1.Short title; amendment of
1986 Code; table of contents
(a)This Act may be cited
as the Job Creation and Tax Cuts Act
of 2010
.
(b)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)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.
<enum>I</enum><header>Infrastructure
incentives</header>
<section id="H3DA6796E9C3E47EC90BE959C36717300"><enum>101.</enum><header>Extension of
Build America Bonds</header>
<subsection id="H0A184722BE974D358FC81D0AB64BB1FE"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 54AA(d)(1) is amended by striking <quote>January 1, 2011</quote> and
inserting <quote>January 1, 2012</quote>.</text>
</subsection><subsection id="HE0E9BB2E506D4964AAEF03AA6A6939F7"><enum>(b)</enum><header>Extension of
payments to issuers</header>
<paragraph id="HDAEEFBB2045545EAA26049827C783240"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 6431 is
amended—</text>
<subparagraph id="H1006E5662FCA46968C9CB5BBDCA25E28"><enum>(A)</enum><text>by striking
<quote>January 1, 2011</quote> in subsection (a) and inserting <quote>January
1, 2012</quote>; and</text>
</subparagraph><subparagraph id="HF050E08E718B499E829621F457C25AD2"><enum>(B)</enum><text>by striking
<quote>January 1, 2011</quote> in subsection (f)(1)(B) and inserting <quote>a
particular date</quote>.</text>
</subparagraph></paragraph><paragraph id="HB63571F57E4448369EA500F6EB18E7AE"><enum>(2)</enum><header>Conforming
amendments</header><text>Subsection (g) of section 54AA is amended—</text>
<subparagraph id="H4E769244ADC542C2B62E43FB1B2CEAB1"><enum>(A)</enum><text>by striking
<quote>January 1, 2011</quote> and inserting <quote>January 1, 2012</quote>;
and</text>
</subparagraph><subparagraph id="H5BF714A712FC409AB385805F4EBE9C02"><enum>(B)</enum><text>by striking
<quote><header-in-text level="subsection" style="OLC">qualified bonds issued
before 2011</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="subsection" style="OLC">certain qualified
bonds</header-in-text></quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H548C80233A814CC9A6AAA7141D1B85F3"><enum>(c)</enum><header>Reduction in
percentage of payments to issuers</header><text>Subsection (b) of section 6431
is amended—</text>
<paragraph id="H7DC2239E6477442ABECBCFCCFBC3D656"><enum>(1)</enum><text>by striking
<quote>The Secretary</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H73048163B8604C799284B0C963215881" style="OLC">
<paragraph id="HD93961AC2E0D4FBAA51426184595BDE4"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The
Secretary</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H16952D9D967A4671A5FB4C9DCED6DF22"><enum>(2)</enum><text>by striking
<quote>35 percent</quote> and inserting <quote>the applicable
percentage</quote>; and</text>
</paragraph><paragraph id="H317DCE81FFEB461EA72DC35D33DD6272"><enum>(3)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H02928537E5454ABC80582E49AA43A8A5" style="OLC">
<paragraph id="H297E8CD235F6473F985E8CAB9BF28FB2"><enum>(2)</enum><header>Applicable
percentage</header><text display-inline="yes-display-inline">For purposes of
this subsection, the term <quote>applicable percentage</quote> means the
percentage determined in accordance with the following table:</text>
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 2 text, 1st longer" table-type="">
<tgroup cols="2" grid-typeface="1.1" no-carding="1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec coldef="txt" colname="column1" colwidth="217pts" min-data-value="200" rowsep="0"></colspec><colspec coldef="txt-no-ldr" colname="column2" colsep="1" colwidth="108pts" min-data-value="100"></colspec>
<thead>
<row><entry align="center" colname="column1" morerows="0" namest="column1" rowsep="1">In the case of a qualified bond issued during
calendar year:</entry><entry align="center" colname="column2" morerows="0" namest="column2" rowsep="1">The applicable percentage is:</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2009 or 2010</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">35 percent</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">2011</entry><entry align="left" colname="column2" leader-modify="clr-ldr" rowsep="0">32 percent.</entry>
</row>
</tbody>
</tgroup></table>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H43CBF01C1B0D4D06BEC36CA3297300FD"><enum>(d)</enum><header>Current
refundings permitted</header><text>Subsection (g) of section 54AA is amended by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HCFC314ABD07140988B37C47623F39F83" style="OLC">
<paragraph id="H72E53938916C4305A6F3BCC57A00B5B2"><enum>(3)</enum><header>Treatment of
current refunding bonds</header>
<subparagraph id="HA9364E83E68048FC824506FF05AEE301"><enum>(A)</enum><header>In
general</header><text>For purposes of this subsection, the term
<quote>qualified bond</quote> includes any bond (or series of bonds) issued to
refund a qualified bond if—</text>
<clause id="H4D57E5702BC54DE78F3C9438554B7A96"><enum>(i)</enum><text display-inline="yes-display-inline">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,</text>
</clause><clause id="HBEF993A1FB0247C59A4E3ED2E3FBD007"><enum>(ii)</enum><text>the amount of the
refunding bond does not exceed the outstanding amount of the refunded bond,
and</text>
</clause><clause id="H76FD9CA038484F2ABD1716E877C6F170"><enum>(iii)</enum><text>the refunded
bond is redeemed not later than 90 days after the date of the issuance of the
refunding bond.</text>
</clause></subparagraph><subparagraph id="H4808C183BF23462E86808135509896FD"><enum>(B)</enum><header>Applicable
percentage</header><text>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.</text>
</subparagraph><subparagraph id="H77470F2ED71F40CDA8897CDC512C1E76"><enum>(C)</enum><header>Determination of
average maturity</header><text>For purposes of subparagraph (A)(i), average
maturity shall be determined in accordance with section
147(b)(2)(A).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5EEBBD6250E343798910273DC745A100"><enum>(e)</enum><header>Clarification
related to levees and flood control projects</header><text display-inline="yes-display-inline">Subparagraph (A) of section 54AA(g)(2) is
amended by inserting <quote>(including capital expenditures for levees and
other flood control projects)</quote> after <quote>capital
expenditures</quote>.</text>
</subsection></section><section display-inline="no-display-inline" id="HE870AA2C4E8741C2A74F727A55676EDB" section-type="subsequent-section"><enum>102.</enum><header>Exempt-facility
bonds for sewage and water supply facilities</header>
<subsection id="HA61AB88266114AA6AC85DE8ED788E67E"><enum>(a)</enum><header>Bonds for water
and sewage facilities exempt from volume cap on private activity bonds</header>
<paragraph id="HFAE6C800574342A1A73B58ECB8F7C541"><enum>(1)</enum><header>In
general</header><text>Paragraph (3) of section 146(g) is amended by inserting
<quote>(4), (5),</quote> after <quote>(2),</quote>.</text>
</paragraph><paragraph id="HB73237C2B4874B87AD01CD141B96D537"><enum>(2)</enum><header>Conforming
amendment</header><text>Paragraphs (2) and (3)(B) of section 146(k) are both
amended by striking <quote>(4), (5), (6),</quote> and inserting
<quote>(6)</quote>.</text>
</paragraph></subsection><subsection id="H55986B1C67EF4BC88FADB9855FDB6624"><enum>(b)</enum><header>Tax-exempt
issuance by Indian tribal governments</header>
<paragraph id="H5365A0A66275436FB22AD6CDB6A8BA18"><enum>(1)</enum><header>In
general</header><text>Subsection (c) of section 7871 is amended by adding at
the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H53E8E0C37733456E835C5C1CC5B65C1B" style="OLC">
<paragraph id="HA1ABDB3C8CD34A8B8F777E9299C5855D"><enum>(4)</enum><header>Exception for
bonds for water and sewage facilities</header><text display-inline="yes-display-inline">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).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA85DABB3F5D645AB95260683C5304B45"><enum>(2)</enum><header>Conforming
amendment</header><text>Paragraph (2) of section 7871(c) is amended by striking
<quote>paragraph (3)</quote> and inserting <quote>paragraphs (3) and
(4)</quote>.</text>
</paragraph></subsection><subsection id="HEDF9AE3896F246AA9FF2245DA9BEB515"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
obligations issued after the date of the enactment of this Act.</text>
</subsection></section><section id="H7D0FB1D745CB4FE1B816C291CD120FD2"><enum>103.</enum><header>Extension of
exemption from alternative minimum tax treatment for certain tax-exempt
bonds</header>
<subsection id="H0FAA72D6BCBD4828AF868A9924A6202D"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Clause (vi) of
section 57(a)(5)(C) is amended—</text>
<paragraph id="HE242EDBF3F204485B4FE93C6E73BDBA1"><enum>(1)</enum><text>by striking
<quote>January 1, 2011</quote> in subclause (I) and inserting <quote>January 1,
2012</quote>; and</text>
</paragraph><paragraph id="H35A8914628AD40C6BED757763F007FE8"><enum>(2)</enum><text>by striking
<quote><header-in-text level="clause" style="OLC">and
2010</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="clause" style="OLC">, 2010, and
2011</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="H6A431F32D4E04641A1771F89012FD8A0"><enum>(b)</enum><header>Adjusted current
earnings</header><text>Clause (iv) of section 56(g)(4)(B) is amended—</text>
<paragraph id="HE063597DE9244B8BAC3BDA4FFA31E575"><enum>(1)</enum><text>by striking
<quote>January 1, 2011</quote> in subclause (I) and inserting <quote>January 1,
2012</quote>; and</text>
</paragraph><paragraph id="H0C661DD4ACE6433C9A7440562F6A9965"><enum>(2)</enum><text>by striking
<quote><header-in-text level="clause" style="OLC">and
2010</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="clause" style="OLC">, 2010, and
2011</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="H08980F67B0114CCCA6778206375E6F3B"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
obligations issued after December 31, 2010.</text>
</subsection></section><section id="H65A91EBD8C1A48E0BD198F802214B2DB"><enum>104.</enum><header>Extension and
additional allocations of recovery zone bond authority</header>
<subsection id="H5F8E49E2E24A43DDA7A23D98892AC613"><enum>(a)</enum><header>Extension of
recovery zone bond authority</header><text display-inline="yes-display-inline">Section 1400U–2(b)(1) and section
1400U–3(b)(1)(B) are each amended by striking <quote>January 1, 2011</quote>
and inserting <quote>January 1, 2012</quote>.</text>
</subsection><subsection id="HF07B882933A142CAB67B3E8324D0282F"><enum>(b)</enum><header>Additional
allocations of recovery zone bond authority based on
unemployment</header><text>Section 1400U–1 is amended by adding at the end the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H92FA824D61DA40AAA592AB7165CC8DA2" style="OLC">
<subsection id="H6F45E3BF5DB44C599DE6AC01DBB6CCF4"><enum>(c)</enum><header>Allocation of
2010 recovery zone bond limitations based on unemployment</header>
<paragraph id="H50FD3B728C0441E5A55722B14C52C1C5"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H4B6DAFB3C8D04337BB377438B54863BA"><enum>(2)</enum><header>Minimum
allocation</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H756263DDC3594FFC85594489B64D6783"><enum>(3)</enum><header>Allocations by
States</header>
<subparagraph id="HCB43FC4D96FA409E9D6F0E4521A8DA40"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="HEEE98C5E2E114E8A92D20308FFA5C4A2"><enum>(B)</enum><header>2010 allocation
reduced by amount of previous allocation</header><text>Each State shall reduce
(but not below zero)—</text>
<clause id="HA070AFB86A1746DAB842DCD0DCAC29D6"><enum>(i)</enum><text display-inline="yes-display-inline">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</text>
</clause><clause id="HF448C483ADD44373B3872CD27B12981D"><enum>(ii)</enum><text display-inline="yes-display-inline">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).</text>
</clause></subparagraph><subparagraph id="H6A2EFB8E9A4B4351892D0B8B20F98E1B"><enum>(C)</enum><header>Waiver of
suballocations</header><text>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.</text>
</subparagraph><subparagraph id="HEC12046F253942678BD367965CD6D74B"><enum>(D)</enum><header>Special rule for
a municipality in a county</header><text>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.</text>
</subparagraph></paragraph><paragraph id="H757F55A028E544EB9AA266285D53B70A"><enum>(4)</enum><header>2009
unemployment number</header><text>For purposes of this subsection, the term
<quote>2009 unemployment number</quote> 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.</text>
</paragraph><paragraph id="H259B05ED176640619E4690F5772BD35C"><enum>(5)</enum><header>2010 national
limitations</header>
<subparagraph id="HCB4CF84658474E5D97A260316B6B54CE"><enum>(A)</enum><header>Recovery zone
economic development bonds</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="H5CBB85B4F1ED4D6D8CDD1B5B794FB8AB"><enum>(B)</enum><header>Recovery zone
facility bonds</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H242528257A4247408F11D43A4531E349"><enum>(c)</enum><header>Authority of
State to waive certain 2009 allocations</header><text display-inline="yes-display-inline">Subparagraph (A) of section 1400U–1(a)(3)
is amended by adding at the end the following: <quote>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.</quote>.</text>
</subsection></section><section id="H23F436D21C7B4835A82D156F9CEE9BAD"><enum>105.</enum><header>Allowance of
new markets tax credit against alternative minimum tax</header>
<subsection id="H6686DA590550426FB91A6B828BF007D4"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H17218C8E1D344B6FAE8078282031ADEF" style="OLC">
<clause id="H423014EAB86142BCA72E532F5093D902"><enum>(v)</enum><text display-inline="yes-display-inline">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,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H138BD605B8D44CBF957C065797C25DE8"><enum>(b)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><section id="HA58D9B78122C40A78CFD2F2C89674B21"><enum>106.</enum><header>Extension of
tax-exempt eligibility for loans guaranteed by Federal home loan
banks</header><text display-inline="no-display-inline">Clause (iv) of section
149(b)(3)(A) is amended by striking <quote>December 31, 2010</quote> and
inserting <quote>December 31, 2011</quote>.</text>
</section><section id="H62F7419B8C6746FAA421D1AE45AC614E"><enum>107.</enum><header>Extension of
temporary small issuer rules for allocation of tax-exempt interest expense by
financial institutions</header>
<subsection id="HC2AAD318881E48E18E9DCD4D63C40AEA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Clauses (i), (ii),
and (iii) of section 265(b)(3)(G) are each amended by striking <quote>or
2010</quote> and inserting <quote>, 2010, or 2011</quote>.</text>
</subsection><subsection id="H6EC593C6486D4686A2E24E5C2B66AB37"><enum>(b)</enum><header>Conforming
amendment</header><text>Subparagraph (G) of section 265(b)(3) is amended by
striking <quote><header-in-text level="subparagraph" style="OLC">and
2010</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="subparagraph" style="OLC">, 2010, and
2011</header-in-text></quote>.</text>
</subsection><subsection id="HF4777767A1A6412BBFE5D07E2AA192D9"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
obligations issued after December 31, 2010.</text>
</subsection></section><enum>II</enum><header>Extension of
expiring provisions</header>
<subtitle id="H3498C86FF7C64E3BB60AE67AFB686AEA"><enum>A</enum><header>Energy</header>
<section commented="no" id="HACE76A26512E4E38B81902A518BE23E0"><enum>201.</enum><header>Alternative
motor vehicle credit for new qualified hybrid motor vehicles other than
passenger automobiles and light trucks</header>
<subsection commented="no" id="H41509B7B87694AA1A029B1859A60D670"><enum>(a)</enum><header>In
general</header><text>Paragraph (3) of section 30B(k) is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDA4DFBCA81E142F1A1E534C0E658513C"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
purchased after December 31, 2009.</text>
</subsection></section><section id="HE775309810F4465BB3D304071835624B"><enum>202.</enum><header>Incentives for
biodiesel and renewable diesel</header>
<subsection id="HB14D00EB1DC64B7D8B3175EC5CEBF3B3"><enum>(a)</enum><header>Credits for
biodiesel and renewable diesel used as fuel</header><text>Subsection (g) of
section 40A is amended by striking <quote>December 31, 2009</quote> and
inserting <quote>December 31, 2010</quote>.</text>
</subsection><subsection id="H445E6D8264B541DFAB5A3B44FAF20F42"><enum>(b)</enum><header>Excise tax
credits and outlay payments for biodiesel and renewable diesel fuel
mixtures</header>
<paragraph id="H47E51F9D66854D1791334E573C4270C1"><enum>(1)</enum><text>Paragraph (6) of
section 6426(c) is amended by striking <quote>December 31, 2009</quote> and
inserting <quote>December 31, 2010</quote>.</text>
</paragraph><paragraph id="H1DBD98C050E24599AAAD0661051DDC32"><enum>(2)</enum><text>Subparagraph (B)
of section 6427(e)(6) is amended by striking <quote>December 31, 2009</quote>
and inserting <quote>December 31, 2010</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H710C3D6399134A9C97571AF7D0D45A79"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to fuel sold
or used after December 31, 2009.</text>
</subsection></section><section commented="no" id="H46D3E3473E974B45BEC237AE90CD2297"><enum>203.</enum><header>Credit for
electricity produced at certain open-loop biomass facilities</header>
<subsection commented="no" id="H1F37538627BF46C7B40CED7133A50F36"><enum>(a)</enum><header>In
general</header><text>Clause (ii) of section 45(b)(4)(B) is amended—</text>
<paragraph id="HC091315FB6D948FFB67B0210E454B74B"><enum>(1)</enum><text>by striking
<quote>5-year period</quote> and inserting <quote>6-year period</quote>;
and</text>
</paragraph><paragraph id="H35A9777C427F46CD8602F9C526874152"><enum>(2)</enum><text>by adding at the
end the following: <quote>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.</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0C8CE9FD59944CFAA903EE3425CD8C86"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
electricity produced and sold after December 31, 2009.</text>
</subsection></section><section display-inline="no-display-inline" id="H0D185D4D228B44D39EBD057DDEDF9C72" section-type="subsequent-section"><enum>204.</enum><header>Extension and
modification of credit for steel industry fuel</header>
<subsection id="H6F0944B596AB4E589DAE38208D1EBEE9"><enum>(a)</enum><header>Credit
period</header>
<paragraph id="H497A9BE17F014DF19A5832C6D1F5D1BB"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subclause (II) of
section 45(e)(8)(D)(ii) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H55D436C8E51B4AA38840D5759097E25C" style="OLC">
<subclause id="H9F9CF918ABA345E0B92D29D9F89313D1"><enum>(II)</enum><header>Credit
period</header><text display-inline="yes-display-inline">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.</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H5477DDED350B4FE6AF61941AFD980973"><enum>(2)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">Section 45(e)(8)(D)
is amended by striking clause (iii) and by redesignating clause (iv) as clause
(iii).</text>
</paragraph></subsection><subsection id="id0101834AD23043D1B63C39CE4E591CF9"><enum>(b)</enum><header>Extension of
placed-in-service date</header><text display-inline="yes-display-inline">Subparagraph (A) of section 45(d)(8) is
amended—</text>
<paragraph id="id336668C6F51343739038CC803063C2F6"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>(or any modification to
a facility)</quote>; and</text>
</paragraph><paragraph id="id1734E609A8034947BDC29B78B44E5933"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>2010</quote> and
inserting <quote>2011</quote>.</text>
</paragraph></subsection><subsection id="HEEFF02EB7E3A416B8E9546E4FFA3C83E"><enum>(c)</enum><header>Clarifications</header>
<paragraph id="H836879161DFF40E9BC74747AE6D15041"><enum>(1)</enum><header>Steel industry
fuel</header><text display-inline="yes-display-inline">Subclause (I) of section
45(c)(7)(C)(i) is amended by inserting <quote>, a blend of coal and petroleum
coke, or other coke feedstock</quote> after <quote>on coal</quote>.</text>
</paragraph><paragraph id="HE964651305814717A5304479F77FA63C"><enum>(2)</enum><header>Ownership
interest</header><text display-inline="yes-display-inline">Section 45(d)(8) is
amended by adding at the end the following new flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="H33D94E3DB40E4D8D8AF52C49827BDA99" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">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.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H180710F39EA14F61A8A212063D98A12A"><enum>(3)</enum><header>Production and
sale</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="H23C343253FCE47399CA1872C41D71465" style="OLC">
<clause id="H6735EE9EB4C74AD4984068022C6475B0"><enum>(iii)</enum><header>Production and
sale</header><text>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.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HA5D5D608DF024C7E969F08CE3D55199A"><enum>(d)</enum><header>Specified credit
for purposes of alternative minimum tax exclusion</header><text display-inline="yes-display-inline">Subclause (II) of section 38(c)(4)(B)(iii)
is amended by inserting <quote>(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))</quote> after <quote>service</quote>.</text>
</subsection><subsection id="H6952051326474133BA79AE4A7DA10933"><enum>(e)</enum><header>Effective
dates</header>
<paragraph id="HD7DF1F1191C14E4D87A4C6445863621F"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The amendments made
by subsections (a), (b), and (d) shall apply to fuel produced and sold after
September 30, 2008.</text>
</paragraph><paragraph id="HCD790416745F4EBEB4AA0F519BE46C27"><enum>(2)</enum><header>Clarifications</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection></section><section id="HC4B12B7D688843EE87D280360993B2C9"><enum>205.</enum><header>Credit for
producing fuel from coke or coke gas</header>
<subsection id="HF6FD4A9ABFDF42A19C60F25AE1DF1DC3"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 45K(g) is amended by striking
<quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1F57F0BD05914C85AED7EADB2BA2974F"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to facilities
placed in service after December 31, 2009.</text>
</subsection></section><section id="H6599C508648A469D9C5D0B07D8A9222E"><enum>206.</enum><header>New energy
efficient home credit</header>
<subsection id="HEFBB7BF63F914B77A94003244D76EA04"><enum>(a)</enum><header>In
general</header><text>Subsection (g) of section 45L is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HEF263B96ECE54FCDB14EC319803B689B"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to homes
acquired after December 31, 2009.</text>
</subsection></section><section display-inline="no-display-inline" id="H4ED01F2629BC47C782392B02ADE5BF63" section-type="subsequent-section"><enum>207.</enum><header>Excise tax credits
and outlay payments for alternative fuel and alternative fuel mixtures</header>
<subsection id="HD4A626A1EE0D49669F1478D9CD056ACB"><enum>(a)</enum><header>Alternative fuel
credit</header><text display-inline="yes-display-inline">Paragraph (5) of
section 6426(d) is amended by striking <quote>after December 31, 2009</quote>
and all that follows and
inserting</text>
<quoted-block display-inline="yes-display-inline" id="H6FE51B4BDF07440C9392E940350D37AB" style="OLC">
<text>after—</text><subparagraph id="H6DECB005B24943BCB264C9D679837F2A"><enum>(A)</enum><text>September 30,
2014, in the case of liquefied hydrogen,</text>
</subparagraph><subparagraph id="HB01D0D799EA5436182D3091C1FC5C599"><enum>(B)</enum><text>December 31, 2010,
in the case of fuels described in subparagraph (A), (C), (F), or (G) of
paragraph (2), and</text>
</subparagraph><subparagraph id="HAF86A60EDBB84863A4995827A263FE28"><enum>(C)</enum><text>December 31, 2009,
in any other
case.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HB9B0CC0EAEA741B289B5DF1D052D03E1"><enum>(b)</enum><header>Alternative fuel
mixture credit</header><text display-inline="yes-display-inline">Paragraph (3)
of section 6426(e) is amended by striking <quote>after December 31,
2009</quote> and all that follows and
inserting</text>
<quoted-block display-inline="yes-display-inline" id="HF1D67FC5258A486C890847CA6E764D8E" style="OLC">
<text>after—</text><subparagraph commented="no" id="HF4B97F81AF5D4814BA6E8B2C376DD037"><enum>(A)</enum><text>September 30,
2014, in the case of liquefied hydrogen,</text>
</subparagraph><subparagraph commented="no" id="HEE349E21007F433FBD568E826AB5C673"><enum>(B)</enum><text>December 31, 2010,
in the case of fuels described in subparagraph (A), (C), (F), or (G) of
subsection (d)(2), and</text>
</subparagraph><subparagraph commented="no" id="H660D8A1D2B754D919E0D3538D156619A"><enum>(C)</enum><text>December 31, 2009,
in any other
case.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H385A46CB69464294A151FEBFB9DA2C5A"><enum>(c)</enum><header>Payment
authority</header>
<paragraph id="H17E93297EEE74EFDBF6201860A5B52D1"><enum>(1)</enum><header>In
general</header><text>Paragraph (6) of section 6427(e) is amended by striking
<quote>and</quote> at the end of subparagraph (C), by striking the period at
the end of subparagraph (D) and inserting <quote>, and</quote>, and by adding
at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HD7302CBCBBC049E6B5D9EADB52CAC726" style="OLC">
<subparagraph id="H44A675B21D6F47CBB909DA61AFD434B0"><enum>(E)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H637805C3AE8D47679F3D053D0B726CD3"><enum>(2)</enum><header>Conforming
amendment</header><text>Subparagraph (C) of section 6427(e)(6) is amended by
inserting <quote>or (E)</quote> after <quote>subparagraph (D)</quote>.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H2703228C69C9487EAB66E4C2DDEDFF75"><enum>(d)</enum><header>Exclusion of
black liquor from credit eligibility</header><text display-inline="yes-display-inline">The last sentence of section 6426(d)(2) is
amended by striking <quote>or biodiesel</quote> and inserting <quote>biodiesel,
or any fuel (including lignin, wood residues, or spent pulping liquors) derived
from the production of paper or pulp</quote>.</text>
</subsection><subsection id="HF0AA575BFBBA4C378A590D7153F3CEF8"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to fuel sold
or used after December 31, 2009.</text>
</subsection></section><section id="H66118AB9B863406094135C917C3DD4F4"><enum>208.</enum><header>Special rule
for sales or dispositions to implement FERC or State electric restructuring
policy for qualified electric utilities</header>
<subsection id="HF7A440EA53484E30928DE1FB576A892C"><enum>(a)</enum><header>In
general</header><text>Paragraph (3) of section 451(i) is amended by striking
<quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection id="HF0DCC6937FDC47898850E5BCD9BC5581"><enum>(b)</enum><header>Modification of
definition of independent transmission company</header>
<paragraph id="HD0AE2A784A454B5B9B068E6D5F4CE7C6"><enum>(1)</enum><header>In
general</header><text>Clause (i) of section 451(i)(4)(B) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HD916722C86AC4F7C82DFF1C7B82F9F0C" style="OLC">
<clause id="HFE08BA9960B145B59236895E4653AF4E"><enum>(i)</enum><text display-inline="yes-display-inline">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—</text>
<subclause id="H5D47F533B9CA4025967C2AC6438E8660"><enum>(I)</enum><text>is not itself a
market participant as determined by the Commission, and also is not controlled
by any such market participant, or</text>
</subclause><subclause id="HF3290261890242E68596D06E3CC62904"><enum>(II)</enum><text display-inline="yes-display-inline">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</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB1169E5B11594530B8059FB2B8CE74E2"><enum>(2)</enum><header>Related
persons</header><text>Paragraph (4) of section 451(i) is amended by adding at
the end the following flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="H3FA549803DE94852A1E41CFC381A2EDD" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">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.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2539EB33E5AA41F2979DFB135764C69E"><enum>(c)</enum><header>Effective
date</header>
<paragraph id="HD2431980452E4C34A129DBF314E97CC2"><enum>(1)</enum><header>In
general</header><text>The amendment made by subsection (a) shall apply to
dispositions after December 31, 2009.</text>
</paragraph><paragraph id="HADCBACB524194E299974F78FC7D8DE18"><enum>(2)</enum><header>Modifications</header><text display-inline="yes-display-inline">The amendments made by subsection (b) shall
apply to dispositions after the date of the enactment of this Act.</text>
</paragraph></subsection></section><section id="HF1E74E6267BE4908B17F9DAAA8229DE4"><enum>209.</enum><header>Suspension of
limitation on percentage depletion for oil and gas from marginal wells</header>
<subsection id="H7764BF6AB41946EFA475F7FA884D23D9"><enum>(a)</enum><header>In
general</header><text>Clause (ii) of section 613A(c)(6)(H) is amended by
striking <quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD6394F7359AB44EE9215BB9EA5802A8D"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><section display-inline="no-display-inline" id="H46DC2A0DA72245FE938DBC6F090624CA" section-type="subsequent-section"><enum>210.</enum><header>Direct payment of
energy efficient appliances tax credit</header><text display-inline="no-display-inline">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.</text>
</section><section display-inline="no-display-inline" id="H5C5E3C1ABDA14A41B015989941959BA8" section-type="subsequent-section"><enum>211.</enum><header>Modification of
standards for windows, doors, and skylights with respect to the credit for
nonbusiness energy property</header>
<subsection id="H2DBD3EAE0B0C472D9477DA8D41A41EB5"><enum>(a)</enum><header>In
general</header><text>Paragraph (4) of section 25C(c) is amended by striking
<quote>unless</quote> and all that follows and inserting “unless—</text>
<quoted-block display-inline="no-display-inline" id="HE8BD572F04A249ACB1B592C32DB0984B" style="OLC">
<subparagraph id="H431AB76D9B184CD782A879B8AE9B0890"><enum>(A)</enum><text>in the case of any
component placed in service after the date which is 90 days after the date of
the enactment of the <short-title>Job Creation and Tax
Cuts Act of 2010</short-title>, 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),</text>
</subparagraph><subparagraph id="H588EA25A17BD4E7DAFD122B0F79FEA05"><enum>(B)</enum><text>in the case of any
component placed in service after the date of the enactment of the
<short-title>Job Creation and Tax Cuts Act of
2010</short-title> 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</text>
</subparagraph><subparagraph id="H2B81130CF7C24CFE83FBB78CB3B88C06"><enum>(C)</enum><text>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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5677E6D6A0744126897F40771E2C11EB"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section></subtitle><subtitle id="H34A5BF038B934A8C99646C53500F5A21"><enum>B</enum><header>Individual tax
relief</header>
<part id="H661ED785074C485E953632C9A1E6FA3B"><enum>I</enum><header>Miscellaneous
provisions</header>
<section id="H69A065E37A794B06A130784060D3D4C5"><enum>221.</enum><header>Deduction for
certain expenses of elementary and secondary school teachers</header>
<subsection id="HFAAD20CEA67643F6A0C1C7D6C94AB18F"><enum>(a)</enum><header>In
general</header><text>Subparagraph (D) of section 62(a)(2) is amended by
striking <quote>or 2009</quote> and inserting <quote>2009, or
2010</quote>.</text>
</subsection><subsection id="HFAE9B96DB0824C22B36185022EE8EAC5"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><section id="HE5559DB0A55446738FFA404363011685"><enum>222.</enum><header>Additional
standard deduction for State and local real property taxes</header>
<subsection id="H972D2C3D186D4F429FFBBACD1DB13AC4"><enum>(a)</enum><header>In
general</header><text>Subparagraph (C) of section 63(c)(1) is amended by
striking <quote>or 2009</quote> and inserting <quote>2009, or
2010</quote>.</text>
</subsection><subsection id="H54130C7BCEE440E8A891746B7BF908F6"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><section id="H6B3094BE41234906ACB43BBB033EA22F"><enum>223.</enum><header>Deduction of
State and local sales taxes</header>
<subsection id="H7DC683243A854B9A9EF3EB1E0D9BA10B"><enum>(a)</enum><header>In
general</header><text>Subparagraph (I) of section 164(b)(5) is amended by
striking <quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection id="H968890F327AD4DECBBE380A4A559E1E1"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><section id="H34A41CDE81C84894A1B6DBE9F13933A8"><enum>224.</enum><header>Contributions
of capital gain real property made for conservation purposes</header>
<subsection id="HEF2B1EB91B6C4120998C169609BBCE98"><enum>(a)</enum><header>In
general</header><text>Clause (vi) of section 170(b)(1)(E) is amended by
striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection id="H851A0A6484E541319A86E6A89F5938EB"><enum>(b)</enum><header>Contributions by
certain corporate farmers and ranchers</header><text>Clause (iii) of section
170(b)(2)(B) is amended by striking <quote>December 31, 2009</quote> and
inserting <quote>December 31, 2010</quote>.</text>
</subsection><subsection id="HE625422F9E784441895F71B4E9C5053A"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
contributions made in taxable years beginning after December 31, 2009.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H260A8B0EE86547269BAAC910B1072136"><enum>225.</enum><header>Above-the-line
deduction for qualified tuition and related expenses</header>
<subsection id="H03BCD677C801425AA4979D983403F76C"><enum>(a)</enum><header>In
general</header><text>Subsection (e) of section 222 is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDD5E814D0520493D836E2325A0F3FC61"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection><subsection id="H5CDC808E4A404DE1A30CF93E0E013E61"><enum>(c)</enum><header>Temporary
coordination with Hope and Lifetime Learning Credits</header><text display-inline="yes-display-inline">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—</text>
<paragraph id="H9E96640BBA5D4F67AFABF8D9CCBE334B"><enum>(1)</enum><text>the taxpayer’s net
Federal income tax reduction which would be attributable to such deduction for
such taxable year, is less than</text>
</paragraph><paragraph id="H94027892AB8B4F01BD17559751F95303"><enum>(2)</enum><text>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).</text>
</paragraph></subsection></section><section id="H55400AE6A6904618A31718C04DB06915"><enum>226.</enum><header>Tax-free
distributions from individual retirement plans for charitable purposes</header>
<subsection id="H1F3ABDB8F51B4C358D26609F427A312D"><enum>(a)</enum><header>In
general</header><text>Subparagraph (F) of section 408(d)(8) is amended by
striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA713221D252A475591A2A8B6E83F42A9"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
distributions made in taxable years beginning after December 31, 2009.</text>
</subsection></section><section id="HC9632F9536D9475BA1809B673508BE83"><enum>227.</enum><header>Look-thru of
certain regulated investment company stock in determining gross estate of
nonresidents</header>
<subsection id="H247114492BEB4CE6A8B11FA5B3ED217D"><enum>(a)</enum><header>In
general</header><text>Paragraph (3) of section 2105(d) is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H01F7F62415E041C7B9D4558FE9B5A133"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to estates of
decedents dying after December 31, 2009.</text>
</subsection></section></part><part id="H92896F24F70540B79766B7EC6D5B9F56"><enum>II</enum><header>Low-income
housing credits</header>
<section id="id0662F9C45BEE45518494076961E2ED02"><enum>231.</enum><header>Election for
direct payment of low-income housing credit for 2010</header>
<subsection id="id290A3470AFB04AAE845B4BF46E6B0F09"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 42 is amended
by redesignating subsection (n) as subsection (o) and by inserting after
subsection (m) the following new subsection:</text>
<quoted-block act-name="" id="idD2EEB33DD7AC465F8B657BA6756D0A4E" style="OLC">
<subsection id="idB2FB8EA4D27D4313B6CB150EE8808B53"><enum>(n)</enum><header>Election for
direct payment of credit</header>
<paragraph id="idDB639846685243809A4B0D65B0FF0F69"><enum>(1)</enum><header>In
general</header><text>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).</text>
</paragraph><paragraph id="id9AFB4A840C614F1684B640E73675BFCA"><enum>(2)</enum><header>2010 low-income
housing refundable credit election amount</header><text>For purposes of this
subsection, the term <quote>2010 low-income housing refundable credit election
amount</quote> means, with respect to any State, such amount as the State may
elect which does not exceed 85 percent of the product of—</text>
<subparagraph id="id090D4CE8770D49F6B0CBE50AA8900FCC"><enum>(A)</enum><text>the sum
of—</text>
<clause id="idF8A57FD150D544BC87F2EAF0FE0441EB"><enum>(i)</enum><text>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</text>
</clause><clause id="id5CD719FF4B43425784157B5A56E4952B"><enum>(ii)</enum><text>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</text>
</clause></subparagraph><subparagraph id="idB1CE5510DCE04964A4320C46595C5B59"><enum>(B)</enum><text>10.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">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)</continuation-text></paragraph><paragraph id="id9C4BC695E17B4BA5B2DC291321273212"><enum>(3)</enum><header>Coordination
with non-refundable credit</header><text>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).</text>
</paragraph><paragraph id="id28B55CD9FEED439093F940001646989C"><enum>(4)</enum><header>Special rule
for basis</header><text>Basis of a qualified low-income building shall not be
reduced by the amount of any payment made under this subsection.</text>
</paragraph><paragraph id="id7089C0104C87499B9215790275192C18"><enum>(5)</enum><header>Payment of
credit; use to finance low-income buildings</header><text>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 <quote>January 1,
2012</quote> for <quote>January 1,
2011</quote>.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id2050EC6793F14342B142FDFE42ED4930"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 1324(b)(2) of title 31, United States Code, is
amended by inserting <quote>42(n),</quote> after <quote>36C,</quote>.</text>
</subsection></section><section id="idDF2454EEB6664323A6A1BBCC30980E38" section-type="subsequent-section"><enum>232.</enum><header>Low-income housing
grant election</header>
<subsection id="idD47E7DA42E384DA3BB3D57DE82596924"><enum>(a)</enum><header>Clarification
of eligibility of low-income housing credits for low-income housing grant
election</header><text display-inline="yes-display-inline">Paragraph (1) of
section 1602(b) of the American Recovery and Reinvestment Tax Act of 2009 is
amended—</text>
<paragraph id="id4FD80003C218463D8D375FEEBD7B1ACC"><enum>(1)</enum><text>by inserting
<quote>, 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)</quote> after <quote>1986</quote> in
subparagraph (A), and</text>
</paragraph><paragraph id="idE9B42884E716433E96A3004D18B8A3FA"><enum>(2)</enum><text>by inserting
<quote>, plus any credits for 2009 attributable to the application of such
section 702(d)(2) and 704(b)</quote> after <quote>such section</quote> in
subparagraph (B).</text>
</paragraph></subsection><subsection id="id6DD63561718C45069F66F55BAC1C08E3"><enum>(b)</enum><header>Application of
additional housing credit amount for purposes of 2009 grant
election</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="id01075ACA15994166880F328AD2925EEC" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subsection">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).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id357751945661464C953DE8FEAC54E60E"><enum>(c)</enum><header>Effective
date</header><text>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.</text>
</subsection></section></part></subtitle><subtitle id="H261614B09ECF4C0493ED3825D92007F7"><enum>C</enum><header>Business tax
relief</header>
<section id="HEA1BE76417FC4AF7989B9C5B185BA585"><enum>241.</enum><header>Research
credit</header>
<subsection id="H4CCFB68A5EC243A0A97224CEB0D3BC15"><enum>(a)</enum><header>In
general</header><text>Subparagraph (B) of section 41(h)(1) is amended by
striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection id="H84679879C65C452785689AE4950A7EC3"><enum>(b)</enum><header>Conforming
amendment</header><text>Subparagraph (D) of section 45C(b)(1) is amended by
striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection id="HDCF4F02EA5E7447B9CA7CAA8EE9C2B08"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid or incurred after December 31, 2009.</text>
</subsection></section><section id="H8BB105F7978B40C0856D1196BFEAEC4A"><enum>242.</enum><header>Indian
employment tax credit</header>
<subsection id="HF6B834DE84834F9EACC0FC21C9BAE58D"><enum>(a)</enum><header>In
general</header><text>Subsection (f) of section 45A is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection id="H01FB883B9DA549C393576E85BA06C777"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><section id="H849BBC07487B4CEBB0E76D65AB097632"><enum>243.</enum><header>New markets tax
credit</header>
<subsection id="HAAF0886F382C409C8648B9CEB9021A2C"><enum>(a)</enum><header>In
general</header><text>Subparagraph (F) of section 45D(f)(1) is amended by
inserting <quote>and 2010</quote> after <quote>2009</quote>.</text>
</subsection><subsection id="H1BE18CCECC1242799E15D86CC67E3004"><enum>(b)</enum><header>Conforming
amendment</header><text>Paragraph (3) of section 45D(f) is amended by striking
