SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Communities Investment Act
of 1999''.

SEC. 2. COMMUNITY DEVELOPMENT LOAN GUARANTEES.

    (a) Maximum Amount of Outstanding Guarantees for a Single Issuer.--
Section 108 of the Housing and Community Development Act of 1974 (42
U.S.C. 5308) is amended by striking subsection (b) and inserting the
following new subsection:
    ``(b) Maximum Amount of Outstanding Guarantees.--The maximum
aggregate outstanding amount of notes and obligations of a single
issuer guaranteed under this section shall be an amount determined by
the Secretary based on the amount of the grant approval for the issuer
under section 106 or 107, the fiscal condition of the issuer, and the
potential return on investment of the projects to be undertaken with
the proceeds of such notes and obligations, but may not in any case
exceed the discounted present value of the grants that the issuer would
receive over a period not to exceed 20 years if the issuer's annual
grant amount over such period were equal to 80 percent of the current
grant approval for the issuer.''.
    (b) Stakeholder Participation.--Section 108 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5308) is amended by adding
at the end the following new subsection:
    ``(s) Stakeholder Participation.--
            ``(1) Requirement.--The Secretary shall provide that an
        issuer of notes or obligations under this section shall, in
        complying with any community participation requirements
        (including the requirements under section 104(a)) applicable to
        the development of activities to be funded with the proceeds of
        such notes or obligations guaranteed under this section,
        include participation of major stakeholders in the community in
        which such activities will be carried out.
            ``(2) Definition.--For purposes of this subsection, the
        term `stakeholder' means a public or private organizational
        entity whose future well-being depends upon the applicant's
        continued social and economic viability, and includes the
        representatives of the following community interests:
                    ``(A) Business.
                    ``(B) Banking.
                    ``(C) Education.
                    ``(D) Public health and safety.
                    ``(E) Labor.
                    ``(F) Community-based development organizations.
                    ``(G) Arts, cultural, religious, philanthropic,
                professional, and civic organizations.''.

SEC. 3. COLLATERAL FOR FHLB ADVANCES.

    Section 10(a)(4) of the Federal Home Loan Bank Act (12 U.S.C.
1430(a)(4)) is amended by striking the second sentence.

SEC. 4. AUTHORITY TO MAKE ADVANCES TO NONMEMBER MORTGAGEES.

    Section 10b of the Federal Home Loan Bank Act (12 U.S.C. 1430b) is
amended to read as follows:

``SEC. 10B. ADVANCES TO NONMEMBER MORTGAGEES.

    ``(a) Authority.--Each Federal home loan bank may make advances to
a nonmember mortgagee, except that such advances may be used only for
community lending (as such term is defined in section 10(k)).
    ``(b) Nonmember Mortgagee Defined.--For purposes of subsection (a),
the term `nonmember mortgagee' means any entity--
            ``(1) that is--
                    ``(A) a State or local housing finance agency or
                Indian housing authority (including any subsidiary of
                such agency or authority) approved under title II of
                the National Housing Act, which--
                            ``(i) is a chartered institution having
                        succession; and
                            ``(ii) is subject to the inspection and
                        supervision of a governmental agency;
                    ``(B) a community development financial institution
                that--
                            ``(i) is not an insured depository
                        institution or a subsidiary of an insured
                        depository institution; and
                            ``(ii) at the time an advance under this
                        section is made, is certified as a community
                        development financial institution under the
                        Community Development Banking and Financial
                        Institutions Act of 1994; and
                            ``(iii) is a chartered institution having
                        succession; or
                    ``(C) a State or local economic development agency
                that--
                            ``(i) is chartered under State law; and
                            ``(ii) is an institution having succession;
                        and
            ``(2) whose principal activity in the mortgage field
        consists of lending the institution's own funds.
    ``(c) Security.--Advances under subsection (a) shall be secured in
accordance with the requirements of section 10.
    ``(d) Terms and Conditions.--Advances made under this section shall
be made at the same rates of interest and upon the same terms and
conditions as are comparable extensions of credit to member
institutions.''.

SEC. 5. COMMUNITY LENDING FUND.

    Section 10 of the Federal Home Loan Bank Act (12 U.S.C. 1430) is
amended by adding at the end the following new subsection:
    ``(k) Community Lending Fund.--
            ``(1) In general.--Subject to regulations prescribed by the
        Board to carry out this subsection, each Federal home loan bank
        shall establish a Community Lending Fund, which the bank shall
        use to facilitate community lending by its members and
        nonmember mortgagees.
            ``(2) Use of assets of community lending funds.--A bank may
        use amounts in its Community Lending Fund only to provide
        grants, subsidies, and subsidized advances to its members and
        nonmember mortgagees for use for community lending activities.
            ``(3) Low- and moderate-income targeting.--Not less than 70
        percent of the aggregate amount of assistance provided by a
        bank from a Community Lending Fund shall be used for the
        support of community lending activities that benefit low- and
        moderate-income persons.
            ``(4) Local priorities.--Each bank--
                    ``(A) shall give priority for assistance from the
                Community Lending Fund of the bank for projects located
                in empowerment zones and enterprise communities
                designated under part I of subchapter U of chapter 1 of
                the Internal Revenue Code of 1986 (26 U.S.C. 1391 et
                seq.); and
                    ``(B) may establish such other priorities for the
                types of projects to receive assistance from the
                Community Lending Fund of the bank as the bank
                considers appropriate, and to which the Board shall
                defer, if such priorities are consistent with the
                safety and soundness of the bank and the provisions of
                this subsection. .
            ``(5) Coordination of activities.--The Board shall require
        the banks, to the extent practicable, to coordinate their
        activities pursuant to this subsection with any other State or
        Federal programs intended to facilitate community lending.
            ``(6) Report.--Each member and nonmember mortgagee
        receiving advances or assistance from a Community Lending Fund
        established by a bank shall report annually to the bank
        regarding the use of such advances or assistance.
            ``(7) Contribution to fund.--Each bank shall annually
        contribute 10 percent of the net earnings of that bank (after
        deducting expenses related to section 10(j) and operating
        expenses) to its Community Lending Fund. Each bank may
        contribute additional moneys to the Fund, and may accept for
        deposit into the Fund moneys from other parties.
            ``(8) Suspension of contributions.--
                    ``(A) In general.-- If a bank finds that the
                payments required under paragraph (7) are contributing
                to the financial instability of such bank, it may apply
                to the Board for a temporary suspension of such
                payments. The Board shall make a determination of
                whether the bank is financially unstable and whether
                such payments are contributing to such instability, and
                [may/shall] suspend such bank's payments to its
                Community Lending Fund if finds in the affirmative with
                respect to both such questions.
                    ``(B) Factors to be considered.--In determining the
                financial stability of a bank for purposes of this
                paragraph, the Board shall consider such factors as--
                            ``(i) whether the bank's earnings are
                        severely depressed;
                            ``(ii) whether there has been a substantial
                        decline in membership capital; and
                            ``(iii) whether there has been a
                        substantial reduction in advances outstanding.
                    ``(C) Review of applications.--The Board shall
                review any application under this paragraph and any
                supporting financial data and issue a written decision
                approving or disapproving such application. The Board's
                decision shall be accompanied by specific findings and
                reasons for its action.
                    ``(D) Designation of suspension period.--If the
                Board grants a suspension, it shall specify the period
                of time that such suspension shall remain in effect and
                shall continue to monitor the bank's financial
                condition during such suspension.
                    ``(E) Suspensions prohibited under certain
                circumstances.--The Board shall not suspend payment to
                the Community Lending Fund of a bank if the bank's
                reduction in earnings is a result of--
                            ``(i) a change in the terms for advances to
                        members which is not justified by market
                        conditions;
                            ``(ii) inordinate operating and
                        administrative expenses; or
                            ``(iii) mismanagement.
            ``(9) Regulations.--
                    ``(A) In general.--Not later than 1 year after the
                date of the enactment of this Act, the Board shall
                prescribe regulations to implement this subsection.
                    ``(B) Limitations, restrictions, and other
                requirements.--Subject to the requirements of this
                subsection, such regulations--
                            ``(i) may specify activities, restrictions,
                        and limitations for the use by the banks of
                        amounts from Community Lending Funds;
                            ``(ii) may specify priorities for the use
                        of such advances;
                            ``(iii) shall ensure that assistance
                        provided from a Community Lending Fund will be
                        used only for community lending to assist
                        projects for which adequate long-term
                        monitoring is available to guarantee
                        requirements established pursuant to this
                        subsection are satisfied;
                            ``(iv) shall ensure that any subsidies
                        provided under this subsection by Banks to
                        member institutions and nonmember mortgagees
                        are passed on to the ultimate borrower;
                            ``(v) shall specify standards for
                        determining benefit for low- and moderate-
                        income persons, for purposes of paragraph (3);
                        and
                            ``(vi) shall establish uniform standards
                        for assistance from Community Lending Funds and
                        community lending by member institutions and
                        nonmember mortgagees supported by such
                        assistance.
            ``(10) Advisory council.--Each bank shall appoint an
        Advisory Council of 7 to 15 persons drawn from stakeholders (as
        such term is defined in section 108(s) of the Housing and
        Community Development Act of 1974 (42 U.S.C. 5308(s)) in its
        district. The Advisory Council shall meet with representatives
        of the board of directors of the Bank quarterly to advise the
        Bank on community lending needs in the district and on the
        utilization of the Community Lending Fund of the bank for
        meeting such needs. Each Advisory Council established under
        this paragraph shall submit to the Board at least annually its
        analysis of the community lending activities carried out with
        amounts from the Community Lending Fund of the bank by which
        the Committee is appointed.
            ``(11) Reports to congress.--
                    ``(A) The Board shall monitor and annually submit a
                report to the Congress and the Advisory Council for
                each bank the support of community lending by the banks
                and the utilization of amounts from Community Lending
                Funds.
                    ``(B) The analyses submitted by the Advisory
                Councils to the Board under paragraph (10) shall be
                included as part of the reports required by this
                paragraph.
                    ``(C) The Comptroller General of the United States
                shall audit and evaluate the program under this
                subsection after such program has been operating for 2
                years. The Comptroller General shall submit a report to
                the Congress on the conclusions of the audit and
                recommend improvements or modifications to the program.
            ``(12) Definitions.--For purposes of this subsection, the
        following definitions shall apply:
                    ``(A) Community lending.--The term `community
                lending' means providing financing for activities that
                meet the requirements for eligibility, under section
                105 of the Housing and Community Development Act of
                1974 (42 U.S.C. 5305), for assistance with amounts for
                grants under title I of such Act.
                    ``(B) Low- and moderate-income persons.--The term
                `low- and moderate-income persons has the meaning given
                such term in section 102 of the Housing and Community
                Development Act of 1974 (42 U.S.C. 5302).
                    ``(C) Nonmember mortgage.--The term `nonmember
                mortgagee' has the meaning given such term in section
                10B(b) of this Act.''.
    (b) Funding for Community Lending Funds.--Section 21B(f)(2)(C) of
the Federal Home Loan Bank Act (12 U.S.C. 1441b(f)(2)(C)) is amended to
read as follows:
                    ``(C) Payments by federal home loan banks.--
                            ``(i) Refcorp funding.--To the extent that
                        the amounts available pursuant to subparagraphs
                        (A) and (B) are insufficient to cover the
                        amount of interest payments, each Federal home
                        loan bank shall pay to the Funding Corporation
                        in each calendar year, 10 percent of the net
                        earnings of that bank (after deducting expenses
                        relating to section 10(j) and operating
                        expenses).
                            ``(ii) Annuity value.--The Board shall
                        annually determine the extent to which the
                        value of the aggregate amounts paid by the
                        banks exceeds or falls short of the value of an
                        annuity of $300,000,000 per year that commences
                        on the issuance date and ends on the final
                        scheduled maturity date of the obligations, and
                        shall select appropriate present value factors
                        for making such determinations.
                            ``(iii) Adjustment of period of banks'
                        obligations.--The Board shall extend or shorten
                        the term of the banks' payment obligations
                        under this subparagraph, as necessary to ensure
                        that the value of all payments made by the
                        banks under this paragraph is equivalent to the
                        value of such an annuity.
                            ``(iv) Extension of period beyond maturity
                        dates of underlying obligations.--If the Board
                        extends the term of payments beyond the final
                        scheduled maturity date for the obligations,
                        each bank shall continue to pay 10 percent of
                        its net earnings (after deducting expenses
                        relating to section 10(j) and operating
                        expenses) to the general fund of the Treasury
                        until the value of all such payments by the
                        banks is equivalent to the value of such an
                        annuity.
                            ``(v) Final year adjustment.--In the final
                        year in which the banks are required to make
                        any payment to the general fund of the Treasury
                        under clause (iv), if the dollar amount
                        represented by 10 percent of the net earnings
                        of the banks exceeds the remaining obligation
                        of the banks to the Treasury, the Finance Board
                        shall reduce the percentage pro rata to a level
                        sufficient to pay the remaining obligation.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b)
shall become effective on January 1, 2000.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Family Business
Preservation Act''.

