[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4213 Engrossed Amendment Senate (EAS)]
In the Senate of the United States,
March 10, 2010.
Resolved, That the bill from the House of Representatives (H.R.
4213) entitled ``An Act to amend the Internal Revenue Code of 1986 to
extend certain expiring provisions, and for other purposes.'', do pass
with the following
AMENDMENT:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``American Workers,
State, and Business Relief Act of 2010''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; amendment of 1986 Code; table of contents.
TITLE I--EXTENSION OF EXPIRING PROVISIONS
Subtitle A--Energy
Sec. 101. Alternative motor vehicle credit for new qualified hybrid
motor vehicles other than passenger
automobiles and light trucks.
Sec. 102. Incentives for biodiesel and renewable diesel.
Sec. 103. Credit for electricity produced at certain open-loop biomass
facilities.
Sec. 104. Credit for refined coal facilities.
Sec. 105. Credit for production of low sulfur diesel fuel.
Sec. 106. Credit for producing fuel from coke or coke gas.
Sec. 107. New energy efficient home credit.
Sec. 108. Excise tax credits and outlay payments for alternative fuel
and alternative fuel mixtures.
Sec. 109. Special rule for sales or dispositions to implement FERC or
State electric restructuring policy for
qualified electric utilities.
Sec. 110. Suspension of limitation on percentage depletion for oil and
gas from marginal wells.
Subtitle B--Individual Tax Relief
PART I--Miscellaneous Provisions
Sec. 111. Deduction for certain expenses of elementary and secondary
school teachers.
Sec. 112. Additional standard deduction for State and local real
property taxes.
Sec. 113. Deduction of State and local sales taxes.
Sec. 114. Contributions of capital gain real property made for
conservation purposes.
Sec. 115. Above-the-line deduction for qualified tuition and related
expenses.
Sec. 116. Tax-free distributions from individual retirement plans for
charitable purposes.
Sec. 117. Look-thru of certain regulated investment company stock in
determining gross estate of nonresidents.
PART II--Low-income Housing Credits
Sec. 121. Election for refundable low-income housing credit for 2010.
Subtitle C--Business Tax Relief
Sec. 131. Research credit.
Sec. 132. Indian employment tax credit.
Sec. 133. New markets tax credit.
Sec. 134. Railroad track maintenance credit.
Sec. 135. Mine rescue team training credit.
Sec. 136. Employer wage credit for employees who are active duty
members of the uniformed services.
Sec. 137. 5-year depreciation for farming business machinery and
equipment.
Sec. 138. 15-year straight-line cost recovery for qualified leasehold
improvements, qualified restaurant
buildings and improvements, and qualified
retail improvements.
Sec. 139. 7-year recovery period for motorsports entertainment
complexes.
Sec. 140. Accelerated depreciation for business property on an Indian
reservation.
Sec. 141. Enhanced charitable deduction for contributions of food
inventory.
Sec. 142. Enhanced charitable deduction for contributions of book
inventories to public schools.
Sec. 143. Enhanced charitable deduction for corporate contributions of
computer inventory for educational
purposes.
Sec. 144. Election to expense mine safety equipment.
Sec. 145. Special expensing rules for certain film and television
productions.
Sec. 146. Expensing of environmental remediation costs.
Sec. 147. Deduction allowable with respect to income attributable to
domestic production activities in Puerto
Rico.
Sec. 148. Modification of tax treatment of certain payments to
controlling exempt organizations.
Sec. 149. Exclusion of gain or loss on sale or exchange of certain
brownfield sites from unrelated business
income.
Sec. 150. Timber REIT modernization.
Sec. 151. Treatment of certain dividends and assets of regulated
investment companies.
Sec. 152. RIC qualified investment entity treatment under FIRPTA.
Sec. 153. Exceptions for active financing income.
Sec. 154. Look-thru treatment of payments between related controlled
foreign corporations under foreign personal
holding company rules.
Sec. 155. Reduction in corporate rate for qualified timber gain.
Sec. 156. Basis adjustment to stock of S corps making charitable
contributions of property.
Sec. 157. Empowerment zone tax incentives.
Sec. 158. Tax incentives for investment in the District of Columbia.
Sec. 159. Renewal community tax incentives.
Sec. 160. Temporary increase in limit on cover over of rum excise taxes
to Puerto Rico and the Virgin Islands.
Sec. 161. American Samoa economic development credit.
Subtitle D--Temporary Disaster Relief Provisions
PART I--National Disaster Relief
Sec. 171. Waiver of certain mortgage revenue bond requirements.
Sec. 172. Losses attributable to federally declared disasters.
Sec. 173. Special depreciation allowance for qualified disaster
property.
Sec. 174. Net operating losses attributable to federally declared
disasters.
Sec. 175. Expensing of qualified disaster expenses.
PART II--Regional Provisions
subpart a--new york liberty zone
Sec. 181. Special depreciation allowance for nonresidential and
residential real property.
Sec. 182. Tax-exempt bond financing.
subpart b--go zone
Sec. 183. Special depreciation allowance.
Sec. 184. Increase in rehabilitation credit.
Sec. 185. Work opportunity tax credit with respect to certain
individuals affected by Hurricane Katrina
for employers inside disaster areas.
subpart c--midwestern disaster areas
Sec. 191. Special rules for use of retirement funds.
Sec. 192. Exclusion of cancellation of mortgage indebtedness.
TITLE II--UNEMPLOYMENT INSURANCE, HEALTH, AND OTHER PROVISIONS
Subtitle A--Unemployment Insurance
Sec. 201. Extension of unemployment insurance provisions.
Subtitle B--Health Provisions
Sec. 211. Extension and improvement of premium assistance for COBRA
benefits.
Sec. 212. Extension of therapy caps exceptions process.
Sec. 213. Treatment of pharmacies under durable medical equipment
accreditation requirements.
Sec. 214. Enhanced payment for mental health services.
Sec. 215. Extension of ambulance add-ons.
Sec. 216. Extension of geographic floor for work.
Sec. 217. Extension of payment for technical component of certain
physician pathology services.
Sec. 218. Extension of outpatient hold harmless provision.
Sec. 219. EHR Clarification.
Sec. 220. Extension of reimbursement for all Medicare part B services
furnished by certain Indian hospitals and
clinics.
Sec. 221. Extension of certain payment rules for long-term care
hospital services and of moratorium on the
establishment of certain hospitals and
facilities.
Sec. 222. Extension of the Medicare rural hospital flexibility program.
Sec. 223. Extension of section 508 hospital reclassifications.
Sec. 224. Technical correction related to critical access hospital
services.
Sec. 225. Extension for specialized MA plans for special needs
individuals.
Sec. 226. Extension of reasonable cost contracts.
Sec. 227. Extension of particular waiver policy for employer group
plans.
Sec. 228. Extension of continuing care retirement community program.
Sec. 229. Funding outreach and assistance for low-income programs.
Sec. 230. Family-to-family health information centers.
Sec. 231. Implementation funding.
Sec. 232. Extension of ARRA increase in FMAP.
Sec. 233. Extension of gainsharing demonstration.
Subtitle C--Other Provisions
Sec. 241. Extension of use of 2009 poverty guidelines.
Sec. 242. Refunds disregarded in the administration of Federal programs
and federally assisted programs.
Sec. 243. State court improvement program.
Sec. 244. Extension of national flood insurance program.
Sec. 245. Emergency disaster assistance.
Sec. 246. Small business loan guarantee enhancement extensions.
TITLE III--PENSION FUNDING RELIEF
Subtitle A--Single Employer Plans
Sec. 301. Extended period for single-employer defined benefit plans to
amortize certain shortfall amortization
bases.
Sec. 302. Application of extended amortization period to plans subject
to prior law funding rules.
Sec. 303. Lookback for certain benefit restrictions.
Sec. 304. Lookback for credit balance rule for plans maintained by
charities.
Subtitle B--Multiemployer Plans
Sec. 311. Adjustments to funding standard account rules.
TITLE IV--OFFSET PROVISIONS
Subtitle A--Black Liquor
Sec. 401. Exclusion of unprocessed fuels from the cellulosic biofuel
producer credit.
Sec. 402. Prohibition on alternative fuel credit and alternative fuel
mixture credit for black liquor.
Subtitle B--Homebuyer Credit
Sec. 411. Technical modifications to homebuyer credit.
Subtitle C--Economic Substance
Sec. 421. Codification of economic substance doctrine; penalties.
Subtitle D--Additional Provisions
Sec. 431. Revision to the Medicare Improvement Fund.
TITLE V--SATELLITE TELEVISION EXTENSION
Sec. 500. Short title.
Subtitle A--Statutory Licenses
Sec. 501. Reference.
Sec. 502. Modifications to statutory license for satellite carriers.
Sec. 503. Modifications to statutory license for satellite carriers in
local markets.
Sec. 504. Modifications to cable system secondary transmission rights
under section 111.
Sec. 505. Certain waivers granted to providers of local-into-local
service for all DMAs.
Sec. 506. Copyright Office fees.
Sec. 507. Termination of license.
Sec. 508. Construction.
Subtitle B--Communications Provisions
Sec. 521. Reference.
Sec. 522. Extension of authority.
Sec. 523. Significantly viewed stations.
Sec. 524. Digital television transition conforming amendments.
Sec. 525. Application pending completion of rulemakings.
Sec. 526. Process for issuing qualified carrier certification.
Sec. 527. Nondiscrimination in carriage of high definition digital
signals of noncommercial educational
television stations.
Sec. 528. Savings clause regarding definitions.
Sec. 529. State public affairs broadcasts.
Subtitle C--Reports and Savings Provision
Sec. 531. Definition.
Sec. 532. Report on market based alternatives to statutory licensing.
Sec. 533. Report on communications implications of statutory licensing
modifications.
Sec. 534. Report on in-state broadcast programming.
Sec. 535. Local network channel broadcast reports.
Sec. 536. Savings provision regarding use of negotiated licenses.
Sec. 537. Effective date; noninfringement of copyright.
Subtitle D--Severability
Sec. 541. Severability.
TITLE VI--OTHER PROVISIONS
Sec. 601. Increase in the Medicare physician payment update.
Sec. 602. Election to temporarily utilize unused AMT credits determined
by domestic investment.
Sec. 603. Information reporting for rental property expense payments.
Sec. 604. Extension of low-income housing credit rules for buildings in
GO zones.
Sec. 605. Increase in information return penalties.
Sec. 606. Tax-exempt bond financing.
Sec. 607. Application of levy to payments to Federal vendors relating
to property.
Sec. 608. Election for refundable low-income housing credit for 2010.
Sec. 609. Low-income housing grant election.
Sec. 610. Rollovers from elective deferral plans to Roth designated
accounts.
Sec. 611. Modification of standards for windows, doors, and skylights
with respect to the credit for nonbusiness
energy property.
Sec. 612. Participants in government section 457 plans allowed to treat
elective deferrals as Roth contributions.
Sec. 613. Extension of special allowance for certain property.
Sec. 614. Application of bad checks penalty to electronic payments.
Sec. 615. Grants for energy efficient appliances in lieu of tax credit.
Sec. 616. Budgetary effects of legislation passed by the Senate.
Sec. 617. Senate spending disclosure.
Sec. 618. Allocation of geothermal receipts.
Sec. 619. Qualifying timber contract options.
Sec. 620. ARRA planning and reporting.
Sec. 621. GAO study.
Sec. 622. Extension and modification of section 45 credit for refined
coal from steel industry fuel.
Sec. 623. Modifications to mine rescue team training credit and
election to expense advanced mine safety
equipment.
Sec. 624. Application of continuous levy to employment tax liability of
certain Federal contractors.
TITLE VII--DETERMINATION OF BUDGETARY EFFECTS
Sec. 701. Determination of budgetary effects.
TITLE I--EXTENSION OF EXPIRING PROVISIONS
Subtitle A--Energy
SEC. 101. ALTERNATIVE MOTOR VEHICLE CREDIT FOR NEW QUALIFIED HYBRID
MOTOR VEHICLES OTHER THAN PASSENGER AUTOMOBILES AND LIGHT
TRUCKS.
(a) In General.--Paragraph (3) of section 30B(k) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to property purchased after December 31, 2009.
SEC. 102. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.
(a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
Subsection (g) of section 40A is amended by striking ``December 31,
2009'' and inserting ``December 31, 2010''.
(b) Excise Tax Credits and Outlay Payments for Biodiesel and
Renewable Diesel Fuel Mixtures.--
(1) Paragraph (6) of section 6426(c) is amended by striking
``December 31, 2009'' and inserting ``December 31, 2010''.
(2) Subparagraph (B) of section 6427(e)(6) is amended by
striking ``December 31, 2009'' and inserting ``December 31,
2010''.
(c) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after December 31, 2009.
SEC. 103. CREDIT FOR ELECTRICITY PRODUCED AT CERTAIN OPEN-LOOP BIOMASS
FACILITIES.
(a) In General.--Clause (ii) of section 45(b)(4)(B) is amended by
striking ``5-year period'' and inserting ``6-year period''.
(b) Effective Date.--The amendment made by this section shall apply
to electricity produced and sold after December 31, 2009.
SEC. 104. CREDIT FOR REFINED COAL FACILITIES.
(a) In General.--Subparagraphs (A) and (B) of section 45(d)(8) are
each amended by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(b) Effective Date.--The amendments made by this section shall
apply to facilities placed in service after December 31, 2009.
SEC. 105. CREDIT FOR PRODUCTION OF LOW SULFUR DIESEL FUEL.
(a) Applicable Period.--Paragraph (4) of section 45H(c) is amended
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall take
effect as if included in section 339 of the American Jobs Creation Act
of 2004.
SEC. 106. CREDIT FOR PRODUCING FUEL FROM COKE OR COKE GAS.
(a) In General.--Paragraph (1) of section 45K(g) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to facilities placed in service after December 31, 2009.
SEC. 107. NEW ENERGY EFFICIENT HOME CREDIT.
(a) In General.--Subsection (g) of section 45L is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to homes acquired after December 31, 2009.
SEC. 108. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR ALTERNATIVE FUEL
AND ALTERNATIVE FUEL MIXTURES.
(a) In General.--Sections 6426(d)(5), 6426(e)(3), and 6427(e)(6)(C)
are each amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after December 31, 2009.
SEC. 109. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT FERC OR
STATE ELECTRIC RESTRUCTURING POLICY FOR QUALIFIED
ELECTRIC UTILITIES.
(a) In General.--Paragraph (3) of section 451(i) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to transactions after December 31, 2009.
SEC. 110. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION FOR OIL AND
GAS FROM MARGINAL WELLS.
(a) In General.--Clause (ii) of section 613A(c)(6)(H) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
Subtitle B--Individual Tax Relief
PART I--MISCELLANEOUS PROVISIONS
SEC. 111. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND SECONDARY
SCHOOL TEACHERS.
(a) In General.--Subparagraph (D) of section 62(a)(2) is amended by
striking ``or 2009'' and inserting ``2009, or 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
SEC. 112. ADDITIONAL STANDARD DEDUCTION FOR STATE AND LOCAL REAL
PROPERTY TAXES.
(a) In General.--Subparagraph (C) of section 63(c)(1) is amended by
striking ``or 2009'' and inserting ``2009, or 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
SEC. 113. DEDUCTION OF STATE AND LOCAL SALES TAXES.
(a) In General.--Subparagraph (I) of section 164(b)(5) is amended
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
SEC. 114. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE FOR
CONSERVATION PURPOSES.
(a) In General.--Clause (vi) of section 170(b)(1)(E) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Contributions by Certain Corporate Farmers and Ranchers.--
Clause (iii) of section 170(b)(2)(B) is amended by striking ``December
31, 2009'' and inserting ``December 31, 2010''.
(c) Effective Date.--The amendments made by this section shall
apply to contributions made in taxable years beginning after December
31, 2009.
SEC. 115. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND RELATED
EXPENSES.
(a) In General.--Subsection (e) of section 222 is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
SEC. 116. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS FOR
CHARITABLE PURPOSES.
(a) In General.--Subparagraph (F) of section 408(d)(8) is amended
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to distributions made in taxable years beginning after December 31,
2009.
SEC. 117. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY STOCK IN
DETERMINING GROSS ESTATE OF NONRESIDENTS.
(a) In General.--Paragraph (3) of section 2105(d) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to estates of decedents dying after December 31, 2009.
PART II--LOW-INCOME HOUSING CREDITS
SEC. 121. ELECTION FOR REFUNDABLE LOW-INCOME HOUSING CREDIT FOR 2010.
(a) In General.--Section 42 is amended by redesignating subsection
(n) as subsection (o) and by inserting after subsection (m) the
following new subsection:
``(n) Election for Refundable Credits.--
``(1) In general.--The housing credit agency of each State
shall be allowed a credit in an amount equal to such State's
2010 low-income housing refundable credit election amount,
which shall be payable by the Secretary as provided in
paragraph (5).
``(2) 2010 low-income housing refundable credit election
amount.--For purposes of this subsection, the term `2010 low-
income housing refundable credit election amount' means, with
respect to any State, such amount as the State may elect which
does not exceed 85 percent of the product of--
``(A) the sum of--
``(i) 100 percent of the State housing
credit ceiling for 2010 which is attributable
to amounts described in clauses (i) and (iii)
of subsection (h)(3)(C), and
``(ii) 40 percent of the State housing
credit ceiling for 2010 which is attributable
to amounts described in clauses (ii) and (iv)
of such subsection, multiplied by
``(B) 10.
``(3) Coordination with non-refundable credit.--For
purposes of this section, the amounts described in clauses (i)
through (iv) of subsection (h)(3)(C) with respect to any State
for 2010 shall each be reduced by so much of such amount as is
taken into account in determining the amount of the credit
allowed with respect to such State under paragraph (1).
``(4) Special rule for basis.--Basis of a qualified low-
income building shall not be reduced by the amount of any
payment made under this subsection.
``(5) Payment of credit; use to finance low-income
buildings.--The Secretary shall pay to the housing credit
agency of each State an amount equal to the credit allowed
under paragraph (1). Rules similar to the rules of subsections
(c) and (d) of section 1602 of the American Recovery and
Reinvestment Tax Act of 2009 shall apply with respect to any
payment made under this paragraph, except that such subsection
(d) shall be applied by substituting `January 1, 2012' for
`January 1, 2011'.''.
(b) Conforming Amendment.--Section 1324(b)(2) of title 31, United
States Code, is amended by inserting ``42(n),'' after ``36A,''.
Subtitle C--Business Tax Relief
SEC. 131. RESEARCH CREDIT.
(a) In General.--Subparagraph (B) of section 41(h)(1) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) is
amended by striking ``December 31, 2009'' and inserting ``December 31,
2010''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after December 31, 2009.
SEC. 132. INDIAN EMPLOYMENT TAX CREDIT.
(a) In General.--Subsection (f) of section 45A is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
SEC. 133. NEW MARKETS TAX CREDIT.
(a) In General.--Subparagraph (F) of section 45D(f)(1) is amended
by inserting ``and 2010'' after ``2009''.
(b) Conforming Amendment.--Paragraph (3) of section 45D(f) is
amended by striking ``2014'' and inserting ``2015''.
(c) Effective Date.--The amendments made by this section shall
apply to calendar years beginning after 2009.
SEC. 134. RAILROAD TRACK MAINTENANCE CREDIT.
(a) In General.--Subsection (f) of section 45G is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to expenditures paid or incurred in taxable years beginning after
December 31, 2009.
SEC. 135. MINE RESCUE TEAM TRAINING CREDIT.
(a) In General.--Subsection (e) of section 45N is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
SEC. 136. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE DUTY
MEMBERS OF THE UNIFORMED SERVICES.
(a) In General.--Subsection (f) of section 45P is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to payments made after December 31, 2009.
SEC. 137. 5-YEAR DEPRECIATION FOR FARMING BUSINESS MACHINERY AND
EQUIPMENT.
(a) In General.--Clause (vii) of section 168(e)(3)(B) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2009.
SEC. 138. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED LEASEHOLD
IMPROVEMENTS, QUALIFIED RESTAURANT BUILDINGS AND
IMPROVEMENTS, AND QUALIFIED RETAIL IMPROVEMENTS.
(a) In General.--Clauses (iv), (v), and (ix) of section
168(e)(3)(E) are each amended by striking ``January 1, 2010'' and
inserting ``January 1, 2011''.
(b) Conforming Amendments.--
(1) Clause (i) of section 168(e)(7)(A) is amended by
striking ``if such building is placed in service after December
31, 2008, and before January 1, 2010,''.
(2) Paragraph (8) of section 168(e) is amended by striking
subparagraph (E).
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2009.
SEC. 139. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS ENTERTAINMENT
COMPLEXES.
(a) In General.--Subparagraph (D) of section 168(i)(15) is amended
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2009.
SEC. 140. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON AN INDIAN
RESERVATION.
(a) In General.--Paragraph (8) of section 168(j) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2009.
SEC. 141. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD
INVENTORY.
(a) In General.--Clause (iv) of section 170(e)(3)(C) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to contributions made after December 31, 2009.
SEC. 142. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK
INVENTORIES TO PUBLIC SCHOOLS.
(a) In General.--Clause (iv) of section 170(e)(3)(D) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to contributions made after December 31, 2009.
SEC. 143. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE CONTRIBUTIONS OF
COMPUTER INVENTORY FOR EDUCATIONAL PURPOSES.
(a) In General.--Subparagraph (G) of section 170(e)(6) is amended
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to contributions made in taxable years beginning after December 31,
2009.
SEC. 144. ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.
(a) In General.--Subsection (g) of section 179E is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2009.
SEC. 145. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND TELEVISION
PRODUCTIONS.
(a) In General.--Subsection (f) of section 181 is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to productions commencing after December 31, 2009.
SEC. 146. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.
(a) In General.--Subsection (h) of section 198 is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to expenditures paid or incurred after December 31, 2009.
SEC. 147. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE TO
DOMESTIC PRODUCTION ACTIVITIES IN PUERTO RICO.
(a) In General.--Subparagraph (C) of section 199(d)(8) is amended--
(1) by striking ``first 4 taxable years'' and inserting
``first 5 taxable years'', and
(2) by striking ``January 1, 2010'' and inserting ``January
1, 2011''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
SEC. 148. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS TO
CONTROLLING EXEMPT ORGANIZATIONS.
(a) In General.--Clause (iv) of section 512(b)(13)(E) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to payments received or accrued after December 31, 2009.
SEC. 149. EXCLUSION OF GAIN OR LOSS ON SALE OR EXCHANGE OF CERTAIN
BROWNFIELD SITES FROM UNRELATED BUSINESS INCOME.
(a) In General.--Subparagraph (K) of section 512(b)(19) is amended
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to property acquired after December 31, 2009.
SEC. 150. TIMBER REIT MODERNIZATION.
(a) In General.--Paragraph (8) of section 856(c) is amended by
striking ``means'' and all that follows and inserting ``means December
31, 2010.''.
(b) Conforming Amendments.--
(1) Subparagraph (I) of section 856(c)(2) is amended by
striking ``the first taxable year beginning after the date of
the enactment of this subparagraph'' and inserting ``in a
taxable year beginning on or before the termination date''.
(2) Clause (iii) of section 856(c)(5)(H) is amended by
inserting ``in taxable years beginning'' after
``dispositions''.
(3) Clause (v) of section 857(b)(6)(D) is amended by
inserting ``in a taxable year beginning'' after ``sale''.
(4) Subparagraph (G) of section 857(b)(6) is amended by
inserting ``in a taxable year beginning'' after ``In the case
of a sale''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after May 22, 2009.
SEC. 151. TREATMENT OF CERTAIN DIVIDENDS AND ASSETS OF REGULATED
INVESTMENT COMPANIES.
(a) In General.--Paragraphs (1)(C) and (2)(C) of section 871(k) are
each amended by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
SEC. 152. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER FIRPTA.
(a) In General.--Clause (ii) of section 897(h)(4)(A) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
take effect on January 1, 2010. Notwithstanding the preceding
sentence, such amendment shall not apply with respect to the
withholding requirement under section 1445 of the Internal
Revenue Code of 1986 for any payment made before the date of
the enactment of this Act.
(2) Amounts withheld on or before date of enactment.--In
the case of a regulated investment company--
(A) which makes a distribution after December 31,
2009, and before the date of the enactment of this Act,
and
(B) which would (but for the second sentence of
paragraph (1)) have been required to withhold with
respect to such distribution under section 1445 of such
Code,
such investment company shall not be liable to any person to
whom such distribution was made for any amount so withheld and
paid over to the Secretary of the Treasury.
SEC. 153. EXCEPTIONS FOR ACTIVE FINANCING INCOME.
(a) In General.--Sections 953(e)(10) and 954(h)(9) are each amended
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Conforming Amendment.--Section 953(e)(10) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years of foreign corporations beginning after December
31, 2009, and to taxable years of United States shareholders with or
within which any such taxable year of such foreign corporation ends.
SEC. 154. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED CONTROLLED
FOREIGN CORPORATIONS UNDER FOREIGN PERSONAL HOLDING
COMPANY RULES.
(a) In General.--Subparagraph (C) of section 954(c)(6) is amended
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years of foreign corporations beginning after December 31,
2009, and to taxable years of United States shareholders with or within
which any such taxable year of such foreign corporation ends.
SEC. 155. REDUCTION IN CORPORATE RATE FOR QUALIFIED TIMBER GAIN.
(a) In General.--Paragraph (1) of section 1201(b) is amended by
striking ``ending'' and all that follows through ``such date''.
(b) Conforming Amendment.--Paragraph (3) of section 1201(b) is
amended to read as follows:
``(3) Application of subsection.--The qualified timber gain
for any taxable year shall not exceed the qualified timber gain
which would be determined by not taking into account any
portion of such taxable year after December 31, 2010.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after May 22, 2009.
SEC. 156. BASIS ADJUSTMENT TO STOCK OF S CORPS MAKING CHARITABLE
CONTRIBUTIONS OF PROPERTY.
(a) In General.--Paragraph (2) of section 1367(a) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to contributions made in taxable years beginning after December 31,
2009.
SEC. 157. EMPOWERMENT ZONE TAX INCENTIVES.
(a) In General.--Section 1391 is amended--
(1) by striking ``December 31, 2009'' in subsection
(d)(1)(A)(i) and inserting ``December 31, 2010'', and
(2) by striking the last sentence of subsection (h)(2).
(b) Increased Exclusion of Gain on Stock of Empowerment Zone
Businesses.--Subparagraph (C) of section 1202(a)(2) is amended--
(1) by striking ``December 31, 2014'' and inserting
``December 31, 2015'', and
(2) by striking ``2014'' in the heading and inserting
``2015''.
(c) Treatment of Certain Termination Dates Specified in
Nominations.--In the case of a designation of an empowerment zone the
nomination for which included a termination date which is
contemporaneous with the date specified in subparagraph (A)(i) of
section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect
before the enactment of this Act), subparagraph (B) of such section
shall not apply with respect to such designation unless, after the date
of the enactment of this section, the entity which made such nomination
reconfirms such termination date, or amends the nomination to provide
for a new termination date, in such manner as the Secretary of the
Treasury (or the Secretary's designee) may provide.
(d) Effective Date.--The amendments made by this section shall
apply to periods after December 31, 2009.
SEC. 158. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF COLUMBIA.
(a) In General.--Subsection (f) of section 1400 is amended by
striking ``December 31, 2009'' each place it appears and inserting
``December 31, 2010''.
(b) Tax-exempt DC Empowerment Zone Bonds.--Subsection (b) of
section 1400A is amended by striking ``December 31, 2009'' and
inserting ``December 31, 2010''.
(c) Zero-percent Capital Gains Rate.--
(1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A),
(4)(A)(i), and (4)(B)(i)(I) of section 1400B(b) are each
amended by striking ``January 1, 2010'' and inserting ``January
1, 2011''.
(2) Limitation on period of gains.--
(A) In general.--Paragraph (2) of section 1400B(e)
is amended--
(i) by striking ``December 31, 2014'' and
inserting ``December 31, 2015'', and
(ii) by striking ``2014'' in the heading
and inserting ``2015''.
(B) Partnerships and s-corps.--Paragraph (2) of
section 1400B(g) is amended by striking ``December 31,
2014'' and inserting ``December 31, 2015''.
(d) First-time Homebuyer Credit.--Subsection (i) of section 1400C
is amended by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
periods after December 31, 2009.
(2) Tax-exempt dc empowerment zone bonds.--The amendment
made by subsection (b) shall apply to bonds issued after
December 31, 2009.
(3) Acquisition dates for zero-percent capital gains
rate.--The amendments made by subsection (c) shall apply to
property acquired or substantially improved after December 31,
2009.
(4) Homebuyer credit.--The amendment made by subsection (d)
shall apply to homes purchased after December 31, 2009.
SEC. 159. RENEWAL COMMUNITY TAX INCENTIVES.
(a) In General.--Subsection (b) of section 1400E is amended--
(1) by striking ``December 31, 2009'' in paragraphs (1)(A)
and (3) and inserting ``December 31, 2010'', and
(2) by striking ``January 1, 2010'' in paragraph (3) and
inserting ``January 1, 2011''.
(b) Zero-percent Capital Gains Rate.--
(1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A),
(4)(A)(i), and (4)(B)(i) of section 1400F(b) are each amended
by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(2) Limitation on period of gains.--Paragraph (2) of
section 1400F(c) is amended--
(A) by striking ``December 31, 2014'' and inserting
``December 31, 2015'', and
(B) by striking ``2014'' in the heading and
inserting ``2015''.
(3) Clerical amendment.--Subsection (d) of section 1400F is
amended by striking ``and `December 31, 2014' for `December 31,
2014'''.
(c) Commercial Revitalization Deduction.--
(1) In general.--Subsection (g) of section 1400I is amended
by striking ``December 31, 2009'' and inserting ``December 31,
2010''.
(2) Conforming amendment.--Subparagraph (A) of section
1400I(d)(2) is amended by striking ``after 2001 and before
2010'' and inserting ``which begins after 2001 and before the
date referred to in subsection (g)''.
(d) Increased Expensing Under Section 179.--Subparagraph (A) of
section 1400J(b)(1) is amended by striking ``January 1, 2010'' and
inserting ``January 1, 2011''.
(e) Treatment of Certain Termination Dates Specified in
Nominations.--In the case of a designation of a renewal community the
nomination for which included a termination date which is
contemporaneous with the date specified in subparagraph (A) of section
1400E(b)(1) of the Internal Revenue Code of 1986 (as in effect before
the enactment of this Act), subparagraph (B) of such section shall not
apply with respect to such designation unless, after the date of the
enactment of this section, the entity which made such nomination
reconfirms such termination date, or amends the nomination to provide
for a new termination date, in such manner as the Secretary of the
Treasury (or the Secretary's designee) may provide.
(f) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
periods after December 31, 2009.
(2) Acquisitions.--The amendments made by subsections
(b)(1) and (d) shall apply to acquisitions after December 31,
2009.
(3) Commercial revitalization deduction.--
(A) In general.--The amendment made by subsection
(c)(1) shall apply to buildings placed in service after
December 31, 2009.
(B) Conforming amendment.--The amendment made by
subsection (c)(2) shall apply to calendar years
beginning after December 31, 2009.
SEC. 160. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE TAXES
TO PUERTO RICO AND THE VIRGIN ISLANDS.
(a) In General.--Paragraph (1) of section 7652(f) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to distilled spirits brought into the United States after December 31,
2009.
SEC. 161. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.
(a) In General.--Subsection (d) of section 119 of division A of the
Tax Relief and Health Care Act of 2006 is amended--
(1) by striking ``first 4 taxable years'' and inserting
``first 5 taxable years'', and
(2) by striking ``January 1, 2010'' and inserting ``January
1, 2011''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
Subtitle D--Temporary Disaster Relief Provisions
PART I--NATIONAL DISASTER RELIEF
SEC. 171. WAIVER OF CERTAIN MORTGAGE REVENUE BOND REQUIREMENTS.
(a) In General.--Paragraph (11) of section 143(k) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Special Rule for Residences Destroyed in Federally Declared
Disasters.--Paragraph (13) of section 143(k), as redesignated by
subsection (c), is amended by striking ``January 1, 2010'' in
subparagraphs (A)(i) and (B)(i) and inserting ``January 1, 2011''.
(c) Technical Amendment.--Subsection (k) of section 143 is amended
by redesignating the second paragraph (12) (relating to special rules
for residences destroyed in federally declared disasters) as paragraph
(13).
