[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5109 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5109

   To establish a tax, regulatory, and legal structure in the United 
States that encourages small businesses to expand and innovate, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 22, 2010

Mr. Kirk (for himself, Mr. Sessions, Mr. Lee of New York, Mr. Gerlach, 
  Mr. Dent, Mr. Shimkus, Mr. Sensenbrenner, and Mr. Barton of Texas) 
 introduced the following bill; which was referred to the Committee on 
 Ways and Means, and in addition to the Committees on Small Business, 
 Financial Services, Rules, Education and Labor, Energy and Commerce, 
the Judiciary, Oversight and Government Reform, and Appropriations, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
   To establish a tax, regulatory, and legal structure in the United 
States that encourages small businesses to expand and innovate, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Bill of Rights''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
                     TITLE I--LOWER TAX ENVIRONMENT

               Subtitle A--Alternative Minimum Tax Relief

Sec. 101. Extension of alternative minimum tax relief for nonrefundable 
                            personal credits.
Sec. 102. Extension of increased alternative minimum tax exemption 
                            amount.
                       Subtitle B--Capital Gains

Sec. 111. Extension of reduction in taxes on dividends and capital 
                            gains.
Sec. 112. Temporary reduction of capital gains tax on qualified small 
                            business stock.
                 Subtitle C--Tax Benefits for Start-Ups

Sec. 121. Increase in amount allowed as deduction for start-up 
                            expenditures.
                       Subtitle D--Miscellaneous

Sec. 131. GAO to certify no burden on small business concerns.
Sec. 132. Exemption from taxes imposed after the date of enactment of 
                            this Act.
                  TITLE II--LIMITATION ON REGULATIONS

Sec. 201. Limitation on regulations.
           TITLE III--BUSINESS GROWTH FOR THE NEXT GENERATION

Sec. 301. Postponement of termination of estate tax and generation-
                            skipping transfer taxes.
                 TITLE IV--PROTECTING THE SECRET BALLOT

Sec. 401. Findings.
Sec. 402. National Labor Relations Act.
Sec. 403. Regulations.
        TITLE V--HEALTHCARE: EXPANDING CHOICE AND LOWERING COSTS

Sec. 501. Findings and purpose.
Sec. 502. Encouraging speedy resolution of claims.
Sec. 503. Compensating patient injury.
Sec. 504. Maximizing patient recovery.
Sec. 505. Additional health benefits.
Sec. 506. Punitive damages.
Sec. 507. Authorization of payment of future damages to claimants in 
                            health care lawsuits.
Sec. 508. Definitions.
Sec. 509. Effect on other laws.
Sec. 510. State flexibility and protection of States' rights.
Sec. 511. Applicability; effective date.
Sec. 512. Sense of congress.
Sec. 513. Cooperative governing of individual health insurance 
                            coverage.
Sec. 514. SECA tax deduction for health insurance costs.
                     TITLE VI--WORKFORCE INTEGRITY

Sec. 601. E-verify program made permanent.
Sec. 602. Verification under E-verify program made possible over 
                            telephone.
Sec. 603. Grace period to correct paperwork.
              TITLE VII--INTELLECTUAL PROPERTY PROTECTION

Sec. 701. Limits on patent legislation.
Sec. 702. Expedited patent filing procedures for small business 
                            concerns.
              TITLE VIII--INCENTIVES FOR ENERGY EFFICIENCY

                          Subtitle A--Vehicles

Sec. 801. Consumer incentives to purchase advanced technology vehicles.
                         Subtitle B--Extensions

Sec. 811. Make permanent the tax credit for residential energy-
                            efficient property.
Sec. 812. Make permanent the energy efficiency credit for existing 
                            homes.
Sec. 813. Make permanent the energy efficiency commercial buildings 
                            deduction.
                   TITLE IX--GUIDANCE ABOUT NEW RULES

Sec. 901. Guidance and advice about new rules.
                   TITLE X--SMALL BUSINESS PROVISIONS

             Subtitle A--Small Business General Provisions

Sec. 1001. Administration prohibited from capping executive 
                            compensation.
Sec. 1002. Reduction of regulatory burden.
Sec. 1003. Litigation burden on small business concerns to be limited 
                            to current levels.
Sec. 1004. Expansion of volunteer representation and benchmark reports.
Sec. 1005. Mentoring and networking.
Sec. 1006. Name of program changed to SCORE.
Sec. 1007. Authorization of appropriations.
                    Subtitle B--Small Business Goals

Sec. 1011. Small business goals.
Sec. 1012. Agency goal negotiation.
Sec. 1013. Procedures and methods for goal achievement.
Sec. 1014. Reporting requirements.
                     Subtitle C--Contract Bundling

Sec. 1021. Definitions of bundling of contract requirements.
Sec. 1022. Justification.
Sec. 1023. Appeals.
Sec. 1024. Third-party review.
               Subtitle D--Small Business Subcontracting

Sec. 1031. Good faith compliance with subcontracting plans.
Sec. 1032. Limitations on subcontracting.
Sec. 1033. Criminal violations.
                           TITLE XI--OFFSETS

Sec. 1101. Transfer of unobligated stimulus funds.
                       TITLE XII--DEBT REDUCTION

Sec. 1201. Repeal of the Troubled Asset Relief Program.
                        TITLE XIII--DEFINITIONS

Sec. 1301. Definitions.

SEC. 2. PURPOSE.

    The purpose of this Act is to do the following:
            (1) Protect secret ballots in union elections.
            (2) Lower health costs with lawsuit reforms and interstate 
        competition.
            (3) Lower energy costs with credits for efficient equipment 
        and hybrids.
            (4) Permit children to continue business with low/no death 
        tax.
            (5) Exempt small businesses from capital gains tax for 10 
        years.
            (6) Make immigration laws easy to comply with.
            (7) Create a Patent Office fast lane for small business 
        innovation.          
            (8) SBA to limit Federal paperwork for small businesses to 
        200 hours annually.          
            (9) Prevent AMT from taxing the middle class.
            (10) Reduce deficit to encourage jobs and improve credit.

                     TITLE I--LOWER TAX ENVIRONMENT

               Subtitle A--Alternative Minimum Tax Relief

SEC. 101. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE 
              PERSONAL CREDITS.

    (a) In General.--Paragraph (2) of section 26(a) of the Internal 
Revenue Code of 1986 (relating to special rule for taxable years 2000 
through 2009) is amended--
            (1) by striking ``or 2009'' and inserting ``2009, 2010, or 
        2011'', and
            (2) by striking ``2009'' in the heading thereof and 
        inserting ``2011''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 102. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION 
              AMOUNT.

    (a) In General.--Subparagraphs (A) and (B) of section 55(d)(1) of 
the Internal Revenue Code of 1986 (relating to exemption amount) are 
both amended by striking ``2009'' and inserting ``2009, 2010, and 
2011''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

                       Subtitle B--Capital Gains

SEC. 111. EXTENSION OF REDUCTION IN TAXES ON DIVIDENDS AND CAPITAL 
              GAINS.

    Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 
2003 is amended by striking ``December 31, 2010'' and inserting 
``December 31, 2011''.

SEC. 112. TEMPORARY REDUCTION OF CAPITAL GAINS TAX ON QUALIFIED SMALL 
              BUSINESS STOCK.

    (a) Temporary Reduced Rate for Qualified Small Business Stock.--
Subparagraph (A)(ii) of section 1(h)(4) of the Internal Revenue Code of 
1986 is amended to read as follows:
                            ``(ii) in the case of any taxable year 
                        beginning after December 31, 2020, section 1202 
                        gain, over''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2010.

                 Subtitle C--Tax Benefits for Start-Ups

SEC. 121. INCREASE IN AMOUNT ALLOWED AS DEDUCTION FOR START-UP 
              EXPENDITURES.

    (a) In General.--Subsection (b) of section 195 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following:
            ``(3) Special rule for taxable years beginning in 2009, 
        2010, or 2011.--In the case of a taxable year beginning in 
        2009, 2010, or 2011, paragraph (1)(A)(ii) shall be applied--
                    ``(A) by substituting `$20,000' for `$5,000'; and
                    ``(B) by substituting `$75,000' for `$50,000'.''
    (b) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after the 
date of the enactment of this Act.

                       Subtitle D--Miscellaneous

SEC. 131. GAO TO CERTIFY NO BURDEN ON SMALL BUSINESS CONCERNS.

    Clause 3 of Rule XIII of the Rules of the House of Representatives 
is amended by adding at the end the following new paragraph:
    ``(i)(1) Each report of a committee on a public bill or a public 
joint resolution shall contain a statement by the Comptroller General 
that certifies that such bill or resolution will not cause an increase 
in the number of unemployed individuals in the United States.
    ``(2) A bill or joint resolution that does not contain a statement 
required under subparagraph (1) may not be considered as passed or 
agreed to unless so determined by a vote of not less than three-fifths 
of the Members voting, a quorum being present.''.

SEC. 132. EXEMPTION FROM TAXES IMPOSED AFTER THE DATE OF ENACTMENT OF 
              THIS ACT.

    A small business concern is exempt from any amendment to the 
Internal Revenue Code of 1986 enacted after the date of enactment of 
this Act that would result in any increase in the amount of Federal 
taxes due from that small business concern.

                  TITLE II--LIMITATION ON REGULATIONS

SEC. 201. LIMITATION ON REGULATIONS.

    (a) In General.--The Administrator, acting through the Chief 
Counsel of the Office of Advocacy of the Small Business Administration, 
is authorized to provide such support as may be necessary with regard 
to any Federal regulation to ensure that a small business concern is 
not required to expend more than a total of 200 man-hours annually on 
applications, filings, petitions, or other paperwork submitted to 
Federal departments or agencies.
    (b) Commonly Required Information Form.--Support provided under 
subsection (a) shall include the establishment of a form on the public 
Internet Web site of the Administrator, by means of which a small 
business concern may provide to the Administrator information that the 
Administrator determines to be frequently required as part of any 
applications, filings, petitions, or other paperwork described in 
subsection (a). The Administrator shall use information so provided to 
assist in the expedited completion of such applications, filings, 
petitions, or other paperwork.

           TITLE III--BUSINESS GROWTH FOR THE NEXT GENERATION

SEC. 301. POSTPONEMENT OF TERMINATION OF ESTATE TAX AND GENERATION-
              SKIPPING TRANSFER TAXES.

    (a) Application of EGTRRA Sunset.--Section 901(a)(2) of title IX of 
the Economic Growth and Tax Relief Reconciliation Act of 2001 is 
amended by striking ``December 31, 2010'' and inserting ``December 31, 
2015''.
    (b) Effective Date.--The amendments made by this section shall 
apply to the estates of decedents dying, gifts made, or generation-
skipping transfers, after December 31, 2010.

                 TITLE IV--PROTECTING THE SECRET BALLOT

SEC. 401. FINDINGS.

    Congress finds that--
            (1) the right of employees under the National Labor 
        Relations Act to choose whether to be represented by a labor 
        organization by way of secret ballot election conducted by the 
        National Labor Relations Board is among the most important 
        protections afforded under Federal labor law;
            (2) the right of employees to choose by secret ballot is 
        the only method that ensures a choice free of coercion, 
        intimidation, irregularity, or illegality; and
            (3) the recognition of a labor organization by using a 
        private agreement, rather than a secret ballot election 
        overseen by the National Labor Relations Board, threatens the 
        freedom of employees to choose whether to be represented by a 
        labor organization and severely limits the ability of the 
        National Labor Relations Board to ensure the protection of 
        workers.

SEC. 402. NATIONAL LABOR RELATIONS ACT.

