[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5297 Engrossed Amendment Senate (EAS)]
In the Senate of the United States,
September 16, 2010.
Resolved, That the bill from the House of Representatives (H.R.
5297) entitled ``An Act to create the Small Business Lending Fund
Program to direct the Secretary of the Treasury to make capital
investments in eligible institutions in order to increase the
availability of credit for small businesses, to amend the Internal
Revenue Code of 1986 to provide tax incentives for small business job
creation, and for other purposes.'', do pass with the following
AMENDMENT:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Jobs Act of 2010''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--SMALL BUSINESSES
Sec. 1001. Definitions.
Subtitle A--Small Business Access to Credit
Sec. 1101. Short title.
PART I--Next Steps for Main Street Credit Availability
Sec. 1111. Section 7(a) business loans.
Sec. 1112. Maximum loan amounts under 504 program.
Sec. 1113. Maximum loan limits under microloan program.
Sec. 1114. Loan guarantee enhancement extensions.
Sec. 1115. New Markets Venture Capital company investment limitations.
Sec. 1116. Alternative size standards.
Sec. 1117. Sale of 7(a) loans in secondary market.
Sec. 1118. Online lending platform.
Sec. 1119. SBA Secondary Market Guarantee Authority.
PART II--Small Business Access to Capital
Sec. 1122. Low-interest refinancing under the local development
business loan program.
PART III--Other Matters
Sec. 1131. Small business intermediary lending pilot program.
Sec. 1132. Public policy goals.
Sec. 1133. Floor plan pilot program extension.
Sec. 1134. Guarantees for bonds and notes issued for community or
economic development purposes.
Sec. 1135. Temporary express loan enhancement.
Sec. 1136. Prohibition on using TARP funds or tax increases.
Subtitle B--Small Business Trade and Exporting
Sec. 1201. Short title.
Sec. 1202. Definitions.
Sec. 1203. Office of International Trade.
Sec. 1204. Duties of the Office of International Trade.
Sec. 1205. Export assistance centers.
Sec. 1206. International trade finance programs.
Sec. 1207. State Trade and Export Promotion Grant Program.
Sec. 1208. Rural export promotion.
Sec. 1209. International trade cooperation by small business
development centers.
Subtitle C--Small Business Contracting
PART I--Contract Bundling
Sec. 1311. Small Business Act.
Sec. 1312. Leadership and oversight.
Sec. 1313. Consolidation of contract requirements.
Sec. 1314. Small business teams pilot program.
PART II--Subcontracting Integrity
Sec. 1321. Subcontracting misrepresentations.
Sec. 1322. Small business subcontracting improvements.
PART III--Acquisition Process
Sec. 1331. Reservation of prime contract awards for small businesses.
Sec. 1332. Micro-purchase guidelines.
Sec. 1333. Agency accountability.
Sec. 1334. Payment of subcontractors.
Sec. 1335. Repeal of Small Business Competitiveness Demonstration
Program.
PART IV--Small Business Size and Status Integrity
Sec. 1341. Policy and presumptions.
Sec. 1342. Annual certification.
Sec. 1343. Training for contracting and enforcement personnel.
Sec. 1344. Updated size standards.
Sec. 1345. Study and report on the mentor-protege program.
Sec. 1346. Contracting goals reports.
Sec. 1347. Small business contracting parity.
Subtitle D--Small Business Management and Counseling Assistance
Sec. 1401. Matching requirements under small business programs.
Sec. 1402. Grants for SBDCs.
Subtitle E--Disaster Loan Improvement
Sec. 1501. Aquaculture business disaster assistance.
Subtitle F--Small Business Regulatory Relief
Sec. 1601. Requirements providing for more detailed analyses.
Sec. 1602. Office of advocacy.
Subtitle G--Appropriations Provisions
Sec. 1701. Salaries and expenses.
Sec. 1702. Business loans program account.
Sec. 1703. Community Development Financial Institutions Fund program
account.
Sec. 1704. Small business loan guarantee enhancement extensions.
TITLE II--TAX PROVISIONS
Sec. 2001. Short title.
Subtitle A--Small Business Relief
PART I--Providing Access to Capital
Sec. 2011. Temporary exclusion of 100 percent of gain on certain small
business stock.
Sec. 2012. General business credits of eligible small businesses for
2010 carried back 5 years.
Sec. 2013. General business credits of eligible small businesses in
2010 not subject to alternative minimum
tax.
Sec. 2014. Temporary reduction in recognition period for built-in gains
tax.
PART II--Encouraging Investment
Sec. 2021. Increased expensing limitations for 2010 and 2011; certain
real property treated as section 179
property.
Sec. 2022. Additional first-year depreciation for 50 percent of the
basis of certain qualified property.
Sec. 2023. Special rule for long-term contract accounting.
PART III--Promoting Entrepreneurship
Sec. 2031. Increase in amount allowed as deduction for start-up
expenditures in 2010.
Sec. 2032. Authorization of appropriations for the United States Trade
Representative to develop market access
opportunities for United States small- and
medium-sized businesses and to enforce
trade agreements.
PART IV--Promoting Small Business Fairness
Sec. 2041. Limitation on penalty for failure to disclose reportable
transactions based on resulting tax
benefits.
Sec. 2042. Deduction for health insurance costs in computing self-
employment taxes in 2010.
Sec. 2043. Removal of cellular telephones and similar
telecommunications equipment from listed
property.
Subtitle B--Revenue Provisions
PART I--Reducing the Tax Gap
Sec. 2101. Information reporting for rental property expense payments.
Sec. 2102. Increase in information return penalties.
Sec. 2103. Report on tax shelter penalties and certain other
enforcement actions.
Sec. 2104. Application of continuous levy to tax liabilities of certain
Federal contractors.
PART II--Promoting Retirement Preparation
Sec. 2111. Participants in government section 457 plans allowed to
treat elective deferrals as Roth
contributions.
Sec. 2112. Rollovers from elective deferral plans to designated Roth
accounts.
Sec. 2113. Special rules for annuities received from only a portion of
a contract.
PART III--Closing Unintended Loopholes
Sec. 2121. Crude tall oil ineligible for cellulosic biofuel producer
credit.
Sec. 2122. Source rules for income on guarantees.
PART IV--Time for Payment of Corporate Estimated Taxes
Sec. 2131. Time for payment of corporate estimated taxes.
TITLE III--STATE SMALL BUSINESS CREDIT INITIATIVE
Sec. 3001. Short title.
Sec. 3002. Definitions.
Sec. 3003. Federal funds allocated to States.
Sec. 3004. Approving States for participation.
Sec. 3005. Approving State capital access programs.
Sec. 3006. Approving collateral support and other innovative credit
access and guarantee initiatives for small
businesses and manufacturers.
Sec. 3007. Reports.
Sec. 3008. Remedies for State program termination or failures.
Sec. 3009. Implementation and administration.
Sec. 3010. Regulations.
Sec. 3011. Oversight and audits.
TITLE IV--ADDITIONAL SMALL BUSINESS PROVISIONS
Subtitle A--Small Business Lending Fund
Sec. 4101. Purpose.
Sec. 4102. Definitions.
Sec. 4103. Small business lending fund.
Sec. 4104. Additional authorities of the Secretary.
Sec. 4105. Considerations.
Sec. 4106. Reports.
Sec. 4107. Oversight and audits.
Sec. 4108. Credit reform; funding.
Sec. 4109. Termination and continuation of authorities.
Sec. 4110. Preservation of authority.
Sec. 4111. Assurances.
Sec. 4112. Study and report with respect to women-owned, veteran-owned,
and minority-owned businesses.
Sec. 4113. Sense of Congress.
Subtitle B--Other Provisions
PART I--Small Business Export Promotion Initiatives
Sec. 4221. Short title.
Sec. 4222. Global business development and promotion activities of the
Department of Commerce.
Sec. 4223. Additional funding to improve access to global markets for
rural businesses.
Sec. 4224. Additional funding for the ExporTech program.
Sec. 4225. Additional funding for the market development cooperator
program of the Department of Commerce.
Sec. 4226. Hollings Manufacturing Partnership Program; Technology
Innovation Program.
Sec. 4227. Sense of the Senate concerning Federal collaboration with
States on export promotion issues.
Sec. 4228. Report on tariff and nontariff barriers.
PART II--Medicare Fraud
Sec. 4241. Use of predictive modeling and other analytics technologies
to identify and prevent waste, fraud, and
abuse in the Medicare fee-for-service
program.
TITLE V--BUDGETARY PROVISIONS
Sec. 5001. Determination of budgetary effects.
TITLE I--SMALL BUSINESSES
SEC. 1001. DEFINITIONS.
In this title--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively; and
(2) the term ``small business concern'' has the meaning
given that term under section 3 of the Small Business Act (15
U.S.C. 632).
Subtitle A--Small Business Access to Credit
SEC. 1101. SHORT TITLE.
This subtitle may be cited as the ``Small Business Job Creation and
Access to Capital Act of 2010''.
PART I--NEXT STEPS FOR MAIN STREET CREDIT AVAILABILITY
SEC. 1111. SECTION 7(A) BUSINESS LOANS.
(a) Amendment.--Section 7(a) of the Small Business Act (15 U.S.C.
636(a)) is amended--
(1) in paragraph (2)(A)--
(A) in clause (i), by striking ``75 percent'' and
inserting ``90 percent''; and
(B) in clause (ii), by striking ``85 percent'' and
inserting ``90 percent''; and
(2) in paragraph (3)(A), by striking ``$1,500,000 (or if
the gross loan amount would exceed $2,000,000'' and inserting
``$4,500,000 (or if the gross loan amount would exceed
$5,000,000''.
(b) Prospective Repeal.--Effective January 1, 2011, section 7(a) of
the Small Business Act (15 U.S.C. 636(a)) is amended--
(1) in paragraph (2)(A)--
(A) in clause (i), by striking ``90 percent'' and
inserting ``75 percent''; and
(B) in clause (ii), by striking ``90 percent'' and
inserting ``85 percent''; and
(2) in paragraph (3)(A), by striking ``$4,500,000'' and
inserting ``$3,750,000''.
SEC. 1112. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM.
Section 502(2)(A) of the Small Business Investment Act of 1958 (15
U.S.C. 696(2)(A)) is amended--
(1) in clause (i), by striking ``$1,500,000'' and inserting
``$5,000,000'';
(2) in clause (ii), by striking ``$2,000,000'' and
inserting ``$5,000,000'';
(3) in clause (iii), by striking ``$4,000,000'' and
inserting ``$5,500,000'';
(4) in clause (iv), by striking ``$4,000,000'' and
inserting ``$5,500,000''; and
(5) in clause (v), by striking ``$4,000,000'' and inserting
``$5,500,000''.
SEC. 1113. MAXIMUM LOAN LIMITS UNDER MICROLOAN PROGRAM.
Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is
amended--
(1) in paragraph (1)(B)(iii), by striking ``$35,000'' and
inserting ``$50,000'';
(2) in paragraph (3)--
(A) in subparagraph (C), by striking ``$3,500,000''
and inserting ``$5,000,000''; and
(B) in subparagraph (E), by striking ``$35,000''
each place that term appears and inserting ``$50,000'';
and
(3) in paragraph (11)(B), by striking ``$35,000'' and
inserting ``$50,000''.
SEC. 1114. LOAN GUARANTEE ENHANCEMENT EXTENSIONS.
(a) Fees.--Section 501 of the American Recovery and Reinvestment
Act of 2009 (Public Law 111-5; 123 Stat. 151) is amended by striking
``September 30, 2010'' each place that term appears and inserting
``December 31, 2010''.
(b) Loan Guarantees.--Section 502(f) of division A of the American
Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 153)
is amended by striking ``May 31, 2010'' and inserting ``December 31,
2010''.
SEC. 1115. NEW MARKETS VENTURE CAPITAL COMPANY INVESTMENT LIMITATIONS.
Section 355 of the Small Business Investment Act of 1958 (15 U.S.C.
689d) is amended by adding at the end the following:
``(e) Investment Limitations.--
``(1) Definition.--In this subsection, the term `covered
New Markets Venture Capital company' means a New Markets
Venture Capital company--
``(A) granted final approval by the Administrator
under section 354(e) on or after March 1, 2002; and
``(B) that has obtained a financing from the
Administrator.
``(2) Limitation.--Except to the extent approved by the
Administrator, a covered New Markets Venture Capital company
may not acquire or issue commitments for securities under this
title for any single enterprise in an aggregate amount equal to
more than 10 percent of the sum of--
``(A) the regulatory capital of the covered New
Markets Venture Capital company; and
``(B) the total amount of leverage projected in the
participation agreement of the covered New Markets
Venture Capital.''.
SEC. 1116. ALTERNATIVE SIZE STANDARDS.
Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is
amended by adding at the end the following:
``(5) Alternative Size Standard.--
``(A) In general.--The Administrator shall establish an
alternative size standard for applicants for business loans
under section 7(a) and applicants for development company loans
under title V of the Small Business Investment Act of 1958 (15
U.S.C. 695 et seq.), that uses maximum tangible net worth and
average net income as an alternative to the use of industry
standards.
``(B) Interim rule.--Until the date on which the
alternative size standard established under subparagraph (A) is
in effect, an applicant for a business loan under section 7(a)
or an applicant for a development company loan under title V of
the Small Business Investment Act of 1958 may be eligible for
such a loan if--
``(i) the maximum tangible net worth of the
applicant is not more than $15,000,000; and
``(ii) the average net income after Federal income
taxes (excluding any carry-over losses) of the
applicant for the 2 full fiscal years before the date
of the application is not more than $5,000,000.''.
SEC. 1117. SALE OF 7(A) LOANS IN SECONDARY MARKET.
Section 5(g) of the Small Business Act (15 U.S.C. 634(g)) is
amended by adding at the end the following:
``(6) If the amount of the guaranteed portion of any loan under
section 7(a) is more than $500,000, the Administrator shall, upon
request of a pool assembler, divide the loan guarantee into increments
of $500,000 and 1 increment of any remaining amount less than $500,000,
in order to permit the maximum amount of any loan in a pool to be not
more than $500,000. Only 1 increment of any loan guarantee divided
under this paragraph may be included in the same pool. Increments of
loan guarantees to different borrowers that are divided under this
paragraph may be included in the same pool.''.
SEC. 1118. ONLINE LENDING PLATFORM.
It is the sense of Congress that the Administrator of the Small
Business Administration should establish a website that--
(1) lists each lender that makes loans guaranteed by the
Small Business Administration and provides information about
the loan rates of each such lender; and
(2) allows prospective borrowers to compare rates on loans
guaranteed by the Small Business Administration.
SEC. 1119. SBA SECONDARY MARKET GUARANTEE AUTHORITY.
Section 503(f) of division A of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 155) is amended
by striking ``on the date 2 years after the date of enactment of this
section'' and inserting ``2 years after the date of the first sale of a
pool of first lien position 504 loans guaranteed under this section to
a third-party investor''.
PART II--SMALL BUSINESS ACCESS TO CAPITAL
SEC. 1122. LOW-INTEREST REFINANCING UNDER THE LOCAL DEVELOPMENT
BUSINESS LOAN PROGRAM.
(a) Refinancing.--Section 502(7) of the Small Business Investment
Act of 1958 (15 U.S.C. 696(7)) is amended by adding at the end the
following:
``(C) Refinancing not involving expansions.--
``(i) Definitions.--In this subparagraph--
``(I) the term `borrower' means a
small business concern that submits an
application to a development company
for financing under this subparagraph;
``(II) the term `eligible fixed
asset' means tangible property relating
to which the Administrator may provide
financing under this section; and
``(III) the term `qualified debt'
means indebtedness--
``(aa) that--
``(AA) was incurred
not less than 2 years
before the date of the
application for
assistance under this
subparagraph;
``(BB) is a
commercial loan;
``(CC) is not
subject to a guarantee
by a Federal agency;
``(DD) the proceeds
of which were used to
acquire an eligible
fixed asset;
``(EE) was incurred
for the benefit of the
small business concern;
and
``(FF) is
collateralized by
eligible fixed assets;
and
``(bb) for which the
borrower has been current on
all payments for not less than
1 year before the date of the
application.
``(ii) Authority.--A project that does not
involve the expansion of a small business
concern may include the refinancing of
qualified debt if--
``(I) the amount of the financing
is not more than 90 percent of the
value of the collateral for the
financing, except that, if the
appraised value of the eligible fixed
assets serving as collateral for the
financing is less than the amount equal
to 125 percent of the amount of the
financing, the borrower may provide
additional cash or other collateral to
eliminate any deficiency;
``(II) the borrower has been in
operation for all of the 2-year period
ending on the date of the loan; and
``(III) for a financing for which
the Administrator determines there will
be an additional cost attributable to
the refinancing of the qualified debt,
the borrower agrees to pay a fee in an
amount equal to the anticipated
additional cost.
``(iii) Financing for business expenses.--
``(I) Financing for business
expenses.--The Administrator may
provide financing to a borrower that
receives financing that includes a
refinancing of qualified debt under
clause (ii), in addition to the
refinancing under clause (ii), to be
used solely for the payment of business
expenses.
``(II) Application for financing.--
An application for financing under
subclause (I) shall include--
``(aa) a specific
description of the expenses for
which the additional financing
is requested; and
``(bb) an itemization of
the amount of each expense.
``(III) Condition on additional
financing.--A borrower may not use any
part of the financing under this clause
for non-business purposes.
``(iv) Loans based on jobs.--
``(I) Job creation and retention
goals.--
``(aa) In general.--The
Administrator may provide
financing under this
subparagraph for a borrower
that meets the job creation
goals under subsection (d) or
(e) of section 501.
``(bb) Alternate job
retention goal.--The
Administrator may provide
financing under this
subparagraph to a borrower that
does not meet the goals
described in item (aa) in an
amount that is not more than
the product obtained by
multiplying the number of
employees of the borrower by
$65,000.
``(II) Number of employees.--For
purposes of subclause (I), the number
of employees of a borrower is equal to
the sum of--
``(aa) the number of full-
time employees of the borrower
on the date on which the
borrower applies for a loan
under this subparagraph; and
``(bb) the product obtained
by multiplying--
``(AA) the number
of part-time employees
of the borrower on the
date on which the
borrower applies for a
loan under this
subparagraph; by
``(BB) the quotient
obtained by dividing
the average number of
hours each part time
employee of the
borrower works each
week by 40.
``(v) Nondelegation.--Notwithstanding
section 508(e), the Administrator may not
permit a premier certified lender to approve or
disapprove an application for assistance under
this subparagraph.
``(vi) Total amount of loans.--The
Administrator may provide not more than a total
of $7,500,000,000 of financing under this
subparagraph for each fiscal year.''.
(b) Prospective Repeal.--Effective 2 years after the date of
enactment of this Act, section 502(7) of the Small Business Investment
Act of 1958 (15 U.S.C. 696(7)) is amended by striking subparagraph (C).
(c) Technical Correction.--Section 502(2)(A)(i) of the Small
Business Investment Act of 1958 (15 U.S.C. 696(2)(A)(i)) is amended by
striking ``subparagraph (B) or (C)'' and inserting ``clause (ii),
(iii), (iv), or (v)''.
PART III--OTHER MATTERS
SEC. 1131. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.
(a) In General.--Section 7 of the Small Business Act (15 U.S.C.
636) is amended by striking subsection (l) and inserting the following:
``(l) Small Business Intermediary Lending Pilot Program.--
``(1) Definitions.--In this subsection--
``(A) the term `eligible intermediary'--
``(i) means a private, nonprofit entity
that--
``(I) seeks or has been awarded a
loan from the Administrator to make
loans to small business concerns under
this subsection; and
``(II) has not less than 1 year of
experience making loans to startup,
newly established, or growing small
business concerns; and
``(ii) includes--
``(I) a private, nonprofit
community development corporation;
``(II) a consortium of private,
nonprofit organizations or nonprofit
community development corporations; and
``(III) an agency of or nonprofit
entity established by a Native American
Tribal Government; and
``(B) the term `Program' means the small business
intermediary lending pilot program established under
paragraph (2).
``(2) Establishment.--There is established a 3-year small
business intermediary lending pilot program, under which the
Administrator may make direct loans to eligible intermediaries,
for the purpose of making loans to startup, newly established,
and growing small business concerns.
``(3) Purposes.--The purposes of the Program are--
``(A) to assist small business concerns in areas
suffering from a lack of credit due to poor economic
conditions or changes in the financial market; and
``(B) to establish a loan program under which the
Administrator may provide loans to eligible
intermediaries to enable the eligible intermediaries to
provide loans to startup, newly established, and
growing small business concerns for working capital,
real estate, or the acquisition of materials, supplies,
or equipment.
``(4) Loans to eligible intermediaries.--
``(A) Application.--Each eligible intermediary
desiring a loan under this subsection shall submit an
application to the Administrator that describes--
``(i) the type of small business concerns
to be assisted;
``(ii) the size and range of loans to be
made;
``(iii) the interest rate and terms of
loans to be made;
``(iv) the geographic area to be served and
the economic, poverty, and unemployment
characteristics of the area;
``(v) the status of small business concerns
in the area to be served and an analysis of the
availability of credit; and
``(vi) the qualifications of the applicant
to carry out this subsection.
``(B) Loan limits.--No loan may be made to an
eligible intermediary under this subsection if the
total amount outstanding and committed to the eligible
intermediary by the Administrator would, as a result of
such loan, exceed $1,000,000 during the participation
of the eligible intermediary in the Program.
``(C) Loan duration.--Loans made by the
Administrator under this subsection shall be for a term
of 20 years.
``(D) Applicable interest rates.--Loans made by the
Administrator to an eligible intermediary under the
Program shall bear an annual interest rate equal to
1.00 percent.
``(E) Fees; collateral.--The Administrator may not
charge any fees or require collateral with respect to
any loan made to an eligible intermediary under this
subsection.
``(F) Delayed payments.--The Administrator shall
not require the repayment of principal or interest on a
loan made to an eligible intermediary under the Program
during the 2-year period beginning on the date of the
initial disbursement of funds under that loan.
``(G) Maximum participants and amounts.--During
each of fiscal years 2011, 2012, and 2013, the
Administrator may make loans under the Program--
``(i) to not more than 20 eligible
intermediaries; and
``(ii) in a total amount of not more than
$20,000,000.
``(5) Loans to small business concerns.--
``(A) In general.--The Administrator, through an
eligible intermediary, shall make loans to startup,
newly established, and growing small business concerns
for working capital, real estate, and the acquisition
of materials, supplies, furniture, fixtures, and
equipment.
``(B) Maximum loan.--An eligible intermediary may
not make a loan under this subsection of more than
$200,000 to any 1 small business concern.
``(C) Applicable interest rates.--A loan made by an
eligible intermediary to a small business concern under
this subsection, may have a fixed or a variable
interest rate, and shall bear an interest rate
specified by the eligible intermediary in the
application of the eligible intermediary for a loan
under this subsection.
``(D) Review restrictions.--The Administrator may
not review individual loans made by an eligible
intermediary to a small business concern before
approval of the loan by the eligible intermediary.
``(6) Termination.--The authority of the Administrator to
make loans under the Program shall terminate 3 years after the
date of enactment of the Small Business Job Creation and Access
to Capital Act of 2010.''.
(b) Rulemaking Authority.--Not later than 180 days after the date
of enactment of this Act, the Administrator shall issue regulations to
carry out section 7(l) of the Small Business Act, as amended by
subsection (a).
(c) Availability of Funds.--Any amounts provided to the
Administrator for the purposes of carrying out section 7(l) of the
Small Business Act, as amended by subsection (a), shall remain
available until expended.
SEC. 1132. PUBLIC POLICY GOALS.
Section 501(d)(3) of the Small Business Investment Act of 1958 (15
U.S.C. 695(d)(3)) is amended--
(1) in subparagraph (J), by striking ``or'' at the end;
(2) in subparagraph (K), by striking the period at the end
and inserting ``, or''; and
(3) by adding at the end the following:
``(L) reduction of rates of unemployment in labor
surplus areas, as such areas are determined by the
Secretary of Labor.''.
SEC. 1133. FLOOR PLAN PILOT PROGRAM EXTENSION.
(a) In General.--Section 7(a) of the Small Business Act (15 U.S.C.
636(a)) is amended--
(1) by redesignating paragraph (32), relating to increased
veteran participation, as added by section 208 of the Military
Reservist and Veteran Small Business Reauthorization and
Opportunity Act of 2008 (Public Law 110-186; 122 Stat. 631), as
paragraph (33); and
(2) by adding at the end the following:
``(34) Floor plan financing program.--
``(A) Definition.--In this paragraph, the term
`eligible retail good'--
``(i) means a good for which a title may be
obtained under State law; and
``(ii) includes an automobile, recreational
vehicle, boat, and manufactured home.
``(B) Program.--The Administrator may guarantee the
timely payment of an open-end extension of credit to a
small business concern, the proceeds of which may be
used for the purchase of eligible retail goods for
resale.
``(C) Amount.--An open-end extension of credit
guaranteed under this paragraph shall be in an amount
not less than $500,000 and not more than $5,000,000.
``(D) Term.--An open-end extension of credit
guaranteed under this paragraph shall have a term of
not more than 5 years.
``(E) Guarantee percentage.--The Administrator may
guarantee--
``(i) not less than 60 percent of an open-
end extension of credit under this paragraph;
and
``(ii) not more than 75 percent of an open-
end extension of credit under this paragraph.
``(F) Advance rate.--The lender for an open-end
extension of credit guaranteed under this paragraph may
allow the borrower to draw funds on the line of credit
in an amount equal to not more than 100 percent of the
value of the eligible retail goods to be purchased.''.
(b) Sunset.--Effective September 30, 2013, section 7(a) of the
Small Business Act (15 U.S.C. 636(a)) is amended--
(1) by striking paragraph (34); and
(2) by redesignating paragraph (35), as added by section
1206 of this Act, as paragraph (34).
SEC. 1134. GUARANTEES FOR BONDS AND NOTES ISSUED FOR COMMUNITY OR
ECONOMIC DEVELOPMENT PURPOSES.
The Riegle Community Development and Regulatory Improvement Act of
1994 (12 U.S.C. 4701 et seq.) is amended by inserting after section 114
(12 U.S.C. 4713) the following:
``SEC. 114A. GUARANTEES FOR BONDS AND NOTES ISSUED FOR COMMUNITY OR
ECONOMIC DEVELOPMENT PURPOSES.
``(a) Definitions.--In this section, the following definitions
shall apply:
``(1) Eligible community development financial
institution.--The term `eligible community development
financial institution' means a community development financial
institution (as described in section 1805.201 of title 12, Code
of Federal Regulations, or any successor thereto) certified by
the Secretary that has applied to a qualified issuer for, or
been granted by a qualified issuer, a loan under the Program.
``(2) Eligible community or economic development purpose.--
The term `eligible community or economic development purpose'--
``(A) means any purpose described in section
108(b); and
``(B) includes the provision of community or
economic development in low-income or underserved rural
areas.
``(3) Guarantee.--The term `guarantee' means a written
agreement between the Secretary and a qualified issuer (or
trustee), pursuant to which the Secretary ensures repayment of
the verifiable losses of principal, interest, and call premium,
if any, on notes or bonds issued by a qualified issuer to
finance or refinance loans to eligible community development
financial institutions.
``(4) Loan.--The term `loan' means any credit instrument
that is extended under the Program for any eligible community
or economic development purpose.
``(5) Master servicer.--
``(A) In general.--The term `master servicer' means
any entity approved by the Secretary in accordance with
subparagraph (B) to oversee the activities of
servicers, as provided in subsection (f)(4).
``(B) Approval criteria for master servicers.--The
Secretary shall approve or deny any application to
become a master servicer under the Program not later
than 90 days after the date on which all required
information is submitted to the Secretary, based on the
capacity and experience of the applicant in--
``(i) loan administration, servicing, and
loan monitoring;
``(ii) managing regional or national loan
intake, processing, or servicing operational
systems and infrastructure;
``(iii) managing regional or national
originator communication systems and
infrastructure;
``(iv) developing and implementing training
and other risk management strategies on a
regional or national basis; and
``(v) compliance monitoring, investor
relations, and reporting.
