[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3793 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 572
111th CONGRESS
  2d Session
                                S. 3793

         To extend expiring provisions and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 16, 2010

Mr. Baucus introduced the following bill; which was read the first time

                           September 20, 2010

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
         To extend expiring provisions 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; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Job Creation and 
Tax Cuts Act of 2010''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in titles I, II, and IV of this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal of, a 
section or other provision, the reference shall be considered to be 
made to a section or other provision of the Internal Revenue Code of 
1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.
                   TITLE I--INFRASTRUCTURE INCENTIVES

Sec. 101. Extension of Build America Bonds.
Sec. 102. Exempt-facility bonds for sewage and water supply facilities.
Sec. 103. Extension of exemption from alternative minimum tax treatment 
                            for certain tax-exempt bonds.
Sec. 104. Extension and additional allocations of recovery zone bond 
                            authority.
Sec. 105. Allowance of new markets tax credit against alternative 
                            minimum tax.
Sec. 106. Extension of tax-exempt eligibility for loans guaranteed by 
                            Federal home loan banks.
Sec. 107. Extension of temporary small issuer rules for allocation of 
                            tax-exempt interest expense by financial 
                            institutions.
               TITLE II--EXTENSION OF EXPIRING PROVISIONS

                           Subtitle A--Energy

Sec. 201. Alternative motor vehicle credit for new qualified hybrid 
                            motor vehicles other than passenger 
                            automobiles and light trucks.
Sec. 202. Incentives for biodiesel and renewable diesel.
Sec. 203. Credit for electricity produced at certain open-loop biomass 
                            facilities.
Sec. 204. Extension and modification of credit for steel industry fuel.
Sec. 205. Credit for producing fuel from coke or coke gas.
Sec. 206. New energy efficient home credit.
Sec. 207. Excise tax credits and outlay payments for alternative fuel 
                            and alternative fuel mixtures.
Sec. 208. Special rule for sales or dispositions to implement FERC or 
                            State electric restructuring policy for 
                            qualified electric utilities.
Sec. 209. Suspension of limitation on percentage depletion for oil and 
                            gas from marginal wells.
Sec. 210. Direct payment of energy efficient appliances tax credit.
Sec. 211. Modification of standards for windows, doors, and skylights 
                            with respect to the credit for nonbusiness 
                            energy property.
                   Subtitle B--Individual Tax Relief

                    PART I--Miscellaneous Provisions

Sec. 221. Deduction for certain expenses of elementary and secondary 
                            school teachers.
Sec. 222. Additional standard deduction for State and local real 
                            property taxes.
Sec. 223. Deduction of State and local sales taxes.
Sec. 224. Contributions of capital gain real property made for 
                            conservation purposes.
Sec. 225. Above-the-line deduction for qualified tuition and related 
                            expenses.
Sec. 226. Tax-free distributions from individual retirement plans for 
                            charitable purposes.
Sec. 227. Look-thru of certain regulated investment company stock in 
                            determining gross estate of nonresidents.
                  PART II--Low-income Housing Credits

Sec. 231. Election for direct payment of low-income housing credit for 
                            2010.
Sec. 232. Low-income housing grant election.
                    Subtitle C--Business Tax Relief

Sec. 241. Research credit.
Sec. 242. Indian employment tax credit.
Sec. 243. New markets tax credit.
Sec. 244. Railroad track maintenance credit.
Sec. 245. Mine rescue team training credit.
Sec. 246. Employer wage credit for employees who are active duty 
                            members of the uniformed services.
Sec. 247. 5-year depreciation for farming business machinery and 
                            equipment.
Sec. 248. 15-year straight-line cost recovery for qualified leasehold 
                            improvements, qualified restaurant 
                            buildings and improvements, and qualified 
                            retail improvements.
Sec. 249. 7-year recovery period for motorsports entertainment 
                            complexes.
Sec. 250. Accelerated depreciation for business property on an Indian 
                            reservation.
Sec. 251. Enhanced charitable deduction for contributions of food 
                            inventory.
Sec. 252. Enhanced charitable deduction for contributions of book 
                            inventories to public schools.
Sec. 253. Enhanced charitable deduction for corporate contributions of 
                            computer inventory for educational 
                            purposes.
Sec. 254. Election to expense mine safety equipment.
Sec. 255. Special expensing rules for certain film and television 
                            productions.
Sec. 256. Expensing of environmental remediation costs.
Sec. 257. Deduction allowable with respect to income attributable to 
                            domestic production activities in Puerto 
                            Rico.
Sec. 258. Modification of tax treatment of certain payments to 
                            controlling exempt organizations.
Sec. 259. Exclusion of gain or loss on sale or exchange of certain 
                            brownfield sites from unrelated business 
                            income.
Sec. 260. Timber REIT modernization.
Sec. 261. Treatment of certain dividends of regulated investment 
                            companies.
Sec. 262. RIC qualified investment entity treatment under FIRPTA.
Sec. 263. Exceptions for active financing income.
Sec. 264. Look-thru treatment of payments between related controlled 
                            foreign corporations under foreign personal 
                            holding company rules.
Sec. 265. Basis adjustment to stock of S corps making charitable 
                            contributions of property.
Sec. 266. Empowerment zone tax incentives.
Sec. 267. Tax incentives for investment in the District of Columbia.
Sec. 268. Renewal community tax incentives.
Sec. 269. Temporary increase in limit on cover over of rum excise taxes 
                            to Puerto Rico and the Virgin Islands.
Sec. 270. Payment to American Samoa in lieu of extension of economic 
                            development credit.
Sec. 271. Election to temporarily utilize unused AMT credits determined 
                            by domestic investment.
Sec. 272. Reduction in corporate rate for qualified timber gain.
Sec. 273. Study of extended tax expenditures.
            Subtitle D--Temporary Disaster Relief Provisions

                    PART I--National Disaster Relief

Sec. 281. Waiver of certain mortgage revenue bond requirements.
Sec. 282. Losses attributable to federally declared disasters.
Sec. 283. Special depreciation allowance for qualified disaster 
                            property.
Sec. 284. Net operating losses attributable to federally declared 
                            disasters.
Sec. 285. Expensing of qualified disaster expenses.
                      PART II--Regional Provisions

                    subpart a--new york liberty zone

Sec. 291. Special depreciation allowance for nonresidential and 
                            residential real property.
Sec. 292. Tax-exempt bond financing.
                           subpart b--go zone

Sec. 295. Increase in rehabilitation credit.
Sec. 296. Work opportunity tax credit with respect to certain 
                            individuals affected by Hurricane Katrina 
                            for employers inside disaster areas.
Sec. 297. Extension of low-income housing credit rules for buildings in 
                            GO zones.
    TITLE III--TECHNICAL CORRECTIONS TO PENSION FUNDING LEGISLATION

Sec. 301. Definition of eligible plan year.
Sec. 302. Eligible charity plans.
Sec. 303. Suspension of certain funding level limitations.
Sec. 304. Optional use of 30-year amortization periods.
Sec. 305. Transition rule for certifications of plan status.
                       TITLE IV--REVENUE OFFSETS

    Subtitle A--Personal Service Income Earned in Pass-thru Entities

Sec. 401. Partnership interests transferred in connection with 
                            performance of services.
Sec. 402. Income of partners for performing investment management 
                            services treated as ordinary income 
                            received for performance of services.
                    Subtitle B--Corporate Provisions

Sec. 411. Treatment of securities of a controlled corporation exchanged 
                            for assets in certain reorganizations.
Sec. 412. Taxation of boot received in reorganizations.
                      Subtitle C--Other Provisions

Sec. 421. Modifications with respect to Oil Spill Liability Trust Fund.
Sec. 422. Denial of deduction for punitive damages.
                  TITLE V--HEALTH AND OTHER ASSISTANCE

Sec. 501. Extension of section 508 reclassifications.
Sec. 502. Repeal of delay of RUG-IV.
Sec. 503. Limitation on reasonable costs payments for certain clinical 
                            diagnostic laboratory tests furnished to 
                            hospital patients in certain rural areas.
Sec. 504. Funding for claims reprocessing.
Sec. 505. Medicaid and CHIP technical corrections.
Sec. 506. Addition of inpatient drug discount program to 340B drug 
                            discount program.
Sec. 507. Continued inclusion of orphan drugs in definition of covered 
                            outpatient drugs with respect to children's 
                            hospitals under the 340B drug discount 
                            program.
Sec. 508. Conforming amendment related to waiver of coinsurance for 
                            preventive services.
Sec. 509. Clarification of effective date of part B special enrollment 
                            period for disabled TRICARE beneficiaries.
Sec. 510. Adjustment to Medicare payment localities.
Sec. 511. Clarification for affiliated hospitals for distribution of 
                            additional residency positions.
                       TITLE VI--OTHER PROVISIONS

                     Subtitle A--General Provisions

Sec. 601. Allocation of geothermal receipts.
Sec. 602. Employment for youth.
Sec. 603. Housing Trust Fund.
Sec. 604. The Individual Indian Money Account Litigation Settlement Act 
                            of 2010.
Sec. 605. Appropriation of funds for final settlement of claims from In 
                            re Black Farmers Discrimination Litigation.
Sec. 606. Expansion of eligibility for concurrent receipt of military 
                            retired pay and veterans' disability 
                            compensation to include all chapter 61 
                            disability retirees regardless of 
                            disability rating percentage or years of 
                            service.
Sec. 607. Refunds disregarded in the administration of Federal programs 
                            and federally assisted programs.
Sec. 608. Qualifying timber contract options.
Sec. 609. Extension and flexibility for certain allocated surface 
                            transportation programs.
Sec. 610. Community College and Career Training Grant Program.
Sec. 611. Extensions of duty suspensions on cotton shirting fabrics and 
                            related provisions.
Sec. 612. Modification of Wool Apparel Manufacturers Trust Fund.
Sec. 613. Department of Commerce Study.
Sec. 614. ARRA planning and reporting.
Sec. 615. Surety bonds.
Sec. 616. Funding for Deployment of Renewable Energy, Energy 
                            Efficiency, and Electric Power Transmission 
                            Projects.
          Subtitle B--Extension of Trade Adjustment Assistance

Sec. 621. Short title.
Sec. 622. Extension of Trade Adjustment Assistance.
          Subtitle C--Extension of Health Coverage Improvement

Sec. 631. Improvement of the affordability of the credit.
Sec. 632. Payment for the monthly premiums paid prior to commencement 
                            of the advance payments of credit.
Sec. 633. TAA recipients not enrolled in training programs eligible for 
                            credit.
Sec. 634. TAA pre-certification period rule for purposes of determining 
                            whether there is a 63-day lapse in 
                            creditable coverage.
Sec. 635. Continued qualification of family members after certain 
                            events.
Sec. 636. Extension of COBRA benefits for certain TAA-eligible 
                            individuals and PBGC recipients.
Sec. 637. Addition of coverage through voluntary employees' beneficiary 
                            associations.
Sec. 638. Notice requirements.
                      Subtitle D--TANF Provisions

Sec. 641. Extension of Temporary Assistance for Needy Families and 
                            related programs.
Sec. 642. Reinstatement of Federal matching of State spending of child 
                            support incentive payments.
Sec. 643. Extension and modification of the TANF Emergency Fund.
Sec. 644. Modifications to TANF data reporting.
Sec. 645. State court improvement program.
        Subtitle E--Unemployment Compensation Program Integrity

Sec. 651. Permissible uses of unemployment fund moneys for program 
                            integrity purposes.
Sec. 652. Mandatory penalty assessment on fraud claims.
Sec. 653. Prohibition on noncharging due to employer fault.
Sec. 654. Collection of past-due, legally enforceable State debts.
Sec. 655. Treatment of short-time compensation programs.
Sec. 656. State use of compensating balances and interest earned on 
                            clearing account to pay associated banking 
                            costs.
Sec. 657. Reporting of first day of earnings to directory of new hires.
Sec. 658. Deduction of obligations for custodial parents.
Sec. 659. Advisory Council on unemployment compensation.
Sec. 660. Amendment to the Federal-State extended benefits program.
Sec. 661. Operating instructions and regulations.
                      Subtitle F--Custom User Fees

Sec. 665. Customs user fees.
       TITLE VII--TRANSPARENCY REQUIREMENTS FOR FOREIGN-HELD DEBT

Sec. 701. Short title.
Sec. 702. Definitions.
Sec. 703. Sense of Congress.
Sec. 704. Quarterly report on risks posed by foreign holdings of debt 
                            instruments of the United States.
Sec. 705. Annual report on risks posed by the Federal debt of the 
                            United States.
Sec. 706. Corrective action to address unacceptable and unsustainable 
                            risks to United States national security 
                            and economic stability.
      TITLE VIII--TRANSPARENCY REQUIREMENTS FOR FOREIGN-HELD DEBT

Sec. 801. Short title.
Sec. 802. Definitions.
Sec. 803. Sense of Congress.
Sec. 804. Annual report on risks posed by foreign holdings of debt 
                            instruments of the United States.
Sec. 805. Annual report on risks posed by the Federal debt of the 
                            United States.
Sec. 806. Corrective action to address unacceptable risks to United 
                            States national security and economic 
                            stability.
               TITLE IX--OFFICE OF THE HOMEOWNER ADVOCATE

Sec. 901. Office of the Homeowner Advocate.
Sec. 902. Functions of the Office.
Sec. 903. Relationship with existing entities.
Sec. 904. Rule of construction.
Sec. 905. Reports to Congress.
Sec. 906. Funding.
Sec. 907. Prohibition on participation in Making Home Affordable for 
                            borrowers who strategically default.
Sec. 908. Public availability of information.
                     TITLE X--BUDGETARY PROVISIONS

Sec. 1001. Determination of budgetary effects.

                   TITLE I--INFRASTRUCTURE INCENTIVES

SEC. 101. EXTENSION OF BUILD AMERICA BONDS.

    (a) In General.--Subparagraph (B) of section 54AA(d)(1) is amended 
by striking ``January 1, 2011'' and inserting ``January 1, 2012''.
    (b) Extension of Payments to Issuers.--
            (1) In general.--Section 6431 is amended--
                    (A) by striking ``January 1, 2011'' in subsection 
                (a) and inserting ``January 1, 2012''; and
                    (B) by striking ``January 1, 2011'' in subsection 
                (f)(1)(B) and inserting ``a particular date''.
            (2) Conforming amendments.--Subsection (g) of section 54AA 
        is amended--
                    (A) by striking ``January 1, 2011'' and inserting 
                ``January 1, 2012''; and
                    (B) by striking ``Qualified Bonds Issued Before 
                2011'' in the heading and inserting ``Certain Qualified 
                Bonds''.
    (c) Reduction in Percentage of Payments to Issuers.--Subsection (b) 
of section 6431 is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) In general.--The Secretary'';
            (2) by striking ``35 percent'' and inserting ``the 
        applicable percentage''; and
            (3) by adding at the end the following new paragraph:
            ``(2) Applicable percentage.--For purposes of this 
        subsection, the term `applicable percentage' means the 
        percentage determined in accordance with the following table:


----------------------------------------------------------------------------------------------------------------
  ``In the case of a qualified bond issued during calendar
                           year:                                        The applicable percentage is:
----------------------------------------------------------------------------------------------------------------
2009 or 2010...............................................  35 percent
2011.......................................................  32 percent.''.
----------------------------------------------------------------------------------------------------------------

    (d) Current Refundings Permitted.--Subsection (g) of section 54AA 
is amended by adding at the end the following new paragraph:
            ``(3) Treatment of current refunding bonds.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `qualified bond' includes any bond (or series 
                of bonds) issued to refund a qualified bond if--
                            ``(i) the average maturity date of the 
                        issue of which the refunding bond is a part is 
                        not later than the average maturity date of the 
                        bonds to be refunded by such issue,
                            ``(ii) the amount of the refunding bond 
                        does not exceed the outstanding amount of the 
                        refunded bond, and
                            ``(iii) the refunded bond is redeemed not 
                        later than 90 days after the date of the 
                        issuance of the refunding bond.
                    ``(B) Applicable percentage.--In the case of a 
                refunding bond referred to in subparagraph (A), the 
                applicable percentage with respect to such bond under 
                section 6431(b) shall be the lowest percentage 
                specified in paragraph (2) of such section.
                    ``(C) Determination of average maturity.--For 
                purposes of subparagraph (A)(i), average maturity shall 
                be determined in accordance with section 
                147(b)(2)(A).''.
    (e) Clarification Related to Levees and Flood Control Projects.--
Subparagraph (A) of section 54AA(g)(2) is amended by inserting 
``(including capital expenditures for levees and other flood control 
projects)'' after ``capital expenditures''.

SEC. 102. EXEMPT-FACILITY BONDS FOR SEWAGE AND WATER SUPPLY FACILITIES.

    (a) Bonds for Water and Sewage Facilities Exempt From Volume Cap on 
Private Activity Bonds.--
            (1) In general.--Paragraph (3) of section 146(g) is amended 
        by inserting ``(4), (5),'' after ``(2),''.
            (2) Conforming amendment.--Paragraphs (2) and (3)(B) of 
        section 146(k) are both amended by striking ``(4), (5), (6),'' 
        and inserting ``(6)''.
    (b) Tax-exempt Issuance by Indian Tribal Governments.--
            (1) In general.--Subsection (c) of section 7871 is amended 
        by adding at the end the following new paragraph:
            ``(4) Exception for bonds for water and sewage 
        facilities.--Paragraph (2) shall not apply to an exempt 
        facility bond 95 percent or more of the net proceeds (as 
        defined in section 150(a)(3)) of which are to be used to 
        provide facilities described in paragraph (4) or (5) of section 
        142(a).''.
            (2) Conforming amendment.--Paragraph (2) of section 7871(c) 
        is amended by striking ``paragraph (3)'' and inserting 
        ``paragraphs (3) and (4)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 103. EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX TREATMENT 
              FOR CERTAIN TAX-EXEMPT BONDS.

    (a) In General.--Clause (vi) of section 57(a)(5)(C) is amended--
            (1) by striking ``January 1, 2011'' in subclause (I) and 
        inserting ``January 1, 2012''; and
            (2) by striking ``and 2010'' in the heading and inserting 
        ``, 2010, and 2011''.
    (b) Adjusted Current Earnings.--Clause (iv) of section 56(g)(4)(B) 
is amended--
            (1) by striking ``January 1, 2011'' in subclause (I) and 
        inserting ``January 1, 2012''; and
            (2) by striking ``and 2010'' in the heading and inserting 
        ``, 2010, and 2011''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2010.

SEC. 104. EXTENSION AND ADDITIONAL ALLOCATIONS OF RECOVERY ZONE BOND 
              AUTHORITY.

    (a) Extension of Recovery Zone Bond Authority.--Section 1400U-
2(b)(1) and section 1400U-3(b)(1)(B) are each amended by striking 
``January 1, 2011'' and inserting ``January 1, 2012''.
    (b) Additional Allocations of Recovery Zone Bond Authority Based on 
Unemployment.--Section 1400U-1 is amended by adding at the end the 
following new subsection:
    ``(c) Allocation of 2010 Recovery Zone Bond Limitations Based on 
Unemployment.--
            ``(1) In general.--The Secretary shall allocate the 2010 
        national recovery zone economic development bond limitation and 
        the 2010 national recovery zone facility bond limitation 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.
            ``(2) Minimum allocation.--The Secretary shall adjust the 
        allocations under paragraph (1) for each State to the extent 
        necessary to ensure that no State (prior to any reduction under 
        paragraph (3)) receives less than 0.9 percent of the 2010 
        national recovery zone economic development bond limitation and 
        0.9 percent of the 2010 national recovery zone facility bond 
        limitation.
            ``(3) Allocations by states.--
                    ``(A) In general.--Each State with respect to which 
                an allocation is made under paragraph (1) shall 
                reallocate such allocation among the counties and large 
                municipalities (as defined in subsection (a)(3)(B)) in 
                such State in the proportion that each such county's or 
                municipality's 2009 unemployment number bears to the 
                aggregate of the 2009 unemployment numbers for all the 
                counties and large municipalities (as so defined) in 
                such State.
                    ``(B) 2010 allocation reduced by amount of previous 
                allocation.--Each State shall reduce (but not below 
                zero)--
                            ``(i) the amount of the 2010 national 
                        recovery zone economic development bond 
                        limitation allocated to each county or large 
                        municipality (as so defined) in such State by 
                        the amount of the national recovery zone 
                        economic development bond limitation allocated 
                        to such county or large municipality under 
                        subsection (a)(3)(A) (determined without regard 
                        to any waiver thereof), and
                            ``(ii) the amount of the 2010 national 
                        recovery zone facility bond limitation 
                        allocated to each county or large municipality 
                        (as so defined) in such State by the amount of 
                        the national recovery zone facility bond 
                        limitation allocated to such county or large 
                        municipality under subsection (a)(3)(A) 
                        (determined without regard to any waiver 
                        thereof).
                    ``(C) Waiver of suballocations.--A county or 
                municipality may waive any portion of an allocation 
                made under this paragraph. A county or municipality 
                shall be treated as having waived any portion of an 
                allocation made under this paragraph which has not been 
                allocated to a bond issued before May 1, 2011. Any 
                allocation waived (or treated as waived) under this 
                subparagraph may be used or reallocated by the State.
                    ``(D) Special rule for a municipality in a 
                county.--In the case of any large municipality any 
                portion of which is in a county, such portion shall be 
                treated as part of such municipality and not part of 
                such county.
            ``(4) 2009 unemployment number.--For purposes of this 
        subsection, the term `2009 unemployment number' means, with 
        respect to any State, county or municipality, the number of 
        individuals in such State, county, or municipality who were 
        determined to be unemployed by the Bureau of Labor Statistics 
        for December 2009.
            ``(5) 2010 national limitations.--
                    ``(A) Recovery zone economic development bonds.--
                The 2010 national recovery zone economic development 
                bond limitation is $10,000,000,000. Any allocation of 
                such limitation under this subsection shall be treated 
                for purposes of section 1400U-2 in the same manner as 
                an allocation of national recovery zone economic 
                development bond limitation.
                    ``(B) Recovery zone facility bonds.--The 2010 
                national recovery zone facility bond limitation is 
                $15,000,000,000. Any allocation of such limitation 
                under this subsection shall be treated for purposes of 
                section 1400U-3 in the same manner as an allocation of 
                national recovery zone facility bond limitation.''.
    (c) Authority of State to Waive Certain 2009 Allocations.--
Subparagraph (A) of section 1400U-1(a)(3) is amended by adding at the 
end the following: ``A county or municipality shall be treated as 
having waived any portion of an allocation made under this subparagraph 
which has not been allocated to a bond issued before May 1, 2011. Any 
allocation waived (or treated as waived) under this subparagraph may be 
used or reallocated by the State.''.

SEC. 105. ALLOWANCE OF NEW MARKETS TAX CREDIT AGAINST ALTERNATIVE 
              MINIMUM TAX.

    (a) In General.--Subparagraph (B) of section 38(c)(4), as amended 
by the Patient Protection and Affordable Care Act, is amended by 
redesignating clauses (v) through (ix) as clauses (vi) through (x), 
respectively, and by inserting after clause (iv) the following new 
clause:
                            ``(v) the credit determined under section 
                        45D, but only with respect to credits 
                        determined with respect to qualified equity 
                        investments (as defined in section 45D(b)) 
                        initially made before January 1, 2012,''.
    (b) Effective Date.--The amendments made by this section shall 
apply to credits determined with respect to qualified equity 
investments (as defined in section 45D(b) of the Internal Revenue Code 
of 1986) initially made after March 15, 2010.

SEC. 106. EXTENSION OF TAX-EXEMPT ELIGIBILITY FOR LOANS GUARANTEED BY 
              FEDERAL HOME LOAN BANKS.

    Clause (iv) of section 149(b)(3)(A) is amended by striking 
``December 31, 2010'' and inserting ``December 31, 2011''.

SEC. 107. EXTENSION OF TEMPORARY SMALL ISSUER RULES FOR ALLOCATION OF 
              TAX-EXEMPT INTEREST EXPENSE BY FINANCIAL INSTITUTIONS.

    (a) In General.--Clauses (i), (ii), and (iii) of section 
265(b)(3)(G) are each amended by striking ``or 2010'' and inserting ``, 
2010, or 2011''.
    (b) Conforming Amendment.--Subparagraph (G) of section 265(b)(3) is 
amended by striking ``and 2010'' in the heading and inserting ``, 2010, 
and 2011''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2010.

               TITLE II--EXTENSION OF EXPIRING PROVISIONS

                           Subtitle A--Energy

SEC. 201. ALTERNATIVE MOTOR VEHICLE CREDIT FOR NEW QUALIFIED HYBRID 
              MOTOR VEHICLES OTHER THAN PASSENGER AUTOMOBILES AND LIGHT 
              TRUCKS.

    (a) In General.--Paragraph (3) of section 30B(k) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property purchased after December 31, 2009.

SEC. 202. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

    (a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
Subsection (g) of section 40A is amended by striking ``December 31, 
2009'' and inserting ``December 31, 2010''.
    (b) Excise Tax Credits and Outlay Payments for Biodiesel and 
Renewable Diesel Fuel Mixtures.--
            (1) Paragraph (6) of section 6426(c) is amended by striking 
        ``December 31, 2009'' and inserting ``December 31, 2010''.
            (2) Subparagraph (B) of section 6427(e)(6) is amended by 
        striking ``December 31, 2009'' and inserting ``December 31, 
        2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2009.

SEC. 203. CREDIT FOR ELECTRICITY PRODUCED AT CERTAIN OPEN-LOOP BIOMASS 
              FACILITIES.

    (a) In General.--Clause (ii) of section 45(b)(4)(B) is amended--
            (1) by striking ``5-year period'' and inserting ``6-year 
        period''; and
            (2) by adding at the end the following: ``In the case of 
        the last year of the 6-year period described in the preceding 
        sentence, the credit determined under subsection (a) with 
        respect to electricity produced during such year shall not 
        exceed 80 percent of such credit determined without regard to 
        this sentence.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to electricity produced and sold after December 31, 2009.

SEC. 204. EXTENSION AND MODIFICATION OF CREDIT FOR STEEL INDUSTRY FUEL.

    (a) Credit Period.--
            (1) In general.--Subclause (II) of section 45(e)(8)(D)(ii) 
        is amended to read as follows:
                                    ``(II) Credit period.--In lieu of 
                                the 10-year period referred to in 
                                clauses (i) and (ii)(II) of 
                                subparagraph (A), the credit period 
                                shall be the period beginning on the 
                                date that the facility first produces 
                                steel industry fuel that is sold to an 
                                unrelated person after September 30, 
                                2008, and ending 2 years after such 
                                date.''.
            (2) Conforming amendment.--Section 45(e)(8)(D) is amended 
        by striking clause (iii) and by redesignating clause (iv) as 
        clause (iii).
    (b) Extension of Placed-in-service Date.--Subparagraph (A) of 
section 45(d)(8) is amended--
            (1) by striking ``(or any modification to a facility)''; 
        and
            (2) by striking ``2010'' and inserting ``2011''.
    (c) Clarifications.--
            (1) Steel industry fuel.--Subclause (I) of section 
        45(c)(7)(C)(i) is amended by inserting ``, a blend of coal and 
        petroleum coke, or other coke feedstock'' after ``on coal''.
            (2) Ownership interest.--Section 45(d)(8) is amended by 
        adding at the end the following new flush sentence:
        ``With respect to a facility producing steel industry fuel, no 
        person (including a ground lessor, customer, supplier, or 
        technology licensor) shall be treated as having an ownership 
        interest in the facility or as otherwise entitled to the credit 
        allowable under subsection (a) with respect to such facility if 
        such person's rent, license fee, or other entitlement to net 
        payments from the owner of such facility is measured by a fixed 
        dollar amount or a fixed amount per ton, or otherwise 
        determined without regard to the profit or loss of such 
        facility.''.
            (3) Production and sale.--Subparagraph (D) of section 
        45(e)(8), as amended by subsection (a)(2), is amended by 
        redesignating clause (iii) as clause (iv) and by inserting 
        after clause (ii) the following new clause:
                            ``(iii) Production and sale.--The owner of 
                        a facility producing steel industry fuel shall 
                        be treated as producing and selling steel 
                        industry fuel where that owner manufactures 
                        such steel industry fuel from coal, a blend of 
                        coal and petroleum coke, or other coke 
                        feedstock to which it has title. The sale of 
                        such steel industry fuel by the owner of the 
                        facility to a person who is not the owner of 
                        the facility shall not fail to qualify as a 
                        sale to an unrelated person solely because such 
                        purchaser may also be a ground lessor, 
                        supplier, or customer.''.
    (d) Specified Credit for Purposes of Alternative Minimum Tax 
Exclusion.--Subclause (II) of section 38(c)(4)(B)(iii) is amended by 
inserting ``(in the case of a refined coal production facility 
producing steel industry fuel, during the credit period set forth in 
section 45(e)(8)(D)(ii)(II))'' after ``service''.
    (e) Effective Dates.--
            (1) In general.--The amendments made by subsections (a), 
        (b), and (d) shall apply to fuel produced and sold after 
        September 30, 2008.
            (2) Clarifications.--The amendments made by subsection (c) 
        shall take effect as if included in the amendments made by the 
        Energy Improvement and Extension Act of 2008.

SEC. 205. CREDIT FOR PRODUCING FUEL FROM COKE OR COKE GAS.

    (a) In General.--Paragraph (1) of section 45K(g) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to facilities placed in service after December 31, 2009.

SEC. 206. NEW ENERGY EFFICIENT HOME CREDIT.

    (a) In General.--Subsection (g) of section 45L is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to homes acquired after December 31, 2009.

SEC. 207. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR ALTERNATIVE FUEL 
              AND ALTERNATIVE FUEL MIXTURES.

    (a) Alternative Fuel Credit.--Paragraph (5) of section 6426(d) is 
amended by striking ``after December 31, 2009'' and all that follows 
and inserting ``after--
                    ``(A) September 30, 2014, in the case of liquefied 
                hydrogen,
                    ``(B) December 31, 2010, in the case of fuels 
                described in subparagraph (A), (C), (F), or (G) of 
                paragraph (2), and
                    ``(C) December 31, 2009, in any other case.''.
    (b) Alternative Fuel Mixture Credit.--Paragraph (3) of section 
6426(e) is amended by striking ``after December 31, 2009'' and all that 
follows and inserting ``after--
                    ``(A) September 30, 2014, in the case of liquefied 
                hydrogen,
                    ``(B) December 31, 2010, in the case of fuels 
                described in subparagraph (A), (C), (F), or (G) of 
                subsection (d)(2), and
                    ``(C) December 31, 2009, in any other case.''.
    (c) Payment Authority.--
            (1) In general.--Paragraph (6) of section 6427(e) is 
        amended by striking ``and'' at the end of subparagraph (C), by 
        striking the period at the end of subparagraph (D) and 
        inserting ``, and'', and by adding at the end the following new 
        subparagraph:
                    ``(E) any alternative fuel or alternative fuel 
                mixture (as so defined) involving fuel described in 
                subparagraph (A), (C), (F), or (G) of section 
                6426(d)(2) sold or used after December 31, 2010.''.
            (2) Conforming amendment.--Subparagraph (C) of section 
        6427(e)(6) is amended by inserting ``or (E)'' after 
        ``subparagraph (D)''.
    (d) Exclusion of Black Liquor From Credit Eligibility.--The last 
sentence of section 6426(d)(2) is amended by striking ``or biodiesel'' 
and inserting ``biodiesel, or any fuel (including lignin, wood 
residues, or spent pulping liquors) derived from the production of 
paper or pulp''.
    (e) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2009.

SEC. 208. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT FERC OR 
              STATE ELECTRIC RESTRUCTURING POLICY FOR QUALIFIED 
              ELECTRIC UTILITIES.

    (a) In General.--Paragraph (3) of section 451(i) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Modification of Definition of Independent Transmission 
Company.--
            (1) In general.--Clause (i) of section 451(i)(4)(B) is 
        amended to read as follows:
                            ``(i) who the Federal Energy Regulatory 
                        Commission determines in its authorization of 
                        the transaction under section 203 of the 
                        Federal Power Act (16 U.S.C. 824b) or by 
                        declaratory order--
                                    ``(I) is not itself a market 
                                participant as determined by the 
                                Commission, and also is not controlled 
                                by any such market participant, or
                                    ``(II) to be independent from 
                                market participants or to be an 
                                independent transmission company within 
                                the meaning of such Commission's rules 
                                applicable to independent transmission 
                                providers, and''.
            (2) Related persons.--Paragraph (4) of section 451(i) is 
        amended by adding at the end the following flush sentence:
        ``For purposes of subparagraph (B)(i)(I), a person shall be 
        treated as controlled by another person if such persons would 
        be treated as a single employer under section 52.''.
    (c) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to dispositions after December 31, 2009.
            (2) Modifications.--The amendments made by subsection (b) 
        shall apply to dispositions after the date of the enactment of 
        this Act.

SEC. 209. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION FOR OIL AND 
              GAS FROM MARGINAL WELLS.

    (a) In General.--Clause (ii) of section 613A(c)(6)(H) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.

SEC. 210. DIRECT PAYMENT OF ENERGY EFFICIENT APPLIANCES TAX CREDIT.

    In the case of any taxable year which includes the last day of 
calendar year 2009 or calendar year 2010, a taxpayer who elects to 
waive the credit which would otherwise be determined with respect to 
the taxpayer under section 45M of the Internal Revenue Code of 1986 for 
such taxable year shall be treated as making a payment against the tax 
imposed under subtitle A of such Code for such taxable year in an 
amount equal to 85 percent of the amount of the credit which would 
otherwise be so determined. Such payment shall be treated as made on 
the later of the due date of the return of such tax or the date on 
which such return is filed. Elections under this section may be made 
separately for 2009 and 2010, but once made shall be irrevocable. No 
amount shall be includible in gross income or alternative minimum 
taxable income by reason of this section.

SEC. 211. MODIFICATION OF STANDARDS FOR WINDOWS, DOORS, AND SKYLIGHTS 
              WITH RESPECT TO THE CREDIT FOR NONBUSINESS ENERGY 
              PROPERTY.

    (a) In General.--Paragraph (4) of section 25C(c) is amended by 
striking ``unless'' and all that follows and inserting ``unless--
                    ``(A) in the case of any component placed in 
                service after the date which is 90 days after the date 
                of the enactment of the Job Creation and Tax Cuts Act 
                of 2010, such component meets the criteria for such 
                components established by the 2010 Energy Star Program 
                Requirements for Residential Windows, Doors, and 
                Skylights, Version 5.0 (or any subsequent version of 
                such requirements which is in effect after January 4, 
                2010),
                    ``(B) in the case of any component placed in 
                service after the date of the enactment of the Job 
                Creation and Tax Cuts Act of 2010 and on or before the 
                date which is 90 days after such date, such component 
                meets the criteria described in subparagraph (A) or is 
                equal to or below a U factor of 0.30 and SHGC of 0.30, 
                and
                    ``(C) in the case of any component which is a 
                garage door, such component is equal to or below a U 
                factor of 0.30 and SHGC of 0.30.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of the enactment of this 
Act.

                   Subtitle B--Individual Tax Relief

                    PART I--MISCELLANEOUS PROVISIONS

SEC. 221. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND SECONDARY 
              SCHOOL TEACHERS.

    (a) In General.--Subparagraph (D) of section 62(a)(2) is amended by 
striking ``or 2009'' and inserting ``2009, or 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.

SEC. 222. ADDITIONAL STANDARD DEDUCTION FOR STATE AND LOCAL REAL 
              PROPERTY TAXES.

    (a) In General.--Subparagraph (C) of section 63(c)(1) is amended by 
striking ``or 2009'' and inserting ``2009, or 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.

