1.Short title; table of
contents
(a)This Act may be cited
as the Small Business Bill of
Rights
.
(b)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.
2.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.
<enum>I</enum><header>Lower
Tax Environment</header>
<subtitle id="H13B42077B0DE41619F077165C3162F5C"><enum>A</enum><header>Alternative
Minimum Tax Relief</header>
<section id="HB4908808B3144158B2CEB663FD47B227"><enum>101.</enum><header>Extension of
alternative minimum tax relief for nonrefundable personal credits</header>
<subsection id="H616559731EED46F9940D2686884884BE"><enum>(a)</enum><header>In
general</header><text>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—</text>
<paragraph id="HEFA6DDE4969D492E8A4F2526B08AB69F"><enum>(1)</enum><text>by striking
<quote>or 2009</quote> and inserting <quote>2009, 2010, or 2011</quote>,
and</text>
</paragraph><paragraph id="H4D49CB8133854477A286868A210D0B5A"><enum>(2)</enum><text>by striking
<quote>2009</quote> in the heading thereof and inserting
<quote>2011</quote>.</text>
</paragraph></subsection><subsection id="HF67D737E06CA4B239C1CD4C6E12F4E8C"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><section id="H78302A4D8366411889254C146A81EDE7"><enum>102.</enum><header>Extension of
increased alternative minimum tax exemption amount</header>
<subsection id="H2A970B652FB044048E30041BA7B62C7E"><enum>(a)</enum><header>In
general</header><text>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 <quote>2009</quote> and inserting <quote>2009, 2010, and
2011</quote>.</text>
</subsection><subsection id="H8A9381AF4767448BB9DD5E07EB714B29"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section></subtitle><subtitle id="H863F8775598044EA9A539E6DFBF60BBC"><enum>B</enum><header>Capital
Gains</header>
<section id="H20EE49F595ED424799FB50BCC2754675"><enum>111.</enum><header>Extension of
reduction in taxes on dividends and capital gains</header><text display-inline="no-display-inline">Section 303 of the Jobs and Growth Tax
Relief Reconciliation Act of 2003 is amended by striking <quote>December 31,
2010</quote> and inserting <quote>December 31, 2011</quote>.</text>
</section><section id="H79D43DC1A0994BE987F8963B8DDF9522"><enum>112.</enum><header>Temporary
reduction of capital gains tax on qualified small business stock</header>
<subsection id="HE88C114E9F014107B9E3642C208A49D4"><enum>(a)</enum><header>Temporary
reduced rate for qualified small business stock</header><text display-inline="yes-display-inline">Subparagraph (A)(ii) of section 1(h)(4) of
the Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H07CEFE8AEF8A4A3D8B5A4B0ECD0694E9" style="OLC">
<clause id="HC97DC79ACE19473CA5D9B5ADA554BCCC"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of any taxable year beginning
after December 31, 2020, section 1202 gain,
over</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H470859D3FCEC46B9A60DEEC34B8B8F13"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to taxable
years beginning after December 31, 2010.</text>
</subsection></section></subtitle><subtitle id="H2C5A98B3674E4C96AA13173AACADDC64"><enum>C</enum><header>Tax benefits for
Start-Ups</header>
<section id="HBD4C069D6255408AA6C95D1C3EC04F00"><enum>121.</enum><header>Increase in
amount allowed as deduction for start-up expenditures</header>
<subsection id="HA1B3F7E5C6434F7BAE7E1900A760FC9C"><enum>(a)</enum><header>In
general</header><text>Subsection (b) of section 195 of the Internal Revenue
Code of 1986 is amended by adding at the end the following:</text>
<quoted-block id="H2D3D797411694EC882D7766F2269B8BD" style="OLC">
<paragraph id="HFD12F45A12764F05B009F3521D9921DF"><enum>(3)</enum><header>Special rule for
taxable years beginning in 2009, 2010, or 2011</header><text>In the case of a
taxable year beginning in 2009, 2010, or 2011, paragraph (1)(A)(ii) shall be
applied—</text>
<subparagraph id="HD6B6CDF25FAF475088B7425C26078650"><enum>(A)</enum><text>by substituting
<quote>$20,000</quote> for <quote>$5,000</quote>; and</text>
</subparagraph><subparagraph id="H44E8F034BF724B9BAD3CEB60F7BBF517"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>$75,000</quote> for
<quote>$50,000</quote>.</text>
</subparagraph></paragraph><after-quoted-block></after-quoted-block></quoted-block>
</subsection><subsection id="HA7683513ED4C442BA2A6D5ED06B2F607"><enum>(b)</enum><header>Effective
date</header><text>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.</text>
</subsection></section></subtitle><subtitle id="HD364CFFBD95042EBADCC6E28B99BD666"><enum>D</enum><header>Miscellaneous</header>
<section commented="no" id="H393E753DEE0542F1854CCB4246D64201"><enum>131.</enum><header>GAO to certify
no burden on small business concerns</header><text display-inline="no-display-inline">Clause 3 of Rule XIII of the Rules of the
House of Representatives is amended by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H8A490AFD76A84AB5B3CE34547BF0347D" style="OLC">
<subsection commented="no" id="H5D3BE27874694E94B5A61647CF6D054C"><enum>(i)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HB7977D47E56448FF9AF9AFA60D8F07F1"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph commented="no" id="H098871CEBCB6483288ABED88BB5B7831" indent="up1"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="HEA35262A40784DB4966A5E8585E315E4"><enum>132.</enum><header>Exemption from
taxes imposed after the date of enactment of this Act</header><text display-inline="no-display-inline">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.</text>
</section></subtitle><enum>II</enum><header>Limitation on
Regulations</header>
<section commented="no" id="H2CBFFB6564E844EF957D3C11FEAD5AF6"><enum>201.</enum><header>Limitation on
regulations</header>
<subsection commented="no" id="H0097E3E1BAC1439CA32ECB42BCD995F4"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" id="HA864852B8E75434DB995832EB036F361"><enum>(b)</enum><header>Commonly
required information form</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><enum>III</enum><header>Business Growth
for the Next Generation</header>
<section id="HA7577D35973B438A9764A0CE1263583B"><enum>301.</enum><header>Postponement of
termination of estate tax and generation-skipping transfer taxes</header>
<subsection commented="no" id="H490F996865CF494F90540FC9335F0873"><enum>(a)</enum><header>Application of
EGTRRA Sunset</header><text>Section 901(a)(2) of title IX of the Economic
Growth and Tax Relief Reconciliation Act of 2001 is amended by striking
<quote>December 31, 2010</quote> and inserting <quote>December 31,
2015</quote>.</text>
</subsection><subsection id="HBE7E7AEDFD8541B2B43938F357FA0E30"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to the
estates of decedents dying, gifts made, or generation-skipping transfers, after
December 31, 2010.</text>
</subsection></section><enum>IV</enum><header>Protecting the
Secret Ballot</header>
<section id="H85429E0241BA41D6A4ADFA4DDD4EC2BD"><enum>401.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds that—</text>
<paragraph id="HAFA0523B2F584CA5822F87E23C9152BD"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H61405CF04B3244D3A659B34CD03C292A"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="H53E36698D44C4A4A98CC20E611F92A9B"><enum>(3)</enum><text>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.</text>
</paragraph></section><section id="H562842CEFC8843BC8DB2E5ACADFC6C2A"><enum>402.</enum><header>National Labor
Relations Act</header>
<subsection id="HF992A379623844E58616BDCBA0D7A7F0"><enum>(a)</enum><header>Recognition of
Representative</header>
<paragraph id="H49B006813B3145C19C9E1574D448FC4A"><enum>(1)</enum><header>In
general</header><text>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:
<quote>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</quote>.</text>
</paragraph><paragraph id="H1BEF85C9FA67400BB19560738E055908"><enum>(2)</enum><header>Application</header><text>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.</text>
</paragraph></subsection><subsection id="HE5C2F73891CF4E94ADED209CF9B881AC"><enum>(b)</enum><header>Election
Required</header>
<paragraph id="H5EAFE6B9A1874ECF9F6C42BEF0A8137D"><enum>(1)</enum><header>In
general</header><text>Section 8(b) of the National Labor Relations Act (29
U.S.C. 158(b)) is amended—</text>
<subparagraph id="H2C9CE980633F4B2EB0D00D74A77A34CE"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of paragraph (6);</text>
</subparagraph><subparagraph id="H1477FDD5F6274762A899FD1D288EAFA4"><enum>(B)</enum><text>by striking the
period at the end of paragraph (7) and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="H8CA97144B55A4B9AA17D5DCC8F3C898F"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H0B37D98E52C04895A1E9FF81E3359990" style="OLC">
<paragraph id="H163D43509C164C839BF45A5456259E9B"><enum>(8)</enum><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H78E86FDF9E8248F9A593AC6AD1C6B6A5"><enum>(2)</enum><header>Application</header><text>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.</text>
</paragraph></subsection><subsection id="H0D9812931C944F99B40E71F6B764C2CD"><enum>(c)</enum><header>Secret ballot
election</header><text>Section 9(a) of the National Labor Relations Act (29
U.S.C. 159(a)), is amended—</text>
<paragraph id="H5F591A830D4342218CE30D7D7EA7578D"><enum>(1)</enum><text>by inserting
<quote>(1)</quote> after <quote>(a)</quote>;</text>
</paragraph><paragraph id="HFA999B309A3C4CCAB2E1DD5492C46961"><enum>(2)</enum><text>by inserting after
<quote>designated or selected</quote> the following: <quote>by a secret ballot
election conducted by the National Labor Relations Board in accordance with
this section</quote>; and</text>
</paragraph><paragraph id="H810532CEC3034A369CA16A65486AA3C7"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block id="HCB6C213E372A4F35BCF504FD341F1B97" style="OLC">
<paragraph id="HC717E15BF98141CBBFEA9A5CC040317D"><enum>(2)</enum><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="HB15D32E08F394F0DB970E5C3F18A0025"><enum>403.</enum><header>Regulations</header><text display-inline="no-display-inline">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.</text>
</section><enum>V</enum><header>Healthcare:
Expanding Choice and Lowering Costs</header>
<section id="HC132625484E241A38855AD2A6A492652"><enum>501.</enum><header>Findings and
purpose</header>
<subsection id="H66F3604142EB46AFB1CC6DB9E3E38997"><enum>(a)</enum><header>Findings</header>
<paragraph id="HC09CA57A6EEE40B7A856C59FD62F2818"><enum>(1)</enum><header>Effect on health
care access and costs</header><text>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.</text>
</paragraph><paragraph id="H8ABC3660A50B4A77BFB4DD2E2D9A3D48"><enum>(2)</enum><header>Effect on
interstate commerce</header><text>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.</text>
</paragraph><paragraph id="H71B673DF544249508867B2161D1C17B9"><enum>(3)</enum><header>Effect on
federal spending</header><text>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—</text>
<subparagraph id="H46B492417EB94BD494F551C1233ED97B"><enum>(A)</enum><text>the large number
of individuals who receive health care benefits under programs operated or
financed by the Federal Government;</text>
</subparagraph><subparagraph id="HBC4E3D8ED0304D25A0D878271B90AA7F"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="H2C7B7977E24B4A448049FD32E64D7DED"><enum>(C)</enum><text>the large number
of health care providers who provide items or services for which the Federal
Government makes payments.</text>
</subparagraph></paragraph></subsection><subsection id="H34F263B453A94E7481EF60750002B990"><enum>(b)</enum><header>Purpose</header><text>It
is the purpose of this title to implement reasonable, comprehensive, and
effective health care liability reforms designed to—</text>
<paragraph id="H569A31C9458E4F00809F7F86630FF39B"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H12630BD8DB02437FAC0F409A7CB306B5"><enum>(2)</enum><text>reduce the
incidence of <quote>defensive medicine</quote> and lower the cost of health
care liability insurance, all of which contribute to the escalation of health
care costs;</text>