SEC. 2. REDUCED ESTATE TAX RATE ON FAMILY-OWNED BUSINESS INTERESTS.

    (a) In General.--Part I of subchapter A of chapter 11 of the
Internal Revenue Code of 1986 (relating to tax imposed) is amended by
adding at the end the following new section:

``SEC. 2003. REDUCED RATE ON FAMILY-OWNED BUSINESS INTERESTS.

    ``(a) In General.--In the case of an estate of a decedent to which
this section applies, the tax imposed by section 2001 shall not exceed
the sum of--
            ``(1) a tax computed at the rates and in the manner as if
        this section had not been enacted on the greater of--
                    ``(A) the sum described in section 2001(c)(1)
                reduced by the qualified family-owned business
                interests, or
                    ``(B) the sum (if any) described in section
                2001(c)(1) taxed at a rate below the applicable rate,
                plus
            ``(2) a tax equal to the applicable rate of the portion of
        the taxable estate in excess of the amount determined under
        paragraph (1).
    ``(b) Estates to Which Section Applies.--This section shall apply
to an estate if--
            ``(1) the decedent was (at the date of his or her death) a
        citizen of the United States,
            ``(2) the sum of--
                    ``(A) the value of the qualified family-owned
                business interests which are included in determining
                the gross estate and which are acquired from or passed
                from the decedent to a qualified heir of the decedent,
                and
                    ``(B) the amount (taken into account under
                subsection 2001(b)(1)(B)) of the adjusted taxable gifts
                of such interests to members of the decedent's family,
        exceeds 50 percent of the adjusted gross estate, and
            ``(3) during the 8-year period ending on the date of the
        decedent's death there have been periods aggregating 5 years or
        more during which--
                    ``(A) such interests were owned by the decedent or
                a member of the decedent's family, and
                    ``(B) there was material participation by the
                decedent or a member of the decedent's family in the
                operation of the business to which such interests
                relate.
    ``(c) Applicable Rate.--For purposes of this section, the
applicable rate is--
            ``(1) 15 percent if the requirement of subsection (b)(3)(B)
        is met by a member of the decedent's family, and
            ``(2) 20 percent in any other case.
    ``(d) Qualified Family-Owned Business Interest.--
            ``(1) In general.--For purposes of this section, the term
        `qualified family-owned business interest' means--
                    ``(A) an interest as a proprietor in a trade or
                business carried on as a proprietorship;
                    ``(B) an interest as a partner in a partnership
                carrying on a trade or business, if such partnership
                had 15 or fewer partners; or
                    ``(C) stock in a corporation carrying on a trade or
                business if such corporation had not more than the
                number of shareholders specified in section
                1361(b)(1)(A).
        Such term shall not include any interest which is readily
        tradable on an established securities market or otherwise.
            ``(2) Rules for applying paragraph (1).--For purposes of
        paragraph (1), rules similar to the rules of paragraphs (2),
        (3), (4), and (6) of section 6166(b) shall apply.
    ``(e) Recapture of Tax Benefit if Interests Not Held for 10
Years.--
            ``(1) In general.--If--
                    ``(A) during the 10-year period beginning on the
                date of death of the decedent--
                            ``(i)(I) any portion of a qualified family-
                        owned business interest is distributed, sold,
                        exchanged, or otherwise disposed of, or
                            ``(II) money and other property
                        attributable to such an interest is withdrawn
                        from such trade or business, and
                    ``(B) the aggregate of such distributions, sales,
                exchanges, or other dispositions and withdrawals equals
                or exceeds 20 percent of the value of such interest, or
        there is hereby imposed an additional estate tax.
            ``(2) Additional estate tax.--
                    ``(A) In general.--The amount of the additional
                estate tax imposed by paragraph (1) shall be the
                applicable percentage of the excess of what would have
                been the estate tax liability but for subsection (a)
                over the adjusted estate tax liability.
                    ``(B) Applicable percentage.--For purposes of
                subparagraph (A), the term `applicable percentage'
                means 100 percent reduced (but not below zero) by the
                product of--
                            ``(i) 10 percentage points, and
                            ``(ii) the number of years (if any) after
                        the date of the decedent's death which the year
                        during which the additional estate tax is
                        imposed by paragraph (1) is after the 1st year
                        after the date of the decedent's death.
                    ``(C) Adjusted estate tax liability.--For purposes
                of subparagraph (A), the term `adjusted estate tax
                liability' means the estate tax liability increased by
                the amount (if any) of any prior additional estate tax
                imposed by subsection (f).
                    ``(D) Estate tax liability.--For purposes of this
                paragraph, the term `estate tax liability' means the
                tax imposed by section 2001 reduced by the credits
                allowable against such tax.
            ``(3) Certain rules to apply.--For purposes of this
        subsection, rules similar to the rules of subparagraphs (B),
        (C), and (D) of section 6166(g)(1) shall apply.
    ``(f) Recapture of Portion of Tax Benefit if Heirs Cease to
Materially Participate During 10 Years After Death.--
            ``(1) In general.--If--
                    ``(A) the applicable rate which applied under
                subsection (a) to the estate of the decedent was 15
                percent,
                    ``(B) at any time during the 10-year period
                beginning on the date of death of the decedent, no
                qualified heir materially participates in the operation
                of the business to which the qualified family-owned
                business interests relate, and
                    ``(C) there is no recapture under subsection (e) on
                or before the earliest date during such 10-year period
                that no qualified heir so materially participated,
        there is hereby imposed an additional estate tax.
            ``(2) Additional estate tax.--The amount of the additional
        estate tax imposed by paragraph (1) shall be the applicable
        percentage of the excess of what would have been the estate tax
        liability but for subsection (c)(1) over the estate tax
        liability.
            ``(3) Definitions.--For purposes of paragraph (2), the
        terms `applicable percentage' and `estate tax liability' have
        the meanings given to such terms by subsection (e).
    ``(g) Other Definitions.--For purposes of this section, the terms
`qualified heir' and `member of the family' have the meanings given to
such terms by section 2032A(e).''
    (b) Clerical Amendment.--The table of sections for part I of
subchapter A of chapter 11 of such Code is amended by adding at the end
the following new item:

                              ``Sec. 2003. Reduced rate on family-owned
                                        business interests.''
    (c) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying after the date of the enactment of
this section.

