[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5297 Enrolled Bill (ENR)]
H.R.5297
One Hundred Eleventh Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the fifth day of January, two thousand and ten
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.