    (a) Recognition of Representative.--
            (1) In general.--Section 8(a)(2) of the National Labor 
        Relations Act (29 U.S.C. 158(a)(2)) is amended by inserting 
        before the colon the following: ``or to recognize or bargain 
        collectively with a labor organization that has not been 
        selected by a majority of such employees in a secret ballot 
        election conducted by the National Labor Relations Board in 
        accordance with section 9''.
            (2) Application.--The amendment made by subsection (a) 
        shall not apply to collective bargaining relationships in which 
        a labor organization with majority support was lawfully 
        recognized before the date of the enactment of this Act.
    (b) Election Required.--
            (1) In general.--Section 8(b) of the National Labor 
        Relations Act (29 U.S.C. 158(b)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (6);
                    (B) by striking the period at the end of paragraph 
                (7) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(8) to cause or attempt to cause an employer to recognize 
        or bargain collectively with a representative of a labor 
        organization that has not been selected by a majority of such 
        employees in a secret ballot election conducted by the National 
        Labor Relations Board in accordance with section 9.''.
            (2) Application.--The amendment made by paragraph (1) shall 
        not apply to collective bargaining relationships that were 
        recognized before the date of the enactment of this Act.
    (c) Secret Ballot Election.--Section 9(a) of the National Labor 
Relations Act (29 U.S.C. 159(a)), is amended--
            (1) by inserting ``(1)'' after ``(a)'';
            (2) by inserting after ``designated or selected'' the 
        following: ``by a secret ballot election conducted by the 
        National Labor Relations Board in accordance with this 
        section''; and
            (3) by adding at the end the following:
            ``(2) The secret ballot election requirement of paragraph 
        (1) shall not apply to collective bargaining relationships that 
        were recognized before the date of the enactment of the Small 
        Business Bill of Rights.''.

SEC. 403. REGULATIONS.

    Not later than 6 months after the date of the enactment of this 
Act, the National Labor Relations Board shall review and revise all 
regulations promulgated before such date to implement the amendments 
made in this Act to the National Labor Relations Act.

        TITLE V--HEALTHCARE: EXPANDING CHOICE AND LOWERING COSTS

SEC. 501. FINDINGS AND PURPOSE.

    (a) Findings.--
            (1) Effect on health care access and costs.--Congress finds 
        that our current civil justice system is adversely affecting 
        patient access to health care services, better patient care, 
        and cost-efficient health care, in that the health care 
        liability system is a costly and ineffective mechanism for 
        resolving claims of health care liability and compensating 
        injured patients, and is a deterrent to the sharing of 
        information among health care professionals which impedes 
        efforts to improve patient safety and quality of care.
            (2) Effect on interstate commerce.--Congress finds that the 
        health care and insurance industries are industries affecting 
        interstate commerce and the health care liability litigation 
        systems existing throughout the United States are activities 
        that affect interstate commerce by contributing to the high 
        costs of health care and premiums for health care liability 
        insurance purchased by health care system providers.
            (3) Effect on federal spending.--Congress finds that the 
        health care liability litigation systems existing throughout 
        the United States have a significant effect on the amount, 
        distribution, and use of Federal funds because of--
                    (A) the large number of individuals who receive 
                health care benefits under programs operated or 
                financed by the Federal Government;
                    (B) the large number of individuals who benefit 
                because of the exclusion from Federal taxes of the 
                amounts spent to provide them with health insurance 
                benefits; and
                    (C) the large number of health care providers who 
                provide items or services for which the Federal 
                Government makes payments.
    (b) Purpose.--It is the purpose of this title to implement 
reasonable, comprehensive, and effective health care liability reforms 
designed to--
            (1) improve the availability of health care services in 
        cases in which health care liability actions have been shown to 
        be a factor in the decreased availability of services;
            (2) reduce the incidence of ``defensive medicine'' and 
        lower the cost of health care liability insurance, all of which 
        contribute to the escalation of health care costs;
            (3) ensure that persons with meritorious health care injury 
        claims receive fair and adequate compensation, including 
        reasonable noneconomic damages;
            (4) improve the fairness and cost-effectiveness of our 
        current health care liability system to resolve disputes over, 
        and provide compensation for, health care liability by reducing 
        uncertainty in the amount of compensation provided to injured 
        individuals; and
            (5) provide an increased sharing of information in the 
        health care system which will reduce unintended injury and 
        improve patient care.

SEC. 502. ENCOURAGING SPEEDY RESOLUTION OF CLAIMS.

    The time for the commencement of a health care lawsuit shall be 3 
years after the date of manifestation of injury or 1 year after the 
claimant discovers, or through the use of reasonable diligence should 
have discovered, the injury, whichever occurs first. In no event shall 
the time for commencement of a health care lawsuit exceed 3 years after 
the date of manifestation of injury unless tolled for any of the 
following--
            (1) upon proof of fraud;
            (2) intentional concealment; or
            (3) the presence of a foreign body, which has no 
        therapeutic or diagnostic purpose or effect, in the person of 
        the injured person.
Actions by a minor shall be commenced within 3 years from the date of 
the alleged manifestation of injury except that actions by a minor 
under the full age of 6 years shall be commenced within 3 years of 
manifestation of injury or prior to the minor's 8th birthday, whichever 
provides a longer period. Such time limitation shall be tolled for 
minors for any period during which a parent or guardian and a health 
care provider or health care organization have committed fraud or 
collusion in the failure to bring an action on behalf of the injured 
minor.

SEC. 503. COMPENSATING PATIENT INJURY.

    (a) Unlimited Amount of Damages for Actual Economic Losses in 
Health Care Lawsuits.--In any health care lawsuit, nothing in this 
title shall limit a claimant's recovery of the full amount of the 
available economic damages, notwithstanding the limitation in 
subsection (b).
    (b) Additional Noneconomic Damages.--In any health care lawsuit, 
the amount of noneconomic damages, if available, may be as much as 
$250,000, regardless of the number of parties against whom the action 
is brought or the number of separate claims or actions brought with 
respect to the same injury.
    (c) No Discount of Award for Noneconomic Damages.--For purposes of 
applying the limitation in subsection (b), future noneconomic damages 
shall not be discounted to present value. The jury shall not be 
informed about the maximum award for noneconomic damages. An award for 
noneconomic damages in excess of $250,000 shall be reduced either 
before the entry of judgment, or by amendment of the judgment after 
entry of judgment, and such reduction shall be made before accounting 
for any other reduction in damages required by law. If separate awards 
are rendered for past and future noneconomic damages and the combined 
awards exceed $250,000, the future noneconomic damages shall be reduced 
first.
    (d) Fair Share Rule.--In any health care lawsuit, each party shall 
be liable for that party's several share of any damages only and not 
for the share of any other person. Each party shall be liable only for 
the amount of damages allocated to such party in direct proportion to 
such party's percentage of responsibility. Whenever a judgment of 
liability is rendered as to any party, a separate judgment shall be 
rendered against each such party for the amount allocated to such 
party. For purposes of this section, the trier of fact shall determine 
the proportion of responsibility of each party for the claimant's harm.

SEC. 504. MAXIMIZING PATIENT RECOVERY.

    (a) Court Supervision of Share of Damages Actually Paid to 
Claimants.--In any health care lawsuit, the court shall supervise the 
arrangements for payment of damages to protect against conflicts of 
interest that may have the effect of reducing the amount of damages 
awarded that are actually paid to claimants. In particular, in any 
health care lawsuit in which the attorney for a party claims a 
financial stake in the outcome by virtue of a contingent fee, the court 
shall have the power to restrict the payment of a claimant's damage 
recovery to such attorney, and to redirect such damages to the claimant 
based upon the interests of justice and principles of equity. In no 
event shall the total of all contingent fees for representing all 
claimants in a health care lawsuit exceed the following limits:
            (1) 40 percent of the first $50,000 recovered by all such 
        claimants.
            (2) 33\1/3\ percent of the next $50,000 recovered by all 
        such claimants.
            (3) 25 percent of the next $500,000 recovered by all such 
        claimants.
            (4) 15 percent of any amount by which the recovery by all 
        such claimants is in excess of $600,000.
    (b) Applicability.--The limitations in this section shall apply 
whether the recovery is by judgment, settlement, mediation, 
arbitration, or any other form of alternative dispute resolution. In a 
health care lawsuit involving a minor or incompetent person, a court 
retains the authority to authorize or approve a fee that is less than 
the maximum permitted under this section. The requirement for court 
supervision in the first two sentences of subsection (a) applies only 
in civil actions.

SEC. 505. ADDITIONAL HEALTH BENEFITS.

    In any health care lawsuit involving injury or wrongful death, any 
party may introduce evidence of collateral source benefits. If a party 
elects to introduce such evidence, any opposing party may introduce 
evidence of any amount paid or contributed or reasonably likely to be 
paid or contributed in the future by or on behalf of the opposing party 
to secure the right to such collateral source benefits. No provider of 
collateral source benefits shall recover any amount against the 
claimant or receive any lien or credit against the claimant's recovery 
or be equitably or legally subrogated to the right of the claimant in a 
health care lawsuit involving injury or wrongful death. This section 
shall apply to any health care lawsuit that is settled as well as a 
health care lawsuit that is resolved by a fact finder. This section 
shall not apply to section 1862(b) of the Social Security Act (42 
U.S.C. 1395y(b)) or section 1902(a)(25) of such Act (42 U.S.C. 
1396a(a)(25)).

SEC. 506. PUNITIVE DAMAGES.

