to a ,state plan that has been approved under this part1 and the ,secretary of ,labor may approve such modifications1 if the plan as modified would meet the requirements of this part and are appropriate and adequate to carry out the purposes of this part4 #cbd4 ,bridge to work program 7a7 ,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 section4 7b7 ,description of program ,in order to increase individuals' opportunities to move to permanent employment1 a ,state may establish a ,bridge to ,work program to provide an ,,euc claimant with short-term work experience placements with an eligible employer1 during which time such individual-- 7#a7 shall be paid emergency unemployment compensation payable under title ,,iv of the ,supplemental ,appropriations ,act1 #bjjh 7,public ,law #aaj-beb2 #bf ,u4,s4,c4 #ccjd note71 as wages for work performed1 and as specified in subsection 7c72 7#b7 shall be paid the additional amount described in subsection 7e7 as augmented wages for work performed2 and 7#c7 may be paid compensation in addition to the amounts described in paragraphs 7#a7 and 7#b7 by a ,state or by a participating employer as wages for work performed4 7c7 ,program eligibility and other requirements ,for purposes of this program-- 7#a7 individuals who1 except for the requirements described in paragraph 7#c71 are eligible to receive emergency unemployment compensation payments under title ,,iv of the ,supplemental ,appropriations ,act1 #bjjh 7,public ,law #aaj-beb2 #bf ,u4,s4,c4 #ccjd note71 and who choose to participate in the program described in subsection 7b71 shall receive such payments as wages for work performed during their voluntary participation in the program described under subsection 7b72 7#b7 the wages payable to individuals described in paragraph 7#a7 shall be paid from the emergency unemployment compensation account for such individual as described in section #djjb of the ,supplemental ,appropriations ,act1 #bjjh 7,public ,law #aaj-beb2 #bf ,u4,s4,c4 #ccjd note71 and the amount in such individual's account shall be reduced accordingly2 7#c7 the wages payable to an individual described in paragraph 7#a7 shall be payable in the same amount1 at the same interval1 on the same terms1 and subject to the same conditions under title ,,iv of the ,supplemental ,appropriations ,act1 #bjjh 7,public ,law #aaj-beb2 #bf ,u4,s4,c4 #ccjd note71 except that-- 7,a7 ,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 #be hours per week in the program described in subsection 7b7 for the duration of such individual's participation in the program2 7,b7 ,state requirements applied under such ,act relating to disqualifying income regarding wages earned shall not apply to such individuals who participate for at least #be hours per week in the program described in subsection 7b71 and shall not apply with respect to-- 7i7 the wages described under subsection 7b72 and 7ii7 any wages1 in addition to those described under subsection 7b71 whether paid by a ,state or a participating employer for the same work activities2 7,c7 ,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 7b72 and 7,d7 ,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 7b7 in a work experience provided by such employer1 where such long-term employment is expected to commence or commences at the conclusion of the duration specified in paragraph 7#d77;,a72 7#d7 the program shall be structured so that individuals described in paragraph 7#a7 may participate in the program for up to-- 7,a7 #h weeks1 and 7,b7 #ch hours for each such week2 7#e7 a ,state shall ensure that all individuals participating in the program are covered by a workers' compensation insurance program2 and 7#f7 the program meets such other requirements as the ,secretary of ,labor determines to be appropriate in guidance issued by the ,secretary4 7d7 ,state requirements 7#a7 ,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 ,labor1 except that an employer shall not be certified as eligible for participation in the program described under subsection 7b7-- 7,a7 if such employer-- 7i7 is a ,federal1 ,state1 or local government entity2 7ii7 would engage an eligible individual in work activities under any employer's grant1 contract1 or subcontract with a ,federal1 ,state1 or local government entity1 except with regard to work activities under any employer's supply contract or subcontract2 7iii7 is delinquent with respect to any taxes or employer contributions described under sections #ccja and #ccjb7;a77#a7 of the ,internal ,revenue ,code of #aihf or with respect to any related reporting requirements2 7iv7 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 employers2 or 7v7 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 7h71 7i71 or 7j71 or by any other requirements that the ,secretary may establish for employers under subsection 7c77#f72 and 7,b7 unless such employer provides assurances that it has not displaced existing workers pursuant to the requirements of subsection 7h74 7#b7 ,authorized activities ,funds allotted to a ,state under this part for the program-- 7,a7 shall be used to-- 7i7 recruit employers for participation in the program2 7ii7 review and certify employers identified by eligible individuals seeking to participate in the program2 7iii7 ensure that reemployment and counseling services are available for program participants1 including services describing the program under subsection 7b71 prior to an individual's participation in such program2 7iv7 establish and implement processes to monitor the progress and performance of individual participants for the duration of the program2 7v7 prevent misuse of the program2 and 7vi7 pay augmented wages to eligible individuals1 if necessary1 as described in subsection 7e72 and 7,b7 may be used-- 7i7 to pay workers' compensation insurance premiums to cover all individuals participating in the program1 except that1 if a ,state opts not to make such payments directly to a ,state administered workers' compensation program1 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 program2 7ii7 to pay compensation to a participating individual that is in addition to the amounts described in subsections 7c77#a7 and 7e7 as wages for work performed2 7iii7 to provide supportive services1 such as transportation1 child care1 and dependent care1 that would enable individuals to participate in the program2 7iv7 for the administration and oversight of the program2 and 7v7 to fulfill additional program requirements included in the approved ,state plan4 7e7 ,payment of augmented wages if necessary ,in the event that the wages described in subsection 7c77#a7 are not sufficient to equal or exceed the minimum wages that are required to be paid by an employer under section #f7;a77#a7 of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bjf7;a77#a77 or the applicable ,state or local minimum wage law1 whichever is higher1 a ,state shall pay augmented wages to a program participant in any amount necessary to cover the difference between-- 7#a7 such minimum wages amount2 and 7#b7 the wages payable under subsection 7c77#a74 7f7 ,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 need4 7g7 ,effect of wages1 work activities1 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 7c77#a71 and any work activities performed by such individual as a participant in the program1 shall not be construed so as to render such individual ineligible to receive emergency unemployment compensation under title ,,iv of the ,supplemental ,appropriations ,act1 #bjjh 7,public ,law #aaj-beb2 #bf ,u4,s4,c4 #ccjd note74 7h7 ,nondisplacement of employees 7#a7 ,prohibition ,an employer shall not use a program participant to displace 7including a partial displacement1 such as a reduction in the hours of non-overtime work1 wages1 or employment benefits7 any current employee 7as of the date of the participation74 7#b7 ,other prohibitions ,an employer shall not permit a program participant to perform work activities related to any job for which-- 7,a7 any other individual is on layoff from the same or any substantially equivalent position2 7,b7 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 participant2 7,c7 there is a strike or lock out at the worksite that is the participant's place of employment2 or 7,d7 the job is created in a manner that will infringe in any way upon the promotional opportunities of currently employed individuals 7as of the date of the participation74 7i7 ,prohibition on impairment of contracts ,an employer shall not1 by means of assigning work activities under this section1 impair an existing contract for services or a collective bargaining agreement1 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 agreement4 7j7 ,limitation on employer participation ,if1 after #bd weeks of participation in the program1 an employer has not made an offer of suitable long-term employment to any individual described under subsection 7c77#a7 who was placed with such employer and has completed the program1 a ,state shall bar such employer from further participation in the program4 ,states may impose additional conditions on participating employers to ensure that an appropriate number of participants receive offers of suitable long-term employment4 7k7 ,failure ,to meet program requirements ,if a ,state makes a determination based on information provided to the ,state1 or acquired by the ,state by means of its administration and oversight functions1 that a participating employer under this section has violated a requirement of this section1 the ,state shall bar such employer from further participation in the program4 ,the ,state shall establish a process whereby an individual described in subsection 7c77#a71 or any other affected individual or entity1 may file a complaint with the ,state relating to a violation of any requirement or prohibition under this section4 7l7 ,participant option ,to terminate participation in bridge to work program 7#a7 ,termination ,an individual who is participating in a program described in subsection 7b7 may opt to discontinue participation in such program4 7#b7 ,continued eligibility for emergency unemployment compensation ,an individual who opts to discontinue participation in such program1 is terminated from such program by a participating employer1 or who has completed participation in such program1 and who continues to meet the eligibility requirements for emergency unemployment compensation under title ,,iv of the ,supplemental ,appropriations ,act1 #bjjh 7,public ,law #aaj-beb2 #bf ,u4,s4,c4 #ccjd note71 shall receive emergency unemployment compensation payments with respect to subsequent weeks of unemployment1 to the extent that amounts remain in the account established for such individual under section #djjb7;b7 of such ,act or to the extent that such individual commences receiving the amounts described in subsections 7c71 7d71 or 7e7 of such section1 respectively4 7m7 ,effect of other laws ,unless otherwise provided in this section1 nothing in this section shall be construed to alter or affect the rights or obligations under any ,federal1 ,state1 or local laws with respect to any individual described in subsection 7c77#a7 and with respect to any participating employer under this section4 7n7 ,treatment of payments ,all wages or other payments to an individual under this section shall be treated as payments of unemployment compensation for purposes of section #bji of the ,social ,security ,act 7#db ,u4,s4,c4 #dji7 and for purposes of subtitle ,a and sections #caja1 #caaa1 and #ccja of the ,internal ,revenue ,code of #aihf4 #cbe4 ,wage insurance 7a7 ,in general ,a ,state may use the funds allotted to the ,state under this part to provide a wage insurance program for ,,euc claimants4 7b7 ,benefits ,the wage insurance program provided under this section may use funds allotted to the ,state under this part to pay1 for a period not to exceed #b years1 to a worker described in subsection 7c71 up to #ej percent of the difference between-- 7#a7 the wages received by the worker at the time of separation2 and 7#b7 the wages received by the worker for reemployment4 7c7 ,individual eligibility ,the benefits described in subsection 7b7 may be paid to an individual who is an ,,euc claimant at the time such individual obtains reemployment and who-- 7#a7 is at least #ej years of age2 7#b7 earns not more than #ej1jjj per year in wages from reemployment2 7#c7 is employed on a full-time basis as defined by the law of the ,state2 and 7#d7 is not employed by the employer from which the individual was last separated4 7d7 ,total amount of payments ,a ,state shall establish a maximum amount of payments per individual for purposes of payments described in subsection 7b7 during the eligibility period described in such subsection4 7e7 ,non-,discrimination regarding wages ,an employer shall not pay a worker described in subsection 7c7 less than such employer pays to a regular worker in the same or substantially equivalent position4 #cbf4 ,enhanced reemployment strategies 7a7 ,in general ,a ,state may use funds allotted under this part to provide a program of enhanced reemployment services to ,,euc claimants4 ,in addition to the provision of services to such claimants1 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 ,act1 #bjjh1 7,public ,law #aaj-beb2 #bf ,u4,s4,c4 #ccjd note74 ,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 part4 7b7 ,types of services ,the enhanced reemployment services described in subsection 7a7 may include services such as-- 7#a7 assessments1 counseling1 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 7a72 7#b7 comprehensive assessments designed to identify alternative career paths2 7#c7 case management2 7#d7 reemployment services that are provided more frequently and more intensively than such reemployment services have previously been provided by the ,state2 and 7#e7 services that are designed to enhance communication skills1 interviewing skills1 and other skills that would assist in obtaining reemployment4 #cbg4 ,self-employment programs ,a ,state may use funds allotted to the ,state under this part1 in an amount specified under an approved ,state plan1 for the administrative costs associated with starting up the self-employment assistance program described in section #djja7;i7 of the ,supplemental ,appropriations ,act1 #bjjh1 7,public ,law #aaj-beb2 #bf ,u4,s4,c4 #ccjd note74 #cbh4 ,additional innovative programs 7a7 ,in general ,a ,state may use funds allotted under this part to provide a program for innovative activities1 which use a strategy that is different from the reemployment strategies described in sections #cbd-cbg and which are designed to facilitate the reemployment of ,,euc claimants4 ,in addition to the provision of activities to such claimants1 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 ,act1 #bjjh1 7,public ,law #aaj-beb2 #bf ,u4,s4,c4 #ccjd note74 7b7 ,conditions ,the innovative activities approved in accordance with subsection 7a7-- 7#a7 shall directly benefit ,,euc claimants and1 if applicable1 individuals described in subsection 7a71 either as a benefit paid to such claimant or individual or as a service provided to such claimant or individual2 7#b7 shall not result in a reduction in the duration or amount of1 emergency unemployment compensation for which ,,euc claimants would otherwise be eligible2 7#c7 shall not include a reduction in the duration1 amount of or eligibility for regular compensation or extended benefits2 7#d7 shall not be used to displace 7including a partial displacement1 such as a reduction in the hours of non-overtime work1 wages1 or employment benefits7 any currently employed employee 7as of the date of the participation7 or allow a program participant to perform work activities related to any job for which-- 7,a7 any other individual is on layoff from the same or any substantially equivalent job2 7,b7 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 participant2 7,c7 there is a strike or lock out at the worksite that is the participant's place of employment2 or 7,d7 the job is created in a manner that will infringe in any way upon the promotional opportunities of currently employed individuals 7as of the date of the participation72 and 7#e7 shall not be in violation of any ,federal1 ,state1 or local law4 #cbi4 ,guidance and additional requirements ,the ,secretary of ,labor may establish