``(6) Program.--The term `Program' means the guarantee
Program for bonds and notes issued for eligible community or
economic development purposes established under this section.
``(7) Program administrator.--The term `Program
administrator' means an entity designated by the issuer to
perform administrative duties, as provided in subsection
(f)(2).
``(8) Qualified issuer.--
``(A) In general.--The term `qualified issuer'
means a community development financial institution (or
any entity designated to issue notes or bonds on behalf
of such community development financial institution)
that meets the qualification requirements of this
paragraph.
``(B) Approval criteria for qualified issuers.--
``(i) In general.--The Secretary shall
approve a qualified issuer for a guarantee
under the Program in accordance with the
requirements of this paragraph, and such
additional requirements as the Secretary may
establish, by regulation.
``(ii) Terms and qualifications.--A
qualified issuer shall--
``(I) have appropriate expertise,
capacity, and experience, or otherwise
be qualified to make loans for eligible
community or economic development
purposes;
``(II) provide to the Secretary--
``(aa) an acceptable
statement of the proposed
sources and uses of the funds;
and
``(bb) a capital
distribution plan that meets
the requirements of subsection
(c)(1); and
``(III) certify to the Secretary
that the bonds or notes to be
guaranteed are to be used for eligible
community or economic development
purposes.
``(C) Department opinion; timing.--
``(i) Department opinion.--Not later than
30 days after the date of a request by a
qualified issuer for approval of a guarantee
under the Program, the Secretary shall provide
an opinion regarding compliance by the issuer
with the requirements of the Program under this
section.
``(ii) Timing.--The Secretary shall approve
or deny a guarantee under this section after
consideration of the opinion provided to the
Secretary under clause (i), and in no case
later than 90 days after receipt of all
required information by the Secretary with
respect to a request for such guarantee.
``(9) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(10) Servicer.--The term `servicer' means an entity
designated by the issuer to perform various servicing duties,
as provided in subsection (f)(3).
``(b) Guarantees Authorized.--The Secretary shall guarantee
payments on bonds or notes issued by any qualified issuer, if the
proceeds of the bonds or notes are used in accordance with this section
to make loans to eligible community development financial
institutions--
``(1) for eligible community or economic development
purposes; or
``(2) to refinance loans or notes issued for such purposes.
``(c) General Program Requirements.--
``(1) In general.--A capital distribution plan meets the
requirements of this subsection, if not less than 90 percent of
the principal amount of guaranteed bonds or notes (other than
costs of issuance fees) are used to make loans for any eligible
community or economic development purpose, measured annually,
beginning at the end of the 1-year period beginning on the
issuance date of such guaranteed bonds or notes.
``(2) Relending account.--Not more than 10 percent of the
principal amount of guaranteed bonds or notes, multiplied by an
amount equal to the outstanding principal balance of issued
notes or bonds, minus the risk-share pool amount under
subsection (d), may be held in a relending account and may be
made available for new eligible community or economic
development purposes.
``(3) Limitations on unpaid principal balances.--The
proceeds of guaranteed bonds or notes under the Program may not
be used to pay fees (other than costs of issuance fees), and
shall be held in--
``(A) community or economic development loans;
``(B) a relending account, to the extent authorized
under paragraph (2); or
``(C) a risk-share pool established under
subsection (d).
``(4) Repayment.--If a qualified issuer fails to meet the
requirements of paragraph (1) by the end of the 90-day period
beginning at the end of the annual measurement period,
repayment shall be made on that portion of bonds or notes
necessary to bring the bonds or notes that remain outstanding
after such repayment into compliance with the 90 percent
requirement of paragraph (1).
``(5) Prohibited uses.--The Secretary shall, by
regulation--
``(A) prohibit, as appropriate, certain uses of
amounts from the guarantee of a bond or note under the
Program, including the use of such funds for political
activities, lobbying, outreach, counseling services, or
travel expenses; and
``(B) provide that the guarantee of a bond or note
under the Program may not be used for salaries or other
administrative costs of--
``(i) the qualified issuer; or
``(ii) any recipient of amounts from the
guarantee of a bond or note.
``(d) Risk-Share Pool.--Each qualified issuer shall, during the
term of a guarantee provided under the Program, establish a risk-share
pool, capitalized by contributions from eligible community development
financial institution participants an amount equal to 3 percent of the
guaranteed amount outstanding on the subject notes and bonds.
``(e) Guarantees.--
``(1) In general.--A guarantee issued under the Program
shall--
``(A) be for the full amount of a bond or note,
including the amount of principal, interest, and call
premiums;
``(B) be fully assignable and transferable to the
capital market, on terms and conditions that are
consistent with comparable Government-guaranteed bonds,
and satisfactory to the Secretary;
``(C) represent the full faith and credit of the
United States; and
``(D) not exceed 30 years.
``(2) Limitations.--
``(A) Annual number of guarantees.--The Secretary
shall issue not more than 10 guarantees in any calendar
year under the Program.
``(B) Guarantee amount.--The Secretary may not
guarantee any amount under the Program equal to less
than $100,000,000, but the total of all such guarantees
in any fiscal year may not exceed $1,000,000,000.
``(f) Servicing of Transactions.--
``(1) In general.--To maximize efficiencies and minimize
cost and interest rates, loans made under this section may be
serviced by qualified Program administrators, bond servicers,
and a master servicer.
``(2) Duties of program administrator.--The duties of a
Program administrator shall include--
``(A) approving and qualifying eligible community
development financial institution applications for
participation in the Program;
``(B) compliance monitoring;
``(C) bond packaging in connection with the
Program; and
``(D) all other duties and related services that
are customarily expected of a Program administrator.
``(3) Duties of servicer.--The duties of a servicer shall
include--
``(A) billing and collecting loan payments;
``(B) initiating collection activities on past-due
loans;
``(C) transferring loan payments to the master
servicing accounts;
``(D) loan administration and servicing;
``(E) systematic and timely reporting of loan
performance through remittance and servicing reports;
``(F) proper measurement of annual outstanding loan
requirements; and
``(G) all other duties and related services that
are customarily expected of servicers.
``(4) Duties of master servicer.--The duties of a master
servicer shall include--
``(A) tracking the movement of funds between the
accounts of the master servicer and any other servicer;
``(B) ensuring orderly receipt of the monthly
remittance and servicing reports of the servicer;
``(C) monitoring the collection comments and
foreclosure actions;
``(D) aggregating the reporting and distribution of
funds to trustees and investors;
``(E) removing and replacing a servicer, as
necessary;
``(F) loan administration and servicing;
``(G) systematic and timely reporting of loan
performance compiled from all bond servicers' reports;
``(H) proper distribution of funds to investors;
and
``(I) all other duties and related services that
are customarily expected of a master servicer.
``(g) Fees.--
``(1) In general.--A qualified issuer that receives a
guarantee issued under this section on a bond or note shall pay
a fee to the Secretary, in an amount equal to 10 basis points
of the amount of the unpaid principal of the bond or note
guaranteed.
``(2) Payment.--A qualified issuer shall pay the fee
required under this subsection on an annual basis.
``(3) Use of fees.--Fees collected by the Secretary under
this subsection shall be used to reimburse the Department of
the Treasury for any administrative costs incurred by the
Department in implementing the Program established under this
section.
``(h) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to the Secretary, such sums as are necessary to carry out this
section.
``(2) Use of fees.--To the extent that the amount of funds
appropriated for a fiscal year under paragraph (1) are not
sufficient to carry out this section, the Secretary may use the
fees collected under subsection (g) for the cost of providing
guarantees of bonds and notes under this section.
``(i) Investment in Guaranteed Bonds Ineligible for Community
Reinvestment Act Purposes.--Notwithstanding any other provision of law,
any investment by a financial institution in bonds or notes guaranteed
under the Program shall not be taken into account in assessing the
record of such institution for purposes of the Community Reinvestment
Act of 1977 (12 U.S.C. 2901).
``(j) Administration.--
``(1) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary shall promulgate
regulations to carry out this section.
``(2) Implementation.--Not later than 2 years after the
date of enactment of this section, the Secretary shall
implement this section.
``(k) Termination.--This section is repealed, and the authority
provided under this section shall terminate, on September 30, 2014.''.
SEC. 1135. TEMPORARY EXPRESS LOAN ENHANCEMENT.
(a) In General.--Section 7(a)(31)(D) of the Small Business Act (15
U.S.C. 636(a)(31)(D)) is amended by striking ``$350,000'' and inserting
``$1,000,000''.
(b) Prospective Repeal.--Effective 1 year after the date of
enactment of this Act, section 7(a)(31)(D) of the Small Business Act
(15 U.S.C. 636(a)(31)(D)) is amended by striking ``$1,000,000'' and
inserting ``$350,000''.
SEC. 1136. PROHIBITION ON USING TARP FUNDS OR TAX INCREASES.
(a) In General.--Except as provided in subsection (b), nothing in
section 1111, 1112, 1113, 1114, 1115, 1116, 1117, 1118, 1122, or 1131,
or an amendment made by such sections, shall be construed to limit the
ability of Congress to appropriate funds.
(b) TARP Funds and Tax Increases.--
(1) In general.--Any covered amounts may not be used to
carry out section 1111, 1112, 1113, 1114, 1115, 1116, 1117,
1118, 1122, or 1131, or an amendment made by such sections.
(2) Definition.--In this subsection, the term ``covered
amounts'' means--
(A) the amounts made available to the Secretary of
the Treasury under title I of the Emergency Economic
Stabilization Act of 2008 S.C. 5201 et seq.) to
purchase (under section 101) or guarantee (under
section 102) assets under that Act; and
(B) any revenue increase attributable to any
amendment to the Internal Revenue Code of 1986 made
during the period beginning on the date of enactment of
this Act and ending on December 31, 2010.
Subtitle B--Small Business Trade and Exporting
SEC. 1201. SHORT TITLE.
This subtitle may be cited as the ``Small Business Export
Enhancement and International Trade Act of 2010''.
SEC. 1202. DEFINITIONS.
(a) Definitions.--In this subtitle--
(1) the term ``Associate Administrator'' means the
Associate Administrator for International Trade appointed under
section 22(a)(2) of the Small Business Act, as amended by this
subtitle;
(2) the term ``Export Assistance Center'' means a one-stop
shop referred to in section 2301(b)(8) of the Omnibus Trade and
Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); and
(3) the term ``rural small business concern'' means a small
business concern located in a rural area, as that term is
defined in section 1393(a)(2) of the Internal Revenue Code of
1986.
(b) Technical and Conforming Amendments.--
(1) Definitions.--Section 3 of the Small Business Act (15
U.S.C. 632) is amended by adding at the end the following:
``(t) Small Business Development Center.--In this Act, the term
`small business development center' means a small business development
center described in section 21.
``(u) Region of the Administration.--In this Act, the term `region
of the Administration' means the geographic area served by a regional
office of the Administration established under section 4(a).''.
(2) Conforming amendment.--Section 4(b)(3)(B)(x) of the
Small Business Act (15 U.S.C. 633(b)(3)(B)(x)) is amended by
striking ``Administration district and region'' and inserting
``district and region of the Administration''.
SEC. 1203. OFFICE OF INTERNATIONAL TRADE.
(a) Establishment.--Section 22 of the Small Business Act (15 U.S.C.
649) is amended--
(1) by striking ``Sec. 22. (a) There'' and inserting the
following:
``SEC. 22. OFFICE OF INTERNATIONAL TRADE.
``(a) Establishment.--
``(1) Office.--There''; and
(2) in subsection (a)--
(A) in paragraph (1), as so designated, by striking
the period and inserting ``for the primary purposes of
increasing--
``(A) the number of small business concerns that
export; and
``(B) the volume of exports by small business
concerns.''; and
(B) by adding at the end the following:
``(2) Associate administrator.--The head of the Office
shall be the Associate Administrator for International Trade,
who shall be responsible to the Administrator.''.
(b) Authority for Additional Associate Administrator.--Section
4(b)(1) of the Small Business Act (15 U.S.C. 633(b)(1)) is amended--
(1) in the fifth sentence, by striking ``five Associate
Administrators'' and inserting ``Associate Administrators'';
and
(2) by adding at the end the following: ``One such
Associate Administrator shall be the Associate Administrator
for International Trade, who shall be the head of the Office of
International Trade established under section 22.''.
(c) Discharge of International Trade Responsibilities of
Administration.--Section 22 of the Small Business Act (15 U.S.C. 649)
is amended by adding at the end the following:
``(h) Discharge of International Trade Responsibilities of
Administration.--The Administrator shall ensure that--
``(1) the responsibilities of the Administration regarding
international trade are carried out by the Associate
Administrator;
``(2) the Associate Administrator has sufficient resources
to carry out such responsibilities; and
``(3) the Associate Administrator has direct supervision
and control over--
``(A) the staff of the Office; and
``(B) any employee of the Administration whose
principal duty station is an Export Assistance Center,
or any successor entity.''.
(d) Role of Associate Administrator in Carrying Out International
Trade Policy.--Section 2(b)(1) of the Small Business Act (15 U.S.C.
631(b)(1)) is amended in the matter preceding subparagraph (A)--
(1) by inserting ``the Administrator of'' before ``the
Small Business Administration''; and
(2) by inserting ``through the Associate Administrator for
International Trade, and'' before ``in cooperation with''.
(e) Implementation Date.--Not later than 90 days after the date of
enactment of this Act, the Administrator of the Small Business
Administration shall appoint an Associate Administrator for
International Trade under section 22(a) of the Small Business Act (15
U.S.C. 649(a)), as added by this section.
SEC. 1204. DUTIES OF THE OFFICE OF INTERNATIONAL TRADE.
(a) Amendments to Section 22.--Section 22 of the Small Business Act
(15 U.S.C. 649) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Trade Distribution Network.--The Associate Administrator,
working in close cooperation with the Secretary of Commerce, the United
States Trade Representative, the Secretary of Agriculture, the
Secretary of State, the President of the Export-Import Bank of the
United States, the President of the Overseas Private Investment
Corporation, Director of the United States Trade and Development
Agency, and other relevant Federal agencies, small business development
centers engaged in export promotion efforts, Export Assistance Centers,
regional and district offices of the Administration, the small business
community, and relevant State and local export promotion programs,
shall--
``(1) maintain a distribution network, using regional and
district offices of the Administration, the small business
development center network, networks of women's business
centers, the Service Corps of Retired Executives authorized by
section 8(b)(1), and Export Assistance Centers, for programs
relating to--
``(A) trade promotion;
``(B) trade finance;
``(C) trade adjustment assistance;
``(D) trade remedy assistance; and
``(E) trade data collection;
``(2) aggressively market the programs described in
paragraph (1) and disseminate information, including
computerized marketing data, to small business concerns on
exporting trends, market-specific growth, industry trends, and
international prospects for exports;
``(3) promote export assistance programs through the
district and regional offices of the Administration, the small
business development center network, Export Assistance Centers,
the network of women's business centers, chapters of the
Service Corps of Retired Executives, State and local export
promotion programs, and partners in the private sector; and
``(4) give preference in hiring or approving the transfer
of any employee into the Office or to a position described in
subsection (c)(9) to otherwise qualified applicants who are
fluent in a language in addition to English, to--
``(A) accompany small business concerns on foreign
trade missions; and
``(B) translate documents, interpret conversations,
and facilitate multilingual transactions, including by
providing referral lists for translation services, if
required.'';
(2) in subsection (c)--
(A) by striking ``(c) The Office'' and inserting
the following:
``(c) Promotion of Sales Opportunities.--The Associate
Administrator'';
(B) by redesignating paragraphs (1) through (8) as
paragraphs (2) through (9), respectively;
(C) by inserting before paragraph (2), as so
redesignated, the following:
``(1) establish annual goals for the Office relating to--
``(A) enhancing the exporting capability of small
business concerns and small manufacturers;
``(B) facilitating technology transfers;
``(C) enhancing programs and services to assist
small business concerns and small manufacturers to
compete effectively and efficiently in foreign markets;
``(D) increasing the ability of small business
concerns to access capital; and
``(E) disseminating information concerning Federal,
State, and private programs and initiatives;'';
(D) in paragraph (2), as so redesignated, by
striking ``mechanism for'' and all that follows through
``(D) assisting'' and inserting the following:
``mechanism for--
``(A) identifying subsectors of the small business
community with strong export potential;
``(B) identifying areas of demand in foreign
markets;
``(C) prescreening foreign buyers for commercial
and credit purposes; and
``(D) assisting'';
(E) in paragraph (3), as so redesignated, by
striking ``assist small businesses in the formation and
utilization of'' and inserting ``assist small business
concerns in forming and using'';
(F) in paragraph (4), as so redesignated--
(i) by striking ``local'' and inserting
``district'';
(ii) by striking ``existing'';
(iii) by striking ``Small Business
Development Center network'' and inserting
``small business development center network'';
and
(iv) by striking ``Small Business
Development Center Program'' and inserting
``small business development center program'';
(G) in paragraph (5), as so redesignated--
(i) in subparagraph (A), by striking
``Gross State Produce'' and inserting ``Gross
State Product'';
(ii) in subparagraph (B), by striking
``SIC'' each place it appears and inserting
``North American Industry Classification
System''; and
(iii) in subparagraph (C), by striking
``small businesses'' and inserting ``small
business concerns'';
(H) in paragraph (6), as so redesignated, by
striking the period at the end and inserting a
semicolon;
(I) in paragraph (7), as so redesignated--
(i) in the matter preceding subparagraph
(A)--
(I) by inserting ``concerns'' after
``small business''; and
(II) by striking ``current'' and
inserting ``up to date'';
(ii) in subparagraph (A), by striking
``Administration's regional offices'' and
inserting ``regional and district offices of
the Administration'';
(iii) in subparagraph (B) by striking
``current'';
(iv) in subparagraph (C), by striking
``current''; and
(v) by striking ``small businesses'' each
place that term appears and inserting ``small
business concerns'';
(J) in paragraph (8), as so redesignated, by
striking and at the end;
(K) in paragraph (9), as so redesignated--
(i) in the matter preceding subparagraph
(A)--
(I) by striking ``full-time export
development specialists to each
Administration regional office and
assigning''; and
(II) by striking ``person in each
district office. Such specialists'' and
inserting ``individual in each district
office and providing each
Administration regional office with a
full-time export development
specialist, who'';
(ii) in subparagraph (B)--
(I) by striking ``current''; and
(II) by striking ``with'' and
inserting ``in'';
(iii) in subparagraph (D)--
(I) by striking ``Administration
personnel involved in granting'' and
inserting ``personnel of the
Administration involved in making'';
and
(II) by striking ``and'' at the
end;
(iv) in subparagraph (E)--
(I) by striking ``small businesses'
needs'' and inserting ``the needs of
small business concerns''; and
(II) by striking the period at the
end and inserting a semicolon;
(v) by adding at the end the following:
``(F) participate, jointly with employees of the
Office, in an annual training program that focuses on
current small business needs for exporting; and
``(G) develop and conduct training programs for
exporters and lenders, in cooperation with the Export
Assistance Centers, the Department of Commerce, the
Department of Agriculture, small business development
centers, women's business centers, the Export-Import
Bank of the United States, the Overseas Private
Investment Corporation, and other relevant Federal
agencies;''; and
(vi) by striking ``small businesses'' each
place that term appears and inserting ``small
business concerns''; and
(L) by adding at the end the following:
``(10) make available on the website of the Administration
the name and contact information of each individual described
in paragraph (9);
``(11) carry out a nationwide marketing effort using
technology, online resources, training, and other strategies to
promote exporting as a business development opportunity for
small business concerns;
``(12) disseminate information to the small business
community through regional and district offices of the
Administration, the small business development center network,
Export Assistance Centers, the network of women's business
centers, chapters of the Service Corps of Retired Executives
authorized by section 8(b)(1), State and local export promotion
programs, and partners in the private sector regarding
exporting trends, market-specific growth, industry trends, and
prospects for exporting; and
``(13) establish and carry out training programs for the
staff of the regional and district offices of the
Administration and resource partners of the Administration on
export promotion and providing assistance relating to
exports.'';
(3) in subsection (d)--
(A) by redesignating paragraphs (1) through (5) as
clauses (i) through (v), respectively, and adjusting
the margins accordingly;
(B) by striking ``(d) The Office'' and inserting
the following:
``(d) Export Financing Programs.--
``(1) In general.--The Associate Administrator''; and
(C) by striking ``To accomplish this goal, the
Office shall work'' and inserting the following:
``(2) Trade finance specialist.--To accomplish the goal
established under paragraph (1), the Associate Administrator
shall--
``(A) designate at least 1 individual within the
Administration as a trade finance specialist to oversee
international loan programs and assist Administration
employees with trade finance issues; and
``(B) work'';
(4) in subsection (e), by striking ``(e) The Office'' and
inserting the following:
``(e) Trade Remedies.--The Associate Administrator'';
(5) by amending subsection (f) to read as follows:
``(f) Reporting Requirement.--The Associate Administrator shall
submit an annual report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small Business of
the House of Representatives that contains--
``(1) a description of the progress of the Office in
implementing the requirements of this section;
``(2) a detailed account of the results of export growth
activities of the Administration, including the activities of
each district and regional office of the Administration, based
on the performance measures described in subsection (i);
``(3) an estimate of the total number of jobs created or
retained as a result of export assistance provided by the
Administration and resource partners of the Administration;
``(4) for any travel by the staff of the Office, the
destination of such travel and the benefits to the
Administration and to small business concerns resulting from
such travel; and
``(5) a description of the participation by the Office in
trade negotiations.'';
(6) in subsection (g), by striking ``(g) The Office'' and
inserting the following:
``(g) Studies.--The Associate Administrator''; and
(7) by adding after subsection (h), as added by section
1203 of this subtitle, the following:
``(i) Export and Trade Counseling.--
``(1) Definition.--In this subsection--
``(A) the term `lead small business development
center' means a small business development center that
has received a grant from the Administration; and
``(B) the term `lead women's business center' means
a women's business center that has received a grant
from the Administration.
``(2) Certification program.--The Administrator shall
establish an export and trade counseling certification program
to certify employees of lead small business development centers
and lead women's business centers in providing export
assistance to small business concerns.
``(3) Number of certified employees.--The Administrator
shall ensure that the number of employees of each lead small
business development center who are certified in providing
export assistance is not less than the lesser of--
``(A) 5; or
``(B) 10 percent of the total number of employees
of the lead small business development center.
``(4) Reimbursement for certification.--
``(A) In general.--Subject to the availability of
appropriations, the Administrator shall reimburse a
lead small business development center or a lead
women's business center for costs relating to the
certification of an employee of the lead small business
center or lead women's business center in providing
export assistance under the program established under
paragraph (2).
``(B) Limitation.--The total amount reimbursed by
the Administrator under subparagraph (A) may not exceed
$350,000 in any fiscal year.
``(j) Performance Measures.--
``(1) In general.--The Associate Administrator shall
develop performance measures for the Administration to support
export growth goals for the activities of the Office under this
section that include--
``(A) the number of small business concerns that--
``(i) receive assistance from the
Administration;
``(ii) had not exported goods or services
before receiving the assistance described in
clause (i); and
``(iii) export goods or services;
``(B) the number of small business concerns
receiving assistance from the Administration that
export goods or services to a market outside the United
States into which the small business concern did not
export before receiving the assistance;
``(C) export revenues by small business concerns
assisted by programs of the Administration;
``(D) the number of small business concerns
referred to an Export Assistance Center or a small
business development center by the staff of the Office;
``(E) the number of small business concerns
referred to the Administration by an Export Assistance
Center or a small business development center; and
``(F) the number of small business concerns
referred to the Department of Commerce, the Department
of Agriculture, the Department of State, the Export-
Import Bank of the United States, the Overseas Private
Investment Corporation, or the United States Trade and
Development Agency by the staff of the Office, an
Export Assistance Center, or a small business
development center.
``(2) Joint performance measures.--The Associate
Administrator shall develop joint performance measures for the
district offices of the Administration and the Export
Assistance Centers that include the number of export loans made
under--
``(A) section 7(a)(16);
``(B) the Export Working Capital Program
established under section 7(a)(14);
``(C) the Preferred Lenders Program, as defined in
section 7(a)(2)(C)(ii); and
``(D) the export express program established under
section 7(a)(34).
``(3) Consistency of tracking.--The Associate
Administrator, in coordination with the departments and
agencies that are represented on the Trade Promotion
Coordinating Committee established under section 2312 of the
Export Enhancement Act of 1988 (15 U.S.C. 4727) and the small
business development center network, shall develop a system to
track exports by small business concerns, including information
relating to the performance measures developed under paragraph
(1), that is consistent with systems used by the departments
and agencies and the network.''.
(b) Report.--Not later than 60 days after the date of enactment of
this Act, the Administrator shall submit a report to the Committee on
Small Business and Entrepreneurship of the Senate and the Committee on
Small Business of the House of Representatives on any travel by the
staff of the Office of International Trade of the Administration,
during the period beginning on October 1, 2004, and ending on the date
of enactment of the Act, including the destination of such travel and
the benefits to the Administration and to small business concerns
resulting from such travel.
SEC. 1205. EXPORT ASSISTANCE CENTERS.
(a) Export Assistance Centers.--Section 22 of the Small Business
Act (15 U.S.C. 649), as amended by this subtitle, is amended by adding
at the end the following:
``(k) Export Assistance Centers.--
``(1) Export finance specialists.--
``(A) Minimum number of export finance
specialists.--On and after the date that is 90 days
after the date of enactment of this subsection, the
Administrator, in coordination with the Secretary of
Commerce, shall ensure that the number of export
finance specialists is not less than the number of such
employees so assigned on January 1, 2003.
``(B) Export finance specialists assigned to each
region of the administration.--On and after the date
that is 2 years after the date of enactment of this
subsection, the Administrator, in coordination with the
Secretary of Commerce, shall ensure that there are not
fewer than 3 export finance specialists in each region
of the Administration.
``(2) Placement of export finance specialists.--
``(A) Priority.--The Administrator shall give
priority, to the maximum extent practicable, to placing
employees of the Administration at any Export
Assistance Center that--
``(i) had an Administration employee
assigned to the Export Assistance Center before
January 2003; and
``(ii) has not had an Administration
employee assigned to the Export Assistance
Center during the period beginning January
2003, and ending on the date of enactment of
this subsection, either through retirement or
reassignment.
``(B) Needs of exporters.--The Administrator shall,
to the maximum extent practicable, strategically assign
Administration employees to Export Assistance Centers,
based on the needs of exporters.
``(C) Rule of construction.--Nothing in this
subsection may be construed to require the
Administrator to reassign or remove an export finance
specialist who is assigned to an Export Assistance
Center on the date of enactment of this subsection.
``(3) Goals.--The Associate Administrator shall work with
the Department of Commerce, the Export-Import Bank of the
United States, and the Overseas Private Investment Corporation
to establish shared annual goals for the Export Assistance
Centers.
``(4) Oversight.--The Associate Administrator shall
designate an individual within the Administration to oversee
all activities conducted by Administration employees assigned
to Export Assistance Centers.
``(l) Definitions.--In this section--
``(1) the term `Associate Administrator' means the
Associate Administrator for International Trade described in
subsection (a)(2);
``(2) the term `Export Assistance Center' means a one-stop
shop for United States exporters established by the United
States and Foreign Commercial Service of the Department of
Commerce pursuant to section 2301(b)(8) of the Omnibus Trade
and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8));
``(3) the term `export finance specialist' means a full-
time equivalent employee of the Office assigned to an Export
Assistance Center to carry out the duties described in
subsection (e); and
``(4) the term `Office' means the Office of International
Trade established under subsection (a)(1).''.