    (a) In General.--Punitive damages may, if otherwise permitted by 
applicable State or Federal law, be awarded against any person in a 
health care lawsuit only if it is proven by clear and convincing 
evidence that such person acted with malicious intent to injure the 
claimant, or that such person deliberately failed to avoid unnecessary 
injury that such person knew the claimant was substantially certain to 
suffer. In any health care lawsuit for which no judgment for 
compensatory damages is rendered against such person, no punitive 
damages may be awarded with respect to the claim in such lawsuit. No 
demand for punitive damages shall be included in a health care lawsuit 
as initially filed. A court may allow a claimant to file an amended 
pleading for punitive damages only upon a motion by the claimant and 
after a finding by the court, upon review of supporting and opposing 
affidavits or after a hearing, after weighing the evidence, that the 
claimant has established by a substantial probability that the claimant 
will prevail on the claim for punitive damages. At the request of any 
party in a health care lawsuit, the trier of fact shall consider in a 
separate proceeding--
            (1) whether punitive damages are to be awarded and the 
        amount of such award; and
            (2) the amount of punitive damages following a 
        determination of punitive liability.
If a separate proceeding is requested, evidence relevant only to the 
claim for punitive damages, as determined by applicable State law, 
shall be inadmissible in any proceeding to determine whether 
compensatory damages are to be awarded.
    (b) Determining Amount of Punitive Damages.--
            (1) Factors considered.--In determining the amount of 
        punitive damages, if awarded, in a health care lawsuit, the 
        trier of fact shall consider only the following:
                    (A) The severity of the harm caused by the conduct 
                of such party.
                    (B) The duration of the conduct or any concealment 
                of it by such party.
                    (C) The profitability of the conduct to such party.
                    (D) The number of products sold or medical 
                procedures rendered for compensation, as the case may 
                be, by such party, of the kind causing the harm 
                complained of by the claimant.
                    (E) Any criminal penalties imposed on such party, 
                as a result of the conduct complained of by the 
                claimant.
                    (F) The amount of any civil fines assessed against 
                such party as a result of the conduct complained of by 
                the claimant.
            (2) Maximum award.--The amount of punitive damages, if 
        awarded, in a health care lawsuit may be as much as $250,000 or 
        as much as two times the amount of economic damages awarded, 
        whichever is greater. The jury shall not be informed of this 
        limitation.
    (c) No Punitive Damages for Products That Comply With FDA 
Standards.--
            (1) Liability of certain manufacturers, distributors, and 
        suppliers.--
                    (A) In general.--No punitive damages may be awarded 
                against the manufacturer or distributor of a medical 
                product, or a supplier of any component or raw material 
                of such medical product, based on a claim that such 
                product caused the claimant's harm where--
                            (i)(I) such medical product was subject to 
                        premarket approval, clearance, or licensure by 
                        the Food and Drug Administration with respect 
                        to the safety of the formulation or performance 
                        of the aspect of such medical product which 
                        caused the claimant's harm or the adequacy of 
                        the packaging or labeling of such medical 
                        product; and
                            (II) such medical product was so approved, 
                        cleared, or licensed; or
                            (ii) such medical product is generally 
                        recognized among qualified experts as safe and 
                        effective pursuant to conditions established by 
                        the Food and Drug Administration and applicable 
                        Food and Drug Administration regulations, 
                        including without limitation those related to 
                        packaging and labeling, unless the Food and 
                        Drug Administration has determined that such 
                        medical product was not manufactured or 
                        distributed in substantial compliance with 
                        applicable Food and Drug Administration 
                        statutes and regulations.
                    (B) Rule of construction.--Subparagraph (A) may not 
                be construed as establishing the obligation of the Food 
                and Drug Administration to demonstrate affirmatively 
                that a manufacturer, distributor, or supplier referred 
                to in such subparagraph meets any of the conditions 
                described in such subparagraph.
            (2) Liability of health care providers.--A health care 
        provider who prescribes, or who dispenses pursuant to a 
        prescription, a medical product approved, licensed, or cleared 
        by the Food and Drug Administration shall not be named as a 
        party to a product liability lawsuit involving such product and 
        shall not be liable to a claimant in a class action lawsuit 
        against the manufacturer, distributor, or seller of such 
        product. Nothing in this paragraph prevents a court from 
        consolidating cases involving health care providers and cases 
        involving products liability claims against the manufacturer, 
        distributor, or product seller of such medical product.
            (3) Packaging.--In a health care lawsuit for harm which is 
        alleged to relate to the adequacy of the packaging or labeling 
        of a drug which is required to have tamper-resistant packaging 
        under regulations of the Secretary of Health and Human Services 
        (including labeling regulations related to such packaging), the 
        manufacturer or product seller of the drug shall not be held 
        liable for punitive damages unless such packaging or labeling 
        is found by the trier of fact by clear and convincing evidence 
        to be substantially out of compliance with such regulations.
            (4) Exception.--Paragraph (1) shall not apply with respect 
        to any health care lawsuit in which--
                    (A) a person, before or after premarket approval, 
                clearance, or licensure of such medical product, 
                knowingly misrepresented to or withheld from the Food 
                and Drug Administration information that is required to 
                be submitted under the Federal Food, Drug, and Cosmetic 
                Act (21 U.S.C. 301 et seq.) or section 351 of the 
                Public Health Service Act (42 U.S.C. 262) that is 
                material and is causally related to the harm which the 
                claimant allegedly suffered; or
                    (B) a person made an illegal payment to an official 
                of the Food and Drug Administration for the purpose of 
                either securing or maintaining approval, clearance, or 
                licensure of such medical product.

SEC. 507. AUTHORIZATION OF PAYMENT OF FUTURE DAMAGES TO CLAIMANTS IN 
              HEALTH CARE LAWSUITS.

    (a) In General.--In any health care lawsuit, if an award of future 
damages, without reduction to present value, equaling or exceeding 
$50,000 is made against a party with sufficient insurance or other 
assets to fund a periodic payment of such a judgment, the court shall, 
at the request of any party, enter a judgment ordering that the future 
damages be paid by periodic payments. In any health care lawsuit, the 
court may be guided by the Uniform Periodic Payment of Judgments Act 
promulgated by the National Conference of Commissioners on Uniform 
State Laws.
    (b) Applicability.--This section applies to all actions which have 
not been first set for trial or retrial before the date of the 
enactment of this title.

SEC. 508. DEFINITIONS.

    In this title:
            (1) Alternative dispute resolution system; adr.--The term 
        ``alternative dispute resolution system'' or ``ADR'' means a 
        system that provides for the resolution of health care lawsuits 
        in a manner other than through a civil action brought in a 
        State or Federal court.
            (2) Claimant.--The term ``claimant'' means any person who 
        brings a health care lawsuit, including a person who asserts or 
        claims a right to legal or equitable contribution, indemnity, 
        or subrogation, arising out of a health care liability claim or 
        action, and any person on whose behalf such a claim is asserted 
        or such an action is brought, whether deceased, incompetent, or 
        a minor.
            (3) Collateral source benefits.--The term ``collateral 
        source benefits'' means any amount paid or reasonably likely to 
        be paid in the future to, or on behalf of, the claimant, or any 
        service, product, or other benefit provided or reasonably 
        likely to be provided in the future to, or on behalf of, the 
        claimant, as a result of the injury or wrongful death, pursuant 
        to--
                    (A) any State or Federal health, sickness, income-
                disability, accident, or workers' compensation law;
                    (B) any health, sickness, income-disability, or 
                accident insurance that provides health benefits or 
                income-disability coverage;
                    (C) any contract or agreement of any group, 
                organization, partnership, or corporation to provide, 
                pay for, or reimburse the cost of medical, hospital, 
                dental, or income-disability benefits; and
                    (D) any other publicly or privately funded program.
            (4) Compensatory damages.--The term ``compensatory 
        damages'' means objectively verifiable monetary losses incurred 
        as a result of the provision of, use of, or payment for (or 
        failure to provide, use, or pay for) health care services or 
        medical products, such as past and future medical expenses, 
        loss of past and future earnings, cost of obtaining domestic 
        services, loss of employment, and loss of business or 
        employment opportunities, damages for physical and emotional 
        pain, suffering, inconvenience, physical impairment, mental 
        anguish, disfigurement, loss of enjoyment of life, loss of 
        society and companionship, loss of consortium (other than loss 
        of domestic service), hedonic damages, injury to reputation, 
        and all other nonpecuniary losses of any kind or nature. The 
        term ``compensatory damages'' includes economic damages and 
        noneconomic damages, as such terms are defined in this section.
            (5) Contingent fee.--The term ``contingent fee'' includes 
        all compensation to any person or persons which is payable only 
        if a recovery is effected on behalf of one or more claimants.
            (6) Economic damages.--The term ``economic damages'' means 
        objectively verifiable monetary losses incurred as a result of 
        the provision of, use of, or payment for (or failure to 
        provide, use, or pay for) health care services or medical 
        products, such as past and future medical expenses, loss of 
        past and future earnings, cost of obtaining domestic services, 
        loss of employment, and loss of business or employment 
        opportunities.
            (7) Health care lawsuit.--The term ``health care lawsuit'' 
        means any health care liability claim concerning the provision 
        of health care goods or services or any medical product 
        affecting interstate commerce, or any health care liability 
        action concerning the provision of health care goods or 
        services or any medical product affecting interstate commerce, 
        brought in a State or Federal court or pursuant to an 
        alternative dispute resolution system, against a health care 
        provider, a health care organization, or the manufacturer, 
        distributor, supplier, marketer, promoter, or seller of a 
        medical product, regardless of the theory of liability on which 
        the claim is based, or the number of claimants, plaintiffs, 
        defendants, or other parties, or the number of claims or causes 
        of action, in which the claimant alleges a health care 
        liability claim. Such term does not include a claim or action 
        which is based on criminal liability; which seeks civil fines 
        or penalties paid to Federal, State, or local government; or 
        which is grounded in antitrust.
            (8) Health care liability action.--The term ``health care 
        liability action'' means a civil action brought in a State or 
        Federal court or pursuant to an alternative dispute resolution 
        system, against a health care provider, a health care 
        organization, or the manufacturer, distributor, supplier, 
        marketer, promoter, or seller of a medical product, regardless 
        of the theory of liability on which the claim is based, or the 
        number of plaintiffs, defendants, or other parties, or the 
        number of causes of action, in which the claimant alleges a 
        health care liability claim.
            (9) Health care liability claim.--The term ``health care 
        liability claim'' means a demand by any person, whether or not 
        pursuant to ADR, against a health care provider, health care 
        organization, or the manufacturer, distributor, supplier, 
        marketer, promoter, or seller of a medical product, including, 
        but not limited to, third-party claims, cross-claims, counter-
        claims, or contribution claims, which are based upon the 
        provision of, use of, or payment for (or the failure to 
        provide, use, or pay for) health care services or medical 
        products, regardless of the theory of liability on which the 
        claim is based, or the number of plaintiffs, defendants, or 
        other parties, or the number of causes of action.
            (10) Health care organization.--The term ``health care 
        organization'' means any person or entity which is obligated to 
        provide or pay for health benefits under any health plan, 
        including any person or entity acting under a contract or 
        arrangement with a health care organization to provide or 
        administer any health benefit.
            (11) Health care provider.--The term ``health care 
        provider'' means any person or entity required by State or 
        Federal laws or regulations to be licensed, registered, or 
        certified to provide health care services, and being either so 
        licensed, registered, or certified, or exempted from such 
        requirement by other statute or regulation.
            (12) Health care goods or services.--The term ``health care 
        goods or services'' means any goods or services provided by a 
        health care organization, provider, or by any individual 
        working under the supervision of a health care provider, that 
        relates to the diagnosis, prevention, or treatment of any human 
        disease or impairment, or the assessment or care of the health 
        of human beings.
            (13) Malicious intent to injure.--The term ``malicious 
        intent to injure'' means intentionally causing or attempting to 
        cause physical injury other than providing health care goods or 
        services.
            (14) Medical product.--The term ``medical product'' means a 
        drug, device, or biological product intended for humans, and 
        the terms ``drug'', ``device'', and ``biological product'' have 
        the meanings given such terms in sections 201(g)(1) and 201(h) 
        of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 321(g)(1) 
        and (h)) and section 351(a) of the Public Health Service Act 
        (42 U.S.C. 262(a)), respectively, including any component or 
        raw material used therein, but excluding health care services.
            (15) Noneconomic damages.--The term ``noneconomic damages'' 
        means damages for physical and emotional pain, suffering, 
        inconvenience, physical impairment, mental anguish, 
        disfigurement, loss of enjoyment of life, loss of society and 
        companionship, loss of consortium (other than loss of domestic 
        service), hedonic damages, injury to reputation, and all other 
        nonpecuniary losses of any kind or nature.
            (16) Punitive damages.--The term ``punitive damages'' means 
        damages awarded, for the purpose of punishment or deterrence, 
        and not solely for compensatory purposes, against a health care 
        provider, health care organization, or a manufacturer, 
        distributor, or supplier of a medical product. Punitive damages 
        are neither economic nor noneconomic damages.
            (17) Recovery.--The term ``recovery'' means the net sum 
        recovered after deducting any disbursements or costs incurred 
        in connection with prosecution or settlement of the claim, 
        including all costs paid or advanced by any person. Costs of 
        health care incurred by the plaintiff and the attorneys' office 
        overhead costs or charges for legal services are not deductible 
        disbursements or costs for such purpose.
            (18) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the United States Virgin Islands, Guam, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, the Trust 
        Territory of the Pacific Islands, and any other territory or 
        possession of the United States, or any political subdivision 
        thereof.

SEC. 509. EFFECT ON OTHER LAWS.

    (a) Vaccine Injury.--
            (1) To the extent that title XXI of the Public Health 
        Service Act establishes a Federal rule of law applicable to a 
        civil action brought for a vaccine-related injury or death--
                    (A) title V of this Act does not affect the 
                application of the rule of law applicable to such an 
                action; and
                    (B) any rule of law prescribed by title V of this 
                Act in conflict with a rule of law of such title XXI 
                shall not apply to such action.
            (2) If there is an aspect of a civil action brought for a 
        vaccine-related injury or death to which a Federal rule of law 
        under title XXI of the Public Health Service Act does not 
        apply, then title V of this Act or otherwise applicable law (as 
        determined under this title) will apply to such aspect of such 
        action.
    (b) Other Federal Law.--Except as provided in this section, nothing 
in this title shall be deemed to affect any defense available to a 
defendant in a health care lawsuit or action under any other provision 
of Federal law.