</paragraph><paragraph id="H3001C003F0714EB2A81F6A4E2DABE65A"><enum>(3)</enum><text>ensure that
persons with meritorious health care injury claims receive fair and adequate
compensation, including reasonable noneconomic damages;</text>
</paragraph><paragraph id="HF643DB9D6A314D6198C9BD2A998F068F"><enum>(4)</enum><text>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</text>
</paragraph><paragraph id="H7A544DF757D5483294BE24FF01CBED32"><enum>(5)</enum><text>provide an
increased sharing of information in the health care system which will reduce
unintended injury and improve patient care.</text>
</paragraph></subsection></section><section id="HF2FD800B68CD4644BCD15A070CFE5EBA"><enum>502.</enum><header>Encouraging
speedy resolution of claims</header><text display-inline="no-display-inline">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—</text>
<paragraph id="HCFA12653F0E044C7999C9F1BFEF69F24"><enum>(1)</enum><text>upon proof of
fraud;</text>
</paragraph><paragraph id="HCD8F383F65A045FFB02F13820CBC1CF8"><enum>(2)</enum><text>intentional
concealment; or</text>
</paragraph><paragraph id="H9D4FB4CAD2374A12A95C6EC036C3EA69"><enum>(3)</enum><text>the presence of a
foreign body, which has no therapeutic or diagnostic purpose or effect, in the
person of the injured person.</text>
</paragraph><continuation-text continuation-text-level="section">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.</continuation-text></section><section id="HABF36DADFA224367A51CBAE50DD9C56C"><enum>503.</enum><header>Compensating
patient injury</header>
<subsection id="H6EB6827132FF4D52B17D04163390307D"><enum>(a)</enum><header>Unlimited amount
of damages for actual economic losses in health care lawsuits</header><text>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).</text>
</subsection><subsection id="H05361DE4650441C78CC5F7D69F669441"><enum>(b)</enum><header>Additional
noneconomic damages</header><text>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.</text>
</subsection><subsection id="H006EFEB1E8044317821C2295BBED5A16"><enum>(c)</enum><header>No discount of
award for noneconomic damages</header><text>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.</text>
</subsection><subsection id="H01567FF5792C451FB9518A44C2718CD2"><enum>(d)</enum><header>Fair share
rule</header><text>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.</text>
</subsection></section><section id="H19F9351D149E4E0A8534D6434C69FB09"><enum>504.</enum><header>Maximizing
patient recovery</header>
<subsection id="HD4021F49EEC4436E8D61D854BFB99AE3"><enum>(a)</enum><header>Court
supervision of share of damages actually paid to claimants</header><text>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:</text>
<paragraph id="HA599AB474A40472287BD029B76A81D60"><enum>(1)</enum><text>40 percent of the
first $50,000 recovered by all such claimants.</text>
</paragraph><paragraph id="HD9FF274C9C2A4D16B9C4E8FD331A2C53"><enum>(2)</enum><text>33<fraction>1/3</fraction>
percent of the next $50,000 recovered by all such claimants.</text>
</paragraph><paragraph id="H11E4FED726E4407BA4727B9F1E7EBCFC"><enum>(3)</enum><text>25 percent of the
next $500,000 recovered by all such claimants.</text>
</paragraph><paragraph id="H472190B893634172A7AE53B0A91FED36"><enum>(4)</enum><text>15 percent of any
amount by which the recovery by all such claimants is in excess of
$600,000.</text>
</paragraph></subsection><subsection id="HEE36E9414FE54DFE939DBAC44B9554B0"><enum>(b)</enum><header>Applicability</header><text>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.</text>
</subsection></section><section id="H4A49D2C090F74657B305ACA28E056A4E"><enum>505.</enum><header>Additional
health benefits</header><text display-inline="no-display-inline">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)).</text>
</section><section id="H612C5917F83A4B88A3B0BDF3FC823960"><enum>506.</enum><header>Punitive
damages</header>
<subsection id="H3D423768C577436D8836D0CB64F7C769"><enum>(a)</enum><header>In
general</header><text>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—</text>
<paragraph id="HE7CF427A14054045976A2969C4B04071"><enum>(1)</enum><text>whether punitive
damages are to be awarded and the amount of such award; and</text>
</paragraph><paragraph id="H466CAD87DB7845F18F2D33567B4DBA5E"><enum>(2)</enum><text>the amount of
punitive damages following a determination of punitive liability.</text>
</paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text></subsection><subsection id="H7031EE26999143D29CF1403D155B869D"><enum>(b)</enum><header>Determining
Amount of Punitive Damages</header>
<paragraph id="HDE8CB2F19D94433AB10556D63A93F8AB"><enum>(1)</enum><header>Factors
considered</header><text>In determining the amount of punitive damages, if
awarded, in a health care lawsuit, the trier of fact shall consider only the
following:</text>
<subparagraph id="HC68D69370F4642BE82E368EC90985C57"><enum>(A)</enum><text>The severity of
the harm caused by the conduct of such party.</text>
</subparagraph><subparagraph id="HDC4E21B33B014486BF5C0D5470E17CE5"><enum>(B)</enum><text>The duration of
the conduct or any concealment of it by such party.</text>
</subparagraph><subparagraph id="H46CA9319D7334349A25EF5ADB76A3373"><enum>(C)</enum><text>The profitability
of the conduct to such party.</text>
</subparagraph><subparagraph id="HD7E69E44B94442969E5BA7F3858E2865"><enum>(D)</enum><text>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.</text>
</subparagraph><subparagraph id="H13DB2C061CF84CC7B4E215632D59B3B2"><enum>(E)</enum><text>Any criminal
penalties imposed on such party, as a result of the conduct complained of by
the claimant.</text>
</subparagraph><subparagraph id="H614535FAEEDC4CDA819C9BB90412A32E"><enum>(F)</enum><text>The amount of any
civil fines assessed against such party as a result of the conduct complained
of by the claimant.</text>
</subparagraph></paragraph><paragraph id="HF414CFBE5D664BB49DCDADC7570E4184"><enum>(2)</enum><header>Maximum
award</header><text>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.</text>
</paragraph></subsection><subsection id="H364671E2CCF34A46A861252CBD91C8FA"><enum>(c)</enum><header>No Punitive
Damages for Products That Comply With FDA Standards</header>
<paragraph id="H25B37636136A427D8020DC344D3922AC"><enum>(1)</enum><header>Liability of
certain manufacturers, distributors, and suppliers</header>
<subparagraph id="HD8084C65DEB84CB69C67EB77905A1A5A"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="H34EC4B52BF684205837779CECA360545"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="H78DE9031EADD4D09BDE351ECDE35664D"><enum>(I)</enum><text>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</text>
</subclause><subclause id="H03857233DB634FEB81DA81BECBF1A044" indent="up1"><enum>(II)</enum><text>such medical product was so approved,
cleared, or licensed; or</text>
</subclause></clause><clause id="HBE58687C8262419B970AA0CC809EF35E"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="H81B588F088854B91858A1B8EBDC02291"><enum>(B)</enum><header>Rule of
construction</header><text>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.</text>
</subparagraph></paragraph><paragraph id="HC0273782B45B403EA711A4172DAF273C"><enum>(2)</enum><header>Liability of
health care providers</header><text>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.</text>
</paragraph><paragraph id="H5815ACA342D0443A80281E9BA5EFDF95"><enum>(3)</enum><header>Packaging</header><text>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.</text>
</paragraph><paragraph id="H6787557DFCEB412BB8916AE6C58A5F07"><enum>(4)</enum><header>Exception</header><text>Paragraph
(1) shall not apply with respect to any health care lawsuit in which—</text>
<subparagraph id="H48DC9398FE844688A75BBA57BD8E60EB"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="HA1995E2ADF6E495FA69FB1172FBC97C0"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph></subsection></section><section id="HA26F88977E1C445E9CA827746A84B0C3"><enum>507.</enum><header>Authorization
of payment of future damages to claimants in health care lawsuits</header>
<subsection id="HFB5E1D93A9DA43F89A5C7299E71C9FA6"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection id="H2CD32623E68C43DCAB53B72A552159D5"><enum>(b)</enum><header>Applicability</header><text>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.</text>
</subsection></section><section id="H74C53FBDFFC54E6D8D08387B4973D073"><enum>508.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="HCB86174B8A4141A8B02C93859AF080B2"><enum>(1)</enum><header>Alternative
dispute resolution system; ADR</header><text>The term <term>alternative dispute
resolution system</term> or <term>ADR</term> 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.</text>
</paragraph><paragraph id="HE94B6F15DE3C48EDA7643F4C35DBB44C"><enum>(2)</enum><header>Claimant</header><text>The
term <term>claimant</term> 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.</text>
</paragraph><paragraph id="H8FF7920B66AF4C76A531ECBB854BE7BF"><enum>(3)</enum><header>Collateral
source benefits</header><text>The term <term>collateral source benefits</term>
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—</text>
<subparagraph id="H4AB8F01FED0A4ACB82A6A899022D5BC1"><enum>(A)</enum><text>any State or
Federal health, sickness, income-disability, accident, or workers’ compensation
law;</text>
</subparagraph><subparagraph id="H07AFC9C8164C4FDB8529695571E4342B"><enum>(B)</enum><text>any health,
sickness, income-disability, or accident insurance that provides health
benefits or income-disability coverage;</text>
</subparagraph><subparagraph id="H4E54571585A24EFDA5BD809D9B446FF7"><enum>(C)</enum><text>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</text>
</subparagraph><subparagraph id="H3A4858D5B07043B4B2213A171F141441"><enum>(D)</enum><text>any other publicly
or privately funded program.</text>
</subparagraph></paragraph><paragraph id="H3AE576ACF91C4F1BA64AD00858560448"><enum>(4)</enum><header>Compensatory
damages</header><text>The term <term>compensatory damages</term> 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 <term>compensatory damages</term> includes economic
damages and noneconomic damages, as such terms are defined in this
section.</text>
</paragraph><paragraph id="H0F02C3A25976492B990F9EEF2270BD10"><enum>(5)</enum><header>Contingent
fee</header><text>The term <term>contingent fee</term> includes all
compensation to any person or persons which is payable only if a recovery is
effected on behalf of one or more claimants.</text>
</paragraph><paragraph id="HE467510792914C49A1067FA968004626"><enum>(6)</enum><header>Economic
damages</header><text>The term <term>economic damages</term> 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.</text>
</paragraph><paragraph id="H2614C96A28B74FA89020D3FA4B02100E"><enum>(7)</enum><header>Health care
lawsuit</header><text>The term <term>health care lawsuit</term> 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.</text>
</paragraph><paragraph id="H9954508A5A63407B8BDA6A9133A19F26"><enum>(8)</enum><header>Health care
liability action</header><text>The term <term>health care liability
action</term> 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.</text>
</paragraph><paragraph id="HB0C5E46F3904472C873F6132F4313584"><enum>(9)</enum><header>Health care
liability claim</header><text>The term <term>health care liability claim</term>
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.</text>
</paragraph><paragraph id="HC2F35B6C5E2C4633AA2C63FFD9E1F767"><enum>(10)</enum><header>Health care
organization</header><text>The term <term>health care organization</term> 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.</text>
</paragraph><paragraph id="HB51C55A63FFD4B938FC022C100A20965"><enum>(11)</enum><header>Health care
provider</header><text>The term <term>health care provider</term> 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.</text>
</paragraph><paragraph id="H4896C800FD174BC89D58AE74E98C2F30"><enum>(12)</enum><header>Health care
goods or services</header><text>The term <term>health care goods or
