[Congressional Record Volume 156, Number 22 (Monday, February 22, 2010)]
[Senate]
[Pages S626-S664]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3315. Mr. SESSIONS (for himself and Mrs. McCaskill) submitted an 
amendment intended to be proposed to amendment SA 3310 proposed by Mr. 
Reid to the bill H.R. 2847, making appropriations for the Departments 
of Commerce and Justice, and Science, and Related Agencies for the 
fiscal year ending September 30, 2010, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. _01. DISCRETIONARY SPENDING LIMITS.

       (a) In General.--Title III of the Congressional Budget Act 
     of 1974 is amended by inserting at the end the following:


                    ``discretionary spending limits

       ``Sec. 316.  (a) Discretionary Spending Limits.--It shall 
     not be in order in the House of Representatives or the Senate 
     to consider any bill, joint resolution, amendment, or 
     conference report that includes any provision that would 
     cause the discretionary spending limits as set forth in this 
     section to be exceeded.
       ``(b) Limits.--In this section, the term `discretionary 
     spending limits' has the following meaning subject to 
     adjustments in subsection (c):
       ``(1) For fiscal year 2011--
       ``(A) for the defense category (budget function 050), 
     $564,293,000,000 in budget authority; and
       ``(B) for the nondefense category, $529,662,000,000 in 
     budget authority.
       ``(2) For fiscal year 2012--
       ``(A) for the defense category (budget function 050), 
     $573,612,000,000 in budget authority; and
       ``(B) for the nondefense category, $533,232,000,000 in 
     budget authority.
       ``(3) For fiscal year 2013--
       ``(A) for the defense category (budget function 050), 
     $584,421,000,000 in budget authority; and
       ``(B) for the nondefense category, $540,834,000,000 in 
     budget authority.
       ``(4) For fiscal year 2014--
       ``(A) for the defense category (budget function 050), 
     $598,249,000,000 in budget authority; and
       ``(B) for the nondefense category, $550,509,000,000 in 
     budget authority.
       ``(5) With respect to fiscal years following 2014, the 
     President shall recommend and the Congress shall consider 
     legislation setting limits for those fiscal years.
       ``(c) Adjustments.--
       ``(1) In general.--After the reporting of a bill or joint 
     resolution relating to any matter described in paragraph (2), 
     or the offering of an amendment thereto or the submission of 
     a conference report thereon--
       ``(A) the Chairman of the Senate Committee on the Budget 
     may adjust the discretionary spending limits, the budgetary 
     aggregates in the concurrent resolution on the budget most 
     recently adopted by the Senate and the House of 
     Representatives, and allocations pursuant to section 302(a) 
     of the Congressional Budget Act of 1974, by the amount of new 
     budget authority in that measure for that purpose and the 
     outlays flowing there from; and

[[Page S627]]

       ``(B) following any adjustment under subparagraph (A), the 
     Senate Committee on Appropriations may report appropriately 
     revised suballocations pursuant to section 302(b) of the 
     Congressional Budget Act of 1974 to carry out this 
     subsection.
       ``(2) Matters described.--Matters referred to in paragraph 
     (1) are as follows:
       ``(A) Overseas deployments and other activities.--If a bill 
     or joint resolution is reported making appropriations for 
     fiscal year 2011, 2012, 2013, or 2014, that provides funding 
     for overseas deployments and other activities, the adjustment 
     for purposes paragraph (1) shall be the amount of budget 
     authority in that measure for that purpose but not to 
     exceed--
       ``(i) with respect to fiscal year 2011, $50,000,000,000 in 
     new budget authority;
       ``(ii) with respect to fiscal year 2012, $50,000,000,000 in 
     new budget authority;
       ``(iii) with respect to fiscal year 2013, $50,000,000,000 
     in new budget authority: and
       ``(iv) with respect to fiscal year 2014, $50,000,000,000 in 
     new budget authority.
       ``(B) Emergency spending.--For fiscal year 2011, 2012, 
     2013, or 2014 for appropriations for discretionary accounts 
     designated as emergency requirements, the adjustment for 
     purposes of paragraph (1) shall be the total of such 
     appropriations in discretionary accounts designated as 
     emergency requirements, but not to exceed $10,454,000,000 for 
     2011, $10,558,000,000 for 2012, $10,664,000,000 for 2013, and 
     $10,877,000,000 for 2014. Appropriations designated as 
     emergencies in excess of these limitations shall be treated 
     as new budget authority.
       ``(C) Internal revenue service tax enforcement.--
       ``(i) In general.--If a bill or joint resolution is 
     reported making appropriations for fiscal year 2011, 2012, 
     2013, or 2014 that includes the amount described in clause 
     (ii)(I), plus an additional amount for enhanced tax 
     enforcement to address the Federal tax gap (taxes owed but 
     not paid) described in clause (ii)(II), the adjustment for 
     purposes of paragraph (1) shall be the amount of budget 
     authority in that measure for that initiative not exceeding 
     the amount specified in clause (ii)(II) for that fiscal year.
       ``(ii) Amounts.--The amounts referred to in clause (i) are 
     as follows:

       ``(I) For fiscal year 2011, $7,171,000,000, for fiscal year 
     2012, $7,243,000,000, for fiscal year 2013, $7,315,000,000, 
     and for fiscal year 2014, $7,461,000,000.
       ``(II) For fiscal year 2011, $899,000,000, for fiscal year 
     2012, $908,000,000, for fiscal year 2013, $917,000,000, and 
     for fiscal year 2014, $935,000,000.

       ``(D) Continuing disability reviews and ssi 
     redeterminations.--
       ``(i) In general.--If a bill or joint resolution is 
     reported making appropriations for fiscal year 2011, 2012, 
     2013, or 2014 that includes the amount described in clause 
     (ii)(I), plus an additional amount for Continuing Disability 
     Reviews and Supplemental Security Income Redeterminations for 
     the Social Security Administration described in clause 
     (ii)(II), the adjustment for purposes of paragraph (1) shall 
     be the amount of budget authority in that measure for that 
     initiative not exceeding the amount specified in clause 
     (ii)(II) for that fiscal year.
       ``(ii) Amounts.--The amounts referred to in clause (i) are 
     as follows:

       ``(I) For fiscal year 2011, $276,000,000; for fiscal year 
     2012, $278,000,000; for fiscal year 2013, $281,000,000; for 
     fiscal year 2014, $287,000,000.
       ``(II) For fiscal year 2011, $490,000,000; for fiscal year 
     2012, $495,000,000; for fiscal year 2013, $500,000,000; for 
     fiscal year 2014, $510,000,000.

       ``(iii) Asset verification.--

       ``(I) In general.--The additional appropriation permitted 
     under clause (ii)(II) may also provide that a portion of that 
     amount, not to exceed the amount specified in subclause (II) 
     for that fiscal year instead may be used for asset 
     verification for Supplemental Security Income recipients, but 
     only if, and to the extent that the Office of the Chief 
     Actuary estimates that the initiative would be at least as 
     cost effective as the redeterminations of eligibility 
     described in this subparagraph.
       ``(II) Amounts.--For fiscal year 2011, $34,340,000, for 
     fiscal year 2012, $34,683,000, for fiscal year 2013, 
     $35,030,000 and for fiscal year 2014, $35,731,000.

       ``(E) Health care fraud and abuse.--
       ``(i) In general.--If a bill or joint resolution is 
     reported making appropriations for fiscal year 2011, 2012, 
     2013, or 2014 that includes the amount described in clause 
     (ii) for the Health Care Fraud and Abuse Control program at 
     the Department of Health & Human Services for that fiscal 
     year, the adjustment for purposes of paragraph (1) shall be 
     the amount of budget authority in that measure for that 
     initiative but not to exceed the amount described in clause 
     (ii).
       ``(ii) Amount.--The amount referred to in clause (i) is for 
     fiscal year 2011, $314,000,000, for fiscal year 2012, 
     $317,000,000, for fiscal year 2013, $320,000,000, and for 
     fiscal year 2014, $327,000,000.
       ``(F) Unemployment insurance improper payment reviews.--If 
     a bill or joint resolution is reported making appropriations 
     for fiscal year 2011, 2012, 2013, or 2014 that includes 
     $10,000,000, plus an additional amount for in-person 
     reemployment and eligibility assessments and unemployment 
     improper payment reviews for the Department of Labor, the 
     adjustment for purposes paragraph (1) shall be the amount of 
     budget authority in that measure for that initiative but not 
     to exceed--
       ``(i) with respect to fiscal year 2011, $51,000,000 in new 
     budget authority; and
       ``(ii) with respect to fiscal year 2012, $51,000,000 in new 
     budget authority.
       ``(iii) with respect to fiscal year 2013, $52,000,000 in 
     new budget authority; and
       ``(iv) with respect to fiscal year 2014, $53,000,000 in new 
     budget authority.
       ``(G) Low-income home energy assistance program (liheap).--
     If a bill or joint resolution is reported making 
     appropriations for fiscal year 2011, 2012, 2013, or 2014 that 
     includes $3,200,000,000 in funding for the Low-Income Home 
     Energy Assistance Program and provides an additional amount 
     up to $1,900,000,000 for that program, the adjustment for 
     purposes of paragraph (1) shall be the amount of budget 
     authority in that measure for that initiative but not to 
     exceed $1,900,000,000.
       ``(d) Emergency Spending.--
       ``(1) Authority to designate.--In the Senate, with respect 
     to a provision of direct spending or receipts legislation or 
     appropriations for discretionary accounts that Congress 
     designates as an emergency requirement in such measure, the 
     amounts of new budget authority, outlays, and receipts in all 
     fiscal years resulting from that provision shall be treated 
     as an emergency requirement for the purpose of this 
     subsection.
       ``(2) Exemption of emergency provisions.--Subject to the 
     limitations provided in subsection (c)(2)(B), any new budget 
     authority, outlays, and receipts resulting from any provision 
     designated as an emergency requirement, pursuant to this 
     subsection, in any bill, joint resolution, amendment, or 
     conference report shall not count for purposes of sections 
     302 and 311 of the Congressional Budget Act of 1974, section 
     201 of S. Con. Res. 21 (110th Congress) (relating to pay-as-
     you-go), and section 311 of S. Con. Res. 70 (110th Congress) 
     (relating to long-term deficits).
       ``(3) Designations.--If a provision of legislation is 
     designated as an emergency requirement under this subsection, 
     the committee report and any statement of managers 
     accompanying that legislation shall include an explanation of 
     the manner in which the provision meets the criteria in 
     paragraph (6).
       ``(4) Definitions.--In this subsection, the terms `direct 
     spending', `receipts', and `appropriations for discretionary 
     accounts' mean any provision of a bill, joint resolution, 
     amendment, motion, or conference report that affects direct 
     spending, receipts, or appropriations as those terms have 
     been defined and interpreted for purposes of the Balanced 
     Budget and Emergency Deficit Control Act of 1985.
       ``(5) Point of order.--
       ``(A) In general.--When the Senate is considering a bill, 
     resolution, amendment, motion, or conference report, if a 
     point of order is made by a Senator against an emergency 
     designation in that measure, that provision making such a 
     designation shall be stricken from the measure and may not be 
     offered as an amendment from the floor.
       ``(B) Supermajority waiver and appeals.--
       ``(i) Waiver.--Subparagraph (A) may be waived or suspended 
     in the Senate only by an affirmative vote of three-fifths of 
     the Members, duly chosen and sworn.
       ``(ii) Appeals.--Appeals in the Senate from the decisions 
     of the Chair relating to any provision of this paragraph 
     shall be limited to 1 hour, to be equally divided between, 
     and controlled by, the appellant and the manager of the bill 
     or joint resolution, as the case may be. An affirmative vote 
     of three-fifths of the Members of the Senate, duly chosen and 
     sworn, shall be required to sustain an appeal of the ruling 
     of the Chair on a point of order raised under this paragraph.
       ``(C) Definition of an emergency designation.--For purposes 
     of subparagraph (A), a provision shall be considered an 
     emergency designation if it designates any item as an 
     emergency requirement pursuant to this paragraph.
       ``(D) Form of the point of order.--A point of order under 
     subparagraph (A) may be raised by a Senator as provided in 
     section 313(e) of the Congressional Budget Act of 1974.
       ``(E) Conference reports.--When the Senate is considering a 
     conference report on, or an amendment between the Houses in 
     relation to, a bill, upon a point of order being made by any 
     Senator pursuant to this paragraph, and such point of order 
     being sustained, such material contained in such conference 
     report shall be deemed stricken, and the Senate shall proceed 
     to consider the question of whether the Senate shall recede 
     from its amendment and concur with a further amendment, or 
     concur in the House amendment with a further amendment, as 
     the case may be, which further amendment shall consist of 
     only that portion of the conference report or House 
     amendment, as the case may be, not so stricken. Any such 
     motion in the Senate shall be debatable. In any case in which 
     such point of order is sustained against a conference report 
     (or Senate amendment derived from such conference report by 
     operation of this subsection), no further amendment shall be 
     in order.
       ``(6) Criteria.--
       ``(A) In general.--For purposes of this subsection, any 
     provision is an emergency requirement if the situation 
     addressed by such provision is--
       ``(i) necessary, essential, or vital (not merely useful or 
     beneficial);

[[Page S628]]

       ``(ii) sudden, quickly coming into being, and not building 
     up over time;
       ``(iii) an urgent, pressing, and compelling need requiring 
     immediate action;
       ``(iv) subject to clause (ii), unforeseen, unpredictable, 
     and unanticipated; and
       ``(v) not permanent, temporary in nature.
       ``(7) Unforeseen.--An emergency that is part of an 
     aggregate level of anticipated emergencies, particularly when 
     normally estimated in advance, is not unforeseen.
       ``(e) Limitations on Changes to Exemptions.--It shall not 
     be in order in the Senate or the House of Representatives to 
     consider any bill, resolution, amendment, or conference 
     report that would exempt any new budget authority, outlays, 
     and receipts from being counted for purposes of this section.
       ``(f) Point of Order in the Senate.--
       ``(1) Waiver.--The provisions of this section shall be 
     waived or suspended in the Senate only--
       ``(A) by the affirmative vote of two-thirds of the Members, 
     duly chosen and sworn; or
       ``(B) in the case of the defense budget authority, if 
     Congress declares war or authorizes the use of force.
       ``(2) Appeal.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this section shall be 
     limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the measure. 
     An affirmative vote of two-thirds of the Members of the 
     Senate, duly chosen and sworn, shall be required to sustain 
     an appeal of the ruling of the Chair on a point of order 
     raised under this section.
       ``(3) Limitations on changes to this subsection.--It shall 
     not be in order in the Senate or the House of Representatives 
     to consider any bill, resolution, amendment, or conference 
     report that would repeal or otherwise change this 
     subsection.''.
       (b) Table of Contents.--The table of contents set forth in 
     section 1(b) of the Congressional Budget and Impoundment 
     Control Act of 1974 is amended by inserting after the item 
     relating to section 315 the following new item:

``Sec. 316. Discretionary spending limits.''.
  SA 3316. Ms. LANDRIEU submitted an amendment intended to be proposed 
to amendment SA 3310 proposed by Mr. Reid to the bill H.R. 2847, making 
appropriations for the Departments of Commerce and Justice, and 
Science, and Related Agencies for the fiscal year ending September 30, 
2010, and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

                     TITLE __--SMALL BUSINESS LOANS

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``Small Business Job 
     Creation and Access to Capital Act of 2010''.

       Subtitle A--Next Steps for Main Street Credit Availability

     SEC. __21. SECTION 7(A) BUSINESS LOANS.

       (a) Amendment.--Section 7(a) of the Small Business Act (15 
     U.S.C. 636(a)) is amended--
       (1) in paragraph (2)(A)--
       (A) in clause (i), by striking ``75 percent'' and inserting 
     ``90 percent''; and
       (B) in clause (ii), by striking ``85 percent'' and 
     inserting ``90 percent''; and
       (2) in paragraph (3)(A), by striking ``$1,500,000 (or if 
     the gross loan amount would exceed $2,000,000'' and inserting 
     ``$4,500,000 (or if the gross loan amount would exceed 
     $5,000,000''.
       (b) Prospective Repeal.--Effective January 1, 2011, section 
     7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
     amended--
       (1) in paragraph (2)(A)--
       (A) in clause (i), by striking ``90 percent'' and inserting 
     ``75 percent''; and
       (B) in clause (ii), by striking ``90 percent'' and 
     inserting ``85 percent''; and
       (2) in paragraph (3)(A), by striking ``$4,500,000'' and 
     inserting ``$3,750,000''.

     SEC. __22. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM.

       Section 502(2)(A) of the Small Business Investment Act of 
     1958 (15 U.S.C. 696(2)(A)) is amended--
       (1) in clause (i), by striking ``$1,500,000'' and inserting 
     ``$5,000,000'';
       (2) in clause (ii), by striking ``$2,000,000'' and 
     inserting ``$5,000,000'';
       (3) in clause (iii), by striking ``$4,000,000'' and 
     inserting ``$5,500,000'';
       (4) in clause (iv), by striking ``$4,000,000'' and 
     inserting ``$5,500,000''; and
       (5) in clause (v), by striking ``$4,000,000'' and inserting 
     ``$5,500,000''.

     SEC. __23. MAXIMUM LOAN LIMITS UNDER MICROLOAN PROGRAM.

       Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) 
     is amended--
       (1) in paragraph (1)(B)(iii), by striking ``$35,000'' and 
     inserting ``$50,000'';
       (2) in paragraph (3)--
       (A) in subparagraph (C), by striking ``$3,500,000'' and 
     inserting ``$5,000,000''; and
       (B) in subparagraph (E), by striking ``$35,000'' each place 
     that term appears and inserting ``$50,000''; and
       (3) in paragraph (11)(B), by striking ``$35,000'' and 
     inserting ``$50,000''.

     SEC. __24. TEMPORARY FEE REDUCTIONS.

       Section 501 of the American Recovery and Reinvestment Act 
     of 2009 (Public Law 111-5; 123 Stat. 151) is amended by 
     striking ``September 30, 2010'' each place that term appears 
     and inserting ``December 31, 2010''.

     SEC. __25. NEW MARKETS VENTURE CAPITAL COMPANY INVESTMENT 
                   LIMITATIONS.

       Section 355 of the Small Business Investment Act of 1958 
     (15 U.S.C. 689d) is amended by adding at the end the 
     following:
       ``(e) Investment Limitations.--
       ``(1) Definition.--In this subsection, the term `covered 
     New Markets Venture Capital company' means a New Markets 
     Venture Capital company--
       ``(A) granted final approval by the Administrator under 
     section 354(e) on or after March 1, 2002; and
       ``(B) that has obtained a financing from the Administrator.
       ``(2) Limitation.--Except to the extent approved by the 
     Administrator, a covered New Markets Venture Capital company 
     may not acquire or issue commitments for securities under 
     this title for any single enterprise in an aggregate amount 
     equal to more than 10 percent of the sum of--
       ``(A) the regulatory capital of the covered New Markets 
     Venture Capital company; and
       ``(B) the total amount of leverage projected in the 
     participation agreement of the covered New Markets Venture 
     Capital.''.

     SEC. __26. ALTERNATIVE SIZE STANDARDS.

       Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) 
     is amended by adding at the end the following:
       ``(5) Alternative Size Standard.--
       ``(A) In general.--The Administrator shall establish an 
     alternative size standard for applicants for business loans 
     under section 7(a) and applicants for development company 
     loans under title V of the Small Business Investment Act of 
     1958 (15 U.S.C. 695 et seq.), that uses maximum tangible net 
     worth and average net income as an alternative to the use of 
     industry standards.
       ``(B) Interim rule.--Until the date on which the 
     alternative size standard established under subparagraph (A) 
     is in effect, an applicant for a business loan under section 
     7(a) or an applicant for a development company loan under 
     title V of the Small Business Investment Act of 1958 may be 
     eligible for such a loan if--
       ``(i) the maximum tangible net worth of the applicant is 
     not more than $15,000,000; and
       ``(ii) the average net income after Federal income taxes 
     (excluding any carry-over losses) of the applicant for the 2 
     full fiscal years before the date of the application is not 
     more than $5,000,000.''.

     SEC. __27. SALE OF 7(A) LOANS IN SECONDARY MARKET.

       Section 5(g) of the Small Business Act (15 U.S.C. 634(g)) 
     is amended by adding at the end the following:
       ``(6) If the amount of the guaranteed portion of any loan 
     under section 7(a) is more than $500,000, the Administrator 
     shall, upon request of a pool assembler, divide the loan 
     guarantee into increments of $500,000 and 1 increment of any 
     remaining amount less than $500,000, in order to permit the 
     maximum amount of any loan in a pool to be not more than 
     $500,000. Only 1 increment of any loan guarantee divided 
     under this paragraph may be included in the same pool. 
     Increments of loan guarantees to different borrowers that are 
     divided under this paragraph may be included in the same 
     pool.''.

     SEC. __28. ONLINE LENDING PLATFORM.

       It is the sense of Congress that the Administrator of the 
     Small Business Administration should establish a website 
     that--
       (1) lists each lender that makes loans guaranteed by the 
     Small Business Administration and provides information about 
     the loan rates of each such lender; and
       (2) allows prospective borrowers to compare rates on loans 
     guaranteed by the Small Business Administration.

              Subtitle B--Small Business Access to Capital

     SEC. __42. LOW-INTEREST REFINANCING UNDER THE LOCAL 
                   DEVELOPMENT BUSINESS LOAN PROGRAM.

       (a) Refinancing.--Section 502(7) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 696(7)) is amended by 
     adding at the end the following:
       ``(C) Refinancing not involving expansions.--
       ``(i) Definitions.--In this subparagraph--

       ``(I) the term `borrower' means a small business concern 
     that submits an application to a development company for 
     financing under this subparagraph;
       ``(II) the term `eligible fixed asset' means tangible 
     property relating to which the Administrator may provide 
     financing under this section; and
       ``(III) the term `qualified debt' means indebtedness--

       ``(aa) that--
       ``(AA) was incurred not less than 2 years before the date 
     of the application for assistance under this subparagraph;
       ``(BB) is a commercial loan;
       ``(CC) is not subject to a guarantee by a Federal agency;
       ``(DD) the proceeds of which were used to acquire an 
     eligible fixed asset;
       ``(EE) was incurred for the benefit of the small business 
     concern; and
       ``(FF) is collateralized by eligible fixed assets; and
       ``(bb) for which the borrower has been current on all 
     payments for not less than 1 year before the date of the 
     application.
       ``(ii) Authority.--A project that does not involve the 
     expansion of a small business concern may include the 
     refinancing of qualified debt if--

       ``(I) the amount of the financing is not more than 80 
     percent of the value of the collateral for the financing, 
     except that, if the appraised value of the eligible fixed 
     assets

[[Page S629]]

     serving as collateral for the financing is less than the 
     amount equal to 125 percent of the amount of the financing, 
     the borrower may provide additional cash or other collateral 
     to eliminate any deficiency;
       ``(II) the borrower has been in operation for all of the 2-
     year period ending on the date of the loan; and
       ``(III) for a financing for which the Administrator 
     determines there will be an additional cost attributable to 
     the refinancing of the qualified debt, the borrower agrees to 
     pay a fee in an amount equal to the anticipated additional 
     cost.

       ``(iii) Financing for business expenses.--

       ``(I) Financing for business expenses.--The Administrator 
     may provide financing to a borrower that receives financing 
     that includes a refinancing of qualified debt under clause 
     (ii), in addition to the refinancing under clause (ii), to be 
     used solely for the payment of business expenses.
       ``(II) Application for financing.--An application for 
     financing under subclause (I) shall include--

       ``(aa) a specific description of the expenses for which the 
     additional financing is requested; and
       ``(bb) an itemization of the amount of each expense.

       ``(III) Condition on additional financing.--A borrower may 
     not use any part of the financing under this clause for non-
     business purposes.

       ``(iv) Loans based on jobs.--

       ``(I) Job creation and retention goals.--

       ``(aa) In general.--The Administrator may provide financing 
     under this subparagraph for a borrower that meets the job 
     creation goals under subsection (d) or (e) of section 501.
       ``(bb) Alternate job retention goal.--The Administrator may 
     provide financing under this subparagraph to a borrower that 
     does not meet the goals described in item (aa) in an amount 
     that is not more than the product obtained by multiplying the 
     number of employees of the borrower by $65,000.

       ``(II) Number of employees.--For purposes of subclause (I), 
     the number of employees of a borrower is equal to the sum 
     of--

       ``(aa) the number of full-time employees of the borrower on 
     the date on which the borrower applies for a loan under this 
     subparagraph; and
       ``(bb) the product obtained by multiplying--
       ``(AA) the number of part-time employees of the borrower on 
     the date on which the borrower applies for a loan under this 
     subparagraph; by
       ``(BB) the quotient obtained by dividing the average number 
     of hours each part time employee of the borrower works each 
     week by 40.
       ``(v) Nondelegation.--Notwithstanding section 508(e), the 
     Administrator may not permit a premier certified lender to 
     approve or disapprove an application for assistance under 
     this subparagraph.
       ``(vi) Total amount of loans.--The Administrator may 
     provide not more than a total of $4,000,000,000 of financing 
     under this subparagraph for each fiscal year.''.
       (b) Prospective Repeal.--Effective 2 years after the date 
     of enactment of this Act, section 502(7) of the Small 
     Business Investment Act of 1958 (15 U.S.C. 696(7)) is amended 
     by striking subparagraph (C).
       (c) Technical Correction.--Section 502(2)(A)(i) of the 
     Small Business Investment Act of 1958 (15 U.S.C. 
     696(2)(A)(i)) is amended by striking ``subparagraph (B) or 
     (C)'' and inserting ``clause (ii), (iii), (iv), or (v)''.
                                 ______
                                 
  SA 3317. Ms. LANDRIEU submitted an amendment intended to be proposed 
by her to the bill H.R. 2847, making appropriations for the Departments 
of Commerce and Justice, and Science, and Related Agencies for the 
fiscal year ending September 30, 2010, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SMALL BUSINESS TECHNICAL ASSISTANCE.

       (a) Small Business Act.--Section 4 of the Small Business 
     Act (15 U.S.C. 633) is amended by adding at the end the 
     following:
       ``(g) Waiver of Non-Federal Share for Technical Assistance 
     and Counseling Programs.--Upon request, the Administrator may 
     waive, in whole or in part, the requirement to obtain non-
     Federal funds under a technical assistance or counseling 
     program under this Act (including the microloan program under 
     section 7(m), the small business development center program 
     under section 21, and the women's business center program 
     under section 29) if the Administrator determines--
       ``(1) the requestor is suffering extreme economic hardship; 
     and
       ``(2) waiving the requirement to obtain non-Federal funds 
     will not undermine the credibility of the program.''.
       (b) Small Business Investment Act of 1958.--Title I of the 
     Small Business Investment Act of 1958 (15 U.S.C. 661 et seq.) 
     is amended by adding at the end the following:

     ``SEC. 104. WAIVER OF NON-FEDERAL SHARE FOR TECHNICAL 
                   ASSISTANCE AND COUNSELING PROGRAMS.

       ``Upon request, the Administrator may waive, in whole or in 
     part, the requirement to obtain non-Federal funds under a 
     technical assistance or counseling program under this Act if 
     the Administrator determines--
       ``(1) the requestor is suffering extreme economic hardship; 
     and
       ``(2) waiving the requirement to obtain non-Federal funds 
     will not undermine the credibility of the program.''.
                                 ______
                                 
  SA 3318. Mr. VITTER (for himself, Mr. Barrasso, Mr. Bond, Mr. 
Bunning, Mr. Coburn, Mr. Cochran, Mr. Cornyn, Mr. DeMint, Mr. Ensign, 
Mr. Enzi, Mrs. Hutchinson, Mr. Inhofe, Mr. Risch, Mr. Sessions, Mr. 
Crapo, Mr. Brownback, Mr. Wicker, and Mr. Thune) submitted an amendment 
intended to be proposed by him to the bill H.R. 2847, making 
appropriations for the Departments of Commerce and Justice, and 
Science, and Related Agencies for the fiscal year ending September 30, 
2010, and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

                       TITLE __--NO COST STIMULUS

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``No Cost Stimulus Act of 
     2010''.

              Subtitle A--Outer Continental Shelf Leasing

     SEC. _11. LEASING PROGRAM CONSIDERED APPROVED.

       (a) In General.--The Draft Proposed Outer Continental Shelf 
     Oil and Gas Leasing Program 2010-2015 issued by the Secretary 
     of the Interior (referred to in this section as the 
     ``Secretary'') under section 18 of the Outer Continental 
     Shelf Lands Act (43 U.S.C. 1344) is considered to have been 
     approved by the Secretary as a final oil and gas leasing 
     program under that section.
       (b) Final Environmental Impact Statement.--The Secretary is 
     considered to have issued a final environmental impact 
     statement for the program described in subsection (a) in 
     accordance with all requirements under section 102(2)(C) of 
     the National Environmental Policy Act of 1969 (42 U.S.C. 
     4332(2)(C)).

     SEC. _12. LEASE SALES.

       (a) Outer Continental Shelf.--
       (1) In general.--Except as provided in paragraph (2), not 
     later than 30 days after the date of enactment of this Act 
     and every 270 days thereafter, the Secretary of the Interior 
     (referred to in this section as the ``Secretary'') shall 
     conduct a lease sale in each outer Continental Shelf planning 
     area for which the Secretary determines that there is a 
     commercial interest in purchasing Federal oil and gas leases 
     for production on the outer Continental Shelf.
       (2) Subsequent determinations and sales.--If the Secretary 
     determines that there is not a commercial interest in 
     purchasing Federal oil and gas leases for production on the 
     outer Continental Shelf in a planning area under this 
     subsection, not later than 2 years after the date of 
     enactment of the determination and every 2 years thereafter, 
     the Secretary shall--
       (A) determine whether there is a commercial interest in 
     purchasing Federal oil and gas leases for production on the 
     outer Continental Shelf in the planning area; and
       (B) if the Secretary determines that there is a commercial 
     interest described in subparagraph (A), conduct a lease sale 
     in the planning area.
       (b) Renewable Energy and Mariculture.--The Secretary may 
     conduct commercial lease sales of resources owned by United 
     States--
       (1) to produce renewable energy (as defined in section 
     203(b) of the Energy Policy Act of 2005 (42 U.S.C. 
     15852(b))); or
       (2) to cultivate marine organisms in the natural habitat of 
     the organisms.

     SEC. _13. COASTAL IMPACT ASSISTANCE PROGRAM AMENDMENTS.

       Section 31 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1356a) is amended--
       (1) in subsection (c), by adding at the end the following:
       ``(5) Application requirements; availability of funding.--
     On approval of a plan by the Secretary under this section, 
     the producing State shall--
       ``(A) not be subject to any additional application or other 
     requirements (other than notifying the Secretary of which 
     projects are being carried out under the plan) to receive the 
     payments; and
       ``(B) be immediately eligible to receive payments under 
     this section.''; and
       (2) by adding at the end the following:
       ``(e) Funding.--
       ``(1) Streamlining.--
       ``(A) Report.--Not later than 180 days after the date of 
     enactment of this subsection, the Secretary of the Interior 
     (acting through the Director of the Minerals Management 
     Service) (referred to in this subsection as the `Secretary') 
     shall develop a plan that addresses streamlining the process 
     by which payments are made under this section, including 
     recommendations for--
       ``(i) decreasing the time required to approve plans 
     submitted under subsection (c)(1);
       ``(ii) ensuring that allocations to producing States under 
     subsection (b) are adequately funded; and
       ``(iii) any modifications to the authorized uses for 
     payments under subsection (d).
       ``(B) Clean water.--Not later than 180 days after the date 
     of enactment of this subsection, the Secretary and the 
     Administrator of the Environmental Protection Agency shall 
     jointly develop procedures for streamlining the permit 
     process required under the

[[Page S630]]

     Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) 
     and State laws for restoration projects that are included in 
     an approved plan under subsection (c).
       ``(C) Environmental requirements.--A project funded under 
     this section that does not involve wetlands shall not be 
     subject to environmental review requirements under Federal 
     law.
       ``(2) Cost-sharing requirements.--Any amounts made 
     available to producing States under this section may be used 
     to meet the cost-sharing requirements of other Federal grant 
     programs, including grant programs that support coastal 
     wetland protection and restoration.
       ``(3) Expedited funding.--Not later than 180 days after the 
     date of enactment of this subsection, the Secretary shall 
     develop a procedure to provide expedited funding to projects 
     under this section based on estimated revenues to ensure that 
     the projects may--
       ``(A) secure additional funds from other sources; and
       ``(B) use the amounts made available under this section on 
     receipt.''.