SEC. 510. STATE FLEXIBILITY AND PROTECTION OF STATES' RIGHTS.

    (a) Health Care Lawsuits.--The provisions governing health care 
lawsuits set forth in this title preempt, subject to subsections (b) 
and (c), State law to the extent that State law prevents the 
application of any provisions of law established by or under this 
title. The provisions governing health care lawsuits set forth in this 
title supersede chapter 171 of title 28, United States Code, to the 
extent that such chapter--
            (1) provides for a greater amount of damages or contingent 
        fees, a longer period in which a health care lawsuit may be 
        commenced, or a reduced applicability or scope of periodic 
        payment of future damages, than provided in title V of this 
        Act; or
            (2) prohibits the introduction of evidence regarding 
        collateral source benefits, or mandates or permits subrogation 
        or a lien on collateral source benefits.
    (b) Protection of States' Rights and Other Laws.--
            (1) In general.--Any issue that is not governed by any 
        provision of law established by or under this title (including 
        State standards of negligence) shall be governed by otherwise 
        applicable State or Federal law.
            (2) Laws that provide greater protections.--This title 
        shall not preempt or supersede any State or Federal law that 
        imposes greater procedural or substantive protections for 
        health care providers and health care organizations from 
        liability, loss, or damages than those provided by this title 
        or create a cause of action.
    (c) State Flexibility.--No provision of this title shall be 
construed to preempt--
            (1) any State law (whether effective before, on, or after 
        the date of the enactment of this title) that specifies a 
        particular monetary amount of compensatory or punitive damages 
        (or the total amount of damages) that may be awarded in a 
        health care lawsuit, regardless of whether such monetary amount 
        is greater or lesser than is provided for under this title, 
        notwithstanding section 503(a); or
            (2) any defense available to a party in a health care 
        lawsuit under any other provision of State or Federal law.

SEC. 511. APPLICABILITY; EFFECTIVE DATE.

    This title shall apply to any health care lawsuit brought in a 
Federal or State court, or subject to an alternative dispute resolution 
system, that is initiated on or after the date of the enactment of this 
title, except that any health care lawsuit arising from an injury 
occurring prior to the date of the enactment of this title shall be 
governed by the applicable statute of limitations provisions in effect 
at the time the injury occurred.

SEC. 512. SENSE OF CONGRESS.

    It is the sense of Congress that a health insurer should be liable 
for damages for harm caused when it makes a decision as to what care is 
medically necessary and appropriate.

SEC. 513. COOPERATIVE GOVERNING OF INDIVIDUAL HEALTH INSURANCE 
              COVERAGE.

    (a) In General.--Title XXVII of the Public Health Service Act (42 
U.S.C. 300gg et seq.) is amended by adding at the end the following new 
part:

``PART D--COOPERATIVE GOVERNING OF INDIVIDUAL HEALTH INSURANCE COVERAGE

``SEC. 2795. DEFINITIONS.

    ``In this part:
            ``(1) Primary state.--The term `primary State' means, with 
        respect to individual health insurance coverage offered by a 
        health insurance issuer, the State designated by the issuer as 
        the State whose covered laws shall govern the health insurance 
        issuer in the sale of such coverage under this part. An issuer, 
        with respect to a particular policy, may only designate one 
        such State as its primary State with respect to all such 
        coverage it offers. Such an issuer may not change the 
        designated primary State with respect to individual health 
        insurance coverage once the policy is issued, except that such 
        a change may be made upon renewal of the policy. With respect 
        to such designated State, the issuer is deemed to be doing 
        business in that State.
            ``(2) Secondary state.--The term `secondary State' means, 
        with respect to individual health insurance coverage offered by 
        a health insurance issuer, any State that is not the primary 
        State. In the case of a health insurance issuer that is selling 
        a policy in, or to a resident of, a secondary State, the issuer 
        is deemed to be doing business in that secondary State.
            ``(3) Health insurance issuer.--The term `health insurance 
        issuer' has the meaning given such term in section 2791(b)(2), 
        except that such an issuer must be licensed in the primary 
        State and be qualified to sell individual health insurance 
        coverage in that State.
            ``(4) Individual health insurance coverage.--The term 
        `individual health insurance coverage' means health insurance 
        coverage offered in the individual market, as defined in 
        section 2791(e)(1).
            ``(5) Applicable state authority.--The term `applicable 
        State authority' means, with respect to a health insurance 
        issuer in a State, the State insurance commissioner or official 
        or officials designated by the State to enforce the 
        requirements of this title for the State with respect to the 
        issuer.
            ``(6) Hazardous financial condition.--The term `hazardous 
        financial condition' means that, based on its present or 
        reasonably anticipated financial condition, a health insurance 
        issuer is unlikely to be able--
                    ``(A) to meet obligations to policyholders with 
                respect to known claims and reasonably anticipated 
                claims; or
                    ``(B) to pay other obligations in the normal course 
                of business.
            ``(7) Covered laws.--
                    ``(A) In general.--The term `covered laws' means 
                the laws, rules, regulations, agreements, and orders 
                governing the insurance business pertaining to--
                            ``(i) individual health insurance coverage 
                        issued by a health insurance issuer;
                            ``(ii) the offer, sale, rating (including 
                        medical underwriting), renewal, and issuance of 
                        individual health insurance coverage to an 
                        individual;
                            ``(iii) the provision to an individual in 
                        relation to individual health insurance 
                        coverage of health care and insurance-related 
                        services;
                            ``(iv) the provision to an individual in 
                        relation to individual health insurance 
                        coverage of management, operations, and 
                        investment activities of a health insurance 
                        issuer; and
                            ``(v) the provision to an individual in 
                        relation to individual health insurance 
                        coverage of loss control and claims 
                        administration for a health insurance issuer 
                        with respect to liability for which the issuer 
                        provides insurance.
                    ``(B) Exception.--Such term does not include any 
                law, rule, regulation, agreement, or order governing 
                the use of care or cost management techniques, 
                including any requirement related to provider 
                contracting, network access or adequacy, health care 
                data collection, or quality assurance.
            ``(8) State.--The term `State' means the 50 States and 
        includes the District of Columbia, the Commonwealth of Puerto 
        Rico, the United States Virgin Islands, Guam, American Samoa, 
        and the Commonwealth of the Northern Mariana Islands.
            ``(9) Unfair claims settlement practices.--The term `unfair 
        claims settlement practices' means only the following 
        practices:
                    ``(A) Knowingly misrepresenting to claimants and 
                insured individuals relevant facts or policy provisions 
                relating to coverage at issue.
                    ``(B) Failing to acknowledge with reasonable 
                promptness pertinent communications with respect to 
                claims arising under policies.
                    ``(C) Failing to adopt and implement reasonable 
                standards for the prompt investigation and settlement 
                of claims arising under policies.
                    ``(D) Failing to effectuate prompt, fair, and 
                equitable settlement of claims submitted in which 
                liability has become reasonably clear.
                    ``(E) Refusing to pay claims without conducting a 
                reasonable investigation.
                    ``(F) Failing to affirm or deny coverage of claims 
                within a reasonable period of time after having 
                completed an investigation related to those claims.
                    ``(G) A pattern or practice of compelling insured 
                individuals or their beneficiaries to institute suits 
                to recover amounts due under its policies by offering 
                substantially less than the amounts ultimately 
                recovered in suits brought by them.
                    ``(H) A pattern or practice of attempting to settle 
                or settling claims for less than the amount that a 
                reasonable person would believe the insured individual 
                or his or her beneficiary was entitled by reference to 
                written or printed advertising material accompanying or 
                made part of an application.
                    ``(I) Attempting to settle or settling claims on 
                the basis of an application that was materially altered 
                without notice to, or knowledge or consent of, the 
                insured.
                    ``(J) Failing to provide forms necessary to present 
                claims within 15 calendar days of a request with 
                reasonable explanations regarding their use.
                    ``(K) Attempting to cancel a policy in less time 
                than that prescribed in the policy or by the law of the 
                primary State.
            ``(10) Fraud and abuse.--The term `fraud and abuse' means 
        an act or omission committed by a person who, knowingly and 
        with intent to defraud, commits, or conceals any material 
        information concerning, one or more of the following:
                    ``(A) Presenting, causing to be presented, or 
                preparing with knowledge or belief that it will be 
                presented to or by an insurer, a reinsurer, broker or 
                its agent, false information as part of, in support of 
                or concerning a fact material to one or more of the 
                following:
                            ``(i) An application for the issuance or 
                        renewal of an insurance policy or reinsurance 
                        contract.
                            ``(ii) The rating of an insurance policy or 
                        reinsurance contract.
                            ``(iii) A claim for payment or benefit 
                        pursuant to an insurance policy or reinsurance 
                        contract.
                            ``(iv) Premiums paid on an insurance policy 
                        or reinsurance contract.
                            ``(v) Payments made in accordance with the 
                        terms of an insurance policy or reinsurance 
                        contract.
                            ``(vi) A document filed with the 
                        commissioner or the chief insurance regulatory 
                        official of another jurisdiction.
                            ``(vii) The financial condition of an 
                        insurer or reinsurer.
                            ``(viii) The formation, acquisition, 
                        merger, reconsolidation, dissolution, or 
                        withdrawal from one or more lines of insurance 
                        or reinsurance in all or part of a State by an 
                        insurer or reinsurer.
                            ``(ix) The issuance of written evidence of 
                        insurance.
                            ``(x) The reinstatement of an insurance 
                        policy.
                    ``(B) Solicitation or acceptance of new or renewal 
                insurance risks on behalf of an insurer, reinsurer, or 
                other person engaged in the business of insurance by a 
                person who knows or should know that the insurer or 
                other person responsible for the risk is insolvent at 
                the time of the transaction.
                    ``(C) Transaction of the business of insurance in 
                violation of laws requiring a license, certificate of 
                authority, or other legal authority for the transaction 
                of the business of insurance.
                    ``(D) Attempt to commit, aiding or abetting in the 
                commission of, or conspiracy to commit the acts or 
                omissions specified in this paragraph.

``SEC. 2796. APPLICATION OF LAW.