<quote>2014</quote> and inserting <quote>2015</quote>.</text>
</subsection><subsection id="H04C8889C1D764AC89C4723E2C40E3DB3"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to calendar
years beginning after 2009.</text>
</subsection></section><section id="HC550297849F243BAB93D1363E0C8535D"><enum>244.</enum><header>Railroad track
maintenance credit</header>
<subsection id="H4E592D398D9F406189967663269A219E"><enum>(a)</enum><header>In
general</header><text>Subsection (f) of section 45G is amended by striking
<quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection id="H1C4B2A2DCF6F41FA97E5CAC2A5F949F9"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
expenditures paid or incurred in taxable years beginning after December 31,
2009.</text>
</subsection></section><section id="HAC8131F41CD94738ACEADF770ADE4C6D"><enum>245.</enum><header>Mine rescue
team training credit</header>
<subsection id="H3EFB7D10141D4BE4A4A55AD40312E127"><enum>(a)</enum><header>In
general</header><text>Subsection (e) of section 45N is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection id="HEC2EDFCEE35A4583BF3E3D526E13E273"><enum>(b)</enum><header>Credit allowable
against AMT</header><text>Subparagraph (B) of section 38(c)(4), as amended by
section 105, is amended—</text>
<paragraph id="H5EB8F4B4870A40CCB34396AF74D37634"><enum>(1)</enum><text>by redesignating
clauses (vii) through (x) as clauses (viii) through (xi), respectively;
and</text>
</paragraph><paragraph id="HC4CD8D5405B74A73AFA28961FD3A7484"><enum>(2)</enum><text>by inserting after
clause (vi) the following new clause:</text>
<quoted-block act-name="" id="H9BC9739352A945879B52346093C3C8CC" style="OLC">
<clause id="H493862BA57F94112B8F6328A3AE36BCD"><enum>(vii)</enum><text>the credit
determined under section
45N,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H4800015767AE47D2A5FFA1AD695321E2"><enum>(c)</enum><header>Effective
date</header>
<paragraph id="H50DDC4DE133B4E34803D44BC76B6165F"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to taxable years beginning after December 31,
2009.</text>
</paragraph><paragraph id="HEB602C88B9B3497994A7A7A428DA604C"><enum>(2)</enum><header>Allowance
against AMT</header><text>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.</text>
</paragraph></subsection></section><section id="H8549E34ABAAE4139A282EDF51CDB8E42"><enum>246.</enum><header>Employer wage
credit for employees who are active duty members of the uniformed
services</header>
<subsection id="HB775A3043C374155861E62C82AA2C0C1"><enum>(a)</enum><header>In
general</header><text>Subsection (f) of section 45P is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HFA1DC56CFD78422AB22EF16B35D63778"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to payments
made after December 31, 2009.</text>
</subsection></section><section id="HF98F2CD859244F598B332E33CA3AB7FE"><enum>247.</enum><header>5-year
depreciation for farming business machinery and equipment</header>
<subsection id="H79401CB174224618916CF8F65D516C80"><enum>(a)</enum><header>In
general</header><text>Clause (vii) of section 168(e)(3)(B) is amended by
striking <quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection id="H3EB22417BCE6402D8C22296E9069DC13"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after December 31, 2009.</text>
</subsection></section><section id="H8E82B5FBA0554606A6DAFE968473C1B6"><enum>248.</enum><header>15-year
straight-line cost recovery for qualified leasehold improvements, qualified
restaurant buildings and improvements, and qualified retail
improvements</header>
<subsection id="HF9131494F8084B35B5C220BFB43FD9F4"><enum>(a)</enum><header>In
general</header><text>Clauses (iv), (v), and (ix) of section 168(e)(3)(E) are
each amended by striking <quote>January 1, 2010</quote> and inserting
<quote>January 1, 2011</quote>.</text>
</subsection><subsection id="HC3649438EA0E44CD9826B2EA93E1CC43"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="HE6C445B00D3543DEA16662B3877E435D"><enum>(1)</enum><text>Clause (i) of
section 168(e)(7)(A) is amended by striking <quote>if such building is placed
in service after December 31, 2008, and before January 1, 2010,</quote>.</text>
</paragraph><paragraph id="H363637EB49A047E9B4457AAD2F11ACA0"><enum>(2)</enum><text>Paragraph (8) of
section 168(e) is amended by striking subparagraph (E).</text>
</paragraph></subsection><subsection id="HFAB0139660254BFA8E8732B90A2D9030"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after December 31, 2009.</text>
</subsection></section><section id="H69DAAE0A686D4BC684299C4BC5B7729A"><enum>249.</enum><header>7-year recovery
period for motorsports entertainment complexes</header>
<subsection id="H62763B45DDAC42FD98CF7736E72FB1F7"><enum>(a)</enum><header>In
general</header><text>Subparagraph (D) of section 168(i)(15) is amended by
striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection id="H44CDC564B193492E9AE4BCF36CB18573"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after December 31, 2009.</text>
</subsection></section><section id="H3D73C0501AD946C4AA964BE5B357C937"><enum>250.</enum><header>Accelerated
depreciation for business property on an Indian reservation</header>
<subsection id="H5A8C17F7CB754F1E8364BFAFF19D57F8"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (8) of
section 168(j) is amended by striking <quote>December 31, 2009</quote> and
inserting <quote>December 31, 2010</quote>.</text>
</subsection><subsection id="H1FE5DBC50F0D41E19046FA8B33C225DE"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after December 31, 2009.</text>
</subsection></section><section id="H453FDBBF806C43B9BB878A84DCB360A5"><enum>251.</enum><header>Enhanced
charitable deduction for contributions of food inventory</header>
<subsection id="H7227F538954B4C69826AB399474CCE1E"><enum>(a)</enum><header>In
general</header><text>Clause (iv) of section 170(e)(3)(C) is amended by
striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection id="H4866861074D14074AD37C036BAA6D494"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
contributions made after December 31, 2009.</text>
</subsection></section><section id="HF82FE64FA26A406D95B0423BA6D35148"><enum>252.</enum><header>Enhanced
charitable deduction for contributions of book inventories to public
schools</header>
<subsection id="H86D3A8C97F004A27AC3E149227465ED4"><enum>(a)</enum><header>In
general</header><text>Clause (iv) of section 170(e)(3)(D) is amended by
striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6CD57F5316094D49892BAE8AAA92CE43"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
contributions made after December 31, 2009.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H7D862E505B6F45A7B10A2A60E9403DD1"><enum>253.</enum><header>Enhanced
charitable deduction for corporate contributions of computer inventory for
educational purposes</header>
<subsection id="H529687ADFB7F49BDAF2ACE6A7E6B7F8A"><enum>(a)</enum><header>In
general</header><text>Subparagraph (G) of section 170(e)(6) is amended by
striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6588C1E83DD04DE395D7C35B56C03233"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
contributions made in taxable years beginning after December 31, 2009.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HAAE1C394D51B45048AD67F9B39788A9D"><enum>254.</enum><header>Election to
expense mine safety equipment</header>
<subsection id="H2A8222C2D53E425583AA5C884A02F451"><enum>(a)</enum><header>In
general</header><text>Subsection (g) of section 179E is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H383F7CB36C10473692D955E199F33615"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after December 31, 2009.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HF7601E819BDA45D082C1535DC78513E3"><enum>255.</enum><header>Special
expensing rules for certain film and television productions</header>
<subsection id="H1FEC2FD715C24B13A69EDEA4C3E0143B"><enum>(a)</enum><header>In
general</header><text>Subsection (f) of section 181 is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB771FC88F30E4FC9BEE09EF6A120CEF8"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
productions commencing after December 31, 2009.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H51890389CE7149C3BF8EBAD2915E77DE"><enum>256.</enum><header>Expensing of
environmental remediation costs</header>
<subsection id="H94A27EBA3EC94F279E91ABBB7AFB8ED4"><enum>(a)</enum><header>In
general</header><text>Subsection (h) of section 198 is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF911D871E2BE4F12B509E6C8D000A334"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
expenditures paid or incurred after December 31, 2009.</text>
</subsection></section><section id="HABBA4C05F94947C28FF3BB162D586D59"><enum>257.</enum><header>Deduction
allowable with respect to income attributable to domestic production activities
in Puerto Rico</header>
<subsection id="H713376E47C854ADB9FDF0D71B6811A87"><enum>(a)</enum><header>In
general</header><text>Subparagraph (C) of section 199(d)(8) is amended—</text>
<paragraph id="H291C4770B0414D0DA3E0E3CDF6B5F84C"><enum>(1)</enum><text>by striking
<quote>first 4 taxable years</quote> and inserting <quote>first 5 taxable
years</quote>; and</text>
</paragraph><paragraph id="H67DD0E5928634FA6A3ABB817DE65D3F2"><enum>(2)</enum><text>by striking
<quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE9CCCD63E87A452D8D1CB55D8D15312A"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><section id="HDB3E244DE3AC4353872A7DEB56C461D2"><enum>258.</enum><header>Modification of
tax treatment of certain payments to controlling exempt organizations</header>
<subsection id="HE651A7073D6F428CA265887BA8361990"><enum>(a)</enum><header>In
general</header><text>Clause (iv) of section 512(b)(13)(E) is amended by
striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6510D0FCC55B4DFE99BD6D2BFE3BB54B"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to payments
received or accrued after December 31, 2009.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H3AC38A211F9F4B018D857CC094927BE1"><enum>259.</enum><header>Exclusion of
gain or loss on sale or exchange of certain brownfield sites from unrelated
business income</header>
<subsection id="H1F4652064D5D44D6A1396E0A3B61E51D"><enum>(a)</enum><header>In
general</header><text>Subparagraph (K) of section 512(b)(19) is amended by
striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7A2E684A97C942F8A2295325CB1A2765"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
acquired after December 31, 2009.</text>
</subsection></section><section id="H04FF3B841E694339BC6435D6123D98C3"><enum>260.</enum><header>Timber REIT
modernization</header>
<subsection id="H45D8413B3E6A4A2488FDE63ED79F6A62"><enum>(a)</enum><header>In
general</header><text>Paragraph (8) of section 856(c) is amended by striking
<quote>means</quote> and all that follows and inserting <quote>means December
31, 2010.</quote>.</text>
</subsection><subsection id="H5D68AA3BFF0F43F5BBC53D6335A25CD0"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="H8635FA681A5E4CB0AF9F1C7AB0ABF506"><enum>(1)</enum><text>Subparagraph (I)
of section 856(c)(2) is amended by striking <quote>the first taxable year
beginning after the date of the enactment of this subparagraph</quote> and
inserting <quote>a taxable year beginning on or before the termination
date</quote>.</text>
</paragraph><paragraph id="H16092BBAD75F4142BD09EDAD3FDD7363"><enum>(2)</enum><text>Clause (iii) of
section 856(c)(5)(H) is amended by inserting <quote>in taxable years
beginning</quote> after <quote>dispositions</quote>.</text>
</paragraph><paragraph id="H4E8930F86BA74EDA9BC63F82CD349773"><enum>(3)</enum><text>Clause (v) of
section 857(b)(6)(D) is amended by inserting <quote>in a taxable year
beginning</quote> after <quote>sale</quote>.</text>
</paragraph><paragraph id="H17F85D7A593542BEA1C38258EA4296BF"><enum>(4)</enum><text>Subparagraph (G)
of section 857(b)(6) is amended by inserting <quote>in a taxable year
beginning</quote> after <quote>In the case of a sale</quote>.</text>
</paragraph></subsection><subsection id="HCD9D82CB06214583979FDF734A3BF5C4"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years ending after May 22, 2009.</text>
</subsection></section><section id="HD1064D8DE2884020B69D58671651A3AE"><enum>261.</enum><header>Treatment of
certain dividends of regulated investment companies</header>
<subsection id="H684963D829FC440D9C1DF4B07892DFEA"><enum>(a)</enum><header>In
general</header><text>Paragraphs (1)(C) and (2)(C) of section 871(k) are each
amended by striking <quote>December 31, 2009</quote> and inserting
<quote>December 31, 2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4A6EB8702DA24FB6834A47E4D75D5B8D"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HB8CD4D149AA843D8BD7513092FA980AB"><enum>262.</enum><header>RIC qualified
investment entity treatment under FIRPTA</header>
<subsection id="HCE509BC160564EFF9EE2D07F80CF5F1F"><enum>(a)</enum><header>In
general</header><text>Clause (ii) of section 897(h)(4)(A) is amended by
striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE2E85664D8804BA8B8B07F22F0BC2C42"><enum>(b)</enum><header>Effective
date</header>
<paragraph commented="no" display-inline="no-display-inline" id="HFDF82A6438114F0886204B51E3451B48"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H62DE9FCD06AE425FB586783EB620535B"><enum>(2)</enum><header>Amounts withheld
on or before date of enactment</header><text>In the case of a regulated
investment company—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H27AEDDB7EF5140D7A0E3DD4CED794C70"><enum>(A)</enum><text>which makes a
distribution after December 31, 2009, and before the date of the enactment of
this Act; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H14261C69CB1049A097CA82788A5B67A4"><enum>(B)</enum><text>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,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">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.</continuation-text></paragraph></subsection></section><section id="HE7D1941C676C4211AEBDF73920852896"><enum>263.</enum><header>Exceptions for
active financing income</header>
<subsection id="HD24EE73290194D9A9E30FFB44BC1D872"><enum>(a)</enum><header>In
general</header><text>Sections 953(e)(10) and 954(h)(9) are each amended by
striking <quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection id="HC8CC5247F8184668A239D769C84C8E1D"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 953(e)(10) is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD5052920DB7F498A974813767058089C"><enum>(c)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HBBC686A7AAE24CB2AD1651219DD8EAA3"><enum>264.</enum><header>Look-thru
treatment of payments between related controlled foreign corporations under
foreign personal holding company rules</header>
<subsection commented="no" display-inline="no-display-inline" id="H9FF9246A687B41AF8F4238564698F5F1"><enum>(a)</enum><header>In
general</header><text>Subparagraph (C) of section 954(c)(6) is amended by
striking <quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB6D70568D5F94BF99E4D1D4F0D0E8861"><enum>(b)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><section id="H2A2966771BEC4A7FA9A4E18A602D6F26"><enum>265.</enum><header>Basis
adjustment to stock of S corps making charitable contributions of
property</header>
<subsection id="H9B3D2D86A2CF4AA4934739786880EE0A"><enum>(a)</enum><header>In
general</header><text>Paragraph (2) of section 1367(a) is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H59C54F515D2646D89DC8FBF2033E63A8"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
contributions made in taxable years beginning after December 31, 2009.</text>
</subsection></section><section id="HD775FE95F80E47DAA82243AA771E89B9"><enum>266.</enum><header>Empowerment
zone tax incentives</header>
<subsection id="HB06DF2C5D3844F8DB1C9D979DAB597C7"><enum>(a)</enum><header>In
general</header><text>Section 1391 is amended—</text>
<paragraph id="HFCD484CD541D402E9D4505BA9292F0C0"><enum>(1)</enum><text>by striking
<quote>December 31, 2009</quote> in subsection (d)(1)(A)(i) and inserting
<quote>December 31, 2010</quote>; and</text>
</paragraph><paragraph id="H3EB074131F704A7A9E9831951C83B9D0"><enum>(2)</enum><text>by striking the
last sentence of subsection (h)(2).</text>
</paragraph></subsection><subsection id="HD72202EFBE35476EA8045F686B2C7BE7"><enum>(b)</enum><header>Increased
exclusion of gain on stock of empowerment zone
businesses</header><text>Subparagraph (C) of section 1202(a)(2) is
amended—</text>
<paragraph id="HADEF9DD6E75E424EA9F9B1955CB3F863"><enum>(1)</enum><text>by striking
<quote>December 31, 2014</quote> and inserting <quote>December 31,
2015</quote>; and</text>
</paragraph><paragraph id="H7F71E22125E640C2A4A6C71687A4AEDC"><enum>(2)</enum><text>by striking
<quote><header-in-text level="subparagraph" style="OLC">2014</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="subparagraph" style="OLC">2015</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="HE9252D54E8D3454DB6BDA23A17F65366"><enum>(c)</enum><header>Treatment of
certain termination dates specified in nominations</header><text>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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6671943D5C394CD5B477885C23B2891E"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to periods
after December 31, 2009.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H22FFAAED9DCF492D957F852F3CE2ABAB"><enum>267.</enum><header>Tax incentives
for investment in the District of Columbia</header>
<subsection commented="no" display-inline="no-display-inline" id="H0D3D4AF67A6A4749969CE13E4DFA1B75"><enum>(a)</enum><header>In
general</header><text>Subsection (f) of section 1400 is amended by striking
<quote>December 31, 2009</quote> each place it appears and inserting
<quote>December 31, 2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9EDA43017036455B8EE23AF79FE29A28"><enum>(b)</enum><header>Tax-exempt DC
empowerment zone bonds</header><text>Subsection (b) of section 1400A is amended
by striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1C2D29D1B7F046EB8124A5ECCDDDD53A"><enum>(c)</enum><header>Zero-percent
capital gains rate</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC96AD4051E5D4F039C8A7EDBF37F1C26"><enum>(1)</enum><header>Acquisition
date</header><text>Paragraphs (2)(A)(i), (3)(A), (4)(A)(i), and (4)(B)(i)(I) of
section 1400B(b) are each amended by striking <quote>January 1, 2010</quote>
and inserting <quote>January 1, 2011</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEDC0A99B2C934A8EB99860E5442DACF5"><enum>(2)</enum><header>Limitation on
period of gains</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H2C336C84B2EA4685B9327494E4E7E2A7"><enum>(A)</enum><header>In
general</header><text>Paragraph (2) of section 1400B(e) is amended—</text>
<clause commented="no" display-inline="no-display-inline" id="HAA7E71D195BF40D68E3EF40188FB6A7E"><enum>(i)</enum><text>by striking
<quote>December 31, 2014</quote> and inserting <quote>December 31,
2015</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD05F5A6F478F4DC1BF5A3793B3C3A9DE"><enum>(ii)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">2014</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="paragraph" style="OLC">2015</header-in-text></quote>.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H074DED3FEC3A41F79A5E6EF9CEEDEF74"><enum>(B)</enum><header>Partnerships and
S-corps</header><text>Paragraph (2) of section 1400B(g) is amended by striking
<quote>December 31, 2014</quote> and inserting <quote>December 31,
2015</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H24203E3D54F4431B8C8EEB19034E1540"><enum>(d)</enum><header>First-time
homebuyer credit</header><text>Subsection (i) of section 1400C is amended by
striking <quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H89BEDFBCEACD4F909ACECA736E431D5C"><enum>(e)</enum><header>Effective
dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="H050C02B4451B47C788EFAC27BDE9B135"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this subsection, the
amendments made by this section shall apply to periods after December 31,
2009.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H537FD3073FA7476295DCC720A0BF2231"><enum>(2)</enum><header>Tax-exempt DC
empowerment zone bonds</header><text>The amendment made by subsection (b) shall
apply to bonds issued after December 31, 2009.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD56964DC8CC248EBA3464EB75B8F33EF"><enum>(3)</enum><header>Acquisition
dates for zero-percent capital gains rate</header><text>The amendments made by
subsection (c) shall apply to property acquired or substantially improved after
December 31, 2009.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1CE2F8E17A984982AB7BEAE9297734ED"><enum>(4)</enum><header>Homebuyer
credit</header><text>The amendment made by subsection (d) shall apply to homes
purchased after December 31, 2009.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H23EBA0BFF6FF431C9D153B153A6CC5B7"><enum>268.</enum><header>Renewal
community tax incentives</header>
<subsection commented="no" display-inline="no-display-inline" id="H438B94CA2A7242DCBB3801DD973B4505"><enum>(a)</enum><header>In
general</header><text>Subsection (b) of section 1400E is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H7CB28A9C43EE48288389146606237033"><enum>(1)</enum><text>by striking
<quote>December 31, 2009</quote> in paragraphs (1)(A) and (3) and inserting
<quote>December 31, 2010</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H56960F9E937D4303ADC5CE6E67EF5D65"><enum>(2)</enum><text>by striking
<quote>January 1, 2010</quote> in paragraph (3) and inserting <quote>January 1,
2011</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4BC0BD7AC21B41BD86616BFBACE7D3FE"><enum>(b)</enum><header>Zero-percent
capital gains rate</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8A654483F4ED412BB6617A2F85B4ED6F"><enum>(1)</enum><header>Acquisition
date</header><text>Paragraphs (2)(A)(i), (3)(A), (4)(A)(i), and (4)(B)(i) of
section 1400F(b) are each amended by striking <quote>January 1, 2010</quote>
and inserting <quote>January 1, 2011</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H885E3DAB52254D98A1A68F2BEE1F9E02"><enum>(2)</enum><header>Limitation on
period of gains</header><text>Paragraph (2) of section 1400F(c) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H38789E663F4D49F989FC133E6F6368B6"><enum>(A)</enum><text>by striking
<quote>December 31, 2014</quote> and inserting <quote>December 31,
2015</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC113BEE6463C4D80BD9DEFB9ABDB15B3"><enum>(B)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">2014</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="paragraph" style="OLC">2015</header-in-text></quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5671891E04E5446E9B8B077B8E5EF3CB"><enum>(3)</enum><header>Clerical
amendment</header><text>Subsection (d) of section 1400F is amended by striking
<quote>and <quote>December 31, 2014</quote> for <quote>December 31,
2014</quote></quote>.</text>
</paragraph></subsection><subsection id="HA5D0B184CB334060A9DE88FB9E7D4604"><enum>(c)</enum><header>Commercial
revitalization deduction</header>
<paragraph id="HDD452A7703BB417EA6B8CFA7365536AB"><enum>(1)</enum><header>In
general</header><text>Subsection (g) of section 1400I is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</paragraph><paragraph id="H2A8CC2A1DFEC46B88469B63B44A6F4BB"><enum>(2)</enum><header>Conforming
amendment</header><text>Subparagraph (A) of section 1400I(d)(2) is amended by
striking <quote>after 2001 and before 2010</quote> and inserting <quote>which
begins after 2001 and before the date referred to in subsection
(g)</quote>.</text>
</paragraph></subsection><subsection id="H1672F818520643858BDA7173E20D46D7"><enum>(d)</enum><header>Increased
expensing under section 179</header><text>Subparagraph (A) of section
1400J(b)(1) is amended by striking <quote>January 1, 2010</quote> and inserting
<quote>January 1, 2011</quote>.</text>
</subsection><subsection id="H553D776C34E14F2DB985DBFC52E0425D"><enum>(e)</enum><header>Treatment of
certain termination dates specified in nominations</header><text>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.</text>
</subsection><subsection id="H7D56AC8D791644BE9DDFC9BBBF08F3DC"><enum>(f)</enum><header>Effective
dates</header>
<paragraph id="H310C02ED15724C699CF992545745ACBD"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this subsection, the
amendments made by this section shall apply to periods after December 31,
2009.</text>
</paragraph><paragraph id="HDCA67709D54340388019A8368CD440F3"><enum>(2)</enum><header>Acquisitions</header><text>The
amendments made by subsections (b)(1) and (d) shall apply to acquisitions after
December 31, 2009.</text>
</paragraph><paragraph id="H629CC333476D4C4C823489F131C71003"><enum>(3)</enum><header>Commercial
revitalization deduction</header>
<subparagraph id="HCAC1FF51549A494F88AC624C84DBCFF4"><enum>(A)</enum><header>In
general</header><text>The amendment made by subsection (c)(1) shall apply to
buildings placed in service after December 31, 2009.</text>
</subparagraph><subparagraph id="H19A397EA25494380AFF6E8C3B520D747"><enum>(B)</enum><header>Conforming
amendment</header><text>The amendment made by subsection (c)(2) shall apply to
calendar years beginning after December 31, 2009.</text>
</subparagraph></paragraph></subsection></section><section id="H89164019406A4C209769ACB949519E86"><enum>269.</enum><header>Temporary
increase in limit on cover over of rum excise taxes to Puerto Rico and the
Virgin Islands</header>
<subsection id="HC5E00B2889CD4401B6EC15EA5C6BB531"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 7652(f) is amended by striking
<quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4045F64FD5AD4628A17C69BF7D89DEA4"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to distilled
spirits brought into the United States after December 31, 2009.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H9D9F18DD03084A61A554F3FEA510386C"><enum>270.</enum><header>Payment to
American Samoa in lieu of extension of economic development
credit</header><text display-inline="no-display-inline">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.</text>
</section><section display-inline="no-display-inline" id="H9A214EA5A954449D9D190A873E071DFD" section-type="subsequent-section"><enum>271.</enum><header>Election to
temporarily utilize unused AMT credits determined by domestic
investment</header>
<subsection id="HAB604B1B6B03460AB8A175195EDD2E4B"><enum>(a)</enum><header>In
general</header><text>Section 53 is amended by adding at the end the following
new subsection:</text>
<quoted-block id="H539252632DFE40AFA8009312E4723043" style="OLC">
<subsection id="H87E2FBB7362648BA92A637C72D3D94E6"><enum>(g)</enum><header>Election for
corporations with new domestic investments</header>
<paragraph id="HD0D40D9096F14E248585A3739757EF05"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H1FE8D0A3F0D1432A892143391CC40F30"><enum>(2)</enum><header>AMT credit
adjustment amount</header><text>For purposes of paragraph (1), the term
<quote>AMT credit adjustment amount</quote> means, the lesser of—</text>
<subparagraph id="H984D17242364481BAFD9E9F866C2087D"><enum>(A)</enum><text>50 percent of a
corporation’s minimum tax credit for its first taxable year beginning after
December 31, 2009, determined under subsection (b), or</text>
</subparagraph><subparagraph id="HD6E00C05BA694DEE815C2A5940AABB45"><enum>(B)</enum><text>10 percent of new
domestic investments made during such taxable year.</text>
</subparagraph></paragraph><paragraph id="H3A649B13C0EE49229FE24E7BE3604B0E"><enum>(3)</enum><header>New domestic
investments</header><text>For purposes of this subsection, the term <quote>new
domestic investments</quote> means the cost of qualified property (as defined
in section 168(k)(2)(A)(i))—</text>
<subparagraph id="H754865BDF39C40F4BC0B7A31F3E1FE1A"><enum>(A)</enum><text>the original use
of which commences with the taxpayer during the taxable year, and</text>
</subparagraph><subparagraph id="HFF01314AE9B64340B3315BD2EF806CF1"><enum>(B)</enum><text>which is placed in
service in the United States by the taxpayer during such taxable year.</text>
</subparagraph></paragraph><paragraph id="H87C062B49C8040E1963EEBE64C7FEFA7"><enum>(4)</enum><header>Credit
refundable</header><text>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.</text>
</paragraph><paragraph id="HB834C43E62A140D68433DB8DA6FF821F"><enum>(5)</enum><header>Election</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H7EACD386D1F5428FB5651C8A3AACDEDB"><enum>(6)</enum><header>Treatment of
certain partnership investments</header><text>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.</text>
</paragraph><paragraph id="H8DEC73D75DF44B6E9D5369C4E1871302"><enum>(7)</enum><header>No double
benefit</header>
<subparagraph id="H229D68519C8B47729D3178ED42A8C13B"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">A corporation making
an election under this subsection may not make an election under subparagraph
(H) of section 172(b)(1).</text>
</subparagraph><subparagraph id="H155B70B5334841B8B851D6DC6D4897F3"><enum>(B)</enum><header>Special rules
with respect to taxpayers previously electing applicable net operating
losses</header><text>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—</text>
<clause id="H2CD6AD000E1E4BF593D18F368E428C4E"><enum>(i)</enum><header>Election of
applicable net operating loss treated as revoked</header><text>The election
under such subparagraph (H) shall (notwithstanding clause (iii)(II) of such
subparagraph) be treated as having been revoked by the taxpayer.</text>
</clause><clause id="H7AA2273AE65F46C29AEE761B9811B805"><enum>(ii)</enum><header>Coordination
with provision for expedited refund</header><text>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).</text>
</clause><clause display-inline="no-display-inline" id="HF3A5495D3D3343B2976CC870CB622E73"><enum>(iii)</enum><header>Application of
statute of limitations</header><text>With respect to the revocation of an
election under clause (i)—</text>
<subclause id="HDC869258A67346C3BA5F8354C18CD058"><enum>(I)</enum><text>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</text>
</subclause><subclause id="H2F5C0904CF3A4AA5B7E8EDE5A60F1DBC"><enum>(II)</enum><text>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.</text>
</subclause></clause></subparagraph><subparagraph id="H2F3EEB5793E8440C91BA001F5D325DFB"><enum>(C)</enum><header>Exception for
eligible small businesses</header><text>Subparagraphs (A) and (B) shall not
apply to an eligible small business as defined in section
172(b)(1)(H)(v)(II).</text>
</subparagraph></paragraph><paragraph id="HB90317BF1BC94355B8C00BD20C0BEA08"><enum>(8)</enum><header>Regulations</header><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H19ED3DADF077403D886D23724BC26482"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="HF025F4B298D446FBAECF2555CFDA1E1F"><enum>(1)</enum><text>Section
6211(b)(4)(A) is amended by inserting <quote>53(g),</quote> after
<quote>53(e),</quote>.</text>
</paragraph><paragraph id="HCE51087A575A488883F82802EE784250"><enum>(2)</enum><text display-inline="yes-display-inline">Section 1324(b)(2) of title 31, United
States Code, is amended by inserting <quote>53(g),</quote> after
<quote>53(e),</quote>.</text>
</paragraph></subsection><subsection id="HD6253525205141568D2F6A237122E5BC"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><section id="IDbe40e5d3edfd442ebecbf2ce83983c86"><enum>272.</enum><header>Reduction in
corporate rate for qualified timber gain</header>
<subsection id="IDfc139dab04564d57b23490b7b3d59f74"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 1201(b) is amended by striking
<quote>‘ending</quote>’ and all that follows through <quote>‘such
date</quote>’.</text>
</subsection><subsection id="IDd81dfb6150a24cb0afb9523b50d57290"><enum>(b)</enum><header>Conforming
amendment</header><text>Paragraph (3) of section 1201(b) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idE5E7260A4A88434A89D77FE168BDE389" style="OLC">
<paragraph id="IDfa8c87e9fb064648b5e546e089a42cfc"><enum>(3)</enum><header>Application of
subsection</header><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDb0dca96c969340e8adb7257e84974feb"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years ending after May 22, 2009.</text>
</subsection></section><section display-inline="no-display-inline" id="H97025BFAF54241B18139FEF0A45122BE" section-type="subsequent-section"><enum>273.</enum><header>Study of extended
tax expenditures</header>
<subsection id="H35AC20F1EF444A12B71335B6486A0B1F"><enum>(a)</enum><header>Findings</header><text display-inline="yes-display-inline">Congress finds the following:</text>
<paragraph id="HF869D4CF72D347C780A451452AF0D827"><enum>(1)</enum><text display-inline="yes-display-inline">Currently, the aggregate cost of Federal
tax expenditures rivals, or even exceeds, the amount of total Federal
discretionary spending.</text>
</paragraph><paragraph id="HA600CCF61AC44E61B2BAB6EFD56F6147"><enum>(2)</enum><text display-inline="yes-display-inline">Given the escalating public debt, a
critical examination of this use of taxpayer dollars is essential.</text>
</paragraph><paragraph id="HCE095915C84041DB88C53C5E05677998"><enum>(3)</enum><text display-inline="yes-display-inline">Additionally, tax expenditures can
complicate the Internal Revenue Code of 1986 for taxpayers and complicate tax
administration for the Internal Revenue Service.</text>
</paragraph><paragraph id="HD9588ABCE7C644C898F76445B61C685A"><enum>(4)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection id="H6056B47BD32E463BB5C6FCC076A6E1DD"><enum>(b)</enum><header>Requirement to
report</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HC82AA588443840C4A427ECCB03E30132"><enum>(c)</enum><header>Rolling
submission of reports</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H3FAFF2F6AB594248BC95A0784E476DC7"><enum>(d)</enum><header>Contents of
report</header><text>Such reports shall contain the following:</text>
<paragraph id="H99C9A83BE0774A00BBB26D9D0D29B810"><enum>(1)</enum><text>An explanation of
the tax expenditure and any relevant economic, social, or other context under
which it was first enacted.</text>
</paragraph><paragraph id="H6EB48738AE92431AADF198F10161E655"><enum>(2)</enum><text>A
description of the intended purpose of the tax expenditure.</text>
</paragraph><paragraph id="H1D82BAFFED834E4B903F560FC2A693B1"><enum>(3)</enum><text display-inline="yes-display-inline">An analysis of the overall success of the
tax expenditure in achieving such purpose, and evidence supporting such
analysis.</text>
</paragraph><paragraph id="H38BC5C410C604FA09435951C7F8669D0"><enum>(4)</enum><text>An analysis of the
extent to which further extending the tax expenditure, or making it permanent,
would contribute to achieving such purpose.</text>
</paragraph><paragraph commented="no" id="H29811E9A338943D297A90C3608141CB5"><enum>(5)</enum><text display-inline="yes-display-inline">A description of the direct and indirect
beneficiaries of the tax expenditure, including identifying any unintended
beneficiaries.</text>
</paragraph><paragraph id="HD02D33F3C8E9465E8F0000BB07C04771"><enum>(6)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H9045E1DA1C554F7C839DFC8F88089E4A"><enum>(7)</enum><text display-inline="yes-display-inline">A description of any unintended effects of
the tax expenditure that are useful in understanding the tax expenditure’s
overall value.</text>
</paragraph><paragraph id="H97D0DB96A1E14DF795EF54D1FB471652"><enum>(8)</enum><text display-inline="yes-display-inline">An analysis of how the tax expenditure
could be modified to better achieve its original purpose.</text>
</paragraph><paragraph id="H8A5E655DAA24431FB4C1E6DC57DE81A6"><enum>(9)</enum><text>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.</text>
</paragraph><paragraph id="H15EFD12853A24AA093D634C2D19CC51B"><enum>(10)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection id="H8F887E6800FC494B91657B44A92CFF5F"><enum>(e)</enum><header>Minimum analysis
by deadline</header><text display-inline="yes-display-inline">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.</text>
</subsection></section></subtitle><subtitle id="H6FFE6266984649098D5D89DD2C9F1D43"><enum>D</enum><header>Temporary disaster
relief provisions</header>
<part id="H97AD7457822F4C7EB11481881764A312"><enum>I</enum><header>National disaster
relief</header>
<section id="H716A905F4F8D416297915D0A62B16750"><enum>281.</enum><header>Waiver of
certain mortgage revenue bond requirements</header>
<subsection id="H7C811646BA0242A69C404F283CDFB289"><enum>(a)</enum><header>In
general</header><text>Paragraph (11) of section 143(k) is amended by striking
<quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection id="H48990782FC114129A9841923493C7E41"><enum>(b)</enum><header>Special rule for
residences destroyed in federally declared disasters</header><text>Paragraph
(13) of section 143(k), as redesignated by subsection (c), is amended by
striking <quote>January 1, 2010</quote> in subparagraphs (A)(i) and (B)(i) and
inserting <quote>January 1, 2011</quote>.</text>
</subsection><subsection id="HCAC7D348EF5D485F97C4252D75288B58"><enum>(c)</enum><header>Technical
amendment</header><text>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).</text>
</subsection><subsection id="HAE1FE35EB65C49E9ADB366E529CC773E"><enum>(d)</enum><header>Effective
dates</header>
<paragraph id="HB8CF092B14FB47949CAE8F5AA4FF1346"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this subsection, the
amendment made by this section shall apply to bonds issued after December 31,
2009.</text>
</paragraph><paragraph id="H2FE5CCCB787D487CBDBC380EB21ABE41"><enum>(2)</enum><header>Residences
destroyed in federally declared disasters</header><text>The amendments made by
subsection (b) shall apply with respect to disasters occurring after December
31, 2009.</text>
</paragraph><paragraph id="H48423038D0994D8BACF5DF81039598D0"><enum>(3)</enum><header>Technical
amendment</header><text>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.</text>
</paragraph></subsection></section><section id="H5D5B2B65B28549408CD449B22CFB1731"><enum>282.</enum><header>Losses
attributable to federally declared disasters</header>
<subsection id="H7FDCA338825743C7B0BAB41B190D8BAB"><enum>(a)</enum><header>In
general</header><text>Subclause (I) of section 165(h)(3)(B)(i) is amended by
striking <quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection id="HBD09D0CBF0CD4C7196DAF3B37E53DC05"><enum>(b)</enum><header>$500
limitation</header><text>Paragraph (1) of section 165(h) is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection id="HEC029316E01049C38D835563C4B2D33F"><enum>(c)</enum><header>Effective
date</header>
<paragraph id="HDF6A91B4795C46C1B6030EA9EC428327"><enum>(1)</enum><header>In
general</header><text>The amendment made by subsection (a) shall apply to
federally declared disasters occurring after December 31, 2009.</text>
</paragraph><paragraph id="H3F971F2E6CE349D5B9A4C82C9BFA90BF"><enum>(2)</enum><header>$500
limitation</header><text>The amendment made by subsection (b) shall apply to
taxable years beginning after December 31, 2009.</text>
</paragraph></subsection></section><section id="HC83C4DA245BA49929A7A04BBF66289C4"><enum>283.</enum><header>Special
depreciation allowance for qualified disaster property</header>
<subsection id="H22B5C8DF7C6D4D5A80C15598AE42C144"><enum>(a)</enum><header>In
general</header><text>Subclause (I) of section 168(n)(2)(A)(ii) is amended by
striking <quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection id="H64F5677ED83E4B5CA3DF44AFF0E8FF36"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to disasters
occurring after December 31, 2009.</text>
</subsection></section><section id="HD56920D5651344ABB4F092AA9A6B01D6"><enum>284.</enum><header>Net operating
losses attributable to federally declared disasters</header>
<subsection id="H8B294EF353774A919F64BDA54D39CBF5"><enum>(a)</enum><header>In
general</header><text>Subclause (I) of section 172(j)(1)(A)(i) is amended by
striking <quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection id="H4F407D0950824E428E2DD8EB3C0044CA"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to losses
attributable to disasters occurring after December 31, 2009.</text>
</subsection></section><section id="HCD41A47A139E45C0A0752C0ADC6FF775"><enum>285.</enum><header>Expensing of
qualified disaster expenses</header>
<subsection id="H520FF0D7AC4343D496E729C8FFFFC5BD"><enum>(a)</enum><header>In
general</header><text>Subparagraph (A) of section 198A(b)(2) is amended by
striking <quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection id="H31AE69E18E454E97876282AC90D9C43F"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
expenditures on account of disasters occurring after December 31, 2009.</text>
</subsection></section></part><part id="H6EBD0580C2EC413F83397A0EB55F7193"><enum>II</enum><header>Regional
provisions</header>
<subpart id="H103032FB7FC047F2B807D87A65969C0C"><enum>A</enum><header>New
York Liberty Zone</header>
<section id="HE395DA5401FE499D95D85D395298022C"><enum>291.</enum><header>Special
depreciation allowance for nonresidential and residential real
property</header>
<subsection id="H78565B64FEE44C16926902A3E4694A5C"><enum>(a)</enum><header>In
general</header><text>Subparagraph (A) of section 1400L(b)(2) is amended by
striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection id="H5F7E476B8E8C41568B84A26E0D51C89C"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after December 31, 2009.</text>
</subsection></section><section id="H4664B74652BA4C9ABC7793AA84093125"><enum>292.</enum><header>Tax-exempt bond
financing</header>
<subsection id="HC22FAFDBAFD040D68D325470B103D3C4"><enum>(a)</enum><header>In
general</header><text>Subparagraph (D) of section 1400L(d)(2) is amended by