SEC. 3. LIMITATION ON 4 PERCENT RATE OF INTEREST ON ESTATE TAX EXTENDED
              UNDER SECTION 6166 NOT TO APPLY TO ESTATE TAX
              ATTRIBUTABLE TO QUALIFIED FAMILY-OWNED BUSINESS
              INTERESTS.

    (a) In General.--Paragraph (2) of section 6601(j) of the Internal
Revenue Code of 1986 (relating to 4-percent portion) is amended by
adding at the end the following new flush sentence:
        ``Subparagraph (B) shall not take into account the amount of
        the tax imposed by chapter 11 which is attributable to
        qualified family-owned business interests (as defined in
        section 2003(b)) unless an election is in effect under section
        2032A with respect to the estate.''.
    (b) Effective Date.--The amendment made by this section shall apply
to estates of decedents dying after the date of the enactment of this
section.

SEC. 4. EXTENSION OF ALTERNATE VALUATION DATE TO 40 MONTHS WITH RESPECT
              TO ESTATE CONSISTING LARGELY OF QUALIFIED FAMILY-OWNED
              BUSINESS INTERESTS.

    (a) In General.--Section 2032 of the Internal Revenue Code of 1986
(relating to alternate valuation) is amended by redesignating
subsections (c) and (d) as subsections (d) and (e), respectively, and
by inserting after subsection (b) the following new subsection:
    ``(c) Estates Largely Consisting of Qualified Family-Owned Business
Interests.--In the case of an estate to which section 2003 applies--
            ``(1) subsection (a) shall be applied by substituting `40
        months' for `6 months' each place it appears, and
            ``(2) section 6075(a) (relating to time for filing estate
        tax return) shall be applied by substituting `43 months' for `9
        months'.''
    (b) Effective Date.--The amendment made by this section shall apply
to estates of decedents dying after the date of the enactment of this
section.

SEC. 5. INCREASE IN GIFT TAX EXCLUSION.

    (a) In General.--Subsection (b) of section 2503 of the Internal
Revenue Code of 1986 (relating to taxable gifts) is amended by adding
at the end the following new sentence: ``In the case of gifts made
during a calendar year by a donor to ancestors or lineal descendents of
the donor, the aggregate amount of such gifts which are not included in
the total amount of gifts by reason of this subsection shall not be
less than 15 percent of the donor's earned income (as defined in
section 32(c)(2)) for the taxable year ending with or within such
calendar year.''
    (b) Effective Date.--The amendment made by subsection (a) shall
apply to gifts made in calendar years beginning after the date of the
enactment of this section.

SEC. 6. INCREASE IN UNIFIED ESTATE AND GIFT TAX CREDITS.

    (a) Estate Tax Credit.--
            (1) Subsection (a) of section 2010 of the Internal Revenue
        Code of 1986 (relating to unified credit against estate tax) is
        amended by striking ``$192,800'' and inserting ``the applicable
        credit amount''.
            (2) Section 2010 of such Code is amended by redesignating
        subsection (c) as subsection (d) and by inserting after
        subsection (b) the following new subsection:
    ``(c) Applicable Credit Amount.--For purposes of this section--
            ``(1) In general.--The applicable credit amount is the
        amount of the tentative tax which would be determined under the
        rate schedule set forth in section 2001(c) if the amount with
        respect to which such tentative tax is to be computed were
        $600,000.
            ``(2) Cost-of-living adjustments.--In the case of any
        decedent dying in a calendar year after December 31, 1995, the
        $600,000 amount set forth in paragraph (1) shall be increased
        by an amount equal to--
                    ``(A) $600,000, multiplied by
                    ``(B) the cost-of-living adjustment determined
                under section 1(f)(3) for such calendar year by
                substituting `calendar year 1996' for `calendar year
                1992' in subparagraph (B) thereof.
        Any increase determined under the preceding sentence shall be
        rounded to the nearest multiple of $1,000.''
            (3) Paragraph (1) of section 6018(a) of such Code is
        amended by striking ``$600,000'' and inserting ``$600,000
        (adjusted as provided in section 2010(c)(2)''.
    (b) Unified Gift Tax Credit.--Paragraph (1) of section 2505(a) of
such Code is amended by striking ``$192,800'' and inserting ``the
applicable credit amount in effect under section 2010(c) for such
calendar year''.
    (c) Effective Date.--The amendments made by this section shall
apply to the estates of decedents dying, and gifts made, after December
31, 1995.


SECTION 1. AMENDMENTS RELATED TO SUPPLEMENTAL WATER SUPPLY AND FUNDING.

    (a) Supplemental Water Supply.--Section 106(a) of the San Luis Rey
Indian Water Rights Settlement Act (Public Law 100-675; 102 Stat. 4000)
is amended to read as follows:
    ``(a) Obligation To Arrange for Development of Water for Bands and
Local Entities.--
            ``(1) To provide a supplemental water supply for the
        benefit of the Bands and the local entities, subject to the
        provisions of the settlement agreement, the Secretary shall--
                    ``(A) arrange for the development of not more than
                16,000 acre-feet per year of supplemental water from
                public lands within the boundaries of the State of
                California outside the service area of the Central
                Valley Project;
                    ``(B) obtain not more than 16,000 acre-feet per
                year either from water conserved by the works
                authorized in title II, or through contract with the
                Metropolitan Water District of Southern California; or
                    ``(C) construct that portion of the works
                authorized in title II that is necessary to conserve
                16,000 acre-feet of water per year, and arrange to
                deliver such water to the Bands and the local entities
                by exchange or through contract with the Metropolitan
                Water District of Southern California and other parties
                with conveyance facilities.
            ``(2) Except as provided in subsection (d)(3), the right to
        the 16,000 acre-feet of water per year provided pursuant to
        paragraph (1) shall be held in perpetuity by the United States
        in trust for the San Luis Rey Indian Water Authority and shall
        be subject to the provisions of this title and of the
        settlement agreement governing the use and disposition of
        supplemental water. The use of such water shall not be subject
        to the provisions of section 204. Nothing in this section or
        any other provision of this title shall authorize the
        construction of any new dams, reservoirs, or surface water
        storage facilities.''.
    (b) Authorization of Appropriations.--Section 106(d) of such Act is
amended to read as follows:
    ``(d) Cost of Developing and Delivering Water.--
            ``(1) Use of federal funds.--There are authorized to be
        appropriated such funds as may be necessary to construct that
        portion of the works authorized in title II that is necessary
        to conserve 16,000 acre-feet of water per year. Neither the
        costs of delivering supplemental water nor the costs of
        operating, maintaining, and replacing the works necessary to
        conserve 16,000 acre-feet of water per year once those works
        have been constructed shall be borne by the United States, and
        no Federal appropriations are authorized for those purposes.
            ``(2) Operation and maintenance determination.--The
        Secretary shall determine the impact of the works constructed
        pursuant to subsection (a)(1)(C) on the cost of operation and
        maintenance and the existing regulating and storage capacity of
        the All American Canal and its Coachella Branch. If the works
        result in any added operation and maintenance costs which
        exceed the benefits derived from increasing the regulating and
        storage capacity of the canals to the Imperial Irrigation
        District or the Coachella Valley Water District, the Indian
        Water Authority and the local entities shall reimburse the
        agency which experiences such additional costs on an annual
        basis pursuant to the Secretary's determination.
            ``(3) Obligation to maintain conservation provided by
        works.--The right to 16,000 acre-feet of water per year
        obtained by the construction of the works described in
        subsection (a)(1)(C), although perpetual in nature, is subject
        to the works described in subsection (a)(1)(C) being
maintained so as to continue to conserve 16,000 acre-feet of water per
year as compared to the situation that existed prior to the
construction of those works. The Secretary shall determine the amount
of water so conserved by said works on an ongoing basis, and shall
allow said water to be delivered to the Indian Water Authority and the
local entities only to the extent that said water has actually been so
conserved by said works.''.
    (c) Limitation on Funds.--Section 203(e)(1) of such Act is amended
to read as follows:
            ``(1) Except as provided in section 106(d), no Federal
        funds may be used for construction of the works described in
        subsection (a)(1).''.
    (d) Beneficial Use in California.--Section 204(b) of such Act is
amended to read as follows:
    ``(b) Beneficial Use in California.--
            ``(1) The water identified in subsection (a) (other than
        that provided pursuant to section 106(a)) shall be made
        available, subject to the approval requirement established in
        section 203(c)(3), for consumptive use by California
        Contractors within their service areas according to their
        priorities under the Seven Party Agreement.
            ``(2) If the water made available under paragraph (1) is
        used during the term of the funding agreements by a California
        Contractor other than a Participating Contractor, or a
        Participating Contractor in an amount in excess of its
        proportionate share as measured by the amount of its
        contributed funds in relation to the total contributed funds,
        such contractor shall reimburse the Participating Contractors
        in an amount equal to the sum of--
                    ``(A) the annualized amounts of their respective
                contributions which funded the conservation of water so
                used;
                    ``(B) any added costs of operation and maintenance
                as determined in section 203(b); and
                    ``(C) related mitigation costs under section
                203(a)(2).
            ``(3) Reimbursements made pursuant to paragraph (3) shall
        be based on the costs each Participating Contractor incurs in
        contributing funds, its total contribution, and the life of the
        works.''.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Worker Mobility Act of
2014''.