(d) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendment made by this section shall apply to
bonds issued after December 31, 2009.
(2) Residences destroyed in federally declared disasters.--
The amendments made by subsection (b) shall apply with respect
to disasters occurring after December 31, 2009.
(3) Technical amendment.--The amendment made by subsection
(c) shall take effect as if included in section 709 of the Tax
Extenders and Alternative Minimum Tax Relief Act of 2008.
SEC. 172. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED DISASTERS.
(a) In General.--Subclause (I) of section 165(h)(3)(B)(i) is
amended by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(b) $500 Limitation.--Paragraph (1) of section 165(h) is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(c) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply to federally declared disasters occurring after December
31, 2009.
(2) $500 limitation.--The amendment made by subsection (b)
shall apply to taxable years beginning after December 31, 2009.
SEC. 173. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED DISASTER
PROPERTY.
(a) In General.--Subclause (I) of section 168(n)(2)(A)(ii) is
amended by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(b) Effective Date.--The amendment made by this section shall apply
to disasters occurring after December 31, 2009.
SEC. 174. NET OPERATING LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED
DISASTERS.
(a) In General.--Subclause (I) of section 172(j)(1)(A)(i) is
amended by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(b) Effective Date.--The amendment made by this section shall apply
to losses attributable to disasters occurring after December 31, 2009.
SEC. 175. EXPENSING OF QUALIFIED DISASTER EXPENSES.
(a) In General.--Subparagraph (A) of section 198A(b)(2) is amended
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to expenditures on account of disasters occurring after December 31,
2009.
PART II--REGIONAL PROVISIONS
Subpart A--New York Liberty Zone
SEC. 181. SPECIAL DEPRECIATION ALLOWANCE FOR NONRESIDENTIAL AND
RESIDENTIAL REAL PROPERTY.
(a) In General.--Subparagraph (A) of section 1400L(b)(2) is amended
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2009.
SEC. 182. TAX-EXEMPT BOND FINANCING.
(a) In General.--Subparagraph (D) of section 1400L(d)(2) is amended
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendment made by this section shall apply
to bonds issued after December 31, 2009.
Subpart B--GO Zone
SEC. 183. SPECIAL DEPRECIATION ALLOWANCE.
(a) In General.--Paragraph (6) of section 1400N(d)(6) is amended by
striking subparagraph (D).
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2009.
SEC. 184. INCREASE IN REHABILITATION CREDIT.
(a) In General.--Subsection (h) of section 1400N is amended by
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts paid or incurred after December 31, 2009.
SEC. 185. WORK OPPORTUNITY TAX CREDIT WITH RESPECT TO CERTAIN
INDIVIDUALS AFFECTED BY HURRICANE KATRINA FOR EMPLOYERS
INSIDE DISASTER AREAS.
(a) In General.--Paragraph (1) of section 201(b) of the Katrina
Emergency Tax Relief Act of 2005 is amended by striking ``4-year'' and
inserting ``5-year''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to individuals hired after August 27, 2009.
Subpart C--Midwestern Disaster Areas
SEC. 191. SPECIAL RULES FOR USE OF RETIREMENT FUNDS.
(a) In General.--Section 702(d)(10) of the Heartland Disaster Tax
Relief Act of 2008 (Public Law 110-343; 122 Stat. 3918) is amended--
(1) by striking ``January 1, 2010'' both places it appears
and inserting ``January 1, 2011'', and
(2) by striking ``December 31, 2009'' both places it
appears and inserting ``December 31, 2010''.
(b) Effective Date.--The amendments made by this section shall take
effect as if included in section 702(d)(10) of the Heartland Disaster
Tax Relief Act of 2008.
SEC. 192. EXCLUSION OF CANCELLATION OF MORTGAGE INDEBTEDNESS.
(a) In General.--Section 702(e)(4)(C) of the Heartland Disaster Tax
Relief Act of 2008 (Public Law 110-343; 122 Stat. 3918) is amended by
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
(b) Effective Date.--The amendments made by this section shall
apply to discharges of indebtedness after December 31, 2009.
TITLE II--UNEMPLOYMENT INSURANCE, HEALTH, AND OTHER PROVISIONS
Subtitle A--Unemployment Insurance
SEC. 201. EXTENSION OF UNEMPLOYMENT INSURANCE PROVISIONS.
(a) In General.--(1) Section 4007 of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is
amended--
(A) by striking ``April 5, 2010'' each place it appears and
inserting ``December 31, 2010'';
(B) in the heading for subsection (b)(2), by striking
``april 5, 2010'' and inserting ``december 31, 2010''; and
(C) in subsection (b)(3), by striking ``September 4, 2010''
and inserting ``May 31, 2011''.
(2) Section 2002(e) of the Assistance for Unemployed Workers and
Struggling Families Act, as contained in Public Law 111-5 (26 U.S.C.
3304 note; 123 Stat. 438), is amended--
(A) in paragraph (1)(B), by striking ``April 5, 2010'' and
inserting ``December 31, 2010'';
(B) in the heading for paragraph (2), by striking ``april
5, 2010'' and inserting ``december 31, 2010''; and
(C) in paragraph (3), by striking ``October 5, 2010'' and
inserting ``June 30, 2011''.
(3) Section 2005 of the Assistance for Unemployed Workers and
Struggling Families Act, as contained in Public Law 111-5 (26 U.S.C.
3304 note; 123 Stat. 444), is amended--
(A) by striking ``April 5, 2010'' each place it appears and
inserting ``January 1, 2011''; and
(B) in subsection (c), by striking ``September 4, 2010''
and inserting ``June 1, 2011''.
(4) Section 5 of the Unemployment Compensation Extension Act of
2008 (Public Law 110-449; 26 U.S.C. 3304 note) is amended by striking
``September 4, 2010'' and inserting ``May 31, 2011''.
(b) Funding.--Section 4004(e)(1) of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
and
(2) by inserting after subparagraph (D) the following new
subparagraph:
``(E) the amendments made by section 201(a)(1) of
the American Workers, State, and Business Relief Act of
2010; and''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the enactment of the Temporary Extension Act
of 2010.
Subtitle B--Health Provisions
SEC. 211. EXTENSION AND IMPROVEMENT OF PREMIUM ASSISTANCE FOR COBRA
BENEFITS.
(a) Extension of Eligibility Period.--Subsection (a)(3)(A) of
section 3001 of division B of the American Recovery and Reinvestment
Act of 2009 (Public Law 111-5), as amended by section 3 of the
Temporary Extension Act of 2010, is amended by striking ``March 31,
2010'' and inserting ``December 31, 2010''.
(b) Rules Relating to 2010 Extension.--Subsection (a) of section
3001 of division B of the American Recovery and Reinvestment Act of
2009 (Public Law 111-5), as amended by subsection (b)(1)(C), is further
amended by adding at the end the following:
``(18) Rules related to 2010 extension.--
``(A) Election to pay premiums retroactively and
maintain cobra coverage.--In the case of any premium
for a period of coverage during an assistance eligible
individual's 2010 transition period, such individual
shall be treated for purposes of any COBRA continuation
provision as having timely paid the amount of such
premium if--
``(i) such individual's qualifying event
was on or after April 1, 2010 and prior to the
date of enactment of this paragraph, and
``(ii) such individual pays, by the latest
of 60 days after the date of the enactment of
this paragraph, 30 days after the date of
provision of the notification required under
paragraph (16)(D)(ii) (as applied by
subparagraph (D) of this paragraph), or the
period described in section 4980B(f)(2)(B)(iii)
of the Internal Revenue Code of 1986, the
amount of such premium, after the application
of paragraph (1)(A).
``(B) Refunds and credits for retroactive premium
assistance eligibility.--In the case of an assistance
eligible individual who pays, with respect to any
period of COBRA continuation coverage during such
individual's 2010 transition period, the premium amount
for such coverage without regard to paragraph (1)(A),
rules similar to the rules of paragraph (12)(E) shall
apply.
``(C) 2010 transition period.--
``(i) In general.--For purposes of this
paragraph, the term `transition period' means,
with respect to any assistance eligible
individual, any period of coverage if--
``(I) such assistance eligible
individual experienced an involuntary
termination that was a qualifying event
prior to the date of enactment of the
American Workers, State, and Business
Relief Act of 2010, and
``(II) paragraph (1)(A) applies to
such period by reason of the amendments
made by section 211 of the American
Workers, State, and Business Relief Act
of 2010.
``(ii) Construction.--Any period during the
period described in subclauses (I) and (II) of
clause (i) for which the applicable premium has
been paid pursuant to subparagraph (A) shall be
treated as a period of coverage referred to in
such paragraph, irrespective of any failure to
timely pay the applicable premium (other than
pursuant to subparagraph (A)) for such period.
``(D) Notification.--Notification provisions
similar to the provisions of paragraph (16)(E) shall
apply for purposes of this paragraph.''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the provisions of section 3001 of division B
of the American Recovery and Reinvestment Act of 2009.
SEC. 212. EXTENSION OF THERAPY CAPS EXCEPTIONS PROCESS.
Section 1833(g)(5) of the Social Security Act (42 U.S.C.
1395l(g)(5)) is amended by striking ``March 31, 2010'' and inserting
``December 31, 2010''.
SEC. 213. TREATMENT OF PHARMACIES UNDER DURABLE MEDICAL EQUIPMENT
ACCREDITATION REQUIREMENTS.
(a) In General.--Section 1834(a)(20) of the Social Security Act (42
U.S.C. 1395m(a)(20)) is amended--
(1) in subparagraph (F)--
(A) in clause (i)--
(i) by striking ``clause (ii)'' and
inserting ``clauses (ii) and (iii)'';
(ii) by striking ``January 1, 2010'' and
inserting ``January 1, 2011''; and
(iii) by striking ``and'' at the end;
(B) in clause (ii)(II), by striking the period at
the end and inserting ``; and'';
(C) by inserting after clause (ii)(II) the
following new clause:
``(iii)(I) subject to subclause (II), with
respect to items and services furnished on or
after January 1, 2011, the accreditation
requirement of clause (i) shall not apply to a
pharmacy described in subparagraph (G); and
``(II) effective with respect to items and
services furnished on or after the date of the
enactment of this subparagraph, the Secretary
may apply to pharmacies quality standards and
an accreditation requirement established by the
Secretary that are an alternative to the
quality standards and accreditation requirement
otherwise applicable under this paragraph if
the Secretary determines such alternative
quality standards and accreditation requirement
are appropriate for pharmacies.''; and
(D) by adding at the end the following flush
sentence:
``If determined appropriate by the Secretary, any
alternative quality standards and accreditation
requirement established under clause (iii)(II) may
differ for categories of pharmacies established by the
Secretary (such as pharmacies described in subparagraph
(G)).''; and
(2) by adding at the end the following new subparagraph:
``(G) Pharmacy described.--A pharmacy described in
this subparagraph is a pharmacy that meets each of the
following criteria:
``(i) The total billings by the pharmacy
for such items and services under this title
are less than 5 percent of total pharmacy sales
for a previous period (of not less than 24
months) specified by the Secretary.
``(ii) The pharmacy has been enrolled under
section 1866(j) as a supplier of durable
medical equipment, prosthetics, orthotics, and
supplies, has been issued (which may include
the renewal of) a provider number for at least
2 years, and for which a final adverse action
(as defined in section 424.57(a) of title 42,
Code of Federal Regulations) has not been
imposed in the past 2 years.
``(iii) The pharmacy submits to the
Secretary an attestation, in a form and manner,
and at a time, specified by the Secretary, that
the pharmacy meets the criteria described in
clauses (i) and (ii).
``(iv) The pharmacy agrees to submit
materials as requested by the Secretary, or
during the course of an audit conducted on a
random sample of pharmacies selected annually,
to verify that the pharmacy meets the criteria
described in clauses (i) and (ii). Materials
submitted under the preceding sentence shall
include a certification by an independent
accountant on behalf of the pharmacy or the
submission of tax returns filed by the pharmacy
during the relevant periods, as requested by
the Secretary.''.
(b) Conforming Amendments.--Section 1834(a)(20)(E) of the Social
Security Act (42 U.S.C. 1395m(a)(20)(E)) is amended--
(1) in the first sentence, by striking ``The'' and
inserting ``Except as provided in the third sentence, the'';
and
(2) by adding at the end the following new sentences:
``Notwithstanding the preceding sentences, any alternative
quality standards and accreditation requirement established
under subparagraph (F)(iii)(II) shall be established through
notice and comment rulemaking. The Secretary may implement by
program instruction or otherwise subparagraph (G) after
consultation with representatives of relevant parties. The
specifications developed by the Secretary in order to implement
subparagraph (G) shall be posted on the Internet website of the
Centers for Medicare & Medicaid Services.''.
(c) Administration.--Chapter 35 of title 44, United States Code,
shall not apply to this section.
(d) Rule of Construction.--Nothing in the provisions of, or
amendments made by, this section shall be construed as affecting the
application of an accreditation requirement for pharmacies to qualify
for bidding in a competitive acquisition area under section 1847 of the
Social Security Act (42 U.S.C. 1395w-3).
(e) Waiver of 1-year Reenrollment Bar.--In the case of a pharmacy
described in subparagraph (G) of section 1834(a)(20) of the Social
Security Act, as added by subsection (a), whose billing privileges were
revoked prior to January 1, 2011, by reason of noncompliance with
subparagraph (F)(i) of such section, the Secretary of Health and Human
Services shall waive any reenrollment bar imposed pursuant to section
424.535(d) of title 42, Code of Federal Regulations (as in effect on
the date of the enactment of this Act) for such pharmacy to reapply for
such privileges.
SEC. 214. ENHANCED PAYMENT FOR MENTAL HEALTH SERVICES.
Section 138(a)(1) of the Medicare Improvements for Patients and
Providers Act of 2008 (Public Law 110-275) is amended by striking
``December 31, 2009'' and inserting ``December 31, 2010''.
SEC. 215. EXTENSION OF AMBULANCE ADD-ONS.
(a) In General.--Section 1834(l)(13) of the Social Security Act (42
U.S.C. 1395m(l)(13)) is amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i), by striking
``before January 1, 2010'' and inserting ``before
January 1, 2011''; and
(B) in each of clauses (i) and (ii), by striking
``before January 1, 2010'' and inserting ``before
January 1, 2011''.
(b) Air Ambulance Improvements.--Section 146(b)(1) of the Medicare
Improvements for Patients and Providers Act of 2008 (Public Law 110-
275) is amended by striking ``ending on December 31, 2009'' and
inserting ``ending on December 31, 2010''.
(c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the Social
Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended--
(1) in the first sentence, by striking ``2010'' and
inserting ``2011''; and
(2) by adding at the end the following new sentence: ``For
purposes of applying this subparagraph for ground ambulance
services furnished on or after January 1, 2010, and before
January 1, 2011, the Secretary shall use the percent increase
that was applicable under this subparagraph to ground ambulance
services furnished during 2009.''.
SEC. 216. EXTENSION OF GEOGRAPHIC FLOOR FOR WORK.
Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C. 1395w-
4(e)(1)(E)) is amended by striking ``before January 1, 2010'' and
inserting ``before January 1, 2011''.
SEC. 217. EXTENSION OF PAYMENT FOR TECHNICAL COMPONENT OF CERTAIN
PHYSICIAN PATHOLOGY SERVICES.
Section 542(c) of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (as enacted into law by section
1(a)(6) of Public Law 106-554), as amended by section 732 of the
Medicare Prescription Drug, Improvement, and Modernization Act of 2003
(42 U.S.C. 1395w-4 note), section 104 of division B of the Tax Relief
and Health Care Act of 2006 (42 U.S.C. 1395w-4 note), section 104 of
the Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public Law
110-173), and section 136 of the Medicare Improvements for Patients and
Providers Act of 2008 (Public Law 110-275), is amended by striking
``and 2009'' and inserting ``2009, and 2010''.
SEC. 218. EXTENSION OF OUTPATIENT HOLD HARMLESS PROVISION.
(a) In General.--Section 1833(t)(7)(D)(i) of the Social Security
Act (42 U.S.C. 1395l(t)(7)(D)(i)) is amended--
(1) in subclause (II)--
(A) in the first sentence, by striking ``2010''and
inserting ``2011''; and
(B) in the second sentence, by striking ``or 2009''
and inserting ``, 2009, or 2010''; and
(2) in subclause (III), by striking ``January 1, 2010'' and
inserting ``January 1, 2011''.
(b) Permitting All Sole Community Hospitals To Be Eligible for Hold
Harmless.--Section 1833(t)(7)(D)(i)(III) of the Social Security Act (42
U.S.C. 1395l(t)(7)(D)(i)(III)) is amended by adding at the end the
following new sentence: ``In the case of covered OPD services furnished
on or after January 1, 2010, and before January 1, 2011, the preceding
sentence shall be applied without regard to the 100-bed limitation.''.
SEC. 219. EHR CLARIFICATION.
(a) Qualification for Clinic-based Physicians.--
(1) Medicare.--Section 1848(o)(1)(C)(ii) of the Social
Security Act (42 U.S.C. 1395w-4(o)(1)(C)(ii)) is amended by
striking ``setting (whether inpatient or outpatient)'' and
inserting ``inpatient or emergency room setting''.
(2) Medicaid.--Section 1903(t)(3)(D) of the Social Security
Act (42 U.S.C. 1396b(t)(3)(D)) is amended by striking ``setting
(whether inpatient or outpatient)'' and inserting ``inpatient
or emergency room setting''.
(b) Effective Date.--The amendments made by subsection (a) shall be
effective as if included in the enactment of the HITECH Act (included
in the American Recovery and Reinvestment Act of 2009 (Public Law 111-
5)).
(c) Implementation.--Notwithstanding any other provision of law,
the Secretary may implement the amendments made by this section by
program instruction or otherwise.
SEC. 220. EXTENSION OF REIMBURSEMENT FOR ALL MEDICARE PART B SERVICES
FURNISHED BY CERTAIN INDIAN HOSPITALS AND CLINICS.
Section 1880(e)(1)(A) of the Social Security Act (42 U.S.C.
1395qq(e)(1)(A)) is amended by striking ``5-year period'' and inserting
``6-year period''.
SEC. 221. EXTENSION OF CERTAIN PAYMENT RULES FOR LONG-TERM CARE
HOSPITAL SERVICES AND OF MORATORIUM ON THE ESTABLISHMENT
OF CERTAIN HOSPITALS AND FACILITIES.
(a) Extension of Certain Payment Rules.--Section 114(c) of the
Medicare, Medicaid, and SCHIP Extension Act of 2007 (42 U.S.C. 1395ww
note), as amended by section 4302(a) of the American Recovery and
Reinvestment Act (Public Law 111-5), is amended by striking ``3-year
period'' each place it appears and inserting ``4-year period''.
(b) Extension of Moratorium.--Section 114(d)(1) of such Act (42
U.S.C. 1395ww note), as amended by section 4302(b) of the American
Recovery and Reinvestment Act (Public Law 111-5), in the matter
preceding subparagraph (A), is amended by striking ``3-year period''
and inserting ``4-year period''.
SEC. 222. EXTENSION OF THE MEDICARE RURAL HOSPITAL FLEXIBILITY PROGRAM.
Section 1820(j) of the Social Security Act (42 U.S.C. 1395i-4(j))
is amended--
(1) by striking ``2010, and for'' and inserting ``2010,
for''; and
(2) by inserting ``and for making grants to all States
under subsection (g), such sums as may be necessary in fiscal
year 2011, to remain available until expended'' before the
period at the end.
SEC. 223. EXTENSION OF SECTION 508 HOSPITAL RECLASSIFICATIONS.
(a) In General.--Subsection (a) of section 106 of division B of the
Tax Relief and Health Care Act of 2006 (42 U.S.C. 1395 note), as
amended by section 117 of the Medicare, Medicaid, and SCHIP Extension
Act of 2007 (Public Law 110-173) and section 124 of the Medicare
Improvements for Patients and Providers Act of 2008 (Public Law 110-
275), is amended by striking ``September 30, 2009'' and inserting
``September 30, 2010''.
(b) Special Rule for Fiscal Year 2010.--For purposes of
implementation of the amendment made by subsection (a), including
(notwithstanding paragraph (3) of section 117(a) of the Medicare,
Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-173), as
amended by section 124(b) of the Medicare Improvements for Patients and
Providers Act of 2008 (Public Law 110-275)) for purposes of the
implementation of paragraph (2) of such section 117(a), during fiscal
year 2010, the Secretary of Health and Human Services (in this
subsection referred to as the ``Secretary'') shall use the hospital
wage index that was promulgated by the Secretary in the Federal
Register on August 27, 2009 (74 Fed. Reg. 43754), and any subsequent
corrections.
SEC. 224. TECHNICAL CORRECTION RELATED TO CRITICAL ACCESS HOSPITAL
SERVICES.
(a) In General.--Subsections (g)(2)(A) and (l)(8) of section 1834
of the Social Security Act (42 U.S.C. 1395m) are each amended by
inserting ``101 percent of'' before ``the reasonable costs''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect as if included in the enactment of section 405(a) of the
Medicare Prescription Drug, Improvement, and Modernization Act of 2003
(Public Law 108-173; 117 Stat. 2266).
SEC. 225. EXTENSION FOR SPECIALIZED MA PLANS FOR SPECIAL NEEDS
INDIVIDUALS.
(a) In General.--Section 1859(f)(1) of the Social Security Act (42
U.S.C. 1395w-28(f)(1)) is amended by striking ``2011'' and inserting
``2012''.
(b) Temporary Extension of Authority To Operate but No Service Area
Expansion for Dual Special Needs Plans That Do Not Meet Certain
Requirements.--Section 164(c)(2) of the Medicare Improvements for
Patients and Providers Act of 2008 (Public Law 110-275) is amended by
striking ``December 31, 2010'' and inserting ``December 31, 2011''.
SEC. 226. EXTENSION OF REASONABLE COST CONTRACTS.
Section 1876(h)(5)(C)(ii) of the Social Security Act (42 U.S.C.
1395mm(h)(5)(C)(ii)) is amended, in the matter preceding subclause (I),
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
SEC. 227. EXTENSION OF PARTICULAR WAIVER POLICY FOR EMPLOYER GROUP
PLANS.
For plan year 2011 and subsequent plan years, to the extent that
the Secretary of Health and Human Services is applying the 2008 service
area extension waiver policy (as modified in the April 11, 2008,
Centers for Medicare & Medicaid Services' memorandum with the subject
``2009 Employer Group Waiver-Modification of the 2008 Service Area
Extension Waiver Granted to Certain MA Local Coordinated Care Plans'')
to Medicare Advantage coordinated care plans, the Secretary shall
extend the application of such waiver policy to employers who contract
directly with the Secretary as a Medicare Advantage private fee-for-
service plan under section 1857(i)(2) of the Social Security Act (42
U.S.C. 1395w-27(i)(2)) and that had enrollment as of January 1, 2010.
SEC. 228. EXTENSION OF CONTINUING CARE RETIREMENT COMMUNITY PROGRAM.
Notwithstanding any other provision of law, the Secretary of Health
and Human Services shall continue to conduct the Erickson Advantage
Continuing Care Retirement Community (CCRC) program under part C of
title XVIII of the Social Security Act through December 31, 2011.
SEC. 229. FUNDING OUTREACH AND ASSISTANCE FOR LOW-INCOME PROGRAMS.
(a) Additional Funding for State Health Insurance Programs.--
Subsection (a)(1)(B) of section 119 of the Medicare Improvements for
Patients and Providers Act of 2008 (42 U.S.C. 1395b-3 note) is amended
by striking ``(42 U.S.C. 1395w-23(f))'' and all that follows through
the period at the end and inserting ``(42 U.S.C. 1395w-23(f)), to the
Centers for Medicare & Medicaid Services Program Management Account--
``(i) for fiscal year 2009, of $7,500,000;
and
``(ii) for fiscal year 2010, of $6,000,000.
Amounts appropriated under this subparagraph shall
remain available until expended.''.
(b) Additional Funding for Area Agencies on Aging.--Subsection
(b)(1)(B) of such section 119 is amended by striking ``(42 U.S.C.
1395w-23(f))'' and all that follows through the period at the end and
inserting ``(42 U.S.C. 1395w-23(f)), to the Administration on Aging--
``(i) for fiscal year 2009, of $7,500,000;
and
``(ii) for fiscal year 2010, of $6,000,000.
Amounts appropriated under this subparagraph shall
remain available until expended.''.
(c) Additional Funding for Aging and Disability Resource Centers.--
Subsection (c)(1)(B) of such section 119 is amended by striking ``(42
U.S.C. 1395w-23(f))'' and all that follows through the period at the
end and inserting ``(42 U.S.C. 1395w-23(f)), to the Administration on
Aging--
``(i) for fiscal year 2009, of $5,000,000;
and
``(ii) for fiscal year 2010, of $6,000,000.
Amounts appropriated under this subparagraph shall
remain available until expended.''.
(d) Additional Funding for Contract With the National Center for
Benefits and Outreach Enrollment.--Subsection (d)(2) of such section
119 is amended by striking ``(42 U.S.C. 1395w-23(f))'' and all that
follows through the period at the end and inserting ``(42 U.S.C. 1395w-
23(f)), to the Administration on Aging--
``(i) for fiscal year 2009, of $5,000,000;
and
``(ii) for fiscal year 2010, of $2,000,000.
Amounts appropriated under this subparagraph shall
remain available until expended.''.
SEC. 230. FAMILY-TO-FAMILY HEALTH INFORMATION CENTERS.
Section 501(c)(1)(A)(iii) of the Social Security Act (42 U.S.C.
701(c)(1)(A)(iii)) is amended by striking ``fiscal year 2009'' and
inserting ``each of fiscal years 2009 through 2011''.
SEC. 231. IMPLEMENTATION FUNDING.
For purposes of carrying out the provisions of, and amendments made
by, this Act that relate to titles XVIII and XIX of the Social Security
Act, there are appropriated to the Secretary of Health and Human
Services for the Centers for Medicare & Medicaid Services Program
Management Account, from amounts in the general fund of the Treasury
not otherwise appropriated, $100,000,000. Amounts appropriated under
the preceding sentence shall remain available until expended.
SEC. 232. EXTENSION OF ARRA INCREASE IN FMAP.
Section 5001 of the American Recovery and Reinvestment Act of 2009
(Public Law 111-5) is amended--
(1) in subsection (a)(3), by striking ``first calendar
quarter'' and inserting ``first 3 calendar quarters'';
(2) in subsection (c)--
(A) in paragraph (2)(B), by striking ``July 1,
2010'' and inserting ``January 1, 2011'';
(B) in paragraph (3)(B)(i), by striking ``July 1,
2010'' each place it appears and inserting ``January 1,
2011''; and
(C) in paragraph (4)(C)(ii), by striking ``the 3-
consecutive-month period beginning with January 2010''
and inserting ``any 3-consecutive-month period that
begins after December 2009 and ends before January
2011'';
(3) in subsection (g)--
(A) in paragraph (1), by striking ``September 30,
2011'' and inserting ``March 31, 2012'';
(B) in paragraph (2)--
(i) by inserting ``of such Act'' after
``1923''; and
(ii) by adding at the end the following new
sentence: ``Voluntary contributions by a
political subdivision to the non-Federal share
of expenditures under the State Medicaid plan
or to the non-Federal share of payments under
section 1923 of the Social Security Act shall
not be considered to be required contributions
for purposes of this section.''; and
(C) by adding at the end the following:
``(3) Certification by chief executive officer.--No
additional Federal funds shall be paid to a State as a result
of this section with respect to a calendar quarter occurring
during the period beginning on January 1, 2011, and ending on
June 30, 2011, unless, not later than 45 days after the date of
enactment of this paragraph, the chief executive officer of the
State certifies that the State will request and use such
additional Federal funds.''; and
(4) in subsection (h)(3), by striking ``December 31, 2010''
and inserting ``June 30, 2011''.
SEC. 233. EXTENSION OF GAINSHARING DEMONSTRATION.
(a) In General.--Subsection (d)(3) of section 5007 of the Deficit
Reduction Act of 2005 (Public Law 109-171) is amended by inserting
``(or 21 months after the date of the enactment of the American
Workers, State, and Business Relief Act of 2010, in the case of a
demonstration project in operation as of October 1, 2008)'' after
``December 31, 2009''.
(b) Funding.--
(1) In general.--Subsection (f)(1) of such section is
amended by inserting ``and for fiscal year 2010, $1,600,000,''
after ``$6,000,000,''.
(2) Availability.--Subsection (f)(2) of such section is
amended by striking ``2010'' and inserting ``2014 or until
expended''.
(c) Reports.--
(1) Quality improvement and savings.--Subsection (e)(3) of
such section is amended by striking ``December 1, 2008'' and
inserting ``18 months after the date of the enactment of the
American Workers, State, and Business Relief Act of 2010''.
(2) Final report.--Subsection (e)(4) of such section is
amended by striking ``May 1, 2010'' and inserting ``42 months
after the date of the enactment of the American Workers, State,
and Business Relief Act of 2010''.
Subtitle C--Other Provisions
SEC. 241. EXTENSION OF USE OF 2009 POVERTY GUIDELINES.
Section 1012 of the Department of Defense Appropriations Act, 2010
(Public Law 111-118) is amended--
(1) by striking ``before March 31, 2010''; and
(2) by inserting ``for 2011'' after ``until updated poverty
guidelines''.
SEC. 242. REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL PROGRAMS
AND FEDERALLY ASSISTED PROGRAMS.
(a) In General.--Subchapter A of chapter 65 is amended by adding at
the end the following new section:
``SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL
PROGRAMS AND FEDERALLY ASSISTED PROGRAMS.
``(a) In General.--Notwithstanding any other provision of law, any
refund (or advance payment with respect to a refundable credit) made to
any individual under this title shall not be taken into account as
income, and shall not be taken into account as resources for a period
of 12 months from receipt, for purposes of determining the eligibility
of such individual (or any other individual) for benefits or assistance
(or the amount or extent of benefits or assistance) under any Federal
program or under any State or local program financed in whole or in
part with Federal funds.
``(b) Termination.--Subsection (a) shall not apply to any amount
received after December 31, 2010.''.
(b) Clerical Amendment.--The table of sections for such subchapter
is amended by adding at the end the following new item:
``Sec. 6409. Refunds disregarded in the administration of Federal
programs and federally assisted
programs.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts received after December 31, 2009.
SEC. 243. STATE COURT IMPROVEMENT PROGRAM.
Section 438 of the Social Security Act (42 U.S.C. 629h) is
amended--
(1) in subsection (c)(2)(A), by striking ``2010'' and
inserting ``2011''; and
(2) in subsection (e), by striking ``2010'' and inserting
``2011''.
SEC. 244. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.
Section 129 of the Continuing Appropriations Resolution, 2010
(Public Law 111-68), as amended by section 1005 of Public Law 111-118,
is further amended by striking ``by substituting'' and all that follows
through the period at the end, and inserting ``by substituting December
31, 2010, for the date specified in each such section.''. The amendment
made by this section shall be considered to have taken effect on
February 28, 2010.
SEC. 245. EMERGENCY DISASTER ASSISTANCE.
(a) Definitions.--Except as otherwise provided in this section, in
this section:
(1) Disaster county.--
(A) In general.--The term ``disaster county'' means
a county included in the geographic area covered by a
qualifying natural disaster declaration for the 2009
crop year.
(B) Exclusion.--The term ``disaster county'' does
not include a contiguous county.
(2) Eligible aquaculture producer.--The term ``eligible
aquaculture producer'' means an aquaculture producer that
during the 2009 calendar year, as determined by the Secretary--
(A) produced an aquaculture species for which feed
costs represented a substantial percentage of the input
costs of the aquaculture operation; and
(B) experienced a substantial price increase of
feed costs above the previous 5-year average.
(3) Eligible producer.--The term ``eligible producer''
means an agricultural producer in a disaster county.
(4) Eligible specialty crop producer.--The term ``eligible
specialty crop producer'' means an agricultural producer that,
for the 2009 crop year, as determined by the Secretary--
(A) produced, or was prevented from planting, a
specialty crop; and
(B) experienced crop losses in a disaster county
due to drought, excessive rainfall, or a related
condition.
(5) Qualifying natural disaster declaration.--The term
``qualifying natural disaster declaration'' means a natural
disaster declared by the Secretary for production losses under
section 321(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1961(a)).
(6) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(7) Specialty crop.--The term ``specialty crop'' has the
meaning given the term in section 3 of the Specialty Crops
Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621
note).