striking <quote>January 1, 2010</quote> and inserting <quote>January 1,
2011</quote>.</text>
</subsection><subsection id="H4582DBA4B42B409895B084BDFAE196EC"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to bonds
issued after December 31, 2009.</text>
</subsection></section></subpart><subpart id="HEDE6403B851F4F24B2886A3E7F48DB9D"><enum>B</enum><header>GO
Zone</header>
<section commented="no" id="HB49C2B24DC1943728320F919AC74F854"><enum>295.</enum><header>Increase in
rehabilitation credit</header>
<subsection commented="no" id="HD6C067DFD2C04817AD0D9B312341C9A0"><enum>(a)</enum><header>In
general</header><text>Subsection (h) of section 1400N is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" id="H76A8374291E2498DA3678732F367DB19"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to amounts
paid or incurred after December 31, 2009.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HC2738BF1A72847C6B6B38C2B7A12AF11"><enum>296.</enum><header>Work
opportunity tax credit with respect to certain individuals affected by
Hurricane Katrina for employers inside disaster areas</header>
<subsection commented="no" display-inline="no-display-inline" id="H218F62FD57F14774BE0537E4FC04672C"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 201(b) of the Katrina Emergency
Tax Relief Act of 2005 is amended by striking <quote>4-year</quote> and
inserting <quote>5-year</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE6A096605C084C65B13DC09B2E7FC344"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to
individuals hired after August 27, 2009.</text>
</subsection></section><section display-inline="no-display-inline" id="H4523AA0E144C489C824A4A3C1B933255" section-type="subsequent-section"><enum>297.</enum><header>Extension of
low-income housing credit rules for buildings in GO zones</header><text display-inline="no-display-inline">Section 1400N(c)(5) is amended by striking
<quote>January 1, 2011</quote> and inserting <quote>January 1,
2013</quote>.</text>
</section></subpart></part></subtitle><enum>III</enum><header>Technical
corrections to pension funding legislation</header>
<section id="id915B53C14CF942C6AECAAF972D7358FA"><enum>301.</enum><header>Definition of
eligible plan year</header>
<subsection id="idC55DAD485EC14E31BEB758066F4DD284"><enum>(a)</enum><header>Amendment to
ERISA</header><text>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 <quote>on
or after the date of the enactment of this subparagraph</quote> and inserting
<quote>on or after March 10, 2010</quote>.</text>
</subsection><subsection id="id93CA04965F76451E8135656B18FB5DD3"><enum>(b)</enum><header>Amendment to
Internal revenue Code of 1986</header><text>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 <quote>on or after the date of the
enactment of this subparagraph</quote> and inserting <quote>on or after March
10, 2010</quote>.</text>
</subsection><subsection id="idF27935145150425F83D9EC6105C79425"><enum>(c)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><section id="id9E1D46D1FE2442219F7F8F988E69365F"><enum>302.</enum><header>Eligible
charity plans</header>
<subsection id="idE909D8674A8C4272AC132156CE905AD6"><enum>(a)</enum><header>Definition of
eligible charity plans</header>
<paragraph id="id16A1E6F1F38446959F90BF8A147C691A"><enum>(1)</enum><header>In
general</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="HB21A9183A1BF46A0BC804F9F2F5E11BB" style="OLC">
<subsection commented="no" id="H1CFEBBB0E3094D4C8877475EA99FE2FA"><enum>(d)</enum><header>Eligible charity
plan defined</header><text display-inline="yes-display-inline">For purposes of
this section, a plan shall be treated as an eligible charity plan for a plan
year if—</text>
<paragraph commented="no" id="H31EDA4692E714A22AA923989E46C93F4"><enum>(1)</enum><text>the plan is
maintained by one or more employers employing employees who are accruing
benefits based on service for the plan year,</text>
</paragraph><paragraph commented="no" id="HBA8CDCBD65CC417D913F9E63042D98C3"><enum>(2)</enum><text>such employees are
employed in at least 20 States,</text>
</paragraph><paragraph commented="no" id="H938BC267FD10447AA6837B8C419FC3FC"><enum>(3)</enum><text>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</text>
</paragraph><paragraph commented="no" id="HE3199613EE1744E4BCD886559FBE62CF"><enum>(4)</enum><text>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.</text>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">Any election under this subsection
may be revoked only with the consent of the Secretary of the
Treasury.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id028392ACA03A4B1A82A95987A6322CE1"><enum>(2)</enum><header>Effective
date</header><text>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.</text>
</paragraph></subsection><subsection id="idE0559B66AB7D411B9BAC1FFB64B43792"><enum>(b)</enum><header>Regulations</header><text>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).</text>
</subsection><subsection id="idF693B2CA66F24A0B8A34CBBDD04881DE"><enum>(c)</enum><header>Application of
new rules to eligible charity plans</header>
<paragraph id="idA11ED715D61542F58E4B71114B335832"><enum>(1)</enum><header>In
general</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="idB035C2E6294D4195A2959C11286A4B80" style="OLC">
<paragraph commented="no" id="HF590DC5B16884E6FA1730B87FB614B8F"><enum>(2)</enum><header>Eligible charity
plans</header><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id35E345A9EE284AEE80E9E98F9AA58CE7"><enum>(2)</enum><header>Effective
date</header><text>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.</text>
</paragraph></subsection></section><section id="H04E0123A99784737AFC9449552E9EE2F"><enum>303.</enum><header>Suspension of
certain funding level limitations</header>
<subsection id="HBE788205986D409A8C8F56A03C8C058B"><enum>(a)</enum><header>Limitations on
benefit accruals</header><text display-inline="yes-display-inline">Section 203
of the Worker, Retiree, and Employer Recovery Act of 2008 (Public Law 110–458;
122 Stat. 5118) is amended—</text>
<paragraph id="H454513D8662F436DB1D77E9440F19EB1"><enum>(1)</enum><text>by striking
<quote>the first plan year beginning during the period beginning on October 1,
2008, and ending on September 30, 2009</quote> and inserting <quote>any plan
year beginning during the period beginning on October 1, 2008, and ending on
December 31, 2011</quote>;</text>
</paragraph><paragraph id="H8E104D8A0A464189B98096429BAA19FD"><enum>(2)</enum><text>by striking
<quote>substituting</quote> and all that follows through <quote>for such plan
year</quote> and inserting <quote>substituting for such percentage the plan’s
adjusted funding target attainment percentage for the last plan year ending
before September 30, 2009,</quote>; and</text>
</paragraph><paragraph id="H37A5CDF03CB4458FB6213FAD4140808C"><enum>(3)</enum><text>by striking
<quote>for the preceding plan year is greater</quote> and inserting <quote>for
such last plan year is greater</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8D632EE9F81B4E03BEE1709CD2CEBDA7"><enum>(b)</enum><header>Social security
level-income options</header>
<paragraph commented="no" id="H67D3A9806C3F44448A613B766925188D"><enum>(1)</enum><header>ERISA
amendment</header><text display-inline="yes-display-inline">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: <quote>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)).</quote>.</text>
</paragraph><paragraph commented="no" id="H290B3CE537CB466AA3566E800A842B56"><enum>(2)</enum><header>IRC
amendment</header><text display-inline="yes-display-inline">Section 436(d)(5)
of the Internal Revenue Code of 1986 is amended by adding at the end the
following new sentence: <quote>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)).</quote>.</text>
</paragraph><paragraph commented="no" id="HF2132194855A4310B867ED4B7F7D9E5C"><enum>(3)</enum><header>Effective
date</header>
<subparagraph commented="no" id="H59FEBBF4165048388595C316CA9925EE"><enum>(A)</enum><header>In
general</header><text>The amendments made by this subsection shall apply to
annuity payments the annuity starting date for which occurs on or after January
1, 2011.</text>
</subparagraph><subparagraph commented="no" id="HA77B1714C24841109C760E19864BE595"><enum>(B)</enum><header>Permitted
application</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="idD86D7568821B45439B6184C628115903"><enum>(c)</enum><header>Repeal of
related provisions</header><text>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.</text>
</subsection></section><section id="HD1988A06471D4FFEBEC19BADD9D2AF35"><enum>304.</enum><header>Optional use of
30-year amortization periods</header>
<subsection id="idF36397D28234470CA7C5B6293E6928DD"><enum>(a)</enum><header>Repeal</header><text>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.</text>
</subsection><subsection id="HFF45F82311C347379A6A6F62CA22AE41"><enum>(b)</enum><header>Elective special
relief rules</header>
<paragraph id="H0E50472E7F354D42978ED20A6CDF0A25"><enum>(1)</enum><header>Amendment to
ERISA</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H7E11DE74FA104878858B541530A246FD" style="OLC">
<paragraph id="HF7970341C157429E84961E0FEF7A4EE7"><enum>(8)</enum><header>Elective special
relief rules</header><text display-inline="yes-display-inline">Notwithstanding
any other provision of this subsection—</text>
<subparagraph id="H44AE9C248F104AE7AEDA6E1F5ECBEEBE"><enum>(A)</enum><header>Amortization of
net investment losses</header>
<clause id="HDE95F414DBE241C684CBDF668D96036F"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<subclause id="H2AC1C9C0FB3D4FEC8CB5A2FAADCB9BC9"><enum>(I)</enum><text>beginning with the
plan year for which the allocable portion is determined, and</text>
</subclause><subclause id="H75BF095131A744B29C685BE9DDDAF8BE"><enum>(II)</enum><text>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.</text>
</subclause></clause><clause id="HD3CE3C61B1294674A25BEA186388AF0C"><enum>(ii)</enum><header>Coordination
with extensions</header><text>If an election is made under clause (i) for any
plan year—</text>
<subclause id="H1C6080C5EE1E43A99493597672C9DC86"><enum>(I)</enum><text>no extension of
the amortization period under clause (i) shall be allowed under subsection (d),
and</text>
</subclause><subclause id="H2DC632E502764DFF9480124316F44F31"><enum>(II)</enum><text>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.</text>
</subclause></clause><clause id="H6B81C81D2171405388FA04B7F7DC15DA"><enum>(iii)</enum><header>Definitions
and rules</header><text>For purposes of this subparagraph—</text>
<subclause commented="no" id="H5AF23B7A70564AC3ACB76C2B37696A7D"><enum>(I)</enum><header>Net investment
losses</header><text>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.</text>
</subclause><subclause commented="no" id="H632015BB9BF34A6395640E5F91DBDE51"><enum>(II)</enum><header>Expected
value</header><text>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.</text>
</subclause><subclause id="HEB847CC21C2547E195C7B46A8C66BCA3"><enum>(III)</enum><header>Criminally
fraudulent investment arrangements</header><text>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.</text>
</subclause><subclause id="H139763EF5D1746FB9CA8E1CE4899A5B6"><enum>(IV)</enum><header>Amount
attributable to allocable portion of net investment loss</header><text>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.</text>
</subclause><subclause id="H93BD233565A4478CA333CF2A8F654050"><enum>(V)</enum><header>Allocable
portion of net investment losses</header><text>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:</text>
<table align-to-level="section" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.4" table-template-name="Tax (No Calculation)" table-type="subformat">
<tgroup cols="2" rowsep="0"><colspec align="left" coldef="fig" colname="column1" colwidth="117pts" min-data-value="21"></colspec><colspec coldef="txt" colname="column2" colwidth="208pts" min-data-value="200"></colspec>
<thead>
<row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0">Plan year after the plan year in which the net
investment loss was incurred</entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0">Allocable portion of net investment
loss</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">1st</entry><entry align="right" colname="column2" rowsep="0"><fraction>½</fraction></entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2nd</entry><entry align="right" colname="column2" rowsep="0">0</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">3rd</entry><entry align="right" colname="column2" rowsep="0"><fraction>1/6</fraction></entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">4th</entry><entry align="right" colname="column2" rowsep="0"><fraction>1/6</fraction></entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">5th</entry><entry align="right" colname="column2" rowsep="0"><fraction>1/6</fraction></entry>
</row>
</tbody>
</tgroup>
</table>
</subclause><subclause id="HDFB473EBA84C431DAD426A7D380CECF6"><enum>(VI)</enum><header>Special Rule
for plans that adopt longer smoother period</header><text>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 ½ 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.</text>
</subclause><subclause commented="no" id="H32A2E2A64D9A497E9036B9D73C8B20AD"><enum>(VII)</enum><header>Special rule
for overstatement of loss</header><text>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.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HF1A74D478FCC49898ED034668B931C1F"><enum>(VIII)</enum><header>Special rule
in years for which overall experience is gain</header><text display-inline="yes-display-inline">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.</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="HC50B07A7251042B480471742570C4BAC"><enum>(B)</enum><header>Solvency
test</header>
<clause id="HF76F0DDB27654957BCDAA71C2D1C7AE9"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="H626E74D107A948BFBF06E2D289F31F67"><enum>(ii)</enum><header>Funded
percentage</header><text>For purposes of clause (i), the term <quote>funded
percentage</quote> 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.</text>
</clause><clause commented="no" id="H7B2315C4B20D4E8DB327AEBB421FCBE8"><enum>(iii)</enum><header>Actuarial
assumptions</header><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="H15492D2B7B9C4227940F57BE495A4A01"><enum>(C)</enum><header>Additional
restriction on benefit increases</header><text>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—</text>
<clause id="HCA43A7BAA44B49048D90B42CA1613026"><enum>(i)</enum><text>the plan actuary
certifies that—</text>
<subclause id="H037E1F926ACA4808A58F6E2395F13E7B"><enum>(I)</enum><text>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</text>
</subclause><subclause id="H03ADE3F590AF438A92B00CAFBD6A4E57"><enum>(II)</enum><text>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</text>
</subclause></clause><clause id="H08F094944DF747BBB5560CAD873956C4"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="HADD56DFF33654ABB8B51DFEB52DB5B20"><enum>(D)</enum><header>Time, form, and
manner of election</header><text>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.</text>
</subparagraph><subparagraph id="HA423790F9E7D490AB4F9DAD723DB6F51"><enum>(E)</enum><header>Reporting</header><text>A
plan sponsor of a plan to which this paragraph applies shall—</text>
<clause id="H298D91D5F00E438A9B2FDB3F1531D928"><enum>(i)</enum><text>give notice of
such election to participants and beneficiaries of the plan, and</text>
</clause><clause id="H8A26B316DD424B859AAB7967F161FC57"><enum>(ii)</enum><text>inform the
Pension Benefit Guaranty Corporation of such election in such form and manner
as the Pension Benefit Guaranty Corporation may
prescribe.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H078A94AA61CE4C50B80C36D8B1F830D6"><enum>(2)</enum><header>Amendment to
Internal revenue Code of 1986 </header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="HCC86160FA3D54154AFBA83F09F59F463" style="OLC">
<paragraph display-inline="no-display-inline" id="HF6F6B4DBE99542669699020FFB865EC8"><enum>(8)</enum><header>Elective special
relief rules</header><text display-inline="yes-display-inline">Notwithstanding
any other provision of this subsection—</text>
<subparagraph id="HED729A562FA541E7975F5A138A8966F4"><enum>(A)</enum><header>Amortization of
net investment losses</header>
<clause id="HA53268E36C9A49DDA871EE930C0AC723"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<subclause id="HF0515AB418204995BBD9A5ECE473C868"><enum>(I)</enum><text>beginning with the
plan year for which the allocable portion is determined, and</text>
</subclause><subclause id="HCD42EB1D3251415CAFA234A16298473F"><enum>(II)</enum><text>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.</text>
</subclause></clause><clause id="H91A8577F05E74F7C97964D4F84A9E3E3"><enum>(ii)</enum><header>Coordination
with extensions</header><text>If an election is made under clause (i) for any
plan year—</text>
<subclause id="HAAFB13B4E6794FB8A7373B3FA0D6DB4A"><enum>(I)</enum><text>no extension of
the amortization period under clause (i) shall be allowed under subsection (d),
and</text>
</subclause><subclause id="H64BF147A60074607A224A7A30E87B895"><enum>(II)</enum><text>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.</text>
</subclause></clause><clause id="H970BE2091E66482C974191F8E40E900A"><enum>(iii)</enum><header>Definitions
and rules</header><text>For purposes of this subparagraph—</text>
<subclause commented="no" id="idFB0F3474D381454B82C6F8485D75AB61"><enum>(I)</enum><header>Net investment
losses</header><text>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.</text>
</subclause><subclause commented="no" id="idB46D6E1E509240AA98E2172DF8533601"><enum>(II)</enum><header>Expected
value</header><text>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.</text>
</subclause><subclause id="H66D21107652E40A4A1C5E705421C66FA"><enum>(III)</enum><header>Criminally
fraudulent investment arrangements</header><text>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.</text>
</subclause><subclause display-inline="no-display-inline" id="H66CFF8E188E9419D890B02152F7F80E4"><enum>(IV)</enum><header>Amount
attributable to allocable portion of net investment loss</header><text>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.</text>
</subclause><subclause id="HD1D6591BCCBA47DB86706DFA1614E2BB"><enum>(V)</enum><header>Allocable
portion of net investment losses</header><text>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:</text>
<table align-to-level="section" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.4" table-template-name="Tax (No Calculation)" table-type="subformat">
<tgroup cols="2" rowsep="0"><colspec align="left" coldef="fig" colname="column1" colwidth="117pts" min-data-value="21"></colspec><colspec coldef="txt" colname="column2" colwidth="208pts" min-data-value="200"></colspec>
<thead>
<row><entry align="left" colname="column1" morerows="0" namest="column1" rowsep="0">Plan year after the plan year in which the net
investment loss was incurred</entry><entry align="right" colname="column2" morerows="0" namest="column2" rowsep="0">Allocable portion of net investment
loss</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">1st</entry><entry align="right" colname="column2" rowsep="0"><fraction>½</fraction></entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">2nd</entry><entry align="right" colname="column2" rowsep="0">0</entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">3rd</entry><entry align="right" colname="column2" rowsep="0"><fraction>1/6</fraction></entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">4th</entry><entry align="right" colname="column2" rowsep="0"><fraction>1/6</fraction></entry>
</row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">5th</entry><entry align="right" colname="column2" rowsep="0"><fraction>1/6</fraction></entry>
</row>
</tbody>
</tgroup>
</table>
</subclause><subclause display-inline="no-display-inline" id="H15410885B0354742986FF7733F1ED371"><enum>(VI)</enum><header>Special Rule
for plans that adopt longer smoother period</header><text>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 ½ 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.</text>
</subclause><subclause commented="no" id="HF2F01E2C040545A298DE0F41F1C92328"><enum>(VII)</enum><header>Special rule
for overstatement of loss</header><text>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.</text>
</subclause><subclause commented="no" id="H58B3BD1CE5874FC1ACAE48B00368C60B"><enum>(VIII)</enum><header>Special rule
in years for which overall experience is gain</header><text display-inline="yes-display-inline">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.</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="H5EE8CFBF069F47E3BDCC95D7C671C5CC"><enum>(B)</enum><header>Solvency
test</header>
<clause display-inline="no-display-inline" id="HE32B146301074AE7BB1A1BE05943076A"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="H8303533DA02048B694ADD9A27736C218"><enum>(ii)</enum><header>Funded
percentage</header><text>For purposes of clause (i), the term <quote>funded
percentage</quote> 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.</text>
</clause><clause commented="no" id="H7166A01A37D14E57A307F23887A20C19"><enum>(iii)</enum><header>Actuarial
assumptions</header><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="H84A6E1065DF3431C92A35CCB8E01D24D"><enum>(C)</enum><header>Additional
restriction on benefit increases</header><text>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—</text>
<clause id="HF7104035C6EB4F77B3FD41DF5C37A780"><enum>(i)</enum><text>the plan actuary
certifies that—</text>
<subclause id="HB2E31D11E39A4A669E498AA61392F576"><enum>(I)</enum><text>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</text>
</subclause><subclause id="HD4201381FCA74645A40A57D1A98A3428"><enum>(II)</enum><text>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</text>
</subclause></clause><clause id="HB2CFE0D4765B446EA5AF9F8D3E8636B6"><enum>(ii)</enum><text>the amendment is
required as a condition of qualification under part I or to comply with other
applicable law.</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="H74C14F2A2D784CB99A9C64D06F298DCC"><enum>(D)</enum><header>Time, form, and
manner of election</header><text>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.</text>
</subparagraph><subparagraph id="HE122D8BEB000405CAD573E33357C8CFB"><enum>(E)</enum><header>Reporting</header><text>A
plan sponsor of a plan to which this paragraph applies shall—</text>
<clause id="H53B6C96DA3084DF0857651D5EB102FEF"><enum>(i)</enum><text>give notice of
such election to participants and beneficiaries of the plan, and</text>
</clause><clause id="HC86F0AC729EA4779B0B2314B08DB25D9"><enum>(ii)</enum><text>inform the
Pension Benefit Guaranty Corporation of such election in such form and manner
as the Pension Benefit Guaranty Corporation may
prescribe.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H21131F9EBE5D48009CFBA3725B36EDD7"><enum>(c)</enum><header>Asset smoothing
for multiemployer plans</header>
<paragraph id="HF8C3E520ACD44BA1BCD57F82BB52C69A"><enum>(1)</enum><header>Amendment to
ERISA</header><text display-inline="yes-display-inline">Section 304(c)(2) of
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1084(c)(2)) is
amended—</text>
<subparagraph id="H86A49638F44E424F9FFFB9D8C6D15ACF"><enum>(A)</enum><text>by redesignating
subparagraph (B) as subparagraph (C); and</text>
</subparagraph><subparagraph id="H7C0445718AAC4C28948E81BA43CBCEB6"><enum>(B)</enum><text>by inserting after
subparagraph (A) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H3A76318853CF4C5C9B9D30C03F55EBA2" style="OLC">
<subparagraph id="HEDDA2D17E5EC4547B7541C0C8409A0BA"><enum>(B)</enum><header>Extended asset
smoothing period for certain investment losses</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HCD0ED93A347A45A680B0F94D54BB7C89"><enum>(2)</enum><header>Amendment to
Internal Revenue Code of 1986</header><text display-inline="yes-display-inline">Section 431(c)(2) of the Internal Revenue
Code of 1986 is amended—</text>
<subparagraph id="H7540441C774F44D6956E358A20B6A6AA"><enum>(A)</enum><text>by redesignating
subparagraph (B) as subparagraph (C); and</text>
</subparagraph><subparagraph id="H8CF7DF810BE248AAAC2CEB62E802A815"><enum>(B)</enum><text>by inserting after
subparagraph (A) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HFC9B4ABFA13246268E53A97331BA3F16" style="OLC">
<subparagraph id="H1218A79434004FA7A9A00F83C728E413"><enum>(B)</enum><header>Extended asset
smoothing period for certain investment losses</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="HDFFED49AB66D45C08C2D32544889C191"><enum>(d)</enum><header>Effective date
and special rules</header>
<paragraph id="HED48E028AF144FB8BB1E1CB09ED75ADA"><enum>(1)</enum><header>Effective
date</header><text>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.</text>
</paragraph><paragraph id="H6718710A24AF4616989FE1890BD8190C"><enum>(2)</enum><header>Deemed approval
for certain funding method changes</header><text>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)—</text>
<subparagraph id="H4873999692474655BC3B962D49E22B11"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="H67D470191DB943F1AD8A031C03290D36"><enum>(B)</enum><text>any resulting
funding method change base shall be treated for purposes of amortization as a
net experience loss or gain.</text>
</subparagraph></paragraph></subsection></section><section commented="no" id="HBC1932B352A64EACBE82D8308B71E184"><enum>305.</enum><header>Transition rule
for certifications of plan status</header>
<subsection id="HCCBDEB44AA8B4DD788C2922687EC128A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" id="H3250D168369942E5B340051F22F3244E"><enum>(b)</enum><header>Revision of
prior certification</header>
<paragraph commented="no" id="H291325FAFAF74BF2A8AE2AD7FFD275B7"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">If—</text>
<subparagraph commented="no" id="HFE06514E754B46A0BA87CC4B2C75EE01"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph commented="no" id="H0B38DF55B45B4E56BCA52BA137190145"><enum>(B)</enum><text>the plan actuary’s
certification of the plan status for such plan year (hereinafter in this
subsection referred to as <quote>original certification</quote>) did not take
into account any election so made,</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">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 <quote>new certification</quote>) 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.</continuation-text></paragraph><paragraph commented="no" id="H80FDA1784529485B9BC45C899BA09D6A"><enum>(2)</enum><header>Due date for new
certification</header><text>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.</text>
</paragraph><paragraph commented="no" id="H65EA60EAA3DD4C73B74EB4D850BAF036"><enum>(3)</enum><header>Notice</header>
<subparagraph commented="no" id="HDABF496D66F4471CAEF9620E7D4CE1B0"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph commented="no" id="H3CCDA10EC22F4791B3F428F5B7ADCC67"><enum>(B)</enum><header>Notice already
provided</header><text>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.</text>
</subparagraph></paragraph><paragraph commented="no" id="H318494F98E0C48B487BA907E70B64992"><enum>(4)</enum><header>Effect of change
in status</header><text>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.</text>
</paragraph></subsection></section><enum>IV</enum><header>Revenue
Offsets</header>
<subtitle id="H9D4F4B16868A4C45A242A86DBA0101E7"><enum>A</enum><header>Personal service
income earned in pass-thru entities</header>
<section commented="no" display-inline="no-display-inline" id="HBA1CD458F8124E0693239DBF1F9FD457" section-type="subsequent-section"><enum>401.</enum><header>Partnership
interests transferred in connection with performance of services</header>
<subsection commented="no" id="HF20B06B8909E4AE5A5DA334337CFC463"><enum>(a)</enum><header>Modification to
election To include partnership interest in gross income in year of
transfer</header><text display-inline="yes-display-inline">Subsection (c) of
section 83 is amended by redesignating paragraph (4) as paragraph (5) and by
inserting after paragraph (3) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H5D87DDCAC14F4080BA3300932072C8CA" style="OLC">
<paragraph id="H3358ECED6CDF49F1AF8A472573C2CE22"><enum>(4)</enum><header>Partnership
interests</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="HB4A48A465AFE452997EB8AB827A240C5"><enum>(A)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph id="H2E41993E70E846B1908CFE2AEE96D869"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H958BDC72876F4D5BB37F7A5234FF0BAB"><enum>(b)</enum><header>Conforming
amendment</header><text>Paragraph (2) of section 83(b) is amended by inserting
<quote>or subsection (c)(4)(B)</quote> after <quote>paragraph
(1)</quote>.</text>
</subsection><subsection id="HFEABF07F4A2140E1A12A116C80522843"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to interests
in partnerships transferred after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H171EC4EC30224F9CA619365564A570B6" section-type="subsequent-section"><enum>402.</enum><header>Income of partners
for performing investment management services treated as ordinary income
received for performance of services</header>
<subsection id="HC8BB6C094BFC4F67B35A6962B371FBFB"><enum>(a)</enum><header>In
general</header><text>Part I of subchapter K of chapter 1 is amended by adding
at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H5FD339A2B53647B29C0DC5C6EBCC743D" style="OLC">
<section id="H35D4B3ABD0A240F599C110AB90B01171"><enum>710.</enum><header>Special rules
for partners providing investment management services to partnership</header>
<subsection id="HCA6C61D6AF88410CB5187241F06D58E0"><enum>(a)</enum><header>Treatment of
distributive share of partnership items</header><text display-inline="yes-display-inline">For purposes of this title, in the case of
an investment services partnership interest—</text>
<paragraph id="HCE10C0468E2443DFB1D383C1DADBA745"><enum>(1)</enum><header>In
general</header><text>Notwithstanding section 702(b)—</text>
<subparagraph id="H4169376F986E4E0EBAE3A780C64E0F3A"><enum>(A)</enum><text>any net income
with respect to such interest for any partnership taxable year shall be treated
as ordinary income, and</text>
</subparagraph><subparagraph id="H3FB064E90CE04213BFA360161A197D0D"><enum>(B)</enum><text>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.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">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).</continuation-text></paragraph><paragraph id="H6679678C71C642CF99005D1891D0070D"><enum>(2)</enum><header>Treatment of
losses</header>
<subparagraph id="H02C6F8AAC78149168A9794D1C999646B"><enum>(A)</enum><header>Limitation</header><text>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—</text>
<clause id="H48C1E793AD6C4FA2A08AA0178C0135C0"><enum>(i)</enum><text>the aggregate net
income with respect to such interest for all prior partnership taxable years,
over</text>
</clause><clause id="H5B8FAD261BEF4CABB2571C4D52D444F2"><enum>(ii)</enum><text>the aggregate net
loss with respect to such interest not disallowed under this subparagraph for
all prior partnership taxable years.</text>
</clause></subparagraph><subparagraph id="HA096CE0C26974E999E7DFB649BD437F9"><enum>(B)</enum><header>Carryforward</header><text>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.</text>
</subparagraph><subparagraph id="H749000E8092D45A2A08EDD60DC324F87"><enum>(C)</enum><header>Basis
adjustment</header><text>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).</text>
</subparagraph><subparagraph id="HFA700B8DFB4C4A46B5D3611F4F46CD2E"><enum>(D)</enum><header>Prior
partnership years</header><text>Any reference in this paragraph to prior
partnership taxable years shall only include prior partnership taxable years to
which this section applies.</text>
</subparagraph></paragraph><paragraph id="H79D988E9732D45CAB142981E6C61E8EB"><enum>(3)</enum><header>Net income and
loss</header><text>For purposes of this section—</text>
<subparagraph id="H2C1BD2D49C0D4318B477316061597DE2"><enum>(A)</enum><header>Net
income</header><text>The term <term>net income</term> means, with respect to
any investment services partnership interest for any partnership taxable year,
the excess (if any) of—</text>
<clause id="HD893A6CDE2C3497D9BB44C1B7664CDDC"><enum>(i)</enum><text>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</text>
</clause><clause id="HF489E9F04BA343FA96BE4BC3A8E194C5"><enum>(ii)</enum><text>all items of
deduction and loss so taken into account.</text>
</clause></subparagraph><subparagraph id="H2701C8471EBC4C82BBDBA76E2A20CEB6"><enum>(B)</enum><header>Net
loss</header><text>The term <term>net loss</term> 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).</text>
</subparagraph></paragraph><paragraph id="H156BCA4FC7424F029AD07247FD3EBEBD"><enum>(4)</enum><header>Special rule for
dividends</header><text>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).</text>
</paragraph></subsection><subsection id="HC227029C978D47B0B20651F753BAE401"><enum>(b)</enum><header>Dispositions of
partnership interests</header>
<paragraph id="H58A152D9EF59479CA2D7AF80F0254311"><enum>(1)</enum><header>Gain</header><text>Any
gain on the disposition of an investment services partnership interest shall
be—</text>
<subparagraph id="HA681B578B6604330A31B010AFC9CCFA6"><enum>(A)</enum><text>treated as
ordinary income, and</text>
</subparagraph><subparagraph id="H06FF8C2989A142AFB7B415F81B67F0B0"><enum>(B)</enum><text>recognized
notwithstanding any other provision of this subtitle.</text>
</subparagraph></paragraph><paragraph id="H9234C2A13A314166B1AB9394B8CA6018"><enum>(2)</enum><header>Loss</header><text>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—</text>
<subparagraph id="H1746C455640446A08A4FD13BE6AF1DBB"><enum>(A)</enum><text>the aggregate net
income with respect to such interest for all partnership taxable years to which
this section applies, over</text>
</subparagraph><subparagraph id="HE732ADDDBF174535AC116E5A4D439585"><enum>(B)</enum><text>the aggregate net
loss with respect to such interest allowed under subsection (a)(2) for all
partnership taxable years to which this section applies.</text>
</subparagraph></paragraph><paragraph id="HDCFF4A38A5ED4EE99E37998BA28D7665"><enum>(3)</enum><header>Election with
respect to certain exchanges</header><text>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—</text>
<subparagraph id="H95D311A629F2470F9381319BF9A7149A"><enum>(A)</enum><text>the taxpayer makes
an irrevocable election to treat the partnership interest received in the
exchange as an investment services partnership interest, and</text>
</subparagraph><subparagraph id="H97AD9E3D9FD74916BFFFC2C1C8ACD49C"><enum>(B)</enum><text>the taxpayer
agrees to comply with such reporting and recordkeeping requirements as the
Secretary may prescribe.</text>
</subparagraph></paragraph><paragraph id="H397D3F6FB6D449248E484DBF8BE3D76A"><enum>(4)</enum><header>Disposition of
portion of interest</header><text>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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H401C94B23EE74137AB8DC2A6D6CE6BEF"><enum>(5)</enum><header>Distributions of
partnership property</header><text>In the case of any distribution of property
by a partnership with respect to any investment services partnership interest
held by a partner—</text>
<subparagraph commented="no" id="H0F40FD1DD7B449DE9CFEE65FA266F1F7"><enum>(A)</enum><text>the excess (if
any) of—</text>
<clause commented="no" id="H9C2C399D6A644A3285BE481E8DCBED9D"><enum>(i)</enum><text>the fair market
value of such property at the time of such distribution, over</text>
</clause><clause commented="no" id="H812B62C3835A46A890F5B92E11CD1F50"><enum>(ii)</enum><text>the adjusted
basis of such property in the hands of the partnership,</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">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),</continuation-text></subparagraph><subparagraph commented="no" id="H6836FE2987014354AF837A1AFC600068"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph commented="no" id="H210947953D91409EBE6485F9BC2BC552"><enum>(C)</enum><text>the basis of such
property in the hands of such partner shall be such fair market value.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">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).</continuation-text></paragraph><paragraph id="H69A272177D66400C94C5ADD8E1494D6E"><enum>(6)</enum><header>Application of
section 751</header>
<subparagraph id="H42321ED539DC478FBE9F88ACC03C1657"><enum>(A)</enum><header>In
general</header><text>In applying section 751, an investment services
partnership interest shall be treated as an inventory item.</text>
</subparagraph><subparagraph id="HB78C010E3F404B21A65DFCD97EBC175C"><enum>(B)</enum><header>Exception for
certain dispositions of interests in a publicly traded
partnership</header><text display-inline="yes-display-inline">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).</text>
</subparagraph></paragraph></subsection><subsection id="H7A77392DEA1641FD98F808D3958D46EC"><enum>(c)</enum><header>Investment
services partnership interest</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph id="HD5ADA0ECC405472C9A0DA113CE9B67AB"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<term>investment services partnership interest</term> 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:</text>
<subparagraph id="HB5B00105176B4DBC806F62D371B770AC"><enum>(A)</enum><text>Advising as to the
advisability of investing in, purchasing, or selling any specified
asset.</text>
</subparagraph><subparagraph id="H561A8595DB4C4E9D8F2775315F8B78C7"><enum>(B)</enum><text>Managing,
acquiring, or disposing of any specified asset.</text>
</subparagraph><subparagraph id="H9D76C12F0FF74138A6FDC197D7A73F29"><enum>(C)</enum><text>Arranging
financing with respect to acquiring specified assets.</text>
</subparagraph><subparagraph id="HE69D62B505734AD7BA735032A7356D73"><enum>(D)</enum><text>Any activity in
support of any service described in subparagraphs (A) through (C).</text>
</subparagraph></paragraph><paragraph id="HACA85E4507AB4144B3830718DE8C712B"><enum>(2)</enum><header>Specified
asset</header><text>The term <term>specified asset</term> 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.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H450A20AAF9FD41BBAB9FAE0586A2EF80"><enum>(3)</enum><header>Exception for
family farms</header><text display-inline="yes-display-inline">The term
<quote>specified asset</quote> 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.</text>
</paragraph><paragraph id="HD9D7C67FF14D47E98B0FCC811A81F72A"><enum>(4)</enum><header>Exception for
partnerships with pro rata allocations based on capital</header><text>Except as
provided by the Secretary, the term <term>investment services partnership
interest</term> 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).</text>
</paragraph><paragraph display-inline="no-display-inline" id="HF4DD29590CCD4B1A9D4CAAC4E3A25EF2"><enum>(5)</enum><header>Related
persons</header><text display-inline="yes-display-inline">A person shall be
treated as related to another person if the relationship between such persons
is described in section 267 or 707(b).</text>
</paragraph></subsection><subsection id="H0B4D72B38E5C48B9A74021C201798EDE"><enum>(d)</enum><header>Exception for
certain capital interests</header>
<paragraph id="H560E630627B34FF6AD3D85E20A12325A"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="H3453F18D9F574FA5A17204C41AFC1F39"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="H8D4435482CE44220874C8DA0CF462730"><enum>(B)</enum><text>the allocations
made to such other interests are significant compared to the allocations made
to such qualified capital interest.</text>
</subparagraph></paragraph><paragraph id="HF34A26652CC74AFDAECB10C48D601327"><enum>(2)</enum><header>Authority to
provide exceptions to allocation requirements</header><text display-inline="yes-display-inline">To the extent provided by the Secretary in
regulations or other guidance—</text>
<subparagraph id="H03BEFA52662D4865B822972C24CEECB3"><enum>(A)</enum><header>Allocations to
portion of qualified capital interest</header><text>Paragraph (1) may be
applied separately with respect to a portion of a qualified capital
interest.</text>
</subparagraph><subparagraph id="H21B58BE8A8B34A84AD433F025B6083E2"><enum>(B)</enum><header>No or
insignificant allocations to nonservice providers</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="H8B22097EF4A44E85BEA7B3C6B6738055"><enum>(C)</enum><header>Allocations to
service providers’ qualified capital interests which are less than other
allocations</header><text>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.</text>
</subparagraph></paragraph><paragraph id="H12F3F134019F45529925E41C41AE1B7D"><enum>(3)</enum><header>Special rule for
changes in services</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="H305415338A5041FBB3732358AC24A1CF"><enum>(A)</enum><text>notwithstanding
subsection (c)(1), such interest shall be treated as an investment services
partnership interest as of the time of such change, and</text>
</subparagraph><subparagraph id="HEF2132FE948D4CB0AE07A979A1853DE0"><enum>(B)</enum><text>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).</text>
</subparagraph></paragraph><paragraph id="HEF9EB33BE91C4FDBAB2663A70A702203"><enum>(4)</enum><header>Special rule for
tiered partnerships</header><text>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.</text>
</paragraph><paragraph id="HC5546AF5B446459AAC87E58652B06D78"><enum>(5)</enum><header>Exception for
no-self-charged carry and management fee provisions</header><text>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).</text>