SEC. 2. RELOCATION SUBSIDIES FOR THE LONG-TERM UNEMPLOYED.

    (a) In General.--The Secretary of Labor may grant a relocation
subsidy to an eligible individual who meets the requirements of this
section.
    (b) Meaning of Eligible Individual.--For purposes of this section,
an eligible individual is an individual who, as of the date of the
application for a relocation subsidy under this section--
            (1) is totally unemployed and has been totally unemployed
        for at least 26 consecutive weeks;
            (2) has exhausted all rights to regular compensation under
        the law of a State or under Federal law with respect to a
        benefit year (excluding any benefit year ending before July 1,
        2008);
            (3) has not received a relocation subsidy under this
        section in the 2-year period preceding such date of
        application; and
            (4) is able to work, available to work, and actively
        seeking work.
    (c) Requirements for Grant.--The Secretary of Labor may not grant a
relocation subsidy to an eligible individual under this section unless
the Secretary determines that--
            (1) the relocation subsidy will assist such individual in
        relocating within the United States, at least 60 miles from the
        individual's current residence, for the purpose of attaining
        employment;
            (2) such individual filed an application with the Secretary
        not later than January 1, 2019; and
            (3) such individual--
                    (A) has obtained a bona fide offer of suitable
                employment affording a reasonable expectation of long-
                term duration in the area in which the individual
                wishes to relocate; or
                    (B) wishes to relocate to an area that has an
                unemployment rate that is at least 2 percentage points
                less than the unemployment rate of the area of the
                individual's initial residence.
    (d) Amount of Subsidy.--A relocation subsidy granted to an eligible
individual under this section shall be equal to the lesser of $10,000
or the amount that any contribution by a potential employer of the
individual to the individual's relocation expenses is exceeded by the
sum of--
            (1) 90 percent of the reasonable and necessary expenses
        incurred in transporting the worker, the worker's family, and
        household effects, plus
            (2) a lump sum equivalent to 3 times the individual's
        weekly benefit amount for the most recent benefit year (as such
        terms are defined in the State law), up to a maximum payment of
        $1,250.
    (e) Regulations.--Prior to granting any relocation subsidies under
subsection (a), the Secretary of Labor shall issue regulations designed
to prevent fraud or abuse relating to the program established under
this Act.
    (f) No Additional Funds Authorized.--No additional appropriations
are authorized for any fiscal year to carry out this Act.
    (g) Definitions.--For purposes of this section--
            (1) the term ``regular compensation'' has the meaning given
        the term in section 205(2) of the Federal-State Extended
        Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note), as
        in effect prior to January 1, 2014; and
            (2) the term ``suitable work''--
                    (A) means suitable work as defined in the
                applicable State law for claimants for regular
                compensation; and
                    (B) does not include self-employment or employment
                as an independent contractor.
    (h) Reports.--Not later than March 15 of each of calendar years
2015 and 2017, the Secretary of Labor shall submit a report to Congress
that identifies, by geographic region--
            (1) the total number of relocation subsidies granted to
        individuals under this section during the calendar year
        preceding each such calendar year;
            (2) the total number of relocation subsidies granted to
        individuals pursuant to subsection (c)(3)(A) during such
        calendar year;
            (3) the total number of relocation subsidies granted to
        individuals pursuant to subsection (c)(3)(B) during such
        calendar year, and the number of such individuals who obtained
        employment within 1 month, 3 months, and 6 months,
        respectively, after the individual's relocation;
            (4) the average amount of a relocation subsidy granted
        during such calendar year;
            (5) the average distance traveled for relocation by each
        individual receiving a relocation subsidy during such calendar
        year; and
            (6) the number of individuals who received a relocation
        subsidy under this section during such calendar year and
        subsequently applied for unemployment benefits.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Appalachian Regional Development Act
Amendments of 2002''.

SEC. 2. PURPOSES.

    (a) This Act.--The purposes of this Act are--
        (1) to reauthorize the Appalachian Regional Development Act of
    1965 (40 U.S.C. App.); and
        (2) to ensure that the people and businesses of the Appalachian
    region have the knowledge, skills, and access to telecommunication
    and technology services necessary to compete in the knowledge-based
    economy of the United States.
    (b) Appalachian Regional Development Act of 1965.--Section 2 of the
Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is
amended--
        (1) in subsection (b), by inserting after the third sentence
    the following: ``Consistent with the goal described in the
    preceding sentence, the Appalachian region should be able to take
    advantage of eco-industrial development, which promotes both
    employment and economic growth and the preservation of natural
    resources.''; and
        (2) in subsection (c)(2)(B)(ii), by inserting ``, including
    eco-industrial development technologies'' before the semicolon.

SEC. 3. FUNCTIONS OF THE COMMISSION.

    Section 102(a) of the Appalachian Regional Development Act of 1965
(40 U.S.C. App.) is amended--
        (1) in paragraph (5), by inserting ``, and support,'' after
    ``formation of'';
        (2) in paragraph (7), by striking ``and'' at the end;
        (3) in paragraph (8), by striking the period at the end and
    inserting a semicolon; and
        (4) by adding at the end the following:
        ``(9) encourage the use of eco-industrial development
    technologies and approaches; and
        ``(10) seek to coordinate the economic development activities
    of, and the use of economic development resources by, Federal
    agencies in the region.''.

SEC. 4. INTERAGENCY COORDINATING COUNCIL ON APPALACHIA.

    Section 104 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is amended--
        (1) by striking ``The President'' and inserting ``(a) In
    General.--The President''; and
        (2) by adding at the end the following:
    ``(b) Interagency Coordinating Council on Appalachia.--
        ``(1) Establishment.--In carrying out subsection (a), the
    President shall establish an interagency council to be known as the
    `Interagency Coordinating Council on Appalachia'.
        ``(2) Membership.--The Council shall be composed of--
            ``(A) the Federal Cochairman, who shall serve as
        Chairperson of the Council; and
            ``(B) representatives of Federal agencies that carry out
        economic development programs in the region.''.

SEC. 5. TELECOMMUNICATIONS AND TECHNOLOGY INITIATIVE.

    Title II of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is amended by inserting after section 202 the following:

``SEC. 203. TELECOMMUNICATIONS AND TECHNOLOGY INITIATIVE.

    ``(a) In General.--The Commission may provide technical assistance,
make grants, enter into contracts, or otherwise provide funds to
persons or entities in the region for projects--
        ``(1) to increase affordable access to advanced
    telecommunications, entrepreneurship, and management technologies
    or applications in the region;
        ``(2) to provide education and training in the use of
    telecommunications and technology;
        ``(3) to develop programs to increase the readiness of industry
    groups and businesses in the region to engage in electronic
    commerce; or
        ``(4) to support entrepreneurial opportunities for businesses
    in the information technology sector.
    ``(b) Source of Funding.--
        ``(1) In general.--Assistance under this section may be
    provided--
            ``(A) exclusively from amounts made available to carry out
        this section; or
            ``(B) from amounts made available to carry out this section
        in combination with amounts made available under any other
        Federal program or from any other source.
        ``(2) Federal share requirements specified in other laws.--
    Notwithstanding any provision of law limiting the Federal share
    under any other Federal program, amounts made available to carry
    out this section may be used to increase that Federal share, as the
    Commission determines to be appropriate.
    ``(c) Cost Sharing for Grants.--Not more than 50 percent (or 80
percent in the case of a project to be carried out in a county for
which a distressed county designation is in effect under section 226)
of the costs of any activity eligible for a grant under this section
may be provided from funds appropriated to carry out this section.''.

SEC. 6. ENTREPRENEURSHIP INITIATIVE.

    Title II of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is amended by inserting after section 203 (as added by
section 5) the following:

``SEC. 204. ENTREPRENEURSHIP INITIATIVE.

    ``(a) Definition of Business Incubator Service.--In this section,
the term `business incubator service' means a professional or technical
service necessary for the initiation and initial sustainment of the
operations of a newly established business, including a service such
as--
        ``(1) a legal service, including aid in preparing a corporate
    charter, partnership agreement, or basic contract;
        ``(2) a service in support of the protection of intellectual
    property through a patent, a trademark, or any other means;
        ``(3) a service in support of the acquisition and use of
    advanced technology, including the use of Internet services and
    Web-based services; and
        ``(4) consultation on strategic planning, marketing, or
    advertising.
    ``(b) Projects To Be Assisted.--The Commission may provide
technical assistance, make grants, enter into contracts, or otherwise
provide funds to persons or entities in the region for projects--
        ``(1) to support the advancement of, and provide,
    entrepreneurial training and education for youths, students, and
    businesspersons;
        ``(2) to improve access to debt and equity capital by such
    means as facilitating the establishment of development venture
    capital funds;
        ``(3) to aid communities in identifying, developing, and
    implementing development strategies for various sectors of the
    economy; and
        ``(4)(A) to develop a working network of business incubators;
    and
        ``(B) to support entities that provide business incubator
    services.
    ``(c) Source of Funding.--
        ``(1) In general.--Assistance under this section may be
    provided--
            ``(A) exclusively from amounts made available to carry out
        this section; or
            ``(B) from amounts made available to carry out this section
        in combination with amounts made available under any other
        Federal program or from any other source.
        ``(2) Federal share requirements specified in other laws.--
    Notwithstanding any provision of law limiting the Federal share
    under any other Federal program, amounts made available to carry
    out this section may be used to increase that Federal share, as the
    Commission determines to be appropriate.
    ``(d) Cost Sharing for Grants.--Not more than 50 percent (or 80
percent in the case of a project to be carried out in a county for
which a distressed county designation is in effect under section 226)
of the costs of any activity eligible for a grant under this section
may be provided from funds appropriated to carry out this section.''.