(b) Supplemental Direct Payment.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use such sums as are necessary
to make supplemental payments under sections 1103 and 1303 of
the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713,
8753) to eligible producers on farms located in disaster
counties that had at least 1 crop of economic significance
(other than fruits and vegetables or crops intended for
grazing) suffer at least a 5-percent crop loss due to a natural
disaster, including quality losses, as determined by the
Secretary, in an amount equal to 90 percent of the direct
payment the eligible producers received for the 2009 crop year
on the farm.
(2) ACRE program.--Eligible producers that received
payments under section 1105 of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8715) for the 2009 crop year and
that otherwise meet the requirements of paragraph (1) shall be
eligible to receive supplemental payments under that paragraph
in an amount equal to 112.5 percent of the reduced direct
payment the eligible producers received for the 2009 crop year
under section 1103 or 1303 of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8713, 8753).
(3) Relationship to other law.--Assistance received under
this subsection shall be included in the calculation of farm
revenue for the 2009 crop year under section 531(b)(4)(A) of
the Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and
section 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C.
2497(b)(4)(A)).
(c) Specialty Crop Assistance.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$300,000,000, to remain available until September 30, 2011, to
carry out a program of grants to States to assist eligible
specialty crop producers for losses due to a natural disaster
affecting the 2009 crops, of which not more than--
(A) $150,000,000 shall be used to assist eligible
specialty crop producers in counties that have been
declared a disaster as the result of drought; and
(B) $150,000,000 shall be used to assist eligible
specialty crop producers in counties that have been
declared a disaster as the result of excessive rainfall
or a related condition.
(2) Notification.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall notify the State
department of agriculture (or similar entity) in each State of
the availability of funds to assist eligible specialty crop
producers, including such terms as are determined by the
Secretary to be necessary for the equitable treatment of
eligible specialty crop producers.
(3) Provision of grants.--
(A) In general.--The Secretary shall make grants to
States for disaster counties on a pro rata basis based
on the value of specialty crop losses in those counties
during the 2009 calendar year, as determined by the
Secretary.
(B) Timing.--Not later than 120 days after the date
of enactment of this Act, the Secretary shall make
grants to States to provide assistance under this
subsection.
(C) Maximum grant.--The maximum amount of a grant
made to a State for counties described in paragraph
(1)(B) may not exceed $40,000,000.
(4) Requirements.--The Secretary shall make grants under
this subsection only to States that demonstrate to the
satisfaction of the Secretary that the State will--
(A) use grant funds to assist eligible specialty
crop producers;
(B) provide assistance to eligible specialty crop
producers not later than 90 days after the date on
which the State receives grant funds; and
(C) not later than 30 days after the date on which
the State provides assistance to eligible specialty
crop producers, submit to the Secretary a report that
describes--
(i) the manner in which the State provided
assistance;
(ii) the amounts of assistance provided by
type of specialty crop; and
(iii) the process by which the State
determined the levels of assistance to eligible
specialty crop producers.
(5) Prohibition.--An eligible specialty crop producer that
receives assistance under this subsection shall be ineligible
to receive assistance under subsection (b).
(6) Relation to other law.--Assistance received under this
subsection shall be included in the calculation of farm revenue
for the 2009 crop year under section 531(b)(4)(A) of the
Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and section
901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C.
2497(b)(4)(A)).
(d) Cottonseed Assistance.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than $42,000,000
to provide supplemental assistance to eligible producers and
first-handlers of the 2009 crop of cottonseed in a disaster
county.
(2) General terms.--Except as otherwise provided in this
subsection, the Secretary shall provide disaster assistance
under this subsection under the same terms and conditions as
assistance provided under section 3015 of the Emergency
Agricultural Disaster Assistance Act of 2006 (title III of
Public Law 109-234; 120 Stat. 477).
(3) Distribution of assistance.--The Secretary shall
distribute assistance to first handlers for the benefit of
eligible producers in a disaster county in an amount equal to
the product obtained by multiplying--
(A) the payment rate, as determined under paragraph
(4); and
(B) the county-eligible production, as determined
under paragraph (5).
(4) Payment rate.--The payment rate shall be equal to the
quotient obtained by dividing--
(A) the sum of the county-eligible production, as
determined under paragraph (5); by
(B) the total funds made available to carry out
this subsection.
(5) County-eligible production.--The county-eligible
production shall be equal to the product obtained by
multiplying--
(A) the number of acres planted to cotton in the
disaster county, as reported to the Secretary by first-
handlers;
(B) the expected cotton lint yield for the disaster
county, as determined by the Secretary based on the
best available information; and
(C) the national average seed-to-lint ratio, as
determined by the Secretary based on the best available
information for the 5 crop years immediately preceding
the 2009 crop, excluding the year in which the average
ratio was the highest and the year in which the average
ratio was the lowest in such period.
(e) Aquaculture Assistance.--
(1) Grant program.--
(A) In general.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use not more
than $25,000,000, to remain available until September
30, 2011, to carry out a program of grants to States to
assist eligible aquaculture producers for losses
associated with high feed input costs during the 2009
calendar year.
(B) Notification.--Not later than 60 days after the
date of enactment of this Act, the Secretary shall
notify the State department of agriculture (or similar
entity) in each State of the availability of funds to
assist eligible aquaculture producers, including such
terms as are determined by the Secretary to be
necessary for the equitable treatment of eligible
aquaculture producers.
(C) Provision of grants.--
(i) In general.--The Secretary shall make
grants to States under this subsection on a pro
rata basis based on the amount of aquaculture
feed used in each State during the 2008
calendar year, as determined by the Secretary.
(ii) Timing.--Not later than 120 days after
the date of enactment of this Act, the
Secretary shall make grants to States to
provide assistance under this subsection.
(D) Requirements.--The Secretary shall make grants
under this subsection only to States that demonstrate
to the satisfaction of the Secretary that the State
will--
(i) use grant funds to assist eligible
aquaculture producers;
(ii) provide assistance to eligible
aquaculture producers not later than 60 days
after the date on which the State receives
grant funds; and
(iii) not later than 30 days after the date
on which the State provides assistance to
eligible aquaculture producers, submit to the
Secretary a report that describes--
(I) the manner in which the State
provided assistance;
(II) the amounts of assistance
provided per species of aquaculture;
and
(III) the process by which the
State determined the levels of
assistance to eligible aquaculture
producers.
(2) Reduction in payments.--An eligible aquaculture
producer that receives assistance under this subsection shall
not be eligible to receive any other assistance under the
supplemental agricultural disaster assistance program
established under section 531 of the Federal Crop Insurance Act
(7 U.S.C. 1531) and section 901 of the Trade Act of 1974 (19
U.S.C. 2497) for any losses in 2009 relating to the same
species of aquaculture.
(3) Report to congress.--Not later than 240 days after the
date of enactment of this Act, the Secretary shall submit to
the appropriate committees of Congress a report that--
(A) describes in detail the manner in which this
subsection has been carried out; and
(B) includes the information reported to the
Secretary under paragraph (1)(D)(iii).
(f) Hawaii Transportation Cooperative.--Notwithstanding any other
provision of law, the Secretary shall use $21,000,000 of funds of the
Commodity Credit Corporation to make a payment to an agricultural
transportation cooperative in the State of Hawaii, the members of which
are eligible to participate in the commodity loan program of the Farm
Service Agency, for assistance to maintain and develop employment.
(g) Livestock Forage Disaster Program.--
(1) Definition of disaster county.--In this subsection:
(A) In general.--The term ``disaster county'' means
a county included in the geographic area covered by a
qualifying natural disaster declaration announced by
the Secretary in calendar year 2009.
(B) Inclusion.--The term ``disaster county''
includes a contiguous county.
(2) Payments.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than $50,000,000
to carry out a program to make payments to eligible producers
that had grazing losses in disaster counties in calendar year
2009.
(3) Criteria.--
(A) In general.--Except as provided in subparagraph
(B), assistance under this subsection shall be
determined under the same criteria as are used to carry
out the programs under section 531(d) of the Federal
Crop Insurance Act (7 U.S.C. 1531(d)) and section
901(d) of the Trade Act of 1974 (19 U.S.C. 2497(d)).
(B) Drought intensity.--For purposes of this
subsection, an eligible producer shall not be required
to meet the drought intensity requirements of section
531(d)(3)(D)(ii) of the Federal Crop Insurance Act (7
U.S.C. 1531(d)(3)(D)(ii)) and section 901(d)(3)(D)(ii)
of the Trade Act of 1974 (19 U.S.C. 2497(d)(3)(D)(ii)).
(4) Amount.--Assistance under this subsection shall be in
an amount equal to 1 monthly payment using the monthly payment
rate under section 531(d)(3)(B) of the Federal Crop Insurance
Act (7 U.S.C. 1531(d)(3)(B)) and section 901(d)(3)(B) of the
Trade Act of 1974 (19 U.S.C. 2497(d)(3)(B)).
(5) Relation to other law.--An eligible producer that
receives assistance under this subsection shall be ineligible
to receive assistance for 2009 grazing losses under the program
carried out under section 531(d) of the Federal Crop Insurance
Act (7 U.S.C. 1531(d)) and section 901(d) of the Trade Act of
1974 (19 U.S.C. 2497(d)).
(h) Emergency Loans for Poultry Producers.--
(1) Definitions.--In this subsection:
(A) Announcement date.--The term ``announcement
date'' means the date on which the Secretary announces
the emergency loan program under this subsection.
(B) Poultry integrator.--The term ``poultry
integrator'' means a poultry integrator that filed
proceedings under chapter 11 of title 11, United States
Code, in United States Bankruptcy Court during the 30-
day period beginning on December 1, 2008.
(2) Loan program.--
(A) In general.--Of the funds of the Commodity
Credit Corporation, the Secretary shall use not more
than $75,000,000, to remain available until expended,
for the cost of making no-interest emergency loans
available to poultry producers that meet the
requirements of this subsection.
(B) Terms and conditions.--Except as otherwise
provided in this subsection, emergency loans under this
subsection shall be subject to such terms and
conditions as are determined by the Secretary.
(3) Loans.--
(A) In general.--An emergency loan made to a
poultry producer under this subsection shall be for the
purpose of providing financing to the poultry producer
in response to financial losses associated with the
termination or nonrenewal of any contract between the
poultry producer and a poultry integrator.
(B) Eligibility.--
(i) In general.--To be eligible for an
emergency loan under this subsection, not later
than 90 days after the announcement date, a
poultry producer shall submit to the Secretary
evidence that--
(I) the contract of the poultry
producer described in subparagraph (A)
was not continued; and
(II) no similar contract has been
awarded subsequently to the poultry
producer.
(ii) Requirement to offer loans.--
Notwithstanding any other provision of law, if
a poultry producer meets the eligibility
requirements described in clause (i), subject
to the availability of funds under paragraph
(2)(A), the Secretary shall offer to make a
loan under this subsection to the poultry
producer with a minimum term of 2 years.
(4) Additional requirements.--
(A) In general.--A poultry producer that receives
an emergency loan under this subsection may use the
emergency loan proceeds only to repay the amount that
the poultry producer owes to any lender for the
purchase, improvement, or operation of the poultry
farm.
(B) Conversion of the loan.--A poultry producer
that receives an emergency loan under this subsection
shall be eligible to have the balance of the emergency
loan converted, but not refinanced, to a loan that has
the same terms and conditions as an operating loan
under subtitle B of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1941 et seq.).
(i) State and Local Governments.--Section 1001(f)(6)(A) of the Food
Security Act of 1985 (7 U.S.C. 1308(f)(6)(A)) is amended by inserting
``(other than the conservation reserve program established under
subchapter B of chapter 1 of subtitle D of title XII of this Act)''
before the period at the end.
(j) Administration.--
(1) Regulations.--
(A) In general.--As soon as practicable after the
date of enactment of this Act, the Secretary shall
promulgate such regulations as are necessary to
implement this section and the amendment made by this
section.
(B) Procedure.--The promulgation of the regulations
and administration of this section and the amendment
made by this section shall be made without regard to--
(i) the notice and comment provisions of
section 553 of title 5, United States Code;
(ii) the Statement of Policy of the
Secretary of Agriculture effective July 24,
1971 (36 Fed. Reg. 13804), relating to notices
of proposed rulemaking and public participation
in rulemaking; and
(iii) chapter 35 of title 44, United States
Code (commonly known as the ``Paperwork
Reduction Act'').
(C) Congressional review of agency rulemaking.--In
carrying out this paragraph, the Secretary shall use
the authority provided under section 808 of title 5,
United States Code.
(2) Administrative costs.--Of the funds of the Commodity
Credit Corporation, the Secretary may use up to $10,000,000 to
pay administrative costs incurred by the Secretary that are
directly related to carrying out this Act.
(3) Prohibition.--None of the funds of the Agricultural
Disaster Relief Trust Fund established under section 902 of the
Trade Act of 1974 (19 U.S.C. 2497a) may be used to carry out
this Act.
SEC. 246. SMALL BUSINESS LOAN GUARANTEE ENHANCEMENT EXTENSIONS.
(a) Appropriation.--There is appropriated, out of any funds in the
Treasury not otherwise appropriated, for an additional amount for
``Small Business Administration - Business Loans Program Account'',
$560,000,000, to remain available through December 31, 2010, for the
cost of--
(1) fee reductions and eliminations under section 501 of
division A of the American Recovery and Reinvestment Act of
2009 (Public Law 111-5; 123 Stat. 151), as amended by this
section, for loans guaranteed under section 7(a) of the Small
Business Act (15 U.S.C. 636(a)), title V of the Small Business
Investment Act of 1958 (15 U.S.C. 695 et seq.), or section 502
of division A of the American Recovery and Reinvestment Act of
2009 (Public Law 111-5; 123 Stat. 152), as amended by this
section; and
(2) loan guarantees under section 502 of division A of the
American Recovery and Reinvestment Act of 2009 (Public Law 111-
5; 123 Stat. 152), as amended by this section,
Provided, That such costs, including the cost of modifying such loans,
shall be as defined in section 502 of the Congressional Budget Act of
1974.
(b) Extension of Programs.--
(1) Fees.--Section 501 of division A of the American
Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123
Stat. 151) is amended by striking ``September 30, 2010'' each
place it appears and inserting ``December 31, 2010''.
(2) Loan guarantees.--Section 502(f) of division A of the
American Recovery and Reinvestment Act of 2009 (Public Law 111-
5; 123 Stat. 153) is amended by striking ``March 28, 2010'' and
inserting ``December 31, 2010''.
(3) Effective date for loan guarantees.--The amendment made
by paragraph (2) shall take effect on February 27, 2010.
TITLE III--PENSION FUNDING RELIEF
Subtitle A--Single Employer Plans
SEC. 301. EXTENDED PERIOD FOR SINGLE-EMPLOYER DEFINED BENEFIT PLANS TO
AMORTIZE CERTAIN SHORTFALL AMORTIZATION BASES.
(a) Amendments to ERISA.--
(1) In general.--Paragraph (2) of section 303(c) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1083(c)) is amended by adding at the end the following
subparagraph:
``(D) Special election for eligible plan years.--
``(i) In general.--If a plan sponsor elects
to apply this subparagraph with respect to the
shortfall amortization base of a plan for any
eligible plan year (in this subparagraph and
paragraph (7) referred to as an `election
year'), then, notwithstanding subparagraphs (A)
and (B)--
``(I) the shortfall amortization
installments with respect to such base
shall be determined under clause (ii)
or (iii), whichever is specified in the
election, and
``(II) the shortfall amortization
installment for any plan year in the 9-
plan-year period described in clause
(ii) or the 15-plan-year period
described in clause (iii),
respectively, with respect to such
shortfall amortization base is the
annual installment determined under the
applicable clause for that year for
that base.
``(ii) 2 plus 7 amortization schedule.--The
shortfall amortization installments determined
under this clause are--
``(I) in the case of the first 2
plan years in the 9-plan-year period
beginning with the election year,
interest on the shortfall amortization
base of the plan for the election year
(determined using the effective
interest rate for the plan for the
election year), and
``(II) in the case of the last 7
plan years in such 9-plan-year period,
the amounts necessary to amortize the
remaining balance of the shortfall
amortization base of the plan for the
election year in level annual
installments over such last 7 plan
years (using the segment rates under
subparagraph (C) for the election
year).
``(iii) 15-year amortization.--The
shortfall amortization installments determined
under this subparagraph are the amounts
necessary to amortize the shortfall
amortization base of the plan for the election
year in level annual installments over the 15-
plan-year period beginning with the election
year (using the segment rates under
subparagraph (C) for the election year).
``(iv) Election.--
``(I) In general.--The plan sponsor
of a plan may elect to have this
subparagraph apply to not more than 2
eligible plan years with respect to the
plan, except that in the case of a plan
described in section 106 of the Pension
Protection Act of 2006, the plan
sponsor may only elect to have this
subparagraph apply to a plan year
beginning in 2011.
``(II) Amortization schedule.--Such
election shall specify whether the
amortization schedule under clause (ii)
or (iii) shall apply to an election
year, except that if a plan sponsor
elects to have this subparagraph apply
to 2 eligible plan years, the plan
sponsor must elect the same schedule
for both years.
``(III) Other rules.--Such election
shall be made at such time, and in such
form and manner, as shall be prescribed
by the Secretary of the Treasury, and
may be revoked only with the consent of
the Secretary of the Treasury. The
Secretary of the Treasury shall, before
granting a revocation request, provide
the Pension Benefit Guaranty
Corporation an opportunity to comment
on the conditions applicable to the
treatment of any portion of the
election year shortfall amortization
base that remains unamortized as of the
revocation date.
``(v) Eligible plan year.--For purposes of
this subparagraph, the term `eligible plan
year' means any plan year beginning in 2008,
2009, 2010, or 2011, except that a plan year
shall only be treated as an eligible plan year
if the due date under subsection (j)(1) for the
payment of the minimum required contribution
for such plan year occurs on or after the date
of the enactment of this subparagraph.
``(vi) Reporting.--A plan sponsor of a plan
who makes an election under clause (i) shall--
``(I) give notice of the election
to participants and beneficiaries of
the plan, and
``(II) inform the Pension Benefit
Guaranty Corporation of such election
in such form and manner as the Director
of the Pension Benefit Guaranty
Corporation may prescribe.
``(vii) Increases in required installments
in certain cases.--For increases in required
contributions in cases of excess compensation
or extraordinary dividends or stock
redemptions, see paragraph (7).''.
(2) Increases in required installments in certain cases.--
Section 303(c) of the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1083(c)) is amended by adding at the end the
following paragraph:
``(7) Increases in alternate required installments in cases
of excess compensation or extraordinary dividends or stock
redemptions.--
``(A) In general.--If there is an installment
acceleration amount with respect to a plan for any plan
year in the restriction period with respect to an
election year under paragraph (2)(D), then the
shortfall amortization installment otherwise determined
and payable under such paragraph for such plan year
shall, subject to the limitation under subparagraph
(B), be increased by such amount.
``(B) Total installments limited to shortfall
base.--Subject to rules prescribed by the Secretary of
the Treasury, if a shortfall amortization installment
with respect to any shortfall amortization base for an
election year is required to be increased for any plan
year under subparagraph (A)--
``(i) such increase shall not result in the
amount of such installment exceeding the
present value of such installment and all
succeeding installments with respect to such
base (determined without regard to such
increase but after application of clause (ii)),
and
``(ii) subsequent shortfall amortization
installments with respect to such base shall,
in reverse order of the otherwise required
installments, be reduced to the extent
necessary to limit the present value of such
subsequent shortfall amortization installments
(after application of this paragraph) to the
present value of the remaining unamortized
shortfall amortization base.
``(C) Installment acceleration amount.--For
purposes of this paragraph--
``(i) In general.--The term `installment
acceleration amount' means, with respect to any
plan year in a restriction period with respect
to an election year, the sum of--
``(I) the aggregate amount of
excess employee compensation determined
under subparagraph (D) with respect to
all employees for the plan year, plus
``(II) the aggregate amount of
extraordinary dividends and redemptions
determined under subparagraph (E) for
the plan year.
``(ii) Annual limitation.--The installment
acceleration amount for any plan year shall not
exceed the excess (if any) of--
``(I) the sum of the shortfall
amortization installments for the plan
year and all preceding plan years in
the amortization period elected under
paragraph (2)(D) with respect to the
shortfall amortization base with
respect to an election year, determined
without regard to paragraph (2)(D) and
this paragraph, over
``(II) the sum of the shortfall
amortization installments for such plan
year and all such preceding plan years,
determined after application of
paragraph (2)(D) (and in the case of
any preceding plan year, after
application of this paragraph).
``(iii) Carryover of excess installment
acceleration amounts.--
``(I) In general.--If the
installment acceleration amount for any
plan year (determined without regard to
clause (ii)) exceeds the limitation
under clause (ii), then, subject to
subclause (II), such excess shall be
treated as an installment acceleration
amount with respect to the succeeding
plan year.
``(II) Cap to apply.--If any amount
treated as an installment acceleration
amount under subclause (I) or this
subclause with respect any succeeding
plan year, when added to other
installment acceleration amounts
(determined without regard to clause
(ii)) with respect to the plan year,
exceeds the limitation under clause
(ii), the portion of such amount
representing such excess shall be
treated as an installment acceleration
amount with respect to the next
succeeding plan year.
``(III) Limitation on years to
which amounts carried for.--No amount
shall be carried under subclause (I) or
(II) to a plan year which begins after
the first plan year following the last
plan year in the restriction period (or
after the second plan year following
such last plan year in the case of an
election year with respect to which 15-
year amortization was elected under
paragraph (2)(D)).
``(IV) Ordering rules.--For
purposes of applying subclause (II),
installment acceleration amounts for
the plan year (determined without
regard to any carryover under this
clause) shall be applied first against
the limitation under clause (ii) and
then carryovers to such plan year shall
be applied against such limitation on a
first-in, first-out basis.
``(D) Excess employee compensation.--For purposes
of this paragraph--
``(i) In general.--The term `excess
employee compensation' means, with respect to
any employee for any plan year, the excess (if
any) of--
``(I) the aggregate amount
includible in income under chapter 1 of
the Internal Revenue Code of 1986 for
remuneration during the calendar year
in which such plan year begins for
services performed by the employee for
the plan sponsor (whether or not
performed during such calendar year),
over
``(II) $1,000,000.
``(ii) Amounts set aside for nonqualified
deferred compensation.--If during any calendar
year assets are set aside or reserved (directly
or indirectly) in a trust (or other arrangement
as determined by the Secretary of the
Treasury), or transferred to such a trust or
other arrangement, by a plan sponsor for
purposes of paying deferred compensation of an
employee under a nonqualified deferred
compensation plan (as defined in section 409A
of such Code) of the plan sponsor, then, for
purposes of clause (i), the amount of such
assets shall be treated as remuneration of the
employee includible in income for the calendar
year unless such amount is otherwise includible
in income for such year. An amount to which the
preceding sentence applies shall not be taken
into account under this paragraph for any
subsequent calendar year.
``(iii) Only remuneration for certain post-
2009 services counted.--Remuneration shall be
taken into account under clause (i) only to the
extent attributable to services performed by
the employee for the plan sponsor after
February 28, 2010.
``(iv) Exception for certain equity
payments.--
``(I) In general.--There shall not
be taken into account under clause
(i)(I) any amount includible in income
with respect to the granting after
February 28, 2010, of service recipient
stock (within the meaning of section
409A of the Internal Revenue Code of
1986) that, upon such grant, is subject
to a substantial risk of forfeiture (as
defined under section 83(c)(1) of such
Code) for at least 5 years from the
date of such grant.
``(II) Secretarial authority.--The
Secretary of the Treasury may by
regulation provide for the application
of this clause in the case of a person
other than a corporation.
``(v) Other exceptions.--The following
amounts includible in income shall not be taken
into account under clause (i)(I):
``(I) Commissions.--Any
remuneration payable on a commission
basis solely on account of income
directly generated by the individual
performance of the individual to whom
such remuneration is payable.
``(II) Certain payments under
existing contracts.--Any remuneration
consisting of nonqualified deferred
compensation, restricted stock, stock
options, or stock appreciation rights
payable or granted under a written
binding contract that was in effect on
March 1, 2010, and which was not
modified in any material respect before
such remuneration is paid.
``(vi) Self-employed individual treated as
employee.--The term `employee' includes, with
respect to a calendar year, a self-employed
individual who is treated as an employee under
section 401(c) of such Code for the taxable
year ending during such calendar year, and the
term `compensation' shall include earned income
of such individual with respect to such self-
employment.
``(vii) Indexing of amount.--In the case of
any calendar year beginning after 2010, the
dollar amount under clause (i)(II) shall be
increased by an amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) of such Code for the calendar
year, determined by substituting
`calendar year 2009' for `calendar year
1992' in subparagraph (B) thereof.
If the amount of any increase under clause (i)
is not a multiple of $1,000, such increase
shall be rounded to the next lowest multiple of
$1,000.
``(E) Extraordinary dividends and redemptions.--
``(i) In general.--The amount determined
under this subparagraph for any plan year is
the excess (if any) of the sum of the dividends
declared during the plan year by the plan
sponsor plus the aggregate amount paid for the
redemption of stock of the plan sponsor
redeemed during the plan year over the greater
of--
``(I) the adjusted net income
(within the meaning of section 4043) of
the plan sponsor for the preceding plan
year, determined without regard to any
reduction by reason of interest, taxes,
depreciation, or amortization, or
``(II) in the case of a plan
sponsor that determined and declared
dividends in the same manner for at
least 5 consecutive years immediately
preceding such plan year, the aggregate
amount of dividends determined and
declared for such plan year using such
manner.
``(ii) Only certain post-2009 dividends and
redemptions counted.--For purposes of clause
(i), there shall only be taken into account
dividends declared, and redemptions occurring,
after February 28, 2010.
``(iii) Exception for intra-group
dividends.--Dividends paid by one member of a
controlled group (as defined in section
302(d)(3)) to another member of such group
shall not be taken into account under clause
(i).
``(iv) Exception for certain redemptions.--
Redemptions that are made pursuant to a plan
maintained with respect to employees, or that
are made on account of the death, disability,
or termination of employment of an employee or
shareholder, shall not be taken into account
under clause (i).
``(v) Exception for certain preferred
stock.--
``(I) In general.--Dividends and
redemptions with respect to applicable
preferred stock shall not be taken into
account under clause (i) to the extent
that dividends accrue with respect to
such stock at a specified rate in all
events and without regard to the plan
sponsor's income, and interest accrues
on any unpaid dividends with respect to
such stock.
``(II) Applicable preferred
stock.--For purposes of subclause (I),
the term `applicable preferred stock'
means preferred stock which was issued
before March 1, 2010 (or which was
issued after such date and is held by
an employee benefit plan subject to the
provisions of this title).
``(F) Other definitions and rules.--For purposes of
this paragraph--
``(i) Plan sponsor.--The term ` plan
sponsor' includes any member of the plan
sponsor's controlled group (as defined in
section 302(d)(3)).
``(ii) Restriction period.--The term
`restriction period' means, with respect to any
election year--
``(I) except as provided in
subclause (II), the 3-year period
beginning with the election year (or,
if later, the first plan year beginning
after December 31, 2009), and
``(II) if the plan sponsor elects
15-year amortization for the shortfall
amortization base for the election
year, the 5-year period beginning with
the election year (or, if later, the
first plan year beginning after
December 31, 2009).
``(iii) Elections for multiple plans.--If a
plan sponsor makes elections under paragraph
(2)(D) with respect to 2 or more plans, the
Secretary of the Treasury shall provide rules
for the application of this paragraph to such
plans, including rules for the ratable
allocation of any installment acceleration
amount among such plans on the basis of each
plan's relative reduction in the plan's
shortfall amortization installment for the
first plan year in the amortization period
described in subparagraph (A) (determined
without regard to this paragraph).
``(iv) Mergers and acquisitions.--The
Secretary of the Treasury shall prescribe rules
for the application of paragraph (2)(D) and
this paragraph in any case where there is a
merger or acquisition involving a plan sponsor
making the election under paragraph (2)(D).''.
(3) Conforming amendments.--Section 303 of such Act (29
U.S.C. 1083) is amended--
(A) in subsection (c)(1), by striking ``the
shortfall amortization bases for such plan year and
each of the 6 preceding plan years'' and inserting
``any shortfall amortization base which has not been
fully amortized under this subsection'', and
(B) in subsection (j)(3), by adding at the end the
following:
``(F) Quarterly contributions not to include
certain increased contributions.--Subparagraph (D)
shall be applied without regard to any increase under
subsection (c)(7).''.
(b) Amendments to Internal Revenue Code of 1986.--
(1) In general.--Paragraph (2) of section 430(c) is amended
by adding at the end the following subparagraph:
``(D) Special election for eligible plan years.--
``(i) In general.--If a plan sponsor elects
to apply this subparagraph with respect to the
shortfall amortization base of a plan for any
eligible plan year (in this subparagraph and
paragraph (7) referred to as an `election
year'), then, notwithstanding subparagraphs (A)
and (B)--
``(I) the shortfall amortization
installments with respect to such base
shall be determined under clause (ii)
or (iii), whichever is specified in the
election, and
``(II) the shortfall amortization
installment for any plan year in the 9-
plan-year period described in clause
(ii) or the 15-plan-year period
described in clause (iii),
respectively, with respect to such
shortfall amortization base is the
annual installment determined under the
applicable clause for that year for
that base.
``(ii) 2 plus 7 amortization schedule.--The
shortfall amortization installments determined
under this clause are--
``(I) in the case of the first 2
plan years in the 9-plan-year period
beginning with the election year,
interest on the shortfall amortization
base of the plan for the election year
(determined using the effective
interest rate for the plan for the
election year), and
``(II) in the case of the last 7
plan years in such 9-plan-year period,
the amounts necessary to amortize the
remaining balance of the shortfall
amortization base of the plan for the
election year in level annual
installments over such last 7 plan
years (using the segment rates under
subparagraph (C) for the election
year).
``(iii) 15-year amortization.--The
shortfall amortization installments determined
under this subparagraph are the amounts
necessary to amortize the shortfall
amortization base of the plan for the election
year in level annual installments over the 15-
plan-year period beginning with the election
year (using the segment rates under
subparagraph (C) for the election year).
``(iv) Election.--
``(I) In general.--The plan sponsor
of a plan may elect to have this
subparagraph apply to not more than 2
eligible plan years with respect to the
plan, except that in the case of a plan
described in section 106 of the Pension
Protection Act of 2006, the plan
sponsor may only elect to have this
subparagraph apply to a plan year
beginning in 2011.
``(II) Amortization schedule.--Such
election shall specify whether the
amortization schedule under clause (ii)
or (iii) shall apply to an election
year, except that if a plan sponsor
elects to have this subparagraph apply
to 2 eligible plan years, the plan
sponsor must elect the same schedule
for both years.
``(III) Other rules.--Such election
shall be made at such time, and in such
form and manner, as shall be prescribed
by the Secretary, and may be revoked
only with the consent of the Secretary.
The Secretary shall, before granting a
revocation request, provide the Pension
Benefit Guaranty Corporation an
opportunity to comment on the
conditions applicable to the treatment
of any portion of the election year
shortfall amortization base that
remains unamortized as of the
revocation date.
``(v) Eligible plan year.--For purposes of
this subparagraph, the term `eligible plan
year' means any plan year beginning in 2008,
2009, 2010, or 2011, except that a plan year
shall only be treated as an eligible plan year
if the due date under subsection (j)(1) for the
payment of the minimum required contribution
for such plan year occurs on or after the date
of the enactment of this subparagraph.
``(vi) Reporting.--A plan sponsor of a plan
who makes an election under clause (i) shall--
``(I) give notice of the election
to participants and beneficiaries of
the plan, and
``(II) inform the Pension Benefit
Guaranty Corporation of such election
in such form and manner as the Director
of the Pension Benefit Guaranty
Corporation may prescribe.
``(vii) Increases in required installments
in certain cases.--For increases in required
contributions in cases of excess compensation
or extraordinary dividends or stock
redemptions, see paragraph (7).''.
(2) Increases in required contributions if excess
compensation paid.--Section 430(c) is amended by adding at the
end the following paragraph:
``(7) Increases in alternate required installments in cases
of excess compensation or extraordinary dividends or stock
redemptions.--
``(A) In general.--If there is an installment
acceleration amount with respect to a plan for any plan
year in the restriction period with respect to an
election year under paragraph (2)(D), then the
shortfall amortization installment otherwise determined
and payable under such paragraph for such plan year
shall, subject to the limitation under subparagraph
(B), be increased by such amount.
