[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