</paragraph><paragraph display-inline="no-display-inline" id="H40DE107580074307AFCBA0595351B73F"><enum>(6)</enum><header>Special rule for
dispositions</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="H4F81C7C6335346D9B0881FC94D3C0033"><enum>(A)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph id="HEC06B40531A844BF884E95BA1B98FAF1"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBE99024194B642578A41D95D418E29C8"><enum>(7)</enum><header>Qualified
capital interest</header><text>For purposes of this subsection—</text>
<subparagraph id="H890A33A285F4470E8B898F86D3C5B19E"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified capital interest</term> means so
much of a partner’s interest in the capital of the partnership as is
attributable to—</text>
<clause commented="no" id="H5DED14D42C134FEBB18924BFBBC4C568"><enum>(i)</enum><text>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)),</text>
</clause><clause commented="no" id="HAED87F123B1B4F1EB522D9C84C6E493C"><enum>(ii)</enum><text>any amounts which
have been included in gross income under section 83 with respect to the
transfer of such interest, and</text>
</clause><clause commented="no" id="HAD0D6538587A460191615695EA86F247"><enum>(iii)</enum><text>the excess (if
any) of—</text>
<subclause id="HF8C503FA1B504F26AC28B57AFFB54761"><enum>(I)</enum><text>any items of
income and gain taken into account under section 702 with respect to such
interest, over</text>
</subclause><subclause id="H44F9EAF994E94FD186BC1C6841BFEA27"><enum>(II)</enum><text>any items of
deduction and loss so taken into account.</text>
</subclause></clause></subparagraph><subparagraph id="HD39CDD5BF8AF4001B6EC11546497BCA0"><enum>(B)</enum><header>Adjustment to
qualified capital interest</header>
<clause id="H2FACEA3C1BF743FD802543E4BD8CD7B9"><enum>(i)</enum><header>Distributions
and losses</header><text>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).</text>
</clause><clause id="H6D554D652EF748DDA6F0E3685F2B07E3"><enum>(ii)</enum><header>Special rule
for contributions of property</header><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="HF4A985FE631F4BA4B8C3E0A9F00130AA"><enum>(8)</enum><header>Treatment of
certain loans</header>
<subparagraph id="HF3913A43938D4EE78508D3D4B8F1D922"><enum>(A)</enum><header>Proceeds of
partnership loans not treated as qualified capital interest of service
providing partners</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="H8BFDE94C9DDE4D34AD2E9EFCAAD5A4DD"><enum>(B)</enum><header>Reduction in
allocations to qualified capital interests for loans from nonservice-providing
partners to the partnership</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="HCA283F9A186D41CD9A5090C414077F46"><enum>(e)</enum><header>Other income and
gain in connection with investment management services</header>
<paragraph id="H0C1523A461094396B5B7C38B2CB223D7"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">If—</text>
<subparagraph id="H4EE833C18A4F4A26938B9FE529B25846"><enum>(A)</enum><text>a person performs
(directly or indirectly) investment management services for any entity,</text>
</subparagraph><subparagraph id="HABFE581610E94578AE502DE1A6A0AAC6"><enum>(B)</enum><text>such person holds
(directly or indirectly) a disqualified interest with respect to such entity,
and</text>
</subparagraph><subparagraph id="H273F4A21992B48068489830C6E7BC443"><enum>(C)</enum><text display-inline="yes-display-inline">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,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">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.</continuation-text></paragraph><paragraph id="H83BF1E4D28F541CB819D76DF9534D748"><enum>(2)</enum><header>Definitions</header><text>For
purposes of this subsection—</text>
<subparagraph id="HEB043DAB0C554A6EA79DE67332A7E96D"><enum>(A)</enum><header>Disqualified
interest</header>
<clause id="H94ACF2F959D8433996BDAA16ECFB3CAE"><enum>(i)</enum><header>In
general</header><text>The term <term>disqualified interest</term> means, with
respect to any entity—</text>
<subclause id="H11E97009E7A64CD1A2327F7723DECB96"><enum>(I)</enum><text>any interest in
such entity other than indebtedness,</text>
</subclause><subclause id="HEB6E813A7CFB4F928FE15D27CE2EA8F5"><enum>(II)</enum><text>convertible or
contingent debt of such entity,</text>
</subclause><subclause id="H8531585F270748E19C7C648FF2CA1EA2"><enum>(III)</enum><text>any option or
other right to acquire property described in subclause (I) or (II), and</text>
</subclause><subclause id="H5DB4A7028D9442E9B6EA4E318187F711"><enum>(IV)</enum><text>any derivative
instrument entered into (directly or indirectly) with such entity or any
investor in such entity.</text>
</subclause></clause><clause id="HDA074A0BB8E247B09A9B5E21645BED8A"><enum>(ii)</enum><header>Exceptions</header><text>Such
term shall not include—</text>
<subclause id="HB12FE7500A5843E097B0DAC4C5B281DE"><enum>(I)</enum><text>a partnership
interest,</text>
</subclause><subclause id="H59216095F3B546F68C58110A032FE091"><enum>(II)</enum><text>except as
provided by the Secretary, any interest in a taxable corporation, and</text>
</subclause><subclause id="H8585A0AA92AF40CB8217F441578171A9"><enum>(III)</enum><text>except as
provided by the Secretary, stock in an S corporation.</text>
</subclause></clause></subparagraph><subparagraph id="H27E4ECF0AD124A0190DFD872505B6CCF"><enum>(B)</enum><header>Taxable
corporation</header><text>The term <term>taxable corporation</term>
means—</text>
<clause id="H45B10BCDA50C4EB881B3DB1BF5558F55"><enum>(i)</enum><text>a
domestic C corporation, or</text>
</clause><clause id="H722C5F5BA8524EF8A32C962E2016A938"><enum>(ii)</enum><text>a
foreign corporation substantially all of the income of which is—</text>
<subclause id="H9EFF22EB97574C5D949B5644CC205DFC"><enum>(I)</enum><text>effectively
connected with the conduct of a trade or business in the United States,
or</text>
</subclause><subclause id="H6B318B1365854519B0FAE5F9B0EDEDE2"><enum>(II)</enum><text>subject to a
comprehensive foreign income tax (as defined in section 457A(d)(2)).</text>
</subclause></clause></subparagraph><subparagraph id="H2C0068F38F3D44039378E1D0A61EC844"><enum>(C)</enum><header>Investment
management services</header><text>The term <term>investment management
services</term> means a substantial quantity of any of the services described
in subsection (c)(1).</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H752D1BA09FAC4B0386EEEFB55F1E4168"><enum>(f)</enum><header>Regulations</header><text>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—</text>
<paragraph commented="no" id="H397BB03B51164D8D920572856624EB9F"><enum>(1)</enum><text>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,</text>
</paragraph><paragraph id="H044DF6F9A5364DA99F2A459F9010FF26"><enum>(2)</enum><text>prevent the
avoidance of the purposes of this section, and</text>
</paragraph><paragraph commented="no" id="H521078856B024ED0B5CB7F3001888C48"><enum>(3)</enum><text>coordinate this
section with the other provisions of this title.</text>
</paragraph></subsection><subsection commented="no" id="H3DF628D83AD3410BBF9A708E61CA6CC3"><enum>(g)</enum><header>Special rules
for individuals</header><text display-inline="yes-display-inline">In the case
of an individual—</text>
<paragraph commented="no" id="H05F9656BC06849E8810F3C97039AFEA0"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (a)(1)
shall apply only to the applicable percentage of the net income or net loss
referred to in such subsection.</text>
</paragraph><paragraph id="H9F6AB960FFB442CCA2D004C33DD8E8D1"><enum>(2)</enum><header>Dispositions,
etc</header><text>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.</text>
</paragraph><paragraph id="H81F1CC9A705F4AE789B152C4A1FECA20"><enum>(3)</enum><header>Pro rata
allocation to items</header><text>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.</text>
</paragraph><paragraph commented="no" id="H88CFA3D2918B45F98B0432A9CF4662BC"><enum>(4)</enum><header>Special rule for
recognition of gain</header><text>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).</text>
</paragraph><paragraph display-inline="no-display-inline" id="HE2649D46FB054912964E780E5CF9DBB2"><enum>(5)</enum><header>Coordination
with limitation on losses</header><text>For purposes of applying paragraph (2)
of subsection (a) with respect to any net loss for any taxable year—</text>
<subparagraph id="HDD72DF1C772149BBA6B87F2F39A31EFC"><enum>(A)</enum><text display-inline="yes-display-inline">such paragraph shall only apply with
respect to the applicable percentage of such net loss for such taxable
year,</text>
</subparagraph><subparagraph id="HE8460111AF6A4E269A907E8E7E24F0D3"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="H681B2EFFBE9A49C4BEC6C76024FDC2A0"><enum>(C)</enum><text>any net loss
carried forward to the succeeding partnership taxable year under subparagraph
(B) of such paragraph shall—</text>
<clause id="H95F5C5D75C2E4F56A6DB2C75B2D6D8B2"><enum>(i)</enum><text>be
taken into account in such succeeding year without reduction under this
subsection, and</text>
</clause><clause id="HA82AB2FAF3794970A7538DF1639EE779"><enum>(ii)</enum><text>in lieu of being
taken into account as an item of loss in such succeeding year, shall be taken
into account—</text>
<subclause id="H2F2DDF28BBD04F428C825ED0D0781F2F"><enum>(I)</enum><text>as an increase in
net loss or as a reduction in net income (including below zero), as the case
may be, and</text>
</subclause><subclause id="H585019D7DCF94FEABEC781ED459F38EC"><enum>(II)</enum><text>after any
reduction in the amount of such net loss or net income under this
subsection.</text>
</subclause></clause></subparagraph><continuation-text continuation-text-level="paragraph">A rule
similar to the rule of the preceding sentence shall apply for purposes of
subsection (b)(2)(A).</continuation-text></paragraph><paragraph id="HDFF3219F46A34C15A22DE67A59303117"><enum>(6)</enum><header>Coordination
with treatment of dividends</header><text>Subsection (a)(4) shall only apply to
the applicable percentage of dividends described therein.</text>
</paragraph><paragraph commented="no" id="H673A2892CBD64D90810C6A2B36F7898E"><enum>(7)</enum><header>Applicable
percentage</header><text>For purposes of this subsection—</text>
<subparagraph commented="no" id="H4F4FBEF63C5D48A89BB9EEAF06B6A3E9"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraphs (B) and (C), the term
<quote>applicable percentage</quote> means 75 percent.</text>
</subparagraph><subparagraph commented="no" id="H79FF194B77D64EBEB9B477EA316E850B"><enum>(B)</enum><header>Exception for
disposition of assets held by investment services partnerships at least 5
years</header><text>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.</text>
</subparagraph><subparagraph id="HC6C5AF2FE44A47E2A0A2D97C12AFFD6B"><enum>(C)</enum><header>Exception for
disposition of investment services partnership interests held at least 5
years</header>
<clause id="H6AA24E04DEB14D3680ACA1643A71DD24"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">The applicable
percentage shall be 50 percent with respect to—</text>
<subclause id="HC1F3650E5C284D1AA977C9B1F9DED582"><enum>(I)</enum><text>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</text>
</subclause><subclause id="H9CF1236122A443CF9E885F47CFF77955"><enum>(II)</enum><text>gain or loss
under subsection (b) on the disposition of an investment services partnership
interest which has been held for at least 5 years,</text>
</subclause><continuation-text continuation-text-level="clause">but only to
the extent such gain or loss is attributable to assets held by the investment
services partnership for at least 5 years.</continuation-text></clause><clause id="HD8FD72F18A9F4427A6C8B7A6FFED2098"><enum>(ii)</enum><header>Application in
the case of tiered partnerships, etc</header><text>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.</text>
</clause><clause id="H30D46001EA834173982FA8EFF8807AF8"><enum>(iii)</enum><header>Regulations</header><text>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.</text>
</clause></subparagraph><subparagraph id="H7EC5C0AFD54E45A093302C76AD936D5A"><enum>(D)</enum><header>Treatment of
goodwill and other section 197 intangibles</header><text display-inline="yes-display-inline">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—</text>
<clause id="HB0775214AFAF4B5D8CCEB091E1E6A486"><enum>(i)</enum><text>the holding period
of such intangible shall not be less than the holding period of the investment
services partnership interest in the partnership, and</text>
</clause><clause id="H0D9BB5B1B66A4B0F8B925634F131FF39"><enum>(ii)</enum><text>the value of such
intangible shall be determined in a manner consistent with the regulations
described in subparagraph (E).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9E1C3FC72C7C4D81ABB241A1DDBAEB41"><enum>(E)</enum><header>Valuation
methods</header><text>The Secretary shall prescribe regulations or guidance
which provide—</text>
<clause id="H1086331B734D4D7AA58840631C95FEF1"><enum>(i)</enum><text>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,</text>
</clause><clause id="H276483FC3C304F05AD2E9DC709F4E1E5"><enum>(ii)</enum><text>circumstances
under which valuations are sufficiently independent to provide an accurate
determination of fair market value, and</text>
</clause><clause id="H8C3A01C3F7AB48A3845F80FC06A41173"><enum>(iii)</enum><text>any information
required to be furnished to the Secretary by the parties to the disposition
with respect to such valuation.</text>
</clause></subparagraph><subparagraph id="HE251FDEEA2374031AFE89BDABD2927CB"><enum>(F)</enum><header>Definitions and
special rules</header><text>For purposes of this paragraph—</text>
<clause id="H30D8E904C19D4C0CA8FC2F0782B7DE5D"><enum>(i)</enum><header>Investment
services partnership</header><text>The term <quote>investment services
partnership</quote> means, with respect to any investment services partnership
interest, the entity in which such interest is held.</text>
</clause><clause id="H7756B7ED111A49AC8B0AE7210C4FE6FF"><enum>(ii)</enum><header>Section 197
intangible</header><text>The term <quote>section 197 intangible</quote> has the
meaning given such term in section 197(d).</text>
</clause><clause id="H930FBEA0028A4B0FB07AE9BF3324EA69"><enum>(iii)</enum><header>Application to
disqualified interests</header><text>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).</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" id="HC558230249854DB18FA32C60CD64FAEE"><enum>(h)</enum><header>Cross
reference</header><text>For 40 percent penalty on certain underpayments due to
the avoidance of this section, see section
6662.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H170C7C6218784992A05957359211D032"><enum>(b)</enum><header>Treatment for
purposes of section 7704</header><text>Subsection (d) of section 7704 is
amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H25CE9AE1E29C49F1A3E3E2F934C234B0" style="OLC">
<paragraph id="HDB641B31FEBE4D7190B2CC88BCF15B36"><enum>(6)</enum><header>Income from
investment services partnership interests not qualified</header>
<subparagraph id="HD6BEE74C4A004B4189C2B6D6885F631D"><enum>(A)</enum><header>In
general</header><text>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)).</text>
</subparagraph><subparagraph id="H3ED0603D9B3C4677A9C02EEDBF9C92C5"><enum>(B)</enum><header>Special rules
for certain partnerships</header>
<clause id="HBA43ABE58DFE439AB0F207F96D72FD5E"><enum>(i)</enum><header>Certain
partnerships owned by real estate investment trusts</header><text>Subparagraph
(A) shall not apply in the case of a partnership which meets each of the
following requirements:</text>
<subclause id="H50E5FB4A72594BC1AC2C9D1F74323463"><enum>(I)</enum><text>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.</text>
</subclause><subclause id="H793177E9100C43C1991469C8969D2BB9"><enum>(II)</enum><text display-inline="yes-display-inline">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)).</text>
</subclause><subclause id="H76E54E98CB874D46B0BBA06D77A1B7E7"><enum>(III)</enum><text>Such partnership
meets the requirements of paragraphs (2), (3), and (4) of section
856(c).</text>
</subclause></clause><clause id="H2B70A42FAB3E4B2FBE628123E23D9F6B"><enum>(ii)</enum><header>Certain
partnerships owning other publicly traded
partnerships</header><text>Subparagraph (A) shall not apply in the case of a
partnership which meets each of the following requirements:</text>
<subclause id="HDDE6611C5CC143A49ABF2960ED6BDD83"><enum>(I)</enum><text>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)).</text>
</subclause><subclause commented="no" id="HFFAF1845FBB444CB9380F59029B4D51C"><enum>(II)</enum><text>Substantially all
of the income of such partnership is ordinary income or section 1231 gain (as
defined in section 1231(a)(3)).</text>
</subclause></clause></subparagraph><subparagraph id="HD062CA7198924B80AE0B6FD602890539"><enum>(C)</enum><header>Transitional
rule</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H238B6FE9B4364AB0874C42ADC813AD99"><enum>(c)</enum><header>Imposition of
penalty on underpayments</header>
<paragraph id="HA1025EEFCE9041A3893E3664156FFEB4"><enum>(1)</enum><header>In
general</header><text>Subsection (b) of section 6662 is amended by inserting
after paragraph (7) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H4DA3FDCD9645409A9611BDC704D658FA" style="OLC">
<paragraph id="HDCBA1E0FD4A94A419DE876433918C83E"><enum>(8)</enum><text>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).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9B8CC3E91D5F4CB581AB093B7F840C24"><enum>(2)</enum><header>Amount of
penalty</header>
<subparagraph id="H31B727B6F3514731A4FEE8B05CEA25BF"><enum>(A)</enum><header>In
general</header><text>Section 6662 is amended by adding at the end the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H4FD342923B184BD093291FEE0BC3FD9D" style="OLC">
<subsection id="H86818AE6CFD24CE99EC1A5B2C3F8C5B9"><enum>(k)</enum><header>Increase in
penalty in case of property transferred for investment management
services</header><text>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 <quote>40 percent</quote>
for <quote>20
percent</quote>.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph display-inline="no-display-inline" id="HF32B45F834254C4A829E841F47CCF046"><enum>(B)</enum><header>Conforming
amendment</header><text>Subparagraph (B) of section 6662A(e)(2) is amended by
striking <quote>or (i)</quote> and inserting <quote>, (i), or
(k)</quote>.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HBFD35A4E58DE42F6BBF8243FF1C1FD62"><enum>(3)</enum><header>Special rules
for application of reasonable cause exception</header><text>Subsection (c) of
section 6664 is amended—</text>
<subparagraph id="HD5625EEB5B5C4291A3B70548C7DBE903"><enum>(A)</enum><text>by redesignating
paragraphs (3) and (4) as paragraphs (4) and (5), respectively;</text>
</subparagraph><subparagraph id="H0F0130AE29C44E8C922F47CD2068A1FD"><enum>(B)</enum><text>by striking
<quote>paragraph (3)</quote> in paragraph (5)(A), as so redesignated, and
inserting <quote>paragraph (4)</quote>; and</text>
</subparagraph><subparagraph id="HBBDA84028C06405B93E7115DC88CE4B2"><enum>(C)</enum><text>by inserting after
paragraph (2) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H742ABB639DBF4011BD4CFC21AF70BA3C" style="OLC">
<paragraph id="H34C19003BCA74AB2AD5108298598FD62"><enum>(3)</enum><header>Special rule for
underpayments attributable to investment management services</header>
<subparagraph id="HE9F0EBFEFA1C4F1C8A25D83EFAF66F70"><enum>(A)</enum><header>In
general</header><text>Paragraph (1) shall not apply to any portion of an
underpayment to which section 6662 applies by reason of subsection (b)(8)
unless—</text>
<clause id="H359B5C74B7C14DFA978BB5B6C18D8400"><enum>(i)</enum><text display-inline="yes-display-inline">the relevant facts affecting the tax
treatment of the item are adequately disclosed,</text>
</clause><clause id="HE27879702615458697CDA81FECE8AF7D"><enum>(ii)</enum><text>there is or was
substantial authority for such treatment, and</text>
</clause><clause id="H81E0F05DAC3F428181989396E84C144D"><enum>(iii)</enum><text>the taxpayer
reasonably believed that such treatment was more likely than not the proper
treatment.</text>
</clause></subparagraph><subparagraph id="HAEAC7FDE5E3847FDBB12BB48224B3654"><enum>(B)</enum><header>Rules relating
to reasonable belief</header><text>Rules similar to the rules of subsection
(d)(3) shall apply for purposes of subparagraph
(A)(iii).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="HD13E281860804A9E9F74BCCD33C185AE"><enum>(d)</enum><header>Income and loss
from investment services partnership interests taken into account in
determining net earnings from self-Employment</header>
<paragraph id="HFF5986885B884B7C9E43BFBCC238AC73"><enum>(1)</enum><header>Internal Revenue
Code</header><text>Section 1402(a) is amended by striking <quote>and</quote> at
the end of paragraph (16), by striking the period at the end of paragraph (17)
and inserting <quote>; and</quote>, and by inserting after paragraph (17) the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HD1183BA3EFEF458C896DBC7D14D663CA" style="OLC">
<paragraph id="HD5BEC9AC09814BC29BAC04912624E6D4"><enum>(18)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="HCC17086ED8B6479C92C7FC8CB975FC35"><enum>(2)</enum><header>Social Security
Act</header><text>Section 211(a) of the Social Security Act is amended by
striking <quote>and</quote> at the end of paragraph (15), by striking the
period at the end of paragraph (16) and inserting <quote>; and</quote>, and by
inserting after paragraph (16) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H3C5A02D17E954BBB9E1B36B691DC7C86" style="OLC">
<paragraph id="H5F35B6D7483249DA867DFB53C2D472DA"><enum>(17)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HCDBDC522A0D34C5B986FE2CDC86E10BD"><enum>(e)</enum><header>Conforming
amendments</header>
<paragraph id="H9E9C8587678F4A5588CE3AB779F5BAFE"><enum>(1)</enum><text>Subsection (d) of
section 731 is amended by inserting <quote>section 710(b)(4) (relating to
distributions of partnership property),</quote> after <quote>to the extent
otherwise provided by</quote>.</text>
</paragraph><paragraph id="H97CF836F706F40B09D03F8393818F259"><enum>(2)</enum><text>Section 741 is
amended by inserting <quote>or section 710 (relating to special rules for
partners providing investment management services to partnership)</quote>
before the period at the end.</text>
</paragraph><paragraph id="H4FDF012CE21D457B9D077B8CAB0981C9"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for part I of
subchapter K of chapter 1 is amended by adding at the end the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="H5291E43E94104CC19DC391F2A99D73E0" style="OLC">
<toc container-level="quoted-block-container" idref="H5FD339A2B53647B29C0DC5C6EBCC743D" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H35D4B3ABD0A240F599C110AB90B01171" level="section">Sec. 710. Special rules for partners providing investment
management services to
partnership.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H79B29D4BF8914EBF87364335F121B56F"><enum>(f)</enum><header>Effective
date</header>
<paragraph id="H9775E0DAB090465EBB9E5EB9503818A7"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this subsection, the
amendments made by this section shall apply to taxable years ending after
December 31, 2010.</text>
</paragraph><paragraph id="HB2DB3B6CFF2D409D8AF006219AA7D114"><enum>(2)</enum><header>Partnership
taxable years which include effective date</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H7554E990D53C45EC8C3E4C112951AE62"><enum>(3)</enum><header>Dispositions of
partnership interests</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDB125411B230435C9B9EAB078088B1B5"><enum>(4)</enum><header>Other income and
gain in connection with investment management services</header><text display-inline="yes-display-inline">Section 710(e) of such Code (as added by
this section) shall take effect on December 31, 2010.</text>
</paragraph></subsection></section></subtitle><subtitle id="HC46114B373D4484E8CB8ED7B39D0E788"><enum>B</enum><header>Corporate
provisions</header>
<section id="HE365A2D907FF4A3C913CA1A574A2BFDC" section-type="subsequent-section"><enum>411.</enum><header>Treatment of
securities of a controlled corporation exchanged for assets in certain
reorganizations</header>
<subsection id="H38354D349D124469A2674E0F3BEB93ED"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H021F6DA2EFFD459FA2DDA2A8692E9234" style="OLC">
<subsection id="H37EC9EAF0685455A94C94C31D11B5E04"><enum>(d)</enum><header>Special rules
for transactions involving section 355 distributions</header><text display-inline="yes-display-inline">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—</text>
<paragraph id="H631D8D3DABB14637B7F375F81D5BC1E9"><enum>(1)</enum><text>this section shall
be applied by substituting <quote>stock other than nonqualified preferred stock
(as defined in section 351(g)(2))</quote> for <quote>stock or
securities</quote> in subsections (a) and (b)(1), and</text>
</paragraph><paragraph id="H6F9B832FFCF04252A070051F06765AF2"><enum>(2)</enum><text>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))).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H23C47E3C593141BAB8C8E4C4B29DDF37"><enum>(b)</enum><header>Conforming
amendment</header><text>Paragraph (3) of section 361(b) is amended by striking
the last sentence.</text>
</subsection><subsection id="H959B18D152274FF59B50CECE1FF2FD19"><enum>(c)</enum><header>Effective
date</header>
<paragraph id="H8A008B7C52AE4746A8802AB2CAE0460E"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to exchanges after December 31, 2010.</text>
</paragraph><paragraph id="H1E6F26FF5A264F56A913F5C912363307"><enum>(2)</enum><header>Transition
rule</header><text display-inline="yes-display-inline">The amendments made by
this section shall not apply to any exchange pursuant to a transaction which
is—</text>
<subparagraph id="H41BD6D7D45AA4F79A93C3279A330B300"><enum>(A)</enum><text>made pursuant to a
written agreement which was binding on December 31, 2010, and at all times
thereafter;</text>
</subparagraph><subparagraph id="HBAAD1F038BE0465BB69FFE34A42655DF"><enum>(B)</enum><text>described in a
ruling request submitted to the Internal Revenue Service on or before July 29,
2010; or</text>
</subparagraph><subparagraph id="H34D2D1FA5DD94110A154221FAEF32D15"><enum>(C)</enum><text>described on or
before December 31, 2010, in a public announcement or in a filing with the
Securities and Exchange Commission.</text>
</subparagraph></paragraph></subsection></section><section display-inline="no-display-inline" id="HD5C6FEE67AA144E5AA4D0E7F924295E8" section-type="subsequent-section"><enum>412.</enum><header>Taxation of boot
received in reorganizations</header>
<subsection id="HE8DC206EF6EA40C1AE859D68B19C9261"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (2) of
section 356(a) is amended—</text>
<paragraph id="H5ADDFADFD06C49FDB755B6912A17353F"><enum>(1)</enum><text>by striking
<quote>If an exchange</quote> and
inserting</text>
<quoted-block display-inline="yes-display-inline" id="H49306367530E4D2DB5F7C4B51CF9C543" style="OLC">
<text>Except as otherwise provided by the
Secretary—</text><subparagraph id="H0BEABD64C5614F3885E4F92B1E2E05B8"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">If an
exchange</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HF62776E2AEFA4B06827FDCBF96126013"><enum>(2)</enum><text>by striking
<quote>then there shall be</quote> and all that follows through <quote>February
28, 1913</quote> and inserting <quote>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</quote>; and</text>
</paragraph><paragraph id="H0AED321FE2E84B18A9537B8942216620"><enum>(3)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HAFF56CA240694006A56122F606154AED" style="OLC">
<subparagraph id="HA352F5AF061D48A2A9A4562D5322F824"><enum>(B)</enum><header>Certain
reorganizations</header><text display-inline="yes-display-inline">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)—</text>
<clause id="H8BB7879C3F1142D1BBF1AFA7E1CD3779"><enum>(i)</enum><text>the earnings and
profits of each corporation which is a party to the reorganization shall be
taken into account, and</text>
</clause><clause id="H6D735EBA043646048482E46C22ED4A5C"><enum>(ii)</enum><text>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).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HFF71159042D04B3CB137C2C308443BC9"><enum>(b)</enum><header>Earnings and
profits</header><text>Paragraph (7) of section 312(n) is amended by adding at
the end the following: <quote>A similar rule shall apply to an exchange to
which section 356(a)(1) applies.</quote>.</text>
</subsection><subsection id="HFB7533569F8D4BA1BE42592CAD1FF918"><enum>(c)</enum><header>Conforming
amendment</header><text>Paragraph (1) of section 356(a) is amended by striking
<quote>then the gain</quote> and inserting <quote>then (except as provided in
paragraph (2)) the gain</quote>.</text>
</subsection><subsection id="HCB63B93B1A6047FE9B97305090EEE082"><enum>(d)</enum><header>Effective
date</header>
<paragraph id="H9851C7C08FD445609C24AB6854B39958"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to exchanges after December 31, 2010.</text>
</paragraph><paragraph id="H632C4A352CE14C2892FBDE6175EB81BE"><enum>(2)</enum><header>Transition
rules</header>
<subparagraph id="id494894AC923C4C778E29103010DA0E2D"><enum>(A)</enum><header>In
general</header><text>The amendments made by this section shall not apply to
any exchange between unrelated persons pursuant to a transaction which
is—</text>
<clause id="H71E8D4058F434BDEBED01595A506F29A"><enum>(i)</enum><text>made
pursuant to a written agreement which was binding on December 31, 2010, and at
all times thereafter;</text>
</clause><clause id="H5B0FC8ADC5464446911FAD166487E475"><enum>(ii)</enum><text>described in a
ruling request submitted to the Internal Revenue Service on or before July 29,
2010; or</text>
</clause><clause id="H66FD24BC5C13484F9F0141750074B076"><enum>(iii)</enum><text>described in a
public announcement or filing with the Securities and Exchange Commission on or
before December 31, 2010.</text>
</clause></subparagraph><subparagraph id="idE9F33E4EF703417A8265537593811994"><enum>(B)</enum><header>Special
rule</header><text>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.</text>
</subparagraph><subparagraph id="idA821162B13894348A08796FE2489FF63"><enum>(C)</enum><header>Applicable
exchanges</header><text>An exchange is described in this subparagraph if
subparagraph (A) does not apply to such exchange and it—</text>
<clause id="id54D26FDF18F742ED9B3596E303A3A02C"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="idB0596244B2BC477296DFAFA64CA16F98"><enum>(I)</enum><text>is in connection with
an acquisition between unrelated persons which occurred before July 29, 2010;
and</text>
</subclause><subclause id="id0B19D84664674E3898E1D52F10D6238F" indent="up1"><enum>(II)</enum><text>was evidenced by written documentation
in existence before such acquisition occurred; or</text>
</subclause></clause><clause id="idE9F5A0A5CBBD4F04A7AD6029E9B9F1FA"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id36691CF32629426EBDE71E139363CF61"><enum>(I)</enum><text>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</text>
</subclause><subclause id="id8820E350C07E4FC6A793318580DC593A" indent="up1"><enum>(II)</enum><text>was evidenced by written documentation
in existence before July 29, 2010.</text>
</subclause></clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H7CE04C5F3D234898A9E5AB0CB55B7F40"><enum>(3)</enum><header>Related
persons</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection></section></subtitle><subtitle id="HEF69CE80A5E64336BDFEA2BCC287A0A1"><enum>C</enum><header>Other
provisions</header>
<section id="H70B202AFBB704752BE36A81413DC736D"><enum>421.</enum><header>Modifications
with respect to Oil Spill Liability Trust Fund</header>
<subsection id="H4BE03962413F46CAB74D07AD275432D4"><enum>(a)</enum><header>Extension of
application of Oil Spill Liability Trust Fund financing
rate</header><text>Paragraph (2) of section 4611(f) is amended by striking
<quote>December 31, 2017</quote> and inserting <quote>December 31,
2020</quote>.</text>
</subsection><subsection id="H2B481823F02D4437B9AE7FC23A7C8B2A"><enum>(b)</enum><header>Increase in Oil
Spill Liability Trust Fund financing rate</header><text display-inline="yes-display-inline">Subparagraph (B) of section 4611(c)(2) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H64F92F81C15F4AC2974C826A5414D946" style="OLC">
<subparagraph id="HB4CF12EA149A40EF8C3AD72A91AFD94A"><enum>(B)</enum><text display-inline="yes-display-inline">the Oil Spill Liability Trust Fund
financing rate is 78 cents a
barrel.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC71E49D5E1C14946ACA4F3731C0A78EC"><enum>(c)</enum><header>Increase in per
incident limitations on expenditures</header><text>Subparagraph (A) of section
9509(c)(2) is amended—</text>
<paragraph id="HFB16B7C50A8B467884A9DF0EC3A2B25B"><enum>(1)</enum><text>by striking
<quote>$1,000,000,000</quote> in clause (i) and inserting
<quote>$5,000,000,000</quote>;</text>
</paragraph><paragraph id="HF3327CB238084790A2B88859992B0ED5"><enum>(2)</enum><text>by striking
<quote>$500,000,000</quote> in clause (ii) and inserting
<quote>$2,500,000,000</quote>; and</text>
</paragraph><paragraph id="H5A0660B2D5F94761842C483FA35BD43D"><enum>(3)</enum><text>by striking
<quote><header-in-text level="subparagraph" style="OLC"><enum-in-header>$1,000,000,000</enum-in-header> per incident,
etc</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="subparagraph" style="OLC">Per incident
limitations</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="HD629784202FC4FF4BF2EB59AF68696D9"><enum>(d)</enum><header>Effective
date</header>
<paragraph id="HB54E63F8F687471F897CE026426B3ED8"><enum>(1)</enum><header>Extension of
financing rate</header><text>Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date of the enactment
of this Act.</text>
</paragraph><paragraph id="H1B34B282B8944C33890A0A6E977F560B"><enum>(2)</enum><header>Increase in
financing rate</header><text>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.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID11F71E3088104E2AA5D22888C9AF4EE8"><enum>422.</enum><header display-inline="yes-display-inline">Denial of deduction for punitive
damages</header>
<subsection commented="no" display-inline="no-display-inline" id="ID9B9EF940C11F4C4383D42028124B70C1"><enum>(a)</enum><header display-inline="yes-display-inline">Disallowance of deduction for punitive
damages</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDF35C422FDE764359B117168BDA5D85FD"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 162(g) (relating to treble damage
payments under the antitrust laws) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID80BD0E4D648A48638962FDA61431F2D8"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDBB573D925B6C489A88A3A22DDC8C1834"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>If</quote> and
inserting:</text>
<quoted-block display-inline="no-display-inline" id="ID2A9C35755E5F402298CBCF5AEA87E11B" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID698071F62B3E43639589864502214700"><enum>(1)</enum><header display-inline="yes-display-inline">Treble
damages</header><text display-inline="yes-display-inline">If</text>
</paragraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID8E6B4C3AD9554ABA87E245540634D891"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="ID86B8AEAFAB94452BBBA335BD4878D498" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID24C0D4C7E1DB448C8BA753AB063B3A50"><enum>(2)</enum><header display-inline="yes-display-inline">Punitive damages</header><text display-inline="yes-display-inline">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).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDF30F6685A6734FF4B3E3A9E369DB117B"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">The heading for section 162(g) is amended
by inserting <quote><header-in-text level="subsection" style="OLC">Or Punitive
Damages</header-in-text></quote> after <quote><header-in-text level="subsection" style="OLC">Laws</header-in-text></quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDB29EFEE7B9294DC79899808FB8A19D2A"><enum>(b)</enum><header display-inline="yes-display-inline">Inclusion in Income of Punitive Damages
Paid by Insurer or Otherwise</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID778D6BE9AF4A40AEA019E46FF0D1C8CD"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="IDC4CC598FC9A04FB8B092E22A2999D650" style="OLC">
<section commented="no" display-inline="no-display-inline" id="ID725922F1DEDC48AC9CBC0AC479A68B61" section-type="subsequent-section"><enum>91.</enum><header display-inline="yes-display-inline">Punitive damages compensated by insurance
or otherwise</header><text display-inline="no-display-inline">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.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID182E1550118A4D58B685F23B62A778B5"><enum>(2)</enum><header display-inline="yes-display-inline">Reporting requirements</header><text display-inline="yes-display-inline">Section 6041 (relating to information at
source) is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="ID1ACD698B2CB14733844C4BF40FD8DE02" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="IDB47920C64E564F2F8521F2ED9F7CC015"><enum>(k)</enum><header display-inline="yes-display-inline">Section To Apply to Punitive Damages
Compensation</header><text display-inline="yes-display-inline">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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1EA5A6A2B07945A19AD97CD311283EC1"><enum>(3)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">The table of sections for part II of
subchapter B of chapter 1 is amended by adding at the end the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="ID084609D3B90E4CB4A5D9C8275499C1EC" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">Sec. 91. Punitive damages
compensated by insurance or
otherwise.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID983B450FA4374808A2653000591CFE87"><enum>(c)</enum><header display-inline="yes-display-inline">Effective
Date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to damages paid or incurred after December 31,
2011.</text>
</subsection></section></subtitle><enum>V</enum><header>Health and other
assistance</header>
<section commented="no" id="H85D18418EE3B459D9354EE02AC47C9F8"><enum>501.</enum><header>Extension of
section 508 reclassifications</header>
<subsection id="H961BE3CB36A24DBE925C37AE1D246A3F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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 <quote>September 30,
2010</quote> and inserting <quote>September 30, 2011</quote>.</text>
</subsection><subsection id="H23DBE8BCAF8949EF92E4C447306B2AC1"><enum>(b)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">Section 117(a)(3)
of the Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public Law
110–173)), is amended by inserting <quote>in fiscal years 2008 and 2009</quote>
after “For purposes of implementation of this subsection”.</text>
</subsection></section><section commented="no" id="H171FC69E33FA4D9083562A9B5FDB5C86"><enum>502.</enum><header>Repeal of delay
of RUG-IV</header><text display-inline="no-display-inline">Effective as if
included in the enactment of Public Law 111–148, section 10325 of such Act is
repealed.</text>
</section><section commented="no" id="HF2A0E33DCB254E1AA6630EB01D3EECC4" section-type="subsequent-section"><enum>503.</enum><header>Limitation on
reasonable costs payments for certain clinical diagnostic laboratory tests
furnished to hospital patients in certain rural areas</header><text display-inline="no-display-inline">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.</text>
</section><section display-inline="no-display-inline" id="HC4F96D38942041468116B54218107240" section-type="subsequent-section"><enum>504.</enum><header>Funding for claims
reprocessing</header><text display-inline="no-display-inline">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.</text>
</section><section id="H9DBF130357A6478086F27DAF693192CD" section-type="subsequent-section"><enum>505.</enum><header>Medicaid and CHIP
technical corrections</header>
<subsection id="H67D02A1C77DB498088071F02EF9CE772"><enum>(a)</enum><header>Repeal of
exclusion of certain individuals and entities from Medicaid</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H1F4D36348464441D84B48B9F0A3428EC"><enum>(b)</enum><header>Income level for
certain children under Medicaid</header><text>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 <quote>is amended</quote> and inserting the
following: <quote>by inserting after <quote>100 percent</quote> the following:
<quote>(or, beginning January 1, 2014, 133 percent)</quote>.</quote>.</text>
</subsection><subsection id="H1E8A0C66431548E799E81CA2D8AC3DDF"><enum>(c)</enum><header>Calculation and
publication of payment error rate measurement for certain years</header><text display-inline="yes-display-inline">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.’’.</text>
</subsection><subsection id="H75C292F7D49A4808BDF46DE680787B1E"><enum>(d)</enum><header>Corrections to
exceptions to exclusion of children of certain employees</header><text>Section
2110(b)(6) of the Social Security Act (42 U.S.C. 1397jj(b)(6)) is
amended—</text>
<paragraph id="H43DEC82E09074BEE9187143C443FC26D"><enum>(1)</enum><text>in subparagraph
(B)—</text>
<subparagraph id="H6D31780D672A461D8C9547F30370319A"><enum>(A)</enum><text>by striking
<quote><header-in-text level="subparagraph" style="OLC">per
person</header-in-text></quote> in the heading; and</text>
</subparagraph><subparagraph id="H8823CDC882624BB78C16EF4546D09028"><enum>(B)</enum><text>by striking