SEC. 7. REGIONAL SKILLS PARTNERSHIPS.

    Title II of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is amended by inserting after section 204 (as added by
section 6) the following:

``SEC. 205. REGIONAL SKILLS PARTNERSHIPS.

    ``(a) Definition of Eligible Entity.--In this section, the term
`eligible entity' means a consortium that--
        ``(1) is established to serve 1 or more industries in a
    specified geographic area; and
        ``(2) consists of representatives of--
            ``(A) businesses (or a nonprofit organization that
        represents businesses);
            ``(B) labor organizations;
            ``(C) State and local governments; or
            ``(D) educational institutions.
    ``(b) Projects To Be Assisted.--The Commission may provide
technical assistance, make grants, enter into contracts, or otherwise
provide funds to eligible entities in the region for projects to
improve the job skills of workers for a specified industry, including
projects for--
        ``(1) the assessment of training and job skill needs for the
    industry;
        ``(2) the development of curricula and training methods,
    including, in appropriate cases, electronic learning or technology-
    based training;
        ``(3)(A) the identification of training providers; and
        ``(B) the development of partnerships between the industry and
    educational institutions, including community colleges;
        ``(4) the development of apprenticeship programs;
        ``(5) the development of training programs for workers,
    including dislocated workers; and
        ``(6) the development of training plans for businesses.
    ``(c) Administrative Costs.--An eligible entity may use not more
than 10 percent of the funds made available to the eligible entity
under subsection (b) to pay administrative costs associated with the
projects described in subsection (b).
    ``(d) Source of Funding.--
        ``(1) In general.--Assistance under this section may be
    provided--
            ``(A) exclusively from amounts made available to carry out
        this section; or
            ``(B) from amounts made available to carry out this section
        in combination with amounts made available under any other
        Federal program or from any other source.
        ``(2) Federal share requirements specified in other laws.--
    Notwithstanding any provision of law limiting the Federal share
    under any other Federal program, amounts made available to carry
    out this section may be used to increase that Federal share, as the
    Commission determines to be appropriate.
    ``(e) Cost Sharing for Grants.--Not more than 50 percent (or 80
percent in the case of a project to be carried out in a county for
which a distressed county designation is in effect under section 226)
of the costs of any activity eligible for a grant under this section
may be provided from funds appropriated to carry out this section.''.

SEC. 8. PROGRAM DEVELOPMENT CRITERIA.

    (a) Elimination of Growth Center Criteria.--Section 224(a)(1) of
the Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is
amended by striking ``in an area determined by the State have a
significant potential for growth or''.
    (b) Assistance to Distressed Counties and Areas.--Section 224 of
the Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is
amended by adding at the end the following:
    ``(d) Assistance to Distressed Counties and Areas.--For fiscal year
2003 and each fiscal year thereafter, not less than 50 percent of the
amount of grant expenditures approved by the Commission shall support
activities or projects that benefit severely and persistently
distressed counties and areas.''.
SEC. 9. GRANTS FOR ADMINISTRATIVE EXPENSES OF LOCAL DEVELOPMENT
DISTRICTS.
    Section 302(a)(1)(A)(i) of the Appalachian Regional Development Act
of 1965 (40 U.S.C. App.) is amended by inserting ``(or, at the
discretion of the Commission, 75 percent of such expenses in the case
of a local development district that has a charter or authority that
includes the economic development of a county or part of a county for
which a distressed county designation is in effect under section 226)''
after ``such expenses''.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    Section 401 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is amended to read as follows:

``SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--In addition to amounts authorized by section 201
and other amounts made available for the Appalachian development
highway system program, there are authorized to be appropriated to the
Commission to carry out this Act--
        ``(1) $88,000,000 for each of fiscal years 2002 through 2004;
        ``(2) $90,000,000 for fiscal year 2005; and
        ``(3) $92,000,000 for fiscal year 2006.
    ``(b) Telecommunications and Technology Initiative.--Of the amounts
made available under subsection (a), the following amounts may be made
available to carry out section 203:
        ``(1) $10,000,000 for fiscal year 2002.
        ``(2) $8,000,000 for fiscal year 2003.
        ``(3) $5,000,000 for each of fiscal years 2004 through 2006.
    ``(c) Availability.--Sums made available under subsection (a) shall
remain available until expended.''.

SEC. 11. ADDITION OF COUNTIES TO APPALACHIAN REGION.

    Section 403 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is amended--
        (1) in the third undesignated paragraph (relating to
    Kentucky)--
            (A) by inserting ``Edmonson,'' after ``Cumberland,'';
            (B) by inserting ``Hart,'' after ``Harlan,''; and
            (C) by striking ``Montogomery,'' and inserting
        ``Montgomery,''; and
        (2) in the fifth undesignated paragraph (relating to
    Mississippi)--
            (A) by inserting ``Montgomery,'' after ``Monroe,''; and
            (B) by inserting ``Panola,'' after ``Oktibbeha,''.

SEC. 12. TERMINATION.

    Section 405 of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is amended by striking ``2001'' and inserting ``2006''.