``(B) Total installments limited to shortfall
base.--Subject to rules prescribed by the Secretary, if
a shortfall amortization installment with respect to
any shortfall amortization base for an election year is
required to be increased for any plan year under
subparagraph (A)--
``(i) such increase shall not result in the
amount of such installment exceeding the
present value of such installment and all
succeeding installments with respect to such
base (determined without regard to such
increase but after application of clause (ii)),
and
``(ii) subsequent shortfall amortization
installments with respect to such base shall,
in reverse order of the otherwise required
installments, be reduced to the extent
necessary to limit the present value of such
subsequent shortfall amortization installments
(after application of this paragraph) to the
present value of the remaining unamortized
shortfall amortization base.
``(C) Installment acceleration amount.--For
purposes of this paragraph--
``(i) In general.--The term `installment
acceleration amount' means, with respect to any
plan year in a restriction period with respect
to an election year, the sum of--
``(I) the aggregate amount of
excess employee compensation determined
under subparagraph (D) with respect to
all employees for the plan year, plus
``(II) the aggregate amount of
extraordinary dividends and redemptions
determined under subparagraph (E) for
the plan year.
``(ii) Annual limitation.--The installment
acceleration amount for any plan year shall not
exceed the excess (if any) of--
``(I) the sum of the shortfall
amortization installments for the plan
year and all preceding plan years in
the amortization period elected under
paragraph (2)(D) with respect to the
shortfall amortization base with
respect to an election year, determined
without regard to paragraph (2)(D) and
this paragraph, over
``(II) the sum of the shortfall
amortization installments for such plan
year and all such preceding plan years,
determined after application of
paragraph (2)(D) (and in the case of
any preceding plan year, after
application of this paragraph).
``(iii) Carryover of excess installment
acceleration amounts.--
``(I) In general.--If the
installment acceleration amount for any
plan year (determined without regard to
clause (ii)) exceeds the limitation
under clause (ii), then, subject to
subclause (II), such excess shall be
treated as an installment acceleration
amount with respect to the succeeding
plan year.
``(II) Cap to apply.--If any amount
treated as an installment acceleration
amount under subclause (I) or this
subclause with respect any succeeding
plan year, when added to other
installment acceleration amounts
(determined without regard to clause
(ii)) with respect to the plan year,
exceeds the limitation under clause
(ii), the portion of such amount
representing such excess shall be
treated as an installment acceleration
amount with respect to the next
succeeding plan year.
``(III) Limitation on years to
which amounts carried for.--No amount
shall be carried under subclause (I) or
(II) to a plan year which begins after
the first plan year following the last
plan year in the restriction period (or
after the second plan year following
such last plan year in the case of an
election year with respect to which 15-
year amortization was elected under
paragraph (2)(D)).
``(IV) Ordering rules.--For
purposes of applying subclause (II),
installment acceleration amounts for
the plan year (determined without
regard to any carryover under this
clause) shall be applied first against
the limitation under clause (ii) and
then carryovers to such plan year shall
be applied against such limitation on a
first-in, first-out basis.
``(D) Excess employee compensation.--For purposes
of this paragraph--
``(i) In general.--The term `excess
employee compensation' means, with respect to
any employee for any plan year, the excess (if
any) of--
``(I) the aggregate amount
includible in income under this chapter
for remuneration during the calendar
year in which such plan year begins for
services performed by the employee for
the plan sponsor (whether or not
performed during such calendar year),
over
``(II) $1,000,000.
``(ii) Amounts set aside for nonqualified
deferred compensation.--If during any calendar
year assets are set aside or reserved (directly
or indirectly) in a trust (or other arrangement
as determined by the Secretary), or transferred
to such a trust or other arrangement, by a plan
sponsor for purposes of paying deferred
compensation of an employee under a
nonqualified deferred compensation plan (as
defined in section 409A) of the plan sponsor,
then, for purposes of clause (i), the amount of
such assets shall be treated as remuneration of
the employee includible in income for the
calendar year unless such amount is otherwise
includible in income for such year. An amount
to which the preceding sentence applies shall
not be taken into account under this paragraph
for any subsequent calendar year.
``(iii) Only remuneration for certain post-
2009 services counted.--Remuneration shall be
taken into account under clause (i) only to the
extent attributable to services performed by
the employee for the plan sponsor after
February 28, 2010.
``(iv) Exception for certain equity
payments.--
``(I) In general.--There shall not
be taken into account under clause
(i)(I) any amount includible in income
with respect to the granting after
February 28, 2010, of service recipient
stock (within the meaning of section
409A) that, upon such grant, is subject
to a substantial risk of forfeiture (as
defined under section 83(c)(1)) for at
least 5 years from the date of such
grant.
``(II) Secretarial authority.--The
Secretary may by regulation provide for
the application of this clause in the
case of a person other than a
corporation.
``(v) Other exceptions.--The following
amounts includible in income shall not be taken
into account under clause (i)(I):
``(I) Commissions.--Any
remuneration payable on a commission
basis solely on account of income
directly generated by the individual
performance of the individual to whom
such remuneration is payable.
``(II) Certain payments under
existing contracts.--Any remuneration
consisting of nonqualified deferred
compensation, restricted stock, stock
options, or stock appreciation rights
payable or granted under a written
binding contract that was in effect on
March 1, 2010, and which was not
modified in any material respect before
such remuneration is paid.
``(vi) Self-employed individual treated as
employee.--The term `employee' includes, with
respect to a calendar year, a self-employed
individual who is treated as an employee under
section 401(c) for the taxable year ending
during such calendar year, and the term
`compensation' shall include earned income of
such individual with respect to such self-
employment.
``(vii) Indexing of amount.--In the case of
any calendar year beginning after 2010, the
dollar amount under clause (i)(II) shall be
increased by an amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for the calendar year,
determined by substituting `calendar
year 2009' for `calendar year 1992' in
subparagraph (B) thereof.
If the amount of any increase under clause (i)
is not a multiple of $1,000, such increase
shall be rounded to the next lowest multiple of
$1,000.
``(E) Extraordinary dividends and redemptions.--
``(i) In general.--The amount determined
under this subparagraph for any plan year is
the excess (if any) of the sum of the dividends
declared during the plan year by the plan
sponsor plus the aggregate amount paid for the
redemption of stock of the plan sponsor
redeemed during the plan year over the greater
of--
``(I) the adjusted net income
(within the meaning of section 4043 of
the Employee Retirement Income Security
Act of 1974) of the plan sponsor for
the preceding plan year, determined
without regard to any reduction by
reason of interest, taxes,
depreciation, or amortization, or
``(II) in the case of a plan
sponsor that determined and declared
dividends in the same manner for at
least 5 consecutive years immediately
preceding such plan year, the aggregate
amount of dividends determined and
declared for such plan year using such
manner.
``(ii) Only certain post-2009 dividends and
redemptions counted.--For purposes of clause
(i), there shall only be taken into account
dividends declared, and redemptions occurring,
after February 28, 2010.
``(iii) Exception for intra-group
dividends.--Dividends paid by one member of a
controlled group (as defined in section
412(d)(3)) to another member of such group
shall not be taken into account under clause
(i).
``(iv) Exception for certain redemptions.--
Redemptions that are made pursuant to a plan
maintained with respect to employees, or that
are made on account of the death, disability,
or termination of employment of an employee or
shareholder, shall not be taken into account
under clause (i).
``(v) Exception for certain preferred
stock.--
``(I) In general.--Dividends and
redemptions with respect to applicable
preferred stock shall not be taken into
account under clause (i) to the extent
that dividends accrue with respect to
such stock at a specified rate in all
events and without regard to the plan
sponsor's income, and interest accrues
on any unpaid dividends with respect to
such stock.
``(II) Applicable preferred
stock.--For purposes of subclause (I),
the term `applicable preferred stock'
means preferred stock which was issued
before March 1, 2010 (or which was
issued after such date and is held by
an employee benefit plan subject to the
provisions of title I of Employee
Retirement Income Security Act of
1974).
``(F) Other definitions and rules.--For purposes of
this paragraph--
``(i) Plan sponsor.--The term ` plan
sponsor' includes any member of the plan
sponsor's controlled group (as defined in
section 412(d)(3)).
``(ii) Restriction period.--The term
`restriction period' means, with respect to any
election year--
``(I) except as provided in
subclause (II), the 3-year period
beginning with the election year (or,
if later, the first plan year beginning
after December 31, 2009), and
``(II) if the plan sponsor elects
15-year amortization for the shortfall
amortization base for the election
year, the 5-year period beginning with
the election year (or, if later, the
first plan year beginning after
December 31, 2009).
``(iii) Elections for multiple plans.--If a
plan sponsor makes elections under paragraph
(2)(D) with respect to 2 or more plans, the
Secretary shall provide rules for the
application of this paragraph to such plans,
including rules for the ratable allocation of
any installment acceleration amount among such
plans on the basis of each plan's relative
reduction in the plan's shortfall amortization
installment for the first plan year in the
amortization period described in subparagraph
(A) (determined without regard to this
paragraph).
``(iv) Mergers and acquisitions.--The
Secretary shall prescribe rules for the
application of paragraph (2)(D) and this
paragraph in any case where there is a merger
or acquisition involving a plan sponsor making
the election under paragraph (2)(D).''.
(3) Conforming amendments.--Section 430 is amended--
(A) in subsection (c)(1), by striking ``the
shortfall amortization bases for such plan year and
each of the 6 preceding plan years'' and inserting
``any shortfall amortization base which has not been
fully amortized under this subsection'', and
(B) in subsection (j)(3), by adding at the end the
following:
``(F) Quarterly contributions not to include
certain increased contributions.--Subparagraph (D)
shall be applied without regard to any increase under
subsection (c)(7).''.
(c) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2007.
SEC. 302. APPLICATION OF EXTENDED AMORTIZATION PERIOD TO PLANS SUBJECT
TO PRIOR LAW FUNDING RULES.
(a) In General.--Title I of the Pension Protection Act of 2006 is
amended by redesignating section 107 as section 108 and by inserting
the following after section 106:
``SEC. 107. APPLICATION OF EXTENDED AMORTIZATION PERIODS TO PLANS WITH
DELAYED EFFECTIVE DATE.
``(a) In General.--If the plan sponsor of a plan to which section
104, 105, or 106 of this Act applies elects to have this section apply
for any eligible plan year (in this section referred to as an `election
year'), section 302 of the Employee Retirement Income Security Act of
1974 and section 412 of the Internal Revenue Code of 1986 (as in effect
before the amendments made by this subtitle and subtitle B) shall apply
to such year in the manner described in subsection (b) or (c),
whichever is specified in the election. All references in this section
to `such Act' or `such Code' shall be to such Act or such Code as in
effect before the amendments made by this subtitle and subtitle B.
``(b) Application of 2 and 7 Rule.--In the case of an election year
to which this subsection applies--
``(1) 2-year lookback for determining deficit reduction
contributions for certain plans.--For purposes of applying
section 302(d)(9) of such Act and section 412(l)(9) of such
Code, the funded current liability percentage (as defined in
subparagraph (C) thereof) for such plan for such plan year
shall be such funded current liability percentage of such plan
for the second plan year preceding the first election year of
such plan.
``(2) Calculation of deficit reduction contribution.--For
purposes of applying section 302(d) of such Act and section
412(l) of such Code to a plan to which such sections apply
(after taking into account paragraph (1))--
``(A) in the case of the increased unfunded new
liability of the plan, the applicable percentage
described in section 302(d)(4)(C) of such Act and
section 412(l)(4)(C) of such Code shall be the third
segment rate described in sections 104(b), 105(b), and
106(b) of this Act, and
``(B) in the case of the excess of the unfunded new
liability over the increased unfunded new liability,
such applicable percentage shall be determined without
regard to this section.
``(c) Application of 15-year Amortization.--In the case of an
election year to which this subsection applies, for purposes of
applying section 302(d) of such Act and section 412(l) of such Code--
``(1) in the case of the increased unfunded new liability
of the plan, the applicable percentage described in section
302(d)(4)(C) of such Act and section 412(l)(4)(C) of such Code
for any pre-effective date plan year beginning with or after
the first election year shall be the ratio of--
``(A) the annual installments payable in each year
if the increased unfunded new liability for such plan
year were amortized over 15 years, using an interest
rate equal to the third segment rate described in
sections 104(b), 105(b), and 106(b) of this Act, to
``(B) the increased unfunded new liability for such
plan year, and
``(2) in the case of the excess of the unfunded new
liability over the increased unfunded new liability, such
applicable percentage shall be determined without regard to
this section.
``(d) Election.--
``(1) In general.--The plan sponsor of a plan may elect to
have this section apply to not more than 2 eligible plan years
with respect to the plan, except that in the case of a plan to
which section 106 of this Act applies, the plan sponsor may
only elect to have this section apply to 1 eligible plan year.
``(2) Amortization schedule.--Such election shall specify
whether the rules under subsection (b) or (c) shall apply to an
election year, except that if a plan sponsor elects to have
this section apply to 2 eligible plan years, the plan sponsor
must elect the same rule for both years.
``(3) Other rules.--Such election shall be made at such
time, and in such form and manner, as shall be prescribed by
the Secretary of the Treasury, and may be revoked only with the
consent of the Secretary of the Treasury.
``(e) Definitions.--For purposes of this section--
``(1) Eligible plan year.--For purposes of this
subparagraph, the term `eligible plan year' means any plan year
beginning in 2008, 2009, 2010, or 2011, except that a plan year
beginning in 2008 shall only be treated as an eligible plan
year if the due date for the payment of the minimum required
contribution for such plan year occurs on or after the date of
the enactment of this clause.
``(2) Pre-effective date plan year.--The term `pre-
effective date plan year' means, with respect to a plan, any
plan year prior to the first year in which the amendments made
by this subtitle and subtitle B apply to the plan.
``(3) Increased unfunded new liability.--The term
`increased unfunded new liability' means, with respect to a
year, the excess (if any) of the unfunded new liability over
the amount of unfunded new liability determined as if the value
of the plan's assets determined under subsection 302(c)(2) of
such Act and section 412(c)(2) of such Code equaled the product
of the current liability of the plan for the year multiplied by
the funded current liability percentage (as defined in section
302(d)(8)(B) of such Act and 412(l)(8)(B) of such Code) of the
plan for the second plan year preceding the first election year
of such plan.
``(4) Other definitions.--The terms `unfunded new
liability' and `current liability' shall have the meanings set
forth in section 302(d) of such Act and section 412(l) of such
Code.''.
(b) Eligible Charity Plans.--Section 104 of the Pension Protection
Act of 2006 is amended--
(1) by striking ``eligible cooperative plan'' wherever it
appears in subsections (a) and (b) and inserting ``eligible
cooperative plan or an eligible charity plan'', and
(2) by adding at the end the following new subsection:
``(d) Eligible Charity Plan Defined.--For purposes of this section,
a plan shall be treated as an eligible charity plan for a plan year if
the plan is maintained by more than one employer (determined without
regard to section 414(c) of the Internal Revenue Code) and 100 percent
of the employers are described in section 501(c)(3) of such Code.''.
(c) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
take effect as if included in the Pension Protection Act of
2006.
(2) Eligible charity plan.--The amendments made by
subsection (b) shall apply to plan years beginning after
December 31, 2007, except that a plan sponsor may elect to
apply such amendments to plan years beginning after December
31, 2008. Any such election shall be made at such time, and in
such form and manner, as shall be prescribed by the Secretary
of the Treasury, and may be revoked only with the consent of
the Secretary of the Treasury.
SEC. 303. LOOKBACK FOR CERTAIN BENEFIT RESTRICTIONS.
(a) In General.--
(1) Amendment to erisa.--Section 206(g)(9) of the Employee
Retirement Income Security Act of 1974 is amended by adding at
the end the following:
``(D) Special rule for certain years.--Solely for
purposes of any applicable provision--
``(i) In general.--For plan years beginning
on or after October 1, 2008, and before October
1, 2010, the adjusted funding target attainment
percentage of a plan shall be the greater of--
``(I) such percentage, as
determined without regard to this
subparagraph, or
``(II) the adjusted funding target
attainment percentage for such plan for
the plan year beginning after October
1, 2007, and before October 1, 2008, as
determined under rules prescribed by
the Secretary of the Treasury.
``(ii) Special rule.--In the case of a plan
for which the valuation date is not the first
day of the plan year--
``(I) clause (i) shall apply to
plan years beginning after December 31,
2007, and before January 1, 2010, and
``(II) clause (i)(II) shall apply
based on the last plan year beginning
before November 1, 2007, as determined
under rules prescribed by the Secretary
of the Treasury.
``(iii) Applicable provision.--For purposes
of this subparagraph, the term `applicable
provision' means--
``(I) paragraph (3), but only for
purposes of applying such paragraph to
a payment which, as determined under
rules prescribed by the Secretary of
the Treasury, is a payment under a
social security leveling option which
accelerates payments under the plan
before, and reduces payments after, a
participant starts receiving social
security benefits in order to provide
substantially similar aggregate
payments both before and after such
benefits are received, and
``(II) paragraph (4).''.
(2) Amendment to internal revenue code of 1986.--Section
436(j) of the Internal Revenue Code of 1986 is amended by
adding at the end the following:
``(3) Special rule for certain years.--Solely for purposes
of any applicable provision--
``(A) In general.--For plan years beginning on or
after October 1, 2008, and before October 1, 2010, the
adjusted funding target attainment percentage of a plan
shall be the greater of--
``(i) such percentage, as determined
without regard to this paragraph, or
``(ii) the adjusted funding target
attainment percentage for such plan for the
plan year beginning after October 1, 2007, and
before October 1, 2008, as determined under
rules prescribed by the Secretary.
``(B) Special rule.--In the case of a plan for
which the valuation date is not the first day of the
plan year--
``(i) subparagraph (A) shall apply to plan
years beginning after December 31, 2007, and
before January 1, 2010, and
``(ii) subparagraph (A)(ii) shall apply
based on the last plan year beginning before
November 1, 2007, as determined under rules
prescribed by the Secretary.
``(C) Applicable provision.--For purposes of this
paragraph, the term `applicable provision' means--
``(i) subsection (d), but only for purposes
of applying such paragraph to a payment which,
as determined under rules prescribed by the
Secretary, is a payment under a social security
leveling option which accelerates payments
under the plan before, and reduces payments
after, a participant starts receiving social
security benefits in order to provide
substantially similar aggregate payments both
before and after such benefits are received,
and
``(ii) subsection (e).''.
(b) Interaction With Wrera Rule.--Section 203 of the Worker,
Retiree, and Employer Recovery Act of 2008 shall apply to a plan for
any plan year in lieu of the amendments made by this section applying
to sections 206(g)(4) of the Employee Retirement Income Security Act of
1974 and 436(e) of the Internal Revenue Code of 1986 only to the extent
that such section produces a higher adjusted funding target attainment
percentage for such plan for such year.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to plan years
beginning on or after October 1, 2008.
(2) Special rule.--In the case of a plan for which the
valuation date is not the first day of the plan year, the
amendments made by this section shall apply to plan years
beginning after December 31, 2007.
SEC. 304. LOOKBACK FOR CREDIT BALANCE RULE FOR PLANS MAINTAINED BY
CHARITIES.
(a) Amendment to Erisa.--Paragraph (3) of section 303(f) of the
Employee Retirement Income Security Act of 1974 is amended by adding
the following at the end thereof:
``(D) Special rule for certain years of plans
maintained by charities.--
``(i) In general.--For purposes of applying
subparagraph (C) for plan years beginning after
August 31, 2009, and before September 1, 2011,
the ratio determined under such subparagraph
for the preceding plan year shall be the
greater of--
``(I) such ratio, as determined
without regard to this subparagraph, or
``(II) the ratio for such plan for
the plan year beginning after August
31, 2007, and before September 1, 2008,
as determined under rules prescribed by
the Secretary of the Treasury.
``(ii) Special rule.--In the case of a plan
for which the valuation date is not the first
day of the plan year--
``(I) clause (i) shall apply to
plan years beginning after December 31,
2008, and before January 1, 2011, and
``(II) clause (i)(II) shall apply
based on the last plan year beginning
before September 1, 2007, as determined
under rules prescribed by the Secretary
of the Treasury.
``(iii) Limitation to charities.--This
subparagraph shall not apply to any plan unless
such plan is maintained exclusively by one or
more organizations described in section
501(c)(3) of the Internal Revenue Code of
1986.''.
(b) Amendment to Internal Revenue Code of 1986.--Paragraph (3) of
section 430(f) of the Internal Revenue Code of 1986 is amended by
adding the following at the end thereof:
``(D) Special rule for certain years of plans
maintained by charities.--
``(i) In general.--For purposes of applying
subparagraph (C) for plan years beginning after
August 31, 2009, and before September 1, 2011,
the ratio determined under such subparagraph
for the preceding plan year of a plan shall be
the greater of--
``(I) such ratio, as determined
without regard to this subsection, or
``(II) the ratio for such plan for
the plan year beginning after August
31, 2007 and before September 1, 2008,
as determined under rules prescribed by
the Secretary.
``(ii) Special rule.--In the case of a plan
for which the valuation date is not the first
day of the plan year--
``(I) clause (i) shall apply to
plan years beginning after December 31,
2007, and before January 1, 2010, and
``(II) clause (i)(II) shall apply
based on the last plan year beginning
before September 1, 2007, as determined
under rules prescribed by the
Secretary.
``(iii) Limitation to charities.--This
subparagraph shall not apply to any plan unless
such plan is maintained exclusively by one or
more organizations described in section
501(c)(3).''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to plan years
beginning after August 31, 2009.
(2) Special rule.--In the case of a plan for which the
valuation date is not the first day of the plan year, the
amendments made by this section shall apply to plan years
beginning after December 31, 2008.
Subtitle B--Multiemployer Plans
SEC. 311. ADJUSTMENTS TO FUNDING STANDARD ACCOUNT RULES.
(a) Adjustments.--
(1) Amendment to erisa.--Section 304(b) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1084(b)) is
amended by adding at the end the following new paragraph:
``(8) Special relief rules.--Notwithstanding any other
provision of this subsection--
``(A) Amortization of net investment losses.--
``(i) In general.--A multiemployer plan
with respect to which the solvency test under
subparagraph (C) is met may treat the portion
of any experience loss or gain attributable to
net investment losses incurred in either or
both of the first two plan years ending after
August 31, 2008, as an item separate from other
experience losses, to be amortized in equal
annual installments (until fully amortized)
over the period --
``(I) beginning with the plan year
in which such portion is first
recognized in the actuarial value of
assets, and
``(II) ending with the last plan
year in the 30-plan year period
beginning with the plan year in which
such net investment loss was incurred.
``(ii) Coordination with extensions.--If
this subparagraph applies for any plan year--
``(I) no extension of the
amortization period under clause (i)
shall be allowed under subsection (d),
and
``(II) if an extension was granted
under subsection (d) for any plan year
before the election to have this
subparagraph apply to the plan year,
such extension shall not result in such
amortization period exceeding 30 years.
``(iii) Net investment losses.--For
purposes of this subparagraph--
``(I) In general.--Net investment
losses shall be determined in the
manner prescribed by the Secretary of
the Treasury on the basis of the
difference between actual and expected
returns (including any difference
attributable to any criminally
fraudulent investment arrangement).
``(II) Criminally fraudulent
investment arrangements.--The
determination as to whether an
arrangement is a criminally fraudulent
investment arrangement shall be made
under rules substantially similar to
the rules prescribed by the Secretary
of the Treasury for purposes of section
165 of the Internal Revenue Code of
1986.
``(B) Expanded smoothing period.--
``(i) In general.--A multiemployer plan
with respect to which the solvency test under
subparagraph (C) is met may change its asset
valuation method in a manner which--
``(I) spreads the difference
between expected and actual returns for
either or both of the first 2 plan
years ending after August 31, 2008,
over a period of not more than 10
years,
``(II) provides that for either or
both of the first 2 plan years
beginning after August 31, 2008, the
value of plan assets at any time shall
not be less than 80 percent or greater
than 130 percent of the fair market
value of such assets at such time, or
``(III) makes both changes
described in subclauses (I) and (II) to
such method.
``(ii) Asset valuation methods.--If this
subparagraph applies for any plan year--
``(I) the Secretary of the Treasury
shall not treat the asset valuation
method of the plan as unreasonable
solely because of the changes in such
method described in clause (i), and
``(II) such changes shall be deemed
approved by such Secretary under
section 302(d)(1) and section 412(d)(1)
of such Code.
``(iii) Amortization of reduction in
unfunded accrued liability.--If this
subparagraph and subparagraph (A) both apply
for any plan year, the plan shall treat any
reduction in unfunded accrued liability
resulting from the application of this
subparagraph as a separate experience
amortization base, to be amortized in equal
annual installments (until fully amortized)
over a period of 30 plan years rather than the
period such liability would otherwise be
amortized over.
``(C) Solvency test.--The solvency test under this
paragraph is met only if the plan actuary certifies
that the plan is projected to have sufficient assets to
timely pay expected benefits and anticipated
expenditures over the amortization period, taking into
account the changes in the funding standard account
under this paragraph.
``(D) Restriction on benefit increases.--If
subparagraph (A) or (B) apply to a multiemployer plan
for any plan year, then, in addition to any other
applicable restrictions on benefit increases, a plan
amendment increasing benefits may not go into effect
during either of the 2 plan years immediately following
such plan year unless--
``(i) the plan actuary certifies that--
``(I) any such increase is paid for
out of additional contributions not
allocated to the plan immediately
before the application of this
paragraph to the plan, and
``(II) the plan's funded percentage
and projected credit balances for such
2 plan years are reasonably expected to
be at least as high as such percentage
and balances would have been if the
benefit increase had not been adopted,
or
``(ii) the amendment is required as a
condition of qualification under part I of
subchapter D of chapter 1 of the Internal
Revenue Code of 1986 or to comply with other
applicable law.
``(E) Reporting.--A plan sponsor of a plan to which
this paragraph applies shall--
``(i) give notice of such application to
participants and beneficiaries of the plan, and
``(ii) inform the Pension Benefit Guaranty
Corporation of such application in such form
and manner as the Director of the Pension
Benefit Guaranty Corporation may prescribe.''.
(2) Amendment to internal revenue code of 1986.--Section
431(b) is amended by adding at the end the following new
paragraph:
``(8) Special relief rules.--Notwithstanding any other
provision of this subsection--
``(A) Amortization of net investment losses.--
``(i) In general.--A multiemployer plan
with respect to which the solvency test under
subparagraph (C) is met may treat the portion
of any experience loss or gain attributable to
net investment losses incurred in either or
both of the first two plan years ending after
August 31, 2008, as an item separate from other
experience losses, to be amortized in equal
annual installments (until fully amortized)
over the period --
``(I) beginning with the plan year
in which such portion is first
recognized in the actuarial value of
assets, and
``(II) ending with the last plan
year in the 30-plan year period
beginning with the plan year in which
such net investment loss was incurred.
``(ii) Coordination with extensions.--If
this subparagraph applies for any plan year--
``(I) no extension of the
amortization period under clause (i)
shall be allowed under subsection (d),
and
``(II) if an extension was granted
under subsection (d) for any plan year
before the election to have this
subparagraph apply to the plan year,
such extension shall not result in such
amortization period exceeding 30 years.
``(iii) Net investment losses.--For
purposes of this subparagraph--
``(I) In general.--Net investment
losses shall be determined in the
manner prescribed by the Secretary on
the basis of the difference between
actual and expected returns (including
any difference attributable to any
criminally fraudulent investment
arrangement).
``(II) Criminally fraudulent
investment arrangements.--The
determination as to whether an
arrangement is a criminally fraudulent
investment arrangement shall be made
under rules substantially similar to
the rules prescribed by the Secretary
for purposes of section 165.
``(B) Expanded smoothing period.--
``(i) In general.--A multiemployer plan
with respect to which the solvency test under
subparagraph (C) is met may change its asset
valuation method in a manner which--
``(I) spreads the difference
between expected and actual returns for
either or both of the first 2 plan
years ending after August 31, 2008,
over a period of not more than 10
years,
``(II) provides that for either or
both of the first 2 plan years
beginning after August 31, 2008, the
value of plan assets at any time shall
not be less than 80 percent or greater
than 130 percent of the fair market
value of such assets at such time, or
``(III) makes both changes
described in subclauses (I) and (II) to
such method.
``(ii) Asset valuation methods.--If this
subparagraph applies for any plan year--
``(I) the Secretary shall not treat
the asset valuation method of the plan
as unreasonable solely because of the
changes in such method described in
clause (i), and
``(II) such changes shall be deemed
approved by the Secretary under section
302(d)(1) of the Employee Retirement
Income Security Act of 1974 and section
412(d)(1).
``(iii) Amortization of reduction in
unfunded accrued liability.--If this
subparagraph and subparagraph (A) both apply
for any plan year, the plan shall treat any
reduction in unfunded accrued liability
resulting from the application of this
subparagraph as a separate experience
amortization base, to be amortized in equal
annual installments (until fully amortized)
over a period of 30 plan years rather than the
period such liability would otherwise be
amortized over.
``(C) Solvency test.--The solvency test under this
paragraph is met only if the plan actuary certifies
that the plan is projected to have sufficient assets to
timely pay expected benefits and anticipated
expenditures over the amortization period, taking into
account the changes in the funding standard account
under this paragraph.
``(D) Restriction on benefit increases.--If
subparagraph (A) or (B) apply to a multiemployer plan
for any plan year, then, in addition to any other
applicable restrictions on benefit increases, a plan
amendment increasing benefits may not go into effect
during either of the 2 plan years immediately following
such plan year unless--
``(i) the plan actuary certifies that--
``(I) any such increase is paid for
out of additional contributions not
allocated to the plan immediately
before the application of this
paragraph to the plan, and
``(II) the plan's funded percentage
and projected credit balances for such
2 plan years are reasonably expected to
be at least as high as such percentage
and balances would have been if the
benefit increase had not been adopted,
or
``(ii) the amendment is required as a
condition of qualification under part I of
subchapter D or to comply with other applicable
law.
``(E) Reporting.--A plan sponsor of a plan to which
this paragraph applies shall--
``(i) give notice of such application to
participants and beneficiaries of the plan, and
``(ii) inform the Pension Benefit Guaranty
Corporation of such application in such form
and manner as the Director of the Pension
Benefit Guaranty Corporation may prescribe.''.
(b) Effective Dates.--
(1) In general.--The amendments made by this section shall
take effect as of the first day of the first plan year ending
after August 31, 2008, except that any election a plan makes
pursuant to this section that affects the plan's funding
standard account for the first plan year beginning after August
31, 2008, shall be disregarded for purposes of applying the
provisions of section 305 of the Employee Retirement Income
Security Act of 1974 and section 432 of the Internal Revenue
Code of 1986 to such plan year.
(2) Restrictions on benefit increases.--Notwithstanding
paragraph (1), the restrictions on plan amendments increasing
benefits in sections 304(b)(8)(D) of such Act and 431(b)(8)(D)
of such Code, as added by this section, shall take effect on
the date of enactment of this Act.
TITLE IV--OFFSET PROVISIONS
Subtitle A--Black Liquor
SEC. 401. EXCLUSION OF UNPROCESSED FUELS FROM THE CELLULOSIC BIOFUEL
PRODUCER CREDIT.
(a) In General.--Subparagraph (E) of section 40(b)(6) is amended by
adding at the end the following new clause:
``(iii) Exclusion of unprocessed fuels.--
The term `cellulosic biofuel' shall not include
any fuel if--
``(I) more than 4 percent of such
fuel (determined by weight) is any
combination of water and sediment, or
``(II) the ash content of such fuel
is more than 1 percent (determined by
weight).''.
(b) Effective Date.--The amendment made by this section shall apply
to fuels sold or used after the date of the enactment of this Act.
SEC. 402. PROHIBITION ON ALTERNATIVE FUEL CREDIT AND ALTERNATIVE FUEL
MIXTURE CREDIT FOR BLACK LIQUOR.
(a) In General.--The last sentence of section 6426(d)(2) is amended
by striking ``or biodiesel'' and inserting ``biodiesel, or any fuel
(including lignin, wood residues, or spent pulping liquors) derived
from the production of paper or pulp''.
(b) Effective Date.--The amendment made by this section shall apply
to fuel sold or used after December 31, 2009.