through guidance1 without regard to the requirements of section #eec of title #e1 ,united ,states ,code1 such additional requirements1 including requirements regarding the allotment1 recapture1 and reallotment of funds1 and reporting requirements1 as the ,secretary determines to be necessary to ensure fiscal integrity1 effective monitoring1 and appropriate and prompt implementation of the activities under this ,act4 #ccj4 ,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 #cbi and the evaluations of activities carried out pursuant to the funds reserved under section #cbb7;a77#a74 #cca4 ,state ,for purposes of this part1 the term ,state has the meaning given that term in section #bje of the ,federal-,state ,extended ,unemployment ,compensation ,act of #aigj 7#bf ,u4,s4,c4 #ccjd note74 ,,iii ,short-,time compensation program #cda4 ,temporary financing of short-time compensation payments in states with programs in law 7a7 ,payments to states 7#a7 ,in general ,subject to paragraph 7#c71 there shall be paid to a ,state an amount equal to #ajj percent of the amount of short-time compensation paid under a short-time compensation program 7as defined in section #ccjf7v7 of the ,internal ,revenue ,code of #aihf7 under the provisions of the ,state law4 7#b7 ,terms of payments ,payments made to a ,state under paragraph 7#a7 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 month1 reduced or increased1 as the case may be1 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 ,state4 ,such estimates may be made on the basis of such statistical1 sampling1 or other method as may be agreed upon by the ,secretary and the ,state agency of the ,state involved4 7#c7 ,limitations on payments 7,a7 ,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 #bf times the amount of regular compensation 7including dependents' allowances7 under the ,state law payable to such individual for a week of total unemployment4 7,b7 ,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 seasonal1 temporary1 or intermittent basis4 7b7 ,applicability 7#a7 ,in general ,payments to a ,state under subsection 7a7 shall be available for weeks of unemployment-- 7,a7 beginning on or after the date of the enactment of this ,act2 and 7,b7 ending on or before the date that is #c years and #f months after the date of the enactment of this ,act4 7#b7 ,three-year funding limitation for combined payments under this section and section #cdc ,states may receive payments under this section and section #cdc with respect to a total of not more than #aef weeks4 7c7 ,two-,year transition period for existing programs ,during any period that the transition provision under section #cda7;a77#c7 is applicable to a ,state with respect to a short-time compensation program1 such ,state shall be eligible for payments under this section4 ,subject to paragraphs 7#a77;,b7 and 7#b7 of subsection 7b71 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 #ccjf7v7 of the ,internal ,revenue ,code of #aihf1 the ,state shall be eligible for payments under this section after the effective date of such enactment4 7d7 ,funding and certifications 7#a7 ,funding ,there are appropriated1 out of moneys in the ,treasury not otherwise appropriated1 such sums as may be necessary for purposes of carrying out this section4 7#b7 ,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 section4 7e7 ,definitions ,in this section3 7#a7 ,secretary ,the term ,secretary means the ,secretary of ,labor4 7#b7 ,state2 state agency2 state law ,the terms ,state1 ,state agency1 and ,state law have the meanings given those terms in section #bje of the ,federal-,state ,extended ,unemployment ,compensation ,act of #aigj 7#bf ,u4,s4,c4 #ccjd note74 #cdb4 ,temporary financing of short-time compensation agreements 7a7 ,federal-,state agreements 7#a7 ,in general ,any ,state which desires to do so may enter into1 and participate in1 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 7as defined in section #ccjf7v7 of the ,internal ,revenue ,code of #aihf74 7#b7 ,ability to terminate ,any ,state which is a party to an agreement under this section may1 upon providing #cj days' written notice to the ,secretary1 terminate such agreement4 7b7 ,provisions of ,federal-,state agreement 7#a7 ,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 ,state4 ,such plan shall provide that payments are made in accordance with the requirements under section #ccjf7v7 of the ,internal ,revenue ,code of #aihf4 7#b7 ,limitations on plans 7,a7 ,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 #bf times the amount of regular compensation 7including dependents' allowances7 under the ,state law payable to such individual for a week of total unemployment4 7,b7 ,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 seasonal1 temporary1 or intermittent basis4 7#c7 ,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 plan4 ,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 #ccjc7;a77#a7 of the ,internal ,revenue ,code of #aihf4 7c7 ,payments to ,states 7#a7 ,in general ,there shall be paid to each ,state with an agreement under this section an amount equal to-- 7,a7 one-half of the amount of short-time compensation paid to individuals by the ,state pursuant to such agreement2 and 7,b7 any additional administrative expenses incurred by the ,state by reason of such agreement 7as determined by the ,secretary74 7#b7 ,terms of payments ,payments made to a ,state under paragraph 7#a7 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 month1 reduced or increased1 as the case may be1 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 ,state4 ,such estimates may be made on the basis of such statistical1 sampling1 or other method as may be agreed upon by the ,secretary and the ,state agency of the ,state involved4 7#c7 ,funding ,there are appropriated1 out of moneys in the ,treasury not otherwise appropriated1 such sums as may be necessary for purposes of carrying out this section4 7#d7 ,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 section4 7d7 ,applicability 7#a7 ,in general ,an agreement entered into under this section shall apply to weeks of unemployment-- 7,a7 beginning on or after the date on which such agreement is entered into2 and 7,b7 ending on or before the date that is #b years and #ac weeks after the date of the enactment of this ,act4 7#b7 ,two-year funding limitation ,states may receive payments under this section with respect to a total of not more than #ajd weeks4 7e7 ,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 #ccjf7v7 of the ,internal ,revenue ,code of #aihf1 the ,state-- 7#a7 shall not be eligible for payments under this section for weeks of unemployment beginning after the effective date of such ,state law2 and 7#b7 subject to paragraphs 7#a77;,b7 and 7#b7 of section #cdb7;b71 shall be eligible to receive payments under section #cdb after the effective date of such ,state law4 7f7 ,definitions ,in this section3 7#a7 ,secretary ,the term ,secretary means the ,secretary of ,labor4 7#b7 ,state2 state agency2 state law ,the terms ,state1 ,state agency1 and ,state law have the meanings given those terms in section #bje of the ,federal-,state ,extended ,unemployment ,compensation ,act of #aigj 7#bf ,u4,s4,c4 #ccjd note74 #cdc4 ,grants for short-time compensation programs 7a7 ,grants 7#a7 ,for implementation or improved administration ,the ,secretary shall award grants to ,states that enact short-time compensation programs 7as defined in subsection 7i77#b77 for the purpose of implementation or improved administration of such programs4 7#b7 ,for promotion and enrollment ,the ,secretary shall award grants to ,states that are eligible and submit plans for a grant under paragraph 7#a7 for such ,states to promote and enroll employers in short-time compensation programs 7as so defined74 7#c7 ,eligibility 7,a7 ,in general ,the ,secretary shall determine eligibility criteria for the grants under paragraph 7#a7 and 7#b74 7,b7 ,clarification ,a ,state administering a short-time compensation program1 including a program being administered by a ,state that is participating in the transition under the provisions of sections #cda7;a77#c7 and #cdb7;c71 that does not meet the definition of a short-time compensation program under section #ccjf7v7 of the ,internal ,revenue ,code of #aihf1 and a ,state with an agreement under section #cdc1 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 law4 7b7 ,amount of grants 7#a7 ,in general ,the maximum amount available for making grants to a ,state under paragraphs 7#a7 and 7#b7 shall be equal to the amount obtained by multiplying #gjj1jjj1jjj 7less the amount used by the ,secretary under subsection 7e77 by the same ratio as would apply under subsection 7a77#b77;,b7 of section #ijc of the ,social ,security ,act 7#db ,u4,s4,c4 #aajc7 for purposes of determining such ,state's share of any excess amount 7as described in subsection 7a77#a7 of such section7 that would have been subject to transfer to ,state accounts1 as of ,october #a1 #bjac1 under the provisions of subsection 7a7 of such section4 7#b7 ,amount available for different grants ,of the maximum incentive payment determined under paragraph 7#a7 with respect to a ,state-- 7,a7 one-third shall be available for a grant under subsection 7a77#a72 and 7,b7 two-thirds shall be available for a grant under subsection 7a77#b74 7c7 ,grant application and disbursal 7#a7 ,application ,any ,state seeking a grant under paragraph 7#a7 or 7#b7 of subsection 7a7 shall submit an application to the ,secretary at such time1 in such manner1 and complete with such information as the ,secretary may require4 ,in no case may the ,secretary award a grant under this section with respect to an application that is submitted after ,december #ca1 #bjad4 7#b7 ,notice ,the ,secretary shall1 within #cj days after receiving a complete application1 notify the ,state agency of the ,state of the ,secretary's findings with respect to the requirements for a grant under paragraph 7#a7 or 7#b7 7or both7 of subsection 7a74 7#c7 ,certification ,if the ,secretary finds that the ,state law provisions meet the requirements for a grant under subsection 7a71 the ,secretary shall thereupon make a certification to that effect to the ,secretary of the ,treasury1 together with a certification as to the amount of the grant payment to be transferred to the ,state account in the ,unemployment ,trust ,fund 7as established in section #ijd7;a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #aajd7;a777 pursuant to that finding4 ,the ,secretary of the ,treasury shall make the appropriate transfer to the ,state account within #g days after receiving such certification4 7#d7 ,requirement ,no certification of compliance with the requirements for a grant under paragraph 7#a7 or 7#b7 of subsection 7a7 may be made with respect to any ,state whose-- 7,a7 ,state law is not otherwise eligible for certification under section #cjc of the ,social ,security ,act 7#db ,u4,s4,c4 #ejc7 or approvable under section #ccjd of the ,internal ,revenue ,code of #aihf2 or 7,b7 short-time compensation program is subject to discontinuation or is not scheduled to take effect within #ab months of the certification4 7d7 ,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 programs1 such as through-- 7#a7 the creation or support of rapid response teams to advise employers about alternatives to layoffs2 7#b7 the provision of education or assistance to employers to enable them to assess the feasibility of participating in short-time compensation programs2 and 7#c7 the development or enhancement of systems to automate-- 7,a7 the submission and approval of plans2 and 7,b7 the filing and approval of new and ongoing short-time compensation claims4 7e7 ,administration ,the ,secretary is authorized to use #j4be percent of the funds available under subsection 7g7 to provide for outreach and to share best practices with respect to this section and short-time compensation programs4 7f7 ,recoupment ,the ,secretary shall establish a process under which the ,secretary shall recoup the amount of any grant awarded under paragraph 7#a7 or 7#b7 of subsection 7a7 if the ,secretary determines that1 during the #e-year period beginning on the first date that any such grant is awarded to the ,state1 the ,state-- 7#a7 terminated the ,state's short-time compensation program2 or 7#b7 failed to meet appropriate requirements with respect to such program 7as established by the ,secretary74 7g7 ,funding ,there are appropriated1 out of moneys in the ,treasury not otherwise appropriated1 to the ,secretary1 #gjj1jjj1jjj to carry out this section1 to remain available without fiscal year limitation4 7h7 ,reporting ,the ,secretary may establish reporting requirements for ,states receiving a grant under this section in order to provide oversight of grant funds4 7i7 ,definitions ,in this section3 7#a7 ,secretary ,the term ,secretary means the ,secretary of ,labor4 7#b7 ,short-time compensation program ,the term short-time compensation program has the meaning given such term in section #ccjf7v7 of the ,internal ,revenue ,code of #aihf4 7#c7 ,state2 ,state agency2 ,state law ,the terms ,state1 ,state agency1 and ,state law have the meanings given those terms in section #bje of the ,federal-,state ,extended ,unemployment ,compensation ,act of #aigj 7#bf ,u4,s4,c4 #ccjd note74 #cdd4 ,assistance and guidance in implementing programs 7a7 ,in general ,in order to assist ,states in establishing1 qualifying1 and implementing short-time compensation programs 7as defined in section #ccjf7v7 of the ,internal ,revenue ,code of #aihf71 the ,secretary of ,labor 7in this section referred to as the ,secretary7 shall-- 7#a7 develop model legislative language which may be used by ,states in developing and enacting such programs and periodically review and revise such model legislative language2 7#b7 provide technical assistance and guidance in developing1 enacting1 and implementing such programs2 7#c7 establish reporting requirements for ,states1 including reporting on-- 7,a7 the number of estimated averted layoffs2 7,b7 the number of participating employers and workers2 and 7,c7 such other items as the ,secretary of ,labor determines are appropriate4 7b7 ,model language and guidance ,the model language and guidance developed under subsection 7a7 shall allow sufficient flexibility by ,states and participating employers while ensuring accountability and program integrity4 7c7 ,consultation ,in developing the model legislative language and guidance under subsection 7a71 and in order to meet the requirements of subsection 7b71 the ,secretary shall consult with employers1 labor organizations1 ,state workforce agencies1 and other program experts4 #cde4 ,reports 7a7 ,reports 7#a7 ,in general ,not later than #d years after the date of the enactment of this ,act1 the ,secretary of ,labor shall submit to ,congress and to the ,president a report or reports on the implementation of the provisions of this ,act4 7#b7 ,requirements ,any report under paragraph 7#a7 shall at a minimum include the following3 7,a7 ,a description of best practices by ,states and employers in the administration1 promotion1 and use of short-time compensation programs 7as defined in section #ccjf7v7 of the ,internal ,revenue ,code of #aihf74 7,b7 ,an analysis of the significant challenges to ,state enactment and implementation of short-time compensation programs4 7,c7 ,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 programs4 7b7 ,funding ,there are appropriated1 out of any moneys in the ,treasury not otherwise appropriated1 to the ,secretary of ,labor1 #a1ejj1jjj to carry out this section1 to remain available without fiscal year limitation4 ,b ,long-,term unemployed hiring preferences #cea4 ,long-term unemployed workers work opportunity tax credits 7a7 ,in general ,paragraph 7#c7 of section #ea7;b7 of the ,internal ,revenue ,code is amended by inserting #aj1jjj per year in the case of any individual who is a qualified long-term unemployed individual by reason of subsection 7d77#aa71 and before #ab1jjj per year4 7b7 ,long-,term unemployed individuals tax credits ,subsection 7d7 of section #ea of the ,internal ,revenue ,code is amended-- 7#a7 in paragraph 7#a71 by striking or at the end of subparagraph 7,h71 by striking the period at the end of subparagraph 7,i7 and inserting 1 or1 and by inserting after subparagraph 7,i7 the