(b) Study and Report on Filling Gaps in High-and-Low-Export Volume
Areas.--
(1) Study and report.--Not later than 6 months after the
date of enactment of this Act, and every 2 years thereafter,
the Administrator shall--
(A) conduct a study of--
(i) the volume of exports for each State;
(ii) the availability of export finance
specialists in each State;
(iii) the number of exporters in each State
that are small business concerns;
(iv) the percentage of exporters in each
State that are small business concerns;
(v) the change, if any, in the number of
exporters that are small business concerns in
each State--
(I) for the first study conducted
under this subparagraph, during the 10-
year period ending on the date of
enactment of this Act; and
(II) for each subsequent study,
during the 10-year period ending on the
date the study is commenced;
(vi) the total value of the exports in each
State by small business concerns;
(vii) the percentage of the total volume of
exports in each State that is attributable to
small business concerns; and
(viii) the change, if any, in the
percentage of the total volume of exports in
each State that is attributable to small
business concerns--
(I) for the first study conducted
under this subparagraph, during the 10-
year period ending on the date of
enactment of this Act; and
(II) for each subsequent study,
during the 10-year period ending on the
date the study is commenced; and
(B) submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on
Small Business of the House of Representatives a report
containing--
(i) the results of the study under
subparagraph (A);
(ii) to the extent practicable, a
recommendation regarding how to eliminate gaps
between the supply of and demand for export
finance specialists in the 15 States that have
the greatest volume of exports, based upon the
most recent data available from the Department
of Commerce;
(iii) to the extent practicable, a
recommendation regarding how to eliminate gaps
between the supply of and demand for export
finance specialists in the 15 States that have
the lowest volume of exports, based upon the
most recent data available from the Department
of Commerce; and
(iv) such additional information as the
Administrator determines is appropriate.
(2) Definition.--In this subsection, the term ``export
finance specialist'' has the meaning given that term in section
22(l) of the Small Business Act, as added by this title.
SEC. 1206. INTERNATIONAL TRADE FINANCE PROGRAMS.
(a) Loan Limits.--
(1) Total amount outstanding.--Section 7(a)(3)(B) of the
Small Business Act (15 U.S.C. 636(a)(3)(B)) is amended by
striking ``$1,750,000, of which not more than $1,250,000'' and
inserting ``$4,500,000 (or if the gross loan amount would
exceed $5,000,000), of which not more than $4,000,000''.
(2) Participation.--Section 7(a)(2) of the Small Business
Act (15 U.S.C. 636(a)(2)) is amended--
(A) in subparagraph (A), in the matter preceding
clause (i), by striking ``subparagraph (B)'' and
inserting ``subparagraphs (B), (D), and (E)'';
(B) in subparagraph (D), by striking
``Notwithstanding subparagraph (A), in'' and inserting
``In''; and
(C) by adding at the end the following:
``(E) Participation in international trade loan.--
In an agreement to participate in a loan on a deferred
basis under paragraph (16), the participation by the
Administration may not exceed 90 percent.''.
(b) Working Capital.--Section 7(a)(16)(A) of the Small Business Act
(15 U.S.C. 636(a)(16)(A)) is amended--
(1) in the matter preceding clause (i), by striking ``in--
'' and inserting ``--'';
(2) in clause (i)--
(A) by inserting ``in'' after ``(i)''; and
(B) by striking ``or'' at the end;
(3) in clause (ii)--
(A) by inserting ``in'' after ``(ii)''; and
(B) by striking the period at the end and inserting
``, including any debt that qualifies for refinancing
under any other provision of this subsection; or''; and
(4) by adding at the end the following:
``(iii) by providing working capital.''.
(c) Collateral.--Section 7(a)(16)(B) of the Small Business Act (15
U.S.C. 636(a)(16)(B)) is amended--
(1) by striking ``Each loan'' and inserting the following:
``(i) In general.--Except as provided in
clause (ii), each loan''; and
(2) by adding at the end the following:
``(ii) Exception.--A loan under this
paragraph may be secured by a second lien
position on the property or equipment financed
by the loan or on other assets of the small
business concern, if the Administrator
determines the lien provides adequate assurance
of the payment of the loan.''.
(d) Export Working Capital Program.--Section 7(a) of the Small
Business Act (15 U.S.C. 636(a)) is amended--
(1) in paragraph (2)(D), by striking ``not exceed'' and
inserting ``be''; and
(2) in paragraph (14)--
(A) by striking ``(A) The Administration'' and
inserting the following: ``Export working capital
program.--
``(A) In general.--The Administrator'';
(B) by striking ``(B) When considering'' and
inserting the following:
``(C) Considerations.--When considering'';
(C) by striking ``(C) The Administration'' and
inserting the following:
``(D) Marketing.--The Administrator''; and
(D) by inserting after subparagraph (A) the
following:
``(B) Terms.--
``(i) Loan amount.--The Administrator may
not guarantee a loan under this paragraph of
more than $5,000,000.
``(ii) Fees.--
``(I) In general.--For a loan under
this paragraph, the Administrator shall
collect the fee assessed under
paragraph (23) not more frequently than
once each year.
``(II) Untapped credit.--The
Administrator may not assess a fee on
capital that is not accessed by the
small business concern.''.
(e) Participation in Preferred Lenders Program.--Section 7(a)(2)(C)
of the Small Business Act (15 U.S.C. 636(a)(2)(C)) is amended--
(1) by redesignating clause (ii) as clause (iii); and
(2) by inserting after clause (i) the following:
``(ii) Export-import bank lenders.--Any
lender that is participating in the Delegated
Authority Lender Program of the Export-Import
Bank of the United States (or any successor to
the Program) shall be eligible to participate
in the Preferred Lenders Program.''.
(f) Export Express Program.--Section 7(a) of the Small Business Act
(15 U.S.C. 636(a)) is amended by adding at the end the following:
``(35) Export express program.--
``(A) Definitions.--In this paragraph--
``(i) the term `export development
activity' includes--
``(I) obtaining a standby letter of
credit when required as a bid bond,
performance bond, or advance payment
guarantee;
``(II) participation in a trade
show that takes place outside the
United States;
``(III) translation of product
brochures or catalogues for use in
markets outside the United States;
``(IV) obtaining a general line of
credit for export purposes;
``(V) performing a service contract
from buyers located outside the United
States;
``(VI) obtaining transaction-
specific financing associated with
completing export orders;
``(VII) purchasing real estate or
equipment to be used in the production
of goods or services for export;
``(VIII) providing term loans or
other financing to enable a small
business concern, including an export
trading company and an export
management company, to develop a market
outside the United States; and
``(IX) acquiring, constructing,
renovating, modernizing, improving, or
expanding a production facility or
equipment to be used in the United
States in the production of goods or
services for export; and
``(ii) the term `express loan' means a loan
in which a lender uses to the maximum extent
practicable the loan analyses, procedures, and
documentation of the lender to provide
expedited processing of the loan application.
``(B) Authority.--The Administrator may guarantee
the timely payment of an express loan to a small
business concern made for an export development
activity.
``(C) Level of participation.--
``(i) Maximum amount.--The maximum amount
of an express loan guaranteed under this
paragraph shall be $500,000.
``(ii) Percentage.--For an express loan
guaranteed under this paragraph, the
Administrator shall guarantee--
``(I) 90 percent of a loan that is
not more than $350,000; and
``(II) 75 percent of a loan that is
more than $350,000 and not more than
$500,000.''.
(g) Annual Listing of Export Finance Lenders.--Section 7(a)(16) of
the Small Business Act (15 U.S.C. 636(a)(16)) is amended by adding at
the end the following:
``(F) List of export finance lenders.--
``(i) Publication of list required.--The
Administrator shall publish an annual list of
the banks and participating lending
institutions that, during the 1-year period
ending on the date of publication of the list,
have made loans guaranteed by the
Administration under--
``(I) this paragraph;
``(II) paragraph (14); or
``(III) paragraph (34).
``(ii) Availability of list.--The
Administrator shall--
``(I) post the list published under
clause (i) on the website of the
Administration; and
``(II) make the list published
under clause (i) available, upon
request, at each district office of the
Administration.''.
(h) Applicability.--The amendments made by subsections (a) through
(f) shall apply with respect to any loan made after the date of
enactment of this Act.
SEC. 1207. STATE TRADE AND EXPORT PROMOTION GRANT PROGRAM.
(a) Definitions.--In this section--
(1) the term ``eligible small business concern'' means a
small business concern that--
(A) has been in business for not less than the 1-
year period ending on the date on which assistance is
provided using a grant under this section;
(B) is operating profitably, based on operations in
the United States;
(C) has demonstrated understanding of the costs
associated with exporting and doing business with
foreign purchasers, including the costs of freight
forwarding, customs brokers, packing and shipping, as
determined by the Associate Administrator; and
(D) has in effect a strategic plan for exporting;
(2) the term ``program'' means the State Trade and Export
Promotion Grant Program established under subsection (b);
(3) the term ``small business concern owned and controlled
by women'' has the meaning given that term in section 3 of the
Small Business Act (15 U.S.C. 632);
(4) the term ``socially and economically disadvantaged
small business concern'' has the meaning given that term in
section 8(a)(4)(A) of the Small Business Act (15 U.S.C.
6537(a)(4)(A)); and
(5) the term ``State'' means each of the several States,
the District of Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, and American Samoa.
(b) Establishment of Program.--The Associate Administrator shall
establish a 3-year trade and export promotion pilot program to be known
as the State Trade and Export Promotion Grant Program, to make grants
to States to carry out export programs that assist eligible small
business concerns in--
(1) participation in a foreign trade mission;
(2) a foreign market sales trip;
(3) a subscription to services provided by the Department
of Commerce;
(4) the payment of website translation fees;
(5) the design of international marketing media;
(6) a trade show exhibition;
(7) participation in training workshops; or
(8) any other export initiative determined appropriate by
the Associate Administrator.
(c) Grants.--
(1) Joint review.--In carrying out the program, the
Associate Administrator may make a grant to a State to increase
the number of eligible small business concerns in the State
that export or to increase the value of the exports by eligible
small business concerns in the State.
(2) Considerations.--In making grants under this section,
the Associate Administrator may give priority to an application
by a State that proposes a program that--
(A) focuses on eligible small business concerns as
part of an export promotion program;
(B) demonstrates success in promoting exports by--
(i) socially and economically disadvantaged
small business concerns;
(ii) small business concerns owned or
controlled by women; and
(iii) rural small business concerns;
(C) promotes exports from a State that is not 1 of
the 10 States with the highest percentage of exporters
that are small business concerns, based upon the latest
data available from the Department of Commerce; and
(D) promotes new-to-market export opportunities to
the People's Republic of China for eligible small
business concerns in the United States.
(3) Limitations.--
(A) Single application.--A State may not submit
more than 1 application for a grant under the program
in any 1 fiscal year.
(B) Proportion of amounts.--The total value of
grants under the program made during a fiscal year to
the 10 States with the highest number of exporters that
are small business concerns, based upon the latest data
available from the Department of Commerce, shall be not
more than 40 percent of the amounts appropriated for
the program for that fiscal year.
(4) Application.--A State desiring a grant under the
program shall submit an application at such time, in such
manner, and accompanied by such information as the Associate
Administrator may establish.
(d) Competitive Basis.--The Associate Administrator shall award
grants under the program on a competitive basis.
(e) Federal Share.--The Federal share of the cost of an export
program carried out using a grant under the program shall be--
(1) for a State that has a high export volume, as
determined by the Associate Administrator, not more than 65
percent; and
(2) for a State that does not have a high export volume, as
determined by the Associate Administrator, not more than 75
percent.
(f) Non-Federal Share.--The non-Federal share of the cost of an
export program carried using a grant under the program shall be
comprised of not less than 50 percent cash and not more than 50 percent
of indirect costs and in-kind contributions, except that no such costs
or contributions may be derived from funds from any other Federal
program.
(g) Reports.--
(1) Initial report.--Not later than 120 days after the date
of enactment of this Act, the Associate Administrator shall
submit to the Committee on Small Business and Entrepreneurship
of the Senate and the Committee on Small Business of the House
of Representatives a report, which shall include--
(A) a description of the structure of and
procedures for the program;
(B) a management plan for the program; and
(C) a description of the merit-based review process
to be used in the program.
(2) Annual reports.--The Associate Administrator shall
submit an annual report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives regarding the program,
which shall include--
(A) the number and amount of grants made under the
program during the preceding year;
(B) a list of the States receiving a grant under
the program during the preceding year, including the
activities being performed with grant; and
(C) the effect of each grant on exports by eligible
small business concerns in the State receiving the
grant.
(h) Reviews by Inspector General.--
(1) In general.--The Inspector General of the
Administration shall conduct a review of--
(A) the extent to which recipients of grants under
the program are measuring the performance of the
activities being conducted and the results of the
measurements; and
(B) the overall management and effectiveness of the
program.
(2) Report.--Not later than September 30, 2012, the
Inspector General of the Administration shall submit to the
Committee on Small Business and Entrepreneurship of the Senate
and the Committee on Small Business of the House of
Representatives a report regarding the review conducted under
paragraph (1).
(i) Authorization of Appropriations.--There is authorized to be
appropriated to carry out the program $30,000,000 for each of fiscal
years 2011, 2012, and 2013.
(j) Termination.--The authority to carry out the program shall
terminate 3 years after the date on which the Associate Administrator
establishes the program.
SEC. 1208. RURAL EXPORT PROMOTION.
Not later than 6 months after the date of enactment of this Act,
the Administrator, in consultation with the Secretary of Agriculture
and the Secretary of Commerce, shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report that contains--
(1) a description of each program of the Administration
that promotes exports by rural small business concerns,
including--
(A) the number of rural small business concerns
served by the program;
(B) the change, if any, in the number of rural
small business concerns as a result of participation in
the program during the 10-year period ending on the
date of enactment of this Act;
(C) the volume of exports by rural small business
concerns that participate in the program; and
(D) the change, if any, in the volume of exports by
rural small businesses that participate in the program
during the 10-year period ending on the date of
enactment of this Act;
(2) a description of the coordination between programs of
the Administration and other Federal programs that promote
exports by rural small business concerns;
(3) recommendations, if any, for improving the coordination
described in paragraph (2);
(4) a description of any plan by the Administration to
market the international trade financing programs of the
Administration through lenders that--
(A) serve rural small business concerns; and
(B) are associated with financing programs of the
Department of Agriculture;
(5) recommendations, if any, for improving coordination
between the counseling programs and export financing programs
of the Administration, in order to increase the volume of
exports by rural small business concerns; and
(6) any additional information the Administrator determines
is necessary.
SEC. 1209. INTERNATIONAL TRADE COOPERATION BY SMALL BUSINESS
DEVELOPMENT CENTERS.
Section 21(a) of the Small Business Act (15 U.S.C. 648(a)) is
amended--
(1) by striking ``(2) The Small Business Development
Centers'' and inserting the following:
``(2) Cooperation to provide international trade
services.--
``(A) Information and services.--The small business
development centers''; and
(2) in paragraph (2)--
(A) in subparagraph (A), as so designated, by
inserting ``(including State trade agencies),'' after
``local agencies''; and
(B) by adding at the end the following:
``(B) Cooperation with state trade agencies and
export assistance centers.--A small business
development center that counsels a small business
concern on issues relating to international trade
shall--
``(i) consult with State trade agencies and
Export Assistance Centers to provide
appropriate services to the small business
concern; and
``(ii) as necessary, refer the small
business concern to a State trade agency or an
Export Assistance Center for further counseling
or assistance.
``(C) Definition.--In this paragraph, the term
`Export Assistance Center' has the same meaning as in
section 22.''.
Subtitle C--Small Business Contracting
PART I--CONTRACT BUNDLING
SEC. 1311. SMALL BUSINESS ACT.
Section 3 of the Small Business Act (15 U.S.C. 632), as amended by
section 1202, is amended by adding at the end the following:
``(v) Multiple Award Contract.--In this Act, the term `multiple
award contract' means--
``(1) a multiple award task order contract or delivery
order contract that is entered into under the authority of
sections 303H through 303K of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253h through
253k); and
``(2) any other indefinite delivery, indefinite quantity
contract that is entered into by the head of a Federal agency
with 2 or more sources pursuant to the same solicitation.''.
SEC. 1312. LEADERSHIP AND OVERSIGHT.
(a) In General.--Section 15 of the Small Business Act (15 U.S.C.
644) is amended by adding at the end the following:
``(q) Bundling Accountability Measures.--
``(1) Teaming requirements.--Each Federal agency shall
include in each solicitation for any multiple award contract
above the substantial bundling threshold of the Federal agency
a provision soliciting bids from any responsible source,
including responsible small business concerns and teams or
joint ventures of small business concerns.
``(2) Policies on reduction of contract bundling.--
``(A) In general.--Not later than 1 year after the
date of enactment of this subsection, the Federal
Acquisition Regulatory Council established under
section 25(a) of the Office of Federal Procurement
Policy Act (41 U.S.C. 4219(a)) shall amend the Federal
Acquisition Regulation issued under section 25 of such
Act to--
``(i) establish a Government-wide policy
regarding contract bundling, including
regarding the solicitation of teaming and joint
ventures under paragraph (1); and
``(ii) require that the policy established
under clause (i) be published on the website of
each Federal agency.
``(B) Rationale for contract bundling.--Not later
than 30 days after the date on which the head of a
Federal agency submits data certifications to the
Administrator for Federal Procurement Policy, the head
of the Federal agency shall publish on the website of
the Federal agency a list and rationale for any bundled
contract for which the Federal agency solicited bids or
that was awarded by the Federal agency.
``(3) Reporting.--Not later than 90 days after the date of
enactment of this subsection, and every 3 years thereafter, the
Administrator shall submit to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report regarding
procurement center representatives and commercial market
representatives, which shall--
``(A) identify each area for which the
Administration has assigned a procurement center
representative or a commercial market representative;
``(B) explain why the Administration selected the
areas identified under subparagraph (A); and
``(C) describe the activities performed by
procurement center representatives and commercial
market representatives.''.
(b) Technical Correction.--Section 15(g) of the Small Business Act
(15 U.S.C. 644(g)) is amended by striking ``Administrator of the Office
of Federal Procurement Policy'' each place it appears and inserting
``Administrator for Federal Procurement Policy''.
(c) Report.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to Congress a report regarding the
procurement center representative program of the
Administration.
(2) Contents.--The report submitted under paragraph (1)
shall--
(A) address ways to improve the effectiveness of
the procurement center representative program in
helping small business concerns obtain Federal
contracts;
(B) evaluate the effectiveness of procurement
center representatives and commercial marketing
representatives; and
(C) include recommendations, if any, on how to
improve the procurement center representative program.
(d) Electronic Procurement Center Representative.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall implement a 3-
year pilot electronic procurement center representative
program.
(2) Report.--Not later than 30 days after the pilot program
under paragraph (1) ends, the Comptroller General of the United
States shall submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report regarding the
pilot program.
SEC. 1313. CONSOLIDATION OF CONTRACT REQUIREMENTS.
(a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is
amended--
(1) by redesignating section 44 as section 45; and
(2) by inserting after section 43 the following:
``SEC. 44. CONSOLIDATION OF CONTRACT REQUIREMENTS.
``(a) Definitions.--In this section--
``(1) the term `Chief Acquisition Officer' means the
employee of a Federal agency designated as the Chief
Acquisition Officer for the Federal agency under section 16(a)
of the Office of Federal Procurement Policy Act (41 U.S.C.
414(a));
``(2) the term `consolidation of contract requirements',
with respect to contract requirements of a Federal agency,
means a use of a solicitation to obtain offers for a single
contract or a multiple award contract to satisfy 2 or more
requirements of the Federal agency for goods or services that
have been provided to or performed for the Federal agency under
2 or more separate contracts lower in cost than the total cost
of the contract for which the offers are solicited; and
``(3) the term `senior procurement executive' means an
official designated under section 16(c) of the Office of
Federal Procurement Policy Act (41 U.S.C. 414(c)) as the senior
procurement executive for a Federal agency.
``(b) Policy.--The head of each Federal agency shall ensure that
the decisions made by the Federal agency regarding consolidation of
contract requirements of the Federal agency are made with a view to
providing small business concerns with appropriate opportunities to
participate as prime contractors and subcontractors in the procurements
of the Federal agency.
``(c) Limitation on Use of Acquisition Strategies Involving
Consolidation.--
``(1) In general.--Subject to paragraph (4), the head of a
Federal agency may not carry out an acquisition strategy that
includes a consolidation of contract requirements of the
Federal agency with a total value of more than $2,000,000,
unless the senior procurement executive or Chief Acquisition
Officer for the Federal agency, before carrying out the
acquisition strategy--
``(A) conducts market research;
``(B) identifies any alternative contracting
approaches that would involve a lesser degree of
consolidation of contract requirements;
``(C) makes a written determination that the
consolidation of contract requirements is necessary and
justified;
``(D) identifies any negative impact by the
acquisition strategy on contracting with small business
concerns; and
``(E) certifies to the head of the Federal agency
that steps will be taken to include small business
concerns in the acquisition strategy.
``(2) Determination that consolidation is necessary and
justified.--
``(A) In general.--A senior procurement executive
or Chief Acquisition Officer may determine that an
acquisition strategy involving a consolidation of
contract requirements is necessary and justified for
the purposes of paragraph (1)(C) if the benefits of the
acquisition strategy substantially exceed the benefits
of each of the possible alternative contracting
approaches identified under paragraph (1)(B).
``(B) Savings in administrative or personnel
costs.--For purposes of subparagraph (A), savings in
administrative or personnel costs alone do not
constitute a sufficient justification for a
consolidation of contract requirements in a procurement
unless the expected total amount of the cost savings,
as determined by the senior procurement executive or
Chief Acquisition Officer, is expected to be
substantial in relation to the total cost of the
procurement.
``(3) Benefits to be considered.--The benefits considered
for the purposes of paragraphs (1) and (2) may include cost
and, regardless of whether quantifiable in dollar amounts--
``(A) quality;
``(B) acquisition cycle;
``(C) terms and conditions; and
``(D) any other benefit.
``(4) Department of defense.--
``(A) In general.--The Department of Defense and
each military department shall comply with this section
until after the date described in subparagraph (C).
``(B) Rule.--After the date described in
subparagraph (C), contracting by the Department of
Defense or a military department shall be conducted in
accordance with section 2382 of title 10, United States
Code.
``(C) Date.--The date described in this
subparagraph is the date on which the Administrator
determines the Department of Defense or a military
department is in compliance with the Government-wide
contracting goals under section 15.''.
(b) Technical and Conforming Amendment.--Section 2382(b)(1) of
title 10, United States Code, is amended by striking ``An official''
and inserting ``Subject to section 44(c)(4), an official''.
SEC. 1314. SMALL BUSINESS TEAMS PILOT PROGRAM.
(a) Definitions.--In this section--
(1) the term ``Pilot Program'' means the Small Business
Teaming Pilot Program established under subsection (b); and
(2) the term ``eligible organization'' means a well-
established national organization for small business concerns
with the capacity to provide assistance to small business
concerns (which may be provided with the assistance of the
Administrator) relating to--
(A) customer relations and outreach;
(B) team relations and outreach; and
(C) performance measurement and quality assurance.
(b) Establishment.--The Administrator shall establish a Small
Business Teaming Pilot Program for teaming and joint ventures involving
small business concerns.
(c) Grants.--Under the Pilot Program, the Administrator may make
grants to eligible organizations to provide assistance and guidance to
teams of small business concerns seeking to compete for larger
procurement contracts.
(d) Contracting Opportunities.--The Administrator shall work with
eligible organizations receiving a grant under the Pilot Program to
recommend appropriate contracting opportunities for teams or joint
ventures of small business concerns.
(e) Report.--Not later than 1 year before the date on which the
authority to carry out the Pilot Program terminates under subsection
(f), the Administrator shall submit to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small Business
of the House of Representatives a report on the effectiveness of the
Pilot Program.
(f) Termination.--The authority to carry out the Pilot Program
shall terminate 5 years after the date of enactment of this Act.
(g) Authorization of Appropriations.--There are authorized to be
appropriated for grants under subsection (c) $5,000,000 for each of
fiscal years 2010 through 2015.
PART II--SUBCONTRACTING INTEGRITY
SEC. 1321. SUBCONTRACTING MISREPRESENTATIONS.
Not later than 1 year after the date of enactment of this Act, the
Administrator, in consultation with the Administrator for Federal
Procurement Policy, shall promulgate regulations relating to, and the
Federal Acquisition Regulatory Council established under section 25(a)
of the Office of Federal Procurement Policy Act (41 U.S.C. 421(a))
shall amend the Federal Acquisition Regulation issued under section 25
of such Act to establish a policy on, subcontracting compliance
relating to small business concerns, including assignment of compliance
responsibilities between contracting offices, small business offices,
and program offices and periodic oversight and review activities.
SEC. 1322. SMALL BUSINESS SUBCONTRACTING IMPROVEMENTS.
Section 8(d)(6) of the Small Business Act (15 U.S.C. 637(d)(6)) is
amended--
(1) in subparagraph (E), by striking ``and'' at the end;
(2) in subparagraph (F), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end, the following:
``(G) a representation that the offeror or bidder
will--
``(i) make a good faith effort to acquire
articles, equipment, supplies, services, or
materials, or obtain the performance of
construction work from the small business
concerns used in preparing and submitting to
the contracting agency the bid or proposal, in
the same amount and quality used in preparing
and submitting the bid or proposal; and
``(ii) provide to the contracting officer a
written explanation if the offeror or bidder
fails to acquire articles, equipment, supplies,
services, or materials or obtain the
performance of construction work as described
in clause (i).''.
PART III--ACQUISITION PROCESS
SEC. 1331. RESERVATION OF PRIME CONTRACT AWARDS FOR SMALL BUSINESSES.
Section 15 of the Small Business Act (15 U.S.C. 644), as amended by
this Act, is amended by adding at the end the following:
``(r) Multiple Award Contracts.--Not later than 1 year after the
date of enactment of this subsection, the Administrator for Federal
Procurement Policy and the Administrator, in consultation with the
Administrator of General Services, shall, by regulation, establish
guidance under which Federal agencies may, at their discretion--
``(1) set aside part or parts of a multiple award contract
for small business concerns, including the subcategories of
small business concerns identified in subsection (g)(2);
``(2) notwithstanding the fair opportunity requirements
under section 2304c(b) of title 10, United States Code, and
section 303J(b) of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 253j(b)), set aside orders
placed against multiple award contracts for small business
concerns, including the subcategories of small business
concerns identified in subsection (g)(2); and
``(3) reserve 1 or more contract awards for small business
concerns under full and open multiple award procurements,
including the subcategories of small business concerns
identified in subsection (g)(2).''.
SEC. 1332. MICRO-PURCHASE GUIDELINES.
Not later than 1 year after the date of enactment of this Act, the
Director of the Office of Management and Budget, in coordination with
the Administrator of General Services, shall issue guidelines regarding
the analysis of purchase card expenditures to identify opportunities
for achieving and accurately measuring fair participation of small
business concerns in purchases in an amount not in excess of the micro-
purchase threshold, as defined in section 32 of the Office of Federal
Procurement Policy Act (41 U.S.C. 428) (in this section referred to as
``micro-purchases''), consistent with the national policy on small
business participation in Federal procurements set forth in sections
2(a) and 15(g) of the Small Business Act (15 U.S.C. 631(a) and 644(g)),
and dissemination of best practices for participation of small business
concerns in micro-purchases.
SEC. 1333. AGENCY ACCOUNTABILITY.
Section 15(g)(2) of the Small Business Act (15 U.S.C. 644(g)(2)) is
amended--
(1) by inserting ``(A)'' after ``(2)'';
(2) by striking ``Goals established'' and inserting the
following:
``(B) Goals established'';
(3) by striking ``Whenever'' and inserting the following:
``(C) Whenever'';
(4) by striking ``For the purpose of'' and inserting the
following:
``(D) For the purpose of'';
(5) by striking ``The head of each Federal agency, in
attempting to attain such participation'' and inserting the
following:
``(E) The head of each Federal agency, in attempting to attain the
participation described in subparagraph (D)''.