    ``(a) In General.--The covered laws of the primary State shall 
apply to individual health insurance coverage offered by a health 
insurance issuer in the primary State and in any secondary State, but 
only if the coverage and issuer comply with the conditions of this 
section with respect to the offering of coverage in any secondary 
State.
    ``(b) Exemptions From Covered Laws in a Secondary State.--Except as 
provided in this section, a health insurance issuer with respect to its 
offer, sale, rating (including medical underwriting), renewal, and 
issuance of individual health insurance coverage in any secondary State 
is exempt from any covered laws of the secondary State (and any rules, 
regulations, agreements, or orders sought or issued by such State under 
or related to such covered laws) to the extent that such laws would--
            ``(1) make unlawful, or regulate, directly or indirectly, 
        the operation of the health insurance issuer operating in the 
        secondary State, except that any secondary State may require 
        such an issuer--
                    ``(A) to pay, on a nondiscriminatory basis, 
                applicable premium and other taxes (including high-
                risk-pool assessments) which are levied on insurers and 
                surplus lines insurers, brokers, or policyholders under 
                the laws of the State;
                    ``(B) to register with and designate the State 
                insurance commissioner as its agent solely for the 
                purpose of receiving service of legal documents or 
                process;
                    ``(C) to submit to an examination of its financial 
                condition by the State insurance commissioner in any 
                State in which the issuer is doing business to 
                determine the issuer's financial condition, if--
                            ``(i) the State insurance commissioner of 
                        the primary State has not done an examination 
                        within the period recommended by the National 
                        Association of Insurance Commissioners; and
                            ``(ii) any such examination is conducted in 
                        accordance with the examiners' handbook of the 
                        National Association of Insurance Commissioners 
                        and is coordinated to avoid unjustified 
                        duplication and unjustified repetition;
                    ``(D) to comply with a lawful order issued--
                            ``(i) in a delinquency proceeding commenced 
                        by the State insurance commissioner if there 
                        has been a finding of financial impairment 
                        under subparagraph (C); or
                            ``(ii) in a voluntary dissolution 
                        proceeding;
                    ``(E) to comply with an injunction issued by a 
                court of competent jurisdiction, upon a petition by the 
                State insurance commissioner alleging that the issuer 
                is in hazardous financial condition;
                    ``(F) to participate, on a nondiscriminatory basis, 
                in any insurance insolvency guaranty association or 
                similar association to which a health insurance issuer 
                in the State is required to belong;
                    ``(G) to comply with any State law regarding fraud 
                and abuse (as defined in section 2795(10)), except that 
                if the State seeks an injunction regarding the conduct 
                described in this subparagraph, such injunction must be 
                obtained from a court of competent jurisdiction;
                    ``(H) to comply with any State law regarding unfair 
                claims settlement practices (as defined in section 
                2795(9)); or
                    ``(I) to comply with the applicable requirements 
                for independent review under section 2798 with respect 
                to coverage offered in the State;
            ``(2) require any individual health insurance coverage 
        issued by the issuer to be countersigned by an insurance agent 
        or broker residing in that secondary State; or
            ``(3) otherwise discriminate against the issuer issuing 
        insurance in both the primary State and in any secondary State.
    ``(c) Clear and Conspicuous Disclosure.--A health insurance issuer 
shall provide the following notice, in 12-point bold type, in any 
insurance coverage offered in a secondary State under this part by such 
a health insurance issuer and at renewal of the policy, with the 5 
blank spaces therein being appropriately filled with the name of the 
health insurance issuer, the name of primary State, the name of the 
secondary State, the name of the secondary State, and the name of the 
secondary State, respectively, for the coverage concerned:
            ```Notice'
            ```This policy is issued by XXXXX and is governed by the 
        laws and regulations of the State of XXXXX, and it has met all 
        the laws of that State as determined by that State's Department 
        of Insurance. This policy may be less expensive than others 
        because it is not subject to all of the insurance laws and 
        regulations of the State of XXXXX, including coverage of some 
        services or benefits mandated by the law of the State of XXXXX. 
        Additionally, this policy is not subject to all of the consumer 
        protection laws or restrictions on rate changes of the State of 
        XXXXX. As with all insurance products, before purchasing this 
        policy, you should carefully review the policy and determine 
        what health care services the policy covers and what benefits 
        it provides, including any exclusions, limitations, or 
        conditions for such services or benefits.'.
    ``(d) Prohibition on Certain Reclassifications and Premium 
Increases.--
            ``(1) In general.--For purposes of this section, a health 
        insurance issuer that provides individual health insurance 
        coverage to an individual under this part in a primary or 
        secondary State may not upon renewal--
                    ``(A) move or reclassify the individual insured 
                under the health insurance coverage from the class such 
                individual is in at the time of issue of the contract 
                based on the health-status-related factors of the 
                individual; or
                    ``(B) increase the premiums assessed the individual 
                for such coverage based on a health-status-related 
                factor or change of a health-status-related factor or 
                the past or prospective claim experience of the insured 
                individual.
            ``(2) Construction.--Nothing in paragraph (1) shall be 
        construed to prohibit a health insurance issuer--
                    ``(A) from terminating or discontinuing coverage or 
                a class of coverage in accordance with subsections (b) 
                and (c) of section 2742;
                    ``(B) from raising premium rates for all 
                policyholders within a class based on claims 
                experience;
                    ``(C) from changing premiums or offering discounted 
                premiums to individuals who engage in wellness 
                activities at intervals prescribed by the issuer, if 
                such premium changes or incentives--
                            ``(i) are disclosed to the consumer in the 
                        insurance contract;
                            ``(ii) are based on specific wellness 
                        activities that are not applicable to all 
                        individuals; and
                            ``(iii) are not obtainable by all 
                        individuals to whom coverage is offered;
                    ``(D) from reinstating lapsed coverage; or
                    ``(E) from retroactively adjusting the rates 
                charged an insured individual if the initial rates were 
                set based on material misrepresentation by the 
                individual at the time of issue.
    ``(e) Prior Offering of Policy in Primary State.--A health 
insurance issuer may not offer for sale individual health insurance 
coverage in a secondary State unless that coverage is currently offered 
for sale in the primary State.
    ``(f) Licensing of Agents or Brokers for Health Insurance 
Issuers.--Any State may require that a person acting, or offering to 
act, as an agent or broker for a health insurance issuer with respect 
to the offering of individual health insurance coverage obtain a 
license from that State, with commissions or other compensation subject 
to the provisions of the laws of that State, except that a State may 
not impose any qualification or requirement which discriminates against 
a nonresident agent or broker.
    ``(g) Documents for Submission to State Insurance Commissioner.--
Each health insurance issuer issuing individual health insurance 
coverage in both primary and secondary States shall submit--
            ``(1) to the insurance commissioner of each State in which 
        it intends to offer such coverage, before it may offer 
        individual health insurance coverage in such State--
                    ``(A) a copy of the plan of operation or 
                feasibility study or any similar statement of the 
                policy being offered and its coverage (which shall 
                include the name of its primary State and its principal 
                place of business);
                    ``(B) written notice of any change in its 
                designation of its primary State; and
                    ``(C) written notice from the issuer of the 
                issuer's compliance with all the laws of the primary 
                State; and
            ``(2) to the insurance commissioner of each secondary State 
        in which it offers individual health insurance coverage, a copy 
        of the issuer's quarterly financial statement submitted to the 
        primary State, which statement shall be certified by an 
        independent public accountant and contain a statement of 
        opinion on loss and loss adjustment expense reserves made by--
                    ``(A) a member of the American Academy of 
                Actuaries; or
                    ``(B) a qualified loss reserve specialist.
    ``(h) Power of Courts To Enjoin Conduct.--Nothing in this section 
shall be construed to affect the authority of any Federal or State 
court to enjoin--
            ``(1) the solicitation or sale of individual health 
        insurance coverage by a health insurance issuer to any person 
        or group who is not eligible for such insurance; or
            ``(2) the solicitation or sale of individual health 
        insurance coverage that violates the requirements of the law of 
        a secondary State which are described in subparagraphs (A) 
        through (H) of section 2796(b)(1).
    ``(i) Power of Secondary States To Take Administrative Action.--
Nothing in this section shall be construed to affect the authority of 
any State to enjoin conduct in violation of that State's laws described 
in section 2796(b)(1).
    ``(j) State Powers To Enforce State Laws.--
            ``(1) In general.--Subject to the provisions of subsection 
        (b)(1)(G) (relating to injunctions) and paragraph (2), nothing 
        in this section shall be construed to affect the authority of 
        any State to make use of any of its powers to enforce the laws 
        of such State with respect to which a health insurance issuer 
        is not exempt under subsection (b).
            ``(2) Courts of competent jurisdiction.--If a State seeks 
        an injunction regarding the conduct described in paragraphs (1) 
        and (2) of subsection (h), such injunction must be obtained 
        from a Federal or State court of competent jurisdiction.
    ``(k) States' Authority To Sue.--Nothing in this section shall 
affect the authority of any State to bring action in any Federal or 
State court.
    ``(l) Generally Applicable Laws.--Nothing in this section shall be 
construed to affect the applicability of State laws generally 
applicable to persons or corporations.
    ``(m) Guaranteed Availability of Coverage to HIPAA-Eligible 
Individuals.--To the extent that a health insurance issuer is offering 
coverage in a primary State that does not accommodate residents of 
secondary States or does not provide a working mechanism for residents 
of a secondary State, and the issuer is offering coverage under this 
part in such secondary State which has not adopted a qualified high-
risk pool as its acceptable alternative mechanism (as defined in 
section 2744(c)(2)), the issuer shall, with respect to any individual 
health insurance coverage offered in a secondary State under this part, 
comply with the guaranteed availability requirements for eligible 
individuals in section 2741.

``SEC. 2797. PRIMARY STATE MUST MEET FEDERAL FLOOR BEFORE ISSUER MAY 
              SELL INTO SECONDARY STATES.

    ``A health insurance issuer may not offer, sell, or issue 
individual health insurance coverage in a secondary State if the State 
insurance commissioner does not use a risk-based capital formula for 
the determination of capital and surplus requirements for all health 
insurance issuers.

``SEC. 2798. INDEPENDENT EXTERNAL APPEALS PROCEDURES.