SEC. 13. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Section 101(b) of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is amended in the third sentence by striking
``implementing investment program'' and inserting ``strategy
statement''.
    (b) Section 106(7) of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is amended by striking ``expiring no later than
September 30, 2001''.
    (c) Sections 202, 214, and 302(a)(1)(C) of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.) are amended by striking
``grant-in-aid programs'' each place it appears and inserting ``grant
programs''.
    (d) Section 202(a) of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is amended in the second sentence by striking
``title VI of the Public Health Service Act (42 U.S.C. 291-291o), the
Mental Retardation Facilities and Community Mental Health Centers
Construction Act of 1963 (77 Stat. 282),'' and inserting ``title VI of
the Public Health Service Act (42 U.S.C. 291 et seq.), the
Developmental Disabilities Assistance and Bill of Rights Act of 2000
(42 U.S.C. 15001 et seq.),''.
    (e) Section 207(a) of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is amended by striking ``section 221 of the
National Housing Act, section 8 of the United States Housing Act of
1937, section 515 of the Housing Act of 1949,'' and inserting ``section
221 of the National Housing Act (12 U.S.C. 1715l), section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f), section 515 of the
Housing Act of 1949 (42 U.S.C. 1485),''.
    (f) Section 214 of the Appalachian Regional Development Act of 1965
(40 U.S.C. App.) is amended--
        (1) in the section heading, by striking ``grant-in-aid'' and
    inserting ``grant'';
        (2) in subsection (a)--
            (A) by striking ``grant-in-aid Act'' each place it appears
        and inserting ``Act'';
            (B) in the first sentence, by striking ``grant-in-aid
        Acts'' and inserting ``Acts'';
            (C) by striking ``grant-in-aid program'' each place it
        appears and inserting ``grant program''; and
            (D) by striking the third sentence;
        (3) by striking subsection (c) and inserting the following:
    ``(c) Definition of Federal Grant Program.--
        ``(1) In general.--In this section, the term `Federal grant
    program' means any Federal grant program authorized by this Act or
    any other Act that provides assistance for--
            ``(A) the acquisition or development of land;
            ``(B) the construction or equipment of facilities; or
            ``(C) any other community or economic development or
        economic adjustment activity.
        ``(2) Inclusions.--In this section, the term `Federal grant
    program' includes a Federal grant program such as a Federal grant
    program authorized by--
            ``(A) the Consolidated Farm and Rural Development Act (7
        U.S.C. 1921 et seq.);
            ``(B) the Land and Water Conservation Fund Act of 1965 (16
        U.S.C. 460l-4 et seq.);
            ``(C) the Watershed Protection and Flood Prevention Act (16
        U.S.C. 1001 et seq.);
            ``(D) the Carl D. Perkins Vocational and Technical
        Education Act of 1998 (20 U.S.C. 2301 et seq.);
            ``(E) the Federal Water Pollution Control Act (33 U.S.C.
        1251 et seq.);
            ``(F) title VI of the Public Health Service Act (42 U.S.C.
        291 et seq.);
            ``(G) sections 201 and 209 of the Public Works and Economic
        Development Act of 1965 (42 U.S.C. 3141, 3149);
            ``(H) title I of the Housing and Community Development Act
        of 1974 (42 U.S.C. 5301 et seq.); or
            ``(I) part IV of title III of the Communications Act of
        1934 (47 U.S.C. 390 et seq.).
        ``(3) Exclusions.--In this section, the term `Federal grant
    program' does not include--
            ``(A) the program for construction of the Appalachian
        development highway system authorized by section 201;
            ``(B) any program relating to highway or road construction
        authorized by title 23, United States Code; or
            ``(C) any other program under this Act or any other Act to
        the extent that a form of financial assistance other than a
        grant is authorized.''; and
        (4) by striking subsection (d).
    (g) Section 224(a)(2) of the Appalachian Regional Development Act
of 1965 (40 U.S.C. App.) is amended by striking ``relative per capita
income'' and inserting ``per capita market income''.
    (h) Section 225 of the Appalachian Regional Development Act of 1965
(40 U.S.C. App.)--
        (1) in subsection (a)(3), by striking ``development program''
    and inserting ``development strategies''; and
        (2) in subsection (c)(2), by striking ``development programs''
    and inserting ``development strategies''.
    (i) Section 303 of the Appalachian Regional Development Act of 1965
(40 U.S.C. App.) is amended--
        (1) in the section heading, by striking ``investment programs''
    and inserting ``strategy statements'';
        (2) in the first sentence, by striking ``implementing
    investments programs'' and inserting ``strategy statements''; and
        (3) by striking ``implementing investment program'' each place
    it appears and inserting ``strategy statement''.
    (j) Section 403 of the Appalachian Regional Development Act of 1965
(40 U.S.C. App.) is amended in the next-to-last undesignated paragraph
by striking ``Committee on Public Works and Transportation'' and
inserting ``Committee on Transportation and Infrastructure''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and
                                               President of the Senate.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Arctic Marine Shipping Assessment
Implementation Act of 2009''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The United States is an Arctic nation with--
                    (A) an approximately 700-mile border with the
                Arctic Ocean;
                    (B) more than 100,000,000 acres of land above the
                Arctic Circle; and
                    (C) an even broader area defined as Arctic by
                temperature, which includes the Bering Sea and Aleutian
                Islands.
            (2) The Arctic region of the United States--
                    (A) is home to an indigenous population which has
                subsisted for millennia on the abundance in marine
                mammals, fish, and wildlife, many of which are unique
                to the region;
                    (B) is known to the indigenous population as
                Inuvikput or the ``place where we live''; and
                    (C) has produced more than 16,000,000,000 barrels
                of oil and, according to the United States Geological
                Survey, may hold an additional 30,000,000,000 barrels
                of oil and 220,000,000,000,000 cubic feet of natural
                gas, making the region of fundamental importance to the
                national interest of the United States.
            (3) Temperatures in the United States Arctic region have
        warmed by 3 to 4 degrees Celsius over the past half-century, a
        rate of increase that is twice the global average.
            (4) The Arctic ice pack is rapidly diminishing and
        thinning, and the National Oceanic and Atmospheric
        Administration estimates the Arctic Ocean may be ice free
        during summer months in as few as 30 years.
            (5) Such changes to the Arctic region are having a
        significant impact on the indigenous people of the Arctic,
        their communities and ecosystems, as well as the marine
        mammals, fish, and wildlife upon which they depend.
            (6) Such changes are opening new portions of the United
        States Arctic continental shelf to possible development for
        offshore oil and gas, commercial fishing, marine shipping, and
        tourism.
            (7) It is in the interests of the United States to work
        with the State of Alaska and the United States neighbors in the
        Arctic region to ensure that shipping in the Arctic Ocean and
        adjacent seas is safe for mariners, protective of the natural
        environment, including the air, land, water, and wildlife of
        the Arctic, and mindful of the needs of longstanding
        subsistence users of Arctic resources.
            (8) It is in the interests of the United States to ensure
        that shipping in the Arctic Ocean and adjacent seas is secure,
        that United States sovereign and security interests, including
        the freedom of navigation rights of United States and foreign
        vessels to transit international straits, are respected and
        protected, consistent with international and customary law,
        that access is provided throughout the Arctic Ocean for
        legitimate research vessels of all nations, and that peaceful
        relations are maintained in the Arctic region.
            (9) It is in the interests of the United States to
        cooperate to establish a system of international cooperation to
        support reliable shipping, with methods for joint investment in
        providing mariners aids to navigation, ports of refuge, vessel-
        to-shore communication, weather and ice forecasting, ship
        tracking and reporting, hydrographic mapping, and search and
        rescue capability.
            (10) The United States has continuing research, security,
        environmental, and commercial interests in the Arctic region
        that rely on the availability of polar class icebreakers of the
        Coast Guard that were commissioned in the 1970s and are in need
        of replacement.
            (11) Sovereign interests of the United States in the Arctic
        Ocean and Bering Sea regions may grow with submission of a
        United States claim for an extended continental shelf, pending
        the United States becoming a party to the United Nations
        Convention on the Law of the Sea, done at Montego Bay December
        10, 1982.
            (12) Building new icebreakers, forward operating bases,
        aids to navigation, and other facilities, and establishing
        coordinated shipping regulations and oil spill prevention and
        response capability through international cooperation requires
        long lead times.
            (13) Beginning such efforts, with the completion of an
        Arctic Marine Shipping Assessment by the 8-nation Arctic
        Council, is essential to protect United States interests given
        the extensive current use of the Arctic Ocean and adjacent seas
        by vessels of many nations.

SEC. 3. PURPOSE.

    The purpose of this Act is to ensure safe, secure, and reliable
maritime shipping in the Arctic, including the availability of aids to
navigation, vessel escorts, spill response capability, and maritime
search and rescue in the Arctic.

SEC. 4. DEFINITIONS.

    In this Act, the term ``Arctic'' has the meaning given that term in
section 112 of the Arctic Research and Policy Act of 1984 (15 U.S.C.
4111).

SEC. 5. SENSE OF CONGRESS ON INTERNATIONAL AGREEMENTS.

    It is the sense of Congress that, to carry out the purpose of this
Act, the Secretary of State, in consultation with the Secretary of
Homeland Security, acting through the Commandant of the Coast Guard,
should work to establish agreements to promote coordinated action among
the United States, Russia, Canada, Iceland, Norway, and Denmark and
other seafaring and Arctic nations with respect to--
            (1) placement and maintenance of aids to navigation in
        waters of the Arctic;
            (2) improved navigational charts;
            (3) the monitoring of ocean conditions including wind,
        waves, and currents and the timely reporting of information
        about ice and weather conditions;
            (4) appropriate icebreaking escort, tug, and salvage
        capabilities;
            (5) oil spill prevention and response capability;
            (6) maritime domain awareness, including long-range vessel
        tracking and communications facilities;
            (7) search and rescue; and
            (8) facilities for ship generated waste.

SEC. 6. COAST GUARD ARCTIC MISSION ANALYSIS.

    (a) Submission of Report Analysis to Congress.--
            (1) Requirement for submission.--Not later than 90 days
        following the completion of the High Latitude Polar Ice-
        Breaking Mission Analysis Report, the Commandant of the Coast
        Guard shall submit to the appropriate committees of Congress--
                    (A) such report; and
                    (B) consistent with section 93(a)(24) of title 14,
                United States Code, any recommendations of the
                Commandant related to such report.
            (2) Appropriate committees of congress defined.--In this
        subsection, the term ``appropriate committees of Congress''
        means the Committee on Commerce, Science, and Transportation of
        the Senate and the Committee on Transportation and
        Infrastructure of the House of Representatives.
    (b) Mission Requirements Analysis.--
            (1) Mission requirements analysis.--Not later than 90 days
        after the date of the enactment of this Act, the Commandant of
        the Coast Guard shall, subject to the availability of
        appropriations, execute a contract with an independent entity
        to--
                    (A) conduct an analysis of future mission
                requirements of the Coast Guard in the Arctic and
                Antarctic; and
                    (B) estimate the necessary resources to provide for
                such requirements.
            (2) Submission of analysis and estimate.--Not later than
        120 days after the date that the contract described in
        paragraph (1) is executed, the analysis and estimate described
        in subparagraph (A) and (B) of that paragraph shall be
        submitted to--
                    (A) the appropriate committees of Congress;
                    (B) the Commandant of the Coast Guard; and
                    (C) the Comptroller General of the United States.
            (3) Additional recommendations.--Not later than 90 days
        after the submission of the analysis and estimate described in
        paragraph (2)--
                    (A) the Commandant of the Coast Guard shall submit
                to the appropriate committees of Congress, consistent
                with section 93(a)(24) of title 14, United States Code,
                any recommendations of the Commandant related to such
                analysis and estimate; and
                    (B) the Comptroller General shall submit to the
                appropriate committees of Congress any recommendations
                of the Comptroller General related to such analysis and
                estimate.
            (4) Appropriate committees of congress defined.--In this
        subsection, the term ``appropriate committees of Congress''
        means--
                    (A) the Committee on Commerce, Science, and
                Transportation and the Committee on Homeland Security
                and Governmental Affairs of the Senate; and
                    (B) the Committee on Homeland Security and the
                Committee on Transportation and Infrastructure of the
                House of Representatives.

SEC. 7. ARCTIC VESSEL TRAFFIC RISK ASSESSMENTS.