(6) in subparagraph (E), as so designated--
(A) by striking ``(A) contracts'' and inserting
``(i) contracts''; and
(B) by striking ``(B) contracts'' and inserting
``(ii) contracts''; and
(7) by adding at the end the following:
``(F)(i) Each procurement employee or program manager described in
clause (ii) shall communicate to the subordinates of the procurement
employee or program manager the importance of achieving small business
goals.
``(ii) A procurement employee or program manager described in this
clause is a senior procurement executive, senior program manager, or
Director of Small and Disadvantaged Business Utilization of a Federal
agency having contracting authority.''.
SEC. 1334. PAYMENT OF SUBCONTRACTORS.
Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is
amended by adding at the end the following:
``(12) Payment of Subcontractors.--
``(A) Definition.--In this paragraph, the term `covered
contract' means a contract relating to which a prime contractor
is required to develop a subcontracting plan under paragraph
(4) or (5).
``(B) Notice.--
``(i) In general.--A prime contractor for a covered
contract shall notify in writing the contracting
officer for the covered contract if the prime
contractor pays a reduced price to a subcontractor for
goods and services upon completion of the
responsibilities of the subcontractor or the payment to
a subcontractor is more than 90 days past due for goods
or services provided for the covered contract for which
the Federal agency has paid the prime contractor.
``(ii) Contents.--A prime contractor shall include
the reason for the reduction in a payment to or failure
to pay a subcontractor in any notice made under clause
(i).
``(C) Performance.--A contracting officer for a covered
contract shall consider the unjustified failure by a prime
contractor to make a full or timely payment to a subcontractor
in evaluating the performance of the prime contractor.
``(D) Control of funds.--If the contracting officer for a
covered contract determines that a prime contractor has a
history of unjustified, untimely payments to contractors, the
contracting officer shall record the identity of the contractor
in accordance with the regulations promulgated under
subparagraph (E).
``(E) Regulations.--Not later than 1 year after the date of
enactment of this paragraph, the Federal Acquisition Regulatory
Council established under section 25(a) of the Office of
Federal Procurement Policy Act (41 U.S.C. 421(a)) shall amend
the Federal Acquisition Regulation issued under section 25 of
such Act to--
``(i) describe the circumstances under which a
contractor may be determined to have a history of
unjustified, untimely payments to subcontractors;
``(ii) establish a process for contracting officers
to record the identity of a contractor described in
clause (i); and
``(iii) require the identity of a contractor
described in clause (i) to be incorporated in, and made
publicly available through, the Federal Awardee
Performance and Integrity Information System, or any
successor thereto.''.
SEC. 1335. REPEAL OF SMALL BUSINESS COMPETITIVENESS DEMONSTRATION
PROGRAM.
(a) In General.--The Business Opportunity Development Reform Act of
1988 (Public Law 100-656) is amended by striking title VII (15 U.S.C.
644 note).
(b) Effective Date and Applicability.--The amendment made by this
section--
(1) shall take effect on the date of enactment of this Act;
and
(2) apply to the first full fiscal year after the date of
enactment of this Act.
PART IV--SMALL BUSINESS SIZE AND STATUS INTEGRITY
SEC. 1341. POLICY AND PRESUMPTIONS.
Section 3 of the Small Business Act (15 U.S.C. 632), as amended by
section 1311, is amended by adding at the end the following:
``(w) Presumption.--
``(1) In general.--In every contract, subcontract,
cooperative agreement, cooperative research and development
agreement, or grant which is set aside, reserved, or otherwise
classified as intended for award to small business concerns,
there shall be a presumption of loss to the United States based
on the total amount expended on the contract, subcontract,
cooperative agreement, cooperative research and development
agreement, or grant whenever it is established that a business
concern other than a small business concern willfully sought
and received the award by misrepresentation.
``(2) Deemed certifications.--The following actions shall
be deemed affirmative, willful, and intentional certifications
of small business size and status:
``(A) Submission of a bid or proposal for a Federal
grant, contract, subcontract, cooperative agreement, or
cooperative research and development agreement
reserved, set aside, or otherwise classified as
intended for award to small business concerns.
``(B) Submission of a bid or proposal for a Federal
grant, contract, subcontract, cooperative agreement, or
cooperative research and development agreement which in
any way encourages a Federal agency to classify the bid
or proposal, if awarded, as an award to a small
business concern.
``(C) Registration on any Federal electronic
database for the purpose of being considered for award
of a Federal grant, contract, subcontract, cooperative
agreement, or cooperative research agreement, as a
small business concern.
``(3) Certification by signature of responsible official.--
``(A) In general.--Each solicitation, bid, or
application for a Federal contract, subcontract, or
grant shall contain a certification concerning the
small business size and status of a business concern
seeking the Federal contract, subcontract, or grant.
``(B) Content of certifications.--A certification
that a business concern qualifies as a small business
concern of the exact size and status claimed by the
business concern for purposes of bidding on a Federal
contract or subcontract, or applying for a Federal
grant, shall contain the signature of an authorized
official on the same page on which the certification is
contained.
``(4) Regulations.--The Administrator shall promulgate
regulations to provide adequate protections to individuals and
business concerns from liability under this subsection in cases
of unintentional errors, technical malfunctions, and other
similar situations.''.
SEC. 1342. ANNUAL CERTIFICATION.
Section 3 of the Small Business Act (15 U.S.C. 632), as amended by
section 1341, is amended by adding at the end the following:
``(x) Annual Certification.--
``(1) In general.--Each business certified as a small
business concern under this Act shall annually certify its
small business size and, if appropriate, its small business
status, by means of a confirming entry on the Online
Representations and Certifications Application database of the
Administration, or any successor thereto.
``(2) Regulations.--Not later than 1 year after the date of
enactment of this subsection, the Administrator, in
consultation with the Inspector General and the Chief Counsel
for Advocacy of the Administration, shall promulgate
regulations to ensure that--
``(A) no business concern continues to be certified
as a small business concern on the Online
Representations and Certifications Application database
of the Administration, or any successor thereto,
without fulfilling the requirements for annual
certification under this subsection; and
``(B) the requirements of this subsection are
implemented in a manner presenting the least possible
regulatory burden on small business concerns.''.
SEC. 1343. TRAINING FOR CONTRACTING AND ENFORCEMENT PERSONNEL.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Federal Acquisition Institute, in consultation with
the Administrator for Federal Procurement Policy, the Defense
Acquisition University, and the Administrator, shall develop courses
for acquisition personnel concerning proper classification of business
concerns and small business size and status for purposes of Federal
contracts, subcontracts, grants, cooperative agreements, and
cooperative research and development agreements.
(b) Policy on Prosecutions of Small Business Size and Status
Fraud.--Section 3 of the Small Business Act (15 U.S.C. 632), as amended
by section 1342, is amended by adding at the end the following:
``(y) Policy on Prosecutions of Small Business Size and Status
Fraud.--Not later than 1 year after the date of enactment of this
subsection, the Administrator, in consultation with the Attorney
General, shall issue a Government-wide policy on prosecution of small
business size and status fraud, which shall direct Federal agencies to
appropriately publicize the policy.''.
SEC. 1344. UPDATED SIZE STANDARDS.
(a) Rolling Review.--
(1) In general.--The Administrator shall--
(A) during the 18-month period beginning on the
date of enactment of this Act, and during every 18-
month period thereafter, conduct a detailed review of
not less than \1/3\ of the size standards for small
business concerns established under section 3(a)(2) of
the Small Business Act (15 U.S.C. 632(a)(2)), which
shall include holding not less than 2 public forums
located in different geographic regions of the United
States;
(B) after completing each review under subparagraph
(A) make appropriate adjustments to the size standards
established under section 3(a)(2) of the Small Business
Act to reflect market conditions;
(C) make publicly available--
(i) information regarding the factors
evaluated as part of each review conducted
under subparagraph (A); and
(ii) information regarding the criteria
used for any revised size standards promulgated
under subparagraph (B); and
(D) not later than 30 days after the date on which
the Administrator completes each review under
subparagraph (A), submit to the Committee on Small
Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of
Representatives and make publicly available a report
regarding the review, including why the Administrator--
(i) used the factors and criteria described
in subparagraph (C); and
(ii) adjusted or did not adjust each size
standard that was reviewed under the review.
(2) Complete review of size standards.--The Administrator
shall ensure that each size standard for small business
concerns established under section 3(a)(2) of the Small
Business Act (15 U.S.C. 632(a)(2)) is reviewed under paragraph
(1) not less frequently than once every 5 years.
(b) Rules.--Not later than 1 year after the date of enactment of
this Act, the Administrator shall promulgate rules for conducting the
reviews required under subsection (a).
SEC. 1345. STUDY AND REPORT ON THE MENTOR-PROTEGE PROGRAM.
(a) In General.--The Comptroller General of the United States shall
conduct a study of the mentor-protege program of the Administration for
small business concerns participating in programs under section 8(a) of
the Small Business Act (15 U.S.C. 637(a)), and other relationships and
strategic alliances pairing a larger business and a small business
concern partner to gain access to Federal Government contracts, to
determine whether the programs and relationships are effectively
supporting the goal of increasing the participation of small business
concerns in Government contracting.
(b) Matters To Be Studied.--The study conducted under this section
shall include--
(1) a review of a broad cross-section of industries; and
(2) an evaluation of--
(A) how each Federal agency carrying out a program
described in subsection (a) administers and monitors
the program;
(B) whether there are systems in place to ensure
that the mentor-protege relationship, or similar
affiliation, promotes real gain to the protege, and is
not just a mechanism to enable participants that would
not otherwise qualify under section 8(a) of the Small
Business Act (15 U.S.C. 637(a)) to receive contracts
under that section; and
(C) the degree to which protege businesses become
able to compete for Federal contracts without the
assistance of a mentor.
(c) Report to Congress.--Not later than 180 days after the date of
enactment of this Act, the Comptroller General shall submit to the
Committee on Small Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Representatives a report on
the results of the study conducted under this section.
SEC. 1346. CONTRACTING GOALS REPORTS.
Section 15(h)(2) of the Small Business Act (15 U.S.C. 644(h)(2)) is
amended by striking ``submit them'' and all that follows through ``the
following:'' and inserting ``submit to the President and the Committee
on Small Business and Entrepreneurship of the Senate and the Committee
on Small Business of the House of Representatives the compilation and
analysis, which shall include the following:''.
SEC. 1347. SMALL BUSINESS CONTRACTING PARITY.
(a) Definitions.--In this section--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively; and
(2) the terms ``HUBZone small business concern'', ``small
business concern'', ``small business concern owned and
controlled by service-disabled veterans'', and ``small business
concern owned and controlled by women'' have the same meanings
as in section 3 of the Small Business Act (15 U.S.C. 632).
(b) Contracting Improvements.--
(1) Contracting opportunities.--Section 31(b)(2)(B) of the
Small Business Act (15 U.S.C. 657a(b)(2)(B)) is amended by
striking ``shall'' and inserting ``may''.
(2) Contracting goals.--Section 15(g)(1) of the Small
Business Act (15 U.S.C. 644(g)(1)) is amended in the fourth
sentence by inserting ``and subcontract'' after ``not less than
3 percent of the total value of all prime contract''.
(3) Mentor-protege programs.--The Administrator may
establish mentor-protege programs for small business concerns
owned and controlled by service-disabled veterans, small
business concerns owned and controlled by women, and HUBZone
small business concerns modeled on the mentor-protege program
of the Administration for small business concerns participating
in programs under section 8(a) of the Small Business Act (15
U.S.C. 637(a)).
(c) Small Business Contracting Programs Parity.--Section 31(b)(2)
of the Small Business Act (15 U.S.C. 657a(b)(2)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``Notwithstanding any other provision of law--'';
(2) in subparagraph (A)--
(A) in the matter preceding clause (i), by striking
``a contracting'' and inserting ``Sole source
contracts.--A contracting''; and
(B) in clause (iii), by striking the semicolon at
the end and inserting a period;
(3) in subparagraph (B)--
(A) by striking ``a contract opportunity shall''
and inserting ``Restricted competition.--A contract
opportunity may''; and
(B) by striking ``; and'' and inserting a period;
and
(4) in subparagraph (C), by striking ``not later'' and
inserting ``Appeals.--Not later''.
Subtitle D--Small Business Management and Counseling Assistance
SEC. 1401. MATCHING REQUIREMENTS UNDER SMALL BUSINESS PROGRAMS.
(a) Microloan Program.--Section 7(m) of the Small Business Act (15
U.S.C. 636(m)) is amended--
(1) in paragraph (3)(B)--
(A) by striking ``As a condition'' and inserting
the following:
``(i) In general.--Subject to clause (ii),
as a condition'';
(B) by striking ``the Administration'' and
inserting ``the Administrator''; and
(C) by adding at the end the following:
``(ii) Waiver of non-federal share.--
``(I) In general.--Upon request by
an intermediary, and in accordance with
this clause, the Administrator may
waive, in whole or in part, the
requirement to obtain non-Federal funds
under clause (i) for a fiscal year. The
Administrator may waive the requirement
to obtain non-Federal funds under this
clause for successive fiscal years.
``(II) Considerations.--In
determining whether to waive the
requirement to obtain non-Federal funds
under this clause, the Administrator
shall consider--
``(aa) the economic
conditions affecting the
intermediary;
``(bb) the impact a waiver
under this clause would have on
the credibility of the
microloan program under this
subsection;
``(cc) the demonstrated
ability of the intermediary to
raise non-Federal funds; and
``(dd) the performance of
the intermediary.
``(III) Limitations.--
``(aa) In general.--The
Administrator may not waive the
requirement to obtain non-
Federal funds under this clause
if granting the waiver would
undermine the credibility of
the microloan program under
this subsection.
``(bb) Sunset.--The
Administrator may not waive the
requirement to obtain non-
Federal funds under this clause
for fiscal year 2013 or any
fiscal year thereafter.''; and
(2) in paragraph (4)(B)--
(A) by striking ``As a condition'' and all that
follows through ``the Administration shall require''
and inserting the following:
``(i) In general.--Subject to clause (ii),
as a condition of a grant made under
subparagraph (A), the Administrator shall
require''; and
(B) by adding at the end the following:
``(ii) Waiver of non-federal share.--
``(I) In general.--Upon request by
an intermediary, and in accordance with
this clause, the Administrator may
waive, in whole or in part, the
requirement to obtain non-Federal funds
under clause (i) for a fiscal year. The
Administrator may waive the requirement
to obtain non-Federal funds under this
clause for successive fiscal years.
``(II) Considerations.--In
determining whether to waive the
requirement to obtain non-Federal funds
under this clause, the Administrator
shall consider--
``(aa) the economic
conditions affecting the
intermediary;
``(bb) the impact a waiver
under this clause would have on
the credibility of the
microloan program under this
subsection;
``(cc) the demonstrated
ability of the intermediary to
raise non-Federal funds; and
``(dd) the performance of
the intermediary.
``(III) Limitations.--
``(aa) In general.--The
Administrator may not waive the
requirement to obtain non-
Federal funds under this clause
if granting the waiver would
undermine the credibility of
the microloan program under
this subsection.
``(bb) Sunset.--The
Administrator may not waive the
requirement to obtain non-
Federal funds under this clause
for fiscal year 2013 or any
fiscal year thereafter.''.
(b) Women's Business Center Program.--Section 29(c) of the Small
Business Act (15 U.S.C. 656(c)) is amended--
(1) in paragraph (1), by striking ``As a condition'' and
inserting ``Subject to paragraph (5), as a condition''; and
(2) by adding at the end the following:
``(5) Waiver of non-federal share relating to technical
assistance and counseling.--
``(A) In general.--Upon request by a recipient
organization, and in accordance with this paragraph,
the Administrator may waive, in whole or in part, the
requirement to obtain non-Federal funds under this
subsection for the technical assistance and counseling
activities of the recipient organization carried out
using financial assistance under this section for a
fiscal year. The Administrator may waive the
requirement to obtain non-Federal funds under this
paragraph for successive fiscal years.
``(B) Considerations.--In determining whether to
waive the requirement to obtain non-Federal funds under
this paragraph, the Administrator shall consider--
``(i) the economic conditions affecting the
recipient organization;
``(ii) the impact a waiver under this
clause would have on the credibility of the
women's business center program under this
section;
``(iii) the demonstrated ability of the
recipient organization to raise non-Federal
funds; and
``(iv) the performance of the recipient
organization.
``(C) Limitations.--
``(i) In general.--The Administrator may
not waive the requirement to obtain non-Federal
funds under this paragraph if granting the
waiver would undermine the credibility of the
women's business center program under this
section.
``(ii) Sunset.--The Administrator may not
waive the requirement to obtain non-Federal
funds under this paragraph for fiscal year 2013
or any fiscal year thereafter.''.
(c) Prospective Repeals.--Effective October 1, 2012, the Small
Business Act (15 U.S.C. 631 et seq.) is amended--
(1) in section 7(m) (15 U.S.C. 636(m))--
(A) in paragraph (3)(B)--
(i) by striking ``Intermediary
contribution.--'' and all that follows through
``Subject to clause (ii), as'' and inserting
``Intermediary contribution.--As''; and
(ii) by striking clause (ii); and
(B) in paragraph (4)(B)--
(i) by striking ``Contribution.--'' and all
that follows through ``Subject to clause (ii),
as'' and inserting ``Contribution.--As''; and
(ii) by striking clause (ii); and
(2) in section 29(c) (15 U.S.C. 656(c))--
(A) in paragraph (1), by striking ``Subject to
paragraph (5), as'' and inserting ``As''; and
(B) by striking paragraph (5).
SEC. 1402. GRANTS FOR SBDCS.
(a) In General.--The Administrator may make grants to small
business development centers under section 21 of the Small Business Act
(15 U.S.C. 648) to provide targeted technical assistance to small
business concerns seeking access to capital or credit, Federal
procurement opportunities, energy efficiency audits to reduce energy
bills, opportunities to export products or provide services to foreign
customers, adopting, making innovations in, and using broadband
technologies, or other assistance.
(b) Allocation.--
(1) In general.--Subject to paragraph (2), and
notwithstanding the requirements of section 21(a)(4)(C)(iii) of
the Small Business Act (15 U.S.C. 648(a)(4)(C)(iii)), the
amount appropriated to carry out this section shall be
allocated under the formula under section 21(a)(4)(C)(i) of
that Act.
(2) Minimum funding.--The amount made available under this
section to each State shall be not less than $325,000.
(3) Types of uses.--Of the total amount of the grants
awarded by the Administrator under this section--
(A) not less than 80 percent shall be used for
counseling of small business concerns; and
(B) not more than 20 percent may be used for
classes or seminars.
(c) No Non-Federal Share Required.--Notwithstanding section
21(a)(4)(A) of the Small Business Act (15 U.S.C. 648(a)(4)(A)), the
recipient of a grant made under this section shall not be required to
provide non-Federal matching funds.
(d) Distribution.--Not later than 30 days after the date on which
amounts are appropriated to carry out this section, the Administrator
shall disburse the total amount appropriated.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to the Administrator $50,000,000 to carry out this
section.
Subtitle E--Disaster Loan Improvement
SEC. 1501. AQUACULTURE BUSINESS DISASTER ASSISTANCE.
Section 3 of the Small Business Act (15 U.S.C. 632), as amended by
section 1343, is amended by adding at the end the following:
``(z) Aquaculture Business Disaster Assistance.--Subject to section
18(a) and notwithstanding section 18(b)(1), the Administrator may
provide disaster assistance under section 7(b)(2) to aquaculture
enterprises that are small businesses.''.
Subtitle F--Small Business Regulatory Relief
SEC. 1601. REQUIREMENTS PROVIDING FOR MORE DETAILED ANALYSES.
Section 604(a) of title 5, United States Code, is amended--
(1) in paragraph (1), by striking ``succinct'';
(2) in paragraph (2), by striking ``summary'' each place it
appears and inserting ``statement'';
(3) by redesignating paragraphs (3), (4), and (5) as
paragraphs (4), (5), and (6), respectively; and
(4) by inserting after paragraph (2) the following:
``(3) the response of the agency to any comments filed by
the Chief Counsel for Advocacy of the Small Business
Administration in response to the proposed rule, and a detailed
statement of any change made to the proposed rule in the final
rule as a result of the comments;''.
SEC. 1602. OFFICE OF ADVOCACY.
(a) In General.--Section 203 of Public Law 94-305 (15 U.S.C. 634c)
is amended--
(1) in paragraph (4), by striking ``and'' at the end;
(2) in paragraph (5), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(6) carry out the responsibilities of the Office of
Advocacy under chapter 6 of title 5, United States Code.''.
(b) Budgetary Line Item and Authorization of Appropriations.--Title
II of Public Law 94-305 (15 U.S.C. 634a et seq.) is amended by striking
section 207 and inserting the following:
``SEC. 207. BUDGETARY LINE ITEM AND AUTHORIZATION OF APPROPRIATIONS.
``(a) Appropriation Requests.--Each budget of the United States
Government submitted by the President under section 1105 of title 31,
United States Code, shall include a separate statement of the amount of
appropriations requested for the Office of Advocacy of the Small
Business Administration, which shall be designated in a separate
account in the General Fund of the Treasury.
``(b) Administrative Operations.--The Administrator of the Small
Business Administration shall provide the Office of Advocacy with
appropriate and adequate office space at central and field office
locations, together with such equipment, operating budget, and
communications facilities and services as may be necessary, and shall
provide necessary maintenance services for such offices and the
equipment and facilities located in such offices.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this title. Any
amount appropriated under this subsection shall remain available,
without fiscal year limitation, until expended.''.
Subtitle G--Appropriations Provisions
SEC. 1701. SALARIES AND EXPENSES.
(a) Appropriation.--There is appropriated, out of any money in the
Treasury not otherwise appropriated, for the fiscal year ending
September 30, 2010, $150,000,000, to remain available until September
30, 2012, for an additional amount for the appropriations account
appropriated under the heading ``salaries and expenses'' under the
heading ``Small Business Administration'', of which--
(1) $50,000,000 is for grants to small business development
centers authorized under section 1402;
(2) $1,000,000 is for the costs of administering grants
authorized under section 1402;
(3) $30,000,000 is for grants to States for fiscal year
2011 to carry out export programs that assist small business
concerns authorized under section 1207;
(4) $30,000,000 is for grants to States for fiscal year
2012 to carry out export programs that assist small business
concerns authorized under section 1207;
(5) $2,500,000 is for the costs of administering grants
authorized under section 1207;
(6) $5,000,000 is for grants for fiscal year 2011 under the
Small Business Teaming Pilot Program under section 1314; and
(7) $5,000,000 is for grants for fiscal year 2012 under the
Small Business Teaming Pilot Program under section 1314.
(b) Report.--Not later than 60 days after the date of enactment of
this Act, the Administrator shall submit to the Committee on
Appropriations of the Senate and the Committee on Appropriations of the
House of Representatives a detailed expenditure plan for using the
funds provided under subsection (a).
SEC. 1702. BUSINESS LOANS PROGRAM ACCOUNT.
(a) In General.--There is appropriated, out of any money in the
Treasury not otherwise appropriated, for the fiscal year ending
September 30, 2010, for an additional amount for the appropriations
account appropriated under the heading ``business loans program
account'' under the heading ``Small Business Administration''--
(1) $8,000,000, to remain available until September 30,
2012, for fiscal year 2011 for the cost of direct loans
authorized under section 7(l) of the Small Business Act, as
added by section 1131 of this title, including the cost of
modifying the loans;
(2) $8,000,000, to remain available until September 30,
2012, for fiscal year 2012 for the cost of direct loans
authorized under section 7(l) of the Small Business Act, as
added by section 1131 of this title, including the cost of
modifying the loans;
(3) $6,500,000, to remain available until September 30,
2012, for administrative expenses to carry out the direct loan
program authorized under section 7(l) of the Small Business
Act, as added by section 1131 of this title, which may be
transferred to and merged with the appropriations account
appropriated under the heading ``salaries and expenses'' under
the heading ``Small Business Administration''; and
(4) $15,000,000, to remain available until September 30,
2011, for the cost of guaranteed loans as authorized under
section 7(a) of the Small Business Act, including the cost of
modifying the loans.
(b) Definition.--In this section, the term ``cost'' has the meaning
given that term in section 502 of the Congressional Budget Act of 1974.
SEC. 1703. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM
ACCOUNT.
There is appropriated, out of any money in the Treasury not
otherwise appropriated, for the fiscal year ending September 30, 2010,
for an additional amount for the appropriations account appropriated
under the heading ``community development financial institutions fund
program account'' under the heading ``DEPARTMENT OF THE TREASURY'',
$13,500,000, to remain available until September 30, 2012, for the
costs of administering guarantees for bonds and notes as authorized
under section 114A of the Riegle Community Development and Regulatory
Improvement Act of 1994, as added by section 1134 of this Act.
SEC. 1704. SMALL BUSINESS LOAN GUARANTEE ENHANCEMENT EXTENSIONS.
(a) Extension of Programs.--
(1) In general.--There is appropriated, out of any funds in
the Treasury not otherwise appropriated, for an additional
amount for ``Small Business Administration--Business Loans
Program Account'', $505,000,000, to remain available through
December 31, 2010, for the cost of--
(A) fee reductions and eliminations under section
501 of division A of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat.
151), as amended by this Act; and
(B) loan guarantees under section 502 of division A
of the American Recovery and Reinvestment Act of 2009
(Public Law 111-5; 123 Stat. 152), as amended by this
Act.
(2) Cost.--For purposes of this subsection, the term
``cost'' has the same meaning as in section 502 of the
Congressional Budget Act of 1974 (2 U.S.C. 661a).
(b) Administrative Expenses.--There is appropriated for an
additional amount, out of any funds in the Treasury not otherwise
appropriated, for administrative expenses to carry out sections 501 and
502 of division A of the American Recovery and Reinvestment Act of 2009
(Public Law 111-5), $5,000,000, to remain available until expended,
which may be transferred and merged with the appropriation for ``Small
Business Administration--Salaries and Expenses''.
TITLE II--TAX PROVISIONS
SEC. 2001. SHORT TITLE.
This title may be cited as the ``Creating Small Business Jobs Act
of 2010''.
Subtitle A--Small Business Relief
PART I--PROVIDING ACCESS TO CAPITAL
SEC. 2011. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON CERTAIN SMALL
BUSINESS STOCK.
(a) In General.--Subsection (a) of section 1202 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:
``(4) 100 percent exclusion for stock acquired during
certain periods in 2010.--In the case of qualified small
business stock acquired after the date of the enactment of the
Creating Small Business Jobs Act of 2010 and before January 1,
2011--
``(A) paragraph (1) shall be applied by
substituting `100 percent' for `50 percent',
``(B) paragraph (2) shall not apply, and
``(C) paragraph (7) of section 57(a) shall not
apply.''.
(b) Conforming Amendment.--Paragraph (3) of section 1202(a) of the
Internal Revenue Code of 1986 is amended--
(1) by inserting ``certain periods in'' before ``2010'' in
the heading, and
(2) by striking ``before January 1, 2011'' and inserting
``on or before the date of the enactment of the Creating Small
Business Jobs Act of 2010''.
(c) Effective Date.--The amendments made by this section shall
apply to stock acquired after the date of the enactment of this Act.
SEC. 2012. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL BUSINESSES FOR
2010 CARRIED BACK 5 YEARS.
(a) In General.--Section 39(a) of the Internal Revenue Code of 1986
is amended by adding at the end the following new paragraph:
``(4) 5-year carryback for eligible small business
credits.--
``(A) In general.--Notwithstanding subsection (d),
in the case of eligible small business credits
determined in the first taxable year of the taxpayer
beginning in 2010--
``(i) paragraph (1) shall be applied by
substituting `each of the 5 taxable years' for
`the taxable year' in subparagraph (A) thereof,
and
``(ii) paragraph (2) shall be applied--
``(I) by substituting `25 taxable
years' for `21 taxable years' in
subparagraph (A) thereof, and
``(II) by substituting `24 taxable
years' for `20 taxable years' in
subparagraph (B) thereof.