SEC. 223. DEDUCTION OF STATE AND LOCAL SALES TAXES.

    (a) In General.--Subparagraph (I) of section 164(b)(5) is amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.

SEC. 224. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE FOR 
              CONSERVATION PURPOSES.

    (a) In General.--Clause (vi) of section 170(b)(1)(E) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Contributions by Certain Corporate Farmers and Ranchers.--
Clause (iii) of section 170(b)(2)(B) is amended by striking ``December 
31, 2009'' and inserting ``December 31, 2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after December 
31, 2009.

SEC. 225. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND RELATED 
              EXPENSES.

    (a) In General.--Subsection (e) of section 222 is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.
    (c) Temporary Coordination With Hope and Lifetime Learning 
Credits.--In the case of any taxpayer for any taxable year beginning in 
2010, no deduction shall be allowed under section 222 of the Internal 
Revenue Code of 1986 if--
            (1) the taxpayer's net Federal income tax reduction which 
        would be attributable to such deduction for such taxable year, 
        is less than
            (2) the credit which would be allowed to the taxpayer for 
        such taxable year under section 25A of such Code (determined 
        without regard to sections 25A(e) and 26 of such Code).

SEC. 226. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS FOR 
              CHARITABLE PURPOSES.

    (a) In General.--Subparagraph (F) of section 408(d)(8) is amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made in taxable years beginning after December 31, 
2009.

SEC. 227. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY STOCK IN 
              DETERMINING GROSS ESTATE OF NONRESIDENTS.

    (a) In General.--Paragraph (3) of section 2105(d) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to estates of decedents dying after December 31, 2009.

                  PART II--LOW-INCOME HOUSING CREDITS

SEC. 231. ELECTION FOR DIRECT PAYMENT OF LOW-INCOME HOUSING CREDIT FOR 
              2010.

    (a) In General.--Section 42 is amended by redesignating subsection 
(n) as subsection (o) and by inserting after subsection (m) the 
following new subsection:
    ``(n) Election for Direct Payment of Credit.--
            ``(1) In general.--The housing credit agency of each State 
        shall be allowed a credit in an amount equal to such State's 
        2010 low-income housing refundable credit election amount, 
        which shall be payable by the Secretary as provided in 
        paragraph (5).
            ``(2) 2010 low-income housing refundable credit election 
        amount.--For purposes of this subsection, the term `2010 low-
        income housing refundable credit election amount' means, with 
        respect to any State, such amount as the State may elect which 
        does not exceed 85 percent of the product of--
                    ``(A) the sum of--
                            ``(i) 100 percent of the State housing 
                        credit ceiling for 2010 which is attributable 
                        to amounts described in clauses (i) and (iii) 
                        of subsection (h)(3)(C), plus any credits 
                        returned to the State attributable to section 
                        1400N(c) (including credits made available 
                        under such section as applied by reason of 
                        sections 702(d)(2) and 704(b) of the Tax 
                        Extenders and Alternative Minimum Tax Relief 
                        Act of 2008), and
                            ``(ii) 40 percent of the State housing 
                        credit ceiling for 2010 which is attributable 
                        to amounts described in clauses (ii) and (iv) 
                        of such subsection, plus any credits for 2010 
                        attributable to the application of such section 
                        702(d)(2) and 704(b), multiplied by
                    ``(B) 10.
        For purposes of subparagraph (A)(ii), in the case of any area 
        to which section 702(d)(2) or 704(b) of the Tax Extenders and 
        Alternative Minimum Tax Relief Act of 2008 applies, section 
        1400N(c)(1)(A) shall be applied without regard to clause (i)
            ``(3) Coordination with non-refundable credit.--For 
        purposes of this section, the amounts described in clauses (i) 
        through (iv) of subsection (h)(3)(C) with respect to any State 
        for 2010 shall each be reduced by so much of such amount as is 
        taken into account in determining the amount of the credit 
        allowed with respect to such State under paragraph (1).
            ``(4) Special rule for basis.--Basis of a qualified low-
        income building shall not be reduced by the amount of any 
        payment made under this subsection.
            ``(5) Payment of credit; use to finance low-income 
        buildings.--The Secretary shall pay to the housing credit 
        agency of each State an amount equal to the credit allowed 
        under paragraph (1). Rules similar to the rules of subsections 
        (c) and (d) of section 1602 of the American Recovery and 
        Reinvestment Tax Act of 2009 shall apply with respect to any 
        payment made under this paragraph, except that such subsection 
        (d) shall be applied by substituting `January 1, 2012' for 
        `January 1, 2011'.''.
    (b) Conforming Amendment.--Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ``42(n),'' after ``36C,''.

SEC. 232. LOW-INCOME HOUSING GRANT ELECTION.

    (a) Clarification of Eligibility of Low-income Housing Credits for 
Low-income Housing Grant Election.--Paragraph (1) of section 1602(b) of 
the American Recovery and Reinvestment Tax Act of 2009 is amended--
            (1) by inserting ``, plus any increase for 2009 or 2010 
        attributable to section 1400N(c) of such Code (including 
        credits made available under such section as applied by reason 
        of sections 702(d)(2) and 704(b) of the Tax Extenders and 
        Alternative Minimum Tax Relief Act of 2008)'' after ``1986'' in 
        subparagraph (A), and
            (2) by inserting ``, plus any credits for 2009 attributable 
        to the application of such section 702(d)(2) and 704(b)'' after 
        ``such section'' in subparagraph (B).
    (b) Application of Additional Housing Credit Amount for Purposes of 
2009 Grant Election.--Subsection (b) of section 1602 of the American 
Recovery and Reinvestment Tax Act of 2009, as amended by subsection 
(a), is amended by adding at the end the following flush sentence:
``For purposes of paragraph (1)(B), in the case of any area to which 
section 702(d)(2) or 704(b) of the Tax Extenders and Alternative 
Minimum Tax Relief Act of 2008 applies, section 1400N(c)(1)(A) of such 
Code shall be applied without regard to clause (i).''.
    (c) Effective Date.--The amendments made by this section shall 
apply as if included in the enactment of section 1602 of the American 
Recovery and Reinvestment Tax Act of 2009.

                    Subtitle C--Business Tax Relief

SEC. 241. RESEARCH CREDIT.

    (a) In General.--Subparagraph (B) of section 41(h)(1) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) is 
amended by striking ``December 31, 2009'' and inserting ``December 31, 
2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2009.

SEC. 242. INDIAN EMPLOYMENT TAX CREDIT.

    (a) In General.--Subsection (f) of section 45A is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.

SEC. 243. NEW MARKETS TAX CREDIT.

    (a) In General.--Subparagraph (F) of section 45D(f)(1) is amended 
by inserting ``and 2010'' after ``2009''.
    (b) Conforming Amendment.--Paragraph (3) of section 45D(f) is 
amended by striking ``2014'' and inserting ``2015''.
    (c) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after 2009.

SEC. 244. RAILROAD TRACK MAINTENANCE CREDIT.

    (a) In General.--Subsection (f) of section 45G is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenditures paid or incurred in taxable years beginning after 
December 31, 2009.

SEC. 245. MINE RESCUE TEAM TRAINING CREDIT.

    (a) In General.--Subsection (e) of section 45N is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Credit Allowable Against AMT.--Subparagraph (B) of section 
38(c)(4), as amended by section 105, is amended--
            (1) by redesignating clauses (vii) through (x) as clauses 
        (viii) through (xi), respectively; and
            (2) by inserting after clause (vi) the following new 
        clause:
                            ``(vii) the credit determined under section 
                        45N,''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2009.
            (2) Allowance against amt.--The amendments made by 
        subsection (b) shall apply to credits determined for taxable 
        years beginning after December 31, 2009, and to carrybacks of 
        such credits.

SEC. 246. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE DUTY 
              MEMBERS OF THE UNIFORMED SERVICES.

    (a) In General.--Subsection (f) of section 45P is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made after December 31, 2009.

SEC. 247. 5-YEAR DEPRECIATION FOR FARMING BUSINESS MACHINERY AND 
              EQUIPMENT.

    (a) In General.--Clause (vii) of section 168(e)(3)(B) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2009.

SEC. 248. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED LEASEHOLD 
              IMPROVEMENTS, QUALIFIED RESTAURANT BUILDINGS AND 
              IMPROVEMENTS, AND QUALIFIED RETAIL IMPROVEMENTS.

    (a) In General.--Clauses (iv), (v), and (ix) of section 
168(e)(3)(E) are each amended by striking ``January 1, 2010'' and 
inserting ``January 1, 2011''.
    (b) Conforming Amendments.--
            (1) Clause (i) of section 168(e)(7)(A) is amended by 
        striking ``if such building is placed in service after December 
        31, 2008, and before January 1, 2010,''.
            (2) Paragraph (8) of section 168(e) is amended by striking 
        subparagraph (E).
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2009.

SEC. 249. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS ENTERTAINMENT 
              COMPLEXES.

    (a) In General.--Subparagraph (D) of section 168(i)(15) is amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2009.

SEC. 250. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON AN INDIAN 
              RESERVATION.

    (a) In General.--Paragraph (8) of section 168(j) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2009.

SEC. 251. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD 
              INVENTORY.

    (a) In General.--Clause (iv) of section 170(e)(3)(C) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2009.

SEC. 252. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK 
              INVENTORIES TO PUBLIC SCHOOLS.

    (a) In General.--Clause (iv) of section 170(e)(3)(D) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2009.

SEC. 253. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE CONTRIBUTIONS OF 
              COMPUTER INVENTORY FOR EDUCATIONAL PURPOSES.

    (a) In General.--Subparagraph (G) of section 170(e)(6) is amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made in taxable years beginning after December 31, 
2009.

SEC. 254. ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

    (a) In General.--Subsection (g) of section 179E is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2009.

SEC. 255. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND TELEVISION 
              PRODUCTIONS.

    (a) In General.--Subsection (f) of section 181 is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to productions commencing after December 31, 2009.

SEC. 256. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

    (a) In General.--Subsection (h) of section 198 is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenditures paid or incurred after December 31, 2009.

SEC. 257. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE TO 
              DOMESTIC PRODUCTION ACTIVITIES IN PUERTO RICO.

    (a) In General.--Subparagraph (C) of section 199(d)(8) is amended--
            (1) by striking ``first 4 taxable years'' and inserting 
        ``first 5 taxable years''; and
            (2) by striking ``January 1, 2010'' and inserting ``January 
        1, 2011''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 258. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS TO 
              CONTROLLING EXEMPT ORGANIZATIONS.

    (a) In General.--Clause (iv) of section 512(b)(13)(E) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments received or accrued after December 31, 2009.

SEC. 259. EXCLUSION OF GAIN OR LOSS ON SALE OR EXCHANGE OF CERTAIN 
              BROWNFIELD SITES FROM UNRELATED BUSINESS INCOME.

    (a) In General.--Subparagraph (K) of section 512(b)(19) is amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property acquired after December 31, 2009.

SEC. 260. TIMBER REIT MODERNIZATION.

    (a) In General.--Paragraph (8) of section 856(c) is amended by 
striking ``means'' and all that follows and inserting ``means December 
31, 2010.''.
    (b) Conforming Amendments.--
            (1) Subparagraph (I) of section 856(c)(2) is amended by 
        striking ``the first taxable year beginning after the date of 
        the enactment of this subparagraph'' and inserting ``a taxable 
        year beginning on or before the termination date''.
            (2) Clause (iii) of section 856(c)(5)(H) is amended by 
        inserting ``in taxable years beginning'' after 
        ``dispositions''.
            (3) Clause (v) of section 857(b)(6)(D) is amended by 
        inserting ``in a taxable year beginning'' after ``sale''.
            (4) Subparagraph (G) of section 857(b)(6) is amended by 
        inserting ``in a taxable year beginning'' after ``In the case 
        of a sale''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after May 22, 2009.

SEC. 261. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED INVESTMENT 
              COMPANIES.

    (a) In General.--Paragraphs (1)(C) and (2)(C) of section 871(k) are 
each amended by striking ``December 31, 2009'' and inserting ``December 
31, 2010''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 262. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER FIRPTA.

    (a) In General.--Clause (ii) of section 897(h)(4)(A) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        take effect on January 1, 2010. Notwithstanding the preceding 
        sentence, such amendment shall not apply with respect to the 
        withholding requirement under section 1445 of the Internal 
        Revenue Code of 1986 for any payment made before the date of 
        the enactment of this Act.
            (2) Amounts withheld on or before date of enactment.--In 
        the case of a regulated investment company--
                    (A) which makes a distribution after December 31, 
                2009, and before the date of the enactment of this Act; 
                and
                    (B) which would (but for the second sentence of 
                paragraph (1)) have been required to withhold with 
                respect to such distribution under section 1445 of such 
                Code,
        such investment company shall not be liable to any person to 
        whom such distribution was made for any amount so withheld and 
        paid over to the Secretary of the Treasury.

SEC. 263. EXCEPTIONS FOR ACTIVE FINANCING INCOME.

    (a) In General.--Sections 953(e)(10) and 954(h)(9) are each amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Conforming Amendment.--Section 953(e)(10) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years of foreign corporations beginning after December 
31, 2009, and to taxable years of United States shareholders with or 
within which any such taxable year of such foreign corporation ends.

SEC. 264. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED CONTROLLED 
              FOREIGN CORPORATIONS UNDER FOREIGN PERSONAL HOLDING 
              COMPANY RULES.

    (a) In General.--Subparagraph (C) of section 954(c)(6) is amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years of foreign corporations beginning after December 31, 
2009, and to taxable years of United States shareholders with or within 
which any such taxable year of such foreign corporation ends.

SEC. 265. BASIS ADJUSTMENT TO STOCK OF S CORPS MAKING CHARITABLE 
              CONTRIBUTIONS OF PROPERTY.

    (a) In General.--Paragraph (2) of section 1367(a) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made in taxable years beginning after December 31, 
2009.

SEC. 266. EMPOWERMENT ZONE TAX INCENTIVES.

    (a) In General.--Section 1391 is amended--
            (1) by striking ``December 31, 2009'' in subsection 
        (d)(1)(A)(i) and inserting ``December 31, 2010''; and
            (2) by striking the last sentence of subsection (h)(2).
    (b) Increased Exclusion of Gain on Stock of Empowerment Zone 
Businesses.--Subparagraph (C) of section 1202(a)(2) is amended--
            (1) by striking ``December 31, 2014'' and inserting 
        ``December 31, 2015''; and
            (2) by striking ``2014'' in the heading and inserting 
        ``2015''.
    (c) Treatment of Certain Termination Dates Specified in 
Nominations.--In the case of a designation of an empowerment zone the 
nomination for which included a termination date which is 
contemporaneous with the date specified in subparagraph (A)(i) of 
section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect 
before the enactment of this Act), subparagraph (B) of such section 
shall not apply with respect to such designation unless, after the date 
of the enactment of this section, the entity which made such nomination 
reconfirms such termination date, or amends the nomination to provide 
for a new termination date, in such manner as the Secretary of the 
Treasury (or the Secretary's designee) may provide.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2009.

SEC. 267. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF COLUMBIA.

    (a) In General.--Subsection (f) of section 1400 is amended by 
striking ``December 31, 2009'' each place it appears and inserting 
``December 31, 2010''.
    (b) Tax-exempt DC Empowerment Zone Bonds.--Subsection (b) of 
section 1400A is amended by striking ``December 31, 2009'' and 
inserting ``December 31, 2010''.
    (c) Zero-percent Capital Gains Rate.--
            (1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A), 
        (4)(A)(i), and (4)(B)(i)(I) of section 1400B(b) are each 
        amended by striking ``January 1, 2010'' and inserting ``January 
        1, 2011''.
            (2) Limitation on period of gains.--
                    (A) In general.--Paragraph (2) of section 1400B(e) 
                is amended--
                            (i) by striking ``December 31, 2014'' and 
                        inserting ``December 31, 2015''; and
                            (ii) by striking ``2014'' in the heading 
                        and inserting ``2015''.
                    (B) Partnerships and s-corps.--Paragraph (2) of 
                section 1400B(g) is amended by striking ``December 31, 
                2014'' and inserting ``December 31, 2015''.
    (d) First-time Homebuyer Credit.--Subsection (i) of section 1400C 
is amended by striking ``January 1, 2010'' and inserting ``January 1, 
2011''.
    (e) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        periods after December 31, 2009.
            (2) Tax-exempt dc empowerment zone bonds.--The amendment 
        made by subsection (b) shall apply to bonds issued after 
        December 31, 2009.
            (3) Acquisition dates for zero-percent capital gains 
        rate.--The amendments made by subsection (c) shall apply to 
        property acquired or substantially improved after December 31, 
        2009.
            (4) Homebuyer credit.--The amendment made by subsection (d) 
        shall apply to homes purchased after December 31, 2009.

SEC. 268. RENEWAL COMMUNITY TAX INCENTIVES.

    (a) In General.--Subsection (b) of section 1400E is amended--
            (1) by striking ``December 31, 2009'' in paragraphs (1)(A) 
        and (3) and inserting ``December 31, 2010''; and
            (2) by striking ``January 1, 2010'' in paragraph (3) and 
        inserting ``January 1, 2011''.
    (b) Zero-percent Capital Gains Rate.--
            (1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A), 
        (4)(A)(i), and (4)(B)(i) of section 1400F(b) are each amended 
        by striking ``January 1, 2010'' and inserting ``January 1, 
        2011''.
            (2) Limitation on period of gains.--Paragraph (2) of 
        section 1400F(c) is amended--
                    (A) by striking ``December 31, 2014'' and inserting 
                ``December 31, 2015''; and
                    (B) by striking ``2014'' in the heading and 
                inserting ``2015''.
            (3) Clerical amendment.--Subsection (d) of section 1400F is 
        amended by striking ``and `December 31, 2014' for `December 31, 
        2014'''.
    (c) Commercial Revitalization Deduction.--
            (1) In general.--Subsection (g) of section 1400I is amended 
        by striking ``December 31, 2009'' and inserting ``December 31, 
        2010''.
            (2) Conforming amendment.--Subparagraph (A) of section 
        1400I(d)(2) is amended by striking ``after 2001 and before 
        2010'' and inserting ``which begins after 2001 and before the 
        date referred to in subsection (g)''.
    (d) Increased Expensing Under Section 179.--Subparagraph (A) of 
section 1400J(b)(1) is amended by striking ``January 1, 2010'' and 
inserting ``January 1, 2011''.
    (e) Treatment of Certain Termination Dates Specified in 
Nominations.--In the case of a designation of a renewal community the 
nomination for which included a termination date which is 
contemporaneous with the date specified in subparagraph (A) of section 
1400E(b)(1) of the Internal Revenue Code of 1986 (as in effect before 
the enactment of this Act), subparagraph (B) of such section shall not 
apply with respect to such designation unless, after the date of the 
enactment of this section, the entity which made such nomination 
reconfirms such termination date, or amends the nomination to provide 
for a new termination date, in such manner as the Secretary of the 
Treasury (or the Secretary's designee) may provide.
    (f) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        periods after December 31, 2009.
            (2) Acquisitions.--The amendments made by subsections 
        (b)(1) and (d) shall apply to acquisitions after December 31, 
        2009.
            (3) Commercial revitalization deduction.--
                    (A) In general.--The amendment made by subsection 
                (c)(1) shall apply to buildings placed in service after 
                December 31, 2009.
                    (B) Conforming amendment.--The amendment made by 
                subsection (c)(2) shall apply to calendar years 
                beginning after December 31, 2009.

SEC. 269. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE TAXES 
              TO PUERTO RICO AND THE VIRGIN ISLANDS.

    (a) In General.--Paragraph (1) of section 7652(f) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distilled spirits brought into the United States after December 31, 
2009.

SEC. 270. PAYMENT TO AMERICAN SAMOA IN LIEU OF EXTENSION OF ECONOMIC 
              DEVELOPMENT CREDIT.

    The Secretary of the Treasury (or his designee) shall pay 
$18,000,000 to the Government of American Samoa for purposes of 
economic development. The payment made under the preceding sentence 
shall be treated for purposes of section 1324 of title 31, United 
States Code, as a refund of internal revenue collections to which such 
section applies.

SEC. 271. ELECTION TO TEMPORARILY UTILIZE UNUSED AMT CREDITS DETERMINED 
              BY DOMESTIC INVESTMENT.

    (a) In General.--Section 53 is amended by adding at the end the 
following new subsection:
    ``(g) Election for Corporations With New Domestic Investments.--
            ``(1) In general.--If a corporation elects to have this 
        subsection apply for its first taxable year beginning after 
        December 31, 2009, the limitation imposed by subsection (c) for 
        such taxable year shall be increased by the AMT credit 
        adjustment amount.
            ``(2) AMT credit adjustment amount.--For purposes of 
        paragraph (1), the term `AMT credit adjustment amount' means, 
        the lesser of--
                    ``(A) 50 percent of a corporation's minimum tax 
                credit for its first taxable year beginning after 
                December 31, 2009, determined under subsection (b), or
                    ``(B) 10 percent of new domestic investments made 
                during such taxable year.
            ``(3) New domestic investments.--For purposes of this 
        subsection, the term `new domestic investments' means the cost 
        of qualified property (as defined in section 168(k)(2)(A)(i))--
                    ``(A) the original use of which commences with the 
                taxpayer during the taxable year, and
                    ``(B) which is placed in service in the United 
                States by the taxpayer during such taxable year.
            ``(4) Credit refundable.--For purposes of subsection (b) of 
        section 6401, the aggregate increase in the credits allowable 
        under this part for any taxable year resulting from the 
        application of this subsection shall be treated as allowed 
        under subpart C (and not under any other subpart). For purposes 
        of section 6425, any amount treated as so allowed shall be 
        treated as a payment of estimated income tax for the taxable 
        year.
            ``(5) Election.--An election under this subsection shall be 
        made at such time and in such manner as prescribed by the 
        Secretary, and once made, may be revoked only with the consent 
        of the Secretary. Not later than 90 days after the date of the 
        enactment of this subsection, the Secretary shall issue 
        guidance specifying such time and manner.
            ``(6) Treatment of certain partnership investments.--For 
        purposes of this subsection, a corporation shall take into 
        account its allocable share of any new domestic investments by 
        a partnership for any taxable year if, and only if, more than 
        90 percent of the capital and profits interests in such 
        partnership are owned by such corporation (directly or 
        indirectly) at all times during such taxable year.
            ``(7) No double benefit.--
                    ``(A) In general.--A corporation making an election 
                under this subsection may not make an election under 
                subparagraph (H) of section 172(b)(1).
                    ``(B) Special rules with respect to taxpayers 
                previously electing applicable net operating losses.--
                In the case of a corporation which made an election 
                under subparagraph (H) of section 172(b)(1) and elects 
                the application of this subsection--
                            ``(i) Election of applicable net operating 
                        loss treated as revoked.--The election under 
                        such subparagraph (H) shall (notwithstanding 
                        clause (iii)(II) of such subparagraph) be 
                        treated as having been revoked by the taxpayer.
                            ``(ii) Coordination with provision for 
                        expedited refund.--The amount otherwise treated 
                        as a payment of estimated income tax under the 
                        last sentence of paragraph (4) shall be reduced 
                        (but not below zero) by the aggregate increase 
                        in unpaid tax liability determined under this 
                        chapter by reason of the revocation of the 
                        election under clause (i).
                            ``(iii) Application of statute of 
                        limitations.--With respect to the revocation of 
                        an election under clause (i)--
                                    ``(I) the statutory period for the 
                                assessment of any deficiency 
                                attributable to such revocation shall 
                                not expire before the end of the 3-year 
                                period beginning on the date of the 
                                election to have this subsection apply, 
                                and
                                    ``(II) such deficiency may be 
                                assessed before the expiration of such 
                                3-year period notwithstanding the 
                                provisions of any other law or rule of 
                                law which would otherwise prevent such 
                                assessment.
                    ``(C) Exception for eligible small businesses.--
                Subparagraphs (A) and (B) shall not apply to an 
                eligible small business as defined in section 
                172(b)(1)(H)(v)(II).
            ``(8) Regulations.--The Secretary may issue such 
        regulations or other guidance as may be necessary or 
        appropriate to carry out the purposes of this subsection, 
        including to prevent fraud and abuse under this subsection.''.
    (b) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) is amended by inserting 
        ``53(g),'' after ``53(e),''.
            (2) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``53(g),'' after ``53(e),''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 272. REDUCTION IN CORPORATE RATE FOR QUALIFIED TIMBER GAIN.

    (a) In General.--Paragraph (1) of section 1201(b) is amended by 
striking ```ending''' and all that follows through ```such date'''.
    (b) Conforming Amendment.--Paragraph (3) of section 1201(b) is 
amended to read as follows:
            ``(3) Application of subsection.--The qualified timber gain 
        for any taxable year shall not exceed the qualified timber gain 
        which would be determined by not taking into account any 
        portion of such taxable year after December 31, 2010.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after May 22, 2009.

SEC. 273. STUDY OF EXTENDED TAX EXPENDITURES.

    (a) Findings.--Congress finds the following:
            (1) Currently, the aggregate cost of Federal tax 
        expenditures rivals, or even exceeds, the amount of total 
        Federal discretionary spending.
            (2) Given the escalating public debt, a critical 
        examination of this use of taxpayer dollars is essential.
            (3) Additionally, tax expenditures can complicate the 
        Internal Revenue Code of 1986 for taxpayers and complicate tax 
        administration for the Internal Revenue Service.
            (4) To facilitate a better understanding of tax 
        expenditures in the future, it is constructive for legislation 
        extending these provisions to include a study of such 
        provisions.
    (b) Requirement to Report.--Not later than November 30, 2010, the 
Chief of Staff of the Joint Committee on Taxation, in consultation with 
the Comptroller General of the United States, shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report on each tax expenditure (as 
defined in section 3(3) of the Congressional Budget Impoundment Control 
Act of 1974 (2 U.S.C. 622(3)) extended by this title.
    (c) Rolling Submission of Reports.--The Chief of Staff of the Joint 
Committee on Taxation shall initially submit the reports for each such 
tax expenditure enacted in this subtitle (relating to business tax 
relief) and subtitle A (relating to energy) in order of the tax 
expenditure incurring the least aggregate cost to the greatest 
aggregate cost (determined by reference to the cost estimate of this 
Act by the Joint Committee on Taxation). Thereafter, such reports may 
be submitted in such order as the Chief of Staff determines 
appropriate.
    (d) Contents of Report.--Such reports shall contain the following:
            (1) An explanation of the tax expenditure and any relevant 
        economic, social, or other context under which it was first 
        enacted.
            (2) A description of the intended purpose of the tax 
        expenditure.
            (3) An analysis of the overall success of the tax 
        expenditure in achieving such purpose, and evidence supporting 
        such analysis.
            (4) An analysis of the extent to which further extending 
        the tax expenditure, or making it permanent, would contribute 
        to achieving such purpose.
            (5) A description of the direct and indirect beneficiaries 
        of the tax expenditure, including identifying any unintended 
        beneficiaries.
            (6) An analysis of whether the tax expenditure is the most 
        cost-effective method for achieving the purpose for which it 
        was intended, and a description of any more cost-effective 
        methods through which such purpose could be accomplished.
            (7) A description of any unintended effects of the tax 
        expenditure that are useful in understanding the tax 
        expenditure's overall value.
            (8) An analysis of how the tax expenditure could be 
        modified to better achieve its original purpose.
            (9) A brief description of any interactions (actual or 
        potential) with other tax expenditures or direct spending 
        programs in the same or related budget function worthy of 
        further study.
            (10) A description of any unavailable information the staff 
        of the Joint Committee on Taxation may need to complete a more 
        thorough examination and analysis of the tax expenditure, and 
        what must be done to make such information available.
    (e) Minimum Analysis by Deadline.--In the event the Chief of Staff 
of the Joint Committee on Taxation concludes it will not be feasible to 
complete all reports by the date specified in subsection (a), at a 
minimum, the reports for each tax expenditure enacted in this subtitle 
(relating to business tax relief) and subtitle A (relating to energy) 
shall be completed by such date.

            Subtitle D--Temporary Disaster Relief Provisions

                    PART I--NATIONAL DISASTER RELIEF

SEC. 281. WAIVER OF CERTAIN MORTGAGE REVENUE BOND REQUIREMENTS.

    (a) In General.--Paragraph (11) of section 143(k) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Special Rule for Residences Destroyed in Federally Declared 
Disasters.--Paragraph (13) of section 143(k), as redesignated by 
subsection (c), is amended by striking ``January 1, 2010'' in 
subparagraphs (A)(i) and (B)(i) and inserting ``January 1, 2011''.
    (c) Technical Amendment.--Subsection (k) of section 143 is amended 
by redesignating the second paragraph (12) (relating to special rules 
for residences destroyed in federally declared disasters) as paragraph 
(13).
    (d) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendment made by this section shall apply to 
        bonds issued after December 31, 2009.
            (2) Residences destroyed in federally declared disasters.--
        The amendments made by subsection (b) shall apply with respect 
        to disasters occurring after December 31, 2009.
            (3) Technical amendment.--The amendment made by subsection 
        (c) shall take effect as if included in section 709 of the Tax 
        Extenders and Alternative Minimum Tax Relief Act of 2008.

SEC. 282. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED DISASTERS.

    (a) In General.--Subclause (I) of section 165(h)(3)(B)(i) is 
amended by striking ``January 1, 2010'' and inserting ``January 1, 
2011''.
    (b) $500 Limitation.--Paragraph (1) of section 165(h) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (c) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to federally declared disasters occurring after December 
        31, 2009.
            (2) $500 limitation.--The amendment made by subsection (b) 
        shall apply to taxable years beginning after December 31, 2009.

SEC. 283. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED DISASTER 
              PROPERTY.

    (a) In General.--Subclause (I) of section 168(n)(2)(A)(ii) is 
amended by striking ``January 1, 2010'' and inserting ``January 1, 
2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to disasters occurring after December 31, 2009.

SEC. 284. NET OPERATING LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED 
              DISASTERS.

    (a) In General.--Subclause (I) of section 172(j)(1)(A)(i) is 
amended by striking ``January 1, 2010'' and inserting ``January 1, 
2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to losses attributable to disasters occurring after December 31, 2009.

SEC. 285. EXPENSING OF QUALIFIED DISASTER EXPENSES.

    (a) In General.--Subparagraph (A) of section 198A(b)(2) is amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenditures on account of disasters occurring after December 31, 
2009.

                      PART II--REGIONAL PROVISIONS

                    Subpart A--New York Liberty Zone

SEC. 291. SPECIAL DEPRECIATION ALLOWANCE FOR NONRESIDENTIAL AND 
              RESIDENTIAL REAL PROPERTY.

    (a) In General.--Subparagraph (A) of section 1400L(b)(2) is amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2009.

SEC. 292. TAX-EXEMPT BOND FINANCING.

    (a) In General.--Subparagraph (D) of section 1400L(d)(2) is amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to bonds issued after December 31, 2009.

                           Subpart B--GO Zone

SEC. 295. INCREASE IN REHABILITATION CREDIT.

    (a) In General.--Subsection (h) of section 1400N is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred after December 31, 2009.

SEC. 296. WORK OPPORTUNITY TAX CREDIT WITH RESPECT TO CERTAIN 
              INDIVIDUALS AFFECTED BY HURRICANE KATRINA FOR EMPLOYERS 
              INSIDE DISASTER AREAS.

    (a) In General.--Paragraph (1) of section 201(b) of the Katrina 
Emergency Tax Relief Act of 2005 is amended by striking ``4-year'' and 
inserting ``5-year''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to individuals hired after August 27, 2009.

SEC. 297. EXTENSION OF LOW-INCOME HOUSING CREDIT RULES FOR BUILDINGS IN 
              GO ZONES.

    Section 1400N(c)(5) is amended by striking ``January 1, 2011'' and 
inserting ``January 1, 2013''.

    TITLE III--TECHNICAL CORRECTIONS TO PENSION FUNDING LEGISLATION

SEC. 301. DEFINITION OF ELIGIBLE PLAN YEAR.

    (a) Amendment to ERISA.--Clause (v) of section 303(c)(2)(D) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1083(c)(2)(D)), as added by section 201(a)(1) of the Preservation of 
Access to Care for Medicare Beneficiaries and Pension Relief Act of 
2010, is amended by striking ``on or after the date of the enactment of 
this subparagraph'' and inserting ``on or after March 10, 2010''.
    (b) Amendment to Internal Revenue Code of 1986.--Clause (v) of 
section 430(c)(2)(D) of the Internal Revenue Code of 1986, as added by 
section 201(b)(1) of the Preservation of Access to Care for Medicare 
Beneficiaries and Pension Relief Act of 2010, is amended by striking 
``on or after the date of the enactment of this subparagraph'' and 
inserting ``on or after March 10, 2010''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendments made by the provisions of the 
Preservation of Access to Care for Medicare Beneficiaries and Pension 
Relief Act of 2010 to which the amendments relate.

SEC. 302. ELIGIBLE CHARITY PLANS.

    (a) Definition of Eligible Charity Plans.--
            (1) In general.--Section 104(d) of the Pension Protection 
        Act of 2006, as added by section 202(b) of the Preservation of 
        Access to Care for Medicare Beneficiaries and Pension Relief 
        Act of 2010, is amended to read as follows:
    ``(d) Eligible Charity Plan Defined.--For purposes of this section, 
a plan shall be treated as an eligible charity plan for a plan year 
if--
            ``(1) the plan is maintained by one or more employers 
        employing employees who are accruing benefits based on service 
        for the plan year,
            ``(2) such employees are employed in at least 20 States,
            ``(3) each such employee (other than a de minimis number of 
        employees) is employed by an employer described in section 
        501(c)(3) of such Code and the primary exempt purpose of each 
        such employer is to provide services with respect to children, 
        and
            ``(4) the plan sponsor elects (at such time and in such 
        form and manner as shall be prescribed by the Secretary of the 
        Treasury) to be so treated.
Any election under this subsection may be revoked only with the consent 
of the Secretary of the Treasury.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect as if included in the amendment made by the 
        provision of the Preservation of Access to Care for Medicare 
        Beneficiaries and Pension Relief Act of 2010 to which the 
        amendment relates (determined after application of the 
        amendment made by subsection (c)), except that a plan sponsor 
        may elect to apply such amendment to plan years beginning on or 
        after January 1, 2011.
    (b) Regulations.--The Secretary of the Treasury may prescribe such 
regulations as may be necessary to carry out the purposes of the 
amendments made by section 202(b) of the Preservation of Access to Care 
for Medicare Beneficiaries and Pension Relief Act of 2010 and the 
amendment made by subsection (a).
    (c) Application of New Rules to Eligible Charity Plans.--
            (1) In general.--Paragraph (2) of section 202(c) of the 
        Preservation of Access to Care for Medicare Beneficiaries and 
        Pension Relief Act of 2010 is amended to read as follows:
            ``(2) Eligible charity plans.--The amendments made by 
        subsection (b) shall apply to plan years beginning after 
        December 31, 2010, except that a plan sponsor may elect to 
        apply such amendments to plan years beginning after an earlier 
        date.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect as if included in the amendment made by the 
        provision of the Preservation of Access to Care for Medicare 
        Beneficiaries and Pension Relief Act of 2010 to which the 
        amendment relates.

SEC. 303. SUSPENSION OF CERTAIN FUNDING LEVEL LIMITATIONS.