following3 7,j7 a qualified long-term unemployed individual4 1 and 7#b7 by redesignating paragraphs 7#aa7 through 7#ad7 as paragraphs 7#ab7 through 7#ae71 respectively1 and by inserting after paragraph 7#aj7 the following new paragraph3 7#aa7 ,qualified long-term unemployed individual 7,a7 ,in general ,the term qualified long-term unemployed individual means any individual who was not a student for at least #f months during the #a-year period ending on the hiring date and is certified by the designated local agency as having aggregate periods of unemployment during the #a-year period ending on the hiring date which equal or exceed #f months4 7,b7 ,student ,for purposes of this subsection1 a student is an individual enrolled at least half-time in a program that leads to a degree1 certificate1 or other recognized educational credential for at least #f months whether or not consecutive during the #a-year period ending on the hiring date4 4 7c7 ,simplified certification ,section #ea7;d7 of the ,internal ,revenue ,code1 as amended by subsection 7b71 is amended by adding at the end the following new paragraph3 7#af7 ,credit allowed for qualified long-term unemployed individuals 7,a7 ,in general ,any qualified long-term unemployed individual under paragraph 7#aa7 will be treated as certified by the designated local agency as having aggregate periods of unemployment if 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 #f months during the #a-year period ending on the hiring date4 7,b7 ,regulatory authority ,the ,secretary in his discretion may provide alternative methods for certification4 4 7d7 ,credit made available to tax-,exempt employers in certain circumstances ,section #caaa7;e7 of the ,internal ,revenue ,code is amended-- 7#a7 in the heading for the subsection is amended by inserting and qualified long-,term unemployed individuals after qualified veterans1 7#b7 in paragraph 7#a7 by inserting or qualified long-term unemployed individual after qualified veteran1 7#c7 in paragraph 7#b7 by inserting and qualified long-term unemployed individuals after qualified veterans1 7#d7 in paragraph 7#c77;,c7 by inserting and qualified long-term unemployed individual1 as the case may be1 after qualified veteran1 7#e7 in paragraph 7#d7 by inserting or qualified long-term unemployed individual after qualified veteran both places it appears1 and 7#f7 in paragraph 7#e7 by striking and at the end of subparagraph 7,a71 by striking the period at the end of subparagraph 7,b7 and inserting 1 and1 and by adding at the end the following3 7,c7 the term qualified long-term unemployed individual has meaning given such term by section #ea7;d77#aa74 4 7e7 ,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 ,act4 ,c ,pathways ,back to ,work #cfa4 ,short title ,this subtitle may be cited as the ,pathways ,back to ,work ,act of #bjac4 #cfb4 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary of ,labor #e1jjj1jjj1jjj to carry out this subtitle4 #cfc4 ,availability of funds 7a7 ,in general ,of the amounts available under section #cfb7;b71 the ,secretary of ,labor shall-- 7#a7 allot #b1jjj1jjj1jjj in accordance with section #cfd to provide subsidized employment to unemployed1 low-income adults2 7#b7 allot #a1ejj1jjj1jjj in accordance with section #cfe to provide summer and year-round employment opportunities to low-income youth2 and 7#c7 award #a1ejj1jjj1jjj in competitive grants in accordance with section #cff to local entities to carry out work-based training and other work-related and educational strategies and activities of demonstrated effectiveness to unemployed1 low-income adults and low-income youth to provide the skills and assistance needed to obtain employment4 7b7 ,reservation ,the ,secretary of ,labor may reserve not more than #a percent of amounts available under each of paragraphs 7#a7 through 7#c7 of subsection 7a7 for the costs of technical assistance1 evaluations and ,federal administration of this ,act4 7c7 ,period of availability ,the amounts appropriated under this ,act shall be available for obligation by the ,secretary of ,labor until ,december #ca1 #bjad1 and shall be available for expenditure by grantees and subgrantees until ,september #cj1 #bjae4 #cfd4 ,subsidized employment for unemployed1 low-income adults 7a7 ,in general 7#a7 ,allotments ,from the funds available under section #cfc7;a77#a71 the ,secretary of ,labor shall make an allotment under subsection 7b7 to each ,state that has a ,state plan approved under subsection 7c7 and to each outlying area and ,native ,american grantee under section #aff of the ,workforce ,investment ,act of #aiih that meets the requirements of this section1 for the purpose of providing subsidized employment opportunities to unemployed1 low-income adults4 7#b7 ,guidance ,not later than #cj days after the date of enactment of this ,act1 the ,secretary of ,labor1 in coordination with the ,secretary of ,health and ,human ,services1 shall issue guidance regarding the implementation of this section4 ,such guidance shall1 consistent with this section1 include procedures for the submission and approval of ,state and local plans and the allotment and allocation of funds1 including reallotment and reallocation of such funds1 that promote the expeditious and effective implementation of the activities authorized under this section4 7b7 ,state allotments 7#a7 ,reservations for outlying areas and tribes ,of the funds described subsection 7a77#a71 the ,secretary shall reserve-- 7,a7 not more than one-quarter of one percent to provide assistance to outlying areas to provide subsidized employment to low-income adults who are unemployed2 and 7,b7 #a4e percent to provide assistance to grantees of the ,native ,american programs under section #aff of the ,workforce ,investment ,act of #aiih to provide subsidized employment to low-income adults who are unemployed4 7#b7 ,states ,after determining the amounts to be reserved under paragraph 7#a71 the ,secretary of ,labor shall allot the remainder of the amounts described in subsection 7a77#a7 among the ,states as follows-- 7,a7 one-third shall be allotted on the basis of the relative number of unemployed individuals in areas of substantial unemployment in each ,state1 compared to the total number of unemployed individuals in areas of substantial unemployment in all ,states2 7,b7 one-third shall be allotted on the basis of the relative excess number of unemployed individuals in each ,state1 compared to the total excess number of unemployed individuals in all ,states2 and 7,c7 one-third shall be allotted on the basis of the relative number of disadvantaged adults and youth in each ,state1 compared to the total number of disadvantaged adults and youth in all ,states4 7#c7 ,definitions ,for purposes of the formula described in paragraph 7#b7-- 7,a7 ,area of substantial unemployment ,the term area of substantial unemployment means any contiguous area with a population of at least #aj1jjj and that has an average rate of unemployment of at least #f4e percent for the most recent #ab months1 as determined by the ,secretary4 7,b7 ,disadvantaged adults and youth ,the term disadvantaged adults and youth means an individual who is age #af and older 7subject to section #acb7;b77#a77;,b77v77,i7 of the ,workforce ,investment ,act of #aiih7 who received an income1 or is a member of a family that received a total family income1 that1 in relation to family size1 does not exceed the higher of-- 7i7 the poverty line2 or 7ii7 #gj percent of the lower living standard income level4 7,c7 ,excess number ,the term excess number means1 used with respect to the excess number of unemployed individuals within a ,state1 the higher of-- 7i7 the number that represents the number of unemployed individuals in excess of #d4e percent of the civilian labor force in the ,state2 or 7ii7 the number that represents the number of unemployed individuals in excess of #d4e percent of the civilian labor force in areas of substantial unemployment in such ,state4 7#d7 ,reallotment ,if the ,governor of a ,state does not submit a ,state plan by the time specified in subsection 7c71 or a ,state does not receive approval of a ,state plan1 the amount the ,state would have been eligible to receive pursuant to the formula under paragraph 7#b7 shall be added to the amounts available for the competitive grants under section #cfc7;a77#c74 7c7 ,state plan 7#a7 ,in general ,for a ,state to be eligible to receive an allotment of the funds under subsection 7b71 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 require4 ,at a minimum1 such plan shall include-- 7,a7 a description of the strategies and activities to be carried out by the ,state1 in coordination with employers in the ,state1 to provide subsidized employment opportunities to unemployed1 low-income adults1 including strategies relating to the level and duration of subsidies consistent with subsection 7e77#b72 7,b7 a description of the requirements the ,state will apply relating to the eligibility of unemployed1 low-income adults1 consistent with section #cfh7f71 for subsidized employment opportunities1 which may include criteria to target assistance to particular categories of such adults1 such as individuals with disabilities or individuals who have exhausted all rights to unemployment compensation2 7,c7 a description of how the funds allotted to provide subsidized employment opportunities will be administered in the ,state and local areas1 in accordance with subsection 7d72 7,d7 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 performance1 consistent with guidance provided by the ,secretary of ,labor regarding such outcomes and processes and with section #cfg7;b72 7,e7 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 #aiih1 the ,,tanf program under part ,a of title ,,iv of the ,social ,security ,act1 and other appropriate ,federal and ,state programs that may assist unemployed1 low-income adults in obtaining and retaining employment2 7,f7 a description of the timelines for implementation of the activities described in subparagraph 7,a71 and the number of unemployed1 low-income adults expected to be placed in subsidized employment by quarter2 7,g7 assurances that the ,state will report such information as the ,secretary of ,labor may require relating to fiscal1 performance and other matters that the ,secretary determines is necessary to effectively monitor the activities carried out under this section2 and 7,h7 assurances that the ,state will ensure compliance with the labor standards and protections described in section #cfg7;a7 of this ,act4 7#b7 ,submission and approval of state plan 7,a7 ,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 #cfe1 and may be submitted as a modification to a ,state plan that has been approved under section #aab of the ,workforce ,investment ,act of #aiih4 7,b7 ,submission and approval 7i7 ,submission ,the ,governor shall submit a plan to the ,secretary of ,labor not later than #ge 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 #de days after the submission of such plan4 ,if the plan is disapproved1 the ,secretary of ,labor may provide a reasonable period of time in which a disapproved plan may be amended and resubmitted for approval4 7ii7 ,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 section4 ,if the plan is approved1 the ,secretary shall allot funds to ,states within #cj days after such approval4 7#c7 ,modifications to state plan ,the ,governor may submit a modification to a ,state plan under this subsection consistent with the requirements of this section4 7d7 ,administration within the state 7#a7 ,option ,the ,state may administer the funds for activities under this section through-- 7,a7 the ,state and local entities responsible for the administration of the adult formula program under title ,i-,b of the ,workforce ,investment ,act of #aiih2 7,b7 the entities responsible for the administration of the ,,tanf program under part ,a of title ,,iv of the ,social ,security ,act2 or 7,c7 a combination of the entities described in subparagraphs 7,a7 and 7,b74 7#b7 ,within-state allocations 7,a7 ,allocation of funds ,the ,governor may reserve up to #e percent of the allotment under subsection 7b77#b7 for administration and technical assistance1 and shall allocate the remainder1 in accordance with the option elected under paragraph 7#a7-- 7i7 among local workforce investment areas within the ,state in accordance with the factors identified in subsection 7b77#b71 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 involved1 of which not more than #aj percent of the funds allocated to a local workforce investment area may be used for the costs of administration of this section2 or 7ii7 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 appropriate4 7,b7 ,local plans 7i7 ,in general ,in the case where the responsibility for the administration of activities is to be carried out by the entities described under paragraph 7#a77;,a71 in order to receive an allocation under subparagraph 7,a77i71 a local workforce investment board1 in partnership with the chief elected official of the local workforce investment area involved1 shall submit to the ,governor a local plan for the use of such funds under this section not later than #cj days after the submission of the ,state plan4 ,such local plan may be submitted as a modification to a local plan approved under section #aah of the ,workforce ,investment ,act of #aiih4 7ii7 ,contents ,the local plan described in clause 7i7 shall contain the elements described in subparagraphs 7,a7-7,h7 of subsection 7c77#a71 as applied to the local workforce investment area4 7iii7 ,approval ,the ,governor shall approve or disapprove the local plan submitted under clause 7i7 within #cj days after submission1 or if later1 #cj days after the approval of the ,state plan4 ,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 section4 ,if the ,governor has not made a determination within the period specified under the first sentence of this clause1 the plan shall be considered approved4 ,if the plan is disapproved1 the ,governor may provide a reasonable period of time in which a disapproved plan may be amended and resubmitted for approval4 ,the ,governor shall allocate funds to local workforce investment areas with approved plans within #cj days after such approval4 7,c7 ,reallocation of funds to local areas ,if a local workforce investment board does not submit a local plan by the time specified in subparagraph 7,b7 or the ,governor does not approve a local plan1 the amount the local workforce investment area would have been eligible to receive pursuant to the formula under subparagraph 7,a77i7 shall be allocated to local workforce investment areas that receive approval of the local plan under subparagraph 7,b74 ,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 7,a77i74 7e7 ,use of funds 7#a7 ,in general ,the funds under this section shall be used to provide subsidized employment for unemployed1 low-income adults4 ,the ,state and local entities described in subsection 7d77#a7 may use a variety of strategies in recruiting employers and identifying appropriate employment opportunities1 with a priority to be provided to employment opportunities likely to lead to unsubsidized employment in emerging or in-demand occupations in the local area4 ,funds under this section may be used to provide support services1 such as transportation and child care1 that are necessary to enable the participation of individuals in subsidized employment opportunities4 7#b7 ,level of subsidy and duration ,the ,states or local entities described in subsection 7d77#a7 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 section1 and the duration of such subsidy1 in accordance with guidance issued by the ,secretary4 ,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 employment4 7f7 ,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 section4 #cfe4 ,summer employment and year-round employment opportunities for low-income youth 7a7 ,in general ,from the funds available under section #cfc7;a77#b71 the ,secretary of ,labor shall make an allotment under subsection 7c7 to each ,state that has a ,state plan modification 7or other form of request for funds specified in guidance under subsection 7b77 approved under subsection 7d7 and to each outlying area and ,native ,american grantee under section #aff of the ,workforce ,investment ,act