     SEC. _14. SEAWARD BOUNDARIES OF STATES.

       (a) Seaward Boundaries.--Section 4 of the Submerged Lands 
     Act (43 U.S.C. 1312) is amended by striking ``three 
     geographical miles'' each place it appears and inserting ``12 
     nautical miles''.
       (b) Conforming Amendments.--Section 2 of the Submerged 
     Lands Act (43 U.S.C. 1301) is amended--
       (1) in subsection (a)(2), by striking ``three geographical 
     miles'' and inserting ``12 nautical miles''; and
       (2) in subsection (b)--
       (A) by striking ``three geographical miles'' and inserting 
     ``12 nautical miles''; and
       (B) by striking ``three marine leagues'' and inserting ``12 
     nautical miles''.
       (c) Effect of Amendments.--
       (1) In general.--Subject to paragraphs (2) through (4), the 
     amendments made by this section shall not effect Federal oil 
     and gas mineral rights.
       (2) Submerged land.--Submerged land within the seaward 
     boundaries of States shall be--
       (A) subject to Federal oil and gas mineral rights to the 
     extent provided by law;
       (B) considered to be part of the Federal outer Continental 
     Shelf for purposes of the Outer Continental Shelf Lands Act 
     (43 U.S.C. 1331 et seq.); and
       (C) subject to leasing under the authority of that Act and 
     to laws applicable to the leasing of the oil and gas 
     resources of the Federal outer Continental Shelf.
       (3) Existing leases.--The amendments made by this section 
     shall not affect any Federal oil and gas lease in effect on 
     the date of enactment of this Act.
       (4) Taxation.--
       (A) In general.--Subject to subparagraph (B), a State may 
     exercise all of the sovereign powers of taxation of the State 
     within the entire extent of the seaward boundaries of the 
     State (as extended by the amendments made by this section).
       (B) Limitation.--Nothing in this paragraph affects the 
     authority of a State to tax any Federal oil and gas lease in 
     effect on the date of enactment of this Act.

       Subtitle B--Leasing Program for Land Within Coastal Plain

     SEC. _21. DEFINITIONS.

       In this subtitle:
       (1) Coastal plain.--The term ``Coastal Plain'' means that 
     area identified as the ``1002 Coastal Plain Area'' on the 
     map.
       (2) Federal agreement.--The term ``Federal Agreement'' 
     means the Federal Agreement and Grant Right-of-Way for the 
     Trans-Alaska Pipeline issued on January 23, 1974, in 
     accordance with section 28 of the Mineral Leasing Act (30 
     U.S.C. 185) and the Trans-Alaska Pipeline Authorization Act 
     (43 U.S.C. 1651 et seq.).
       (3) Final statement.--The term ``Final Statement'' means 
     the final legislative environmental impact statement on the 
     Coastal Plain, dated April 1987, and prepared pursuant to 
     section 1002 of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3142) and section 102(2)(C) of 
     the National Environmental Policy Act of 1969 (42 U.S.C. 
     4332(2)(C)).
       (4) Map.--The term ``map'' means the map entitled ``Arctic 
     National Wildlife Refuge'', dated September 2005, and 
     prepared by the United States Geological Survey.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior (or the designee of the Secretary), acting 
     through the Director of the Bureau of Land Management, in 
     consultation with the Director of the United States Fish and 
     Wildlife Service.

     SEC. _22. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.

       (a) In General.--The Secretary shall take such actions as 
     are necessary--
       (1) to establish and implement, in accordance with this 
     subtitle, a competitive oil and gas leasing program that will 
     result in an environmentally sound program for the 
     exploration, development, and production of the oil and gas 
     resources of the Coastal Plain; and
       (2) to administer this subtitle through regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     and other provisions that--
       (A) ensure the oil and gas exploration, development, and 
     production activities on the Coastal Plain will result in no 
     significant adverse effect on fish and wildlife, their 
     habitat, subsistence resources, and the environment; and
       (B) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production to all exploration, development, 
     and production operations under this subtitle in a manner 
     that ensures the receipt of fair market value by the public 
     for the mineral resources to be leased.
       (b) Repeal.--
       (1) Repeal.--Section 1003 of the Alaska National Interest 
     Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
       (2) Conforming amendment.--The table of contents contained 
     in section 1 of that Act (16 U.S.C. 3101 note) is amended by 
     striking the item relating to section 1003.
       (3) Compliance with nepa for other actions.--
       (A) In general.--Before conducting the first lease sale 
     under this subtitle, the Secretary shall prepare an 
     environmental impact statement in accordance with the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.) with respect to the actions authorized by this subtitle 
     that are not referred to in paragraph (2).
       (B) Identification and analysis.--Notwithstanding any other 
     provision of law, in carrying out this paragraph, the 
     Secretary shall not be required--
       (i) to identify nonleasing alternative courses of action; 
     or
       (ii) to analyze the environmental effects of those courses 
     of action.
       (C) Identification of preferred action.--Not later than 18 
     months after the date of enactment of this Act, the Secretary 
     shall--
       (i) identify only a preferred action and a single leasing 
     alternative for the first lease sale authorized under this 
     subtitle; and
       (ii) analyze the environmental effects and potential 
     mitigation measures for those 2 alternatives.
       (D) Public comments.--In carrying out this paragraph, the 
     Secretary shall consider only public comments that are filed 
     not later than 20 days after the date of publication of a 
     draft environmental impact statement.
       (E) Effect of compliance.--Notwithstanding any other 
     provision of law, compliance with this paragraph shall be 
     considered to satisfy all requirements for the analysis and 
     consideration of the environmental effects of proposed 
     leasing under this subtitle.
       (c) Relationship to State and Local Authority.--Nothing in 
     this subtitle expands or limits any State or local regulatory 
     authority.
       (d) Special Areas.--
       (1) Designation.--
       (A) In general.--The Secretary, after consultation with the 
     State of Alaska, the North Slope Borough, Alaska, and the 
     City of Kaktovik, Alaska, may designate not more than 45,000 
     acres of the Coastal Plain as a special area if the Secretary 
     determines that the special area would be of such unique 
     character and interest as to require special management and 
     regulatory protection.
       (B) Sadlerochit spring area.--The Secretary shall designate 
     as a special area in accordance with subparagraph (A) the 
     Sadlerochit Spring area, comprising approximately 4,000 acres 
     as depicted on the map.
       (2) Management.--The Secretary shall manage each special 
     area designated under this subsection in a manner that 
     preserves the unique and diverse character of the area, 
     including fish, wildlife, subsistence resources, and cultural 
     values of the area.
       (3) Exclusion from leasing or surface occupancy.--
       (A) In general.--The Secretary may exclude any special area 
     designated under this subsection from leasing.
       (B) No surface occupancy.--If the Secretary leases all or a 
     portion of a special area for the purposes of oil and gas 
     exploration, development, production, and related activities, 
     there shall be no surface occupancy of the land comprising 
     the special area.
       (4) Directional drilling.--Notwithstanding any other 
     provision of this subsection, the Secretary may lease all or 
     a portion of a special area under terms that permit the use 
     of horizontal drilling technology from sites on leases 
     located outside the special area.
       (e) Limitation on Closed Areas.--The Secretary may not 
     close land within the Coastal Plain to oil and gas leasing or 
     to exploration, development, or production except in 
     accordance with this subtitle.
       (f) Regulations.--
       (1) In general.--Not later than 15 months after the date of 
     enactment of this Act, the Secretary shall promulgate such 
     regulations as are necessary to carry out this subtitle, 
     including rules and regulations relating to protection of the 
     fish and wildlife, fish and wildlife habitat, subsistence 
     resources, and environment of the Coastal Plain.
       (2) Revision of regulations.--The Secretary shall 
     periodically review and, as appropriate, revise the rules and 
     regulations issued under paragraph (1) to reflect any 
     significant biological, environmental, scientific or 
     engineering data that come to the attention of the Secretary.

     SEC. _23. LEASE SALES.

       (a) In General.--Land may be leased pursuant to this 
     subtitle to any person qualified to obtain a lease for 
     deposits of oil and gas under the Mineral Leasing Act (30 
     U.S.C. 181 et seq.).
       (b) Procedures.--The Secretary shall, by regulation, 
     establish procedures for--
       (1) receipt and consideration of sealed nominations for any 
     area in the Coastal

[[Page S631]]

     Plain for inclusion in, or exclusion (as provided in 
     subsection (c)) from, a lease sale;
       (2) the holding of lease sales after that nomination 
     process; and
       (3) public notice of and comment on designation of areas to 
     be included in, or excluded from, a lease sale.
       (c) Lease Sale Bids.--Bidding for leases under this 
     subtitle shall be by sealed competitive cash bonus bids.
       (d) Acreage Minimum in First Sale.--For the first lease 
     sale under this subtitle, the Secretary shall offer for lease 
     those tracts the Secretary considers to have the greatest 
     potential for the discovery of hydrocarbons, taking into 
     consideration nominations received pursuant to subsection 
     (b)(1), but in no case less than 200,000 acres.
       (e) Timing of Lease Sales.--The Secretary shall--
       (1) not later than 22 months after the date of enactment of 
     this Act, conduct the first lease sale under this subtitle;
       (2) not later than 90 days after the date of the completion 
     of the sale, evaluate the bids in the sale and issue leases 
     resulting from the sale; and
       (3) conduct additional sales at appropriate intervals if 
     sufficient interest in exploration or development exists to 
     warrant the conduct of the additional sales.

     SEC. _24. GRANT OF LEASES BY THE SECRETARY.

       (a) In General.--On payment by a lessee of such bonus as 
     may be accepted by the Secretary, the Secretary may grant to 
     the highest responsible qualified bidder in a lease sale 
     conducted pursuant to section _23 a lease for any land on the 
     Coastal Plain.
       (b) Subsequent Transfers.--
       (1) In general.--No lease issued under this subtitle may be 
     sold, exchanged, assigned, sublet, or otherwise transferred 
     except with the approval of the Secretary.
       (2) Condition for approval.--Before granting any approval 
     described in paragraph (1), the Secretary shall consult with 
     and give due consideration to the opinion of the Attorney 
     General.

     SEC. _25. LEASE TERMS AND CONDITIONS.

       An oil or gas lease issued pursuant to this subtitle 
     shall--
       (1) provide for the payment of a royalty of not less than 
     12\1/2\ percent of the amount or value of the production 
     removed or sold from the lease, as determined by the 
     Secretary in accordance with regulations applicable to other 
     Federal oil and gas leases;
       (2) provide that the Secretary may close, on a seasonal 
     basis, such portions of the Coastal Plain to exploratory 
     drilling activities as are necessary to protect caribou 
     calving areas and other species of fish and wildlife;
       (3) require that each lessee of land within the Coastal 
     Plain shall be fully responsible and liable for the 
     reclamation of land within the Coastal Plain and any other 
     Federal land that is adversely affected in connection with 
     exploration, development, production, or transportation 
     activities within the Coastal Plain conducted by the lessee 
     or by any of the subcontractors or agents of the lessee;
       (4) provide that the lessee may not delegate or convey, by 
     contract or otherwise, that reclamation responsibility and 
     liability to another person without the express written 
     approval of the Secretary;
       (5) provide that the standard of reclamation for land 
     required to be reclaimed under this subtitle shall be, to the 
     maximum extent practicable--
       (A) a condition capable of supporting the uses that the 
     land was capable of supporting prior to any exploration, 
     development, or production activities; or
       (B) on application by the lessee, to a higher or better 
     standard, as approved by the Secretary;
       (6) contain terms and conditions relating to protection of 
     fish and wildlife, fish and wildlife habitat, subsistence 
     resources, and the environment as required under section 
     _22(a)(2);
       (7) provide that each lessee, and each agent and contractor 
     of a lessee, use their best efforts to provide a fair share 
     of employment and contracting for Alaska Natives and Alaska 
     Native Corporations from throughout the State of Alaska, as 
     determined by the level of obligation previously agreed to in 
     the Federal Agreement; and
       (8) contain such other provisions as the Secretary 
     determines to be necessary to ensure compliance with this 
     subtitle and the regulations promulgated under this subtitle.

     SEC. _26. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

       (a) No Significant Adverse Effect Standard To Govern 
     Authorized Coastal Plain Activities.--In accordance with 
     section _22, the Secretary shall administer this subtitle 
     through regulations, lease terms, conditions, restrictions, 
     prohibitions, stipulations, or other provisions that--
       (1) ensure, to the maximum extent practicable, that oil and 
     gas exploration, development, and production activities on 
     the Coastal Plain will result in no significant adverse 
     effect on fish and wildlife, fish and wildlife habitat, and 
     the environment;
       (2) require the application of the best commercially 
     available technology for oil and gas exploration, 
     development, and production on all new exploration, 
     development, and production operations; and
       (3) ensure that the maximum surface acreage covered in 
     connection with the leasing program by production and support 
     facilities, including airstrips and any areas covered by 
     gravel berms or piers for support of pipelines, does not 
     exceed 2,000 acres on the Coastal Plain.
       (b) Site-Specific Assessment and Mitigation.--The Secretary 
     shall require, with respect to any proposed drilling and 
     related activities on the Coastal Plain, that--
       (1) a site-specific analysis be made of the probable 
     effects, if any, that the drilling or related activities will 
     have on fish and wildlife, fish and wildlife habitat, 
     subsistence resources, subsistence uses, and the environment;
       (2) a plan be implemented to avoid, minimize, and mitigate 
     (in that order and to the maximum extent practicable) any 
     significant adverse effect identified under paragraph (1); 
     and
       (3) the development of the plan shall occur after 
     consultation with the 1 or more agencies having jurisdiction 
     over matters mitigated by the plan.
       (c) Regulations To Protect Coastal Plain Fish and Wildlife 
     Resources, Subsistence Users, and the Environment.--Before 
     implementing the leasing program authorized by this subtitle, 
     the Secretary shall prepare and issue regulations, lease 
     terms, conditions, restrictions, prohibitions, stipulations, 
     or other measures designed to ensure, to the maximum extent 
     practicable, that the activities carried out on the Coastal 
     Plain under this subtitle are conducted in a manner 
     consistent with the purposes and environmental requirements 
     of this subtitle.
       (d) Compliance With Federal and State Environmental Laws 
     and Other Requirements.--The proposed regulations, lease 
     terms, conditions, restrictions, prohibitions, and 
     stipulations for the leasing program under this subtitle 
     shall require--
       (1) compliance with all applicable provisions of Federal 
     and State environmental law (including regulations);
       (2) implementation of and compliance with--
       (A) standards that are at least as effective as the safety 
     and environmental mitigation measures, as described in items 
     1 through 29 on pages 167 through 169 of the Final Statement, 
     on the Coastal Plain;
       (B) seasonal limitations on exploration, development, and 
     related activities, as necessary, to avoid significant 
     adverse effects during periods of concentrated fish and 
     wildlife breeding, denning, nesting, spawning, and migration;
       (C) design safety and construction standards for all 
     pipelines and any access and service roads that minimize, to 
     the maximum extent practicable, adverse effects on--
       (i) the passage of migratory species (such as caribou); and
       (ii) the flow of surface water by requiring the use of 
     culverts, bridges, or other structural devices;
       (D) prohibitions on general public access to, and use of, 
     all pipeline access and service roads;
       (E) stringent reclamation and rehabilitation requirements 
     in accordance with this subtitle for the removal from the 
     Coastal Plain of all oil and gas development and production 
     facilities, structures, and equipment on completion of oil 
     and gas production operations, except in a case in which the 
     Secretary determines that those facilities, structures, or 
     equipment--
       (i) would assist in the management of the Arctic National 
     Wildlife Refuge; and
       (ii) are donated to the United States for that purpose;
       (F) appropriate prohibitions or restrictions on--
       (i) access by all modes of transportation;
       (ii) sand and gravel extraction; and
       (iii) use of explosives;
       (G) reasonable stipulations for protection of cultural and 
     archaeological resources;
       (H) measures to protect groundwater and surface water, 
     including--
       (i) avoidance, to the maximum extent practicable, of 
     springs, streams, and river systems;
       (ii) the protection of natural surface drainage patterns 
     and wetland and riparian habitats; and
       (iii) the regulation of methods or techniques for 
     developing or transporting adequate supplies of water for 
     exploratory drilling; and
       (I) research, monitoring, and reporting requirements.
       (3) that exploration activities (except surface geological 
     studies) be limited to the period between approximately 
     November 1 and May 1 of each year and be supported, if 
     necessary, by ice roads, winter trails with adequate snow 
     cover, ice pads, ice airstrips, and air transport methods 
     (except that those exploration activities may be permitted at 
     other times if the Secretary determines that the exploration 
     will have no significant adverse effect on fish and wildlife, 
     fish and wildlife habitat, and the environment of the Coastal 
     Plain);
       (4) consolidation of facility siting;
       (5) avoidance or reduction of air traffic-related 
     disturbance to fish and wildlife;
       (6) treatment and disposal of hazardous and toxic wastes, 
     solid wastes, reserve pit fluids, drilling muds and cuttings, 
     and domestic wastewater, including, in accordance with 
     applicable Federal and State environmental laws (including 
     regulations)--
       (A) preparation of an annual waste management report;
       (B) development and implementation of a hazardous materials 
     tracking system; and
       (C) prohibition on the use of chlorinated solvents;
       (7) fuel storage and oil spill contingency planning;

[[Page S632]]

       (8) conduct of periodic field crew environmental briefings;
       (9) avoidance of significant adverse effects on subsistence 
     hunting, fishing, and trapping;
       (10) compliance with applicable air and water quality 
     standards;
       (11) appropriate seasonal and safety zone designations 
     around well sites, within which subsistence hunting and 
     trapping shall be limited; and
       (12) development and implementation of such other 
     protective environmental requirements, restrictions, terms, 
     or conditions as the Secretary determines to be necessary.
       (e) Considerations.--In preparing and issuing regulations, 
     lease terms, conditions, restrictions, prohibitions, or 
     stipulations under this section, the Secretary shall take 
     into consideration--
       (1) the stipulations and conditions that govern the 
     National Petroleum Reserve-Alaska leasing program, as set 
     forth in the 1999 Northeast National Petroleum Reserve-Alaska 
     Final Integrated Activity Plan/Environmental Impact 
     Statement;
       (2) the environmental protection standards that governed 
     the initial Coastal Plain seismic exploration program under 
     parts 37.31 through 37.33 of title 50, Code of Federal 
     Regulations (or successor regulations); and
       (3) the land use stipulations for exploratory drilling on 
     the KIC-ASRC private land described in Appendix 2 of the 
     agreement between Arctic Slope Regional Corporation and the 
     United States dated August 9, 1983.
       (f) Facility Consolidation Planning.--
       (1) In general.--After providing for public notice and 
     comment, the Secretary shall prepare and periodically update 
     a plan to govern, guide, and direct the siting and 
     construction of facilities for the exploration, development, 
     production, and transportation of oil and gas resources from 
     the Coastal Plain.
       (2) Objectives.--The objectives of the plan shall be--
       (A) the avoidance of unnecessary duplication of facilities 
     and activities;
       (B) the encouragement of consolidation of common facilities 
     and activities;
       (C) the location or confinement of facilities and 
     activities to areas that will minimize impact on fish and 
     wildlife, fish and wildlife habitat, subsistence resources, 
     and the environment;
       (D) the use of existing facilities, to the maximum extent 
     practicable; and
       (E) the enhancement of compatibility between wildlife 
     values and development activities.
       (g) Access to Public Land.--The Secretary shall--
       (1) manage public land in the Coastal Plain in accordance 
     with subsections (a) and (b) of section 811 of the Alaska 
     National Interest Lands Conservation Act (16 U.S.C. 3121); 
     and
       (2) ensure that local residents shall have reasonable 
     access to public land in the Coastal Plain for traditional 
     uses.

     SEC. _27. EXPEDITED JUDICIAL REVIEW.

       (a) Filing of Complaints.--
       (1) Deadline.--A complaint seeking judicial review of a 
     provision of this subtitle or an action of the Secretary 
     under this subtitle shall be filed--
       (A) except as provided in subparagraph (B), during the 90-
     day period beginning on the date on which the action being 
     challenged was carried out; or
       (B) in the case of a complaint based solely on grounds 
     arising after the 90-day period described in subparagraph 
     (A), by not later than 90 days after the date on which the 
     complainant knew or reasonably should have known about the 
     grounds for the complaint.
       (2) Venue.--A complaint seeking judicial review of a 
     provision of this subtitle or an action of the Secretary 
     under this subtitle shall be filed in the United States Court 
     of Appeals for the District of Columbia Circuit.
       (3) Scope.--
       (A) In general.--Judicial review of a decision of the 
     Secretary relating to a lease sale under this subtitle 
     (including an environmental analysis of such a lease sale) 
     shall be--
       (i) limited to a review of whether the decision is in 
     accordance with this subtitle; and
       (ii) based on the administrative record of the decision.
       (B) Presumptions.--Any identification by the Secretary of a 
     preferred course of action relating to a lease sale, and any 
     analysis by the Secretary of environmental effects, under 
     this subtitle shall be presumed to be correct unless proven 
     otherwise by clear and convincing evidence.
       (b) Limitation on Other Review.--Any action of the 
     Secretary that is subject to judicial review under this 
     section shall not be subject to judicial review in any civil 
     or criminal proceeding for enforcement.

     SEC. _28. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

       (a) In General.--Notwithstanding any other provision of 
     law, of the amount of adjusted bonus, rental, and royalty 
     revenues from Federal oil and gas leasing and operations 
     authorized under this subtitle for each fiscal year--
       (1) 50 percent shall be paid to the State of Alaska; and
       (2) except as provided in section _31(d), the balance shall 
     be--
       (A) used to offset the provisions of this title; and
       (B) after making the offsets under subparagraph (A), 
     transferred to the ANWR Alternative Energy Trust Fund 
     established by section _32.
       (b) Payments to Alaska.--Payments to the State of Alaska 
     under this section shall be made semiannually.

     SEC. _29. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

       (a) In General.--The Secretary shall issue rights-of-way 
     and easements across the Coastal Plain for the transportation 
     of oil and gas--
       (1) except as provided in paragraph (2), under section 28 
     of the Mineral Leasing Act (30 U.S.C. 185), without regard to 
     title XI of the Alaska National Interest Lands Conservation 
     Act (16 U.S.C. 3161 et seq.); and
       (2) under title XI of the Alaska National Interest Lands 
     Conservation Act (16 U.S.C. 3161 et seq.), for access 
     authorized by sections 1110 and 1111 of that Act (16 U.S.C. 
     3170, 3171).
       (b) Terms and Conditions.--The Secretary shall include in 
     any right-of-way or easement issued under subsection (a) such 
     terms and conditions as may be necessary to ensure that 
     transportation of oil and gas does not result in a 
     significant adverse effect on the fish and wildlife, 
     subsistence resources, their habitat, and the environment of 
     the Coastal Plain, including requirements that facilities be 
     sited or designed so as to avoid unnecessary duplication of 
     roads and pipelines.
       (c) Regulations.--The Secretary shall include in 
     regulations under section _22(f) provisions granting rights-
     of-way and easements described in subsection (a).

     SEC. _30. CONVEYANCE.

       Notwithstanding section 1302(h)(2) of the Alaska National 
     Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), to 
     remove any cloud on title to land, and to clarify land 
     ownership patterns in the Coastal Plain, the Secretary 
     shall--
       (1) to the extent necessary to fulfill the entitlement of 
     the Kaktovik Inupiat Corporation under sections 12 and 14 of 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 
     1613), as determined by the Secretary, convey to that 
     Corporation the surface estate of the land described in 
     paragraph (1) of Public Land Order 6959, in accordance with 
     the terms and conditions of the agreement between the 
     Secretary, the United States Fish and Wildlife Service, the 
     Bureau of Land Management, and the Kaktovik Inupiat 
     Corporation, dated January 22, 1993; and
       (2) convey to the Arctic Slope Regional Corporation the 
     remaining subsurface estate to which that Corporation is 
     entitled under the agreement between that corporation and the 
     United States, dated August 9, 1983.

     SEC. _31. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE 
                   ASSISTANCE.

       (a) Financial Assistance Authorized.--
       (1) In general.--The Secretary may use amounts available 
     from the Coastal Plain Local Government Impact Aid Assistance 
     Fund established by subsection (d) to provide timely 
     financial assistance to entities that are eligible under 
     paragraph (2).
       (2) Eligible entities.--The North Slope Borough, the City 
     of Kaktovik, and any other borough, municipal subdivision, 
     village, or other community in the State of Alaska that is 
     directly impacted by exploration for, or the production of, 
     oil or gas on the Coastal Plain under this subtitle, as 
     determined by the Secretary, shall be eligible for financial 
     assistance under this section.
       (b) Use of Assistance.--Financial assistance under this 
     section may be used only--
       (1) to plan for mitigation, implement a mitigation plan, or 
     maintain a mitigation project to address the potential 
     effects of oil and gas exploration and development on 
     environmental, social, cultural, recreational, and 
     subsistence resources of the community;
       (2) to develop, carry out, and maintain--
       (A) a project to provide new or expanded public facilities; 
     or
       (B) services to address the needs and problems associated 
     with the effects described in paragraph (1), including 
     firefighting, police, water and waste treatment, first 
     responder, and other medical services; and
       (3) to establish a local coordination office, to be managed 
     by the Mayor of the North Slope Borough, in coordination with 
     the City of Kaktovik, Alaska--
       (A) to coordinate with and advise developers on local 
     conditions and the history of areas affected by development; 
     and
       (B) to provide to the Committee on Resources of the House 
     of Representatives and the Committee on Energy and Natural 
     Resources of the Senate annual reports on the status of the 
     coordination between developers and communities affected by 
     development.
       (c) Application.--
       (1) In general.--Any community that is eligible for 
     assistance under this section may submit an application for 
     such assistance to the Secretary, in such form and under such 
     procedures as the Secretary may prescribe by regulation.
       (2) North slope borough communities.--A community located 
     in the North Slope Borough may apply for assistance under 
     this section either directly to the Secretary or through the 
     North Slope Borough.
       (3) Application assistance.--The Secretary shall work 
     closely with and assist the North Slope Borough and other 
     communities eligible for assistance under this section in 
     developing and submitting applications for assistance under 
     this section.
       (d) Establishment of Fund.--
       (1) In general.--There is established in the Treasury the 
     ``Coastal Plain Local Government Impact Aid Assistance Fund'' 
     (referred to in this section as the ``Fund'').

[[Page S633]]

       (2) Use.--Amounts in the Fund may be used only for 
     providing financial assistance under this section.
       (3) Deposits.--Subject to paragraph (4), there shall be 
     deposited into the Fund amounts received by the United States 
     as revenues derived from rents, bonuses, and royalties from 
     Federal leases and lease sales authorized under this 
     subtitle.
       (4) Limitation on deposits.--The total amount in the Fund 
     may not exceed $11,000,000.
       (5) Investment of balances.--The Secretary of the Treasury 
     shall invest amounts in the Fund in interest bearing 
     government securities.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary from the Fund to provide 
     financial assistance under this section $5,000,000 for each 
     fiscal year.

     SEC. _32. ANWR ALTERNATIVE ENERGY TRUST FUND.

       (a) Establishment of Trust Fund.--There is established in 
     the Treasury of the United States a trust fund to be known as 
     the ``ANWR Alternative Energy Trust Fund'', consisting of 
     such amounts as may be transferred to the ANWR Alternative 
     Energy Trust Fund as provided in section _28(a)(2).
       (b) Expenditures From ANWR Alternative Energy Trust Fund.--
       (1) In general.--Amounts in the ANWR Alternative Energy 
     Trust Fund shall be available without further appropriation 
     to carry out specified provisions of the Energy Policy Act of 
     2005 (Public Law 109-58; referred to in this section as 
     ``EPAct2005'') and the Energy Independence and Security Act 
     of 2007 (Public Law 110-140; referred to in this section as 
     ``EISAct2007'') as follows:

 
                                                      The following
                                                   percentage of annual
                                                   receipts to the ANWR
                                                    Alternative Energy
        To carry out the provisions of:           Trust Fund, but not to
                                                   exceed the limit on
                                                  amount authorized, if
                                                           any:
 
EPAct2005:
  Section 210..................................              1.5 percent
  Section 242..................................              1.0 percent
  Section 369..................................              2.0 percent
  Section 401..................................              6.0 percent
  Section 812..................................              6.0 percent
  Section 931..................................             19.0 percent
  Section 942..................................              1.5 percent
  Section 962..................................              3.0 percent
  Section 968..................................              1.5 percent
  Section 1704.................................              6.0 percent
EISAct2007:
  Section 207..................................             15.0 percent
  Section 607..................................              1.5 percent
  Title VI, Subtitle B.........................              3.0 percent
  Title VI, Subtitle C.........................              1.5 percent
  Section 641..................................              9.0 percent
  Title VII, Subtitle A........................             10.0 percent
  Section 1112.................................              1.5 percent
  Section 1304.................................            11.0 percent.
 

       (2) Apportionment of excess amount.--Notwithstanding 
     paragraph (1), any amounts allocated under paragraph (1) that 
     are in excess of the amounts authorized in the applicable 
     cited section or subtitle of EPAct2005 and EISAct2007 shall 
     be reallocated to the remaining sections and subtitles cited 
     in paragraph (1), up to the amounts otherwise authorized by 
     law to carry out those sections and subtitles, in proportion 
     to the amounts authorized by law to be appropriated for those 
     other sections and subtitles.

                  Subtitle C--Regulatory Streamlining

     SEC. _41. COMMERCIAL LEASING PROGRAM FOR OIL SHALE RESOURCES 
                   ON PUBLIC LAND.

       Subsection (e) of the Oil Shale, Tar Sands, and Other 
     Strategic Unconventional Fuels Act of 2005 (42 U.S.C. 
     15927(e)) is amended--
       (1) in the first sentence, by striking ``Not later'' and 
     inserting the following:
       ``(1) In general.--Not later'';
       (2) in the second sentence--
       (A) by striking ``If the Secretary'' and inserting the 
     following:
       ``(2) Lease sales.--
       ``(A) In general.--If the Secretary''; and
       (B) by striking ``may'' and inserting ``shall'';
       (3) in the last sentence, by striking ``Evidence of 
     interest'' and inserting the following:
       ``(B) Evidence of interest.--Evidence of interest''; and
       (4) by adding at the end the following:
       ``(C) Subsequent lease sales.--During any period for which 
     the Secretary determines that there is sufficient support and 
     interest in a State in the development of tar sands and oil 
     shale resources, the Secretary shall--
       ``(i) at least annually, consult with the persons described 
     in paragraph (1) to expedite the commercial leasing program 
     for oil shale resources on public land in the State; and
       ``(ii) at least once every 270 days, conduct a lease sale 
     in the State under the commercial leasing program 
     regulations.''.

     SEC. _42. LICENSING OF NEW NUCLEAR POWER PLANTS.

       (a) Construction Permits and Operating Licenses.--Section 
     185 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2235(b)) 
     is amended in the first sentence by striking ``holding a 
     public hearing'' and inserting ``any public hearing held''.
       (b) Hearings and Judicial Review.--Section 189 a.(1)(A) of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2239(a)(1)(A) is 
     amended--
       (1) by striking the second sentence; and
       (2) in the third sentence--
       (A) by striking ``In cases'' and all that follows through 
     ``hearing, The'' and inserting ``The''; and
       (B) by striking ``an operating license'' and inserting ``a 
     construction permit, an operating license,''.

     SEC. _43. JURISDICTION OVER COVERED ENERGY PROJECTS.