Subtitle B--Homebuyer Credit
SEC. 411. TECHNICAL MODIFICATIONS TO HOMEBUYER CREDIT.
(a) Expanded Documentation Requirement.--Subsection (d) of section
36, as amended by the Worker, Homeownership, and Business Assistance
Act of 2009, is amended--
(1) by striking ``or'' at the end of paragraph (3),
(2) by striking the period at the end of paragraph (4) and
inserting a comma, and
(3) by adding at the end the following new paragraphs:
``(5) in the case of a taxpayer to whom such a credit would
be allowed (but for this paragraph) by reason of subsection
(c)(6), the taxpayer fails to attach to the return of tax for
such taxable year a copy of such property tax bills or other
documentation as are required by the Secretary to demonstrate
compliance with the requirements of subsection (c)(6), or
``(6) in the case of a taxpayer to whom such a credit would
be allowed (but for this paragraph) by reason of subsection
(h)(2), the taxpayer fails to attach to the return of tax for
such taxable year a copy of the binding contract which meets
the requirements of subsection (h)(2).''.
(b) Modification of Effective Date of Documentation Requirements.--
Paragraph (2) of section 12(e) of the Worker, Homeownership, and
Business Assistance Act of 2009 is amended by striking ``returns for
taxable years ending after the date of the enactment of this Act'' and
inserting ``returns filed after the date of the enactment of this
Act''.
(c) Effective Dates.--
(1) Documentation requirements.--The amendments made by
subsection (a) shall apply to purchases on or after the date of
the enactment of this Act.
(2) Effective date of worker, homeownership, and business
assistance act.--The amendment made by subsection (b) shall
apply to purchases of a principal residence on or after the
date of the enactment of the Worker, Homeownership, and
Business Assistance Act of 2009.
Subtitle C--Economic Substance
SEC. 421. CODIFICATION OF ECONOMIC SUBSTANCE DOCTRINE; PENALTIES.
(a) In General.--Section 7701 is amended by redesignating
subsection (o) as subsection (p) and by inserting after subsection (n)
the following new subsection:
``(o) Clarification of Economic Substance Doctrine.--
``(1) Application of doctrine.--In the case of any
transaction to which the economic substance doctrine is
relevant, such transaction shall be treated as having economic
substance only if--
``(A) the transaction changes in a meaningful way
(apart from Federal income tax effects) the taxpayer's
economic position, and
``(B) the taxpayer has a substantial purpose (apart
from Federal income tax effects) for entering into such
transaction.
``(2) Special rule where taxpayer relies on profit
potential.--
``(A) In general.--The potential for profit of a
transaction shall be taken into account in determining
whether the requirements of subparagraphs (A) and (B)
of paragraph (1) are met with respect to the
transaction only if the present value of the reasonably
expected pre-tax profit from the transaction is
substantial in relation to the present value of the
expected net tax benefits that would be allowed if the
transaction were respected.
``(B) Treatment of fees and foreign taxes.--Fees
and other transaction expenses shall be taken into
account as expenses in determining pre-tax profit under
subparagraph (A). The Secretary may issue regulations
requiring foreign taxes to be treated as expenses in
determining pre-tax profit in appropriate cases.
``(3) State and local tax benefits.--For purposes of
paragraph (1), any State or local income tax effect which is
related to a Federal income tax effect shall be treated in the
same manner as a Federal income tax effect.
``(4) Financial accounting benefits.--For purposes of
paragraph (1)(B), achieving a financial accounting benefit
shall not be taken into account as a purpose for entering into
a transaction if the origin of such financial accounting
benefit is a reduction of Federal income tax.
``(5) Definitions and special rules.--For purposes of this
subsection--
``(A) Economic substance doctrine.--The term
`economic substance doctrine' means the common law
doctrine under which tax benefits under subtitle A with
respect to a transaction are not allowable if the
transaction does not have economic substance or lacks a
business purpose.
``(B) Exception for personal transactions of
individuals.--In the case of an individual, paragraph
(1) shall apply only to transactions entered into in
connection with a trade or business or an activity
engaged in for the production of income.
``(C) Other common law doctrines not affected.--
Except as specifically provided in this subsection, the
provisions of this subsection shall not be construed as
altering or supplanting any other rule of law, and the
requirements of this subsection shall be construed as
being in addition to any such other rule of law.
``(D) Determination of application of doctrine not
affected.--The determination of whether the economic
substance doctrine is relevant to a transaction shall
be made in the same manner as if this subsection had
never been enacted.
``(E) Transaction.--The term `transaction' includes
a series of transactions.
``(6) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out the
purposes of this subsection.''.
(b) Penalty for Underpayments Attributable to Transactions Lacking
Economic Substance.--
(1) In general.--Subsection (b) of section 6662 is amended
by inserting after paragraph (5) the following new paragraph:
``(6) Any disallowance of claimed tax benefits by reason of
a transaction lacking economic substance (within the meaning of
section 7701(o)) or failing to meet the requirements of any
similar rule of law.''.
(2) Increased penalty for nondisclosed transactions.--
Section 6662 is amended by adding at the end the following new
subsection:
``(i) Increase in Penalty in Case of Nondisclosed Noneconomic
Substance Transactions.--
``(1) In general.--In the case of any portion of an
underpayment which is attributable to one or more nondisclosed
noneconomic substance transactions, subsection (a) shall be
applied with respect to such portion by substituting `40
percent' for `20 percent'.
``(2) Nondisclosed noneconomic substance transactions.--For
purposes of this subsection, the term `nondisclosed noneconomic
substance transaction' means any portion of a transaction
described in subsection (b)(6) with respect to which the
relevant facts affecting the tax treatment are not adequately
disclosed in the return nor in a statement attached to the
return.
``(3) Special rule for amended returns.--Except as provided
in regulations, in no event shall any amendment or supplement
to a return of tax be taken into account for purposes of this
subsection if the amendment or supplement is filed after the
earlier of the date the taxpayer is first contacted by the
Secretary regarding the examination of the return or such other
date as is specified by the Secretary.''.
(3) Conforming amendment.--Subparagraph (B) of section
6662A(e)(2) is amended--
(A) by striking ``section 6662(h)'' and inserting
``subsections (h) or (i) of section 6662''; and
(B) by striking ``gross valuation misstatement
penalty'' in the heading and inserting ``certain
increased underpayment penalties''.
(c) Reasonable Cause Exception Not Applicable to Noneconomic
Substance Transactions.--
(1) Reasonable cause exception for underpayments.--
Subsection (c) of section 6664 is amended--
(A) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively;
(B) by striking ``paragraph (2)'' in paragraph
(4)(A), as so redesignated, and inserting ``paragraph
(3)''; and
(C) by inserting after paragraph (1) the following
new paragraph:
``(2) Exception.--Paragraph (1) shall not apply to any
portion of an underpayment which is attributable to one or more
transactions described in section 6662(b)(6).''.
(2) Reasonable cause exception for reportable transaction
understatements.--Subsection (d) of section 6664 is amended--
(A) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively;
(B) by striking ``paragraph (2)(C)'' in paragraph
(4), as so redesignated, and inserting ``paragraph
(3)(C)''; and
(C) by inserting after paragraph (1) the following
new paragraph:
``(2) Exception.--Paragraph (1) shall not apply to any
portion of a reportable transaction understatement which is
attributable to one or more transactions described in section
6662(b)(6).''.
(d) Application of Penalty for Erroneous Claim for Refund or Credit
to Noneconomic Substance Transactions.--Section 6676 is amended by
redesignating subsection (c) as subsection (d) and inserting after
subsection (b) the following new subsection:
``(c) Noneconomic Substance Transactions Treated as Lacking
Reasonable Basis.--For purposes of this section, any excessive amount
which is attributable to any transaction described in section
6662(b)(6) shall not be treated as having a reasonable basis.''.
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
transactions entered into after the date of the enactment of
this Act.
(2) Underpayments.--The amendments made by subsections (b)
and (c)(1) shall apply to underpayments attributable to
transactions entered into after the date of the enactment of
this Act.
(3) Understatements.--The amendments made by subsection
(c)(2) shall apply to understatements attributable to
transactions entered into after the date of the enactment of
this Act.
(4) Refunds and credits.--The amendment made by subsection
(d) shall apply to refunds and credits attributable to
transactions entered into after the date of the enactment of
this Act.
Subtitle D--Additional Provisions
SEC. 431. REVISION TO THE MEDICARE IMPROVEMENT FUND.
Section 1898(b)(1)(A) of the Social Security Act (42 U.S.C.
1395iii(b)(1)(A)), as amended by section 1011(b) of the Department of
Defense Appropriations Act, 2010 (Public Law 111-118), is amended by
striking ``$20,740,000,000'' and inserting ``$12,740,000,000''.
TITLE V--SATELLITE TELEVISION EXTENSION
SEC. 500. SHORT TITLE.
This title may be cited as the ``Satellite Television Extension and
Localism Act of 2010''.
Subtitle A--Statutory Licenses
SEC. 501. REFERENCE.
Except as otherwise provided, whenever in this subtitle an
amendment is made to a section or other provision, the reference shall
be considered to be made to such section or provision of title 17,
United States Code.
SEC. 502. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE CARRIERS.
(a) Heading Renamed.--
(1) In general.--The heading of section 119 is amended by
striking ``superstations and network stations for private home
viewing'' and inserting ``distant television programming by
satellite''.
(2) Table of contents.--The table of contents for chapter 1
is amended by striking the item relating to section 119 and
inserting the following:
``119. Limitations on exclusive rights: Secondary transmissions of
distant television programming by
satellite.''.
(b) Unserved Household Defined.--
(1) In general.--Section 119(d)(10) is amended--
(A) by striking subparagraph (A) and inserting the
following:
``(A) cannot receive, through the use of an
antenna, an over-the-air signal containing the primary
stream, or, on or after the qualifying date, the
multicast stream, originating in that household's local
market and affiliated with that network of--
``(i) if the signal originates as an analog
signal, Grade B intensity as defined by the
Federal Communications Commission in section
73.683(a) of title 47, Code of Federal
Regulations, as in effect on January 1, 1999;
or
``(ii) if the signal originates as a
digital signal, intensity defined in the values
for the digital television noise-limited
service contour, as defined in regulations
issued by the Federal Communications Commission
(section 73.622(e) of title 47, Code of Federal
Regulations), as such regulations may be
amended from time to time;'';
(B) in subparagraph (B)--
(i) by striking ``subsection (a)(14)'' and
inserting ``subsection (a)(13),''; and
(ii) by striking ``Satellite Home Viewer
Extension and Reauthorization Act of 2004'' and
inserting ``Satellite Television Extension and
Localism Act of 2010''; and
(C) in subparagraph (D), by striking ``(a)(12)''
and inserting ``(a)(11)''.
(2) Qualifying date defined.--Section 119(d) is amended by
adding at the end the following:
``(14) Qualifying date.--The term `qualifying date', for
purposes of paragraph (10)(A), means--
``(A) July 1, 2010, for multicast streams that
exist on December 31, 2009; and
``(B) January 1, 2011, for all other multicast
streams.''.
(c) Filing Fee.--Section 119(b)(1) is amended--
(1) in subparagraph (A), by striking ``and'' after the
semicolon at the end;
(2) in subparagraph (B), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(C) a filing fee, as determined by the Register
of Copyrights pursuant to section 708(a).''.
(d) Deposit of Statements and Fees; Verification Procedures.--
Section 119(b) is amended--
(1) by amending the subsection heading to read as follows:
``(b) Deposit of Statements and Fees; Verification
Procedures.--'';
(2) in paragraph (1), by striking subparagraph (B) and
inserting the following:
``(B) a royalty fee payable to copyright owners
pursuant to paragraph (4) for that 6-month period,
computed by multiplying the total number of subscribers
receiving each secondary transmission of a primary
stream or multicast stream of each non-network station
or network station during each calendar year month by
the appropriate rate in effect under this subsection;
and'';
(3) by redesignating paragraphs (2), (3), and (4) as
paragraphs (3), (4), and (5), respectively;
(4) by inserting after paragraph (1) the following:
``(2) Verification of accounts and fee payments.--The
Register of Copyrights shall issue regulations to permit
interested parties to verify and audit the statements of
account and royalty fees submitted by satellite carriers under
this subsection.'';
(5) in paragraph (3), as redesignated, in the first
sentence--
(A) by inserting ``(including the filing fee
specified in paragraph (1)(C))'' after ``shall receive
all fees''; and
(B) by striking ``paragraph (4)'' and inserting
``paragraph (5)'';
(6) in paragraph (4), as redesignated--
(A) by striking ``paragraph (2)'' and inserting
``paragraph (3)''; and
(B) by striking ``paragraph (4)'' each place it
appears and inserting ``paragraph (5)''; and
(7) in paragraph (5), as redesignated, by striking
``paragraph (2)'' and inserting ``paragraph (3)''.
(e) Adjustment of Royalty Fees.--Section 119(c) is amended as
follows:
(1) Paragraph (1) is amended--
(A) in the heading for such paragraph, by striking
``analog'';
(B) in subparagraph (A)--
(i) by striking ``primary analog
transmissions'' and inserting ``primary
transmissions''; and
(ii) by striking ``July 1, 2004'' and
inserting ``July 1, 2009'';
(C) in subparagraph (B)--
(i) by striking ``January 2, 2005, the
Librarian of Congress'' and inserting ``May 1,
2010, the Copyright Royalty Judges''; and
(ii) by striking ``primary analog
transmission'' and inserting ``primary
transmissions'';
(D) in subparagraph (C), by striking ``Librarian of
Congress'' and inserting ``Copyright Royalty Judges'';
(E) in subparagraph (D)--
(i) in clause (i)--
(I) by striking ``(i) Voluntary
agreements'' and inserting the
following:
``(i) Voluntary agreements; filing.--
Voluntary agreements''; and
(II) by striking ``that a parties''
and inserting ``that are parties''; and
(ii) in clause (ii)--
(I) by striking ``(ii)(I) Within''
and inserting the following:
``(ii) Procedure for adoption of fees.--
``(I) Publication of notice.--
Within'';
(II) in subclause (I), by striking
``an arbitration proceeding pursuant to
subparagraph (E)'' and inserting ``a
proceeding under subparagraph (F)'';
(III) in subclause (II), by
striking ``(II) Upon receiving a
request under subclause (I), the
Librarian of Congress'' and inserting
the following:
``(II) Public notice of fees.--Upon
receiving a request under subclause
(I), the Copyright Royalty Judges'';
and
(IV) in subclause (III)--
(aa) by striking ``(III)
The Librarian'' and inserting
the following:
``(III) Adoption of fees.--The
Copyright Royalty Judges'';
(bb) by striking ``an
arbitration proceeding'' and
inserting ``the proceeding
under subparagraph (F)''; and
(cc) by striking ``the
arbitration proceeding'' and
inserting ``that proceeding'';
(F) in subparagraph (E)--
(i) by striking ``Copyright Office'' and
inserting ``Copyright Royalty Judges''; and
(ii) by striking ``March 28, 2010'' and
inserting ``December 31, 2014''; and
(G) in subparagraph (F)--
(i) in the heading, by striking
``compulsory arbitration'' and inserting
``copyright royalty judges proceeding'';
(ii) in clause (i)--
(I) in the heading, by striking
``proceedings'' and inserting ``the
proceeding'';
(II) in the matter preceding
subclause (I)--
(aa) by striking ``May 1,
2005, the Librarian of
Congress'' and inserting ``July
1, 2010, the Copyright Royalty
Judges'';
(bb) by striking
``arbitration proceedings'' and
inserting ``a proceeding'';
(cc) by striking ``fee to
be paid'' and inserting ``fees
to be paid'';
(dd) by striking ``primary
analog transmission'' and
inserting ``the primary
transmissions''; and
(ee) by striking
``distributors'' and inserting
``distributors--'';
(III) in subclause (II)--
(aa) by striking
``Librarian of Congress'' and
inserting ``Copyright Royalty
Judges''; and
(bb) by striking
``arbitration''; and
(IV) by amending the last sentence
to read as follows: ``Such proceeding
shall be conducted under chapter 8.'';
(iii) in clause (ii), by amending the
matter preceding subclause (I) to read as
follows:
``(ii) Establishment of royalty fees.--In
determining royalty fees under this
subparagraph, the Copyright Royalty Judges
shall establish fees for the secondary
transmissions of the primary transmissions of
network stations and non-network stations that
most clearly represent the fair market value of
secondary transmissions, except that the
Copyright Royalty Judges shall adjust royalty
fees to account for the obligations of the
parties under any applicable voluntary
agreement filed with the Copyright Royalty
Judges in accordance with subparagraph (D). In
determining the fair market value, the Judges
shall base their decision on economic,
competitive, and programming information
presented by the parties, including--'';
(iv) by amending clause (iii) to read as
follows:
``(iii) Effective date for decision of
copyright royalty judges.--The obligation to
pay the royalty fees established under a
determination that is made by the Copyright
Royalty Judges in a proceeding under this
paragraph shall be effective as of January 1,
2010.''; and
(v) in clause (iv)--
(I) in the heading, by striking
``fee'' and inserting ``fees''; and
(II) by striking ``fee referred to
in (iii)'' and inserting ``fees
referred to in clause (iii)''.
(2) Paragraph (2) is amended to read as follows:
``(2) Annual royalty fee adjustment.--Effective January 1
of each year, the royalty fee payable under subsection
(b)(1)(B) for the secondary transmission of the primary
transmissions of network stations and non-network stations
shall be adjusted by the Copyright Royalty Judges to reflect
any changes occurring in the cost of living as determined by
the most recent Consumer Price Index (for all consumers and for
all items) published by the Secretary of Labor before December
1 of the preceding year. Notification of the adjusted fees
shall be published in the Federal Register at least 25 days
before January 1.''.
(f) Definitions.--
(1) Subscriber.--Section 119(d)(8) is amended to read as
follows:
``(8) Subscriber; subscribe.--
``(A) Subscriber.--The term `subscriber' means a
person or entity that receives a secondary transmission
service from a satellite carrier and pays a fee for the
service, directly or indirectly, to the satellite
carrier or to a distributor.
``(B) Subscribe.--The term `subscribe' means to
elect to become a subscriber.''.
(2) Local market.--Section 119(d)(11) is amended to read as
follows:
``(11) Local market.--The term `local market' has the
meaning given such term under section 122(j).''.
(3) Low power television station.--Section 119(d) is
amended by striking paragraph (12) and redesignating paragraphs
(13) and (14) as paragraphs (12) and (13), respectively.
(4) Multicast stream.--Section 119(d), as amended by
paragraph (3), is further amended by adding at the end the
following new paragraph:
``(14) Multicast stream.--The term `multicast stream' means
a digital stream containing programming and program-related
material affiliated with a television network, other than the
primary stream.''.
(5) Primary stream.--Section 119(d), as amended by
paragraph (4), is further amended by adding at the end the
following new paragraph:
``(15) Primary stream.--The term `primary stream' means--
``(A) the single digital stream of programming as
to which a television broadcast station has the right
to mandatory carriage with a satellite carrier under
the rules of the Federal Communications Commission in
effect on July 1, 2009; or
``(B) if there is no stream described in
subparagraph (A), then either--
``(i) the single digital stream of
programming associated with the network last
transmitted by the station as an analog signal;
or
``(ii) if there is no stream described in
clause (i), then the single digital stream of
programming affiliated with the network that,
as of July 1, 2009, had been offered by the
television broadcast station for the longest
period of time.''.
(6) Clerical amendment.--Section 119(d) is amended in
paragraphs (1), (2), and (5) by striking ``which'' each place
it appears and inserting ``that''.
(g) Superstation Redesignated as Non-network Station.--Section 119
is amended--
(1) by striking ``superstation'' each place it appears in a
heading and each place it appears in text and inserting ``non-
network station''; and
(2) by striking ``superstations'' each place it appears in
a heading and each place it appears in text and inserting
``non-network stations''.
(h) Removal of Certain Provisions.--
(1) Removal of provisions.--Section 119(a) is amended--
(A) in paragraph (2), by striking subparagraph (C)
and redesignating subparagraph (D) as subparagraph (C);
(B) by striking paragraph (3) and redesignating
paragraphs (4) through (14) as paragraphs (3) through
(13), respectively; and
(C) by striking paragraph (15) and redesignating
paragraph (16) as paragraph (14).
(2) Conforming amendments.--Section 119 is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``(5),
(6), and (8)'' and inserting ``(4), (5), and
(7)'';
(ii) in paragraph (2)--
(I) in subparagraph (A), by
striking ``subparagraphs (B) and (C) of
this paragraph and paragraphs (5), (6),
(7), and (8)'' and inserting
``subparagraph (B) of this paragraph
and paragraphs (4), (5), (6), and
(7)'';
(II) in subparagraph (B)(i), by
striking the second sentence; and
(III) in subparagraph (C) (as
redesignated), by striking clauses (i)
and (ii) and inserting the following:
``(i) Initial lists.--A satellite carrier
that makes secondary transmissions of a primary
transmission made by a network station pursuant
to subparagraph (A) shall, not later than 90
days after commencing such secondary
transmissions, submit to the network that owns
or is affiliated with the network station a
list identifying (by name and address,
including street or rural route number, city,
State, and 9-digit zip code) all subscribers to
which the satellite carrier makes secondary
transmissions of that primary transmission to
subscribers in unserved households.
``(ii) Monthly lists.--After the submission
of the initial lists under clause (i), the
satellite carrier shall, not later than the
15th of each month, submit to the network a
list, aggregated by designated market area,
identifying (by name and address, including
street or rural route number, city, State, and
9-digit zip code) any persons who have been
added or dropped as subscribers under clause
(i) since the last submission under this
subparagraph.''; and
(iii) in subparagraph (E) of paragraph (3)
(as redesignated)--
(I) by striking ``under paragraph
(3) or''; and
(II) by striking ``paragraph (12)''
and inserting ``paragraph (11)''; and
(B) in subsection (b)(1), by striking the final
sentence.
(i) Modifications to Provisions for Secondary Transmissions by
Satellite Carriers.--
(1) Predictive model.--Section 119(a)(2)(B)(ii) is amended
by adding at the end the following:
``(III) Accurate predictive model
with respect to digital signals.--
Notwithstanding subclause (I), in
determining presumptively whether a
person resides in an unserved household
under subsection (d)(10)(A) with
respect to digital signals, a court
shall rely on a predictive model set
forth by the Federal Communications
Commission pursuant to a rulemaking as
provided in section 339(c)(3) of the
Communications Act of 1934 (47 U.S.C.
339(c)(3)), as that model may be
amended by the Commission over time
under such section to increase the
accuracy of that model. Until such time
as the Commission sets forth such
model, a court shall rely on the
predictive model as recommended by the
Commission with respect to digital
signals in its Report to Congress in ET
Docket No. 05-182, FCC 05-199 (released
December 9, 2005).''.
(2) Modifications to statutory license where
retransmissions into local market available.--Section 119(a)(3)
(as redesignated) is amended--
(A) by striking ``analog'' each place it appears in
a heading and text;
(B) by striking subparagraphs (B), (C), and (D),
and inserting the following:
``(B) Rules for lawful subscribers as of date of
enactment of 2010 act.--In the case of a subscriber of
a satellite carrier who, on the day before the date of
the enactment of the Satellite Television Extension and
Localism Act of 2010, was lawfully receiving the
secondary transmission of the primary transmission of a
network station under the statutory license under
paragraph (2) (in this subparagraph referred to as the
`distant signal'), other than subscribers to whom
subparagraph (A) applies, the statutory license under
paragraph (2) shall apply to secondary transmissions by
that satellite carrier to that subscriber of the
distant signal of a station affiliated with the same
television network, and the subscriber's household
shall continue to be considered to be an unserved
household with respect to such network, until such time
as the subscriber elects to terminate such secondary
transmissions, whether or not the subscriber elects to
subscribe to receive the secondary transmission of the
primary transmission of a local network station
affiliated with the same network pursuant to the
statutory license under section 122.
``(C) Future applicability.--
``(i) When local signal available at time
of subscription.--The statutory license under
paragraph (2) shall not apply to the secondary
transmission by a satellite carrier of the
primary transmission of a network station to a
person who is not a subscriber lawfully
receiving such secondary transmission as of the
date of the enactment of the Satellite
Television Extension and Localism Act of 2010
and, at the time such person seeks to subscribe
to receive such secondary transmission, resides
in a local market where the satellite carrier
makes available to that person the secondary
transmission of the primary transmission of a
local network station affiliated with the same
network pursuant to the statutory license under
section 122.
``(ii) When local signal available after
subscription.--In the case of a subscriber who
lawfully subscribes to and receives the
secondary transmission by a satellite carrier
of the primary transmission of a network
station under the statutory license under
paragraph (2) (in this clause referred to as
the `distant signal') on or after the date of
the enactment of the Satellite Television
Extension and Localism Act of 2010, the
statutory license under paragraph (2) shall
apply to secondary transmissions by that
satellite carrier to that subscriber of the
distant signal of a station affiliated with the
same television network, and the subscriber's
household shall continue to be considered to be
an unserved household with respect to such
network, until such time as the subscriber
elects to terminate such secondary
transmissions, but only if such subscriber
subscribes to the secondary transmission of the
primary transmission of a local network station
affiliated with the same network within 60 days
after the satellite carrier makes available to
the subscriber such secondary transmission of
the primary transmission of such local network
station.'';
(C) by redesignating subparagraphs (E), (F), and
(G) as subparagraphs (D), (E), and (F), respectively;
(D) in subparagraph (E) (as redesignated), by
striking ``(C) or (D)'' and inserting ``(B) or (C)'';
and
(E) in subparagraph (F) (as redesignated), by
inserting ``9-digit'' before ``zip code''.
(3) Statutory damages for territorial restrictions.--
Section 119(a)(6) (as redesignated) is amended--
(A) in subparagraph (A)(ii), by striking ``$5'' and
inserting ``$250'';
(B) in subparagraph (B)--
(i) in clause (i), by striking ``$250,000
for each 6-month period'' and inserting
``$2,500,000 for each 3-month period''; and
(ii) in clause (ii), by striking
``$250,000'' and inserting ``$2,500,000''; and
(C) by adding at the end the following flush
sentences:
``The court shall direct one half of any statutory
damages ordered under clause (i) to be deposited with
the Register of Copyrights for distribution to
copyright owners pursuant to subsection (b). The
Copyright Royalty Judges shall issue regulations
establishing procedures for distributing such funds, on
a proportional basis, to copyright owners whose works
were included in the secondary transmissions that were
the subject of the statutory damages.''.
(4) Technical amendment.--Section 119(a)(4) (as
redesignated) is amended by striking ``and 509''.
(5) Clerical amendment.--Section 119(a)(2)(B)(iii)(II) is
amended by striking ``In this clause'' and inserting ``In this
clause,''.
(j) Moratorium Extension.--Section 119(e) is amended by striking
``March 28, 2010'' and inserting ``December 31, 2014''.
(k) Clerical Amendments.--Section 119 is amended--
(1) by striking ``of the Code of Federal Regulations'' each
place it appears and inserting ``, Code of Federal
Regulations''; and
(2) in subsection (d)(6), by striking ``or the Direct'' and
inserting ``, or the Direct''.
SEC. 503. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE CARRIERS IN
LOCAL MARKETS.
(a) Heading Renamed.--
(1) In general.--The heading of section 122 is amended by
striking ``by satellite carriers within local markets'' and
inserting ``of local television programming by satellite''.
(2) Table of contents.--The table of contents for chapter 1
is amended by striking the item relating to section 122 and
inserting the following:
``122. Limitations on exclusive rights: Secondary transmissions of
local television programming by
satellite.''.
(b) Statutory License.--Section 122(a) is amended to read as
follows:
``(a) Secondary Transmissions Into Local Markets.--
``(1) Secondary transmissions of television broadcast
stations within a local market.--A secondary transmission of a
performance or display of a work embodied in a primary
transmission of a television broadcast station into the
station's local market shall be subject to statutory licensing
under this section if--
``(A) the secondary transmission is made by a
satellite carrier to the public;
``(B) with regard to secondary transmissions, the
satellite carrier is in compliance with the rules,
regulations, or authorizations of the Federal
Communications Commission governing the carriage of
television broadcast station signals; and
``(C) the satellite carrier makes a direct or
indirect charge for the secondary transmission to--
``(i) each subscriber receiving the
secondary transmission; or
``(ii) a distributor that has contracted
with the satellite carrier for direct or
indirect delivery of the secondary transmission
to the public.
``(2) Significantly viewed stations.--
``(A) In general.--A secondary transmission of a
performance or display of a work embodied in a primary
transmission of a television broadcast station to
subscribers who receive secondary transmissions of
primary transmissions under paragraph (1) shall be
subject to statutory licensing under this paragraph if
the secondary transmission is of the primary
transmission of a network station or a non-network
station to a subscriber who resides outside the
station's local market but within a community in which
the signal has been determined by the Federal
Communications Commission to be significantly viewed in
such community, pursuant to the rules, regulations, and
authorizations of the Federal Communications Commission
in effect on April 15, 1976, applicable to determining
with respect to a cable system whether signals are
significantly viewed in a community.
``(B) Waiver.--A subscriber who is denied the
secondary transmission of the primary transmission of a
network station or a non-network station under
subparagraph (A) may request a waiver from such denial
by submitting a request, through the subscriber's
satellite carrier, to the network station or non-
network station in the local market affiliated with the
same network or non-network where the subscriber is
located. The network station or non-network station
shall accept or reject the subscriber's request for a
waiver within 30 days after receipt of the request. If
the network station or non-network station fails to
accept or reject the subscriber's request for a waiver
within that 30-day period, that network station or non-
network station shall be deemed to agree to the waiver
request.
``(3) Secondary transmission of low power programming.--
``(A) In general.--Subject to subparagraphs (B) and
(C), a secondary transmission of a performance or
display of a work embodied in a primary transmission of
a television broadcast station to subscribers who
receive secondary transmissions of primary
transmissions under paragraph (1) shall be subject to
statutory licensing under this paragraph if the
secondary transmission is of the primary transmission
of a television broadcast station that is licensed as a
low power television station, to a subscriber who
resides within the same designated market area as the
station that originates the transmission.
``(B) No applicability to repeaters and
translators.--Secondary transmissions provided for in
subparagraph (A) shall not apply to any low power
television station that retransmits the programs and
signals of another television station for more than 2
hours each day.
``(C) No impact on other secondary transmissions
obligations.--A satellite carrier that makes secondary
transmissions of a primary transmission of a low power
television station under a statutory license provided
under this section is not required, by reason of such
secondary transmissions, to make any other secondary
transmissions.
``(4) Special exceptions.--A secondary transmission of a
performance or display of a work embodied in a primary
transmission of a television broadcast station to subscribers
who receive secondary transmissions of primary transmissions
under paragraph (1) shall, if the secondary transmission is
made by a satellite carrier that complies with the requirements
of paragraph (1), be subject to statutory licensing under this
paragraph as follows:
``(A) States with single full-power network
station.--In a State in which there is licensed by the
Federal Communications Commission a single full-power
station that was a network station on January 1, 1995,
the statutory license provided for in this paragraph
shall apply to the secondary transmission by a
satellite carrier of the primary transmission of that
station to any subscriber in a community that is
located within that State and that is not within the
first 50 television markets as listed in the
regulations of the Commission as in effect on such date
(47 C.F.R. 76.51).
``(B) States with all network stations and non-
network stations in same local market.--In a State in
which all network stations and non-network stations
licensed by the Federal Communications Commission
within that State as of January 1, 1995, are assigned
to the same local market and that local market does not
encompass all counties of that State, the statutory
license provided under this paragraph shall apply to
the secondary transmission by a satellite carrier of
the primary transmissions of such station to all
subscribers in the State who reside in a local market
that is within the first 50 major television markets as
listed in the regulations of the Commission as in
effect on such date (section 76.51 of title 47, Code of
Federal Regulations).
``(C) Additional stations.--In the case of that
State in which are located 4 counties that--
``(i) on January 1, 2004, were in local
markets principally comprised of counties in
another State, and
``(ii) had a combined total of 41,340
television households, according to the U.S.
Television Household Estimates by Nielsen Media
Research for 2004,
the statutory license provided under this paragraph
shall apply to secondary transmissions by a satellite
carrier to subscribers in any such county of the
primary transmissions of any network station located in
that State, if the satellite carrier was making such
secondary transmissions to any subscribers in that
county on January 1, 2004.