of #aiih that meets the requirements of this section1 for the purpose of providing summer employment and year-round employment opportunities to low-income youth4 7b7 ,guidance and application of requirements 7#a7 ,guidance ,not later than #bj days after the date of enactment of this ,act1 the ,secretary of ,labor shall issue guidance regarding the implementation of this section4 ,such guidance shall1 consistent with this section1 include procedures for the submission and approval of ,state plan modifications1 or for forms of requests for funds by the ,state as may be identified in such guidance1 local plan modifications1 or other forms of requests for funds from local workforce investment areas as may be identified in such guidance1 and the allotment and allocation of funds1 including reallotment and reallocation of such funds1 that promote the expeditious and effective implementation of the activities authorized under this section4 7#b7 ,requirements ,except as otherwise provided in the guidance described in paragraph 7#a7 and in this section and other provisions of this ,act1 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 #aiih relating to youth activities4 7c7 ,state allotments 7#a7 ,reservations for outlying areas and tribes ,of the funds described subsection 7a71 the ,secretary shall reserve-- 7,a7 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 youth2 and 7,b7 #a4e percent to provide assistance to grantees of the ,native ,american programs under section #aff of the ,workforce ,investment ,act of #aiih to provide summer and year-round employment opportunities to low-income youth4 7#b7 ,states ,after determining the amounts to be reserved under paragraph 7#a71 the ,secretary of ,labor shall allot the remainder of the amounts described in subsection 7a7 among the ,states in accordance with the factors described in section #cfd7;b77#b7 of this ,act4 7#c7 ,reallotment ,if the ,governor of a ,state does not submit a ,state plan modification or other request for funds specified in guidance under subsection 7b7 by the time specified in subsection 7d77#b77;,b71 or a ,state does not receive approval of such ,state plan modification or request1 the amount the ,state would have been eligible to receive pursuant to the formula under paragraph 7#b7 shall be added to the amounts available for the competitive grants under section #cfc7;a77#c74 7d7 ,state plan modification 7#a7 ,in general ,for a ,state to be eligible to receive an allotment of the funds under subsection 7c71 the ,governor of the ,state shall submit to the ,secretary of ,labor a modification to a ,state plan approved under section #aab of the ,workforce ,investment ,act of #aiih1 or other request for funds described in guidance in subsection 7b71 in such form and containing such information as the ,secretary may require4 ,at a minimum1 such plan modification or request shall include-- 7,a7 a description of the strategies and activities to be carried out to provide summer employment opportunities and year-round employment opportunities1 including the linkages to educational activities1 consistent with subsection 7f72 7,b7 a description of the requirements the ,states will apply relating to the eligibility of low-income youth1 consistent with section #cfh7d71 for summer employment opportunities and year-round employment opportunities1 which may include criteria to target assistance to particular categories of such low-income youth1 such as youth with disabilities1 consistent with subsection 7f72 7,c7 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 performance1 consistent with guidance provided by the ,secretary of ,labor regarding such outcomes and processes and with section #cfg7;b72 7,d7 a description of the timelines for implementation of the activities described in subparagraph 7,a71 and the number of low-income youth expected to be placed in summer employment opportunities1 and year-round employment opportunities1 respectively1 by quarter2 7,e7 assurances that the ,state will report such information as the ,secretary may require relating to fiscal1 performance and other matters that the ,secretary determines is necessary to effectively monitor the activities carried out under this section2 and 7,f7 assurances that the ,state will ensure compliance with the labor standards protections described in section #cfg7;a74 7#b7 ,submission and approval of state plan modification or request 7,a7 ,submission ,the ,governor shall submit a modification of the ,state plan or other request for funds described in guidance in subsection 7b7 to the ,secretary of ,labor not later than #cj days after the issuance of such guidance4 ,the ,state plan modification or request for funds required under this subsection may be submitted in conjunction with the ,state plan required under section #cfd4 7,b7 ,approval ,the ,secretary of ,labor shall approve the plan or request submitted under subparagraph 7,a7 within #cj days after submission1 unless the ,secretary determines that the plan or request is inconsistent with the requirements of this section4 ,if the ,secretary has not made a determination within #cj days1 the plan or request shall be considered approved4 ,if the plan or request is disapproved1 the ,secretary may provide a reasonable period of time in which a disapproved plan or request may be amended and resubmitted for approval4 ,if the plan or request is approved1 the ,secretary shall allot funds to ,states within #cj days after such approval4 7#c7 ,modifications to state plan or request ,the ,governor may submit further modifications to a ,state plan or request for funds identified under subsection 7b7 to carry out this section in accordance with the requirements of this section4 7e7 ,within-,state allocation and administration 7#a7 ,in general ,of the funds allotted to the ,state under subsection 7c71 the ,governor-- 7,a7 may reserve up to #e percent of the allotment for administration and technical assistance2 and 7,b7 shall allocate the remainder of the allotment among local workforce investment areas within the ,state in accordance with the factors identified in section #cfd7;b77#b71 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 involved4 ,not more than #aj percent of the funds allocated to a local workforce investment area may be used for the costs of administration of this section4 7#b7 ,local plan 7,a7 ,submission ,in order to receive an allocation under paragraph 7#a77;,b71 the local workforce investment board1 in partnership with the chief elected official for the local workforce investment area involved1 shall submit to the ,governor a modification to a local plan approved under section #aah of the ,workforce ,investment ,act of #aiih1 or other form of request for funds as may be identified in the guidance issued under subsection 7b71 not later than #cj days after the submission by the ,state of the modification to the ,state plan or other request for funds identified in subsection 7b71 describing the strategies and activities to be carried out under this section4 7,b7 ,approval ,the ,governor shall approve the local plan submitted under subparagraph 7,a7 within #cj days after submission1 unless the ,governor determines that the plan is inconsistent with requirements of this section4 ,if the ,governor has not made a determination within #cj days1 the plan shall be considered approved4 ,if the plan is disapproved1 the ,governor may provide a reasonable period of time in which a disapproved plan may be amended and resubmitted for approval4 ,the ,governor shall allocate funds to local workforce investment areas with approved plans within #cj days after approval4 7#c7 ,reallocation ,if a local workforce investment board does not submit a local plan modification 7or other request for funds identified in guidance under subsection 7b77 by the time specified in paragraph 7#b71 or does not receive approval of a local plan1 the amount the local workforce investment area would have been eligible to receive pursuant to the formula under paragraph 7#a77;,b7 shall be allocated to local workforce investment areas that receive approval of the local plan modification or request for funds under paragraph 7#b74 ,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 7#a77;,b74 7f7 ,use of funds 7#a7 ,in general ,the funds provided under this section shall be used-- 7,a7 to provide summer employment opportunities for low-income youth1 ages #af through #bd1 with direct linkages to academic and occupational learning1 and may include the provision of supportive services1 such as transportation or child care1 necessary to enable such youth to participate2 and 7,b7 to provide year round employment opportunities1 which may be combined with other activities authorized under section #abi of the ,workforce ,investment ,act of #aiih1to low-income youth1 ages #af through #bd1 with a priority to out-of school youth who are-- 7i7 high school dropouts2 or 7ii7 recipients of a secondary school diploma or its equivalent but who are basic skills deficient unemployed or underemployed4 7#b7 ,program priorities ,in administering the funds under this section1 the local board and local chief elected officials shall give a priority to-- 7,a7 identifying employment opportunities that are-- 7i7 in emerging or in-demand occupations in the local workforce investment area2 or 7ii7 in the public or nonprofit sector that meet community needs2 and 7,b7 linking year-round program participants to training and educational activities that will provide such participants an industry-recognized certificate or credential4 7#c7 ,performance accountability ,for activities funded under this section1 in lieu of the requirements described in section #acf of the ,workforce ,investment ,act of #aiih1 ,state and local workforce investment areas shall provide such reports as the ,secretary of ,labor may require regarding the performance outcomes described in section #cfg7;a77#e74 #cff4 ,work-based employment strategies of demonstrated effectiveness 7a7 ,in general ,from the funds available under section #cfc7;a77#c71 the ,secretary of ,labor shall award grants on a competitive basis to eligible entities to carry out work-based strategies of demonstrated effectiveness4 7b7 ,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 unemployed1 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 activities4 ,such strategies and activities may include-- 7#a7 on-the-job training1 registered apprenticeship programs1 or other programs that combine work with skills development2 7#b7 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 training2 7#c7 training that supports an industry sector or an employer-based or labor-management committee industry partnership which includes a significant work-experience component2 7#d7 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 term2 7#e7 connections to immediate work opportunities1 including subsidized employment opportunities1 or summer employment opportunities for youth1 that includes concurrent skills training and other supports2 7#f7 career academies that provide students with the academic preparation and training1 including paid internships and concurrent enrollment in community colleges or other postsecondary institutions1 needed to pursue a career pathway that leads to postsecondary credentials and high-demand jobs2 and 7#g7 adult basic education and integrated basic education and training models for low-skilled adults1 hosted at community colleges or at other sites1 to prepare individuals for jobs that are in demand in a local area4 7c7 ,eligible entity ,an eligible entity shall include a local chief elected official1 in collaboration with the local workforce investment board for the local workforce investment area involved 7which may include a partnership with of such officials and boards in the region and in the ,state71 or an entity eligible to apply for an ,indian and ,native ,american grant under section #aff of the ,workforce ,investment ,act of #aiih1 and may include1 in partnership with such officials1 boards1 and entities1 the following-- 7#a7 employers or employer associations2 7#b7 adult education providers and postsecondary educational institutions1 including community colleges2 7#c7 community-based organizations2 7#d7 joint labor-management committees2 7#e7 work-related intermediaries2 or 7#f7 other appropriate organizations4 7d7 ,application ,an eligible entity seeking to receive a grant under this section shall submit to the ,secretary of ,labor an application at such time1 in such manner1 and containing such information as the ,secretary may require4 ,at a minimum1 the application shall-- 7#a7 describe the strategies and activities of demonstrated effectiveness that the eligible entities will carry out to provide unemployed1 low-income adults and low-income youth with the skills that will lead to employment upon completion of participation in such activities2 7#b7 describe the requirements that will apply relating to the eligibility of unemployed1 low-income adults or low-income youth1 consistent with paragraphs 7#d7 and 7#f7 of section #cfh1 for activities carried out under this section1 which may include criteria to target assistance to particular categories of such adults and youth1 such as individuals with disabilities or individuals who have exhausted all rights to unemployment compensation2 7#c7 describe how the strategies and activities address the needs of the target populations identified in paragraph 7#b7 and the needs of employers in the local area2 7#d7 describe the expected outcomes to be achieved by implementing the strategies and activities2 7#e7 provide evidence that the funds provided may be expended expeditiously and efficiently to implement the strategies and activities2 7#f7 describe how the strategies and activities will be coordinated with other ,federal1 ,state and local programs providing employment1 education and supportive activities2 7#g7 provide evidence of employer commitment to participate in the activities funded under this section1 including identification of anticipated occupational and skill needs2 7#h7 provide assurances that the grant recipient will report such information as the ,secretary may require relating to fiscal1 performance and other matters that the ,secretary determines is necessary to effectively monitor the activities carried out under this section2 and 7#i7 provide assurances that the use of the funds provided under this section will comply with the labor standards and protections described section #cfg7;a74 7e7 ,priority in awards ,in awarding grants under this section1 the ,secretary of ,labor shall give a priority to applications submitted by eligible entities from areas of high poverty and high unemployment1 as defined by the ,secretary1 such as ,public ,use ,microdata ,areas 7,p,u,m,as7 as designated by the ,census ,bureau4 7f7 ,coordination of ,federal administration ,the ,secretary of ,labor shall administer this section in coordination with the ,secretary of ,education1 ,secretary of ,health and ,human ,services1 and other appropriate agency heads1 to ensure the effective implementation of this section4 #cfg4 ,general requirements 7a7 ,labor standards and protections ,activities provided with funds under this ,act shall be subject to the requirements and restrictions1 including the labor standards1 described in section #aha of the ,workforce ,investment ,act of #aiih and the nondiscrimination provisions of section #ahh of such ,act1 in addition to other applicable ,federal laws4 7b7 ,reporting ,the ,secretary may require the reporting of information relating to fiscal1 performance and other matters that the ,secretary determines is necessary to effectively monitor the activities carried out with funds provided under this ,act4 ,at a minimum1 grantees and subgrantees shall provide information relating to-- 7#a7 the number individuals participating in activities with funds provided under this ,act and the number of such individuals who have completed such participation2 7#b7 the expenditures of funds provided under the ,act2 7#c7 the number of jobs created pursuant to the activities carried out under this ,act2 7#d7 the demographic characteristics of individuals participating in activities under this ,act2 and 7#e7 the performance outcomes of individuals participating in activities under this ,act1 including-- 7,a7 