    (a) In General.--Pursuant to sections 4 and 5 of the Ports and
Waterways Safety Act of 1972 (33 U.S.C. 1223 and 1224), the Commandant
of the Coast Guard, in consultation with the appropriate Area Committee
established under section 311(j)(4) of the Federal Water Pollution
Control Act (33 U.S.C. 1321(j)(4)), shall prepare--
            (1) not later than 2 years after the date of the enactment
        of this Act, a vessel traffic risk assessment for the Bering
        Strait, Alaska; and
            (2) not later than 3 years after the date of the enactment
        of this Act, a vessel traffic risk assessment for the Arctic
        Ocean waters adjacent to Alaska's North Slope.
    (b) Contents.--A vessel traffic risk assessment, prepared pursuant
to subsection (a), shall describe for the Bering Strait or the Arctic
Ocean, as appropriate--
            (1) the amount and character of present and estimated
        future shipping traffic in the region; and
            (2) the current and projected use and effectiveness in
        reducing risk of--
                    (A) traffic separation schemes and routing
                measures;
                    (B) long-range vessel tracking systems developed
                under section 70115 of title 46, United States Code;
                    (C) towing, response, or escort tugs;
                    (D) vessel traffic services;
                    (E) emergency towing packages on vessels;
                    (F) increased spill response equipment including
                equipment appropriate for severe weather and sea
                conditions;
                    (G) the automatic identification system developed
                under section 70114 of title 46, United States Code;
                    (H) particularly sensitive sea areas, important
                ecological areas, areas to be avoided, and other
                traffic exclusion zones;
                    (I) aids to navigation;
                    (J) vessel response plans, facility response plans,
                any other response plans that the Secretary deems
                necessary; and
                    (K) area contingency plans and the effectiveness of
                the several response plans to support an area
                contingency plans.
    (c) Recommendations.--
            (1) In general.--An assessment, prepared pursuant to this
        section, may include any appropriate recommendations to enhance
        the safety and security, or lessen potential adverse
        environmental impacts, of marine shipping.
            (2) Consultation.--Prior to making any recommendation
        described in paragraph (1), the Commandant of the Coast Guard,
        acting through the appropriate Area Committee established under
        section 311(j)(4) of the Federal Water Pollution Control Act
        (33 U.S.C. 1321(j)(4)), shall consult with affected Federal,
        State, and local government agencies, representatives of the
        fishing industry, Alaska Natives from the region, the
        conservation community, and the merchant shipping and oil
        transportation industries.

SEC. 8. CENTRAL BERING SEA HARBOR OF REFUGE.

    (a) Consultation and Determination.--Not later than 1 year after
the date of the enactment of this Act, the Commandant of the Coast
Guard shall consult with the Secretary of the Army to determine the
viability of and the improvements necessary to make the harbor at St.
George Island, Alaska, a fully functional harbor of refuge throughout
the year to enhance safety of life at sea and protection from oil
pollution in the Central Bering Sea.
    (b) Completion of Harbor.--Not later than 3 years after the date of
the enactment of this Act, the Secretary of the Army shall complete the
harbor at St. George Island, Alaska, including the improvements
determined under subsection (a) and any engineering design needed for
safe navigation.

SEC. 9. REPORT ON ESTABLISHMENT OF ARCTIC DEEP WATER PORT.

    (a) Study.--
            (1) In general.--The Commandant of the Coast Guard shall
        conduct a study on the feasibility and potential of
        establishing a deep water sea port in the Arctic to protect and
        advance strategic United States interests within the evolving
        and ever more important Arctic region.
            (2) Scope.--The study required under paragraph (1) shall
        address the following issues:
                    (A) The capability that such a port would provide.
                    (B) Potential and optimum locations for such a
                port.
                    (C) Resources needed to establish such a port.
                    (D) The time frame needed to establish such a port.
                    (E) The infrastructure required to support such a
                port.
                    (F) Any other issues the Secretary determines
                necessary to complete the study.
    (b) Report.--Not later than 1 year after the date of the enactment
of this Act, the Secretary of Defense shall submit to the congressional
defense committees a report on the findings of the study conducted
under subsection (a).

SEC. 10. TRANSFER OF FUNDS FOR ICEBREAKING SERVICES.

    Notwithstanding any other provision of law, the Director of the
National Science Foundation shall transfer all amounts provided
pursuant to any Act for the procurement of polar icebreaking services
to the United States Coast Guard Appropriation Accounts, and such
amounts shall remain available until expended for operating expenses,
renovation, and improvement.

SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to the
Secretary of Homeland Security--
            (1) $40,000,000 in fiscal year 2011 for the design of a new
        polar class icebreaker;
            (2) $800,000,000 for each of fiscal years 2011 and 2012 for
        the construction of 2 polar capable icebreakers;
            (3) $5,000,000 for each of fiscal years 2011 through 2015
        for seasonal operations in the Arctic;
            (4) $10,000,000 for each of fiscal years 2012 through 2015
        to carry out any agreements referred to in section 5;
            (5) $4,000,000, to remain available until expended, for a
        vessel traffic risk assessments to be conducted pursuant to
        section 7; and
            (6) $100,000,000 in each of the fiscal years 2011 through
        2013 for the construction of forward operating bases, including
        aircraft hangar, bunk and mess facilities in Barrow, Nome, and
        Saint Paul Island, Alaska.
    (b) Hydrographic Services.--Section 306 of the Hydrographic
Services Improvement Act of 1998 (33 U.S.C. 892d) is amended by adding
at the end the following new paragraphs:
            ``(7) To acquire hydrographic data, provide hydrographic
        services, and conduct coastal change analyses necessary to
        ensure safe navigation, and to improve the management of
        coastal change in the Arctic, $10,000,000 for each of fiscal
        years 2011 and 2012.
            ``(8) To acquire hydrographic data and provide hydrographic
        services in the Arctic necessary to delineate the United States
        extended continental shelf, $5,000,000 for each of fiscal years
        2011 and 2012.''.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Armed Forces Education Benefits
Improvement Act''.

SEC. 2. ADJUSTMENT AND ANNUAL DETERMINATION OF EDUCATIONAL ASSISTANCE
              UNDER THE MONTGOMERY GI BILL FOR ACTIVE DUTY MEMBERS.

    (a) In General.--Section 3015 of title 38, United States Code, is
amended--
            (1) in subsection (a), by amending paragraph (1) to read as
        follows:
            ``(1) for an approved program of education pursued on a
        full-time basis--
                    ``(A) $1,584 per month for months during fiscal
                year 2005; and
                    ``(B) for months during fiscal year 2006 and each
                subsequent fiscal year, the monthly amount under this
                paragraph for the previous fiscal year multiplied by
                the percentage increase calculated under subsection
                (h); or'';
            (2) in subsection (b), by amending paragraph (1) to read as
        follows:
            ``(1) for an approved program of education pursued on a
        full-time basis--
                    ``(A) $1,267 per month for months during fiscal
                year 2005; and
                    ``(B) for months during fiscal year 2006 and each
                subsequent fiscal year, the monthly amount under this
                paragraph for the previous fiscal year multiplied by
                the percentage increase calculated under subsection
                (h); or''; and
            (3) in subsection (h)(1), by striking ``all items'' and
        inserting ``college tuition and fees''.
    (b) Effective Date.--The amendments made by subsection (a) shall
take effect on the first day of the first month beginning after the
date of enactment of this Act.

SEC. 3. ANALYSIS OF IMPACT OF MONTGOMERY GI BILL EDUCATIONAL BENEFITS.

    (a) Findings.--Congress finds that--
            (1) the enhanced educational benefits provided under the
        Ronald W. Reagan National Defense Authorization Act for Fiscal
        Year 2005 are an important step in ensuring that members of the
        Selected Reserve are thanked for their increasing role in the
        modern warfare; and
            (2) when these members return from extended tours in Iraq,
        Afghanistan, and other places, they should be provided with
        immediate access to these enhanced educational benefits.
    (b) Cooperation.--The Secretary of Defense shall work expeditiously
with the Secretary of Veterans Affairs to ensure that members of the
Selected Reserve receive the educational benefits referred to in
subsection (a) in a timely manner.
    (c) Studies.--
            (1) Secretary of defense.--The Secretary of Defense shall
        conduct a study analyzing the effect of all Montgomery GI bill
        educational benefits on recruitment and retention during the
        12-month period beginning on the date on which the enhanced
        benefits referred to in subsection (a) become available.
            (2) Secretary of veterans affairs.--The Secretary of
        Veterans Affairs shall conduct a study analyzing the effect of
        all Montgomery GI bill educational benefits on the readjustment
        of veterans eligible for educational benefits under section
        3015 of title 38, United States Code, and chapters 1606 and
        1607 of title 10, United States Code, during the 12-month
        period beginning on the date on which the enhanced benefits
        referred to in subsection (a) become available.
            (3) Report.--Not later than 18 months after the date on
        which the enhanced benefits referred to in subsection (a)
        become available, the Secretary of Defense and the Secretary of
        Veterans Affairs shall submit a report on the results of the
        studies conducted under paragraphs (1) and (2) to--
                    (A) the Committee on Armed Services of the Senate;
                    (B) the Committee on Armed Services of the House of
                Representatives;
                    (C) the Committee on Veterans' Affairs of the
                Senate; and
                    (D) the Committee on Veterans' Affairs of the House
                of Representatives.

SEC. 4. ADJUSTMENT AND ANNUAL DETERMINATION OF EDUCATIONAL ASSISTANCE
              UNDER THE MONTGOMERY GI BILL FOR CERTAIN MEMBERS OF THE
              SELECTED RESERVE.