    (a) Limitations on Benefit Accruals.--Section 203 of the Worker, 
Retiree, and Employer Recovery Act of 2008 (Public Law 110-458; 122 
Stat. 5118) is amended--
            (1) by striking ``the first plan year beginning during the 
        period beginning on October 1, 2008, and ending on September 
        30, 2009'' and inserting ``any plan year beginning during the 
        period beginning on October 1, 2008, and ending on December 31, 
        2011'';
            (2) by striking ``substituting'' and all that follows 
        through ``for such plan year'' and inserting ``substituting for 
        such percentage the plan's adjusted funding target attainment 
        percentage for the last plan year ending before September 30, 
        2009,''; and
            (3) by striking ``for the preceding plan year is greater'' 
        and inserting ``for such last plan year is greater''.
    (b) Social Security Level-income Options.--
            (1) ERISA amendment.--Section 206(g)(3)(E) of the Employee 
        Retirement Income Security Act of 1974 is amended by adding at 
        the end the following new sentence: ``For purposes of applying 
        clause (i) in the case of payments the annuity starting date 
        for which occurs on or before December 31, 2011, payments under 
        a social security leveling option shall be treated as not in 
        excess of the monthly amount paid under a single life annuity 
        (plus an amount not in excess of a social security supplement 
        described in the last sentence of section 204(b)(1)(G)).''.
            (2) IRC amendment.--Section 436(d)(5) of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following new sentence: ``For purposes of applying subparagraph 
        (A) in the case of payments the annuity starting date for which 
        occurs on or before December 31, 2011, payments under a social 
        security leveling option shall be treated as not in excess of 
        the monthly amount paid under a single life annuity (plus an 
        amount not in excess of a social security supplement described 
        in the last sentence of section 411(a)(9)).''.
            (3) Effective date.--
                    (A) In general.--The amendments made by this 
                subsection shall apply to annuity payments the annuity 
                starting date for which occurs on or after January 1, 
                2011.
                    (B) Permitted application.--A plan shall not be 
                treated as failing to meet the requirements of sections 
                206(g) of the Employee Retirement Income Security Act 
                of 1974 (as amended by this subsection) and section 
                436(d) of the Internal Revenue Code of 1986 (as so 
                amended) if the plan sponsor elects to apply the 
                amendments made by this subsection to payments the 
                annuity starting date for which occurs before January 
                1, 2011.
    (c) Repeal of Related Provisions.--The provisions of, and the 
amendments made by, section 203 of the Preservation of Access to Care 
for Medicare Beneficiaries and Pension Relief Act of 2010 are repealed 
and the Employee Retirement Income Security Act of 1974, the Internal 
Revenue Code of 1986, and the Worker, Retiree, and Employer Recovery 
Act of 2008 (Public Law 110-458; 122 Stat. 5118) shall be applied as if 
such section had never been enacted.

SEC. 304. OPTIONAL USE OF 30-YEAR AMORTIZATION PERIODS.

    (a) Repeal.--The provisions of, and the amendments made by, section 
211 of the Preservation of Access to Care for Medicare Beneficiaries 
and Pension Relief Act of 2010 are repealed and the Employee Retirement 
Income Security Act of 1974 and the Internal Revenue Code of 1986 shall 
be applied as if such section had never been enacted.
    (b) Elective Special Relief Rules.--
            (1) Amendment to erisa.--Section 304(b) of the Employee 
        Retirement Income Security Act of 1974, as in effect after the 
        application of subsection (a), is amended by adding at the end 
        the following new paragraph:
            ``(8) Elective special relief rules.--Notwithstanding any 
        other provision of this subsection--
                    ``(A) Amortization of net investment losses.--
                            ``(i) In general.--The plan sponsor of a 
                        multiemployer plan with respect to which the 
                        solvency test under subparagraph (B) is met may 
                        elect to treat the portion of any experience 
                        loss or gain for a plan year that is 
                        attributable to the allocable portion of the 
                        net investment losses incurred in either or 
                        both of the first two plan years ending on or 
                        after June 30, 2008, as an experience loss 
                        separate from other experience losses or gains 
                        to be amortized in equal annual installments 
                        (until fully amortized) over the period--
                                    ``(I) beginning with the plan year 
                                for which the allocable portion is 
                                determined, and
                                    ``(II) ending with the last plan 
                                year in the 30-plan year period 
                                beginning with the plan year following 
                                the plan year in which such net 
                                investment loss was incurred.
                            ``(ii) Coordination with extensions.--If an 
                        election is made under clause (i) for any plan 
                        year--
                                    ``(I) no extension of the 
                                amortization period under clause (i) 
                                shall be allowed under subsection (d), 
                                and
                                    ``(II) if an extension was granted 
                                under subsection (d) for any plan year 
                                before the plan year for which the 
                                election under this subparagraph is 
                                made, such extension shall not result 
                                in such amortization period exceeding 
                                30 years.
                            ``(iii) Definitions and rules.--For 
                        purposes of this subparagraph--
                                    ``(I) Net investment losses.--The 
                                net investment loss incurred by a plan 
                                in a plan year is equal to the excess 
                                of the expected value of the assets as 
                                of the end of the plan year over the 
                                market value of the assets as of the 
                                end of the plan year, including any 
                                difference attributable to a criminally 
                                fraudulent investment arrangement.
                                    ``(II) Expected value.--For 
                                purposes of subclause (I), the expected 
                                value of the assets as of the end of a 
                                plan year is the excess of the market 
                                value of the assets at the beginning of 
                                the plan year plus contributions made 
                                during the plan year over disbursements 
                                made during the plan year, except that 
                                such amounts shall be adjusted with 
                                interest at the valuation rate to the 
                                end of the plan year.
                                    ``(III) Criminally fraudulent 
                                investment arrangements.--The 
                                determination as to whether an 
                                arrangement is a criminally fraudulent 
                                investment arrangement shall be made 
                                under rules substantially similar to 
                                the rules prescribed by the Secretary 
                                of the Treasury for purposes of section 
                                165 of the Internal Revenue Code of 
                                1986.
                                    ``(IV) Amount attributable to 
                                allocable portion of net investment 
                                loss.--The amount attributable to the 
                                allocable portion of the net investment 
                                loss for a plan year shall be an amount 
                                equal to the allocable portion of net 
                                investment loss for the plan year under 
                                subclauses (V) and (VI), increased with 
                                interest at the valuation rate 
                                determined from the plan year after the 
                                plan year in which the net investment 
                                loss was incurred.
                                    ``(V) Allocable portion of net 
                                investment losses.--Except as provided 
                                in subclause (VI), the net investment 
                                loss incurred in a plan year shall be 
                                allocated among the 5 plan years 
                                following the plan year in which the 
                                investment loss is incurred in 
                                accordance with the following table:
``Plan year after the plan year in                                     
which the net investment loss                  Allocable portion of net
was incurred                                            investment loss
        1st..........................................             \1/2\
        2nd..........................................                 0
        3rd..........................................             \1/6\
        4th..........................................             \1/6\
        5th..........................................             \1/6\
                                    ``(VI) Special rule for plans that 
                                adopt longer smoother period.--If a 
                                plan sponsor elects an extended 
                                smoothing period for its asset 
                                valuation method under subsection 
                                (c)(2)(B), then the allocable portion 
                                of net investment loss for the first 
                                two plan years following the plan year 
                                the investment loss is incurred is the 
                                same as determined under subclause (V), 
                                but the remaining \1/2\ of the net 
                                investment loss is allocated ratably 
                                over the period beginning with the 
                                third plan year following the plan year 
                                the net investment loss is incurred and 
                                ending with the last plan year in the 
                                extended smoothing period.
                                    ``(VII) Special rule for 
                                overstatement of loss.--If, for a plan 
                                year, there is an experience loss for 
                                the plan and the amount described in 
                                subclause (IV) exceeds the total amount 
                                of the experience loss for the plan 
                                year, then the excess shall be treated 
                                as an experience gain.
                                    ``(VIII) Special rule in years for 
                                which overall experience is gain.--If, 
                                for a plan year, there is an experience 
                                gain for the plan, then, in addition to 
                                amortization of net investment losses 
                                under clause (i), the amount described 
                                in subclause (IV) shall be treated as 
                                an experience gain in addition to any 
                                other experience gain.
                    ``(B) Solvency test.--
                            ``(i) In general.--An election may be made 
                        under this paragraph if the election includes 
                        certification by the plan actuary in connection 
                        with the election that the plan is projected to 
                        have a funded percentage at the end of the 
                        first 15 plan years that is not less than 100 
                        percent of the funded percentage for the plan 
                        year of the election.
                            ``(ii) Funded percentage.--For purposes of 
                        clause (i), the term `funded percentage' has 
                        the meaning provided in section 305(i)(2), 
                        except that the value of the plan's assets 
                        referred to in section 305(i)(2)(A) shall be 
                        the market value of such assets.
                            ``(iii) Actuarial assumptions.--In making 
                        any certification under this subparagraph, the 
                        plan actuary shall use the same actuarial 
                        estimates, assumptions, and methods as those 
                        applicable for the most recent certification 
                        under section 305, except that the plan actuary 
                        may take into account benefit reductions and 
                        increases in contribution rates, under either 
                        funding improvement plans adopted under section 
                        305(c) or under section 432(c) of the Internal 
                        Revenue Code of 1986 or rehabilitation plans 
                        adopted under section 305(e) or under section 
                        432(e) of such Code, that the plan actuary 
                        reasonably anticipates will occur without 
                        regard to any change in status of the plan 
                        resulting from the election.
                    ``(C) Additional restriction on benefit 
                increases.--If an election is made under subparagraph 
                (A), then, in addition to any other applicable 
                restrictions on benefit increases, a plan amendment 
                which is adopted on or after March 10, 2010, and which 
                increases benefits may not go into effect during the 
                period beginning on such date and ending with the 
                second plan year beginning after such date unless--
                            ``(i) the plan actuary certifies that--
                                    ``(I) any such increase is paid for 
                                out of additional contributions not 
                                allocated to the plan immediately 
                                before the election to have this 
                                paragraph apply to the plan, and
                                    ``(II) the plan's funded percentage 
                                and projected credit balances for the 
                                first 3 plan years ending on or after 
                                such date are reasonably expected to be 
                                at least as high as such percentage and 
                                balances would have been if the benefit 
                                increase had not been adopted, or
                            ``(ii) the amendment is required as a 
                        condition of qualification under part I of 
                        subchapter D of chapter 1 of the Internal 
                        Revenue Code of 1986 or to comply with other 
                        applicable law.
                    ``(D) Time, form, and manner of election.--An 
                election under this paragraph shall be made not later 
                than June 30, 2011, and shall be made in such form and 
                manner as the Secretary of the Treasury may prescribe.
                    ``(E) Reporting.--A plan sponsor of a plan to which 
                this paragraph applies shall--
                            ``(i) give notice of such election to 
                        participants and beneficiaries of the plan, and
                            ``(ii) inform the Pension Benefit Guaranty 
                        Corporation of such election in such form and 
                        manner as the Pension Benefit Guaranty 
                        Corporation may prescribe.''.
            (2) Amendment to internal revenue code of 1986 .--Section 
        431(b) of the Internal Revenue Code of 1986, as in effect after 
        the application of subsection (a), is amended by adding at the 
        end the following new paragraph:
            ``(8) Elective special relief rules.--Notwithstanding any 
        other provision of this subsection--
                    ``(A) Amortization of net investment losses.--
                            ``(i) In general.--The plan sponsor of a 
                        multiemployer plan with respect to which the 
                        solvency test under subparagraph (B) is met may 
                        elect to treat the portion of any experience 
                        loss or gain for a plan year that is 
                        attributable to the allocable portion of the 
                        net investment losses incurred in either or 
                        both of the first two plan years ending on or 
                        after June 30, 2008, as an experience loss 
                        separate from other experience losses and gains 
                        to be amortized in equal annual installments 
                        (until fully amortized) over the period--
                                    ``(I) beginning with the plan year 
                                for which the allocable portion is 
                                determined, and
                                    ``(II) ending with the last plan 
                                year in the 30-plan year period 
                                beginning with the plan year following 
                                the plan year in which such net 
                                investment loss was incurred.
                            ``(ii) Coordination with extensions.--If an 
                        election is made under clause (i) for any plan 
                        year--
                                    ``(I) no extension of the 
                                amortization period under clause (i) 
                                shall be allowed under subsection (d), 
                                and
                                    ``(II) if an extension was granted 
                                under subsection (d) for any plan year 
                                before the plan year for which the 
                                election under this subparagraph is 
                                made, such extension shall not result 
                                in such amortization period exceeding 
                                30 years.
                            ``(iii) Definitions and rules.--For 
                        purposes of this subparagraph--
                                    ``(I) Net investment losses.--The 
                                net investment loss incurred by a plan 
                                in a plan year is equal to the excess 
                                of the expected value of the assets as 
                                of the end of the plan year over the 
                                market value of the assets as of the 
                                end of the plan year, including any 
                                difference attributable to a criminally 
                                fraudulent investment arrangement.
                                    ``(II) Expected value.--For 
                                purposes of subclause (I), the expected 
                                value of the assets as of the end of a 
                                plan year is the excess of the market 
                                value of the assets at the beginning of 
                                the plan year plus contributions made 
                                during the plan year over disbursements 
                                made during the plan year, except that 
                                such amounts shall be adjusted with 
                                interest at the valuation rate to the 
                                end of the plan year.
                                    ``(III) Criminally fraudulent 
                                investment arrangements.--The 
                                determination as to whether an 
                                arrangement is a criminally fraudulent 
                                investment arrangement shall be made 
                                under rules substantially similar to 
                                the rules prescribed by the Secretary 
                                for purposes of section 165.
                                    ``(IV) Amount attributable to 
                                allocable portion of net investment 
                                loss.--The amount attributable to the 
                                allocable portion of the net investment 
                                loss for a plan year shall be an amount 
                                equal to the allocable portion of net 
                                investment loss for the plan year under 
                                subclauses (V) and (VI), increased with 
                                interest at the valuation rate 
                                determined from the plan year after the 
                                plan year in which the net investment 
                                loss was incurred.
                                    ``(V) Allocable portion of net 
                                investment losses.--Except as provided 
                                in subclause (VI), the net investment 
                                loss incurred in a plan year shall be 
                                allocated among the 5 plan years 
                                following the plan year in which the 
                                investment loss is incurred in 
                                accordance with the following table:
``Plan year after the plan year in                                     
which the net investment loss                  Allocable portion of net
was incurred                                            investment loss
        1st..........................................             \1/2\
        2nd..........................................                 0
        3rd..........................................             \1/6\
        4th..........................................             \1/6\
        5th..........................................             \1/6\
                                    ``(VI) Special rule for plans that 
                                adopt longer smoother period.--If a 
                                plan sponsor elects an extended 
                                smoothing period for its asset 
                                valuation method under subsection 
                                (c)(2)(B), then the allocable portion 
                                of net investment loss for the first 
                                two plan years following the plan year 
                                the investment loss is incurred is the 
                                same as determined under subclause (V), 
                                but the remaining \1/2\ of the net 
                                investment loss is allocated ratably 
                                over the period beginning with the 
                                third plan year following the plan year 
                                the net investment loss is incurred and 
                                ending with the last plan year in the 
                                extended smoothing period.
                                    ``(VII) Special rule for 
                                overstatement of loss.--If, for a plan 
                                year, there is an experience loss for 
                                the plan and the amount described in 
                                subclause (IV) exceeds the total amount 
                                of the experience loss for the plan 
                                year, then the excess shall be treated 
                                as an experience gain.
                                    ``(VIII) Special rule in years for 
                                which overall experience is gain.--If, 
                                for a plan year, there is an experience 
                                gain for the plan, then, in addition to 
                                amortization of net investment losses 
                                under clause (i), the amount described 
                                in subclause (IV) shall be treated as 
                                an experience gain in addition to any 
                                other experience gain.
                    ``(B) Solvency test.--
                            ``(i) In general.--An election may be made 
                        under this paragraph if the election includes 
                        certification by the plan actuary in connection 
                        with the election that the plan is projected to 
                        have a funded percentage at the end of the 
                        first 15 plan years that is not less than 100 
                        percent of the funded percentage for the plan 
                        year of the election.
                            ``(ii) Funded percentage.--For purposes of 
                        clause (i), the term `funded percentage' has 
                        the meaning provided in section 432(i)(2), 
                        except that the value of the plan's assets 
                        referred to in section 432(i)(2)(A) shall be 
                        the market value of such assets.
                            ``(iii) Actuarial assumptions.--In making 
                        any certification under this subparagraph, the 
                        plan actuary shall use the same actuarial 
                        estimates, assumptions, and methods as those 
                        applicable for the most recent certification 
                        under section 432, except that the plan actuary 
                        may take into account benefit reductions and 
                        increases in contribution rates, under either 
                        funding improvement plans adopted under section 
                        432(c) or under section 305(c) of the Employee 
                        Retirement Income Security Act of 1974 or 
                        rehabilitation plans adopted under section 
                        432(e) or under section 305(e) of such Act, 
                        that the plan actuary reasonably anticipates 
                        will occur without regard to any change in 
                        status of the plan resulting from the election.
                    ``(C) Additional restriction on benefit 
                increases.--If an election is made under subparagraph 
                (A), then, in addition to any other applicable 
                restrictions on benefit increases, a plan amendment 
                which is adopted on or after March 10, 2010, and which 
                increases benefits may not go into effect during the 
                period beginning on such date and ending with the 
                second plan year beginning after such date unless--
                            ``(i) the plan actuary certifies that--
                                    ``(I) any such increase is paid for 
                                out of additional contributions not 
                                allocated to the plan immediately 
                                before the election to have this 
                                paragraph apply to the plan, and
                                    ``(II) the plan's funded percentage 
                                and projected credit balances for the 
                                first 3 plan years ending on or after 
                                such date are reasonably expected to be 
                                at least as high as such percentage and 
                                balances would have been if the benefit 
                                increase had not been adopted, or
                            ``(ii) the amendment is required as a 
                        condition of qualification under part I or to 
                        comply with other applicable law.
                    ``(D) Time, form, and manner of election.--An 
                election under this paragraph shall be made not later 
                than June 30, 2011, and shall be made in such form and 
                manner as the Secretary may prescribe.
                    ``(E) Reporting.--A plan sponsor of a plan to which 
                this paragraph applies shall--
                            ``(i) give notice of such election to 
                        participants and beneficiaries of the plan, and
                            ``(ii) inform the Pension Benefit Guaranty 
                        Corporation of such election in such form and 
                        manner as the Pension Benefit Guaranty 
                        Corporation may prescribe.''.
    (c) Asset Smoothing for Multiemployer Plans.--
            (1) Amendment to erisa.--Section 304(c)(2) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1084(c)(2)) 
        is amended--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (B) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) Extended asset smoothing period for certain 
                investment losses.--The Secretary of the Treasury shall 
                not treat the asset valuation method of a multiemployer 
                plan as unreasonable solely because such method spreads 
                the difference between expected and actual returns for 
                either or both of the first 2 plan years ending on or 
                after June 30, 2008, over a period of not more than 10 
                years. Any change in valuation method to so spread such 
                difference shall be treated as approved, but only if, 
                in the case that the plan sponsor has made an election 
                under subsection (b)(8), any resulting change in asset 
                value is treated for purposes of amortization as a net 
                experience loss or gain.''.
            (2) Amendment to internal revenue code of 1986.--Section 
        431(c)(2) of the Internal Revenue Code of 1986 is amended--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (B) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) Extended asset smoothing period for certain 
                investment losses.--The Secretary shall not treat the 
                asset valuation method of a multiemployer plan as 
                unreasonable solely because such method spreads the 
                difference between expected and actual returns for 
                either or both of the first 2 plan years ending on or 
                after June 30, 2008, over a period of not more than 10 
                years. Any change in valuation method to so spread such 
                difference shall be treated as approved, but only if, 
                in the case that the plan sponsor has made an election 
                under subsection (b)(8), any resulting change in asset 
                value is treated for purposes of amortization as a net 
                experience loss or gain.''.
    (d) Effective Date and Special Rules.--
            (1) Effective date.--The amendments made by this section 
        shall take effect as of the first day of the first plan year 
        beginning after June 30, 2008, except that any election a plan 
        sponsor makes pursuant to this section or the amendments made 
        thereby that affects the plan's funding standard account for 
        any plan year beginning before October 1, 2009, shall be 
        disregarded for purposes of applying the provisions of section 
        305 of the Employee Retirement Income Security Act of 1974 and 
        section 432 of the Internal Revenue Code of 1986 to that plan 
        year.
            (2) Deemed approval for certain funding method changes.--In 
        the case of a multiemployer plan with respect to which an 
        election has been made under section 304(b)(8) of the Employee 
        Retirement Income Security Act of 1974 (as amended by this 
        section) or section 431(b)(8) of the Internal Revenue Code of 
        1986 (as so amended)--
                    (A) any change in the plan's funding method for a 
                plan year beginning on or after July 1, 2008, and on or 
                before December 31, 2010, from a method that does not 
                establish a base for experience gains and losses to one 
                that does establish such a base shall be treated as 
                approved by the Secretary of the Treasury; and
                    (B) any resulting funding method change base shall 
                be treated for purposes of amortization as a net 
                experience loss or gain.

SEC. 305. TRANSITION RULE FOR CERTIFICATIONS OF PLAN STATUS.

    (a) In General.--A plan actuary shall not be treated as failing to 
meet the requirements of section 305(b)(3)(A) of the Employee 
Retirement Income Security Act of 1974 and section 432(b)(3)(A) of the 
Internal Revenue Code of 1986 in connection with a certification 
required under such sections the deadline for which is after the date 
of the enactment of this Act if the plan actuary makes such 
certification at any time earlier than 75 days after the date of the 
enactment of this Act.
    (b) Revision of Prior Certification.--
            (1) In general.--If--
                    (A) a plan sponsor makes an election under section 
                304(b)(8) of the Employee Retirement Income Security 
                Act of 1974 and section 431(b)(8) of the Internal 
                Revenue Code of 1986, or under section 304(c)(2)(B) of 
                such Act and section 431(c)(2)(B) such Code, with 
                respect to a plan for a plan year beginning on or after 
                October 1, 2009; and
                    (B) the plan actuary's certification of the plan 
                status for such plan year (hereinafter in this 
                subsection referred to as ``original certification'') 
                did not take into account any election so made,
        then the plan sponsor may direct the plan actuary to make a new 
        certification with respect to the plan for the plan year which 
        takes into account such election (hereinafter in this 
        subsection referred to as ``new certification'') if the plan's 
        status under section 305 of such Act and section 432 of such 
        Code would change as a result of such election. Any such new 
        certification shall be treated as the most recent certification 
        referred to in section 304(b)(3)(B)(iii) of such Act and 
        section 431(b)(8)(B)(iii) of such Code.
            (2) Due date for new certification.--Any such new 
        certification shall be made pursuant to section 305(b)(3) of 
        such Act and section 432(b)(3) of such Code; except that any 
        such new certification shall be made not later than 75 days 
        after the date of the enactment of this Act.
            (3) Notice.--
                    (A) In general.--Except as provided in subparagraph 
                (B), any such new certification shall be treated as the 
                original certification for purposes of section 
                305(b)(3)(D) of such Act and section 432(b)(3)(D) of 
                such Code.
                    (B) Notice already provided.--In any case in which 
                notice has been provided under such sections with 
                respect to the original certification, not later than 
                30 days after the new certification is made, the plan 
                sponsor shall provide notice of any change in status 
                under rules similar to the rules such sections.
            (4) Effect of change in status.--If a plan ceases to be in 
        critical status pursuant to the new certification, then the 
        plan shall, not later than 30 days after the due date described 
        in paragraph (2), cease any restriction of benefit payments, 
        and imposition of contribution surcharges, under section 305 of 
        such Act and section 432 of such Code by reason of the original 
        certification.

                       TITLE IV--REVENUE OFFSETS

    Subtitle A--Personal Service Income Earned in Pass-thru Entities

SEC. 401. PARTNERSHIP INTERESTS TRANSFERRED IN CONNECTION WITH 
              PERFORMANCE OF SERVICES.

    (a) Modification to Election To Include Partnership Interest in 
Gross Income in Year of Transfer.--Subsection (c) of section 83 is 
amended by redesignating paragraph (4) as paragraph (5) and by 
inserting after paragraph (3) the following new paragraph:
            ``(4) Partnership interests.--Except as provided by the 
        Secretary, in the case of any transfer of an interest in a 
        partnership in connection with the provision of services to (or 
        for the benefit of) such partnership--
                    ``(A) the fair market value of such interest shall 
                be treated for purposes of this section as being equal 
                to the amount of the distribution which the partner 
                would receive if the partnership sold (at the time of 
                the transfer) all of its assets at fair market value 
                and distributed the proceeds of such sale (reduced by 
                the liabilities of the partnership) to its partners in 
                liquidation of the partnership, and
                    ``(B) the person receiving such interest shall be 
                treated as having made the election under subsection 
                (b)(1) unless such person makes an election under this 
                paragraph to have such subsection not apply.''.
    (b) Conforming Amendment.--Paragraph (2) of section 83(b) is 
amended by inserting ``or subsection (c)(4)(B)'' after ``paragraph 
(1)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to interests in partnerships transferred after the date of the 
enactment of this Act.

SEC. 402. INCOME OF PARTNERS FOR PERFORMING INVESTMENT MANAGEMENT 
              SERVICES TREATED AS ORDINARY INCOME RECEIVED FOR 
              PERFORMANCE OF SERVICES.

    (a) In General.--Part I of subchapter K of chapter 1 is amended by 
adding at the end the following new section:

``SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT MANAGEMENT 
              SERVICES TO PARTNERSHIP.