<quote>each employee</quote> and inserting <quote>employees</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" id="HC2975F1EDBC5400D996E3EF5A87D8CB7"><enum>(2)</enum><text>in subparagraph
(C), by striking <quote>, on a case-by-case basis,</quote>.</text>
</paragraph></subsection><subsection id="HBD832622979A41B2847652F1A61C2ED9"><enum>(e)</enum><header>Electronic
health records</header><text>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—</text>
<paragraph id="H604F9D5ADED7479EBBC8C67146F5A432"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (3)(E), by striking
<quote>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)</quote> and inserting <quote>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)</quote>; and</text>
</paragraph><paragraph id="H11F5756B3BA04FDE8065C3A1869C73BF"><enum>(2)</enum><text>in paragraph
(6)(B), by inserting before the period the following: <quote>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</quote>.</text>
</paragraph></subsection><subsection id="id88AB98AD70734A8A86D6D822703874F8"><enum>(f)</enum><header>Native American
technical correction</header><text display-inline="yes-display-inline">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
<quote>of this Act</quote> the following: <quote>but applied without regard to
subparagraph (F) of such section</quote>.</text>
</subsection><subsection id="H65D5646E6B714B37A58D22E197FEF4C1"><enum>(g)</enum><header>Corrections of
designations</header>
<paragraph display-inline="no-display-inline" id="H2412F809B2FF463686478F1174E33A19"><enum>(1)</enum><text>Section 1902 of
the Social Security Act (42 U.S.C. 1396a) is amended—</text>
<subparagraph id="H257A3106F05149D4A47A4B8BBEE44FDF"><enum>(A)</enum><text>in subsection
(a)(10), in the matter following subparagraph (G), by striking
<quote>and</quote> before <quote>(XVI) the medical</quote> and by striking
<quote>(XVI) if</quote> and inserting <quote>(XVII) if</quote>; and</text>
</subparagraph><subparagraph id="H9E5EB581498C4257A0DBE8BE37DEDCC9"><enum>(B)</enum><text>in subsection
(ii)(2), by striking <quote>(XV)</quote> and inserting
<quote>(XVI)</quote>.</text>
</subparagraph></paragraph><paragraph id="H0C6A83EF89FD4B86A8FF3ABB861FFA89"><enum>(2)</enum><text display-inline="yes-display-inline">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).</text>
</paragraph></subsection></section><section id="idFC7DA24A25C7422E9BAD2D3C2392BA47"><enum>506.</enum><header>Addition of
inpatient drug discount program to 340B drug discount program</header>
<subsection id="id5A43E8F845C9477A8CAAB2BE732E438D"><enum>(a)</enum><header>Addition of
inpatient drug discount</header><text>Title III of the Public Health Service
Act is amended by inserting after section 340B (42 U.S.C. 256b) the
following:</text>
<quoted-block display-inline="no-display-inline" id="idA51C6BC576184C4D82EBE14DB914E0AA" style="OLC">
<section id="id47F9203B7B8C476EBE9BF8ECECC259FD"><enum>340B–1.</enum><header>Discount
inpatient drugs for individuals without prescription drug coverage</header>
<subsection id="id04E64197EC04404A9D511630B4F1FBB0"><enum>(a)</enum><header>Requirements
for agreements with the Secretary</header>
<paragraph id="idD4C849618E5446AFB350D8A8255EFDFA"><enum>(1)</enum><header>In
general</header>
<subparagraph id="id1D297EE2E3254D879FD93D6FDD97A3D7"><enum>(A)</enum><header>Agreement</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="id7281B83E664C4A05BE6103C0ADB85208"><enum>(B)</enum><header>Ceiling
price</header><text>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
<quote>ceiling price</quote>), 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.</text>
</subparagraph><subparagraph id="id95EA618B916B4CFEB0DCD672FF768A9B"><enum>(C)</enum><header>Allocation
method</header><text>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.</text>
</subparagraph></paragraph><paragraph id="id98DAB33264604060B5AC91E59F93AA40"><enum>(2)</enum><header>Rebate
percentage defined</header>
<subparagraph id="id0B9BC8197B974B578487B33EC24D551B"><enum>(A)</enum><header>In
general</header><text>For a covered inpatient drug purchased in a calendar
quarter, the <quote>rebate percentage</quote> is the amount (expressed as a
percentage) equal to—</text>
<clause id="id92582B3E6680486EBA1075CC9B9AE945"><enum>(i)</enum><text display-inline="yes-display-inline">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</text>
</clause><clause id="idE1073BE6435B4F2A9909D28EEBCF29F0"><enum>(ii)</enum><text>the average
manufacturer price for such a unit of the drug during such quarter.</text>
</clause></subparagraph><subparagraph id="id0CC476065CA04E85A2E3666F51C56EDB"><enum>(B)</enum><header>Over the
counter drugs</header>
<clause id="id3395149074E84E9DA4572FBC2D040A14"><enum>(i)</enum><header>In
general</header><text>For purposes of subparagraph (A), in the case of over the
counter drugs, the <quote>rebate percentage</quote> 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.</text>
</clause><clause id="id2AEAD0DCF34B429398FE63287B6A7EC2"><enum>(ii)</enum><header>Definition</header><text>The
term <quote>over the counter drug</quote> 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).</text>
</clause></subparagraph></paragraph><paragraph id="idDB1A862497384BE2A01A5510EA18355B"><enum>(3)</enum><header>Drugs provided
under State medicaid plans</header><text>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.</text>
</paragraph><paragraph id="idE730C1034E174E218AFDBFAEB633018B"><enum>(4)</enum><header>Requirements
for covered entities</header>
<subparagraph id="id68452C22E67F4EA5974976E5A776325C"><enum>(A)</enum><header>Prohibiting
duplicate discounts or rebates</header>
<clause id="id85BA689F7111415AAAAEB08F51EB5AF4"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="id054D2D0B788E46EDAB2FB3A2CC096096"><enum>(ii)</enum><header>Establishment
of mechanism</header><text>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.</text>
</clause><clause id="id54F64B72D9AB4E739763F21511A40164"><enum>(iii)</enum><header>Prohibiting
disclosure to group purchasing organizations</header><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph><subparagraph id="id993EBEBB47F045C4B97FAD7FB6AD8726"><enum>(B)</enum><header>Prohibiting
resale, dispensing, or administration of drugs except to certain
patients</header><text>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—</text>
<clause id="id93EDE73920DF4312B714045ECB9F856C"><enum>(i)</enum><text>such person is a
patient who is an inpatient of the entity; and</text>
</clause><clause commented="no" id="id60FEA08274474534B84090901165D211"><enum>(ii)</enum><text display-inline="yes-display-inline">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.</text>
</clause><continuation-text continuation-text-level="subparagraph">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.</continuation-text></subparagraph><subparagraph id="id015B1E870E534084B9ED496B9BC6B390"><enum>(C)</enum><header>Auditing</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="idD951F69D7D01455F9F2852AD79C0E57D"><enum>(D)</enum><header>Additional
sanction for noncompliance</header><text>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.</text>
</subparagraph><subparagraph id="id52722698700443D3A59608DD95E516B1"><enum>(E)</enum><header>Maintenance of
records</header>
<clause id="id9B9BBE26BA4540F8874D5D731103214D"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</clause><clause id="idEF566DD10C6D4034AFFAC4DA623931AF"><enum>(ii)</enum><header>Certification
of no third-party payer</header><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="id389001C205804A6CB6BF5C41050D5159"><enum>(5)</enum><header>Treatment of
distinct units of hospitals</header><text>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.</text>
</paragraph><paragraph id="idAD3F943729444152A79644C3459FDE85"><enum>(6)</enum><header>Notice to
manufacturers</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="id18D3F3F0047046BDA31D90DEDED33BBA"><enum>(7)</enum><header>No prohibition
on larger discount</header><text>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).</text>
</paragraph></subsection><subsection id="id0E8001B641C34F09A964DDE0C1FB2A79"><enum>(b)</enum><header>Covered entity
defined</header><text>In this section, the term <quote>covered entity</quote>
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:</text>
<paragraph id="id19293AACCE674862AC46A019E8F940F7"><enum>(1)</enum><text>A subsection (d)
hospital (as defined in section 1886(d)(1)(B) of the Social Security Act)
that—</text>
<subparagraph id="id01E7722EBA4D42A18F64AA36C4174547"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="id4693FADF48C14863BE6D2B4B68331838"><enum>(B)</enum><text>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).</text>
</subparagraph></paragraph><paragraph commented="no" id="id64F868D2DBF2428E98AAEE5F33D29960"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" id="id07954E0409BD4C03B85079B224EB542A"><enum>(3)</enum><text>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.</text>
</paragraph><paragraph id="idEF17DF39A5C244F5AE466B0D33AB906A"><enum>(4)</enum><text>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).</text>
</paragraph><paragraph id="idF2A4D0E53B474E05A8AEAD1524A7AC87"><enum>(5)</enum><text>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.</text>
</paragraph></subsection><subsection id="idFF912BA133A04FB89B2D81AAF1D87403"><enum>(c)</enum><header>Other
definitions</header><text>In this section:</text>
<paragraph id="id11535BC93FF74B43BE9E66C3788753ED"><enum>(1)</enum><header>Average
manufacturer price</header>
<subparagraph id="id4D162DA57AE94B15A0270042849EA1A7"><enum>(A)</enum><header>In
general</header><text>The term <quote>average manufacturer
price</quote>—</text>
<clause id="id8F80DCB5533E42DD898A3F9D72EDAAAE"><enum>(i)</enum><text>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</text>
</clause><clause id="idB960283B03EE48CDA65586EF70AC8EB6"><enum>(ii)</enum><text>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).</text>
</clause></subparagraph><subparagraph id="idA2A0C6329E004C4EA17DCB24E2A0B136"><enum>(B)</enum><header>Rulemaking</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph id="idF9BADFCBF3DE4AC0B1E699D217F8133C"><enum>(2)</enum><header>Covered
inpatient drug</header>
<subparagraph id="id5C7B105B65074A0FA69DAC7629E85EB8"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<quote>covered inpatient drug</quote> means a drug—</text>
<clause id="ID27ebe38905974e3f8bef497bf1b77245"><enum>(i)</enum><text>that is described
in section 1927(k)(2) of the Social Security Act;</text>
</clause><clause id="ID17aa96085f374850b1728c8f6b544740"><enum>(ii)</enum><text>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</text>
</clause><clause id="IDd04990a1781241098db99bdc26a89faa"><enum>(iii)</enum><text>is not
purchased by the covered entity through or under contract with a group
purchasing organization.</text>
</clause></subparagraph><subparagraph id="idB656F3B7D8634C41AA6DF5719D6F0A2F"><enum>(B)</enum><header>Rule of
construction</header><text>Nothing in this paragraph shall be construed to
affect the program under section 340B.</text>
</subparagraph></paragraph><paragraph commented="no" id="idC249D46D1923457B8FF986E92D0F9D8C"><enum>(3)</enum><header>Health plan
coverage</header><text display-inline="yes-display-inline">The term
<quote>health plan coverage</quote> means—</text>
<subparagraph commented="no" id="id69CC1DA2BFD64DC4BDC47990AC9B9DD5"><enum>(A)</enum><text display-inline="yes-display-inline">health insurance coverage (as defined in
section 2791, and including coverage under a State health benefits risk
pool);</text>
</subparagraph><subparagraph id="idFCF1DE75B51C40FCAA258577F7292546"><enum>(B)</enum><text>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);</text>
</subparagraph><subparagraph id="idB211E6F50CA748799B01842661111D7E"><enum>(C)</enum><text>coverage under a
Federal health care program (as defined by section 1128B(f) of the Social
Security Act); or</text>
</subparagraph><subparagraph id="idE34564A5971E408A839B7F2C4B93D735"><enum>(D)</enum><text>such other health
benefits coverage as the Secretary recognizes for purposes of this
section.</text>
</subparagraph></paragraph><paragraph id="idB84129CB8602484DA678615A38C4359A"><enum>(4)</enum><header>Manufacturer</header><text>The
term <quote>manufacturer</quote> has the meaning given such term in section
1927(k) of the Social Security Act.</text>
</paragraph></subsection><subsection id="id38AC596524FF4B66A34F488703229363"><enum>(d)</enum><header>Program
integrity</header>
<paragraph id="id186AF1E40CB44AD0AB272CC0BD24445E"><enum>(1)</enum><header>Manufacturer
compliance</header>
<subparagraph id="idD3558BDEE2AD448DA8827D67DCA4E751"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="id0EF6AB810A1346AC883261248ED66936"><enum>(B)</enum><header>Improvements</header><text>The
improvements described in subparagraph (A) shall include the following:</text>
<clause id="idD2BE7FA7F71A437283E0535750B7BFA0"><enum>(i)</enum><text>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:</text>
<subclause id="id752ACB1E56164B7BAF1F15FA8A3E3D0B"><enum>(I)</enum><text>Developing and
publishing through an appropriate policy or regulatory issuance, precisely
defined standards and methodology for the calculation of ceiling prices under
such subsection.</text>
</subclause><subclause id="idCDE376F066D1488A95C14CB5B30DE8F8"><enum>(II)</enum><text>Comparing
regularly the ceiling prices calculated by the Secretary with the quarterly
pricing data that is reported by manufacturers to the Secretary.</text>
</subclause><subclause id="id303FEB4948C2497E814479FDBECB7ADD"><enum>(III)</enum><text>Conducting
periodic monitoring of sales transactions by covered entities.</text>
</subclause><subclause commented="no" id="idE0368333047D40449693DE39553C8ACE"><enum>(IV)</enum><text>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).</text>
</subclause></clause><clause id="id6D33197873B14AD9AE6E9F0A29350298"><enum>(ii)</enum><text>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:</text>
<subclause id="idA1B98AC53309476897EFC02FBDE5C073"><enum>(I)</enum><text>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.</text>
</subclause><subclause id="idBA23BDB43AEB44F2936829B3172DEACE"><enum>(II)</enum><text>Oversight by the
Secretary to ensure that the refunds are issued accurately and within a
reasonable period of time.</text>
</subclause></clause><clause id="idD2EDAB9622F743ADBDEF199AE9D36D73"><enum>(iii)</enum><text>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.</text>
</clause><clause id="id3FAD540C6582439982108CB22935B15B"><enum>(iv)</enum><text>The development
of a mechanism by which—</text>
<subclause id="idDFBDEF5FD1F14A5ABD7FD3C831ED4AFD"><enum>(I)</enum><text>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</text>
</subclause><subclause id="id7839791CFB0741EF80DD954A3BEF207E"><enum>(II)</enum><text>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.</text>
</subclause></clause><clause id="id4A758DEF30614F41A4AD0A663EDCA1EA"><enum>(v)</enum><text>Selective
auditing of manufacturers and wholesalers to ensure the integrity of the drug
discount program under this section.</text>
</clause><clause commented="no" id="idBC9CF67F043C4AE69C715B0B41C8642D"><enum>(vi)</enum><text>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.</text>
</clause><clause commented="no" id="id0E99C3D8091F4FCE9FBCB6AD534765B6"><enum>(vii)</enum><text>The imposition
of sanctions in the form of civil monetary penalties, which—</text>
<subclause commented="no" id="id779A0E15B4E040ABB36642AF77858CCA"><enum>(I)</enum><text>shall be assessed
according to standards and procedures established in regulations to be
promulgated by the Secretary not later than January 1, 2011;</text>
</subclause><subclause commented="no" id="id3D520EBF2E964CDC951840F1FC3FF616"><enum>(II)</enum><text display-inline="yes-display-inline">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</text>
</subclause><subclause commented="no" id="idB52B869A0E7740B7B5762A25A0C28EE5"><enum>(III)</enum><text display-inline="yes-display-inline">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)).</text>
</subclause></clause></subparagraph></paragraph><paragraph id="idDF5F3067126A46818DE87F0980F80ECA"><enum>(2)</enum><header>Covered entity
compliance</header>
<subparagraph id="id794677675186488E9C9AB24E34C3D5E3"><enum>(A)</enum><header>In
general</header><text>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).</text>
</subparagraph><subparagraph id="idBFAA83DD94444352BAAF384BF3E1B8D3"><enum>(B)</enum><header>Improvements</header><text>The
improvements described in subparagraph (A) shall include the following:</text>
<clause id="idC7153E9A8E134BFB904C85984CAAAE65"><enum>(i)</enum><text>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.</text>
</clause><clause id="id4D5DB4F86FB14015A95975CDD74BF92D"><enum>(ii)</enum><text>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).</text>
</clause><clause id="id33C1A98294A9418FA6613538616A6F67"><enum>(iii)</enum><text>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).</text>
</clause><clause id="idC9919F25C3DA494E9C7096AFC9E17948"><enum>(iv)</enum><text>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.</text>
</clause><clause id="idC13B0EA11D9F4D5D8D6E24331A2FF7EF"><enum>(v)</enum><text>The imposition of
sanctions in the form of civil monetary penalties, which—</text>
<subclause id="id034438BC99C54B1D9463F370EADC2851"><enum>(I)</enum><text>shall be assessed
according to standards and procedures established in regulations promulgated by
the Secretary; and</text>
</subclause><subclause id="id42427FCA9C3F489CB6801A258CE42C66"><enum>(II)</enum><text>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.</text>
</subclause></clause><clause id="id3C06825DB9794402866965AB14F9309A"><enum>(vi)</enum><text>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—</text>
<subclause id="idF0C0E25DFA744C7BB93E71E627993EBA"><enum>(I)</enum><text>the violation by
a covered entity of a requirement of this section was repeated and knowing;
and</text>
</subclause><subclause id="id9F501F6F35BF499BA142525357870710"><enum>(II)</enum><text>imposition of a
monetary penalty would be insufficient to reasonably ensure compliance with the
requirements of this section.</text>
</subclause></clause><clause id="idF8F9BF89D03A4362AAAB9F5C318D4D49"><enum>(vii)</enum><text>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.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="id9D832E071E2E4467BB15CB4766575C50"><enum>(3)</enum><header>Administrative
dispute resolution process</header><text>From amounts appropriated under
subsection (f), the Secretary may establish and implement an administrative
process for the resolution of the following:</text>
<subparagraph commented="no" id="idC2CFB414AC19416984AA1E90B078F2E3"><enum>(A)</enum><text>Claims by covered
entities that manufacturers have violated the terms of their agreement with the
Secretary under subsection (a)(1).</text>
</subparagraph><subparagraph commented="no" id="idFEC50DFA2E1A49B0851AC641802CD688"><enum>(B)</enum><text>Claims by
manufacturers that covered entities have violated subsection (a)(4)(A) or
(a)(4)(B).</text>
</subparagraph></paragraph></subsection><subsection id="idDB1A46767C054D5F91BF7BED13FDE6D7"><enum>(e)</enum><header>Audit and
sanctions</header>
<paragraph id="id7753417F5B6C4437B890EA7293C1DD70"><enum>(1)</enum><header>Audit</header><text display-inline="yes-display-inline">From amounts appropriated under subsection
(f), the Inspector General of the Department of Health and Human Services
(referred to in this subsection as the <quote>Inspector General</quote>) 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.</text>
</paragraph><paragraph id="idCE7E3B4796174BD2A70755C312115A3F"><enum>(2)</enum><header>Report</header><text>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—</text>
<subparagraph id="idA79EBD559FFD48BFA9FA33757F4592C4"><enum>(A)</enum><text>the
appropriateness of covered entity eligibility determinations and, as
applicable, certifications;</text>
</subparagraph><subparagraph id="idCDCB1B733B1542A1B693E61223854FD3"><enum>(B)</enum><text>the effectiveness
of antidiversion prohibitions; and</text>
</subparagraph><subparagraph id="id89F33EB8ED964598A0176C248632A5F6"><enum>(C)</enum><text>the effectiveness
of restrictions on inpatient dispensing and administration.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="id718B222239044E7CA4C86AB9F9AD41DD"><enum>(f)</enum><header>Authorization
of appropriations</header><text>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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idBE4E7E1F17F24E899973944ACD8D8F88"><enum>(b)</enum><header>Rulemaking</header><text>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)).</text>
</subsection><subsection id="id5911011158684532B03BB83EB4EA608A"><enum>(c)</enum><header>Conforming
amendment to section 340B</header><text>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: <quote>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.</quote>.</text>
</subsection><subsection id="idD0169E2F73E64BBEA025ED0C337DF20B"><enum>(d)</enum><header>Conforming
amendments to Medicaid</header><text>Section 1927 of the Social Security Act
(42 U.S.C. 1396r–8) is amended—</text>
<paragraph id="id446EEE55F12E494298528028BDB4A324"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="idF333C00520924F5DBB21D4DF209DECD6"><enum>(A)</enum><text>in paragraph (1),
in the first sentence, by striking <quote>and paragraph (6)</quote> and
inserting <quote>, paragraph (6), and paragraph (8)</quote>; and</text>
</subparagraph><subparagraph id="id6D6A0969A59E4E349511831C7E91818B"><enum>(B)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id8D66973BD141447DB88D381DDFA3A5E7" style="OLC">
<paragraph id="idE21B8387DB0944499CC0A6F1D0F9CF64"><enum>(8)</enum><header>Limitation on
prices of drugs purchased by 340B–1-covered entities</header>
<subparagraph id="id7108315540C742EC86F52DA330204B09"><enum>(A)</enum><header>Agreement with
secretary</header><text>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.</text>
</subparagraph><subparagraph id="id55497FFFDD1F4C5B96D7877195EC5B87"><enum>(B)</enum><header>340B–1-covered
entity defined</header><text>In this subsection, the term <term>340B–1-covered
entity</term> means an entity described in section 340B–1(b) of the Public
Health Service Act.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id76C48452CA5C4CBF87A0195248068CFD"><enum>(2)</enum><text>in subsection
(c)(1)(C)(i)(I)—</text>
<subparagraph id="id89C88ED13DD347628DB6D4FB12859692"><enum>(A)</enum><text>by striking
<quote>or</quote> before <quote>a covered entity</quote>; and</text>
</subparagraph><subparagraph id="idC83845DB806543F1B9C00D8BEAC0C968"><enum>(B)</enum><text>by inserting
before the semicolon the following: <quote>, or a covered entity for a covered
inpatient drug (as such terms are defined in section 340B–1of the Public Health
Service Act)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="id039A0543F8204269B80BB99A447A08CD"><enum>(e)</enum><header>Clarification
of effective date</header><text>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.</text>
</subsection></section><section id="HEE3E62ED4442476FA8A47D9BDFE6BF06"><enum>507.</enum><header>Continued
inclusion of orphan drugs in definition of covered outpatient drugs with
respect to children’s hospitals under the 340B drug discount program</header>
<subsection id="H30500F53CB9E4AAEBB43B3C2C66E46B5"><enum>(a)</enum><header>Definition of
covered outpatient drug</header>
<paragraph id="H771627DF319B4B7C81644C53536CA655"><enum>(1)</enum><header>Amendment</header><text>Subsection
(e) of section 340B of the Public Health Service Act (42 U.S.C. 256b) is
amended by striking <quote>covered entities described in subparagraph
(M)</quote>and inserting <quote>covered entities described in subparagraph (M)
(other than a children’s hospital described in subparagraph
(M))</quote>.</text>
</paragraph><paragraph id="H829F197901944AB2A2FD636FFEF9248B"><enum>(2)</enum><header>Effective
date</header><text>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).</text>
</paragraph></subsection><subsection id="H4946ACE7E11740FAAACAFDF330E8FD48"><enum>(b)</enum><header>Technical
amendment</header><text>Subparagraph (B) of section 1927(a)(5) of the Social
Security Act (42 U.S.C. 1396r–8(a)(5)) is amended by striking <quote>and a
children’s hospital</quote> and all that follows through the end of the
subparagraph and inserting a period.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H44A1F2D97C514C31BA213FDFFE3292EA"><enum>508.</enum><header>Conforming
amendment related to waiver of coinsurance for preventive
services</header><text display-inline="no-display-inline">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
<quote>section 1861(s)(10)(A)</quote> and inserting <quote>section
1861(ddd)(3)</quote>.</text>
</section><section display-inline="no-display-inline" id="H946C93BF37D64D24B7AD812C64E5B781"><enum>509.</enum><header>Clarification
of effective date of part B special enrollment period for disabled TRICARE
beneficiaries</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H1AA28D0B9C85483496ECC3A041356EA6" style="OLC">
<paragraph id="HF205507D00DF451D89ACBFBC6D79B0DD"><enum>(2)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
paragraph (1) shall apply to elections made after the date of the enactment of
this
Act.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section display-inline="no-display-inline" id="HDE7DFCA306D9420C940C12400AA21E67" section-type="subsequent-section"><enum>510.</enum><header>Adjustment to
Medicare payment localities</header>
<subsection id="H70540B48326F476DBEC324569F6A51DE"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block id="HD7354428A40248018903200D4390BB6C">
<paragraph id="H76CF4F1DC3EF463489E43BCC0C48B564"><enum>(6)</enum><header>Transition to
use of MSAs as fee schedule areas in California</header>
<subparagraph id="H48E055D2379146AAB3804F2EB8A19C8A"><enum>(A)</enum><header>In
general</header>
<clause id="HB50BD93322DA4327BF72E56C73FE0997"><enum>(i)</enum><header>Revision</header><text>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:</text>
<subclause id="H7BBC5C3D27374500B7700100C161BD58"><enum>(I)</enum><text display-inline="yes-display-inline">The Secretary shall configure the physician
fee schedule areas using the Metropolitan Statistical Areas (each in this
paragraph referred to as an <quote>MSA</quote>), 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.</text>
</subclause><subclause id="H309871FAB6C9412AA7FFFA19C0BD3016"><enum>(II)</enum><text display-inline="yes-display-inline">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.</text>
</subclause><subclause id="H84B5AAD22C88427F985BA67827C2891B"><enum>(III)</enum><text>The Secretary
shall list all MSAs within the State by Geographic Adjustment Factor described
in paragraph (2) (in this paragraph referred to as a <quote>GAF</quote>) in
descending order.</text>
</subclause><subclause id="H84D615EDF007425EAC8B5DD1E539B487"><enum>(IV)</enum><text>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.</text>
</subclause><subclause id="HDDFB3AF029ED4CD28DE74F1E917421A6"><enum>(V)</enum><text display-inline="yes-display-inline">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.</text>
</subclause><subclause id="H1961A0588DC3427980756D4A95998983"><enum>(VI)</enum><text>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.</text>
</subclause><subclause id="HF1328EE4BB1B46A388098704F460DD46"><enum>(VII)</enum><text>For purposes of
the iterative process described in this clause, if two MSAs have identical
GAFs, they shall be combined.</text>
</subclause></clause><clause id="H35DB60E1E7674FA683189073B404C158"><enum>(ii)</enum><header>Transition</header><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph><subparagraph id="HC426C19BA8F745CEB8FD14DB5CAA1693"><enum>(B)</enum><header>Subsequent
revisions</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="HFE48E04F42BF44118B47D2940F29FA42"><enum>(C)</enum><header>References to
fee schedule areas</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HFFF51302B1464EB083D3E7F3344CE6A5"><enum>(b)</enum><header>Conforming
amendment to definition of fee schedule area</header><text>Section 1848(j)(2)
of the Social Security Act (42 U.S.C. 1395w(j)(2)) is amended by striking
<quote>The term</quote> and inserting <quote>Except as provided in subsection
(e)(6)(C), the term</quote>.</text>
</subsection></section><section id="H332511BE29D040749BF35AB65AF53321" section-type="subsequent-section"><enum>511.</enum><header>Clarification for
affiliated hospitals for distribution of additional residency
positions</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H70EE4152568547FF933D2A7C846C3919" style="OLC">
<subparagraph id="H1D7852E4C2C343C8A3CEADDE8A32F163"><enum>(I)</enum><header>Affiliation</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>VI</enum><header>Other
provisions</header>
<subtitle id="id7BADA3EAE050413D8326868A0304370B"><enum>A</enum><header>General
provisions</header>
<section id="H537613B28F6A417991DC3EEC5838150F"><enum>601.</enum><header>Allocation of
geothermal receipts</header><text display-inline="no-display-inline">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—</text>
<paragraph id="H520467C89C7D4013BB66DEE1B9EF082E"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="HEAAB565C93D54BF2B1662A6AD92FA253"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="H9B9193B64C884BFD9F60B3D275970254"><enum>(3)</enum><text>25 percent shall
be deposited in miscellaneous receipts.</text>
</paragraph></section><section id="HCD9AD86B02D94907B569110CACA08BD1" section-type="subsequent-section"><enum>602.</enum><header>Employment for
youth</header><text display-inline="no-display-inline">There is appropriated,
out of any funds in the Treasury not otherwise appropriated, for an additional
amount for <quote>Department of Labor—Employment and Training
Administration—Training and Employment Services</quote> for activities under
the Workforce Investment Act of 1998 (<quote>WIA</quote>), $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:
<italic>Provided</italic>, That no portion of such funds shall be reserved to
carry out section 127(b)(1)(A) of the WIA: <italic>Provided further</italic>,
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: <italic>Provided
further</italic>, That with respect to the youth activities provided with such
funds, section 101(13)(A) of the WIA shall be applied by substituting
<quote>age 24</quote> for <quote>age 21</quote>: <italic>Provided
further</italic>, 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: <italic>Provided further</italic>, 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: <italic>Provided
further</italic>, 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 <quote>Department of Labor–Departmental Management–Salaries
and Expenses</quote>, shall remain available for obligation through September
30, 2011.</text>
</section><section id="HB6C6F644E8D24F6ABE1C861CEC0FE681"><enum>603.</enum><header>Housing Trust
Fund</header>
<subsection id="H55039EFEE3BE40DCBA0E6734FEB1BAED"><enum>(a)</enum><header>Funding</header><text display-inline="yes-display-inline">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: <italic>Provided</italic>, 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.</text>
</subsection><subsection id="H194AB551873D4CF08426F4A7E828425B"><enum>(b)</enum><header>Amendments</header><text>Section
1338 of the Federal Housing Enterprises Financial Safety and Soundness Act of
1992 (12 U.S.C. 4568) is amended—</text>
<paragraph id="HCFE14831BA7045D9BAE700B17221FD7D"><enum>(1)</enum><text>in subsection
(c)—</text>
<subparagraph id="HD2B63FED50FD428798EA9036805C6F30"><enum>(A)</enum><text>in paragraph
(4)(A) by inserting after the period at the end the following:
<quote>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.</quote>;</text>
</subparagraph><subparagraph id="HEC2E8CED162246BA8A62CB2B21E83BAF"><enum>(B)</enum><text>in paragraph
(5)(C), by striking <quote>(8)</quote> and inserting <quote>(9)</quote>;
and</text>
</subparagraph><subparagraph id="H95D8130F71A6479385B76399E3C46D19"><enum>(C)</enum><text>in paragraph
(7)(A)—</text>
<clause id="HE7796C1629C24576A900EBFC8CA969F8"><enum>(i)</enum><text>by
striking <quote>section 1335(a)(2)(B)</quote> and inserting <quote>section
1335(a)(1)(B)</quote>; and</text>
</clause><clause id="HF75182F92D384027A0BB5D937FBA0936"><enum>(ii)</enum><text>by
inserting <quote>the units funded under</quote> after <quote>75 percent
of</quote>; and</text>
</clause></subparagraph></paragraph><paragraph id="HDA47019370194F339D1B7FDEB9CCD5D7"><enum>(2)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block id="H21B00624FD6D4296AF1B588114E6DA35" style="OLC">
<subsection id="H6D6D5E164A314AF687909D0E9B8F2E52"><enum>(k)</enum><header>Environmental
review</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H42A77741B5E8473F95936E7CC6E32AF4" section-type="subsequent-section"><enum>604.</enum><header>The Individual
Indian Money Account Litigation Settlement Act of 2010</header>
<subsection id="H418658F019C14D79A7D28D7C69A47972"><enum>(a)</enum><header>Short
title</header><text display-inline="yes-display-inline">This section may be
cited as the <quote><short-title>Individual Indian Money
Account Litigation Settlement Act of 2010</short-title></quote>.</text>
</subsection><subsection id="H68A6850DF9334FDE93DA42D5BD06193B"><enum>(b)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="HB896764200A641A099F497EBB897C817"><enum>(1)</enum><header>Amended
Complaint</header><text display-inline="yes-display-inline">The term
<quote>Amended Complaint</quote> means the Amended Complaint attached to the
Settlement.</text>
</paragraph><paragraph id="H5378E99E79C04593913D8DD8D7B419BA"><enum>(2)</enum><header>Land
Consolidation Program</header><text display-inline="yes-display-inline">The
term <quote>Land Consolidation Program</quote> 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.</text>
</paragraph><paragraph id="H37808BCB2032408EA3A9EE9863C0B514"><enum>(3)</enum><header>Litigation</header><text>The
term <quote>Litigation</quote> 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).</text>
</paragraph><paragraph id="H66A4AA54D8904FAAB71A9709074716C9"><enum>(4)</enum><header>Plaintiff</header><text>The
term <quote>Plaintiff</quote> means a member of any class certified in the
Litigation.</text>
</paragraph><paragraph id="HEB996BF16E404A90B1722F4C93D58C1E"><enum>(5)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of the Interior.</text>
</paragraph><paragraph id="H03AEF81C994D4496924F1D2C9057E634"><enum>(6)</enum><header>Settlement</header><text>The
term <quote>Settlement</quote> means the Class Action Settlement Agreement
dated December 7, 2009, in the Litigation, as modified by the parties to the
Litigation.</text>
</paragraph><paragraph id="HC5156E230BC24F6BB24372B63CAC8288"><enum>(7)</enum><header>Trust
Administration Class</header><text>The term <quote>Trust Administration
Class</quote> means the Trust Administration Class as defined in the
Settlement.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H14A9ED5EA4BE451986144D167F5D86BB"><enum>(c)</enum><header>Purpose</header><text>The
purpose of this section is to authorize the Settlement.</text>
</subsection><subsection id="HCC73D0E127D54CE0BB1EA8DE0644DA2A"><enum>(d)</enum><header>Authorization</header><text>The
Settlement is authorized, ratified, and confirmed.</text>
</subsection><subsection id="HAADEA78623094436AD206DD7CF837DE5"><enum>(e)</enum><header>Jurisdictional
provisions</header>
<paragraph id="H17F59F427D6B4965AD259F81C770CA6B"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H937CEC75012440D2A190DF1608AAF61B"><enum>(2)</enum><header>Certification of
Trust Administration Class</header>
<subparagraph id="HBD75BF9AABDD4B1B8655A087A0201764"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding the
requirements of the Federal Rules of Civil Procedure, the court overseeing the
Litigation may certify the Trust Administration Class.</text>
</subparagraph><subparagraph id="H5156DD9512F84E52A161FD6A3EFEC0F3"><enum>(B)</enum><header>Treatment</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="HA9927214BBE14A33AE41560F751DF804"><enum>(f)</enum><header>Trust Land
Consolidation</header>
<paragraph id="HBFAADA6755F84AA499D38C1477406A66"><enum>(1)</enum><header>Trust Land
Consolidation Fund</header>
<subparagraph id="H8824594CC31542ECA10A9BAF440772BC"><enum>(A)</enum><header>Establishment</header><text display-inline="yes-display-inline">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 <quote>Trust Land Consolidation
Fund</quote>.</text>
</subparagraph><subparagraph id="HE3040E8D270F47B89BD258A9DF91813E"><enum>(B)</enum><header>Availability of
amounts</header><text>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—</text>
<clause id="H6B173B28E2354C66BA1C0040D249C033"><enum>(i)</enum><text>to
conduct the Land Consolidation Program; and</text>
</clause><clause id="HED97DCCA70B54E56BB52D3B16FCDE7B3"><enum>(ii)</enum><text display-inline="yes-display-inline">for other costs specified in the
Settlement.</text>
</clause></subparagraph><subparagraph id="H1366441846E94B70BDD41D5AE7FA7A96"><enum>(C)</enum><header>Deposits</header>
<clause id="H240C39C46DDE4B1A912F993BC04CE39B"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</clause><clause id="HEABB670CC8F04BC9AAD7063804F1663E"><enum>(ii)</enum><header>Conditions
met</header><text display-inline="yes-display-inline">The conditions described
in section 1304 of title 31, United States Code, shall be considered to be met
for purposes of clause (i).</text>
</clause></subparagraph><subparagraph id="H9765698AD9FE4FD3B8F4D7DBCA3B29F8"><enum>(D)</enum><header>Transfers</header><text>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.</text>
</subparagraph></paragraph><paragraph id="H8C28B0271F53437FB838FA32D06B737E"><enum>(2)</enum><header>Indian Education
Scholarship Holding Fund</header>
<subparagraph id="H46CDFE7E5A1A42DBA18FF34875E64B50"><enum>(A)</enum><header>Establishment</header><text display-inline="yes-display-inline">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 <quote>Indian Education
Scholarship Holding Fund</quote>.</text>
</subparagraph><subparagraph id="HE03F31FA83304F6599FF5F38A4164D3E"><enum>(B)</enum><header>Availability</header><text>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.</text>
</subparagraph></paragraph><paragraph id="H604525D5EBCA4741B98076EBED1D3DFA"><enum>(3)</enum><header>Acquisition of
trust or restricted land</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H5A1663A4D1D641FDAAEE51FE5616E671"><enum>(4)</enum><header>Treatment of
unlocatable plaintiffs</header><text>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.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HFD702C26335C4A419DB2D781D6DF769A"><enum>(g)</enum><header>Taxation and
other benefits</header>
<paragraph id="HBB114A6AFE87458F8987069351107B5A"><enum>(1)</enum><header>Internal Revenue
Code</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="HCE31F581BB384985A21FA91F73EEA970"><enum>(A)</enum><text>shall not be
included in gross income; and</text>
</subparagraph><subparagraph id="H33021CE2ACE041C1B2544038A4159635"><enum>(B)</enum><text>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).</text>
</subparagraph></paragraph><paragraph id="HC968A0B5028B48EE9ED0A280EB5EC006"><enum>(2)</enum><header>Other
benefits</header><text>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—</text>
<subparagraph id="H992DBB321247447BBFA8D4CEDAF45F70"><enum>(A)</enum><text>as income for the
month during which the amounts were received; or</text>
</subparagraph><subparagraph id="H26FA0DA8925542D5A227F7253AEF858D"><enum>(B)</enum><text>as a
resource.</text>
</subparagraph></paragraph></subsection></section><section id="H55BF654427E94D6A80DC015E30A6754D" section-type="subsequent-section"><enum>605.</enum><header>Appropriation of
funds for final settlement of claims from In re Black Farmers Discrimination
Litigation</header>
<subsection id="H842C91E3BB1443DC8C31357C7993DC51"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph id="H15296D99C91C4861B381380C002FB9C2"><enum>(1)</enum><header>Settlement
agreement</header><text display-inline="yes-display-inline">The term
<quote>Settlement Agreement</quote> 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 <italic>In re Black Farmers Discrimination Litigation,</italic>
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).</text>
</paragraph><paragraph id="HDF00BC27252F40088C1073E09E2EA7F8"><enum>(2)</enum><header>Pigford
claim</header><text display-inline="yes-display-inline">The term <quote>Pigford
claim</quote> 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).</text>
</paragraph></subsection><subsection id="H2A519C4B663C46DA92DF3FE7872E06B5"><enum>(b)</enum><header>Appropriation of
funds</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H76F5491F20C84413862007D8D1100051"><enum>(c)</enum><header>Use of
funds</header><text>The use of the funds appropriated by subsection (b) shall
be subject to the express terms of the Settlement Agreement.</text>
</subsection><subsection id="H43FA53E66BF8406AA481247F98C863D9"><enum>(d)</enum><header>Treatment of
remaining funds</header><text display-inline="yes-display-inline">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 <italic>In re Black
Farmers Discrimination Litigation</italic>, No. 08–511 (D.D.C.), or for any
other purpose.</text>
</subsection><subsection id="H814125686B7E45E9A721BF38342A97A6"><enum>(e)</enum><header>Rules of
construction</header><text>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.</text>
</subsection><subsection id="HECEE5C5950B64275A9F45FC4C5640E38"><enum>(f)</enum><header>Conforming
amendments</header><text display-inline="yes-display-inline">Section 14012 of
the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat.