    ``(a) Right to External Appeal.--A health insurance issuer may not 
offer, sell, or issue individual health insurance coverage in a 
secondary State under the provisions of this title unless--
            ``(1) both the secondary State and the primary State have 
        legislation or regulations in place establishing an independent 
        review process for individuals who are covered by individual 
        health insurance coverage, or
            ``(2) in any case in which the requirements of subparagraph 
        (A) are not met with respect to the either of such States, the 
        issuer provides an independent review mechanism substantially 
        identical (as determined by the applicable State authority of 
        such State) to that prescribed in the `Health Carrier External 
        Review Model Act' of the National Association of Insurance 
        Commissioners for all individuals who purchase insurance 
        coverage under the terms of this part, except that, under such 
        mechanism, the review is conducted by an independent medical 
        reviewer, or a panel of such reviewers, with respect to whom 
        the requirements of subsection (b) are met.
    ``(b) Qualifications of Independent Medical Reviewers.--In the case 
of any independent review mechanism referred to in subsection (a)(2)--
            ``(1) In general.--In referring a denial of a claim to an 
        independent medical reviewer, or to any panel of such 
        reviewers, to conduct independent medical review, the issuer 
        shall ensure that--
                    ``(A) each independent medical reviewer meets the 
                qualifications described in paragraphs (2) and (3);
                    ``(B) with respect to each review, each reviewer 
                meets the requirements of paragraph (4) and the 
                reviewer, or at least 1 reviewer on the panel, meets 
                the requirements described in paragraph (5); and
                    ``(C) compensation provided by the issuer to each 
                reviewer is consistent with paragraph (6).
            ``(2) Licensure and expertise.--Each independent medical 
        reviewer shall be a physician (allopathic or osteopathic) or 
        health care professional who--
                    ``(A) is appropriately credentialed or licensed in 
                1 or more States to deliver health care services; and
                    ``(B) typically treats the condition, makes the 
                diagnosis, or provides the type of treatment under 
                review.
            ``(3) Independence.--
                    ``(A) In general.--Subject to subparagraph (B), 
                each independent medical reviewer in a case shall--
                            ``(i) not be a related party (as defined in 
                        paragraph (7));
                            ``(ii) not have a material familial, 
                        financial, or professional relationship with 
                        such a party; and
                            ``(iii) not otherwise have a conflict of 
                        interest with such a party (as determined under 
                        regulations).
                    ``(B) Exception.--Nothing in subparagraph (A) shall 
                be construed to--
                            ``(i) prohibit an individual, solely on the 
                        basis of affiliation with the issuer, from 
                        serving as an independent medical reviewer if--
                                    ``(I) a nonaffiliated individual is 
                                not reasonably available;
                                    ``(II) the affiliated individual is 
                                not involved in the provision of items 
                                or services in the case under review;
                                    ``(III) the fact of such an 
                                affiliation is disclosed to the issuer 
                                and the enrollee (or authorized 
                                representative) and neither party 
                                objects; and
                                    ``(IV) the affiliated individual is 
                                not an employee of the issuer and does 
                                not provide services exclusively or 
                                primarily to or on behalf of the 
                                issuer;
                            ``(ii) prohibit an individual who has staff 
                        privileges at the institution where the 
                        treatment involved takes place from serving as 
                        an independent medical reviewer merely on the 
                        basis of such affiliation if the affiliation is 
                        disclosed to the issuer and the enrollee (or 
                        authorized representative), and neither party 
                        objects; or
                            ``(iii) prohibit receipt of compensation by 
                        an independent medical reviewer from an entity 
                        if the compensation is provided consistent with 
                        paragraph (6).
            ``(4) Practicing health care professional in same field.--
                    ``(A) In general.--In a case involving treatment, 
                or the provision of items or services--
                            ``(i) by a physician, a reviewer shall be a 
                        practicing physician (allopathic or 
                        osteopathic) of the same or similar specialty, 
                        as a physician who, acting within the 
                        appropriate scope of practice within the State 
                        in which the service is provided or rendered, 
                        typically treats the condition, makes the 
                        diagnosis, or provides the type of treatment 
                        under review; or
                            ``(ii) by a nonphysician health care 
                        professional, the reviewer, or at least 1 
                        member of the review panel, shall be a 
                        practicing nonphysician health care 
                        professional of the same or similar specialty 
                        as the nonphysician health care professional 
                        who, acting within the appropriate scope of 
                        practice within the State in which the service 
                        is provided or rendered, typically treats the 
                        condition, makes the diagnosis, or provides the 
                        type of treatment under review.
                    ``(B) Practicing defined.--For purposes of this 
                paragraph, the term `practicing' means, with respect to 
                an individual who is a physician or other health care 
                professional, that the individual provides health care 
                services to individual patients on average at least 2 
                days per week.
            ``(5) Pediatric expertise.--In the case of an external 
        review relating to a child, a reviewer shall have expertise 
        under paragraph (2) in pediatrics.
            ``(6) Limitations on reviewer compensation.--Compensation 
        provided by the issuer to an independent medical reviewer in 
        connection with a review under this section shall--
                    ``(A) not exceed a reasonable level; and
                    ``(B) not be contingent on the decision rendered by 
                the reviewer.
            ``(7) Related party defined.--For purposes of this section, 
        the term `related party' means, with respect to a denial of a 
        claim under a coverage relating to an enrollee, any of the 
        following:
                    ``(A) The issuer involved, or any fiduciary, 
                officer, director, or employee of the issuer.
                    ``(B) The enrollee (or authorized representative).
                    ``(C) The health care professional that provides 
                the items or services involved in the denial.
                    ``(D) The institution at which the items or 
                services (or treatment) involved in the denial are 
                provided.
                    ``(E) The manufacturer of any drug or other item 
                that is included in the items or services involved in 
                the denial.
                    ``(F) Any other party determined under any 
                regulations to have a substantial interest in the 
                denial involved.
            ``(8) Definitions.--For purposes of this subsection:
                    ``(A) Enrollee.--The term `enrollee' means, with 
                respect to health insurance coverage offered by a 
                health insurance issuer, an individual enrolled with 
                the issuer to receive such coverage.
                    ``(B) Health care professional.--The term `health 
                care professional' means an individual who is licensed, 
                accredited, or certified under State law to provide 
                specified health care services and who is operating 
                within the scope of such licensure, accreditation, or 
                certification.

``SEC. 2799. ENFORCEMENT.

    ``(a) In General.--Subject to subsection (b), with respect to 
specific individual health insurance coverage the primary State for 
such coverage has sole jurisdiction to enforce the primary State's 
covered laws in the primary State and any secondary State.
    ``(b) Secondary State's Authority.--Nothing in subsection (a) shall 
be construed to affect the authority of a secondary State to enforce 
its laws as set forth in the exception specified in section 2796(b)(1).
    ``(c) Court Interpretation.--In reviewing action initiated by the 
applicable secondary State authority, the court of competent 
jurisdiction shall apply the covered laws of the primary State.
    ``(d) Notice of Compliance Failure.--In the case of individual 
health insurance coverage offered in a secondary State that fails to 
comply with the covered laws of the primary State, the applicable State 
authority of the secondary State may notify the applicable State 
authority of the primary State.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to individual health insurance coverage offered, issued, or sold 
after the date that is one year after the date of the enactment of this 
Act.
    (c) GAO Ongoing Study and Reports.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct an ongoing study concerning the effect of the 
        amendment made by subsection (a) on--
                    (A) the number of uninsured and underinsured;
                    (B) the availability and cost of health insurance 
                policies for individuals with preexisting medical 
                conditions;
                    (C) the availability and cost of health insurance 
                policies generally;
                    (D) the elimination or reduction of different types 
                of benefits under health insurance policies offered in 
                different States; and
                    (E) cases of fraud or abuse relating to health 
                insurance coverage offered under such amendment and the 
                resolution of such cases.
            (2) Annual reports.--The Comptroller General shall submit 
        to Congress an annual report, after the end of each of the 5 
        years following the effective date of the amendment made by 
        subsection (a), on the ongoing study conducted under paragraph 
        (1).

SEC. 514. SECA TAX DEDUCTION FOR HEALTH INSURANCE COSTS.

    (a) In General.--Subsection (l) of section 162 of the Internal 
Revenue Code of 1986 (relating to special rules for health insurance 
costs of self-employed individuals) is amended by striking paragraph 
(4) and by redesignating paragraph (5) as paragraph (4).
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this 
title.

                     TITLE VI--WORKFORCE INTEGRITY

SEC. 601. E-VERIFY PROGRAM MADE PERMANENT.

    Section 401(b) of the Illegal Immigration Reform and Immigrant 
Responsibility Act of 1996 (division C of Public Law 104-208; 8 U.S.C. 
1324a note) is amended--
            (1) in the subsection heading, by striking ``; 
        Termination''; and
            (2) by striking the second sentence.

SEC. 602. VERIFICATION UNDER E-VERIFY PROGRAM MADE POSSIBLE OVER 
              TELEPHONE.

    Section 404(d) of such Act is amended--
            (1) in paragraph (3), by striking the ``and'' at the end;
            (2) in paragraph (4)(C), by striking period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(5) in such a manner that the confirmation or 
        noncomfirmation may be provided by telephone.''.

SEC. 603. GRACE PERIOD TO CORRECT PAPERWORK.

    Any small business concern that violates any provision of the 
Immigration and Nationality Act relating to the filing of an 
application, petition, or other paperwork, resulting in the assessment 
of a fine or penalty shall not be subject to that fine or other penalty 
if that small business concern remedies that violation during the 30-
day period beginning on the date on which notice of the violation is 
received by the small business concern.

              TITLE VII--INTELLECTUAL PROPERTY PROTECTION

SEC. 701. LIMITS ON PATENT LEGISLATION.

    It is the sense of Congress that the Congress should make no law to 
lessen the protections available for new products or processes under 
the patent laws of the United States or to reduce the term of any 
existing patent.

SEC. 702. EXPEDITED PATENT FILING PROCEDURES FOR SMALL BUSINESS 
              CONCERNS.

    There is established in the United States Patent and Trademark 
Office a Patent Ombudsman Program, which shall consist of the Patent 
Ombudsman Pilot Program announced by the United States Patent and 
Trademark Office on October 27, 2009, to be headed by an Ombudsman 
appointed by the Director of the United States Patent and Trademark 
Office. The duties of the Ombudsman shall include providing support and 
services relating to patent filings to small business concerns.

              TITLE VIII--INCENTIVES FOR ENERGY EFFICIENCY

                          Subtitle A--Vehicles

SEC. 801. CONSUMER INCENTIVES TO PURCHASE ADVANCED TECHNOLOGY VEHICLES.

    (a) New Qualified Hybrid Motor Vehicles.--
            (1) Extension of alternative vehicle credit.--Subsection 
        (j) of section 30B of the Internal Revenue Code of 1986, as 
        amended by subsection (b), is amended by striking paragraph 
        (3).
            (2) Increase in credit amount.--Subparagraph (A) of section 
        30B(d)(2) of such Code is amended by striking ``the sum of'' 
        and inserting ``150 percent of the sum of''.
    (b) Elimination on Number of New Qualified Hybrid and Advanced Lean 
Burn Technology Vehicles Eligible for Alternative Motor Vehicle 
Credit.--
            (1) In general.--Section 30B of the Internal Revenue Code 
        of 1986 is amended by striking subsection (f) and by 
        redesignating subsections (g) through (k) as subsections (f) 
        through (j), respectively.
            (2) Conforming amendments.--
                    (A) Paragraphs (4) and (6) of section 30B(h) of the 
                Internal Revenue Code of 1986 are each amended by 
                striking ``(determined without regard to subsection 
                (g))'' and inserting ``determined without regard to 
                subsection (f))''.
                    (B) Section 38(b)(25) of such Code is amended by 
                striking ``section 30B(g)(1)'' and inserting ``section 
                30B(f)(1)''.
                    (C) Section 55(c)(2) of such Code is amended by 
                striking ``section 30B(g)(2)'' and inserting ``section 
                30B(f)(2)''.
                    (D) Section 1016(a)(36) of such Code is amended by 
                striking ``section 30B(h)(4)'' and inserting ``section 
                30B(g)(4)''.
                    (E) Section 6501(m) of such Code is amended by 
                striking ``section 30B(h)(9)'' and inserting ``section 
                30B(g)(9)''.
    (c) Flexible Fuel Vehicle Credit.--
            (1) In general.--Subpart B of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 (relating to 
        foreign tax credit, etc.) is amended by adding at the end the 
        following new section:

``SEC. 30E. FLEXIBLE FUEL VEHICLE CREDIT.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the GEM flexible fuel vehicle credit.
    ``(b) GEM Flexible Fuel Vehicle Credit.--
            ``(1) In general.--For the purposes of subsection (a), the 
        GEM flexible fuel vehicle credit determined under this 
        subsection for the taxable year is the credit amount determined 
        under paragraph (2) with respect to a GEM flexible fuel vehicle 
        placed in service by the taxpayer during the taxable year.
            ``(2) Credit amount.--In the case of a new qualified GEM 
        flexible fuel vehicle which is a passenger automobile or light 
        truck and which has a gross vehicle weight rating of not more 
        than 8,500 pounds, the amount shall be $1,000.
    ``(c) Definitions.--For purposes of this section:
            ``(1) GEM flexible fuel vehicle.--The term `GEM flexible 
        fuel vehicle' means a motor vehicle warrantied by its 
        manufacturer to operate on any combination of gasoline, E85, 
        M85, biodiesel, and hydrogen and its blends.
            ``(2) E85.--The term `E85' means a fuel blend containing 85 
        percent ethanol and 15 percent gasoline by volume.
            ``(3) M85.--The term `M85' means a fuel blend containing 85 
        percent methanol and 15 percent gasoline by volume.''.
            (2) Clerical amendment.--The table of sections for subpart 
        B of part IV of subchapter A of chapter 1 of the Internal 
        Revenue Code of 1986 (relating to foreign tax credit, etc.), is 
        amended by adding at the end the following new item:

``Sec. 30E. Flexible fuel vehicle credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2009, in taxable 
years ending after such date.

                         Subtitle B--Extensions

SEC. 811. MAKE PERMANENT THE TAX CREDIT FOR RESIDENTIAL ENERGY-
              EFFICIENT PROPERTY.

    Section 25D is amended by striking subsection (g).

SEC. 812. MAKE PERMANENT THE ENERGY EFFICIENCY CREDIT FOR EXISTING 
              HOMES.