services</term> 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.</text>
</paragraph><paragraph id="HE2968F730C004A869CCFF87C35970E54"><enum>(13)</enum><header>Malicious
intent to injure</header><text>The term <term>malicious intent to injure</term>
means intentionally causing or attempting to cause physical injury other than
providing health care goods or services.</text>
</paragraph><paragraph id="H4FFF684BC3CE4CBBA03FEFBCCB156548"><enum>(14)</enum><header>Medical
product</header><text>The term <term>medical product</term> means a drug,
device, or biological product intended for humans, and the terms
<term>drug</term>, <term>device</term>, and <term>biological product</term>
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.</text>
</paragraph><paragraph id="H52E41ADC9FD249F4961706AFB04217AE"><enum>(15)</enum><header>Noneconomic
damages</header><text>The term <term>noneconomic damages</term> 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.</text>
</paragraph><paragraph id="HA9F30CC0E58A4B4FB852F6127739FE87"><enum>(16)</enum><header>Punitive
damages</header><text>The term <term>punitive damages</term> 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.</text>
</paragraph><paragraph id="H07B1C47650C7420D9562CBCA783D4E2B"><enum>(17)</enum><header>Recovery</header><text>The
term <term>recovery</term> 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.</text>
</paragraph><paragraph id="H95818254B1BA4F288AEE1A0AC6B88F32"><enum>(18)</enum><header>State</header><text>The
term <term>State</term> 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.</text>
</paragraph></section><section id="HC0A1CF079CA54BFFA594AA1FE0A4583F"><enum>509.</enum><header>Effect on other
laws</header>
<subsection id="H67C277F2B66D4EADB475D0B0BA31A986"><enum>(a)</enum><header>Vaccine
Injury</header>
<paragraph id="H296DE0B9DEFF48B9A52FB8CE0CF739F8"><enum>(1)</enum><text>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—</text>
<subparagraph id="H7AFB84EE7D73416DB185AA75D204E85E"><enum>(A)</enum><text>title V of this
Act does not affect the application of the rule of law applicable to such an
action; and</text>
</subparagraph><subparagraph id="HBC4BEE652B2E48BAB8988A751D5512EB"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="HDAB0E842BE214CE28AB342E313127FD9"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="HFD172B5D6EA545B68130A57F4E6D1AEF"><enum>(b)</enum><header>Other federal
law</header><text>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.</text>
</subsection></section><section id="HE8272A2E7A16426990B48BA0F3941D5D"><enum>510.</enum><header>State
flexibility and protection of States’ rights</header>
<subsection id="H2BB158DBDDCA4261851A058E9486CE9E"><enum>(a)</enum><header>Health care
lawsuits</header><text>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—</text>
<paragraph id="H24F45A9D67734ADD8EC906613E501889"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="H5B8C206FFFE54842B4DC45BEFF89AA3A"><enum>(2)</enum><text>prohibits the
introduction of evidence regarding collateral source benefits, or mandates or
permits subrogation or a lien on collateral source benefits.</text>
</paragraph></subsection><subsection id="H04EE8B5709A847DFB9855ECEA304ACD3"><enum>(b)</enum><header>Protection of
States’ rights and other laws</header>
<paragraph display-inline="no-display-inline" id="HDD3158F563C64C838F7CDF0C631D4591"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H1B781D9CF9434DCC8B8D2B0897355F74"><enum>(2)</enum><header>Laws that
provide greater protections</header><text>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.</text>
</paragraph></subsection><subsection id="HEBDCC5DA49324FAAB6EDD1B0790AD08C"><enum>(c)</enum><header>State
flexibility</header><text>No provision of this title shall be construed to
preempt—</text>
<paragraph id="H7E1F6E82ECC44A90896EA1BC45BEC824"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="HC1E7FD1C25EA4C149C5441936DEB95C1"><enum>(2)</enum><text>any defense
available to a party in a health care lawsuit under any other provision of
State or Federal law.</text>
</paragraph></subsection></section><section id="H98C9EA2661ED4E04BD0642DBFD7FD566"><enum>511.</enum><header>Applicability;
effective date</header><text display-inline="no-display-inline">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.</text>
</section><section id="H3F5ACFC9E4BF42FEA65C21D6BDB86AA7"><enum>512.</enum><header>Sense of
congress</header><text display-inline="no-display-inline">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.</text>
</section><section commented="no" id="H46060C9F40064E8493487090779A5244"><enum>513.</enum><header>Cooperative
governing of individual health insurance coverage</header>
<subsection commented="no" id="H900C6A20EED14E87AB1C53F3C02B86DB"><enum>(a)</enum><header>In
general</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="HB2C73AD2E81D48FABBC853CCCB115EDD" style="OLC">
<part commented="no" id="HAE0259B0D3D04F04982B15ADCC6DEF75"><enum>D</enum><header>Cooperative
Governing of Individual Health Insurance Coverage</header>
<section commented="no" id="HF12B94DF4F0341F7B0A2711A0ACF6B0A"><enum>2795.</enum><header>Definitions</header><text display-inline="no-display-inline">In this part:</text>
<paragraph commented="no" id="HA4A9FB4223AB491EA7BFA75767EAF21C"><enum>(1)</enum><header>Primary
State</header><text>The term <term>primary State</term> 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.</text>
</paragraph><paragraph commented="no" id="H66753548E0404B9A92D1272467B9C63C"><enum>(2)</enum><header>Secondary
State</header><text>The term <term>secondary State</term> 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.</text>
</paragraph><paragraph commented="no" id="H156CA80ABD8B4945898E2620DD7514DD"><enum>(3)</enum><header>Health insurance
issuer</header><text>The term <term>health insurance issuer</term> 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.</text>
</paragraph><paragraph commented="no" id="H81AAB7F5F44041E5866C2C5F1846AB74"><enum>(4)</enum><header>Individual
health insurance coverage</header><text>The term <term>individual health
insurance coverage</term> means health insurance coverage offered in the
individual market, as defined in section 2791(e)(1).</text>
</paragraph><paragraph commented="no" id="H032D47B8C43842DF9E30F1ACF49F0BD9"><enum>(5)</enum><header>Applicable State
authority</header><text>The term <term>applicable State authority</term> 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.</text>
</paragraph><paragraph commented="no" id="H1CF50E8F533A4082AA6EE4A476039430"><enum>(6)</enum><header>Hazardous
financial condition</header><text>The term <term>hazardous financial
condition</term> means that, based on its present or reasonably anticipated
financial condition, a health insurance issuer is unlikely to be able—</text>
<subparagraph commented="no" id="H4FC038768DF94DD39A789B17B2ABCF06"><enum>(A)</enum><text>to meet
obligations to policyholders with respect to known claims and reasonably
anticipated claims; or</text>
</subparagraph><subparagraph commented="no" id="H2F57ACBF707C4015B98968A329D9D5FD"><enum>(B)</enum><text>to pay other
obligations in the normal course of business.</text>
</subparagraph></paragraph><paragraph commented="no" id="H67B411C0104C4083A4271D7E6696A1D4"><enum>(7)</enum><header>Covered
laws</header>
<subparagraph commented="no" id="HC0E0191605F049E998633391A7C6A0C8"><enum>(A)</enum><header>In
general</header><text>The term <term>covered laws</term> means the laws, rules,
regulations, agreements, and orders governing the insurance business pertaining
to—</text>
<clause commented="no" id="H2D68905E938244E9AB900939EFEA832C"><enum>(i)</enum><text>individual health
insurance coverage issued by a health insurance issuer;</text>
</clause><clause commented="no" id="H7DE61FE8D76E454480A012146CF47719"><enum>(ii)</enum><text>the offer, sale,
rating (including medical underwriting), renewal, and issuance of individual
health insurance coverage to an individual;</text>
</clause><clause commented="no" id="H8BAB12FBD2214F47B238A6EFA8769375"><enum>(iii)</enum><text>the provision to
an individual in relation to individual health insurance coverage of health
care and insurance-related services;</text>
</clause><clause commented="no" id="H70EC41612BEF400BBA09D210FA65E4AD"><enum>(iv)</enum><text>the provision to
an individual in relation to individual health insurance coverage of
management, operations, and investment activities of a health insurance issuer;
and</text>
</clause><clause commented="no" id="H17C40FB3EEFF47159B97FA2B8EFD617A"><enum>(v)</enum><text>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.</text>
</clause></subparagraph><subparagraph commented="no" id="HADE9C7E1E6D24730A892597136683775"><enum>(B)</enum><header>Exception</header><text>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.</text>
</subparagraph></paragraph><paragraph commented="no" id="H6C7D7E1C68624992B990399F4C75933A"><enum>(8)</enum><header>State</header><text>The
term <term>State</term> 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.</text>
</paragraph><paragraph commented="no" id="H8EE26E8F9E4644BCAD49564CE9B83AD0"><enum>(9)</enum><header>Unfair claims
settlement practices</header><text>The term <term>unfair claims settlement
practices</term> means only the following practices:</text>
<subparagraph commented="no" id="HF3259F8B58074D5AA639D01389D0170D"><enum>(A)</enum><text>Knowingly
misrepresenting to claimants and insured individuals relevant facts or policy
provisions relating to coverage at issue.</text>
</subparagraph><subparagraph commented="no" id="H511392BAF6F546C79E9DF9B4641CF78B"><enum>(B)</enum><text>Failing to
acknowledge with reasonable promptness pertinent communications with respect to
claims arising under policies.</text>
</subparagraph><subparagraph commented="no" id="HEAE2D69E04FC4140A5813DEE6668FD3C"><enum>(C)</enum><text>Failing to adopt
and implement reasonable standards for the prompt investigation and settlement
of claims arising under policies.</text>
</subparagraph><subparagraph commented="no" id="HE324368996694964A2812823D2B6268B"><enum>(D)</enum><text>Failing to
effectuate prompt, fair, and equitable settlement of claims submitted in which
liability has become reasonably clear.</text>
</subparagraph><subparagraph commented="no" id="H62A81BAE5CDE488FA05231FE021FA858"><enum>(E)</enum><text>Refusing to pay
claims without conducting a reasonable investigation.</text>
</subparagraph><subparagraph commented="no" id="HC384D8A21F8248F4B1F9EBA7906E6699"><enum>(F)</enum><text>Failing to affirm
or deny coverage of claims within a reasonable period of time after having
completed an investigation related to those claims.</text>
</subparagraph><subparagraph commented="no" id="H56861FBABAF54131A543EEB11F9DA8A6"><enum>(G)</enum><text>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.</text>
</subparagraph><subparagraph commented="no" id="H28B297A9ACE74F12B5E56954159124E1"><enum>(H)</enum><text>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.</text>
</subparagraph><subparagraph commented="no" id="H4A9A3698388B4260B256D1BD1C4B48D7"><enum>(I)</enum><text>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.</text>
</subparagraph><subparagraph commented="no" id="HA71232404C5B4C1E9BA47A1A077DAB06"><enum>(J)</enum><text>Failing to provide
forms necessary to present claims within 15 calendar days of a request with
reasonable explanations regarding their use.</text>
</subparagraph><subparagraph commented="no" id="HB7FF48D2B47944679A959A5840FDD4F2"><enum>(K)</enum><text>Attempting to
cancel a policy in less time than that prescribed in the policy or by the law
of the primary State.</text>
</subparagraph></paragraph><paragraph commented="no" id="HA0A6F4920D9D4BA6B942CB2DBFC0FCDE"><enum>(10)</enum><header>Fraud and
abuse</header><text>The term <term>fraud and abuse</term> 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:</text>
<subparagraph commented="no" id="HAC8785F9A2D9434590716B7AB842E597"><enum>(A)</enum><text>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:</text>