2209) is amended—</text>
<paragraph id="H97CB037EDA20454E8FA3BBDDB5EA40E8"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (c)(1)—</text>
<subparagraph id="H160F1BA1DDD748AD804FE67FBEDC0A04"><enum>(A)</enum><text>by striking
<quote>subsection (h)</quote> and inserting <quote>subsection (g)</quote>;
and</text>
</subparagraph><subparagraph id="H52C2613D68434BA2A96B455D4CDF0F7C"><enum>(B)</enum><text>by striking
<quote>subsection (i)</quote> and inserting <quote>subsection
(h)</quote>;</text>
</subparagraph></paragraph><paragraph id="HA8CC039513A74E66A602710801CB0F66"><enum>(2)</enum><text>by striking
subsection (e);</text>
</paragraph><paragraph id="H36D55DDD5E14447BACC581507AA1F633"><enum>(3)</enum><text>in subsection (g),
by striking <quote>subsection (f)</quote> and inserting <quote>subsection
(e)</quote>;</text>
</paragraph><paragraph id="H2CB948F5CBA54AA09B43A96F121441F2"><enum>(4)</enum><text>in subsection
(i)—</text>
<subparagraph id="H894B6294CB9D4F29B66723A6BBBC50A3"><enum>(A)</enum><text>by striking
<quote>(1) <header-in-text level="paragraph" style="OLC">In
general</header-in-text>.—Of the funds</quote> and inserting <quote>Of the
funds</quote>; and</text>
</subparagraph><subparagraph id="H13AC2A285DE743B3A9DDDC9239142644"><enum>(B)</enum><text display-inline="yes-display-inline">by striking paragraph (2);</text>
</subparagraph></paragraph><paragraph id="HEB884570C0D8425C802B1FA744864A82"><enum>(5)</enum><text display-inline="yes-display-inline">by striking subsection (j); and</text>
</paragraph><paragraph id="HB3B115199A1E40D69F93B8B8CC4C4176"><enum>(6)</enum><text>by redesignating
subsections (f), (g), (h), (i), and (k) as subsections (e), (f), (g), (h), and
(i), respectively.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H75524503A1EA4F2D89C4F6A7347304CF" section-type="subsequent-section"><enum>606.</enum><header>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</header>
<subsection id="H5FE9BA7C7D8D45FF9133F9AC23278EBE"><enum>(a)</enum><header>Phased expansion
concurrent receipt</header><text>Subsection (a) of section 1414 of title 10,
United States Code, is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H21C149A93599425CBCB2D121F1DBF71D" style="OLC">
<subsection id="HAFCAC8B0B21D43A09CEBD933E6EBC5A1"><enum>(a)</enum><header>Payment of both
retired pay and disability compensation</header>
<paragraph id="H02C06B2D26874FE98C839E7D8C0C9515"><enum>(1)</enum><header>Payment of both
required</header>
<subparagraph id="H6B8D3AAC43CC416599C818CBEE1BCCC3"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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 <quote>qualified retiree</quote>) is entitled to be
paid both for that month without regard to sections 5304 and 5305 of title
38.</text>
</subparagraph><subparagraph id="HD2DBC917217D4876B982A9E5365B3B0C"><enum>(B)</enum><header>Applicability of
full concurrent receipt phase-in requirement</header><text display-inline="yes-display-inline">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).</text>
</subparagraph><subparagraph id="HB22557DB42534135BB1D98CE8CCFAB3F"><enum>(C)</enum><header>Phase-in
exception for 100 percent disabled retirees</header><text>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:</text>
<clause id="H603575E98BEA46078AF85E8E940B4682"><enum>(i)</enum><text>A
qualified retiree receiving veterans’ disability compensation for a disability
rated as 100 percent.</text>
</clause><clause id="H8A649A920A714D039335EFED21E87368"><enum>(ii)</enum><text>A
qualified retiree receiving veterans’ disability compensation at the rate
payable for a 100 percent disability by reason of a determination of individual
unemployability.</text>
</clause></subparagraph><subparagraph id="H0A61A92E40CC4A94893085A81B564719"><enum>(D)</enum><header>Temporary
phase-in exception for certain chapter 61 disability retirees;
termination</header><text display-inline="yes-display-inline">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).</text>
</subparagraph></paragraph><paragraph id="H83DE109FC2184501BBA4E1CBE4E64977"><enum>(2)</enum><header>Qualifying
service-connected disability defined</header><text>In this section:</text>
<subparagraph id="HFC74D8890C38464E88B5DBA2E362A992"><enum>(A)</enum><header>50 percent
rating threshold</header><text display-inline="yes-display-inline">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 <quote>qualifying service-connected
disability</quote> 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).</text>
</subparagraph><subparagraph id="H4A06F5B0A4C047CCB647F6D6D6B67907"><enum>(B)</enum><header>Inclusion of
members not otherwise entitled to retired pay</header><text display-inline="yes-display-inline">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
<quote>qualifying service-connected disability</quote> 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):</text>
<clause id="H6B0A1371894B4DD795EE0EB8D55CCB78"><enum>(i)</enum><text>January 1, 2011,
rated 100 percent, or a rate payable at 100 percent by reason of individual
unemployability or rated 90 percent.</text>
</clause><clause id="H73C8617130184F61BC91F810C04D74D9"><enum>(ii)</enum><text>January 1, 2012,
rated 80 percent or 70 percent.</text>
</clause><clause id="HBC29AB2B30324F66BB7EE98553CC8093"><enum>(iii)</enum><text>January 1, 2013,
rated 60 percent or 50 percent.</text>
</clause></subparagraph><subparagraph id="H6C983A5A8A58493A9637D9E84394A6C7"><enum>(C)</enum><header>Elimination of
rating threshold</header><text display-inline="yes-display-inline">In the case
of a member or former member receiving retired pay under chapter 61 regardless
of being otherwise eligible for retirement, the term <quote>qualifying
service-connected disability</quote> 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):</text>
<clause id="H1965EA4E7CAB4DB6999BEE5AE5C751C6"><enum>(i)</enum><text>January 1, 2014,
rated 40 percent or 30 percent.</text>
</clause><clause id="H0950271C8B6C4F068C007506E336D72A"><enum>(ii)</enum><text>January 1, 2015,
any rating.</text>
</clause></subparagraph></paragraph><paragraph id="H9715FE240A744808A148C1F95C4F4A29"><enum>(3)</enum><header>Limited
duration</header><text>Notwithstanding the effective date specified in each
clause of subparagraphs (B) and (C) of paragraph (2), the clause—</text>
<subparagraph id="H49B8186186FB4EA6ACCFF5DABA8EC25D"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="HD40E264F8AC34658BAF0264DEF1A6ACC"><enum>(B)</enum><text display-inline="yes-display-inline">shall not apply beyond the termination date
specified in paragraph
(1)(D).</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H16F12BE057C54C9FA05D4FBC91177DD7"><enum>(b)</enum><header>Conforming
amendment to special rules for chapter 61 disability retirees</header><text display-inline="yes-display-inline">Subsection (b) of such section is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H47C5DDE84FC346D5B668E422383FE592" style="OLC">
<subsection id="HA03C0F452FFF45EE87C04F119E6FEF70"><enum>(b)</enum><header>Special rules
for chapter 61 disability retirees when eligibility has been established for
such retirees</header>
<paragraph id="H7683A6F947A1447899D793AE31079851"><enum>(1)</enum><header>General
reduction rule</header><text>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.</text>
</paragraph><paragraph id="HFC2A5C02B07C4F808BEB9B03AC4F7159"><enum>(2)</enum><header>Chapter 61
retirees not otherwise entitled to retired pay</header>
<subparagraph id="H4C370B66C3F14A05AAE6530495FD90FA"><enum>(A)</enum><header>Before
termination date</header><text display-inline="yes-display-inline">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 2½ 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.</text>
</subparagraph><subparagraph id="HCF15AF0B2DAA426195970BE24CFCD678"><enum>(B)</enum><header>After
termination date</header><text display-inline="yes-display-inline">Subsection
(a) does not apply to a member described in subparagraph (A) if the termination
date specified in subsection (a)(1)(D) has
occurred.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H4BB206B0E55F4D3597588B683CDB431F"><enum>(c)</enum><header>Conforming
amendment to full concurrent receipt phase-in</header><text>Subsection (c) of
such section is amended by striking <quote>the second sentence of
</quote>.</text>
</subsection><subsection id="H9C530865BC734EB3A11E6F90BAECA49D"><enum>(d)</enum><header>Clerical
amendments</header>
<paragraph id="HF9253BA518C941318EE715AA3F7906EA"><enum>(1)</enum><header>Section
heading</header><text>The heading of such section is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HA1A1718AF38943FEAF8BC3C55B7D5933" style="USC">
<section id="HAE86ECAB4BFB4767832B7BF6D982DE51"><enum>1414.</enum><header>Concurrent
receipt of retired pay and veterans’ disability
compensation</header>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA85268105C1D4BFBBC27B8BCC59965AC"><enum>(2)</enum><header>Table of
sections</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="HBDE6B27406714F6F84833C06E321401E" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">1414. Concurrent receipt of retired pay
and veterans’ disability
compensation.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H138D35A70E52433F8FBD5E0A26A15381"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on
January 1, 2011.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H08D861CA123144B5B4B1797C05A4B25A"><enum>607.</enum><header>Refunds
disregarded in the administration of Federal programs and federally assisted
programs</header>
<subsection commented="no" id="H3CE4DF8834E141438F044A570E858AD3"><enum>(a)</enum><header>In
general</header><text>Subchapter A of chapter 65 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new section:</text>
<quoted-block act-name="" id="HDDC862B768D548B2B11370D84807A8FA" style="OLC">
<section commented="no" id="HC674E281AEBF4E0A88B0500DFFA0FF5A"><enum>6409.</enum><header>Refunds
disregarded in the administration of Federal programs and federally assisted
programs</header>
<subsection id="H860324CDE1734A4E821447472A576AEA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HCC81BBB11DB44083848E1F62DF9DE84C"><enum>(b)</enum><header>Termination</header><text>Subsection
(a) shall not apply to any amount received after December 31,
2010.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HF936B3D3BCC94194A498D10DC5F6BC10"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for such subchapter is amended by
adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H20084DC6ABFB4B7E8D2448764B56B571" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 6409. Refunds disregarded
in the administration of Federal programs and federally assisted
programs.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H61EF6C93C10D4D5A9DC3F5CA0B6BEDD8"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
received after December 31, 2009.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HEA2A65B3FDE34CDB93FD9301563B7F9C" section-type="subsequent-section"><enum>608.</enum><header display-inline="yes-display-inline">Qualifying timber contract options</header>
<subsection commented="no" display-inline="no-display-inline" id="H6DCD98FCC8A7420DA194F6ED55E27C4D"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H4755379CDC894D7DA02F3E769CC601E4"><enum>(1)</enum><header display-inline="yes-display-inline">Qualifying contract</header><text display-inline="yes-display-inline">The term <term>qualifying contract</term>
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:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H90E22A27DE28464AA9072A40407E874D"><enum>(A)</enum><text display-inline="yes-display-inline">The contract was awarded during the period
beginning on January 1, 2005, and ending on December 31, 2008.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H749506535F73497FABD79A7236C19B4C"><enum>(B)</enum><text display-inline="yes-display-inline">There is unharvested volume remaining for
the contract.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF01B22C2F09F4F94BE5FEC56FF499C11"><enum>(C)</enum><text display-inline="yes-display-inline">The contract is not a salvage sale.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAA5CDE8B308A4319B99547FCF8E42091"><enum>(D)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6D90FBE1C22F42BB977D75D93C3C7166"><enum>(2)</enum><header display-inline="yes-display-inline">Secretary</header><text display-inline="yes-display-inline">The term <term>Secretary</term> means the
Secretary of the Interior, acting through the Director of Bureau of Land
Management.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0E18AB10879F4888AD9778E1272624FF"><enum>(3)</enum><header display-inline="yes-display-inline">Timber purchaser</header><text display-inline="yes-display-inline">The term <term>timber purchaser</term>
means the party to the qualifying contract for the sale of timber from lands
administered by the Bureau of Land Management.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H64F404911F0F48A4BFE4AB6109080A21"><enum>(b)</enum><header display-inline="yes-display-inline">Market-related contract extension
option</header><text display-inline="yes-display-inline">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—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF5265512128C408E8CC8519812F02AC1"><enum>(1)</enum><text display-inline="yes-display-inline">is received by the Secretary not later than
90 days after the date of enactment of this Act; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5C46918CC1764B369B3FC398D6B2E01C"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCCB696514E8F4E18AB08B74747E88638"><enum>(c)</enum><header display-inline="yes-display-inline">Reporting</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6C25C18BC2DE4D14864E15EC8C3EBEE1"><enum>(d)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA08497C8BBE94910AB08001E6085E71A"><enum>(e)</enum><header display-inline="yes-display-inline">No surrender of claims</header><text display-inline="yes-display-inline">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).</text>
</subsection></section><section id="HECCA978B11844D728425FF22A6A75ACE"><enum>609.</enum><header>Extension and
flexibility for certain allocated surface transportation programs</header>
<subsection id="H678B01FC220041A9B20795EA1E176475"><enum>(a)</enum><header>Modification of
allocation rules</header><text display-inline="yes-display-inline">Section
411(d) of the Surface Transportation Extension Act of 2010 (Public Law 111–147;
124 Stat. 80) is amended—</text>
<paragraph id="H0E8D03FFE7DA423EB06BE189FC34EBA8"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph id="HC20D1EF33F584DC098E1B02D9824C5F0"><enum>(A)</enum><text>in the matter
preceding subparagraph (A)—</text>
<clause id="H75187A7541184A8E86BC71D0A944E3B1"><enum>(i)</enum><text>by
striking <quote>1301, 1302,</quote>; and</text>
</clause><clause id="HB0D3C6B14EA441118FE06D8D9729AB62"><enum>(ii)</enum><text>by
striking <quote>1198, 1204,</quote>; and</text>
</clause></subparagraph><subparagraph id="H93181D9FACCF454BAFBD9DF3ABAF142A"><enum>(B)</enum><text>in subparagraph
(A)—</text>
<clause id="H322C6FA48D994EE797021092BA5AEFA0"><enum>(i)</enum><text>in
the matter preceding clause (i) by striking <quote>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),</quote>; and</text>
</clause><clause id="HB5FB9E24336940C18A3FDAC09893C11E"><enum>(ii)</enum><text>in
clause (ii) by striking <quote>apportioned under such sections of such
Code</quote> and inserting <quote>specified in such section 105(a)(2) (except
the high priority projects program)</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="H502E2EB261D548EC89B8EEEC025AB09C"><enum>(2)</enum><text>in paragraph
(2)—</text>
<subparagraph id="HD69A35A65A784273902F2C34A656B160"><enum>(A)</enum><text>in the matter
preceding subparagraph (A)—</text>
<clause id="HB3F945B7C48F4EC99B84B15969BA5194"><enum>(i)</enum><text>by
striking <quote>1301, 1302,</quote>; and</text>
</clause><clause id="H213B5487C2D8464DA492819596D84BBE"><enum>(ii)</enum><text>by
striking <quote>1198, 1204,</quote>; and</text>
</clause></subparagraph><subparagraph id="H68F759D9E6674E9BBCB4641E682F82C7"><enum>(B)</enum><text>in subparagraph
(A)—</text>
<clause id="H01ACE0232A1B41EBBB44D1E02616B301"><enum>(i)</enum><text display-inline="yes-display-inline">in the matter preceding clause (i) by
striking <quote>apportioned under sections 104(b) and 144 of title 23, United
States Code,</quote> and inserting <quote>specified in section 105(a)(2) of
title 23, United States Code (except the high priority projects
program),</quote>; and</text>
</clause><clause id="H932B13CECA7943839043B584F107F425"><enum>(ii)</enum><text>in
clause (ii) by striking <quote>apportioned under such sections of such
Code</quote> and inserting <quote>specified in such section 105(a)(2) (except
the high priority projects program)</quote>; and</text>
</clause></subparagraph></paragraph><paragraph id="H17D7F058E7594E4D9513F946BFD28B1B"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HFA6251CAFEA743389A41AFC1377A87C5" style="OLC">
<paragraph id="HB4B898F7CC8C4E09BDE011B71F341FCF"><enum>(5)</enum><header>Projects of
national and regional significance and national corridor infrastructure
improvement programs</header>
<subparagraph id="HAED23A1A794245C7AFCD2A42115FFA43"><enum>(A)</enum><header>Redistribution
among States</header><text>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.</text>
</subparagraph><subparagraph id="HB9A03EF14B394855AF2EFE8369DF2521"><enum>(B)</enum><header>Distribution
among programs</header><text>Funds apportioned to a State pursuant to
subparagraph (A) shall be—</text>
<clause id="H0E1730838F84422BA64F52C48466AFC9"><enum>(i)</enum><text>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—</text>
<subclause id="H762847AFA10A472B8DA3957775F5B9D2"><enum>(I)</enum><text>the amount
apportioned to the State for that program for fiscal year 2009; bears to</text>
</subclause><subclause id="H3C7673B8020048F5AF034D3660954B2C"><enum>(II)</enum><text>the amount
apportioned to the State for fiscal year 2009 for all such programs; and</text>
</subclause></clause><clause id="H610270FEDC7C48E5B86117134FC46DFF"><enum>(ii)</enum><text>administered in
the same manner and with the same period of availability as funding is
administered under programs identified in clause
(i).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H11CC4F62401340FF9FD263EC97DE7AD2"><enum>(b)</enum><header>Expenditure
authority from Highway Trust Fund</header><text>Paragraph (1) of section
9503(c) of the Internal Revenue Code of 1986 is amended by striking
<quote>Surface Transportation Extension Act of 2010</quote> and inserting
<quote><short-title>Job Creation and Tax Cuts Act of
2010</short-title></quote>.</text>
</subsection><subsection id="H77565F40C58F45AC81D6D205051223E8"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H6070CA99B14148139EE3C724DA7450D5"><enum>(d)</enum><header>Savings
clause</header>
<paragraph id="H2F6ABF0030B547EA92A596E82D49D6AD"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="H2F163C6413F1420AAECCF00BF6FC23D0"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="HDDA24874617D4C688F69145A14F06185"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph id="HC1C36DC58CDE4CF68A037575E86A97E7"><enum>(2)</enum><header>Obligation
authority</header><text>For fiscal year 2010, the amount of obligation
authority distributed to each State shall be the greater of—</text>
<subparagraph id="H3EFC6C31F6804CAE9DF42A20EA7778B2"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="H6CAC0A4BA1B440DA98721CB6429BC1B9"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H7818AEA5BF434BDFA3182D2C5F94A127"><enum>(3)</enum><header>Authorization of
appropriations</header><text>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.</text>
</paragraph><paragraph id="H0D490D0CFD0F46D7AB13DD4D8C1CF991"><enum>(4)</enum><header>Increase in
obligation limitation</header><text>The limitation under the heading
<quote>Federal-aid Highways (Limitation on Obligations) (Highway Trust
Fund)</quote> in Public Law 111–117 is increased by such sums as may be
necessary to carry out this subsection.</text>
</paragraph><paragraph id="H5F0A0828F7F3409EA3D0E5AC81EA0993"><enum>(5)</enum><header>Contract
authority</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H04396C78D4214B6BA77DBE7B18CAE8BC"><enum>(6)</enum><header>Amounts</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection></section><section id="HA24065ED5E594E12A5C2B86313EBDCA7"><enum>610.</enum><header>Community
College and Career Training Grant Program</header>
<subsection id="H3B83962B12A446D9978A7CEAAEEFFC2B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 278(a) of the
Trade Act of 1974 (19 U.S.C. 2372(a)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HD4954F6B042B47ACB96527FD2FF98174" style="OLC">
<paragraph id="H612AD0D912014752B4ED1D11DD8ABE5C"><enum>(3)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">For purposes of
this section, any reference to <quote>workers</quote>, <quote>workers eligible
for training under section 236</quote>, 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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE990476F3BBC4840AD9DF3B55D85F603"><enum>(b)</enum><header>Definition of
eligible institution</header><text>Section 278(b)(1) of the Trade Act of 1974
(19 U.S.C. 2372(b)(1)) is amended—</text>
<paragraph id="HE90A8431053F4BCC8C9657D8017B5904"><enum>(1)</enum><text>by striking
<quote>section 102</quote> and inserting <quote>section 101(a)</quote>;
and</text>
</paragraph><paragraph id="HE52736A3ACC24B3C8BA58065CE342936"><enum>(2)</enum><text>by striking
<quote>1002</quote> and inserting <quote>1001(a)</quote>.</text>
</paragraph></subsection><subsection id="H5B9A27A9041A49CBB1248D66D04939C6"><enum>(c)</enum><header>Authorization of
appropriations</header><text>Section 279 of the Trade Act of 1974 (19 U.S.C.
2372a) is amended—</text>
<paragraph id="HCEC4F92B8F50427DBD93D96E9C492B6E"><enum>(1)</enum><text>in subsection (a),
by striking the last sentence; and</text>
</paragraph><paragraph id="H9E1F0EA4347C4C74BC0997548DF69EBE"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H0334322C7C2C438C8C43285C81252A7B" style="OLC">
<subsection id="H0B70E1B51C5C45F0A2608A51C80C4D78"><enum>(c)</enum><header>Administrative
and related costs</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HDCC9EB4738604E35859495839F04662B"><enum>(d)</enum><header>Supplement not
supplant</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HB7BCD988142743F0BD75B73023FF19ED"><enum>(e)</enum><header>Availability</header><text display-inline="yes-display-inline">Funds appropriated under subsection (b)
shall remain available for the fiscal year for which the funds are appropriated
and the subsequent fiscal
year.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H0E1C6BE924CE4BA5B4B606F607068E2D" section-type="subsequent-section"><enum>611.</enum><header>Extensions of duty
suspensions on cotton shirting fabrics and related provisions</header>
<subsection id="H0EA62386A0934A29A7873984D06C3959"><enum>(a)</enum><header>Extensions</header><text>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 <quote>12/31/2013</quote>:</text>
<paragraph id="H494CA383C2984780A8FFC4B3C65AA294"><enum>(1)</enum><text>Heading 9902.52.08
(relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="HF6CCE5B80E084352849CE376FAF7E264"><enum>(2)</enum><text>Heading 9902.52.09
(relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="HC3320569B2184ED2BFDA5798FB06AB80"><enum>(3)</enum><text>Heading 9902.52.10
(relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="HA3AC7BCB5FA8417AB1DD29FC5992405C"><enum>(4)</enum><text>Heading 9902.52.11
(relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="HC3104EA73E4D4669812A1629477000B2"><enum>(5)</enum><text>Heading 9902.52.12
(relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="H91BFCF8C94804ADD8CAF7F7B1FC874DD"><enum>(6)</enum><text>Heading 9902.52.13
(relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="H07CF1353ECE64F05A6E7B4DF544B45CA"><enum>(7)</enum><text>Heading 9902.52.14
(relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="HEB59F0D31F3D49FE9D93AD7D642FAACD"><enum>(8)</enum><text>Heading 9902.52.15
(relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="H4AE0B09FCC304EFBA75A6FDC99BD2C35"><enum>(9)</enum><text>Heading 9902.52.16
(relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="H12B808AC135C44F6AED423292884F6CD"><enum>(10)</enum><text>Heading
9902.52.17 (relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="HAF6E8B9D0FBC46E49EC567B8C5A47FF9"><enum>(11)</enum><text>Heading
9902.52.18 (relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="H693E1231ABB4452AB6A4CC0E6B8C9D76"><enum>(12)</enum><text>Heading
9902.52.19 (relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="H45C9897C3D98465F8DF7882D7FF49124"><enum>(13)</enum><text>Heading
9902.52.20 (relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="H2C728191AA58409188CDC9F28D56F999"><enum>(14)</enum><text>Heading
9902.52.21 (relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="H840E605305CA4C7294B15AC4A503EA0F"><enum>(15)</enum><text>Heading
9902.52.22 (relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="HFFE69F2425BC4033B48FA199950230D4"><enum>(16)</enum><text>Heading
9902.52.23 (relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="HBA3C64E6361D4B5DB688B0EE96861E7C"><enum>(17)</enum><text>Heading
9902.52.24 (relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="HCB0E6A82E22B4EA9B206D3613903AA84"><enum>(18)</enum><text>Heading
9902.52.25 (relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="H504C882EB27548CC875E2526B73239C3"><enum>(19)</enum><text>Heading
9902.52.26 (relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="H95195231FB894583AE68E7EAC70C466C"><enum>(20)</enum><text>Heading
9902.52.27 (relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="H57D068747C5E46B1994F70C183A4693F"><enum>(21)</enum><text>Heading
9902.52.28 (relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="HA896094B41024976910687DAC323F711"><enum>(22)</enum><text>Heading
9902.52.29 (relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="HEE8899C70D2E4548ADF2076D0F981A2E"><enum>(23)</enum><text>Heading
9902.52.30 (relating to woven fabrics of cotton).</text>
</paragraph><paragraph id="H071E7B30094E4CC0958A45411B52A77D"><enum>(24)</enum><text>Heading
9902.52.31 (relating to woven fabrics of cotton).</text>
</paragraph></subsection><subsection id="HDC07DB1BAB5C430A8D54D6AE6A6A72CE"><enum>(b)</enum><header>Extension of
duty refunds and Pima Cotton Trust Fund; modification of affidavit
requirements</header><text>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—</text>
<paragraph id="H8C0185C904184D5BBA5C3842E234F306"><enum>(1)</enum><text>in subsection
(b)—</text>
<subparagraph id="H39A8E0A47F084EBDA7E1AA9E09A79A85"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>amounts determined by the Secretary</quote> and all that
follows through <quote>5208.59.80</quote> and inserting <quote>amounts received
in the general fund that are attributable to duties received since January 1,
2004, on articles classified under heading 5208</quote>; and</text>
</subparagraph><subparagraph id="HD7AC5186CE3146A5B1D35B1956CDD095"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>October 1, 2008</quote> and inserting <quote>December 31,
2013</quote>;</text>
</subparagraph></paragraph><paragraph id="H385FA586E5B1452C9A12084E00F07492"><enum>(2)</enum><text>in subsection
(d)—</text>
<subparagraph id="H8B6F57B2E8ED4C80B8E31E6938B49AF1"><enum>(A)</enum><text>in the matter
preceding paragraph (1), by inserting <quote>annually</quote> after
<quote>provided</quote>; and</text>
</subparagraph><subparagraph id="HADB0E5D688204AC1949B0BCB960DC676"><enum>(B)</enum><text>in paragraph (1),
by inserting <quote>during the year in which the affidavit is filed and</quote>
after <quote>imported cotton fabric</quote>; and</text>
</subparagraph></paragraph><paragraph id="H9FFBE786214543DEA673265BC42B7B05"><enum>(3)</enum><text>in subsection
(f)—</text>
<subparagraph id="H03DBC45D730D477698EE72E2C96C8666"><enum>(A)</enum><text>in the matter
preceding paragraph (1), by inserting <quote>annually</quote> after
<quote>provided</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAF10B4BC5E714C01A3EECBABA94F9E15"><enum>(B)</enum><text>in paragraph (1),
by inserting <quote>during the year in which the affidavit is filed and</quote>
after <quote>United States</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HBA909FA0BA334AC682E0D6CB5CE084AB"><enum>(c)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><section id="HF4819B3482ED448A80C01E43879A8527" section-type="subsequent-section"><enum>612.</enum><header>Modification of Wool
Apparel Manufacturers Trust Fund</header>
<subsection id="H9BBFBD58B81443E392ABC46A66CA7877"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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 <quote>chapter 51</quote> and
inserting <quote>chapter 62</quote>.</text>
</subsection><subsection id="H3243B0B85DCF47358ABCB075D6FCAAE7"><enum>(b)</enum><header>Full restoration
of payment levels in fiscal year 2010</header>
<paragraph id="H7F6BFEA8FDAE44ECBE5DFF9D232CBD3D"><enum>(1)</enum><header>Transfer of
amounts</header>
<subparagraph id="H93C228CA346C456599E505E49451AFB3"><enum>(A)</enum><header>In
general</header><text>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).</text>
</subparagraph><subparagraph id="H611AD8AABDD24BD9A0E8D340A0A0F367"><enum>(B)</enum><header>Limitation</header><text>The
Secretary of the Treasury shall not transfer more than the amount determined by
the Secretary to be necessary for—</text>
<clause id="HB5D8465564C34C26B83E4F9BC42BBF6B"><enum>(i)</enum><text>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</text>
</clause><clause id="H59A4D90302554D5894868FF209572886"><enum>(ii)</enum><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph></paragraph><paragraph id="HF31A6F96AC62458FAAEC66B93325F15F"><enum>(2)</enum><header>Payment of
amounts</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection id="HAA4972DB1E3A42798D6D4E823AF2FAAA"><enum>(c)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section id="H9E42AA15375E4873B7B4ECF760E58FC4"><enum>613.</enum><header>Department of
Commerce Study</header><text display-inline="no-display-inline">Not later than
180 days after the date of enactment of this Act, the Secretary of Commerce
shall report to Congress detailing—</text>
<paragraph id="H10B0A1D8FE7F4C549CD9449F8B232983"><enum>(1)</enum><text>the pattern of job
loss in the New England, Mid-Atlantic, and Midwest States over the past 20
years;</text>
</paragraph><paragraph id="HF6AD917BFD4C4D7BAE4ACC1E9B74D041"><enum>(2)</enum><text>the role of the
off-shoring of manufacturing jobs in overall job loss in the regions;
and</text>
</paragraph><paragraph id="H2D67823EF49E4E428AF02314DB2DBBD6"><enum>(3)</enum><text>recommendations to
attract industries and bring jobs to the region.</text>
</paragraph></section><section display-inline="no-display-inline" id="H711F3E5146434A4E8B7B2AD777132D06" section-type="subsequent-section"><enum>614.</enum><header>ARRA planning and
reporting</header><text display-inline="no-display-inline">Section 1512 of the
American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat.
287) is amended—</text>
<paragraph id="H41D1A5E66A4C4F9EB8029E1251F2F60B"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (d)—</text>
<subparagraph id="HDC6B2A79F11B47C39EE1D119421C9BF0"><enum>(A)</enum><text display-inline="yes-display-inline">in the subsection heading, by inserting
<quote><header-in-text level="subsection" style="OLC">plans
and</header-in-text></quote> after <quote><header-in-text level="subsection" style="OLC">Agency</header-in-text></quote>;</text>
</subparagraph><subparagraph id="H82B7FC562F5F452DBEDBC68185C055F6"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>Not later than</quote>
and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HFFC09DA090D94DBC9629D77AE4A80E89" style="OLC">
<paragraph id="H5933E05219944A7D979FF41EE9F12705"><enum>(1)</enum><header>Definition</header><text>In
this subsection, the term <term>covered program</term> means a program for
which funds are appropriated under this division—</text>
<subparagraph id="H660796808D5B42F2957C8B699E0E05FC"><enum>(A)</enum><text>in an amount that
is—</text>
<clause id="H7B5E2D21956947BDA834812C988252ED"><enum>(i)</enum><text>more than
$2,000,000,000; and</text>
</clause><clause id="H19E6F02D16CA4B1E82C6B49652B669F6"><enum>(ii)</enum><text>more than 150
percent of the funds appropriated for the program for fiscal year 2008;
or</text>
</clause></subparagraph><subparagraph id="H059B0479C2434D2D9F46D665993987BC"><enum>(B)</enum><text>that did not exist
before the date of enactment of this Act.</text>
</subparagraph></paragraph><paragraph id="HEAB42A4CFE894D17BA28BB98B07FC6B4"><enum>(2)</enum><header>Plans</header><text>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—</text>
<subparagraph id="H6B7C6BA9C41B48C08277683E42C53808"><enum>(A)</enum><text>a description of
the goals for the covered program using recovery funds;</text>
</subparagraph><subparagraph id="H4C3337AB2D3E446A991AA2B22E272B91"><enum>(B)</enum><text>a discussion of
how the goals described in subparagraph (A) relate to the goals for ongoing
activities of the covered program, if applicable;</text>
</subparagraph><subparagraph id="H486DC86230444FAA877957B19A13E1FB"><enum>(C)</enum><text>a description of
the activities that the agency will undertake to achieve the goals described in
subparagraph (A);</text>
</subparagraph><subparagraph id="HADADC8441CE2477CBE461F0E9A565102"><enum>(D)</enum><text>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;</text>
</subparagraph><subparagraph id="HF0AB826E4C0741E89F5EFB1D1D703510"><enum>(E)</enum><text>a schedule of
milestones for major phases of the activities under the covered program, with
planned delivery dates;</text>
</subparagraph><subparagraph id="H5A0472CAB2E84D208312AAF5AF89CA23"><enum>(F)</enum><text>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;</text>
</subparagraph><subparagraph id="H0565B595B2904900885E96DDC86216C6"><enum>(G)</enum><text>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</text>
</subparagraph><subparagraph id="HA42565FEC3D64E8695E9E970D1DBF1E9"><enum>(H)</enum><text>a description of
how the agency will hold program managers accountable for achieving the goals
described in subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="H9C5B459459A2409DABE3986820CB7008"><enum>(3)</enum><header>Reports</header>
<subparagraph id="H5345DC58D3F14C3CB3BB6E22D9C82D9F"><enum>(A)</enum><header>In
general</header><text>Not later than</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H2BF337CA81D6477793C5442E3EB530CF"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H4485F0FBF5C84E94BAC3A99E08216F04" style="OLC">
<subparagraph id="H10FD798C5D30452D8C345C5D7A69E6BA"><enum>(B)</enum><header>Reports on
plans</header><text>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—</text>
<clause id="HA6F01D95574F4EA2AB4C74172CD41CEB"><enum>(i)</enum><text>discusses the
progress of the agency in implementing the plan;</text>
</clause><clause id="HABBF64C86315472398CB3ADFC62A974F"><enum>(ii)</enum><text>describes the
progress towards achieving the goals described in paragraph (2)(A) for the
covered program;</text>
</clause><clause id="H87E78EEB278A4659BD9A3FC450A6B671"><enum>(iii)</enum><text>discusses the
status of each activity carried out under the covered program, including
whether the activity is completed;</text>
</clause><clause id="H49556F7566AC49E3B71331C1367D7720"><enum>(iv)</enum><text>details the
unobligated and unexpired balances and total obligations and outlays under the
covered program;</text>
</clause><clause id="H6C43A9C8CC9D4E92837A32FE7494531E"><enum>(v)</enum><text>discusses—</text>
<subclause id="HFC25A3C8AD7F4711871E0AE094D411B1"><enum>(I)</enum><text>whether the
covered program has met the milestones for the covered program described in
paragraph (2)(E);</text>
</subclause><subclause id="H14154DB4D96B4F08AEAE5169B642D2CA"><enum>(II)</enum><text>if the covered
program has failed to meet the milestones, the reasons why; and</text>
</subclause><subclause id="H8F33F8EB7F834F46A6642C0A596021DD"><enum>(III)</enum><text>any changes in
the milestones for the covered program, including the reasons for the
change;</text>
</subclause></clause><clause id="H703AB6CD536A45B187862ED3D31D24DC"><enum>(vi)</enum><text>discusses the
performance of the covered program, including—</text>
<subclause id="H9BAD53845B7D4221B8032820B2C01952"><enum>(I)</enum><text>whether the
covered program has met the performance measures for the covered program
described in paragraph (2)(F);</text>
</subclause><subclause id="H6F33A178CACC41D198EAEF04669D9BB4"><enum>(II)</enum><text>if the covered
program has failed to meet the performance measures, the reasons why;
and</text>
</subclause><subclause id="H4190C8A32ABD488BB8B6F152A531A668"><enum>(III)</enum><text>any trends in
information relating to the performance of the covered program; and</text>
</subclause></clause><clause id="H3F00B14ADCDD461CBEA4909C30DD3156"><enum>(vii)</enum><text>evaluates the
ability of the covered program to meet the goals of the covered program given
the performance of the covered program.</text>
</clause></subparagraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HE3CF78B0DC354719BA45FDD479A15A13"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (f)—</text>
<subparagraph id="HA15DB8F467F74B91A71183891DF6F30A"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>Within 180 days</quote>
and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HACDFCE32FD464849BE4A9B231C5CA912" style="OLC">
<paragraph id="HC068334106DD4475999CE6A17EE570AB"><enum>(1)</enum><header>In
general</header><text>Within 180 days</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HD0C12D4958E84FD58158BA14E8EB8473"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7A5855C57EB24BD983CB9CE7024E119C" style="OLC">
<paragraph id="H4CB0D6CD73C1440E880B3DDC006655C9"><enum>(2)</enum><header>Penalties</header>
<subparagraph id="H1E74C0439EAF46A592BEBF60F786993D"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="H4F856FB85CF34A29A264A8C515DC7B9E"><enum>(B)</enum><header>Notification</header>
<clause id="H6416B7CE5FCC44EAAE94DD05E9F801D5"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="H349EA436A902432BB3D0145208EDC167"><enum>(ii)</enum><header>Limitation</header><text>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.</text>
</clause></subparagraph><subparagraph id="H9880D6FA818240DEB52222E555CF8E3A"><enum>(C)</enum><header>Considerations</header><text>In
determining the amount of a penalty under this paragraph for a recipient of
recovery funds, a court shall consider—</text>
<clause id="H73A2A1472D0448E68EF7CE6A48308FFC"><enum>(i)</enum><text>the number of
times the recipient has failed to provide the information required under
subsection (c);</text>
</clause><clause id="H22481CE3A4F343F38D2E5C4FD8781074"><enum>(ii)</enum><text>the amount of
recovery funds provided to the recipient;</text>
</clause><clause id="HD0D38574D7E74256B97D967601E0C47D"><enum>(iii)</enum><text>whether the
recipient is a government, nonprofit entity, or educational institution;
and</text>
</clause><clause id="H6DE8E8941C5A4BBAAAED4B68E9CA4D2F"><enum>(iv)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="H314AEB466D344B3D8078212A68E86C7F"><enum>(D)</enum><header>Applicability</header><text>This
paragraph shall apply to any report required to be submitted on or after the
date of enactment of this paragraph.</text>
</subparagraph><subparagraph id="H92BEEF0F24F04A2C9C28F6E192108376"><enum>(E)</enum><header>Nonexclusivity</header><text>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.</text>
</subparagraph></paragraph><paragraph id="H074AD051042644429ACDED6B3E6786E0"><enum>(3)</enum><header>Technical
assistance</header><text>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.</text>
</paragraph><paragraph id="H19727518536A4BE4A36E057C3EF11DBC"><enum>(4)</enum><header>Public
listing</header>
<subparagraph id="H7863E2E6D4494A0A96B2FEF129014BA0"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="H66DC259339FD49979C473B4782BFD483"><enum>(B)</enum><header>Contents</header><text>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.</text>
</subparagraph></paragraph><paragraph id="H787677B8C63A40A2807A5A70B4F6690F"><enum>(5)</enum><header>Regulations and
reporting</header>
<subparagraph id="H2662216B24664207939FFAD49CBD51A5"><enum>(A)</enum><header>Regulations</header><text>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.</text>
</subparagraph><subparagraph id="H20BA538726B54CBDA32816081FC60F3C"><enum>(B)</enum><header>Reporting</header>
<clause id="H1D172D6D6970484BB083B2A57B3EE938"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="H1FF59A953C5B44CC84600E40829AA864"><enum>(ii)</enum><header>Contents</header><text>Each
report submitted under clause (i) shall include—</text>
<subclause id="HDBF9E0FD33954894BD1D73005E55706E"><enum>(I)</enum><text>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;</text>
</subclause><subclause id="H86C3D03FFEE348E9A73AAC9F6C8E56AD"><enum>(II)</enum><text>information on
the steps taken by the Federal Government to reduce the level of noncompliance;
and</text>
</subclause><subclause id="H1AD3EB35763A4D75AB72E92C5BF20E2A"><enum>(III)</enum><text>any other
information determined appropriate by the
Director.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HEBC060D1E30F41FC80470307A1DD81C1"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HBAC3E902FD20434EBDB0B51087A2989D" style="OLC">
<subsection id="H3A270B7E38A043FF9A0B31F16331C185"><enum>(i)</enum><header>Termination</header><text>The
reporting requirements under this section shall terminate on September 30,
2013.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id9241F882D2AD40E1A17574A5F84E5079"><enum>615.</enum><header>Surety
bonds</header><text display-inline="no-display-inline">Section 508(f) of
division A of the American Recovery and Reinvestment Act of 2009 (15 U.S.C.