    Section 25C is amended by striking subsection (g).

SEC. 813. MAKE PERMANENT THE ENERGY EFFICIENCY COMMERCIAL BUILDINGS 
              DEDUCTION.

    Section 179D is amended by striking subsection (h).

                   TITLE IX--GUIDANCE ABOUT NEW RULES

SEC. 901. GUIDANCE AND ADVICE ABOUT NEW RULES.

    (a) Determination Regarding Impact of New Rules.--The head of each 
department or agency of the Federal Government may not issue a rule 
until that head has conducted a study to determine whether the rule 
will have an unduly burdensome effect on small business concerns. If 
that head determines that such an effect would occur, the head shall 
submit to the Administrator, not later than the date that is 3 months 
after the date that determination is made, guidance on how that effect 
may be mitigated.
    (b) Advice.--The Administrator shall, on request, provide such 
other advice to small business concerns about those matters as the 
Administrator determines appropriate.
    (c) Publication.--The Administrator shall publish and maintain all 
guidance received under subsection (a) and all advice provided under 
subsection (b) on the public Internet Web site of the Administrator, in 
a manner that ensures the continuing availability of that guidance to 
small business concerns.

                   TITLE X--SMALL BUSINESS PROVISIONS

             Subtitle A--Small Business General Provisions

SEC. 1001. ADMINISTRATION PROHIBITED FROM CAPPING EXECUTIVE 
              COMPENSATION.

    In carrying out any program under the Small Business Act or the 
Small Business Investment Act of 1958, the Administrator may not impose 
any limit on executive compensation by any small business concern.

SEC. 1002. REDUCTION OF REGULATORY BURDEN.

    (a) GAO Report.--The Comptroller General of the United States shall 
conduct a study of each regulation of each Federal agency or department 
to determine the burden that such regulation imposes on small business 
concerns. The Comptroller General shall submit a report containing 
information on such burden to the Administrator not later than the date 
that is 9 months after the date of enactment of this Act.
    (b) SBA Recommendations.--Not later than 6 months after receiving 
the report under subsection (a), the Administrator shall publish and 
maintain on the public Internet Web site of the Administrator 
recommendations on how to reduce the burden imposed by such regulation 
on small business concerns.
    (c) Reduction of Paperwork.--In carrying out any program under the 
Small Business Act or the Small Business Investment Act of 1958, the 
Administrator, acting through the Chief Counsel of the Office of 
Advocacy in the Small Business Administration, shall take any actions 
the Administrator determines appropriate to reduce the amount of 
paperwork (including any application, filing, or petition) that a small 
business concern may be required to complete by any Federal department 
or agency. Such steps shall include providing for the replacement of 
such paperwork with electronic or telephone filing or reporting.

SEC. 1003. LITIGATION BURDEN ON SMALL BUSINESS CONCERNS TO BE LIMITED 
              TO CURRENT LEVELS.

    It is the sense of the Congress that the Congress should not pass 
legislation altering substantive or procedural law that causes more 
small business concerns to be involved in litigation.

SEC. 1004. EXPANSION OF VOLUNTEER REPRESENTATION AND BENCHMARK REPORTS.

    (a) Expansion of Volunteer Representation.--Section 8(b)(1)(B) of 
the Small Business Act (15 U.S.C. 637(b)(1)(B)) is amended--
            (1) by inserting ``(i)'' after ``(B)''; and
            (2) by adding at the end the following:
                    ``(ii) The Administrator shall ensure that SCORE, 
                established under this subparagraph, carries out a plan 
                to increase the number of mentors and, on an annual 
                basis, reports to the Administrator on the 
                implementation of this subparagraph.''.
    (b) Benchmark Reports.--Section 8(b)(1)(B) of the Small Business 
Act (15 U.S.C. 637(b)(1)(B)), as amended by this Act, is further 
amended by adding at the end the following:
                    ``(iii) The Administrator shall ensure that SCORE, 
                established under this subparagraph, establishes 
                benchmarks for use in evaluating the performance of its 
                activities and of its volunteers. The benchmarks shall 
                include benchmarks related to the hours spent mentoring 
                by volunteers and benchmarks relating to the 
                performance of the persons assisted by SCORE. SCORE 
                shall report, on an annual basis, to the Administrator 
                the extent to which the benchmarks established under 
                this clause are being attained.''.

SEC. 1005. MENTORING AND NETWORKING.

    Section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 
637(b)(1)(B)), as amended by this Act, is further amended by adding at 
the end the following:
                    ``(iv) The Administrator shall ensure that SCORE, 
                established under this subparagraph, establishes a 
                mentoring program for small business concerns that 
                provides one-on-one advice to small business concerns 
                from qualified counselors. For purposes of this clause, 
                qualified counselors are counselors with at least 10 
                years experience in the industry sector or area of 
                responsibility of the small business concern seeking 
                advice.
                    ``(v) The Administrator shall carry out a 
                networking program through SCORE, established under 
                this subparagraph, that provides small business 
                concerns with the opportunity to make business contacts 
                in their industry or geographic region.''.

SEC. 1006. NAME OF PROGRAM CHANGED TO SCORE.

    (a) Name Change.--The Small Business Act is amended as follows:
            (1) In section 8(b)(1)(B) (15 U.S.C. 637(b)(1)(B)), by 
        striking ``Executives (SCORE)'' and inserting ``Executives (in 
        this Act referred to as `SCORE')''.
            (2) In section 7(m)(3)(A)(i)(VIII) (15 U.S.C. 
        636(m)(3)(A)(i)(VIII)), by striking ``the Service Corps of 
        Retired Executives'' and inserting ``SCORE''.
            (3) In section 20 (15 U.S.C. 631 note)--
                    (A) in subsection (d)(1)(E), by striking ``the 
                Service Corps of Retired Executives program'' and 
                inserting ``SCORE''; and
                    (B) in subsection (e)(1)(E), by striking ``the 
                Service Corps of Retired Executives program'' and 
                inserting ``SCORE''.
            (4) In section 33(b)(2) (15 U.S.C. 657c(b)(2)), by striking 
        ``Service Corps of Retired Executives'' and inserting 
        ``SCORE''.
    (b) Elimination of ACE.--Section 8(b)(1)(B) of the Small Business 
Act (15 U.S.C. 637(b)(1)(B)), as amended, is further amended by 
striking ``and an Active Corps of Executives (ACE)''.

SEC. 1007. AUTHORIZATION OF APPROPRIATIONS.

    Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended by inserting the following new subsection after subsection (e):
    ``(f) Authorization of Appropriations for Score.--There is 
authorized to be appropriated $11,000,000 for SCORE under section 
8(b)(1) for each of the fiscal years 2010 and 2011.''.

                    Subtitle B--Small Business Goals

SEC. 1011. SMALL BUSINESS GOALS.

    Section 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)) is 
amended--
            (1) in paragraph (1), by striking ``23 percent'' and 
        inserting ``30 percent''; and
            (2) by adding at the end the following:
    ``(3)(A) Notwithstanding paragraph (1), the President may permit 
the National Aeronautics and Space Administration and the Department of 
Energy to treat the Governmentwide goal for participation by small 
business concerns as though such goal were 23 percent.
    ``(B) Not later than 60 days after providing permission under 
subparagraph (A), the President shall provide notice to the Office of 
Advocacy in the Small Business.''.

SEC. 1012. AGENCY GOAL NEGOTIATION.

    (a) Negotiation.--Section 15(g)(1) of the Small Business Act (15 
U.S.C. 644(g)(1)) is amended by striking ``The President shall annually 
establish Governmentwide goals for procurement contracts'' and 
inserting ``The President shall before the close of each fiscal year 
establish new Governmentwide procurement goals for the following fiscal 
year for procurement contracts.''.
    (b) Minimum Level.--Section 15(g)(1) of the Small Business Act (15 
U.S.C. 644(g)(1)), as amended by this Act, is further amended by 
striking ``Notwithstanding the Governmentwide goal, each agency shall 
have an annual goal'' and inserting ``Each agency shall have an annual 
goal, not lower than the Governmentwide goal,''.

SEC. 1013. PROCEDURES AND METHODS FOR GOAL ACHIEVEMENT.

    (a) Goal Responsibility.--Section 15(g)(2) of the Small Business 
Act (15 U.S.C. 644(g)(2)) is amended by adding the following after the 
first sentence: ``The goals established by the head of each agency 
shall be apportioned within the agency to a contracting office or 
offices (as that term is defined in section 2.101 of title 48, Code of 
Federal Regulations on January 1, 2009) that reports to a career 
appointee in the Senior Executive Service.''.
    (b) Senior Executive Service.--
            (1) Purposes.--Section 3131 of title 5, United States Code, 
        is amended--
                    (A) in paragraph (13) by striking the ``and'' at 
                the end;
                    (B) in paragraph (14) by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(15) ensure that the Government achieves the small 
        business procurement goals set forth in section 15 of the Small 
        Business Act (15 U.S.C. 644).''.
            (2) Training.--Section 3396(a) of title 5, United States 
        Code, is amended by adding at the end the following: ``The 
        training provided to senior executives shall include Federal 
        procurement policy, including the procurement provisions of the 
        Small Business Act.''.
            (3) Limitation on sabbaticals.--Section 3396(c)(2) of title 
        5, United States Code is amended--
                    (A) in subparagraph (B)(iii) by striking the 
                ``and'' at the end;
                    (B) in subparagraph (C) by striking the period at 
                the end and inserting ``; or''; and
                    (C) by inserting after subparagraph (C) the 
                following:
                    ``(D) who oversees a contracting office that did 
                not meet its small business procurement goals 
                established annually in accordance with the procedures 
                of section 15(g)(2) of the Small Business Act (15 
                U.S.C. 644(g)(2)).''.
            (4) Limitation on incentive awards.--An employee in the 
        Senior Executive Service shall not be eligible for any 
        incentive award specified in subchapter I, chapter 45 of title 
        5, United States Code, if the contracting office which reports 
        to that member of the Senior Executive Service fails to meet 
        the procurement goals established annually in accordance with 
        the procedures of section 15(g)(2) of the Small Business Act 
        (15 U.S.C. 644(g)(2)). Any member of the Senior Executive 
        Service, whether career or noncareer, to whom that member of 
        the Senior Executive Service reports also shall not be eligible 
        for any incentive award specified in subchapter I, chapter 45 
        of title 5, United States Code.

SEC. 1014. REPORTING REQUIREMENTS.

    Section 15(h) of the Small Business Act (15 U.S.C. 644(h)) is 
amended by adding at the end the following:
    ``(4) By November 1 of each year, the head of each Federal agency 
shall submit to Congress a report specifying the percentage of 
contracts awarded by that agency for the immediate preceding fiscal 
year that were awarded to small business concerns. If the percentage is 
less than the goal established by the head of the agency pursuant to 
this section, the head of the agency shall, in the report, explain why 
the agency did not reach the goal and what will be done to ensure that 
the goal for the following fiscal year will be achieved.''.

                     Subtitle C--Contract Bundling

SEC. 1021. DEFINITIONS OF BUNDLING OF CONTRACT REQUIREMENTS.