``(D) Certain additional stations.--If 2 adjacent
counties in a single State are in a local market
comprised principally of counties located in another
State, the statutory license provided for in this
paragraph shall apply to the secondary transmission by
a satellite carrier to subscribers in those 2 counties
of the primary transmissions of any network station
located in the capital of the State in which such 2
counties are located, if--
``(i) the 2 counties are located in a local
market that is in the top 100 markets for the
year 2003 according to Nielsen Media Research;
and
``(ii) the total number of television
households in the 2 counties combined did not
exceed 10,000 for the year 2003 according to
Nielsen Media Research.
``(E) Networks of noncommercial educational
broadcast stations.--In the case of a system of three
or more noncommercial educational broadcast stations
licensed to a single State, public agency, or
political, educational, or special purpose subdivision
of a State, the statutory license provided for in this
paragraph shall apply to the secondary transmission of
the primary transmission of such system to any
subscriber in any county or county equivalent within
such State, if such subscriber is located in a
designated market area that is not otherwise eligible
to receive the secondary transmission of the primary
transmission of a noncommercial educational broadcast
station located within the State pursuant to paragraph
(1).
``(5) Applicability of royalty rates and procedures.--The
royalty rates and procedures under section 119(b) shall apply
to the secondary transmissions to which the statutory license
under paragraph (4) applies.''.
(c) Reporting Requirements.--Section 122(b) is amended--
(1) in paragraph (1), by striking ``station a list'' and
all that follows through the end and inserting the following:
``station--
``(A) a list identifying (by name in alphabetical
order and street address, including county and 9-digit
zip code) all subscribers to which the satellite
carrier makes secondary transmissions of that primary
transmission under subsection (a); and
``(B) a separate list, aggregated by designated
market area (by name and address, including street or
rural route number, city, State, and 9-digit zip code),
which shall indicate those subscribers being served
pursuant to paragraph (2) of subsection (a).''; and
(2) in paragraph (2), by striking ``network a list'' and
all that follows through the end and inserting the following:
``network--
``(A) a list identifying (by name in alphabetical
order and street address, including county and 9-digit
zip code) any subscribers who have been added or
dropped as subscribers since the last submission under
this subsection; and
``(B) a separate list, aggregated by designated
market area (by name and street address, including
street or rural route number, city, State, and 9-digit
zip code), identifying those subscribers whose service
pursuant to paragraph (2) of subsection (a) has been
added or dropped since the last submission under this
subsection.''.
(d) No Royalty Fee for Certain Secondary Transmissions.--Section
122(c) is amended--
(1) in the heading, by inserting ``for Certain Secondary
Transmissions'' after ``Required''; and
(2) by striking ``subsection (a)'' and inserting
``paragraphs (1), (2), and (3) of subsection (a)''.
(e) Violations for Territorial Restrictions.--
(1) Modification to statutory damages.--Section 122(f) is
amended--
(A) in paragraph (1)(B), by striking ``$5'' and
inserting ``$250''; and
(B) in paragraph (2), by striking ``$250,000'' each
place it appears and inserting ``$2,500,000''.
(2) Conforming amendments for additional stations.--Section
122 is amended--
(A) in subsection (f), by striking ``section 119
or'' each place it appears and inserting the following:
``section 119, subject to statutory licensing by reason
of paragraph (2)(A), (3), or (4) of subsection (a), or
subject to''; and
(B) in subsection (g), by striking ``section 119
or'' and inserting the following: ``section 119,
paragraph (2)(A), (3), or (4) of subsection (a), or''.
(f) Definitions.--Section 122(j) is amended--
(1) in paragraph (1), by striking ``which contracts'' and
inserting ``that contracts'';
(2) by redesignating paragraphs (4) and (5) as paragraphs
(6) and (7), respectively;
(3) in paragraph (3)--
(A) by redesignating such paragraph as paragraph
(4);
(B) in the heading of such paragraph, by inserting
``non-network station;'' after ``Network station;'';
and
(C) by inserting ```non-network station','' after
```network station','';
(4) by inserting after paragraph (2) the following:
``(3) Low power television station.--The term `low power
television station' means a low power TV station as defined in
section 74.701(f) of title 47, Code of Federal Regulations, as
in effect on June 1, 2004. For purposes of this paragraph, the
term `low power television station' includes a low power
television station that has been accorded primary status as a
Class A television licensee under section 73.6001(a) of title
47, Code of Federal Regulations.'';
(5) by inserting after paragraph (4) (as redesignated) the
following:
``(5) Noncommercial educational broadcast station.--The
term `noncommercial educational broadcast station' means a
television broadcast station that is a noncommercial
educational broadcast station as defined in section 397 of the
Communications Act of 1934, as in effect on the date of the
enactment of the Satellite Television Extension and Localism
Act of 2010.''; and
(6) by amending paragraph (6) (as redesignated) to read as
follows:
``(6) Subscriber.--The term `subscriber' means a person or
entity that receives a secondary transmission service from a
satellite carrier and pays a fee for the service, directly or
indirectly, to the satellite carrier or to a distributor.''.
SEC. 504. MODIFICATIONS TO CABLE SYSTEM SECONDARY TRANSMISSION RIGHTS
UNDER SECTION 111.
(a) Heading Renamed.--
(1) In general.--The heading of section 111 is amended by
inserting at the end the following: ``of broadcast programming
by cable''.
(2) Table of contents.--The table of contents for chapter 1
is amended by striking the item relating to section 111 and
inserting the following:
``111. Limitations on exclusive rights: Secondary transmissions of
broadcast programming by cable.''.
(b) Technical Amendment.--Section 111(a)(4) is amended by striking
``; or'' and inserting ``or section 122;''.
(c) Statutory License for Secondary Transmissions by Cable
Systems.--Section 111(d) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``A cable system whose
secondary'' and inserting the following:
``Statement of account and royalty fees.--
Subject to paragraph (5), a cable system whose
secondary''; and
(ii) by striking ``by regulation--'' and
inserting ``by regulation the following:'';
(B) in subparagraph (A)--
(i) by striking ``a statement of account''
and inserting ``A statement of account''; and
(ii) by striking ``; and'' and inserting a
period; and
(C) by striking subparagraphs (B), (C), and (D) and
inserting the following:
``(B) Except in the case of a cable system whose
royalty fee is specified in subparagraph (E) or (F), a
total royalty fee payable to copyright owners pursuant
to paragraph (3) for the period covered by the
statement, computed on the basis of specified
percentages of the gross receipts from subscribers to
the cable service during such period for the basic
service of providing secondary transmissions of primary
broadcast transmitters, as follows:
``(i) 1.064 percent of such gross receipts
for the privilege of further transmitting,
beyond the local service area of such primary
transmitter, any non-network programming of a
primary transmitter in whole or in part, such
amount to be applied against the fee, if any,
payable pursuant to clauses (ii) through (iv);
``(ii) 1.064 percent of such gross receipts
for the first distant signal equivalent;
``(iii) 0.701 percent of such gross
receipts for each of the second, third, and
fourth distant signal equivalents; and
``(iv) 0.330 percent of such gross receipts
for the fifth distant signal equivalent and
each distant signal equivalent thereafter.
``(C) In computing amounts under clauses (ii)
through (iv) of subparagraph (B)--
``(i) any fraction of a distant signal
equivalent shall be computed at its fractional
value;
``(ii) in the case of any cable system
located partly within and partly outside of the
local service area of a primary transmitter,
gross receipts shall be limited to those gross
receipts derived from subscribers located
outside of the local service area of such
primary transmitter; and
``(iii) if a cable system provides a
secondary transmission of a primary transmitter
to some but not all communities served by that
cable system--
``(I) the gross receipts and the
distant signal equivalent values for
such secondary transmission shall be
derived solely on the basis of the
subscribers in those communities where
the cable system provides such
secondary transmission; and
``(II) the total royalty fee for
the period paid by such system shall
not be less than the royalty fee
calculated under subparagraph (B)(i)
multiplied by the gross receipts from
all subscribers to the system.
``(D) A cable system that, on a statement submitted
before the date of the enactment of the Satellite
Television Extension and Localism Act of 2010, computed
its royalty fee consistent with the methodology under
subparagraph (C)(iii), or that amends a statement filed
before such date of enactment to compute the royalty
fee due using such methodology, shall not be subject to
an action for infringement, or eligible for any royalty
refund or offset, arising out of its use of such
methodology on such statement.
``(E) If the actual gross receipts paid by
subscribers to a cable system for the period covered by
the statement for the basic service of providing
secondary transmissions of primary broadcast
transmitters are $263,800 or less--
``(i) gross receipts of the cable system
for the purpose of this paragraph shall be
computed by subtracting from such actual gross
receipts the amount by which $263,800 exceeds
such actual gross receipts, except that in no
case shall a cable system's gross receipts be
reduced to less than $10,400; and
``(ii) the royalty fee payable under this
paragraph to copyright owners pursuant to
paragraph (3) shall be 0.5 percent, regardless
of the number of distant signal equivalents, if
any.
``(F) If the actual gross receipts paid by
subscribers to a cable system for the period covered by
the statement for the basic service of providing
secondary transmissions of primary broadcast
transmitters are more than $263,800 but less than
$527,600, the royalty fee payable under this paragraph
to copyright owners pursuant to paragraph (3) shall
be--
``(i) 0.5 percent of any gross receipts up
to $263,800, regardless of the number of
distant signal equivalents, if any; and
``(ii) 1 percent of any gross receipts in
excess of $263,800, but less than $527,600,
regardless of the number of distant signal
equivalents, if any.
``(G) A filing fee, as determined by the Register
of Copyrights pursuant to section 708(a).'';
(2) in paragraph (2), in the first sentence--
(A) by striking ``The Register of Copyrights'' and
inserting the following ``Handling of fees.--The
Register of Copyrights''; and
(B) by inserting ``(including the filing fee
specified in paragraph (1)(G))'' after ``shall receive
all fees'';
(3) in paragraph (3)--
(A) by striking ``The royalty fees'' and inserting
the following: ``Distribution of royalty fees to
copyright owners.--The royalty fees'';
(B) in subparagraph (A)--
(i) by striking ``any such'' and inserting
``Any such''; and
(ii) by striking ``; and'' and inserting a
period;
(C) in subparagraph (B)--
(i) by striking ``any such'' and inserting
``Any such''; and
(ii) by striking the semicolon and
inserting a period; and
(D) in subparagraph (C), by striking ``any such''
and inserting ``Any such'';
(4) in paragraph (4), by striking ``The royalty fees'' and
inserting the following: ``Procedures for royalty fee
distribution.--The royalty fees''; and
(5) by adding at the end the following new paragraphs:
``(5) 3.75 percent rate and syndicated exclusivity
surcharge not applicable to multicast streams.--The royalty
rates specified in sections 256.2(c) and 256.2(d) of title 37,
Code of Federal Regulations (commonly referred to as the `3.75
percent rate' and the `syndicated exclusivity surcharge',
respectively), as in effect on the date of the enactment of the
Satellite Television Extension and Localism Act of 2010, as
such rates may be adjusted, or such sections redesignated,
thereafter by the Copyright Royalty Judges, shall not apply to
the secondary transmission of a multicast stream.
``(6) Verification of accounts and fee payments.--The
Register of Copyrights shall issue regulations to provide for
the confidential verification by copyright owners whose works
were embodied in the secondary transmissions of primary
transmissions pursuant to this section of the information
reported on the semiannual statements of account filed under
this subsection on or after January 1, 2010, in order that the
auditor designated under subparagraph (A) is able to confirm
the correctness of the calculations and royalty payments
reported therein. The regulations shall--
``(A) establish procedures for the designation of a
qualified independent auditor--
``(i) with exclusive authority to request
verification of such a statement of account on
behalf of all copyright owners whose works were
the subject of secondary transmissions of
primary transmissions by the cable system (that
deposited the statement) during the accounting
period covered by the statement; and
``(ii) who is not an officer, employee, or
agent of any such copyright owner for any
purpose other than such audit;
``(B) establish procedures for safeguarding all
non-public financial and business information provided
under this paragraph;
``(C)(i) require a consultation period for the
independent auditor to review its conclusions with a
designee of the cable system;
``(ii) establish a mechanism for the cable system
to remedy any errors identified in the auditor's report
and to cure any underpayment identified; and
``(iii) provide an opportunity to remedy any
disputed facts or conclusions;
``(D) limit the frequency of requests for
verification for a particular cable system and the
number of audits that a multiple system operator can be
required to undergo in a single year; and
``(E) permit requests for verification of a
statement of account to be made only within 3 years
after the last day of the year in which the statement
of account is filed.
``(7) Acceptance of additional deposits.--Any royalty fee
payments received by the Copyright Office from cable systems
for the secondary transmission of primary transmissions that
are in addition to the payments calculated and deposited in
accordance with this subsection shall be deemed to have been
deposited for the particular accounting period for which they
are received and shall be distributed as specified under this
subsection.''.
(d) Effective Date of New Royalty Fee Rates.--The royalty fee rates
established in section 111(d)(1)(B) of title 17, United States Code, as
amended by subsection (c)(1)(C) of this section, shall take effect
commencing with the first accounting period occurring in 2010.
(e) Definitions.--Section 111(f) is amended--
(1) by striking the first undesignated paragraph and
inserting the following:
``(1) Primary transmission.--A `primary transmission' is a
transmission made to the public by a transmitting facility
whose signals are being received and further transmitted by a
secondary transmission service, regardless of where or when the
performance or display was first transmitted. In the case of a
television broadcast station, the primary stream and any
multicast streams transmitted by the station constitute primary
transmissions.'';
(2) in the second undesignated paragraph--
(A) by striking ``A `secondary transmission''' and
inserting the following:
``(2) Secondary transmission.--A `secondary
transmission'''; and
(B) by striking ```cable system''' and inserting
``cable system'';
(3) in the third undesignated paragraph--
(A) by striking ``A `cable system''' and inserting
the following:
``(3) Cable system.--A `cable system'''; and
(B) by striking ``Territory, Trust Territory, or
Possession'' and inserting ``territory, trust
territory, or possession of the United States'';
(4) in the fourth undesignated paragraph, in the first
sentence--
(A) by striking ``The `local service area of a
primary transmitter', in the case of a television
broadcast station, comprises the area in which such
station is entitled to insist'' and inserting the
following:
``(4) Local service area of a primary transmitter.--The
`local service area of a primary transmitter', in the case of
both the primary stream and any multicast streams transmitted
by a primary transmitter that is a television broadcast
station, comprises the area where such primary transmitter
could have insisted'';
(B) by striking ``76.59 of title 47 of the Code of
Federal Regulations'' and inserting the following:
``76.59 of title 47, Code of Federal Regulations, or
within the noise-limited contour as defined in
73.622(e)(1) of title 47, Code of Federal
Regulations''; and
(C) by striking ``as defined by the rules and
regulations of the Federal Communications
Commission,'';
(5) by amending the fifth undesignated paragraph to read as
follows:
``(5) Distant signal equivalent.--
``(A) In general.--Except as provided under
subparagraph (B), a `distant signal equivalent'--
``(i) is the value assigned to the
secondary transmission of any non-network
television programming carried by a cable
system in whole or in part beyond the local
service area of the primary transmitter of such
programming; and
``(ii) is computed by assigning a value of
one to each primary stream and to each
multicast stream (other than a simulcast) that
is an independent station, and by assigning a
value of one-quarter to each primary stream and
to each multicast stream (other than a
simulcast) that is a network station or a
noncommercial educational station.
``(B) Exceptions.--The values for independent,
network, and noncommercial educational stations
specified in subparagraph (A) are subject to the
following:
``(i) Where the rules and regulations of
the Federal Communications Commission require a
cable system to omit the further transmission
of a particular program and such rules and
regulations also permit the substitution of
another program embodying a performance or
display of a work in place of the omitted
transmission, or where such rules and
regulations in effect on the date of the
enactment of the Copyright Act of 1976 permit a
cable system, at its election, to effect such
omission and substitution of a nonlive program
or to carry additional programs not transmitted
by primary transmitters within whose local
service area the cable system is located, no
value shall be assigned for the substituted or
additional program.
``(ii) Where the rules, regulations, or
authorizations of the Federal Communications
Commission in effect on the date of the
enactment of the Copyright Act of 1976 permit a
cable system, at its election, to omit the
further transmission of a particular program
and such rules, regulations, or authorizations
also permit the substitution of another program
embodying a performance or display of a work in
place of the omitted transmission, the value
assigned for the substituted or additional
program shall be, in the case of a live
program, the value of one full distant signal
equivalent multiplied by a fraction that has as
its numerator the number of days in the year in
which such substitution occurs and as its
denominator the number of days in the year.
``(iii) In the case of the secondary
transmission of a primary transmitter that is a
television broadcast station pursuant to the
late-night or specialty programming rules of
the Federal Communications Commission, or the
secondary transmission of a primary transmitter
that is a television broadcast station on a
part-time basis where full-time carriage is not
possible because the cable system lacks the
activated channel capacity to retransmit on a
full-time basis all signals that it is
authorized to carry, the values for
independent, network, and noncommercial
educational stations set forth in subparagraph
(A), as the case may be, shall be multiplied by
a fraction that is equal to the ratio of the
broadcast hours of such primary transmitter
retransmitted by the cable system to the total
broadcast hours of the primary transmitter.
``(iv) No value shall be assigned for the
secondary transmission of the primary stream or
any multicast streams of a primary transmitter
that is a television broadcast station in any
community that is within the local service area
of the primary transmitter.'';
(6) by striking the sixth undesignated paragraph and
inserting the following:
``(6) Network station.--
``(A) Treatment of primary stream.--The term
`network station' shall be applied to a primary stream
of a television broadcast station that is owned or
operated by, or affiliated with, one or more of the
television networks in the United States providing
nationwide transmissions, and that transmits a
substantial part of the programming supplied by such
networks for a substantial part of the primary stream's
typical broadcast day.
``(B) Treatment of multicast streams.--The term
`network station' shall be applied to a multicast
stream on which a television broadcast station
transmits all or substantially all of the programming
of an interconnected program service that--
``(i) is owned or operated by, or
affiliated with, one or more of the television
networks described in subparagraph (A); and
``(ii) offers programming on a regular
basis for 15 or more hours per week to at least
25 of the affiliated television licensees of
the interconnected program service in 10 or
more States.'';
(7) by striking the seventh undesignated paragraph and
inserting the following:
``(7) Independent station.--The term `independent station'
shall be applied to the primary stream or a multicast stream of
a television broadcast station that is not a network station or
a noncommercial educational station.'';
(8) by striking the eighth undesignated paragraph and
inserting the following:
``(8) Noncommercial educational station.--The term
`noncommercial educational station' shall be applied to the
primary stream or a multicast stream of a television broadcast
station that is a noncommercial educational broadcast station
as defined in section 397 of the Communications Act of 1934, as
in effect on the date of the enactment of the Satellite
Television Extension and Localism Act of 2010.''; and
(9) by adding at the end the following:
``(9) Primary stream.--A `primary stream' is--
``(A) the single digital stream of programming
that, before June 12, 2009, was substantially
duplicating the programming transmitted by the
television broadcast station as an analog signal; or
``(B) if there is no stream described in
subparagraph (A), then the single digital stream of
programming transmitted by the television broadcast
station for the longest period of time.
``(10) Primary transmitter.--A `primary transmitter' is a
television or radio broadcast station licensed by the Federal
Communications Commission, or by an appropriate governmental
authority of Canada or Mexico, that makes primary transmissions
to the public.
``(11) Multicast stream.--A `multicast stream' is a digital
stream of programming that is transmitted by a television
broadcast station and is not the station's primary stream.
``(12) Simulcast.--A `simulcast' is a multicast stream of a
television broadcast station that duplicates the programming
transmitted by the primary stream or another multicast stream
of such station.
``(13) Subscriber; subscribe.--
``(A) Subscriber.--The term `subscriber' means a
person or entity that receives a secondary transmission
service from a cable system and pays a fee for the
service, directly or indirectly, to the cable system.
``(B) Subscribe.--The term `subscribe' means to
elect to become a subscriber.''.
(f) Timing of Section 111 Proceedings.--Section 804(b)(1) is
amended by striking ``2005'' each place it appears and inserting
``2015''.
(g) Technical and Conforming Amendments.--
(1) Corrections to fix level designations.--Section 111 is
amended--
(A) in subsections (a), (c), and (e), by striking
``clause'' each place it appears and inserting
``paragraph'';
(B) in subsection (c)(1), by striking ``clauses''
and inserting ``paragraphs''; and
(C) in subsection (e)(1)(F), by striking
``subclause'' and inserting ``subparagraph''.
(2) Conforming amendment to hyphenate nonnetwork.--Section
111 is amended by striking ``nonnetwork'' each place it appears
and inserting ``non-network''.
(3) Previously undesignated paragraph.--Section 111(e)(1)
is amended by striking ``second paragraph of subsection (f)''
and inserting ``subsection (f)(2)''.
(4) Removal of superfluous ands.--Section 111(e) is
amended--
(A) in paragraph (1)(A), by striking ``and'' at the
end;
(B) in paragraph (1)(B), by striking ``and'' at the
end;
(C) in paragraph (1)(C), by striking ``and'' at the
end;
(D) in paragraph (1)(D), by striking ``and'' at the
end; and
(E) in paragraph (2)(A), by striking ``and'' at the
end.
(5) Removal of variant forms references.--Section 111 is
amended--
(A) in subsection (e)(4), by striking ``, and each
of its variant forms,''; and
(B) in subsection (f), by striking ``and their
variant forms''.
(6) Correction to territory reference.--Section 111(e)(2)
is amended in the matter preceding subparagraph (A) by striking
``three territories'' and inserting ``five entities''.
(h) Effective Date With Respect to Multicast Streams.--
(1) In general.--Subject to paragraphs (2) and (3), the
amendments made by this section, to the extent such amendments
assign a distant signal equivalent value to the secondary
transmission of the multicast stream of a primary transmitter,
shall take effect on the date of the enactment of this Act.
(2) Delayed applicability.--
(A) Secondary transmissions of a multicast stream
beyond the local service area of its primary
transmitter before 2010 act.--In any case in which a
cable system was making secondary transmissions of a
multicast stream beyond the local service area of its
primary transmitter before the date of the enactment of
this Act, a distant signal equivalent value (referred
to in paragraph (1)) shall not be assigned to secondary
transmissions of such multicast stream that are made on
or before June 30, 2010.
(B) Multicast streams subject to preexisting
written agreements for the secondary transmission of
such streams.--In any case in which the secondary
transmission of a multicast stream of a primary
transmitter is the subject of a written agreement
entered into on or before June 30, 2009, between a
cable system or an association representing the cable
system and a primary transmitter or an association
representing the primary transmitter, a distant signal
equivalent value (referred to in paragraph (1)) shall
not be assigned to secondary transmissions of such
multicast stream beyond the local service area of its
primary transmitter that are made on or before the date
on which such written agreement expires.
(C) No refunds or offsets for prior statements of
account.--A cable system that has reported secondary
transmissions of a multicast stream beyond the local
service area of its primary transmitter on a statement
of account deposited under section 111 of title 17,
United States Code, before the date of the enactment of
this Act shall not be entitled to any refund, or
offset, of royalty fees paid on account of such
secondary transmissions of such multicast stream.
(3) Definitions.--In this subsection, the terms ``cable
system'', ``secondary transmission'', ``multicast stream'', and
``local service area of a primary transmitter'' have the
meanings given those terms in section 111(f) of title 17,
United States Code, as amended by this section.
SEC. 505. CERTAIN WAIVERS GRANTED TO PROVIDERS OF LOCAL-INTO-LOCAL
SERVICE FOR ALL DMAS.
Section 119 is amended by adding at the end the following new
subsection:
``(g) Certain Waivers Granted to Providers of Local-Into-Local
Service to All DMAs.--
``(1) Injunction waiver.--A court that issued an injunction
pursuant to subsection (a)(7)(B) before the date of the
enactment of this subsection shall waive such injunction if the
court recognizes the entity against which the injunction was
issued as a qualified carrier.
``(2) Limited temporary waiver.--
``(A) In general.--Upon a request made by a
satellite carrier, a court that issued an injunction
against such carrier under subsection (a)(7)(B) before
the date of the enactment of this subsection shall
waive such injunction with respect to the statutory
license provided under subsection (a)(2) to the extent
necessary to allow such carrier to make secondary
transmissions of primary transmissions made by a
network station to unserved households located in short
markets in which such carrier was not providing local
service pursuant to the license under section 122 as of
December 31, 2009.
``(B) Expiration of temporary waiver.--A temporary
waiver of an injunction under subparagraph (A) shall
expire after the end of the 120-day period beginning on
the date such temporary waiver is issued unless
extended for good cause by the court making the
temporary waiver.
``(C) Failure to provide local-into-local service
to all dmas.--
``(i) Failure to act reasonably and in good
faith.--If the court issuing a temporary waiver
under subparagraph (A) determines that the
satellite carrier that made the request for
such waiver has failed to act reasonably or has
failed to make a good faith effort to provide
local-into-local service to all DMAs, such
failure--
``(I) is actionable as an act of
infringement under section 501 and the
court may in its discretion impose the
remedies provided for in sections 502
through 506 and subsection (a)(6)(B) of
this section; and
``(II) shall result in the
termination of the waiver issued under
subparagraph (A).
``(ii) Failure to provide local-into-local
service.--If the court issuing a temporary
waiver under subparagraph (A) determines that
the satellite carrier that made the request for
such waiver has failed to provide local-into-
local service to all DMAs, but determines that
the carrier acted reasonably and in good faith,
the court may in its discretion impose
financial penalties that reflect--
``(I) the degree of control the
carrier had over the circumstances that
resulted in the failure;
``(II) the quality of the carrier's
efforts to remedy the failure; and
``(III) the severity and duration
of any service interruption.
``(D) Single temporary waiver available.--An entity
may only receive one temporary waiver under this
paragraph.
``(E) Short market defined.--For purposes of this
paragraph, the term `short market' means a local market
in which programming of one or more of the four most
widely viewed television networks nationwide as
measured on the date of the enactment of this
subsection is not offered on the primary stream
transmitted by any local television broadcast station.
``(3) Establishment of qualified carrier recognition.--
``(A) Statement of eligibility.--An entity seeking
to be recognized as a qualified carrier under this
subsection shall file a statement of eligibility with
the court that imposed the injunction. A statement of
eligibility must include--
``(i) an affidavit that the entity is
providing local-into-local service to all DMAs;
``(ii) a request for a waiver of the
injunction; and
``(iii) a certification issued pursuant to
section 342(a) of Communications Act of 1934.
``(B) Grant of recognition as a qualified
carrier.--Upon receipt of a statement of eligibility,
the court shall recognize the entity as a qualified
carrier and issue the waiver under paragraph (1).
``(C) Voluntary termination.--At any time, an
entity recognized as a qualified carrier may file a
statement of voluntary termination with the court
certifying that it no longer wishes to be recognized as
a qualified carrier. Upon receipt of such statement,
the court shall reinstate the injunction waived under
paragraph (1).
``(D) Loss of recognition prevents future
recognition.--No entity may be recognized as a
qualified carrier if such entity had previously been
recognized as a qualified carrier and subsequently lost
such recognition or voluntarily terminated such
recognition under subparagraph (C).
``(4) Qualified carrier obligations and compliance.--
``(A) Continuing obligations.--
``(i) In general.--An entity recognized as
a qualified carrier shall continue to provide
local-into-local service to all DMAs.
``(ii) Cooperation with gao examination.--
An entity recognized as a qualified carrier
shall fully cooperate with the Comptroller
General in the examination required by
subparagraph (B).
``(B) Qualified carrier compliance examination.--
``(i) Examination and report.--The
Comptroller General shall conduct an
examination and publish a report concerning the
qualified carrier's compliance with the royalty
payment and household eligibility requirements
of the license under this section. The report
shall address the qualified carrier's conduct
during the period beginning on the date on
which the qualified carrier is recognized as
such under paragraph (3)(B) and ending on
December 31, 2011.
``(ii) Records of qualified carrier.--
Beginning on the date that is one year after
the date on which the qualified carrier is
recognized as such under paragraph (3)(B), but
not later than October 1, 2011, the qualified
carrier shall provide the Comptroller General
with all records that the Comptroller General,
in consultation with the Register of
Copyrights, considers to be directly pertinent
to the following requirements under this
section:
``(I) Proper calculation and
payment of royalties under the
statutory license under this section.
``(II) Provision of service under
this license to eligible subscribers
only.
``(iii) Submission of report.--The
Comptroller General shall file the report
required by clause (i) not later than March 1,
2012, with the court referred to in paragraph
(1) that issued the injunction, the Register of
Copyrights, the Committees on the Judiciary and
on Energy and Commerce of the House of
Representatives, and the Committees on the
Judiciary and on Commerce, Science, and
Transportation of the Senate.
``(iv) Evidence of infringement.--The
Comptroller General shall include in the report
a statement of whether the examination by the
Comptroller General indicated that there is
substantial evidence that a copyright holder
could bring a successful action under this
section against the qualified carrier for
infringement. The Comptroller General shall
consult with the Register of Copyrights in
preparing such statement.
``(v) Subsequent examination.--If the
report includes the Comptroller General's
statement that there is substantial evidence
that a copyright holder could bring a
successful action under this section against
the qualified carrier for infringement, the
Comptroller General shall, not later than 6
months after the report under clause (i) is
published, initiate another examination of the
qualified carrier's compliance with the royalty
payment and household eligibility requirements
of the license under this section since the
last report was filed under clause (iii). The
Comptroller General shall file a report on such
examination with the court referred to in
paragraph (1) that issued the injunction, the
Register of Copyrights, the Committees on the
Judiciary and on Energy and Commerce of the
House of Representatives, and the Committees on
the Judiciary and on Commerce, Science, and
Transportation of the Senate. The report shall
include a statement described in clause (iv),
prepared in consultation with the Register of
Copyrights.
``(vi) Compliance.--Upon motion filed by an
aggrieved copyright owner, the court
recognizing an entity as a qualified carrier
shall terminate such designation upon finding
that the entity has failed to cooperate with
the examinations required by this subparagraph.
``(C) Affirmation.--A qualified carrier shall file
an affidavit with the district court and the Register
of Copyrights 30 months after such status was granted
stating that, to the best of the affiant's knowledge,
it is in compliance with the requirements for a
qualified carrier.
``(D) Compliance determination.--Upon the motion of
an aggrieved television broadcast station, the court
recognizing an entity as a qualified carrier may make a
determination of whether the entity is providing local-
into-local service to all DMAs.
``(E) Pleading requirement.--In any motion brought
under subparagraph (D), the party making such motion
shall specify one or more designated market areas (as
such term is defined in section 122(j)(2)(C)) for which
the failure to provide service is being alleged, and,
for each such designated market area, shall plead with
particularity the circumstances of the alleged failure.
``(F) Burden of proof.--In any proceeding to make a
determination under subparagraph (D), and with respect
to a designated market area for which failure to
provide service is alleged, the entity recognized as a
qualified carrier shall have the burden of proving that
the entity provided local-into-local service with a
good quality satellite signal to at least 90 percent of
the households in such designated market area (based on
the most recent census data released by the United
States Census Bureau) at the time and place alleged.
``(5) Failure to provide service.--
``(A) Penalties.--If the court recognizing an
entity as a qualified carrier finds that such entity
has willfully failed to provide local-into-local
service to all DMAs, such finding shall result in the
loss of recognition of the entity as a qualified
carrier and the termination of the waiver provided
under paragraph (1), and the court may, in its
discretion--
``(i) treat such failure as an act of
infringement under section 501, and subject
such infringement to the remedies provided for
in sections 502 through 506 and subsection
(a)(6)(B) of this section; and
``(ii) impose a fine of not less than
$250,000 and not more than $5,000,000.
``(B) Exception for nonwillful violation.--If the
court determines that the failure to provide local-
into-local service to all DMAs is nonwillful, the court
may in its discretion impose financial penalties for
noncompliance that reflect--
``(i) the degree of control the entity had
over the circumstances that resulted in the
failure;
``(ii) the quality of the entity's efforts
to remedy the failure and restore service; and
``(iii) the severity and duration of any
service interruption.
``(6) Penalties for violations of license.--A court that
finds, under subsection (a)(6)(A), that an entity recognized as
a qualified carrier has willfully made a secondary transmission
of a primary transmission made by a network station and
embodying a performance or display of a work to a subscriber
who is not eligible to receive the transmission under this
section shall reinstate the injunction waived under paragraph
(1), and the court may order statutory damages of not more than
$2,500,000.