for adults participating in activities funded under section #cfd of this ,act-- 7i7 entry in unsubsidized employment1 7ii7 retention in unsubsidized employment1 and 7iii7 earnings in unsubsidized employment2 7,b7 for low-income youth participating in summer employment activities under sections #cfe and #cff-- 7i7 work readiness skill attainment using an employer validated checklist2 and 7ii7 placement in or return to secondary or postsecondary education or training1 or entry into unsubsidized employment2 7,c7 for low-income youth participating in year-round employment activities under section #cfe or in activities under section #cff-- 7i7 placement in or return to post-secondary education2 7ii7 attainment of high school diploma or its equivalent2 7iii7 attainment of an industry-recognized credential2 and 7iv7 entry into unsubsidized employment1 retention1 and earnings as described in subparagraph 7,a72 and 7,d7 for unemployed1 low-income adults participating in activities under section #cff-- 7i7 entry into unsubsidized employment1 retention1 and earnings as described in subparagraph 7,a72 and 7ii7 the attainment of industry-recognized credentials4 7c7 ,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 funds4 7d7 ,additional requirements ,the ,secretary of ,labor may establish such additional requirements as the ,secretary determines may be necessary to ensure fiscal integrity1 effective monitoring1 and the appropriate and prompt implementation of the activities under this ,act4 7e7 ,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 7b7 and the evaluations of activities carried out pursuant to the funds reserved under section #cfc7;b74 #cfh4 ,definitions ,in this ,act3 7#a7 ,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 government1 the individuals designated under an agreement described in section #aag7;c77#a77;,b7 of the ,workforce ,investment ,act of #aiih4 7#b7 ,local workforce investment area ,the term local workforce investment area means such area designated under section #aaf of the ,workforce ,investment ,act of #aiih4 7#c7 ,local workforce investment board ,the term local workforce investment board means such board established under section #aag of the ,workforce ,investment ,act of #aiih4 7#d7 ,low-income youth ,the term low-income youth means an individual who-- 7,a7 is aged #af through #bd2 7,b7 meets the definition of a low-income individual provided in section #aja7be7 of the ,workforce ,investment ,act of #aiih1 except that ,states1 local workforce investment areas under section #cfe and eligible entities under section #cff7;c71 subject to approval in the applicable ,state plans1 local plans1 and applications for funds1 may increase the income level specified in subparagraph 7,b77i7 of such section to an amount not in excess of #bjj percent of the poverty line for purposes of determining eligibility for participation in activities under sections #cfe and #cff of this ,act2 and 7,c7 is in one or more of the categories specified in section #aja7ac77;,c7 of the ,workforce ,investment ,act of #aiih4 7#e7 ,outlying area ,the term outlying area means the ,united ,states ,virgin ,islands1 ,guam1 ,american ,samoa1 the ,commonwealth of the ,northern ,mariana ,islands1 and the ,republic of ,palau4 7#f7 ,unemployed1 low-income adult ,the term unemployed1 low-income adult means an individual who-- 7,a7 is age #ah or older2 7,b7 is without employment and is seeking assistance under this ,act to obtain employment2 and 7,c7 meets the definition of a low-income individual under section #aja7be7 of the ,workforce ,investment ,act of #aiih1 except that for that ,states1 local entities described in section #cfd7;d77#a7 and eligible entities under section #cff7;c71 subject to approval in the applicable ,state plans1 local plans1 and applications for funds1 may increase the income level specified in subparagraph 7,b77i7 of such section to an amount not in excess of #bjj percent of the poverty line for purposes of determining eligibility for participation in activities under sections #cfd and #cff of this ,act4 7#g7 ,state ,the term ,state means each of the several ,states of the ,united ,states1 the ,district of ,columbia1 and ,puerto ,rico4 ,d ,prohibition of discrimination in employment on the basis of an individual's status as unemployed #cga4 ,short title ,this subtitle may be cited as the ,fair ,employment ,opportunity ,act of #bjac4 #cgb4 ,findings and purpose 7a7 ,findings ,congress finds that denial of employment opportunities to individuals because of their status as unemployed is discriminatory and burdens commerce by-- 7#a7 reducing personal consumption and undermining economic stability and growth2 7#b7 squandering human capital essential to the ,nation's economic vibrancy and growth2 7#c7 increasing demands for ,federal and ,state unemployment insurance benefits1 reducing trust fund assets1 and leading to higher payroll taxes for employers1 cuts in benefits for jobless workers1 or both2 7#d7 imposing additional burdens on publicly funded health and welfare programs2 and 7#e7 depressing income1 property1 and other tax revenues that the ,federal ,government1 ,states1 and localities rely on to support operations and institutions essential to commerce4 7b7 ,purposes ,the purposes of this subtitle are-- 7#a7 to prohibit employers and employment agencies from disqualifying an individual from employment opportunities because of that individual's status as unemployed2 7#b7 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 opportunity2 and 7#c7 to eliminate the burdens imposed on commerce due to the exclusion of such individuals from employment4 #cgc4 ,definitions ,as used in this subtitle-- 7#a7 the term affected individual means any person who was subject to an unlawful employment practice solely because of that individual's status as unemployed2 7#b7 the term ,commission means the ,equal ,employment ,opportunity ,commission2 7#c7 the term employee means-- 7,a7 an employee as defined in section #gja7;f7 of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;e7f772 7,b7 a ,state employee to which section #cjb7;a77#a7 of the ,government ,employee ,rights ,act of #aiia 7#db ,u4,s4,c4 #bjjj;e-#af;b7a77#a77 applies2 7,c7 a covered employee1 as defined in section #aja of the ,congressional ,accountability ,act of #aiie 7#b ,u4,s4,c4 #acja7 or section #daa7;c7 of title #c1 ,united ,states ,code2 or 7,d7 an employee or applicant to which section #gag7;a7 of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;e-#af7;a77 applies2 7#d7 the term employer means-- 7,a7 a person engaged in an industry affecting commerce 7as defined in section #gja7;h7 of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;e7h77 who has #ae or more employees for each working day in each of #bj or more calendar weeks in the current or preceding calendar year1 and any agent of such a person1 but does not include a bona fide private membership club that is exempt from taxation under section #eja7;c7 of the ,internal ,revenue ,code of #aihf2 7,b7 an employing authority to which section #cjb7;a77#a7 of the ,government ,employee ,rights ,act of #aiia applies2 7,c7 an employing office1 as defined in section #aja of the ,congressional ,accountability ,act of #aiie or section #daa7;c7 of title #c1 ,united ,states ,code2 or 7,d7 an entity to which section #gag7;a7 of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;e-#af7;a77 applies2 7#e7 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 person1 and any person who maintains an ,internet website or print medium that publishes advertisements or announcements of openings in jobs for employees2 7#f7 the term person has the meaning given the term in section #gja7;a7 of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;e7a772 and 7#g7 the term status as unemployed1 used with respect to an individual1 means that the individual1 at the time of application for employment or at the time of action alleged to violate this subtitle1 does not have a job1 is available for work and is searching for work4 #cgd4 ,prohibited acts 7a7 ,employers ,it shall be an unlawful employment practice for an employer to-- 7#a7 publish in print1 on the ,internet1 or in any other medium1 an advertisement or announcement for an employee for any job that includes-- 7,a7 any provision stating or indicating that an individual's status as unemployed disqualifies the individual for any employment opportunity2 or 7,b7 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 unemployed2 7#b7 fail or refuse to consider for employment1 or fail or refuse to hire1 an individual as an employee because of the individual's status as unemployed2 or 7#c7 direct or request that an employment agency take an individual's status as unemployed into account to disqualify an applicant for consideration1 screening1 or referral for employment as an employee4 7b7 ,employment agencies ,it shall be an unlawful employment practice for an employment agency to-- 7#a7 publish1 in print or on the ,internet or in any other medium1 an advertisement or announcement for any vacancy in a job1 as an employee1 that includes-- 7,a7 any provision stating or indicating that an individual's status as unemployed disqualifies the individual for any employment opportunity2 or 7,b7 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 unemployed2 7#b7 screen1 fail or refuse to consider1 or fail or refuse to refer an individual for employment as an employee because of the individual's status as unemployed2 or 7#c7 limit1 segregate1 or classify any individual in any manner that would limit or tend to limit the individual's access to information about jobs1 or consideration1 screening1 or referral for jobs1 as employees1 solely because of an individual's status as unemployed4 7c7 ,interference with rights1 proceedings or inquiries ,it shall be unlawful for any employer or employment agency to-- 7#a7 interfere with1 restrain1 or deny the exercise of or the attempt to exercise1 any right provided under this subtitle2 or 7#b7 fail or refuse to hire1 to discharge1 or in any other manner to discriminate against any individual1 as an employee1 because such individual-- 7,a7 opposed any practice made unlawful by this subtitle2 7,b7 has asserted any right1 filed any charge1 or has instituted or caused to be instituted any proceeding1 under or related to this subtitle2 7,c7 has given1 or is about to give1 any information in connection with any inquiry or proceeding relating to any right provided under this subtitle2 or 7,d7 has testified1 or is about to testify1 in any inquiry or proceeding relating to any right provided under this subtitle4 7d7 ,construction ,nothing in this subtitle is intended to preclude an employer or employment agency from considering an individual's employment history1 or from examining the reasons underlying an individual's status as unemployed1 in assessing an individual's ability to perform a job or in otherwise making employment decisions about that individual4 ,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 necessity4 #cge4 ,enforcement 7a7 ,enforcement powers ,with respect to the administration and enforcement of this subtitle-- 7#a7 the ,commission shall have the same powers as the ,commission has to administer and enforce-- 7,a7 title ,,vii of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;e et seq472 or 7,b7 sections #cjb and #cjd of the ,government ,employee ,rights ,act of #aiia 7#db ,u4,s4,c4 #bjjj;e-#af;b and #bjjj;e-#af;c71 in the case of an affected individual who would be covered by such title1 or by section #cjb7;a77#a7 of the ,government ,employee ,rights ,act of #aiia 7#db ,u4,s4,c4 #bjjj;e-#af;b7a77#a771 respectively2 7#b7 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 #aifd 7#db ,u4,s4,c4 #bjjj;e et seq47 in the case of an affected individual who would be covered by such title2 7#c7 the ,board 7as defined in section #aja of the ,congressional ,accountability ,act of #aiie 7#b ,u4,s4,c4 #acja77 shall have the same powers as the ,board has to administer and enforce the ,congressional ,accountability ,act of #aiie 7#b ,u4,s4,c4 #acja et seq47 in the case of an affected individual who would be covered by section #bja7;a77#a7 of such ,act 7#b ,u4,s4,c4 #acaa7;a77#a772 7#d7 the ,attorney ,general shall have the same powers as the ,attorney ,general has to administer and enforce-- 7,a7 title ,,vii of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;e et seq472 or 7,b7 sections #cjb and #cjd of the ,government ,employee ,rights ,act of #aiia 7#db ,u4,s4,c4 #bjjj;e-#af;b and #bjjj;e-#af;c72 in the case of an affected individual who would be covered by such title1 or of section #cjb7;a77#a7 of the ,government ,employee ,rights ,act of #aiia 7#db ,u4,s4,c4 #bjjj;e-#af;b7a77#a771 respectively2 7#e7 the ,president1 the ,commission1 and the ,merit ,systems ,protection ,board shall have the same powers as the ,president1 the ,commission1 and the ,board1 respectively1 have to administer and enforce chapter #e of title #c1 ,united ,states ,code1 in the case of an affected individual who would be covered by section #daa of such title2 and 7#f7 a court of the ,united ,states shall have the same jurisdiction and powers as the court has to enforce-- 7,a7 title ,,vii of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;e et seq47 in the case of a claim alleged by such individual for a violation of such title2 7,b7 sections #cjb and #cjd of the ,government ,employee ,rights ,act of #aiia 7#db ,u4,s4,c4 #bjjj;e-#af;b and #bjjj;e-#af;c7 in the case of a claim alleged by such individual for a violation of section #cjb7;a77#a7 of such ,act 7#db ,u4,s4,c4 #bjjj;e-#af;b7a77#a772 7,c7 the ,congressional ,accountability ,act of #aiie 7#b ,u4,s4,c4 #acja et seq47 in the case of a claim alleged by such individual for a violation of section #bja7;a77#a7 of such ,act 7#b ,u4,s4,c4 #acaa7;a77#a772 and 7,d7 chapter #e of title #c1 ,united ,states ,code1 in the case of a claim alleged by such individual for a violation of section #daa of such title4 7b7 ,procedures ,the procedures applicable to a claim alleged by an individual for a violation of this subtitle are-- 7#a7 the procedures applicable for a violation of title ,,vii of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;e et seq47 in the case of a claim alleged by such individual for a violation of such title2 7#b7 the procedures applicable for a violation of section #cjb7;a77#a7 of the ,government ,employee ,rights ,act of #aiia 7#db ,u4,s4,c4 #bjjj;e-#af;b7a77#a77 in the case of a claim alleged by such individual for a violation of such section2 7#c7 the procedures applicable for a violation of section #bja7;a77#a7 of the ,congressional ,accountability ,act of #aiie 7#b ,u4,s4,c4 #acaa7;a77#a77 in the case of a claim alleged by such individual for a violation of such section2 and 7#d7 the procedures applicable for a violation of section #daa of title #c1 ,united ,states ,code1 in the case of a claim alleged by such individual for a violation of such section4 7c7 ,remedies 7#a7 ,in any claim alleging a violation of section #cgd7;a77#a7 or #cgd7;b77#a7 of this subtitle1 an individual1 or any person acting on behalf of the individual as set forth in section #cge7;a7 of this subtitle1 may be awarded1 as appropriate3 7,a7 ,an order enjoining the respondent from engaging in the unlawful employment practice4 7,b7 ,reimbursement of costs expended as a result of the unlawful employment practice4 7,c7 ,an amount in liquidated damages not to exceed #a1jjj for each day of the violation4 7,d7 ,reasonable attorney's fees 7including expert fees7 and costs attributable to the pursuit of a claim under this subtitle1 except that no person identified in section #gcc7;a7 of this subtitle shall be eligible to receive attorney's fees4 7#b7 ,in any claim alleging a violation of any other subsection of this subtitle1 an individual1 or any person acting on behalf of the individual as set forth in section #cge7;a7 of this subtitle1 may be awarded1 as appropriate1 the remedies available for a violation of title ,,vii of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;e et seq471 section #cjb7;a77#a7 of the ,government ,employee ,rights ,act of #aiia 7#db ,u4,s4,c4 #bjjj;e-#af;b7a77#a771 section #bja7;a77#a7 of the ,congressional ,accountability ,act of #aiie 7#b ,u4,s4,c4 #acaa7;a77#a771 and section #daa of title #c1 ,united ,states ,code1 except that in a case in which wages1 salary1 employment benefits1 or other compensation have not been denied or lost to the individual1 damages may be awarded in an amount not to exceed #e1jjj4 #cgf4 ,federal and ,state immunity 7a7 ,abrogation of ,state immunity ,a ,state shall not be immune under the #aath ,amendment to the ,constitution from a suit brought in a ,federal court of competent jurisdiction for a violation of this subtitle4 7b7 ,waiver of ,state immunity 7#a7 ,in general 7,a7 ,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 immunity1 under the #aath ,amendment to the ,constitution or otherwise1 to a suit brought by an employee or applicant for employment of that program or activity under this subtitle for a remedy authorized under section #cge7;c7 of this subtitle4 7,b7 ,definition ,in this paragraph1 the term program or activity has the meaning given the term in section #fjf of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;d-#d;a74 7#b7 ,effective date ,with respect to a particular program or activity1 paragraph 7#a7 applies to conduct occurring on or after the day1 after the date of enactment of this ,act1 on which a ,state first receives or uses ,federal financial assistance for that program or activity4 7c7 ,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 subtitle1 for relief that is authorized under this subtitle4 7d7 ,remedies against the united states and the states ,notwithstanding any other provision of this subtitle1 in an action or administrative proceeding against the ,united ,states or a ,state for a violation of this subtitle1 remedies 7including remedies at law and in equity7 are available for the violation to the same extent as such remedies would be available against a non-governmental entity4 #cgg4 ,relationship to other laws ,this subtitle shall not invalidate or limit the rights1 remedies1 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 ,state4 #cgh4 ,severability ,if any provision of this subtitle1 or the application of the provision to any person or circumstance1 is held to be invalid1 the remainder of this subtitle and the application of the provision to any other person or circumstances shall not be affected by the invalidity4 #cgi4 ,effective date ,this subtitle shall take effect on the date of enactment of this ,act and shall not apply to conduct occurring before the effective date4 ,,iv ,offsets ,a #bh percent limitation on certain deductions and exclusions #dja4 #bh percent limitation on certain deductions and exclusions 7a7 ,in general ,part ,i of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #fi4 ,limitation on certain deductions and exclusions 7a7 ,in general ,in the case of an individual for any taxable year1 if-- 7#a7 the taxpayer's adjusted gross income is above-- 7,a7 #bej1jjj in the case of a joint return within the meaning of section #fjac1 7,b7 #bbe1jjj in the case of a head of household return1 7,c7 #abe1jjj in the case of a married filing separately return1 or 7,d7 #bjj1jjj in all other cases2 and 7#b7 the taxpayer's adjusted taxable income for such taxable year exceeds the minimum marginal rate amount1 then the tax imposed under section #a with respect to such taxpayer for such taxable year shall be increased by the amount determined under subsection 7b74 ,if the taxpayer is subject to tax under section #ee1 then in lieu of an increase in tax under section #a1 the tax imposed under section #ee with respect to such taxpayer for such taxable year shall be increased by the amount determined under subsection 7c74 7b7 ,additional amount ,the amount determined under this subsection with respect to any taxpayer for any taxable year is the excess 7if any7 of-- 7#a7 the tax which would be imposed under section #a with respect to such taxpayer for such taxable year if adjusted taxable income were substituted for taxable income each place it appears therein1 over 7#b7 the sum of-- 7,a7 the tax which would be imposed under such section with respect to such taxpayer for such taxable year on the greater of-- 7i7 taxable income1 or 7ii7 the minimum marginal rate amount1 plus 7,b7 #bh percent of the excess 7if any7 of the taxpayer's adjusted taxable income over the greater of-- 7i7 the taxpayer's taxable income1 or 7ii7 the minimum marginal rate amount4 7c7 ,additional ,,amt amount 7#a7 ,the amount determined under this subsection with respect to any taxpayer for any taxable year is the additional amount computed under subsection 7b7 multiplied by the ratio that-- 7,a7 the result of-- 7i7 all itemized deductions 7before the application of section #fh71 plus 7ii7 the specified above-the-line deductions and specified exclusions1 minus 7iii7 the amount of deductions disallowed under section #ef7;b77#a77;,a7 and 7,b71 minus 7iv7 the non-preference disallowed deductions1 bears to-- 7,b7 the sum of-- 7i7 the total of itemized deductions 7after the application of section #fh71 plus 7ii7 the specified above-the-line deductions and specified exclusions4 7#b7 ,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 range1 the taxpayer must increase its additional ,,amt amount by #g percent of the excess of-- 7,a7 the lesser of-- 7i7 the top of the ,,amt exemption phase-out range1 or 7ii7 the taxpayer's alternative minimum taxable income1 computed-- 7,i7 without regard to any itemized deduction or any specified above-the-line deduction1 and 7,,ii7 by including the amount of any specified exclusion2 over 7,b7 the greater of-- 7i7 the taxpayer's alternative minimum taxable income1 or 7ii7 the minimum marginal rate amount4 7d7 ,minimum marginal rate amount ,for purposes of this section1 the term minimum marginal rate amount means1 with respect to any taxpayer for any taxable year1 the highest amount of the taxpayer's taxable income which would be subject to a marginal rate of tax under section #a that is less than #cf percent with respect to such taxable year4 7e7 ,adjusted taxable income ,for purposes of this section-- 7#a7 ,in general ,the term adjusted taxable income means taxable income computed-- 7,a7 without regard to any itemized deduction or any specified above-the-line deduction1 and 7,b7 by including in gross income any specified exclusion4 7#b7 ,specified above-the-line deduction ,the term specified above-the-line deduction means-- 7,a7 the deduction provided under section #afb7l7 7relating to special rules for health insurance costs of self-employed individuals71 7,b7 the deduction provided under section #aii 7relating to income attributable to domestic production activities71 and 7,c7 the deductions provided under the following paragraphs of section #fb7;a73 7i7 ,paragraph 7#b7 7relating to certain trade and business deductions of employees71 other than subparagraph 7,a7 thereof4 7ii7 ,paragraph 7#ae7 7relating to moving expenses74 7iii7 ,paragraph 7#af7 7relating to ,archer ,m,s,as74 7iv7 ,paragraph 7#ag7 7relating to interest on education loans74 7v7 ,paragraph 7#ah7 7relating to higher education expenses74 7vi7 ,paragraph 7#ai7 7relating to health savings accounts74 7#c7 ,specified exclusion ,the term specified exclusion means-- 7,a7 any interest excluded under section #ajc1 7,b7 any exclusion with respect to the cost described in section #fjea7;a77#ad7 7without regard to subparagraph 7,b7 thereof71 and 7,c7 any foreign earned income excluded under section #iaa4 7f7 ,non-,preference disallowed deductions ,for purposes of this section1 the term ,,amt-allowed deductions means all itemized deductions disallowed by section #fh multiplied by the ratio that-- 7#a7 a taxpayer's itemized deductions for the taxable year that are subject to section #fh 7that is1 not including those excluded under section #fh7;c77 and that are not limited under section #ef7;b77#a77;,a7 or 7,b71 bears to 7#b7 the taxpayer's itemized deductions for the taxable year that are subject to section #fh 7that is1 not including those excluded under section #fh7;c774 7g7 ,regulations ,the ,secretary shall prescribe such regulations as may be appropriate to carry out this section1 including regulations which provide appropriate adjustments to the additional ,,amt amount4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning on or after ,january #a1 #bjac4 ,b ,tax carried interest in investment partnerships as ordinary income #daa4 ,partnership interests transferred in connection with performance of services 7a7 ,modification to election ,to include partnership interest in gross income in year of transfer ,subsection 7c7 of section #hc of the ,internal ,revenue ,code of #aihf is amended by redesignating paragraph 7#d7 as paragraph 7#e7 and by inserting after paragraph 7#c7 the following new paragraph3 7#d7 ,partnership interests ,except as provided by the ,secretary-- 7,a7 ,in general ,in the case of any transfer of an interest in a partnership in connection with the provision of services to 7or for the benefit of7 such partnership-- 7i7 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 7at the time of the transfer7 all of its assets at fair market value and distributed the proceeds of such sale 7reduced by the liabilities of the partnership7 to its partners in liquidation of the partnership1 and 7ii7 the person receiving such interest shall be treated as having made the election under subsection 7b77#a7 unless such person makes an election under this paragraph to have such subsection not apply4 7,b7 ,election ,the election under subparagraph 7,a77ii7 shall be made under rules similar to the rules of subsection 7b77#b74 4 7b7 ,effective date ,the amendments made by this section shall apply to interests in partnerships transferred after ,december #ca1 #bjac4 #dab4 ,special rules for partners providing investment management services to partnerships 7a7 ,in general ,part ,i of subchapter ,k of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #gaj4 ,special rules for partners providing investment management services to partnerships 7a7 ,treatment of distributive share of partnership items ,for purposes of this title1 in the case of an investment services partnership interest-- 7#a7 ,in general ,notwithstanding section #gjb7;b7-- 7,a7 an amount equal to the net capital gain with respect to such interest for any partnership taxable year shall be treated as ordinary income1 and 7,b7 subject to the limitation of paragraph 7#b71 an amount equal to the net capital loss with respect to such interest for any partnership taxable year shall be treated as an ordinary loss4 7#b7 ,recharacterization of losses limited to recharacterized gains ,the amount treated as ordinary loss under paragraph 7#a77;,b7 for any taxable year shall not exceed the excess 7if any7 of-- 7,a7 the aggregate amount treated as ordinary income under paragraph 7#a77;,a7 with respect to the investment services partnership interest for all preceding partnership taxable years to which this section applies1 over 7,b7 the aggregate amount treated as ordinary loss under paragraph 7#a77;,b7 with respect to such interest for all preceding partnership taxable years to which this section applies4 7#c7 ,allocation to items of gain and loss 7,a7 ,net capital gain ,the amount treated as ordinary income under paragraph 7#a77;,a7 shall be allocated ratably among the items of long-term capital gain taken into account in determining such net capital gain4 7,b7 ,net capital loss ,the amount treated as ordinary loss under paragraph 7#a77;,b7 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 loss4 7#d7 ,terms relating to capital gains and losses ,for purposes of this section-- 7,a7 ,in general ,net capital gain1 long-term capital gain1 and long-term capital loss1 with respect to any investment services partnership interest for any taxable year1 shall be determined under section #abbb1 except that such section shall be applied-- 7i7 without regard to the recharacterization of any item as ordinary income or ordinary loss under this section1 7ii7 by only taking into account items of gain and loss taken into account by the holder of such interest under section #gjb with respect to such interest for such taxable year1 7iii7 by treating property which is taken into account in determining gains and losses to which section #abca applies as capital assets held for more than #a year1 and 7iv7 without regard to section #abjb4 7,b7 ,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 exchanges4 ,rules similar to the rules of clauses 7i7 through 7iv7 of subparagraph 7,a7 shall apply for purposes of the preceding sentence4 7#e7 ,special rules for dividends 7,a7 ,individuals ,any dividend allocated to any investment services partnership interest shall not be treated as qualified dividend income for purposes of section #a7;h74 7,b7 ,corporations ,no deduction shall be allowed under section #bdc or #bde with respect to any dividend allocated to any investment services partnership interest4 7b7 ,dispositions of partnership interests 7#a7 ,gain 7,a7 ,in general ,any gain on the disposition of an investment services partnership interest shall be-- 7i7 treated as ordinary income1 and 7ii7 recognized notwithstanding any other provision of this subtitle4 7,b7 ,exceptions2 ,certain transfers to charities and related persons ,subparagraph 7,a7 shall not apply to-- 7i7 a disposition by gift1 7ii7 a transfer at death1 or 7iii7 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 7,a71 if such gift1 transfer1 or other disposition is to an organization described in section #agj7;b77#a77;,a7 7other than any organization described in section #eji7;a77#c7 or any fund or account described in section #diff7;d77#b77 or a person with respect to whom the transferred interest is an investment services partnership interest4 7#b7 ,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 7if any7 of-- 7,a7 the aggregate amount treated as ordinary income under subsection 7a7 with respect to such interest for all partnership taxable years to which this section applies1 over 7,b7 the aggregate amount treated as ordinary loss under subsection 7a7 with respect to such interest for all partnership taxable years to which this section applies4 7#c7 ,election with respect to certain exchanges ,paragraph 7#a77;,a77ii7 shall not apply to the contribution of an investment services partnership interest to a partnership in exchange for an interest in such partnership if-- 7,a7 the taxpayer makes an irrevocable election to treat the partnership interest received in the exchange as an investment services partnership interest1 and 7,b7 the taxpayer agrees to comply with such reporting and recordkeeping requirements as the ,secretary may prescribe4 7#d7 ,distributions of partnership property 7,a7 ,in general ,in the case of any distribution of property by a partnership with respect to any investment services partnership interest held by a partner1 the partner receiving such property shall recognize gain equal to the excess 7if any7 of-- 7i7 the fair market value of such property at the time of such distribution1 over 7ii7 the adjusted basis of such property in the hands of such partner 7determined without regard to subparagraph 7,c774 7,b7 ,treatment of gain as ordinary income ,any gain recognized by such partner under subparagraph 7,a7 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 7a7 if1 immediately prior to the distribution1 the partnership had sold the distributed property at fair market value and all of the gain from such disposition were allocated to such partner4 ,for purposes of applying paragraphs 7#b7 and 7#c7 of subsection 7a71 any gain treated as ordinary income under this subparagraph shall be treated as an amount treated as ordinary income under subsection 7a77#a77;,a74 7,c7 ,adjustment of basis ,in the case a distribution to which subparagraph 7,a7 applies1 the basis of the distributed property in the hands of the distributee partner shall be the fair market value of such property4 7,d7 ,special rules with respect to mergers1 divisions1 and technical terminations ,in the case of a taxpayer which satisfies requirements similar to the requirements of subparagraphs 7,a7 and 7,b7 of paragraph 7#c71 this paragraph and paragraph 7#a77;,a77ii7 shall not apply to the distribution of a partnership interest if such distribution is in connection with a contribution 7or deemed contribution7 of any property of the partnership to which section #gba applies pursuant to a transaction described in paragraph 