    Section 3(o) of the Small Business Act (15 U.S.C. 632(o)) is 
amended to read as follows:
    ``(o) Definitions of Bundling of Contract Requirements and Related 
Terms.--For purposes of this Act:
            ``(1) Bundled contract.--
                    ``(A) In general.--The term `bundled contract' 
                means a contract or order that is entered into to meet 
                procurement requirements that are consolidated in a 
                bundling of contract requirements, without regard to 
                its designation by the procuring agency or whether a 
                study of the effects of the solicitation on civilian or 
                military personnel has been made.
                    ``(B) Exceptions.--The term does not include--
                            ``(i) a contract or order with an aggregate 
                        dollar value below the dollar threshold 
                        specified in paragraph (4); or
                            ``(ii) a contract or order that is entered 
                        into to meet procurement requirements, all of 
                        which are exempted requirements under paragraph 
                        (5).
            ``(2) Bundling of contract requirements.--
                    ``(A) In general.--The term `bundling of contract 
                requirements' means the use of any bundling methodology 
                to satisfy 2 or more procurement requirements for new 
                or existing goods or services, including any 
                construction services, that is likely to be unsuitable 
                for award to a small business concern due to--
                            ``(i) the diversity, size, or specialized 
                        nature of the elements of the performance 
                        specified;
                            ``(ii) the aggregate dollar value of the 
                        anticipated award;
                            ``(iii) the geographical dispersion of the 
                        contract or order performance; or
                            ``(iv) any combination of the factors 
                        described in clauses (i), (ii), or (iii).
                    ``(B) Exceptions.--The term does not include--
                            ``(i) the use of a bundling methodology for 
                        an anticipated award with an aggregate dollar 
                        value below the threshold specified in 
                        paragraph (4); or
                            ``(ii) the use of a bundling methodology to 
                        meet procurement requirements, all of which are 
                        exempted under paragraph (5).
            ``(3) Bundling methodology.--The term `bundling 
        methodology' means--
                    ``(A) a solicitation to obtain offers for a single 
                contract or order, or a multiple award contract or 
                order;
                    ``(B) a solicitation of offers for the issuance of 
                a task or a delivery order under an existing single or 
                multiple award contract or order; or
                    ``(C) the creation of any new procurement 
                requirements that permit a consolidation of contract or 
                order requirements.
            ``(4) Dollar threshold.--The term `dollar threshold' 
        means--
                    ``(A) $65,000,000 if solely for construction 
                services; and
                    ``(B) $1,500,000 in all other cases.
            ``(5) Exempted requirements.--The term `exempted 
        requirement' means one or more of the following:
                    ``(A) A procurement requirement solely for items 
                that are not commercial items (as the term `commercial 
                item' is defined in section 4(12) of the Office of 
                Federal Procurement Policy Act (41 U.S.C. 403(12)) but 
                this subparagraph shall not apply to any procurement 
                requirement for a contract for goods or services 
                provided by a business classified in sector 23 of the 
                North American Industrial Classification System.
                    ``(B) A procurement requirement with respect to 
                which a determination that it is unsuitable for award 
                to a small business concern has previously been made by 
                the agency. However, the Administrator shall have 
                authority to review and reverse such a determination 
                for purposes of this paragraph and, if the 
                Administrator does reverse that determination, the term 
                `exempted requirement' shall not apply to that 
                procurement requirement.
            ``(6) Procurement requirement.--The term `procurement 
        requirement' means a determination by an agency that a 
        specified good or service is needed to satisfy the mission of 
        the agency.''.

SEC. 1022. JUSTIFICATION.

    (a) Statement of Bundled Contract Requirements.--Section 15(a) of 
the Small Business Act (15 U.S.C. 644(a)) is amended--
            (1) by striking ``is in a quantity or estimated dollar 
        value the magnitude of which renders small business prime 
        contract participation unlikely'' and inserting ``would now be 
        combined with other requirements for goods and services'';
            (2) by striking ``(2) why delivery schedules'' and 
        inserting ``(2) the names, addresses and size of the incumbent 
        contract holders, if applicable; (3) a description of the 
        industries that might be interested in bidding on the contract 
        requirements; (4) the number of small businesses listed in the 
        industry categories that could be excluded from future bidding 
        if the contract is combined or packaged, including any small 
        business bidders that had bid on previous procurement 
        requirements that are included in the bundling of contract 
        requirements; (5) why delivery schedules'';
            (3) by striking ``(3) why the proposed acquisition'' and 
        inserting ``(6) why the proposed acquisition'';
            (4) by striking ``(4) why construction'' and inserting 
        ``(7) why construction'';
            (5) by striking ``(5) why the agency'' and inserting ``(8) 
        why the agency'';
            (6) by striking ``justified'' and inserting ``justified. 
        The statement also shall set forth the proposed procurement 
        strategy required by subsection (e) and, if applicable, the 
        specifications required by subsection (e)(3). Concurrently, the 
        statement shall be made available to the public, including 
        through dissemination in the Federal contracting opportunities 
        database.''; and
            (7) by inserting after ``prime contracting opportunities.'' 
        the following: ``If no notification of the procurement and 
        accompanying statement is received, but the Administrator 
        determines that there is cause to believe the contract combines 
        requirements or a contract (single or multiple award) or task 
        or delivery order for construction services or includes 
        unjustified bundling, then the Administrator can demand that 
        such a statement of work goods or services be completed by the 
        procurement activity and sent to the Procurement Center 
        Representative and the solicitation process postponed for at 
        least 10 days but no more than 30 days to allow the 
        Administrator to review the statement and make recommendations 
        as described in this section before procurement is 
        continued.''.
    (b) Substantial Measurable Benefits.--Section 15(e)(2)(C) of the 
Small Business Act (15 U.S.C. 644(e)) is amended by adding at the end 
the following: ``Cost savings shall not include any reduction in the 
use of military interdepartmental purchase requests or any similar 
transfer funds among Federal agencies for the use of a contract issued 
by another Federal agency.''.

SEC. 1023. APPEALS.

    Section 15(a) of the Small Business Act (15 U.S.C. 644(a)), as 
amended by this Act, is further amended--
            (1) by striking ``If a proposed procurement includes in its 
        statement'' and inserting ``If a proposed procurement would 
        adversely affect one or more small business concerns, 
        including, but not limited to, the potential loss of an 
        existing contract, or if a proposed procurement includes in its 
        statement''; and
            (2) by inserting before ``Whenever the Administrator and 
        the contracting procurement agency fail to agree,'' the 
        following: ``If a small business concern would be adversely 
        affected, directly or indirectly, by the procurement as 
        proposed, and that small business concern or a trade 
        association of which that small business concern is a member so 
        requests, the Administrator may take action to further the 
        interests of the small business.''.

SEC. 1024. THIRD-PARTY REVIEW.

    Section 8(d) of the Contract Disputes Act of 1978 (41 U.S.C. 
607(d)) is amended--
            (1) by striking ``(d) The Armed Services Board'' and 
        inserting ``(d)(1) The Armed Services Board''; and
            (2) by inserting at the end the following:
    ``(2) Contract Bundling.--
            ``(A) In general.--Whenever the head of a contracting 
        agency makes a decision in accordance with section 15(a) of the 
        Small Business Act concerning the Administrator of the Small 
        Business Administration's challenge to a bundling of contract 
        requirements, the Administrator, within ten days after such 
        decision may file a challenge with the appropriate agency board 
        of contract appeals.
            ``(B) Procedure.--The board shall provide the Administrator 
        and the head of the contracting agency the opportunity to 
        provide their views on the disputed contract. No oral testimony 
        or oral argument shall be permitted. The board shall render its 
        decision within thirty days after the appeal has been filed. 
        The decision of the board shall be final.''.

               Subtitle D--Small Business Subcontracting

SEC. 1031. GOOD FAITH COMPLIANCE WITH SUBCONTRACTING PLANS.

    Section 8(d)(10) of the Small Business Act (15 U.S.C. 637(d)(10)) 
is amended by--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) not later than 180 days after enactment of 
                the Small Business Bill of Rights, the Administrator 
                shall, after the opportunity for notice and comment, 
                promulgate regulations governing the Administrator's 
                review of subcontracting plans including the standards 
                for determining good faith compliance with the 
                subcontracting plans.''.

SEC. 1032. LIMITATIONS ON SUBCONTRACTING.

    (a) Regulations for Contract Administration.--Section 15(o) of the 
Small Business Act (15 U.S.C. 644(o)) is amended by adding at the end 
the following:
    ``(4) Not later than 180 days after enactment of the Small Business 
Bill of Rights, the Administrator shall, after the opportunity for 
notice and comment, promulgate regulations that specify the 
responsibilities that each agency and the Administration personnel will 
have in enforcing the restrictions set forth in paragraph (1). Such 
regulations also shall specify reporting and recordkeeping requirements 
for contracts covered by paragraph (1).''.
    (b) Contractor Penalties.--Section 16 of the Small Business Act (15 
U.S.C. 645) is amended by adding at the end the following:
    ``(g) A small business that violates the requirements of section 
15(o)(1) of the Small Business Act shall be subject to the penalties 
set forth in subsection (d).''.

SEC. 1033. CRIMINAL VIOLATIONS.

    Section 1001(a) of title 18, United States Code, is amended--
            (1) in paragraph (2) by striking the ``or'' at the end;
            (2) in paragraph (3) by adding ``or'' at the end;
            (3) inserting after paragraph (3) the following:
            ``(4) makes in writing or electronically a false statement 
        concerning status as a small business concern or compliance 
        with the requirements of the Small Business Act in an effort to 
        obtain, retain, or complete a Federal Government contract;''; 
        and
            (4) by adding at the end the following: ``For violation of 
        paragraph (4) of this subsection, notwithstanding section 
        3571(e), the fine under this title shall be the total value of 
        the contract or $1,000,000, whichever is greater.''.

                           TITLE XI--OFFSETS

SEC. 1101. TRANSFER OF UNOBLIGATED STIMULUS FUNDS.

    (a) Rescission.--Effective on the date of the enactment of this 
Act, any unobligated balances available on such date of funds made 
available by division A of the American Recovery and Reinvestment Act 
of 2009 (Public Law 111-5), other than under the heading ``Federal 
Highway Administration-Highway Infrastructure Investment'' in title XII 
of such division, are rescinded and such provisions are repealed.
    (b) Repeal.--The provisions of division B of the American Recovery 
and Reinvestment Act of 2009 (Public Law 111-5), other than titles I 
and II of such division are repealed.
    (c) Transfer of Funds.--The total amount rescinded by this section 
shall be deposited in the Federal Treasury.

                       TITLE XII--DEBT REDUCTION

SEC. 1201. REPEAL OF THE TROUBLED ASSET RELIEF PROGRAM.

    (a) In General.--Notwithstanding any other provision of law, the 
authorities provided under section 101(a) of the Emergency Economic 
Stabilization Act of 2008 (excluding section 101(a)(3)) and under 
section 102 of such Act shall terminate on the date of enactment of 
this Act.
    (b) Returned TARP Money To Be Used for Deficit Reduction.--
Notwithstanding any other provision of law, all assistance received 
under title I of the Emergency Economic Stabilization Act of 2008 that 
is repaid on or after the date of enactment of this Act, along with any 
dividends, profits, or other funds paid to the Government based on such 
assistance on or after the date of enactment of this Act, shall be 
deposited in the Treasury to reduce the deficit.
    (c) Lowering of National Debt Limit To Correspond to TARP 
Repayments.--Section 3101 of title 31, United States Code, is amended--
            (1) in subsection (b), by inserting after the dollar 
        limitation contained in such subsection the following: ``, as 
        such amount is reduced by the amount described under subsection 
        (d)''; and
            (2) by adding at the end the following new subsection:
    ``(d) The amount described under this subsection is the amount that 
equals the amount of all assistance received under title I of the 
Emergency Economic Stabilization Act of 2008 that is repaid on or after 
the date of enactment of the Small Business Bill of Rights, along with 
any dividends, profits, or other funds paid to the Government based on 
such assistance on or after the date of enactment of the Small Business 
Bill of Rights.''.

                        TITLE XIII--DEFINITIONS

SEC. 1301. DEFINITIONS.

    In this Act:
            (1) The term ``Administrator'' means the Administrator of 
        Small Business Administration.
            (2) The term ``small business concern'' has the meaning 
        given such term under section 3 of the Small Business Act.
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