``(B) Eligible small business credits.--For
purposes of this subsection, the term `eligible small
business credits' has the meaning given such term by
section 38(c)(5)(B).''.
(b) Conforming Amendment.--Section 39(a)(3)(A) of the Internal
Revenue Code of 1986 is amended by inserting ``or the eligible small
business credits'' after ``credit)''.
(c) Effective Date.--The amendments made by this section shall
apply to credits determined in taxable years beginning after December
31, 2009.
SEC. 2013. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL BUSINESSES IN
2010 NOT SUBJECT TO ALTERNATIVE MINIMUM TAX.
(a) In General.--Section 38(c) of the Internal Revenue Code of 1986
is amended by redesignating paragraph (5) as paragraph (6) and by
inserting after paragraph (4) the following new paragraph:
``(5) Special rules for eligible small business credits in
2010.--
``(A) In general.--In the case of eligible small
business credits determined in taxable years beginning
in 2010--
``(i) this section and section 39 shall be
applied separately with respect to such
credits, and
``(ii) in applying paragraph (1) to such
credits--
``(I) the tentative minimum tax
shall be treated as being zero, and
``(II) the limitation under
paragraph (1) (as modified by subclause
(I)) shall be reduced by the credit
allowed under subsection (a) for the
taxable year (other than the eligible
small business credits).
``(B) Eligible small business credits.--For
purposes of this subsection, the term `eligible small
business credits' means the sum of the credits listed
in subsection (b) which are determined for the taxable
year with respect to an eligible small business. Such
credits shall not be taken into account under paragraph
(2), (3), or (4).
``(C) Eligible small business.--For purposes of
this subsection, the term `eligible small business'
means, with respect to any taxable year--
``(i) a corporation the stock of which is
not publicly traded,
``(ii) a partnership, or
``(iii) a sole proprietorship,
if the average annual gross receipts of such
corporation, partnership, or sole proprietorship for
the 3-taxable-year period preceding such taxable year
does not exceed $50,000,000. For purposes of applying
the test under the preceding sentence, rules similar to
the rules of paragraphs (2) and (3) of section 448(c)
shall apply.
``(D) Treatment of partners and s corporation
shareholders.--Credits determined with respect to a
partnership or S corporation shall not be treated as
eligible small business credits by any partner or
shareholder unless such partner or shareholder meets
the gross receipts test under subparagraph (C) for the
taxable year in which such credits are treated as
current year business credits.''.
(b) Technical Amendment.--Section 55(e)(5) of the Internal Revenue
Code of 1986 is amended by striking ``38(c)(3)(B)'' and inserting
``38(c)(6)(B)''.
(c) Conforming Amendments.--
(1) Subclause (II) of section 38(c)(2)(A)(ii) of the
Internal Revenue Code of 1986 is amended by inserting ``the
eligible small business credits,'' after ``the New York Liberty
Zone business employee credit,''.
(2) Subclause (II) of section 38(c)(3)(A)(ii) of such Code
is amended by inserting ``, the eligible small business
credits,'' after ``the New York Liberty Zone business employee
credit''.
(3) Subclause (II) of section 38(c)(4)(A)(ii) of such Code
is amended by inserting ``the eligible small business credits
and'' before ``the specified credits''.
(d) Effective Date.--The amendments made by subsection (a) shall
apply to credits determined in taxable years beginning after December
31, 2009, and to carrybacks of such credits.
SEC. 2014. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS
TAX.
(a) In General.--Subparagraph (B) of section 1374(d)(7) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(B) Special rules for 2009, 2010, and 2011.--No
tax shall be imposed on the net recognized built-in
gain of an S corporation--
``(i) in the case of any taxable year
beginning in 2009 or 2010, if the 7th taxable
year in the recognition period preceded such
taxable year, or
``(ii) in the case of any taxable year
beginning in 2011, if the 5th year in the
recognition period preceded such taxable year.
The preceding sentence shall be applied separately with
respect to any asset to which paragraph (8) applies.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2010.
PART II--ENCOURAGING INVESTMENT
SEC. 2021. INCREASED EXPENSING LIMITATIONS FOR 2010 AND 2011; CERTAIN
REAL PROPERTY TREATED AS SECTION 179 PROPERTY.
(a) Increased Limitations.--Subsection (b) of section 179 of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``shall not exceed'' and all that follows
in paragraph (1) and inserting ``shall not exceed--
``(A) $250,000 in the case of taxable years
beginning after 2007 and before 2010,
``(B) $500,000 in the case of taxable years
beginning in 2010 or 2011, and
``(C) $25,000 in the case of taxable years
beginning after 2011.'', and
(2) by striking ``exceeds'' and all that follows in
paragraph (2) and inserting ``exceeds--
``(A) $800,000 in the case of taxable years
beginning after 2007 and before 2010,
``(B) $2,000,000 in the case of taxable years
beginning in 2010 or 2011, and
``(C) $200,000 in the case of taxable years
beginning after 2011.''.
(b) Inclusion of Certain Real Property.--Section 179 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new subsection:
``(f) Special Rules for Qualified Real Property.--
``(1) In general.--If a taxpayer elects the application of
this subsection for any taxable year beginning in 2010 or 2011,
the term `section 179 property' shall include any qualified
real property which is--
``(A) of a character subject to an allowance for
depreciation,
``(B) acquired by purchase for use in the active
conduct of a trade or business, and
``(C) not described in the last sentence of
subsection (d)(1).
``(2) Qualified real property.--For purposes of this
subsection, the term `qualified real property' means--
``(A) qualified leasehold improvement property
described in section 168(e)(6),
``(B) qualified restaurant property described in
section 168(e)(7) (without regard to the dates
specified in subparagraph (A)(i) thereof), and
``(C) qualified retail improvement property
described in section 168(e)(8) (without regard to
subparagraph (E) thereof).
``(3) Limitation.--For purposes of applying the limitation
under subsection (b)(1)(B), not more than $250,000 of the
aggregate cost which is taken into account under subsection (a)
for any taxable year may be attributable to qualified real
property.
``(4) Carryover limitation.--
``(A) In general.--Notwithstanding subsection
(b)(3)(B), no amount attributable to qualified real
property may be carried over to a taxable year
beginning after 2011.
``(B) Treatment of disallowed amounts.--Except as
provided in subparagraph (C), to the extent that any
amount is not allowed to be carried over to a taxable
year beginning after 2011 by reason of subparagraph
(A), this title shall be applied as if no election
under this section had been made with respect to such
amount.
``(C) Amounts carried over from 2010.--If
subparagraph (B) applies to any amount (or portion of
an amount) which is carried over from a taxable year
other than the taxpayer's last taxable year beginning
in 2011, such amount (or portion of an amount) shall be
treated for purposes of this title as attributable to
property placed in service on the first day of the
taxpayer's last taxable year beginning in 2011.
``(D) Allocation of amounts.--For purposes of
applying this paragraph and subsection (b)(3)(B) to any
taxable year, the amount which is disallowed under
subsection (b)(3)(A) for such taxable year which is
attributed to qualified real property shall be the
amount which bears the same ratio to the total amount
so disallowed as--
``(i) the aggregate amount attributable to
qualified real property placed in service
during such taxable year, increased by the
portion of any amount carried over to such
taxable year from a prior taxable year which is
attributable to such property, bears to
``(ii) the total amount of section 179
property placed in service during such taxable
year, increased by the aggregate amount carried
over to such taxable year from any prior
taxable year.
For purposes of the preceding sentence, only section
179 property with respect to which an election was made
under subsection (c)(1) (determined without regard to
subparagraph (B) of this paragraph) shall be taken into
account.''.
(c) Revocability of Election.--Paragraph (2) of section 179(c) of
the Internal Revenue Code of 1986 is amended by striking ``2011'' and
inserting ``2012''.
(d) Computer Software Treated as 179 Property.--Clause (ii) of
section 179(d)(1)(A) is amended by striking ``2011'' and inserting
``2012''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to property placed
in service after December 31, 2009, in taxable years beginning
after such date.
(2) Extensions.--The amendments made by subsections (c) and
(d) shall apply to taxable years beginning after December 31,
2010.
SEC. 2022. ADDITIONAL FIRST-YEAR DEPRECIATION FOR 50 PERCENT OF THE
BASIS OF CERTAIN QUALIFIED PROPERTY.
(a) In General.--Paragraph (2) of section 168(k) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``January 1, 2011'' in subparagraph (A)(iv)
and inserting ``January 1, 2012'', and
(2) by striking ``January 1, 2010'' each place it appears
and inserting ``January 1, 2011''.
(b) Conforming Amendments.--
(1) The heading for subsection (k) of section 168 of the
Internal Revenue Code of 1986 is amended by striking ``January
1, 2010'' and inserting ``January 1, 2011''.
(2) The heading for clause (ii) of section 168(k)(2)(B) of
such Code is amended by striking ``Pre-january 1, 2010'' and
inserting ``Pre-january 1, 2011''.
(3) Subparagraph (D) of section 168(k)(4) of such Code is
amended by striking ``and'' at the end of clause (ii), by
striking the period at the end of clause (iii) and inserting a
comma, and by adding at the end the following new clauses:
``(iv) `January 1, 2011' shall be
substituted for `January 1, 2012' in
subparagraph (A)(iv) thereof, and
``(v) `January 1, 2010' shall be
substituted for `January 1, 2011' each place it
appears in subparagraph (A) thereof.''.
(4) Subparagraph (B) of section 168(l)(5) of such Code is
amended by striking ``January 1, 2010'' and inserting ``January
1, 2011''.
(5) Subparagraph (C) of section 168(n)(2) of such Code is
amended by striking ``January 1, 2010'' and inserting ``January
1, 2011''.
(6) Subparagraph (D) of section 1400L(b)(2) of such Code is
amended by striking ``January 1, 2010'' and inserting ``January
1, 2011''.
(7) Subparagraph (B) of section 1400N(d)(3) of such Code is
amended by striking ``January 1, 2010'' and inserting ``January
1, 2011''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2009, in taxable
years ending after such date.
SEC. 2023. SPECIAL RULE FOR LONG-TERM CONTRACT ACCOUNTING.
(a) In General.--Section 460(c) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(6) Special rule for allocation of bonus depreciation
with respect to certain property.--
``(A) In general.--Solely for purposes of
determining the percentage of completion under
subsection (b)(1)(A), the cost of qualified property
shall be taken into account as a cost allocated to the
contract as if subsection (k) of section 168 had not
been enacted.
``(B) Qualified property.--For purposes of this
paragraph, the term `qualified property' means property
described in section 168(k)(2) which--
``(i) has a recovery period of 7 years or
less, and
``(ii) is placed in service after December
31, 2009, and before January 1, 2011 (January
1, 2012, in the case of property described in
section 168(k)(2)(B)).''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2009.
PART III--PROMOTING ENTREPRENEURSHIP
SEC. 2031. INCREASE IN AMOUNT ALLOWED AS DEDUCTION FOR START-UP
EXPENDITURES IN 2010.
(a) Start-up Expenditures.--Subsection (b) of section 195 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new paragraph:
``(3) Special rule for taxable years beginning in 2010.--In
the case of a taxable year beginning in 2010, paragraph
(1)(A)(ii) shall be applied--
``(A) by substituting `$10,000' for `$5,000', and
``(B) by substituting `$60,000' for `$50,000'.''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts paid or incurred in taxable years beginning after December
31, 2009.
SEC. 2032. AUTHORIZATION OF APPROPRIATIONS FOR THE UNITED STATES TRADE
REPRESENTATIVE TO DEVELOP MARKET ACCESS OPPORTUNITIES FOR
UNITED STATES SMALL- AND MEDIUM-SIZED BUSINESSES AND TO
ENFORCE TRADE AGREEMENTS.
(a) In General.--There are authorized to be appropriated to the
Office of the United States Trade Representative $5,230,000, to remain
available until expended, for--
(1) analyzing and developing opportunities for businesses
in the United States to access the markets of foreign
countries; and
(2) enforcing trade agreements to which the United States
is a party.
(b) Requirements.--In obligating and expending the funds authorized
to be appropriated under subsection (a), the United States Trade
Representative shall--
(1) give preference to those initiatives that the United
States Trade Representative determines will create or sustain
the greatest number of jobs in the United States or result in
the greatest benefit to the economy of the United States; and
(2) consider the needs of small- and medium-sized
businesses in the United States with respect to--
(A) accessing the markets of foreign countries; and
(B) the enforcement of trade agreements to which
the United States is a party.
PART IV--PROMOTING SMALL BUSINESS FAIRNESS
SEC. 2041. LIMITATION ON PENALTY FOR FAILURE TO DISCLOSE REPORTABLE
TRANSACTIONS BASED ON RESULTING TAX BENEFITS.
(a) In General.--Subsection (b) of section 6707A of the Internal
Revenue Code of 1986 is amended to read as follows:
``(b) Amount of Penalty.--
``(1) In general.--Except as otherwise provided in this
subsection, the amount of the penalty under subsection (a) with
respect to any reportable transaction shall be 75 percent of
the decrease in tax shown on the return as a result of such
transaction (or which would have resulted from such transaction
if such transaction were respected for Federal tax purposes).
``(2) Maximum penalty.--The amount of the penalty under
subsection (a) with respect to any reportable transaction shall
not exceed--
``(A) in the case of a listed transaction, $200,000
($100,000 in the case of a natural person), or
``(B) in the case of any other reportable
transaction, $50,000 ($10,000 in the case of a natural
person).
``(3) Minimum penalty.--The amount of the penalty under
subsection (a) with respect to any transaction shall not be
less than $10,000 ($5,000 in the case of a natural person).''.
(b) Effective Date.--The amendment made by this section shall apply
to penalties assessed after December 31, 2006.
SEC. 2042. DEDUCTION FOR HEALTH INSURANCE COSTS IN COMPUTING SELF-
EMPLOYMENT TAXES IN 2010.
(a) In General.--Paragraph (4) of section 162(l) of the Internal
Revenue Code of 1986 is amended by inserting ``for taxable years
beginning before January 1, 2010, or after December 31, 2010'' before
the period.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
SEC. 2043. REMOVAL OF CELLULAR TELEPHONES AND SIMILAR
TELECOMMUNICATIONS EQUIPMENT FROM LISTED PROPERTY.
(a) In General.--Subparagraph (A) of section 280F(d)(4) of the
Internal Revenue Code of 1986 (defining listed property) is amended by
adding ```and''' at the end of clause (iv), by striking clause (v), and
by redesignating clause (vi) as clause (v).
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2009.
Subtitle B--Revenue Provisions
PART I--REDUCING THE TAX GAP
SEC. 2101. INFORMATION REPORTING FOR RENTAL PROPERTY EXPENSE PAYMENTS.
(a) In General.--Section 6041 of the Internal Revenue Code of 1986,
as amended by section 9006 of the Patient Protection and Affordable
Care Act, is amended by redesignating subsections (h) and (i) as
subsections (i) and (j), respectively, and by inserting after
subsection (g) the following new subsection:
``(h) Treatment of Rental Property Expense Payments.--
``(1) In general.--Solely for purposes of subsection (a)
and except as provided in paragraph (2), a person receiving
rental income from real estate shall be considered to be
engaged in a trade or business of renting property.
``(2) Exceptions.--Paragraph (1) shall not apply to--
``(A) any individual, including any individual who
is an active member of the uniformed services or an
employee of the intelligence community (as defined in
section 121(d)(9)(C)(iv)), if substantially all rental
income is derived from renting the principal residence
(within the meaning of section 121) of such individual
on a temporary basis,
``(B) any individual who receives rental income of
not more than the minimal amount, as determined under
regulations prescribed by the Secretary, and
``(C) any other individual for whom the
requirements of this section would cause hardship, as
determined under regulations prescribed by the
Secretary.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to payments made after December 31, 2010.
SEC. 2102. INCREASE IN INFORMATION RETURN PENALTIES.
(a) Failure To File Correct Information Returns.--
(1) In general.--Subsections (a)(1), (b)(1)(A), and
(b)(2)(A) of section 6721 of the Internal Revenue Code of 1986
are each amended by striking ``$50'' and inserting ``$100''.
(2) Aggregate annual limitation.--Subsections (a)(1),
(d)(1)(A), and (e)(3)(A) of section 6721 of such Code are each
amended by striking ``$250,000'' and inserting ``$1,500,000''.
(b) Reduction Where Correction Within 30 Days.--
(1) In general.--Subparagraph (A) of section 6721(b)(1) of
the Internal Revenue Code of 1986 is amended by striking
``$15'' and inserting ``$30''.
(2) Aggregate annual limitation.--Subsections (b)(1)(B) and
(d)(1)(B) of section 6721 of such Code are each amended by
striking ``$75,000'' and inserting ``$250,000''.
(c) Reduction Where Correction on or Before August 1.--
(1) In general.--Subparagraph (A) of section 6721(b)(2) of
the Internal Revenue Code of 1986 is amended by striking
``$30'' and inserting ``$60''.
(2) Aggregate annual limitation.--Subsections (b)(2)(B) and
(d)(1)(C) of section 6721 of such Code are each amended by
striking ``$150,000'' and inserting ``$500,000''.
(d) Aggregate Annual Limitations for Persons With Gross Receipts of
Not More Than $5,000,000.--
(1) In general.--Paragraph (1) of section 6721(d) of the
Internal Revenue Code of 1986 is amended--
(A) by striking ``$100,000'' in subparagraph (A)
and inserting ``$500,000'',
(B) by striking ``$25,000'' in subparagraph (B) and
inserting ``$75,000'', and
(C) by striking ``$50,000'' in subparagraph (C) and
inserting ``$200,000''.
(2) Technical amendment.--Paragraph (1) of section 6721(d)
of such Code is amended by striking ``such taxable year'' and
inserting ``such calendar year''.
(e) Penalty in Case of Intentional Disregard.--Paragraph (2) of
section 6721(e) of the Internal Revenue Code of 1986 is amended by
striking ``$100'' and inserting ``$250''.
(f) Adjustment for Inflation.--Section 6721 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subsection:
``(f) Adjustment for Inflation.--
``(1) In general.--For each fifth calendar year beginning
after 2012, each of the dollar amounts under subsections (a),
(b), (d) (other than paragraph (2)(A) thereof), and (e) shall
be increased by such dollar amount multiplied by the cost-of-
living adjustment determined under section 1(f)(3) determined
by substituting `calendar year 2011' for `calendar year 1992'
in subparagraph (B) thereof.
``(2) Rounding.--If any amount adjusted under paragraph
(1)--
``(A) is not less than $75,000 and is not a
multiple of $500, such amount shall be rounded to the
next lowest multiple of $500, and
``(B) is not described in subparagraph (A) and is
not a multiple of $10, such amount shall be rounded to
the next lowest multiple of $10.''.
(g) Failure To Furnish Correct Payee Statements.--Section 6722 of
the Internal Revenue Code of 1986 is amended to read as follows:
``SEC. 6722. FAILURE TO FURNISH CORRECT PAYEE STATEMENTS.
``(a) Imposition of Penalty.--
``(1) General rule.--In the case of each failure described
in paragraph (2) by any person with respect to a payee
statement, such person shall pay a penalty of $100 for each
statement with respect to which such a failure occurs, but the
total amount imposed on such person for all such failures
during any calendar year shall not exceed $1,500,000.
``(2) Failures subject to penalty.--For purposes of
paragraph (1), the failures described in this paragraph are--
``(A) any failure to furnish a payee statement on
or before the date prescribed therefor to the person to
whom such statement is required to be furnished, and
``(B) any failure to include all of the information
required to be shown on a payee statement or the
inclusion of incorrect information.
``(b) Reduction Where Correction in Specified Period.--
``(1) Correction within 30 days.--If any failure described
in subsection (a)(2) is corrected on or before the day 30 days
after the required filing date--
``(A) the penalty imposed by subsection (a) shall
be $30 in lieu of $100, and
``(B) the total amount imposed on the person for
all such failures during any calendar year which are so
corrected shall not exceed $250,000.
``(2) Failures corrected on or before august 1.--If any
failure described in subsection (a)(2) is corrected after the
30th day referred to in paragraph (1) but on or before August 1
of the calendar year in which the required filing date occurs--
``(A) the penalty imposed by subsection (a) shall
be $60 in lieu of $100, and
``(B) the total amount imposed on the person for
all such failures during the calendar year which are so
corrected shall not exceed $500,000.
``(c) Exception for De Minimis Failures.--
``(1) In general.--If--
``(A) a payee statement is furnished to the person
to whom such statement is required to be furnished,
``(B) there is a failure described in subsection
(a)(2)(B) (determined after the application of section
6724(a)) with respect to such statement, and
``(C) such failure is corrected on or before August
1 of the calendar year in which the required filing
date occurs,
for purposes of this section, such statement shall be treated
as having been furnished with all of the correct required
information.
``(2) Limitation.--The number of payee statements to which
paragraph (1) applies for any calendar year shall not exceed
the greater of--
``(A) 10, or
``(B) one-half of 1 percent of the total number of
payee statements required to be filed by the person
during the calendar year.
``(d) Lower Limitations for Persons With Gross Receipts of Not More
Than $5,000,000.--
``(1) In general.--If any person meets the gross receipts
test of paragraph (2) with respect to any calendar year, with
respect to failures during such calendar year--
``(A) subsection (a)(1) shall be applied by
substituting `$500,000' for `$1,500,000',
``(B) subsection (b)(1)(B) shall be applied by
substituting `$75,000' for `$250,000', and
``(C) subsection (b)(2)(B) shall be applied by
substituting `$200,000' for `$500,000'.
``(2) Gross receipts test.--A person meets the gross
receipts test of this paragraph if such person meets the gross
receipts test of section 6721(d)(2).
``(e) Penalty in Case of Intentional Disregard.--If 1 or more
failures to which subsection (a) applies are due to intentional
disregard of the requirement to furnish a payee statement (or the
correct information reporting requirement), then, with respect to each
such failure--
``(1) subsections (b), (c), and (d) shall not apply,
``(2) the penalty imposed under subsection (a)(1) shall be
$250, or, if greater--
``(A) in the case of a payee statement other than a
statement required under section 6045(b), 6041A(e) (in
respect of a return required under section 6041A(b)),
6050H(d), 6050J(e), 6050K(b), or 6050L(c), 10 percent
of the aggregate amount of the items required to be
reported correctly, or
``(B) in the case of a payee statement required
under section 6045(b), 6050K(b), or 6050L(c), 5 percent
of the aggregate amount of the items required to be
reported correctly, and
``(3) in the case of any penalty determined under paragraph
(2)--
``(A) the $1,500,000 limitation under subsection
(a) shall not apply, and
``(B) such penalty shall not be taken into account
in applying such limitation to penalties not determined
under paragraph (2).
``(f) Adjustment for Inflation.--
``(1) In general.--For each fifth calendar year beginning
after 2012, each of the dollar amounts under subsections (a),
(b), (d)(1), and (e) shall be increased by such dollar amount
multiplied by the cost-of-living adjustment determined under
section 1(f)(3) determined by substituting `calendar year 2011'
for `calendar year 1992' in subparagraph (B) thereof.
``(2) Rounding.--If any amount adjusted under paragraph
(1)--
``(A) is not less than $75,000 and is not a
multiple of $500, such amount shall be rounded to the
next lowest multiple of $500, and
``(B) is not described in subparagraph (A) and is
not a multiple of $10, such amount shall be rounded to
the next lowest multiple of $10.''.
(h) Effective Date.--The amendments made by this section shall
apply with respect to information returns required to be filed on or
after January 1, 2011.
SEC. 2103. REPORT ON TAX SHELTER PENALTIES AND CERTAIN OTHER
ENFORCEMENT ACTIONS.
(a) In General.--The Commissioner of Internal Revenue, in
consultation with the Secretary of the Treasury, shall submit to the
Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate an annual report on the penalties
assessed by the Internal Revenue Service during the preceding year
under each of the following provisions of the Internal Revenue Code of
1986:
(1) Section 6662A (relating to accuracy-related penalty on
understatements with respect to reportable transactions).
(2) Section 6700(a) (relating to promoting abusive tax
shelters).
(3) Section 6707 (relating to failure to furnish
information regarding reportable transactions).
(4) Section 6707A (relating to failure to include
reportable transaction information with return).
(5) Section 6708 (relating to failure to maintain lists of
advisees with respect to reportable transactions).
(b) Additional Information.--The report required under subsection
(a) shall also include information on the following with respect to
each year:
(1) Any action taken under section 330(b) of title 31,
United States Code, with respect to any reportable transaction
(as defined in section 6707A(c) of the Internal Revenue Code of
1986).
(2) Any extension of the time for assessment of tax
enforced, or assessment of any amount under such an extension,
under paragraph (10) of section 6501(c) of the Internal Revenue
Code of 1986.
(c) Date of Report.--The first report required under subsection (a)
shall be submitted not later than December 31, 2010.
SEC. 2104. APPLICATION OF CONTINUOUS LEVY TO TAX LIABILITIES OF CERTAIN
FEDERAL CONTRACTORS.
(a) In General.--Subsection (f) of section 6330 of the Internal
Revenue Code of 1986 is amended by striking ``or'' at the end of
paragraph (2), by inserting ``or'' at the end of paragraph (3), and by
inserting after paragraph (3) the following new paragraph:
``(4) the Secretary has served a Federal contractor
levy,''.
(b) Federal Contractor Levy.--Subsection (h) of section 6330 of the
Internal Revenue Code of 1986 is amended--
(1) by striking all that precedes ``any levy in connection
with the collection'' and inserting the following:
``(h) Definitions Related to Exceptions.--For purposes of
subsection (f)--
``(1) Disqualified employment tax levy.--A disqualified
employment tax levy is''; and
(2) by adding at the end the following new paragraph:
``(2) Federal contractor levy.--A Federal contractor levy
is any levy if the person whose property is subject to the levy
(or any predecessor thereof) is a Federal contractor.''.
(c) Conforming Amendment.--The heading of subsection (f) of section
6330 of the Internal Revenue Code of 1986 is amended by striking
``Jeopardy and State Refund Collection'' and inserting ``Exceptions''.
(d) Effective Date.--The amendments made by this section shall
apply to levies issued after the date of the enactment of this Act.
PART II--PROMOTING RETIREMENT PREPARATION
SEC. 2111. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS ALLOWED TO
TREAT ELECTIVE DEFERRALS AS ROTH CONTRIBUTIONS.
(a) In General.--Section 402A(e)(1) of the Internal Revenue Code of
1986 is amended by striking ``and'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and inserting ``,
and'', and by adding at the end the following:
``(C) an eligible deferred compensation plan (as
defined in section 457(b)) of an eligible employer
described in section 457(e)(1)(A).''.
(b) Elective Deferrals.--Section 402A(e)(2) of the Internal Revenue
Code of 1986 is amended to read as follows:
``(2) Elective deferral.--The term `elective deferral'
means--
``(A) any elective deferral described in
subparagraph (A) or (C) of section 402(g)(3), and
``(B) any elective deferral of compensation by an
individual under an eligible deferred compensation plan
(as defined in section 457(b)) of an eligible employer
described in section 457(e)(1)(A).''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2010.
SEC. 2112. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS TO DESIGNATED ROTH
ACCOUNTS.
(a) In General.--Section 402A(c) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(4) Taxable rollovers to designated roth accounts.--
``(A) In general.--Notwithstanding sections 402(c),
403(b)(8), and 457(e)(16), in the case of any
distribution to which this paragraph applies--
``(i) there shall be included in gross
income any amount which would be includible
were it not part of a qualified rollover
contribution,
``(ii) section 72(t) shall not apply, and
``(iii) unless the taxpayer elects not to
have this clause apply, any amount required to
be included in gross income for any taxable
year beginning in 2010 by reason of this
paragraph shall be so included ratably over the
2-taxable-year period beginning with the first
taxable year beginning in 2011.