<clause commented="no" id="H77AB854F306F48EC81972BA4377E4F9F"><enum>(i)</enum><text>An application for
the issuance or renewal of an insurance policy or reinsurance contract.</text>
</clause><clause commented="no" id="H8F0F356C3EE144EA8343E9EC5842DB31"><enum>(ii)</enum><text>The rating of an
insurance policy or reinsurance contract.</text>
</clause><clause commented="no" id="H98B4EF0E2D4C4D1DA78AB0641375DFCB"><enum>(iii)</enum><text>A claim for
payment or benefit pursuant to an insurance policy or reinsurance
contract.</text>
</clause><clause commented="no" id="H432A0E3F8B82466A92683873FEEE2C33"><enum>(iv)</enum><text>Premiums paid on
an insurance policy or reinsurance contract.</text>
</clause><clause commented="no" id="HE9630BE8075143D1A1FF84309DAAD665"><enum>(v)</enum><text>Payments made in
accordance with the terms of an insurance policy or reinsurance
contract.</text>
</clause><clause commented="no" id="H2E267DB361AC4679AE7AC50E4EC13EA4"><enum>(vi)</enum><text>A document filed
with the commissioner or the chief insurance regulatory official of another
jurisdiction.</text>
</clause><clause commented="no" id="H63DAF01091F048EE86CB78951302782B"><enum>(vii)</enum><text>The financial
condition of an insurer or reinsurer.</text>
</clause><clause commented="no" id="H85389A9F8168422083AA35024D9164E0"><enum>(viii)</enum><text>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.</text>
</clause><clause commented="no" id="H963C72E93A8D40DF8CCF6D9560C3DB6B"><enum>(ix)</enum><text>The issuance of
written evidence of insurance.</text>
</clause><clause commented="no" id="HB67C8897A4F741BCBAD76B239BCEB7CC"><enum>(x)</enum><text>The reinstatement
of an insurance policy.</text>
</clause></subparagraph><subparagraph commented="no" id="H3A40198E0C374822AD4CF598B266453D"><enum>(B)</enum><text>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.</text>
</subparagraph><subparagraph commented="no" id="HCC37CB95B05F438A81B3BAC9AE029D8B"><enum>(C)</enum><text>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.</text>
</subparagraph><subparagraph commented="no" id="H7F2E64DADF7D48A5951ED666C3DAF4D7"><enum>(D)</enum><text>Attempt to commit,
aiding or abetting in the commission of, or conspiracy to commit the acts or
omissions specified in this paragraph.</text>
</subparagraph></paragraph></section><section commented="no" id="H70B064C2476448189DF99F4D42DE592C"><enum>2796.</enum><header>Application of
law</header>
<subsection commented="no" id="H528AFB30CADB42FD8926F02D842A8031"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection commented="no" id="HC4447AC8451944488ABD990F4867DF82"><enum>(b)</enum><header>Exemptions from
covered laws in a secondary State</header><text>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—</text>
<paragraph commented="no" id="H65C6837CA0FA40FAB675CA67CC7B7799"><enum>(1)</enum><text>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—</text>
<subparagraph commented="no" id="H9A4A574ABFE6494CB987B93E24B8E67D"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph commented="no" id="HE7D4406907D44EA68C0497E08E5AF1BC"><enum>(B)</enum><text>to register with
and designate the State insurance commissioner as its agent solely for the
purpose of receiving service of legal documents or process;</text>
</subparagraph><subparagraph commented="no" id="H3BDF19B40D8C4048B5DC40BADD58B350"><enum>(C)</enum><text>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—</text>
<clause commented="no" id="H7E26498F0E114AF7B6600527DF74577B"><enum>(i)</enum><text>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</text>
</clause><clause commented="no" id="H2A1DF1505262464192D33E159A9129B1"><enum>(ii)</enum><text>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;</text>
</clause></subparagraph><subparagraph commented="no" id="H1C17974669F04A2794FF5C08CF924AD6"><enum>(D)</enum><text>to comply with a
lawful order issued—</text>
<clause commented="no" id="H806D306B6216421683205470CD1C6CF0"><enum>(i)</enum><text>in a delinquency
proceeding commenced by the State insurance commissioner if there has been a
finding of financial impairment under subparagraph (C); or</text>
</clause><clause commented="no" id="HF38A215FFA4F462186CD626F5136654D"><enum>(ii)</enum><text>in a voluntary
dissolution proceeding;</text>
</clause></subparagraph><subparagraph commented="no" id="H2B780B561057479BB922AFBB8072D7D9"><enum>(E)</enum><text>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;</text>
</subparagraph><subparagraph commented="no" id="HFD59B04980734467817F15736DD38354"><enum>(F)</enum><text>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;</text>
</subparagraph><subparagraph commented="no" id="HCC6ABF2D91C54D6C918B81226DC2EE56"><enum>(G)</enum><text>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;</text>
</subparagraph><subparagraph commented="no" id="H790BF63A42F04E5FA1F996DA7AFD4AC5"><enum>(H)</enum><text>to comply with any
State law regarding unfair claims settlement practices (as defined in section
2795(9)); or</text>
</subparagraph><subparagraph commented="no" id="HDF06D46A35E1481B9CCFCD416002912E"><enum>(I)</enum><text>to comply with the
applicable requirements for independent review under section 2798 with respect
to coverage offered in the State;</text>
</subparagraph></paragraph><paragraph commented="no" id="H6A2130A951CC41B2A6C1AE7B93E712E5"><enum>(2)</enum><text>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</text>
</paragraph><paragraph commented="no" id="HE030B2E7BBE04AAEB731C14B763E1BB3"><enum>(3)</enum><text>otherwise
discriminate against the issuer issuing insurance in both the primary State and
in any secondary State.</text>
</paragraph></subsection><subsection commented="no" id="HA2E36B086792410381FAE64B1B9630EE"><enum>(c)</enum><header>Clear and
conspicuous disclosure</header><text>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:</text>
<list level="paragraph">
<list-item><quote>Notice</quote></list-item>
<list-item><quote>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.</quote>.</list-item></list>
</subsection><subsection commented="no" id="H5E2D71B1BF9D4EDABE6B2E5A320BEB47"><enum>(d)</enum><header>Prohibition on
certain reclassifications and premium increases</header>
<paragraph commented="no" id="HA8E648AB9BE64F4CA723F04590A946ED"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph commented="no" id="H4B969A71292341AFAD2DE5306407463F"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph commented="no" id="H96E88CB312E445419618028D405662E1"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph commented="no" id="HEA2F98F8FB48460396DC2E4991736F71"><enum>(2)</enum><header>Construction</header><text>Nothing
in paragraph (1) shall be construed to prohibit a health insurance
issuer—</text>
<subparagraph commented="no" id="HD4FD034D3EAD45249FB3DBAB8D0D161B"><enum>(A)</enum><text>from terminating
or discontinuing coverage or a class of coverage in accordance with subsections
(b) and (c) of section 2742;</text>
</subparagraph><subparagraph commented="no" id="H1A9B93BF889341F7957FE496D9DEF50C"><enum>(B)</enum><text>from raising
premium rates for all policyholders within a class based on claims
experience;</text>
</subparagraph><subparagraph commented="no" id="HF8E08E237DC84BE191FEC36ABC4CB101"><enum>(C)</enum><text>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—</text>
<clause commented="no" id="H31519D2149814DEE9DCA268193797CEC"><enum>(i)</enum><text>are disclosed to
the consumer in the insurance contract;</text>
</clause><clause commented="no" id="H8C851F5F619D45858D0A8C737A46EFC4"><enum>(ii)</enum><text>are based on
specific wellness activities that are not applicable to all individuals;
and</text>
</clause><clause commented="no" id="H1A8714521D9C40F29938E0CB92CBA1F2"><enum>(iii)</enum><text>are not
obtainable by all individuals to whom coverage is offered;</text>
</clause></subparagraph><subparagraph commented="no" id="H878710E280DB4FAE833E3E4422C5687F"><enum>(D)</enum><text>from reinstating
lapsed coverage; or</text>
</subparagraph><subparagraph commented="no" id="HF85EF6342533470A84175B54F51C1A8B"><enum>(E)</enum><text>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.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H32585B7DC70942BB9BFDF82DE5DA49B8"><enum>(e)</enum><header>Prior offering
of policy in primary State</header><text>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.</text>
</subsection><subsection commented="no" id="H69B67890F75C470E973B707D7F32763C"><enum>(f)</enum><header>Licensing of
agents or brokers for health insurance issuers</header><text>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.</text>
</subsection><subsection commented="no" id="H3616E6C84F074E5ABF1BC2B6A672ABC3"><enum>(g)</enum><header>Documents for
submission to State insurance commissioner</header><text>Each health insurance
issuer issuing individual health insurance coverage in both primary and
secondary States shall submit—</text>
<paragraph commented="no" id="H8A5D041C241741529BA9B6DBC695D0C2"><enum>(1)</enum><text>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—</text>
<subparagraph commented="no" id="HAE36E4D1DEF44F7DB2FB8E10CE107533"><enum>(A)</enum><text>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);</text>
</subparagraph><subparagraph commented="no" id="H43FD479AB7F245E2A3725E2F382993C9"><enum>(B)</enum><text>written notice of
any change in its designation of its primary State; and</text>
</subparagraph><subparagraph commented="no" id="H3D8E814513C9496FB8AEA2ADE4CBA0A9"><enum>(C)</enum><text>written notice
from the issuer of the issuer’s compliance with all the laws of the primary
State; and</text>
</subparagraph></paragraph><paragraph commented="no" id="H844C8A18B4F6476D96F583B8F021A0B5"><enum>(2)</enum><text>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—</text>
<subparagraph commented="no" id="H948B10B528E74FE299DBDEC40A0B74E8"><enum>(A)</enum><text>a member of the
American Academy of Actuaries; or</text>
</subparagraph><subparagraph commented="no" id="H43A833B274044CB390E6AAD7D808C30F"><enum>(B)</enum><text>a qualified loss
reserve specialist.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HB1D3871AC0994E0CBCB3E9FCEC583A93"><enum>(h)</enum><header>Power of courts
To enjoin conduct</header><text>Nothing in this section shall be construed to
affect the authority of any Federal or State court to enjoin—</text>
<paragraph commented="no" id="H00634D730BF44181A80AD74CF062D19D"><enum>(1)</enum><text>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</text>
</paragraph><paragraph commented="no" id="HCC74CF26FFA2461FAE95C2BC12A7D000"><enum>(2)</enum><text>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).</text>
</paragraph></subsection><subsection commented="no" id="H3A646E0650804EBD811DDF74A5317931"><enum>(i)</enum><header>Power of
Secondary States To Take Administrative Action</header><text>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).</text>
</subsection><subsection commented="no" id="H296431BC106846E88012681D6BD9A393"><enum>(j)</enum><header>State powers To
enforce State laws</header>
<paragraph commented="no" id="H29370C8FEE7F4F599B09964E68781BB2"><enum>(1)</enum><header>In
general</header><text>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).</text>
</paragraph><paragraph commented="no" id="HC612004D3608450BAD0678283A7D219A"><enum>(2)</enum><header>Courts of
competent jurisdiction</header><text>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.</text>
</paragraph></subsection><subsection commented="no" id="HA7DB9131BF9A4A72B740460CCCE3A3F2"><enum>(k)</enum><header>States’
authority To sue</header><text>Nothing in this section shall affect the
authority of any State to bring action in any Federal or State court.</text>
</subsection><subsection commented="no" id="H8BD907D567354E5FB06816C1F62714B9"><enum>(l)</enum><header>Generally
applicable laws</header><text>Nothing in this section shall be construed to
affect the applicability of State laws generally applicable to persons or
corporations.</text>
</subsection><subsection commented="no" id="H2E88ECACD1524DECA7E2BD42206AA9B7"><enum>(m)</enum><header>Guaranteed