       (a) Definition of Covered Energy Project.--In this section, 
     the term ``covered energy project'' means any action or 
     decision by a Federal official regarding--
       (1) the leasing of Federal land (including submerged land) 
     for the exploration, development, production, processing, or 
     transmission of oil, natural gas, or any other source or form 
     of energy, including actions and decisions regarding the 
     selection or offering of Federal land for such leasing; or
       (2) any action under such a lease, except that this section 
     and Act shall not apply to a dispute between the parties to a 
     lease entered into a provision of law authorizing the lease 
     regarding obligations under the lease or the alleged breach 
     of the lease.
       (b) Exclusive Jurisdiction Over Causes and Claims Relating 
     to Covered Energy Projects.--Notwithstanding any other 
     provision of law, the United States District Court for the 
     District of Columbia shall have exclusive jurisdiction to 
     hear all causes and claims under this section or any other 
     Act that arise from any covered energy project.
       (c) Time for Filing Complaint.--
       (1) In general.--Each case or claim described in subsection 
     (b) shall be filed not later than the end of the 60-day 
     period beginning on the date of the action or decision by a 
     Federal official that constitutes the covered energy project 
     concerned.
       (2) Prohibition.--Any cause or claim described in 
     subsection (b) that is not filed within the time period 
     described in paragraph (1) shall be barred.
       (d) District Court for the District of Columbia Deadline.--
       (1) In general.--Each proceeding that is subject to 
     subsection (b) shall--
       (A) be resolved as expeditiously as practicable and in any 
     event not more than 180 days after the cause or claim is 
     filed; and
       (B) take precedence over all other pending matters before 
     the district court.
       (2) Failure to comply with deadline.--If an interlocutory 
     or final judgment, decree, or order has not been issued by 
     the district court by the deadline required under this 
     section, the cause or claim shall be dismissed with prejudice 
     and all rights relating to the cause or claim shall be 
     terminated.
       (e) Ability To Seek Appellate Review.--An interlocutory or 
     final judgment, decree, or order of the district court under 
     this section may be reviewed by no other court except the 
     Supreme Court.
       (f) Deadline for Appeal to the Supreme Court.--If a writ of 
     certiorari has been granted by the Supreme Court pursuant to 
     subsection (e), the interlocutory or final judgment, decree, 
     or order of the district court shall be resolved as 
     expeditiously as practicable and in any event not more than 
     180 days after the interlocutory or final judgment, decree, 
     order of the district court is issued.

     SEC. _44. ENVIRONMENTAL IMPACT STATEMENTS.

       Title I of the National Environmental Policy Act of 1969 
     (42 U.S.C. 4331 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 106. COMPLETION AND REVIEW OF ENVIRONMENTAL IMPACT 
                   STATEMENTS.

       ``(a) Completion.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, each review carried out under section 102(2)(C) with 
     respect to any action taken under any provision of law, or 
     for which funds are made available under any provision of 
     law, shall be completed not later than the date that is 270 
     days after the commencement of the review.
       ``(2) Failure to complete review.--If a review described in 
     paragraph (1) has not been completed for an action subject to 
     section 102(2)(C) by the date specified in paragraph (1)--
       ``(A) the action shall be considered to have no significant 
     impact described in section 102(2)(C); and
       ``(B) that classification shall be considered to be a final 
     agency action.
       ``(b) Lead Agency.--The lead agency for a review of an 
     action under this section shall be the Federal agency to 
     which funds are made available for the action.
       ``(c) Review.--
       ``(1) Administrative appeals.--There shall be a single 
     administrative appeal for each review carried out pursuant to 
     section 102(2)(C).
       ``(2) Judicial review.--
       ``(A) In general.--On resolution of the administrative 
     appeal, judicial review of the final agency decision after 
     exhaustion of administrative remedies shall lie with the 
     United States Court of Appeals for the District of Columbia 
     Circuit.
       ``(B) Administrative record.--An appeal to the court 
     described in subparagraph (A) shall be based only on the 
     administrative record.
       ``(C) Pendency of judicial review.--After an agency has 
     made a final decision with respect to a review carried out 
     under this subsection, the decision shall be effective during 
     the course of any subsequent appeal to a court described in 
     subparagraph (A).
       ``(3) Civil action.--Each civil action covered by this 
     section shall be considered to arise under the laws of the 
     United States.''.

     SEC. _45. CLEAN AIR REGULATION.

       (a) Regulation of Greenhouse Gases.--Section 302(g) of the 
     Clean Air Act (42 U.S.C. 7602(g)) is amended--
       (1) by striking ``(g) The term'' and inserting the 
     following:

[[Page S634]]

       ``(g) Air Pollutant.--
       ``(1) In general.--The term'';
       (2) by striking ``Such term'' and inserting the following:
       ``(2) Inclusions.--The term `air pollutant' ''; and
       (3) by adding at the end the following:
       ``(3) Exclusions.--The term `air pollutant' does not 
     include carbon dioxide, methane from agriculture or 
     livestock, or water vapor.''.
       (b) Emission Waivers.--The Administrator of the 
     Environmental Protection Agency shall not grant to any State 
     any waiver of Federal preemption of motor vehicle standards 
     under section 209(b) of the Clean Air Act (42 U.S.C. 7543(b)) 
     for preemption under that Act for any regulation of the State 
     to control greenhouse gas emissions from motor vehicles.

     SEC. _46. ENDANGERED SPECIES.

       (a) Emergencies.--Section 10 of the Endangered Species Act 
     of 1973 (16 U.S.C. 1539) is amended by adding at the end the 
     following:
       ``(k) Emergencies.--On the declaration of an emergency by 
     the Governor of a State, the Secretary shall, for the 
     duration of the emergency, temporarily exempt from the 
     prohibition against taking, and the prohibition against the 
     adverse modification of critical habitat, under this Act any 
     action that is reasonably necessary to avoid or ameliorate 
     the impact of the emergency, including the operation of any 
     water supply or flood control project by a Federal agency.''.
       (b) Prohibition of Consideration of Impact of Greenhouse 
     Gas.--
       (1) In general.--The Endangered Species Act of 1973 (16 
     U.S.C. 1531 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 19. PROHIBITION OF CONSIDERATION OF IMPACT OF 
                   GREENHOUSE GAS.

       ``(a) Definition of Greenhouse.--In this section, the term 
     `greenhouse gas' means any of--
       ``(1) carbon dioxide;
       ``(2) methane;
       ``(3) nitrous oxide;
       ``(4) sulfur hexafluoride;
       ``(5) a hydrofluorocarbon;
       ``(6) a perfluorocarbon; or
       ``(7) any other anthropogenic gas designated by the 
     Secretary for purposes of this section.
       ``(b) Impact of Greenhouse Gas.--The impact of greenhouse 
     gas on any species of fish or wildlife or plant shall not be 
     considered for any purpose in the implementation of this 
     Act.''.
       (2) Conforming amendment.--The table of contents in the 
     first section of the Endangered Species Act of 1973 (16 
     U.S.C. prec. 1531) is amended by adding at the end the 
     following:

``Sec. 18. Annual cost analysis by the Fish and Wildlife Service.
``Sec. 19. Prohibition of consideration of impact of greenhouse gas.''.
                                 ______
                                 
  SA 3319. Mr. THUNE submitted an amendment intended to be proposed to 
amendment SA 3310 proposed by Mr. Reid to the bill H.R. 2847, making 
appropriations for the Departments of Commerce and Justice, and 
Science, and Related Agencies for the fiscal year ending September 30, 
2010, and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike subtitle B of title V and insert the following:

                 Subtitle B--Transfer of Stimulus Funds

     SEC. 551. TRANSFER OF STIMULUS FUNDS.

       Notwithstanding section 5 of the American Recovery and 
     Reinvestment Act of 2009 (Pub. Law 111-5), from the amounts 
     appropriated or made available and remaining unobligated 
     under such Act, the Director of the Office of Management and 
     Budget shall transfer from time to time to the general fund 
     of the Treasury an amount equal to the sum of the amount of 
     any net reduction in revenues and the amount of any net 
     increase in spending resulting from the enactment of this 
     Act.

                       TITLE VI--BUSINESS RELIEF

                     Subtitle A--General Provisions

     SEC. 601. PERMANENT INCREASE IN LIMITATIONS ON EXPENSING OF 
                   CERTAIN DEPRECIABLE BUSINESS ASSETS.

       (a) Nonapplication of Amendments.--The amendments made by 
     section 201 of this Act shall not apply.
       (b) Permanent Increase.--Subsection (b) of section 179 is 
     amended--
       (1) by striking ``$25,000'' and all that follows in 
     paragraph (1) and inserting ``$500,000.'',
       (2) by striking ``$200,000'' and all that follows in 
     paragraph (2) and inserting ``$2,000,000'',
       (3) by striking ``after 2007 and before 2011, the $120,000 
     and $500,000'' in paragraph (5)(A) and inserting ``after 
     2009, the $500,000 and the $2,000,000'',
       (4) by striking ``2006'' in paragraph (5)(A)(ii) and 
     inserting ``2008'', and
       (5) by striking paragraph (7).
       (c) Permanent Expensing of Computer Software.--Section 
     179(d)(1)(A)(ii) is amended by striking ``and before 2011''.
       (d) Effective Date.--The amendments made by subsections (b) 
     and (c) shall apply to taxable years beginning after December 
     31, 2008.

     SEC. 602. EXTENSION OF ADDITIONAL FIRST-YEAR DEPRECIATION FOR 
                   50 PERCENT OF THE BASIS OF CERTAIN QUALIFIED 
                   PROPERTY.

       (a) In General.--Paragraph (2) of section 168(k), as 
     amended by the American Recovery and Reinvestment Tax Act of 
     2009, is amended--
       (1) by striking ``January 1, 2011'' in subparagraph (A)(iv) 
     and inserting ``January 1, 2012'', and
       (2) by striking ``January 1, 2010'' each place it appears 
     and inserting ``January 1, 2011''.
       (b) Conforming Amendments.--
       (1) The heading for subsection (k) of section 168, as 
     amended by the American Recovery and Reinvestment Tax Act of 
     2009, is amended by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.
       (2) The heading for clause (ii) of section 168(k)(2)(B), as 
     so amended, is amended by striking ``Pre-january 1, 2010'' 
     and inserting ``Pre-january 1, 2011''.
       (3) Subparagraph (D) of section 168(k)(4) is amended by 
     striking ``and'' at the end of clause (ii), by striking the 
     period at the end of clause (iii) and inserting a comma, and 
     by adding at the end the following new clauses:
       ``(iv) `January 1, 2011' shall be substituted for `January 
     1, 2012' in subparagraph (A)(iv) thereof, and
       ``(v) `January 1, 2010' shall be substituted for `January 
     1, 2011' each place it appears in subparagraph (A) 
     thereof.''.
       (4) Subparagraph (B) of section 168(l)(5), as so amended, 
     is amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (5) Subparagraph (C) of section 168(n)(2), as so amended, 
     is amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (6) Subparagraph (D) of section 1400L(b)(2) is amended by 
     striking ``January 1, 2010'' and inserting ``January 1, 
     2011''.
       (7) Subparagraph (B) of section 1400N(d)(3), as so amended, 
     is amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 603. INCREASED EXCLUSION AND OTHER MODIFICATIONS 
                   APPLICABLE TO QUALIFIED SMALL BUSINESS STOCK.

       (a) Increased Exclusion.--
       (1) In general.--Subsection (a) of section 1202 is amended 
     to read as follows:
       ``(a) Exclusion.--
       ``(1) In general.--In the case of a taxpayer other than a 
     corporation, gross income shall not include the applicable 
     percentage of any gain from the sale or exchange of qualified 
     small business stock held for more than 5 years.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage is--
       ``(A) 50 percent, in the case of stock issued after August 
     10, 1993, and on or before February 18, 2009,
       ``(B) 75 percent, in the case of stock issued after 
     February 18, 2009, and on or before the date of the enactment 
     of the Hiring Incentives to Restore Employment Act, and
       ``(C) 100 percent, in the case of stock issued after the 
     date of the enactment of the Hiring Incentives to Restore 
     Employment Act.
       ``(3) Empowerment zone businesses.--
       ``(A) In general.--In the case of qualified small business 
     stock acquired after December 21, 2000, and on or before 
     February 18, 2009, in a corporation which is a qualified 
     business entity (as defined in section 1397C(b)) during 
     substantially all of the taxpayer's holding period for such 
     stock, paragraph (2)(A) shall be applied by substituting `60 
     percent' for `50 percent'.
       ``(B) Certain rules to apply.--Rules similar to the rules 
     of paragraphs (5) and (7) of section 1400B(b) shall apply for 
     purposes of this paragraph.
       ``(C) Gain after 2014 not qualified.--Subparagraph (A) 
     shall not apply to gain attributable to periods after 
     December 31, 2014.
       ``(D) Treatment of dc zone.--The District of Columbia 
     Enterprise Zone shall not be treated as an empowerment zone 
     for purposes of this paragraph.''.
       (2) Conforming amendments.--
       (A) The heading for section 1202 is amended by striking 
     ``PARTIAL''.
       (B) The item relating to section 1202 in the table of 
     sections for part I of subchapter P of chapter 1 is amended 
     by striking ``Partial exclusion'' and inserting 
     ``Exclusion''.
       (C) Section 1223(13) is amended by striking 
     ``1202(a)(2),''.
       (b) Repeal of Minimum Tax Preference.--Paragraph (7) of 
     section 57(a) is amended by adding at the end the following: 
     ``The preceding sentence shall not apply to stock issued 
     after the date of the enactment of the Hiring Incentives to 
     Restore Employment Act.''.
       (c) Increase in Limitation.--
       (1) In general.--Subparagraph (A) of section 1202(b)(1) is 
     amended by striking ``$10,000,000'' and inserting 
     ``$15,000,000''.
       (2) Married individuals.--Subparagraph (A) of section 
     1202(b)(3) is amended by striking ``paragraph (1)(A) shall be 
     applied by substituting `$5,000,000' for `$10,000,000' '' and 
     inserting ``the amount under paragraph (1)(A) shall be half 
     of the amount otherwise in effect''.
       (d) Modification of Definition of Qualified Small 
     Business.--Section 1202(d)(1) is amended by striking 
     ``$50,000,000'' each place it appears and inserting 
     ``$75,000,000''.
       (e) Inflation Adjustments.--Section 1202 is amended by 
     redesignating subsection (k) as subsection (l) and by 
     inserting after subsection (j) the following new subsection:
       ``(k) Inflation Adjustment.--
       ``(1) In general.--In the case of any taxable year 
     beginning after 2010, the $15,000,000 amount in subsection 
     (b)(1)(A), the $75,000,000 amount in subsection (d)(1)(A), 
     and the $75,000,000 amount in subsection (d)(1)(B)

[[Page S635]]

     shall each be increased by an amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost of living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2009' 
     for `calendar year 1992' in subparagraph (B) thereof.
       ``(2) Rounding.--If any amount as adjusted under paragraph 
     (1) is not a multiple of $1,000,000 such amount shall be 
     rounded to the next lowest multiple of $1,000,000.''.
       (f) Effective Dates.--
       (1) In general.--The amendments made by subsections (a), 
     (b), and (d) shall apply to stock acquired after the date of 
     the enactment of this Act.
       (2) Limitation; inflation adjustment.--The amendments made 
     by subsections (c) and (e) shall apply to taxable years 
     ending after the date of the enactment of this Act.

     SEC. 604. DEDUCTION FOR ELIGIBLE SMALL BUSINESS INCOME.

       (a) In General.--Paragraph (1) of section 199(a) is amended 
     to read as follows:
       ``(1) In general.--There shall be allowed as a deduction an 
     amount equal to the sum of--
       ``(A) 9 percent of the lesser of--
       ``(i) the qualified production activities income of the 
     taxpayer for the taxable year, or
       ``(ii) taxable income (determined without regard to this 
     section) for the taxable year, and
       ``(B) in the case of an eligible small business for any 
     taxable year beginning after 2009, 20 percent of the lesser 
     of--
       ``(i) the eligible small business income of the taxpayer 
     for the taxable year, or
       ``(ii) taxable income (determined without regard to this 
     section) for the taxable year.''.
       (b) Eligible Small Business; Eligible Small Business 
     Income.--Section 199 is amended by adding at the end the 
     following new subsection:
       ``(e) Eligible Small Business; Eligible Small Business 
     Income.--
       ``(1) Eligible small business.--For purposes of this 
     section, the term `eligible small business' means, with 
     respect to any taxable year--
       ``(A) a corporation the stock of which is not publicly 
     traded, or
       ``(B) a partnership,

     which meets the gross receipts test of section 448(c) 
     (determined by substituting `$50,000,000' for `$5,000,000' 
     each place it appears in such section) for the taxable year 
     (or, in the case of a sole proprietorship, which would meet 
     such test if such proprietorship were a corporation).
       ``(2) Eligible small business income.--
       ``(A) In general.--For purposes of this section, the term 
     `eligible small business income' means the excess of--
       ``(i) the income of the eligible small business which--

       ``(I) is attributable to the actual conduct of a trade or 
     business,
       ``(II) is income from sources within the United States 
     (within the meaning of section 861), and
       ``(III) is not passive income (as defined in section 
     904(d)(2)(B)), over

       ``(ii) the sum of--

       ``(I) the cost of goods sold that are allocable to such 
     income, and
       ``(II) other expenses, losses, or deductions (other than 
     the deduction allowed under this section), which are properly 
     allocable to such income.

       ``(B) Exceptions.--The following shall not be treated as 
     income of an eligible small business for purposes of 
     subparagraph (A):
       ``(i) Any income which is attributable to any property 
     described in section 1400N(p)(3).
       ``(ii) Any income which is attributable to the ownership or 
     management of any professional sports team.
       ``(iii) Any income which is attributable to a trade or 
     business described in subparagraph (B) of section 1202(e)(3).
       ``(iv) Any income which is attributable to any property 
     with respect to which records are required to be maintained 
     under section 2257 of title 18, United States Code.
       ``(C) Allocation rules, etc.--Rules similar to the rules of 
     paragraphs (2), (3), (4)(D), and (7) of subsection (c) shall 
     apply for purposes of this paragraph.
       ``(3) Special rules.--Except as otherwise provided by the 
     Secretary, rules similar to the rules of subsection (d) shall 
     apply for purposes of this subsection.''.
       (c) Conforming Amendment.--Section 199(a)(2) is amended by 
     striking ``paragraph (1)'' and inserting ``paragraph 
     (1)(A)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 605. NONAPPLICATION OF CERTAIN LABOR STANDARDS.

       Section 1601 of the American Recovery and Reinvestment Tax 
     Act of 2009 shall not apply to any specified tax credit bond 
     described in section 6431(f)(2)(A) of the Internal Revenue 
     Code of 1986 (as added by section 301 of this Act).

     SEC. 606. E-VERIFY PROGRAM PARTICIPATION REQUIREMENT FOR 
                   EMPLOYERS RECEIVING PAYROLL TAX FORGIVENESS.

       (a) In General.--Paragraph (2) of section 3111(d), as added 
     by section 101, is amended by adding at the end the following 
     new subparagraph:
       ``(C) E-Verify program requirement.--The term `qualified 
     employer' shall not include any employer that does not 
     participate in the E-Verify Program carried out under 
     subtitle A of title IV of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 as of the hiring date of 
     any qualified individual.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply as if included in section 101 of this Act.

                   Subtitle B--Pension Funding Relief

                     PART I--SINGLE EMPLOYER PLANS

     SEC. 611. EXTENDED PERIOD FOR SINGLE-EMPLOYER DEFINED BENEFIT 
                   PLANS TO AMORTIZE CERTAIN SHORTFALL 
                   AMORTIZATION BASES.

       (a) Amendments to ERISA.--
       (1) In general.--Paragraph (2) of section 303(c) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1083(c)) is amended by adding at the end the following 
     subparagraph:
       ``(D) Special election for eligible plan years.--
       ``(i) In general.--If a plan sponsor elects to apply this 
     subparagraph with respect to the shortfall amortization base 
     of a plan for any eligible plan year (in this subparagraph 
     and paragraph (7) referred to as an `election year'), then, 
     notwithstanding subparagraphs (A) and (B)--

       ``(I) the shortfall amortization installments with respect 
     to such base shall be determined under clause (ii) or (iii), 
     whichever is specified in the election, and
       ``(II) the shortfall amortization installment for any plan 
     year in the 9-plan-year period described in clause (ii) or 
     the 15-plan-year period described in clause (iii), 
     respectively, with respect to such shortfall amortization 
     base is the annual installment determined under the 
     applicable clause for that year for that base.

       ``(ii) 2 plus 7 amortization schedule.--The shortfall 
     amortization installments determined under this clause are--

       ``(I) in the case of the first 2 plan years in the 9-plan-
     year period beginning with the election year, interest on the 
     shortfall amortization base of the plan for the election year 
     (determined using the effective interest rate for the plan 
     for the election year), and
       ``(II) in the case of the last 7 plan years in such 9-plan-
     year period, the amounts necessary to amortize the remaining 
     balance of the shortfall amortization base of the plan for 
     the election year in level annual installments over such last 
     7 plan years (using the segment rates under subparagraph (C) 
     for the election year).

       ``(iii) 15-year amortization.--The shortfall amortization 
     installments determined under this subparagraph are the 
     amounts necessary to amortize the shortfall amortization base 
     of the plan for the election year in level annual 
     installments over the 15-plan-year period beginning with the 
     election year (using the segment rates under subparagraph (C) 
     for the election year).
       ``(iv) Election.--

       ``(I) In general.--The plan sponsor of a plan may elect to 
     have this subparagraph apply to not more than 2 eligible plan 
     years with respect to the plan, except that in the case of a 
     plan described in section 106 of the Pension Protection Act 
     of 2006, the plan sponsor may only elect to have this 
     subparagraph apply to a plan year beginning in 2011.
       ``(II) Amortization schedule.--Such election shall specify 
     whether the amortization schedule under clause (ii) or (iii) 
     shall apply to an election year, except that if a plan 
     sponsor elects to have this subparagraph apply to 2 eligible 
     plan years, the plan sponsor must elect the same schedule for 
     both years.
       ``(III) Other rules.--Such election shall be made at such 
     time, and in such form and manner, as shall be prescribed by 
     the Secretary of the Treasury, and may be revoked only with 
     the consent of the Secretary of the Treasury. The Secretary 
     of the Treasury shall, before granting a revocation request, 
     provide the Pension Benefit Guaranty Corporation an 
     opportunity to comment on the conditions applicable to the 
     treatment of any portion of the election year shortfall 
     amortization base that remains unamortized as of the 
     revocation date.

       ``(v) Eligible plan year.--For purposes of this 
     subparagraph, the term `eligible plan year' means any plan 
     year beginning in 2008, 2009, 2010, or 2011, except that a 
     plan year shall only be treated as an eligible plan year if 
     the due date under subsection (j)(1) for the payment of the 
     minimum required contribution for such plan year occurs on or 
     after the date of the enactment of this subparagraph.
       ``(vi) Reporting.--A plan sponsor of a plan who makes an 
     election under clause (i) shall inform the Pension Benefit 
     Guaranty Corporation of such election in such form and manner 
     as the Director of the Pension Benefit Guaranty Corporation 
     may prescribe.
       ``(vii) Increases in required installments in certain 
     cases.--For increases in required contributions in cases of 
     excess compensation or extraordinary dividends or stock 
     redemptions, see paragraph (7).''.
       (2) Increases in required installments in certain cases.--
     Section 303(c) of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1083(c)) is amended by adding at the end 
     the following paragraph:
       ``(7) Increases in alternate required installments in cases 
     of excess compensation or extraordinary dividends or stock 
     redemptions.--
       ``(A) In general.--If there is an installment acceleration 
     amount with respect to a plan for any plan year in the 9-
     plan-year or 15-plan-year period, whichever is applicable, 
     with respect to an election year under paragraph (2)(D), then 
     the shortfall amortization

[[Page S636]]

     installment otherwise determined and payable under such 
     paragraph for such plan year shall, subject to the limitation 
     under subparagraph (B), be increased by such amount.
       ``(B) Total installments limited to shortfall base.--
     Subject to rules prescribed by the Secretary of the Treasury, 
     if a shortfall amortization installment with respect to any 
     shortfall amortization base for an election year is required 
     to be increased for any plan year under subparagraph (A)--
       ``(i) such increase shall not result in the amount of such 
     installment exceeding the present value of such installment 
     and all succeeding installments with respect to such base 
     (determined without regard to such increase but after 
     application of clause (ii)), and
       ``(ii) subsequent shortfall amortization installments with 
     respect to such base shall, in reverse order of the otherwise 
     required installments, be reduced to the extent necessary to 
     limit the present value of such subsequent shortfall 
     amortization installments (after application of this 
     paragraph) to the present value of the remaining unamortized 
     shortfall amortization base.
       ``(C) Installment acceleration amount.--For purposes of 
     this paragraph--
       ``(i) In general.--The term `installment acceleration 
     amount' means, with respect to any plan year, the sum of--

       ``(I) the aggregate amount of excess employee compensation 
     determined under subparagraph (D) with respect to all 
     employees for the plan year, plus
       ``(II) the aggregate amount of extraordinary dividends and 
     redemptions determined under subparagraph (E) for the plan 
     year.

       ``(ii) Limitation to aggregate reduced required 
     contributions.--The installment acceleration amount for any 
     plan year shall not exceed the excess (if any) of--

       ``(I) the sum of the shortfall amortization installments 
     for the plan year and all preceding plan years in the 
     amortization period elected under paragraph (2)(D) with 
     respect to the shortfall amortization base with respect to an 
     election year, determined without regard to paragraph (2)(D) 
     and this paragraph, over
       ``(II) the sum of the shortfall amortization installments 
     for such plan year and all such preceding plan years, 
     determined after application of paragraph (2)(D) (and in the 
     case of any preceding plan year, after application of this 
     paragraph).

       ``(iii) Carryover of excess installment acceleration 
     amounts.--

       ``(I) In general.--If the installment acceleration amount 
     for any plan year (determined without regard to clause(ii)) 
     exceeds the limitation under clause (ii), then, subject to 
     subclause (II), such excess shall be treated as an 
     installment acceleration amount with respect to the 
     succeeding plan year.
       ``(II) Cap to apply.--If any amount treated as an 
     installment acceleration amount under subclause (I) or this 
     subclause with respect any succeeding plan year, when added 
     to other installment acceleration amounts (determined without 
     regard to clause (ii)) with respect to the plan year, exceeds 
     the limitation under clause (ii), the portion of such amount 
     representing such excess shall be treated as an installment 
     acceleration amount with respect to the next succeeding plan 
     year.
       ``(III) Ordering rules.--For purposes of applying subclause 
     (II), installment acceleration amounts for the plan year 
     (determined without regard to any carryover under this 
     clause) shall be applied first against the limitation under 
     clause (ii) and then carryovers to such plan year shall be 
     applied against such limitation on a first-in, first-out 
     basis.

       ``(D) Excess employee compensation.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `excess employee compensation' 
     means, with respect to any employee for any plan year, the 
     excess (if any) of--

       ``(I) the aggregate amount includible in income under 
     chapter 1 of the Internal Revenue Code of 1986 for 
     remuneration during the calendar year in which such plan year 
     begins for services performed by the employee for the plan 
     sponsor (whether or not performed during such calendar year), 
     over
       ``(II) $1,000,000.

       ``(ii) Amounts set aside for nonqualified deferred 
     compensation.--If during any calendar year assets are set 
     aside or reserved (directly or indirectly) in a trust (or 
     other arrangement as determined by the Secretary of the 
     Treasury), or transferred to such a trust or other 
     arrangement, by a plan sponsor for purposes of paying 
     deferred compensation of an employee under a nonqualified 
     deferred compensation plan (as defined in section 409A of 
     such Code) of the plan sponsor, then, for purposes of clause 
     (i), the amount of such assets shall be treated as 
     remuneration of the employee includible in income for the 
     calendar year unless such amount is otherwise includible in 
     income for such year. An amount to which the preceding 
     sentence applies shall not be taken into account under this 
     paragraph for any subsequent calendar year.
       ``(iii) Only remuneration for certain post-2009 services 
     counted.--Remuneration shall be taken into account under 
     clause (i) only to the extent attributable to services 
     performed by the employee for the plan sponsor after February 
     4, 2010.
       ``(iv) Exception for certain equity payments.--

       ``(I) In general.--Any amount includible in income with 
     respect to the granting on or after February 4, 2010, of an 
     equity interest described in subclause (II) shall not be 
     taken into account under clause (i)(I), but only if all 
     portions of such interest remain subject to a substantial 
     risk of forfeiture (other than in the case of death or 
     disability) at all times before the date which is 5 years 
     after the date on which such interest is granted.
       ``(II) Equity interests.--An equity interest is described 
     in this subclause if it is a stock option which is granted at 
     its fair market value on the date of the grant or a stock 
     appreciation right which is granted at its fair market value 
     on the date of the grant.
       ``(III) Substantial risk of forfeiture.--The term 
     `substantial risk of forfeiture' has the meaning given such 
     term by section 83(c)(1) of the Internal Revenue Code of 
     1986.
       ``(IV) Secretarial authority.--The Secretary of the 
     Treasury may by regulation provide for the application of 
     this clause in the case of a person other than a corporation.

       ``(v) Other exceptions.--The following amounts includible 
     in income shall not be taken into account under clause 
     (i)(I):

       ``(I) Commissions.--Any remuneration payable on a 
     commission basis solely on account of income directly 
     generated by the individual performance of the individual to 
     whom such remuneration is payable.
       ``(II) Payments under existing contracts.--Any remuneration 
     payable under a written binding contract that was in effect 
     on February 4, 2010, and which was not modified in any 
     material respect before such remuneration is repaid. This 
     subclause shall not apply to bonus payments payable under 
     such a contract during a calendar year to the extent that the 
     aggregate amount of such bonus payments during such calendar 
     year exceeds $100,000.

       ``(vi) Self-employed individual treated as employee.--The 
     term `employee' includes, with respect to a calendar year, a 
     self-employed individual who is treated as an employee under 
     section 401(c) of such Code for the taxable year ending 
     during such calendar year, and the term `compensation' shall 
     include earned income of such individual with respect to such 
     self-employment.
       ``(vii) Indexing of amount.--In the case of any calendar 
     year beginning after 2010, the dollar amount under clause 
     (i)(II) shall be increased by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) of such Code for the calendar year, 
     determined by substituting `calendar year 2009' for `calendar 
     year 1992' in subparagraph (B) thereof.

     If the amount of any increase under clause (i) is not a 
     multiple of $1,000, such increase shall be rounded to the 
     next lowest multiple of $1,000.
       ``(E) Extraordinary dividends and redemptions.--
       ``(i) In general.--The amount determined under this 
     subparagraph for any plan year is the sum of--

       ``(I) the aggregate amount of extraordinary dividends 
     declared during the plan year by the plan sponsor and 
     required to be reported under section 4043(c)(11), plus
       ``(II) if the plan sponsor redeems, in any 12-month period 
     ending during the plan year, an aggregate of 10 percent or 
     more of the total combined voting power of all classes of 
     stock entitled to vote, or an aggregate of 10 percent or more 
     of the total value of shares of all classes of stock, of the 
     plan sponsor, the aggregate fair market value of the stock so 
     redeemed.

       ``(ii) Only certain post-2009 dividends and redemptions 
     counted.--For purposes of clause (i)--

       ``(I) dividends shall be taken into account only if 
     declared after February 4, 2010, and
       ``(II) if clause (i)(II) otherwise applies for any plan 
     year (determined without regard to this subclause), only the 
     fair market value of redemptions occurring after February 4, 
     2010, shall be taken into account in determining the amount 
     under such clause for the plan year.