    ``(a) Treatment of Distributive Share of Partnership Items.--For 
purposes of this title, in the case of an investment services 
partnership interest--
            ``(1) In general.--Notwithstanding section 702(b)--
                    ``(A) any net income with respect to such interest 
                for any partnership taxable year shall be treated as 
                ordinary income, and
                    ``(B) any net loss with respect to such interest 
                for such year, to the extent not disallowed under 
                paragraph (2) for such year, shall be treated as an 
                ordinary loss.
        All items of income, gain, deduction, and loss which are taken 
        into account in computing net income or net loss shall be 
        treated as ordinary income or ordinary loss (as the case may 
        be).
            ``(2) Treatment of losses.--
                    ``(A) Limitation.--Any net loss with respect to 
                such interest shall be allowed for any partnership 
                taxable year only to the extent that such loss does not 
                exceed the excess (if any) of--
                            ``(i) the aggregate net income with respect 
                        to such interest for all prior partnership 
                        taxable years, over
                            ``(ii) the aggregate net loss with respect 
                        to such interest not disallowed under this 
                        subparagraph for all prior partnership taxable 
                        years.
                    ``(B) Carryforward.--Any net loss for any 
                partnership taxable year which is not allowed by reason 
                of subparagraph (A) shall be treated as an item of loss 
                with respect to such partnership interest for the 
                succeeding partnership taxable year.
                    ``(C) Basis adjustment.--No adjustment to the basis 
                of a partnership interest shall be made on account of 
                any net loss which is not allowed by reason of 
                subparagraph (A).
                    ``(D) Prior partnership years.--Any reference in 
                this paragraph to prior partnership taxable years shall 
                only include prior partnership taxable years to which 
                this section applies.
            ``(3) Net income and loss.--For purposes of this section--
                    ``(A) Net income.--The term `net income' means, 
                with respect to any investment services partnership 
                interest for any partnership taxable year, the excess 
                (if any) of--
                            ``(i) all items of income and gain taken 
                        into account by the holder of such interest 
                        under section 702 with respect to such interest 
                        for such year, over
                            ``(ii) all items of deduction and loss so 
                        taken into account.
                    ``(B) Net loss.--The term `net loss' means, with 
                respect to such interest for such year, the excess (if 
                any) of the amount described in subparagraph (A)(ii) 
                over the amount described in subparagraph (A)(i).
            ``(4) Special rule for dividends.--Any dividend taken into 
        account in determining net income or net loss for purposes of 
        paragraph (1) shall not be treated as qualified dividend income 
        for purposes of section 1(h).
    ``(b) Dispositions of Partnership Interests.--
            ``(1) Gain.--Any gain on the disposition of an investment 
        services partnership interest shall be--
                    ``(A) treated as ordinary income, and
                    ``(B) recognized notwithstanding any other 
                provision of this subtitle.
            ``(2) Loss.--Any loss on the disposition of an investment 
        services partnership interest shall be treated as an ordinary 
        loss to the extent of the excess (if any) of--
                    ``(A) the aggregate net income with respect to such 
                interest for all partnership taxable years to which 
                this section applies, over
                    ``(B) the aggregate net loss with respect to such 
                interest allowed under subsection (a)(2) for all 
                partnership taxable years to which this section 
                applies.
            ``(3) Election with respect to certain exchanges.--
        Paragraph (1)(B) shall not apply to the contribution of an 
        investment services partnership interest to a partnership in 
        exchange for an interest in such partnership if--
                    ``(A) the taxpayer makes an irrevocable election to 
                treat the partnership interest received in the exchange 
                as an investment services partnership interest, and
                    ``(B) the taxpayer agrees to comply with such 
                reporting and recordkeeping requirements as the 
                Secretary may prescribe.
            ``(4) Disposition of portion of interest.--In the case of 
        any disposition of an investment services partnership interest, 
        the amount of net loss which otherwise would have (but for 
        subsection (a)(2)(C)) applied to reduce the basis of such 
        interest shall be disregarded for purposes of this section for 
        all succeeding partnership taxable years.
            ``(5) Distributions of partnership property.--In the case 
        of any distribution of property by a partnership with respect 
        to any investment services partnership interest held by a 
        partner--
                    ``(A) the excess (if any) of--
                            ``(i) the fair market value of such 
                        property at the time of such distribution, over
                            ``(ii) the adjusted basis of such property 
                        in the hands of the partnership,
                shall be taken into account as an increase in such 
                partner's distributive share of the taxable income of 
                the partnership (except to the extent such excess is 
                otherwise taken into account in determining the taxable 
                income of the partnership),
                    ``(B) such property shall be treated for purposes 
                of subpart B of part II as money distributed to such 
                partner in an amount equal to such fair market value, 
                and
                    ``(C) the basis of such property in the hands of 
                such partner shall be such fair market value.
        Subsection (b) of section 734 shall be applied without regard 
        to the preceding sentence. In the case of a taxpayer which 
        satisfies requirements similar to the requirements of 
        subparagraphs (A) and (B) of paragraph (3), this paragraph and 
        paragraph (1)(B) shall not apply to the distribution of a 
        partnership interest if such distribution is in connection with 
        a contribution (or deemed contribution) of any property of the 
        partnership to which section 721 applies pursuant to a 
        transaction described in paragraph (1)(B) or (2) of section 
        708(b).
            ``(6) Application of section 751.--
                    ``(A) In general.--In applying section 751, an 
                investment services partnership interest shall be 
                treated as an inventory item.
                    ``(B) Exception for certain dispositions of 
                interests in a publicly traded partnership.--Except as 
                provided by the Secretary, this paragraph shall not 
                apply in the case of any (direct or indirect) 
                disposition of an interest in a publicly traded 
                partnership (as defined in section 7704) which is not 
                an investment services partnership interest in the 
                hands of the person disposing of such interest (or the 
                hands of the person holding such interest indirectly).
    ``(c) Investment Services Partnership Interest.--For purposes of 
this section--
            ``(1) In general.--The term `investment services 
        partnership interest' means any interest in a partnership which 
        is held (directly or indirectly) by any person if it was 
        reasonably expected (at the time that such person acquired such 
        interest) that such person (or any person related to such 
        person) would provide (directly or, to the extent provided by 
        the Secretary, indirectly) a substantial quantity of any of the 
        following services with respect to assets held (directly or 
        indirectly) by the partnership:
                    ``(A) Advising as to the advisability of investing 
                in, purchasing, or selling any specified asset.
                    ``(B) Managing, acquiring, or disposing of any 
                specified asset.
                    ``(C) Arranging financing with respect to acquiring 
                specified assets.
                    ``(D) Any activity in support of any service 
                described in subparagraphs (A) through (C).
            ``(2) Specified asset.--The term `specified asset' means 
        securities (as defined in section 475(c)(2) without regard to 
        the last sentence thereof), real estate held for rental or 
        investment, interests in partnerships, commodities (as defined 
        in section 475(e)(2)), or options or derivative contracts with 
        respect to any of the foregoing.
            ``(3) Exception for family farms.--The term `specified 
        asset' shall not include any farm used for farming purposes if 
        such farm is held by a partnership all of the interests in 
        which are held (directly or indirectly) by members of the same 
        family. Terms used in the preceding sentence which are also 
        used in section 2032A shall have the same meaning as when used 
        in such section.
            ``(4) Exception for partnerships with pro rata allocations 
        based on capital.--Except as provided by the Secretary, the 
        term `investment services partnership interest' shall not 
        include any interest in a partnership if all distributions and 
        all allocations of the partnership, and of any other 
        partnership in which the partnership directly or indirectly 
        holds an interest, are made pro rata on the basis of the 
        capital contributions of each partner which constitute 
        qualified capital interests under subsection (d).
            ``(5) Related persons.--A person shall be treated as 
        related to another person if the relationship between such 
        persons is described in section 267 or 707(b).
    ``(d) Exception for Certain Capital Interests.--
            ``(1) In general.--In the case of any portion of an 
        investment services partnership interest which is a qualified 
        capital interest, all items of income, gain, loss, and 
        deduction which are allocated to such qualified capital 
        interest shall not be taken into account under subsection (a) 
        if--
                    ``(A) allocations of items are made by the 
                partnership to such qualified capital interest in the 
                same manner as such allocations are made to other 
                qualified capital interests held by partners who do not 
                provide any services described in subsection (c)(1) and 
                who are not related to the partner holding the 
                qualified capital interest, and
                    ``(B) the allocations made to such other interests 
                are significant compared to the allocations made to 
                such qualified capital interest.
            ``(2) Authority to provide exceptions to allocation 
        requirements.--To the extent provided by the Secretary in 
        regulations or other guidance--
                    ``(A) Allocations to portion of qualified capital 
                interest.--Paragraph (1) may be applied separately with 
                respect to a portion of a qualified capital interest.
                    ``(B) No or insignificant allocations to nonservice 
                providers.--In any case in which the requirements of 
                paragraph (1)(B) are not satisfied, items of income, 
                gain, loss, and deduction shall not be taken into 
                account under subsection (a) to the extent that such 
                items are properly allocable under such regulations or 
                other guidance to qualified capital interests.
                    ``(C) Allocations to service providers' qualified 
                capital interests which are less than other 
                allocations.--Allocations shall not be treated as 
                failing to meet the requirement of paragraph (1)(A) 
                merely because the allocations to the qualified capital 
                interest represent a lower return than the allocations 
                made to the other qualified capital interests referred 
                to in such paragraph.
            ``(3) Special rule for changes in services.--In the case of 
        an interest in a partnership which is not an investment 
        services partnership interest and which, by reason of a change 
        in the services with respect to assets held (directly or 
        indirectly) by the partnership, would (without regard to the 
        reasonable expectation exception of subsection (c)(1)) have 
        become such an interest--
                    ``(A) notwithstanding subsection (c)(1), such 
                interest shall be treated as an investment services 
                partnership interest as of the time of such change, and
                    ``(B) for purposes of this subsection, the 
                qualified capital interest of the holder of such 
                partnership interest immediately after such change 
                shall not be less than the fair market value of such 
                interest (determined immediately before such change).
            ``(4) Special rule for tiered partnerships.--Except as 
        otherwise provided by the Secretary, in the case of tiered 
        partnerships, all items which are allocated in a manner which 
        meets the requirements of paragraph (1) to qualified capital 
        interests in a lower-tier partnership shall retain such 
        character to the extent allocated on the basis of qualified 
        capital interests in any upper-tier partnership.
            ``(5) Exception for no-self-charged carry and management 
        fee provisions.--Except as otherwise provided by the Secretary, 
        an interest shall not fail to be treated as satisfying the 
        requirement of paragraph (1)(A) merely because the allocations 
        made by the partnership to such interest do not reflect the 
        cost of services described in subsection (c)(1) which are 
        provided (directly or indirectly) to the partnership by the 
        holder of such interest (or a related person).
            ``(6) Special rule for dispositions.--In the case of any 
        investment services partnership interest any portion of which 
        is a qualified capital interest, subsection (b) shall not apply 
        to so much of any gain or loss as bears the same proportion to 
        the entire amount of such gain or loss as--
                    ``(A) the distributive share of gain or loss that 
                would have been allocated to the qualified capital 
                interest (consistent with the requirements of paragraph 
                (1)) if the partnership had sold all of its assets at 
                fair market value immediately before the disposition, 
                bears to
                    ``(B) the distributive share of gain or loss that 
                would have been so allocated to the investment services 
                partnership interest of which such qualified capital 
                interest is a part.
            ``(7) Qualified capital interest.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified capital 
                interest' means so much of a partner's interest in the 
                capital of the partnership as is attributable to--
                            ``(i) the fair market value of any money or 
                        other property contributed to the partnership 
                        in exchange for such interest (determined 
                        without regard to section 752(a)),
                            ``(ii) any amounts which have been included 
                        in gross income under section 83 with respect 
                        to the transfer of such interest, and
                            ``(iii) the excess (if any) of--
                                    ``(I) any items of income and gain 
                                taken into account under section 702 
                                with respect to such interest, over
                                    ``(II) any items of deduction and 
                                loss so taken into account.
                    ``(B) Adjustment to qualified capital interest.--
                            ``(i) Distributions and losses.--The 
                        qualified capital interest shall be reduced by 
                        distributions from the partnership with respect 
                        to such interest and by the excess (if any) of 
                        the amount described in subparagraph 
                        (A)(iii)(II) over the amount described in 
                        subparagraph (A)(iii)(I).
                            ``(ii) Special rule for contributions of 
                        property.--In the case of any contribution of 
                        property described in subparagraph (A)(i) with 
                        respect to which the fair market value of such 
                        property is not equal to the adjusted basis of 
                        such property immediately before such 
                        contribution, proper adjustments shall be made 
                        to the qualified capital interest to take into 
                        account such difference consistent with such 
                        regulations or other guidance as the Secretary 
                        may provide.
            ``(8) Treatment of certain loans.--
                    ``(A) Proceeds of partnership loans not treated as 
                qualified capital interest of service providing 
                partners.--For purposes of this subsection, an 
                investment services partnership interest shall not be 
                treated as a qualified capital interest to the extent 
                that such interest is acquired in connection with the 
                proceeds of any loan or other advance made or 
                guaranteed, directly or indirectly, by any other 
                partner or the partnership (or any person related to 
                any such other partner or the partnership). The 
                preceding sentence shall not apply to the extent the 
                loan or other advance is repaid before the date of the 
                enactment of this section unless such repayment is made 
                with the proceeds of a loan or other advance described 
                in the preceding sentence.
                    ``(B) Reduction in allocations to qualified capital 
                interests for loans from nonservice-providing partners 
                to the partnership.--For purposes of this subsection, 
                any loan or other advance to the partnership made or 
                guaranteed, directly or indirectly, by a partner not 
                providing services described in subsection (c)(1) to 
                the partnership (or any person related to such partner) 
                shall be taken into account in determining the 
                qualified capital interests of the partners in the 
                partnership.
    ``(e) Other Income and Gain in Connection With Investment 
Management Services.--
            ``(1) In general.--If--
                    ``(A) a person performs (directly or indirectly) 
                investment management services for any entity,
                    ``(B) such person holds (directly or indirectly) a 
                disqualified interest with respect to such entity, and
                    ``(C) the value of such interest (or payments 
                thereunder) is substantially related to the amount of 
                income or gain (whether or not realized) from the 
                assets with respect to which the investment management 
                services are performed,
        any income or gain with respect to such interest shall be 
        treated as ordinary income. Rules similar to the rules of 
        subsections (a)(4) and (d) shall apply for purposes of this 
        subsection.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Disqualified interest.--
                            ``(i) In general.--The term `disqualified 
                        interest' means, with respect to any entity--
                                    ``(I) any interest in such entity 
                                other than indebtedness,
                                    ``(II) convertible or contingent 
                                debt of such entity,
                                    ``(III) any option or other right 
                                to acquire property described in 
                                subclause (I) or (II), and
                                    ``(IV) any derivative instrument 
                                entered into (directly or indirectly) 
                                with such entity or any investor in 
                                such entity.
                            ``(ii) Exceptions.--Such term shall not 
                        include--
                                    ``(I) a partnership interest,
                                    ``(II) except as provided by the 
                                Secretary, any interest in a taxable 
                                corporation, and
                                    ``(III) except as provided by the 
                                Secretary, stock in an S corporation.
                    ``(B) Taxable corporation.--The term `taxable 
                corporation' means--
                            ``(i) a domestic C corporation, or
                            ``(ii) a foreign corporation substantially 
                        all of the income of which is--
                                    ``(I) effectively connected with 
                                the conduct of a trade or business in 
                                the United States, or
                                    ``(II) subject to a comprehensive 
                                foreign income tax (as defined in 
                                section 457A(d)(2)).
                    ``(C) Investment management services.--The term 
                `investment management services' means a substantial 
                quantity of any of the services described in subsection 
                (c)(1).
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as is necessary or appropriate to carry out the 
purposes of this section, including regulations or other guidance to--
            ``(1) provide modifications to the application of this 
        section (including treating related persons as not related to 
        one another) to the extent such modification is consistent with 
        the purposes of this section,
            ``(2) prevent the avoidance of the purposes of this 
        section, and
            ``(3) coordinate this section with the other provisions of 
        this title.
    ``(g) Special Rules for Individuals.--In the case of an 
individual--
            ``(1) In general.--Subsection (a)(1) shall apply only to 
        the applicable percentage of the net income or net loss 
        referred to in such subsection.
            ``(2) Dispositions, etc.--The amount which (but for this 
        paragraph) would be treated as ordinary income by reason of 
        subsection (b) or (e) shall be the applicable percentage of 
        such amount.
            ``(3) Pro rata allocation to items.--For purposes of 
        applying subsections (a) and (e), the aggregate amount treated 
        as ordinary income for any such taxable year shall be allocated 
        ratably among the items of income, gain, loss, and deduction 
        taken into account in determining such amount.
            ``(4) Special rule for recognition of gain.--Gain which 
        (but for this section) would not be recognized shall be 
        recognized by reason of subsection (b) only to the extent that 
        such gain is treated as ordinary income after application of 
        paragraph (2).
            ``(5) Coordination with limitation on losses.--For purposes 
        of applying paragraph (2) of subsection (a) with respect to any 
        net loss for any taxable year--
                    ``(A) such paragraph shall only apply with respect 
                to the applicable percentage of such net loss for such 
                taxable year,
                    ``(B) in the case of a prior partnership taxable 
                year referred to in clause (i) or (ii) of subparagraph 
                (A) of such paragraph, only the applicable percentage 
                (as in effect for such prior taxable year) of net 
                income or net loss for such prior partnership taxable 
                year shall be taken into account, and
                    ``(C) any net loss carried forward to the 
                succeeding partnership taxable year under subparagraph 
                (B) of such paragraph shall--
                            ``(i) be taken into account in such 
                        succeeding year without reduction under this 
                        subsection, and
                            ``(ii) in lieu of being taken into account 
                        as an item of loss in such succeeding year, 
                        shall be taken into account--
                                    ``(I) as an increase in net loss or 
                                as a reduction in net income (including 
                                below zero), as the case may be, and
                                    ``(II) after any reduction in the 
                                amount of such net loss or net income 
                                under this subsection.
        A rule similar to the rule of the preceding sentence shall 
        apply for purposes of subsection (b)(2)(A).
            ``(6) Coordination with treatment of dividends.--Subsection 
        (a)(4) shall only apply to the applicable percentage of 
        dividends described therein.
            ``(7) Applicable percentage.--For purposes of this 
        subsection--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), the term `applicable 
                percentage' means 75 percent.
                    ``(B) Exception for disposition of assets held by 
                investment services partnerships at least 5 years.--The 
                applicable percentage shall be 50 percent with respect 
                to any net income or net loss under subsection (a)(1) 
                which is properly allocable to gain or loss from the 
                disposition (or a distribution under subsection (b)(5)) 
                of any asset (other than an investment services 
                partnership interest) which has been held by the 
                investment services partnership for at least 5 years.
                    ``(C) Exception for disposition of investment 
                services partnership interests held at least 5 years.--
                            ``(i) In general.--The applicable 
                        percentage shall be 50 percent with respect 
                        to--
                                    ``(I) net income or net loss under 
                                subsection (a)(1) which is properly 
                                allocable to gain or loss from the 
                                disposition (or a distribution under 
                                subsection (b)(5)) of an investment 
                                services partnership interest which has 
                                been held at least 5 years, and
                                    ``(II) gain or loss under 
                                subsection (b) on the disposition of an 
                                investment services partnership 
                                interest which has been held for at 
                                least 5 years,
                        but only to the extent such gain or loss is 
                        attributable to assets held by the investment 
                        services partnership for at least 5 years.
                            ``(ii) Application in the case of tiered 
                        partnerships, etc.--For purposes of determining 
                        whether the assets of the investment services 
                        partnership have been held for at least 5 years 
                        under clause (i), an investment services 
                        partnership shall be treated as owning its 
                        proportionate share of the property of any 
                        other partnership in which it has held an 
                        investment services partnership interest for at 
                        least 5 years.
                            ``(iii) Regulations.--The Secretary may by 
                        regulation or other guidance extend the 
                        application of clause (ii) to entities other 
                        than investment services partnerships if 
                        necessary to prevent the avoidance of the 
                        purposes of this subparagraph.
                    ``(D) Treatment of goodwill and other section 197 
                intangibles.--For purposes of this paragraph, in the 
                case of any section 197 intangible of an entity through 
                which services described in subparagraphs (A) through 
                (D) of subsection (c)(1) are directly or indirectly 
                provided--
                            ``(i) the holding period of such intangible 
                        shall not be less than the holding period of 
                        the investment services partnership interest in 
                        the partnership, and
                            ``(ii) the value of such intangible shall 
                        be determined in a manner consistent with the 
                        regulations described in subparagraph (E).
                    ``(E) Valuation methods.--The Secretary shall 
                prescribe regulations or guidance which provide--
                            ``(i) the acceptable valuation methods for 
                        purposes of this subparagraph, except that such 
                        methods shall not include any valuation method 
                        which is inconsistent with the method used by 
                        the taxpayer for other purposes (including 
                        reporting asset valuations to partners or 
                        potential partners in the partnership or any 
                        related partnership) if such inconsistent 
                        valuation method would result in the treatment 
                        of a greater amount of gain as attributable to 
                        a section 197 intangible than would result 
                        under the valuation method used by the taxpayer 
                        for such other purposes,
                            ``(ii) circumstances under which valuations 
                        are sufficiently independent to provide an 
                        accurate determination of fair market value, 
                        and
                            ``(iii) any information required to be 
                        furnished to the Secretary by the parties to 
                        the disposition with respect to such valuation.
                    ``(F) Definitions and special rules.--For purposes 
                of this paragraph--
                            ``(i) Investment services partnership.--The 
                        term `investment services partnership' means, 
                        with respect to any investment services 
                        partnership interest, the entity in which such 
                        interest is held.
                            ``(ii) Section 197 intangible.--The term 
                        `section 197 intangible' has the meaning given 
                        such term in section 197(d).
                            ``(iii) Application to disqualified 
                        interests.--Rules similar to the rules of this 
                        paragraph shall apply with respect to income or 
                        gain with respect to a disqualified interest 
                        under subsection (e).
    ``(h) Cross Reference.--For 40 percent penalty on certain 
underpayments due to the avoidance of this section, see section 
6662.''.
    (b) Treatment for Purposes of Section 7704.--Subsection (d) of 
section 7704 is amended by adding at the end the following new 
paragraph:
            ``(6) Income from investment services partnership interests 
        not qualified.--
                    ``(A) In general.--Items of income and gain shall 
                not be treated as qualifying income if such items are 
                treated as ordinary income by reason of the application 
                of section 710 (relating to special rules for partners 
                providing investment management services to 
                partnership). The preceding sentence shall not apply to 
                any item described in paragraph (1)(E) (or so much of 
                paragraph (1)(F) as relates to paragraph (1)(E)).
                    ``(B) Special rules for certain partnerships.--
                            ``(i) Certain partnerships owned by real 
                        estate investment trusts.--Subparagraph (A) 
                        shall not apply in the case of a partnership 
                        which meets each of the following requirements:
                                    ``(I) Such partnership is treated 
                                as publicly traded under this section 
                                solely by reason of interests in such 
                                partnership being convertible into 
                                interests in a real estate investment 
                                trust which is publicly traded.
                                    ``(II) 50 percent or more of the 
                                capital and profits interests of such 
                                partnership are owned, directly or 
                                indirectly, at all times during the 
                                taxable year by such real estate 
                                investment trust (determined with the 
                                application of section 267(c)).
                                    ``(III) Such partnership meets the 
                                requirements of paragraphs (2), (3), 
                                and (4) of section 856(c).
                            ``(ii) Certain partnerships owning other 
                        publicly traded partnerships.--Subparagraph (A) 
                        shall not apply in the case of a partnership 
                        which meets each of the following requirements:
                                    ``(I) Substantially all of the 
                                assets of such partnership consist of 
                                interests in one or more publicly 
                                traded partnerships (determined without 
                                regard to subsection (b)(2)).
                                    ``(II) Substantially all of the 
                                income of such partnership is ordinary 
                                income or section 1231 gain (as defined 
                                in section 1231(a)(3)).
                    ``(C) Transitional rule.--Subparagraph (A) shall 
                not apply to any taxable year of the partnership 
                beginning before the date which is 10 years after the 
                date of the enactment of this paragraph.''.
    (c) Imposition of Penalty on Underpayments.--
            (1) In general.--Subsection (b) of section 6662 is amended 
        by inserting after paragraph (7) the following new paragraph:
            ``(8) The application of subsection (e) of section 710, the 
        regulations or other guidance prescribed under section 710(f) 
        to prevent the avoidance of the purposes of section 710, or the 
        regulations or other guidance prescribed under section 
        710(g)(7)(E).''.
            (2) Amount of penalty.--
                    (A) In general.--Section 6662 is amended by adding 
                at the end the following new subsection:
    ``(k) Increase in Penalty in Case of Property Transferred for 
Investment Management Services.--In the case of any portion of an 
underpayment to which this section applies by reason of subsection 
(b)(8), subsection (a) shall be applied with respect to such portion by 
substituting `40 percent' for `20 percent'.''.
                    (B) Conforming amendment.--Subparagraph (B) of 
                section 6662A(e)(2) is amended by striking ``or (i)'' 
                and inserting ``, (i), or (k)''.
            (3) Special rules for application of reasonable cause 
        exception.--Subsection (c) of section 6664 is amended--
                    (A) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively;
                    (B) by striking ``paragraph (3)'' in paragraph 
                (5)(A), as so redesignated, and inserting ``paragraph 
                (4)''; and
                    (C) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) Special rule for underpayments attributable to 
        investment management services.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                any portion of an underpayment to which section 6662 
                applies by reason of subsection (b)(8) unless--
                            ``(i) the relevant facts affecting the tax 
                        treatment of the item are adequately disclosed,
                            ``(ii) there is or was substantial 
                        authority for such treatment, and
                            ``(iii) the taxpayer reasonably believed 
                        that such treatment was more likely than not 
                        the proper treatment.
                    ``(B) Rules relating to reasonable belief.--Rules 
                similar to the rules of subsection (d)(3) shall apply 
                for purposes of subparagraph (A)(iii).''.
    (d) Income and Loss From Investment Services Partnership Interests 
Taken Into Account in Determining Net Earnings From Self-Employment.--
            (1) Internal revenue code.--Section 1402(a) is amended by 
        striking ``and'' at the end of paragraph (16), by striking the 
        period at the end of paragraph (17) and inserting ``; and'', 
        and by inserting after paragraph (17) the following new 
        paragraph:
            ``(18) notwithstanding the preceding provisions of this 
        subsection, in the case of any individual engaged in the trade 
        or business of providing services described in section 
        710(c)(1) with respect to any entity, any amount treated as 
        ordinary income or ordinary loss of such individual under 
        section 710 with respect to such entity shall be taken into 
        account in determining the net earnings from self-employment of 
        such individual.''.
            (2) Social security act.--Section 211(a) of the Social 
        Security Act is amended by striking ``and'' at the end of 
        paragraph (15), by striking the period at the end of paragraph 
        (16) and inserting ``; and'', and by inserting after paragraph 
        (16) the following new paragraph:
            ``(17) Notwithstanding the preceding provisions of this 
        subsection, in the case of any individual engaged in the trade 
        or business of providing services described in section 
        710(c)(1) of the Internal Revenue Code of 1986 with respect to 
        any entity, any amount treated as ordinary income or ordinary 
        loss of such individual under section 710 of such Code with 
        respect to such entity shall be taken into account in 
        determining the net earnings from self-employment of such 
        individual.''.
    (e) Conforming Amendments.--
            (1) Subsection (d) of section 731 is amended by inserting 
        ``section 710(b)(4) (relating to distributions of partnership 
        property),'' after ``to the extent otherwise provided by''.
            (2) Section 741 is amended by inserting ``or section 710 
        (relating to special rules for partners providing investment 
        management services to partnership)'' before the period at the 
        end.
            (3) The table of sections for part I of subchapter K of 
        chapter 1 is amended by adding at the end the following new 
        item:

``Sec. 710. Special rules for partners providing investment management 
                            services to partnership.''.
    (f) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        taxable years ending after December 31, 2010.
            (2) Partnership taxable years which include effective 
        date.--In applying section 710(a) of the Internal Revenue Code 
        of 1986 (as added by this section) in the case of any 
        partnership taxable year which includes December 31, 2010, the 
        amount of the net income referred to in such section shall be 
        treated as being the lesser of the net income for the entire 
        partnership taxable year or the net income determined by only 
        taking into account items attributable to the portion of the 
        partnership taxable year which is after such date.
            (3) Dispositions of partnership interests.--Section 710(b) 
        of the Internal Revenue Code of 1986 (as added by this section) 
        shall apply to dispositions and distributions after December 
        31, 2010.
            (4) Other income and gain in connection with investment 
        management services.--Section 710(e) of such Code (as added by 
        this section) shall take effect on December 31, 2010.

                    Subtitle B--Corporate Provisions

SEC. 411. TREATMENT OF SECURITIES OF A CONTROLLED CORPORATION EXCHANGED 
              FOR ASSETS IN CERTAIN REORGANIZATIONS.

    (a) In General.--Section 361 (relating to nonrecognition of gain or 
loss to corporations; treatment of distributions) is amended by adding 
at the end the following new subsection:
    ``(d) Special Rules for Transactions Involving Section 355 
Distributions.--In the case of a reorganization described in section 
368(a)(1)(D) with respect to which stock or securities of the 
corporation to which the assets are transferred are distributed in a 
transaction which qualifies under section 355--
            ``(1) this section shall be applied by substituting `stock 
        other than nonqualified preferred stock (as defined in section 
        351(g)(2))' for `stock or securities' in subsections (a) and 
        (b)(1), and
            ``(2) the first sentence of subsection (b)(3) shall apply 
        only to the extent that the sum of the money and the fair 
        market value of the other property transferred to such 
        creditors does not exceed the adjusted bases of such assets 
        transferred (reduced by the amount of the liabilities assumed 
        (within the meaning of section 357(c))).''.
    (b) Conforming Amendment.--Paragraph (3) of section 361(b) is 
amended by striking the last sentence.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to exchanges after 
        December 31, 2010.
            (2) Transition rule.--The amendments made by this section 
        shall not apply to any exchange pursuant to a transaction which 
        is--
                    (A) made pursuant to a written agreement which was 
                binding on December 31, 2010, and at all times 
                thereafter;
                    (B) described in a ruling request submitted to the 
                Internal Revenue Service on or before July 29, 2010; or
                    (C) described on or before December 31, 2010, in a 
                public announcement or in a filing with the Securities 
                and Exchange Commission.

SEC. 412. TAXATION OF BOOT RECEIVED IN REORGANIZATIONS.

    (a) In General.--Paragraph (2) of section 356(a) is amended--
            (1) by striking ``If an exchange'' and inserting ``Except 
        as otherwise provided by the Secretary--
                    ``(A) In general.--If an exchange'';
            (2) by striking ``then there shall be'' and all that 
        follows through ``February 28, 1913'' and inserting ``then the 
        amount of other property or money shall be treated as a 
        dividend to the extent of the earnings and profits of the 
        corporation''; and
            (3) by adding at the end the following new subparagraph:
                    ``(B) Certain reorganizations.--In the case of a 
                reorganization described in section 368(a)(1)(D) to 
                which section 354(b)(1) applies or any other 
                reorganization specified by the Secretary, in applying 
                subparagraph (A)--
                            ``(i) the earnings and profits of each 
                        corporation which is a party to the 
                        reorganization shall be taken into account, and
                            ``(ii) the amount which is a dividend (and 
                        source thereof) shall be determined under rules 
                        similar to the rules of paragraphs (2) and (5) 
                        of section 304(b).''.
    (b) Earnings and Profits.--Paragraph (7) of section 312(n) is 
amended by adding at the end the following: ``A similar rule shall 
apply to an exchange to which section 356(a)(1) applies.''.
    (c) Conforming Amendment.--Paragraph (1) of section 356(a) is 
amended by striking ``then the gain'' and inserting ``then (except as 
provided in paragraph (2)) the gain''.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to exchanges after 
        December 31, 2010.
            (2) Transition rules.--
                    (A) In general.--The amendments made by this 
                section shall not apply to any exchange between 
                unrelated persons pursuant to a transaction which is--
                            (i) made pursuant to a written agreement 
                        which was binding on December 31, 2010, and at 
                        all times thereafter;
                            (ii) described in a ruling request 
                        submitted to the Internal Revenue Service on or 
                        before July 29, 2010; or
                            (iii) described in a public announcement or 
                        filing with the Securities and Exchange 
                        Commission on or before December 31, 2010.
                    (B) Special rule.--The amendments made by this 
                section shall not apply to an exchange described in 
                subparagraph (C) if the exchange is completed before 
                the date which is 1 year after the acquisition 
                described in subparagraph (C) occurred.
                    (C) Applicable exchanges.--An exchange is described 
                in this subparagraph if subparagraph (A) does not apply 
                to such exchange and it--
                            (i)(I) is in connection with an acquisition 
                        between unrelated persons which occurred before 
                        July 29, 2010; and
                            (II) was evidenced by written documentation 
                        in existence before such acquisition occurred; 
                        or
                            (ii)(I) is in connection with an 
                        acquisition between unrelated persons with 
                        respect to which there was a written agreement, 
                        ruling request, public announcement, or filing 
                        which meets the requirements of clauses (i), 
                        (ii), or (iii) of subparagraph (A); and
                            (II) was evidenced by written documentation 
                        in existence before July 29, 2010.
            (3) Related persons.--For purposes of this subsection, a 
        person shall be treated as related to another person if the 
        relationship between such persons is described in section 267 
        or 707(b) of the Internal Revenue Code of 1986.

                      Subtitle C--Other Provisions

SEC. 421. MODIFICATIONS WITH RESPECT TO OIL SPILL LIABILITY TRUST FUND.

    (a) Extension of Application of Oil Spill Liability Trust Fund 
Financing Rate.--Paragraph (2) of section 4611(f) is amended by 
striking ``December 31, 2017'' and inserting ``December 31, 2020''.
    (b) Increase in Oil Spill Liability Trust Fund Financing Rate.--
Subparagraph (B) of section 4611(c)(2) is amended to read as follows:
                    ``(B) the Oil Spill Liability Trust Fund financing 
                rate is 78 cents a barrel.''.
    (c) Increase in Per Incident Limitations on Expenditures.--
Subparagraph (A) of section 9509(c)(2) is amended--
            (1) by striking ``$1,000,000,000'' in clause (i) and 
        inserting ``$5,000,000,000'';
            (2) by striking ``$500,000,000'' in clause (ii) and 
        inserting ``$2,500,000,000''; and
            (3) by striking ``$1,000,000,000 per incident, etc'' in the 
        heading and inserting ``Per incident limitations''.
    (d) Effective Date.--
            (1) Extension of financing rate.--Except as provided in 
        paragraph (2), the amendments made by this section shall take 
        effect on the date of the enactment of this Act.
            (2) Increase in financing rate.--The amendment made by 
        subsection (b) shall apply to crude oil received and petroleum 
        products entered during calendar quarters beginning more than 
        60 days after the date of the enactment of this Act.

SEC. 422. DENIAL OF DEDUCTION FOR PUNITIVE DAMAGES.

    (a) Disallowance of Deduction for Punitive Damages.--
            (1) In general.--Section 162(g) (relating to treble damage 
        payments under the antitrust laws) is amended--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively,
                    (B) by striking ``If'' and inserting:
            ``(1) Treble damages.--If'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(2) Punitive damages.--No deduction shall be allowed 
        under this chapter for any amount paid or incurred for punitive 
        damages in connection with any judgment in, or settlement of, 
        any action. This paragraph shall not apply to punitive damages 
        described in section 104(c).''.
            (2) Conforming amendment.--The heading for section 162(g) 
        is amended by inserting ``Or Punitive Damages'' after ``Laws''.
    (b) Inclusion in Income of Punitive Damages Paid by Insurer or 
Otherwise.--
            (1) In general.--Part II of subchapter B of chapter 1 
        (relating to items specifically included in gross income) is 
        amended by adding at the end the following new section:

``SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSURANCE OR OTHERWISE.

    ``Gross income shall include any amount paid to or on behalf of a 
taxpayer as insurance or otherwise by reason of the taxpayer's 
liability (or agreement) to pay punitive damages.''.
            (2) Reporting requirements.--Section 6041 (relating to 
        information at source) is amended by adding at the end the 
        following new subsection:
    ``(k) Section To Apply to Punitive Damages Compensation.--This 
section shall apply to payments by a person to or on behalf of another 
person as insurance or otherwise by reason of the other person's 
liability (or agreement) to pay punitive damages.''.
            (3) Conforming amendment.--The table of sections for part 
        II of subchapter B of chapter 1 is amended by adding at the end 
        the following new item:

``Sec. 91. Punitive damages compensated by insurance or otherwise.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to damages paid or incurred after December 31, 2011.

                  TITLE V--HEALTH AND OTHER ASSISTANCE

SEC. 501. EXTENSION OF SECTION 508 RECLASSIFICATIONS.

    (a) In General.--Section 106(a) of division B of the Tax Relief and 
Health Care Act of 2006 (42 U.S.C. 1395 note), as amended by section 
117 of the Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public 
Law 110-173), section 124 of the Medicare Improvements for Patients and 
Providers Act of 2008 (Public Law 110-275), and sections 3137(a) and 
10317 of Public Law 111-148, is amended by striking ``September 30, 
2010'' and inserting ``September 30, 2011''.
    (b) Conforming Amendment.--Section 117(a)(3) of the Medicare, 
Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-173)), is 
amended by inserting ``in fiscal years 2008 and 2009'' after ``For 
purposes of implementation of this subsection''.

SEC. 502. REPEAL OF DELAY OF RUG-IV.

    Effective as if included in the enactment of Public Law 111-148, 
section 10325 of such Act is repealed.

SEC. 503. LIMITATION ON REASONABLE COSTS PAYMENTS FOR CERTAIN CLINICAL 
              DIAGNOSTIC LABORATORY TESTS FURNISHED TO HOSPITAL 
              PATIENTS IN CERTAIN RURAL AREAS.

    Section 3122 of Public Law 111-148 is repealed and the provision of 
law amended by such section is restored as if such section had not been 
enacted.

SEC. 504. FUNDING FOR CLAIMS REPROCESSING.

    For purposes of carrying out the provisions of, and amendments made 
by, this Act that relate to title XVIII of the Social Security Act, and 
other provisions of such title that involve reprocessing of claims, 
there are appropriated to the Secretary of Health and Human Services 
for the Centers for Medicare & Medicaid Services Program Management 
Account, from amounts in the general fund of the Treasury not otherwise 
appropriated, $175,000,000. Amounts appropriated under the preceding 
sentence shall remain available until expended.

SEC. 505. MEDICAID AND CHIP TECHNICAL CORRECTIONS.

    (a) Repeal of Exclusion of Certain Individuals and Entities From 
Medicaid.--Section 6502 of Public Law 111-148 is repealed and the 
provisions of law amended by such section are restored as if such 
section had never been enacted. Nothing in the previous sentence shall 
affect the execution or placement of the insertion made by section 6503 
of such Act.
    (b) Income Level for Certain Children Under Medicaid.--Effective as 
if included in the enactment of Public Law 111-148, section 
2001(a)(5)(B) of such Act is amended by striking all that follows ``is 
amended'' and inserting the following: ``by inserting after `100 
percent' the following: `(or, beginning January 1, 2014, 133 
percent)'.''.
    (c) Calculation and Publication of Payment Error Rate Measurement 
for Certain Years.--Section 601(b) of the Children's Health Insurance 
Program Reauthorization Act of 2009 (Public Law 111-3) is amended by 
adding at the end the following: ``The Secretary is not required under 
this subsection to calculate or publish a national or a State-specific 
error rate for fiscal year 2009 or fiscal year 2010.''.
    (d) Corrections to Exceptions to Exclusion of Children of Certain 
Employees.--Section 2110(b)(6) of the Social Security Act (42 U.S.C. 
1397jj(b)(6)) is amended--
            (1) in subparagraph (B)--
                    (A) by striking ``per person'' in the heading; and
                    (B) by striking ``each employee'' and inserting 
                ``employees''; and
            (2) in subparagraph (C), by striking ``, on a case-by-case 
        basis,''.
    (e) Electronic Health Records.--Effective as if included in the 
enactment of section 4201(a)(2) of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5), section 1903(t) of the 
Social Security Act (42 U.S.C. 1396b(t)) is amended--
            (1) in paragraph (3)(E), by striking ``reduced by any 
        payment that is made to such Medicaid provider from any other 
        source (other than under this subsection or by a State or local 
        government)'' and inserting ``reduced by the average payment 
        the Secretary estimates will be made to such Medicaid providers 
        (determined on a percentage or other basis for such classes or 
        types of providers as the Secretary may specify) from other 
        sources (other than under this subsection, or by the Federal 
        government or a State or local government)''; and
            (2) in paragraph (6)(B), by inserting before the period the 
        following: ``and shall be determined to have met such 
        responsibility to the extent that the payment to the Medicaid 
        provider is not in excess of 85 percent of the net average 
        allowable cost''.
    (f) Native American Technical Correction.--Effective as if included 
in the enactment of the Patient Protection and Affordable Care Act 
(Public Law 111-148), section 1101(d)(2) of such Act (42 U.S.C. 
18001(d)(2)) is amended by inserting after ``of this Act'' the 
following: ``but applied without regard to subparagraph (F) of such 
section''.
    (g) Corrections of Designations.--
            (1) Section 1902 of the Social Security Act (42 U.S.C. 
        1396a) is amended--
                    (A) in subsection (a)(10), in the matter following 
                subparagraph (G), by striking ``and'' before ``(XVI) 
                the medical'' and by striking ``(XVI) if'' and 
                inserting ``(XVII) if''; and
                    (B) in subsection (ii)(2), by striking ``(XV)'' and 
                inserting ``(XVI)''.
            (2) Section 2107(e)(1) of the Social Security Act (42 
        U.S.C. 1397gg(e)(1)) is amended by redesignating the 
        subparagraph (N) of that section added by 2101(e) of Public Law 
        111-148 as subparagraph (O).

SEC. 506. ADDITION OF INPATIENT DRUG DISCOUNT PROGRAM TO 340B DRUG 
              DISCOUNT PROGRAM.

    (a) Addition of Inpatient Drug Discount.--Title III of the Public 
Health Service Act is amended by inserting after section 340B (42 
U.S.C. 256b) the following:

``SEC. 340B-1. DISCOUNT INPATIENT DRUGS FOR INDIVIDUALS WITHOUT 
              PRESCRIPTION DRUG COVERAGE.