``(7) Local-into-local service to all dmas defined.--For
purposes of this subsection:
``(A) In general.--An entity provides `local-into-
local service to all DMAs' if the entity provides local
service in all designated market areas (as such term is
defined in section 122(j)(2)(C)) pursuant to the
license under section 122.
``(B) Household coverage.--For purposes of
subparagraph (A), an entity that makes available local-
into-local service with a good quality satellite signal
to at least 90 percent of the households in a
designated market area based on the most recent census
data released by the United States Census Bureau shall
be considered to be providing local service to such
designated market area.
``(C) Good quality satellite signal defined.--The
term `good quality signal' has the meaning given such
term under section 342(e)(2) of Communications Act of
1934.''.
SEC. 506. COPYRIGHT OFFICE FEES.
Section 708(a) is amended--
(1) in paragraph (8), by striking ``and'' after the
semicolon;
(2) in paragraph (9), by striking the period and inserting
a semicolon;
(3) by inserting after paragraph (9) the following:
``(10) on filing a statement of account based on secondary
transmissions of primary transmissions pursuant to section 119
or 122; and
``(11) on filing a statement of account based on secondary
transmissions of primary transmissions pursuant to section
111.''; and
(4) by adding at the end the following new sentence: ``Fees
established under paragraphs (10) and (11) shall be reasonable
and may not exceed one-half of the cost necessary to cover
reasonable expenses incurred by the Copyright Office for the
collection and administration of the statements of account and
any royalty fees deposited with such statements.''.
SEC. 507. TERMINATION OF LICENSE.
Section 1003(a)(2)(A) of Public Law 111-118 is amended by striking
``March 28, 2010'' and inserting ``December 31, 2014''.
SEC. 508. CONSTRUCTION.
Nothing in section 111, 119, or 122 of title 17, United States
Code, including the amendments made to such sections by this subtitle,
shall be construed to affect the meaning of any terms under the
Communications Act of 1934, except to the extent that such sections are
specifically cross-referenced in such Act or the regulations issued
thereunder.
Subtitle B--Communications Provisions
SEC. 521. REFERENCE.
Except as otherwise provided, whenever in this subtitle an
amendment is made to a section or other provision, the reference shall
be considered to be made to such section or provision of the
Communications Act of 1934 (47 U.S.C. 151 et seq.).
SEC. 522. EXTENSION OF AUTHORITY.
Section 325(b) is amended--
(1) in paragraph (2)(C), by striking ``March 28, 2010'' and
inserting ``December 31, 2014''; and
(2) in paragraph (3)(C), by striking ``March 29, 2010''
each place it appears in clauses (ii) and (iii) and inserting
``January 1, 2015''.
SEC. 523. SIGNIFICANTLY VIEWED STATIONS.
(a) In General.--Paragraphs (1) and (2) of section 340(b) are
amended to read as follows:
``(1) Service limited to subscribers taking local-into-
local service.--This section shall apply only to
retransmissions to subscribers of a satellite carrier who
receive retransmissions of a signal from that satellite carrier
pursuant to section 338.
``(2) Service limitations.--A satellite carrier may
retransmit to a subscriber in high definition format the signal
of a station determined by the Commission to be significantly
viewed under subsection (a) only if such carrier also
retransmits in high definition format the signal of a station
located in the local market of such subscriber and affiliated
with the same network whenever such format is available from
such station.''.
(b) Rulemaking Required.--Within 210 days after the date of the
enactment of this Act, the Federal Communications Commission shall take
all actions necessary to promulgate a rule to implement the amendments
made by subsection (a).
SEC. 524. DIGITAL TELEVISION TRANSITION CONFORMING AMENDMENTS.
(a) Section 338.--Section 338 is amended--
(1) in subsection (a), by striking ``(3) effective date.--
No satellite'' and all that follows through ``until January 1,
2002.''; and
(2) by amending subsection (g) to read as follows:
``(g) Carriage of Local Stations on a Single Reception Antenna.--
``(1) Single reception antenna.--Each satellite carrier
that retransmits the signals of local television broadcast
stations in a local market shall retransmit such stations in
such market so that a subscriber may receive such stations by
means of a single reception antenna and associated equipment.
``(2) Additional reception antenna.--If the carrier
retransmits the signals of local television broadcast stations
in a local market in high definition format, the carrier shall
retransmit such signals in such market so that a subscriber may
receive such signals by means of a single reception antenna and
associated equipment, but such antenna and associated equipment
may be separate from the single reception antenna and
associated equipment used to comply with paragraph (1).''.
(b) Section 339.--Section 339 is amended--
(1) in subsection (a)--
(A) in paragraph (1)(B), by striking ``Such two
network stations'' and all that follows through ``more
than two network stations.''; and
(B) in paragraph (2)--
(i) in the heading for subparagraph (A), by
striking ``to analog signals'';
(ii) in subparagraph (A)--
(I) in the heading for clause (i),
by striking ``analog'';
(II) in clause (i)--
(aa) by striking ``analog''
each place it appears; and
(bb) by striking ``October
1, 2004'' and inserting
``October 1, 2009'';
(III) in the heading for clause
(ii), by striking ``analog''; and
(IV) in clause (ii)--
(aa) by striking ``analog''
each place it appears; and
(bb) by striking ``2004''
and inserting ``2009'';
(iii) by amending subparagraph (B) to read
as follows:
``(B) Rules for other subscribers.--
``(i) In general.--In the case of a
subscriber of a satellite carrier who is
eligible to receive the signal of a network
station under this section (in this
subparagraph referred to as a `distant
signal'), other than subscribers to whom
subparagraph (A) applies, the following shall
apply:
``(I) In a case in which the
satellite carrier makes available to
that subscriber, on January 1, 2005,
the signal of a local network station
affiliated with the same television
network pursuant to section 338, the
carrier may only provide the secondary
transmissions of the distant signal of
a station affiliated with the same
network to that subscriber if the
subscriber's satellite carrier, not
later than March 1, 2005, submits to
that television network the list and
statement required by subparagraph
(F)(i).
``(II) In a case in which the
satellite carrier does not make
available to that subscriber, on
January 1, 2005, the signal of a local
network station pursuant to section
338, the carrier may only provide the
secondary transmissions of the distant
signal of a station affiliated with the
same network to that subscriber if--
``(aa) that subscriber
seeks to subscribe to such
distant signal before the date
on which such carrier commences
to carry pursuant to section
338 the signals of stations
from the local market of such
local network station; and
``(bb) the satellite
carrier, within 60 days after
such date, submits to each
television network the list and
statement required by
subparagraph (F)(ii).
``(ii) Special circumstances.--A subscriber
of a satellite carrier who was lawfully
receiving the distant signal of a network
station on the day before the date of enactment
of the Satellite Television Extension and
Localism Act of 2010 may receive both such
distant signal and the local signal of a
network station affiliated with the same
network until such subscriber chooses to no
longer receive such distant signal from such
carrier, whether or not such subscriber elects
to subscribe to such local signal.'';
(iv) in subparagraph (C)--
(I) by striking ``analog'';
(II) in clause (i), by striking
``the Satellite Home Viewer Extension
and Reauthorization Act of 2004; and''
and inserting the following:
``the Satellite Television Extension and
Localism Act of 2010 and, at the time such
person seeks to subscribe to receive such
secondary transmission, resides in a local
market where the satellite carrier makes
available to that person the signal of a local
network station affiliated with the same
television network pursuant to section 338 (and
the retransmission of such signal by such
carrier can reach such subscriber); or''; and
(III) by amending clause (ii) to
read as follows:
``(ii) lawfully subscribes to and receives
a distant signal on or after the date of
enactment of the Satellite Television Extension
and Localism Act of 2010, and, subsequent to
such subscription, the satellite carrier makes
available to that subscriber the signal of a
local network station affiliated with the same
network as the distant signal (and the
retransmission of such signal by such carrier
can reach such subscriber), unless such person
subscribes to the signal of the local network
station within 60 days after such signal is
made available.'';
(v) in subparagraph (D)--
(I) in the heading, by striking
``digital'';
(II) by striking clauses (i), (iii)
through (v), (vii) through (ix), and
(xi);
(III) by redesignating clause (vi)
as clause (i) and transferring such
clause to appear before clause (ii);
(IV) by amending such clause (i)
(as so redesignated) to read as
follows:
``(i) Eligibility and signal testing.--A
subscriber of a satellite carrier shall be
eligible to receive a distant signal of a
network station affiliated with the same
network under this section if, with respect to
a local network station, such subscriber--
``(I) is a subscriber whose
household is not predicted by the model
specified in subsection (c)(3) to
receive the signal intensity required
under section 73.622(e)(1) or, in the
case of a low-power station or
translator station transmitting an
analog signal, section 73.683(a) of
title 47, Code of Federal Regulations,
or a successor regulation;
``(II) is determined, based on a
test conducted in accordance with
section 73.686(d) of title 47, Code of
Federal Regulations, or any successor
regulation, not to be able to receive a
signal that exceeds the signal
intensity standard in section
73.622(e)(1) or, in the case of a low-
power station or translator station
transmitting an analog signal, section
73.683(a) of such title, or a successor
regulation; or
``(III) is in an unserved
household, as determined under section
119(d)(10)(A) of title 17, United
States Code.'';
(V) in clause (ii)--
(aa) by striking
``digital'' in the heading;
(bb) by striking
``digital'' the first two
places such term appears;
(cc) by striking
``Satellite Home Viewer
Extension and Reauthorization
Act of 2004'' and inserting
``Satellite Television
Extension and Localism Act of
2010''; and
(dd) by striking ``,
whether or not such subscriber
elects to subscribe to local
digital signals'';
(VI) by inserting after clause (ii)
the following new clause:
``(iii) Time-shifting prohibited.--In a
case in which the satellite carrier makes
available to an eligible subscriber under this
subparagraph the signal of a local network
station pursuant to section 338, the carrier
may only provide the distant signal of a
station affiliated with the same network to
that subscriber if, in the case of any local
market in the 48 contiguous States of the
United States, the distant signal is the
secondary transmission of a station whose prime
time network programming is generally broadcast
simultaneously with, or later than, the prime
time network programming of the affiliate of
the same network in the local market.''; and
(VII) by redesignating clause (x)
as clause (iv); and
(vi) in subparagraph (E), by striking
``distant analog signal or'' and all that
follows through ``(B), or (D))'' and inserting
``distant signal'';
(2) in subsection (c)--
(A) by amending paragraph (3) to read as follows:
``(3) Establishment of improved predictive model and on-
location testing required.--
``(A) Predictive model.--Within 210 days after the
date of the enactment of the Satellite Television
Extension and Localism Act of 2010, the Commission
shall develop and prescribe by rule a point-to-point
predictive model for reliably and presumptively
determining the ability of individual locations,
through the use of an antenna, to receive signals in
accordance with the signal intensity standard in
section 73.622(e)(1) of title 47, Code of Federal
Regulations, or a successor regulation, including to
account for the continuing operation of translator
stations and low power television stations. In
prescribing such model, the Commission shall rely on
the Individual Location Longley-Rice model set forth by
the Commission in CS Docket No. 98-201, as previously
revised with respect to analog signals, and as
recommended by the Commission with respect to digital
signals in its Report to Congress in ET Docket No. 05-
182, FCC 05-199 (released December 9, 2005). The
Commission shall establish procedures for the continued
refinement in the application of the model by the use
of additional data as it becomes available.
``(B) On-location testing.--The Commission shall
issue an order completing its rulemaking proceeding in
ET Docket No. 06-94 within 210 days after the date of
enactment of the Satellite Television Extension and
Localism Act of 2010. In conducting such rulemaking,
the Commission shall seek ways to minimize consumer
burdens associated with on-location testing.'';
(B) by amending paragraph (4)(A) to read as
follows:
``(A) In general.--If a subscriber's request for a
waiver under paragraph (2) is rejected and the
subscriber submits to the subscriber's satellite
carrier a request for a test verifying the subscriber's
inability to receive a signal of the signal intensity
referenced in clause (i) of subsection (a)(2)(D), the
satellite carrier and the network station or stations
asserting that the retransmission is prohibited with
respect to that subscriber shall select a qualified and
independent person to conduct the test referenced in
such clause. Such test shall be conducted within 30
days after the date the subscriber submits a request
for the test. If the written findings and conclusions
of a test conducted in accordance with such clause
demonstrate that the subscriber does not receive a
signal that meets or exceeds the requisite signal
intensity standard in such clause, the subscriber shall
not be denied the retransmission of a signal of a
network station under section 119(d)(10)(A) of title
17, United States Code.'';
(C) in paragraph (4)(B), by striking ``the signal
intensity'' and all that follows through ``United
States Code'' and inserting ``such requisite signal
intensity standard''; and
(D) in paragraph (4)(E), by striking ``Grade B
intensity''.
(c) Section 340.--Section 340(i) is amended by striking paragraph
(4).
SEC. 525. APPLICATION PENDING COMPLETION OF RULEMAKINGS.
(a) In General.--During the period beginning on the date of the
enactment of this Act and ending on the date on which the Federal
Communications Commission adopts rules pursuant to the amendments to
the Communications Act of 1934 made by section 523 and section 524 of
this title, the Federal Communications Commission shall follow its
rules and regulations promulgated pursuant to sections 338, 339, and
340 of the Communications Act of 1934 as in effect on the day before
the date of the enactment of this Act.
(b) Translator Stations and Low Power Television Stations.--
Notwithstanding subsection (a), for purposes of determining whether a
subscriber within the local market served by a translator station or a
low power television station affiliated with a television network is
eligible to receive distant signals under section 339 of the
Communications Act of 1934, the rules and regulations of the Federal
Communications Commission for determining such subscriber's eligibility
as in effect on the day before the date of the enactment of this Act
shall apply until the date on which the translator station or low power
television station is licensed to broadcast a digital signal.
(c) Definitions.--As used in this subtitle:
(1) Local market; low power television station; satellite
carrier; subscriber; television broadcast station.--The terms
``local market'', ``low power television station'', ``satellite
carrier'', ``subscriber'', and ``television broadcast station''
have the meanings given such terms in section 338(k) of the
Communications Act of 1934.
(2) Network station; television network.--The terms
``network station'' and ``television network'' have the
meanings given such terms in section 339(d) of such Act.
SEC. 526. PROCESS FOR ISSUING QUALIFIED CARRIER CERTIFICATION.
Part I of title III is amended by adding at the end the following
new section:
``SEC. 342. PROCESS FOR ISSUING QUALIFIED CARRIER CERTIFICATION.
``(a) Certification.--The Commission shall issue a certification
for the purposes of section 119(g)(3)(A)(iii) of title 17, United
States Code, if the Commission determines that--
``(1) a satellite carrier is providing local service
pursuant to the statutory license under section 122 of such
title in each designated market area; and
``(2) with respect to each designated market area in which
such satellite carrier was not providing such local service as
of the date of enactment of the Satellite Television Extension
and Localism Act of 2010--
``(A) the satellite carrier's satellite beams are
designed, and predicted by the satellite manufacturer's
pre-launch test data, to provide a good quality
satellite signal to at least 90 percent of the
households in each such designated market area based on
the most recent census data released by the United
States Census Bureau; and
``(B) there is no material evidence that there has
been a satellite or sub-system failure subsequent to
the satellite's launch that precludes the ability of
the satellite carrier to satisfy the requirements of
subparagraph (A).
``(b) Information Required.--Any entity seeking the certification
provided for in subsection (a) shall submit to the Commission the
following information:
``(1) An affidavit stating that, to the best of the
affiant's knowledge, the satellite carrier provides local
service in all designated market areas pursuant to the
statutory license provided for in section 122 of title 17,
United States Code, and listing those designated market areas
in which local service was provided as of the date of enactment
of the Satellite Television Extension and Localism Act of 2010.
``(2) For each designated market area not listed in
paragraph (1):
``(A) Identification of each such designated market
area and the location of its local receive facility.
``(B) Data showing the number of households, and
maps showing the geographic distribution thereof, in
each such designated market area based on the most
recent census data released by the United States Census
Bureau.
``(C) Maps, with superimposed effective
isotropically radiated power predictions obtained in
the satellite manufacturer's pre-launch tests, showing
that the contours of the carrier's satellite beams as
designed and the geographic area that the carrier's
satellite beams are designed to cover are predicted to
provide a good quality satellite signal to at least 90
percent of the households in such designated market
area based on the most recent census data released by
the United States Census Bureau.
``(D) For any satellite relied upon for
certification under this section, an affidavit stating
that, to the best of the affiant's knowledge, there
have been no satellite or sub-system failures
subsequent to the satellite's launch that would degrade
the design performance to such a degree that a
satellite transponder used to provide local service to
any such designated market area is precluded from
delivering a good quality satellite signal to at least
90 percent of the households in such designated market
area based on the most recent census data released by
the United States Census Bureau.
``(E) Any additional engineering, designated market
area, or other information the Commission considers
necessary to determine whether the Commission shall
grant a certification under this section.
``(c) Certification Issuance.--
``(1) Public comment.--The Commission shall provide 30 days
for public comment on a request for certification under this
section.
``(2) Deadline for decision.--The Commission shall grant or
deny a request for certification within 90 days after the date
on which such request is filed.
``(d) Subsequent Affirmation.--An entity granted qualified carrier
status pursuant to section 119(g) of title 17, United States Code,
shall file an affidavit with the Commission 30 months after such status
was granted stating that, to the best of the affiant's knowledge, it is
in compliance with the requirements for a qualified carrier.
``(e) Definitions.--For the purposes of this section:
``(1) Designated market area.--The term `designated market
area' has the meaning given such term in section 122(j)(2)(C)
of title 17, United States Code.
``(2) Good quality satellite signal.--
``(A) In general.--The term ``good quality
satellite signal'' means--
``(i) a satellite signal whose power level
as designed shall achieve reception and
demodulation of the signal at an availability
level of at least 99.7 percent using--
``(I) models of satellite antennas
normally used by the satellite
carrier's subscribers; and
``(II) the same calculation
methodology used by the satellite
carrier to determine predicted signal
availability in the top 100 designated
market areas; and
``(ii) taking into account whether a signal
is in standard definition format or high
definition format, compression methodology,
modulation, error correction, power level, and
utilization of advances in technology that do
not circumvent the intent of this section to
provide for non-discriminatory treatment with
respect to any comparable television broadcast
station signal, a video signal transmitted by a
satellite carrier such that--
``(I) the satellite carrier treats
all television broadcast stations'
signals the same with respect to
statistical multiplexer prioritization;
and
``(II) the number of video signals
in the relevant satellite transponder
is not more than the then current
greatest number of video signals
carried on any equivalent transponder
serving the top 100 designated market
areas.
``(B) Determination.--For the purposes of
subparagraph (A), the top 100 designated market areas
shall be as determined by Nielsen Media Research and
published in the Nielsen Station Index Directory and
Nielsen Station Index United States Television
Household Estimates or any successor publication as of
the date of a satellite carrier's application for
certification under this section.''.
SEC. 527. NONDISCRIMINATION IN CARRIAGE OF HIGH DEFINITION DIGITAL
SIGNALS OF NONCOMMERCIAL EDUCATIONAL TELEVISION STATIONS.
(a) In General.--Section 338(a) is amended by adding at the end the
following new paragraph:
``(5) Nondiscrimination in carriage of high definition
signals of noncommercial educational television stations.--
``(A) Existing carriage of high definition
signals.--If, before the date of enactment of the
Satellite Television Extension and Localism Act of
2010, an eligible satellite carrier is providing, under
section 122 of title 17, United States Code, any
secondary transmissions in high definition format to
subscribers located within the local market of a
television broadcast station of a primary transmission
made by that station, then such satellite carrier shall
carry the signals in high-definition format of
qualified noncommercial educational television stations
located within that local market in accordance with the
following schedule:
``(i) By December 31, 2010, in at least 50
percent of the markets in which such satellite
carrier provides such secondary transmissions
in high definition format.
``(ii) By December 31, 2011, in every
market in which such satellite carrier provides
such secondary transmissions in high definition
format.
``(B) New initiation of service.--If, on or after
the date of enactment of the Satellite Television
Extension and Localism Act of 2010, an eligible
satellite carrier initiates the provision, under
section 122 of title 17, United States Code, of any
secondary transmissions in high definition format to
subscribers located within the local market of a
television broadcast station of a primary transmission
made by that station, then such satellite carrier shall
carry the signals in high-definition format of all
qualified noncommercial educational television stations
located within that local market.''.
(b) Definitions.--Section 338(k) is amended--
(1) by redesignating paragraphs (2) through (8) as
paragraphs (3) through (9), respectively;
(2) by inserting after paragraph (1) the following new
paragraph:
``(2) Eligible satellite carrier.--The term `eligible
satellite carrier' means any satellite carrier that is not a
party to a carriage contract that--
``(A) governs carriage of at least 30 qualified
noncommercial educational television stations; and
``(B) is in force and effect within 60 days after
the date of enactment of the Satellite Television
Extension and Localism Act of 2010.'';
(3) by redesignating paragraphs (6) through (9) (as
previously redesignated) as paragraphs (7) through (10),
respectively; and
(4) by inserting after paragraph (5) (as so redesignated)
the following new paragraph:
``(6) Qualified noncommercial educational television
station.--The term `qualified noncommercial educational
television station' means any full-power television broadcast
station that--
``(A) under the rules and regulations of the
Commission in effect on March 29, 1990, is licensed by
the Commission as a noncommercial educational broadcast
station and is owned and operated by a public agency,
nonprofit foundation, nonprofit corporation, or
nonprofit association; and
``(B) has as its licensee an entity that is
eligible to receive a community service grant, or any
successor grant thereto, from the Corporation for
Public Broadcasting, or any successor organization
thereto, on the basis of the formula set forth in
section 396(k)(6)(B) of this title.''.
SEC. 528. SAVINGS CLAUSE REGARDING DEFINITIONS.
Nothing in this subtitle or the amendments made by this subtitle
shall be construed to affect--
(1) the meaning of the terms ``program related'' and
``primary video'' under the Communications Act of 1934; or
(2) the meaning of the term ``multicast'' in any
regulations issued by the Federal Communications Commission.
SEC. 529. STATE PUBLIC AFFAIRS BROADCASTS.
Section 335(b) is amended--
(1) by inserting ``state public affairs,'' after
``educational,'' in the heading;
(2) by striking paragraph (1) and inserting the following:
``(1) Channel capacity required.--
``(A) In general.--Except as provided in
subparagraph (B), the Commission shall require, as a
condition of any provision, initial authorization, or
authorization renewal for a provider of direct
broadcast satellite service providing video
programming, that the provider of such service reserve
a portion of its channel capacity, equal to not less
than 4 percent nor more than 7 percent, exclusively for
noncommercial programming of an educational or
informational nature.
``(B) Requirement for qualified satellite
provider.--The Commission shall require, as a condition
of any provision, initial authorization, or
authorization renewal for a qualified satellite
provider of direct broadcast satellite service
providing video programming, that such provider reserve
a portion of its channel capacity, equal to not less
than 3.5 percent nor more than 7 percent, exclusively
for noncommercial programming of an educational or
informational nature.'';
(3) in paragraph (5), by striking ``For purposes of the
subsection--'' and inserting ``For purposes of this
subsection:''; and
(4) by adding at the end of paragraph (5) the following:
``(C) The term `qualified satellite provider' means
any provider of direct broadcast satellite service
that--
``(i) provides the retransmission of the
State public affairs networks of at least 15
different States;
``(ii) offers the programming of State
public affairs networks upon reasonable prices,
terms, and conditions as determined by the
Commission under paragraph (4); and
``(iii) does not delete any noncommercial
programming of an educational or informational
nature in connection with the carriage of a
State public affairs network.
``(D) The term `State public affairs network' means
a non-commercial non-broadcast network or a
noncommercial educational television station--
``(i) whose programming consists of
information about State government
deliberations and public policy events; and
``(ii) that is operated by--
``(I) a State government or
subdivision thereof;
``(II) an organization described in
section 501(c)(3) of the Internal
Revenue Code of 1986 that is exempt
from taxation under section 501(a) of
such Code and that is governed by an
independent board of directors; or
``(III) a cable system.''.
Subtitle C--Reports and Savings Provision
SEC. 531. DEFINITION.
In this subtitle, the term ``appropriate Congressional committees''
means the Committees on the Judiciary and on Commerce, Science, and
Transportation of the Senate and the Committees on the Judiciary and on
Energy and Commerce of the House of Representatives.
SEC. 532. REPORT ON MARKET BASED ALTERNATIVES TO STATUTORY LICENSING.
Not later than 1 year after the date of the enactment of this Act,
and after consultation with the Federal Communications Commission, the
Register of Copyrights shall submit to the appropriate Congressional
committees a report containing--
(1) proposed mechanisms, methods, and recommendations on
how to implement a phase-out of the statutory licensing
requirements set forth in sections 111, 119, and 122 of title
17, United States Code, by making such sections inapplicable to
the secondary transmission of a performance or display of a
work embodied in a primary transmission of a broadcast station
that is authorized to license the same secondary transmission
directly with respect to all of the performances and displays
embodied in such primary transmission;
(2) any recommendations for alternative means to implement
a timely and effective phase-out of the statutory licensing
requirements set forth in sections 111, 119, and 122 of title
17, United States Code; and
(3) any recommendations for legislative or administrative
actions as may be appropriate to achieve such a phase-out.
SEC. 533. REPORT ON COMMUNICATIONS IMPLICATIONS OF STATUTORY LICENSING
MODIFICATIONS.
(a) Study.--The Comptroller General shall conduct a study that
analyzes and evaluates the changes to the carriage requirements
currently imposed on multichannel video programming distributors under
the Communications Act of 1934 (47 U.S.C. 151 et seq.) and the
regulations promulgated by the Federal Communications Commission that
would be required or beneficial to consumers, and such other matters as
the Comptroller General deems appropriate, if Congress implemented a
phase-out of the current statutory licensing requirements set forth
under sections 111, 119, and 122 of title 17, United States Code. Among
other things, the study shall consider the impact such a phase-out and
related changes to carriage requirements would have on consumer prices
and access to programming.
(b) Report.--Not later than 1 year after the date of the enactment
of this Act, the Comptroller General shall report to the appropriate
Congressional committees the results of the study, including any
recommendations for legislative or administrative actions.
SEC. 534. REPORT ON IN-STATE BROADCAST PROGRAMMING.
Not later than 1 year after the date of the enactment of this Act,
the Federal Communications Commission shall submit to the appropriate
Congressional committees a report containing an analysis of--
(1) the number of households in a State that receive the
signals of local broadcast stations assigned to a community of
license that is located in a different State;
(2) the extent to which consumers in each local market have
access to in-state broadcast programming over the air or from a
multichannel video programming distributor; and
(3) whether there are alternatives to the use of designated
market areas, as defined in section 122 of title 17, United
States Code, to define local markets that would provide more
consumers with in-state broadcast programming.
SEC. 535. LOCAL NETWORK CHANNEL BROADCAST REPORTS.
(a) Requirement.--
(1) In general.--On the 180th day after the date of the
enactment of this Act, and on each succeeding anniversary of
such 180th day, each satellite carrier shall submit an annual
report to the Federal Communications Commission setting forth--
(A) each local market in which it--
(i) retransmits signals of 1 or more
television broadcast stations with a community
of license in that market;
(ii) has commenced providing such signals
in the preceding 1-year period; and
(iii) has ceased to provide such signals in
the preceding 1-year period; and
(B) detailed information regarding the use and
potential use of satellite capacity for the
retransmission of local signals in each local market.
(2) Termination.--The requirement under paragraph (1) shall
cease after each satellite carrier has submitted 5 reports
under such paragraph.
(b) FCC Study; Report.--
(1) Study.--If no satellite carrier files a request for a
certification under section 342 of the Communications Act of
1934 (as added by section 526 of this title) within 180 days
after the date of the enactment of this Act, the Federal
Communications Commission shall initiate a study of--
(A) incentives that would induce a satellite
carrier to provide the signals of 1 or more television
broadcast stations licensed to provide signals in local
markets in which the satellite carrier does not provide
such signals; and
(B) the economic and satellite capacity conditions
affecting delivery of local signals by satellite
carriers to these markets.
(2) Report.--Within 1 year after the date of the initiation
of the study under paragraph (1), the Federal Communications
Commission shall submit a report to the appropriate
Congressional committees containing its findings, conclusions,
and recommendations.
(c) Definitions.--In this section--
(1) the terms ``local market'' and ``satellite carrier''
have the meaning given such terms in section 339(d) of the
Communications Act of 1934 (47 U.S.C. 339(d)); and
(2) the term ``television broadcast station'' has the
meaning given such term in section 325(b)(7) of such Act (47
U.S.C. 325(b)(7)).
SEC. 536. SAVINGS PROVISION REGARDING USE OF NEGOTIATED LICENSES.
(a) In General.--Nothing in this title, title 17, United States
Code, the Communications Act of 1934, regulations promulgated by the
Register of Copyrights under this title or title 17, United States
Code, or regulations promulgated by the Federal Communications
Commission under this title or the Communications Act of 1934 shall be
construed to prevent a multichannel video programming distributor from
retransmitting a performance or display of a work pursuant to an
authorization granted by the copyright owner or, if within the scope of
its authorization, its licensee.
(b) Limitation.--Nothing in subsection (a) shall be construed to
affect any obligation of a multichannel video programming distributor
under section 325(b) of the Communications Act of 1934 to obtain the
authority of a television broadcast station before retransmitting that
station's signal.
SEC. 537. EFFECTIVE DATE; NONINFRINGEMENT OF COPYRIGHT.
(a) Effective Date.--Unless specifically provided otherwise, this
title, and the amendments made by this title, shall take effect on
February 27, 2010, and with the exception of the reference in
subsection (b), all references to the date of enactment of this Act
shall be deemed to refer to February 27, 2010, unless otherwise
specified.
(b) Noninfringement of Copyright.--The secondary transmission of a
performance or display of a work embodied in a primary transmission is
not an infringement of copyright if it was made by a satellite carrier
on or after February 27, 2010, and prior to enactment of this Act, and
was in compliance with the law as in existence on February 27, 2010.
Subtitle D--Severability
SEC. 541. SEVERABILITY.
If any provision of this title, an amendment made by this title, or
the application of such provision or amendment to any person or
circumstance is held to be unconstitutional, the remainder of this
title, the amendments made by this title, and the application of such
provision or amendment to any person or circumstance shall not be
affected thereby.
TITLE VI--OTHER PROVISIONS
SEC. 601. INCREASE IN THE MEDICARE PHYSICIAN PAYMENT UPDATE.
Paragraph (10) of section 1848(d) of the Social Security Act, as
added by section 1011(a) of the Department of Defense Appropriations
Act, 2010 (Public Law 111-118), is amended--
(1) in subparagraph (A), by striking ``March 31, 2010'' and
inserting ``September 30, 2010''; and
(2) in subparagraph (B), by striking ``April 1, 2010'' and
inserting ``October 1, 2010''.
SEC. 602. ELECTION TO TEMPORARILY UTILIZE UNUSED AMT CREDITS DETERMINED
BY DOMESTIC INVESTMENT.
(a) In General.--Section 53 is amended by adding at the end the
following new subsection:
``(g) Election for Corporations With Unused Credits.--
``(1) In general.--If a corporation elects to have this
subsection apply, then notwithstanding any other provision of
law, the limitation imposed by subsection (c) for any such
taxable year shall be increased by the AMT credit adjustment
amount.
``(2) AMT credit adjustment amount.--For purposes of
paragraph (1), the term `AMT credit adjustment amount' means
with respect to any taxable year beginning in 2010, the lesser
of--
``(A) 50 percent of a corporation's minimum tax
credit determined under subsection (b), or
``(B) 10 percent of new domestic investments made
during such taxable year.
``(3) New domestic investments.--For purposes of this
subsection, the term `new domestic investments' means the cost
of qualified property (as defined in section 168(k)(2)(A)(i))--
``(A) the original use of which commences with the
taxpayer during the taxable year, and
``(B) which is placed in service in the United
States by the taxpayer during such taxable year.
``(4) Credit refundable.--For purposes of subsections (b)
and (c) of section 6401, the aggregate increase in the credits
allowable under part IV of subchapter A for any taxable year
resulting from the application of this subsection shall be
treated as allowed under subpart C of such part (and not to any
other subpart).
``(5) Election.--
``(A) In general.--An election under this
subsection shall be made at such time and in such
manner as prescribed by the Secretary, and once
effective, may be revoked only with the consent of the
Secretary.