       ``(iii) Exception for intra-group dividends.--An 
     extraordinary dividend paid by one member of a controlled 
     group (as defined in section 302(d)(3)) to another member of 
     such group shall not be taken into account under clause 
     (i)(I).
       ``(F) Other definitions and rules.--For purposes of this 
     paragraph--
       ``(i) Bonus payment.--The term `bonus payment' means any 
     payment which is a payment for services rendered and which is 
     in addition to any amount payable to such individual for 
     services performed by such individual at a regular hourly, 
     daily, weekly, monthly, or similar periodic rate. Such term 
     does not include payments to an employee as commissions, 
     contributions to any qualified retirement plan (as defined in 
     section 4974(c) of the Internal Revenue Code of 1986), 
     welfare and fringe benefits, overtime pay, or expense 
     reimbursements. The Secretary of the Treasury may 
     recharacterize a payment that is a disguised bonus as a bonus 
     payment for purposes of this paragraph.
       ``(ii) Plan sponsor.--The term ` plan sponsor' includes any 
     member of the plan sponsor's controlled group (as defined in 
     section 302(d)(3)).
       ``(iii) Elections for multiple plans.--If a plan sponsor 
     makes elections under paragraph (2)(D) with respect to 2 or 
     more plans, the Secretary of the Treasury shall provide rules 
     for the application of this paragraph to such plans, 
     including rules for the ratable allocation of any installment 
     acceleration amount among such plans on the basis of

[[Page S637]]

     each plan's relative reduction in the plan's shortfall 
     amortization installment for the first plan year in the 
     amortization period described in subparagraph (A) (determined 
     without regard to this paragraph).
       ``(iv) Mergers and acquisitions.--The Secretary of the 
     Treasury shall prescribe rules for the application of 
     paragraph (2)(D) and this paragraph in any case where there 
     is a merger or acquisition involving a plan sponsor making 
     the election under paragraph (2)(D).''.
       (3) Conforming amendments.--Section 303 of such Act (29 
     U.S.C. 1083) is amended--
       (A) in subsection (c)(1), by striking ``the shortfall 
     amortization bases for such plan year and each of the 6 
     preceding plan years'' and inserting ``any shortfall 
     amortization base which has not been fully amortized under 
     this subsection'', and
       (B) in subsection (j)(3), by adding at the end the 
     following:
       ``(F) Quarterly contributions not to include certain 
     increased contributions.--Subparagraph (D) shall be applied 
     without regard to any increase under subsection (c)(7).''.
       (b) Amendments to Internal Revenue Code of 1986.--
       (1) In general.--Paragraph (2) of section 430(c) is amended 
     by adding at the end the following subparagraph:
       ``(D) Special election for eligible plan years.--
       ``(i) In general.--If a plan sponsor elects to apply this 
     subparagraph with respect to the shortfall amortization base 
     of a plan for any eligible plan year (in this subparagraph 
     and paragraph (7) referred to as an `election year'), then, 
     notwithstanding subparagraphs (A) and (B)--

       ``(I) the shortfall amortization installments with respect 
     to such base shall be determined under clause (ii) or (iii), 
     whichever is specified in the election, and
       ``(II) the shortfall amortization installment for any plan 
     year in the 9-plan-year period described in clause (ii) or 
     the 15-plan-year period described in clause (iii), 
     respectively, with respect to such shortfall amortization 
     base is the annual installment determined under the 
     applicable clause for that year for that base.

       ``(ii) 2 plus 7 amortization schedule.--The shortfall 
     amortization installments determined under this clause are--

       ``(I) in the case of the first 2 plan years in the 9-plan-
     year period beginning with the election year, interest on the 
     shortfall amortization base of the plan for the election year 
     (determined using the effective interest rate for the plan 
     for the election year), and
       ``(II) in the case of the last 7 plan years in such 9-plan-
     year period, the amounts necessary to amortize the remaining 
     balance of the shortfall amortization base of the plan for 
     the election year in level annual installments over such last 
     7 plan years (using the segment rates under subparagraph (C) 
     for the election year).

       ``(iii) 15-year amortization.--The shortfall amortization 
     installments determined under this subparagraph are the 
     amounts necessary to amortize the shortfall amortization base 
     of the plan for the election year in level annual 
     installments over the 15-plan-year period beginning with the 
     election year (using the segment rates under subparagraph (C) 
     for the election year).
       ``(iv) Election.--

       ``(I) In general.--The plan sponsor of a plan may elect to 
     have this subparagraph apply to not more than 2 eligible plan 
     years with respect to the plan, except that in the case of a 
     plan described in section 106 of the Pension Protection Act 
     of 2006, the plan sponsor may only elect to have this 
     subparagraph apply to a plan year beginning in 2011.
       ``(II) Amortization schedule.--Such election shall specify 
     whether the amortization schedule under clause (ii) or (iii) 
     shall apply to an election year, except that if a plan 
     sponsor elects to have this subparagraph apply to 2 eligible 
     plan years, the plan sponsor must elect the same schedule for 
     both years.
       ``(III) Other rules.--Such election shall be made at such 
     time, and in such form and manner, as shall be prescribed by 
     the Secretary, and may be revoked only with the consent of 
     the Secretary. The Secretary shall, before granting a 
     revocation request, provide the Pension Benefit Guaranty 
     Corporation an opportunity to comment on the conditions 
     applicable to the treatment of any portion of the election 
     year shortfall amortization base that remains unamortized as 
     of the revocation date.

       ``(v) Eligible plan year.--For purposes of this 
     subparagraph, the term `eligible plan year' means any plan 
     year beginning in 2008, 2009, 2010, or 2011, except that a 
     plan year shall only be treated as an eligible plan year if 
     the due date under subsection (j)(1) for the payment of the 
     minimum required contribution for such plan year occurs on or 
     after the date of the enactment of this subparagraph.
       ``(vi) Reporting.--A plan sponsor of a plan who makes an 
     election under clause (i) shall inform the Pension Benefit 
     Guaranty Corporation of such election in such form and manner 
     as the Director of the Pension Benefit Guaranty Corporation 
     may prescribe.
       ``(vii) Increases in required installments in certain 
     cases.--For increases in required contributions in cases of 
     excess compensation or extraordinary dividends or stock 
     redemptions, see paragraph (7).''.
       (2) Increases in required contributions if excess 
     compensation paid.--Section 430(c) is amended by adding at 
     the end the following paragraph:
       ``(7) Increases in alternate required installments in cases 
     of excess compensation or extraordinary dividends or stock 
     redemptions.--
       ``(A) In general.--If there is an installment acceleration 
     amount with respect to a plan for any plan year in the 9-
     plan-year or 15-plan-year period, whichever is applicable, 
     with respect to an election year under paragraph (2)(D), then 
     the shortfall amortization installment otherwise determined 
     and payable under such paragraph for such plan year shall, 
     subject to the limitation under subparagraph (B), be 
     increased by such amount.
       ``(B) Total installments limited to shortfall base.--
     Subject to rules prescribed by the Secretary, if a shortfall 
     amortization installment with respect to any shortfall 
     amortization base for an election year is required to be 
     increased for any plan year under subparagraph (A)--
       ``(i) such increase shall not result in the amount of such 
     installment exceeding the present value of such installment 
     and all succeeding installments with respect to such base 
     (determined without regard to such increase but after 
     application of clause (ii)), and
       ``(ii) subsequent shortfall amortization installments with 
     respect to such base shall, in reverse order of the otherwise 
     required installments, be reduced to the extent necessary to 
     limit the present value of such subsequent shortfall 
     amortization installments (after application of this 
     paragraph) to the present value of the remaining unamortized 
     shortfall amortization base.
       ``(C) Installment acceleration amount.--For purposes of 
     this paragraph--
       ``(i) In general.--The term `installment acceleration 
     amount' means, with respect to any plan year, the sum of--

       ``(I) the aggregate amount of excess employee compensation 
     determined under subparagraph (D) with respect to all 
     employees for the plan year, plus
       ``(II) the aggregate amount of extraordinary dividends and 
     redemptions determined under subparagraph (E) for the plan 
     year.

       ``(ii) Limitation to aggregate reduced required 
     contributions.--The installment acceleration amount for any 
     plan year shall not exceed the excess (if any) of--

       ``(I) the sum of the shortfall amortization installments 
     for the plan year and all preceding plan years in the 
     amortization period elected under paragraph (2)(D) with 
     respect to the shortfall amortization base with respect to an 
     election year, determined without regard to paragraph (2)(D) 
     and this paragraph, over
       ``(II) the sum of the shortfall amortization installments 
     for such plan year and all such preceding plan years, 
     determined after application of paragraph (2)(D) (and in the 
     case of any preceding plan year, after application of this 
     paragraph).

       ``(iii) Carryover of excess installment acceleration 
     amounts.--

       ``(I) In general.--If the installment acceleration amount 
     for any plan year (determined without regard to clause(ii)) 
     exceeds the limitation under clause (ii), then, subject to 
     subclause (II), such excess shall be treated as an 
     installment acceleration amount with respect to the 
     succeeding plan year.
       ``(II) Cap to apply.--If any amount treated as an 
     installment acceleration amount under subclause (I) or this 
     subclause with respect any succeeding plan year, when added 
     to other installment acceleration amounts (determined without 
     regard to clause (ii)) with respect to the plan year, exceeds 
     the limitation under clause (ii), the portion of such amount 
     representing such excess shall be treated as an installment 
     acceleration amount with respect to the next succeeding plan 
     year.
       ``(III) Ordering rules.--For purposes of applying subclause 
     (II), installment acceleration amounts for the plan year 
     (determined without regard to any carryover under this 
     clause) shall be applied first against the limitation under 
     clause (ii) and then carryovers to such plan year shall be 
     applied against such limitation on a first-in, first-out 
     basis.

       ``(D) Excess employee compensation.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `excess employee compensation' 
     means, with respect to any employee for any plan year, the 
     excess (if any) of--

       ``(I) the aggregate amount includible in income under this 
     chapter for remuneration during the calendar year in which 
     such plan year begins for services performed by the employee 
     for the plan sponsor (whether or not performed during such 
     calendar year), over
       ``(II) $1,000,000.

       ``(ii) Amounts set aside for nonqualified deferred 
     compensation.--If during any calendar year assets are set 
     aside or reserved (directly or indirectly) in a trust (or 
     other arrangement as determined by the Secretary), or 
     transferred to such a trust or other arrangement, by a plan 
     sponsor for purposes of paying deferred compensation of an 
     employee under a nonqualified deferred compensation plan (as 
     defined in section 409A) of the plan sponsor, then, for 
     purposes of clause (i), the amount of such assets shall be 
     treated as remuneration of the employee includible in income 
     for the calendar year unless such amount is otherwise 
     includible in income for such year. An amount to which the 
     preceding sentence applies shall not be taken into account 
     under this paragraph for any subsequent calendar year.
       ``(iii) Only remuneration for certain post-2009 services 
     counted.--Remuneration

[[Page S638]]

     shall be taken into account under clause (i) only to the 
     extent attributable to services performed by the employee for 
     the plan sponsor after February 4, 2010.
       ``(iv) Exception for certain equity payments.--

       ``(I) In general.--Any amount includible in income with 
     respect to the granting on or after February 4, 2010, of an 
     equity interest described in subclause (II) shall not be 
     taken into account under clause (i)(I), but only if all 
     portions of such interest remain subject to a substantial 
     risk of forfeiture (other than in the case of death or 
     disability) at all times before the date which is 5 years 
     after the date on which such interest is granted.
       ``(II) Equity interests.--An equity interest is described 
     in this subclause if it is a stock option which is granted at 
     its fair market value on the date of the grant or a stock 
     appreciation right which is granted at its fair market value 
     on the date of the grant.
       ``(III) Substantial risk of forfeiture.--The term 
     `substantial risk of forfeiture' has the meaning given such 
     term by section 83(c)(1).
       ``(IV) Secretarial authority.--The Secretary may by 
     regulation provide for the application of this clause in the 
     case of a person other than a corporation.

       ``(v) Other exceptions.--The following amounts includible 
     in income shall not be taken into account under clause 
     (i)(I):

       ``(I) Commissions.--Any remuneration payable on a 
     commission basis solely on account of income directly 
     generated by the individual performance of the individual to 
     whom such remuneration is payable.
       ``(II) Payments under existing contracts.--Any remuneration 
     payable under a written binding contract that was in effect 
     on February 4, 2010, and which was not modified in any 
     material respect before such remuneration is repaid. This 
     subclause shall not apply to bonus payments payable under 
     such a contract during a calendar year to the extent that the 
     aggregate amount of such bonus payments during such calendar 
     year exceeds $100,000.

       ``(vi) Self-employed individual treated as employee.--The 
     term `employee' includes, with respect to a calendar year, a 
     self-employed individual who is treated as an employee under 
     section 401(c) for the taxable year ending during such 
     calendar year, and the term `compensation' shall include 
     earned income of such individual with respect to such self-
     employment.
       ``(vii) Indexing of amount.--In the case of any calendar 
     year beginning after 2010, the dollar amount under clause 
     (i)(II) shall be increased by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year, determined by 
     substituting `calendar year 2009' for `calendar year 1992' in 
     subparagraph (B) thereof.

     If the amount of any increase under clause (i) is not a 
     multiple of $1,000, such increase shall be rounded to the 
     next lowest multiple of $1,000.
       ``(E) Extraordinary dividends and redemptions.--
       ``(i) In general.--The amount determined under this 
     subparagraph for any plan year is the sum of--

       ``(I) the aggregate amount of extraordinary dividends 
     declared during the plan year by the plan sponsor and 
     required to be reported under section 4043(c)(11) of the 
     Employee Retirement Income Security Act of 1974 , plus
       ``(II) if the plan sponsor redeems, in any 12-month period 
     ending during the plan year, an aggregate of 10 percent or 
     more of the total combined voting power of all classes of 
     stock entitled to vote, or an aggregate of 10 percent or more 
     of the total value of shares of all classes of stock, of the 
     plan sponsor, the aggregate fair market value of the stock so 
     redeemed.

       ``(ii) Only certain post-2009 dividends and redemptions 
     counted.--For purposes of clause (i)--

       ``(I) dividends shall be taken into account only if 
     declared after February 4, 2010, and
       ``(II) if clause (i)(II) otherwise applies for any plan 
     year (determined without regard to this subclause), only the 
     fair market value of redemptions occurring after February 4, 
     2010, shall be taken into account in determining the amount 
     under such clause for the plan year.

       ``(iii) Exception for intra-group dividends.--An 
     extraordinary dividend paid by one member of a controlled 
     group (as defined in section 412(d)(3)) to another member of 
     such group shall not be taken into account under clause 
     (i)(I).
       ``(F) Other definitions and rules.--For purposes of this 
     paragraph--
       ``(i) Bonus payment.--The term `bonus payment' means any 
     payment which is a payment for services rendered and which is 
     in addition to any amount payable to such individual for 
     services performed by such individual at a regular hourly, 
     daily, weekly, monthly, or similar periodic rate. Such term 
     does not include payments to an employee as commissions, 
     contributions to any qualified retirement plan (as defined in 
     section 4974(c)), welfare and fringe benefits, overtime pay, 
     or expense reimbursements. The Secretary may recharacterize a 
     payment that is a disguised bonus as a bonus payment for 
     purposes of this paragraph.
       ``(ii) Plan sponsor.--The term ` plan sponsor' includes any 
     member of the plan sponsor's controlled group (as defined in 
     section 412(d)(3)).
       ``(iii) Elections for multiple plans.--If a plan sponsor 
     makes elections under paragraph (2)(D) with respect to 2 or 
     more plans, the Secretary shall provide rules for the 
     application of this paragraph to such plans, including rules 
     for the ratable allocation of any installment acceleration 
     amount among such plans on the basis of each plan's relative 
     reduction in the plan's shortfall amortization installment 
     for the first plan year in the amortization period described 
     in subparagraph (A) (determined without regard to this 
     paragraph).
       ``(iv) Mergers and acquisitions.--The Secretary shall 
     prescribe rules for the application of paragraph (2)(D) and 
     this paragraph in any case where there is a merger or 
     acquisition involving a plan sponsor making the election 
     under paragraph (2)(D).''.
       (3) Conforming amendments.--Section 430 is amended--
       (A) in subsection (c)(1), by striking ``the shortfall 
     amortization bases for such plan year and each of the 6 
     preceding plan years'' and inserting ``any shortfall 
     amortization base which has not been fully amortized under 
     this subsection'', and
       (B) in subsection (j)(3), by adding at the end the 
     following:
       ``(F) Quarterly contributions not to include certain 
     increased contributions.--Subparagraph (D) shall be applied 
     without regard to any increase under subsection (c)(7).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2007.

     SEC. 612. APPLICATION OF EXTENDED AMORTIZATION PERIOD TO 
                   PLANS SUBJECT TO PRIOR LAW FUNDING RULES.

       (a) In General.--Title I of the Pension Protection Act of 
     2006 is amended by redesignating section 107 as section 108 
     and by inserting the following after section 106:

     ``SEC. 107. APPLICATION OF EXTENDED AMORTIZATION PERIODS TO 
                   PLANS WITH DELAYED EFFECTIVE DATE.

       ``(a) In General.--If the plan sponsor of a plan to which 
     section 104, 105, or 106 of this Act applies elects to have 
     this section apply for any eligible plan year (in this 
     section referred to as an `election year'), section 302 of 
     the Employee Retirement Income Security Act of 1974 and 
     section 412 of the Internal Revenue Code of 1986 (as in 
     effect before the amendments made by this subtitle and 
     subtitle B) shall apply to such year in the manner described 
     in subsection (b) or (c), whichever is specified in the 
     election. All references in this section to `such Act' or 
     `such Code' shall be to such Act or such Code as in effect 
     before the amendments made by this subtitle and subtitle B.
       ``(b) Application of 2 and 7 Rule.--In the case of an 
     election year to which this subsection applies--
       ``(1) 2-year lookback for determining deficit reduction 
     contributions for certain plans.--For purposes of applying 
     section 302(d)(9) of such Act and section 412(l)(9) of such 
     Code, the funded current liability percentage (as defined in 
     subparagraph (C) thereof) for such plan for such plan year 
     shall be such funded current liability percentage of such 
     plan for the second plan year preceding the first election 
     year of such plan.
       ``(2) Calculation of deficit reduction contribution.--For 
     purposes of applying section 302(d) of such Act and section 
     412(l) of such Code to a plan to which such sections apply 
     (after taking into account paragraph (1))--
       ``(A) in the case of the increased unfunded new liability 
     of the plan, the applicable percentage described in section 
     302(d)(4)(C) of such Act and section 412(l)(4)(C) of such 
     Code shall be the third segment rate described in sections 
     104(b), 105(b), and 106(b) of this Act, and
       ``(B) in the case of the excess of the unfunded new 
     liability over the increased unfunded new liability, such 
     applicable percentage shall be determined without regard to 
     this section.
       ``(c) Application of 15-Year Amortization.--In the case of 
     an election year to which this subsection applies, for 
     purposes of applying section 302(d) of such Act and section 
     412(l) of such Code--
       ``(1) in the case of the increased unfunded new liability 
     of the plan, the applicable percentage described in section 
     302(d)(4)(C) of such Act and section 412(l)(4)(C) of such 
     Code for any pre-effective date plan year beginning with or 
     after the first election year shall be the ratio of--
       ``(A) the annual installments payable in each year if the 
     increased unfunded new liability for such plan year were 
     amortized over 15 years, using an interest rate equal to the 
     third segment rate described in sections 104(b), 105(b), and 
     106(b) of this Act, to
       ``(B) the increased unfunded new liability for such plan 
     year, and
       ``(2) in the case of the excess of the unfunded new 
     liability over the increased unfunded new liability, such 
     applicable percentage shall be determined without regard to 
     this section.
       ``(d) Election.--
       ``(1) In general.--The plan sponsor of a plan may elect to 
     have this section apply to not more than 2 eligible plan 
     years with respect to the plan, except that in the case of a 
     plan to which section 106 of this Act applies, the plan 
     sponsor may only elect to have this section apply to 1 
     eligible plan year.
       ``(2) Amortization schedule.--Such election shall specify 
     whether the rules under subsection (b) or (c) shall apply to 
     an election year, except that if a plan sponsor elects

[[Page S639]]

     to have this section apply to 2 eligible plan years, the plan 
     sponsor must elect the same rule for both years.
       ``(3) Other rules.--Such election shall be made at such 
     time, and in such form and manner, as shall be prescribed by 
     the Secretary of the Treasury, and may be revoked only with 
     the consent of the Secretary of the Treasury.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Eligible plan year.--For purposes of this 
     subparagraph, the term `eligible plan year' means any plan 
     year beginning in 2008, 2009, 2010, or 2011, except that a 
     plan year beginning in 2008 shall only be treated as an 
     eligible plan year if the due date for the payment of the 
     minimum required contribution for such plan year occurs on or 
     after the date of the enactment of this clause.
       ``(2) Pre-effective date plan year.--The term `pre-
     effective date plan year' means, with respect to a plan, any 
     plan year prior to the first year in which the amendments 
     made by this subtitle and subtitle B apply to the plan.
       ``(3) Increased unfunded new liability.--The term 
     `increased unfunded new liability' means, with respect to a 
     year, the excess (if any) of the unfunded new liability over 
     the amount of unfunded new liability determined as if the 
     value of the plan's assets determined under subsection 
     302(c)(2) of such Act and section 412(c)(2) of such Code 
     equaled the product of the current liability of the plan for 
     the year multiplied by the funded current liability 
     percentage (as defined in section 302(d)(8)(B) of such Act 
     and 412(l)(8)(B) of such Code) of the plan for the second 
     plan year preceding the first election year of such plan.
       ``(4) Other definitions.--The terms `unfunded new 
     liability' and `current liability' shall have the meanings 
     set forth in section 302(d) of such Act and section 412(l) of 
     such Code.''.
       (b) Eligible Charity Plans.--Section 104 of the Pension 
     Protection Act of 2006 is amended--
       (1) by striking ``eligible cooperative plan'' wherever it 
     appears in subsections (a) and (b) and inserting ``eligible 
     cooperative plan or an eligible charity plan'', and
       (2) by adding at the end the following new subsection:
       ``(d) Eligible Charity Plan Defined.--For purposes of this 
     section, a plan shall be treated as an eligible charity plan 
     for a plan year if the plan is maintained by more than one 
     employer and 100 percent of the employers are described in 
     section 501(c)(3) of such Code.''.
       (c) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     take effect as if included in the Pension Protection Act of 
     2006.
       (2) Eligible charity plan.--The amendments made by 
     subsection (b) shall apply to plan years beginning after 
     December 31, 2007, except that a plan sponsor may elect to 
     apply such amendments to plan years beginning after December 
     31, 2008. Any such election shall be made at such time, and 
     in such form and manner, as shall be prescribed by the 
     Secretary of the Treasury, and may be revoked only with the 
     consent of the Secretary of the Treasury.

     SEC. 613. LOOKBACK FOR CERTAIN BENEFIT RESTRICTIONS.

       (a) In General.--
       (1) Amendment to erisa.--Section 206(g)(9) of the Employee 
     Retirement Income Security Act of 1974 is amended by adding 
     at the end the following:
       ``(D) Special rule for certain years.--Solely for purposes 
     of any applicable provision--
       ``(i) In general.--For plan years beginning on or after 
     October 1, 2008, and before October 1, 2010, the adjusted 
     funding target attainment percentage of a plan shall be the 
     greater of--

       ``(I) such percentage, as determined without regard to this 
     subparagraph, or
       ``(II) the adjusted funding target attainment percentage 
     for such plan for the plan year beginning after October 1, 
     2007, and before October 1, 2008, as determined under rules 
     prescribed by the Secretary of the Treasury.

       ``(ii) Special rule.--In the case of a plan for which the 
     valuation date is not the first day of the plan year--

       ``(I) clause (i) shall apply to plan years beginning after 
     December 31, 2007, and before January 1, 2010, and
       ``(II) clause (i)(II) shall apply based on the last plan 
     year beginning before November 1, 2007, as determined under 
     rules prescribed by the Secretary of the Treasury.

       ``(iii) Applicable provision.--For purposes of this 
     subparagraph, the term `applicable provision' means--

       ``(I) paragraph (3), but only for purposes of applying such 
     paragraph to a payment which, as determined under rules 
     prescribed by the Secretary of the Treasury, is a payment 
     under a social security leveling option which accelerates 
     payments under the plan before, and reduces payments after, a 
     participant starts receiving social security benefits in 
     order to provide substantially similar aggregate payments 
     both before and after such benefits are received, and
       ``(II) paragraph (4).''.

       (2) Amendment to internal revenue code of 1986.--Section 
     436(j) of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following:
       ``(3) Special rule for certain years.--Solely for purposes 
     of any applicable provision--
       ``(A) In general.--For plan years beginning on or after 
     October 1, 2008, and before October 1, 2010, the adjusted 
     funding target attainment percentage of a plan shall be the 
     greater of--
       ``(i) such percentage, as determined without regard to this 
     paragraph, or
       ``(ii) the adjusted funding target attainment percentage 
     for such plan for the plan year beginning after October 1, 
     2007, and before October 1, 2008, as determined under rules 
     prescribed by the Secretary.
       ``(B) Special rule.--In the case of a plan for which the 
     valuation date is not the first day of the plan year--
       ``(i) subparagraph (A) shall apply to plan years beginning 
     after December 31, 2007, and before January 1, 2010, and
       ``(ii) subparagraph (A)(ii) shall apply based on the last 
     plan year beginning before November 1, 2007, as determined 
     under rules prescribed by the Secretary.
       ``(C) Applicable provision.--For purposes of this 
     paragraph, the term `applicable provision' means--
       ``(i) subsection (d), but only for purposes of applying 
     such paragraph to a payment which, as determined under rules 
     prescribed by the Secretary, is a payment under a social 
     security leveling option which accelerates payments under the 
     plan before, and reduces payments after, a participant starts 
     receiving social security benefits in order to provide 
     substantially similar aggregate payments both before and 
     after such benefits are received, and
       ``(ii) subsection (e).''.
       (b) Interaction With Wrera Rule.--Section 203 of the 
     Worker, Retiree, and Employer Recovery Act of 2008 shall 
     apply to a plan for any plan year in lieu of the amendments 
     made by this section applying to sections 206(g)(4) of the 
     Employee Retirement Income Security Act of 1974 and 436(e) of 
     the Internal Revenue Code of 1986 only to the extent that 
     such section produces a higher adjusted funding target 
     attainment percentage for such plan for such year.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to plan years 
     beginning on or after October 1, 2008.
       (2) Special rule.--In the case of a plan for which the 
     valuation date is not the first day of the plan year, the 
     amendments made by this section shall apply to plan years 
     beginning after December 31, 2007.

                      PART II--MULTIEMPLOYER PLANS

     SEC. 621. ADJUSTMENTS TO FUNDING STANDARD ACCOUNT RULES.

       (a) Adjustments.--
       (1) Amendment to erisa.--Section 304(b) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1084(b)) is 
     amended by adding at the end the following new paragraph:
       ``(8) Special relief rules.--Notwithstanding any other 
     provision of this subsection--
       ``(A) Amortization of net investment losses.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     treat the portion of its experience loss attributable to the 
     net investment losses (if any) incurred in either or both of 
     the first two plan years beginning after August 31, 2008, as 
     an item separate from other experience losses, to be 
     amortized in equal annual installments (until fully 
     amortized) over a period of 30 plan years.
       ``(ii) No extension allowed.--If this subparagraph applies 
     for any plan year, no extension of the amortization period 
     under clause (i) shall be allowed under subsection (d).
       ``(iii) Net investment losses.--For purposes of this 
     subparagraph--

       ``(I) In general.--Net investment losses shall be 
     determined in the manner prescribed by the Secretary of the 
     Treasury on the basis of the difference between actual and 
     expected returns (including any difference attributable to 
     any criminally fraudulent investment arrangement).
       ``(II) Criminally fraudulent investment arrangements.--The 
     determination as to whether an arrangement is a criminally 
     fraudulent investment arrangement shall be made under rules 
     substantially similar to the rules prescribed by the 
     Secretary of the Treasury for purposes of section 165 of the 
     Internal Revenue Code of 1986.

       ``(B) Expanded smoothing period.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     change its asset valuation method in a manner which--

       ``(I) spreads the difference between expected and actual 
     returns for either or both of the first 2 plan years 
     beginning after August 31, 2008, over a period of not more 
     than 10 years,
       ``(II) provides that for either or both of such 2 plan 
     years the value of plan assets at any time shall not be less 
     than 80 percent or greater than 130 percent of the fair 
     market value of such assets at such time, or
       ``(III) makes both changes described in subclauses (I) and 
     (II) to such method.

       ``(ii) Asset valuation methods.--If this subparagraph 
     applies for any plan year--

       ``(I) the Secretary of the Treasury shall not treat the 
     asset valuation method of the plan as unreasonable solely 
     because of the changes in such method described in clause 
     (i), and

[[Page S640]]

       ``(II) such changes shall be deemed approved by such 
     Secretary under section 302(d)(1) and section 412(d)(1) of 
     such Code.

       ``(iii) Amortization of reduction in unfunded accrued 
     liability.--If this subparagraph and subparagraph (A) both 
     apply for any plan year, the plan shall treat any reduction 
     in unfunded accrued liability resulting from the application 
     of this subparagraph as a separate experience amortization 
     base, to be amortized in equal annual installments (until 
     fully amortized) over a period of 30 plan years rather than 
     the period such liability would otherwise be amortized over.
       ``(C) Solvency test.--The solvency test under this 
     paragraph is met only if the plan actuary certifies that the 
     plan is projected to have sufficient assets to timely pay 
     expected benefits and anticipated expenditures over the 
     amortization period, taking into account the changes in the 
     funding standard account under this paragraph.
       ``(D) Restriction on benefit increases.--If subparagraph 
     (A) or (B) apply to a multiemployer plan for any plan year, 
     then, in addition to any other applicable restrictions on 
     benefit increases, a plan amendment increasing benefits may 
     not go into effect during either of the 2 plan years 
     immediately following such plan year unless--
       ``(i) the plan actuary certifies that--

       ``(I) any such increase is paid for out of additional 
     contributions not allocated to the plan immediately before 
     the application of this paragraph to the plan, and
       ``(II) the plan's funded percentage and projected credit 
     balances for such 2 plan years are reasonably expected to be 
     substantially the same as such percentage and balances would 
     have been if the benefit increase had not been adopted, or

       ``(ii) the amendment is required as a condition of 
     qualification under part I of subchapter D of chapter 1 of 
     the Internal Revenue Code of 1986 or to comply with other 
     applicable law.
       ``(E) Reporting.--A plan sponsor of a plan to which this 
     paragraph applies shall inform the Pension Benefit Guaranty 
     Corporation of such application in such form and manner as 
     the Director of the Pension Benefit Guaranty Corporation may 
     prescribe.''.
       (2) Amendment to internal revenue code of 1986.--Section 
     431(b) is amended by adding at the end the following new 
     paragraph:
       ``(8) Special relief rules.--Notwithstanding any other 
     provision of this subsection--
       ``(A) Amortization of net investment losses.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     treat the portion of its experience loss attributable to the 
     net investment losses (if any) incurred in either or both of 
     the first two plan years beginning after August 31, 2008, as 
     an item separate from other experience losses, to be 
     amortized in equal annual installments (until fully 
     amortized) over a period of 30 plan years.
       ``(ii) No extension allowed.--If this subparagraph applies 
     for any plan year, no extension of the amortization period 
     under clause (i) shall be allowed under subsection (d).
       ``(iii) Net investment losses.--For purposes of this 
     subparagraph--

       ``(I) In general.--Net investment losses shall be 
     determined in the manner prescribed by the Secretary on the 
     basis of the difference between actual and expected returns 
     (including any difference attributable to any criminally 
     fraudulent investment arrangement).
       ``(II) Criminally fraudulent investment arrangements.--The 
     determination as to whether an arrangement is a criminally 
     fraudulent investment arrangement shall be made under rules 
     substantially similar to the rules prescribed by the 
     Secretary for purposes of section 165.

       ``(B) Expanded smoothing period.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     change its asset valuation method in a manner which--

       ``(I) spreads the difference between expected and actual 
     returns for either or both of the first 2 plan years 
     beginning after August 31, 2008, over a period of not more 
     than 10 years,
       ``(II) provides that for either or both of such 2 plan 
     years the value of plan assets at any time shall not be less 
     than 80 percent or greater than 130 percent of the fair 
     market value of such assets at such time, or
       ``(III) makes both changes described in subclauses (I) and 
     (II) to such method.

       ``(ii) Asset valuation methods.--If this subparagraph 
     applies for any plan year--

       ``(I) the Secretary shall not treat the asset valuation 
     method of the plan as unreasonable solely because of the 
     changes in such method described in clause (i), and
       ``(II) such changes shall be deemed approved by the 
     Secretary under section 302(d)(1) of the Employee Retirement 
     Income Security Act of 1974 and section 412(d)(1).