    ``(a) Requirements for Agreements With the Secretary.--
            ``(1) In general.--
                    ``(A) Agreement.--The Secretary shall enter into an 
                agreement with each manufacturer of covered inpatient 
                drugs under which the amount required to be paid 
                (taking into account any rebate or discount, as 
                provided by the Secretary) to the manufacturer for 
                covered inpatient drugs (other than drugs described in 
                paragraph (3)) purchased by a covered entity on or 
                after January 1, 2011, does not exceed an amount equal 
                to the average manufacturer price for the drug under 
                title XIX of the Social Security Act in the preceding 
                calendar quarter, reduced by the rebate percentage 
                described in paragraph (2). For a covered inpatient 
                drug that also is a covered outpatient drug under 
                section 340B, the amount required to be paid under the 
                preceding sentence shall be equal to the amount 
                required to be paid under section 340B(a)(1) for such 
                drug. The agreement with a manufacturer under this 
                subparagraph may, at the discretion of the Secretary, 
                be included in the agreement with the same manufacturer 
                under section 340B.
                    ``(B) Ceiling price.--Each such agreement shall 
                require that the manufacturer furnish the Secretary 
                with reports, on a quarterly basis, of the price for 
                each covered inpatient drug subject to the agreement 
                that, according to the manufacturer, represents the 
                maximum price that covered entities may permissibly be 
                required to pay for the drug (referred to in this 
                section as the `ceiling price'), and shall require that 
                the manufacturer offer each covered entity covered 
                inpatient drugs for purchase at or below the applicable 
                ceiling price if such drug is made available to any 
                other purchaser at any price.
                    ``(C) Allocation method.--Each such agreement shall 
                require that, if the supply of a covered inpatient drug 
                is insufficient to meet demand, then the manufacturer 
                may use an allocation method that is reported in 
                writing to, and approved by, the Secretary and does not 
                discriminate on the basis of the price paid by covered 
                entities or on any other basis related to the 
                participation of an entity in the program under this 
                section.
            ``(2) Rebate percentage defined.--
                    ``(A) In general.--For a covered inpatient drug 
                purchased in a calendar quarter, the `rebate 
                percentage' is the amount (expressed as a percentage) 
                equal to--
                            ``(i) the average total rebate required 
                        under section 1927(c) of the Social Security 
                        Act (or the average total rebate that would be 
                        required if the drug were a covered outpatient 
                        drug under such section) with respect to the 
                        drug (for a unit of the dosage form and 
                        strength involved) during the preceding 
                        calendar quarter; divided by
                            ``(ii) the average manufacturer price for 
                        such a unit of the drug during such quarter.
                    ``(B) Over the counter drugs.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), in the case of over the 
                        counter drugs, the `rebate percentage' shall be 
                        determined as if the rebate required under 
                        section 1927(c) of the Social Security Act is 
                        based on the applicable percentage provided 
                        under section 1927(c)(3) of such Act.
                            ``(ii) Definition.--The term `over the 
                        counter drug' means a drug that may be sold 
                        without a prescription and which is prescribed 
                        by a physician (or other persons authorized to 
                        prescribe such drug under State law).
            ``(3) Drugs provided under state medicaid plans.--Drugs 
        described in this paragraph are drugs purchased by the entity 
        for which payment is made by the State under the State plan for 
        medical assistance under title XIX of the Social Security Act.
            ``(4) Requirements for covered entities.--
                    ``(A) Prohibiting duplicate discounts or rebates.--
                            ``(i) In general.--A covered entity shall 
                        not request payment under title XIX of the 
                        Social Security Act for medical assistance 
                        described in section 1905(a)(12) of such Act 
                        with respect to a covered inpatient drug that 
                        is subject to an agreement under this section 
                        if the drug is subject to the payment of a 
                        rebate to the State under section 1927 of such 
                        Act.
                            ``(ii) Establishment of mechanism.--The 
                        Secretary shall establish a mechanism to ensure 
                        that covered entities comply with clause (i). 
                        If the Secretary does not establish a mechanism 
                        under the previous sentence within 12 months of 
                        the enactment of this section, the requirements 
                        of section 1927(a)(5)(C) of the Social Security 
                        Act shall apply.
                            ``(iii) Prohibiting disclosure to group 
                        purchasing organizations.--In the event that a 
                        covered entity is a member of a group 
                        purchasing organization, such entity shall not 
                        disclose the price or any other information 
                        pertaining to any purchases under this section 
                        directly or indirectly to such group purchasing 
                        organization. Information pertaining to the 
                        price or to any purchases under this section 
                        does not include information about the safety 
                        and effectiveness characteristics of a covered 
                        inpatient drug.
                    ``(B) Prohibiting resale, dispensing, or 
                administration of drugs except to certain patients.--
                With respect to any covered inpatient drug that is 
                subject to an agreement under this subsection, a 
                covered entity shall not dispense, administer, resell, 
                or otherwise transfer the covered inpatient drug to a 
                person unless--
                            ``(i) such person is a patient who is an 
                        inpatient of the entity; and
                            ``(ii) such person does not have health 
                        plan coverage (as defined in subsection (c)(3)) 
                        that provides prescription drug coverage in the 
                        inpatient setting with respect to such covered 
                        inpatient drug.
                For purposes of clause (ii), a person shall be treated 
                as having health plan coverage (as defined in 
                subsection (c)(3)) with respect to a covered inpatient 
                drug if benefits are not payable under such coverage 
                with respect to such drug for reasons such as the 
                application of a deductible or cost sharing or the use 
                of utilization management.
                    ``(C) Auditing.--A covered entity shall permit the 
                Secretary and the manufacturer of a covered inpatient 
                drug that is subject to an agreement under this 
                subsection with the entity (acting in accordance with 
                procedures established by the Secretary relating to the 
                number, duration, and scope of audits) to audit at the 
                Secretary's or the manufacturer's expense the records 
                of the entity that directly pertain to the entity's 
                compliance with the requirements described in 
                subparagraph (A) or (B) with respect to drugs of the 
                manufacturer. The use or disclosure of information for 
                performance of such an audit shall be treated as a use 
                or disclosure required by law for purposes of section 
                164.512(a) of title 45, Code of Federal Regulations.
                    ``(D) Additional sanction for noncompliance.--If 
                the Secretary finds, after notice and hearing, that a 
                covered entity is in violation of a requirement 
                described in subparagraph (A) or (B), the covered 
                entity shall be liable to the manufacturer of the 
                covered inpatient drug that is the subject of the 
                violation in an amount equal to the reduction in the 
                price of the drug (as described in subparagraph (A)) 
                provided under the agreement between the Secretary and 
                the manufacturer under this subsection.
                    ``(E) Maintenance of records.--
                            ``(i) In general.--A covered entity shall 
                        establish and maintain an effective 
                        recordkeeping system to comply with this 
                        section and shall certify to the Secretary that 
                        such entity is in compliance with subparagraphs 
                        (A) and (B). The Secretary shall require that 
                        hospitals that purchase covered inpatient drugs 
                        for inpatient dispensing or administration 
                        under this subsection appropriately segregate 
                        inventory of such covered inpatient drugs, 
                        either physically or electronically, from drugs 
                        for outpatient use, as well as from drugs for 
                        inpatient dispensing or administration to 
                        individuals who have (for purposes of 
                        subparagraph (B)) health plan coverage 
                        described in clause (ii) of such subparagraph.
                            ``(ii) Certification of no third-party 
                        payer.--A covered entity shall maintain records 
                        that contain certification by the covered 
                        entity that no third party payment was received 
                        for any covered inpatient drug that is subject 
                        to an agreement under this subsection and that 
                        was dispensed to an inpatient.
            ``(5) Treatment of distinct units of hospitals.--In the 
        case of a covered entity that is a distinct part of a hospital, 
        the distinct part of the hospital shall not be considered a 
        covered entity under this subsection unless the hospital is 
        otherwise a covered entity under this subsection.
            ``(6) Notice to manufacturers.--The Secretary shall notify 
        manufacturers of covered inpatient drugs and single State 
        agencies under section 1902(a)(5) of the Social Security Act of 
        the identities of covered entities under this subsection, and 
        of entities that no longer meet the requirements of paragraph 
        (4), by means of timely updates of the Internet website 
        supported by the Department of Health and Human Services 
        relating to this section.
            ``(7) No prohibition on larger discount.--Nothing in this 
        subsection shall prohibit a manufacturer from charging a price 
        for a drug that is lower than the maximum price that may be 
        charged under paragraph (1).
    ``(b) Covered Entity Defined.--In this section, the term `covered 
entity' means an entity that meets the requirements described in 
subsection (a)(4) that has applied for and enrolled in the program 
described under this section and is one of the following:
            ``(1) A subsection (d) hospital (as defined in section 
        1886(d)(1)(B) of the Social Security Act) that--
                    ``(A) is owned or operated by a unit of State or 
                local government, is a public or private non-profit 
                corporation which is formally granted governmental 
                powers by a unit of State or local government, or is a 
                private nonprofit hospital which has a contract with a 
                State or local government to provide health care 
                services to low income individuals who are not entitled 
                to benefits under title XVIII of the Social Security 
                Act or eligible for assistance under the State plan for 
                medical assistance under title XIX of such Act; and
                    ``(B) for the most recent cost reporting period 
                that ended before the calendar quarter involved, had a 
                disproportionate share adjustment percentage (as 
                determined using the methodology under section 
                1886(d)(5)(F) of the Social Security Act as in effect 
                on the date of enactment of this section) greater than 
                20.20 percent or was described in section 
                1886(d)(5)(F)(i)(II) of such Act (as so in effect on 
                the date of enactment of this section).
            ``(2) A children's hospital excluded from the Medicare 
        prospective payment system pursuant to section 
        1886(d)(1)(B)(iii) of the Social Security Act that would meet 
        the requirements of paragraph (1), including the 
        disproportionate share adjustment percentage requirement under 
        subparagraph (B) of such paragraph, if the hospital were a 
        subsection (d) hospital as defined by section 1886(d)(1)(B) of 
        the Social Security Act.
            ``(3) A free-standing cancer hospital excluded from the 
        Medicare prospective payment system pursuant to section 
        1886(d)(1)(B)(v) of the Social Security Act that would meet the 
        requirements of paragraph (1), including the disproportionate 
        share adjustment percentage requirement under subparagraph (B) 
        of such paragraph, if the hospital were a subsection (d) 
        hospital as defined by section 1886(d)(1)(B) of the Social 
        Security Act.
            ``(4) An entity that is a critical access hospital (as 
        determined under section 1820(c)(2) of the Social Security 
        Act), and that meets the requirements of paragraph (1)(A).
            ``(5) An entity that is a rural referral center, as defined 
        by section 1886(d)(5)(C)(i) of the Social Security Act, or a 
        sole community hospital, as defined by section 
        1886(d)(5)(C)(iii) of such Act, and that both meets the 
        requirements of paragraph (1)(A) and has a disproportionate 
        share adjustment percentage equal to or greater than 8 percent.
    ``(c) Other Definitions.--In this section:
            ``(1) Average manufacturer price.--
                    ``(A) In general.--The term `average manufacturer 
                price'--
                            ``(i) has the meaning given such term in 
                        section 1927(k) of the Social Security Act, 
                        except that such term shall be applied under 
                        this section with respect to covered inpatient 
                        drugs in the same manner (as applicable) as 
                        such term is applied under such section 1927(k) 
                        with respect to covered outpatient drugs (as 
                        defined in such section); and
                            ``(ii) with respect to a covered inpatient 
                        drug for which there is no average manufacturer 
                        price (as defined in clause (i)), shall be the 
                        amount determined under regulations promulgated 
                        by the Secretary under subparagraph (B).
                    ``(B) Rulemaking.--The Secretary shall by 
                regulation, in consultation with the Administrator of 
                the Centers for Medicare & Medicaid Services, establish 
                a method for determining the average manufacturer price 
                for covered inpatient drugs for which there is no 
                average manufacturer price (as defined in subparagraph 
                (A)(i)). Regulations promulgated with respect to 
                covered inpatient drugs under the preceding sentence 
                shall provide for the application of methods for 
                determining the average manufacturer price that are the 
                same as the methods used to determine such price in 
                calculating rebates required for such drugs under an 
                agreement between a manufacturer and a State that 
                satisfies the requirements of section 1927(b) of the 
                Social Security Act, as applicable.
            ``(2) Covered inpatient drug.--
                    ``(A) In general.--The term `covered inpatient 
                drug' means a drug--
                            ``(i) that is described in section 
                        1927(k)(2) of the Social Security Act;
                            ``(ii) that notwithstanding paragraph 
                        (3)(A) of section 1927(k) of such Act, is 
                        prescribed or ordered in connection with an 
                        inpatient service provided by a covered entity 
                        that is enrolled in the drug discount program 
                        under this section and is provided prior to 
                        discharge; and
                            ``(iii) is not purchased by the covered 
                        entity through or under contract with a group 
                        purchasing organization.
                    ``(B) Rule of construction.--Nothing in this 
                paragraph shall be construed to affect the program 
                under section 340B.
            ``(3) Health plan coverage.--The term `health plan 
        coverage' means--
                    ``(A) health insurance coverage (as defined in 
                section 2791, and including coverage under a State 
                health benefits risk pool);
                    ``(B) coverage under a group health plan (as 
                defined in such section, and including coverage under a 
                church plan, a governmental plan, or a collectively 
                bargained plan);
                    ``(C) coverage under a Federal health care program 
                (as defined by section 1128B(f) of the Social Security 
                Act); or
                    ``(D) such other health benefits coverage as the 
                Secretary recognizes for purposes of this section.
            ``(4) Manufacturer.--The term `manufacturer' has the 
        meaning given such term in section 1927(k) of the Social 
        Security Act.
    ``(d) Program Integrity.--
            ``(1) Manufacturer compliance.--
                    ``(A) In general.--From amounts appropriated under 
                subsection (f), the Secretary shall provide for 
                improvements in compliance by manufacturers with the 
                requirements of this section in order to prevent 
                overcharges and other violations of the discounted 
                pricing requirements specified in this section.
                    ``(B) Improvements.--The improvements described in 
                subparagraph (A) shall include the following:
                            ``(i) The establishment of a process to 
                        enable the Secretary to verify the accuracy of 
                        ceiling prices calculated by manufacturers 
                        under subsection (a)(1) and charged to covered 
                        entities, which shall include the following:
                                    ``(I) Developing and publishing 
                                through an appropriate policy or 
                                regulatory issuance, precisely defined 
                                standards and methodology for the 
                                calculation of ceiling prices under 
                                such subsection.
                                    ``(II) Comparing regularly the 
                                ceiling prices calculated by the 
                                Secretary with the quarterly pricing 
                                data that is reported by manufacturers 
                                to the Secretary.
                                    ``(III) Conducting periodic 
                                monitoring of sales transactions by 
                                covered entities.
                                    ``(IV) Inquiring into any 
                                discrepancies between ceiling prices 
                                and manufacturer pricing data that may 
                                be identified and taking, or requiring 
                                manufacturers to take, corrective 
                                action in response to such 
                                discrepancies, including the issuance 
                                of refunds pursuant to the procedures 
                                set forth in clause (ii).
                            ``(ii) The establishment of procedures for 
                        manufacturers to issue refunds to covered 
                        entities in the event that there is an 
                        overcharge by the manufacturers, including the 
                        following:
                                    ``(I) Providing the Secretary with 
                                an explanation of why and how the 
                                overcharge occurred, how the refunds 
                                will be calculated, and to whom the 
                                refunds will be issued.
                                    ``(II) Oversight by the Secretary 
                                to ensure that the refunds are issued 
                                accurately and within a reasonable 
                                period of time.
                            ``(iii) The provision of access through the 
                        Internet website supported by the Department of 
                        Health and Human Services to the applicable 
                        ceiling prices for covered inpatient drugs as 
                        calculated and verified by the Secretary in 
                        accordance with this section, in a manner (such 
                        as through the use of password protection) that 
                        limits such access to covered entities and 
                        adequately assures security and protection of 
                        privileged pricing data from unauthorized re-
                        disclosure.
                            ``(iv) The development of a mechanism by 
                        which--
                                    ``(I) rebates, discounts, or other 
                                price concessions provided by 
                                manufacturers to other purchasers 
                                subsequent to the sale of covered 
                                inpatient drugs to covered entities are 
                                reported to the Secretary; and
                                    ``(II) appropriate credits and 
                                refunds are issued to covered entities 
                                if such discounts, rebates, or other 
                                price concessions have the effect of 
                                lowering the applicable ceiling price 
                                for the relevant quarter for the drugs 
                                involved.
                            ``(v) Selective auditing of manufacturers 
                        and wholesalers to ensure the integrity of the 
                        drug discount program under this section.
                            ``(vi) The establishment of a requirement 
                        that manufacturers and wholesalers use the 
                        identification system developed by the 
                        Secretary for purposes of facilitating the 
                        ordering, purchasing, and delivery of covered 
                        inpatient drugs under this section, including 
                        the processing of chargebacks for such drugs.
                            ``(vii) The imposition of sanctions in the 
                        form of civil monetary penalties, which--
                                    ``(I) shall be assessed according 
                                to standards and procedures established 
                                in regulations to be promulgated by the 
                                Secretary not later than January 1, 
                                2011;
                                    ``(II) shall not exceed $10,000 per 
                                single dosage form of a covered 
                                inpatient drug purchased by a covered 
                                entity where a manufacturer knowingly 
                                charges such covered entity a price for 
                                such drug that exceeds the ceiling 
                                price under subsection (a)(1); and
                                    ``(III) shall not exceed $100,000 
                                for each instance where a manufacturer 
                                withholds or provides materially false 
                                information to the Secretary or to 
                                covered entities under this section or 
                                knowingly violates any provision of 
                                this section (other than subsection 
                                (a)(1)).
            ``(2) Covered entity compliance.--
                    ``(A) In general.--From amounts appropriated under 
                subsection (f), the Secretary shall provide for 
                improvements in compliance by covered entities with the 
                requirements of this section in order to prevent 
                diversion and violations of the duplicate discount 
                provision and other requirements specified under 
                subsection (a)(4).
                    ``(B) Improvements.--The improvements described in 
                subparagraph (A) shall include the following:
                            ``(i) The development of procedures to 
                        enable and require covered entities to update 
                        at least annually the information on the 
                        Internet website supported by the Department of 
                        Health and Human Services relating to this 
                        section.
                            ``(ii) The development of procedures for 
                        the Secretary to verify the accuracy of 
                        information regarding covered entities that is 
                        listed on the website described in clause (i).
                            ``(iii) The development of more detailed 
                        guidance describing methodologies and options 
                        available to covered entities for billing 
                        covered inpatient drugs to State Medicaid 
                        agencies in a manner that avoids duplicate 
                        discounts pursuant to subsection (a)(4)(A).
                            ``(iv) The establishment of a single, 
                        universal, and standardized identification 
                        system by which each covered entity site and 
                        each covered entity's purchasing status under 
                        sections 340B and this section can be 
                        identified by manufacturers, distributors, 
                        covered entities, and the Secretary for 
                        purposes of facilitating the ordering, 
                        purchasing, and delivery of covered inpatient 
                        drugs under this section, including the 
                        processing of chargebacks for such drugs.
                            ``(v) The imposition of sanctions in the 
                        form of civil monetary penalties, which--
                                    ``(I) shall be assessed according 
                                to standards and procedures established 
                                in regulations promulgated by the 
                                Secretary; and
                                    ``(II) shall not exceed $10,000 for 
                                each instance where a covered entity 
                                knowingly violates subsection (a)(4)(B) 
                                or knowingly violates any other 
                                provision of this section.
                            ``(vi) The termination of a covered 
                        entity's participation in the program under 
                        this section, for a period of time to be 
                        determined by the Secretary, in cases in which 
                        the Secretary determines, in accordance with 
                        standards and procedures established by 
                        regulation, that--
                                    ``(I) the violation by a covered 
                                entity of a requirement of this section 
                                was repeated and knowing; and
                                    ``(II) imposition of a monetary 
                                penalty would be insufficient to 
                                reasonably ensure compliance with the 
                                requirements of this section.
                            ``(vii) The referral of matters, as 
                        appropriate, to the Food and Drug 
                        Administration, the Office of the Inspector 
                        General of the Department of Health and Human 
                        Services, or other Federal or State agencies.
            ``(3) Administrative dispute resolution process.--From 
        amounts appropriated under subsection (f), the Secretary may 
        establish and implement an administrative process for the 
        resolution of the following:
                    ``(A) Claims by covered entities that manufacturers 
                have violated the terms of their agreement with the 
                Secretary under subsection (a)(1).
                    ``(B) Claims by manufacturers that covered entities 
                have violated subsection (a)(4)(A) or (a)(4)(B).
    ``(e) Audit and Sanctions.--
            ``(1) Audit.--From amounts appropriated under subsection 
        (f), the Inspector General of the Department of Health and 
        Human Services (referred to in this subsection as the 
        `Inspector General') shall audit covered entities under this 
        section to verify compliance with criteria for eligibility and 
        participation under this section, including the antidiversion 
        prohibitions under subsection (a)(4)(B), and take enforcement 
        action or provide information to the Secretary who shall take 
        action to ensure program compliance, as appropriate. A covered 
        entity shall provide to the Inspector General, upon request, 
        records relevant to such audits.
            ``(2) Report.--For each audit conducted under paragraph 
        (1), the Inspector General shall prepare and publish in a 
        timely manner a report which shall include findings and 
        recommendations regarding--
                    ``(A) the appropriateness of covered entity 
                eligibility determinations and, as applicable, 
                certifications;
                    ``(B) the effectiveness of antidiversion 
                prohibitions; and
                    ``(C) the effectiveness of restrictions on 
                inpatient dispensing and administration.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2011 and each succeeding fiscal year.''.
    (b) Rulemaking.--Not later than January 1, 2011, the Secretary 
shall promulgate regulations implementing section 340B-1 of the Public 
Health Service Act (as added by subsection (a)).
    (c) Conforming Amendment to Section 340B.--Paragraph (1) of section 
340B(a) of the Public Health Service Act (42 U.S.C. 256b(a)) is amended 
by adding at the end the following: ``Such agreement shall further 
require that, if the supply of a covered outpatient drug is 
insufficient to meet demand, then the manufacturer may use an 
allocation method that is reported in writing to, and approved by, the 
Secretary and does not discriminate on the basis of the price paid by 
covered entities or on any other basis related to the participation of 
an entity in the program under this section. The agreement with a 
manufacturer under this paragraph may, at the discretion of the 
Secretary, be included in the agreement with the same manufacturer 
under section 340B-1.''.
    (d) Conforming Amendments to Medicaid.--Section 1927 of the Social 
Security Act (42 U.S.C. 1396r-8) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), in the first sentence, by 
                striking ``and paragraph (6)'' and inserting ``, 
                paragraph (6), and paragraph (8)''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(8) Limitation on prices of drugs purchased by 340b-1-
        covered entities.--
                    ``(A) Agreement with secretary.--A manufacturer 
                meets the requirements of this paragraph if the 
                manufacturer has entered into an agreement with the 
                Secretary that meets the requirements of section 340B-1 
                of the Public Health Service Act with respect to 
                covered inpatient drugs (as defined in such section) 
                purchased by a 340B-1-covered entity on or after 
                January 1, 2011.
                    ``(B) 340B-1-covered entity defined.--In this 
                subsection, the term `340B-1-covered entity' means an 
                entity described in section 340B-1(b) of the Public 
                Health Service Act.''; and
            (2) in subsection (c)(1)(C)(i)(I)--
                    (A) by striking ``or'' before ``a covered entity''; 
                and
                    (B) by inserting before the semicolon the 
                following: ``, or a covered entity for a covered 
                inpatient drug (as such terms are defined in section 
                340B-1of the Public Health Service Act)''.
    (e) Clarification of Effective Date.--The amendments made by 
paragraphs (1) through (3) of section 2302 of Public Law 111-152 shall 
be effective as if included in the enactment of Public Law 111-148.

SEC. 507. CONTINUED INCLUSION OF ORPHAN DRUGS IN DEFINITION OF COVERED 
              OUTPATIENT DRUGS WITH RESPECT TO CHILDREN'S HOSPITALS 
              UNDER THE 340B DRUG DISCOUNT PROGRAM.

    (a) Definition of Covered Outpatient Drug.--
            (1) Amendment.--Subsection (e) of section 340B of the 
        Public Health Service Act (42 U.S.C. 256b) is amended by 
        striking ``covered entities described in subparagraph (M)''and 
        inserting ``covered entities described in subparagraph (M) 
        (other than a children's hospital described in subparagraph 
        (M))''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect as if included in the enactment of section 
        2302 of the Health Care and Education Reconciliation Act of 
        2010 (Public Law 111-152).
    (b) Technical Amendment.--Subparagraph (B) of section 1927(a)(5) of 
the Social Security Act (42 U.S.C. 1396r-8(a)(5)) is amended by 
striking ``and a children's hospital'' and all that follows through the 
end of the subparagraph and inserting a period.

SEC. 508. CONFORMING AMENDMENT RELATED TO WAIVER OF COINSURANCE FOR 
              PREVENTIVE SERVICES.

    Effective as if included in section 10501(i)(2)(A) of Public Law 
111-148, section 1833(a)(3)(A) of the Social Security Act (42 U.S.C. 
1395l(a)(3)(A)) is amended by striking ``section 1861(s)(10)(A)'' and 
inserting ``section 1861(ddd)(3)''.

SEC. 509. CLARIFICATION OF EFFECTIVE DATE OF PART B SPECIAL ENROLLMENT 
              PERIOD FOR DISABLED TRICARE BENEFICIARIES.

    Effective as if included in the enactment of Public Law 111-148, 
section 3110(a)(2) of such Act is amended to read as follows:
            ``(2) Effective date.--The amendment made by paragraph (1) 
        shall apply to elections made after the date of the enactment 
        of this Act.''.

SEC. 510. ADJUSTMENT TO MEDICARE PAYMENT LOCALITIES.

    (a) In General.--Section 1848(e) of the Social Security Act (42 
U.S.C.1395w-4(e)) is amended by adding at the end the following new 
paragraph:
            ``(6) Transition to use of msas as fee schedule areas in 
        california.--
                    ``(A) In general.--
                            ``(i) Revision.--Subject to clause (ii) and 
                        notwithstanding the previous provisions of this 
                        subsection, for services furnished on or after 
                        January 1, 2012, the Secretary shall revise the 
                        fee schedule areas used for payment under this 
                        section applicable to the State of California 
                        using the Metropolitan Statistical Area (MSA) 
                        iterative Geographic Adjustment Factor 
                        methodology as follows:
                                    ``(I) The Secretary shall configure 
                                the physician fee schedule areas using 
                                the Metropolitan Statistical Areas 
                                (each in this paragraph referred to as 
                                an `MSA'), as defined by the Director 
                                of the Office of Management and Budget 
                                as of the date of the enactment of this 
                                paragraph, as the basis for the fee 
                                schedule areas.
                                    ``(II) For purposes of this clause, 
                                the Secretary shall treat all areas not 
                                included in an MSA as a single rest-of-
                                State MSA and any reference in this 
                                paragraph to an MSA shall be deemed to 
                                include a reference to such rest-of-
                                State MSA.
                                    ``(III) The Secretary shall list 
                                all MSAs within the State by Geographic 
                                Adjustment Factor described in 
                                paragraph (2) (in this paragraph 
                                referred to as a `GAF') in descending 
                                order.
                                    ``(IV) In the first iteration, the 
                                Secretary shall compare the GAF of the 
                                highest cost MSA in the State to the 
                                weighted-average GAF of all the 
                                remaining MSAs in the State. If the 
                                ratio of the GAF of the highest cost 
                                MSA to the weighted-average of the GAF 
                                of remaining lower cost MSAs is 1.05 or 
                                greater, the highest cost MSA shall be 
                                a separate fee schedule area.
                                    ``(V) In the next iteration, the 
                                Secretary shall compare the GAF of the 
                                MSA with the second-highest GAF to the 
                                weighted-average GAF of the all the 
                                remaining MSAs (excluding MSAs that 
                                become separate fee schedule areas). If 
                                the ratio of the second-highest MSA's 
                                GAF to the weighted-average of the 
                                remaining lower cost MSAs is 1.05 or 
                                greater, the second-highest MSA shall 
                                be a separate fee schedule area.
                                    ``(VI) The iterative process shall 
                                continue until the ratio of the GAF of 
                                the MSA with highest remaining GAF to 
                                the weighted-average of the remaining 
                                MSAs with lower GAFs is less than 1.05, 
                                and the remaining group of MSAs with 
                                lower GAFs shall be treated as a single 
                                rest-of-State fee schedule area.
                                    ``(VII) For purposes of the 
                                iterative process described in this 
                                clause, if two MSAs have identical 
                                GAFs, they shall be combined.
                            ``(ii) Transition.--For services furnished 
                        on or after January 1, 2012, and before January 
                        1, 2017, in the State of California, after 
                        calculating the work, practice expense, and 
                        malpractice geographic indices that would 
                        otherwise be determined under clauses (i), 
                        (ii), and (iii) of paragraph (1)(A) for a fee 
                        schedule area determined under clause (i), if 
                        the index for a county within a fee schedule 
                        area is less than the index that would 
                        otherwise be in effect for such county, the 
                        Secretary shall instead apply the index that 
                        would otherwise be in effect for such county.
                    ``(B) Subsequent revisions.--After the transition 
                described in subparagraph (A)(ii), not less than every 
                3 years the Secretary shall review and update the fee 
                schedule areas using the methodology described in 
                subparagraph (A)(i) and any updated MSAs as defined by 
                the Director of the Office of Management and Budget. 
                The Secretary shall review and make any changes 
                pursuant to such reviews concurrent with the 
                application of the periodic review of the adjustment 
                factors required under paragraph (1)(C) for California.
                    ``(C) References to fee schedule areas.--Effective 
                for services furnished on or after January 1, 2012, for 
                the State of California, any reference in this section 
                to a fee schedule area shall be deemed a reference to a 
                fee schedule area established in accordance with this 
                paragraph.''.
    (b) Conforming Amendment to Definition of Fee Schedule Area.--
Section 1848(j)(2) of the Social Security Act (42 U.S.C. 1395w(j)(2)) 
is amended by striking ``The term'' and inserting ``Except as provided 
in subsection (e)(6)(C), the term''.

SEC. 511. CLARIFICATION FOR AFFILIATED HOSPITALS FOR DISTRIBUTION OF 
              ADDITIONAL RESIDENCY POSITIONS.

    Effective as if included in the enactment of section 5503(a) of 
Public Law 111-148, section 1886(h)(8) of the Social Security Act (42 
U.S.C. 1395ww(h)(8)), as added by such section 5503(a), is amended by 
adding at the end the following new subparagraph:
                    ``(I) Affiliation.--The provisions of this 
                paragraph shall be applied to hospitals which are 
                members of the same affiliated group (as defined by the 
                Secretary under paragraph (4)(H)(ii)) and the reference 
                resident level for each such hospital shall be the 
                reference resident level with respect to the cost 
                reporting period that results in the smallest 
                difference between the reference resident level and the 
                otherwise applicable resident limit.''.

                       TITLE VI--OTHER PROVISIONS

                     Subtitle A--General Provisions

SEC. 601. ALLOCATION OF GEOTHERMAL RECEIPTS.

    Notwithstanding any other provision of law, for fiscal year 2010 
only, all funds received from sales, bonuses, royalties, and rentals 
under the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) shall 
be deposited in the Treasury, of which--
            (1) 50 percent shall be used by the Secretary of the 
        Treasury to make payments to States within the boundaries of 
        which the leased land and geothermal resources are located;
            (2) 25 percent shall be used by the Secretary of the 
        Treasury to make payments to the counties within the boundaries 
        of which the leased land or geothermal resources are located; 
        and
            (3) 25 percent shall be deposited in miscellaneous 
        receipts.

SEC. 602. EMPLOYMENT FOR YOUTH.

    There is appropriated, out of any funds in the Treasury not 
otherwise appropriated, for an additional amount for ``Department of 
Labor--Employment and Training Administration--Training and Employment 
Services'' for activities under the Workforce Investment Act of 1998 
(``WIA''), $1,000,000,000 shall be available for obligation on the date 
of enactment of this Act for grants to States for youth activities, 
including summer employment for youth: Provided, That no portion of 
such funds shall be reserved to carry out section 127(b)(1)(A) of the 
WIA: Provided further, That for purposes of section 127(b)(1)(C)(iv) of 
the WIA, funds available for youth activities shall be allotted as if 
the total amount available for youth activities in the fiscal year does 
not exceed $1,000,000,000: Provided further, That with respect to the 
youth activities provided with such funds, section 101(13)(A) of the 
WIA shall be applied by substituting ``age 24'' for ``age 21'': 
Provided further, That the work readiness performance indicator 
described in section 136(b)(2)(A)(ii)(I) of the WIA shall be the only 
measure of performance used to assess the effectiveness of summer 
employment for youth provided with such funds: Provided further, That 
an amount that is not more than 1 percent of such amount may be used 
for the administration, management, and oversight of the programs, 
activities, and grants carried out with such funds, including the 
evaluation of the use of such funds: Provided further, That funds 
available under the preceding proviso, together with funds described in 
section 801(a) of division A of the American Recovery and reinvestment 
Act of 2009 (Public Law 111-5), and funds provided in such Act under 
the heading ``Department of Labor-Departmental Management-Salaries and 
Expenses'', shall remain available for obligation through September 30, 
2011.

SEC. 603. HOUSING TRUST FUND.

    (a) Funding.--There is hereby appropriated for the Housing Trust 
Fund established pursuant to section 1338 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4568), $1,065,000,000, for use under such section: Provided, That of 
the total amount provided under this heading, $65,000,000 shall be 
available to the Secretary of Housing and Urban Development only for 
incremental project-based voucher assistance to be allocated to States 
to be used solely in conjunction with grant funds awarded under such 
section 1338, pursuant to the formula established under section 1338 
and taking into account different per unit subsidy needs among states, 
as determined by the Secretary.
    (b) Amendments.--Section 1338 of the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 (12 U.S.C. 4568) is 
amended--
            (1) in subsection (c)--
                    (A) in paragraph (4)(A) by inserting after the 
                period at the end the following: ``Notwithstanding any 
                other provision of law, for the fiscal year following 
                enactment of this sentence and thereafter, the 
                Secretary may make such notice available only on the 
                Internet at the appropriate government website or 
                websites or through other electronic media, as 
                determined by the Secretary.'';
                    (B) in paragraph (5)(C), by striking ``(8)'' and 
                inserting ``(9)''; and
                    (C) in paragraph (7)(A)--
                            (i) by striking ``section 1335(a)(2)(B)'' 
                        and inserting ``section 1335(a)(1)(B)''; and
                            (ii) by inserting ``the units funded 
                        under'' after ``75 percent of''; and
            (2) by adding at the end the following new subsection:
    ``(k) Environmental Review.--For the purpose of environmental 
compliance review, funds awarded under this section shall be subject to 
section 288 of the HOME Investment Partnerships Act (12 U.S.C. 12838) 
and shall be treated as funds under the program established by such 
Act.''.

SEC. 604. THE INDIVIDUAL INDIAN MONEY ACCOUNT LITIGATION SETTLEMENT ACT 
              OF 2010.

    (a) Short Title.--This section may be cited as the ``Individual 
Indian Money Account Litigation Settlement Act of 2010''.
    (b) Definitions.--In this section:
            (1) Amended complaint.--The term ``Amended Complaint'' 
        means the Amended Complaint attached to the Settlement.
            (2) Land consolidation program.--The term ``Land 
        Consolidation Program'' means a program conducted in accordance 
        with the Settlement and the Indian Land Consolidation Act (25 
        U.S.C. 2201 et seq.) under which the Secretary may purchase 
        fractional interests in trust or restricted land.
            (3) Litigation.--The term ``Litigation'' means the case 
        entitled Elouise Cobell et al. v. Ken Salazar et al., United 
        States District Court, District of Columbia, Civil Action No. 
        96-1285 (JR).
            (4) Plaintiff.--The term ``Plaintiff'' means a member of 
        any class certified in the Litigation.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (6) Settlement.--The term ``Settlement'' means the Class 
        Action Settlement Agreement dated December 7, 2009, in the 
        Litigation, as modified by the parties to the Litigation.
            (7) Trust administration class.--The term ``Trust 
        Administration Class'' means the Trust Administration Class as 
        defined in the Settlement.
    (c) Purpose.--The purpose of this section is to authorize the 
Settlement.
    (d) Authorization.--The Settlement is authorized, ratified, and 
confirmed.
    (e) Jurisdictional Provisions.--
            (1) In general.--Notwithstanding the limitation of 
        jurisdiction of district courts contained in section 1346(a)(2) 
        of title 28, United States Code, the United States District 
        Court for the District of Columbia shall have jurisdiction over 
        the claims asserted in the Amended Complaint for purposes of 
        the Settlement.
            (2) Certification of trust administration class.--
                    (A) In general.--Notwithstanding the requirements 
                of the Federal Rules of Civil Procedure, the court 
                overseeing the Litigation may certify the Trust 
                Administration Class.
                    (B) Treatment.--On certification under subparagraph 
                (A), the Trust Administration Class shall be treated as 
                a class under Federal Rule of Civil Procedure 23(b)(3) 
                for purposes of the Settlement.
    (f) Trust Land Consolidation.--
            (1) Trust land consolidation fund.--
                    (A) Establishment.--On final approval (as defined 
                in the Settlement) of the Settlement, there shall be 
                established in the Treasury of the United States a 
                fund, to be known as the ``Trust Land Consolidation 
                Fund''.
                    (B) Availability of amounts.--Amounts in the Trust 
                Land Consolidation Fund shall be made available to the 
                Secretary during the 10-year period beginning on the 
                date of final approval of the Settlement--
                            (i) to conduct the Land Consolidation 
                        Program; and
                            (ii) for other costs specified in the 
                        Settlement.
                    (C) Deposits.--
                            (i) In general.--On final approval (as 
                        defined in the Settlement) of the Settlement, 
                        the Secretary of the Treasury shall deposit in 
                        the Trust Land Consolidation Fund 
                        $2,000,000,000 of the amounts appropriated by 
                        section 1304 of title 31, United States Code.
                            (ii) Conditions met.--The conditions 
                        described in section 1304 of title 31, United 
                        States Code, shall be considered to be met for 
                        purposes of clause (i).
                    (D) Transfers.--In a manner designed to encourage 
                participation in the Land Consolidation Program, the 
                Secretary may transfer, at the discretion of the 
                Secretary, not more than $60,000,000 of amounts in the 
                Trust Land Consolidation Fund to the Indian Education 
                Scholarship Holding Fund established under paragraph 2.
            (2) Indian education scholarship holding fund.--
                    (A) Establishment.--On the final approval (as 
                defined in the Settlement) of the Settlement, there 
                shall be established in the Treasury of the United 
                States a fund, to be known as the ``Indian Education 
                Scholarship Holding Fund''.
                    (B) Availability.--Notwithstanding any other 
                provision of law governing competition, public 
                notification, or Federal procurement or assistance, 
                amounts in the Indian Education Scholarship Holding 
                Fund shall be made available, without further 
                appropriation, to the Secretary to contribute to an 
                Indian Education Scholarship Fund, as described in the 
                Settlement, to provide scholarships for Native 
                Americans.
            (3) Acquisition of trust or restricted land.--The Secretary 
        may acquire, at the discretion of the Secretary and in 
        accordance with the Land Consolidation Program, any fractional 
        interest in trust or restricted land.
            (4) Treatment of unlocatable plaintiffs.--A Plaintiff the 
        whereabouts of whom are unknown and who, after reasonable 
        efforts by the Secretary, cannot be located during the 5 year 
        period beginning on the date of final approval (as defined in 
        the Settlement) of the Settlement shall be considered to have 
        accepted an offer made pursuant to the Land Consolidation 
        Program.
    (g) Taxation and Other Benefits.--
            (1) Internal revenue code.--For purposes of the Internal 
        Revenue Code of 1986, amounts received by an individual Indian 
        as a lump sum or a periodic payment pursuant to the 
        Settlement--
                    (A) shall not be included in gross income; and
                    (B) shall not be taken into consideration for 
                purposes of applying any provision of the Internal 
                Revenue Code of 1986 that takes into account excludable 
                income in computing adjusted gross income or modified 
                adjusted gross income, including section 86 of that 
                Code (relating to Social Security and tier 1 railroad 
                retirement benefits).
            (2) Other benefits.--Notwithstanding any other provision of 
        law, for purposes of determining initial eligibility, ongoing 
        eligibility, or level of benefits under any Federal or 
        federally assisted program, amounts received by an individual 
        Indian as a lump sum or a periodic payment pursuant to the 
        Settlement shall not be treated for any household member, 
        during the 1-year period beginning on the date of receipt--
                    (A) as income for the month during which the 
                amounts were received; or
                    (B) as a resource.