Availability of Coverage to HIPAA-Eligible Individuals</header><text>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.</text>
</subsection></section><section commented="no" id="HDC3E5E5718BD46EB859F84958AC8110E"><enum>2797.</enum><header>Primary State
must meet Federal floor before issuer may sell into secondary
States</header><text display-inline="no-display-inline">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.</text>
</section><section commented="no" id="H09F610CBC67842A1B5F64F411EE09F24"><enum>2798.</enum><header>Independent
external appeals procedures</header>
<subsection commented="no" id="HA8E1C1BF9622475396A72B6090A85D6B"><enum>(a)</enum><header>Right to
External Appeal</header><text>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—</text>
<paragraph commented="no" id="HF6B6C01FCFFB46DFBC23AB833EA660F3"><enum>(1)</enum><text>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</text>
</paragraph><paragraph commented="no" id="H49B929FD76444DDFA8FE9AEDE6BEA65C"><enum>(2)</enum><text>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 <quote>Health Carrier External Review
Model Act</quote> 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.</text>
</paragraph></subsection><subsection commented="no" id="HB1FF229797EB4B55A8EC933A7899AEFE"><enum>(b)</enum><header>Qualifications
of Independent Medical Reviewers</header><text>In the case of any independent
review mechanism referred to in subsection (a)(2)—</text>
<paragraph commented="no" id="H49C2044592D44E91A3C73AB771ECACF7"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph commented="no" id="H1D61A85DB7D84E4C952A2488BD938B99"><enum>(A)</enum><text>each independent
medical reviewer meets the qualifications described in paragraphs (2) and
(3);</text>
</subparagraph><subparagraph commented="no" id="H8489AFFCAAC8498E9E2F2874E4D71F0D"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph commented="no" id="H019B11FFCD03467390BCE47433DEE942"><enum>(C)</enum><text>compensation
provided by the issuer to each reviewer is consistent with paragraph
(6).</text>
</subparagraph></paragraph><paragraph commented="no" id="H4C8C5D2E77514A4DBD3080BCF72F0E0B"><enum>(2)</enum><header>Licensure and
expertise</header><text>Each independent medical reviewer shall be a physician
(allopathic or osteopathic) or health care professional who—</text>
<subparagraph commented="no" id="H77EB210BEFB34B5E837FB4B44CCA9C9C"><enum>(A)</enum><text>is appropriately
credentialed or licensed in 1 or more States to deliver health care services;
and</text>
</subparagraph><subparagraph commented="no" id="H64E10BFDBC1D47B8B8829E2AB9FB0738"><enum>(B)</enum><text>typically treats
the condition, makes the diagnosis, or provides the type of treatment under
review.</text>
</subparagraph></paragraph><paragraph commented="no" id="HC714BCCC4EDC477AAE628A7E513F6B87"><enum>(3)</enum><header>Independence</header>
<subparagraph commented="no" id="H61C3A98E7EE147ED9C0BD780F217BD3D"><enum>(A)</enum><header>In
general</header><text>Subject to subparagraph (B), each independent medical
reviewer in a case shall—</text>
<clause commented="no" id="H84EA6D7FB44F40A7838E75CBCA1404A3"><enum>(i)</enum><text>not be a related
party (as defined in paragraph (7));</text>
</clause><clause commented="no" id="H50000CAE04E84E2DAA50916E1B5345A5"><enum>(ii)</enum><text>not have a
material familial, financial, or professional relationship with such a party;
and</text>
</clause><clause commented="no" id="H0A74619D1F9F4E77B68EBFDC1388914A"><enum>(iii)</enum><text>not otherwise
have a conflict of interest with such a party (as determined under
regulations).</text>
</clause></subparagraph><subparagraph commented="no" id="H6B764F1E9F2A422E9D0A5BC36C9BFFB8"><enum>(B)</enum><header>Exception</header><text>Nothing
in subparagraph (A) shall be construed to—</text>
<clause commented="no" id="H55FD541179C04BA0A31237FD2DA1F1F5"><enum>(i)</enum><text>prohibit an
individual, solely on the basis of affiliation with the issuer, from serving as
an independent medical reviewer if—</text>
<subclause commented="no" id="H65E43E19DBBE4EE880240CC716488157"><enum>(I)</enum><text>a nonaffiliated
individual is not reasonably available;</text>
</subclause><subclause commented="no" id="HBDD5798266EB40499822A6ACB6F0DA40"><enum>(II)</enum><text>the affiliated
individual is not involved in the provision of items or services in the case
under review;</text>
</subclause><subclause commented="no" id="H1A431F4460674A6D9AEE8646DA815524"><enum>(III)</enum><text>the fact of such
an affiliation is disclosed to the issuer and the enrollee (or authorized
representative) and neither party objects; and</text>
</subclause><subclause commented="no" id="H959D79303EFB4AC9A157E5F2A09E8F08"><enum>(IV)</enum><text>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;</text>
</subclause></clause><clause commented="no" id="HAF3F16E210A54274B20F4EEDE1386E3D"><enum>(ii)</enum><text>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</text>
</clause><clause commented="no" id="H08FC8CA56EF140688AE497B9F049BF9B"><enum>(iii)</enum><text>prohibit receipt
of compensation by an independent medical reviewer from an entity if the
compensation is provided consistent with paragraph (6).</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H30B9513202E94AC2B4D5FC1609186387"><enum>(4)</enum><header>Practicing
health care professional in same field</header>
<subparagraph commented="no" id="HDE672D63F4BA4DA5B68B3BDA030DA586"><enum>(A)</enum><header>In
general</header><text>In a case involving treatment, or the provision of items
or services—</text>
<clause commented="no" id="HA33E0D6BB5EA4169AA7BA8CEB4C62218"><enum>(i)</enum><text>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</text>
</clause><clause commented="no" id="H5D92000523E04AA6B4345E5344FB92F8"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph commented="no" id="HDE0DD30B373247CF822BA06D91A33980"><enum>(B)</enum><header>Practicing
defined</header><text>For purposes of this paragraph, the term
<term>practicing</term> 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.</text>
</subparagraph></paragraph><paragraph commented="no" id="HC06631E6145A4826AFD5DBFC9A2D86FF"><enum>(5)</enum><header>Pediatric
expertise</header><text>In the case of an external review relating to a child,
a reviewer shall have expertise under paragraph (2) in pediatrics.</text>
</paragraph><paragraph commented="no" id="HFB471F10EC1E4729A255F64DDB6A30E4"><enum>(6)</enum><header>Limitations on
reviewer compensation</header><text>Compensation provided by the issuer to an
independent medical reviewer in connection with a review under this section
shall—</text>
<subparagraph commented="no" id="HF677922BB94947518E78786B7F855A87"><enum>(A)</enum><text>not exceed a
reasonable level; and</text>
</subparagraph><subparagraph commented="no" id="HA22F04CB159E4A678383262F17E4D1C8"><enum>(B)</enum><text>not be contingent
on the decision rendered by the reviewer.</text>
</subparagraph></paragraph><paragraph commented="no" id="H9ADEA20A2A6C4D25909832C82E14B9D0"><enum>(7)</enum><header>Related party
defined</header><text>For purposes of this section, the term <term>related
party</term> means, with respect to a denial of a claim under a coverage
relating to an enrollee, any of the following:</text>
<subparagraph commented="no" id="H4AB5834CA055406C8EE2E94199C65940"><enum>(A)</enum><text>The issuer
involved, or any fiduciary, officer, director, or employee of the
issuer.</text>
</subparagraph><subparagraph commented="no" id="HDDE4C9D7B28B458A87C1957A9C3C15C9"><enum>(B)</enum><text>The enrollee (or
authorized representative).</text>
</subparagraph><subparagraph commented="no" id="HE345604CC0004B219312DE7A16F9A24F"><enum>(C)</enum><text>The health care
professional that provides the items or services involved in the denial.</text>
</subparagraph><subparagraph commented="no" id="H7D9F662453404ADD84FEE2525EDC6E22"><enum>(D)</enum><text>The institution at
which the items or services (or treatment) involved in the denial are
provided.</text>
</subparagraph><subparagraph commented="no" id="HCC3FAFA47D4542C6972C98E14D8960C4"><enum>(E)</enum><text>The manufacturer
of any drug or other item that is included in the items or services involved in
the denial.</text>
</subparagraph><subparagraph commented="no" id="H11A415CA0CE645CBB1F8BE06CB3CDAE8"><enum>(F)</enum><text>Any other party
determined under any regulations to have a substantial interest in the denial
involved.</text>
</subparagraph></paragraph><paragraph commented="no" id="HD959687EF99A4298858E5322F05CD8DA"><enum>(8)</enum><header>Definitions</header><text>For
purposes of this subsection:</text>
<subparagraph commented="no" id="HB3249230EA1145A2A0D5B24C20B3675E"><enum>(A)</enum><header>Enrollee</header><text>The
term <term>enrollee</term> means, with respect to health insurance coverage
offered by a health insurance issuer, an individual enrolled with the issuer to
receive such coverage.</text>
</subparagraph><subparagraph commented="no" id="HA43092F27C234654BFB9344F516D03CD"><enum>(B)</enum><header>Health care
professional</header><text>The term <term>health care professional</term> 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.</text>
</subparagraph></paragraph></subsection></section><section commented="no" id="HC82AC15FB42D408DA83778E1CCFB4B6C"><enum>2799.</enum><header>Enforcement</header>
<subsection commented="no" id="H2A70CCA58B164732B86F74D5E5A3C6B0"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection commented="no" id="HBFA3DEED00924FC59B40A99087510C44"><enum>(b)</enum><header>Secondary
State’s authority</header><text>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).</text>
</subsection><subsection commented="no" id="HBBAFE585E98C45FAA53A140A7D6094E2"><enum>(c)</enum><header>Court
interpretation</header><text>In reviewing action initiated by the applicable
secondary State authority, the court of competent jurisdiction shall apply the
covered laws of the primary State.</text>
</subsection><subsection commented="no" id="HF85B089EF9F941B2851B78A4A6C3DF05"><enum>(d)</enum><header>Notice of
compliance failure</header><text>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.</text>
</subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H0D775F17C5D04B4880676B560FC2B703"><enum>(b)</enum><header>Effective
date</header><text>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.</text>
</subsection><subsection commented="no" id="H12B2E8AB85B4478DAA05594C94F20E77"><enum>(c)</enum><header>GAO Ongoing
Study and Reports</header>
<paragraph commented="no" id="H2E1FA8132B0840799EA5BC8E9FC27662"><enum>(1)</enum><header>Study</header><text>The
Comptroller General of the United States shall conduct an ongoing study
concerning the effect of the amendment made by subsection (a) on—</text>
<subparagraph commented="no" id="H5D3283F9B4824D118B2F79D5A5F47F3E"><enum>(A)</enum><text>the number of
uninsured and underinsured;</text>
</subparagraph><subparagraph commented="no" id="HEAE974A4065944458A01B612C649E56D"><enum>(B)</enum><text>the availability
and cost of health insurance policies for individuals with preexisting medical
conditions;</text>
</subparagraph><subparagraph commented="no" id="H89E673AA2EC947638E1762F4BD970639"><enum>(C)</enum><text>the availability
and cost of health insurance policies generally;</text>
</subparagraph><subparagraph commented="no" id="H705EDAB39B6C44CEA26EF78EA74721EB"><enum>(D)</enum><text>the elimination or
reduction of different types of benefits under health insurance policies
offered in different States; and</text>
</subparagraph><subparagraph commented="no" id="HF92A08B1B25D4897BE27EF22E1260291"><enum>(E)</enum><text>cases of fraud or
abuse relating to health insurance coverage offered under such amendment and
the resolution of such cases.</text>
</subparagraph></paragraph><paragraph commented="no" id="HA2C30C394B8E44D3B702DA62524FDDCB"><enum>(2)</enum><header>Annual
reports</header><text>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).</text>
</paragraph></subsection></section><section id="H5183F892852A4234AAFA01DF988CEF17"><enum>514.</enum><header>SECA tax