       ``(iii) Amortization of reduction in unfunded accrued 
     liability.--If this subparagraph and subparagraph (A) both 
     apply for any plan year, the plan shall treat any reduction 
     in unfunded accrued liability resulting from the application 
     of this subparagraph as a separate experience amortization 
     base, to be amortized in equal annual installments (until 
     fully amortized) over a period of 30 plan years rather than 
     the period such liability would otherwise be amortized over.
       ``(C) Solvency test.--The solvency test under this 
     paragraph is met only if the plan actuary certifies that the 
     plan is projected to have sufficient assets to timely pay 
     expected benefits and anticipated expenditures over the 
     amortization period, taking into account the changes in the 
     funding standard account under this paragraph.
       ``(D) Restriction on benefit increases.--If subparagraph 
     (A) or (B) apply to a multiemployer plan for any plan year, 
     then, in addition to any other applicable restrictions on 
     benefit increases, a plan amendment increasing benefits may 
     not go into effect during either of the 2 plan years 
     immediately following such plan year unless--
       ``(i) the plan actuary certifies that--

       ``(I) any such increase is paid for out of additional 
     contributions not allocated to the plan immediately before 
     the application of this paragraph to the plan, and
       ``(II) the plan's funded percentage and projected credit 
     balances for such 2 plan years are reasonably expected to be 
     substantially the same as such percentage and balances would 
     have been if the benefit increase had not been adopted, or

       ``(ii) the amendment is required as a condition of 
     qualification under part I of subchapter D or to comply with 
     other applicable law.
       ``(E) Reporting.--A plan sponsor of a plan to which this 
     paragraph applies shall inform the Pension Benefit Guaranty 
     Corporation of such application in such form and manner as 
     the Director of the Pension Benefit Guaranty Corporation may 
     prescribe.''.
       (b) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     take effect as of the first day of the first plan year 
     beginning after August 31, 2008, except that any election a 
     plan makes pursuant to this section that affects the plan's 
     funding standard account for the first plan year beginning 
     after August 31, 2008, 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 such plan year.
       (2) Restrictions on benefit increases.--Notwithstanding 
     paragraph (1), the restrictions on plan amendments increasing 
     benefits in sections 304(b)(8)(D) of such Act and 
     431(b)(8)(D) of such Code, as added by this section, shall 
     take effect on the date of enactment of this Act.

             TITLE VII--DETERMINATION OF BUDGETARY EFFECTS

     SEC. 701. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go-Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.
                                 ______
                                 
  SA 3320. Mr. GRASSLEY submitted an amendment intended to be proposed 
to amendment SA 3310 proposed by Mr. Reid to the bill H.R. 2847, making 
appropriations for the Departments of Commerce and Justice, and 
Science, and Related Agencies for the fiscal year ending September 30, 
2010, and for other purposes; which was ordered to lie on the table; as 
follows:

       Strike subtitle B of title V and insert the following:

                        Subtitle B--Black Liquor

     SEC. 551. EXCLUSION OF UNPROCESSED FUELS FROM THE CELLULOSIC 
                   BIOFUEL PRODUCER CREDIT.

       (a) In General.--Subparagraph (E) of section 40(b)(6) is 
     amended by adding at the end the following new clause:
       ``(iii) Exclusion of unprocessed fuels.--The term 
     `cellulosic biofuel' shall not include any fuel if--

       ``(I) more than 4 percent of such fuel (determined by 
     weight) is any combination of water and sediment, or
       ``(II) the ash content of such fuel is more than 1 percent 
     (determined by weight).''.

       (b) Effective Date.--The amendment made by this section 
     shall apply to fuels sold or used after the date of the 
     enactment of this Act.

     SEC. 552. PROHIBITION ON ALTERNATIVE FUEL CREDIT AND 
                   ALTERNATIVE FUEL MIXTURE CREDIT FOR BLACK 
                   LIQUOR.

       (a) In General.--The last sentence of section 6426(d)(2) is 
     amended by striking ``or biodiesel'' and inserting 
     ``biodiesel, or any fuel (including lignin, wood residues, or 
     spent pulping liquors) derived from the production of paper 
     or pulp''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to fuel sold or used after December 31, 2009.

                      Subtitle C--Homebuyer Credit

     SEC. 561. TECHNICAL MODIFICATIONS TO HOMEBUYER CREDIT.

       (a) Expanded Documentation Requirement.--Subsection (d) of 
     section 36, as amended by the Worker, Homeownership, and 
     Business Assistance Act of 2009, is amended--
       (1) by striking ``or'' at the end of paragraph (3),
       (2) by striking the period at the end of paragraph (4) and 
     inserting a comma, and
       (3) by adding at the end the following new paragraphs:

[[Page S641]]

       ``(5) in the case of a taxpayer to whom such a credit would 
     be allowed (but for this paragraph) by reason of subsection 
     (c)(6), the taxpayer fails to attach to the return of tax for 
     such taxable year a copy of such property tax bills or other 
     documentation as are required by the Secretary to demonstrate 
     compliance with the requirements of subsection (c)(6), or
       ``(6) in the case of a taxpayer to whom such a credit would 
     be allowed (but for this paragraph) by reason of subsection 
     (h)(2), the taxpayer fails to attach to the return of tax for 
     such taxable year a copy of the binding contract which meets 
     the requirements of subsection (h)(2).''.
       (b) Modification of Effective Date of Documentation 
     Requirements.--Paragraph (2) of section 12(e) of the Worker, 
     Homeownership, and Business Assistance Act of 2009 is amended 
     by striking ``returns for taxable years ending after the date 
     of the enactment of this Act'' and inserting ``returns filed 
     after the date of the enactment of this Act''.
       (c) Effective Dates.--
       (1) Documentation requirements.--The amendments made by 
     subsection (a) shall apply to purchases on or after the date 
     of the enactment of this Act.
       (2) Effective date of worker, homeownership, and business 
     assistance act.--The amendment made by subsection (b) shall 
     apply to purchases of a principal residence on or after the 
     date of the enactment of the Worker, Homeownership, and 
     Business Assistance Act of 2009.

                     Subtitle D--Economic Substance

     SEC. 571. CODIFICATION OF ECONOMIC SUBSTANCE DOCTRINE; 
                   PENALTIES.

       (a) In General.--Section 7701 is amended by redesignating 
     subsection (o) as subsection (p) and by inserting after 
     subsection (n) the following new subsection:
       ``(o) Clarification of Economic Substance Doctrine.--
       ``(1) Application of doctrine.--In the case of any 
     transaction to which the economic substance doctrine is 
     relevant, such transaction shall be treated as having 
     economic substance only if--
       ``(A) the transaction changes in a meaningful way (apart 
     from Federal income tax effects) the taxpayer's economic 
     position, and
       ``(B) the taxpayer has a substantial purpose (apart from 
     Federal income tax effects) for entering into such 
     transaction.
       ``(2) Special rule where taxpayer relies on profit 
     potential.--
       ``(A) In general.--The potential for profit of a 
     transaction shall be taken into account in determining 
     whether the requirements of subparagraphs (A) and (B) of 
     paragraph (1) are met with respect to the transaction only if 
     the present value of the reasonably expected pre-tax profit 
     from the transaction is substantial in relation to the 
     present value of the expected net tax benefits that would be 
     allowed if the transaction were respected.
       ``(B) Treatment of fees and foreign taxes.--Fees and other 
     transaction expenses shall be taken into account as expenses 
     in determining pre-tax profit under subparagraph (A). The 
     Secretary may issue regulations requiring foreign taxes to be 
     treated as expenses in determining pre-tax profit in 
     appropriate cases.
       ``(3) State and local tax benefits.--For purposes of 
     paragraph (1), any State or local income tax effect which is 
     related to a Federal income tax effect shall be treated in 
     the same manner as a Federal income tax effect.
       ``(4) Financial accounting benefits.--For purposes of 
     paragraph (1)(B), achieving a financial accounting benefit 
     shall not be taken into account as a purpose for entering 
     into a transaction if the origin of such financial accounting 
     benefit is a reduction of Federal income tax.
       ``(5) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Economic substance doctrine.--The term `economic 
     substance doctrine' means the common law doctrine under which 
     tax benefits under subtitle A with respect to a transaction 
     are not allowable if the transaction does not have economic 
     substance or lacks a business purpose.
       ``(B) Exception for personal transactions of individuals.--
     In the case of an individual, paragraph (1) shall apply only 
     to transactions entered into in connection with a trade or 
     business or an activity engaged in for the production of 
     income.
       ``(C) Other common law doctrines not affected.--Except as 
     specifically provided in this subsection, the provisions of 
     this subsection shall not be construed as altering or 
     supplanting any other rule of law, and the requirements of 
     this subsection shall be construed as being in addition to 
     any such other rule of law.
       ``(D) Determination of application of doctrine not 
     affected.--The determination of whether the economic 
     substance doctrine is relevant to a transaction shall be made 
     in the same manner as if this subsection had never been 
     enacted.
       ``(E) Transaction.--The term `transaction' includes a 
     series of transactions.
       ``(6) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this subsection.''.
       (b) Penalty for Underpayments Attributable to Transactions 
     Lacking Economic Substance.--
       (1) In general.--Subsection (b) of section 6662 is amended 
     by inserting after paragraph (5) the following new paragraph:
       ``(6) Any disallowance of claimed tax benefits by reason of 
     a transaction lacking economic substance (within the meaning 
     of section 7701(o)) or failing to meet the requirements of 
     any similar rule of law.''.
       (2) Increased penalty for nondisclosed transactions.--
     Section 6662 is amended by adding at the end the following 
     new subsection:
       ``(i) Increase in Penalty in Case of Nondisclosed 
     Noneconomic Substance Transactions.--
       ``(1) In general.--In the case of any portion of an 
     underpayment which is attributable to one or more 
     nondisclosed noneconomic substance transactions, subsection 
     (a) shall be applied with respect to such portion by 
     substituting `40 percent' for `20 percent'.
       ``(2) Nondisclosed noneconomic substance transactions.--For 
     purposes of this subsection, the term `nondisclosed 
     noneconomic substance transaction' means any portion of a 
     transaction described in subsection (b)(6) with respect to 
     which the relevant facts affecting the tax treatment are not 
     adequately disclosed in the return nor in a statement 
     attached to the return.
       ``(3) Special rule for amended returns.--Except as provided 
     in regulations, in no event shall any amendment or supplement 
     to a return of tax be taken into account for purposes of this 
     subsection if the amendment or supplement is filed after the 
     earlier of the date the taxpayer is first contacted by the 
     Secretary regarding the examination of the return or such 
     other date as is specified by the Secretary.''.
       (3) Conforming amendment.--Subparagraph (B) of section 
     6662A(e)(2) is amended--
       (A) by striking ``section 6662(h)'' and inserting 
     ``subsections (h) or (i) of section 6662''; and
       (B) by striking ``gross valuation misstatement penalty'' in 
     the heading and inserting ``certain increased underpayment 
     penalties''.
       (c) Reasonable Cause Exception Not Applicable to 
     Noneconomic Substance Transactions.--
       (1) Reasonable cause exception for underpayments.--
     Subsection (c) of section 6664 is amended--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (B) by striking ``paragraph (2)'' in paragraph (4)(A), as 
     so redesignated, and inserting ``paragraph (3)''; and
       (C) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Exception.--Paragraph (1) shall not apply to any 
     portion of an underpayment which is attributable to one or 
     more transactions described in section 6662(b)(6).''.
       (2) Reasonable cause exception for reportable transaction 
     understatements.--Subsection (d) of section 6664 is amended--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (B) by striking ``paragraph (2)(C)'' in paragraph (4), as 
     so redesignated, and inserting ``paragraph (3)(C)''; and
       (C) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Exception.--Paragraph (1) shall not apply to any 
     portion of a reportable transaction understatement which is 
     attributable to one or more transactions described in section 
     6662(b)(6).''.
       (d) Application of Penalty for Erroneous Claim for Refund 
     or Credit to Noneconomic Substance Transactions.--Section 
     6676 is amended by redesignating subsection (c) as subsection 
     (d) and inserting after subsection (b) the following new 
     subsection:
       ``(c) Noneconomic Substance Transactions Treated as Lacking 
     Reasonable Basis.--For purposes of this section, any 
     excessive amount which is attributable to any transaction 
     described in section 6662(b)(6) shall not be treated as 
     having a reasonable basis.''.
       (e) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to transactions entered into after the date of the enactment 
     of this Act.
       (2) Underpayments.--The amendments made by subsections (b) 
     and (c)(1) shall apply to underpayments attributable to 
     transactions entered into after the date of the enactment of 
     this Act.
       (3) Understatements.--The amendments made by subsection 
     (c)(2) shall apply to understatements attributable to 
     transactions entered into after the date of the enactment of 
     this Act.
       (4) Refunds and credits.--The amendment made by subsection 
     (d) shall apply to refunds and credits attributable to 
     transactions entered into after the date of the enactment of 
     this Act.

                   Subtitle E--Additional Provisions

     SEC. 581. REVISION TO THE MEDICARE IMPROVEMENT FUND.

       Section 1898(b)(1)(A) of the Social Security Act (42 U.S.C. 
     1395iii(b)(1)(A)), as amended by section 1011(b) of the 
     Department of Defense Appropriations Act, 2010 (Public Law 
     111-118), is amended by striking ``$20,740,000,000'' and 
     inserting ``$10,240,000,000''.

     SEC. 582. TRANSFER OF STIMULUS FUNDS.

       Notwithstanding section 5 of the American Recovery and 
     Reinvestment Act of 2009 (Pub. Law 111-5), from the amounts 
     appropriated or made available and remaining unobligated 
     under such Act, the Director of the Office of Management and 
     Budget shall transfer from time to time to the general fund 
     of the Treasury an amount equal to the sum of the amount of 
     any net reduction in revenues and the amount of any net 
     increase in spending resulting from the enactment of this 
     Act.

[[Page S642]]

               TITLE VI--EXTENSION OF EXPIRING PROVISIONS

                           Subtitle A--Energy

     SEC. 601. ALTERNATIVE MOTOR VEHICLE CREDIT FOR NEW QUALIFIED 
                   HYBRID MOTOR VEHICLES OTHER THAN PASSENGER 
                   AUTOMOBILES AND LIGHT TRUCKS.

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

     SEC. 602. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

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

     SEC. 603. CREDIT FOR ELECTRICITY PRODUCED AT CERTAIN OPEN-
                   LOOP BIOMASS FACILITIES.

       (a) In General.--Clause (ii) of section 45(b)(4)(B) is 
     amended by striking ``5-year period'' and inserting ``6-year 
     period''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to electricity produced and sold after December 
     31, 2009.

     SEC. 604. CREDIT FOR REFINED COAL FACILITIES.

       (a) In General .--Subparagraphs (A) and (B) of section 
     45(d)(8) are each amended by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to facilities placed in service after December 
     31, 2009.

     SEC. 605. CREDIT FOR PRODUCTION OF LOW SULFUR DIESEL FUEL.

       (a) Applicable Period.--Paragraph (4) of section 45H(c) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 339 of the 
     American Jobs Creation Act of 2004.

     SEC. 606. CREDIT FOR PRODUCING FUEL FROM COKE OR COKE GAS.

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

     SEC. 607. NEW ENERGY EFFICIENT HOME CREDIT.

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

     SEC. 608. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR 
                   ALTERNATIVE FUEL AND ALTERNATIVE FUEL MIXTURES.

       (a) In General.--Sections 6426(d)(5), 6426(e)(3), and 
     6427(e)(6)(C) are each amended by striking ``December 31, 
     2009'' and inserting ``December 31, 2010''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2009.

     SEC. 609. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT 
                   FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR 
                   QUALIFIED ELECTRIC UTILITIES.

       (a) In General.--Paragraph (3) of section 451(i) is amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to transactions after December 31, 2009.

     SEC. 610. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION 
                   FOR OIL AND GAS FROM MARGINAL WELLS.

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

                   Subtitle B--Individual Tax Relief

                    PART I--MISCELLANEOUS PROVISIONS

     SEC. 611. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND 
                   SECONDARY SCHOOL TEACHERS.

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

     SEC. 612. ADDITIONAL STANDARD DEDUCTION FOR STATE AND LOCAL 
                   REAL PROPERTY TAXES.

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

     SEC. 613. DEDUCTION OF STATE AND LOCAL SALES TAXES.

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

     SEC. 614. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE 
                   FOR CONSERVATION PURPOSES.

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

     SEC. 615. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND 
                   RELATED EXPENSES.

       (a) In General.--Subsection (e) of section 222 is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 616. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT 
                   PLANS FOR CHARITABLE PURPOSES.

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

     SEC. 617. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY 
                   STOCK IN DETERMINING GROSS ESTATE OF 
                   NONRESIDENTS.

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

                  PART II--LOW-INCOME HOUSING CREDITS

     SEC. 621. ELECTION FOR REFUNDABLE LOW-INCOME HOUSING CREDIT 
                   FOR 2010.

       (a) In General.--Section 42 is amended by redesignating 
     subsection (n) as subsection (o) and by inserting after 
     subsection (m) the following new subsection:
       ``(n) Election for Refundable Credits.--
       ``(1) In general.--The housing credit agency of each State 
     shall be allowed a credit in an amount equal to such State's 
     2010 low-income housing refundable credit election amount, 
     which shall be payable by the Secretary as provided in 
     paragraph (5).
       ``(2) 2010 low-income housing refundable credit election 
     amount.--For purposes of this subsection, the term `2010 low-
     income housing refundable credit election amount' means, with 
     respect to any State, such amount as the State may elect 
     which does not exceed 85 percent of the product of--
       ``(A) the sum of--
       ``(i) 100 percent of the State housing credit ceiling for 
     2010 which is attributable to amounts described in clauses 
     (i) and (iii) of subsection (h)(3)(C), and
       ``(ii) 40 percent of the State housing credit ceiling for 
     2010 which is attributable to amounts described in clauses 
     (ii) and (iv) of such subsection, multiplied by
       ``(B) 10.
       ``(3) Coordination with non-refundable credit.--For 
     purposes of this section, the amounts described in clauses 
     (i) through (iv) of subsection (h)(3)(C) with respect to any 
     State for 2010 shall each be reduced by so much of such 
     amount as is taken into account in determining the amount of 
     the credit allowed with respect to such State under paragraph 
     (1).
       ``(4) Special rule for basis.--Basis of a qualified low-
     income building shall not be reduced by the amount of any 
     payment made under this subsection.
       ``(5) Payment of credit; use to finance low-income 
     buildings.--The Secretary shall pay to the housing credit 
     agency of each State an amount equal to the credit allowed 
     under paragraph (1). Rules similar to the rules of 
     subsections (c) and (d) of section 1602 of the American 
     Recovery and Reinvestment Tax Act of 2009 shall apply with 
     respect to any payment made under this paragraph, except that 
     such subsection (d) shall be applied by substituting `January 
     1, 2012' for `January 1, 2011'.''.
       (b) Conforming Amendment.--Section 1324(b)(2) of title 31, 
     United States Code, is amended by inserting ``42(n),'' after 
     ``36A,''.

                    Subtitle C--Business Tax Relief

     SEC. 631. RESEARCH CREDIT.

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

     SEC. 632. INDIAN EMPLOYMENT TAX CREDIT.

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

     SEC. 633. NEW MARKETS TAX CREDIT.

       (a) In General.--Subparagraph (F) of section 45D(f)(1) is 
     amended by inserting ``and 2010'' after ``2009''.

[[Page S643]]

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

     SEC. 634. RAILROAD TRACK MAINTENANCE CREDIT.

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

     SEC. 635. MINE RESCUE TEAM TRAINING CREDIT.

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

     SEC. 636. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE 
                   DUTY MEMBERS OF THE UNIFORMED SERVICES.

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

     SEC. 637. 5-YEAR DEPRECIATION FOR FARMING BUSINESS MACHINERY 
                   AND EQUIPMENT.

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

     SEC. 638. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED 
                   LEASEHOLD IMPROVEMENTS, QUALIFIED RESTAURANT 
                   BUILDINGS AND IMPROVEMENTS, AND QUALIFIED 
                   RETAIL IMPROVEMENTS.

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

     SEC. 639. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 
                   ENTERTAINMENT COMPLEXES.

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

     SEC. 640. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON 
                   AN INDIAN RESERVATION.

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

     SEC. 641. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF 
                   FOOD INVENTORY.

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

     SEC. 642. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF 
                   BOOK INVENTORIES TO PUBLIC SCHOOLS.

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

     SEC. 643. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE 
                   CONTRIBUTIONS OF COMPUTER INVENTORY FOR 
                   EDUCATIONAL PURPOSES.

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

     SEC. 644. ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

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

     SEC. 645. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND 
                   TELEVISION PRODUCTIONS.

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

     SEC. 646. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

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

     SEC. 647. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME 
                   ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES 
                   IN PUERTO RICO.

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

     SEC. 648. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS 
                   TO CONTROLLING EXEMPT ORGANIZATIONS.

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

     SEC. 649. EXCLUSION OF GAIN OR LOSS ON SALE OR EXCHANGE OF 
                   CERTAIN BROWNFIELD SITES FROM UNRELATED 
                   BUSINESS INCOME.

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

     SEC. 650. TIMBER REIT MODERNIZATION.

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

     SEC. 651. TREATMENT OF CERTAIN DIVIDENDS AND ASSETS OF 
                   REGULATED INVESTMENT COMPANIES.

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

     SEC. 652. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER 
                   FIRPTA.

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

     SEC. 653. EXCEPTIONS FOR ACTIVE FINANCING INCOME.

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

     SEC. 654. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED 
                   CONTROLLED FOREIGN CORPORATIONS UNDER FOREIGN 
                   PERSONAL HOLDING COMPANY RULES.

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

[[Page S644]]

     SEC. 655. TEMPORARY REDUCTION IN CORPORATE RATE FOR QUALIFIED 
                   TIMBER GAIN.

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

     SEC. 656. BASIS ADJUSTMENT TO STOCK OF S CORPS MAKING 
                   CHARITABLE CONTRIBUTIONS OF PROPERTY.

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

     SEC. 657. EMPOWERMENT ZONE TAX INCENTIVES.

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

     SEC. 658. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF 
                   COLUMBIA.

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

     SEC. 659. RENEWAL COMMUNITY TAX INCENTIVES.

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

     SEC. 660. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM 
                   EXCISE TAXES TO PUERTO RICO AND THE VIRGIN 
                   ISLANDS.

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

     SEC. 661. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

       (a) In General.--Subsection (d) of section 119 of division 
     A of the Tax Relief and Health Care Act of 2006 is amended--
       (1) by striking ``first 4 taxable years'' and inserting 
     ``first 5 taxable years'', and
       (2) by striking ``January 1, 2010'' and inserting ``January 
     1, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

            Subtitle D--Temporary Disaster Relief Provisions

                    PART I--NATIONAL DISASTER RELIEF

     SEC. 671. WAIVER OF CERTAIN MORTGAGE REVENUE BOND 
                   REQUIREMENTS.

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

     SEC. 672. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED 
                   DISASTERS.

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

[[Page S645]]

     SEC. 673. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED 
                   DISASTER PROPERTY.

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

     SEC. 674. NET OPERATING LOSSES ATTRIBUTABLE TO FEDERALLY 
                   DECLARED DISASTERS.

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

     SEC. 675. EXPENSING OF QUALIFIED DISASTER EXPENSES.

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

                      PART II--REGIONAL PROVISIONS

                    Subpart A--New York Liberty Zone

     SEC. 681. SPECIAL DEPRECIATION ALLOWANCE FOR NONRESIDENTIAL 
                   AND RESIDENTIAL REAL PROPERTY.

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

     SEC. 682. TAX-EXEMPT BOND FINANCING.

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

                           Subpart B--GO Zone

     SEC. 683. SPECIAL DEPRECIATION ALLOWANCE.

       (a) In General.--Paragraph (6) of section 1400N(d)(6) is 
     amended by striking subparagraph (D).
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 684. INCREASE IN REHABILITATION CREDIT.

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

                  Subpart C--Midwestern Disaster Areas

     SEC. 685. SPECIAL RULES FOR USE OF RETIREMENT FUNDS.

       (a) In General.--Section 702(d)(10) of the Heartland 
     Disaster Tax Relief Act of 2008 (Public Law 110-343; 122 
     Stat. 3918) is amended--
       (1) by striking ``January 1, 2010'' both places it appears 
     and inserting ``January 1, 2011'', and
       (2) by striking ``December 31, 2009'' both places it 
     appears and inserting ``December 31, 2010''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in section 702(d)(10) of the 
     Heartland Disaster Tax Relief Act of 2008.

     SEC. 686. EXCLUSION OF CANCELLATION OF MORTGAGE INDEBTEDNESS.

       (a) In General.--Section 702(e)(4)(C) of the Heartland 
     Disaster Tax Relief Act of 2008 (Public Law 110-343; 122 
     Stat. 3918) is amended by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to discharges of indebtedness after December 31, 
     2009.

    TITLE VII--UNEMPLOYMENT INSURANCE, HEALTH, AND OTHER PROVISIONS

                   Subtitle A--Unemployment Insurance

     SEC. 701. EXTENSION OF UNEMPLOYMENT INSURANCE PROVISIONS.

       (a) In General.--(1) Section 4007 of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (A) by striking ``February 28, 2010'' each place it appears 
     and inserting ``May 31, 2010'';
       (B) in the heading for subsection (b)(2), by striking 
     ``February 28, 2010'' and inserting ``May 31, 2010''; and
       (C) in subsection (b)(3), by striking ``July 31, 2010'' and 
     inserting ``November 1, 2010''.
       (2) Section 2002(e) of the Assistance for Unemployed 
     Workers and Struggling Families Act, as contained in Public 
     Law 111-5 (26 U.S.C. 3304 note; 123 Stat. 438), is amended--
       (A) in paragraph (1)(B), by striking ``February 28, 2010'' 
     and inserting ``May 31, 2010'';
       (B) in the heading for paragraph (2), by striking 
     ``February 28, 2010'' and inserting ``May 31, 2010''; and
       (C) in paragraph (3), by striking ``August 31, 2010'' and 
     inserting ``November 30, 2010''.
       (3) Section 2005 of the Assistance for Unemployed Workers 
     and Struggling Families Act, as contained in Public Law 111-5 
     (26 U.S.C. 3304 note; 123 Stat. 444), is amended--
       (A) by striking ``February 28, 2010'' each place it appears 
     and inserting ``May 31, 2010''; and
       (B) in subsection (c), by striking ``July 31, 2010'' and 
     inserting ``November 1, 2010''.
       (4) Section 5 of the Unemployment Compensation Extension 
     Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is 
     amended by striking ``July 31, 2010'' and inserting 
     ``November 1, 2010''.
       (b) Funding.--Section 4004(e)(1) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (1) in subparagraph (B), by striking ``and'' at the end;
       (2) in subparagraph (C), by striking ``1009'' and inserting 
     ``1009(a)(1)''; and
       (3) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) the amendments made by section 601(a)(1) of the 
     Hiring Incentives to Restore Employment Act; and''.

                     Subtitle B--Health Provisions

     SEC. 711. EXTENSION AND IMPROVEMENT OF PREMIUM ASSISTANCE FOR 
                   COBRA BENEFITS.

       (a) Extension of Eligibility Period.--Subsection (a)(3)(A) 
     of section 3001 of division B of the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5) is amended by 
     striking ``February 28, 2010'' and inserting ``May 31, 
     2010''.
       (b) Clarifications Relating to Section 3001 of ARRA.--
       (1) Clarification regarding cobra continuation resulting 
     from reductions in hours.--Subsection (a) of section 3001 of 
     division B of the American Recovery and Reinvestment Act of 
     2009 (Public Law 111-5) is amended--
       (A) in paragraph (3)(C), by inserting before the period at 
     the end the following: ``or consists of a reduction of hours 
     followed by such an involuntary termination of employment 
     during such period'';
       (B) in paragraph (16)--
       (i) by striking clause (ii) of subparagraph (A), and 
     inserting the following:
       ``(ii) such individual pays, by the latest of 60 days after 
     the date of the enactment of this paragraph, 30 days after 
     the date of provision of the notification required under 
     subparagraph (D)(ii), or the period described in section 
     4980B(f)(2)(B)(iii) of the Internal Revenue Code of 1986, the 
     amount of such premium, after the application of paragraph 
     (1)(A).''; and
       (ii) by striking subclause (I) of subparagraph (C)(i), and 
     inserting the following:

       ``(I) such assistance eligible individual experienced an 
     involuntary termination that was a qualifying event prior to 
     the date of enactment of the Department of Defense 
     Appropriations Act, 2010; and''; and

       (C) by adding at the end the following:
       ``(17) Special rules in case of individuals losing coverage 
     because of a reduction of hours.--
       ``(A) New election period.--
       ``(i) In general.--For purposes of the COBRA continuation 
     provisions, in the case of an individual described in 
     subparagraph (C) who did not make (or who made and 
     discontinued) an election of COBRA continuation coverage on 
     the basis of the reduction of hours of employment, the 
     involuntary termination of employment of such individual 
     after the date of the enactment of the Hiring Incentives to 
     Restore Employment Act shall be treated as a qualifying 
     event.
       ``(ii) Counting cobra duration period from previous 
     qualifying event.--In any case of an individual referred to 
     in clause (i), the period of such individual's continuation 
     coverage shall be determined as though the qualifying event 
     were the reduction of hours of employment.
       ``(iii) Construction.--Nothing in this paragraph shall be 
     construed as requiring an individual referred to in clause 
     (i) to make a payment for COBRA continuation coverage between 
     the reduction of hours and the involuntary termination of 
     employment.
       ``(iv) Preexisting conditions.--With respect to an 
     individual referred to in clause (i) who elects COBRA 
     continuation coverage pursuant to such clause, rules similar 
     to the rules in paragraph (4)(C) shall apply.
       ``(B) Notices.--In the case of an individual described in 
     subparagraph (C), the administrator of the group health plan 
     (or other entity) involved shall provide, during the 60-day 
     period beginning on the date of such individual's involuntary 
     termination of employment, an additional notification 
     described in paragraph (7)(A), including information on the 
     provisions of this paragraph. Rules similar to the rules of 
     paragraph (7) shall apply with respect to such notification.
       ``(C) Individuals described.--Individuals described in this 
     subparagraph are individuals who are assistance eligible 
     individuals on the basis of a qualifying event consisting of 
     a reduction of hours occurring during the period described in 
     paragraph (3)(A) followed by an involuntary termination of 
     employment insofar as such involuntary termination of 
     employment occurred after the date of the enactment of the 
     Hiring Incentives to Restore Employment Act.''.
       (2) Clarification of period of assistance.--Subsection 
     (a)(2)(A)(ii)(I) of such section is amended by striking ``of 
     the first month''.
       (3) Enforcement.--Subsection (a)(5) of such section is 
     amended by adding at the end the following: ``In addition to 
     civil actions that may be brought to enforce applicable 
     provisions of such Act or other laws, the appropriate 
     Secretary or an affected individual may bring a civil action 
     to enforce such determinations and for appropriate relief. In 
     addition, such Secretary may assess a penalty against a plan 
     sponsor or health insurance issuer of not more than $110 per 
     day for each failure to comply with such determination of 
     such Secretary after 10 days after the date of the plan 
     sponsor's or issuer's receipt of the determination.''.

[[Page S646]]

       (4) Amendments relating to section 3001 of arra.--
       (A) Subsection (g) of section 35 is amended by striking 
     ``section 3002(a) of the Health Insurance Assistance for the 
     Unemployed Act of 2009'' and inserting ``section 3001(a) of 
     title III of division B of the American Recovery and 
     Reinvestment Act of 2009''.
       (B) Section 139C is amended by striking ``section 3002 of 
     the Health Insurance Assistance for the Unemployed Act of 
     2009'' and inserting ``section 3001 of title III of division 
     B of the American Recovery and Reinvestment Act of 2009''.
       (C) Section 6432 is amended--
       (i) in subsection (a), by striking ``section 3002(a) of the 
     Health Insurance Assistance for the Unemployed Act of 2009'' 
     and inserting ``section 3001(a) of title III of division B of 
     the American Recovery and Reinvestment Act of 2009'';
       (ii) in subsection (c)(3), by striking ``section 
     3002(a)(1)(A) of such Act'' in subsection (c)(3) and 
     inserting ``section 3001(a)(1)(A) of title III of division B 
     of the American Recovery and Reinvestment Act of 2009''; and
       (iii) by redesignating subsections (e) and (f) as 
     subsections (f) and (g), respectively, and inserting after 
     subsection (d) the following new subsection:.
       ``(e) Employer Determination of Qualifying Event as 
     Involuntary Termination.--For purposes of this section, in 
     any case in which--
       ``(1) based on a reasonable interpretation of section 
     3001(a)(3)(C) of division B of the American Recovery and 
     Reinvestment Act of 2009 and administrative guidance 
     thereunder, an employer determines that the qualifying event 
     with respect to COBRA continuation coverage for an individual 
     was involuntary termination of a covered employee's 
     employment, and
       ``(2) the employer maintains supporting documentation of 
     the determination, including an attestation by the employer 
     of involuntary termination with respect to the covered 
     employee,
     the qualifying event for the individual shall be deemed to be 
     involuntary termination of the covered employee's 
     employment.''.
       (D) Subsection (a) of section 6720C is amended by striking 
     ``section 3002(a)(2)(C) of the Health Insurance Assistance 
     for the Unemployed Act of 2009'' and inserting ``section 
     3001(a)(2)(C) of title III of division B of the American 
     Recovery and Reinvestment Act of 2009''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of section 
     3001 of division B of the American Recovery and Reinvestment 
     Act of 2009 to which they relate, except that--
       (1) the amendments made by subsections (b)(1) shall apply 
     to periods of coverage beginning after the date of the 
     enactment of this Act; and
       (2) the amendments made by paragraphs (2) and (3) of 
     subsection (b) shall take effect on the date of the enactment 
     of this Act.