SEC. 605. APPROPRIATION OF FUNDS FOR FINAL SETTLEMENT OF CLAIMS FROM IN 
              RE BLACK FARMERS DISCRIMINATION LITIGATION.

    (a) Definitions.--In this section:
            (1) Settlement agreement.--The term ``Settlement 
        Agreement'' means the settlement agreement dated February 18, 
        2010 (including any modifications agreed to by the parties and 
        approved by the court under that agreement) between certain 
        plaintiffs, by and through their counsel, and the Secretary of 
        Agriculture to resolve, fully and forever, the claims raised or 
        that could have been raised in the cases consolidated in In re 
        Black Farmers Discrimination Litigation, No. 08-511 (D.D.C.), 
        including Pigford claims asserted under section 14012 of the 
        Food, Conservation, and Energy Act of 2008 (Public Law 110-246; 
        122 Stat. 2209).
            (2) Pigford claim.--The term ``Pigford claim'' has the 
        meaning given that term in section 14012(a)(3) of the Food, 
        Conservation, and Energy Act of 2008 (Public Law 110-246; 122 
        Stat. 2210).
    (b) Appropriation of Funds.--There is hereby appropriated to the 
Secretary of Agriculture $1,150,000,000, to remain available until 
expended, to carry out the terms of the Settlement Agreement if the 
Settlement Agreement is approved by a court order that is or becomes 
final and nonappealable. The funds appropriated by this subsection are 
in addition to the $100,000,000 of funds of the Commodity Credit 
Corporation made available by section 14012(i) of the Food, 
Conservation, and Energy Act of 2008 (Public Law 110-246; 122 Stat. 
2212) and shall be available for obligation only after those Commodity 
Credit Corporation funds are fully obligated. If the Settlement 
Agreement is not approved as provided in this subsection, the 
$100,000,000 of funds of the Commodity Credit Corporation made 
available by section 14012(i) of the Food, Conservation, and Energy Act 
of 2008 shall be the sole funding available for Pigford claims.
    (c) Use of Funds.--The use of the funds appropriated by subsection 
(b) shall be subject to the express terms of the Settlement Agreement.
    (d) Treatment of Remaining Funds.--If any of the funds appropriated 
by subsection (b) are not obligated and expended to carry out the 
Settlement Agreement, the Secretary of Agriculture shall return the 
unused funds to the Treasury and may not make the unused funds 
available for any purpose related to section 14012 of the Food, 
Conservation, and Energy Act of 2008, for any other settlement 
agreement executed in In re Black Farmers Discrimination Litigation, 
No. 08-511 (D.D.C.), or for any other purpose.
    (e) Rules of Construction.--Nothing in this section shall be 
construed as requiring the United States, any of its officers or 
agencies, or any other party to enter into the Settlement Agreement or 
any other settlement agreement. Nothing in this section shall be 
construed as creating the basis for a Pigford claim.
    (f) Conforming Amendments.--Section 14012 of the Food, 
Conservation, and Energy Act of 2008 (Public Law 110-246; 122 Stat. 
2209) is amended--
            (1) in subsection (c)(1)--
                    (A) by striking ``subsection (h)'' and inserting 
                ``subsection (g)''; and
                    (B) by striking ``subsection (i)'' and inserting 
                ``subsection (h)'';
            (2) by striking subsection (e);
            (3) in subsection (g), by striking ``subsection (f)'' and 
        inserting ``subsection (e)'';
            (4) in subsection (i)--
                    (A) by striking ``(1) In general.--Of the funds'' 
                and inserting ``Of the funds''; and
                    (B) by striking paragraph (2);
            (5) by striking subsection (j); and
            (6) by redesignating subsections (f), (g), (h), (i), and 
        (k) as subsections (e), (f), (g), (h), and (i), respectively.

SEC. 606. EXPANSION OF ELIGIBILITY FOR CONCURRENT RECEIPT OF MILITARY 
              RETIRED PAY AND VETERANS' DISABILITY COMPENSATION TO 
              INCLUDE ALL CHAPTER 61 DISABILITY RETIREES REGARDLESS OF 
              DISABILITY RATING PERCENTAGE OR YEARS OF SERVICE.

    (a) Phased Expansion Concurrent Receipt.--Subsection (a) of section 
1414 of title 10, United States Code, is amended to read as follows:
    ``(a) Payment of Both Retired Pay and Disability Compensation.--
            ``(1) Payment of both required.--
                    ``(A) In general.--Subject to subsection (b), a 
                member or former member of the uniformed services who 
                is entitled for any month to retired pay and who is 
                also entitled for that month to veterans' disability 
                compensation for a qualifying service-connected 
                disability (in this section referred to as a `qualified 
                retiree') is entitled to be paid both for that month 
                without regard to sections 5304 and 5305 of title 38.
                    ``(B) Applicability of full concurrent receipt 
                phase-in requirement.--During the period beginning on 
                January 1, 2004, and ending on December 31, 2013, 
                payment of retired pay to a qualified retiree is 
                subject to subsection (c).
                    ``(C) Phase-in exception for 100 percent disabled 
                retirees.--The payment of retired pay is subject to 
                subsection (c) only during the period beginning on 
                January 1, 2004, and ending on December 31, 2004, in 
                the case of the following qualified retirees:
                            ``(i) A qualified retiree receiving 
                        veterans' disability compensation for a 
                        disability rated as 100 percent.
                            ``(ii) A qualified retiree receiving 
                        veterans' disability compensation at the rate 
                        payable for a 100 percent disability by reason 
                        of a determination of individual 
                        unemployability.
                    ``(D) Temporary phase-in exception for certain 
                chapter 61 disability retirees; termination.--Subject 
                to subsection (b), during the period beginning on 
                January 1, 2011, and ending on September 30, 2012, 
                subsection (c) shall not apply to a qualified retiree 
                described in subparagraph (B) or (C) of paragraph (2).
            ``(2) Qualifying service-connected disability defined.--In 
        this section:
                    ``(A) 50 percent rating threshold.--In the case of 
                a member or former member receiving retired pay under 
                any provision of law other than chapter 61 of this 
                title, or under chapter 61 with 20 years or more of 
                service otherwise creditable under section 1405 or 
                computed under section 12732 of this title, the term 
                `qualifying service-connected disability' means a 
                service-connected disability or combination of service-
                connected disabilities that is rated as not less than 
                50 percent disabling by the Secretary of Veterans 
                Affairs. However, during the period specified in 
                paragraph (1)(D), members or former members receiving 
                retired pay under chapter 61 with 20 years or more of 
                creditable service computed under section 12732 of this 
                title, but not otherwise entitled to retired pay under 
                any other provision of this title, shall qualify in 
                accordance with subparagraphs (B) and (C).
                    ``(B) Inclusion of members not otherwise entitled 
                to retired pay.--In the case of a member or former 
                member receiving retired pay under chapter 61 of this 
                title, but who is not otherwise entitled to retired pay 
                under any other provision of this title, the term 
                `qualifying service-connected disability' means a 
                service-connected disability or combination of service-
                connected disabilities that is rated by the Secretary 
                of Veterans Affairs at the disabling level specified in 
                one of the following clauses (which, subject to 
                paragraph (3), is effective on or after the date 
                specified in the applicable clause):
                            ``(i) January 1, 2011, rated 100 percent, 
                        or a rate payable at 100 percent by reason of 
                        individual unemployability or rated 90 percent.
                            ``(ii) January 1, 2012, rated 80 percent or 
                        70 percent.
                            ``(iii) January 1, 2013, rated 60 percent 
                        or 50 percent.
                    ``(C) Elimination of rating threshold.--In the case 
                of a member or former member receiving retired pay 
                under chapter 61 regardless of being otherwise eligible 
                for retirement, the term `qualifying service-connected 
                disability' means a service-connected disability or 
                combination of service-connected disabilities that is 
                rated by the Secretary of Veterans Affairs at the 
                disabling level specified in one of the following 
                clauses (which, subject to paragraph (3), is effective 
                on or after the date specified in the applicable 
                clause):
                            ``(i) January 1, 2014, rated 40 percent or 
                        30 percent.
                            ``(ii) January 1, 2015, any rating.
            ``(3) Limited duration.--Notwithstanding the effective date 
        specified in each clause of subparagraphs (B) and (C) of 
        paragraph (2), the clause--
                    ``(A) shall apply only if the termination date 
                specified in paragraph (1)(D) would occur during or 
                after the calendar year specified in the clause; and
                    ``(B) shall not apply beyond the termination date 
                specified in paragraph (1)(D).''.
    (b) Conforming Amendment to Special Rules for Chapter 61 Disability 
Retirees.--Subsection (b) of such section is amended to read as 
follows:
    ``(b) Special Rules for Chapter 61 Disability Retirees When 
Eligibility Has Been Established for Such Retirees.--
            ``(1) General reduction rule.--The retired pay of a member 
        retired under chapter 61 of this title is subject to reduction 
        under sections 5304 and 5305 of title 38, but only to the 
        extent that the amount of the members retired pay under chapter 
        61 of this title exceeds the amount of retired pay to which the 
        member would have been entitled under any other provision of 
        law based upon the member's service in the uniformed services 
        if the member had not been retired under chapter 61 of this 
        title.
            ``(2) Chapter 61 retirees not otherwise entitled to retired 
        pay.--
                    ``(A) Before termination date.--If a member with a 
                qualifying service-connected disability (as defined in 
                subsection (a)(2)) is retired under chapter 61 of this 
                title, but is not otherwise entitled to retired pay 
                under any other provision of this title, and the 
                termination date specified in subsection (a)(1)(D) has 
                not occurred, the retired pay of the member is subject 
                to reduction under sections 5304 and 5305 of title 38, 
                but only to the extent that the amount of the member's 
                retired pay under chapter 61 of this title exceeds the 
                amount equal to 2\1/2\ percent of the member's years of 
                creditable service multiplied by the member's retired 
                pay base under section 1406(b)(1) or 1407 of this 
                title, whichever is applicable to the member.
                    ``(B) After termination date.--Subsection (a) does 
                not apply to a member described in subparagraph (A) if 
                the termination date specified in subsection (a)(1)(D) 
                has occurred.''.
    (c) Conforming Amendment to Full Concurrent Receipt Phase-in.--
Subsection (c) of such section is amended by striking ``the second 
sentence of''.
    (d) Clerical Amendments.--
            (1) Section heading.--The heading of such section is 
        amended to read as follows:
``Sec. 1414. Concurrent receipt of retired pay and veterans' disability 
              compensation''.
            (2) Table of sections.--The table of sections at the 
        beginning of chapter 71 of such title is amended by striking 
        the item related to section 1414 and inserting the following 
        new item:

``1414. Concurrent receipt of retired pay and veterans' disability 
                            compensation.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2011.

SEC. 607. REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL PROGRAMS 
              AND FEDERALLY ASSISTED PROGRAMS.

    (a) In General.--Subchapter A of chapter 65 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL 
              PROGRAMS AND FEDERALLY ASSISTED PROGRAMS.

    ``(a) In General.--Notwithstanding any other provision of law, any 
refund (or advance payment with respect to a refundable credit) made to 
any individual under this title shall not be taken into account as 
income, and shall not be taken into account as resources for a period 
of 12 months from receipt, for purposes of determining the eligibility 
of such individual (or any other individual) for benefits or assistance 
(or the amount or extent of benefits or assistance) under any Federal 
program or under any State or local program financed in whole or in 
part with Federal funds.
    ``(b) Termination.--Subsection (a) shall not apply to any amount 
received after December 31, 2010.''.
    (b) Clerical Amendment.--The table of sections for such subchapter 
is amended by adding at the end the following new item:

``Sec. 6409. Refunds disregarded in the administration of Federal 
                            programs and federally assisted 
                            programs.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts received after December 31, 2009.

SEC. 608. QUALIFYING TIMBER CONTRACT OPTIONS.

    (a) Definitions.--In this section:
            (1) Qualifying contract.--The term ``qualifying contract'' 
        means a contract that has not been terminated by the Bureau of 
        Land Management for the sale of timber on lands administered by 
        the Bureau of Land Management that meets all of the following 
        criteria:
                    (A) The contract was awarded during the period 
                beginning on January 1, 2005, and ending on December 
                31, 2008.
                    (B) There is unharvested volume remaining for the 
                contract.
                    (C) The contract is not a salvage sale.
                    (D) The Secretary determined there is not an urgent 
                need to harvest under the contract due to deteriorating 
                timber conditions that developed after the award of the 
                contract.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Director of Bureau of Land 
        Management.
            (3) Timber purchaser.--The term ``timber purchaser'' means 
        the party to the qualifying contract for the sale of timber 
        from lands administered by the Bureau of Land Management.
    (b) Market-related Contract Extension Option.--Upon a timber 
purchaser's written request, the Secretary may make a one-time 
modification to the qualifying contract to add 3 years to the contract 
expiration date if the written request--
            (1) is received by the Secretary not later than 90 days 
        after the date of enactment of this Act; and
            (2) contains a provision releasing the United States from 
        all liability, including further consideration or compensation, 
        resulting from the modification under this subsection of the 
        term of a qualifying contract.
    (c) Reporting.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary shall submit to Congress a report 
detailing a plan and timeline to promulgate new regulations authorizing 
the Bureau of Land Management to extend timber contracts due to changes 
in market conditions.
    (d) Regulations.--Not later than 2 years after the date of the 
enactment of this Act, the Secretary shall promulgate new regulations 
authorizing the Bureau of Land Management to extend timber contracts 
due to changes in market conditions.
    (e) No Surrender of Claims.--This section shall not have the effect 
of surrendering any claim by the United States against any timber 
purchaser that arose under a timber sale contract, including a 
qualifying contract, before the date on which the Secretary adjusts the 
contract term under subsection (b).

SEC. 609. EXTENSION AND FLEXIBILITY FOR CERTAIN ALLOCATED SURFACE 
              TRANSPORTATION PROGRAMS.

    (a) Modification of Allocation Rules.--Section 411(d) of the 
Surface Transportation Extension Act of 2010 (Public Law 111-147; 124 
Stat. 80) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``1301, 1302,''; and
                            (ii) by striking ``1198, 1204,''; and
                    (B) in subparagraph (A)--
                            (i) in the matter preceding clause (i) by 
                        striking ``apportioned under sections 104(b) 
                        and 144 of title 23, United States Code,'' and 
                        inserting ``specified in section 105(a)(2) of 
                        title 23, United States Code (except the high 
                        priority projects program),''; and
                            (ii) in clause (ii) by striking 
                        ``apportioned under such sections of such 
                        Code'' and inserting ``specified in such 
                        section 105(a)(2) (except the high priority 
                        projects program)'';
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``1301, 1302,''; and
                            (ii) by striking ``1198, 1204,''; and
                    (B) in subparagraph (A)--
                            (i) in the matter preceding clause (i) by 
                        striking ``apportioned under sections 104(b) 
                        and 144 of title 23, United States Code,'' and 
                        inserting ``specified in section 105(a)(2) of 
                        title 23, United States Code (except the high 
                        priority projects program),''; and
                            (ii) in clause (ii) by striking 
                        ``apportioned under such sections of such 
                        Code'' and inserting ``specified in such 
                        section 105(a)(2) (except the high priority 
                        projects program)''; and
            (3) by adding at the end the following:
            ``(5) Projects of national and regional significance and 
        national corridor infrastructure improvement programs.--
                    ``(A) Redistribution among states.--Notwithstanding 
                sections 1301(m) and 1302(e) of SAFETEA-LU (119 Stat. 
                1202 and 1205), the Secretary shall apportion funds 
                authorized to be appropriated under subsection (b) for 
                the projects of national and regional significance 
                program and the national corridor infrastructure 
                improvement program among all States such that each 
                State's share of the funds so apportioned is equal to 
                the State's share for fiscal year 2009 of funds 
                apportioned or allocated for the programs specified in 
                section 105(a)(2) of title 23, United States Code.
                    ``(B) Distribution among programs.--Funds 
                apportioned to a State pursuant to subparagraph (A) 
                shall be--
                            ``(i) made available to the State for the 
                        programs specified in section 105(a)(2) of 
                        title 23, United States Code (except the high 
                        priority projects program), and in the same 
                        proportion for each such program that--
                                    ``(I) the amount apportioned to the 
                                State for that program for fiscal year 
                                2009; bears to
                                    ``(II) the amount apportioned to 
                                the State for fiscal year 2009 for all 
                                such programs; and
                            ``(ii) administered in the same manner and 
                        with the same period of availability as funding 
                        is administered under programs identified in 
                        clause (i).''.
    (b) Expenditure Authority From Highway Trust Fund.--Paragraph (1) 
of section 9503(c) of the Internal Revenue Code of 1986 is amended by 
striking ``Surface Transportation Extension Act of 2010'' and inserting 
``Job Creation and Tax Cuts Act of 2010''.
    (c) Effective Date.--The amendments made by this section shall take 
effect upon the date of enactment of the Surface Transportation 
Extension Act of 2010 (Public Law 111-147; 124 Stat. 78 et seq.) and 
shall be treated as being included in that Act at the time of the 
enactment of that Act.
    (d) Savings Clause.--
            (1) In general.--For fiscal year 2010 and for the period 
        beginning on October 1, 2010, and ending on December 31, 2010, 
        the amount of funds apportioned to each State under section 
        411(d) of the Surface Transportation Extension Act of 2010 
        (Public Law 111-147) that is determined by the amount that the 
        State received or was authorized to receive for fiscal year 
        2009 to carry out the projects of national and regional 
        significance program and national corridor infrastructure 
        improvement program shall be the greater of--
                    (A) the amount that the State was authorized to 
                receive under section 411(d) of the Surface 
                Transportation Extension Act of 2010 with respect to 
                each such program according to the provisions of that 
                Act, as in effect on the day before the date of 
                enactment of this Act; or
                    (B) the amount that the State is authorized to 
                receive under section 411(d) of the Surface 
                Transportation Extension Act of 2010 with respect to 
                each such program pursuant to the provisions of that 
                Act, as amended by the amendments made by this section.
            (2) Obligation authority.--For fiscal year 2010, the amount 
        of obligation authority distributed to each State shall be the 
        greater of--
                    (A) the amount that the State was authorized to 
                receive pursuant to section 120(a)(4)(A) (as it 
                pertains to the Appalachian Development Highway System 
                program) of title I of division A of the Consolidated 
                Appropriations Act, 2010 (Public Law 111-117) and 
                sections 120(a)(4)(B) and 120(a)(6) of such title, as 
                of the day before the date of enactment of this Act; or
                    (B) the amount that the State is authorized to 
                receive pursuant to section 120(a)(4)(A) (as it 
                pertains to the Appalachian Development Highway System 
                program) of title I of division A of the Consolidated 
                Appropriations Act, 2010 (Public Law 111-117) and 
                sections 120(a)(4)(B) and 120(a)(6) of such title, as 
                of the date of enactment of this Act.
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated out of the Highway Trust Fund (other than 
        the Mass Transit Account) such sums as may be necessary to 
        carry out this subsection.
            (4) Increase in obligation limitation.--The limitation 
        under the heading ``Federal-aid Highways (Limitation on 
        Obligations) (Highway Trust Fund)'' in Public Law 111-117 is 
        increased by such sums as may be necessary to carry out this 
        subsection.
            (5) Contract authority.--Funds made available to carry out 
        this subsection shall be available for obligation and 
        administered in the same manner as if such funds were 
        apportioned under chapter 1 of title 23, United States Code.
            (6) Amounts.--The dollar amount specified in section 
        105(d)(1) of title 23, United States Code, the dollar amount 
        specified in section 120(a)(4)(B) of title I of division A of 
        the Consolidated Appropriations Act, 2010 (Public Law 111-117), 
        and the dollar amount specified in section 120(b)(10) of such 
        title shall each be increased as necessary to carry out this 
        subsection.

SEC. 610. COMMUNITY COLLEGE AND CAREER TRAINING GRANT PROGRAM.

    (a) In General.--Section 278(a) of the Trade Act of 1974 (19 U.S.C. 
2372(a)) is amended by adding at the end the following:
            ``(3) Rule of construction.--For purposes of this section, 
        any reference to `workers', `workers eligible for training 
        under section 236', or any other reference to workers under 
        this section shall be deemed to include individuals who are, or 
        are likely to become, eligible for unemployment compensation as 
        defined in section 85(b) of the Internal Revenue Code of 1986, 
        or who remain unemployed after exhausting all rights to such 
        compensation.''.
    (b) Definition of Eligible Institution.--Section 278(b)(1) of the 
Trade Act of 1974 (19 U.S.C. 2372(b)(1)) is amended--
            (1) by striking ``section 102'' and inserting ``section 
        101(a)''; and
            (2) by striking ``1002'' and inserting ``1001(a)''.
    (c) Authorization of Appropriations.--Section 279 of the Trade Act 
of 1974 (19 U.S.C. 2372a) is amended--
            (1) in subsection (a), by striking the last sentence; and
            (2) by adding at the end the following:
    ``(c) Administrative and Related Costs.--The Secretary may retain 
not more than 5 percent of the funds appropriated under subsection (b) 
for each fiscal year to administer, evaluate, and establish reporting 
systems for the Community College and Career Training Grant program 
under section 278.
    ``(d) Supplement Not Supplant.--Funds appropriated under subsection 
(b) shall be used to supplement and not supplant other Federal, State, 
and local public funds expended to support community college and career 
training programs.
    ``(e) Availability.--Funds appropriated under subsection (b) shall 
remain available for the fiscal year for which the funds are 
appropriated and the subsequent fiscal year.''.

SEC. 611. EXTENSIONS OF DUTY SUSPENSIONS ON COTTON SHIRTING FABRICS AND 
              RELATED PROVISIONS.

    (a) Extensions.--Each of the following headings of the Harmonized 
Tariff Schedule of the United States is amended by striking the date in 
the effective date column and inserting ``12/31/2013'':
            (1) Heading 9902.52.08 (relating to woven fabrics of 
        cotton).
            (2) Heading 9902.52.09 (relating to woven fabrics of 
        cotton).
            (3) Heading 9902.52.10 (relating to woven fabrics of 
        cotton).
            (4) Heading 9902.52.11 (relating to woven fabrics of 
        cotton).
            (5) Heading 9902.52.12 (relating to woven fabrics of 
        cotton).
            (6) Heading 9902.52.13 (relating to woven fabrics of 
        cotton).
            (7) Heading 9902.52.14 (relating to woven fabrics of 
        cotton).
            (8) Heading 9902.52.15 (relating to woven fabrics of 
        cotton).
            (9) Heading 9902.52.16 (relating to woven fabrics of 
        cotton).
            (10) Heading 9902.52.17 (relating to woven fabrics of 
        cotton).
            (11) Heading 9902.52.18 (relating to woven fabrics of 
        cotton).
            (12) Heading 9902.52.19 (relating to woven fabrics of 
        cotton).
            (13) Heading 9902.52.20 (relating to woven fabrics of 
        cotton).
            (14) Heading 9902.52.21 (relating to woven fabrics of 
        cotton).
            (15) Heading 9902.52.22 (relating to woven fabrics of 
        cotton).
            (16) Heading 9902.52.23 (relating to woven fabrics of 
        cotton).
            (17) Heading 9902.52.24 (relating to woven fabrics of 
        cotton).
            (18) Heading 9902.52.25 (relating to woven fabrics of 
        cotton).
            (19) Heading 9902.52.26 (relating to woven fabrics of 
        cotton).
            (20) Heading 9902.52.27 (relating to woven fabrics of 
        cotton).
            (21) Heading 9902.52.28 (relating to woven fabrics of 
        cotton).
            (22) Heading 9902.52.29 (relating to woven fabrics of 
        cotton).
            (23) Heading 9902.52.30 (relating to woven fabrics of 
        cotton).
            (24) Heading 9902.52.31 (relating to woven fabrics of 
        cotton).
    (b) Extension of Duty Refunds and Pima Cotton Trust Fund; 
Modification of Affidavit Requirements.--Section 407 of title IV of 
division C of the Tax Relief and Health Care Act of 2006 (Public Law 
109-432; 120 Stat. 3060) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``amounts 
                determined by the Secretary'' and all that follows 
                through ``5208.59.80'' and inserting ``amounts received 
                in the general fund that are attributable to duties 
                received since January 1, 2004, on articles classified 
                under heading 5208''; and
                    (B) in paragraph (2), by striking ``October 1, 
                2008'' and inserting ``December 31, 2013'';
            (2) in subsection (d)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``annually'' after ``provided''; and
                    (B) in paragraph (1), by inserting ``during the 
                year in which the affidavit is filed and'' after 
                ``imported cotton fabric''; and
            (3) in subsection (f)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``annually'' after ``provided''; and
                    (B) in paragraph (1), by inserting ``during the 
                year in which the affidavit is filed and'' after 
                ``United States''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and apply with respect 
to affidavits filed on or after such date of enactment.

SEC. 612. MODIFICATION OF WOOL APPAREL MANUFACTURERS TRUST FUND.

    (a) In General.--Section 4002(c)(2)(A) of the Miscellaneous Trade 
and Technical Corrections Act of 2004 (Public Law 108-429; 118 Stat. 
2600) is amended by striking ``chapter 51'' and inserting ``chapter 
62''.
    (b) Full Restoration of Payment Levels in Fiscal Year 2010.--
            (1) Transfer of amounts.--
                    (A) In general.--Not later than 30 days after the 
                date of the enactment of this Act, the Secretary of the 
                Treasury shall transfer to the Wool Apparel 
                Manufacturers Trust Fund, out of the general fund of 
                the Treasury of the United States, amounts determined 
                by the Secretary of the Treasury to be equivalent to 
                amounts received in the general fund that are 
                attributable to the duty received on articles 
                classified under chapter 62 of the Harmonized Tariff 
                Schedule of the United States, subject to the 
                limitation in subparagraph (B).
                    (B) Limitation.--The Secretary of the Treasury 
                shall not transfer more than the amount determined by 
                the Secretary to be necessary for--
                            (i) U.S. Customs and Border Protection to 
                        make payments to eligible manufacturers under 
                        section 4002(c)(3) of the Miscellaneous Trade 
                        and Technical Corrections Act of 2004 so that 
                        the amount of such payments, when added to any 
                        other payments made to eligible manufacturers 
                        under section 4002(c)(3) of such Act for 
                        calendar year 2010, equal the total amount of 
                        payments authorized to be provided to eligible 
                        manufacturers under section 4002(c)(3) of such 
                        Act for calendar year 2010; and
                            (ii) the Secretary of Commerce to provide 
                        grants to eligible manufacturers under section 
                        4002(c)(6) of the Miscellaneous Trade and 
                        Technical Corrections Act of 2004 so that the 
                        amounts of such grants, when added to any other 
                        grants made to eligible manufacturers under 
                        section 4002(c)(6) of such Act for calendar 
                        year 2010, equal the total amount of grants 
                        authorized to be provided to eligible 
                        manufacturers under section 4002(c)(6) of such 
                        Act for calendar year 2010.
            (2) Payment of amounts.--U.S. Customs and Border Protection 
        shall make payments described in paragraph (1) to eligible 
        manufacturers not later than 30 days after such transfer of 
        amounts from the general fund of the Treasury of the United 
        States to the Wool Apparel Manufacturers Trust Fund. The 
        Secretary of Commerce shall promptly provide grants described 
        in paragraph (1) to eligible manufacturers after such transfer 
        of amounts from the general fund of the Treasury of the United 
        States to the Wool Apparel Manufacturers Trust Fund.
    (c) Rule of Construction.--The amendment made by subsection (a) 
shall not be construed to affect the availability of amounts 
transferred to the Wool Apparel Manufacturers Trust Fund before the 
date of the enactment of this Act.

SEC. 613. DEPARTMENT OF COMMERCE STUDY.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary of Commerce shall report to Congress detailing--
            (1) the pattern of job loss in the New England, Mid-
        Atlantic, and Midwest States over the past 20 years;
            (2) the role of the off-shoring of manufacturing jobs in 
        overall job loss in the regions; and
            (3) recommendations to attract industries and bring jobs to 
        the region.

SEC. 614. ARRA PLANNING AND REPORTING.

    Section 1512 of the American Recovery and Reinvestment Act of 2009 
(Public Law 111-5; 123 Stat. 287) is amended--
            (1) in subsection (d)--
                    (A) in the subsection heading, by inserting ``Plans 
                and'' after ``Agency'';
                    (B) by striking ``Not later than'' and inserting 
                the following:
            ``(1) Definition.--In this subsection, the term `covered 
        program' means a program for which funds are appropriated under 
        this division--
                    ``(A) in an amount that is--
                            ``(i) more than $2,000,000,000; and
                            ``(ii) more than 150 percent of the funds 
                        appropriated for the program for fiscal year 
                        2008; or
                    ``(B) that did not exist before the date of 
                enactment of this Act.
            ``(2) Plans.--Not later than July 1, 2010, the head of each 
        agency that distributes recovery funds shall submit to Congress 
        and make available on the website of the agency a plan for each 
        covered program, which shall, at a minimum, contain--
                    ``(A) a description of the goals for the covered 
                program using recovery funds;
                    ``(B) a discussion of how the goals described in 
                subparagraph (A) relate to the goals for ongoing 
                activities of the covered program, if applicable;
                    ``(C) a description of the activities that the 
                agency will undertake to achieve the goals described in 
                subparagraph (A);
                    ``(D) a description of the total recovery funding 
                for the covered program and the recovery funding for 
                each activity under the covered program, including 
                identifying whether the activity will be carried out 
                using grants, contracts, or other types of funding 
                mechanisms;
                    ``(E) a schedule of milestones for major phases of 
                the activities under the covered program, with planned 
                delivery dates;
                    ``(F) performance measures the agency will use to 
                track the progress of each of the activities under the 
                covered program in meeting the goals described in 
                subparagraph (A), including performance targets, the 
                frequency of measurement, and a description of the 
                methodology for each measure;
                    ``(G) a description of the process of the agency 
                for the periodic review of the progress of the covered 
                program towards meeting the goals described in 
                subparagraph (A); and
                    ``(H) a description of how the agency will hold 
                program managers accountable for achieving the goals 
                described in subparagraph (A).
            ``(3) Reports.--
                    ``(A) In general.--Not later than''; and
                    (C) by adding at the end the following:
                    ``(B) Reports on plans.--Not later than 30 days 
                after the end of the calendar quarter ending September 
                30, 2010, and every calendar quarter thereafter during 
                which the agency obligates or expends recovery funds, 
                the head of each agency that developed a plan for a 
                covered program under paragraph (2) shall submit to 
                Congress and make available on a website of the agency 
                a report for each covered program that--
                            ``(i) discusses the progress of the agency 
                        in implementing the plan;
                            ``(ii) describes the progress towards 
                        achieving the goals described in paragraph 
                        (2)(A) for the covered program;
                            ``(iii) discusses the status of each 
                        activity carried out under the covered program, 
                        including whether the activity is completed;
                            ``(iv) details the unobligated and 
                        unexpired balances and total obligations and 
                        outlays under the covered program;
                            ``(v) discusses--
                                    ``(I) whether the covered program 
                                has met the milestones for the covered 
                                program described in paragraph (2)(E);
                                    ``(II) if the covered program has 
                                failed to meet the milestones, the 
                                reasons why; and
                                    ``(III) any changes in the 
                                milestones for the covered program, 
                                including the reasons for the change;
                            ``(vi) discusses the performance of the 
                        covered program, including--
                                    ``(I) whether the covered program 
                                has met the performance measures for 
                                the covered program described in 
                                paragraph (2)(F);
                                    ``(II) if the covered program has 
                                failed to meet the performance 
                                measures, the reasons why; and
                                    ``(III) any trends in information 
                                relating to the performance of the 
                                covered program; and
                            ``(vii) evaluates the ability of the 
                        covered program to meet the goals of the 
                        covered program given the performance of the 
                        covered program.'';
            (2) in subsection (f)--
                    (A) by striking ``Within 180 days'' and inserting 
                the following:
            ``(1) In general.--Within 180 days''; and
                    (B) by adding at the end the following:
            ``(2) Penalties.--
                    ``(A) In general.--Subject to subparagraphs (B), 
                (C), and (D), the Attorney General may bring a civil 
                action in an appropriate United States district court 
                against a recipient of recovery funds from an agency 
                that does not provide the information required under 
                subsection (c) or knowingly provides information under 
                subsection (c) that contains a material omission or 
                misstatement. In a civil action under this paragraph, 
                the court may impose a civil penalty on a recipient of 
                recovery funds in an amount not more than $250,000. Any 
                amounts received from a civil penalty under this 
                paragraph shall be deposited in the general fund of the 
                Treasury.
                    ``(B) Notification.--
                            ``(i) In general.--The head of an agency 
                        shall provide a written notification to a 
                        recipient of recovery funds from the agency 
                        that fails to provide the information required 
                        under subsection (c). A notification under this 
                        subparagraph shall provide the recipient with 
                        information on how to comply with the necessary 
                        reporting requirements and notice of the 
                        penalties for failing to do so.
                            ``(ii) Limitation.--A court may not impose 
                        a civil penalty under subparagraph (A) relating 
                        to the failure to provide information required 
                        under subsection (c) if, not later than 31 days 
                        after the date of the notification under clause 
                        (i), the recipient of the recovery funds 
                        provides the information.
                    ``(C) Considerations.--In determining the amount of 
                a penalty under this paragraph for a recipient of 
                recovery funds, a court shall consider--
                            ``(i) the number of times the recipient has 
                        failed to provide the information required 
                        under subsection (c);
                            ``(ii) the amount of recovery funds 
                        provided to the recipient;
                            ``(iii) whether the recipient is a 
                        government, nonprofit entity, or educational 
                        institution; and
                            ``(iv) whether the recipient is a small 
                        business concern (as defined under section 3 of 
                        the Small Business Act (15 U.S.C. 632)), with 
                        particular consideration given to businesses 
                        with not more than 50 employees.
                    ``(D) Applicability.--This paragraph shall apply to 
                any report required to be submitted on or after the 
                date of enactment of this paragraph.
                    ``(E) Nonexclusivity.--The imposition of a civil 
                penalty under this subsection shall not preclude any 
                other criminal, civil, or administrative remedy 
                available to the United States or any other person 
                under Federal or State law.
            ``(3) Technical assistance.--Each agency distributing 
        recovery funds shall provide technical assistance, as 
        necessary, to assist recipients of recovery funds in complying 
        with the requirements to provide information under subsection 
        (c), which shall include providing recipients with a reminder 
        regarding each reporting requirement.
            ``(4) Public listing.--
                    ``(A) In general.--Not later than 45 days after the 
                end of each calendar quarter, and subject to the 
                notification requirements under paragraph (2)(B), the 
                Board shall make available on the website established 
                under section 1526 a list of all recipients of recovery 
                funds that did not provide the information required 
                under subsection (c) for the calendar quarter.
                    ``(B) Contents.--A list made available under 
                subparagraph (A) shall, for each recipient of recovery 
                funds on the list, include the name and address of the 
                recipient, the identification number for the award, the 
                amount of recovery funds awarded to the recipient, a 
                description of the activity for which the recovery 
                funds were provided, and, to the extent known by the 
                Board, the reason for noncompliance.
            ``(5) Regulations and reporting.--
                    ``(A) Regulations.--Not later than 90 days after 
                the date of enactment of this paragraph, the Attorney 
                General, in consultation with the Director of the 
                Office of Management and Budget and the Chairperson, 
                shall promulgate regulations regarding implementation 
                of this section.
                    ``(B) Reporting.--
                            ``(i) In general.--Not later than July 1, 
                        2010, and every 3 months thereafter, the 
                        Director of the Office of Management and 
                        Budget, in consultation with the Chairperson, 
                        shall submit to Congress a report on the extent 
                        of noncompliance by recipients of recovery 
                        funds with the reporting requirements under 
                        this section.
                            ``(ii) Contents.--Each report submitted 
                        under clause (i) shall include--
                                    ``(I) information, for the quarter 
                                and in total, regarding the number and 
                                amount of civil penalties imposed and 
                                collected under this subsection, sorted 
                                by agency and program;
                                    ``(II) information on the steps 
                                taken by the Federal Government to 
                                reduce the level of noncompliance; and
                                    ``(III) any other information 
                                determined appropriate by the 
                                Director.''; and
            (3) by adding at the end the following:
    ``(i) Termination.--The reporting requirements under this section 
shall terminate on September 30, 2013.''.