7#a77;,b7 or 7#b7 of section #gjh7;b74 7c7 ,investment services partnership interest ,for purposes of this section-- 7#a7 ,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 7#b7 by such person 7or any person related to such person74 ,an interest in an investment partnership held by any person-- 7,a7 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 business1 7,b7 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 business1 and 7,c7 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 interest4 7#b7 ,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 7directly or indirectly7 by the investment partnership referred to in paragraph 7#a73 7,a7 ,advising as to the advisability of investing in1 purchasing1 or selling any specified asset4 7,b7 ,managing1 acquiring1 or disposing of any specified asset4 7,c7 ,arranging financing with respect to acquiring specified assets4 7,d7 ,any activity in support of any service described in subparagraphs 7,a7 through 7,c74 7#c7 ,investment partnership 7,a7 ,in general ,the term investment partnership means any partnership if1 at the end of any calendar quarter ending after ,december #ca1 #bjab-- 7i7 substantially all of the assets of the partnership are specified assets 7determined without regard to any section #aig intangible within the meaning of section #aig7;d771 and 7ii7 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 7in the hands of such persons7 constitute property held for the production of income4 7,b7 ,special rules for determining if property held for the production of income ,except as otherwise provided by the ,secretary1 for purposes of determining whether any interest in a partnership constitutes property held for the production of income under subparagraph 7,a77ii7-- 7i7 any election under subsection 7e7 or 7f7 of section #dge shall be disregarded1 and 7ii7 paragraph 7#e77;,b7 shall not apply4 7,c7 ,antiabuse rules ,the ,secretary may issue regulations or other guidance which prevent the avoidance of the purposes of subparagraph 7,a71 including regulations or other guidance which treat convertible and contingent debt 7and other debt having the attributes of equity7 as a capital interest in the partnership4 7,d7 ,controlled groups of entities 7i7 ,in general ,in the case of a controlled group of entities1 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 7in the hands of such member7 constitute property not held for the production of income1 then any interest in such partnership held by any member of such group shall be treated for purposes of subparagraph 7,a7 as constituting 7in the hands of such member7 property not held for the production of income4 7ii7 ,controlled group of entities ,for purposes of clause 7i71 the term controlled group of entities means a controlled group of corporations as defined in section #aefc7;a77#a71 applied without regard to subsections 7a77#d7 and 7b77#b7 of section #aefc4 ,a partnership or any other entity 7other than a corporation7 shall be treated as a member of a controlled group of entities if such entity is controlled 7within the meaning of section #ied7;d77#c77 by members of such group 7including any entity treated as a member of such group by reason of this sentence74 7#d7 ,specified asset ,the term specified asset means securities 7as defined in section #dge7;c77#b7 without regard to the last sentence thereof71 real estate held for rental or investment1 interests in partnerships1 commodities 7as defined in section #dge7;e77#b771 cash or cash equivalents1 or options or derivative contracts with respect to any of the foregoing4 7#e7 ,related persons 7,a7 ,in general ,a person shall be treated as related to another person if the relationship between such persons is described in section #bfg7;b7 or #gjg7;b74 7,b7 ,attribution of partner services ,any service described in paragraph 7#b7 which is provided by a partner of a partnership shall be treated as also provided by such partnership4 7d7 ,exception for certain capital interests 7#a7 ,in general ,in the case of any portion of an investment services partnership interest which is a qualified capital interest1 all items of gain and loss 7and any dividends7 which are allocated to such qualified capital interest shall not be taken into account under subsection 7a7 if-- 7,a7 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 7c77#b7 and who are not related to the partner holding the qualified capital interest1 and 7,b7 the allocations made to such other interests are significant compared to the allocations made to such qualified capital interest4 7#b7 ,authority to provide exceptions to allocation requirements ,to the extent provided by the ,secretary in regulations or other guidance-- 7,a7 ,allocations to portion of qualified capital interest ,paragraph 7#a7 may be applied separately with respect to a portion of a qualified capital interest4 7,b7 ,no or insignificant allocations to nonservice providers ,in any case in which the requirements of paragraph 7#a77;,b7 are not satisfied1 items of gain and loss 7and any dividends7 shall not be taken into account under subsection 7a7 to the extent that such items are properly allocable under such regulations or other guidance to qualified capital interests4 7,c7 ,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 7#a77;,a7 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 paragraph4 7#c7 ,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 which1 by reason of a change in the services with respect to assets held 7directly or indirectly7 by the partnership or by reason of a change in the capital contributions to such partnership1 becomes an investment services partnership interest1 the qualified capital interest of the holder of such partnership interest immediately after such change shall not1 for purposes of this subsection1 be less than the fair market value of such interest 7determined immediately before such change74 7#d7 ,special rule for tiered partnerships ,except as otherwise provided by the ,secretary1 in the case of tiered partnerships1 all items which are allocated in a manner which meets the requirements of paragraph 7#a7 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 partnership4 7#e7 ,exception for no-self-charged carry and management fee provisions ,except as otherwise provided by the ,secretary1 an interest shall not fail to be treated as satisfying the requirement of paragraph 7#a77;,a7 merely because the allocations made by the partnership to such interest do not reflect the cost of services described in subsection 7c77#b7 which are provided 7directly or indirectly7 to the partnership by the holder of such interest 7or a related person74 7#f7 ,special rule for dispositions ,in the case of any investment services partnership interest any portion of which is a qualified capital interest1 subsection 7b7 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-- 7,a7 the distributive share of gain or loss that would have been allocated to the qualified capital interest 7consistent with the requirements of paragraph 7#a77 if the partnership had sold all of its assets at fair market value immediately before the disposition1 bears to 7,b7 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 part4 7#g7 ,qualified capital interest ,for purposes of this subsection-- 7,a7 ,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-- 7i7 the fair market value of any money or other property contributed to the partnership in exchange for such interest 7determined without regard to section #geb7;a771 7ii7 any amounts which have been included in gross income under section #hc with respect to the transfer of such interest1 and 7iii7 the excess 7if any7 of-- 7,i7 any items of income and gain taken into account under section #gjb with respect to such interest1 over 7,,ii7 any items of deduction and loss so taken into account4 7,b7 ,adjustment to qualified capital interest 7i7 ,distributions and losses ,the qualified capital interest shall be reduced by distributions from the partnership with respect to such interest and by the excess 7if any7 of the amount described in subparagraph 7,a77iii77,,ii7 over the amount described in subparagraph 7,a77iii77,i74 7ii7 ,special rule for contributions of property ,in the case of any contribution of property described in subparagraph 7,a77i7 with respect to which the fair market value of such property is not equal to the adjusted basis of such property immediately before such contribution1 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 provide4 7,c7 ,technical terminations1 etc41 disregarded ,no increase or decrease in the qualified capital interest of any partner shall result from a termination1 merger1 consolidation1 or division described in section #gjh1 or any similar transaction4 7#h7 ,treatment of certain loans 7,a7 ,proceeds of partnership loans not treated as qualified capital interest of service providing partners ,for purposes of this subsection1 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 guaranteed1 directly or indirectly1 by any other partner or the partnership 7or any person related to any such other partner or the partnership74 ,the preceding sentence shall not apply to the extent the loan or other advance is repaid before ,january #a1 #bjac unless such repayment is made with the proceeds of a loan or other advance described in the preceding sentence4 7,b7 ,reduction in allocations to qualified capital interests for loans from nonservice-providing partners to the partnership ,for purposes of this subsection1 any loan or other advance to the partnership made or guaranteed1 directly or indirectly1 by a partner not providing services described in subsection 7c77#b7 to the partnership 7or any person related to such partner7 shall be taken into account in determining the qualified capital interests of the partners in the partnership4 7e7 ,other income and gain in connection with investment management services 7#a7 ,in general ,if-- 7,a7 a person performs 7directly or indirectly7 investment management services for any investment entity1 7,b7 such person holds 7directly or indirectly7 a disqualified interest with respect to such entity1 and 7,c7 the value of such interest 7or payments thereunder7 is substantially related to the amount of income or gain 7whether or not realized7 from the assets with respect to which the investment management services are performed1 any income or gain with respect to such interest shall be treated as ordinary income4 ,rules similar to the rules of subsections 7a77#e7 and 7d7 shall apply for purposes of this subsection4 7#b7 ,definitions ,for purposes of this subsection-- 7,a7 ,disqualified interest 7i7 ,in general ,the term disqualified interest means1 with respect to any investment entity-- 7,i7 any interest in such entity other than indebtedness1 7,,ii7 convertible or contingent debt of such entity1 7,,iii7 any option or other right to acquire property described in subclause 7,i7 or 7,,ii71 and 7,,iv7 any derivative instrument entered into 7directly or indirectly7 with such entity or any investor in such entity4 7ii7 ,exceptions ,such term shall not include-- 7,i7 a partnership interest1 7,,ii7 except as provided by the ,secretary1 any interest in a taxable corporation1 and 7,,iii7 except as provided by the ,secretary1 stock in an ,s corporation4 7,b7 ,taxable corporation ,the term taxable corporation means-- 7i7 a domestic ,c corporation1 or 7ii7 a foreign corporation substantially all of the income of which is-- 7,i7 effectively connected with the conduct of a trade or business in the ,united ,states1 or 7,,ii7 subject to a comprehensive foreign income tax 7as defined in section #deg;,a7d77#b774 7,c7 ,investment management services ,the term investment management services means a substantial quantity of any of the services described in subsection 7c77#b74 7,d7 ,investment entity ,the term investment entity means any entity which1 if it were a partnership1 would be an investment partnership4 7f7 ,regulations ,the ,secretary shall prescribe such regulations or other guidance as is necessary or appropriate to carry out the purposes of this section1 including regulations or other guidance to-- 7#a7 provide modifications to the application of this section 7including treating related persons as not related to one another7 to the extent such modification is consistent with the purposes of this section1 and 7#b7 coordinate this section with the other provisions of this title4 7g7 ,cross reference ,for #dj percent penalty on certain underpayments due to the avoidance of this section1 see section #fffb4 4 7b7 ,application of section #gea to indirect dispositions of investment services partnership interests 7#a7 ,in general ,subsection 7a7 of section #gea of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of paragraph 7#a71 by inserting or at the end of paragraph 7#b71 and by inserting after paragraph 7#b7 the following new paragraph3 7#c7 investment services partnership interests held by the partnership1 4 7#b7 ,certain distributions treated as sales or exchanges ,subparagraph 7,a7 of section #gea7;b77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of clause 7i71 by inserting or at the end of clause 7ii71 and by inserting after clause 7ii7 the following new clause3 7iii7 investment services partnership interests held by the partnership1 4 7#c7 ,application of special rules in the case of tiered partnerships ,subsection 7f7 of section #gea of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of paragraph 7#a71 by inserting or at the end of paragraph 7#b71 and by inserting after paragraph 7#b7 the following new paragraph3 7#c7 investment services partnership interests held by the partnership1 4 7#d7 ,investment services partnership interests2 qualified capital interests ,section #gea of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7g7 ,investment services partnership interests ,for purposes of this section-- 7#a7 ,in general ,the term investment services partnership interest has the meaning given such term by section #gaj7;c74 7#b7 ,adjustments for qualified capital interests ,the amount to which subsection 7a7 applies by reason of paragraph 7#c7 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 7determined under rules similar to the rules of section #gaj7;d774 7#c7 ,recognition of gains ,any gain with respect to which subsection 7a7 applies by reason of paragraph 7#c7 thereof shall be recognized notwithstanding any other provision of this title4 7#d7 ,coordination with inventory items ,an investment services partnership interest held by the partnership shall not be treated as an inventory item of the partnership4 7#e7 ,prevention of double counting ,under regulations or other guidance prescribed by the ,secretary1 subsection 7a77#c7 shall not apply with respect to any amount to which section #gaj applies4 4 7c7 ,treatment for purposes of section #ggjd ,subsection 7d7 of section #ggjd of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#f7 ,income from certain carried interests not qualified 7,a7 ,in general ,specified carried interest income shall not be treated as qualifying income4 7,b7 ,specified carried interest income ,for purposes of this paragraph-- 7i7 ,in general ,the term specified carried interest income means-- 7,i7 any item of income or gain allocated to an investment services partnership interest 7as defined in section #gaj7;c77 held by the partnership1 7,,ii7 any gain on the disposition of an investment services partnership interest 7as so defined7 or a partnership interest to which 7in the hands of the partnership7 section #gea applies1 and 7,,iii7 any income or gain taken into account by the partnership under subsection 7b77#d7 or 7e7 of section #gaj4 7ii7 ,exception for qualified capital interests ,a rule similar to the rule of section #gaj7;d7 shall apply for purposes of clause 7i74 7,c7 ,coordination with other provisions ,subparagraph 7,a7 shall not apply to any item described in paragraph 7#a77;,e7 7or so much of paragraph 7#a77;,f7 as relates to paragraph 7#a77;,e774 7,d7 ,special rules for certain partnerships 7i7 ,certain partnerships owned by real estate investment trusts ,subparagraph 7,a7 shall not apply in the case of a partnership which meets each of the following requirements3 7,i7 ,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 traded4 7,,ii7 #ej percent or more of the capital and profits