Any election under clause (iii) for any distributions
during a taxable year may not be changed after the due
date for such taxable year.
``(B) Distributions to which paragraph applies.--In
the case of an applicable retirement plan which
includes a qualified Roth contribution program, this
paragraph shall apply to a distribution from such plan
other than from a designated Roth account which is
contributed in a qualified rollover contribution
(within the meaning of section 408A(e)) to the
designated Roth account maintained under such plan for
the benefit of the individual to whom the distribution
is made.
``(C) Coordination with limit.--Any distribution to
which this paragraph applies shall not be taken into
account for purposes of paragraph (1).
``(D) Other rules.--The rules of subparagraphs (D),
(E), and (F) of section 408A(d)(3) (as in effect for
taxable years beginning after 2009) shall apply for
purposes of this paragraph.''.
(b) Effective Date.--The amendments made by this section shall
apply to distributions after the date of the enactment of this Act.
SEC. 2113. SPECIAL RULES FOR ANNUITIES RECEIVED FROM ONLY A PORTION OF
A CONTRACT.
(a) In General.--Subsection (a) of section 72 of the Internal
Revenue Code of 1986 is amended to read as follows:
``(a) General Rules for Annuities.--
``(1) Income inclusion.--Except as otherwise provided in
this chapter, gross income includes any amount received as an
annuity (whether for a period certain or during one or more
lives) under an annuity, endowment, or life insurance contract.
``(2) Partial annuitization.--If any amount is received as
an annuity for a period of 10 years or more or during one or
more lives under any portion of an annuity, endowment, or life
insurance contract--
``(A) such portion shall be treated as a separate
contract for purposes of this section,
``(B) for purposes of applying subsections (b),
(c), and (e), the investment in the contract shall be
allocated pro rata between each portion of the contract
from which amounts are received as an annuity and the
portion of the contract from which amounts are not
received as an annuity, and
``(C) a separate annuity starting date under
subsection (c)(4) shall be determined with respect to
each portion of the contract from which amounts are
received as an annuity.''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts received in taxable years beginning after December 31, 2010.
PART III--CLOSING UNINTENDED LOOPHOLES
SEC. 2121. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC BIOFUEL PRODUCER
CREDIT.
(a) In General.--Clause (iii) of section 40(b)(6)(E) of the
Internal Revenue Code of 1986, as added by the Health Care and
Education Reconciliation Act of 2010, is amended--
(1) by striking ``or'' at the end of subclause (I),
(2) by striking the period at the end of subclause (II) and
inserting ``, or'',
(3) by adding at the end the following new subclause:
``(III) such fuel has an acid
number greater than 25.'', and
(4) by striking ``unprocessed'' in the heading and
inserting ``certain''.
(b) Effective Date.--The amendments made by this section shall
apply to fuels sold or used on or after January 1, 2010.
SEC. 2122. SOURCE RULES FOR INCOME ON GUARANTEES.
(a) Amounts Sourced Within the United States.--Subsection (a) of
section 861 of the Internal Revenue Code of 1986 is amended by adding
at the end the following new paragraph:
``(9) Guarantees.--Amounts received, directly or
indirectly, from--
``(A) a noncorporate resident or domestic
corporation for the provision of a guarantee of any
indebtedness of such resident or corporation, or
``(B) any foreign person for the provision of a
guarantee of any indebtedness of such person, if such
amount is connected with income which is effectively
connected (or treated as effectively connected) with
the conduct of a trade or business in the United
States.''.
(b) Amounts Sourced Without the United States.--Subsection (a) of
section 862 of the Internal Revenue Code of 1986 is amended by striking
``and'' at the end of paragraph (7), by striking the period at the end
of paragraph (8) and inserting ``; and'', and by adding at the end the
following new paragraph:
``(9) amounts received, directly or indirectly, from a
foreign person for the provision of a guarantee of indebtedness
of such person other than amounts which are derived from
sources within the United States as provided in section
861(a)(9).''.
(c) Conforming Amendment.--Clause (ii) of section 864(c)(4)(B) of
the Internal Revenue Code of 1986 is amended by striking ``dividends or
interest'' and inserting ``dividends, interest, or amounts received for
the provision of guarantees of indebtedness''.
(d) Effective Date.--The amendments made by this section shall
apply to guarantees issued after the date of the enactment of this Act.
PART IV--TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES
SEC. 2131. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
The percentage under paragraph (2) of section 561 of the Hiring
Incentives to Restore Employment Act in effect on the date of the
enactment of this Act is increased by 36 percentage points.
TITLE III--STATE SMALL BUSINESS CREDIT INITIATIVE
SEC. 3001. SHORT TITLE.
This title may be cited as the ``State Small Business Credit
Initiative Act of 2010''.
SEC. 3002. DEFINITIONS.
In this title, the following definitions shall apply:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Small Business and
Entrepreneurship, the Committee on Agriculture,
Nutrition, and Forestry, the Committee on Banking,
Housing, and Urban Affairs, the Committee on Finance,
the Committee on the Budget, and the Committee on
Appropriations of the Senate; and
(B) the Committee on Small Business, the Committee
on Agriculture, the Committee on Financial Services,
the Committee on Ways and Means, the Committee on the
Budget, and the Committee on Appropriations of the
House of Representatives.
(2) Appropriate federal banking agency.--The term
``appropriate Federal banking agency''--
(A) has the same meaning as in section 3(q) of the
Federal Deposit Insurance Act (12 U.S.C. 1813(q)); and
(B) includes the National Credit Union
Administration Board in the case of any credit union
the deposits of which are insured in accordance with
the Federal Credit Union Act.
(3) Enrolled loan.--The term ``enrolled loan'' means a loan
made by a financial institution lender that is enrolled by a
participating State in an approved State capital access program
in accordance with this title.
(4) Federal contribution.--The term ``Federal
contribution'' means the portion of the contribution made by a
participating State to, or for the account of, an approved
State program that is made with Federal funds allocated to the
State by the Secretary under section 3003.
(5) Financial institution.--The term ``financial
institution'' means any insured depository institution, insured
credit union, or community development financial institution,
as those terms are each defined in section 103 of the Riegle
Community Development and Regulatory Improvement Act of 1994
(12 U.S.C. 4702).
(6) Participating state.--The term ``participating State''
means any State that has been approved for participation in the
Program under section 3004.
(7) Program.--The term ``Program'' means the State Small
Business Credit Initiative established under this title.
(8) Qualifying loan or swap funding facility.--The term
``qualifying loan or swap funding facility'' means a
contractual arrangement between a participating State and a
private financial entity under which--
(A) the participating State delivers funds to the
entity as collateral;
(B) the entity provides funding from the
arrangement back to the participating State; and
(C) the full amount of resulting funding from the
arrangement, less any fees and other costs of the
arrangement, is contributed to, or for the account of,
an approved State program.
(9) Reserve fund.--The term ``reserve fund'' means a fund,
established by a participating State, dedicated to a particular
financial institution lender, for the purposes of--
(A) depositing all required premium charges paid by
the financial institution lender and by each borrower
receiving a loan under an approved State program from
that financial institution lender;
(B) depositing contributions made by the
participating State, including State contributions made
with Federal contributions; and
(C) covering losses on enrolled loans by disbursing
accumulated funds.
(10) State.--The term ``State'' means--
(A) a State of the United States;
(B) the District of Columbia, the Commonwealth of
Puerto Rico, the Commonwealth of Northern Mariana
Islands, Guam, American Samoa, and the United States
Virgin Islands;
(C) when designated by a State of the United
States, a political subdivision of that State that the
Secretary determines has the capacity to participate in
the Program; and
(D) under the circumstances described in section
3004(d), a municipality of a State of the United States
to which the Secretary has given a special permission
under section 3004(d).
(11) State capital access program.--The term ``State
capital access program'' means a program of a State that--
(A) uses public resources to promote private access
to credit; and
(B) meets the eligibility criteria in section
3005(c).
(12) State other credit support program.--The term ``State
other credit support program''--
(A) means a program of a State that--
(i) uses public resources to promote
private access to credit;
(ii) is not a State capital access program;
and
(iii) meets the eligibility criteria in
section 3006(c); and
(B) includes, collateral support programs, loan
participation programs, State-run venture capital fund
programs, and credit guarantee programs.
(13) State program.--The term ``State program'' means a
State capital access program or a State other credit support
program.
(14) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
SEC. 3003. FEDERAL FUNDS ALLOCATED TO STATES.
(a) Program Established; Purpose.--There is established the State
Small Business Credit Initiative, to be administered by the Secretary.
Under the Program, the Secretary shall allocate Federal funds to
participating States and make the allocated funds available to the
participating States as provided in this section for the uses described
in this section.
(b) Allocation Formula.--
(1) In general.--Not later than 30 days after the date of
enactment of this Act, the Secretary shall allocate Federal
funds to participating States so that each State is eligible to
receive an amount equal to the average of the respective
amounts that the State--
(A) would receive under the 2009 allocation, as
determined under paragraph (2); and
(B) would receive under the 2010 allocation, as
determined under paragraph (3).
(2) 2009 allocation formula.--
(A) In general.--The Secretary shall determine the
2009 allocation by allocating Federal funds among the
States in the proportion that each such State's 2008
State employment decline bears to the aggregate of the
2008 State employment declines for all States.
(B) Minimum allocation.--The Secretary shall adjust
the allocations under subparagraph (A) for each State
to the extent necessary to ensure that no State
receives less than 0.9 percent of the Federal funds.
(C) 2008 state employment decline defined.--In this
paragraph and with respect to a State, the term ``2008
State employment decline'' means the excess (if any)
of--
(i) the number of individuals employed in
such State determined for December 2007; over
(ii) the number of individuals employed in
such State determined for December 2008.
(3) 2010 allocation formula.--
(A) In general.--The Secretary shall determine the
2010 allocation by allocating Federal funds among the
States in the proportion that each such State's 2009
unemployment number bears to the aggregate of the 2009
unemployment numbers for all of the States.
(B) Minimum allocation.--The Secretary shall adjust
the allocations under subparagraph (A) for each State
to the extent necessary to ensure that no State
receives less than 0.9 percent of the Federal funds.
(C) 2009 unemployment number defined.--In this
paragraph and with respect to a State, the term ``2009
unemployment number'' means the number of individuals
within such State who were determined to be unemployed
by the Bureau of Labor Statistics for December 2009.
(c) Availability of Allocated Amount.--The amount allocated by the
Secretary to each participating State under subsection (b) shall be
made available to the State as follows:
(1) Allocated amount generally to be available to state in
one-thirds.--
(A) In general.--The Secretary shall--
(i) apportion the participating State's
allocated amount into thirds;
(ii) transfer to the participating State
the first \1/3\ when the Secretary approves the
State for participation under section 3004; and
(iii) transfer to the participating State
each successive \1/3\ when the State has
certified to the Secretary that it has
expended, transferred, or obligated 80 percent
of the last transferred \1/3\ for Federal
contributions to, or for the account of, State
programs.
(B) Authority to withhold pending audit.--The
Secretary may withhold the transfer of any successive
\1/3\ pending results of a financial audit.
(C) Inspector general audits.--
(i) In general.--The Inspector General of
the Department of the Treasury shall carry out
an audit of the participating State's use of
allocated Federal funds transferred to the
State.
(ii) Recoupment of misused transferred
funds required.--The allocation agreement
between the Secretary and the participating
State shall provide that the Secretary shall
recoup any allocated Federal funds transferred
to the participating State if the results of
the an audit include a finding that there was
an intentional or reckless misuse of
transferred funds by the State.
(iii) Penalty for misstatement.--Any
participating State that is found to have
intentionally misstated any report issued to
the Secretary under the Program shall be
ineligible to receive any additional funds
under the Program. Funds that had been
allocated or that would otherwise have been
allocated to such participating State shall be
paid into the general fund of the Treasury for
reduction of the public debt.
(iv) Municipalities.--In this subparagraph,
the term ``participating State'' shall include
a municipality given special permission to
participate in the Program, under section
3004(d).
(D) Exception.--The Secretary may, in the
Secretary's discretion, transfer the full amount of the
participating State's allocated amount to the State in
a single transfer if the participating State applies to
the Secretary for approval to use the full amount of
the allocation as collateral for a qualifying loan or
swap funding facility.
(2) Transferred amounts.--Each amount transferred to a
participating State under this section shall remain available
to the State until used by the State as permitted under
paragraph (3).
(3) Use of transferred funds.--Each participating State may
use funds transferred to it under this section only--
(A) for making Federal contributions to, or for the
account of, an approved State program;
(B) as collateral for a qualifying loan or swap
funding facility;
(C) in the case of the first \1/3\ transferred, for
paying administrative costs incurred by the State in
implementing an approved State program in an amount not
to exceed 5 percent of that first \1/3\; or
(D) in the case of each successive \1/3\
transferred, for paying administrative costs incurred
by the State in implementing an approved State program
in an amount not to exceed 3 percent of that successive
\1/3\.
(4) Termination of availability of amounts not transferred
within 2 years of participation.--Any portion of a
participating State's allocated amount that has not been
transferred to the State under this section by the end of the
2-year period beginning on the date that the Secretary approves
the State for participation may be deemed by the Secretary to
be no longer allocated to the State and no longer available to
the State and shall be returned to the General Fund of the
Treasury.
(5) Transferred amounts not assistance.--The amounts
transferred to a participating State under this section shall
not be considered assistance for purposes of subtitle V of
title 31, United States Code.
(6) Definitions.--In this section--
(A) the term ``allocated amount'' means the total
amount of Federal funds allocated by the Secretary
under subsection (b) to the participating State; and
(B) the term ``\1/3\'' means--
(i) in the case of the first \1/3\ and
second \1/3\, an amount equal to 33 percent of
a participating State's allocated amount; and
(ii) in the case of the last \1/3\, an
amount equal to 34 percent of a participating
State's allocated amount.
SEC. 3004. APPROVING STATES FOR PARTICIPATION.
(a) Application.--Any State may apply to the Secretary for approval
to be a participating State under the Program and to be eligible for an
allocation of Federal funds under the Program.
(b) General Approval Criteria.--The Secretary shall approve a State
to be a participating State, if--
(1) a specific department, agency, or political subdivision
of the State has been designated to implement a State program
and participate in the Program;
(2) all legal actions necessary to enable such designated
department, agency, or political subdivision to implement a
State program and participate in the Program have been
accomplished;
(3) the State has filed an application with the Secretary
for approval of a State capital access program under section
3005 or approval as a State other credit support program under
section 3006, in each case within the time period provided in
the respective section; and
(4) the State and the Secretary have executed an allocation
agreement that--
(A) conforms to the requirements of this title;
(B) ensures that the State program complies with
such national standards as are established by the
Secretary under section 3009(a)(2);
(C) sets forth internal control, compliance, and
reporting requirements as established by the Secretary,
and such other terms and conditions necessary to carry
out the purposes of this title, including an agreement
by the State to allow the Secretary to audit State
programs;
(D) requires that the State program be fully
positioned, within 90 days of the State's execution of
the allocation agreement with the Secretary, to act on
providing the kind of credit support that the State
program was established to provide; and
(E) includes an agreement by the State to deliver
to the Secretary, and update annually, a schedule
describing how the State intends to apportion among its
State programs the Federal funds allocated to the
State.
(c) Contractual Arrangements for Implementation of State
Programs.--A State may be approved to be a participating State, and be
eligible for an allocation of Federal funds under the Program, if the
State has contractual arrangements for the implementation and
administration of its State program with--
(1) an existing, approved State program administered by
another State; or
(2) an authorized agent of, or entity supervised by, the
State, including for-profit and not-for-profit entities.
(d) Special Permission.--
(1) Circumstances when a municipality may apply directly.--
If a State does not, within 60 days after the date of enactment
of this Act, file with the Secretary a notice of its intent to
apply for approval by the Secretary of a State program or
within 9 months after the date of enactment of this Act, file
with the Secretary a complete application for approval of a
State program, the Secretary may grant to municipalities of
that State a special permission that will allow them to apply
directly to the Secretary without the State for approval to be
participating municipalities.
(2) Timing requirements applicable to municipalities
applying directly.--To qualify for the special permission, a
municipality of a State shall be required, within 12 months
after the date of enactment of this Act, to file with the
Secretary a complete application for approval by the Secretary
of a State program.
(3) Notices of intent and applications from more than 1
municipality.--A municipality of a State may combine with 1 or
more other municipalities of that State to file a joint notice
of intent to file and a joint application.
(4) Approval criteria.--The general approval criteria in
paragraphs (2) and (4) shall apply.
(5) Allocation to municipalities.--
(A) If more than 3.--If more than 3 municipalities,
or combination of municipalities as provided in
paragraph (3), of a State apply for approval by the
Secretary to be participating municipalities under this
subsection, and the applications meet the approval
criteria in paragraph (4), the Secretary shall allocate
Federal funds to the 3 municipalities with the largest
populations.
(B) If 3 or fewer.--If 3 or fewer municipalities,
or combination of municipalities as provided in
paragraph (3), of a State apply for approval by the
Secretary to be participating municipalities under this
subsection, and the applications meet the approval
criteria in paragraph (4), the Secretary shall allocate
Federal funds to each applicant municipality or
combination of municipalities.
(6) Apportionment of allocated amount among participating
municipalities.--If the Secretary approves municipalities to be
participating municipalities under this subsection, the
Secretary shall apportion the full amount of the Federal funds
that are allocated to that State to municipalities that are
approved under this subsection in amounts proportionate to the
population of those municipalities, based on the most recent
available decennial census.
(7) Approving state programs for municipalities.--If the
Secretary approves municipalities to be participating
municipalities under this subsection, the Secretary shall take
into account the additional considerations in section 3006(d)
in making the determination under section 3005 or 3006 that the
State program or programs to be implemented by the
participating municipalities, including a State capital access
program, is eligible for Federal contributions to, or for the
account of, the State program.
SEC. 3005. APPROVING STATE CAPITAL ACCESS PROGRAMS.
(a) Application.--A participating State that establishes a new, or
has an existing, State capital access program that meets the
eligibility criteria in subsection (c) may apply to Secretary to have
the State capital access program approved as eligible for Federal
contributions to the reserve fund.
(b) Approval.--The Secretary shall approve such State capital
access program as eligible for Federal contributions to the reserve
fund if--
(1) within 60 days after the date of enactment of this Act,
the State has filed with the Secretary a notice of intent to
apply for approval by the Secretary of a State capital access
program;
(2) within 9 months after the date of enactment of this
Act, the State has filed with the Secretary a complete
application for approval by the Secretary of a capital access
program;
(3) the State satisfies the requirements of subsections (a)
and (b) of section 3004; and
(4) the State capital access program meets the eligibility
criteria in subsection (c).
(c) Eligibility Criteria for State Capital Access Programs.--For a
State capital access program to be approved under this section, that
program shall be required to be a program of the State that--
(1) provides portfolio insurance for business loans based
on a separate loan-loss reserve fund for each financial
institution;
(2) requires insurance premiums to be paid by the financial
institution lenders and by the business borrowers to the
reserve fund to have their loans enrolled in the reserve fund;
(3) provides for contributions to be made by the State to
the reserve fund in amounts at least equal to the sum of the
amount of the insurance premium charges paid by the borrower
and the financial institution to the reserve fund for any newly
enrolled loan; and
(4) provides its portfolio insurance solely for loans that
meet both the following requirements:
(A) The borrower has 500 employees or less at the
time that the loan is enrolled in the Program.
(B) The loan amount does not exceed $5,000,000.
(d) Federal Contributions to Approved State Capital Access
Programs.--A State capital access program approved under this section
will be eligible for receiving Federal contributions to the reserve
fund in an amount equal to the sum of the amount of the insurance
premium charges paid by the borrowers and by the financial institution
to the reserve fund for loans that meet the requirements in subsection
(c)(4). A participating State may use the Federal contribution to make
its contribution to the reserve fund of an approved State capital
access program.
(e) Minimum Program Requirements for State Capital Access
Programs.--The Secretary shall, by regulation or other guidance,
prescribe Program requirements that meet the following minimum
requirements:
(1) Experience and capacity.--The participating State shall
determine for each financial institution that participates in
the State capital access program, after consultation with the
appropriate Federal banking agency or, in the case of a
financial institution that is a nondepository community
development financial institution, the Community Development
Financial Institution Fund, that the financial institution has
sufficient commercial lending experience and financial and
managerial capacity to participate in the approved State
capital access program. The determination by the State shall
not be reviewable by the Secretary.
(2) Investment authority.--Subject to applicable State law,
the participating State may invest, or cause to be invested,
funds held in a reserve fund by establishing a deposit account
at the financial institution lender in the name of the
participating State. In the event that funds in the reserve
fund are not deposited in such an account, such funds shall be
invested in a form that the participating State determines is
safe and liquid.
(3) Loan terms and conditions to be determined by
agreement.--A loan to be filed for enrollment in an approved
State capital access program may be made with such interest
rate, fees, and other terms and conditions, and the loan may be
enrolled in the approved State capital access program and
claims may be filed and paid, as agreed upon by the financial
institution lender and the borrower, consistent with applicable
law.
(4) Lender capital at-risk.--A loan to be filed for
enrollment in the State capital access program shall require
the financial institution lender to have a meaningful amount of
its own capital resources at risk in the loan.
(5) Premium charges minimum and maximum amounts.--The
insurance premium charges payable to the reserve fund by the
borrower and the financial institution lender shall be
prescribed by the financial institution lender, within minimum
and maximum limits that require that the sum of the insurance
premium charges paid in connection with a loan by the borrower
and the financial institution lender may not be less than 2
percent nor more than 7 percent of the amount of the loan
enrolled in the approved State capital access program.
(6) State contributions.--In enrolling a loan in an
approved State capital access program, the participating State
may make a contribution to the reserve fund to supplement
Federal contributions made under this Program.
(7) Loan purpose.--
(A) Particular loan purpose requirements and
prohibitions.--In connection with the filing of a loan
for enrollment in an approved State capital access
program, the financial institution lender--
(i) shall obtain an assurance from each
borrower that--
(I) the proceeds of the loan will
be used for a business purpose;
(II) the loan will not be used to
finance such business activities as the
Secretary, by regulation, may proscribe
as prohibited loan purposes for
enrollment in an approved State capital
access program; and
(III) the borrower is not--
(aa) an executive officer,
director, or principal
shareholder of the financial
institution lender;
(bb) a member of the
immediate family of an
executive officer, director, or
principal shareholder of the
financial institution lender;
or
(cc) a related interest of
any such executive officer,
director, principal
shareholder, or member of the
immediate family;
(ii) shall provide assurances to the
participating State that the loan has not been
made in order to place under the protection of
the approved State capital access program prior
debt that is not covered under the approved
State capital access program and that is or was
owed by the borrower to the financial
institution lender or to an affiliate of the
financial institution lender;
(iii) shall not allow the enrollment of a
loan to a borrower that is a refinancing of a
loan previously made to that borrower by the
financial institution lender or an affiliate of
the financial institution lender; and
(iv) may include additional restrictions on
the eligibility of loans or borrowers that are
not inconsistent with the provisions and
purposes of this title, including compliance
with all applicable Federal and State laws,
regulations, ordinances, and Executive orders.
(B) Definitions.--In this paragraph, the terms
``executive officer'', ``director'', ``principal
shareholder'', ``immediate family'', and ``related
interest'' refer to the same relationship to a
financial institution lender as the relationship
described in part 215 of title 12 of the Code of
Federal Regulations, or any successor to such part.
(8) Capital access for small businesses in underserved
communities.--At the time that a State applies to the Secretary
to have the State capital access program approved as eligible
for Federal contributions, the State shall deliver to the
Secretary a report stating how the State plans to use the
Federal contributions to the reserve fund to provide access to
capital for small businesses in low- and moderate-income,
minority, and other underserved communities, including women-
and minority-owned small businesses.
SEC. 3006. APPROVING COLLATERAL SUPPORT AND OTHER INNOVATIVE CREDIT
ACCESS AND GUARANTEE INITIATIVES FOR SMALL BUSINESSES AND
MANUFACTURERS.
(a) Application.--A participating State that establishes a new, or
has an existing, credit support program that meets the eligibility
criteria in subsection (c) may apply to the Secretary to have the State
other credit support program approved as eligible for Federal
contributions to, or for the account of, the State program.
(b) Approval.--The Secretary shall approve such State other credit
support program as eligible for Federal contributions to, or for the
account of, the program if--
(1) the Secretary determines that the State satisfies the
requirements of paragraphs (1) through (3) of section 3005(b);
(2) the Secretary determines that the State other credit
support program meets the eligibility criteria in subsection
(c);
(3) the Secretary determines the State other credit support
program to be eligible based on the additional considerations
in subsection (d); and
(4) within 9 months after the date of enactment of this
Act, the State has filed with Treasury a complete application
for Treasury approval.
(c) Eligibility Criteria for State Other Credit Support Programs.--
For a State other credit support program to be approved under this
section, that program shall be required to be a program of the State
that--
(1) can demonstrate that, at a minimum, $1 of public
investment by the State program will cause and result in $1 of
new private credit;
(2) can demonstrate a reasonable expectation that, when
considered with all other State programs of the State, such
State programs together have the ability to use amounts of new
Federal contributions to, or for the account of, all such
programs in the State to cause and result in amounts of new
small business lending at least 10 times the new Federal
contribution amount;
(3) for those State other credit support programs that
provide their credit support through 1 or more financial
institution lenders, requires the financial institution lenders
to have a meaningful amount of their own capital resources at
risk in their small business lending; and
(4) uses Federal funds allocated under this title to extend
credit support that--
(A) targets an average borrower size of 500
employees or less;
(B) does not extend credit support to borrowers
that have more than 750 employees;
(C) targets support towards loans with an average
principal amount of $5,000,000 or less; and
(D) does not extend credit support to loans that
exceed a principal amount of $20,000,000.
(d) Additional Considerations.--In making a determination that a
State other credit support program is eligible for Federal
contributions to, or for the account of, the State program, the
Secretary shall take into account the following additional
considerations:
(1) The anticipated benefits to the State, its businesses,
and its residents to be derived from the Federal contributions
to, or for the account of, the approved State other credit
support program, including the extent to which resulting small
business lending will expand economic opportunities.
(2) The operational capacity, skills, and experience of the
management team of the State other credit support program.
(3) The capacity of the State other credit support program
to manage increases in the volume of its small business
lending.
(4) The internal accounting and administrative controls
systems of the State other credit support program, and the
extent to which they can provide reasonable assurance that
funds of the State program are safeguarded against waste, loss,
unauthorized use, or misappropriation.
(5) The soundness of the program design and implementation
plan of the State other credit support program.
(e) Federal Contributions to Approved State Other Credit Support
Programs.--A State other credit support program approved under this
section will be eligible for receiving Federal contributions to, or for
the account of, the State program in an amount consistent with the
schedule describing the apportionment of allocated Federal funds among
State programs delivered by the State to the Secretary under the
allocation agreement.
(f) Minimum Program Requirements for State Other Credit Support
Programs.--
(1) Fund to prescribe.--The Secretary shall, by regulation
or other guidance, prescribe Program requirements for approved
State other credit support programs.
(2) Considerations for fund.--In prescribing minimum
Program requirements for approved State other credit support
programs, the Secretary shall take into consideration, to the
extent the Secretary determines applicable and appropriate, the
minimum Program requirements for approved State capital access
programs in section 3005(e).
SEC. 3007. REPORTS.
(a) Quarterly Use-of-funds Report.--
(1) In general.--Not later than 30 days after the beginning
of each calendar quarter, beginning after the first full
calendar quarter to occur after the date the Secretary approves
a State for participation, the participating State shall submit
to the Secretary a report on the use of Federal funding by the
participating State during the previous calendar quarter.