SEC. 615. SURETY BONDS.

    Section 508(f) of division A of the American Recovery and 
Reinvestment Act of 2009 (15 U.S.C. 694a note) is repealed.

SEC. 616. FUNDING FOR DEPLOYMENT OF RENEWABLE ENERGY, ENERGY 
              EFFICIENCY, AND ELECTRIC POWER TRANSMISSION PROJECTS.

    Section 1703 of the Energy Policy Act of 2005 (42 U.S.C. 16513) is 
amended--
            (1) in paragraph (1) by striking ``The Secretary'' and 
        inserting ``Except as provided in subsection (f), the 
        Secretary'';
            ``(2) by adding at the end the following:
    ``(f) Authorization for Credit Subsidy.--
            ``(1) In general.--The Secretary may make guarantees under 
        this section for the following categories of projects:
                    ``(A) Renewable energy systems, including 
                incremental hydropower, that generate electricity or 
                thermal energy.
                    ``(B) Electric power transmission systems, 
                including upgrading and reconductoring projects.
                    ``(C) Leading edge biofuel projects that will use 
                technologies performing at the pilot- or demonstration-
                scale that the Secretary determines are likely to 
                become commercial technologies and will produce 
                transportation fuels that substantially reduce life-
                cycle greenhouse gas emissions compared to other 
                transportation fuels.
                    ``(D) Energy efficiency projects, including 
                projects to retrofit residential, commercial, and 
                industrial buildings, facilities, and equipment.
                    ``(E) Facilities that manufacture components 
                related to the categories of projects in subparagraphs 
                (A) through (D).
            ``(2) Multiple applications.--Notwithstanding any other 
        provision of law (including under part 609.3(a) of title 10, 
        Code of Federal Regulations, or sucsessor regulations), a 
        project applicant or sponsor of an eligible project may submit 
        an application for more than 1 eligible project under this 
        subsection.
            ``(3) Funding.--From amounts in the Treasury not otherwise 
        appropriated, there is appropriated for the cost of guaranteed 
        loans authorized by this subsection $1,500,000,000, to remain 
        available until expended.''.

          Subtitle B--Extension of Trade Adjustment Assistance

SEC. 621. SHORT TITLE.

    This subtitle may be cited as the ``Trade Adjustment Assistance 
Extension Act of 2010''.

SEC. 622. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE.

    (a) In General.--Section 1893 of the Trade and Globalization 
Adjustment Assistance Act of 2009 (Public Law 111-5; 123 Stat. 422) is 
amended by striking ``2011'' each place it appears and inserting 
``2012''.
    (b) Conforming Amendments.--
            (1) Section 236(a)(2)(A) of the Trade Act of 1974 (19 
        U.S.C. 2296(a)(2)(A)) is amended--
                    (A) in clause (i), by striking ``2009 and 2010'' 
                and inserting ``2010 and 2011''; and
                    (B) in clause (ii)--
                            (i) by striking ``2009 and 2010'' and 
                        inserting ``2010 and 2011''; and
                            (ii) by striking ``October 1, 2010, and 
                        ending December 31, 2010'' and inserting 
                        ``October 1, 2011, and ending December 31, 
                        2011''.
            (2) Section 245(a) of the Trade Act of 1974 (19 U.S.C. 
        2317(a)) is amended by striking ``2010'' and inserting 
        ``2011''.
            (3) Section 246(b)(1) of the Trade Act of 1974 (19 U.S.C. 
        2318(b)(1)) is amended by striking ``2010'' and inserting 
        ``2011''.
            (4) Section 255(a) of the Trade Act of 1974 (19 U.S.C. 
        2345(a)) is amended to read as follows:
    ``(a) In General.--There are authorized to be appropriated to the 
Secretary $50,000,000 for each of the fiscal years 2010 through 2011, 
and $12,501,000 for the period beginning October 1, 2011, and ending 
December 31, 2011, to carry out the provisions of this chapter. Amounts 
appropriated pursuant to this subsection shall remain available until 
expended.''.
            (5) Section 275(f) of the Trade Act of 1974 (19 U.S.C. 
        2371d(f)) is amended by striking ``2011'' and inserting 
        ``2012''.
            (6) Section 276(c)(2) of the Trade Act of 1974 (19 U.S.C. 
        2371e(c)(2)) is amended--
                    (A) by striking ``2009 and 2010'' and inserting 
                ``2010 and 2011''; and
                    (B) by striking ``October 1, 2010, and ending 
                December 31, 2010'' and inserting ``October 1, 2011, 
                and ending December 31, 2011''.
            (7) Section 277(c) of the Trade Act of 1974 (19 U.S.C. 
        2371f(c)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``2009 and 2010'' and 
                        inserting ``2010 and 2011''; and
                            (ii) by striking ``October 1, 2010, and 
                        ending December 31, 2010'' and inserting 
                        ``October 1, 2011, and ending December 31, 
                        2011''; and
                    (B) by striking paragraph (2) and redesignating 
                paragraph (3) as paragraph (2).
            (8) Section 278(e) of the Trade Act of 1974 (19 U.S.C. 
        2372(e)) is amended by striking ``2011'' and inserting 
        ``2012''.
            (9) Section 279A(h)(2) of the Trade Act of 1974 (19 U.S.C. 
        2373(h)(2)) is amended by striking ``2011'' and inserting 
        ``2012''.
            (10) Section 279B(a) of the Trade Act of 1974 (19 U.S.C. 
        2373a(a)) is amended--
                    (A) by striking ``2009 and 2010'' and inserting 
                ``2010 and 2011''; and
                    (B) by striking ``October 1, 2010, and ending 
                December 31, 2010'' and inserting ``October 1, 2011, 
                and ending December 31, 2011''.
            (11) Section 285 of the Trade Act of 1974 (19 U.S.C. 2271 
        note) is amended by striking ``2010'' each place it appears and 
        inserting ``2011''.
            (12) Section 298(a) of the Trade Act of 1974 (19 U.S.C. 
        2401g(a)) is amended--
                    (A) by striking ``2009 and 2010'' and inserting 
                ``2010 and 2011''; and
                    (B) by striking ``October 1, 2010, and ending 
                December 31, 2010'' and inserting ``October 1, 2011, 
                and ending December 31, 2011''.
            (13) The table of contents for the Trade Act of 1974 is 
        amended by striking the item relating to section 235 and 
        inserting the following:

``Sec. 235. Employment and case management services.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2011.

          Subtitle C--Extension of Health Coverage Improvement

SEC. 631. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT.

    (a) In General.--Section 35(a) of the Internal Revenue Code of 1986 
is amended by striking ``January 1, 2011'' and inserting ``January 1, 
2012''.
    (b) Conforming Amendment.--Section 7527(b) of such Code is amended 
by striking ``January 1, 2011'' and inserting ``January 1, 2012''.
    (c) Effective Date.--The amendments made by this section shall 
apply to coverage months beginning after the date of the enactment of 
this Act.

SEC. 632. PAYMENT FOR THE MONTHLY PREMIUMS PAID PRIOR TO COMMENCEMENT 
              OF THE ADVANCE PAYMENTS OF CREDIT.

    (a) In General.--Section 7527(e) of the Internal Revenue Code of 
1986 is amended by striking ``January 1, 2011'' and inserting ``January 
1, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to coverage months beginning after the date of the enactment of this 
Act.

SEC. 633. TAA RECIPIENTS NOT ENROLLED IN TRAINING PROGRAMS ELIGIBLE FOR 
              CREDIT.

    (a) In General.--Section 35(c)(2)(B) of the Internal Revenue Code 
of 1986 is amended by striking ``January 1, 2011'' and inserting 
``January 1, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to coverage months beginning after the date of the enactment of this 
Act.

SEC. 634. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF DETERMINING 
              WHETHER THERE IS A 63-DAY LAPSE IN CREDITABLE COVERAGE.

    (a) IRC Amendment.--Section 9801(c)(2)(D) of the Internal Revenue 
Code of 1986 is amended by striking ``January 1, 2011'' and inserting 
``January 1, 2012''.
    (b) ERISA Amendment.--Section 701(c)(2)(C) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1181(c)(2)(C)) is 
amended by striking ``January 1, 2011'' and inserting ``January 1, 
2012''.
    (c) PHSA Amendment.--Section 2701(c)(2)(C) of the Public Health 
Service Act (42 U.S.C. 300gg(c)(2)(C)) is amended by striking ``January 
1, 2011'' and inserting ``January 1, 2012''.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after the date of the enactment of this 
Act.

SEC. 635. CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER CERTAIN 
              EVENTS.

    (a) In General.--Section 35(g)(9) of the Internal Revenue Code of 
1986 is amended by striking ``January 1, 2011'' and inserting ``January 
1, 2012''.
    (b) Conforming Amendment.--Section 173(f)(8) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2918(f)(8)) is amended by striking 
``January 1, 2011'' and inserting ``January 1, 2012''.
    (c) Effective Date.--The amendments made by this section shall 
apply to months beginning after the date of the enactment of this Act.

SEC. 636. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-ELIGIBLE 
              INDIVIDUALS AND PBGC RECIPIENTS.

    (a) ERISA Amendments.--
            (1) PBGC recipients.--Section 602(2)(A)(v) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 
        1162(2)(A)(v)) is amended by striking ``December 31, 2010'' and 
        inserting ``December 31, 2011''.
            (2) TAA-eligible individuals.--Section 602(2)(A)(vi) of 
        such Act (29 U.S.C. 1162(2)(A)(vi)) is amended by striking 
        ``December 31, 2010'' and inserting ``December 31, 2011''.
    (b) IRC Amendments.--
            (1) PBGC recipients.--Section 4980B(f)(2)(B)(i)(V) of the 
        Internal Revenue Code of 1986 is amended by striking ``December 
        31, 2010'' and inserting ``December 31, 2011''.
            (2) TAA-eligible individuals.--Section 
        4980B(f)(2)(B)(i)(VI) of such Code is amended by striking 
        ``December 31, 2010'' and inserting ``December 31, 2011''.
    (c) PHSA Amendments.--Section 2202(2)(A)(iv) of the Public Health 
Service Act (42 U.S.C. 300bb-2(2)(A)(iv)) is amended by striking 
``December 31, 2010'' and inserting ``December 31, 2011''.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods of coverage which would (without regard to the 
amendments made by this section) end on or after December 31, 2010.

SEC. 637. ADDITION OF COVERAGE THROUGH VOLUNTARY EMPLOYEES' BENEFICIARY 
              ASSOCIATIONS.

    (a) In General.--Section 35(e)(1)(K) of the Internal Revenue Code 
of 1986 is amended by striking ``January 1, 2011'' and inserting 
``January 1, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to coverage months beginning after the date of the enactment of this 
Act.

SEC. 638. NOTICE REQUIREMENTS.

    (a) In General.--Section 7527(d)(2) of the Internal Revenue Code of 
1986 is amended by striking ``January 1, 2011'' and inserting ``January 
1, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to certificates issued after the date of the enactment of this Act.

                      Subtitle D--TANF Provisions

SEC. 641. EXTENSION OF TEMPORARY ASSISTANCE FOR NEEDY FAMILIES AND 
              RELATED PROGRAMS.

    (a) In General.--Activities authorized by part A of title IV and 
section 1108(b) of the Social Security Act (other than the Emergency 
Contingency Fund for State Temporary Assistance for Needy Families 
Programs established under subsection (c) of section 403 of such Act) 
shall continue through September 30, 2011, in the manner authorized for 
fiscal year 2010, and out of any money in the Treasury of the United 
States not otherwise appropriated, there are hereby appropriated such 
sums as may be necessary for such purpose. In the case of the 
activities authorized by section 403(b) of such Act, the preceding 
sentence shall be applied by substituting ``September 30, 2012'' for 
``September 30, 2011''. Grants and payments may be made pursuant to 
this authority on a quarterly basis through fiscal year 2011 at the 
level provided for such activities for the corresponding quarter of 
fiscal year 2010, except that--
            (1) in the case of healthy marriage promotion and 
        responsible fatherhood grants under section 403(a)(2) of such 
        Act, such grants and payments shall be made in accordance with 
        the amendments made by subsection (b) of this section;
            (2) in the case of supplemental grants under section 
        403(a)(3) of such Act, the total amount appropriated for fiscal 
        year 2011 shall not exceed $319,450,000; and
            (3) in the case of the Contingency Fund for State Welfare 
        Programs established under subsection (b) of section 403 of 
        such Act, grants and payments may be made pursuant to this 
        authority on a quarterly basis through fiscal year 2012, and--
                    (A) the total amount appropriated for fiscal year 
                2011 shall not exceed $292,550,000, and
                    (B) the total amount appropriated for fiscal year 
                2012 shall not exceed $612,000,000.
    (b) Healthy Marriage Promotion and Responsible Fatherhood Grants.--
Section 403(a)(2) of the Social Security Act (42 U.S.C. 603(a)(2)) is 
amended--
            (1) in subparagraph (A)(iii),
                    (A) by striking subclause (III) and inserting the 
                following:
                                    ``(III) Marriage education, 
                                marriage skills, and relationship 
                                improvement programs, that may include 
                                components designed to improve 
                                parenting skills, address or prevent 
                                substance abuse, address or prevent 
                                domestic violence, improve financial 
                                management, improve conflict 
                                resolution, or improve employment 
                                outcomes, including job and career 
                                advancement.''; and
                    (B) by adding at the end the following:
                                    ``(IX) Such other activities as the 
                                Secretary determines are reasonably 
                                calculated to improve outcomes for 
                                needy children and needy communities 
                                through the promotion of healthy 
                                marriages, if offered in conjunction 
                                with any activity described in this 
                                subparagraph.'';
            (2) in subparagraph (C)(i), by striking ``$50,000,000'' and 
        inserting ``$75,000,000'';
            (3) by striking subparagraph (D) and inserting the 
        following:
                    ``(D) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal year 
                2011 for expenditure in accordance with this 
                paragraph--
                            ``(i) $75,000,000 for awarding funds for 
                        the purpose of carrying out healthy marriage 
                        promotion activities; and
                            ``(ii) $75,000,000 for awarding funds for 
                        the purpose of carrying out activities 
                        promoting responsible fatherhood.''; and
            (4) in subparagraph (A)(ii), in the matter preceding 
        subclause (I), by inserting ``(or, in the case of an entity 
        seeking funding for carrying out both healthy marriage 
        promotion activities and activities promoting responsible 
        fatherhood, a combined application)'' after ``an application''.
    (c) Conforming Amendments.--
            (1) Section 403(a)(3)(H)(ii) of the Social Security Act (42 
        U.S.C. 603(a)(3)(H)(ii)) is amended by striking ``2010'' and 
        inserting ``2011''.
            (2) Section 403(b)(3)(C)(ii) of the Social Security Act (42 
        U.S.C. 603(b)(3)(C)(ii)) is amended by striking ``2010'' and 
        inserting ``2011''.
            (3) Section 409(a)(7) of the Social Security Act (42 U.S.C. 
        609(a)(7)) is amended--
                    (A) in subparagraph (A), by striking ``or 2011'' 
                and inserting ``2011, or 2012''; and
                    (B) in subparagraph (B)(ii), by striking ``2010'' 
                and inserting ``2011''.
    (d) National Random Sample Study of Child Welfare.--Activities 
authorized by section 429 of the Social Security Act shall continue 
through September 30, 2011, in the manner authorized for fiscal year 
2010, and out of any money in the Treasury of the United States not 
otherwise appropriated, there are hereby appropriated such sums as may 
be necessary for such purpose. Grants and payments may be made pursuant 
to this authority on a quarterly basis through fiscal year 2011 at the 
level provided for such activities for the corresponding quarter of 
fiscal year 2010.
    (e) Effective Date.--This section and the amendments made by this 
section take effect on October 1, 2010.

SEC. 642. REINSTATEMENT OF FEDERAL MATCHING OF STATE SPENDING OF CHILD 
              SUPPORT INCENTIVE PAYMENTS.

    (a) In General.--Effective October 1, 2010, section 455(a)(1) of 
the Social Security Act (42 U.S.C. 655(a)(1)) is amended by striking 
``from amounts paid to the State under section 458 or''.
    (b) Sunset.--Effective October 1, 2011, section 455(a)(1) of the 
Social Security Act (42 U.S.C. 655(a)(1)) is amended by inserting 
``from amounts paid to the State under section 458 or'' before ``to 
carry out an agreement which it has entered into pursuant to section 
463''.

SEC. 643. EXTENSION AND MODIFICATION OF THE TANF EMERGENCY FUND.

    (a) Extension.--
            (1) In general.--Section 403(c) of the Social Security Act 
        (42 U.S.C. 603(c)) is amended--
                    (A) in paragraph (2)(A), by inserting ``, and for 
                fiscal year 2011, $1,500,000,000'' before ``for 
                payment'';
                    (B) by striking paragraph (2)(B) and inserting the 
                following:
                    ``(B) Availability and use of funds.--
                            ``(i) Fiscal years 2009 and 2010.--The 
                        amounts appropriated to the Emergency Fund 
                        under subparagraph (A) for fiscal year 2009 
                        shall remain available through fiscal year 2010 
                        and shall be used to make grants to States in 
                        each of fiscal years 2009 and 2010 in 
                        accordance with paragraph (3), except that the 
                        amounts shall remain available through fiscal 
                        year 2011 to make grants and payments to States 
                        in accordance with paragraph (3)(C) to cover 
                        expenditures to subsidize employment positions 
                        held by individuals placed in the positions 
                        before fiscal year 2011.
                            ``(ii) Fiscal year 2011.--Subject to clause 
                        (iii), the amounts appropriated to the 
                        Emergency Fund under subparagraph (A) for 
                        fiscal year 2011 shall remain available through 
                        fiscal year 2012 and shall be used to make 
                        grants to States based on expenditures in 
                        fiscal year 2011 for benefits and services 
                        provided in fiscal year 2011 in accordance with 
                        the requirements of paragraph (3).
                            ``(iii) Reservation of funds.--Of the 
                        amounts appropriated to the Emergency Fund 
                        under subparagraph (A) for fiscal year 2011, 
                        $500,000 shall be placed in reserve for use in 
                        fiscal year 2012, and shall be used to award 
                        grants for any expenditures described in this 
                        subsection incurred by States after September 
                        30, 2011.'';
                    (C) in paragraph (2)(C), by striking ``2010'' and 
                inserting ``2012'';
                    (D) in paragraph (3)--
                            (i) in clause (i) of each of subparagraphs 
                        (A), (B), and (C)--
                                    (I) by striking ``year 2009 or 
                                2010'' and inserting ``years 2009 
                                through 2011'';
                                    (II) by striking ``and'' at the end 
                                of subclause (I);
                                    (III) by striking the period at the 
                                end of subclause (II) and inserting ``; 
                                and''; and
                                    (IV) by adding at the end the 
                                following:
                                    ``(III) if the quarter is in fiscal 
                                year 2011, has provided the Secretary 
                                with such information as the Secretary 
                                may find necessary in order to make the 
                                determinations, or take any other 
                                action, described in paragraph 
                                (5)(C).''; and
                            (ii) in subparagraph (C), by adding at the 
                        end the following:
                            ``(iv) Limitation on expenditures for 
                        subsidized employment.--An expenditure for 
                        subsidized employment shall be taken into 
                        account under clause (ii) only if the 
                        expenditure is used to subsidize employment 
                        for--
                                    ``(I) a member of a needy family 
                                (without regard to whether the family 
                                is receiving assistance under the State 
                                program funded under this part); or
                                    ``(II) an individual who has 
                                exhausted (or, within 60 days, will 
                                exhaust) all rights to receive 
                                unemployment compensation under Federal 
                                and State law, and who is a member of a 
                                needy family.'';
                    (E) by striking paragraph (5) and inserting the 
                following:
            ``(5) Limitations on payments; adjustment authority.--
                    ``(A) Fiscal years 2009 and 2010.--The total amount 
                payable to a single State under subsection (b) and this 
                subsection for fiscal years 2009 and 2010 combined 
                shall not exceed 50 percent of the annual State family 
                assistance grant.
                    ``(B) Fiscal year 2011.--Subject to subparagraph 
                (C), the total amount payable to a single State under 
                subsection (b) and this subsection for fiscal year 2011 
                shall not exceed 30 percent of the annual State family 
                assistance grant.
                    ``(C) Adjustment authority.--If the Secretary 
                determines that the Emergency Fund is at risk of being 
                depleted before September 30, 2011, or that funds are 
                available to accommodate additional State requests 
                under this subsection, the Secretary may, through 
                program instructions issued without regard to the 
                requirements of section 553 of title 5, United States 
                Code--
                            ``(i) specify priority criteria for 
                        awarding grants to States during fiscal year 
                        2011; and
                            ``(ii) adjust the percentage limitation 
                        applicable under subparagraph (B) with respect 
                        to the total amount payable to a single State 
                        for fiscal year 2011.''; and
                    (F) in paragraph (6), by inserting ``or for 
                expenditures described in paragraph (3)(C)(iv)'' before 
                the period.
            (2) Conforming amendments.--Section 2101 of division B of 
        the American Recovery and Reinvestment Act of 2009 (Public Law 
        111-5) is amended--
                    (A) in subsection (a)(2)--
                            (i) by striking ``2010'' and inserting 
                        ``2011''; and
                            (ii) by striking all that follows 
                        ``repealed'' and inserting a period; and
                    (B) in subsection (d)(1), by striking ``2010'' and 
                inserting ``2011''.
    (b) Modification of Grant Requirements.--
            (1) In general.--Effective October 1, 2010, section 403(c) 
        of the Social Security Act (42 U.S.C. 603(c)), as amended by 
        subsection (a), is amended--
                    (A) in paragraph (3)(A)--
                            (i) by striking ``related to caseload 
                        increases'' in the heading and inserting 
                        ``related to increased expenditures'';
                            (ii) by striking clause (ii) and 
                        redesignating clause (iii) as clause (ii); and
                            (iii) by striking ``each State that'' and 
                        all that follows in clause (i) and inserting 
                        ``each State that requests a grant under this 
                        subparagraph for the quarter, to the extent 
                        provided in clause (ii)'';
                    (B) in paragraph (4), by striking ``the caseload of 
                a State and''; and
                    (C) in paragraph (9)--
                            (i) by striking subparagraph (A) and 
                        redesignating subparagraphs (B) and (C) as 
                        subparagraphs (A) and (B), respectively; and
                            (ii) by striking ``The average monthly 
                        assistance caseload of the State.'' in clause 
                        (ii)(I) and inserting ``The average quarterly 
                        total expenditures of the State for basic 
                        assistance (as defined by the Secretary under 
                        paragraph (3)(A)(ii)).''.
            (2) Conforming amendments.--Effective October 1, 2010, 
        section 407(b)(3) of the Social Security Act (42 U.S.C. 
        607(b)(3)) is amended--
                    (A) by striking ``(within the meaning of section 
                403(c)(9))'' in subparagraph (A)(i); and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(C) Average monthly assistance caseload.--For 
                purposes of this paragraph, the term `average monthly 
                assistance caseload' means, with respect to a State and 
                a quarter, the number of families receiving assistance 
                during the quarter under the State program funded under 
                this part or as qualified State expenditures, subject 
                to adjustment by the Secretary as permitted by section 
                403(c)(4).''.
    (c) Program Guidance.--The Secretary of Health and Human Services 
shall issue program guidance, without regard to the requirements of 
section 553 of title 5, United States Code, which ensures that the 
funds provided under the amendments made by this section to a 
jurisdiction for subsidized employment do not support any subsidized 
employment position the annual salary of which is greater than, at 
State option--
            (1) 200 percent of the poverty line (within the meaning of 
        section 673(2) of the Omnibus Budget Reconciliation Act of 
        1981, including any revision required by such section 673(2)) 
        for a family of 4; or
            (2) the median wage in the jurisdiction.

SEC. 644. MODIFICATIONS TO TANF DATA REPORTING.

    (a) Measurement of Work Activities.--Section 407(i)(1)A)(i) of the 
Social Security Act (42 U.S.C. 607(i)(1)(A)(i)) is amended--
            (1) by striking ``and'' at the end of subclause (III);
            (2) by striking the period at the end of subclause (IV) and 
        inserting ``; and''; and
            (3) by adding at the end the following new subclause:
                                    ``(V) any other activities of a 
                                recipient of assistance that are 
                                carried out in the course of 
                                participation in State programs but do 
                                not qualify as a work activity under 
                                subsection (d).''.
    (b) Measurement of TANF Spending on Benefits and Services.--The 
Secretary of Health and Human Services shall amend the Form ACF-196 
expenditure categories to improve data collection and provide increased 
detail on the types of expenditures made by States from Federal funds 
under section 403 of the Social Security Act and State funds expended 
to meet the requirements of section 409(a)(7) of such Act.
    (c) Additional Reports by States.--Section 411 of the Social 
Security Act (42 U.S.C. 611) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) Annual Reports on Program Characteristics.--Not later than 90 
days after the end of fiscal year 2010 and each succeeding fiscal year, 
each eligible State shall submit to the Secretary a report on the 
characteristics of State programs funded under this part and other 
State programs funded with qualified State expenditures (as defined in 
section 409(a)(7)(B)(i)). The report shall include, with respect to 
each such program, the program name, a description of program 
activities, the program purpose, the program eligibility criteria, the 
sources of program funding, the number of program beneficiaries, 
sanction policies, and any program work requirements.''.
    (d) Description of State Assistance Programs.--Section 402(a)(1)(B) 
(42 U.S.C. 602(a)(1)(B)) is amended by adding at the end the following 
new clause:
                            ``(v) The document shall include, to the 
                        extent applicable with respect to each program 
                        that provides assistance that will be funded 
                        under this part or with qualified State 
                        expenditures (as defined in section 
                        409(a)(7)(B)(i)), a description of--
                                    ``(I) the applicable financial and 
                                nonfinancial eligibility rules for 
                                assistance provided under the program, 
                                including income eligibility 
                                thresholds, the treatment of earnings, 
                                asset eligibility rules, and excluded 
                                forms of income;
                                    ``(II) the amount of assistance 
                                provided to needy families, and the 
                                methodology for determining assistance 
                                amounts; and
                                    ``(III) the applicable time limit 
                                policies, including the length of the 
                                time limit, exemption and extension 
                                policies, and procedures for providing 
                                services to families reaching the time 
                                limit and who have lost assistance due 
                                to time limits.''.

SEC. 645. STATE COURT IMPROVEMENT PROGRAM.

    (a) In General.--Section 438 of the Social Security Act (42 U.S.C. 
629h) is amended--
            (1) by striking ``2010'' in subsection (c)(2)(A) and 
        inserting ``2011'';
            (2) by adding at the end of subsection (e) the following 
        flush sentence: ``For fiscal year 2011, out of the amount 
        reserved pursuant to section 436(b)(2) for such fiscal year, 
        there are available $10,000,000 for grants referred to in 
        subsection (b)(2)(B), and $10,000,000 for grants referred to in 
        subsection (b)(2)(C).''.
    (b) Appropriations.--Effective October 1, 2011, section 436 of the 
Social Security Act (42 U.S.C. 629f) is amended--
            (1) in subsection (a)--
                    (A) by striking ``2011'' and inserting ``2010''; 
                and
                    (B) by inserting before the period the following: 
                ``, and $365,000,000 for fiscal year 2011''; and
            (2) by striking ``$10,000,000'' in subsection (b)(2) and 
        inserting ``$30,000,000''.

        Subtitle E--Unemployment Compensation Program Integrity

SEC. 651. PERMISSIBLE USES OF UNEMPLOYMENT FUND MONEYS FOR PROGRAM 
              INTEGRITY PURPOSES.

    (a) Withdrawal Standard in the Internal Revenue Code.--Section 
3304(a)(4) of the Internal Revenue Code of 1986 is amended--
            (1) in subparagraph (F), by striking ``and'' at the end; 
        and
            (2) by inserting after subparagraph (G) the following new 
        subparagraphs:
                    ``(H) of those payments of benefits from a State's 
                unemployment fund that are determined to have been made 
                in error and are subsequently recovered by the State, 
                the State may, immediately following receipt of such 
                recovered amount, deposit a percent of such recovered 
                amount, as specified in State law (but not to exceed 5 
                percent), in a fund from which moneys may be withdrawn 
                for--
                            ``(i) the payment of costs of deterring, 
                        detecting, and collecting erroneous payments to 
                        individuals;
                            ``(ii) purposes relating to the 
                        misclassification of employees as independent 
                        contractors, implementation of provisions of 
                        State law implementing section 303(k) of the 
                        Social Security Act, or other provisions of 
                        State law relating to employer fraud or evasion 
                        of contributions; or
                            ``(iii) payment to the Secretary of the 
                        Treasury to the credit of the State's account 
                        in the Unemployment Trust Fund; and
                    ``(I) of those payments of contributions (or 
                payments in lieu of contributions) that are collected 
                as a result of an investigation and assessment by the 
                State agency, the State may, immediately following 
                receipt of such payments, deposit a percentage of such 
                payments, as specified in State law (but not to exceed 
                5 percent), in a fund (which may be the same fund 
                described in subparagraph (H)) from which moneys may be 
                withdrawn for the purposes described in clauses (i) 
                through (iii) of subparagraph (H);''.
    (b) Definition of Unemployment Fund.--Section 3306(f) of the 
Internal Revenue Code of 1986 is amended by striking all that follows 
``(exclusive of expenses of administration)'' and inserting ``, except 
as otherwise provided in section 3304(a)(4) of the Social Security Act 
or any other provision of Federal law.''.
    (c) Withdrawal Standard in Social Security Act.--Section 303(a)(5) 
of the Social Security Act (42 U.S.C. 503(a)(5)) is amended by striking 
all that follows ``payment of unemployment compensation, exclusive of 
expenses of administration,'' and inserting ``except as otherwise 
provided in this section, section 3304(a)(4) of the Internal Revenue 
Code of 1986, or any other provision of Federal law; and''.
    (d) Immediate Deposit Requirements.--
            (1) Internal revenue code requirement.--Paragraph (3) of 
        section 3304(a) of the Internal Revenue Code of 1986 is amended 
        to read as follows:
            ``(3) all money received in the unemployment fund of the 
        State shall immediately upon such receipt be paid over to the 
        Secretary of the Treasury to the credit of the Unemployment 
        Trust Fund established by section 904 of the Social Security 
        Act (42 U.S.C. 1104), except for--
                    ``(A) refunds of sums erroneously paid into the 
                unemployment fund of the State;
                    ``(B) refunds paid in accordance with the 
                provisions of section 3305(b); and
                    ``(C) amounts deposited in a State fund pursuant to 
                subparagraph (H) or (I) of paragraph (4);''.
            (2) Social security act requirement.--Section 303(a)(4) of 
        the Social Security Act (42 U.S.C. 503(a)(4)) is amended by 
        striking ``(except for refunds'' and all that follows through 
        ``Federal Unemployment Tax Act'' and inserting ``(except as 
        otherwise provided in this section, section 3304(a)(3) of the 
        Internal Revenue Code of 1986, or any other provision of 
        Federal law)''.
    (e) Application to Federal Payments.--
            (1) In general.--As a condition for administering any 
        unemployment compensation program of the United States (as 
        defined in paragraph (2)) as an agent of the United States, a 
        State shall, with respect to erroneous payments made under such 
        programs by the State, use the authority provided under 
        subparagraph (H) of section 3304(a)(4) of the Internal Revenue 
        Code of 1986, as added by subsection (a), in the same manner as 
        such authority is used with respect to erroneous payments made 
        under the State unemployment compensation law. With respect to 
        erroneous Federal payments recovered consistent with the 
        authority under such subparagraph (H), the State shall 
        immediately deposit the same percentage of the recovered 
        payments into the same State fund as provided in the State law 
        implementing such section 3304(a)(4).
            (2) Definition.--For purposes of this subsection, the term 
        ``unemployment compensation program of the United States'' 
        means--
                    (A) unemployment compensation for Federal civilian 
                employees under subchapter I of chapter 85 of title 5, 
                United States Code;
                    (B) unemployment compensation for ex-servicemembers 
                under subchapter II of chapter 85 of title 5, United 
                States Code;
                    (C) trade readjustment allowances under sections 
                231 through 234 of the Trade Act of 1974 (19 U.S.C. 
                2291-2294);
                    (D) disaster unemployment assistance under section 
                410(a) of the Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act (42 U.S.C. 5177(a));
                    (E) any Federal temporary extension of unemployment 
                compensation;
                    (F) any Federal program which increases the weekly 
                amount of unemployment compensation payable to 
                individuals; and
                    (G) any other Federal program providing for the 
                payment of unemployment compensation.

SEC. 652. MANDATORY PENALTY ASSESSMENT ON FRAUD CLAIMS.