``(B) Interim elections.--Until such time as the
Secretary prescribes a manner for making an election
under this subsection, a taxpayer is treated as having
made a valid election by providing written notification
to the Secretary and the Commissioner of Internal
Revenue of such election.
``(6) Treatment of certain partnership investments.--For
purposes of this subsection, any corporation's allocable share
of any new domestic investments by a partnership more than 90
percent of the capital and profits interest in which is owned
by such corporation (directly or indirectly) at all times
during the taxable year in which an election under this
subsection is in effect shall be considered new domestic
investments of such corporation for such taxable year.
``(7) No double benefit.--Notwithstanding clause (iii)(II)
of section 172(b)(1)(H), any taxpayer which has previously made
an election under such section shall be deemed to have revoked
such election by the making of its first election under this
subsection.
``(8) Regulations.--The Secretary may issue such
regulations or other guidance as may be necessary or
appropriate to carry out this subsection, including to prevent
fraud and abuse under this subsection.
``(9) Termination.--This subsection shall not apply to any
taxable year that begins after December 31, 2010.''.
(b) Quick Refund of Refundable Credit.--Section 6425 is amended by
adding at the end the following new subsection:
``(e) Allowance of AMT Credit Adjustment Amount.--The amount of an
adjustment under this section as determined under subsection (c)(2) for
any taxable year may be increased to the extent of the corporation's
AMT credit adjustment amount determined under section 53(g) for such
taxable year.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
SEC. 603. INFORMATION REPORTING FOR RENTAL PROPERTY EXPENSE PAYMENTS.
(a) In General.--Section 6041 is amended by adding at the end the
following new subsection:
``(h) Treatment of Rental Property Expense Payments.--
``(1) In general.--Solely for purposes of subsection (a)
and except as provided in paragraph (2), a person receiving
rental income from real estate shall be considered to be
engaged in a trade or business of renting property.
``(2) Exceptions.--Paragraph (1) shall not apply to--
``(A) any individual, including any individual who
is an active member of the uniformed services, if
substantially all rental income is derived from renting
the principal residence (within the meaning of section
121) of such individual on a temporary basis,
``(B) any individual who receives rental income of
not more than the minimal amount, as determined under
regulations prescribed by the Secretary, and
``(C) any other individual for whom the
requirements of this section would cause hardship, as
determined under regulations prescribed by the
Secretary.''.
(b) Effective Date.--The amendment made by this section shall apply
to payments made after December 31, 2010.
SEC. 604. EXTENSION OF LOW-INCOME HOUSING CREDIT RULES FOR BUILDINGS IN
GO ZONES.
Section 1400N(c)(5) is amended by striking ``January 1, 2011'' and
inserting ``January 1, 2013''.
SEC. 605. INCREASE IN INFORMATION RETURN PENALTIES.
(a) Failure To File Correct Information Returns.--
(1) In general.--Subsections (a)(1), (b)(1)(A), and
(b)(2)(A) of section 6721 are each amended by striking ``$50''
and inserting ``$100''.
(2) Aggregate annual limitation.--Subsections (a)(1),
(d)(1)(A), and (e)(3)(A) of section 6721 are each amended by
striking ``$250,000'' and inserting ``$1,500,000''.
(b) Reduction Where Correction Within 30 Days.--
(1) In general.--Subparagraph (A) of section 6721(b)(1) is
amended by striking ``$15'' and inserting ``$30''.
(2) Aggregate annual limitation.--Subsections (b)(1)(B) and
(d)(1)(B) of section 6721 are each amended by striking
``$75,000'' and inserting ``$250,000''.
(c) Reduction Where Correction on or Before August 1.--
(1) In general.--Subparagraph (A) of section 6721(b)(2) is
amended by striking ``$30'' and inserting ``$60''.
(2) Aggregate annual limitation.--Subsections (b)(2)(B) and
(d)(1)(C) of section 6721are each amended by striking
``$150,000'' and inserting ``$500,000''.
(d) Aggregate Annual Limitations for Persons With Gross Receipts of
Not More Than $5,000,000.--Paragraph (1) of section 6721(d) is
amended--
(1) by striking ``$100,000'' in subparagraph (A) and
inserting ``$500,000'',
(2) by striking ``$25,000'' in subparagraph (B) and
inserting ``$75,000'', and
(3) by striking ``$50,000'' in subparagraph (C) and
inserting ``$200,000''.
(e) Penalty in Case of Intentional Disregard.--Paragraph (2) of
section 6721(e) is amended by striking ``$100'' and inserting ``$250''.
(f) Adjustment for Inflation.--Section 6721 is amended by adding at
the end the following new subsection:
``(f) Adjustment for Inflation.--
``(1) In general.--For each fifth calendar year beginning
after 2012, each of the dollar amounts under subsections (a),
(b), (d) (other than paragraph (2)(A) thereof), and (e) shall
be increased by such dollar amount multiplied by the cost-of-
living adjustment determined under section 1(f)(3) determined
by substituting `calendar year 2011' for `calendar year 1992'
in subparagraph (B) thereof.
``(2) Rounding.--If any amount adjusted under paragraph
(1)--
``(A) is not less than $75,000 and is not a
multiple of $500, such amount shall be rounded to the
next lowest multiple of $500, and
``(B) is not described in subparagraph (A) and is
not a multiple of $10, such amount shall be rounded to
the next lowest multiple of $10.''.
(g) Effective Date.--The amendments made by this section shall
apply with respect to information returns required to be filed on or
after January 1, 2011.
SEC. 606. TAX-EXEMPT BOND FINANCING.
(a) In General.--Paragraphs (2)(D) and (7)(C) of section 1400N(a)
are each amended by striking ``January 1, 2011'' and inserting
``January 1, 2012''.
(b) Conforming Amendments.--Sections 702(d)(1) and 704(a) of the
Heartland Disaster Tax Relief Act of 2008 (Public Law 110-343; 122
Stat. 3913, 3919) are each amended by striking``January 1, 2011'' each
place it appears and inserting ``January 1, 2012''.
SEC. 607. APPLICATION OF LEVY TO PAYMENTS TO FEDERAL VENDORS RELATING
TO PROPERTY.
(a) In General.--Section 6331(h)(3) is amended by striking ``goods
or services'' and inserting ``property, goods, or services''.
(b) Effective Date.--The amendment made by this section shall apply
to levies approved after the date of the enactment of this Act.
SEC. 608. ELECTION FOR REFUNDABLE LOW-INCOME HOUSING CREDIT FOR 2010.
Subsection (n) of section 42, as added by section 121, is amended
to read as follows:
``(n) Election for Refundable Credits.--
``(1) In general.--The housing credit agency of each State
shall be allowed a credit in an amount equal to such State's
2010 low-income housing refundable credit election amount,
which shall be payable by the Secretary as provided in
paragraph (5).
``(2) 2010 low-income housing refundable credit election
amount.--For purposes of this subsection, the term `2010 low-
income housing refundable credit election amount' means, with
respect to any State, such amount as the State may elect which
does not exceed 85 percent of the product of--
``(A) the sum of--
``(i) 100 percent of the State housing
credit ceiling for 2010 which is attributable
to amounts described in clauses (i) and (iii)
of subsection (h)(3)(C), plus any increase in
the State housing credit ceiling for 2010 made
by reason of section 1400N(c) (including as
such section is applied by reason of sections
702(d)(2) and 704(b) of the Tax Extenders and
Alternative Minimum Tax Relief Act of 2008),
and
``(ii) 40 percent of the State housing
credit ceiling for 2010 which is attributable
to amounts described in clauses (ii) and (iv)
of such subsection, plus any increase in the
State housing credit ceiling for 2010 made by
reason of the application of such section
702(d)(2) and 704(b), multiplied by
``(B) 10.
For purposes of subparagraph (A)(ii), in the case of any area
to which section 702(d)(2) or 704(b) of the Tax Extenders and
Alternative Minimum Tax Relief Act of 2008 applies, section
1400N(c)(1)(A) shall be applied without regard to clause (i)
``(3) Coordination with non-refundable credit.--For
purposes of this section, the amounts described in clauses (i)
through (iv) of subsection (h)(3)(C) with respect to any State
for 2010 shall each be reduced by so much of such amount as is
taken into account in determining the amount of the credit
allowed with respect to such State under paragraph (1).
``(4) Special rule for basis.--Basis of a qualified low-
income building shall not be reduced by the amount of any
payment made under this subsection.
``(5) Payment of credit; use to finance low-income
buildings.--The Secretary shall pay to the housing credit
agency of each State an amount equal to the credit allowed
under paragraph (1). Rules similar to the rules of subsections
(c) and (d) of section 1602 of the American Recovery and
Reinvestment Tax Act of 2009 shall apply with respect to any
payment made under this paragraph, except that such subsection
(d) shall be applied by substituting `January 1, 2012' for
`January 1, 2011'.''.
SEC. 609. LOW-INCOME HOUSING GRANT ELECTION.
(a) Clarification of Eligibility of Low-income Housing Credits for
Low-income Housing Grant Election.--Paragraph (1) of section 1602(b) of
the American Recovery and Reinvestment Tax Act of 2009 is amended--
(1) by inserting ``, plus any increase in the State housing
credit ceiling for 2009 attributable to any State housing
credit ceiling returned in 2009 to the State by reason of
section 1400N(c) of such Code (including as such section is
applied by reason of sections 702(d)(2) and 704(b) of the Tax
Extenders and Alternative Minimum Tax Relief Act of 2008)''
after ``1986'' in subparagraph (A), and
(2) by inserting ``, plus any increase in the State housing
credit ceiling for 2009 attributable to any additional State
housing credit ceiling made by reason of the application of
such section 702(d)(2) and 704(b)'' after ``such section'' in
subparagraph (B).
(b) Application of Additional Housing Credit Amount for Purposes of
2009 Grant Election.--Subsection (b) of section 1602 of the American
Recovery and Reinvestment Tax Act of 2009, as amended by subsection
(a), is amended by adding at the end the following flush sentence:
``For purposes of paragraph (1)(B), in the case of any area to which
section 702(d)(2) or 704(b) of the Tax Extenders and Alternative
Minimum Tax Relief Act of 2008 applies, section 1400N(c)(1)(A) of such
Code shall be applied without regard to clause (i).''.
(c) Effective Date.--The amendments made by this section shall
apply as if included in the enactment of section 1602 of the American
Recovery and Reinvestment Tax Act of 2009.
SEC. 610. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS TO ROTH DESIGNATED
ACCOUNTS.
(a) In General.--Section 402A(c) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(4) Taxable rollovers to designated roth accounts.--
``(A) In general.--Notwithstanding sections 402(c),
403(b)(8), and 457(e)(16), in the case of any
distribution to which this paragraph applies--
``(i) there shall be included in gross
income any amount which would be includible
were it not part of a qualified rollover
contribution,
``(ii) section 72(t) shall not apply, and
``(iii) unless the taxpayer elects not to
have this clause apply, any amount required to
be included in gross income for any taxable
year beginning in 2010 by reason of this
paragraph shall be so included ratably over the
2-taxable-year period beginning with the first
taxable year beginning in 2011.
Any election under clause (iii) for any distributions
during a taxable year may not be changed after the due
date for such taxable year.
``(B) Distributions to which paragraph applies.--In
the case of an applicable retirement plan which
includes a qualified Roth contribution program, this
paragraph shall apply to a distribution from such plan
other than from a designated Roth account which is
contributed in a qualified rollover contribution to the
designated Roth account maintained under such plan for
the benefit of the individual to whom the distribution
is made.
``(C) Other rules.--The rules of subparagraphs (D),
(E), and (F) of section 408A(d)(3) (as in effect for
taxable years beginning after 2009) shall apply for
purposes of this paragraph.''.
SEC. 611. MODIFICATION OF STANDARDS FOR WINDOWS, DOORS, AND SKYLIGHTS
WITH RESPECT TO THE CREDIT FOR NONBUSINESS ENERGY
PROPERTY.
(a) In General.--Paragraph (4) of section 25C(c) is amended by
striking ``unless'' and all that follows and inserting ``unless--
``(A) in the case of any component placed in
service after the date which is 90 days after the date
of the enactment of the American Workers, State, and
Business Relief Act of 2010, such component meets the
criteria for such components established by the 2010
Energy Star Program Requirements for Residential
Windows, Doors, and Skylights, Version 5.0 (or any
subsequent version of such requirements which is in
effect after January 4, 2010),
``(B) in the case of any component placed in
service after the date of the enactment of the American
Workers, State, and Business Relief Act of 2010 and on
or before the date which is 90 days after such date,
such component meets the criteria described in
subparagraph (A) or is equal to or below a U factor of
0.30 and SHGC of 0.30, and
``(C) in the case of any component which is a
garage door, such component is equal to or below a U
factor of 0.30 and SHGC of 0.30.''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after the date of the enactment of this
Act.
SEC. 612. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS ALLOWED TO TREAT
ELECTIVE DEFERRALS AS ROTH CONTRIBUTIONS.
(a) In General.--Section 402A(e)(1) (defining applicable retirement
plan) is amended by striking ``and'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and inserting ``,
and'', and by adding at the end the following:
``(C) an eligible deferred compensation plan (as
defined in section 457(b)) of an eligible employer
described in section 457(e)(1)(A).''.
(b) Elective Deferrals.--Section 402A(e)(2) (defining elective
deferral) is amended to read as follows:
``(2) Elective deferral.--The term `elective deferral'
means--
``(A) any elective deferral described in
subparagraph (A) or (C) of section 402(g)(3), and
``(B) any elective deferral of compensation by an
individual under an eligible deferred compensation plan
(as defined in section 457(b)) of an eligible employer
described in section 457(e)(1)(A).''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2010.
SEC. 613. EXTENSION OF SPECIAL ALLOWANCE FOR CERTAIN PROPERTY.
(a) In General.--Section 15345(d)(1)(D) of the Food Conservation
and Energy Act of 2008 (Public Law 110-246) is amended by striking
``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Conforming Amendment.--Section 15345(d)(1)(F) of such Act is
amended by striking ``January 1, 2008'' and inserting ``January 1,
2010''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in section 15345 of the Food Conservation and
Energy Act of 2008.
SEC. 614. APPLICATION OF BAD CHECKS PENALTY TO ELECTRONIC PAYMENTS.
(a) In General.--Section 6657 is amended--
(1) by striking ``If any check or money order in payment of
any amount'' and inserting ``If any instrument in payment, by
any commercially acceptable means, of any amount'', and
(2) by striking ``such check'' each place it appears and
inserting ``such instrument''.
(b) Effective Dates.--The amendments made by this section shall
apply to instruments tendered after the date of the enactment of this
Act.
SEC. 615. GRANTS FOR ENERGY EFFICIENT APPLIANCES IN LIEU OF TAX CREDIT.
In the case of any taxable year which includes the last day of
calendar year 2009 or calendar year 2010, a taxpayer who elects to
waive the credit which would otherwise be determined with respect to
the taxpayer under section 45M of the Internal Revenue Code of 1986 for
such taxable year shall be treated as making a payment against the tax
imposed under subtitle A of such Code for such taxable year in an
amount equal to 85 percent of the amount of the credit which would
otherwise be so determined. Such payment shall be treated as made on
the later of the due date of the return of such tax or the date on
which such return is filed. Elections under this section may be made
separately for 2009 and 2010, but once made shall be irrevocable.
SEC. 616. BUDGETARY EFFECTS OF LEGISLATION PASSED BY THE SENATE.
(a) Establishment of Web Page.--
(1) In general.--Not later than 90 days after the enactment
of this Act, the Secretary of the Senate shall establish on the
official website of the United States Senate (www.senate.gov) a
page entitled ``Information on the Budgetary Effects of
Legislation Considered by the Senate'' which shall include--
(A) links to appropriate pages on the website of
the Congressional Budget Office (www.cbo.gov) that
contain cost estimates of legislation passed by the
Senate; and
(B) as available, links to pages with any other
information produced by the Congressional Budget Office
that summarize or further explain the budgetary effects
of legislation considered by the Senate.
(2) Updates.--The Secretary of the Senate shall update this
page every 3 months.
(b) CBO Requirements.--Nothing in this section shall be construed
as imposing any new requirements on the Congressional Budget Office.
SEC. 617. SENATE SPENDING DISCLOSURE.
(a) In General.--The Secretary of the Senate shall post prominently
on the front page of the public website of the Senate (http://
www.senate.gov/) the following information:
(1) The total amount of discretionary and direct spending
passed by the Senate that has not been paid for, including
emergency designated spending or spending otherwise exempted
from PAYGO requirements.
(2) The total amount of net spending authorized in
legislation passed by the Senate, as scored by CBO.
(3) The number of new government programs created in
legislation passed by the Senate.
(4) The totals for paragraphs (1) through (3) as passed by
both Houses of Congress and signed into law by the President.
(b) Display.--The information tallies required by subsection (a)
shall be itemized by bill and date, updated weekly, and archived by
calendar year.
(c) Effective Date.--The PAYGO tally required by subsection (a)(1)
shall begin with the date of enactment of the Statutory Pay-As-You-Go
Act of 2010 and the authorization tally required by subsection (a)(2)
shall apply to all legislation passed beginning January 1, 2010.
SEC. 618. ALLOCATION OF GEOTHERMAL RECEIPTS.
Notwithstanding any other provision of law, for fiscal year 2010
only, all funds received from sales, bonuses, royalties, and rentals
under the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) shall
be deposited in the Treasury, of which--
(1) 50 percent shall be used by the Secretary of the
Treasury to make payments to States within the boundaries of
which the leased land and geothermal resources are located;
(2) 25 percent shall be used by the Secretary of the
Treasury to make payments to the counties within the boundaries
of which the leased land or geothermal resources are located;
and
(3) 25 percent shall be deposited in miscellaneous
receipts.
SEC. 619. QUALIFYING TIMBER CONTRACT OPTIONS.
(a) Definitions.--In this section:
(1) Qualifying contract.--The term ``qualifying contract''
means a contract that has not been terminated by the Bureau of
Land Management for the sale of timber on lands administered by
the Bureau of Land Management that meets all of the following
criteria:
(A) The contract was awarded during the period
beginning on January 1, 2005, and ending on December
31, 2008.
(B) There is unharvested volume remaining for the
contract.
(C) The contract is not a salvage sale.
(D) The Secretary determined there is not an urgent
need to harvest under the contract due to deteriorating
timber conditions that developed after the award of the
contract.
(2) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of Bureau of Land
Management.
(3) Timber purchaser.--The term ``timber purchaser'' means
the party to the qualifying contract for the sale of timber
from lands administered by the Bureau of Land Management.
(b) Market-related Contract Extension Option.--Upon a timber
purchaser's written request, the Secretary may make a one-time
modification to the qualifying contract to add 3 years to the contract
expiration date if the written request--
(1) is received by the Secretary not later than 90 days
after the date of enactment of this Act; and
(2) contains a provision releasing the United States from
all liability, including further consideration or compensation,
resulting from the modification under this subsection of the
term of a qualifying contract.
(c) Reporting.--Not later than 6 months after the date of the
enactment of this Act, the Secretary shall submit to Congress a report
detailing a plan and timeline to promulgate new regulations authorizing
the Bureau of Land Management to extend timber contracts due to changes
in market conditions.
(d) Regulations.--Not later than 2 years after the date of the
enactment of this Act, the Secretary shall promulgate new regulations
authorizing the Bureau of Land Management to extend timber contracts
due to changes in market conditions.
(e) No Surrender of Claims.--This section shall not have the effect
of surrendering any claim by the United States against any timber
purchaser that arose under a timber sale contract, including a
qualifying contract, before the date on which the Secretary adjusts the
contract term under subsection (b).
SEC. 620. ARRA PLANNING AND REPORTING.
Section 1512 of the American Recovery and Reinvestment Act of 2009
(Public Law 111-5; 123 Stat. 287) is amended--
(1) in subsection (d)--
(A) in the subsection heading, by inserting ``Plans
and'' after ``Agency'';
(B) by striking ``Not later than'' and inserting
the following:
``(1) Definition.--In this subsection, the term `covered
program' means a program for which funds are appropriated under
this division--
``(A) in an amount that is--
``(i) more than $2,000,000,000; and
``(ii) more than 150 percent of the funds
appropriated for the program for fiscal year
2008; or
``(B) that did not exist before the date of
enactment of this Act.
``(2) Plans.--Not later than July 1, 2010, the head of each
agency that distributes recovery funds shall submit to Congress
and make available on the website of the agency a plan for each
covered program, which shall, at a minimum, contain--
``(A) a description of the goals for the covered
program using recovery funds;
``(B) a discussion of how the goals described in
subparagraph (A) relate to the goals for ongoing
activities of the covered program, if applicable;
``(C) a description of the activities that the
agency will undertake to achieve the goals described in
subparagraph (A);
``(D) a description of the total recovery funding
for the covered program and the recovery funding for
each activity under the covered program, including
identifying whether the activity will be carried out
using grants, contracts, or other types of funding
mechanisms;
``(E) a schedule of milestones for major phases of
the activities under the covered program, with planned
delivery dates;
``(F) performance measures the agency will use to
track the progress of each of the activities under the
covered program in meeting the goals described in
subparagraph (A), including performance targets, the
frequency of measurement, and a description of the
methodology for each measure;
``(G) a description of the process of the agency
for the periodic review of the progress of the covered
program towards meeting the goals described in
subparagraph (A); and
``(H) a description of how the agency will hold
program managers accountable for achieving the goals
described in subparagraph (A).
``(3) Reports.--
``(A) In general.--Not later than''; and
(C) by adding at the end the following:
``(B) Reports on plans.--Not later than 30 days
after the end of the calendar quarter ending September
30, 2010, and every calendar quarter thereafter during
which the agency obligates or expends recovery funds,
the head of each agency that developed a plan for a
covered program under paragraph (2) shall submit to
Congress and make available on a website of the agency
a report for each covered program that--
``(i) discusses the progress of the agency
in implementing the plan;
``(ii) describes the progress towards
achieving the goals described in paragraph
(2)(A) for the covered program;
``(iii) discusses the status of each
activity carried out under the covered program,
including whether the activity is completed;
``(iv) details the unobligated and
unexpired balances and total obligations and
outlays under the covered program;
``(v) discusses--
``(I) whether the covered program
has met the milestones for the covered
program described in paragraph (2)(E);
``(II) if the covered program has
failed to meet the milestones, the
reasons why; and
``(III) any changes in the
milestones for the covered program,
including the reasons for the change;
``(vi) discusses the performance of the
covered program, including--
``(I) whether the covered program
has met the performance measures for
the covered program described in
paragraph (2)(F);
``(II) if the covered program has
failed to meet the performance
measures, the reasons why; and
``(III) any trends in information
relating to the performance of the
covered program; and
``(vii) evaluates the ability of the
covered program to meet the goals of the
covered program given the performance of the
covered program.'';
(2) in subsection (f)--
(A) by striking ``Within 180 days'' and inserting
the following:
``(1) In general.--Within 180 days''; and
(B) by adding at the end the following:
``(2) Penalties.--
``(A) In general.--Subject to subparagraphs (B),
(C), and (D), the Attorney General may bring a civil
action in an appropriate United States district court
against a recipient of recovery funds from an agency
that does not provide the information required under
subsection (c) or knowingly provides information under
subsection (c) that contains a material omission or
misstatement. In a civil action under this paragraph,
the court may impose a civil penalty on a recipient of
recovery funds in an amount not more than $250,000. Any
amounts received from a civil penalty under this
paragraph shall be deposited in the general fund of the
Treasury.
``(B) Notification.--
``(i) In general.--The head of an agency
shall provide a written notification to a
recipient of recovery funds from the agency
that fails to provide the information required
under subsection (c). A notification under this
subparagraph shall provide the recipient with
information on how to comply with the necessary
reporting requirements and notice of the
penalties for failing to do so.
``(ii) Limitation.--A court may not impose
a civil penalty under subparagraph (A) relating
to the failure to provide information required
under subsection (c) if, not later than 31 days
after the date of the notification under clause
(i), the recipient of the recovery funds
provides the information.
``(C) Considerations.--In determining the amount of
a penalty under this paragraph for a recipient of
recovery funds, a court shall consider--
``(i) the number of times the recipient has
failed to provide the information required
under subsection (c);
``(ii) the amount of recovery funds
provided to the recipient;
``(iii) whether the recipient is a
government, nonprofit entity, or educational
institution; and
``(iv) whether the recipient is a small
business concern (as defined under section 3 of
the Small Business Act (15 U.S.C. 632)), with
particular consideration given to businesses
with not more than 50 employees.
``(D) Applicability.--This paragraph shall apply to
any report required to be submitted on or after the
date of enactment of this paragraph.
``(E) Nonexclusivity.--The imposition of a civil
penalty under this subsection shall not preclude any
other criminal, civil, or administrative remedy
available to the United States or any other person
under Federal or State law.
``(3) Technical assistance.--Each agency distributing
recovery funds shall provide technical assistance, as
necessary, to assist recipients of recovery funds in complying
with the requirements to provide information under subsection
(c), which shall include providing recipients with a reminder
regarding each reporting requirement.
``(4) Public listing.--
``(A) In general.--Not later than 45 days after the
end of each calendar quarter, and subject to the
notification requirements under paragraph (2)(B), the
Board shall make available on the website established
under section 1526 a list of all recipients of recovery
funds that did not provide the information required
under subsection (c) for the calendar quarter.
``(B) Contents.--A list made available under
subparagraph (A) shall, for each recipient of recovery
funds on the list, include the name and address of the
recipient, the identification number for the award, the
amount of recovery funds awarded to the recipient, a
description of the activity for which the recovery
funds were provided, and, to the extent known by the
Board, the reason for noncompliance.
``(5) Regulations and reporting.--
``(A) Regulations.--Not later than 90 days after
the date of enactment of this paragraph, the Attorney
General, in consultation with the Director of the
Office of Management and Budget and the Chairperson,
shall promulgate regulations regarding implementation
of this section.
``(B) Reporting.--
``(i) In general.--Not later than July 1,
2010, and every 3 months thereafter, the
Director of the Office of Management and
Budget, in consultation with the Chairperson,
shall submit to Congress a report on the extent
of noncompliance by recipients of recovery
funds with the reporting requirements under
this section.
``(ii) Contents.--Each report submitted
under clause (i) shall include--
``(I) information, for the quarter
and in total, regarding the number and
amount of civil penalties imposed and
collected under this subsection, sorted
by agency and program;
``(II) information on the steps
taken by the Federal Government to
reduce the level of noncompliance; and
``(III) any other information
determined appropriate by the
Director.''; and
(3) by adding at the end the following:
``(i) Termination.--The reporting requirements under this section
shall terminate on September 30, 2013.''.
SEC. 621. GAO STUDY.
Not later than 180 days after the date of enactment of this Act,
the Comptroller General shall report to Congress detailing--
(1) the pattern of job loss in the New England and Midwest
States over the past 20 years;
(2) the role of the off-shoring of manufacturing jobs in
overall job loss in the regions; and
(3) recommendations to attract industries and bring jobs to
the region.
SEC. 622. EXTENSION AND MODIFICATION OF SECTION 45 CREDIT FOR REFINED
COAL FROM STEEL INDUSTRY FUEL.
(a) Credit Period.--
(1) In general.--Subclause (II) of section 45(e)(8)(D)(ii)
is amended to read as follows:
``(II) Credit period.--In lieu of
the 10-year period referred to in
clauses (i) and (ii)(II) of
subparagraph (A), the credit period
shall be the period beginning on the
date that the facility first produces
steel industry fuel that is sold to an
unrelated person after September 30,
2008, and ending 2 years after such
date.''.
(2) Conforming amendment.--Section 45(e)(8)(D) is amended
by striking clause (iii) and by redesignating clause (iv) as
clause (iii).
(b) Extension of Placed-in-service Date.--Subparagraph (A) of
section 45(d)(8) is amended--
(1) by striking ``(or any modification to a facility)'',
and
(2) by striking ``2010'' and inserting ``2011''.
(c) Clarifications.--
(1) Steel industry fuel.--Subclause (I) of section
45(c)(7)(C)(i) is amended by inserting ``, a blend of coal and
petroleum coke, or other coke feedstock'' after ``on coal''.
(2) Ownership interest.--Section 45(d)(8) is amended by
adding at the end the following new flush sentence:
``With respect to a facility producing steel industry fuel, no
person (including a ground lessor, customer, supplier, or
technology licensor) shall be treated as having an ownership
interest in the facility or as otherwise entitled to the credit
allowable under subsection (a) with respect to such facility if
such person's rent, license fee, or other entitlement to net
payments from the owner of such facility is measured by a fixed
dollar amount or a fixed amount per ton, or otherwise
determined without regard to the profit or loss of such
facility.''.
(3) Production and sale.--Subparagraph (D) of section
45(e)(8), as amended by subsection (a)(2), is amended by
redesignating clause (iii) as clause (iv) and by inserting
after clause (ii) the following new clause:
``(iii) Production and sale.--The owner of
a facility producing steel industry fuel shall
be treated as producing and selling steel
industry fuel where that owner manufactures
such steel industry fuel from coal, a blend of
coal and petroleum coke, or other coke
feedstock to which it has title. The sale of
such steel industry fuel by the owner of the
facility to a person who is not the owner of
the facility shall not fail to qualify as a
sale to an unrelated person solely because such
purchaser may also be a ground lessor,
supplier, or customer.''.
(d) Specified Credit for Purposes of Alternative Minimum Tax
Exclusion.--Subclause (II) of section 38(c)(4)(B)(iii) is amended by
inserting ``(in the case of a refined coal production facility
producing steel industry fuel, during the credit period set forth in
section 45(e)(8)(D)(ii)(II))'' after ``service''.
(e) Effective Dates.--
(1) In general.--The amendments made by subsections (a),
(b), and (d) shall take effect on the date of the enactment of
this Act.
(2) Clarifications.--The amendments made by subsection (c)
shall take effect as if included in the amendments made by the
Energy Improvement and Extension Act of 2008.
SEC. 623. MODIFICATIONS TO MINE RESCUE TEAM TRAINING CREDIT AND
ELECTION TO EXPENSE ADVANCED MINE SAFETY EQUIPMENT.
(a) Mine Rescue Team Training Credit Allowable Against AMT.--
Subparagraph (B) of section 38(c)(4) is amended--
(1) by redesignating clauses (vi), (vii), and (viii) as
clauses (vii), (viii), and (ix), respectively, and
(2) by inserting after clause (v) the following new clause:
``(vi) the credit determined under section
45N,''.
(b) Election to Expense Advanced Mine Safety Equipment Allowable
Against AMT.--Subparagraph (C) of section 56(g)(4) is amended by adding
at the end the following new clause:
``(vii) Special rule for election to
expense advanced mine safety equipment.--Clause
(i) shall not apply to amounts deductible under
section 179E.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
SEC. 624. APPLICATION OF CONTINUOUS LEVY TO EMPLOYMENT TAX LIABILITY OF
CERTAIN FEDERAL CONTRACTORS.
(a) In General.--Section 6330(h) is amended by inserting ``or if
the person subject to the levy (or any predecessor thereof) is a
Federal contractor that was identified as owing such employment taxes
through the Federal Payment Levy Program'' before the period at the end
of the first sentence.
(b) Effective Date.--The amendment made by this section shall apply
to levies issued after December 31, 2010.
TITLE VII--DETERMINATION OF BUDGETARY EFFECTS
SEC. 701. DETERMINATION OF BUDGETARY EFFECTS.
(a) In General.--The budgetary effects of this Act, for the purpose
of complying with the Statutory Pay-As-You-Go-Act of 2010, shall be
determined by reference to the latest statement titled ``Budgetary
Effects of PAYGO Legislation'' for this Act, submitted for printing in
the Congressional Record by the Chairman of the Senate Budget
Committee, provided that such statement has been submitted prior to the
vote on passage.
(b) Emergency Designation.--Sections 201, 211, and 232 of this Act
are designated as an emergency requirement pursuant to section 4(g) of
the Statutory Pay-As-You-Go Act of 2010 (Public Law 111-139; 2 U.S.C.
933(g)) and section 403(a) of S. Con. Res. 13 (111th Congress), the
concurrent resolution on the budget for fiscal year 2010. In the House
of Representatives, sections 201, 211, and 232 of this Act are
designated as an emergency for purposes of pay-as-you-go principles.
Attest:
Secretary.
111th CONGRESS
2d Session
H.R. 4213
_______________________________________________________________________
AMENDMENT