     SEC. 712. EXTENSION OF THERAPY CAPS EXCEPTIONS PROCESS.

       Section 1833(g)(5) of the Social Security Act (42 U.S.C. 
     1395l(g)(5)) is amended by striking ``December 31, 2009'' and 
     inserting ``December 31, 2010''.

     SEC. 713. TREATMENT OF PHARMACIES UNDER DURABLE MEDICAL 
                   EQUIPMENT ACCREDITATION REQUIREMENTS.

       (a) In General.--Section 1834(a)(20) of the Social Security 
     Act (42 U.S.C. 1395m(a)(20)) is amended--
       (1) in subparagraph (F)--
       (A) in clause (i)--
       (i) by striking ``clause (ii)'' and inserting ``clauses 
     (ii) and (iii)'';
       (ii) by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''; and
       (iii) by striking ``and'' at the end;
       (B) in clause (ii)(II), by striking the period at the end 
     and inserting ``; and'';
       (C) by inserting after clause (ii)(II) the following new 
     clause:
       ``(iii)(I) subject to subclause (II), with respect to items 
     and services furnished on or after January 1, 2011, the 
     accreditation requirement of clause (i) shall not apply to a 
     pharmacy described in subparagraph (G); and
       ``(II) effective with respect to items and services 
     furnished on or after the date of the enactment of this 
     subparagraph, the Secretary may apply to pharmacies quality 
     standards and an accreditation requirement established by the 
     Secretary that are an alternative to the quality standards 
     and accreditation requirement otherwise applicable under this 
     paragraph if the Secretary determines such alternative 
     quality standards and accreditation requirement are 
     appropriate for pharmacies.''; and
       (D) by adding at the end the following flush sentence:
     ``If determined appropriate by the Secretary, any alternative 
     quality standards and accreditation requirement established 
     under clause (iii)(II) may differ for categories of 
     pharmacies established by the Secretary (such as pharmacies 
     described in subparagraph (G)).''; and
       (2) by adding at the end the following new subparagraph:
       ``(G) Pharmacy described.--A pharmacy described in this 
     subparagraph is a pharmacy that meets each of the following 
     criteria:
       ``(i) The total billings by the pharmacy for such items and 
     services under this title are less than 5 percent of total 
     pharmacy sales for a previous period (of not less than 24 
     months) specified by the Secretary.
       ``(ii) The pharmacy has been enrolled under section 1866(j) 
     as a supplier of durable medical equipment, prosthetics, 
     orthotics, and supplies, has been issued (which may include 
     the renewal of) a provider number for at least 2 years, and 
     for which a final adverse action (as defined in section 
     424.57(a) of title 42, Code of Federal Regulations) has not 
     been imposed in the past 2 years.
       ``(iii) The pharmacy submits to the Secretary an 
     attestation, in a form and manner, and at a time, specified 
     by the Secretary, that the pharmacy meets the criteria 
     described in clauses (i) and (ii).
       ``(iv) The pharmacy agrees to submit materials as requested 
     by the Secretary, or during the course of an audit conducted 
     on a random sample of pharmacies selected annually, to verify 
     that the pharmacy meets the criteria described in clauses (i) 
     and (ii). Materials submitted under the preceding sentence 
     shall include a certification by an independent accountant on 
     behalf of the pharmacy or the submission of tax returns filed 
     by the pharmacy during the relevant periods, as requested by 
     the Secretary.''.
       (b) Conforming Amendments.--Section 1834(a)(20)(E) of the 
     Social Security Act (42 U.S.C. 1395m(a)(20)(E)) is amended--
       (1) in the first sentence, by striking ``The'' and 
     inserting ``Except as provided in the third sentence, the''; 
     and
       (2) by adding at the end the following new sentences: 
     ``Notwithstanding the preceding sentences, any alternative 
     quality standards and accreditation requirement established 
     under subparagraph (F)(iii)(II) shall be established through 
     notice and comment rulemaking. The Secretary may implement by 
     program instruction or otherwise subparagraph (G) after 
     consultation with representatives of relevant parties. The 
     specifications developed by the Secretary in order to 
     implement subparagraph (G) shall be posted on the Internet 
     website of the Centers for Medicare & Medicaid Services.''.
       (c) Administration.--Chapter 35 of title 44, United States 
     Code, shall not apply to this section.
       (d) Rule of Construction.--Nothing in the provisions of, or 
     amendments made by, this section shall be construed as 
     affecting the application of an accreditation requirement for 
     pharmacies to qualify for bidding in a competitive 
     acquisition area under section 1847 of the Social Security 
     Act (42 U.S.C. 1395w-3).
       (e) Waiver of 1-Year Reenrollment Bar.--In the case of a 
     pharmacy described in subparagraph (G) of section 1834(a)(20) 
     of the Social Security Act, as added by subsection (a), whose 
     billing privileges were revoked prior to January 1, 2011, by 
     reason of noncompliance with subparagraph (F)(i) of such 
     section, the Secretary of Health and Human Services shall 
     waive any reenrollment bar imposed pursuant to section 
     424.535(d) of title 42, Code of Federal Regulations (as in 
     effect on the date of the enactment of this Act) for such 
     pharmacy to reapply for such privileges.

     SEC. 714. ENHANCED PAYMENT FOR MENTAL HEALTH SERVICES.

       Section 138(a)(1) of the Medicare Improvements for Patients 
     and Providers Act of 2008 (Public Law 110-275) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2010''.

     SEC. 715. EXTENSION OF AMBULANCE ADD-ONS.

       (a) In General.--Section 1834(l)(13) of the Social Security 
     Act (42 U.S.C. 1395m(l)(13)) is amended--
       (1) in subparagraph (A)--
       (A) in the matter preceding clause (i), by striking 
     ``before January 1, 2010'' and inserting ``before January 1, 
     2011''; and
       (B) in each of clauses (i) and (ii), by striking ``before 
     January 1, 2010'' and inserting ``before January 1, 2011''.
       (b) Air Ambulance Improvements.--Section 146(b)(1) of the 
     Medicare Improvements for Patients and Providers Act of 2008 
     (Public Law 110-275) is amended by striking ``ending on 
     December 31, 2009'' and inserting ``ending on December 31, 
     2010''.
       (c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the 
     Social Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended--
       (1) in the first sentence, by striking ``2010'' and 
     inserting ``2011''; and
       (2) by adding at the end the following new sentence: ``For 
     purposes of applying this subparagraph for ground ambulance 
     services furnished on or after January 1, 2010, and before 
     January 1, 2011, the Secretary shall use the percent increase 
     that was applicable under this subparagraph to ground 
     ambulance services furnished during 2009.''.

     SEC. 716. EXTENSION OF GEOGRAPHIC FLOOR FOR WORK.

       Section 1848(e)(1)(E) of the Social Security Act (42 U.S.C. 
     1395w-4(e)(1)(E)) is amended by striking ``before January 1, 
     2010'' and inserting ``before January 1, 2011''.

     SEC. 717. EXTENSION OF PAYMENT FOR TECHNICAL COMPONENT OF 
                   CERTAIN PHYSICIAN PATHOLOGY SERVICES.

       Section 542(c) of the Medicare, Medicaid, and SCHIP 
     Benefits Improvement and Protection Act of 2000 (as enacted 
     into law by section 1(a)(6) of Public Law 106-554), as 
     amended by section 732 of the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003 (42 U.S.C. 1395w-4 
     note), section 104 of division B of the Tax Relief and Health 
     Care Act of 2006 (42 U.S.C. 1395w-4 note), section 104 of the 
     Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public 
     Law 110-173), and section 136 of the Medicare Improvements 
     for Patients and Providers Act of 2008 (Public Law 110-275), 
     is amended by striking ``and 2009'' and inserting ``2009, and 
     2010''.

[[Page S647]]

     SEC. 718. EXTENSION OF OUTPATIENT HOLD HARMLESS PROVISION.

       Section 1833(t)(7)(D)(i) of the Social Security Act (42 
     U.S.C. 1395l(t)(7)(D)(i)) is amended--
       (1) in subclause (II)--
       (A) in the first sentence, by striking ``2010''and 
     inserting ``2011''; and
       (B) in the second sentence, by striking ``or 2009'' and 
     inserting ``, 2009, or 2010''; and
       (2) in subclause (III), by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.

     SEC. 719. EHR CLARIFICATION.

       (a) Qualification for Clinic-Based Physicians.--
       (1) Medicare.--Section 1848(o)(1)(C)(ii) of the Social 
     Security Act (42 U.S.C. 1395w-4(o)(1)(C)(ii)) is amended by 
     striking ``setting (whether inpatient or outpatient)'' and 
     inserting ``inpatient or emergency room setting''.
       (2) Medicaid.--Section 1903(t)(3)(D) of the Social Security 
     Act (42 U.S.C. 1396b(t)(3)(D)) is amended by striking 
     ``setting (whether inpatient or outpatient)'' and inserting 
     ``inpatient or emergency room setting''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall be effective as if included in the enactment of the 
     HITECH Act (included in the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5)).
       (c) Implementation.--Notwithstanding any other provision of 
     law, the Secretary may implement the amendments made by this 
     section by program instruction or otherwise.

     SEC. 720. EXTENSION OF REIMBURSEMENT FOR ALL MEDICARE PART B 
                   SERVICES FURNISHED BY CERTAIN INDIAN HOSPITALS 
                   AND CLINICS.

       Section 1880(e)(1)(A) of the Social Security Act (42 U.S.C. 
     1395qq(e)(1)(A)) is amended by striking ``5-year period'' and 
     inserting ``6-year period''.

     SEC. 721. EXTENSION OF CERTAIN PAYMENT RULES FOR LONG-TERM 
                   CARE HOSPITAL SERVICES AND OF MORATORIUM ON THE 
                   ESTABLISHMENT OF CERTAIN HOSPITALS AND 
                   FACILITIES.

       (a) Extension of Certain Payment Rules.--Section 114(c) of 
     the Medicare, Medicaid, and SCHIP Extension Act of 2007 (42 
     U.S.C. 1395ww note), as amended by section 4302(a) of the 
     American Recovery and Reinvestment Act (Public Law 111-5), is 
     amended by striking ``3-year period'' each place it appears 
     and inserting ``4-year period''.
       (b) Extension of Moratorium.--Section 114(d)(1) of such Act 
     (42 U.S.C. 1395ww note), as amended by section 4302(b) of the 
     American Recovery and Reinvestment Act (Public Law 111-5), in 
     the matter preceding subparagraph (A), is amended by striking 
     ``3-year period'' and inserting ``4-year period''.

     SEC. 722. EXTENSION OF THE MEDICARE RURAL HOSPITAL 
                   FLEXIBILITY PROGRAM.

       Section 1820(j) of the Social Security Act (42 U.S.C. 
     1395i-4(j)) is amended--
       (1) by striking ``2010, and for'' and inserting ``2010, 
     for''; and
       (2) by inserting ``and for making grants to all States 
     under subsection (g), such sums as may be necessary in fiscal 
     year 2011, to remain available until expended'' before the 
     period at the end.

     SEC. 723. EXTENSION OF SECTION 508 HOSPITAL 
                   RECLASSIFICATIONS.

       (a) In General.--Subsection (a) of section 106 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) and section 124 of the Medicare Improvements for 
     Patients and Providers Act of 2008 (Public Law 110-275), is 
     amended by striking ``September 30, 2009'' and inserting 
     ``September 30, 2010''.
       (b) Special Rule for Fiscal Year 2010.--For purposes of 
     implementation of the amendment made by subsection (a), 
     including (notwithstanding paragraph (3) of section 117(a) of 
     the Medicare, Medicaid, and SCHIP Extension Act of 2007 
     (Public Law 110-173), as amended by section 124(b) of the 
     Medicare Improvements for Patients and Providers Act of 2008 
     (Public Law 110-275)) for purposes of the implementation of 
     paragraph (2) of such section 117(a), during fiscal year 
     2010, the Secretary of Health and Human Services (in this 
     subsection referred to as the ``Secretary'') shall use the 
     hospital wage index that was promulgated by the Secretary in 
     the Federal Register on August 27, 2009 (74 Fed. Reg. 43754), 
     and any subsequent corrections.

     SEC. 724. TECHNICAL CORRECTION RELATED TO CRITICAL ACCESS 
                   HOSPITAL SERVICES.

       (a) In General.--Subsections (g)(2)(A) and (l)(8) of 
     section 1834 of the Social Security Act (42 U.S.C. 1395m) are 
     each amended by inserting ``101 percent of'' before ``the 
     reasonable costs''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect as if included in the enactment of section 
     405(a) of the Medicare Prescription Drug, Improvement, and 
     Modernization Act of 2003 (Public Law 108-173; 117 Stat. 
     2266).

     SEC. 725. EXTENSION FOR SPECIALIZED MA PLANS FOR SPECIAL 
                   NEEDS INDIVIDUALS.

       (a) In General.--Section 1859(f)(1) of the Social Security 
     Act (42 U.S.C. 1395w-28(f)(1)) is amended by striking 
     ``2011'' and inserting ``2012''.
       (b) Temporary Extension of Authority To Operate but No 
     Service Area Expansion for Dual Special Needs Plans That Do 
     Not Meet Certain Requirements.--Section 164(c)(2) of the 
     Medicare Improvements for Patients and Providers Act of 2008 
     (Public Law 110-275) is amended by striking ``December 31, 
     2010'' and inserting ``December 31, 2011''.

     SEC. 726. EXTENSION OF REASONABLE COST CONTRACTS.

       Section 1876(h)(5)(C)(ii) of the Social Security Act (42 
     U.S.C. 1395mm(h)(5)(C)(ii)) is amended, in the matter 
     preceding subclause (I), by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.

     SEC. 727. EXTENSION OF PARTICULAR WAIVER POLICY FOR EMPLOYER 
                   GROUP PLANS.

       For plan year 2011 and subsequent plan years, to the extent 
     that the Secretary of Health and Human Services is applying 
     the 2008 service area extension waiver policy (as modified in 
     the April 11, 2008, Centers for Medicare & Medicaid Services' 
     memorandum with the subject ``2009 Employer Group Waiver-
     Modification of the 2008 Service Area Extension Waiver 
     Granted to Certain MA Local Coordinated Care Plans'') to 
     Medicare Advantage coordinated care plans, the Secretary 
     shall extend the application of such waiver policy to 
     employers who contract directly with the Secretary as a 
     Medicare Advantage private fee-for-service plan under section 
     1857(i)(2) of the Social Security Act (42 U.S.C. 1395w-
     27(i)(2)) and that had enrollment as of January 1, 2010.

     SEC. 728. EXTENSION OF CONTINUING CARE RETIREMENT COMMUNITY 
                   PROGRAM.

       Notwithstanding any other provision of law, the Secretary 
     of Health and Human Services shall continue to conduct the 
     Erickson Advantage Continuing Care Retirement Community 
     (CCRC) program under part C of title XVIII of the Social 
     Security Act through December 31, 2011.

     SEC. 729. FUNDING OUTREACH AND ASSISTANCE FOR LOW-INCOME 
                   PROGRAMS.

       (a) Additional Funding for State Health Insurance 
     Programs.--Subsection (a)(1)(B) of section 119 of the 
     Medicare Improvements for Patients and Providers Act of 2008 
     (42 U.S.C. 1395b-3 note) is amended by striking ``(42 U.S.C. 
     1395w-23(f))'' and all that follows through the period at the 
     end and inserting ``(42 U.S.C. 1395w-23(f)), to the Centers 
     for Medicare & Medicaid Services Program Management Account--
       ``(i) for fiscal year 2009, of $7,500,000; and
       ``(ii) for fiscal year 2010, of $6,000,000.
     Amounts appropriated under this subparagraph shall remain 
     available until expended.''.
       (b) Additional Funding for Area Agencies on Aging.--
     Subsection (b)(1)(B) of such section 119 is amended by 
     striking ``(42 U.S.C. 1395w-23(f))'' and all that follows 
     through the period at the end and inserting ``(42 U.S.C. 
     1395w-23(f)), to the Administration on Aging--
       ``(i) for fiscal year 2009, of $7,500,000; and
       ``(ii) for fiscal year 2010, of $6,000,000.
     Amounts appropriated under this subparagraph shall remain 
     available until expended.''.
       (c) Additional Funding for Aging and Disability Resource 
     Centers.--Subsection (c)(1)(B) of such section 119 is amended 
     by striking ``(42 U.S.C. 1395w-23(f))'' and all that follows 
     through the period at the end and inserting ``(42 U.S.C. 
     1395w-23(f)), to the Administration on Aging--
       ``(i) for fiscal year 2009, of $5,000,000; and
       ``(ii) for fiscal year 2010, of $6,000,000.
     Amounts appropriated under this subparagraph shall remain 
     available until expended.''.
       (d) Additional Funding for Contract With the National 
     Center for Benefits and Outreach Enrollment.--Subsection 
     (d)(2) of such section 119 is amended by striking ``(42 
     U.S.C. 1395w-23(f))'' and all that follows through the period 
     at the end and inserting ``(42 U.S.C. 1395w-23(f)), to the 
     Administration on Aging--
       ``(i) for fiscal year 2009, of $5,000,000; and
       ``(ii) for fiscal year 2010, of $2,000,000.
     Amounts appropriated under this subparagraph shall remain 
     available until expended.''.

     SEC. 730. FAMILY-TO-FAMILY HEALTH INFORMATION CENTERS.

       Section 501(c)(1)(A)(iii) of the Social Security Act (42 
     U.S.C. 701(c)(1)(A)(iii)) is amended by striking ``fiscal 
     year 2009'' and inserting ``each of fiscal years 2009 through 
     2011''.

     SEC. 731. IMPLEMENTATION FUNDING.

       For purposes of carrying out the provisions of, and 
     amendments made by, this title that relate to titles XVIII 
     and XIX of the Social Security Act, 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, $100,000,000. Amounts appropriated 
     under the preceding sentence shall remain available until 
     expended.

                      Subtitle C--Other Provisions

     SEC. 741. EXTENSION OF USE OF 2009 POVERTY GUIDELINES.

       Section 1012 of the Department of Defense Appropriations 
     Act, 2010 (Public Law 111-118) is amended--
       (1) by striking ``before March 1, 2010''; and
       (2) by inserting ``for 2011'' after ``until updated poverty 
     guidelines''.

     SEC. 742. REFUNDS DISREGARDED IN THE ADMINISTRATION OF 
                   FEDERAL PROGRAMS AND FEDERALLY ASSISTED 
                   PROGRAMS.

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

[[Page S648]]

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

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

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

     SEC. 743. STATE COURT IMPROVEMENT PROGRAM.

       Section 438 of the Social Security Act (42 U.S.C. 629h) is 
     amended--
       (1) in subsection (c)(2)(A), by striking ``2010'' and 
     inserting ``2011''; and
       (2) in subsection (e), by striking ``2010'' and inserting 
     ``2011''.

     SEC. 744. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

       Section 129 of the Continuing Appropriations Resolution, 
     2010 (Public Law 111-68), as amended by section 1005 of 
     Public Law 111-118, is further amended by striking ``by 
     substituting'' and all that follows through the period at the 
     end, and inserting ``by substituting May 31, 2010, for the 
     date specified in each such section.''.

     SEC. 745. EXTENSION OF INTELLIGENCE AUTHORITY SUNSETS.

       (a) USA PATRIOT Improvement and Reauthorization Act of 
     2005.--Section 102(b)(1) of the USA PATRIOT Improvement and 
     Reauthorization Act of 2005 (Public Law 109-177; 50 U.S.C. 
     1805 note, 50 U.S.C. 1861 note, and 50 U.S.C. 1862 note) is 
     amended by striking ``February 28, 2010'' and inserting 
     ``February 28, 2011''.
       (b) Intelligence Reform and Terrorism Prevention Act of 
     2004.--Section 6001(b)(1) of the Intelligence Reform and 
     Terrorism Prevention Act of 2004 (Public Law 108-458; 118 
     Stat. 3742; 50 U.S.C. 1801 note) is amended by striking 
     ``February 28, 2010'' and inserting ``February 28, 2011''.

     SEC. 746. SMALL BUSINESS LOAN GUARANTEE ENHANCEMENT 
                   EXTENSIONS.

       (a) Appropriation.--There is appropriated, out of any funds 
     in the Treasury not otherwise appropriated, for an additional 
     amount for ``Small Business Administration - Business Loans 
     Program Account'', $354,000,000, to remain available through 
     December 31, 2010, for the cost of--
       (1) fee reductions and eliminations under section 501 of 
     division A of the American Recovery and Reinvestment Act of 
     2009 (Public Law 111-5; 123 Stat. 151), as amended by this 
     section, for loans guaranteed under section 7(a) of the Small 
     Business Act (15 U.S.C. 636(a)), title V of the Small 
     Business Investment Act of 1958 (15 U.S.C. 695 et seq.), or 
     section 502 of division A of the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 152), 
     as amended by this section; and
       (2) loan guarantees under section 502 of division A of the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5; 123 Stat. 152), as amended by this section,
     Provided, That such costs, including the cost of modifying 
     such loans, shall be as defined in section 502 of the 
     Congressional Budget Act of 1974.
       (b) Extension of Programs.--
       (1) Fees.--Section 501 of division A of the American 
     Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123 
     Stat. 151) is amended by striking ``September 30, 2010'' each 
     place it appears and inserting ``December 31, 2010''.
       (2) Loan guarantees.--Section 502(f) of division A of the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5; 123 Stat. 153) is amended by striking ``February 28, 
     2010'' and inserting ``December 31, 2010''.

                   TITLE VIII--PENSION FUNDING RELIEF

                   Subtitle A--Single Employer Plans

     SEC. 801. EXTENDED PERIOD FOR SINGLE-EMPLOYER DEFINED BENEFIT 
                   PLANS TO AMORTIZE CERTAIN SHORTFALL 
                   AMORTIZATION BASES.

       (a) Amendments to ERISA.--
       (1) In general.--Paragraph (2) of section 303(c) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1083(c)) is amended by adding at the end the following 
     subparagraph:
       ``(D) Special election for eligible plan years.--
       ``(i) In general.--If a plan sponsor elects to apply this 
     subparagraph with respect to the shortfall amortization base 
     of a plan for any eligible plan year (in this subparagraph 
     and paragraph (7) referred to as an `election year'), then, 
     notwithstanding subparagraphs (A) and (B)--

       ``(I) the shortfall amortization installments with respect 
     to such base shall be determined under clause (ii) or (iii), 
     whichever is specified in the election, and
       ``(II) the shortfall amortization installment for any plan 
     year in the 9-plan-year period described in clause (ii) or 
     the 15-plan-year period described in clause (iii), 
     respectively, with respect to such shortfall amortization 
     base is the annual installment determined under the 
     applicable clause for that year for that base.

       ``(ii) 2 plus 7 amortization schedule.--The shortfall 
     amortization installments determined under this clause are--

       ``(I) in the case of the first 2 plan years in the 9-plan-
     year period beginning with the election year, interest on the 
     shortfall amortization base of the plan for the election year 
     (determined using the effective interest rate for the plan 
     for the election year), and
       ``(II) in the case of the last 7 plan years in such 9-plan-
     year period, the amounts necessary to amortize the remaining 
     balance of the shortfall amortization base of the plan for 
     the election year in level annual installments over such last 
     7 plan years (using the segment rates under subparagraph (C) 
     for the election year).

       ``(iii) 15-year amortization.--The shortfall amortization 
     installments determined under this subparagraph are the 
     amounts necessary to amortize the shortfall amortization base 
     of the plan for the election year in level annual 
     installments over the 15-plan-year period beginning with the 
     election year (using the segment rates under subparagraph (C) 
     for the election year).
       ``(iv) Election.--

       ``(I) In general.--The plan sponsor of a plan may elect to 
     have this subparagraph apply to not more than 2 eligible plan 
     years with respect to the plan, except that in the case of a 
     plan described in section 106 of the Pension Protection Act 
     of 2006, the plan sponsor may only elect to have this 
     subparagraph apply to a plan year beginning in 2011.
       ``(II) Amortization schedule.--Such election shall specify 
     whether the amortization schedule under clause (ii) or (iii) 
     shall apply to an election year, except that if a plan 
     sponsor elects to have this subparagraph apply to 2 eligible 
     plan years, the plan sponsor must elect the same schedule for 
     both years.
       ``(III) Other rules.--Such election shall be made at such 
     time, and in such form and manner, as shall be prescribed by 
     the Secretary of the Treasury, and may be revoked only with 
     the consent of the Secretary of the Treasury. The Secretary 
     of the Treasury shall, before granting a revocation request, 
     provide the Pension Benefit Guaranty Corporation an 
     opportunity to comment on the conditions applicable to the 
     treatment of any portion of the election year shortfall 
     amortization base that remains unamortized as of the 
     revocation date.

       ``(v) Eligible plan year.--For purposes of this 
     subparagraph, the term `eligible plan year' means any plan 
     year beginning in 2008, 2009, 2010, or 2011, except that a 
     plan year shall only be treated as an eligible plan year if 
     the due date under subsection (j)(1) for the payment of the 
     minimum required contribution for such plan year occurs on or 
     after the date of the enactment of this subparagraph.
       ``(vi) Reporting.--A plan sponsor of a plan who makes an 
     election under clause (i) shall inform the Pension Benefit 
     Guaranty Corporation of such election in such form and manner 
     as the Director of the Pension Benefit Guaranty Corporation 
     may prescribe.
       ``(vii) Increases in required installments in certain 
     cases.--For increases in required contributions in cases of 
     excess compensation or extraordinary dividends or stock 
     redemptions, see paragraph (7).''.
       (2) Increases in required installments in certain cases.--
     Section 303(c) of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1083(c)) is amended by adding at the end 
     the following paragraph:
       ``(7) Increases in alternate required installments in cases 
     of excess compensation or extraordinary dividends or stock 
     redemptions.--
       ``(A) In general.--If there is an installment acceleration 
     amount with respect to a plan for any plan year in the 9-
     plan-year or 15-plan-year period, whichever is applicable, 
     with respect to an election year under paragraph (2)(D), then 
     the shortfall amortization installment otherwise determined 
     and payable under such paragraph for such plan year shall, 
     subject to the limitation under subparagraph (B), be 
     increased by such amount.
       ``(B) Total installments limited to shortfall base.--
     Subject to rules prescribed by the Secretary of the Treasury, 
     if a shortfall amortization installment with respect to any 
     shortfall amortization base for an election year is required 
     to be increased for any plan year under subparagraph (A)--
       ``(i) such increase shall not result in the amount of such 
     installment exceeding the present value of such installment 
     and all succeeding installments with respect to such base 
     (determined without regard to such increase but after 
     application of clause (ii)), and
       ``(ii) subsequent shortfall amortization installments with 
     respect to such base shall, in reverse order of the otherwise 
     required installments, be reduced to the extent necessary to 
     limit the present value of such subsequent shortfall 
     amortization installments (after application of this 
     paragraph) to the present value of the remaining unamortized 
     shortfall amortization base.
       ``(C) Installment acceleration amount.--For purposes of 
     this paragraph--
       ``(i) In general.--The term `installment acceleration 
     amount' means, with respect to any plan year, the sum of--

[[Page S649]]

       ``(I) the aggregate amount of excess employee compensation 
     determined under subparagraph (D) with respect to all 
     employees for the plan year, plus
       ``(II) the aggregate amount of extraordinary dividends and 
     redemptions determined under subparagraph (E) for the plan 
     year.

       ``(ii) Limitation to aggregate reduced required 
     contributions.--The installment acceleration amount for any 
     plan year shall not exceed the excess (if any) of--

       ``(I) the sum of the shortfall amortization installments 
     for the plan year and all preceding plan years in the 
     amortization period elected under paragraph (2)(D) with 
     respect to the shortfall amortization base with respect to an 
     election year, determined without regard to paragraph (2)(D) 
     and this paragraph, over
       ``(II) the sum of the shortfall amortization installments 
     for such plan year and all such preceding plan years, 
     determined after application of paragraph (2)(D) (and in the 
     case of any preceding plan year, after application of this 
     paragraph).

       ``(iii) Carryover of excess installment acceleration 
     amounts.--

       ``(I) In general.--If the installment acceleration amount 
     for any plan year (determined without regard to clause(ii)) 
     exceeds the limitation under clause (ii), then, subject to 
     subclause (II), such excess shall be treated as an 
     installment acceleration amount with respect to the 
     succeeding plan year.
       ``(II) Cap to apply.--If any amount treated as an 
     installment acceleration amount under subclause (I) or this 
     subclause with respect any succeeding plan year, when added 
     to other installment acceleration amounts (determined without 
     regard to clause (ii)) with respect to the plan year, exceeds 
     the limitation under clause (ii), the portion of such amount 
     representing such excess shall be treated as an installment 
     acceleration amount with respect to the next succeeding plan 
     year.
       ``(III) Ordering rules.--For purposes of applying subclause 
     (II), installment acceleration amounts for the plan year 
     (determined without regard to any carryover under this 
     clause) shall be applied first against the limitation under 
     clause (ii) and then carryovers to such plan year shall be 
     applied against such limitation on a first-in, first-out 
     basis.

       ``(D) Excess employee compensation.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `excess employee compensation' 
     means, with respect to any employee for any plan year, the 
     excess (if any) of--

       ``(I) the aggregate amount includible in income under 
     chapter 1 of the Internal Revenue Code of 1986 for 
     remuneration during the calendar year in which such plan year 
     begins for services performed by the employee for the plan 
     sponsor (whether or not performed during such calendar year), 
     over
       ``(II) $1,000,000.

       ``(ii) Amounts set aside for nonqualified deferred 
     compensation.--If during any calendar year assets are set 
     aside or reserved (directly or indirectly) in a trust (or 
     other arrangement as determined by the Secretary of the 
     Treasury), or transferred to such a trust or other 
     arrangement, by a plan sponsor for purposes of paying 
     deferred compensation of an employee under a nonqualified 
     deferred compensation plan (as defined in section 409A of 
     such Code) of the plan sponsor, then, for purposes of clause 
     (i), the amount of such assets shall be treated as 
     remuneration of the employee includible in income for the 
     calendar year unless such amount is otherwise includible in 
     income for such year. An amount to which the preceding 
     sentence applies shall not be taken into account under this 
     paragraph for any subsequent calendar year.
       ``(iii) Only remuneration for certain post-2009 services 
     counted.--Remuneration shall be taken into account under 
     clause (i) only to the extent attributable to services 
     performed by the employee for the plan sponsor after February 
     4, 2010.
       ``(iv) Exception for certain equity payments.--

       ``(I) In general.--Any amount includible in income with 
     respect to the granting on or after February 4, 2010, of an 
     equity interest described in subclause (II) shall not be 
     taken into account under clause (i)(I), but only if all 
     portions of such interest remain subject to a substantial 
     risk of forfeiture (other than in the case of death or 
     disability) at all times before the date which is 5 years 
     after the date on which such interest is granted.
       ``(II) Equity interests.--An equity interest is described 
     in this subclause if it is a stock option which is granted at 
     its fair market value on the date of the grant or a stock 
     appreciation right which is granted at its fair market value 
     on the date of the grant.
       ``(III) Substantial risk of forfeiture.--The term 
     `substantial risk of forfeiture' has the meaning given such 
     term by section 83(c)(1) of the Internal Revenue Code of 
     1986.
       ``(IV) Secretarial authority.--The Secretary of the 
     Treasury may by regulation provide for the application of 
     this clause in the case of a person other than a corporation.

       ``(v) Other exceptions.--The following amounts includible 
     in income shall not be taken into account under clause 
     (i)(I):

       ``(I) Commissions.--Any remuneration payable on a 
     commission basis solely on account of income directly 
     generated by the individual performance of the individual to 
     whom such remuneration is payable.
       ``(II) Payments under existing contracts.--Any remuneration 
     payable under a written binding contract that was in effect 
     on February 4, 2010, and which was not modified in any 
     material respect before such remuneration is repaid. This 
     subclause shall not apply to bonus payments payable under 
     such a contract during a calendar year to the extent that the 
     aggregate amount of such bonus payments during such calendar 
     year exceeds $100,000.