deduction for health insurance costs</header>
<subsection id="H6505B0787AC04A1DA79B5AE58EDD60AE"><enum>(a)</enum><header>In
general</header><text>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).</text>
</subsection><subsection id="HC87924D6E1594EB0B38A1635FF7DF304"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after the date of the enactment of this title.</text>
</subsection></section><enum>VI</enum><header>Workforce
Integrity</header>
<section id="HAD0AADA15C7B4ED3B48E006C3507124E"><enum>601.</enum><header>E-verify
program made permanent</header><text display-inline="no-display-inline">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—</text>
<paragraph id="H8A13A9C74C4D430F85B105720A3DD186"><enum>(1)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection" style="OLC">;
termination</header-in-text></quote>; and</text>
</paragraph><paragraph id="H2C809B248D5441D9A2321F91FD9578A3"><enum>(2)</enum><text>by striking the
second sentence.</text>
</paragraph></section><section id="H45E6CAE2BFB1412D9A32561F3643B8A2"><enum>602.</enum><header>Verification
under E-verify program made possible over telephone</header><text display-inline="no-display-inline">Section 404(d) of such Act is
amended—</text>
<paragraph id="HAD655AE1EABF4A7DA15BCB6F78C535DD"><enum>(1)</enum><text>in paragraph (3),
by striking the <quote>and</quote> at the end;</text>
</paragraph><paragraph id="H08EB1403C82E449C87EF11AA739EAC41"><enum>(2)</enum><text>in paragraph
(4)(C), by striking period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="H90A5C6172C7A45129793A2186F8EB47C"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HE54AC7A0B15641BAB9E854CA17FF75BA" style="OLC">
<paragraph id="H3B528A96C35A466DA9E798152FAA7942"><enum>(5)</enum><text display-inline="yes-display-inline">in such a manner that the confirmation or
noncomfirmation may be provided by
telephone.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" id="H79BB743967D242EBB5FF185D28A1064C"><enum>603.</enum><header>Grace period to
correct paperwork</header><text display-inline="no-display-inline">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.</text>
</section><enum>VII</enum><header>Intellectual
Property Protection</header>
<section commented="no" id="HF4BE460F47AD455FB97EBF88BEB79C7C"><enum>701.</enum><header>Limits on
patent legislation</header><text display-inline="no-display-inline">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.</text>
</section><section id="H607BC09157B64BF6B882E777DE82BB76"><enum>702.</enum><header>Expedited
patent filing procedures for small business concerns</header><text display-inline="no-display-inline">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.</text>
</section><enum>VIII</enum><header>Incentives for
Energy Efficiency</header>
<subtitle id="HA898F3C7C54C46048404FA543F2B0563"><enum>A</enum><header>Vehicles</header>
<section commented="no" id="HBF632E5E912448AEAA15104CB0546888"><enum>801.</enum><header>Consumer
incentives to purchase advanced technology vehicles</header>
<subsection commented="no" id="H1DCFA2722E3C43629C5CEF5AFFE4FA8E"><enum>(a)</enum><header>New Qualified
Hybrid Motor Vehicles</header>
<paragraph commented="no" id="HCD273369937A434FB38EE25C106AB2CE"><enum>(1)</enum><header>Extension of
alternative vehicle credit</header><text>Subsection (j) of section 30B of the
Internal Revenue Code of 1986, as amended by subsection (b), is amended by
striking paragraph (3).</text>
</paragraph><paragraph commented="no" id="HCDE62E39FDEA4418A0D1B3058C913A38"><enum>(2)</enum><header>Increase in
credit amount</header><text>Subparagraph (A) of section 30B(d)(2) of such Code
is amended by striking <quote>the sum of</quote> and inserting <quote>150
percent of the sum of</quote>.</text>
</paragraph></subsection><subsection commented="no" id="HDF628BFD9C33481495B75E893BBF7413"><enum>(b)</enum><header>Elimination on
Number of New Qualified Hybrid and Advanced Lean Burn Technology Vehicles
Eligible for Alternative Motor Vehicle Credit</header>
<paragraph commented="no" id="H99DC3A7B2BD1471185D1EBD19DBF33BD"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph commented="no" id="H1EA6D2A1014A4F05A93545CA27527B7C"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph commented="no" id="HBB9864786F5049BA90C3B09D9D2CBD83"><enum>(A)</enum><text>Paragraphs (4) and
(6) of section 30B(h) of the Internal Revenue Code of 1986 are each amended by
striking <quote>(determined without regard to subsection (g))</quote> and
inserting <quote>determined without regard to subsection (f))</quote>.</text>
</subparagraph><subparagraph commented="no" id="H7EA01AF8C85F4C2A8DEB1C127368AB49"><enum>(B)</enum><text>Section 38(b)(25)
of such Code is amended by striking <quote>section 30B(g)(1)</quote> and
inserting <quote>section 30B(f)(1)</quote>.</text>
</subparagraph><subparagraph commented="no" id="H81CC0140EAEF4B52A6B80F66C1FEF00A"><enum>(C)</enum><text>Section 55(c)(2)
of such Code is amended by striking <quote>section 30B(g)(2)</quote> and
inserting <quote>section 30B(f)(2)</quote>.</text>
</subparagraph><subparagraph commented="no" id="H862C9754BB1246BA9F76EE7119572935"><enum>(D)</enum><text>Section
1016(a)(36) of such Code is amended by striking <quote>section
30B(h)(4)</quote> and inserting <quote>section 30B(g)(4)</quote>.</text>
</subparagraph><subparagraph commented="no" id="H01B666204A4B4A7DA6FCEEC655AEB3F3"><enum>(E)</enum><text>Section 6501(m) of
such Code is amended by striking <quote>section 30B(h)(9)</quote> and inserting
<quote>section 30B(g)(9)</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H216D21374ABA4CDBA0A9706B2A125DCE"><enum>(c)</enum><header>Flexible Fuel
Vehicle Credit</header>
<paragraph commented="no" id="H88F7A349C1904543B805323889E0E2FC"><enum>(1)</enum><header>In
general</header><text>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:</text>
<quoted-block id="H72B9769150094479B1838F0026407AC1" style="OLC">
<section commented="no" id="HA1E41CBEC5BA4EF6A533461A3A5F9DB1"><enum>30E.</enum><header>Flexible fuel
vehicle credit</header>
<subsection commented="no" id="H32B3B5211DA14CD288EF67556642994E"><enum>(a)</enum><header>Allowance of
Credit</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" id="H46959983C38342AD8C18584CC65FC4EE"><enum>(b)</enum><header>GEM Flexible
Fuel Vehicle Credit</header>
<paragraph commented="no" id="H5D84F2AFF04A4D7494E695C6E727DC66"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph commented="no" id="H0FA97D1B086C42D7B58866C226932B36"><enum>(2)</enum><header>Credit
amount</header><text>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.</text>
</paragraph></subsection><subsection commented="no" id="H02B459C6958C472E8D276FC4CDDDEFDD"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section:</text>
<paragraph commented="no" id="H817C807AEC474566B97A07BDCB3D2D93"><enum>(1)</enum><header>GEM flexible
fuel vehicle</header><text>The term <term>GEM flexible fuel vehicle</term>
means a motor vehicle warrantied by its manufacturer to operate on any
combination of gasoline, E85, M85, biodiesel, and hydrogen and its
blends.</text>
</paragraph><paragraph commented="no" id="H3AEAC94AE0ED4FE8A71EDE0137C09045"><enum>(2)</enum><header>E<enum-in-header>85</enum-in-header></header><text>The
term <term>E85</term> means a fuel blend containing 85 percent ethanol and 15
percent gasoline by volume.</text>
</paragraph><paragraph commented="no" id="HDC3A63CD849F49728438183BC686F20A"><enum>(3)</enum><header>M<enum-in-header>85</enum-in-header></header><text>The
term <term>M85</term> means a fuel blend containing 85 percent methanol and 15
percent gasoline by
volume.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="HC3D8DA6D858841D497905D77FD1B75B6"><enum>(2)</enum><header>Clerical
amendment</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="H14C9235F08BB48D28E0002F0FADC2116" style="OLC">
<toc container-level="quoted-block-container" idref="H72B9769150094479B1838F0026407AC1" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HA1E41CBEC5BA4EF6A533461A3A5F9DB1" level="section">Sec. 30E. Flexible fuel vehicle
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="H597E62121F0F4B72BE9973C340C016A2"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after December 31, 2009, in taxable years ending after such
date.</text>
</subsection></section></subtitle><subtitle id="HD10E33F1E96E4DB2B32B1B04D1DDDB4A"><enum>B</enum><header>Extensions</header>
<section id="HA58BAB9B150A4CA7B23E4D1E0A85C348"><enum>811.</enum><header>Make permanent
the tax credit for residential energy-efficient property</header><text display-inline="no-display-inline">Section 25D is amended by striking
subsection (g).</text>
</section><section id="H61C0C4EA42314858A7C5359B4E09B1BE"><enum>812.</enum><header>Make permanent
the energy efficiency credit for existing homes</header><text display-inline="no-display-inline">Section 25C is amended by striking
subsection (g).</text>
</section><section id="H29C10F6F60714D5985C022FD4530227F"><enum>813.</enum><header>Make permanent
the energy efficiency commercial buildings deduction</header><text display-inline="no-display-inline">Section 179D is amended by striking
subsection (h).</text>
</section></subtitle><enum>IX</enum><header>Guidance about
new rules</header>
<section id="H9F13E2A02CF34D679409C99B34431B67" section-type="subsequent-section"><enum>901.</enum><header>Guidance and advice
about new rules</header>
<subsection id="H9BC16B51E34D4EF2B764FA7AB31E4711"><enum>(a)</enum><header>Determination
regarding impact of new rules</header><text>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.</text>
</subsection><subsection id="HA876D4B94B5E4BAC8318977F2F3433AA"><enum>(b)</enum><header>Advice</header><text display-inline="yes-display-inline">The Administrator shall, on request,
provide such other advice to small business concerns about those matters as the
Administrator determines appropriate.</text>
</subsection><subsection id="HCAC27E9F24A440C49DF38F7D4DCF054C"><enum>(c)</enum><header>Publication</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><enum>X</enum><header>Small
Business provisions</header>
<subtitle id="H5B53815918D0463894179181C2B65573"><enum>A</enum><header>Small Business
General Provisions</header>
<section commented="no" id="H284AEEC1119541399DAB593A702A8D22"><enum>1001.</enum><header>Administration
prohibited from capping executive compensation</header><text display-inline="no-display-inline">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.</text>
</section><section commented="no" id="H6F461BAE38FA46E1834B9DA5767B5201"><enum>1002.</enum><header>Reduction of
regulatory burden</header>
<subsection commented="no" id="H44A7486FDEEF405094D3B2022648FB3C"><enum>(a)</enum><header>GAO
Report</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" id="H68A6C356AF7B4E5F990306B51C5D3C4B"><enum>(b)</enum><header>SBA
Recommendations</header><text>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.</text>
</subsection><subsection commented="no" id="HC66C2D14E4734C118C90EE9A3EA9E52E"><enum>(c)</enum><header>Reduction of
paperwork</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section commented="no" id="H81B706D304F54882944C805BFE3ABCBA"><enum>1003.</enum><header>Litigation
burden on small business concerns to be limited to current levels</header><text display-inline="no-display-inline">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.</text>
</section><section id="HAD44F4FF388A4EA0A0AC458550487C5F"><enum>1004.</enum><header>Expansion of
volunteer representation and benchmark reports</header>
<subsection id="H60194C7CF6A9478198F59D87DA641D32"><enum>(a)</enum><header>Expansion of
volunteer representation</header><text>Section 8(b)(1)(B) of the Small Business
Act (15 U.S.C. 637(b)(1)(B)) is amended—</text>
<paragraph id="HA58C647E2D044FA4A86D9DF59160F06B"><enum>(1)</enum><text>by inserting
<quote>(i)</quote> after <quote>(B)</quote>; and</text>
</paragraph><paragraph id="HA0287D6F1C0A4F4EB4C46531445D8126"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H702BD9759FD04B21B0494BBFA82B0C5A" style="OLC">