    (a) In General.--Section 303(a) of the Social Security Act (42 
U.S.C. 503(a)) is amended--
            (1) in paragraph (10), by striking the period at the end of 
        subparagraph (B) and inserting ``; and''; and
            (2) by adding at the end the following new paragraph:
            ``(11)(A) At the time the State agency determines an 
        erroneous payment from its unemployment fund was made to an 
        individual due to fraud committed by such individual, the 
        assessment of a penalty on the individual in an amount of not 
        less than 15 percent of the amount of the erroneous payment; 
        and
            ``(B) The immediate deposit of all assessments paid 
        pursuant to subparagraph (A) in a fund in the State from which 
        moneys may be withdrawn for the purposes described in clauses 
        (i) through (iii) of subparagraph (H) of section 3304(a)(4) of 
        the Internal Revenue Code of 1986, which may be the same fund 
        as the fund established under subparagraphs (H) or (I) of such 
        section 3304(a)(4).''.
    (b) Application to Federal Payments.--As a condition for 
administering any unemployment compensation program of the United 
States (as defined in section 651(e)(2)) as an agent of the United 
States, if the State determines that an erroneous payment was made by 
the State to an individual under any such program due to fraud 
committed by such individual, the State shall assess a penalty on such 
individual and deposit any such penalty received in the same manner as 
the State assesses and deposits such penalties under provisions of 
State law implementing section 303(a)(11) of the Social Security Act, 
as added by subsection (a).
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to erroneous 
        payments established after the end of the 2-year period 
        beginning on the date of the enactment of this Act.
            (2) Authority.--A State may amend its State law to apply 
        such amendments to erroneous payments established prior to the 
        end of the period described in paragraph (1).

SEC. 653. PROHIBITION ON NONCHARGING DUE TO EMPLOYER FAULT.

    (a) In General.--Section 3303 of the Internal Revenue Code is 
amended--
            (1) by striking subsections (f) and (g); and
            (2) by inserting after subsection (e) the following new 
        subsection:
    ``(f) Prohibition on Noncharging Due to Employer Fault.--A State 
law shall be treated as meeting the requirements of subsection (a)(1) 
only if such law provides that an employer's account shall not be 
relieved of charges relating to a payment from the State unemployment 
fund if--
            ``(1) the State agency determines that the payment was made 
        because the employer, or an agent of the employer, was at fault 
        for failing to respond timely or adequately to the request of 
        the agency for information relating to the claim for 
        compensation; and
            ``(2) the State agency determines that the employer or 
        agent has established a pattern of failing to respond timely or 
        adequately to such requests.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to erroneous payments established after the end of the 2-year 
period beginning on the date of the enactment of this Act.

SEC. 654. COLLECTION OF PAST-DUE, LEGALLY ENFORCEABLE STATE DEBTS.

    (a) Unemployment Compensation Debts.--Section 6402(f) of the 
Internal Revenue Code is amended--
            (1) in the heading, by striking ``Resulting From Fraud'';
            (2) by striking paragraphs (3) and (8) and redesignating 
        paragraphs (4) through (7) as paragraphs (3) through (6), 
        respectively;
            (3) in paragraph (3), as so redesignated--
                    (A) in subparagraph (A), by striking ``by certified 
                mail with return receipt'';
                    (B) in subparagraph (B), by striking ``due to 
                fraud'' and inserting ``is not a covered unemployment 
                compensation debt'';
                    (C) in subparagraph (C), by striking ``due to 
                fraud'' and inserting `` is not a covered unemployment 
                compensation debt''; and
            (4) in paragraph (4), as so redesignated--
                    (A) in subparagraph (A)--
                            (i) by inserting ``or the person's failure 
                        to report earnings'' after ``due to fraud''; 
                        and
                            (ii) by striking ``for not more than 10 
                        years''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``due to fraud''; and
                            (ii) by striking ``for not more than 10 
                        years''.
    (b) Effective Date.--The amendments made by this section shall 
apply to refunds payable under section 6402 of the Internal Revenue 
Code of 1986 on or after the date of the enactment of this Act.

SEC. 655. TREATMENT OF SHORT-TIME COMPENSATION PROGRAMS.

    (a) Definition.--Section 3306 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
            (1) In general.--
    ``(v) Short-time Compensation Program.--For purposes of this 
chapter, the term `short-time compensation program' means a program 
under which--
            ``(1) the participation of an employer is voluntary;
            ``(2) an employer reduces the number of hours worked by 
        employees in lieu of temporary layoffs;
            ``(3) such employees whose workweeks have been reduced by 
        at least 10 percent, and by not more than the percentage, if 
        any, that is determined by the State to be appropriate, are 
        eligible for unemployment compensation;
            ``(4) the amount of unemployment compensation payable to 
        any such employee is a pro rata portion of the unemployment 
        compensation which would be payable to the employee if such 
        employee were totally unemployed;
            ``(5) such employees are not required to meet the 
        availability for work or work search test requirements while 
        collecting short-time compensation benefits, but are required 
        to be available for their normal workweek;
            ``(6) eligible employees may participate in an employer-
        sponsored training program to enhance job skills if such 
        program has been approved by the State agency;
            ``(7) the State agency shall require an employer to certify 
        that the employer will continue to provide health benefits, and 
        retirement benefits under a defined benefit plan (as defined in 
        section 414(j)) and contributions under a defined contribution 
        plan (as defined in section 414(i)) to any employee whose 
        workweek is reduced under the program under the same terms and 
        conditions as though the workweek of such employee had not been 
        reduced;
            ``(8) the State agency shall require an employer (or an 
        employers' association which is party to a collective 
        bargaining agreement) to submit a written plan describing the 
        manner in which the requirements of this subsection will be 
        implemented and containing such other information as the 
        Secretary of Labor determines is appropriate;
            ``(9) in the case of employees represented by a union, the 
        appropriate official of the union has agreed to the terms of 
        the written plan submitted by the employer and implementation 
        is consistent with employer obligations under the National 
        Labor Relations Act; and
            ``(10) only such other provisions are included in the State 
        law as the Secretary of Labor determines appropriate for 
        purposes of a short-term compensation program.''.
            (2) Effective date.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amendment made by paragraph (1) shall take 
                effect on the date of the enactment of this Act.
                    (B) Delay permitted.--In the case of a State that 
                is administering a short-time compensation program as 
                of the date of the enactment of this Act and the State 
                law cannot be administered consistent with the 
                amendment made by paragraph (1), such amendment shall 
                take effect on the earlier of--
                            (i) the date the State changes its State 
                        law in order to be consistent with such 
                        amendment; or
                            (ii) the date that is 2 years after the 
                        date of the enactment of this Act.
    (b) Conforming Amendments.--
            (1) Internal revenue code of 1986.--Subparagraph (E) of 
        section 3304(a)(4) of the Internal Revenue Code of 1986 is 
        amended to read as follows:
                    ``(E) amounts may be withdrawn for the payment of 
                short-time compensation under a short-time compensation 
                program (as defined in section 3306(v));''.
            (2) Unemployment compensation amendments of 1992.--
        Subsections (b) through (d) of section 401 of the Unemployment 
        Compensation Amendments of 1992 (26 U.S.C. 3304 note) are 
        repealed.

SEC. 656. STATE USE OF COMPENSATING BALANCES AND INTEREST EARNED ON 
              CLEARING ACCOUNT TO PAY ASSOCIATED BANKING COSTS.

    (a) Immediate Deposit Requirement.--Section 3304(a)(3) of the 
Internal Revenue Code of 1986, as amended by section 651(d)(1), is 
amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C), by inserting ``and'' after the 
        semicolon at the end; and
            (3) by adding at the end the following new subparagraph:
                    ``(D) such portion of the money as may be necessary 
                to generate earnings credit or actual interest earnings 
                sufficient to pay reasonable charges for banking 
                services related to such money and for services 
                provided by a bank in connection with the receipt and 
                processing of direct remittances from employers;''.
    (b) Withdrawal Standard.--Section 3304(a)(4) of the Internal 
Revenue Code of 1986, as amended by section 651(a), is amended--
            (1) in subparagraph (H)(iii), by striking ``and'' at the 
        end;
            (2) in subparagraph (I), by inserting ``and'' after the 
        semicolon at the end; and
            (3) by adding at the end the following new subparagraph:
                    ``(J) earnings credit or actual interest earnings 
                on money not immediately paid over to the Secretary of 
                the Treasury pursuant to paragraph (3) may be used to 
                pay reasonable charges for banking services related to 
                money received in the unemployment fund and for 
                services provided by a bank in connection with the 
                receipt and processing of direct remittances from 
                employers;''.
    (c) Conforming Amendment.--Section 1201(a)(3) of the Social 
Security Act (42 U.S.C. 1321(a)(3)) is amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C), by striking the period at the end 
        and inserting ``, and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(D) any amounts set aside to pay reasonable 
                charges for banking services consistent with paragraphs 
                (3) and (4) of section 3304(a) of the Internal Revenue 
                Code of 1986 shall not be taken into account for 
                purposes of subparagraph (B).''.

SEC. 657. REPORTING OF FIRST DAY OF EARNINGS TO DIRECTORY OF NEW HIRES.

    (a) Addition of Requirement.--Section 453A(b)(1)(A) of the Social 
Security Act (42 U.S.C. 653a(b)(1)(A)) is amended by inserting ``the 
date services for remuneration were first performed by the employee,'' 
after ``of the employee,''.
    (b) Conforming Amendment; Reporting Format and Method.--Section 
453A(c) of the Social Security Act (42 U.S.C. 653a(c)) is amended by 
inserting ``, to the extent practicable,'' after ``Each report required 
by subsection (b) shall''.
    (c) Effective Date.--
            (1) In general.--Subject to paragraph (2), the amendments 
        made by this section shall take effect 6 months after the date 
        of the enactment of this Act.
            (2) Compliance transition period.--If the Secretary of 
        Health and Human Services determines that State legislation 
        (other than legislation appropriating funds) is required in 
        order for a State plan under part D of title IV of the Social 
        Security Act to meet the additional requirements imposed by the 
        amendment made by subsection (a), the plan shall not be 
        regarded as failing to meet such requirements before the first 
        day of the second calendar quarter beginning after the close of 
        the first regular session of the State legislature that begins 
        after the effective date of such amendment. If the State has a 
        2-year legislative session, each year of the session is deemed 
        to be a separate regular session of the State legislature.

SEC. 658. DEDUCTION OF OBLIGATIONS FOR CUSTODIAL PARENTS.

    (a) Authorization To Deduct Support for Custodial Parents From 
Unemployment Compensation.--
            (1) In general.--Section 303(e) of the Social Security Act 
        (42 U.S.C. 503(e)) is amended--
                    (A) by striking ``child support obligations'' each 
                place it appears and inserting ``support obligations''; 
                and
                    (B) in paragraph (1), in the matter following 
                subparagraph (B), by striking ``only includes 
                obligations'' and inserting ``is limited to obligations 
                established with respect to a child or a custodial 
                parent of such child''.
            (2) Technical amendment.--Section 303(e)(2)(A)(iii)(III) of 
        the Social Security Act (42 U.S.C. 503(e)(2)(A)(iii)(III)) is 
        amended by striking ``section 462(e)'' and inserting ``section 
        459(i)(5)''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to weeks of 
        unemployment beginning after the end of the 2-year period 
        beginning on the date of the enactment of this Act.
            (2) Authority.--A State may amend its State law to provide 
        for deducting and withholding amounts from unemployment 
        compensation in accordance with the amendments made by this 
        section prior to end of the period described in paragraph (1).

SEC. 659. ADVISORY COUNCIL ON UNEMPLOYMENT COMPENSATION.

    (a) In General.--Section 908 of the Social Security Act (42 U.S.C. 
1108) is amended by striking subsections (a), (b), and (c) and 
inserting the following new subsections:
    ``(a) Establishment.--The Secretary of Labor may periodically 
establish an advisory council to be known as the Advisory Council on 
Unemployment Compensation (referred to in this section as the 
`Council').
    ``(b) Function.--Each Council shall, to the extent directed by the 
Secretary of Labor, evaluate specific aspects of the unemployment 
compensation program, which may include the purpose, goals, effects on 
economic stabilization (including countercyclical effects), coverage, 
trust fund solvency, administrative performance, payment integrity and 
any other aspects of the program as the Secretary of Labor deems 
necessary.
    ``(c) Members.--
            ``(1) Presidential appointments.--Each Council shall 
        consist of 9 members appointed by the President.
            ``(2) Vacancy.--A vacancy in any Council shall be filled by 
        appointment in accordance with paragraph (1).
            ``(3) Chairman.--The President shall designate a member of 
        the Council to serve as its Chairman.''.
    (b) Report.--Subsection (f) of section 908 of the Social Security 
Act (42 U.S.C. 1108 (f)) is amended to read as follows:
    ``(f) Report.--The Council shall submit, at such times as the 
Secretary of Labor may specify, to the President through the Secretary 
of Labor reports setting forth the findings of the Council together 
with and any recommendations the Council determines are appropriate.''.

SEC. 660. AMENDMENT TO THE FEDERAL-STATE EXTENDED BENEFITS PROGRAM.

    (a) In General.--Section 202(a)(3)(E) of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is amended 
by striking clause (ii) and inserting the following:
                            ``(ii) the individual maintains tangible 
                        evidence that he has engaged in such an effort 
                        during such week; and
                            ``(iii) the individual provides such 
                        tangible evidence to the State agency upon 
                        request.
                The Secretary shall prescribe requirements for State 
                agencies to randomly audit a minimum number of claims 
                each week to determine compliance with this 
                subparagraph''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by this section shall apply to weeks of 
        unemployment beginning after the end of the 2-year period 
        beginning on the date of the enactment of this Act.
            (2) Authority.--A State may amend its State law to provide 
        for the administration of the Federal-State extended benefits 
        program in accordance with the amendment made by this section 
        prior to the end of the period described in paragraph (1).

SEC. 661. OPERATING INSTRUCTIONS AND REGULATIONS.

    The Secretary of Labor may prescribe any operating instructions or 
regulations necessary to carry out the provisions of, and amendments 
made by, this subtitle to the extent that responsibility for the 
administration of such provision or amendment is vested in the 
Secretary of Labor.

                      Subtitle F--Custom User Fees

SEC. 665. CUSTOMS USER FEES.

    Section 13031(j)(3) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended--
            (1) in subparagraph (A), by striking ``December 10, 2018'' 
        and inserting ``December 31, 2019''; and
            (2) in subparagraph (B)(i), by striking ``November 30, 
        2018'' and inserting ``September 30, 2019''.

       TITLE VII--TRANSPARENCY REQUIREMENTS FOR FOREIGN-HELD DEBT

SEC. 701. SHORT TITLE.

    This title may be cited as the ``Foreign-Held Debt Transparency and 
Threat Assessment Act''.

SEC. 702. DEFINITIONS.

    In this title:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the following:
                    (A) The Committee on Armed Services, the Committee 
                on Foreign Relations, the Committee on Finance, and the 
                Committee on the Budget of the Senate.
                    (B) The Committee on Armed Services, the Committee 
                on Foreign Affairs, the Committee on Ways and Means, 
                and the Committee on the Budget of the House of 
                Representatives.
            (2) Debt instruments of the united states.--The term ``debt 
        instruments of the United States'' means all bills, notes, and 
        bonds issued or guaranteed by the United States or by an entity 
        of the United States Government, including any Government-
        sponsored enterprise.

SEC. 703. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the growing Federal debt of the United States has the 
        potential to jeopardize the national security and economic 
        stability of the United States;
            (2) the increasing dependence of the United States on 
        foreign creditors has the potential to make the United States 
        vulnerable to undue influence by certain foreign creditors in 
        national security and economic policymaking;
            (3) the People's Republic of China is the largest foreign 
        creditor of the United States, in terms of its overall holdings 
        of debt instruments of the United States;
            (4) the current level of transparency in the scope and 
        extent of foreign holdings of debt instruments of the United 
        States is inadequate and needs to be improved, particularly 
        regarding the holdings of the People's Republic of China;
            (5) through the People's Republic of China's large holdings 
        of debt instruments of the United States, China has become a 
        super creditor of the United States;
            (6) under certain circumstances, the holdings of the 
        People's Republic of China could give China a tool with which 
        China can try to manipulate the domestic and foreign 
        policymaking of the United States, including the United States 
        relationship with Taiwan;
            (7) under certain circumstances, if the People's Republic 
        of China were to be displeased with a given United States 
        policy or action, China could attempt to destabilize the United 
        States economy by rapidly divesting large portions of China's 
        holdings of debt instruments of the United States; and
            (8) the People's Republic of China's expansive holdings of 
        such debt instruments of the United States could potentially 
        pose a direct threat to the United States economy and to United 
        States national security. This potential threat is a 
        significant issue that warrants further analysis and 
        evaluation.

SEC. 704. QUARTERLY REPORT ON RISKS POSED BY FOREIGN HOLDINGS OF DEBT 
              INSTRUMENTS OF THE UNITED STATES.

    (a) Quarterly Report.--Not later than March 31, June 30, September 
30, and December 31 of each year, the President shall submit to the 
appropriate congressional committees a report on the risks posed by 
foreign holdings of debt instruments of the United States, in both 
classified and unclassified form.
    (b) Matters To Be Included.--Each report submitted under this 
section shall include the following:
            (1) The most recent data available on foreign holdings of 
        debt instruments of the United States, which data shall not be 
        older than the date that is 7 months preceding the date of the 
        report.
            (2) The country of domicile of all foreign creditors who 
        hold debt instruments of the United States.
            (3) The total amount of debt instruments of the United 
        States that are held by the foreign creditors, broken out by 
        the creditors' country of domicile and by public, quasi-public, 
        and private creditors.
            (4) For each foreign country listed in paragraph (3)--
                    (A) an analysis of the country's purpose in holding 
                debt instruments of the United States and long-term 
                intentions with regard to such debt instruments;
                    (B) an analysis of the current and foreseeable 
                risks to the long-term national security and economic 
                stability of the United States posed by each country's 
                holdings of debt instruments of the United States; and
                    (C) a specific determination of whether the level 
                of risk identified under subparagraph (B) is acceptable 
                or unacceptable.
    (c) Public Availability.--The President shall make each report 
required by subsection (a) available, in its unclassified form, to the 
public by posting it on the Internet in a conspicuous manner and 
location.

SEC. 705. ANNUAL REPORT ON RISKS POSED BY THE FEDERAL DEBT OF THE 
              UNITED STATES.

    (a) In General.--Not later than December 31 of each year, the 
Comptroller General of the United States shall submit to the 
appropriate congressional committees a report on the risks to the 
United States posed by the Federal debt of the United States.
    (b) Content of Report.--Each report submitted under this section 
shall include the following:
            (1) An analysis of the current and foreseeable risks to the 
        long-term national security and economic stability of the 
        United States posed by the Federal debt of the United States.
            (2) A specific determination of whether the levels of risk 
        identified under paragraph (1) are sustainable.
            (3) If the determination under paragraph (2) is that the 
        levels of risk are unsustainable, specific recommendations for 
        reducing the levels of risk to sustainable levels, in a manner 
        that results in a reduction in Federal spending.

SEC. 706. CORRECTIVE ACTION TO ADDRESS UNACCEPTABLE AND UNSUSTAINABLE 
              RISKS TO UNITED STATES NATIONAL SECURITY AND ECONOMIC 
              STABILITY.

    In any case in which the President determines under section 
704(b)(4)(C) that a foreign country's holdings of debt instruments of 
the United States pose an unacceptable risk to the long-term national 
security or economic stability of the United States, the President 
shall, within 30 days of the determination--
            (1) formulate a plan of action to reduce the risk level to 
        an acceptable and sustainable level, in a manner that results 
        in a reduction in Federal spending;
            (2) submit to the appropriate congressional committees a 
        report on the plan of action that includes a timeline for the 
        implementation of the plan and recommendations for any 
        legislative action that would be required to fully implement 
        the plan; and
            (3) move expeditiously to implement the plan in order to 
        protect the long-term national security and economic stability 
        of the United States.

      TITLE VIII--TRANSPARENCY REQUIREMENTS FOR FOREIGN-HELD DEBT

SEC. 801. SHORT TITLE.

    This title may be cited as the ``Foreign-Held Debt Transparency and 
Threat Assessment Act''.

SEC. 802. DEFINITIONS.

    In this title:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the following:
                    (A) The Committee on Armed Services, the Committee 
                on Foreign Relations, the Committee on Finance, the 
                Committee on Banking, Housing, and Urban Affairs, and 
                the Committee on the Budget of the Senate.
                    (B) The Committee on Armed Services, the Committee 
                on Foreign Affairs, the Committee on Ways and Means, 
                the Committee on Financial Services, and the Committee 
                on the Budget of the House of Representatives.
            (2) Debt instruments of the united states.--The term ``debt 
        instruments of the United States'' means all bills, notes, and 
        bonds held by the public and issued or guaranteed by the United 
        States or by an entity of the United States Government.

SEC. 803. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the growing Federal debt of the United States has the 
        potential to jeopardize the national security and economic 
        stability of the United States;
            (2) large foreign holdings of debt instruments of the 
        United States have the potential to make the United States 
        vulnerable to undue influence by foreign creditors in national 
        security and economic policymaking;
            (3) the People's Republic of China, Japan, and the United 
        Kingdom are the 3 largest foreign holders of debt instruments 
        of the United States; and
            (4) the current level of transparency in the scope and 
        extent of foreign holdings of debt instruments of the United 
        States is inadequate and needs to be improved.

SEC. 804. ANNUAL REPORT ON RISKS POSED BY FOREIGN HOLDINGS OF DEBT 
              INSTRUMENTS OF THE UNITED STATES.

    (a) Annual Report.--Not later than March 31 of each year, the 
Secretary of the Treasury shall submit to the appropriate congressional 
committees a report on the risks posed by foreign holdings of debt 
instruments of the United States, in both classified and unclassified 
form.
    (b) Matters To Be Included.--Each report submitted under this 
section shall include the following:
            (1) The most recent data available on foreign holdings of 
        debt instruments of the United States, which data shall not be 
        older than the date that is 9 months preceding the date of the 
        report.
            (2) The total amount of debt instruments of the United 
        States that are held by foreign residents, broken out by the 
        residents' country of domicile and by public and private 
        residents.
            (3) An analysis of the current and foreseeable risks to the 
        long-term national security and economic stability of the 
        United States posed by foreign holdings of debt instruments of 
        the United States.
    (c) Public Availability.--The Secretary of the Treasury shall make 
each report required by subsection (a) available, in its unclassified 
form, to the public by posting it on the Internet in a conspicuous 
manner and location.

SEC. 805. ANNUAL REPORT ON RISKS POSED BY THE FEDERAL DEBT OF THE 
              UNITED STATES.

    (a) In General.--Not later than March 31 of each year, the 
Comptroller General of the United States shall submit to the 
appropriate congressional committees a report on the risks to the 
United States posed by the Federal debt of the United States.
    (b) Content of Report.--Each report submitted under this section 
shall include the following:
            (1) An analysis of the current and foreseeable risks to the 
        long-term national security and economic stability of the 
        United States posed by the Federal debt of the United States.
            (2) Specific recommendations for reducing the levels of 
        risk resulting from the Federal debt.

SEC. 806. CORRECTIVE ACTION TO ADDRESS UNACCEPTABLE RISKS TO UNITED 
              STATES NATIONAL SECURITY AND ECONOMIC STABILITY.

    If the President determines that foreign holdings of debt 
instruments of the United States pose an unacceptable risk to the long-
term national security or economic stability of the United States, the 
President shall, within 30 days of the determination--
            (1) formulate a plan of action to reduce such risk;
            (2) submit to the appropriate congressional committees a 
        report on the plan of action that includes a timeline for the 
        implementation of the plan and recommendations for any 
        legislative action that would be required to fully implement 
        the plan; and
            (3) move expeditiously to implement the plan in order to 
        protect the long-term national security and economic stability 
        of the United States.

               TITLE IX--OFFICE OF THE HOMEOWNER ADVOCATE

SEC. 901. OFFICE OF THE HOMEOWNER ADVOCATE.

    (a) Establishment.--There is established in the Department of the 
Treasury an office to be known as the ``Office of the Homeowner 
Advocate'' (in this title referred to as the ``Office'').
    (b) Director.--
            (1) In general.--The Director of the Office of the 
        Homeowner Advocate (in this title referred to as the 
        ``Director'') shall report directly to the Assistant Secretary 
        of the Treasury for Financial Stability, and shall be entitled 
        to compensation at the same rate as the highest rate of basic 
        pay established for the Senior Executive Service under section 
        5382 of title 5, United States Code.
            (2) Appointment.--The Director shall be appointed by the 
        Secretary, after consultation with the Secretary of the 
        Department of Housing and Urban Development, and without regard 
        to the provisions of title 5, United States Code, relating to 
        appointments in the competitive service or the Senior Executive 
        Service.
            (3) Qualifications.--An individual appointed under 
        paragraph (2) shall have--
                    (A) experience as an advocate for homeowners; and
                    (B) experience dealing with mortgage servicers.
            (4) Restriction on employment.--An individual may be 
        appointed as Director only if such individual was not an 
        officer or employee of either a mortgage servicer or the 
        Department of the Treasury during the 4-year period preceding 
        the date of such appointment.
            (5) Hiring authority.--The Director shall have the 
        authority to hire staff, obtain support by contract, and manage 
        the budget of the Office of the Homeowner Advocate.

SEC. 902. FUNCTIONS OF THE OFFICE.

    (a) In General.--It shall be the function of the Office--
            (1) to assist homeowners, housing counselors, and housing 
        lawyers in resolving problems with the Home Affordable 
        Modification Program of the Making Home Affordable initiative 
        of the Secretary, authorized under the Emergency Economic 
        Stabilization Act of 2008 (in this title referred to as the 
        ``Home Affordable Modification Program'')
            (2) to identify areas, both individual and systematic, in 
        which homeowners, housing counselors, and housing lawyers have 
        problems in dealings with the Home Affordable Modification 
        Program;
            (3) to the extent possible, to propose changes in the 
        administrative practices of the Home Affordable Modification 
        Program, to mitigate problems identified under paragraph (2);
            (4) to identify potential legislative changes which may be 
        appropriate to mitigate such problems; and
            (5) to implement other programs and initiatives that the 
        Director deems important to assisting homeowners, housing 
        counselors, and housing lawyers in resolving problems with the 
        Home Affordable Modification Program, which may include--
                    (A) running a triage hotline for homeowners at risk 
                of foreclosure;
                    (B) providing homeowners with access to housing 
                counseling programs of the Department of Housing and 
                Urban Development at no cost to the homeowner;
                    (C) developing Internet tools related to the Home 
                Affordable Modification Program; and
                    (D) developing training and educational materials.
    (b) Authority.--
            (1) In general.--Staff designated by the Director shall 
        have the authority to implement servicer remedies, on a case-
        by-case basis, subject to the approval of the Assistant 
        Secretary of the Treasury for Financial Stability.
            (2) Resolution of homeowner concerns.--The Office shall, to 
        the extent possible, resolve all homeowner concerns not later 
        than 30 days after the opening of a case with such homeowner.
    (c) Commencement of Operations.--The Office shall commence its 
operations, as required by this title, not later than 3 months after 
the date of enactment of this Act.
    (d) Sunset.--The Office shall cease operations as of the date on 
which the Home Affordable Modification Program ceases to operate.

SEC. 903. RELATIONSHIP WITH EXISTING ENTITIES.

    (a) Transfer.--The Office shall coordinate and centralize all 
complaint escalations relating to the Home Affordable Modification 
Program.
    (b) Hotline.--The HOPE hotline (or any successor triage hotline) 
shall reroute all complaints relating to the Home Affordable 
Modification Program to the Office.
    (c) Coordination.--The Office shall coordinate with the compliance 
office of the Office of Financial Stability of the Department of the 
Treasury and the Homeownership Preservation Office of the Department of 
the Treasury.

SEC. 904. RULE OF CONSTRUCTION.

    Nothing in this section shall prohibit a mortgage servicer from 
evaluating a homeowner for eligibility under the Home Affordable 
Foreclosure Alternatives Program while a case is still open with the 
Office of the Homeowner Advocate. Nothing in this section may be 
construed to relieve any loan services from otherwise applicable rules, 
directives, or similar guidance under the Home Affordable Modification 
Program relating to the continuation or completion of foreclosure 
proceedings.

SEC. 905. REPORTS TO CONGRESS.

    (a) Testimony.--The Director shall be available to testify before 
the Committee on Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of Representatives, 
not less frequently than 4 times a year, or at any time at the request 
of the Chairs of either committee.
    (b) Reports.--Once annually, the Director shall provide a detailed 
report to Congress on the Home Affordable Modification Program. Such 
report shall contain full and substantive analysis, in addition to 
statistical information, including, at a minimum--
            (1) data and analysis of the types and volume of complaints 
        received from homeowners, housing counselors, and housing 
        lawyers, broken down by category of servicer, except that 
        servicers may not be identified by name in the report;
            (2) a summary of not fewer than 20 of the most serious 
        problems encountered by Home Affordable Modification Program 
        participants, including a description of the nature of such 
        problems;
            (3) to the extent known, identification of the 10 most 
        litigated issues for Home Affordable Modification Program 
        participants, including recommendations for mitigating such 
        disputes;
            (4) data and analysis on the resolutions of the complaints 
        received from homeowners, housing counselors, and housing 
        lawyers;
            (5) identification of any programs or initiatives that the 
        Office has taken to improve the Home Affordable Modification 
        Program;
            (6) recommendations for such administrative and legislative 
        action as may be appropriate to resolve problems encountered by 
        Home Affordable Modification Program participants; and
            (7) such other information as the Director may deem 
        advisable.

SEC. 906. FUNDING.

    Amounts made available for the costs of administration of the Home 
Affordable Modification Program that are not otherwise obligated shall 
be available to carry out the duties of the Office. Funding shall be 
maintained at levels adequate to reasonably carry out the functions of 
the Office.

SEC. 907. PROHIBITION ON PARTICIPATION IN MAKING HOME AFFORDABLE FOR 
              BORROWERS WHO STRATEGICALLY DEFAULT.

    No mortgage may be modified under the Making Home Affordable 
Program, or with any funds from the Troubled Asset Relief Program, 
unless the servicer of the mortgage loan has determined, in accordance 
with standards and requirements established by the Secretary of the 
Treasury, that the mortgagor cannot afford to make payments under the 
terms of the existing mortgage loan. The Secretary of the Treasury, in 
consultation with the Secretary of Housing and Urban Development, shall 
issue rules to carry out this section not later than 90 days after the 
date of enactment of this Act. This section shall not apply to any 
refinancing or modifications made under the ``FHA Program Adjustments 
to Support Refinancings for Underwater Homeowners,'' announced by the 
Department of the Treasury and the Department of Housing and Urban 
Development on March 26, 2010, as long as the program continues to be 
structured so that borrowers participating in the FHA refinance program 
cannot be in default on their primary mortgage at the time of refinance 
and their eligibility in the program is not helped if they are in 
default on their second mortgage, and thus lack a strategic reason to 
go into default on either their first or second mortgage to participate 
in the program.

SEC. 908. PUBLIC AVAILABILITY OF INFORMATION.

    (a) Public Availability of Data.--The Secretary of the Treasury 
shall revise the guidelines for the Home Affordable Modification 
Program of the Making Home Affordable initiative of the Secretary of 
the Treasury, authorized under the Emergency Economic Stabilization Act 
of 2008 (Public Law 110-343), to establish that the data collected by 
the Secretary of the Treasury from each mortgage servicer and lender 
participating in the Program is made public in accordance with 
subsection (b).
    (b) Content.--Not more than 60 days after each monthly deadline for 
submission of data by mortgage servicers and lender participating in 
the program, the Treasury shall make all data tables available to the 
public at the individual record level. This data shall include but not 
be limited to--
            (1) higher risk loans, including loans made in connection 
        with any program to provide expanded loan approvals, shall be 
        reported separately;
            (2) disclose--
                    (A) the rate or pace at which such mortgages are 
                becoming seriously delinquent;
                    (B) whether such rate or pace is increasing or 
                decreasing;
                    (C) if there are certain subsets within the loans 
                covered by this section that have greater or lesser 
                rates or paces of delinquency; and
                    (D) if such subsets exist, the characteristics of 
                such subset of mortgages;
            (3) with respect to the loss mitigation efforts of the 
        loan--
                    (A) the processes and practices that the reporter 
                has in effect to minimize losses on mortgages covered 
                by this section; and
                    (B) the manner and methods by which such processes 
                and practices are being monitored for effectiveness;
            (4) disclose, with respect to loans that are or become 60 
        or more days past due, (provided that for purposes of 
        disclosure under this paragraph that each loan should have a 
        unique number that is not the same as any loan number the 
        borrower, originator, or servicer uses), the following 
        attributes--
                    (A) the original loan amount;
                    (B) the current loan amount;
                    (C) the loan-to-value ratio and combined loan-to-
                value ratio, both at origination and currently, and the 
                number of liens on the property;
                    (D) the property valuation at the time of 
                origination of the loan, and all subsequent property 
                valuations and the date of each valuation;
                    (E) each relevant credit score of each borrower 
                obtained at any time in connection with the loan, with 
                the date of the credit score, to the extent allowed by 
                existing law;
                    (F) whether the loan has any mortgage or other 
                credit insurance or guarantee;
                    (G) the current interest rate on such loan;
                    (H) any rate caps and floors if the loan is an 
                adjustable rate mortgage loan;
                    (I) the adjustable rate mortgage index or indices 
                for such loan;
                    (J) whether the loan is currently past due, and if 
                so how many days such loan is past due;
                    (K) the total number of days the loan has been past 
                due at any time;
                    (L) whether the loan is subject to a balloon 
                payment;
                    (M) the date of each modification of the loan;
                    (N) whether any amounts of loan principal has been 
                deferred or written off, and if so, the date and amount 
                of each deferral and the date and amount of each 
                writedown;
                    (O) whether the interest rate was changed from a 
                rate that could adjust to a fixed rate, and if so, the 
                period of time for which the rate will be fixed;
                    (P) the amount by which the interest rate on the 
                loan was reduced, and for what period of time it was 
                reduced;
                    (Q) if the interest rate was reduced or fixed for a 
                period of time less than the remaining loan term, on 
                what dates, and to what rates, could the rate 
                potentially increase in the future;
                    (R) whether the loan term was modified, and if so, 
                whether it was extended or shortened, and by what 
                amount of time;
                    (S) whether the loan is in the process of 
                foreclosure or similar procedure, whether judicial or 
                otherwise; and
                    (T) whether a foreclosure or similar procedure, 
                whether judicial or otherwise, has been completed.
    (c) Guidelines and Regulations.--The Secretary of the Treasury 
shall establish guidelines and regulations necessary--
            (1) to ensure that the privacy of individual consumers is 
        appropriately protected in the reports under this section;
            (2) to make the data reported under this subsection 
        available on a public website with no cost to access the data, 
        in a consistent format;
            (3) to update the data no less frequently than monthly;
            (4) to establish procedures for disclosing such data to the 
        public on a public website with no cost to access the data; and
            (5) to allow the Secretary to make such deletions as the 
        Secretary may determine to be appropriate to protect any 
        privacy interest of any loan modification applicant, including 
        the deletion or alteration of the applicant's name and 
        identification number.
    (d) Exception.--No data shall have to be disclosed if it voids or 
violates existing contracts between the Secretary of Treasury and 
mortgage servicers as part of the Making Home Affordable Program.

                     TITLE X--BUDGETARY PROVISIONS

SEC. 1001. 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, jointly submitted for printing in the 
Congressional Record by the Chairmen of the Senate Budget Committee, 
provided that such statement has been submitted prior to the vote on 
passage.
                                                       Calendar No. 572

111th CONGRESS

  2d Session

                                S. 3793

_______________________________________________________________________

                                 A BILL

         To extend expiring provisions and for other purposes.

_______________________________________________________________________

                           September 20, 2010

            Read the second time and placed on the calendar