694a note) is repealed.</text>
</section><section id="id6F22FC68090E4A979E5B4DEDB069A718"><enum>616.</enum><header>Funding for
deployment of renewable energy, energy efficiency, and electric power
transmission projects</header><text display-inline="no-display-inline">Section
1703 of the Energy Policy Act of 2005 (42 U.S.C. 16513) is amended—</text>
<paragraph id="id833CF3B1ED43448AB9F7F055C15A693F"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1) by striking <quote>The
Secretary</quote> and inserting <quote>Except as provided in subsection (f),
the Secretary</quote>;</text>
<quoted-block display-inline="no-display-inline" id="idCB832A17A3C74D3EA9D865236BC3AEBB" style="OLC">
<paragraph id="id660BF260EFD14F958756EA4DDB84DDD9"><enum>(2)</enum><text>by adding at the
end the following:</text>
</paragraph><subsection id="idD3B554AFDB234F8EA52092CF107CD0EE"><enum>(f)</enum><header>Authorization
for credit subsidy</header>
<paragraph id="idCE67ABBBF33C495F8F55ECCA82CCFB00"><enum>(1)</enum><header>In
general</header><text>The Secretary may make guarantees under this section for
the following categories of projects:</text>
<subparagraph id="idC23EA7323C2E4BD7868EA75D834BF521"><enum>(A)</enum><text>Renewable energy
systems, including incremental hydropower, that generate electricity or thermal
energy.</text>
</subparagraph><subparagraph id="ID2d55cdadb1234902bc2f877614aa46d8"><enum>(B)</enum><text>Electric power
transmission systems, including upgrading and reconductoring projects.</text>
</subparagraph><subparagraph id="IDa6bfb64f2a0e472d93072deada304882"><enum>(C)</enum><text>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.</text>
</subparagraph><subparagraph id="IDccc377e12a6745e4a02c647c5faf6d64"><enum>(D)</enum><text>Energy efficiency
projects, including projects to retrofit residential, commercial, and
industrial buildings, facilities, and equipment.</text>
</subparagraph><subparagraph id="IDbe50e46f2149473b98da454460526643"><enum>(E)</enum><text>Facilities that
manufacture components related to the categories of projects in subparagraphs
(A) through (D).</text>
</subparagraph></paragraph><paragraph id="idFA6CF5A6B85247D1A2CC0FBAEF202359"><enum>(2)</enum><header>Multiple
applications</header><text>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.</text>
</paragraph><paragraph id="idF65A8A256C634E38966040433137A054"><enum>(3)</enum><header>Funding</header><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><subtitle id="idEF108A2FB4274AF4A1BAD3CE44D47059"><enum>B</enum><header>Extension of
Trade Adjustment Assistance</header>
<section id="id928F77FFB5464D5B9FAD205DD29410FC"><enum>621.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote><short-title>Trade Adjustment
Assistance Extension Act of 2010</short-title></quote>.</text>
</section><section id="idFA474379FF104E49811A6A0061289A27"><enum>622.</enum><header>Extension of
Trade Adjustment Assistance</header>
<subsection id="idA32FFFF794414152885F5F1DE59C4A15"><enum>(a)</enum><header>In
general</header><text>Section 1893 of the Trade and Globalization Adjustment
Assistance Act of 2009 (Public Law 111–5; 123 Stat. 422) is amended by striking
<quote>2011</quote> each place it appears and inserting
<quote>2012</quote>.</text>
</subsection><subsection id="idB76B8AF3085C443AB5C34C5876003C95"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="idD270DD300A54487EBB5F4C7D0598CB62"><enum>(1)</enum><text>Section
236(a)(2)(A) of the Trade Act of 1974 (19 U.S.C. 2296(a)(2)(A)) is
amended—</text>
<subparagraph id="id919AEC01DF5D418F993CE7E2EE1E0B1E"><enum>(A)</enum><text>in clause (i), by
striking <quote>2009 and 2010</quote> and inserting <quote>2010 and
2011</quote>; and</text>
</subparagraph><subparagraph id="idDA61A125316A4C1B8F25D596CF9EBF63"><enum>(B)</enum><text>in clause
(ii)—</text>
<clause id="id80C110C0C333465386C38648D7A56475"><enum>(i)</enum><text>by
striking <quote>2009 and 2010</quote> and inserting <quote>2010 and
2011</quote>; and</text>
</clause><clause id="idF7116D7652E346BAA31CA5133DA15914"><enum>(ii)</enum><text>by
striking <quote>October 1, 2010, and ending December 31, 2010</quote> and
inserting <quote>October 1, 2011, and ending December 31, 2011</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="id50570DF4989B44E8AB3E4FACD70E8994"><enum>(2)</enum><text>Section 245(a) of
the Trade Act of 1974 (19 U.S.C. 2317(a)) is amended by striking
<quote>2010</quote> and inserting <quote>2011</quote>.</text>
</paragraph><paragraph commented="no" id="idD65EADB45EE24CEE92F98345E362D5AA"><enum>(3)</enum><text>Section 246(b)(1)
of the Trade Act of 1974 (19 U.S.C. 2318(b)(1)) is amended by striking
<quote>2010</quote> and inserting <quote>2011</quote>.</text>
</paragraph><paragraph id="idE14F97C404C94B309C8C944D2284BE9C"><enum>(4)</enum><text>Section 255(a) of
the Trade Act of 1974 (19 U.S.C. 2345(a)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id4524D1B9326741228431BE40CA472A37" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="IDCB9DC64AF03440C2B12098F18B307A9B"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idA45A1D355EED43F1B335AE11BD1129FC"><enum>(5)</enum><text>Section 275(f) of
the Trade Act of 1974 (19 U.S.C. 2371d(f)) is amended by striking
<quote>2011</quote> and inserting <quote>2012</quote>.</text>
</paragraph><paragraph id="idA26E23966DC049118BB4F410E1FC4F43"><enum>(6)</enum><text>Section 276(c)(2)
of the Trade Act of 1974 (19 U.S.C. 2371e(c)(2)) is amended—</text>
<subparagraph id="id6CB88C017C314E278482BFD5090EABAB"><enum>(A)</enum><text>by striking
<quote>2009 and 2010</quote> and inserting <quote>2010 and 2011</quote>;
and</text>
</subparagraph><subparagraph id="id709106D5825746C68A722F51FE6ECDAE"><enum>(B)</enum><text>by striking
<quote>October 1, 2010, and ending December 31, 2010</quote> and inserting
<quote>October 1, 2011, and ending December 31, 2011</quote>.</text>
</subparagraph></paragraph><paragraph id="id543A0D02771548659A3F1E38BA38F02F"><enum>(7)</enum><text>Section 277(c) of
the Trade Act of 1974 (19 U.S.C. 2371f(c)) is amended—</text>
<subparagraph id="idC2F448DD56E342CD991AE9326C5E83BD"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="id03D523548B514FFD9EAEABDEF17F229A"><enum>(i)</enum><text>by
striking <quote>2009 and 2010</quote> and inserting <quote>2010 and
2011</quote>; and</text>
</clause><clause id="idC89C06A94D624D8DA70F150A28155914"><enum>(ii)</enum><text>by
striking <quote>October 1, 2010, and ending December 31, 2010</quote> and
inserting <quote>October 1, 2011, and ending December 31, 2011</quote>;
and</text>
</clause></subparagraph><subparagraph id="id30B315F1E008478CBEB5C3A472ADCB07"><enum>(B)</enum><text>by striking
paragraph (2) and redesignating paragraph (3) as paragraph (2).</text>
</subparagraph></paragraph><paragraph commented="no" id="id33B78EBC369E4524AFA01814894CFDF0"><enum>(8)</enum><text>Section 278(e) of
the Trade Act of 1974 (19 U.S.C. 2372(e)) is amended by striking
<quote>2011</quote> and inserting <quote>2012</quote>.</text>
</paragraph><paragraph commented="no" id="idB4BD491786A648ACBAA72A6A8BE3709B"><enum>(9)</enum><text>Section
279A(h)(2) of the Trade Act of 1974 (19 U.S.C. 2373(h)(2)) is amended by
striking <quote>2011</quote> and inserting <quote>2012</quote>.</text>
</paragraph><paragraph id="idFB0E2B0F6537475F9C2D5E7CCE92F2A1"><enum>(10)</enum><text>Section 279B(a)
of the Trade Act of 1974 (19 U.S.C. 2373a(a)) is amended—</text>
<subparagraph id="id9EEA3647B6E94C548AB645ECF578D470"><enum>(A)</enum><text>by striking
<quote>2009 and 2010</quote> and inserting <quote>2010 and 2011</quote>;
and</text>
</subparagraph><subparagraph id="idC9FB415F4A474345948D77B393E9D10F"><enum>(B)</enum><text>by striking
<quote>October 1, 2010, and ending December 31, 2010</quote> and inserting
<quote>October 1, 2011, and ending December 31, 2011</quote>.</text>
</subparagraph></paragraph><paragraph id="idFF39589EEA0147BFB5B39CF64C1EA5D3"><enum>(11)</enum><text>Section 285 of
the Trade Act of 1974 (19 U.S.C. 2271 note) is amended by striking
<quote>2010</quote> each place it appears and inserting
<quote>2011</quote>.</text>
</paragraph><paragraph id="id2ECCBB0E9D894C5780377ADB2B9B1397"><enum>(12)</enum><text>Section 298(a)
of the Trade Act of 1974 (19 U.S.C. 2401g(a)) is amended—</text>
<subparagraph id="idD12CF6684C39449AA0AFEF4E00170EA3"><enum>(A)</enum><text>by striking
<quote>2009 and 2010</quote> and inserting <quote>2010 and 2011</quote>;
and</text>
</subparagraph><subparagraph id="idA690DEEB4B3B4BD8997F9EE21DC0595E"><enum>(B)</enum><text>by striking
<quote>October 1, 2010, and ending December 31, 2010</quote> and inserting
<quote>October 1, 2011, and ending December 31, 2011</quote>.</text>
</subparagraph></paragraph><paragraph id="idEB3AAD84DFF24BAB827AA50FB0007098"><enum>(13)</enum><text>The table of
contents for the Trade Act of 1974 is amended by striking the item relating to
section 235 and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id01D7332589DF4F1EB9ACA13E711DF52C" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 235. Employment and case
management
services.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id034863F30BC14AFFB5E398CF29601AEA"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on
January 1, 2011.</text>
</subsection></section></subtitle><subtitle id="idC65F6677A49F42ACAD13E0C06EBD86D6"><enum>C</enum><header>Extension of
health coverage improvement</header>
<section id="id00170C1269AD4C9A972A8F36468D675A"><enum>631.</enum><header>Improvement of
the affordability of the credit</header>
<subsection id="idDAEC5BEF2B034821B926E539E68A78A7"><enum>(a)</enum><header>In
general</header><text>Section 35(a) of the Internal Revenue Code of 1986 is
amended by striking <quote>January 1, 2011</quote> and inserting <quote>January
1, 2012</quote>.</text>
</subsection><subsection id="idE2D238F8BA4D43E9974D320A506BD1B9"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 7527(b) of such Code is amended by striking
<quote>January 1, 2011</quote> and inserting <quote>January 1,
2012</quote>.</text>
</subsection><subsection id="idF069AFC07DE449F4AE81BCB8B1E6D239"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to coverage
months beginning after the date of the enactment of this Act.</text>
</subsection></section><section id="id1752BD43C7E44E3091EAA392AF5CCFB4"><enum>632.</enum><header>Payment for
the monthly premiums paid prior to commencement of the advance payments of
credit</header>
<subsection id="id299E70D446D84F20A4E44DE54B458037"><enum>(a)</enum><header>In
general</header><text>Section 7527(e) of the Internal Revenue Code of 1986 is
amended by striking <quote>January 1, 2011</quote> and inserting <quote>January
1, 2012</quote>.</text>
</subsection><subsection id="id86A9005CCC804A138C2779C0F0DDA460"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to coverage
months beginning after the date of the enactment of this Act.</text>
</subsection></section><section id="id042A3B00B9864194A9D6CC9CC3FC7957"><enum>633.</enum><header>TAA recipients
not enrolled in training programs eligible for credit</header>
<subsection id="id9D924D5288FE47B9B8F3628686DA242B"><enum>(a)</enum><header>In
general</header><text>Section 35(c)(2)(B) of the Internal Revenue Code of 1986
is amended by striking <quote>January 1, 2011</quote> and inserting
<quote>January 1, 2012</quote>.</text>
</subsection><subsection id="id988206C068394B12B5D73C2298AC582D"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to coverage
months beginning after the date of the enactment of this Act.</text>
</subsection></section><section id="idD00C6E3A1A674C0183FAA4768AFCAED7"><enum>634.</enum><header>TAA
pre-certification period rule for purposes of determining whether there is a
63-day lapse in creditable coverage</header>
<subsection id="id2D910C1B085F45BDBF5853149D03EF1B"><enum>(a)</enum><header>IRC
amendment</header><text>Section 9801(c)(2)(D) of the Internal Revenue Code of
1986 is amended by striking <quote>January 1, 2011</quote> and inserting
<quote>January 1, 2012</quote>.</text>
</subsection><subsection id="id77797B3A76AB46B19EB0BAD20BDE6787"><enum>(b)</enum><header>ERISA
amendment</header><text>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
<quote>January 1, 2011</quote> and inserting <quote>January 1,
2012</quote>.</text>
</subsection><subsection id="id80F872D647BE4E419A12A20795BBA1F6"><enum>(c)</enum><header>PHSA
amendment</header><text>Section 2701(c)(2)(C) of the Public Health Service Act
(42 U.S.C. 300gg(c)(2)(C)) is amended by striking <quote>January 1,
2011</quote> and inserting <quote>January 1, 2012</quote>.</text>
</subsection><subsection id="id44C6DEC75EBC4F809158098D07552946"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to plan
years beginning after the date of the enactment of this Act.</text>
</subsection></section><section id="idE703CBF60860425CA9CB8B4C3B26029A"><enum>635.</enum><header>Continued
qualification of family members after certain events</header>
<subsection id="id3EC8E1CC40E74909AC605D47A6131D3F"><enum>(a)</enum><header>In
general</header><text>Section 35(g)(9) of the Internal Revenue Code of 1986 is
amended by striking <quote>January 1, 2011</quote> and inserting <quote>January
1, 2012</quote>.</text>
</subsection><subsection id="idFFBE5924B158417596DFE86F3313CB88"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 173(f)(8) of the Workforce Investment Act of
1998 (29 U.S.C. 2918(f)(8)) is amended by striking <quote>January 1,
2011</quote> and inserting <quote>January 1, 2012</quote>.</text>
</subsection><subsection id="id7650275B7A1943A1885CB4FDB305EFD9"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to months
beginning after the date of the enactment of this Act.</text>
</subsection></section><section id="idB7708AB0E5C641638DF5A81F0772385E"><enum>636.</enum><header>Extension of
COBRA benefits for certain TAA-eligible individuals and PBGC
recipients</header>
<subsection id="id0CF5E3725DC3477898ECCE5A78C84301"><enum>(a)</enum><header>ERISA
amendments</header>
<paragraph id="id2CE66CC09ED64B1C910786B032A88B84"><enum>(1)</enum><header>PBGC
recipients</header><text>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
<quote>December 31, 2010</quote> and inserting <quote>December 31,
2011</quote>.</text>
</paragraph><paragraph id="id7015F577457F47C39ECC96E53D424533"><enum>(2)</enum><header>TAA-eligible
individuals</header><text>Section 602(2)(A)(vi) of such Act (29 U.S.C.
1162(2)(A)(vi)) is amended by striking <quote>December 31, 2010</quote> and
inserting <quote>December 31, 2011</quote>.</text>
</paragraph></subsection><subsection id="idBDD83F00CD6542E78F7F039A27329340"><enum>(b)</enum><header>IRC
amendments</header>
<paragraph id="id8FF259AF3A25436FB5C41EEBC247B529"><enum>(1)</enum><header>PBGC
recipients</header><text>Section 4980B(f)(2)(B)(i)(V) of the Internal Revenue
Code of 1986 is amended by striking <quote>December 31, 2010</quote> and
inserting <quote>December 31, 2011</quote>.</text>
</paragraph><paragraph id="id6087AA15645A48539378245D9C27B627"><enum>(2)</enum><header>TAA-eligible
individuals</header><text>Section 4980B(f)(2)(B)(i)(VI) of such Code is amended
by striking <quote>December 31, 2010</quote> and inserting <quote>December 31,
2011</quote>.</text>
</paragraph></subsection><subsection id="idBE02B49A58154D34A2D0CE2CCBA8C448"><enum>(c)</enum><header>PHSA
amendments</header><text>Section 2202(2)(A)(iv) of the Public Health Service
Act (42 U.S.C. 300bb-2(2)(A)(iv)) is amended by striking <quote>December 31,
2010</quote> and inserting <quote>December 31, 2011</quote>.</text>
</subsection><subsection id="id6B58453E508642C59F0790F82536A1BC"><enum>(d)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><section id="idF6444C76DDAB439FAB843AA6F755F8A7"><enum>637.</enum><header>Addition of
coverage through voluntary employees' beneficiary associations</header>
<subsection id="id44F751CB78F44F129EFDC49873D75FFE"><enum>(a)</enum><header>In
general</header><text>Section 35(e)(1)(K) of the Internal Revenue Code of 1986
is amended by striking <quote>January 1, 2011</quote> and inserting
<quote>January 1, 2012</quote>.</text>
</subsection><subsection id="id42BD04FBE2DF4A3A9188ED09F226C567"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to coverage
months beginning after the date of the enactment of this Act.</text>
</subsection></section><section id="idA7B1619692A7421585C46A8CB7633E60"><enum>638.</enum><header>Notice
requirements</header>
<subsection id="idFDCB9E2A852C450CAA8B1415A59089AD"><enum>(a)</enum><header>In
general</header><text>Section 7527(d)(2) of the Internal Revenue Code of 1986
is amended by striking <quote>January 1, 2011</quote> and inserting
<quote>January 1, 2012</quote>.</text>
</subsection><subsection id="idB99BB9A494854AC9B59FCF35BD26EDED"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
certificates issued after the date of the enactment of this Act.</text>
</subsection></section></subtitle><subtitle id="id618FD98410E7441DA23B22A707F4472F"><enum>D</enum><header>TANF
provisions</header>
<section id="id5D7A25588D2147FCA303C6AB3B47DA0D"><enum>641.</enum><header>Extension of
Temporary Assistance for Needy Families and related programs</header>
<subsection id="id414760E93220471AA43EBFF3EFF6201F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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
<quote>September 30, 2012</quote> for <quote>September 30, 2011</quote>. 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—</text>
<paragraph id="id817610A6A0F243ECB80AA7B4C4FE6317"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="idF0D0424363074B62B9120990DFA22927"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="id030C9588CBBC47D384F8137E35C6E842"><enum>(3)</enum><text display-inline="yes-display-inline">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—</text>
<subparagraph id="idE0464E5CB0F0454087066221AADC7B68"><enum>(A)</enum><text display-inline="yes-display-inline">the total amount appropriated for fiscal
year 2011 shall not exceed $292,550,000, and</text>
</subparagraph><subparagraph id="id5C6DF73F96EF46CA88D59D4ECBAAD579"><enum>(B)</enum><text>the total amount
appropriated for fiscal year 2012 shall not exceed $612,000,000.</text>
</subparagraph></paragraph></subsection><subsection id="idB36C763CFABA4A3ABC08ADCB519E1A0E"><enum>(b)</enum><header>Healthy
marriage promotion and responsible fatherhood grants</header><text>Section
403(a)(2) of the Social Security Act (42 U.S.C. 603(a)(2)) is amended—</text>
<paragraph id="idED0D413D298C4DA4971BE9E67CB0A97D"><enum>(1)</enum><text>in subparagraph
(A)(iii),</text>
<subparagraph id="id1242733CE5194D0E9269CE9A590CF7C9"><enum>(A)</enum><text>by striking
subclause (III) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id3AE0F974DC03434BB41BF450697FD96F" style="OLC">
<subclause id="id0AE836D9FE3547EFA99E0685679CF581"><enum>(III)</enum><text>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.</text>
</subclause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id434E57C7438343099EB1452BED5C47BC"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id4FB9FD8C04B84296A0124B9B399150DB" style="OLC">
<subclause id="id7CAD907A935E496AAA611CF9F7C5648A"><enum>(IX)</enum><text>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.</text>
</subclause><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idA6C34335EBCD4044956CEA7A61E333E0"><enum>(2)</enum><text>in subparagraph
(C)(i), by striking <quote>$50,000,000</quote> and inserting
<quote>$75,000,000</quote>;</text>
</paragraph><paragraph id="idD31B50F304B44EC3A9F78E728A2DD4F9"><enum>(3)</enum><text>by striking
subparagraph (D) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idED56BC2539814C0FBABE7AE654A1F4C2" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="idF1D96A4A48CB47E48DEE8A83D56282E8"><enum>(D)</enum><header display-inline="yes-display-inline">Appropriation</header><text display-inline="yes-display-inline">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—</text>
<clause id="id285D595CDD8B4EAE9B51601072710F71"><enum>(i)</enum><text>$75,000,000 for
awarding funds for the purpose of carrying out healthy marriage promotion
activities; and</text>
</clause><clause id="id63F727C39D624B359383A49D9F5CB0E0"><enum>(ii)</enum><text>$75,000,000 for
awarding funds for the purpose of carrying out activities promoting responsible
fatherhood.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="idB6FAE0441A2F4AE18EC18C2D0A2A2918"><enum>(4)</enum><text>in subparagraph
(A)(ii), in the matter preceding subclause (I), by inserting <quote>(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)</quote> after <quote>an application</quote>.</text>
</paragraph></subsection><subsection id="id348478F06A6248EEBA8CE9ADCB08E3DF"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="idFD200FCBCFD249A3BB39418DC178FE0B"><enum>(1)</enum><text>Section
403(a)(3)(H)(ii) of the Social Security Act (42 U.S.C. 603(a)(3)(H)(ii)) is
amended by striking <quote>2010</quote> and inserting
<quote>2011</quote>.</text>
</paragraph><paragraph id="id88F60596AFBA481EB636CC2357DA3582"><enum>(2)</enum><text>Section
403(b)(3)(C)(ii) of the Social Security Act (42 U.S.C. 603(b)(3)(C)(ii)) is
amended by striking <quote>2010</quote> and inserting
<quote>2011</quote>.</text>
</paragraph><paragraph id="id1D76A89DD9E046309C6BBF09C7424146"><enum>(3)</enum><text>Section 409(a)(7)
of the Social Security Act (42 U.S.C. 609(a)(7)) is amended—</text>
<subparagraph id="idBF7B800242944DA69C9CDFD736867F6D"><enum>(A)</enum><text>in subparagraph
(A), by striking <quote>or 2011</quote> and inserting <quote>2011, or
2012</quote>; and</text>
</subparagraph><subparagraph id="id03F089C37DC74DFCA167A12BC7D26993"><enum>(B)</enum><text>in subparagraph
(B)(ii), by striking <quote>2010</quote> and inserting
<quote>2011</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="idDE1ADF4628404D6E89106D21F38A3532"><enum>(d)</enum><header>National Random
Sample Study of Child Welfare</header><text>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.</text>
</subsection><subsection id="id509687A02B244B7A82B53702933ED436"><enum>(e)</enum><header>Effective
date</header><text>This section and the amendments made by this section take
effect on October 1, 2010.</text>
</subsection></section><section commented="no" id="idB007DE22748245FD862C06078E3D97DE"><enum>642.</enum><header>Reinstatement
of Federal matching of State spending of child support incentive
payments</header>
<subsection commented="no" id="id4435637A412D4D8DA3757EA1C1E8FDAD"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Effective October 1,
2010, section 455(a)(1) of the Social Security Act (42 U.S.C. 655(a)(1)) is
amended by striking <quote>from amounts paid to the State under section 458
or</quote>.</text>
</subsection><subsection commented="no" id="idDCDDBD8531064AA3938D130C80BA1D47"><enum>(b)</enum><header>Sunset</header><text>Effective
October 1, 2011, section 455(a)(1) of the Social Security Act (42 U.S.C.
655(a)(1)) is amended by inserting <quote>from amounts paid to the State under
section 458 or</quote> before <quote>to carry out an agreement which it has
entered into pursuant to section 463</quote>.</text>
</subsection></section><section id="HCE41CEED624B494F8A9DFE9C70B54CD7" section-type="subsequent-section"><enum>643.</enum><header>Extension and
modification of the TANF Emergency Fund</header>
<subsection id="idD63B01A833784E40AA40D08E65ACE939"><enum>(a)</enum><header>Extension</header>
<paragraph id="H4029AC69F14C489C8CF4FF8A2B17E688"><enum>(1)</enum><header>In
general</header><text>Section 403(c) of the Social Security Act (42 U.S.C.
603(c)) is amended—</text>
<subparagraph id="H18880A96A27D484180AF2A637D1794E6"><enum>(A)</enum><text>in paragraph
(2)(A), by inserting <quote>, and for fiscal year 2011, $1,500,000,000</quote>
before <quote>for payment</quote>;</text>
</subparagraph><subparagraph id="HEF56E2FEA2E84A57ABCF800AB1AA9780"><enum>(B)</enum><text>by striking
paragraph (2)(B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HB3B5BDFE1EB94B799455AF8541549E54" style="OLC">
<subparagraph id="H0350ADCD42F94B7B95AF9CB0BDB38F22"><enum>(B)</enum><header>Availability and
use of funds</header>
<clause id="H165B22264B5D4CD8AFDFEAAE392D9DA7"><enum>(i)</enum><header>Fiscal years
2009 and 2010</header><text>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.</text>
</clause><clause id="H021168DB01DE48CE8C18E28AA4F6846D"><enum>(ii)</enum><header>Fiscal year
2011</header><text display-inline="yes-display-inline">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).</text>
</clause><clause id="HF72CEA08CA4F4A1984AC70A2C5EE2481"><enum>(iii)</enum><header>Reservation of
funds</header><text>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.</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H983337AAC2E34CE9A5E974DD944DF4DC"><enum>(C)</enum><text>in paragraph
(2)(C), by striking <quote>2010</quote> and inserting
<quote>2012</quote>;</text>
</subparagraph><subparagraph id="HE40DBAA71C8F4DC4B05EFA41C66304AC"><enum>(D)</enum><text>in paragraph
(3)—</text>
<clause id="H0D414EC94E014BAE9BD45FB9C09E222F"><enum>(i)</enum><text>in
clause (i) of each of subparagraphs (A), (B), and (C)—</text>
<subclause id="HA4FB6EF7DF7F469087C18B2D35D1C595"><enum>(I)</enum><text>by striking
<quote>year 2009 or 2010</quote> and inserting <quote>years 2009 through
2011</quote>;</text>
</subclause><subclause id="H3EA1592FD28B4B78A9D47F7245D30263"><enum>(II)</enum><text>by striking
<quote>and</quote> at the end of subclause (I);</text>
</subclause><subclause id="H5F6DBB6F2EC74DD1BB1242147469FDE7"><enum>(III)</enum><text>by striking the
period at the end of subclause (II) and inserting <quote>; and</quote>;
and</text>
</subclause><subclause id="HD5187EEB54B34AF991D8AB6365A46225"><enum>(IV)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HE4620AFDE3804197BC52A3EF914A0DF3" style="OLC">
<subclause id="HCE07BF511BA6478AA3FCEE9B4A5047BC"><enum>(III)</enum><text display-inline="yes-display-inline">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).</text>
</subclause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subclause></clause><clause id="H7EC3391446DC4F4C88AC535AADCECDE8"><enum>(ii)</enum><text>in
subparagraph (C), by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC181355C78C94DA7BC0B81690C9447CA" style="OLC">
<clause id="H2B330BD06FA7481FB32924FA9CFAC059"><enum>(iv)</enum><header>Limitation on
expenditures for subsidized employment</header><text display-inline="yes-display-inline">An expenditure for subsidized employment
shall be taken into account under clause (ii) only if the expenditure is used
to subsidize employment for—</text>
<subclause id="H41D500BF96D4470896CD949D6132CD75"><enum>(I)</enum><text>a member of a
needy family (without regard to whether the family is receiving assistance
under the State program funded under this part); or</text>
</subclause><subclause id="HCB63BAB7C81D46FC88880780239143E9"><enum>(II)</enum><text display-inline="yes-display-inline">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.</text>
</subclause></clause><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H90573969761F47D9B5760DDF0C1AC3FA"><enum>(E)</enum><text>by striking
paragraph (5) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H35242F4670314A95883ED05037AF275B" style="OLC">
<paragraph id="H7BF5292BEEC34D1DBA266C195FD893AF"><enum>(5)</enum><header>Limitations on
payments; adjustment authority</header>
<subparagraph id="H9E6EF45501FE43CB9AD6B407E236DE5A"><enum>(A)</enum><header>Fiscal years
2009 and 2010</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="H30CBFC0F8B244FDB809BB6D78114C546"><enum>(B)</enum><header>Fiscal year
2011</header><text>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.</text>
</subparagraph><subparagraph id="HA63A28743436498EAD19DE54A40EB102"><enum>(C)</enum><header>Adjustment
authority</header><text display-inline="yes-display-inline">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—</text>
<clause id="HF4B3A2008D5D4CE19818B23E7803ECEB"><enum>(i)</enum><text>specify priority
criteria for awarding grants to States during fiscal year 2011; and</text>
</clause><clause id="HAD3BCD50E4184362B13307DA07598222"><enum>(ii)</enum><text>adjust the
percentage limitation applicable under subparagraph (B) with respect to the
total amount payable to a single State for fiscal year
2011.</text>
</clause></subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H27DEFBB6BE3A41AD93FA78D22C4DCC3E"><enum>(F)</enum><text>in paragraph (6),
by inserting <quote>or for expenditures described in paragraph
(3)(C)(iv)</quote> before the period.</text>
</subparagraph></paragraph><paragraph id="HC326D225C83F4877A5A79888D36993E7"><enum>(2)</enum><header>Conforming
amendments</header><text display-inline="yes-display-inline">Section 2101 of
division B of the American Recovery and Reinvestment Act of 2009 (Public Law
111–5) is amended—</text>
<subparagraph id="H37C268CE45884E01901D733DD5D0470E"><enum>(A)</enum><text>in subsection
(a)(2)—</text>
<clause id="HA1B039D4969C4E7AA0C95DCB8A459AE0"><enum>(i)</enum><text>by
striking <quote>2010</quote> and inserting <quote>2011</quote>; and</text>
</clause><clause id="HAF6BEE292AE648AAB3520A7A5860D691"><enum>(ii)</enum><text>by
striking all that follows <quote>repealed</quote> and inserting a period;
and</text>
</clause></subparagraph><subparagraph id="HAF83FE7C35924481B34103C7F36C2A01"><enum>(B)</enum><text>in subsection
(d)(1), by striking <quote>2010</quote> and inserting
<quote>2011</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="id36D259E90B6148D68B61DDF1FE1B78CE"><enum>(b)</enum><header>Modification of
grant requirements</header>
<paragraph commented="no" id="id4B214E944738401688FB0D0F5332E374"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<subparagraph commented="no" id="id46A3217BC73A4F88AC7B4B7F2B7E7903"><enum>(A)</enum><text>in paragraph
(3)(A)—</text>
<clause commented="no" id="idB040772F5EA94C299E759E8C3DCC83E2"><enum>(i)</enum><text>by striking
<quote><header-in-text level="subparagraph" style="OLC">related to caseload
increases</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="subparagraph" style="OLC">related to increased
expenditures</header-in-text></quote>;</text>
</clause><clause commented="no" id="id6C9310FAE945405894A85A48C141600C"><enum>(ii)</enum><text>by striking
clause (ii) and redesignating clause (iii) as clause (ii); and</text>
</clause><clause commented="no" id="id3B130E1D674849AABA4C505079E51EC5"><enum>(iii)</enum><text>by striking
<quote>each State that</quote> and all that follows in clause (i) and inserting
<quote>each State that requests a grant under this subparagraph for the
quarter, to the extent provided in clause (ii)</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="idAC720FCDEE7E4B54BAA2DCEA0E682D82"><enum>(B)</enum><text>in paragraph (4),
by striking <quote>the caseload of a State and</quote>; and</text>
</subparagraph><subparagraph commented="no" id="idA6659A15E8F84BF4875A781A9A8AEEB9"><enum>(C)</enum><text>in paragraph
(9)—</text>
<clause commented="no" id="id9F1879D23B33411FBB4D163E67FE283B"><enum>(i)</enum><text>by striking
subparagraph (A) and redesignating subparagraphs (B) and (C) as subparagraphs
(A) and (B), respectively; and</text>
</clause><clause commented="no" id="idA08E5305E84841179E2479BD94F334F1"><enum>(ii)</enum><text>by striking
<quote>The average monthly assistance caseload of the State.</quote> in clause
(ii)(I) and inserting <quote>The average quarterly total expenditures of the
State for basic assistance (as defined by the Secretary under paragraph
(3)(A)(ii)).</quote>.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="id3D627A70E4564900B5ABCBCEC77295F0"><enum>(2)</enum><header>Conforming
amendments</header><text>Effective October 1, 2010, section 407(b)(3) of the
Social Security Act (42 U.S.C. 607(b)(3)) is amended—</text>
<subparagraph commented="no" id="id723CEDE49F2240018E47E532F847A614"><enum>(A)</enum><text>by striking
<quote>(within the meaning of section 403(c)(9))</quote> in subparagraph
(A)(i); and</text>
</subparagraph><subparagraph commented="no" id="id192E956CCBAC46C9972B5748BA83DAF3"><enum>(B)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block act-name="" id="id20B32FFF3A3B4FF39A75F6C148157893" style="OLC">
<subparagraph id="id16EC0E88002B4BAFBA2DB18FEFD5D4B7"><enum>(C)</enum><header>Average monthly
assistance caseload</header><text>For purposes of this paragraph, the term
<term>average monthly assistance caseload</term> 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).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="H7B030AA96AA74A6DA9108DEE68B8A4AF"><enum>(c)</enum><header>Program
guidance</header><text display-inline="yes-display-inline">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—</text>
<paragraph id="HFD54F071FF9B48D19A8E641B733482B6"><enum>(1)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H82DB3BE15D6A49BB8414A39ADAD34FB5"><enum>(2)</enum><text>the median wage in
the jurisdiction.</text>
</paragraph></subsection></section><section commented="no" id="id56A8C1659EBC498EACFE48EF7600EDCF"><enum>644.</enum><header>Modifications
to TANF data reporting</header>
<subsection commented="no" id="id884FA0F58AE641B4A2120D6A266597EA"><enum>(a)</enum><header>Measurement of
work activities</header><text>Section 407(i)(1)A)(i) of the Social Security Act
(42 U.S.C. 607(i)(1)(A)(i)) is amended—</text>
<paragraph commented="no" id="id1A8BD7911506446E8BC88DE8260AAF54"><enum>(1)</enum><text>by striking
<quote>and</quote> at the end of subclause (III);</text>
</paragraph><paragraph commented="no" id="id4B7D2F845FC64D4596458CD36CE52356"><enum>(2)</enum><text>by striking the
period at the end of subclause (IV) and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph commented="no" id="id128AFF32847E43E5878C6CAC3F73C46C"><enum>(3)</enum><text>by adding at the
end the following new subclause:</text>
<quoted-block act-name="" id="idF32C8EC1251C4D32B72AC6848AA53F1D" style="OLC">
<subclause id="id0B0739E0596F41509C14C49F94345D11"><enum>(V)</enum><text>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).</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="idB436AD1283FF4F55B1DCDB051AE4E4BB"><enum>(b)</enum><header>Measurement of
TANF spending on benefits and services</header><text>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.</text>
</subsection><subsection id="id41E70787519B4D1C8D3B981A7F52101F"><enum>(c)</enum><header>Additional
reports by states</header><text>Section 411 of the Social Security Act (42
U.S.C. 611) is amended—</text>
<paragraph id="id1B62458AB0BF472A9C66CC1147102BC6"><enum>(1)</enum><text>by redesignating
subsection (b) as subsection (c); and</text>
</paragraph><paragraph id="id453E4D8DBECC45A9959FB476B1F50C5B"><enum>(2)</enum><text>by inserting
after subsection (a) the following:</text>
<quoted-block display-inline="no-display-inline" id="id5F8719C1D7EA4B35A8E56F9DE7A8A70A" style="OLC">
<subsection id="id11DB33E401A0440CB6DBF2C2162C6F23"><enum>(b)</enum><header>Annual reports
on program characteristics</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id3DE13AF7CD6A4507893540B81CA09B97"><enum>(d)</enum><header>Description of
State assistance programs</header><text>Section 402(a)(1)(B) (42 U.S.C.
602(a)(1)(B)) is amended by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="id5EE82E90F8A64B3CBBDDE26E0D45BC7F" style="OLC">
<clause id="idD9A0F3C88BCE4F849A261D9AC176B226"><enum>(v)</enum><text>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—</text>
<subclause id="idBA8A6111531D43989AD265D3E13E55A2"><enum>(I)</enum><text>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;</text>
</subclause><subclause id="idD673728D66C54526967AF2DFBAD609C2"><enum>(II)</enum><text>the amount of
assistance provided to needy families, and the methodology for determining
assistance amounts; and</text>
</subclause><subclause id="id80662261D5C54D8797BED93D3B2C908B"><enum>(III)</enum><text>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.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idC756524513B44849A133F1F571FEB9F2"><enum>645.</enum><header>State court
improvement program</header>
<subsection id="idDECA9E5CB3EE4AEA952EFCE07C90C3B6"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 438 of the
Social Security Act (42 U.S.C. 629h) is amended—</text>
<paragraph id="id88A2219CBC2F4BF989BC3FA1756DBABE"><enum>(1)</enum><text>by striking
<quote>2010</quote> in subsection (c)(2)(A) and inserting
<quote>2011</quote>;</text>
</paragraph><paragraph id="id7FB0E45ED8EF437FBE3BB1F78F6C46E3"><enum>(2)</enum><text>by adding at the
end of subsection (e) the following flush sentence: <quote>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).</quote>.</text>
</paragraph></subsection><subsection id="idB1E0DB95CC2E45E596B3B59635391D25"><enum>(b)</enum><header>Appropriations</header><text>Effective
October 1, 2011, section 436 of the Social Security Act (42 U.S.C. 629f) is
amended—</text>
<paragraph id="id9737FD858FB540AAA7F8A28075287C27"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="id5A2D15BDB5FE4171B211816A71EAE01B"><enum>(A)</enum><text>by striking
<quote>2011</quote> and inserting <quote>2010</quote>; and</text>
</subparagraph><subparagraph id="idC563DB816E9045D8A2C75594EC808810"><enum>(B)</enum><text>by inserting
before the period the following: <quote>, and $365,000,000 for fiscal year
2011</quote>; and</text>
</subparagraph></paragraph><paragraph id="idE866CF57E63944769A22DD454BDE29D2"><enum>(2)</enum><text>by striking
<quote>$10,000,000</quote> in subsection (b)(2) and inserting
<quote>$30,000,000</quote>.</text>
</paragraph></subsection></section></subtitle><subtitle id="id4552E61F43A3414881E939D20907A91E"><enum>E</enum><header>Unemployment
Compensation Program Integrity</header>
<section id="ID229477a6505c465794447158ea2b4840"><enum>651.</enum><header>Permissible
uses of unemployment fund moneys for program integrity purposes</header>
<subsection id="ID1160c1430a574ba6afbe333d81102701"><enum>(a)</enum><header>Withdrawal
standard in the internal revenue code</header><text>Section 3304(a)(4) of the
Internal Revenue Code of 1986 is amended—</text>
<paragraph id="ID6320c0b831904904bb0de5378a90b04f"><enum>(1)</enum><text>in subparagraph
(F), by striking <quote>and</quote> at the end; and</text>
</paragraph><paragraph id="IDf9e0ed80bdb448f2880d7615788dc49e"><enum>(2)</enum><text>by inserting
after subparagraph (G) the following new subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="id4DE9339CD6D64D77987CEF0F7264BCB0" style="OLC">
<subparagraph id="ID9193e3c197ee41a4a38cb99c3773ca41"><enum>(H)</enum><text>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—</text>
<clause id="ID77cbe6b01a504ec783bbde743587b161"><enum>(i)</enum><text>the payment of
costs of deterring, detecting, and collecting erroneous payments to
individuals;</text>
</clause><clause id="IDba71468a46d14812b2c27c629d9556fd"><enum>(ii)</enum><text>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</text>
</clause><clause id="ID8c64282b75154ced9c0a0b2c3e17ac17"><enum>(iii)</enum><text>payment to the
Secretary of the Treasury to the credit of the State’s account in the
Unemployment Trust Fund; and</text>
</clause></subparagraph><subparagraph id="IDce4511205a1347329f97f4a8a8221853"><enum>(I)</enum><text>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);</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID9ba6f2e4ce404810a2b1f1ee0b116e4b"><enum>(b)</enum><header>Definition of
unemployment fund</header><text>Section 3306(f) of the Internal Revenue Code of
1986 is amended by striking all that follows <quote>(exclusive of expenses of
administration)</quote> and inserting <quote>, except as otherwise provided in
section 3304(a)(4) of the Social Security Act or any other provision of Federal
law.</quote>.</text>
</subsection><subsection id="ID8576d461b92746e1b1d3ab059d2f291b"><enum>(c)</enum><header>Withdrawal
standard in Social Security Act</header><text>Section 303(a)(5) of the Social
Security Act (42 U.S.C. 503(a)(5)) is amended by striking all that follows
<quote>payment of unemployment compensation, exclusive of expenses of
administration,</quote> and inserting <quote>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</quote>.</text>
</subsection><subsection id="ID1a398eb1bbe447e5a1a3a24fd406821c"><enum>(d)</enum><header>Immediate
deposit requirements</header>
<paragraph id="ID8d31915dacb24350ac276147206bc96b"><enum>(1)</enum><header>Internal
revenue code requirement</header><text>Paragraph (3) of section 3304(a) of the
Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id4E1EE2B59E78459A9ACE53E205EA228B" style="OLC">
<paragraph id="IDdadc52a47e60492eabfc6aae7d776ad5"><enum>(3)</enum><text>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—</text>
<subparagraph id="IDb01dbc380101403fad840e10dfe1fe71"><enum>(A)</enum><text>refunds of sums
erroneously paid into the unemployment fund of the State;</text>
</subparagraph><subparagraph id="ID51080dcb1afd4730ab71673ff6c0c03f"><enum>(B)</enum><text>refunds paid in
accordance with the provisions of section 3305(b); and</text>
</subparagraph><subparagraph id="ID1af80fcd6b9a4211aa0c65adf7258552"><enum>(C)</enum><text>amounts deposited
in a State fund pursuant to subparagraph (H) or (I) of paragraph
(4);</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID8ecf6d3cbfd047c8857f7e9c7f6c6935"><enum>(2)</enum><header>Social Security
Act requirement</header><text>Section 303(a)(4) of the Social Security Act (42
U.S.C. 503(a)(4)) is amended by striking <quote>(except for refunds</quote> and
all that follows through <quote>Federal Unemployment Tax Act</quote> and
inserting <quote>(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)</quote>.</text>
</paragraph></subsection><subsection id="IDb66439f85f8447668165923f79c875cc"><enum>(e)</enum><header>Application to
Federal payments</header>
<paragraph id="ID56557daaa37c45eea30226c1a4d6fc4a"><enum>(1)</enum><header>In
general</header><text>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).</text>
</paragraph><paragraph id="ID6675889a938143fe8dbb27d39b51bacd"><enum>(2)</enum><header>Definition</header><text>For
purposes of this subsection, the term <quote>unemployment compensation program
of the United States</quote> means—</text>
<subparagraph id="ID600abf8deba44d9db813e31433c7de84"><enum>(A)</enum><text>unemployment
compensation for Federal civilian employees under subchapter I of chapter 85 of
title 5, United States Code;</text>
</subparagraph><subparagraph id="ID89ff4e5ec49e45fda4aaa2a7fe816fc7"><enum>(B)</enum><text>unemployment
compensation for ex-servicemembers under subchapter II of chapter 85 of title
5, United States Code;</text>
</subparagraph><subparagraph id="IDc7a56c4b95a44a3698d3b71baf7b6477"><enum>(C)</enum><text>trade
readjustment allowances under sections 231 through 234 of the Trade Act of 1974
(19 U.S.C. 2291-2294);</text>
</subparagraph><subparagraph id="ID9e3c8f4f2e5e4d5cb73b44114eb96fc9"><enum>(D)</enum><text>disaster
unemployment assistance under section 410(a) of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5177(a));</text>
</subparagraph><subparagraph id="ID82e8665676ab4867a5ecca5c6bccadd9"><enum>(E)</enum><text>any Federal
temporary extension of unemployment compensation;</text>
</subparagraph><subparagraph id="ID7e1df0bbdf3945c8bc514390072fa861"><enum>(F)</enum><text>any Federal
program which increases the weekly amount of unemployment compensation payable
to individuals; and</text>
</subparagraph><subparagraph id="ID39e9ab91b5ca456fb7420e22a9532723"><enum>(G)</enum><text>any other Federal
program providing for the payment of unemployment compensation.</text>
</subparagraph></paragraph></subsection></section><section id="ID5cf98a8c4c764ccbb4a332999c82752d"><enum>652.</enum><header>Mandatory
penalty assessment on fraud claims</header>
<subsection id="IDf49bd1cfe4ba4d0c8dddf42ba556b5e3"><enum>(a)</enum><header>In
general</header><text>Section 303(a) of the Social Security Act (42 U.S.C.