<clause id="HF7A453AA24264900ACE460E08DCA588D" indent="up1"><enum>(ii)</enum><text>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.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H4BE61EAB01DF492799FF9B2A3DDE6E7C"><enum>(b)</enum><header>Benchmark
reports</header><text>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:</text>
<quoted-block id="H27DEC9E98BB141F59661B35E819EAC0C" style="OLC">
<clause id="HC61F2F03204E44439BB96D7F2E35230C" indent="up1"><enum>(iii)</enum><text>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.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HC8F7C8B289364B77A4C1AA4B77335F99"><enum>1005.</enum><header>Mentoring and
networking</header><text display-inline="no-display-inline">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:</text>
<quoted-block id="H9E2D47E7B37E4D919EDA33705B1F296F" style="OLC">
<clause id="HD33ED2E7A5214D53ABC91C335030752E" indent="up1"><enum>(iv)</enum><text>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.</text>
</clause><clause id="H8072437683AD487488493FAB71E9CB85" indent="up1"><enum>(v)</enum><text>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.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H9A11A892EB94447AA868F20A4F410654"><enum>1006.</enum><header>Name of
program changed to SCORE</header>
<subsection id="HC37D4BF5AC0B468A879601BB6A27E9C2"><enum>(a)</enum><header>Name
change</header><text>The Small Business Act is amended as follows:</text>
<paragraph id="H804C00C70D4B426BAD3A3642C538A8C3"><enum>(1)</enum><text>In section
8(b)(1)(B) (15 U.S.C. 637(b)(1)(B)), by striking <quote>Executives
(SCORE)</quote> and inserting <quote>Executives (in this Act referred to as
<quote>SCORE</quote>)</quote>.</text>
</paragraph><paragraph id="HA16726B4DE374ED7AC836F39937D7EC7"><enum>(2)</enum><text>In section
7(m)(3)(A)(i)(VIII) (15 U.S.C. 636(m)(3)(A)(i)(VIII)), by striking <quote>the
Service Corps of Retired Executives</quote> and inserting
<quote>SCORE</quote>.</text>
</paragraph><paragraph id="H0799FC68E9AD4C85B08C6A2E856CF12F"><enum>(3)</enum><text>In section 20 (15
U.S.C. 631 note)—</text>
<subparagraph id="HE3B3CB9AD58A481E8A201F4E3B31935E"><enum>(A)</enum><text>in subsection
(d)(1)(E), by striking <quote>the Service Corps of Retired Executives
program</quote> and inserting <quote>SCORE</quote>; and</text>
</subparagraph><subparagraph id="HF417CF88A0C9418687218983391FA14B"><enum>(B)</enum><text>in subsection
(e)(1)(E), by striking <quote>the Service Corps of Retired Executives
program</quote> and inserting <quote>SCORE</quote>.</text>
</subparagraph></paragraph><paragraph id="H8E89D065B7554DF184D938CADA00D2AA"><enum>(4)</enum><text>In section
33(b)(2) (15 U.S.C. 657c(b)(2)), by striking <quote>Service Corps of Retired
Executives</quote> and inserting <quote>SCORE</quote>.</text>
</paragraph></subsection><subsection id="H2F228657FE3A43089C96CFC66E746B60"><enum>(b)</enum><header>Elimination of
ACE</header><text>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 <quote>and an Active
Corps of Executives (ACE)</quote>.</text>
</subsection></section><section id="H726EE46345E34F01A164BF1708651E4D"><enum>1007.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">Section 20
of the Small Business Act (15 U.S.C. 631 note) is amended by inserting the
following new subsection after subsection (e):</text>
<quoted-block id="HE961BD3490614AB48184C351A16D6E6F" style="OLC">
<subsection id="H2F7F39FEDC8B40D684872458EFBE8E12"><enum>(f)</enum><header>Authorization of
appropriations for score</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="H418F8390AD084C5EA60FA6B03842AB50"><enum>B</enum><header>Small Business
Goals</header>
<section id="H76778869373A4496A722A27D42AC3931"><enum>1011.</enum><header>Small business
goals</header><text display-inline="no-display-inline">Section 15(g)(1) of the
Small Business Act (15 U.S.C. 644(g)) is amended—</text>
<paragraph id="H1EB68960A1E3437AA6B3D3A99286A6A9"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>23 percent</quote> and inserting <quote>30 percent</quote>;
and</text>
</paragraph><paragraph id="H69C79D92752D479A87878BA73CDD6859"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H60248D70E2EA438EABB4ACDEBE46D5D7" style="OLC">
<paragraph id="H2296DA41085C4F8A8829FFB481B8771A" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H97946D8AFFE94E8FB31A77708A308308"><enum>(A)</enum><text>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.</text>
</subparagraph><subparagraph id="H1F65D6B657EE45A9AA8382C985246091" indent="up1"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HDD3D14A806984EE9B6E8FD785AC55CAD"><enum>1012.</enum><header>Agency goal
negotiation</header>
<subsection id="HA9FCB0BA65244A30939C6749498E3A50"><enum>(a)</enum><header>Negotiation</header><text>Section
15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)) is amended by striking
<quote>The President shall annually establish Governmentwide goals for
procurement contracts</quote> and inserting <quote>The President shall before
the close of each fiscal year establish new Governmentwide procurement goals
for the following fiscal year for procurement contracts.</quote>.</text>
</subsection><subsection id="H4ABCD40C16174C59AF63797F89733C65"><enum>(b)</enum><header>Minimum
level</header><text>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
<quote>Notwithstanding the Governmentwide goal, each agency shall have an
annual goal</quote> and inserting <quote>Each agency shall have an annual goal,
not lower than the Governmentwide goal,</quote>.</text>
</subsection></section><section id="HAD4A34BBBE1842958C048A8A13726994"><enum>1013.</enum><header>Procedures and
methods for goal achievement</header>
<subsection id="HAEEB24AA660D41BE9D94D729F745295B"><enum>(a)</enum><header>Goal
responsibility</header><text>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:
<quote>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.</quote>.</text>
</subsection><subsection id="HAA4ECBAEC50443A0AFF1640A78DDDC26"><enum>(b)</enum><header>Senior Executive
Service</header>
<paragraph id="HF922DC2DACAF4AE09BA837E7A207F3C8"><enum>(1)</enum><header>Purposes</header><text>Section
3131 of title 5, United States Code, is amended—</text>
<subparagraph id="HDA2BE412989E4DB388C365AAA4451480"><enum>(A)</enum><text>in paragraph (13)
by striking the <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="HA92C9CAEF32B4FA7B76DE0CE9A63D869"><enum>(B)</enum><text>in paragraph (14)
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="H39378EFFD4374BBCA58A7C5A6AB1B752"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H5F31E539CB5747718B54DEB127E7DAFE" style="USC">
<paragraph id="HF5801DC5D1944A608252538FE123813B"><enum>(15)</enum><text>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).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H98B4D9C47DDF4FF4BD21EB980C422AB2"><enum>(2)</enum><header>Training</header><text>Section
3396(a) of title 5, United States Code, is amended by adding at the end the
following: <quote>The training provided to senior executives shall include
Federal procurement policy, including the procurement provisions of the Small
Business Act.</quote>.</text>
</paragraph><paragraph id="H09E9BC450A9A4C97B16FB6226D710ECC"><enum>(3)</enum><header>Limitation on
sabbaticals</header><text>Section 3396(c)(2) of title 5, United States Code is
amended—</text>
<subparagraph id="H983D7B51B99F4D368C1CA08452E6EA71"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (B)(iii) by striking the
<quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="H0EA5AFBA956F4B418573C04EE002A0D1"><enum>(B)</enum><text>in subparagraph
(C) by striking the period at the end and inserting <quote>; or</quote>;
and</text>
</subparagraph><subparagraph id="HB1DC4099D0DE4A4B84F2FF065065A183"><enum>(C)</enum><text>by inserting after
subparagraph (C) the following:</text>
<quoted-block id="H4FCA40BAA7A046D0B3E0366927B4D318" style="OLC">
<subparagraph id="HBE3201ED5FC34558ABD89B62FE91BCD6"><enum>(D)</enum><text>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)).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H6B91E64A6B704F269ED0F8C06CDA2F61"><enum>(4)</enum><header>Limitation on
incentive awards</header><text>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.</text>
</paragraph></subsection></section><section id="HD0F45D08DF884C26ACE398C70009EBF9"><enum>1014.</enum><header>Reporting
requirements</header><text display-inline="no-display-inline">Section 15(h) of
the Small Business Act (15 U.S.C. 644(h)) is amended by adding at the end the
following:</text>
<quoted-block id="H4E26765712DF4616B239318F0DC3C17C" style="OLC">
<paragraph id="HC80D7B6FD7E443EBBB4AA4DA3D02018D" indent="up1"><enum>(4)</enum><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="H5D490A02C3544CE7921CCC678079169C"><enum>C</enum><header>Contract
Bundling</header>
<section id="HFFDCCC0494184B0F8BEC261BE3E1DF0F"><enum>1021.</enum><header>Definitions of
bundling of contract requirements</header><text display-inline="no-display-inline">Section 3(o) of the Small Business Act (15
U.S.C. 632(o)) is amended to read as follows:</text>
<quoted-block id="H3FB944B71CB44B63B13533351AE22FE8" style="OLC">
<subsection id="H4AE3FB030FCA4DF6B994A47C502E4C54"><enum>(o)</enum><header>Definitions of
Bundling of Contract Requirements and Related Terms</header><text>For purposes
of this Act:</text>
<paragraph id="H35722FBD22C7460B85D901A4378A66FC"><enum>(1)</enum><header>Bundled
contract</header>
<subparagraph id="HEE63993FF2D4417FAED02BD1183C5806"><enum>(A)</enum><header>In
general</header><text>The term <term>bundled contract</term> 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.</text>
</subparagraph><subparagraph id="H5C9101A797E542C4AC25FE0DA56172DB"><enum>(B)</enum><header>Exceptions</header><text>The
term does not include—</text>
<clause id="H7B43748FDEBC45DAA32144CBB5FDA084"><enum>(i)</enum><text>a
contract or order with an aggregate dollar value below the dollar threshold
specified in paragraph (4); or</text>
</clause><clause id="H8215945B78744D4F8521060D1AC982C3"><enum>(ii)</enum><text>a
contract or order that is entered into to meet procurement requirements, all of
which are exempted requirements under paragraph (5).</text>
</clause></subparagraph></paragraph><paragraph id="HE1887B9BBA194DD58E0EB6EBB2DBD2F2"><enum>(2)</enum><header>Bundling of
contract requirements</header>
<subparagraph id="H3457278DF43C4EF3BA918CCA37705434"><enum>(A)</enum><header>In
general</header><text>The term <term>bundling of contract requirements</term>
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—</text>
<clause id="H0D101DB11E024769BFEB8A5361B08F1B"><enum>(i)</enum><text>the diversity,
size, or specialized nature of the elements of the performance
specified;</text>
</clause><clause id="H9082697F35904A41B0537290DEF6897D"><enum>(ii)</enum><text>the aggregate
dollar value of the anticipated award;</text>
</clause><clause id="HF68F7C7036884568BA936D2F289ACCD6"><enum>(iii)</enum><text>the geographical
dispersion of the contract or order performance; or</text>
</clause><clause id="H88869D369BDA4692BCD5C3F4F392C3CB"><enum>(iv)</enum><text>any combination
of the factors described in clauses (i), (ii), or (iii).</text>
</clause></subparagraph><subparagraph id="H2EA450F2C4DE4AC4827C3CF1CDFC7A29"><enum>(B)</enum><header>Exceptions</header><text>The
term does not include—</text>
<clause id="H8CD0FEB2897142C6A7B464C8A4D7B410"><enum>(i)</enum><text>the use of a
bundling methodology for an anticipated award with an aggregate dollar value
below the threshold specified in paragraph (4); or</text>
</clause><clause id="H639F1EC281B0479F8AAF8C2467389903"><enum>(ii)</enum><text>the use of a
bundling methodology to meet procurement requirements, all of which are
exempted under paragraph (5).</text>
</clause></subparagraph></paragraph><paragraph id="HF00DA0DD1FDD453C90BB4AB84E370DE5"><enum>(3)</enum><header>Bundling
methodology</header><text>The term <term>bundling methodology</term>
means—</text>
<subparagraph id="H1631C77B950F4F57AF721A14291B3B9A"><enum>(A)</enum><text>a solicitation to
obtain offers for a single contract or order, or a multiple award contract or