       ``(vi) Self-employed individual treated as employee.--The 
     term `employee' includes, with respect to a calendar year, a 
     self-employed individual who is treated as an employee under 
     section 401(c) of such Code for the taxable year ending 
     during such calendar year, and the term `compensation' shall 
     include earned income of such individual with respect to such 
     self-employment.
       ``(vii) Indexing of amount.--In the case of any calendar 
     year beginning after 2010, the dollar amount under clause 
     (i)(II) shall be increased by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) of such Code for the calendar year, 
     determined by substituting `calendar year 2009' for `calendar 
     year 1992' in subparagraph (B) thereof.

     If the amount of any increase under clause (i) is not a 
     multiple of $1,000, such increase shall be rounded to the 
     next lowest multiple of $1,000.
       ``(E) Extraordinary dividends and redemptions.--
       ``(i) In general.--The amount determined under this 
     subparagraph for any plan year is the sum of--

       ``(I) the aggregate amount of extraordinary dividends 
     declared during the plan year by the plan sponsor and 
     required to be reported under section 4043(c)(11), plus
       ``(II) if the plan sponsor redeems, in any 12-month period 
     ending during the plan year, an aggregate of 10 percent or 
     more of the total combined voting power of all classes of 
     stock entitled to vote, or an aggregate of 10 percent or more 
     of the total value of shares of all classes of stock, of the 
     plan sponsor, the aggregate fair market value of the stock so 
     redeemed.

       ``(ii) Only certain post-2009 dividends and redemptions 
     counted.--For purposes of clause (i)--

       ``(I) dividends shall be taken into account only if 
     declared after February 4, 2010, and
       ``(II) if clause (i)(II) otherwise applies for any plan 
     year (determined without regard to this subclause), only the 
     fair market value of redemptions occurring after February 4, 
     2010, shall be taken into account in determining the amount 
     under such clause for the plan year.

       ``(iii) Exception for intra-group dividends.--An 
     extraordinary dividend paid by one member of a controlled 
     group (as defined in section 302(d)(3)) to another member of 
     such group shall not be taken into account under clause 
     (i)(I).
       ``(F) Other definitions and rules.--For purposes of this 
     paragraph--
       ``(i) Bonus payment.--The term `bonus payment' means any 
     payment which is a payment for services rendered and which is 
     in addition to any amount payable to such individual for 
     services performed by such individual at a regular hourly, 
     daily, weekly, monthly, or similar periodic rate. Such term 
     does not include payments to an employee as commissions, 
     contributions to any qualified retirement plan (as defined in 
     section 4974(c) of the Internal Revenue Code of 1986), 
     welfare and fringe benefits, overtime pay, or expense 
     reimbursements. The Secretary of the Treasury may 
     recharacterize a payment that is a disguised bonus as a bonus 
     payment for purposes of this paragraph.
       ``(ii) Plan sponsor.--The term ` plan sponsor' includes any 
     member of the plan sponsor's controlled group (as defined in 
     section 302(d)(3)).
       ``(iii) Elections for multiple plans.--If a plan sponsor 
     makes elections under paragraph (2)(D) with respect to 2 or 
     more plans, the Secretary of the Treasury shall provide rules 
     for the application of this paragraph to such plans, 
     including rules for the ratable allocation of any installment 
     acceleration amount among such plans on the basis of each 
     plan's relative reduction in the plan's shortfall 
     amortization installment for the first plan year in the 
     amortization period described in subparagraph (A) (determined 
     without regard to this paragraph).
       ``(iv) Mergers and acquisitions.--The Secretary of the 
     Treasury shall prescribe rules for the application of 
     paragraph (2)(D) and this paragraph in any case where there 
     is a merger or acquisition involving a plan sponsor making 
     the election under paragraph (2)(D).''.
       (3) Conforming amendments.--Section 303 of such Act (29 
     U.S.C. 1083) is amended--
       (A) in subsection (c)(1), by striking ``the shortfall 
     amortization bases for such plan year and each of the 6 
     preceding plan years'' and inserting ``any shortfall 
     amortization base which has not been fully amortized under 
     this subsection'', and
       (B) in subsection (j)(3), by adding at the end the 
     following:
       ``(F) Quarterly contributions not to include certain 
     increased contributions.--Subparagraph (D) shall be applied 
     without regard to any increase under subsection (c)(7).''.
       (b) Amendments to Internal Revenue Code of 1986.--
       (1) In general.--Paragraph (2) of section 430(c) is amended 
     by adding at the end the following subparagraph:

[[Page S650]]

       ``(D) Special election for eligible plan years.--
       ``(i) In general.--If a plan sponsor elects to apply this 
     subparagraph with respect to the shortfall amortization base 
     of a plan for any eligible plan year (in this subparagraph 
     and paragraph (7) referred to as an `election year'), then, 
     notwithstanding subparagraphs (A) and (B)--

       ``(I) the shortfall amortization installments with respect 
     to such base shall be determined under clause (ii) or (iii), 
     whichever is specified in the election, and
       ``(II) the shortfall amortization installment for any plan 
     year in the 9-plan-year period described in clause (ii) or 
     the 15-plan-year period described in clause (iii), 
     respectively, with respect to such shortfall amortization 
     base is the annual installment determined under the 
     applicable clause for that year for that base.

       ``(ii) 2 plus 7 amortization schedule.--The shortfall 
     amortization installments determined under this clause are--

       ``(I) in the case of the first 2 plan years in the 9-plan-
     year period beginning with the election year, interest on the 
     shortfall amortization base of the plan for the election year 
     (determined using the effective interest rate for the plan 
     for the election year), and
       ``(II) in the case of the last 7 plan years in such 9-plan-
     year period, the amounts necessary to amortize the remaining 
     balance of the shortfall amortization base of the plan for 
     the election year in level annual installments over such last 
     7 plan years (using the segment rates under subparagraph (C) 
     for the election year).

       ``(iii) 15-year amortization.--The shortfall amortization 
     installments determined under this subparagraph are the 
     amounts necessary to amortize the shortfall amortization base 
     of the plan for the election year in level annual 
     installments over the 15-plan-year period beginning with the 
     election year (using the segment rates under subparagraph (C) 
     for the election year).
       ``(iv) Election.--

       ``(I) In general.--The plan sponsor of a plan may elect to 
     have this subparagraph apply to not more than 2 eligible plan 
     years with respect to the plan, except that in the case of a 
     plan described in section 106 of the Pension Protection Act 
     of 2006, the plan sponsor may only elect to have this 
     subparagraph apply to a plan year beginning in 2011.
       ``(II) Amortization schedule.--Such election shall specify 
     whether the amortization schedule under clause (ii) or (iii) 
     shall apply to an election year, except that if a plan 
     sponsor elects to have this subparagraph apply to 2 eligible 
     plan years, the plan sponsor must elect the same schedule for 
     both years.
       ``(III) Other rules.--Such election shall be made at such 
     time, and in such form and manner, as shall be prescribed by 
     the Secretary, and may be revoked only with the consent of 
     the Secretary. The Secretary shall, before granting a 
     revocation request, provide the Pension Benefit Guaranty 
     Corporation an opportunity to comment on the conditions 
     applicable to the treatment of any portion of the election 
     year shortfall amortization base that remains unamortized as 
     of the revocation date.

       ``(v) Eligible plan year.--For purposes of this 
     subparagraph, the term `eligible plan year' means any plan 
     year beginning in 2008, 2009, 2010, or 2011, except that a 
     plan year shall only be treated as an eligible plan year if 
     the due date under subsection (j)(1) for the payment of the 
     minimum required contribution for such plan year occurs on or 
     after the date of the enactment of this subparagraph.
       ``(vi) Reporting.--A plan sponsor of a plan who makes an 
     election under clause (i) shall inform the Pension Benefit 
     Guaranty Corporation of such election in such form and manner 
     as the Director of the Pension Benefit Guaranty Corporation 
     may prescribe.
       ``(vii) Increases in required installments in certain 
     cases.--For increases in required contributions in cases of 
     excess compensation or extraordinary dividends or stock 
     redemptions, see paragraph (7).''.
       (2) Increases in required contributions if excess 
     compensation paid.--Section 430(c) is amended by adding at 
     the end the following paragraph:
       ``(7) Increases in alternate required installments in cases 
     of excess compensation or extraordinary dividends or stock 
     redemptions.--
       ``(A) In general.--If there is an installment acceleration 
     amount with respect to a plan for any plan year in the 9-
     plan-year or 15-plan-year period, whichever is applicable, 
     with respect to an election year under paragraph (2)(D), then 
     the shortfall amortization installment otherwise determined 
     and payable under such paragraph for such plan year shall, 
     subject to the limitation under subparagraph (B), be 
     increased by such amount.
       ``(B) Total installments limited to shortfall base.--
     Subject to rules prescribed by the Secretary, if a shortfall 
     amortization installment with respect to any shortfall 
     amortization base for an election year is required to be 
     increased for any plan year under subparagraph (A)--
       ``(i) such increase shall not result in the amount of such 
     installment exceeding the present value of such installment 
     and all succeeding installments with respect to such base 
     (determined without regard to such increase but after 
     application of clause (ii)), and
       ``(ii) subsequent shortfall amortization installments with 
     respect to such base shall, in reverse order of the otherwise 
     required installments, be reduced to the extent necessary to 
     limit the present value of such subsequent shortfall 
     amortization installments (after application of this 
     paragraph) to the present value of the remaining unamortized 
     shortfall amortization base.
       ``(C) Installment acceleration amount.--For purposes of 
     this paragraph--
       ``(i) In general.--The term `installment acceleration 
     amount' means, with respect to any plan year, the sum of--

       ``(I) the aggregate amount of excess employee compensation 
     determined under subparagraph (D) with respect to all 
     employees for the plan year, plus
       ``(II) the aggregate amount of extraordinary dividends and 
     redemptions determined under subparagraph (E) for the plan 
     year.

       ``(ii) Limitation to aggregate reduced required 
     contributions.--The installment acceleration amount for any 
     plan year shall not exceed the excess (if any) of--

       ``(I) the sum of the shortfall amortization installments 
     for the plan year and all preceding plan years in the 
     amortization period elected under paragraph (2)(D) with 
     respect to the shortfall amortization base with respect to an 
     election year, determined without regard to paragraph (2)(D) 
     and this paragraph, over
       ``(II) the sum of the shortfall amortization installments 
     for such plan year and all such preceding plan years, 
     determined after application of paragraph (2)(D) (and in the 
     case of any preceding plan year, after application of this 
     paragraph).

       ``(iii) Carryover of excess installment acceleration 
     amounts.--

       ``(I) In general.--If the installment acceleration amount 
     for any plan year (determined without regard to clause(ii)) 
     exceeds the limitation under clause (ii), then, subject to 
     subclause (II), such excess shall be treated as an 
     installment acceleration amount with respect to the 
     succeeding plan year.
       ``(II) Cap to apply.--If any amount treated as an 
     installment acceleration amount under subclause (I) or this 
     subclause with respect any succeeding plan year, when added 
     to other installment acceleration amounts (determined without 
     regard to clause (ii)) with respect to the plan year, exceeds 
     the limitation under clause (ii), the portion of such amount 
     representing such excess shall be treated as an installment 
     acceleration amount with respect to the next succeeding plan 
     year.
       ``(III) Ordering rules.--For purposes of applying subclause 
     (II), installment acceleration amounts for the plan year 
     (determined without regard to any carryover under this 
     clause) shall be applied first against the limitation under 
     clause (ii) and then carryovers to such plan year shall be 
     applied against such limitation on a first-in, first-out 
     basis.

       ``(D) Excess employee compensation.--For purposes of this 
     paragraph--
       ``(i) In general.--The term `excess employee compensation' 
     means, with respect to any employee for any plan year, the 
     excess (if any) of--

       ``(I) the aggregate amount includible in income under this 
     chapter for remuneration during the calendar year in which 
     such plan year begins for services performed by the employee 
     for the plan sponsor (whether or not performed during such 
     calendar year), over
       ``(II) $1,000,000.

       ``(ii) Amounts set aside for nonqualified deferred 
     compensation.--If during any calendar year assets are set 
     aside or reserved (directly or indirectly) in a trust (or 
     other arrangement as determined by the Secretary), or 
     transferred to such a trust or other arrangement, by a plan 
     sponsor for purposes of paying deferred compensation of an 
     employee under a nonqualified deferred compensation plan (as 
     defined in section 409A) of the plan sponsor, then, for 
     purposes of clause (i), the amount of such assets shall be 
     treated as remuneration of the employee includible in income 
     for the calendar year unless such amount is otherwise 
     includible in income for such year. An amount to which the 
     preceding sentence applies shall not be taken into account 
     under this paragraph for any subsequent calendar year.
       ``(iii) Only remuneration for certain post-2009 services 
     counted.--Remuneration shall be taken into account under 
     clause (i) only to the extent attributable to services 
     performed by the employee for the plan sponsor after February 
     4, 2010.
       ``(iv) Exception for certain equity payments.--

       ``(I) In general.--Any amount includible in income with 
     respect to the granting on or after February 4, 2010, of an 
     equity interest described in subclause (II) shall not be 
     taken into account under clause (i)(I), but only if all 
     portions of such interest remain subject to a substantial 
     risk of forfeiture (other than in the case of death or 
     disability) at all times before the date which is 5 years 
     after the date on which such interest is granted.
       ``(II) Equity interests.--An equity interest is described 
     in this subclause if it is a stock option which is granted at 
     its fair market value on the date of the grant or a stock 
     appreciation right which is granted at its fair market value 
     on the date of the grant.
       ``(III) Substantial risk of forfeiture.--The term 
     `substantial risk of forfeiture' has the meaning given such 
     term by section 83(c)(1).
       ``(IV) Secretarial authority.--The Secretary may by 
     regulation provide for the application of this clause in the 
     case of a person other than a corporation.

[[Page S651]]

       ``(v) Other exceptions.--The following amounts includible 
     in income shall not be taken into account under clause 
     (i)(I):

       ``(I) Commissions.--Any remuneration payable on a 
     commission basis solely on account of income directly 
     generated by the individual performance of the individual to 
     whom such remuneration is payable.
       ``(II) Payments under existing contracts.--Any remuneration 
     payable under a written binding contract that was in effect 
     on February 4, 2010, and which was not modified in any 
     material respect before such remuneration is repaid. This 
     subclause shall not apply to bonus payments payable under 
     such a contract during a calendar year to the extent that the 
     aggregate amount of such bonus payments during such calendar 
     year exceeds $100,000.

       ``(vi) Self-employed individual treated as employee.--The 
     term `employee' includes, with respect to a calendar year, a 
     self-employed individual who is treated as an employee under 
     section 401(c) for the taxable year ending during such 
     calendar year, and the term `compensation' shall include 
     earned income of such individual with respect to such self-
     employment.
       ``(vii) Indexing of amount.--In the case of any calendar 
     year beginning after 2010, the dollar amount under clause 
     (i)(II) shall be increased by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year, determined by 
     substituting `calendar year 2009' for `calendar year 1992' in 
     subparagraph (B) thereof.

     If the amount of any increase under clause (i) is not a 
     multiple of $1,000, such increase shall be rounded to the 
     next lowest multiple of $1,000.
       ``(E) Extraordinary dividends and redemptions.--
       ``(i) In general.--The amount determined under this 
     subparagraph for any plan year is the sum of--

       ``(I) the aggregate amount of extraordinary dividends 
     declared during the plan year by the plan sponsor and 
     required to be reported under section 4043(c)(11) of the 
     Employee Retirement Income Security Act of 1974 , plus
       ``(II) if the plan sponsor redeems, in any 12-month period 
     ending during the plan year, an aggregate of 10 percent or 
     more of the total combined voting power of all classes of 
     stock entitled to vote, or an aggregate of 10 percent or more 
     of the total value of shares of all classes of stock, of the 
     plan sponsor, the aggregate fair market value of the stock so 
     redeemed.

       ``(ii) Only certain post-2009 dividends and redemptions 
     counted.--For purposes of clause (i)--

       ``(I) dividends shall be taken into account only if 
     declared after February 4, 2010, and
       ``(II) if clause (i)(II) otherwise applies for any plan 
     year (determined without regard to this subclause), only the 
     fair market value of redemptions occurring after February 4, 
     2010, shall be taken into account in determining the amount 
     under such clause for the plan year.

       ``(iii) Exception for intra-group dividends.--An 
     extraordinary dividend paid by one member of a controlled 
     group (as defined in section 412(d)(3)) to another member of 
     such group shall not be taken into account under clause 
     (i)(I).
       ``(F) Other definitions and rules.--For purposes of this 
     paragraph--
       ``(i) Bonus payment.--The term `bonus payment' means any 
     payment which is a payment for services rendered and which is 
     in addition to any amount payable to such individual for 
     services performed by such individual at a regular hourly, 
     daily, weekly, monthly, or similar periodic rate. Such term 
     does not include payments to an employee as commissions, 
     contributions to any qualified retirement plan (as defined in 
     section 4974(c)), welfare and fringe benefits, overtime pay, 
     or expense reimbursements. The Secretary may recharacterize a 
     payment that is a disguised bonus as a bonus payment for 
     purposes of this paragraph.
       ``(ii) Plan sponsor.--The term ` plan sponsor' includes any 
     member of the plan sponsor's controlled group (as defined in 
     section 412(d)(3)).
       ``(iii) Elections for multiple plans.--If a plan sponsor 
     makes elections under paragraph (2)(D) with respect to 2 or 
     more plans, the Secretary shall provide rules for the 
     application of this paragraph to such plans, including rules 
     for the ratable allocation of any installment acceleration 
     amount among such plans on the basis of each plan's relative 
     reduction in the plan's shortfall amortization installment 
     for the first plan year in the amortization period described 
     in subparagraph (A) (determined without regard to this 
     paragraph).
       ``(iv) Mergers and acquisitions.--The Secretary shall 
     prescribe rules for the application of paragraph (2)(D) and 
     this paragraph in any case where there is a merger or 
     acquisition involving a plan sponsor making the election 
     under paragraph (2)(D).''.
       (3) Conforming amendments.--Section 430 is amended--
       (A) in subsection (c)(1), by striking ``the shortfall 
     amortization bases for such plan year and each of the 6 
     preceding plan years'' and inserting ``any shortfall 
     amortization base which has not been fully amortized under 
     this subsection'', and
       (B) in subsection (j)(3), by adding at the end the 
     following:
       ``(F) Quarterly contributions not to include certain 
     increased contributions.--Subparagraph (D) shall be applied 
     without regard to any increase under subsection (c)(7).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2007.

     SEC. 802. APPLICATION OF EXTENDED AMORTIZATION PERIOD TO 
                   PLANS SUBJECT TO PRIOR LAW FUNDING RULES.

       (a) In General.--Title I of the Pension Protection Act of 
     2006 is amended by redesignating section 107 as section 108 
     and by inserting the following after section 106:

     ``SEC. 107. APPLICATION OF EXTENDED AMORTIZATION PERIODS TO 
                   PLANS WITH DELAYED EFFECTIVE DATE.

       ``(a) In General.--If the plan sponsor of a plan to which 
     section 104, 105, or 106 of this Act applies elects to have 
     this section apply for any eligible plan year (in this 
     section referred to as an `election year'), section 302 of 
     the Employee Retirement Income Security Act of 1974 and 
     section 412 of the Internal Revenue Code of 1986 (as in 
     effect before the amendments made by this subtitle and 
     subtitle B) shall apply to such year in the manner described 
     in subsection (b) or (c), whichever is specified in the 
     election. All references in this section to `such Act' or 
     `such Code' shall be to such Act or such Code as in effect 
     before the amendments made by this subtitle and subtitle B.
       ``(b) Application of 2 and 7 Rule.--In the case of an 
     election year to which this subsection applies--
       ``(1) 2-year lookback for determining deficit reduction 
     contributions for certain plans.--For purposes of applying 
     section 302(d)(9) of such Act and section 412(l)(9) of such 
     Code, the funded current liability percentage (as defined in 
     subparagraph (C) thereof) for such plan for such plan year 
     shall be such funded current liability percentage of such 
     plan for the second plan year preceding the first election 
     year of such plan.
       ``(2) Calculation of deficit reduction contribution.--For 
     purposes of applying section 302(d) of such Act and section 
     412(l) of such Code to a plan to which such sections apply 
     (after taking into account paragraph (1))--
       ``(A) in the case of the increased unfunded new liability 
     of the plan, the applicable percentage described in section 
     302(d)(4)(C) of such Act and section 412(l)(4)(C) of such 
     Code shall be the third segment rate described in sections 
     104(b), 105(b), and 106(b) of this Act, and
       ``(B) in the case of the excess of the unfunded new 
     liability over the increased unfunded new liability, such 
     applicable percentage shall be determined without regard to 
     this section.
       ``(c) Application of 15-Year Amortization.--In the case of 
     an election year to which this subsection applies, for 
     purposes of applying section 302(d) of such Act and section 
     412(l) of such Code--
       ``(1) in the case of the increased unfunded new liability 
     of the plan, the applicable percentage described in section 
     302(d)(4)(C) of such Act and section 412(l)(4)(C) of such 
     Code for any pre-effective date plan year beginning with or 
     after the first election year shall be the ratio of--
       ``(A) the annual installments payable in each year if the 
     increased unfunded new liability for such plan year were 
     amortized over 15 years, using an interest rate equal to the 
     third segment rate described in sections 104(b), 105(b), and 
     106(b) of this Act, to
       ``(B) the increased unfunded new liability for such plan 
     year, and
       ``(2) in the case of the excess of the unfunded new 
     liability over the increased unfunded new liability, such 
     applicable percentage shall be determined without regard to 
     this section.
       ``(d) Election.--
       ``(1) In general.--The plan sponsor of a plan may elect to 
     have this section apply to not more than 2 eligible plan 
     years with respect to the plan, except that in the case of a 
     plan to which section 106 of this Act applies, the plan 
     sponsor may only elect to have this section apply to 1 
     eligible plan year.
       ``(2) Amortization schedule.--Such election shall specify 
     whether the rules under subsection (b) or (c) shall apply to 
     an election year, except that if a plan sponsor elects to 
     have this section apply to 2 eligible plan years, the plan 
     sponsor must elect the same rule for both years.
       ``(3) Other rules.--Such election shall be made at such 
     time, and in such form and manner, as shall be prescribed by 
     the Secretary of the Treasury, and may be revoked only with 
     the consent of the Secretary of the Treasury.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Eligible plan year.--For purposes of this 
     subparagraph, the term `eligible plan year' means any plan 
     year beginning in 2008, 2009, 2010, or 2011, except that a 
     plan year beginning in 2008 shall only be treated as an 
     eligible plan year if the due date for the payment of the 
     minimum required contribution for such plan year occurs on or 
     after the date of the enactment of this clause.
       ``(2) Pre-effective date plan year.--The term `pre-
     effective date plan year' means, with respect to a plan, any 
     plan year prior to the first year in which the amendments 
     made by this subtitle and subtitle B apply to the plan.
       ``(3) Increased unfunded new liability.--The term 
     `increased unfunded new liability' means, with respect to a 
     year, the excess (if any) of the unfunded new liability over 
     the

[[Page S652]]

     amount of unfunded new liability determined as if the value 
     of the plan's assets determined under subsection 302(c)(2) of 
     such Act and section 412(c)(2) of such Code equaled the 
     product of the current liability of the plan for the year 
     multiplied by the funded current liability percentage (as 
     defined in section 302(d)(8)(B) of such Act and 412(l)(8)(B) 
     of such Code) of the plan for the second plan year preceding 
     the first election year of such plan.
       ``(4) Other definitions.--The terms `unfunded new 
     liability' and `current liability' shall have the meanings 
     set forth in section 302(d) of such Act and section 412(l) of 
     such Code.''.
       (b) Eligible Charity Plans.--Section 104 of the Pension 
     Protection Act of 2006 is amended--
       (1) by striking ``eligible cooperative plan'' wherever it 
     appears in subsections (a) and (b) and inserting ``eligible 
     cooperative plan or an eligible charity plan'', and
       (2) by adding at the end the following new subsection:
       ``(d) Eligible Charity Plan Defined.--For purposes of this 
     section, a plan shall be treated as an eligible charity plan 
     for a plan year if the plan is maintained by more than one 
     employer and 100 percent of the employers are described in 
     section 501(c)(3) of such Code.''.
       (c) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     take effect as if included in the Pension Protection Act of 
     2006.
       (2) Eligible charity plan.--The amendments made by 
     subsection (b) shall apply to plan years beginning after 
     December 31, 2007, except that a plan sponsor may elect to 
     apply such amendments to plan years beginning after December 
     31, 2008. Any such election shall be made at such time, and 
     in such form and manner, as shall be prescribed by the 
     Secretary of the Treasury, and may be revoked only with the 
     consent of the Secretary of the Treasury.

     SEC. 803. LOOKBACK FOR CERTAIN BENEFIT RESTRICTIONS.

       (a) In General.--
       (1) Amendment to erisa.--Section 206(g)(9) of the Employee 
     Retirement Income Security Act of 1974 is amended by adding 
     at the end the following:
       ``(D) Special rule for certain years.--Solely for purposes 
     of any applicable provision--
       ``(i) In general.--For plan years beginning on or after 
     October 1, 2008, and before October 1, 2010, the adjusted 
     funding target attainment percentage of a plan shall be the 
     greater of--

       ``(I) such percentage, as determined without regard to this 
     subparagraph, or
       ``(II) the adjusted funding target attainment percentage 
     for such plan for the plan year beginning after October 1, 
     2007, and before October 1, 2008, as determined under rules 
     prescribed by the Secretary of the Treasury.

       ``(ii) Special rule.--In the case of a plan for which the 
     valuation date is not the first day of the plan year--

       ``(I) clause (i) shall apply to plan years beginning after 
     December 31, 2007, and before January 1, 2010, and
       ``(II) clause (i)(II) shall apply based on the last plan 
     year beginning before November 1, 2007, as determined under 
     rules prescribed by the Secretary of the Treasury.

       ``(iii) Applicable provision.--For purposes of this 
     subparagraph, the term `applicable provision' means--

       ``(I) paragraph (3), but only for purposes of applying such 
     paragraph to a payment which, as determined under rules 
     prescribed by the Secretary of the Treasury, is a payment 
     under a social security leveling option which accelerates 
     payments under the plan before, and reduces payments after, a 
     participant starts receiving social security benefits in 
     order to provide substantially similar aggregate payments 
     both before and after such benefits are received, and
       ``(II) paragraph (4).''.

       (2) Amendment to internal revenue code of 1986.--Section 
     436(j) of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following:
       ``(3) Special rule for certain years.--Solely for purposes 
     of any applicable provision--
       ``(A) In general.--For plan years beginning on or after 
     October 1, 2008, and before October 1, 2010, the adjusted 
     funding target attainment percentage of a plan shall be the 
     greater of--
       ``(i) such percentage, as determined without regard to this 
     paragraph, or
       ``(ii) the adjusted funding target attainment percentage 
     for such plan for the plan year beginning after October 1, 
     2007, and before October 1, 2008, as determined under rules 
     prescribed by the Secretary.
       ``(B) Special rule.--In the case of a plan for which the 
     valuation date is not the first day of the plan year--
       ``(i) subparagraph (A) shall apply to plan years beginning 
     after December 31, 2007, and before January 1, 2010, and
       ``(ii) subparagraph (A)(ii) shall apply based on the last 
     plan year beginning before November 1, 2007, as determined 
     under rules prescribed by the Secretary.
       ``(C) Applicable provision.--For purposes of this 
     paragraph, the term `applicable provision' means--
       ``(i) subsection (d), but only for purposes of applying 
     such paragraph to a payment which, as determined under rules 
     prescribed by the Secretary, is a payment under a social 
     security leveling option which accelerates payments under the 
     plan before, and reduces payments after, a participant starts 
     receiving social security benefits in order to provide 
     substantially similar aggregate payments both before and 
     after such benefits are received, and
       ``(ii) subsection (e).''.
       (b) Interaction With Wrera Rule.--Section 203 of the 
     Worker, Retiree, and Employer Recovery Act of 2008 shall 
     apply to a plan for any plan year in lieu of the amendments 
     made by this section applying to sections 206(g)(4) of the 
     Employee Retirement Income Security Act of 1974 and 436(e) of 
     the Internal Revenue Code of 1986 only to the extent that 
     such section produces a higher adjusted funding target 
     attainment percentage for such plan for such year.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to plan years 
     beginning on or after October 1, 2008.
       (2) Special rule.--In the case of a plan for which the 
     valuation date is not the first day of the plan year, the 
     amendments made by this section shall apply to plan years 
     beginning after December 31, 2007.

                    Subtitle B--Multiemployer Plans

     SEC. 811. ADJUSTMENTS TO FUNDING STANDARD ACCOUNT RULES.

       (a) Adjustments.--
       (1) Amendment to erisa.--Section 304(b) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1084(b)) is 
     amended by adding at the end the following new paragraph:
       ``(8) Special relief rules.--Notwithstanding any other 
     provision of this subsection--
       ``(A) Amortization of net investment losses.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     treat the portion of its experience loss attributable to the 
     net investment losses (if any) incurred in either or both of 
     the first two plan years beginning after August 31, 2008, as 
     an item separate from other experience losses, to be 
     amortized in equal annual installments (until fully 
     amortized) over a period of 30 plan years.
       ``(ii) No extension allowed.--If this subparagraph applies 
     for any plan year, no extension of the amortization period 
     under clause (i) shall be allowed under subsection (d).
       ``(iii) Net investment losses.--For purposes of this 
     subparagraph--

       ``(I) In general.--Net investment losses shall be 
     determined in the manner prescribed by the Secretary of the 
     Treasury on the basis of the difference between actual and 
     expected returns (including any difference attributable to 
     any criminally fraudulent investment arrangement).
       ``(II) Criminally fraudulent investment arrangements.--The 
     determination as to whether an arrangement is a criminally 
     fraudulent investment arrangement shall be made under rules 
     substantially similar to the rules prescribed by the 
     Secretary of the Treasury for purposes of section 165 of the 
     Internal Revenue Code of 1986.

       ``(B) Expanded smoothing period.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     change its asset valuation method in a manner which--

       ``(I) spreads the difference between expected and actual 
     returns for either or both of the first 2 plan years 
     beginning after August 31, 2008, over a period of not more 
     than 10 years,
       ``(II) provides that for either or both of such 2 plan 
     years the value of plan assets at any time shall not be less 
     than 80 percent or greater than 130 percent of the fair 
     market value of such assets at such time, or
       ``(III) makes both changes described in subclauses (I) and 
     (II) to such method.

       ``(ii) Asset valuation methods.--If this subparagraph 
     applies for any plan year--

       ``(I) the Secretary of the Treasury shall not treat the 
     asset valuation method of the plan as unreasonable solely 
     because of the changes in such method described in clause 
     (i), and
       ``(II) such changes shall be deemed approved by such 
     Secretary under section 302(d)(1) and section 412(d)(1) of 
     such Code.