503(a)) is amended—</text>
<paragraph id="ID0e42d44e4ff84ea8a6a7144924bb779a"><enum>(1)</enum><text>in paragraph
(10), by striking the period at the end of subparagraph (B) and inserting
<quote>; and</quote>; and</text>
</paragraph><paragraph id="ID1230a6a708154570bcf4130a8c12a0e9"><enum>(2)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id9C8E8FA57451437EB0D36D248C7709D6" style="OLC">
<paragraph id="ID7543b0f6609d4426bd30ffd19dc9d6e8"><enum>(11)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id48E31C70006D4BF5B77D84899E903734"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="IDccf259d51fc349e6b3644af3a996b106" indent="up1"><enum>(B)</enum><text>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).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDcf95467825444b7eab4a55f35f434d92"><enum>(b)</enum><header>Application to
Federal payments</header><text>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).</text>
</subsection><subsection id="IDc745b29ada824a93a4bc52b9c4dcbf7e"><enum>(c)</enum><header>Effective
date</header>
<paragraph id="idAE3A67A17C22421C8C54E2FFD7AA8F8C"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="idBDA6AAE919A94AA78434EB8489E02B55"><enum>(2)</enum><header>Authority</header><text>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).</text>
</paragraph></subsection></section><section id="IDadf045c3de4e44d1853c5891c015c6cb"><enum>653.</enum><header>Prohibition on
noncharging due to employer fault</header>
<subsection id="ID3ea15ae91bbc4553a508c4f9a4d5c0ca"><enum>(a)</enum><header>In
general</header><text>Section 3303 of the Internal Revenue Code is
amended—</text>
<paragraph id="idC83EFE37BF0E4847B193E5CB4FDFCC23"><enum>(1)</enum><text>by striking
subsections (f) and (g); and</text>
</paragraph><paragraph id="idF055C6BBFEBA46449B5619CA12635B5F"><enum>(2)</enum><text>by inserting
after subsection (e) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="idCB6027CD78B44704AE21CF9A0DE40391" style="OLC">
<subsection id="ID0f1ec70d39f64271b9d6e642d49a83c8"><enum>(f)</enum><header>Prohibition on
noncharging due to employer fault</header><text>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—</text>
<paragraph id="idF008F1F3C7A643F88A7535DB3E15CBAC"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="idA9D5528457EE46F5868BA6EC27919C59"><enum>(2)</enum><text>the State agency
determines that the employer or agent has established a pattern of failing to
respond timely or adequately to such
requests.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID368d278e83a8451eb4d334f6082a5af6"><enum>(b)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><section id="IDef6e52601a23472fb6162dc418923d35"><enum>654.</enum><header>Collection of
past-due, legally enforceable State debts</header>
<subsection id="id082DEB51C42B4CC4A88A40A9B00232AF"><enum>(a)</enum><header>Unemployment
compensation debts</header><text display-inline="yes-display-inline">Section
6402(f) of the Internal Revenue Code is amended—</text>
<paragraph id="id879CC88F3719440C8CFF3AA7C677294B"><enum>(1)</enum><text display-inline="yes-display-inline">in the heading, by striking
<quote><header-in-text level="subsection" style="OLC">Resulting from
fraud</header-in-text></quote>;</text>
</paragraph><paragraph id="id3E4187F38AE746148D2328FC8A77D1E7"><enum>(2)</enum><text display-inline="yes-display-inline">by striking paragraphs (3) and (8) and
redesignating paragraphs (4) through (7) as paragraphs (3) through (6),
respectively;</text>
</paragraph><paragraph id="id8CCCCB8425DE473D912D47475DAC5349"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (3), as so
redesignated—</text>
<subparagraph id="id9C75302D5B804D37B0E3996B255AD177"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking <quote>by
certified mail with return receipt</quote>;</text>
</subparagraph><subparagraph id="IDf9f97913a1134c8d923d6874ffbe008c"><enum>(B)</enum><text>in subparagraph
(B), by striking <quote>due to fraud</quote> and inserting <quote>is not a
covered unemployment compensation debt</quote>;</text>
</subparagraph><subparagraph id="ID378013733a5149eba661a2ba09138ba2"><enum>(C)</enum><text>in subparagraph
(C), by striking <quote>due to fraud </quote> and inserting <quote> is not a
covered unemployment compensation debt</quote>; and</text>
</subparagraph></paragraph><paragraph id="IDae4b5bc46ef34cf98aea28d059c4f2be"><enum>(4)</enum><text>in paragraph (4),
as so redesignated—</text>
<subparagraph id="idD29F8891C40141838851FCF13EF3A7AF"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause id="ID0c7351fc9d7443178f8dae724598e3ff"><enum>(i)</enum><text>by
inserting <quote>or the person’s failure to report earnings</quote> after
<quote>due to fraud</quote>; and</text>
</clause><clause id="ID7ac1ced40c484ebcbb619fb397c893ba"><enum>(ii)</enum><text>by
striking <quote>for not more than 10 years</quote>; and</text>
</clause></subparagraph><subparagraph id="ID8f07cf1f5d2146fb9a75f1e04cd58766"><enum>(B)</enum><text>in subparagraph
(B)—</text>
<clause id="IDbc6bdd5ae78348639bf9ac13a1b49c60"><enum>(i)</enum><text>by
striking <quote>due to fraud</quote>; and</text>
</clause><clause id="ID4bf968903b4148398908ad64ec8583ab"><enum>(ii)</enum><text>by
striking <quote>for not more than 10 years</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID67eb7c40929444e8a842c12071b94d9a"><enum>(b)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><section id="ID23c0199dcc2946b1a9dda40af6572f6a"><enum>655.</enum><header>Treatment of
short-time compensation programs</header>
<subsection id="ID827b6d8e0b6245d7ba2cf5d2384ab192"><enum>(a)</enum><header>Definition</header><text>Section
3306 of the Internal Revenue Code of 1986 is amended by adding at the end the
following new subsection:</text>
<paragraph id="id881E570329784391949730AB34E1E81A"><enum>(1)</enum><header>In
general</header>
<quoted-block display-inline="no-display-inline" id="id7D777DE503754F02B3498E0E6919B400" style="OLC">
<subsection id="ID51de289c3ad7484eb78ab26869ee69b0"><enum>(v)</enum><header>Short-time
compensation program</header><text>For purposes of this chapter, the term
<term>short-time compensation program</term> means a program under
which—</text>
<paragraph id="IDe2ef108a6cd149d1a8470209098c1078"><enum>(1)</enum><text>the participation
of an employer is voluntary;</text>
</paragraph><paragraph id="IDfb0b58f43d494c56a6d34b48937fabe8"><enum>(2)</enum><text>an employer
reduces the number of hours worked by employees in lieu of temporary
layoffs;</text>
</paragraph><paragraph id="ID359a093189094ccc9aae4bb47acde88e"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="IDe8471b5b41604d76bf8badd82c2d1092"><enum>(4)</enum><text>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;</text>
</paragraph><paragraph id="ID81f84d504ba34c86931e302803bfe58d"><enum>(5)</enum><text>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;</text>
</paragraph><paragraph id="IDcac75161b0a840a1b1b26fcd0d9d2e46"><enum>(6)</enum><text>eligible
employees may participate in an employer-sponsored training program to enhance
job skills if such program has been approved by the State agency;</text>
</paragraph><paragraph id="ID465da2061ada4e1d97bbc584e4ed75a1"><enum>(7)</enum><text>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;</text>
</paragraph><paragraph id="IDc237eba251df4e719d4f380c36dd911f"><enum>(8)</enum><text>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;</text>
</paragraph><paragraph id="IDb916fc9f50b148c889d0f9032186c7ea"><enum>(9)</enum><text>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</text>
</paragraph><paragraph id="ID8711ac948123417cba723dd587b1362e"><enum>(10)</enum><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDa12564ff13034bc78b96475186709a5a"><enum>(2)</enum><header>Effective
date</header>
<subparagraph id="id515E00EBEFF34A7B9356558E3C8B3FF0"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the amendment
made by paragraph (1) shall take effect on the date of the enactment of this
Act.</text>
</subparagraph><subparagraph id="idC33EE47E2F324BA0AA5EF4071F79A324"><enum>(B)</enum><header>Delay
permitted</header><text>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—</text>
<clause id="idFB71011F590C41AB803240AEF27C3E2C"><enum>(i)</enum><text>the
date the State changes its State law in order to be consistent with such
amendment; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id101D5DB68F1748BF9D1530DF5BB7129C"><enum>(ii)</enum><text>the date that is
2 years after the date of the enactment of this Act.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID745ca55179424fe09d7ebc0032bbf77a"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="ID3241aa7c06624ea6a6e0d4c61464123e"><enum>(1)</enum><header>Internal
Revenue Code of 1986</header><text>Subparagraph (E) of section 3304(a)(4) of
the Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id78B9BACD1C6148A18B981F621A08CC07" style="OLC">
<subparagraph id="IDaa9f5348ee2d464baf3087ff7cd2c634"><enum>(E)</enum><text>amounts may be
withdrawn for the payment of short-time compensation under a short-time
compensation program (as defined in section
3306(v));</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID0cbe05a002254120bd8136bbd0671fdb"><enum>(2)</enum><header>Unemployment
Compensation Amendments of 1992</header><text>Subsections (b) through (d) of
section 401 of the Unemployment Compensation Amendments of 1992 (26 U.S.C. 3304
note) are repealed.</text>
</paragraph></subsection></section><section id="IDc1f785b9c04c4566b5e98eacc9b04d73"><enum>656.</enum><header>State use of
compensating balances and interest earned on clearing account to pay associated
banking costs</header>
<subsection id="IDa0efcf451e844d78a7ad08ce1d8db505"><enum>(a)</enum><header>Immediate
deposit requirement</header><text>Section 3304(a)(3) of the Internal Revenue
Code of 1986, as amended by section 651(d)(1), is amended—</text>
<paragraph id="IDdf6f1aca76264b9d968c85732ab7ed8e"><enum>(1)</enum><text>in subparagraph
(B), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="IDf177939ae1394f129bcf002975698c09"><enum>(2)</enum><text>in subparagraph
(C), by inserting <quote>and</quote> after the semicolon at the end; and</text>
</paragraph><paragraph id="ID4011ec3a96154bfda8fb61ff19612aea"><enum>(3)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id4519858822E946339B4308D512D680F6" style="OLC">
<subparagraph id="ID6f42d77013ba4cff805c2ec42384c270"><enum>(D)</enum><text>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;</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID8f018ee869774439b9f403449abccf8f"><enum>(b)</enum><header>Withdrawal
standard</header><text>Section 3304(a)(4) of the Internal Revenue Code of 1986,
as amended by section 651(a), is amended—</text>
<paragraph id="ID7e6bcd963ba842a5831abeb925e48a00"><enum>(1)</enum><text>in subparagraph
(H)(iii), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="ID7c574c8610604990b9e588ffc15e0f06"><enum>(2)</enum><text>in subparagraph
(I), by inserting <quote>and</quote> after the semicolon at the end; and</text>
</paragraph><paragraph id="IDa4fa5528906a4fe1a5c39629eb966e2e"><enum>(3)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id6B5D2C239D74461C9CD8A75B7C9CF2C2" style="OLC">
<subparagraph id="ID635305d76c264836a457f63dfccd96aa"><enum>(J)</enum><text>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;</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID34d2ada2192a4389a0a7ed88cacdedc5"><enum>(c)</enum><header>Conforming
amendment</header><text>Section 1201(a)(3) of the Social Security Act (42
U.S.C. 1321(a)(3)) is amended—</text>
<paragraph id="ID1b691a24630b4873becafab683179b12"><enum>(1)</enum><text>in subparagraph
(B), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="ID27b630a8fce245f1af746abb84bdc809"><enum>(2)</enum><text>in subparagraph
(C), by striking the period at the end and inserting <quote>, and</quote>;
and</text>
</paragraph><paragraph id="ID18dec4dd12404f20871d249b45f906fa"><enum>(3)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id48AD8D35461146D58E6A949D558E3AE6" style="OLC">
<subparagraph id="ID33cac57cbb2f40d0af86366d3e68d93d"><enum>(D)</enum><text>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).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="ID1dec2d78873643a1a7693acbc3731894"><enum>657.</enum><header>Reporting of
first day of earnings to directory of new hires</header>
<subsection id="ID54ce54c1995845d7b6be454f94d62025"><enum>(a)</enum><header>Addition of
requirement</header><text>Section 453A(b)(1)(A) of the Social Security Act (42
U.S.C. 653a(b)(1)(A)) is amended by inserting <quote>the date services for
remuneration were first performed by the employee,</quote> after <quote>of the
employee,</quote>.</text>
</subsection><subsection id="ID3044977c745c4641ac7404da76b6978d"><enum>(b)</enum><header>Conforming
amendment; reporting format and method</header><text>Section 453A(c) of the
Social Security Act (42 U.S.C. 653a(c)) is amended by inserting <quote>, to the
extent practicable,</quote> after <quote>Each report required by subsection (b)
shall</quote>.</text>
</subsection><subsection id="ID5976c8846b984a4bacffb242d2c38e0d"><enum>(c)</enum><header>Effective
date</header>
<paragraph id="ID91b687f29deb4511871741ef987377e1"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (2), the amendments made by this
section shall take effect 6 months after the date of the enactment of this
Act.</text>
</paragraph><paragraph id="ID36119841ba25429b80396334ee7a699f"><enum>(2)</enum><header>Compliance
transition period</header><text>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.</text>
</paragraph></subsection></section><section id="IDb283e042411249a7ba366a81ed409225"><enum>658.</enum><header>Deduction of
obligations for custodial parents</header>
<subsection id="IDd1afef9452fb49cabebf07fa6a4508c8"><enum>(a)</enum><header>Authorization
To deduct support for custodial parents from unemployment compensation</header>
<paragraph id="ID7315628caa6040909afee26647984a17"><enum>(1)</enum><header>In
general</header><text>Section 303(e) of the Social Security Act (42 U.S.C.
503(e)) is amended—</text>
<subparagraph id="ID483fb8b3da884e56b1210c065d72082c"><enum>(A)</enum><text>by striking
<quote>child support obligations</quote> each place it appears and inserting
<quote>support obligations</quote>; and</text>
</subparagraph><subparagraph id="IDf22bb6badff84f3aaeff9bd7580a2003"><enum>(B)</enum><text>in paragraph (1),
in the matter following subparagraph (B), by striking <quote>only includes
obligations</quote> and inserting <quote>is limited to obligations established
with respect to a child or a custodial parent of such child</quote>.</text>
</subparagraph></paragraph><paragraph id="IDdaf100d7ef5f40b489403d4c2d1c0f0f"><enum>(2)</enum><header>Technical
amendment</header><text>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 <quote>section
462(e)</quote> and inserting <quote>section 459(i)(5)</quote>.</text>
</paragraph></subsection><subsection id="IDd3dbbd92cae14a7aa0cfb8ab2b2a1234"><enum>(b)</enum><header>Effective
date</header>
<paragraph id="idE245D82508E04245B6D41DC7C6305332"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="id178FE6A58F964BB1AB9864DA310102C2"><enum>(2)</enum><header>Authority</header><text>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).</text>
</paragraph></subsection></section><section commented="no" id="ID48a3a200f1984406952a13bc3866b8ea"><enum>659.</enum><header>Advisory
Council on unemployment compensation</header>
<subsection commented="no" id="ID9f458f1ced42475994a45248b5191e21"><enum>(a)</enum><header>In
general</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="idC9A56B5F1CEA4DB4AB12A7AE6ADDA0DE" style="OLC">
<subsection commented="no" id="IDa36d78394285404997541fb26adeb1dd"><enum>(a)</enum><header>Establishment</header><text>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 <quote>Council</quote>).</text>
</subsection><subsection commented="no" id="ID832004daa4db4172b65197a497bbf730"><enum>(b)</enum><header>Function</header><text>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.</text>
</subsection><subsection commented="no" id="IDcf2d7f8d695946468eb0451e3a8fb9f0"><enum>(c)</enum><header>Members</header>
<paragraph commented="no" id="ID86aab28e13604231bf8d03a09dd905a2"><enum>(1)</enum><header>Presidential
appointments</header><text>Each Council shall consist of 9 members appointed by
the President.</text>
</paragraph><paragraph commented="no" id="ID13573c86eb0c42a8aad7a28e22dde9d0"><enum>(2)</enum><header>Vacancy</header><text>A
vacancy in any Council shall be filled by appointment in accordance with
paragraph (1).</text>
</paragraph><paragraph commented="no" id="ID74aa415209d9468f86c927b6489bfa5e"><enum>(3)</enum><header>Chairman</header><text>The
President shall designate a member of the Council to serve as its
Chairman.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="IDe41476b5218c481dbd7668908ce976d7"><enum>(b)</enum><header>Report</header><text>Subsection
(f) of section 908 of the Social Security Act (42 U.S.C. 1108 (f)) is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idFE059B6F93094BB983EDC361FCD18A54" style="OLC">
<subsection commented="no" id="IDc8f891e5b09c49c0848c599708f93fc2"><enum>(f)</enum><header>Report</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID923dbcc03f4e42ff8699cd61c18ace51"><enum>660.</enum><header>Amendment to
the Federal-State extended benefits program</header>
<subsection id="IDc781a16c2d724a6ea15cc535f9392caf"><enum>(a)</enum><header>In
general</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="id5787B1A987F747F4B8F80E3A0AE018B0" style="OLC">
<clause id="ID710f0e5109cb4eb8abfb357af7e2a1a7"><enum>(ii)</enum><text>the individual
maintains tangible evidence that he has engaged in such an effort during such
week; and</text>
</clause><clause id="IDb75351e42a344cf98d78b462379aed9a"><enum>(iii)</enum><text>the individual
provides such tangible evidence to the State agency upon request.</text>
</clause><quoted-block-continuation-text quoted-block-continuation-text-level="subparagraph">The
Secretary shall prescribe requirements for State agencies to randomly audit a
minimum number of claims each week to determine compliance with this
subparagraph</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDca37e7dcbadf43d1b657c41dd965d8d7"><enum>(b)</enum><header>Effective
date</header>
<paragraph id="id856A2956F1434353A919BA780477430C"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="idB6DFB1722831449FBCD1F8BC841897C4"><enum>(2)</enum><header>Authority</header><text>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).</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID6495f3dddc3b4efbbb3832d4d0f5337e" section-type="subsequent-section"><enum>661.</enum><header>Operating
instructions and regulations</header><text display-inline="no-display-inline">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.</text>
</section></subtitle><subtitle id="id7E26A29C7AC144789C8F8600A322089C"><enum>F</enum><header>Custom user
fees</header>
<section id="idA6EAC8DA06424C7B8B6C9BCA6B357CE7"><enum>665.</enum><header>Customs user
fees</header><text display-inline="no-display-inline">Section 13031(j)(3) of
the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(j)(3)) is amended—</text>
<paragraph id="id290E13E1F7454CDA93870AE36A75C231"><enum>(1)</enum><text>in subparagraph
(A), by striking <quote>December 10, 2018</quote> and inserting <quote>December
31, 2019</quote>; and</text>
</paragraph><paragraph id="idB6785E37B7BB4371B0BF76DE380877B6"><enum>(2)</enum><text>in subparagraph
(B)(i), by striking <quote>November 30, 2018</quote> and inserting
<quote>September 30, 2019</quote>.</text>
</paragraph></section></subtitle><enum>VII</enum><header>Transparency
requirements for foreign-held debt</header>
<section id="id190AC4A98C2040EEBFB4EF4397A80480" section-type="subsequent-section"><enum>701.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Foreign-Held Debt Transparency
and Threat Assessment Act</short-title></quote>.</text>
</section><section id="idFF66832C0A1746F89998E3C8E834FF2E"><enum>702.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="ID9c706e9ac6894292b3d70358b4be8114"><enum>(1)</enum><header>Appropriate
congressional committees</header><text>The term <term>appropriate congressional
committees</term> means the following:</text>
<subparagraph id="IDce814dd2a13c4073aba6819b5f88d27d"><enum>(A)</enum><text>The Committee on
Armed Services, the Committee on Foreign Relations, the Committee on Finance,
and the Committee on the Budget of the Senate.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID4b5bd32d283e41929e908b5fb8d8ce2c"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="idCAE8366D7BAB464083ABEF2604A91216"><enum>(2)</enum><header>Debt
instruments of the United States</header><text display-inline="yes-display-inline">The term <term>debt instruments of the
United States</term> 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.</text>
</paragraph></section><section id="ID2b7fe49bf5ee42b9a5072e21c4058819"><enum>703.</enum><header>Sense of
Congress</header><text display-inline="no-display-inline">It is the sense of
Congress that—</text>
<paragraph id="ID05573f50611e47e1987b1077faa74ff5"><enum>(1)</enum><text>the growing
Federal debt of the United States has the potential to jeopardize the national
security and economic stability of the United States;</text>
</paragraph><paragraph id="ID2abaafe963824903b5714716844148e5"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="ID1503576958934b07ac8fae5ee492686b"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="id68744D6234234760B9DE64121A787327"><enum>(4)</enum><text>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;</text>
</paragraph><paragraph id="ID82e1e16ad37142f49d7040d33e230959"><enum>(5)</enum><text>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;</text>
</paragraph><paragraph id="ID4873bfef38134cda9c65ba4a8bec41ad"><enum>(6)</enum><text>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;</text>
</paragraph><paragraph id="ID73c6b1e274a94af4ac358a12109d5f1d"><enum>(7)</enum><text>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</text>
</paragraph><paragraph id="ID2c6f02b327b6412e9daa2310c794a420"><enum>(8)</enum><text>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.</text>
</paragraph></section><section id="IDb3bd1070df9a42109adf7fd686c32e84"><enum>704.</enum><header>Quarterly
report on risks posed by foreign holdings of debt instruments of the United
States</header>
<subsection id="IDa09a5f089a0d461090e07331d80dec4f"><enum>(a)</enum><header>Quarterly
report</header><text>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.</text>
</subsection><subsection id="ID3c2d677f9b63406f89ea30d3f2004357"><enum>(b)</enum><header>Matters To Be
included</header><text>Each report submitted under this section shall include
the following:</text>
<paragraph id="IDf772fea3634349c19744d65d8a6efce0"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="ID3523a536d37c4c2599c5ee12d1846f74"><enum>(2)</enum><text>The country of
domicile of all foreign creditors who hold debt instruments of the United
States.</text>
</paragraph><paragraph id="IDc59f6319c19a42be905812dc00d6c258"><enum>(3)</enum><text>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.</text>
</paragraph><paragraph id="IDd2b171b6024043ea89dcb19079c0aa16"><enum>(4)</enum><text>For each foreign
country listed in paragraph (3)—</text>
<subparagraph id="ID0c0a7d3ca5c841eb8a46466f00a7421d"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="ID06bf9cef51e540ffb64dc6d6cf4ca7bf"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="ID0077f01b97a941de8ed1dd9705a8c523"><enum>(C)</enum><text>a specific
determination of whether the level of risk identified under subparagraph (B) is
acceptable or unacceptable.</text>
</subparagraph></paragraph></subsection><subsection id="ID8d593585345a4fc7a781f0323d84b8b5"><enum>(c)</enum><header>Public
availability</header><text>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.</text>
</subsection></section><section id="id38E85EDC73B4494D96A4CB86B227702C"><enum>705.</enum><header>Annual report
on risks posed by the Federal debt of the United States</header>
<subsection id="id741AC5960B09458E8D28C44590788BBF"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection id="id02AF86007691449E8FAE9EA23E08DFD4"><enum>(b)</enum><header>Content of
report</header><text>Each report submitted under this section shall include the
following:</text>
<paragraph id="id566EE0344AE84E38B148621E6E399FF5"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="idC1691B71861D46A487958EE7B37545BF"><enum>(2)</enum><text>A specific
determination of whether the levels of risk identified under paragraph (1) are
sustainable.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0401D71404E24A48AA4CDEB9BEBF9A62"><enum>(3)</enum><text>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.</text>
</paragraph></subsection></section><section id="IDab9f9baf54204713a41264b394455dd8"><enum>706.</enum><header>Corrective
action to address unacceptable and unsustainable risks to United States
national security and economic stability</header><text display-inline="no-display-inline">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—</text>
<paragraph id="IDb079d7fb4e9f4051879f331767df60ab"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="ID65dcad0a95eb49258ce09574c27e2003"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="ID98aa0e6bce3a4d4cb950cc4456a0251b"><enum>(3)</enum><text>move
expeditiously to implement the plan in order to protect the long-term national
security and economic stability of the United States.</text>
</paragraph></section><enum>VIII</enum><header>Transparency
requirements for foreign-held debt</header>
<section id="idDCF33A90BC974E6EA18482DFD545ACCC" section-type="subsequent-section"><enum>801.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Foreign-Held Debt Transparency
and Threat Assessment Act</short-title></quote>.</text>
</section><section id="id6543A2842DF5472D97B1FBF74725B4AF"><enum>802.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="idB13F4FA901F1423B9DF81A4852707BAD"><enum>(1)</enum><header>Appropriate
congressional committees</header><text>The term <term>appropriate congressional
committees</term> means the following:</text>
<subparagraph id="id645F8AEF9A7946829D816D11A9344047"><enum>(A)</enum><text>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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD9E06E041E6440CF93A4A7456073F907"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="idF4F8BA240D9145E1B4A54BFD472776E8"><enum>(2)</enum><header>Debt
instruments of the United States</header><text display-inline="yes-display-inline">The term <term>debt instruments of the
United States</term> 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.</text>
</paragraph></section><section id="idCD505AC6ED5544088EE1618A3D31B53F"><enum>803.</enum><header>Sense of
Congress</header><text display-inline="no-display-inline">It is the sense of
Congress that—</text>
<paragraph id="idA78460450F8547359E1F077B2A5C9B8F"><enum>(1)</enum><text>the growing
Federal debt of the United States has the potential to jeopardize the national
security and economic stability of the United States;</text>
</paragraph><paragraph id="id609A08440E6941CDAD60D6D1C765B3DC"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="id487A568AC7C540CFA4E5DC33C5617D11"><enum>(3)</enum><text>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</text>
</paragraph><paragraph id="id29F13AB4DE174161ACD872EB974BED3B"><enum>(4)</enum><text>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.</text>
</paragraph></section><section id="id87DAF07FDAB240F6BE5B2D1A552DC745"><enum>804.</enum><header>Annual report
on risks posed by foreign holdings of debt instruments of the United
States</header>
<subsection id="idF71893F6013A4A1C8BFDB7DC7CDEF5FA"><enum>(a)</enum><header>Annual
report</header><text>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.</text>
</subsection><subsection id="idDB65A44B90974688BE74F54C72FC5295"><enum>(b)</enum><header>Matters To Be
included</header><text>Each report submitted under this section shall include
the following:</text>
<paragraph id="id2C441753339D4DD39272867AE3A66530"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="id364735336BF84B0F91907FF3AC3E45E5"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="id4ACFBCA955294FCFAEBF9AF66C1083DE"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><subsection id="idA7DA27F8BCBA46B68B36A7AE19684DED"><enum>(c)</enum><header>Public
availability</header><text>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.</text>
</subsection></section><section id="id9B63D835C2B6470DA73E25F30A92D250"><enum>805.</enum><header>Annual report
on risks posed by the Federal debt of the United States</header>
<subsection id="id812B3D9A407643489D4D7666174B1DA2"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection id="id591374C118994585913260E707A9F7B9"><enum>(b)</enum><header>Content of
report</header><text>Each report submitted under this section shall include the
following:</text>
<paragraph id="id57C421E0F3934659A2B23314E80819A0"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id30011B6E1F06425CBD1142B84428F2F7"><enum>(2)</enum><text>Specific
recommendations for reducing the levels of risk resulting from the Federal
debt.</text>
</paragraph></subsection></section><section id="idA78A399BFD894686A88B9E84791FD596"><enum>806.</enum><header>Corrective
action to address unacceptable risks to United States national security and
economic stability</header><text display-inline="no-display-inline">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—</text>
<paragraph id="id6B185B319D1F4F4CAD828F6DB72F10B9"><enum>(1)</enum><text>formulate a plan
of action to reduce such risk;</text>
</paragraph><paragraph id="idC3344E6357624D16A440069685A32A99"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="idE753FE1F98C1422CB093D22A47F5F56B"><enum>(3)</enum><text>move
expeditiously to implement the plan in order to protect the long-term national
security and economic stability of the United States.</text>
</paragraph></section><enum>IX</enum><header>Office of the
Homeowner Advocate</header>
<section id="idE131684B938C467F94DEB0529E307C23"><enum>901.</enum><header>Office of the
Homeowner Advocate</header>
<subsection id="ID266489bc4d7a409cb5764660c968e15f"><enum>(a)</enum><header>Establishment</header><text>There
is established in the Department of the Treasury an office to be known as the
<quote>Office of the Homeowner Advocate</quote> (in this title referred to as
the <quote>Office</quote>).</text>
</subsection><subsection id="IDcb7e5f609f294905a17ccc2aaf000a8b"><enum>(b)</enum><header>Director</header>
<paragraph id="ID0338c8669bab488e90329cf050f3bc57"><enum>(1)</enum><header>In
general</header><text>The Director of the Office of the Homeowner Advocate (in
this title referred to as the <quote>Director</quote>) 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.</text>
</paragraph><paragraph id="IDb9efa900f119459799aa49ec17b1ae1a"><enum>(2)</enum><header>Appointment</header><text>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.</text>
</paragraph><paragraph id="IDdc9cc835a6d34bcb80ae4f7a0ec8b269"><enum>(3)</enum><header>Qualifications</header><text>An
individual appointed under paragraph (2) shall have—</text>
<subparagraph id="IDf6b37a2a438447b39fb72992f55a8987"><enum>(A)</enum><text>experience as an
advocate for homeowners; and</text>
</subparagraph><subparagraph id="ID4a7051fc5e184b20b43d725ff74709ce"><enum>(B)</enum><text>experience
dealing with mortgage servicers.</text>
</subparagraph></paragraph><paragraph id="IDbf109141be014e67b07c5c3d3bb4faac"><enum>(4)</enum><header>Restriction on
employment</header><text>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.</text>
</paragraph><paragraph id="IDeed9accec83e4726bf6f0e8492af9d97"><enum>(5)</enum><header>Hiring
authority</header><text>The Director shall have the authority to hire staff,
obtain support by contract, and manage the budget of the Office of the
Homeowner Advocate.</text>
</paragraph></subsection></section><section id="ID684996c86ed84b3988795b8c4a829ea7"><enum>902.</enum><header>Functions of
the Office</header>
<subsection id="ID27cf821e04f94acb8c5865dde7f8ce33"><enum>(a)</enum><header>In
general</header><text>It shall be the function of the Office—</text>
<paragraph id="ID7fc96fe318c94e08a91ec02dca0ee17b"><enum>(1)</enum><text>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 <quote>Home
Affordable Modification Program</quote>)</text>
</paragraph><paragraph id="IDb5db2d64680144a2aaa803380059c604"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="ID99da5bfece3b47f9888a6a34abefee39"><enum>(3)</enum><text>to the extent
possible, to propose changes in the administrative practices of the Home
Affordable Modification Program, to mitigate problems identified under
paragraph (2);</text>
</paragraph><paragraph id="ID57a9056ca2df497ab68595064a50a99b"><enum>(4)</enum><text>to identify
potential legislative changes which may be appropriate to mitigate such
problems; and</text>
</paragraph><paragraph id="ID3f932a6773d64bc0a342a9640bfae279"><enum>(5)</enum><text>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—</text>
<subparagraph id="id6356D1DE9C334814BA01499053E708AB"><enum>(A)</enum><text>running a triage
hotline for homeowners at risk of foreclosure;</text>
</subparagraph><subparagraph id="idC9FFEB02FE984D84B17077EE285E26E7"><enum>(B)</enum><text>providing
homeowners with access to housing counseling programs of the Department of
Housing and Urban Development at no cost to the homeowner;</text>
</subparagraph><subparagraph id="id61CF4295AE64418EB7DAA7E41932F163"><enum>(C)</enum><text>developing
Internet tools related to the Home Affordable Modification Program; and</text>
</subparagraph><subparagraph id="id8D614DF22005460C9812C8E5B0C2CCB8"><enum>(D)</enum><text>developing
training and educational materials.</text>
</subparagraph></paragraph></subsection><subsection id="ID3a96ae198fe845b79b875fa347e6602b"><enum>(b)</enum><header>Authority</header>
<paragraph id="ID2931301af00942bcbbc072c1fb01b4ee"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="IDd5e70689e9a541a8b15d2ead8de14c23"><enum>(2)</enum><header>Resolution of
homeowner concerns</header><text>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.</text>
</paragraph></subsection><subsection id="id78AD2F84B7534F2A9A5691905D35D06E"><enum>(c)</enum><header>Commencement of
operations</header><text>The Office shall commence its operations, as required
by this title, not later than 3 months after the date of enactment of this
Act.</text>
</subsection><subsection id="id182901FB570649A88D914AB90E6CE07D"><enum>(d)</enum><header>Sunset</header><text>The
Office shall cease operations as of the date on which the Home Affordable
Modification Program ceases to operate.</text>
</subsection></section><section id="ID60e8b743c129485395bced6c4002499e"><enum>903.</enum><header>Relationship
with existing entities</header>
<subsection id="IDd4c06678c1e441a09e65ccbbda7b6030"><enum>(a)</enum><header>Transfer</header><text>The
Office shall coordinate and centralize all complaint escalations relating to
the Home Affordable Modification Program.</text>
</subsection><subsection id="IDd4805b0ebdce4ba49a2f9184046d2cfe"><enum>(b)</enum><header>Hotline</header><text>The
HOPE hotline (or any successor triage hotline) shall reroute all complaints
relating to the Home Affordable Modification Program to the Office.</text>
</subsection><subsection id="ID34a164d337654000990e009c4c9e245f"><enum>(c)</enum><header>Coordination</header><text>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.</text>
</subsection></section><section id="IDdf11a2e3906f4a4a821b09f5567d7d93"><enum>904.</enum><header>Rule of
construction</header><text display-inline="no-display-inline">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.</text>
</section><section id="IDa088c4ddbc2b4c3c841409ea81645d26"><enum>905.</enum><header>Reports to
Congress</header>
<subsection id="ID6e2bca9f09ee41f987527353e3481236"><enum>(a)</enum><header>Testimony</header><text>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.</text>
</subsection><subsection id="ID7aa87715a9d14ab8961e92ae55dec392"><enum>(b)</enum><header>Reports</header><text>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—</text>
<paragraph id="ID7a5b95e7b1c64b5ea59ca4686f18072e"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="IDfef5f3dcdcd74f0b9813fb5f06615be0"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="IDb50c5a7e2d0d49a8bd4ed6fc83a06af4"><enum>(3)</enum><text>to the extent
known, identification of the 10 most litigated issues for Home Affordable
Modification Program participants, including recommendations for mitigating
such disputes;</text>
</paragraph><paragraph id="ID8eaf088cf75d4771940e6d65c136df6e"><enum>(4)</enum><text>data and analysis
on the resolutions of the complaints received from homeowners, housing
counselors, and housing lawyers;</text>
</paragraph><paragraph id="ID5972322a52a641b8b82619c00a7c19c8"><enum>(5)</enum><text>identification of
any programs or initiatives that the Office has taken to improve the Home
Affordable Modification Program;</text>
</paragraph><paragraph id="ID719e6a13a27b4310b0cfde142cc0a70b"><enum>(6)</enum><text>recommendations
for such administrative and legislative action as may be appropriate to resolve
problems encountered by Home Affordable Modification Program participants;
and</text>
</paragraph><paragraph id="IDe961c722104146b2b0d742f37723f9bc"><enum>(7)</enum><text>such other
information as the Director may deem advisable.</text>
</paragraph></subsection></section><section id="id7D699DFAE9EB4DD5A53F7A9FF402AD04"><enum>906.</enum><header>Funding</header><text display-inline="no-display-inline">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.</text>
</section><section id="idC447DDFBBE494197BC6DD8FD7D7A44B9"><enum>907.</enum><header>Prohibition on
participation in Making Home Affordable for borrowers who strategically
default</header><text display-inline="no-display-inline">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 <quote>FHA Program Adjustments to Support
Refinancings for Underwater Homeowners,</quote> 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.</text>
</section><section id="idAC2814594B964F3386353BEA16FF9F37"><enum>908.</enum><header>Public
availability of information</header>
<subsection id="idA92DF45992D3483B952A421E02CF0973"><enum>(a)</enum><header>Public
availability of data</header><text>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).</text>
</subsection><subsection id="idAA4E00198B9841D090DDD0441F13AD56"><enum>(b)</enum><header>Content</header><text>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—</text>
<paragraph id="id395ABA1882EA4AF0AA10DFACB79C532B"><enum>(1)</enum><text>higher risk
loans, including loans made in connection with any program to provide expanded
loan approvals, shall be reported separately;</text>
</paragraph><paragraph id="idFCCC7AC67EE347E8B48426CC5CD80041"><enum>(2)</enum><text>disclose—</text>
<subparagraph id="idB148282D7C0F48F8AE7228951F179EA1"><enum>(A)</enum><text>the rate or pace
at which such mortgages are becoming seriously delinquent;</text>
</subparagraph><subparagraph id="idDEA5A5E9472F4C1E981852E11F903317"><enum>(B)</enum><text>whether such rate
or pace is increasing or decreasing;</text>
</subparagraph><subparagraph id="id860A5953E5C74D61805026779851FB60"><enum>(C)</enum><text>if there are
certain subsets within the loans covered by this section that have greater or
lesser rates or paces of delinquency; and</text>
</subparagraph><subparagraph id="idCB0010C4A02E465B845ADBBCAE102F4F"><enum>(D)</enum><text>if such subsets
exist, the characteristics of such subset of mortgages;</text>
</subparagraph></paragraph><paragraph id="id8A31AD6AE3AD4B8F9F0D9B81BC204A03"><enum>(3)</enum><text>with respect to
the loss mitigation efforts of the loan—</text>
<subparagraph id="id1B64C70E27C449C4826F7D6467A2CBB7"><enum>(A)</enum><text>the processes and
practices that the reporter has in effect to minimize losses on mortgages
covered by this section; and</text>
</subparagraph><subparagraph id="id9B2DE6F50A6F4794981468EB70D5B8C7"><enum>(B)</enum><text>the manner and
methods by which such processes and practices are being monitored for
effectiveness;</text>
</subparagraph></paragraph><paragraph id="id218E89B42BE14794A136DF03E8E7A5E1"><enum>(4)</enum><text>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—</text>
<subparagraph id="idC0047FA35A6B414C9675F2BAE923BBAD"><enum>(A)</enum><text>the original loan
amount;</text>
</subparagraph><subparagraph id="idDD8DA1405C8C4785A643F1D90E958F1C"><enum>(B)</enum><text>the current loan
amount;</text>
</subparagraph><subparagraph id="id944A9E4590174109B17F424207853866"><enum>(C)</enum><text>the loan-to-value
ratio and combined loan-to-value ratio, both at origination and currently, and
the number of liens on the property;</text>
</subparagraph><subparagraph id="idB8A2445ACB0B42609F0D01797342DCF5"><enum>(D)</enum><text>the property
valuation at the time of origination of the loan, and all subsequent property
valuations and the date of each valuation;</text>
</subparagraph><subparagraph id="id3385809FA4A94F8691C7516FECBE30D1"><enum>(E)</enum><text>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;</text>
</subparagraph><subparagraph id="idFCB3F535F3C84104ABAA819BBEC33DFA"><enum>(F)</enum><text>whether the loan
has any mortgage or other credit insurance or guarantee;</text>
</subparagraph><subparagraph id="id25FF486AC94C4E328C53C9BB92230A52"><enum>(G)</enum><text>the current
interest rate on such loan;</text>
</subparagraph><subparagraph id="id85F173ADA7B241ABB7B3A815CB6558AE"><enum>(H)</enum><text>any rate caps and
floors if the loan is an adjustable rate mortgage loan;</text>
</subparagraph><subparagraph id="id80926FEE859D474499036556E17A33F0"><enum>(I)</enum><text>the adjustable
rate mortgage index or indices for such loan;</text>
</subparagraph><subparagraph id="id63C2CAE53E8F47DBB48584E8B1E3AB20"><enum>(J)</enum><text>whether the loan
is currently past due, and if so how many days such loan is past due;</text>
</subparagraph><subparagraph id="id4DD707463B22417DA2C9EE1C309A7301"><enum>(K)</enum><text>the total number
of days the loan has been past due at any time;</text>
</subparagraph><subparagraph id="id21576718EE8B404583986C78D92D7535"><enum>(L)</enum><text>whether the loan
is subject to a balloon payment;</text>
</subparagraph><subparagraph id="id12888B3E1A2D4B5AB36CA25EF473C78E"><enum>(M)</enum><text>the date of each
modification of the loan;</text>
</subparagraph><subparagraph id="id56CAD66DDC6541269F91C9766DF7FAC2"><enum>(N)</enum><text>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;</text>
</subparagraph><subparagraph id="id47ECE6E4758447CCBC73B8BB5D1B943A"><enum>(O)</enum><text>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;</text>
</subparagraph><subparagraph id="idF5C9418CD3B0490EB66D3163C00D3CD9"><enum>(P)</enum><text>the amount by
which the interest rate on the loan was reduced, and for what period of time it
was reduced;</text>
</subparagraph><subparagraph id="idCA8E0178384B4DEBB98B4C903874B374"><enum>(Q)</enum><text>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;</text>
</subparagraph><subparagraph id="idE41F2F4C8C484AAFA9B99C83A88291B8"><enum>(R)</enum><text>whether the loan
term was modified, and if so, whether it was extended or shortened, and by what
amount of time;</text>
</subparagraph><subparagraph id="idED98CF4E2B524854A4541A3A6AD570D3"><enum>(S)</enum><text>whether the loan
is in the process of foreclosure or similar procedure, whether judicial or
otherwise; and</text>
</subparagraph><subparagraph id="id943F103A696C4D9798D0BA7B3A9B8ED5"><enum>(T)</enum><text>whether a
foreclosure or similar procedure, whether judicial or otherwise, has been
completed.</text>
</subparagraph></paragraph></subsection><subsection id="id19EA48B6AFAB458D99DF473288919346"><enum>(c)</enum><header>Guidelines and
regulations</header><text>The Secretary of the Treasury shall establish
guidelines and regulations necessary—</text>
<paragraph id="id2BCCEE5618C04B6D9142AC0F8C951BB7"><enum>(1)</enum><text>to ensure that
the privacy of individual consumers is appropriately protected in the reports
under this section;</text>
</paragraph><paragraph id="idEE8E477192CA4768A007B947720BCBA6"><enum>(2)</enum><text>to make the data
reported under this subsection available on a public website with no cost to
access the data, in a consistent format;</text>
</paragraph><paragraph id="id0A237175EDDF4CA698D324D5A8D694D5"><enum>(3)</enum><text>to update the
data no less frequently than monthly;</text>
</paragraph><paragraph id="id8DE5ED5607BF4EFF8B504CDEFAF2FB25"><enum>(4)</enum><text>to establish
procedures for disclosing such data to the public on a public website with no
cost to access the data; and</text>
</paragraph><paragraph id="id25D74241C497451385AE64554FF45432"><enum>(5)</enum><text>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.</text>
</paragraph></subsection><subsection id="idDF10F28119594E98AEF09FE6BA6F8FD4"><enum>(d)</enum><header>Exception</header><text>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.</text>
</subsection></section><enum>X</enum><header>Budgetary
provisions</header>
<section commented="no" id="idCDB391407D30413F972ADE6F3F9EB0DA"><enum>1001.</enum><header>Determination
of budgetary effects</header><text display-inline="no-display-inline">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.</text>
</section>
September 20, 2010
Read the second time and placed on the
calendar