order;</text>
</subparagraph><subparagraph id="H01C720F5A93D4542BBFFEF687C13438A"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="H5DB83AB2554D40C6BB248EA884D9083C"><enum>(C)</enum><text>the creation of
any new procurement requirements that permit a consolidation of contract or
order requirements.</text>
</subparagraph></paragraph><paragraph id="H7DD7BA90BA9B400BB05D5EF86C0CB211"><enum>(4)</enum><header>Dollar
threshold</header><text>The term <term>dollar threshold</term> means—</text>
<subparagraph id="H61B612D15BCC455C90119F5CA585FCD1"><enum>(A)</enum><text>$65,000,000 if
solely for construction services; and</text>
</subparagraph><subparagraph id="HAF45D9BBF4DE4160A5A1916B69A93A4D"><enum>(B)</enum><text>$1,500,000 in all
other cases.</text>
</subparagraph></paragraph><paragraph id="H0D6FCD90B100426BAE2830DA54ACD445"><enum>(5)</enum><header>Exempted
requirements</header><text>The term <term>exempted requirement</term> means one
or more of the following:</text>
<subparagraph id="H05A0870AAF384E2FA33379C85921976D"><enum>(A)</enum><text>A procurement
requirement solely for items that are not commercial items (as the term
<term>commercial item</term> 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.</text>
</subparagraph><subparagraph id="HD22034908FEF43DDA6AE8CC19D3E3524"><enum>(B)</enum><text>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 <term>exempted requirement</term> shall
not apply to that procurement requirement.</text>
</subparagraph></paragraph><paragraph id="H003D747E5EC5452AA9C7F0C9C33FD928"><enum>(6)</enum><header>Procurement
requirement</header><text>The term <term>procurement requirement</term> means a
determination by an agency that a specified good or service is needed to
satisfy the mission of the
agency.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HA322A0F0E81F47359BEB896FB0594DB5"><enum>1022.</enum><header>Justification</header>
<subsection id="H7B45A03D6F2D43B08A33DDA9B08FA8F9"><enum>(a)</enum><header>Statement of
bundled contract requirements</header><text>Section 15(a) of the Small Business
Act (15 U.S.C. 644(a)) is amended—</text>
<paragraph id="H3E2DD3B64E574A0A8D369F83814A7309"><enum>(1)</enum><text>by striking
<quote>is in a quantity or estimated dollar value the magnitude of which
renders small business prime contract participation unlikely</quote> and
inserting <quote>would now be combined with other requirements for goods and
services</quote>;</text>
</paragraph><paragraph id="H8DB0C3690F9849F294E5BDDD63BA6795"><enum>(2)</enum><text>by striking
<quote>(2) why delivery schedules</quote> and inserting <quote>(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</quote>;</text>
</paragraph><paragraph id="H39BBCC3D96F64B518927294D4B997D8B"><enum>(3)</enum><text>by striking
<quote>(3) why the proposed acquisition</quote> and inserting <quote>(6) why
the proposed acquisition</quote>;</text>
</paragraph><paragraph id="H76172C89EFC649FBB5F2EDF1147B93B5"><enum>(4)</enum><text>by striking
<quote>(4) why construction</quote> and inserting <quote>(7) why
construction</quote>;</text>
</paragraph><paragraph id="H2C20D62B8B0E4E77B1F26A239CAC513F"><enum>(5)</enum><text>by striking
<quote>(5) why the agency</quote> and inserting <quote>(8) why the
agency</quote>;</text>
</paragraph><paragraph id="H12E67D4BF63B4C3FB032111ED8BA0BC9"><enum>(6)</enum><text>by striking
<quote>justified</quote> and inserting <quote>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.</quote>; and</text>
</paragraph><paragraph id="HDAE60C92931444A0B041167BDC05E4A5"><enum>(7)</enum><text display-inline="yes-display-inline">by inserting after <quote>prime contracting
opportunities.</quote> the following: <quote>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.</quote>.</text>
</paragraph></subsection><subsection id="H734A59DBED7747F99F14E0B20DD92370"><enum>(b)</enum><header>Substantial
measurable benefits</header><text>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: <quote>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.</quote>.</text>
</subsection></section><section id="H0E925A90D18C4641AFE54EDF822D1234"><enum>1023.</enum><header>Appeals</header><text display-inline="no-display-inline">Section 15(a) of the Small Business Act (15
U.S.C. 644(a)), as amended by this Act, is further amended—</text>
<paragraph id="H7DCF7D3BE07D4FD3A48ECC1E77CD1555"><enum>(1)</enum><text>by striking
<quote>If a proposed procurement includes in its statement</quote> and
inserting <quote>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</quote>; and</text>
</paragraph><paragraph id="HECFEDCA2490045A09BDA895D5FED3E89"><enum>(2)</enum><text>by inserting
before <quote>Whenever the Administrator and the contracting procurement agency
fail to agree,</quote> the following: <quote>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.</quote>.</text>
</paragraph></section><section id="H44672BA31EC94C2A9DD7C9CDB728B6B5"><enum>1024.</enum><header>Third-party
review</header><text display-inline="no-display-inline">Section 8(d) of the
Contract Disputes Act of 1978 (41 U.S.C. 607(d)) is amended—</text>
<paragraph commented="no" id="H46E4C2DC744D46B68CCEC4692AA2346D"><enum>(1)</enum><text>by striking
<quote>(d) The Armed Services Board</quote> and inserting <quote>(d)(1) The
Armed Services Board</quote>; and</text>
</paragraph><paragraph id="H140A5B8662D0457D980D35381E07956B"><enum>(2)</enum><text>by inserting at
the end the following:</text>
<quoted-block id="H5362710C2E9347ACB2FB0769A58CD938" style="OLC">
<paragraph id="H78E331A1CB074AE58C5AC7EAC0DD051D" indent="up1"><enum>(2)</enum><header>Contract Bundling</header>
<subparagraph id="HC06F062766E948AF9D5536F8C98B0007"><enum>(A)</enum><header>In general</header><text>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.</text>
</subparagraph><subparagraph id="H191A12158D51479F8D4450B245359B1C"><enum>(B)</enum><header>Procedure</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><subtitle id="HB80C9C665A294D199626901FFACD4B3A"><enum>D</enum><header>Small Business
Subcontracting</header>
<section commented="no" id="H304744FFC51C43198AD22D7E465FA096"><enum>1031.</enum><header>Good faith
compliance with subcontracting plans</header><text display-inline="no-display-inline">Section 8(d)(10) of the Small Business Act
(15 U.S.C. 637(d)(10)) is amended by—</text>
<paragraph commented="no" id="HE37B38BE5F79484D96548FE6E296C061"><enum>(1)</enum><text>by striking
<quote>and</quote> at the end of subparagraph (B);</text>
</paragraph><paragraph commented="no" id="HEACF2561F4004E999817A2ADD1248668"><enum>(2)</enum><text>by striking the
period at the end of subparagraph (C) and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph commented="no" id="H69598C0FD1384AB0A1DF13E382FC4949"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H499C5458BBBF45D09490AE6F926D076E" style="OLC">
<subparagraph commented="no" id="HE10BF93D937B48C48A5E0DDB45178540"><enum>(D)</enum><text>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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HFDB47BD9D6BC44AEB086D9D6FCD166CD"><enum>1032.</enum><header>Limitations on
subcontracting</header>
<subsection id="H1B8E20537CE44B74A517BEE4DEDF5558"><enum>(a)</enum><header>Regulations for
contract administration</header><text>Section 15(o) of the Small Business Act
(15 U.S.C. 644(o)) is amended by adding at the end the following:</text>
<quoted-block id="HE4983E146DF6427F94CC92994220DE2D" style="OLC">
<paragraph id="H15BB125D96884A97860013D7207AE8F1" indent="up1"><enum>(4)</enum><text>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).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD1289CEB769145DCA6E4B6C865109D11"><enum>(b)</enum><header>Contractor
penalties</header><text>Section 16 of the Small Business Act (15 U.S.C. 645) is
amended by adding at the end the following:</text>
<quoted-block id="H66938AF654B34C5EA0D931B528A4EE46" style="OLC">
<subsection id="H42543454A7F5459BAA24DDDC5A10B564"><enum>(g)</enum><text>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).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HC7F2EAA2CC1C4EE6B654FFBDC25FAC58"><enum>1033.</enum><header>Criminal
violations</header><text display-inline="no-display-inline">Section 1001(a) of
title 18, United States Code, is amended—</text>
<paragraph id="H0D7F75D1B1DA4CCD899FC9818DFAFC06"><enum>(1)</enum><text>in paragraph (2)
by striking the <quote>or</quote> at the end;</text>
</paragraph><paragraph id="HE0828EA32D094B8D834BF594E9089B36"><enum>(2)</enum><text>in paragraph (3)
by adding <quote>or</quote> at the end;</text>
</paragraph><paragraph id="HF6ED73108C9B4A67A530558232C7DD23"><enum>(3)</enum><text>inserting after
paragraph (3) the following:</text>
<quoted-block id="H08ACCD6C79F24D33827E076DBBD05C4E" style="USC">
<paragraph id="HD37E0747A41D46E4A0D6515AD12B2F30"><enum>(4)</enum><text>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;</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB3EC6F3C61BB4DC689CD4190C1E9A3F9"><enum>(4)</enum><text>by adding at the
end the following: <quote>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.</quote>.</text>
</paragraph></section></subtitle><enum>XI</enum><header>Offsets</header>
<section commented="no" id="H42F83D4C477C49048018277B9841A410"><enum>1101.</enum><header>Transfer of
unobligated stimulus funds</header>
<subsection commented="no" id="H28E10D426E57436AA2D6B2E106CD80BF"><enum>(a)</enum><header>Rescission</header><text display-inline="yes-display-inline">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 <quote>Federal Highway
Administration-Highway Infrastructure Investment</quote> in title XII of such
division, are rescinded and such provisions are repealed.</text>
</subsection><subsection commented="no" id="H8314EE78234C48229C13B55B101C1C1D"><enum>(b)</enum><header>Repeal</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" id="H42E9F74DEB014CEC9CC92F88742BF57D"><enum>(c)</enum><header>Transfer of
Funds</header><text display-inline="yes-display-inline">The total amount
rescinded by this section shall be deposited in the Federal Treasury.</text>
</subsection></section><enum>XII</enum><header>Debt
Reduction</header>
<section id="H3D0CC5EFE6A5459C87A3E986C134125F"><enum>1201.</enum><header>Repeal of the
Troubled Asset Relief Program</header>
<subsection id="H07F343E5687B43739E73DA278D3DC93B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H53537E0F958F4AE58974E0F3B5670C3B"><enum>(b)</enum><header>Returned TARP
money To be used for deficit reduction</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HA7BB404797CB45E4B6266C1947B079AA"><enum>(c)</enum><header>Lowering of
national debt limit To correspond to TARP repayments</header><text display-inline="yes-display-inline">Section 3101 of title 31, United States
Code, is amended—</text>
<paragraph commented="no" id="H431081DC0E7B4D399F5D85EFBD2A52DD"><enum>(1)</enum><text>in subsection (b),
by inserting after the dollar limitation contained in such subsection the
following: <quote>, as such amount is reduced by the amount described under
subsection (d)</quote>; and</text>
</paragraph><paragraph id="HB4A8461F90EE43DD8ABA8E415333D16B"><enum>(2)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H1554153D3B5045498F947EFC0470C599" style="OLC">
<subsection id="H12E17A833EA24BB3B67C13F829B6F1FE"><enum>(d)</enum><text display-inline="yes-display-inline">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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><enum>XIII</enum><header>Definitions</header>
<section id="HF01CBF5180FC430B9EB52322C6ABF056"><enum>1301.</enum><header>Definitions</header><text display-inline="no-display-inline">In this Act:</text>
<paragraph id="H7B33F02DCF99458BABD020A48960E988"><enum>(1)</enum><text display-inline="yes-display-inline">The term <term>Administrator</term> means
the Administrator of Small Business Administration.</text>
</paragraph><paragraph id="HB2B914DE61C74F2E9BEB90D7C7A65C1B"><enum>(2)</enum><text>The term
<term>small business concern</term> has the meaning given such term under
section 3 of the Small Business Act.</text>
</paragraph></section>