interests of such partnership are owned1 directly or indirectly1 at all times during the taxable year by such real estate investment trust 7determined with the application of section #bfg7;c774 7,,iii7 ,such partnership meets the requirements of paragraphs 7#b71 7#c71 and 7#d7 of section #hef7;c74 7ii7 ,certain partnerships owning other publicly traded partnerships ,subparagraph 7,a7 shall not apply in the case of a partnership which meets each of the following requirements3 7,i7 ,substantially all of the assets of such partnership consist of interests in one or more publicly traded partnerships 7determined without regard to subsection 7b77#b774 7,,ii7 ,substantially all of the income of such partnership is ordinary income or section #abca gain 7as defined in section #abca7;a77#c774 7,e7 ,transitional rule ,subparagraph 7,a7 shall not apply to any taxable year of the partnership beginning before the date which is #aj years after ,january #a1 #bjad4 4 7d7 ,imposition of penalty on underpayments 7#a7 ,in general ,subsection 7b7 of section #fffb of the ,internal ,revenue ,code of #aihf is amended by inserting after paragraph 7#g7 the following new paragraph3 7#h7 ,the application of section #gaj7;e7 or the regulations or other guidance prescribed under section #gaj7;h7 to prevent the avoidance of the purposes of section #gaj4 4 7#b7 ,amount of penalty 7,a7 ,in general ,section #fffb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7k7 ,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 7b77#h71 subsection 7a7 shall be applied with respect to such portion by substituting #dj percent for #bj percent4 4 7,b7 ,conforming amendment ,subparagraph 7,b7 of section #fffb;,a7e77#b7 is amended by striking or 7i7 and inserting 1 7i71 or 7k74 7#c7 ,special rules for application of reasonable cause exception ,subsection 7c7 of section #fffd is amended-- 7,a7 by redesignating paragraphs 7#c7 and 7#d7 as paragraphs 7#d7 and 7#e71 respectively2 7,b7 by striking paragraph 7#c7 in paragraph 7#e77;,a71 as so redesignated1 and inserting paragraph 7#d72 and 7,c7 by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,special rule for underpayments attributable to investment management services 7,a7 ,in general ,paragraph 7#a7 shall not apply to any portion of an underpayment to which section #fffb applies by reason of subsection 7b77#h7 unless-- 7i7 the relevant facts affecting the tax treatment of the item are adequately disclosed1 7ii7 there is or was substantial authority for such treatment1 and 7iii7 the taxpayer reasonably believed that such treatment was more likely than not the proper treatment4 7,b7 ,rules relating to reasonable belief ,rules similar to the rules of subsection 7d77#c7 shall apply for purposes of subparagraph 7,a77iii74 4 7e7 ,income and loss from investment services partnership interests taken into account in determining net earnings from self-,employment 7#a7 ,internal revenue code 7,a7 ,in general ,section #adjb7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of paragraph 7#af71 by striking the period at the end of paragraph 7#ag7 and inserting 2 and1 and by inserting after paragraph 7#ag7 the following new paragraph3 7#ah7 notwithstanding the preceding provisions of this subsection1 in the case of any individual engaged in the trade or business of providing services described in section #gaj7;c77#b7 with respect to any entity1 investment services partnership income or loss 7as defined in subsection 7m77 of such individual with respect to such entity shall be taken into account in determining the net earnings from self-employment of such individual4 4 7,b7 ,investment services partnership income or loss ,section #adjb of the ,internal ,revenue ,code is amended by adding at the end the following new subsection3 7m7 ,investment services partnership income or loss ,for purposes of subsection 7a7-- 7#a7 ,in general ,the term investment services partnership income or loss means1 with respect to any investment services partnership interest 7as defined in section #gaj7;c771 the net of-- 7,a7 the amounts treated as ordinary income or ordinary loss under subsections 7b7 and 7e7 of section #gaj with respect to such interest1 7,b7 all items of income1 gain1 loss1 and deduction allocated to such interest1 and 7,c7 the amounts treated as realized from the sale or exchange of property other than a capital asset under section #gea with respect to such interest4 7#b7 ,exception for qualified capital interests ,a rule similar to the rule of section #gaj7;d7 shall apply for purposes of applying paragraph 7#a77;,b77ii74 4 7#b7 ,social security ,act ,section #baa7;a7 of the ,social ,security ,act is amended by striking and at the end of paragraph 7#ae71 by striking the period at the end of paragraph 7#af7 and inserting 2 and1 and by inserting after paragraph 7#af7 the following new paragraph3 7#ag7 ,notwithstanding the preceding provisions of this subsection1 in the case of any individual engaged in the trade or business of providing services described in section #gaj7;c77#b7 of the ,internal ,revenue ,code of #aihf with respect to any entity1 investment services partnership income or loss 7as defined in section #adjb7m7 of such ,code7 shall be taken into account in determining the net earnings from self-employment of such individual4 4 7f7 ,conforming amendments 7#a7 ,subsection 7d7 of section #gca of the ,internal ,revenue ,code of #aihf is amended by inserting section #gaj7;b77#d7 7relating to distributions of partnership property71 after to the extent otherwise provided by4 7#b7 ,section #gda of the ,internal ,revenue ,code of #aihf is amended by inserting or section #gaj 7relating to special rules for partners providing investment management services to partnerships7 before the period at the end4 7#c7 ,the table of sections for part ,i of subchapter ,k of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #gaj4 ,special rules for partners providing investment management services to partnerships4 4 7g7 ,effective date 7#a7 ,in general ,except as otherwise provided in this subsection1 the amendments made by this section shall apply to taxable years ending after ,december #ca1 #bjac4 7#b7 ,partnership taxable years which include effective date ,in applying section #gaj7;a7 of the ,internal ,revenue ,code of #aihf 7as added by this section7 in the case of any partnership taxable year which includes ,january #a1 #bjad1 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 date4 7#c7 ,dispositions of partnership interests 7,a7 ,in general ,section #gaj7;b7 of such ,code 7as added by this section7 shall apply to dispositions and distributions after ,december #ca1 #bjac4 7,b7 ,indirect dispositions ,the amendments made by subsection 7b7 shall apply to transactions after ,december #ca1 #bjac4 7#d7 ,other income and gain in connection with investment management services ,section #gaj7;e7 of such ,code 7as added by this section7 shall take effect on ,january #a1 #bjad4 ,c ,close loophole for corporate jet depreciation #dba4 ,general aviation aircraft treated as #g-year property 7a7 ,in general ,subparagraph 7,c7 of section #afh7;e77#c7 of the ,internal ,revenue ,code of #aihf 7relating to classification of certain property7 is amended by striking and at the end of clause 7iv71 by redesignating clause 7v7 as clause 7vi71 and by inserting after clause 7iv7 the following new clause3 7v7 any general aviation aircraft1 and 4 7b7 ,class life ,paragraph 7#c7 of section #afh7;g7 ,internal ,revenue ,code of #aihf is amended by inserting after subparagraph 7,e7 the following new subparagraph3 7,f7 ,general aviation aircraft4 ,in the case of any general aviation aircraft1 the recovery period used for purposes of paragraph 7#b7 shall be #ab years4 4 7c7 ,general aviation aircraft ,subsection 7i7 of section #afh ,internal ,revenue ,code of #aihf is amended by inserting after paragraph 7#ai7 the following new paragraph3 7#bj7 ,general aviation aircraft ,the term general aviation aircraft means any airplane or helicopter 7including airframes and engines7 not used in commercial or contract carrying of passengers or freight1 but which primarily engages in the carrying of passengers4 4 7d7 ,effective date ,this section shall be effective for property placed in service after ,december #ca1 #bjac4 ,d ,repeal oil subsidies #dca4 ,repeal of deduction for intangible drilling and development costs in the case of oil and gas wells 7a7 ,in general ,section #bfc7;c7 of the ,internal ,revenue ,code of #aihf 7relating to intangible drilling and development costs7 is amended by adding at the end the following new sentence3 ,this subsection shall not apply in the case of oil and gas wells with respect to amounts paid or incurred after ,december #ca1 #bjac44 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid or incurred after ,december #ca1 #bjac4 #dcb4 ,repeal of deduction for tertiary injectants 7a7 ,in general ,part ,,vi of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf 7relating to itemized deductions for individuals and corporations7 is amended by striking section #aic 7relating to tertiary injectants74 7b7 ,clerical amendment ,the table of sections for part ,,vi of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by striking the item relating to section #aic4 7c7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred after ,december #ca1 #bjac4 #dcc4 ,repeal of percentage depletion for oil and gas wells 7a7 ,in general ,section #fac;,a of the ,internal ,revenue ,code of #aihf 7relating to limitation on percentage depletion in the case of oil and gas wells7 is amended to read as follows3 #fac;,a4 ,percentage depletion not allowed in case of oil and gas wells ,the allowance for depletion under section #faa with respect to any oil and gas well shall be computed without regard to section #fac4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4 #dcd4 ,section #aii deduction not allowed with respect to oil1 natural gas1 or primary products thereof 7a7 ,in general ,subparagraph 7,b7 of section #aii7;c77#d7 of the ,internal ,revenue ,code of #aihf 7relating to income attributable to domestic production activities7 is amended-- 7#a7 by striking or at the end of clause 7ii71 7#b7 by striking the period at the end of clause 7iii7 and inserting in lieu thereof 1 or1 and 7#c7 by adding at the end thereof the following new clause3 7iv7 the production1 refining1 processing1 transportation1 or distribution of oil1 natural gas1 or any primary product 7within the meaning of subsection 7d77#i77 thereof4 4 7b7 ,conforming amendment ,paragraph 7#i7 of section #aii7;d7 is amended to read as follows3 7#i7 ,primary product ,for purposes of subsection 7c77#d77;,b77iv71 the term primary product has the same meaning as when used in section #ibg7;a77#b77;,c7 as in effect before its repeal4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4 #dce4 ,repeal oil and gas working interest exception to passive activity rules 7a7 ,in general ,paragraph 7#c7 of section #dfi7;c7 of the ,internal ,revenue ,code of #aihf 7relating to passive activity defined7 is amended by adding at the end thereof the following new subparagraph-- 7,c7 ,termination ,subparagraph 7,a7 shall not apply for any taxable year beginning after ,december #ca #bjac4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4 #dcf4 ,repeal enhanced oil recovery credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #aof the ,internal ,revenue ,code of #aihf 7relating to business related credits7 is amended by striking section #dc 7relating to enhanced oil recovery credit74 7b7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by striking the item relating to section #dc4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4 #dcg4 ,uniform seven-year amortization for geological and geophysical expenditures 7a7 ,in general ,paragraph 7#a7 of section #afg7;h7 of the ,internal ,revenue ,code of #aihf 7relating to amortization of geological and geophysical expenditures7 is amended by striking #bd-month and inserting in lieu thereof #g-year4 7b7 ,conforming amendments ,section #afg7;h7 is amended-- 7#a7 by striking #bd-month in paragraph 7#d7 and inserting in lieu thereof #g-year1 and 7#b7 by striking paragraph 7#e74 7c7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred after ,december #ca1 #bjac4 #dch4 ,repeal marginal well production credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #aof the ,internal ,revenue ,code of #aihf 7relating to business related credits7 is amended by striking section #de;,i 7relating to credit for producing oil and gas from marginal wells74 7b7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by striking the item relating to section #de;,i4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4 ,e ,dual capacity taxpayers #dda4 ,modifications of foreign tax credit rules applicable to dual capacity taxpayers 7a7 ,in general ,section #ija of the ,internal ,revenue ,code of #aihf 7relating to credit for taxes of foreign countries and of possessions of the ,united ,states7 is amended by redesignating subsection 7n7 as subsection 7o7 and by inserting after subsection 7m7 the following new subsection3 7n7 ,special rules relating to dual capacity taxpayers 7#a7 ,general rule ,notwithstanding any other provision of this chapter1 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 7determined in accordance with regulations7 which would have been required to be paid if the taxpayer were not a dual capacity taxpayer4 7#b7 ,dual capacity taxpayer ,for purposes of this subsection1 the term dual capacity taxpayer means1 with respect to any foreign country or possession of the ,united ,states1 a person who-- 7,a7 is subject to a levy of such country or possession1 and 7,b7 receives 7or will receive7 directly or indirectly a specific economic benefit 7as determined in accordance with regulations7 from such country or possession4 7#c7 ,regulations ,the ,secretary may issue such regulations or other guidance as is necessary or appropriate to carry out the purposes of this subsection4 4 7b7 ,contrary treaty obligations upheld ,the amendments made by this section shall not apply to the extent contrary to any treaty obligation of the ,united ,states4 7c7 ,effective date ,the amendments made by this section shall apply to amounts that1 if such amounts were an amount of tax paid or accrued1 would be considered paid or accrued in taxable years beginning after ,december #ca1 #bjac4 #ddb4 ,separate basket treatment taxes paid on foreign oil and gas income 7a7 ,separate basket for foreign tax credit ,paragraph 7#a7 of section #ijd7;d7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of subparagraph 7,a71 by striking the period at the end of subparagraph 7,b7 and inserting 1 and1 and by adding at the end the following3 7,c7 combined foreign oil and gas income 7as defined in section #ijg7;b77#a774 4 7b7 ,coordination ,section #ijd7;d77#b7of such ,code is amended by redesignating subparagraphs 7,j7 and 7,k7 as subparagraphs 7,k7 and 7,l7 and by inserting after subparagraph 7,i7 the following3 7,j7 ,coordination with combined foreign oil and gas income ,for purposes of this section1 passive category income and general category income shall not include combined foreign oil and gas income 7as defined in section #ijg7;b77#a774 4 7c7 ,conforming amendments 7#a7 ,section #ijg7;a7 is hereby repealed4 7#b7 ,section #ijg7;c77#d7 is hereby repealed4 7#c7 ,section #ijg7;f7 is hereby repealed4 7d7 ,effective dates 7#a7 ,in general ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4 7#b7 ,transitional rules 7,a7 ,carryovers ,any unused foreign oil and gas taxes which under section #ijg7;f7 of such ,code 7as in effect before the amendment made by subsection 7c77#c77 would have been allowable as a carryover to the taxpayer's first taxable year beginning after ,december #ca1 #bjac 7without regard to the limitation of paragraph 7#b7 of such section #ijg7;f7 for first taxable year7 shall be allowed as carryovers under section #ijd7;c7 of such ,code in the same manner as if such taxes were unused taxes under such section #ijd7;c7 with respect to foreign oil and gas extraction income4 7,b7 ,losses ,the amendment made by subsection 7c77#b7 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 ,act4 ,f ,repeal of sequestration #dea4 ,repeal of sequestration ,section #bea;,a of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe is repealed4