(2) Report contents.--Each report under this subsection
shall--
(A) indicate the total amount of Federal funding
used by the participating State; and
(B) include a certification by the participating
State that--
(i) the information provided in accordance
with subparagraph (A) is accurate;
(ii) funds continue to be available and
legally committed to contributions by the State
to, or for the account of, approved State
programs, less any amount that has been
contributed by the State to, or for the account
of, approved State programs subsequent to the
State being approved for participation in the
Program; and
(iii) the participating State is
implementing its approved State program or
programs in accordance with this title and
regulations issued under section 3010.
(b) Annual Report.--Not later than March 31 of each year, beginning
March 31, 2011, each participating State shall submit to the Secretary
an annual report that shall include the following information:
(1) The number of borrowers that received new loans
originated under the approved State program or programs after
the State program was approved as eligible for Federal
contributions.
(2) The total amount of such new loans.
(3) Breakdowns by industry type, loan size, annual sales,
and number of employees of the borrowers that received such new
loans.
(4) The zip code of each borrower that received such a new
loan.
(5) Such other data as the Secretary, in the Secretary's
sole discretion, may require to carry out the purposes of the
Program.
(c) Form.--The reports and data filed under subsections (a) and (b)
shall be in such form as the Secretary, in the Secretary's sole
discretion, may require.
(d) Termination of Reporting Requirements.--The requirement to
submit reports under subsections (a) and (b) shall terminate for a
participating State with the submission of the completed reports due on
the first March 31 to occur after 5 complete 12-month periods after the
State is approved by the Secretary to be a participating State.
SEC. 3008. REMEDIES FOR STATE PROGRAM TERMINATION OR FAILURES.
(a) Remedies.--
(1) In general.--If any of the events listed in paragraph
(2) occur, the Secretary, in the Secretary's discretion, may--
(A) reduce the amount of Federal funds allocated to
the State under the Program; or
(B) terminate any further transfers of allocated
amounts that have not yet been transferred to the
State.
(2) Causal events.--The events referred to in paragraph (1)
are--
(A) termination by a participating State of its
participation in the Program;
(B) failure on the part of a participating State to
submit complete reports under section 3007 on a timely
basis; or
(C) noncompliance by the State with the terms of
the allocation agreement between the Secretary and the
State.
(b) Deallocated Amounts To Be Reallocated.--If, after 13 months,
any portion of the amount of Federal funds allocated to a participating
State is deemed by the Secretary to be no longer allocated to the State
after actions taken by the Secretary under subsection (a)(1), the
Secretary shall reallocate that portion among the participating States,
excluding the State whose allocated funds were deemed to be no longer
allocated, as provided in section 3003(b).
SEC. 3009. IMPLEMENTATION AND ADMINISTRATION.
(a) General Authorities and Duties.--The Secretary shall--
(1) consult with the Administrator of the Small Business
Administration and the appropriate Federal banking agencies on
the administration of the Program;
(2) establish minimum national standards for approved State
programs;
(3) provide technical assistance to States for starting
State programs and generally disseminate best practices;
(4) manage, administer, and perform necessary program
integrity functions for the Program; and
(5) ensure adequate oversight of the approved State
programs, including oversight of the cash flows, performance,
and compliance of each approved State program.
(b) Appropriations.--There is hereby appropriated to the Secretary,
out of funds in the Treasury not otherwise appropriated, $1,500,000,000
to carry out the Program, including to pay reasonable costs of
administering the Program.
(c) Termination of Secretary's Program Administration Functions.--
The authorities and duties of the Secretary to implement and administer
the Program shall terminate at the end of the 7-year period beginning
on the date of enactment of this Act.
(d) Expedited Contracting.--During the 1-year period beginning on
the date of enactment of this Act, the Secretary may enter into
contracts without regard to any other provision of law regarding public
contracts, for purposes of carrying out this title.
SEC. 3010. REGULATIONS.
The Secretary, in consultation with the Administrator of the Small
Business Administration, shall issue such regulations and other
guidance as the Secretary determines necessary or appropriate to
implement this title including to define terms, to establish compliance
and reporting requirements, and such other terms and conditions
necessary to carry out the purposes of this title.
SEC. 3011. OVERSIGHT AND AUDITS.
(a) Inspector General Oversight.--The Inspector General of the
Department of the Treasury shall conduct, supervise, and coordinate
audits and investigations of the use of funds made available under the
Program.
(b) GAO Audit.--The Comptroller General of the United States shall
perform an annual audit of the Program and issue a report to the
appropriate committees of Congress containing the results of such
audit.
(c) Required Certification.--
(1) Financial institutions certification.--With respect to
funds received by a participating State under the Program, any
financial institution that receives a loan, a loan guarantee,
or other financial assistance using such funds after the date
of the enactment of this Act shall certify that such
institution is in compliance with the requirements of section
103.121 of title 31, Code of Federal Regulations, a regulation
that, at a minimum, requires financial institutions, as that
term is defined in section 5312 (a)(2) and (c)(1)(A) of title
31, United States Code, to implement reasonable procedures to
verify the identity of any person seeking to open an account,
to the extent reasonable and practicable, maintain records of
the information used to verify the person's identity, and
determine whether the person appears on any lists of known or
suspected terrorists or terrorist organizations provided to the
financial institution by any government agency.
(2) Sex offense certification.--With respect to funds
received by a participating State under the Program, any
private entity that receives a loan, a loan guarantee, or other
financial assistance using such funds after the date of the
enactment of this Act shall certify to the participating State
that the principals of such entity have not been convicted of a
sex offense against a minor (as such terms are defined in
section 111 of the Sex Offender Registration and Notification
Act (42 U.S.C. 16911)).
(d) Prohibition on Pornography.--None of the funds made available
under this title may be used to pay the salary of any individual
engaged in activities related to the Program who has been officially
disciplined for violations of subpart G of the Standards of Ethical
Conduct for Employees of the Executive Branch for viewing, downloading,
or exchanging pornography, including child pornography, on a Federal
Government computer or while performing official Federal Government
duties.
TITLE IV--ADDITIONAL SMALL BUSINESS PROVISIONS
Subtitle A--Small Business Lending Fund
SEC. 4101. PURPOSE.
The purpose of this subtitle is to address the ongoing effects of
the financial crisis on small businesses by providing temporary
authority to the Secretary of the Treasury to make capital investments
in eligible institutions in order to increase the availability of
credit for small businesses.
SEC. 4102. DEFINITIONS.
For purposes of this subtitle:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Small Business and
Entrepreneurship, the Committee on Agriculture,
Nutrition, and Forestry, the Committee on Banking,
Housing, and Urban Affairs, the Committee on Finance,
the Committee on the Budget, and the Committee on
Appropriations of the Senate; and
(B) the Committee on Small Business, the Committee
on Agriculture, the Committee on Financial Services,
the Committee on Ways and Means, the Committee on the
Budget, and the Committee on Appropriations of the
House of Representatives.
(2) Appropriate federal banking agency.--The term
``appropriate Federal banking agency'' has the meaning given
such term under section 3(q) of the Federal Deposit Insurance
Act (12 U.S.C. 1813(q)).
(3) Bank holding company.--The term ``bank holding
company'' has the meaning given such term under section 2(a)(1)
of the Bank Holding Company Act of 1956 (12 U.S.C.
1841(2)(a)(1)).
(4) Call report.--The term ``call report'' means--
(A) reports of Condition and Income submitted to
the Office of the Comptroller of the Currency, the
Board of Governors of the Federal Reserve System, and
the Federal Deposit Insurance Corporation;
(B) the Office of Thrift Supervision Thrift
Financial Report;
(C) any report that is designated by the Office of
the Comptroller of the Currency, the Board of Governors
of the Federal Reserve System, the Federal Deposit
Insurance Corporation, or the Office of Thrift
Supervision, as applicable, as a successor to any
report referred to in subparagraph (A) or (B);
(D) reports of Condition and Income as designated
through guidance developed by the Secretary, in
consultation with the Director of the Community
Development Financial Institutions Fund; and
(E) with respect to an eligible institution for
which no report exists that is described under
subparagraph (A), (B), (C), or (D), such other report
or set of information as the Secretary, in consultation
with the Administrator of the Small Business
Administration, may prescribe.
(5) CDCI.--The term ``CDCI'' means the Community
Development Capital Initiative created by the Secretary under
the Troubled Asset Relief Program established by the Emergency
Economic Stabilization Act of 2008.
(6) CDCI investment.--The term ``CDCI investment'' means,
with respect to any eligible institution, the principal amount
of any investment made by the Secretary in such eligible
institution under the CDCI that has not been repaid.
(7) CDFI; community development financial institution.--The
terms ``CDFI'' and ``community development financial
institution'' have the meaning given the term ``community
development financial institution'' under the Riegle Community
Development and Regulatory Improvement Act of 1994.
(8) CDLF; community development loan fund.--The terms
``CDLF'' and ``community development loan fund'' mean any
entity that--
(A) is certified by the Department of the Treasury
as a community development financial institution loan
fund;
(B) is exempt from taxation under the Internal
Revenue Code of 1986; and
(C) had assets less than or equal to
$10,000,000,000 as of the end of the fourth quarter of
calendar year 2009.
(9) CPP.--The term ``CPP'' means the Capital Purchase
Program created by the Secretary under the Troubled Asset
Relief Program established by the Emergency Economic
Stabilization Act of 2008.
(10) CPP investment.--The term ``CPP investment'' means,
with respect to any eligible institution, the principal amount
of any investment made by the Secretary in such eligible
institution under the CPP that has not been repaid.
(11) Eligible institution.--The term ``eligible
institution'' means--
(A) any insured depository institution, which--
(i) is not controlled by a bank holding
company or savings and loan holding company
that is also an eligible institution;
(ii) has total assets of equal to or less
than $10,000,000,000, as reported in the call
report of the insured depository institution as
of the end of the fourth quarter of calendar
year 2009; and
(iii) is not directly or indirectly
controlled by any company or other entity that
has total consolidated assets of more than
$10,000,000,000, as so reported;
(B) any bank holding company which has total
consolidated assets of equal to or less than
$10,000,000,000, as reported in the call report of the
bank holding company as of the end of the fourth
quarter of calendar year 2009;
(C) any savings and loan holding company which has
total consolidated assets of equal to or less than
$10,000,000,000, as reported in the call report of the
savings and loan holding company as of the end of the
fourth quarter of calendar year 2009; and
(D) any community development financial institution
loan fund which has total assets of equal to or less
than $10,000,000,000, as reported in audited financial
statements for the fiscal year of the community
development financial institution loan fund that ends
in calendar year 2009.
(12) Fund.--The term ``Fund'' means the Small Business
Lending Fund established under section 4103(a)(1).
(13) Insured depository institution.--The term ``insured
depository institution'' has the meaning given such term under
section 3(c)(2) of the Federal Deposit Insurance Act (12 U.S.C.
1813(c)(2)).
(14) Minority-owned and women-owned business.--The terms
``minority-owned business'' and ``women-owned business'' shall
have the meaning given the terms ``minority-owned business''
and ``women's business'', respectively, under section 21A(r)(4)
of the Federal Home Loan Bank Act (12 U.S.C. 1441A(r)(4)).
(15) Program.--The term ``Program'' means the Small
Business Lending Fund Program authorized under section
4103(a)(2).
(16) Savings and loan holding company.--The term ``savings
and loan holding company'' has the meaning given such term
under section 10(a)(1)(D) of the Home Owners' Loan Act (12
U.S.C. 1467a(a)(1)(D)).
(17) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(18) Small business lending.--
(A) In general.--The term ``small business
lending'' means lending, as defined by and reported in
an eligible institutions' quarterly call report, where
each loan comprising such lending is one of the
following types:
(i) Commercial and industrial loans.
(ii) Owner-occupied nonfarm, nonresidential
real estate loans.
(iii) Loans to finance agricultural
production and other loans to farmers.
(iv) Loans secured by farmland.
(B) Exclusion.--No loan that has an original amount
greater than $10,000,000 or that goes to a business
with more than $50,000,000 in revenues shall be
included in the measure.
(C) Treatment of holding companies.--In the case of
eligible institutions that are bank holding companies
or savings and loan holding companies having one or
more insured depository institution subsidiaries, small
business lending shall be measured based on the
combined small business lending reported in the call
report of the insured depository institution
subsidiaries.
(19) Veteran-owned business.--
(A) The term ``veteran-owned business'' means a
business--
(i) more than 50 percent of the ownership
or control of which is held by 1 or more
veterans;
(ii) more than 50 percent of the net profit
or loss of which accrues to 1 or more veterans;
and
(iii) a significant percentage of senior
management positions of which are held by
veterans.
(B) For purposes of this paragraph, the term
``veteran'' has the meaning given such term in section
101(2) of title 38, United States Code.
SEC. 4103. SMALL BUSINESS LENDING FUND.
(a) Fund and Program.--
(1) Fund established.--There is established in the Treasury
of the United States a fund to be known as the ``Small Business
Lending Fund'', which shall be administered by the Secretary.
(2) Programs authorized.--The Secretary is authorized to
establish the Small Business Lending Fund Program for using the
Fund consistent with this subtitle.
(b) Use of Fund.--
(1) In general.--Subject to paragraph (2), the Fund shall
be available to the Secretary, without further appropriation or
fiscal year limitation, for the costs of purchases (including
commitments to purchase), and modifications of such purchases,
of preferred stock and other financial instruments from
eligible institutions on such terms and conditions as are
determined by the Secretary in accordance with this subtitle.
For purposes of this paragraph and with respect to an eligible
institution, the term ``other financial instruments'' shall
include only debt instruments for which such eligible
institution is fully liable or equity equivalent capital of the
eligible institution. Such debt instruments may be subordinated
to the claims of other creditors of the eligible institution.
(2) Maximum purchase limit.--The aggregate amount of
purchases (and commitments to purchase) made pursuant to
paragraph (1) may not exceed $30,000,000,000.
(3) Proceeds used to pay down public debt.--All funds
received by the Secretary in connection with purchases made
pursuant to paragraph (1), including interest payments,
dividend payments, and proceeds from the sale of any financial
instrument, shall be paid into the general fund of the Treasury
for reduction of the public debt.
(4) Limitation on purchases from cdlfs.--
(A) In general.--Not more than 1 percent of the
maximum purchase limit of the Program, pursuant to
paragraph (2), may be used to make purchases from
community development loan funds.
(B) Eligibility standards.--The Secretary, in
consultation with the Community Development Financial
Institutions Fund, shall develop eligibility criteria
to determine the financial ability of a CDLF to
participate in the Program and repay the investment.
Such criteria shall include the following:
(i) Ratio of net assets to total assets is
at least 20 percent.
(ii) Ratio of loan loss reserves to loans
and leases 90 days or more delinquent
(including loans sold with full recourse) is at
least 30 percent.
(iii) Positive net income measured on a 3-
year rolling average.
(iv) Operating liquidity ratio of at least
1.0 for the 4 most recent quarters and for one
or both of the two preceding years.
(v) Ratio of loans and leases 90 days or
more delinquent (including loans sold with full
recourse) to total equity plus loan loss
reserves is less than 40 percent.
(C) Requirement to submit audited financial
statements.--CDLFs participating in the Program shall
submit audited financial statements to the Secretary,
have a clean audit opinion, and have at least 3 years
of operating experience.
(c) Credits to the Fund.--There shall be credited to the Fund
amounts made available pursuant to section 4108, to the extent provided
by appropriations Acts.
(d) Terms.--
(1) Application.--
(A) Institutions with assets of $1,000,000,000 or
less.--Eligible institutions having total assets equal
to or less than $1,000,000,000, as reported in a call
report as of the end of the fourth quarter of calendar
year 2009, may apply to receive a capital investment
from the Fund in an amount not exceeding 5 percent of
risk-weighted assets, as reported in the call report
immediately preceding the date of application, less the
amount of any CDCI investment and any CPP investment.
(B) Institutions with assets of more than
$1,000,000,000 and less than or equal to
$10,000,000,000.--Eligible institutions having total
assets of more than $1,000,000,000 but less than
$10,000,000,000, as of the end of the fourth quarter of
calendar year 2009, may apply to receive a capital
investment from the Fund in an amount not exceeding 3
percent of risk-weighted assets, as reported in the
call report immediately preceding the date of
application, less the amount of any CDCI investment and
any CPP investment.
(C) Treatment of holding companies.--In the case of
an eligible institution that is a bank holding company
or a savings and loan holding company having one or
more insured depository institution subsidiaries, total
assets shall be measured based on the combined total
assets reported in the call report of the insured
depository institution subsidiaries as of the end of
the fourth quarter of calendar year 2009 and risk-
weighted assets shall be measured based on the combined
risk-weighted assets of the insured depository
institution subsidiaries as reported in the call report
immediately preceding the date of application.
(D) Treatment of applicants that are institutions
controlled by holding companies.--If an eligible
institution that applies to receive a capital
investment under the Program is under the control of a
bank holding company or a savings and loan holding
company, then the Secretary may use the Fund to
purchase preferred stock or other financial instruments
from the top-tier bank holding company or savings and
loan holding company of such eligible institution, as
applicable. For purposes of this subparagraph, the term
``control'' with respect to a bank holding company
shall have the same meaning as in section 2(a)(2) of
the Bank Holding Company Act of 1956 (12 U.S.C.
1841(2)(a)(2)). For purposes of this subparagraph, the
term ``control'' with respect to a savings and loan
holding company shall have the same meaning as in
10(a)(2) of the Home Owners' Loan Act (12 U.S.C.
1467a(a)(2)).
(E) Requirement to provide a small business lending
plan.--At the time that an applicant submits an
application to the Secretary for a capital investment
under the Program, the applicant shall deliver to the
appropriate Federal banking agency, and, for applicants
that are State-chartered banks, to the appropriate
State banking regulator, a small business lending plan
describing how the applicant's business strategy and
operating goals will allow it to address the needs of
small businesses in the areas it serves, as well as a
plan to provide linguistically and culturally
appropriate outreach, where appropriate. In the case of
eligible institutions that are community development
loan funds, this plan shall be submitted to the
Secretary. This plan shall be confidential supervisory
information.
(F) Treatment of applicants that are community
development loan funds.--Eligible institutions that are
community development loan funds may apply to receive a
capital investment from the Fund in an amount not
exceeding 5 percent of total assets, as reported in the
audited financial statements for the fiscal year of the
eligible institution that ends in calendar year 2009.
(2) Consultation with regulators.--For each eligible
institution that applies to receive a capital investment under
the Program, the Secretary shall--
(A) consult with the appropriate Federal banking
agency or, in the case of an eligible institution that
is a nondepository community development financial
institution, the Community Development Financial
Institution Fund, for the eligible institution, to
determine whether the eligible institution may receive
such capital investment;
(B) in the case of an eligible institution that is
a State-chartered bank, consider any views received
from the State banking regulator of the State of the
eligible institution regarding the financial condition
of the eligible institution; and
(C) in the case of a community development
financial institution loan fund, consult with the
Community Development Financial Institution Fund.
(3) Consideration of matched private investments.--
(A) In general.--For an eligible institution that
applies to receive a capital investment under the
Program, if the entity to be consulted under paragraph
(2) would not otherwise recommend the eligible
institution to receive the capital investment, the
Secretary, in consultation with the entity to be so
consulted, may consider whether the entity to be
consulted would recommend the eligible institution to
receive a capital investment based on the financial
condition of the institution if the conditions in
subparagraph (B) are satisfied.
(B) Conditions.--The conditions referred to in
subparagraph (A) are as follows:
(i) Capital sources.--The eligible
institution shall receive capital both under
the Program and from private, nongovernment
investors.
(ii) Amount of capital.--The amount of
capital to be received under the Program shall
not exceed 3 percent of risk-weighted assets,
as reported in the call report immediately
preceding the date of application, less the
amount of any CDCI investment and any CPP
investment.
(iii) Terms.--The amount of capital to be
received from private, nongovernment investors
shall be--
(I) equal to or greater than 100
percent of the capital to be received
under the Program; and
(II) subordinate to the capital
investment made by the Secretary under
the Program.
(4) Ineligibility of institutions on fdic problem bank
list.--
(A) In general.--An eligible institution may not
receive any capital investment under the Program, if--
(i) such institution is on the FDIC problem
bank list; or
(ii) such institution has been removed from
the FDIC problem bank list for less than 90
days.
(B) Construction.--Nothing in subparagraph (A)
shall be construed as limiting the discretion of the
Secretary to deny the application of an eligible
institution that is not on the FDIC problem bank list.
(C) FDIC problem bank list defined.--For purposes
of this paragraph, the term ``FDIC problem bank list''
means the list of depository institutions having a
current rating of 4 or 5 under the Uniform Financial
Institutions Rating System, or such other list
designated by the Federal Deposit Insurance
Corporation.
(5) Incentives to lend.--
(A) Requirements on preferred stock and other
financial instruments.--Any preferred stock or other
financial instrument issued to Treasury by an eligible
institution receiving a capital investment under the
Program shall provide that--
(i) the rate at which dividends or interest
are payable shall be 5 percent per annum
initially;
(ii) within the first 2 years after the
date of the capital investment under the
Program, the rate may be adjusted based on the
amount of an eligible institution's small
business lending. Changes in the amount of
small business lending shall be measured
against the average amount of small business
lending reported by the eligible institution in
its call reports for the 4 full quarters
immediately preceding the date of enactment of
this Act, minus adjustments from each quarterly
balance in respect of--
(I) net loan charge offs with
respect to small business lending; and
(II) gains realized by the eligible
institution resulting from mergers,
acquisitions or purchases of loans
after origination and syndication;
which adjustments shall be determined
in accordance with guidance promulgated
by the Secretary; and
(iii) during any calendar quarter during
the initial 2-year period referred to in clause
(ii), an institution's rate shall be adjusted
to reflect the following schedule, based on
that institution's change in the amount of
small business lending relative to the
baseline--
(I) if the amount of small business
lending has increased by less than 2.5
percent, the dividend or interest rate
shall be 5 percent;
(II) if the amount of small
business lending has increased by 2.5
percent or greater, but by less than
5.0 percent, the dividend or interest
rate shall be 4 percent;
(III) if the amount of small
business lending has increased by 5.0
percent or greater, but by less than
7.5 percent, the dividend or interest
rate shall be 3 percent;
(IV) if the amount of small
business lending has increased by 7.5
percent or greater, and but by less
than 10.0 percent, the dividend or
interest rate shall be 2 percent; or
(V) if the amount of small business
lending has increased by 10 percent or
greater, the dividend or interest rate
shall be 1 percent.
(B) Basis of initial rate.--The initial dividend or
interest rate shall be based on call report data
published in the quarter immediately preceding the date
of the capital investment under the Program.
(C) Timing of rate adjustments.--Any rate
adjustment shall occur in the calendar quarter
following the publication of call report data, such
that the rate based on call report data from any one
calendar quarter, which is published in the first
following calendar quarter, shall be adjusted in that
first following calendar quarter and payable in the
second following quarter.
(D) Rate following initial 2-year period.--
Generally, the rate based on call report data from the
eighth calendar quarter after the date of the capital
investment under the Program shall be payable until the
expiration of the 4\1/2\-year period that begins on the
date of the investment. In the case where the amount of
small business lending has remained the same or
decreased relative to the institution's baseline in the
eighth quarter after the date of the capital investment
under the Program, the rate shall be 7 percent until
the expiration of the 4\1/2\-year period that begins on
the date of the investment.
(E) Rate following initial 4\1/2\ -year period.--
The dividend or interest rate paid on any preferred
stock or other financial instrument issued by an
eligible institution that receives a capital investment
under the Program shall increase to 9 percent at the
end of the 4\1/2\-year period that begins on the date
of the capital investment under the Program.
(F) Limitation on rate reductions with respect to
certain amount.--The reduction in the dividend or
interest rate payable to Treasury by any eligible
institution shall be limited such that the rate
reduction shall not apply to a dollar amount of the
investment made by Treasury that is greater than the
dollar amount increase in the amount of small business
lending realized under this program. The Secretary may
issue guidelines that will apply to new capital
investments limiting the amount of capital available to
eligible institutions consistent with this limitation.
(G) Rate adjustments for s corporation.--Before
making a capital investment in an eligible institution
that is an S corporation or a corporation organized on
a mutual basis, the Secretary may adjust the dividend
or interest rate on the financial instrument to be
issued to the Secretary, from the dividend or interest
rate that would apply under subparagraphs (A) through
(F), to take into account any differential tax
treatment of securities issued by such eligible
institution. For purpose of this subparagraph, the term
``S corporation'' has the same meaning as in section
1361(a) of the Internal Revenue Code of 1986.
(H) Repayment deadline.--The capital investment
received by an eligible institution under the Program
shall be evidenced by preferred stock or other
financial instrument that--
(i) includes, as a term and condition, that
the capital investment will--
(I) be repaid not later than the
end of the 10-year period beginning on
the date of the capital investment
under the Program; or
(II) at the end of such 10-year
period, be subject to such additional
terms as the Secretary shall prescribe,
which shall include a requirement that
the stock or instrument shall carry the
highest dividend or interest rate
payable; and
(ii) provides that the term and condition
described under clause (i) shall not apply if
the application of that term and condition
would adversely affect the capital treatment of
the stock or financial instrument under current
or successor applicable capital provisions
compared to a capital instrument with identical
terms other than the term and condition
described under clause (i).
(I) Requirements on financial instruments issued by
a community development financial institution loan
fund.--Any equity equivalent capital issued to the
Treasury by a community development loan fund receiving
a capital investment under the Program shall provide
that the rate at which interest is payable shall be 2
percent per annum for 8 years. After 8 years, the rate
at which interest is payable shall be 9 percent.
(6) Additional incentives to repay.--The Secretary may, by
regulation or guidance issued under section 4104(9), establish
repayment incentives in addition to the incentive in paragraph
(5)(E) that will apply to new capital investments in a manner
that the Secretary determines to be consistent with the
purposes of this subtitle.
(7) Capital purchase program refinance.--
(A) In general.--The Secretary shall, in a manner
that the Secretary determines to be consistent with the
purposes of this subtitle, issue regulations and other
guidance to permit eligible institutions to refinance
securities issued to Treasury under the CDCI and the
CPP for securities to be issued under the Program.
(B) Prohibition on participation by non-paying cpp
participants.--Subparagraph (A) shall not apply to any
eligible institution that has missed more than one
dividend payment due under the CPP. For purposes of
this subparagraph, a CPP dividend payment that is
submitted within 60 days of the due date of such
payment shall not be considered a missed dividend
payment.
(8) Outreach to minorities, women, and veterans.--The
Secretary shall require eligible institutions receiving capital
investments under the Program to provide linguistically and
culturally appropriate outreach and advertising in the
applicant pool describing the availability and application
process of receiving loans from the eligible institution that
are made possible by the Program through the use of print,
radio, television or electronic media outlets which target
organizations, trade associations, and individuals that--
(A) represent or work within or are members of
minority communities;
(B) represent or work with or are women; and
(C) represent or work with or are veterans.
(9) Additional terms.--The Secretary may, by regulation or
guidance issued under section 4104(9), make modifications that
will apply to new capital investments in order to manage risks
associated with the administration of the Fund in a manner
consistent with the purposes of this subtitle.
(10) Minimum underwriting standards.--The appropriate
Federal banking agency for an eligible institution that
receives funds under the Program shall within 60 days issue
guidance regarding prudent underwriting standards that must be
used for loans made by the eligible institution using such
funds.
SEC. 4104. ADDITIONAL AUTHORITIES OF THE SECRETARY.
The Secretary may take such actions as the Secretary deems
necessary to carry out the authorities in this subtitle, including,
without limitation, the following:
(1) The Secretary may use the services of any agency or
instrumentality of the United States or component thereof on a
reimbursable basis, and any such agency or instrumentality or
component thereof is authorized to provide services as
requested by the Secretary using all authorities vested in or
delegated to that agency, instrumentality, or component.