    (a) Increase in Rates.--Section 16131(b) of title 10, United States
Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``at the following rates:'' and
                inserting ``--''; and
                    (B) by striking subparagraphs (A) through (C) and
                inserting the following:
            ``(A) for a program of education pursued on a full-time
        basis--
                    ``(i) $475 per month for months during fiscal year
                2005; and
                    ``(ii) for months during fiscal year 2006 and each
                subsequent fiscal year, the monthly amount under this
                subparagraph for the previous fiscal year multiplied by
                the percentage increase calculated under paragraph (2);
            ``(B) for a program of education pursued on a three-
        quarter-time basis--
                    ``(i) $356 per month for months during fiscal year
                2005; and
                    ``(ii) for months during fiscal year 2006 and each
                subsequent fiscal year, the monthly amount under this
                subparagraph for the previous fiscal year multiplied by
                the percentage increase calculated under paragraph (2);
            ``(C) for a program of education pursued on a half-time
        basis--
                    ``(i) $238 per month for months during fiscal year
                2005; and
                    ``(ii) for months during fiscal year 2006 and each
                subsequent fiscal year, the monthly amount under this
                subparagraph for the previous fiscal year multiplied by
                the percentage increase calculated under paragraph (2);
                and''; and
            (2) in paragraph (2)--
                    (A) by inserting ``beginning on or after October 1,
                2005'' after ``With respect to any fiscal year''; and
                    (B) in subparagraph (A), by striking ``all items''
                and inserting ``college tuition and fees''.
    (b) Effective Date.--The amendments made by subsection (a) shall
take effect on the first day of the first month beginning after the
date of enactment of this Act.

SEC. 5. OPPORTUNITY FOR CERTAIN ACTIVE-DUTY PERSONNEL TO ENROLL UNDER
              THE MONTGOMERY GI BILL.

    (a) In General.--Chapter 30 of title 38, United States Code, is
amended by inserting after section 3018C the following:
``Sec. 3018D. Opportunity for certain active-duty personnel to enroll
    ``(a)(1) Notwithstanding any other provision of this chapter,
during the 1-year period beginning on the date of enactment of this
section, a qualified individual (described in subsection (b)) may make
an irrevocable election under this section to receive basic educational
assistance under this chapter.
    ``(2) The Secretary of each military department shall provide for
procedures for a qualified individual to make an irrevocable election
under this section in accordance with regulations prescribed by the
Secretary of Defense for the purpose of carrying out this section or
which the Secretary of Homeland Security shall provide for such purpose
with respect to the Coast Guard when it is not operating as a service
in the Navy.
    ``(b) A qualified individual referred to in subsection (a) is an
individual who meets each of the following requirements:
            ``(1) The individual first became a member of the Armed
        Forces or first served on active duty as a member of the Armed
        Forces before July 1, 1985.
            ``(2) The individual--
                    ``(A) has served on active duty without a break in
                service since the date the individual first became such
                a member or first served on active duty as such a
                member; and
                    ``(B) continues to serve on active duty for some or
                all of the 1-year period described in subsection (a).
            ``(3) The individual, before applying for benefits under
        this section--
                    ``(A) completed the requirements of a secondary
                school diploma (or equivalency certificate); or
                    ``(B) has successfully completed (or otherwise
                received academic credit for) the equivalent of 12
                semester hours in a program of education leading to a
                standard college degree.
            ``(4) The individual, when discharged or released from
        active duty, is discharged or released therefrom with an
        honorable discharge.
    ``(c)(1) Subject to paragraph (2), with respect to a qualified
individual who elects under this section to receive basic educational
assistance under this chapter--
            ``(A) the basic pay of the qualified individual shall be
        reduced (in a manner determined by the Secretary concerned)
        until the total amount by which such basic pay is reduced is
        $1,200; and
            ``(B) to the extent that basic pay is not reduced under
        subparagraph (A) before the qualified individual's discharge or
        release from active duty, an amount equal to the difference
        between $1,200 and the total amount of reductions under
        subparagraph (A), which shall be paid into the Treasury of the
        United States as miscellaneous receipts, shall, at the election
        of the qualified individual, be--
                    ``(i) collected from the qualified individual by
                the Secretary concerned; or
                    ``(ii) withheld from the retired or retainer pay of
                the qualified individual by the Secretary concerned.
    ``(2)(A) The Secretary concerned shall provide for an 18-month
period, beginning on the date the qualified individual makes an
election under this section, for the qualified individual to pay that
Secretary the amount due under paragraph (1).
    ``(B) Nothing in subparagraph (A) shall be construed as modifying
the period of eligibility for and entitlement to basic educational
assistance under this chapter applicable under section 3031 of this
title.
    ``(d) With respect to qualified individuals referred to in
subsection (c)(1)(B), no amount of educational assistance allowance
under this chapter shall be paid to the qualified individual until the
earlier of the date on which--
            ``(1) the Secretary concerned collects the applicable
        amount under subsection (c)(1)(B)(i); or
            ``(2) the retired or retainer pay of the qualified
        individual is first reduced under subsection (c)(1)(B)(ii).
    ``(e) The Secretary, in conjunction with the Secretary of Defense,
shall provide for notice of the opportunity under this section to elect
to become entitled to basic educational assistance under this
chapter.''.
    (b) Conforming Amendments.--Section 3017(b)(1) of title 38, United
States Code, is amended--
            (1) in subparagraphs (A) and (C), by striking ``or
        3018C(e)'' and inserting ``3018C(e), or 3018D(c)''; and
            (2) in subparagraph (B), by inserting ``or 3018D(c)'' after
        ``under section 3018C(e)''.
    (c) Clerical Amendment.--The table of sections at the beginning of
chapter 30 of title 38, United States Code, is amended by inserting
after the item relating to section 3018C the following:

``3018D. Opportunity for certain active-duty personnel to enroll.''.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Army Arsenal Strategic Workload
Enhancement Act of 2012''.

SEC. 2. DEPARTMENT OF DEFENSE USE OF ARSENALS.

    (a) In General.--Chapter 143 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 2425. Department of Defense use of arsenals
    ``(a) In General.--The Secretary of Defense shall develop and
promulgate measurable and enforceable guidelines for the Department of
Defense, defense agencies, and the military services to have supplies,
components, end items, parts, assemblies, and sub-assemblies made in
factories or arsenals owned by the United States, to the extent those
factories or arsenals can make those supplies, components, end items,
parts, assemblies, and sub-assemblies on an economical basis while
preserving the ability to provide an effective and timely response to
mobilizations, national defense contingency situations, and other
emergency requirements.
    ``(b) Determination of Economical Basis.--For purposes of
determining whether supplies, components, end items, parts, assemblies,
and sub-assemblies can be made on an `economical basis' under
subsection (a), the Secretary of Defense shall analyze the direct costs
associated with the manufacture of such supplies, components, end
items, parts, assemblies, and sub-assemblies. If an analysis is not
performed, the Secretary of Defense or the relevant defense agency or
military service shall promptly report to the congressional defense
committees the justification for not performing an analysis.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``2425. Department of Defense use of arsenals.''.

SEC. 3. ASSIGNMENT OF WORKLOAD AT ARMY FACTORIES AND ARSENALS.

    (a) In General.--Section 4532 of title 10, United States Code, is
amended to read as follows:
``Sec. 4532. Assignment of workload at Army factories and arsenals
    ``(a) Assignment of Workload.--(1) The Secretary of the Army shall
assign Government-owned and Government-operated Department of the Army
factories and arsenals sufficient workload to ensure cost efficiency
and technical competence in peacetime, while preserving the ability to
provide an effective and timely response to mobilizations, national
defense contingency situations, and other emergency requirements.
    ``(2) At a minimum, workload may be derived from manufacturing of
supplies, components, parts, systems, subsystems, and foreign military
sales.
    ``(3) The Secretary of the Army shall develop and promulgate
guidelines to make the arsenals available to the Department of Defense,
defense agencies, and military services for procurement of supplies,
components, parts, systems, and subsystems.
    ``(b) Waiver Authority.--(1) The Secretary of the Army may waive
the requirement under subsection (a)(1) if such a waiver is necessary
for the national defense.
    ``(2) A waiver under paragraph (1) shall not take effect until 30
days after the Secretary submits to the congressional defense
committees a notification of the determination, together with the
justification for the determination.
    ``(3) The authority to grant a waiver under paragraph (1) may not
be delegated.
    ``(c) Annual Arsenal Report.--In 2013 and each year thereafter, not
later than 60 days after the date on which the budget of the President
for a fiscal year is submitted to Congress, the Secretary of Defense
shall submit to Congress a report for the Army identifying, for the
relevant fiscal year, each of the following:
            ``(1) The core arsenal manufacturing capability.
            ``(2) The workload required to cost-effectively support the
        arsenals and the manufacturing capability inherent in these
        installations.
            ``(3) The Secretary of the Army's performance in
        maintaining the Department of the Army's factories and arsenals
        with sufficient workload to ensure affordability and technical
        competence in peacetime.
            ``(4) The capital investments required to be made in order
        to ensure compliance and operational capacity.
    ``(d) Comptroller General Review.--The Comptroller General shall
review each report required under subsection (c) for completeness and
compliance and provide findings and recommendations to the
congressional defense committees not later than 60 days after the
report is submitted to Congress.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
chapter 433 of title 10, United States Code, is amended by striking the
item relating to section 4532 and inserting the following new item:

``4532. Assignment of workload at Army factories and arsenals.''.
    (c) Initial Workload Plan Report.--The first report required under
subsection (c) of section 4532 of title 10, United States Code, as
amended by subsection (a), shall be submitted not later than 180 days
after the date of the enactment of this Act.