(2) The Secretary may enter into contracts, including
contracts for services authorized by section 3109 of title 5,
United States Code.
(3) The Secretary may designate any bank, savings
association, trust company, security broker or dealer, asset
manager, or investment adviser as a financial agent of the
Federal Government and such institution shall perform all such
reasonable duties related to this subtitle as financial agent
of the Federal Government as may be required. The Secretary
shall have authority to amend existing agreements with
financial agents, entered into during the 2-year period before
the date of enactment of this Act, to perform reasonable duties
related to this subtitle.
(4) The Secretary may exercise any rights received in
connection with any preferred stock or other financial
instruments or assets purchased or acquired pursuant to the
authorities granted under this subtitle.
(5) Subject to section 4103(b)(3), the Secretary may manage
any assets purchased under this subtitle, including revenues
and portfolio risks therefrom.
(6) The Secretary may sell, dispose of, transfer, exchange
or enter into securities loans, repurchase transactions, or
other financial transactions in regard to, any preferred stock
or other financial instrument or asset purchased or acquired
under this subtitle, upon terms and conditions and at a price
determined by the Secretary.
(7) The Secretary may manage or prohibit conflicts of
interest that may arise in connection with the administration
and execution of the authorities provided under this subtitle.
(8) The Secretary may establish and use vehicles, subject
to supervision by the Secretary, to purchase, hold, and sell
preferred stock or other financial instruments and issue
obligations.
(9) The Secretary may, in consultation with the
Administrator of the Small Business Administration, issue such
regulations and other guidance as may be necessary or
appropriate to define terms or carry out the authorities or
purposes of this subtitle.
SEC. 4105. CONSIDERATIONS.
In exercising the authorities granted in this subtitle, the
Secretary shall take into consideration--
(1) increasing the availability of credit for small
businesses;
(2) providing funding to minority-owned eligible
institutions and other eligible institutions that serve small
businesses that are minority-, veteran-, and women-owned and
that also serve low- and moderate-income, minority, and other
underserved or rural communities;
(3) protecting and increasing American jobs;
(4) increasing the opportunity for small business
development in areas with high unemployment rates that exceed
the national average;
(5) ensuring that all eligible institutions may apply to
participate in the program established under this subtitle,
without discrimination based on geography;
(6) providing transparency with respect to use of funds
provided under this subtitle;
(7) minimizing the cost to taxpayers of exercising the
authorities;
(8) promoting and engaging in financial education to would-
be borrowers; and
(9) providing funding to eligible institutions that serve
small businesses directly affected by the discharge of oil
arising from the explosion on and sinking of the mobile
offshore drilling unit Deepwater Horizon and small businesses
in communities that have suffered negative economic effects as
a result of that discharge with particular consideration to
States along the coast of the Gulf of Mexico.
SEC. 4106. REPORTS.
The Secretary shall provide to the appropriate committees of
Congress--
(1) within 7 days of the end of each month commencing with
the first month in which transactions are made under the
Program, a written report describing all of the transactions
made during the reporting period pursuant to the authorities
granted under this subtitle;
(2) after the end of March and the end of September,
commencing September 30, 2010, a written report on all
projected costs and liabilities, all operating expenses,
including compensation for financial agents, and all
transactions made by the Fund, which shall include
participating institutions and amounts each institution has
received under the Program; and
(3) within 7 days of the end of each calendar quarter
commencing with the first calendar quarter in which
transactions are made under the Program, a written report
detailing how eligible institutions participating in the
Program have used the funds such institutions received under
the Program.
SEC. 4107. OVERSIGHT AND AUDITS.
(a) Inspector General Oversight.--The Inspector General of the
Department of the Treasury shall conduct, supervise, and coordinate
audits and investigations of the Program through the Office of Small
Business Lending Fund Program Oversight established under subsection
(b).
(b) Office of Small Business Lending Fund Program Oversight.--
(1) Establishment.--There is hereby established within the
Office of the Inspector General of the Department of the
Treasury a new office to be named the ``Office of Small
Business Lending Fund Program Oversight'' to provide oversight
of the Program.
(2) Leadership.--The Inspector General shall appoint a
Special Deputy Inspector General for SBLF Program Oversight to
lead the Office, with commensurate staff, who shall report
directly to the Inspector General and who shall be responsible
for the performance of all auditing and investigative
activities relating to the Program.
(3) Reporting.--
(A) In general.--The Inspector General shall issue
a report no less than two times a year to the Congress
and the Secretary devoted to the oversight provided by
the Office, including any recommendations for
improvements to the Program.
(B) Recommendations.--With respect to any
deficiencies identified in a report under subparagraph
(A), the Secretary shall either--
(i) take actions to address such
deficiencies; or
(ii) certify to the appropriate committees
of Congress that no action is necessary or
appropriate.
(4) Coordination.--The Inspector General, in maximizing the
effectiveness of the Office, shall work with other Offices of
Inspector General, as appropriate, to minimize duplication of
effort and ensure comprehensive oversight of the Program.
(5) Termination.--The Office shall terminate at the end of
the 6-month period beginning on the date on which all capital
investments are repaid under the Program or the date on which
the Secretary determines that any remaining capital investments
will not be repaid.
(6) Definitions.--For purposes of this subsection:
(A) Office.--The term ``Office'' means the Office
of Small Business Lending Fund Program Oversight
established under paragraph (1).
(B) Inspector general.--The term ``Inspector
General'' means the Inspector General of the Department
of the Treasury.
(c) GAO Audit.--The Comptroller General of the United States shall
perform an annual audit of the Program and issue a report to the
appropriate committees of Congress containing the results of such
audit.
(d) Required Certifications.--
(1) Eligible institution certification.--Each eligible
institution that participates in the Program must certify that
such institution is in compliance with the requirements of
section 103.121 of title 31, Code of Federal Regulations, a
regulation that, at a minimum, requires financial institutions,
as that term is defined in 31 U.S.C. 5312(a)(2) and (c)(1)(A),
to implement reasonable procedures to verify the identity of
any person seeking to open an account, to the extent reasonable
and practicable, maintain records of the information used to
verify the person's identity, and determine whether the person
appears on any lists of known or suspected terrorists or
terrorist organizations provided to the financial institution
by any government agency.
(2) Loan recipients.--With respect to funds received by an
eligible institution under the Program, any business receiving
a loan from the eligible institution using such funds after the
date of the enactment of this Act shall certify to such
eligible institution that the principals of such business have
not been convicted of a sex offense against a minor (as such
terms are defined in section 111 of the Sex Offender
Registration and Notification Act (42 U.S.C. 16911)).
(e) Prohibition on Pornography.--None of the funds made available
under this subtitle may be used to pay the salary of any individual
engaged in activities related to the Program who has been officially
disciplined for violations of subpart G of the Standards of Ethical
Conduct for Employees of the Executive Branch for viewing, downloading,
or exchanging pornography, including child pornography, on a Federal
Government computer or while performing official Federal Government
duties.
SEC. 4108. CREDIT REFORM; FUNDING.
(a) Credit Reform.--The cost of purchases of preferred stock and
other financial instruments made as capital investments under this
subtitle shall be determined as provided under the Federal Credit
Reform Act of 1990 (2 U.S.C. 661 et seq.).
(b) Funds Made Available.--There are hereby appropriated, out of
funds in the Treasury not otherwise appropriated, such sums as may be
necessary to pay the costs of $30,000,000,000 of capital investments in
eligible institutions, including the costs of modifying such
investments, and reasonable costs of administering the program of
making, holding, managing, and selling the capital investments.
SEC. 4109. TERMINATION AND CONTINUATION OF AUTHORITIES.
(a) Termination of Investment Authority.--The authority to make
capital investments in eligible institutions, including commitments to
purchase preferred stock or other instruments, provided under this
subtitle shall terminate 1 year after the date of enactment of this
Act.
(b) Continuation of Other Authorities.--The authorities of the
Secretary under section 4104 shall not be limited by the termination
date in subsection (a).
SEC. 4110. PRESERVATION OF AUTHORITY.
Nothing in this subtitle may be construed to limit the authority of
the Secretary under any other provision of law.
SEC. 4111. ASSURANCES.
(a) Small Business Lending Fund Separate From TARP.--The Small
Business Lending Fund Program is established as separate and distinct
from the Troubled Asset Relief Program established by the Emergency
Economic Stabilization Act of 2008. An institution shall not, by virtue
of a capital investment under the Small Business Lending Fund Program,
be considered a recipient of the Troubled Asset Relief Program.
(b) Change in Law.--If, after a capital investment has been made in
an eligible institution under the Program, there is a change in law
that modifies the terms of the investment or program in a materially
adverse respect for the eligible institution, the eligible institution
may, after consultation with the appropriate Federal banking agency for
the eligible institution, repay the investment without impediment.
SEC. 4112. STUDY AND REPORT WITH RESPECT TO WOMEN-OWNED, VETERAN-OWNED,
AND MINORITY-OWNED BUSINESSES.
(a) Study.--The Secretary shall conduct a study of the impact of
the Program on women-owned businesses, veteran-owned businesses, and
minority-owned businesses.
(b) Report.--Not later than one year after the date of enactment of
this Act, the Secretary shall submit to Congress a report on the
results of the study conducted pursuant to subsection (a). To the
extent possible, the Secretary shall disaggregate the results of such
study by ethnic group and gender.
(c) Information Provided to the Secretary.--Eligible institutions
that participate in the Program shall provide the Secretary with such
information as the Secretary may require to carry out the study
required by this section.
SEC. 4113. SENSE OF CONGRESS.
It is the sense of Congress that the Federal Deposit Insurance
Corporation and other bank regulators are sending mixed messages to
banks regarding regulatory capital requirements and lending standards,
which is a contributing cause of decreased small business lending and
increased regulatory uncertainty at community banks.
Subtitle B--Other Provisions
PART I--SMALL BUSINESS EXPORT PROMOTION INITIATIVES
SEC. 4221. SHORT TITLE.
This part may be cited as the ``Export Promotion Act of 2010''.
SEC. 4222. GLOBAL BUSINESS DEVELOPMENT AND PROMOTION ACTIVITIES OF THE
DEPARTMENT OF COMMERCE.
(a) Increase in Employees With Responsibility for Global Business
Development and Promotion Activities.--
(1) In general.--During the 24-month period beginning on
the date of the enactment of this Act, the Secretary of
Commerce shall increase the number of full-time departmental
employees whose primary responsibilities involve promoting or
facilitating participation by United States businesses in the
global marketplace and facilitating the entry into, or
expansion of, such participation by United States businesses.
In carrying out this subsection, the Secretary shall ensure
that--
(A) the cohort of such employees is increased by
not less than 80 persons; and
(B) a substantial portion of the increased cohort
is stationed outside the United States.
(2) Enhanced focus on united states small- and medium-sized
businesses.--In carrying out this subsection, the Secretary
shall take such action as may be necessary to ensure that the
activities of the Department of Commerce relating to promoting
and facilitating participation by United States businesses in
the global marketplace include promoting and facilitating such
participation by small and medium-sized businesses in the
United States.
(3) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary for each of the fiscal
years 2011 and 2012 such sums as may be necessary to carry out
this section.
(b) Additional Funding for Global Business Development and
Promotion Activities of the Department of Commerce.--
(1) In general.--There are authorized to be appropriated to
the Secretary of Commerce for the period beginning on the date
of the enactment of this Act and ending 18 months thereafter,
$30,000,000 to promote or facilitate participation by United
States businesses in the global marketplace and facilitating
the entry into, or expansion of, such participation by United
States businesses.
(2) Requirements.--In obligating and expending the funds
authorized to be appropriated by paragraph (1), the Secretary
of Commerce shall give preference to activities that--
(A) assist small- and medium-sized businesses in
the United States; and
(B) the Secretary determines will create or sustain
the greatest number of jobs in the United States and
obtain the maximum return on investment.
SEC. 4223. ADDITIONAL FUNDING TO IMPROVE ACCESS TO GLOBAL MARKETS FOR
RURAL BUSINESSES.
(a) In General.--There are authorized to be appropriated to the
Secretary of Commerce $5,000,000 for each of the fiscal years 2011 and
2012 for improving access to the global marketplace for goods and
services provided by rural businesses in the United States.
(b) Requirements.--In obligating and expending the funds authorized
to be appropriated by subsection (a), the Secretary of Commerce shall
give preference to activities that--
(1) assist small- and medium-sized businesses in the United
States; and
(2) the Secretary determines will create or sustain the
greatest number of jobs in the United States and obtain the
maximum return on investment.
SEC. 4224. ADDITIONAL FUNDING FOR THE EXPORTECH PROGRAM.
(a) In General.--There are authorized to be appropriated to the
Secretary of Commerce $11,000,000 for the period beginning on the date
of the enactment of this Act and ending 18 months thereafter, to expand
ExporTech, a joint program of the Hollings Manufacturing Partnership
Program and the Export Assistance Centers of the Department of
Commerce.
(b) Requirements.--In obligating and expending the funds authorized
to be appropriated by subsection (a), the Secretary of Commerce shall
give preference to activities that--
(1) assist small- and medium-sized businesses in the United
States; and
(2) the Secretary determines will create or sustain the
greatest number of jobs in the United States and obtain the
maximum return on investment.
SEC. 4225. ADDITIONAL FUNDING FOR THE MARKET DEVELOPMENT COOPERATOR
PROGRAM OF THE DEPARTMENT OF COMMERCE.
(a) In General.--There are authorized to be appropriated to the
Secretary of Commerce for the period beginning on the date of the
enactment of this Act and ending 18 months thereafter, $15,000,000 for
the Manufacturing and Services unit of the International Trade
Administration--
(1) to establish public-private partnerships under the
Market Development Cooperator Program of the International
Trade Administration; and
(2) to underwrite a portion of the start-up costs for new
projects carried out under that Program to strengthen the
competitiveness and market share of United States industry, not
to exceed, for each such project, the lesser of--
(A) \1/3\ of the total start-up costs for the
project; or
(B) $500,000.
(b) Requirements.--In obligating and expending the funds authorized
to be appropriated by subsection (a), the Secretary of Commerce shall
give preference to activities that--
(1) assist small- and medium-sized businesses in the United
States; and
(2) the Secretary determines will create or sustain the
greatest number of jobs in the United States and obtain the
maximum return on investment.
SEC. 4226. HOLLINGS MANUFACTURING PARTNERSHIP PROGRAM; TECHNOLOGY
INNOVATION PROGRAM.
(a) Hollings Manufacturing Partnership Program.--Section 25(f) of
the National Institute of Standards and Technology Act (15 U.S.C.
278k(f)) is amended by adding at the end the following:
``(7) Global marketplace projects.--In making awards under
this subsection, the Director, in consultation with the
Manufacturing Extension Partnership Advisory Board and the
Secretary of Commerce, may--
``(A) take into consideration whether an
application has significant potential for enhancing the
competitiveness of small and medium-sized United States
manufacturers in the global marketplace; and
``(B) give a preference to applications for such
projects to the extent the Director deems appropriate,
taking into account the broader purposes of this
subsection.''.
(b) Technology Innovation Program.--In awarding grants, cooperative
agreements, or contracts under section 28 of the National Institute of
Standards and Technology Act (15 U.S.C. 278n), in addition to the award
criteria set forth in subsection (c) of that section, the Director of
the National Institute of Standards and Technology may take into
consideration whether an application has significant potential for
enhancing the competitiveness of small- and medium-sized businesses in
the United States in the global marketplace. The Director shall consult
with the Technology Innovation Program Advisory Board and the Secretary
of Commerce in implementing this subsection.
SEC. 4227. SENSE OF THE SENATE CONCERNING FEDERAL COLLABORATION WITH
STATES ON EXPORT PROMOTION ISSUES.
It is the sense of the Senate that the Secretary of Commerce should
enhance Federal collaboration with the States on export promotion
issues by--
(1) providing the necessary training to the staff at State
international trade agencies to enable them to assist the
United States and Foreign Commercial Service (established by
section 2301 of the Export Enhancement Act of 1988 (15 U.S.C.
4721)) in providing counseling and other export services to
businesses in their communities; and
(2) entering into agreements with State international trade
agencies for those agencies to deliver export promotion
services in their local communities in order to extend the
outreach of United States and Foreign Commercial Service
programs.
SEC. 4228. REPORT ON TARIFF AND NONTARIFF BARRIERS.
Not later than 90 days after the date of the enactment of this Act,
the Secretary of Commerce, in consultation with the United States Trade
Representative and other appropriate entities, shall report to Congress
on the tariff and nontariff barriers imposed by Colombia, the Republic
of Korea, and Panama with respect to exports of articles from the
United States, including articles exported or produced by small- and
medium-sized businesses in the United States.
PART II--MEDICARE FRAUD
SEC. 4241. USE OF PREDICTIVE MODELING AND OTHER ANALYTICS TECHNOLOGIES
TO IDENTIFY AND PREVENT WASTE, FRAUD, AND ABUSE IN THE
MEDICARE FEE-FOR-SERVICE PROGRAM.
(a) Use in the Medicare Fee-for-service Program.--The Secretary
shall use predictive modeling and other analytics technologies (in this
section referred to as ``predictive analytics technologies'') to
identify improper claims for reimbursement and to prevent the payment
of such claims under the Medicare fee-for-service program.
(b) Predictive Analytics Technologies Requirements.--The predictive
analytics technologies used by the Secretary shall--
(1) capture Medicare provider and Medicare beneficiary
activities across the Medicare fee-for-service program to
provide a comprehensive view across all providers,
beneficiaries, and geographies within such program in order
to--
(A) identify and analyze Medicare provider
networks, provider billing patterns, and beneficiary
utilization patterns; and
(B) identify and detect any such patterns and
networks that represent a high risk of fraudulent
activity;
(2) be integrated into the existing Medicare fee-for-
service program claims flow with minimal effort and maximum
efficiency;
(3) be able to--
(A) analyze large data sets for unusual or
suspicious patterns or anomalies or contain other
factors that are linked to the occurrence of waste,
fraud, or abuse;
(B) undertake such analysis before payment is made;
and
(C) prioritize such identified transactions for
additional review before payment is made in terms of
the likelihood of potential waste, fraud, and abuse to
more efficiently utilize investigative resources;
(4) capture outcome information on adjudicated claims for
reimbursement to allow for refinement and enhancement of the
predictive analytics technologies on the basis of such outcome
information, including post-payment information about the
eventual status of a claim; and
(5) prevent the payment of claims for reimbursement that
have been identified as potentially wasteful, fraudulent, or
abusive until such time as the claims have been verified as
valid.
(c) Implementation Requirements.--
(1) Request for proposals.--Not later than January 1, 2011,
the Secretary shall issue a request for proposals to carry out
this section during the first year of implementation. To the
extent the Secretary determines appropriate--
(A) the initial request for proposals may include
subsequent implementation years; and
(B) the Secretary may issue additional requests for
proposals with respect to subsequent implementation
years.
(2) First implementation year.--The initial request for
proposals issued under paragraph (1) shall require the
contractors selected to commence using predictive analytics
technologies on July 1, 2011, in the 10 States identified by
the Secretary as having the highest risk of waste, fraud, or
abuse in the Medicare fee-for-service program.
(3) Second implementation year.--Based on the results of
the report and recommendation required under subsection
(e)(1)(B), the Secretary shall expand the use of predictive
analytics technologies on October 1, 2012, to apply to an
additional 10 States identified by the Secretary as having the
highest risk of waste, fraud, or abuse in the Medicare fee-for-
service program, after the States identified under paragraph
(2).
(4) Third implementation year.--Based on the results of the
report and recommendation required under subsection (e)(2), the
Secretary shall expand the use of predictive analytics
technologies on January 1, 2014, to apply to the Medicare fee-
for-service program in any State not identified under paragraph
(2) or (3) and the commonwealths and territories.
(5) Fourth implementation year.--Based on the results of
the report and recommendation required under subsection (e)(3),
the Secretary shall expand the use of predictive analytics
technologies, beginning April 1, 2015, to apply to Medicaid and
CHIP. To the extent the Secretary determines appropriate, such
expansion may be made on a phased-in basis.
(6) Option for refinement and evaluation.--If, with respect
to the first, second, or third implementation year, the
Inspector General of the Department of Health and Human
Services certifies as part of the report required under
subsection (e) for that year no or only nominal actual savings
to the Medicare fee-for-service program, the Secretary may
impose a moratorium, not to exceed 12 months, on the expansion
of the use of predictive analytics technologies under this
section for the succeeding year in order to refine the use of
predictive analytics technologies to achieve more than nominal
savings before further expansion. If a moratorium is imposed in
accordance with this paragraph, the implementation dates
applicable for the succeeding year or years shall be adjusted
to reflect the length of the moratorium period.
(d) Contractor Selection, Qualifications, and Data Access
Requirements.--
(1) Selection.--
(A) In general.--The Secretary shall select
contractors to carry out this section using competitive
procedures as provided for in the Federal Acquisition
Regulation.
(B) Number of contractors.--The Secretary shall
select at least 2 contractors to carry out this section
with respect to any year.
(2) Qualifications.--
(A) In general.--The Secretary shall enter into a
contract under this section with an entity only if the
entity--
(i) has leadership and staff who--
(I) have the appropriate clinical
knowledge of, and experience with, the
payment rules and regulations under the
Medicare fee-for-service program; and
(II) have direct management
experience and proficiency utilizing
predictive analytics technologies
necessary to carry out the requirements
under subsection (b); or
(ii) has a contract, or will enter into a
contract, with another entity that has
leadership and staff meeting the criteria
described in clause (i).
(B) Conflict of interest.--The Secretary may only
enter into a contract under this section with an entity
to the extent that the entity complies with such
conflict of interest standards as are generally
applicable to Federal acquisition and procurement.
(3) Data access.--The Secretary shall provide entities with
a contract under this section with appropriate access to data
necessary for the entity to use predictive analytics
technologies in accordance with the contract.
(e) Reporting Requirements.--
(1) First implementation year report.--Not later than 3
months after the completion of the first implementation year
under this section, the Secretary shall submit to the
appropriate committees of Congress and make available to the
public a report that includes the following:
(A) A description of the implementation of the use
of predictive analytics technologies during the year.
(B) A certification of the Inspector General of the
Department of Health and Human Services that--
(i) specifies the actual and projected
savings to the Medicare fee-for-service program
as a result of the use of predictive analytics
technologies, including estimates of the
amounts of such savings with respect to both
improper payments recovered and improper
payments avoided;
(ii) the actual and projected savings to
the Medicare fee-for-service program as a
result of such use of predictive analytics
technologies relative to the return on
investment for the use of such technologies and
in comparison to other strategies or
technologies used to prevent and detect fraud,
waste, and abuse in the Medicare fee-for-
service program; and
(iii) includes recommendations regarding--
(I) whether the Secretary should
continue to use predictive analytics
technologies;
(II) whether the use of such
technologies should be expanded in
accordance with the requirements of
subsection (c); and
(III) any modifications or
refinements that should be made to
increase the amount of actual or
projected savings or mitigate any
adverse impact on Medicare
beneficiaries or providers.
(C) An analysis of the extent to which the use of
predictive analytics technologies successfully
prevented and detected waste, fraud, or abuse in the
Medicare fee-for-service program.
(D) A review of whether the predictive analytics
technologies affected access to, or the quality of,
items and services furnished to Medicare beneficiaries.
(E) A review of what effect, if any, the use of
predictive analytics technologies had on Medicare
providers.
(F) Any other items determined appropriate by the
Secretary.
(2) Second year implementation report.--Not later than 3
months after the completion of the second implementation year
under this section, the Secretary shall submit to the
appropriate committees of Congress and make available to the
public a report that includes, with respect to such year, the
items required under paragraph (1) as well as any other
additional items determined appropriate by the Secretary with
respect to the report for such year.
(3) Third year implementation report.--Not later than 3
months after the completion of the third implementation year
under this section, the Secretary shall submit to the
appropriate committees of Congress, and make available to the
public, a report that includes with respect to such year, the
items required under paragraph (1), as well as any other
additional items determined appropriate by the Secretary with
respect to the report for such year, and the following:
(A) An analysis of the cost-effectiveness and
feasibility of expanding the use of predictive
analytics technologies to Medicaid and CHIP.
(B) An analysis of the effect, if any, the
application of predictive analytics technologies to
claims under Medicaid and CHIP would have on States and
the commonwealths and territories.
(C) Recommendations regarding the extent to which
technical assistance may be necessary to expand the
application of predictive analytics technologies to
claims under Medicaid and CHIP, and the type of any
such assistance.
(f) Independent Evaluation and Report.--
(1) Evaluation.--Upon completion of the first year in which
predictive analytics technologies are used with respect to
claims under Medicaid and CHIP, the Secretary shall, by grant,
contract, or interagency agreement, conduct an independent
evaluation of the use of predictive analytics technologies
under the Medicare fee-for-service program and Medicaid and
CHIP. The evaluation shall include an analysis with respect to
each such program of the items required for the third year
implementation report under subsection (e)(3).
(2) Report.--Not later than 18 months after the evaluation
required under paragraph (1) is initiated, the Secretary shall
submit a report to Congress on the evaluation that shall
include the results of the evaluation, the Secretary's response
to such results and, to the extent the Secretary determines
appropriate, recommendations for legislation or administrative
actions.
(g) Waiver Authority.--The Secretary may waive such provisions of
titles XI, XVIII, XIX, and XXI of the Social Security Act, including
applicable prompt payment requirements under titles XVIII and XIX of
such Act, as the Secretary determines to be appropriate to carry out
this section.
(h) Funding.--
(1) Appropriation.--Out of any funds in the Treasury not
otherwise appropriated, there is appropriated to the Secretary
to carry out this section, $100,000,000 for the period
beginning January 1, 2011, to remain available until expended.
(2) Reservations.--
(A) Independent evaluation.--The Secretary shall
reserve not more than 5 percent of the funds
appropriated under paragraph (1) for purposes of
conducting the independent evaluation required under
subsection (f).
(B) Application to medicaid and chip.--The
Secretary shall reserve such portion of the funds
appropriated under paragraph (1) as the Secretary
determines appropriate for purposes of providing
assistance to States for administrative expenses in the
event of the expansion of predictive analytics
technologies to claims under Medicaid and CHIP.
(i) Definitions.--In this section:
(1) Commonwealths and territories.--The term ``commonwealth
and territories'' includes the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, and any other territory or possession
of the United States in which the Medicare fee-for-service
program, Medicaid, or CHIP operates.
(2) CHIP.--The term ``CHIP'' means the Children's Health
Insurance Program established under title XXI of the Social
Security Act (42 U.S.C. 1397aa et seq.).
(3) Medicaid.--The term ``Medicaid'' means the program to
provide grants to States for medical assistance programs
established under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.).
(4) Medicare beneficiary.--The term ``Medicare
beneficiary'' means an individual enrolled in the Medicare fee-
for-service program.
(5) Medicare fee-for-service program.--The term ``Medicare
fee-for-service program'' means the original medicare fee-for-
service program under parts A and B of title XVIII of the
Social Security Act (42 U.S.C. 1395 et seq.).
(6) Medicare provider.--The term ``Medicare provider''
means a provider of services (as defined in subsection (u) of
section 1861 of the Social Security Act (42 U.S.C. 1395x)) and
a supplier (as defined in subsection (d) of such section).
(7) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services, acting through the Administrator
of the Centers for Medicare & Medicaid Services.
(8) State.--The term ``State'' means each of the 50 States
and the District of Columbia.
TITLE V--BUDGETARY PROVISIONS
SEC. 5001. DETERMINATION OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go-Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the Senate Budget Committee, provided that
such statement has been submitted prior to the vote on passage.
Attest:
Secretary.
111th CONGRESS
2d Session
H.R. 5297
_______________________________________________________________________
AMENDMENT