       ``(iii) Amortization of reduction in unfunded accrued 
     liability.--If this subparagraph and subparagraph (A) both 
     apply for any plan year, the plan shall treat any reduction 
     in unfunded accrued liability resulting from the application 
     of this subparagraph as a separate experience amortization 
     base, to be amortized in equal annual installments (until 
     fully amortized) over a period of 30 plan years rather than 
     the period such liability would otherwise be amortized over.
       ``(C) Solvency test.--The solvency test under this 
     paragraph is met only if the plan actuary certifies that the 
     plan is projected to have sufficient assets to timely pay 
     expected benefits and anticipated expenditures over the 
     amortization period, taking into account the changes in the 
     funding standard account under this paragraph.
       ``(D) Restriction on benefit increases.--If subparagraph 
     (A) or (B) apply to a multiemployer plan for any plan year, 
     then, in addition to any other applicable restrictions on 
     benefit increases, a plan amendment increasing benefits may 
     not go into effect during either of the 2 plan years 
     immediately following such plan year unless--
       ``(i) the plan actuary certifies that--

[[Page S653]]

       ``(I) any such increase is paid for out of additional 
     contributions not allocated to the plan immediately before 
     the application of this paragraph to the plan, and
       ``(II) the plan's funded percentage and projected credit 
     balances for such 2 plan years are reasonably expected to be 
     substantially the same as such percentage and balances would 
     have been if the benefit increase had not been adopted, or

       ``(ii) the amendment is required as a condition of 
     qualification under part I of subchapter D of chapter 1 of 
     the Internal Revenue Code of 1986 or to comply with other 
     applicable law.
       ``(E) Reporting.--A plan sponsor of a plan to which this 
     paragraph applies shall inform the Pension Benefit Guaranty 
     Corporation of such application in such form and manner as 
     the Director of the Pension Benefit Guaranty Corporation may 
     prescribe.''.
       (2) Amendment to internal revenue code of 1986.--Section 
     431(b) is amended by adding at the end the following new 
     paragraph:
       ``(8) Special relief rules.--Notwithstanding any other 
     provision of this subsection--
       ``(A) Amortization of net investment losses.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     treat the portion of its experience loss attributable to the 
     net investment losses (if any) incurred in either or both of 
     the first two plan years beginning after August 31, 2008, as 
     an item separate from other experience losses, to be 
     amortized in equal annual installments (until fully 
     amortized) over a period of 30 plan years.
       ``(ii) No extension allowed.--If this subparagraph applies 
     for any plan year, no extension of the amortization period 
     under clause (i) shall be allowed under subsection (d).
       ``(iii) Net investment losses.--For purposes of this 
     subparagraph--

       ``(I) In general.--Net investment losses shall be 
     determined in the manner prescribed by the Secretary on the 
     basis of the difference between actual and expected returns 
     (including any difference attributable to any criminally 
     fraudulent investment arrangement).
       ``(II) Criminally fraudulent investment arrangements.--The 
     determination as to whether an arrangement is a criminally 
     fraudulent investment arrangement shall be made under rules 
     substantially similar to the rules prescribed by the 
     Secretary for purposes of section 165.

       ``(B) Expanded smoothing period.--
       ``(i) In general.--A multiemployer plan with respect to 
     which the solvency test under subparagraph (C) is met may 
     change its asset valuation method in a manner which--

       ``(I) spreads the difference between expected and actual 
     returns for either or both of the first 2 plan years 
     beginning after August 31, 2008, over a period of not more 
     than 10 years,
       ``(II) provides that for either or both of such 2 plan 
     years the value of plan assets at any time shall not be less 
     than 80 percent or greater than 130 percent of the fair 
     market value of such assets at such time, or
       ``(III) makes both changes described in subclauses (I) and 
     (II) to such method.

       ``(ii) Asset valuation methods.--If this subparagraph 
     applies for any plan year--

       ``(I) the Secretary shall not treat the asset valuation 
     method of the plan as unreasonable solely because of the 
     changes in such method described in clause (i), and
       ``(II) such changes shall be deemed approved by the 
     Secretary under section 302(d)(1) of the Employee Retirement 
     Income Security Act of 1974 and section 412(d)(1).

       ``(iii) Amortization of reduction in unfunded accrued 
     liability.--If this subparagraph and subparagraph (A) both 
     apply for any plan year, the plan shall treat any reduction 
     in unfunded accrued liability resulting from the application 
     of this subparagraph as a separate experience amortization 
     base, to be amortized in equal annual installments (until 
     fully amortized) over a period of 30 plan years rather than 
     the period such liability would otherwise be amortized over.
       ``(C) Solvency test.--The solvency test under this 
     paragraph is met only if the plan actuary certifies that the 
     plan is projected to have sufficient assets to timely pay 
     expected benefits and anticipated expenditures over the 
     amortization period, taking into account the changes in the 
     funding standard account under this paragraph.
       ``(D) Restriction on benefit increases.--If subparagraph 
     (A) or (B) apply to a multiemployer plan for any plan year, 
     then, in addition to any other applicable restrictions on 
     benefit increases, a plan amendment increasing benefits may 
     not go into effect during either of the 2 plan years 
     immediately following such plan year unless--
       ``(i) the plan actuary certifies that--

       ``(I) any such increase is paid for out of additional 
     contributions not allocated to the plan immediately before 
     the application of this paragraph to the plan, and
       ``(II) the plan's funded percentage and projected credit 
     balances for such 2 plan years are reasonably expected to be 
     substantially the same as such percentage and balances would 
     have been if the benefit increase had not been adopted, or

       ``(ii) the amendment is required as a condition of 
     qualification under part I of subchapter D or to comply with 
     other applicable law.
       ``(E) Reporting.--A plan sponsor of a plan to which this 
     paragraph applies shall inform the Pension Benefit Guaranty 
     Corporation of such application in such form and manner as 
     the Director of the Pension Benefit Guaranty Corporation may 
     prescribe.''.
       (b) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     take effect as of the first day of the first plan year 
     beginning after August 31, 2008, except that any election a 
     plan makes pursuant to this section that affects the plan's 
     funding standard account for the first plan year beginning 
     after August 31, 2008, 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 such plan year.
       (2) Restrictions on benefit increases.--Notwithstanding 
     paragraph (1), the restrictions on plan amendments increasing 
     benefits in sections 304(b)(8)(D) of such Act and 
     431(b)(8)(D) of such Code, as added by this section, shall 
     take effect on the date of enactment of this Act.

                TITLE IX--SATELLITE TELEVISION EXTENSION

     SEC. 901. SHORT TITLE.

       This title may be cited as the ``Satellite Television 
     Extension and Localism Act of 2010''.

                     Subtitle A--Statutory Licenses

     SEC. 901. REFERENCE.

       Except as otherwise provided, whenever in this subtitle an 
     amendment is made to a section or other provision, the 
     reference shall be considered to be made to such section or 
     provision of title 17, United States Code.

     SEC. 902. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE 
                   CARRIERS.

       (a) Heading Renamed.--
       (1) In general.--The heading of section 119 is amended by 
     striking ``superstations and network stations for private 
     home viewing'' and inserting ``distant television programming 
     by satellite''.
       (2) Table of contents.--The table of contents for chapter 1 
     is amended by striking the item relating to section 119 and 
     inserting the following:

``119. Limitations on exclusive rights: Secondary transmissions of 
              distant television programming by satellite.''.
       (b) Unserved Household Defined.--
       (1) In general.--Section 119(d)(10) is amended--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) cannot receive, through the use of an antenna, an 
     over-the-air signal containing the primary stream, or, on or 
     after the qualifying date, the multicast stream, originating 
     in that household's local market and affiliated with that 
     network of--
       ``(i) if the signal originates as an analog signal, Grade B 
     intensity as defined by the Federal Communications Commission 
     in section 73.683(a) of title 47, Code of Federal 
     Regulations, as in effect on January 1, 1999; or
       ``(ii) if the signal originates as a digital signal, 
     intensity defined in the values for the digital television 
     noise-limited service contour, as defined in regulations 
     issued by the Federal Communications Commission (section 
     73.622(e) of title 47, Code of Federal Regulations), as such 
     regulations may be amended from time to time;'';
       (B) in subparagraph (B)--
       (i) by striking ``subsection (a)(14)'' and inserting 
     ``subsection (a)(13),''; and
       (ii) by striking ``Satellite Home Viewer Extension and 
     Reauthorization Act of 2004'' and inserting ``Satellite 
     Television Extension and Localism Act of 2010''; and
       (C) in subparagraph (D), by striking ``(a)(12)'' and 
     inserting ``(a)(11)''.
       (2) Qualifying date defined.--Section 119(d) is amended by 
     adding at the end the following:
       ``(14) Qualifying date.--The term `qualifying date', for 
     purposes of paragraph (10)(A), means--
       ``(A) July 1, 2010, for multicast streams that exist on 
     December 31, 2009; and
       ``(B) January 1, 2011, for all other multicast streams.''.
       (c) Filing Fee.--Section 119(b)(1) is amended--
       (1) in subparagraph (A), by striking ``and'' after the 
     semicolon at the end;
       (2) in subparagraph (B), by striking the period and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(C) a filing fee, as determined by the Register of 
     Copyrights pursuant to section 708(a).''.
       (d) Deposit of Statements and Fees; Verification 
     Procedures.--Section 119(b) is amended--
       (1) by amending the subsection heading to read as follows: 
     ``(b) Deposit of Statements and Fees; Verification 
     Procedures.--'';
       (2) in paragraph (1), by striking subparagraph (B) and 
     inserting the following:
       ``(B) a royalty fee payable to copyright owners pursuant to 
     paragraph (4) for that 6-month period, computed by 
     multiplying the total number of subscribers receiving each 
     secondary transmission of a primary stream or multicast 
     stream of each non-network station or network station during 
     each calendar year month by the appropriate rate in effect 
     under this subsection; and'';
       (3) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (3), (4), and (5), respectively;
       (4) by inserting after paragraph (1) the following:

[[Page S654]]

       ``(2) Verification of accounts and fee payments.--The 
     Register of Copyrights shall issue regulations to permit 
     interested parties to verify and audit the statements of 
     account and royalty fees submitted by satellite carriers 
     under this subsection.'';
       (5) in paragraph (3), as redesignated, in the first 
     sentence--
       (A) by inserting ``(including the filing fee specified in 
     paragraph (1)(C))'' after ``shall receive all fees''; and
       (B) by striking ``paragraph (4)'' and inserting ``paragraph 
     (5)'';
       (6) in paragraph (4), as redesignated--
       (A) by striking ``paragraph (2)'' and inserting ``paragraph 
     (3)''; and
       (B) by striking ``paragraph (4)'' each place it appears and 
     inserting ``paragraph (5)''; and
       (7) in paragraph (5), as redesignated, by striking 
     ``paragraph (2)'' and inserting ``paragraph (3)''.
       (e) Adjustment of Royalty Fees.--Section 119(c) is amended 
     as follows:
       (1) Paragraph (1) is amended--
       (A) in the heading for such paragraph, by striking 
     ``analog'';
       (B) in subparagraph (A)--
       (i) by striking ``primary analog transmissions'' and 
     inserting ``primary transmissions''; and
       (ii) by striking ``July 1, 2004'' and inserting ``July 1, 
     2009'';
       (C) in subparagraph (B)--
       (i) by striking ``January 2, 2005, the Librarian of 
     Congress'' and inserting ``March 1, 2010, the Copyright 
     Royalty Judges''; and
       (ii) by striking ``primary analog transmission'' and 
     inserting ``primary transmissions'';
       (D) in subparagraph (C), by striking ``Librarian of 
     Congress'' and inserting ``Copyright Royalty Judges'';
       (E) in subparagraph (D)--
       (i) in clause (i)--

       (I) by striking ``(i) Voluntary agreements'' and inserting 
     the following:

       ``(i) Voluntary agreements; filing.--Voluntary 
     agreements''; and

       (II) by striking ``that a parties'' and inserting ``that 
     are parties''; and

       (ii) in clause (ii)--

       (I) by striking ``(ii)(I) Within'' and inserting the 
     following:

       ``(ii) Procedure for adoption of fees.--

       ``(I) Publication of notice.--Within'';
       (II) in subclause (I), by striking ``an arbitration 
     proceeding pursuant to subparagraph (E)'' and inserting ``a 
     proceeding under subparagraph (F)'';
       (III) in subclause (II), by striking ``(II) Upon receiving 
     a request under subclause (I), the Librarian of Congress'' 
     and inserting the following:
       ``(II) Public notice of fees.--Upon receiving a request 
     under subclause (I), the Copyright Royalty Judges''; and
       (IV) in subclause (III)--

       (aa) by striking ``(III) The Librarian'' and inserting the 
     following:

       ``(III) Adoption of fees.--The Copyright Royalty Judges'';

       (bb) by striking ``an arbitration proceeding'' and 
     inserting ``the proceeding under subparagraph (F)''; and
       (cc) by striking ``the arbitration proceeding'' and 
     inserting ``that proceeding'';
       (F) in subparagraph (E)--
       (i) by striking ``Copyright Office'' and inserting 
     ``Copyright Royalty Judges''; and
       (ii) by striking ``February 28, 2010'' and inserting 
     ``December 31, 2014''; and
       (G) in subparagraph (F)--
       (i) in the heading, by striking ``compulsory arbitration'' 
     and inserting `` copyright royalty judges proceeding'';
       (ii) in clause (i)--

       (I) in the heading, by striking ``proceedings'' and 
     inserting ``the proceeding'';
       (II) in the matter preceding subclause (I)--

       (aa) by striking ``May 1, 2005, the Librarian of Congress'' 
     and inserting ``May 3, 2010, the Copyright Royalty Judges'';
       (bb) by striking ``arbitration proceedings'' and inserting 
     ``a proceeding'';
       (cc) by striking ``fee to be paid'' and inserting ``fees to 
     be paid'';
       (dd) by striking ``primary analog transmission'' and 
     inserting ``the primary transmissions''; and
       (ee) by striking ``distributors'' and inserting 
     ``distributors--'';

       (III) in subclause (II)--

       (aa) by striking ``Librarian of Congress'' and inserting 
     ``Copyright Royalty Judges''; and
       (bb) by striking ``arbitration''; and

       (IV) by amending the last sentence to read as follows: 
     ``Such proceeding shall be conducted under chapter 8.'';

       (iii) in clause (ii), by amending the matter preceding 
     subclause (I) to read as follows:
       ``(ii) Establishment of royalty fees.--In determining 
     royalty fees under this subparagraph, the Copyright Royalty 
     Judges shall establish fees for the secondary transmissions 
     of the primary transmissions of network stations and non-
     network stations that most clearly represent the fair market 
     value of secondary transmissions, except that the Copyright 
     Royalty Judges shall adjust royalty fees to account for the 
     obligations of the parties under any applicable voluntary 
     agreement filed with the Copyright Royalty Judges in 
     accordance with subparagraph (D). In determining the fair 
     market value, the Judges shall base their decision on 
     economic, competitive, and programming information presented 
     by the parties, including--'';
       (iv) by amending clause (iii) to read as follows:
       ``(iii) Effective date for decision of copyright royalty 
     judges.--The obligation to pay the royalty fees established 
     under a determination that is made by the Copyright Royalty 
     Judges in a proceeding under this paragraph shall be 
     effective as of January 1, 2010.''; and
       (v) in clause (iv)--

       (I) in the heading, by striking ``fee'' and inserting 
     ``fees''; and
       (II) by striking ``fee referred to in (iii)'' and inserting 
     ``fees referred to in clause (iii)''.

       (2) Paragraph (2) is amended to read as follows:
       ``(2) Annual royalty fee adjustment.--Effective January 1 
     of each year, the royalty fee payable under subsection 
     (b)(1)(B) for the secondary transmission of the primary 
     transmissions of network stations and non-network stations 
     shall be adjusted by the Copyright Royalty Judges to reflect 
     any changes occurring in the cost of living as determined by 
     the most recent Consumer Price Index (for all consumers and 
     for all items) published by the Secretary of Labor before 
     December 1 of the preceding year. Notification of the 
     adjusted fees shall be published in the Federal Register at 
     least 25 days before January 1.''.
       (f) Definitions.--
       (1) Subscriber.--Section 119(d)(8) is amended to read as 
     follows:
       ``(8) Subscriber; subscribe.--
       ``(A) Subscriber.--The term `subscriber' means a person or 
     entity that receives a secondary transmission service from a 
     satellite carrier and pays a fee for the service, directly or 
     indirectly, to the satellite carrier or to a distributor.
       ``(B) Subscribe.--The term `subscribe' means to elect to 
     become a subscriber.''.
       (2) Local market.--Section 119(d)(11) is amended to read as 
     follows:
       ``(11) Local market.--The term `local market' has the 
     meaning given such term under section 122(j).''.
       (3) Low power television station.--Section 119(d) is 
     amended by striking paragraph (12) and redesignating 
     paragraphs (13) and (14) as paragraphs (12) and (13), 
     respectively.
       (4) Multicast stream.--Section 119(d), as amended by 
     paragraph (3), is further amended by adding at the end the 
     following new paragraph:
       ``(14) Multicast stream.--The term `multicast stream' means 
     a digital stream containing programming and program-related 
     material affiliated with a television network, other than the 
     primary stream.''.
       (5) Primary stream.--Section 119(d), as amended by 
     paragraph (4), is further amended by adding at the end the 
     following new paragraph:
       ``(15) Primary stream.--The term `primary stream' means--
       ``(A) the single digital stream of programming as to which 
     a television broadcast station has the right to mandatory 
     carriage with a satellite carrier under the rules of the 
     Federal Communications Commission in effect on July 1, 2009; 
     or
       ``(B) if there is no stream described in subparagraph (A), 
     then either--
       ``(i) the single digital stream of programming associated 
     with the network last transmitted by the station as an analog 
     signal; or
       ``(ii) if there is no stream described in clause (i), then 
     the single digital stream of programming affiliated with the 
     network that, as of July 1, 2009, had been offered by the 
     television broadcast station for the longest period of 
     time.''.
       (6) Clerical amendment.--Section 119(d) is amended in 
     paragraphs (1), (2), and (5) by striking ``which'' each place 
     it appears and inserting ``that''.
       (g) Superstation Redesignated as Non-Network Station.--
     Section 119 is amended--
       (1) by striking ``superstation'' each place it appears in a 
     heading and each place it appears in text and inserting 
     ``non-network station''; and
       (2) by striking ``superstations'' each place it appears in 
     a heading and each place it appears in text and inserting 
     ``non-network stations''.
       (h) Removal of Certain Provisions.--
       (1) Removal of provisions.--Section 119(a) is amended--
       (A) in paragraph (2), by striking subparagraph (C) and 
     redesignating subparagraph (D) as subparagraph (C);
       (B) by striking paragraph (3) and redesignating paragraphs 
     (4) through (14) as paragraphs (3) through (13), 
     respectively; and
       (C) by striking paragraph (15) and redesignating paragraph 
     (16) as paragraph (14).
       (2) Conforming amendments.--Section 119 is amended--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking ``(5), (6), and (8)'' and 
     inserting ``(4), (5), and (7)'';
       (ii) in paragraph (2)--

       (I) in subparagraph (A), by striking ``subparagraphs (B) 
     and (C) of this paragraph and paragraphs (5), (6), (7), and 
     (8)'' and inserting ``subparagraph (B) of this paragraph and 
     paragraphs (4), (5), (6), and (7)'';
       (II) in subparagraph (B)(i), by striking the second 
     sentence; and
       (III) in subparagraph (C) (as redesignated), by striking 
     clauses (i) and (ii) and inserting the following:

       ``(i) Initial lists.--A satellite carrier that makes 
     secondary transmissions of a primary transmission made by a 
     network station pursuant to subparagraph (A) shall, not later 
     than 90 days after commencing such secondary transmissions, 
     submit to the network that owns or is affiliated with the 
     network

[[Page S655]]

     station a list identifying (by name and address, including 
     street or rural route number, city, State, and 9-digit zip 
     code) all subscribers to which the satellite carrier makes 
     secondary transmissions of that primary transmission to 
     subscribers in unserved households.
       ``(ii) Monthly lists.--After the submission of the initial 
     lists under clause (i), the satellite carrier shall, not 
     later than the 15th of each month, submit to the network a 
     list, aggregated by designated market area, identifying (by 
     name and address, including street or rural route number, 
     city, State, and 9-digit zip code) any persons who have been 
     added or dropped as subscribers under clause (i) since the 
     last submission under this subparagraph.''; and
       (iii) in subparagraph (E) of paragraph (3) (as 
     redesignated)--

       (I) by striking ``under paragraph (3) or''; and
       (II) by striking ``paragraph (12)'' and inserting 
     ``paragraph (11)''; and

       (B) in subsection (b)(1), by striking the final sentence.
       (i) Modifications to Provisions for Secondary Transmissions 
     by Satellite Carriers.--
       (1) Predictive model.--Section 119(a)(2)(B)(ii) is amended 
     by adding at the end the following:

       ``(III) Accurate predictive model with respect to digital 
     signals.--Notwithstanding subclause (I), in determining 
     presumptively whether a person resides in an unserved 
     household under subsection (d)(10)(A) with respect to digital 
     signals, a court shall rely on a predictive model set forth 
     by the Federal Communications Commission pursuant to a 
     rulemaking as provided in section 339(c)(3) of the 
     Communications Act of 1934 (47 U.S.C. 339(c)(3)), as that 
     model may be amended by the Commission over time under such 
     section to increase the accuracy of that model. Until such 
     time as the Commission sets forth such model, a court shall 
     rely on the predictive model as recommended by the Commission 
     with respect to digital signals in its Report to Congress in 
     ET Docket No. 05-182, FCC 05-199 (released December 9, 
     2005).''.

       (2) Modifications to statutory license where 
     retransmissions into local market available.--Section 
     119(a)(3) (as redesignated) is amended--
       (A) by striking ``analog'' each place it appears in a 
     heading and text;
       (B) by striking subparagraphs (B), (C), and (D), and 
     inserting the following:
       ``(B) Rules for lawful subscribers as of date of enactment 
     of 2009 act.--In the case of a subscriber of a satellite 
     carrier who, on the day before the date of the enactment of 
     the Satellite Television Extension and Localism Act of 2010, 
     was lawfully receiving the secondary transmission of the 
     primary transmission of a network station under the statutory 
     license under paragraph (2) (in this subparagraph referred to 
     as the `distant signal'), other than subscribers to whom 
     subparagraph (A) applies, the statutory license under 
     paragraph (2) shall apply to secondary transmissions by that 
     satellite carrier to that subscriber of the distant signal of 
     a station affiliated with the same television network, and 
     the subscriber's household shall continue to be considered to 
     be an unserved household with respect to such network, until 
     such time as the subscriber elects to terminate such 
     secondary transmissions, whether or not the subscriber elects 
     to subscribe to receive the secondary transmission of the 
     primary transmission of a local network station affiliated 
     with the same network pursuant to the statutory license under 
     section 122.
       ``(C) Future applicability.--
       ``(i) When local signal available at time of 
     subscription.--The statutory license under paragraph (2) 
     shall not apply to the secondary transmission by a satellite 
     carrier of the primary transmission of a network station to a 
     person who is not a subscriber lawfully receiving such 
     secondary transmission as of the date of the enactment of the 
     Satellite Television Extension and Localism Act of 2010 and, 
     at the time such person seeks to subscribe to receive such 
     secondary transmission, resides in a local market where the 
     satellite carrier makes available to that person the 
     secondary transmission of the primary transmission of a local 
     network station affiliated with the same network pursuant to 
     the statutory license under section 122.
       ``(ii) When local signal available after subscription.--In 
     the case of a subscriber who lawfully subscribes to and 
     receives the secondary transmission by a satellite carrier of 
     the primary transmission of a network station under the 
     statutory license under paragraph (2) (in this clause 
     referred to as the `distant signal') on or after the date of 
     the enactment of the Satellite Television Extension and 
     Localism Act of 2010, the statutory license under paragraph 
     (2) shall apply to secondary transmissions by that satellite 
     carrier to that subscriber of the distant signal of a station 
     affiliated with the same television network, and the 
     subscriber's household shall continue to be considered to be 
     an unserved household with respect to such network, until 
     such time as the subscriber elects to terminate such 
     secondary transmissions, but only if such subscriber 
     subscribes to the secondary transmission of the primary 
     transmission of a local network station affiliated with the 
     same network within 60 days after the satellite carrier makes 
     available to the subscriber such secondary transmission of 
     the primary transmission of such local network station.'';
       (C) by redesignating subparagraphs (E), (F), and (G) as 
     subparagraphs (D), (E), and (F), respectively;
       (D) in subparagraph (E) (as redesignated), by striking 
     ``(C) or (D)'' and inserting ``(B) or (C)''; and
       (E) in subparagraph (F) (as redesignated), by inserting 
     ``9-digit'' before ``zip code''.
       (3) Statutory damages for territorial restrictions.--
     Section 119(a)(6) (as redesignated) is amended--
       (A) in subparagraph (A)(ii), by striking ``$5'' and 
     inserting ``$250'';
       (B) in subparagraph (B)--
       (i) in clause (i), by striking ``$250,000 for each 6-month 
     period'' and inserting ``$2,500,000 for each 3-month 
     period''; and
       (ii) in clause (ii), by striking ``$250,000'' and inserting 
     ``$2,500,000''; and
       (C) by adding at the end the following flush sentences:
     ``The court shall direct one half of any statutory damages 
     ordered under clause (i) to be deposited with the Register of 
     Copyrights for distribution to copyright owners pursuant to 
     subsection (b). The Copyright Royalty Judges shall issue 
     regulations establishing procedures for distributing such 
     funds, on a proportional basis, to copyright owners whose 
     works were included in the secondary transmissions that were 
     the subject of the statutory damages.''.
       (4) Technical amendment.--Section 119(a)(4) (as 
     redesignated) is amended by striking ``and 509''.
       (5) Clerical amendment.--Section 119(a)(2)(B)(iii)(II) is 
     amended by striking ``In this clause'' and inserting ``In 
     this clause,''.
       (j) Moratorium Extension.--Section 119(e) is amended by 
     striking ``February 28, 2010'' and inserting ``December 31, 
     2014''.
       (k) Clerical Amendments.--Section 119 is amended--
       (1) by striking ``of the Code of Federal Regulations'' each 
     place it appears and inserting ``, Code of Federal 
     Regulations''; and
       (2) in subsection (d)(6), by striking ``or the Direct'' and 
     inserting ``, or the Direct''.

     SEC. 903. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE 
                   CARRIERS IN LOCAL MARKETS.

       (a) Heading Renamed.--
       (1) In general.--The heading of section 122 is amended by 
     striking ``by satellite carriers within local markets'' and 
     inserting ``of local television programming by satellite''.
       (2) Table of contents.--The table of contents for chapter 1 
     is amended by striking the item relating to section 122 and 
     inserting the following:

``122. Limitations on exclusive rights: Secondary transmissions of 
              local television programming by satellite.''.
       (b) Statutory License.--Section 122(a) is amended to read 
     as follows:
       ``(a) Secondary Transmissions Into Local Markets.--
       ``(1) Secondary transmissions of television broadcast 
     stations within a local market.--A secondary transmission of 
     a performance or display of a work embodied in a primary 
     transmission of a television broadcast station into the 
     station's local market shall be subject to statutory 
     licensing under this section if--
       ``(A) the secondary transmission is made by a satellite 
     carrier to the public;
       ``(B) with regard to secondary transmissions, the satellite 
     carrier is in compliance with the rules, regulations, or 
     authorizations of the Federal Communications Commission 
     governing the carriage of television broadcast station 
     signals; and
       ``(C) the satellite carrier makes a direct or indirect 
     charge for the secondary transmission to--
       ``(i) each subscriber receiving the secondary transmission; 
     or
       ``(ii) a distributor that has contracted with the satellite 
     carrier for direct or indirect delivery of the secondary 
     transmission to the public.
       ``(2) Significantly viewed stations.--
       ``(A) In general.--A secondary transmission of a 
     performance or display of a work embodied in a primary 
     transmission of a television broadcast station to subscribers 
     who receive secondary transmissions of primary transmissions 
     under paragraph (1) shall be subject to statutory licensing 
     under this paragraph if the secondary transmission is of the 
     primary transmission of a network station or a non-network 
     station to a subscriber who resides outside the station's 
     local market but within a community in which the signal has 
     been determined by the Federal Communications Commission to 
     be significantly viewed in such community, pursuant to the 
     rules, regulations, and authorizations of the Federal 
     Communications Commission in effect on April 15, 1976, 
     applicable to determining with respect to a cable system 
     whether signals are significantly viewed in a community.
       ``(B) Waiver.--A subscriber who is denied the secondary 
     transmission of the primary transmission of a network station 
     or a non-network station under subparagraph (A) may request a 
     waiver from such denial by submitting a request, through the 
     subscriber's satellite carrier, to the network station or 
     non-network station in the local market affiliated with the 
     same network or non-network where the subscriber is located. 
     The network station or non-network station shall accept or 
     reject the subscriber's request for a waiver within 30 days 
     after receipt of the request. If the network station or non-
     network station fails to accept or reject the subscriber's

[[Page S656]]

     request for a waiver within that 30-day period, that network 
     station or non-network station shall be deemed to agree to 
     the waiver request.
       ``(3) Secondary transmission of low power programming.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), a 
     secondary transmission of a performance or display of a work 
     embodied in a primary transmission of a television broadcast 
     station to subscribers who receive secondary transmissions of 
     primary transmissions under paragraph (1) shall be subject to 
     statutory licensing under this paragraph if the secondary 
     transmission is of the primary transmission of a television 
     broadcast station that is licensed as a low power television 
     station, to a subscriber who resides within the same 
     designated market area as the station that originates the 
     transmission.
       ``(B) No applicability to repeaters and translators.--
     Secondary transmissions provided for in subparagraph (A) 
     shall not apply to any low power television station that 
     retransmits the programs and signals of another television 
     station for more than 2 hours each day.
       ``(C) No impact on other secondary transmissions 
     obligations.--A satellite carrier that makes secondary 
     transmissions of a primary transmission of a low power 
     television station under a statutory license provided under 
     this section is not required, by reason of such secondary 
     transmissions, to make any other secondary transmissions.
       ``(4) Special exceptions.--A secondary transmission of a 
     performance or display of a work embodied in a primary 
     transmission of a television broadcast station to subscribers 
     who receive secondary transmissions of primary transmissions 
     under paragraph (1) shall, if the secondary transmission is 
     made by a satellite carrier that complies with the 
     requirements of paragraph (1), be subject to statutory 
     licensing under this paragraph as follows:
       ``(A) States with single full-power network station.--In a 
     State in which there is licensed by the Federal 
     Communications Commission a single full-power station that 
     was a network station on January 1, 1995, the statutory 
     license provided for in this paragraph shall apply to the 
     secondary transmission by a satellite carrier of the primary 
     transmission of that station to any subscriber in a community 
     that is located within that State and that is not within the 
     first 50 television markets as listed in the regulations of 
     the Commission as in effect on such date (47 C.F.R. 76.51).
       ``(B) States with all network stations and non-network 
     stations in same local market.--In a State in which all 
     network stations and non-network stations licensed by the 
     Federal Communications Commission within that State as of 
     January 1, 1995, are assigned to the same local market and 
     that local market does not encompass all counties of that 
     State, the statutory license provided under this paragraph 
     shall apply to the secondary transmission by a satellite 
     carrier of the primary transmissions of such station to all 
     subscribers in the State who reside in a local market that is 
     within the first 50 major television markets as listed in the 
     regulations of the Commission as in effect on such date 
     (section 76.51 of title 47, Code of Federal Regulations).
       ``(C) Additional stations.--In the case of that State in 
     which are located 4 counties that--
       ``(i) on January 1, 2004, were in local markets principally 
     comprised of counties in another State, and
       ``(ii) had a combined total of 41,340 television 
     households, according to the U.S. Television Household 
     Estimates by Nielsen Media Research for 2004,

     the statutory license provided under this paragraph shall 
     apply to secondary transmissions by a satellite carrier to 
     subscribers in any such county of the primary transmissions 
     of any network station located in that State, if the 
     satellite carrier was making such secondary transmissions to 
     any subscribers in that county on January 1, 2004.
       ``(D) Certain additional stations.--If 2 adjacent counties 
     in a single State are in a local market comprised principally 
     of counties located in another State, the statutory license 
     provided for in this paragraph shall apply to the secondary 
     transmission by a satellite carrier to subscribers in those 2 
     counties of the primary transmissions of any network station 
     located in the capital of the State in which such 2 counties 
     are located, if--
       ``(i) the 2 counties are located in a local market that is 
     in the top 100 markets for the year 2003 according to Nielsen 
     Media Research; and
       ``(ii) the total number of television households in the 2 
     counties combined did not exceed 10,000 for the year 2003 
     according to Nielsen Media Research.
       ``(E) Networks of noncommercial educational broadcast 
     stations.--In the case of a system of three or more 
     noncommercial educational broadcast stations licensed to a 
     single State, public agency, or political, educational, or 
     special purpose subdivision of a State, the statutory license 
     provided for in this paragraph shall apply to the secondary 
     transmission of the primary transmission of such system to 
     any subscriber in any county or county equivalent within such 
     State, if such subscriber is located in a designated market 
     area that is not otherwise eligible to receive the secondary 
     transmission of the primary transmission of a noncommercial 
     educational broadcast station located within the State 
     pursuant to paragraph (1).
       ``(5) Applicability of royalty rates and procedures.--The 
     royalty rates and procedures under section 119(b) shall apply 
     to the secondary transmissions to which the statutory license 
     under paragraph (4) applies.''.
       (c) Reporting Requirements.--Section 122(b) is amended--
       (1) in paragraph (1), by striking ``station a list'' and 
     all that follows through the end and inserting the following: 
     ``station--
       ``(A) a list identifying (by name in alphabetical order and 
     street address, including county and 9-digit zip code) all 
     subscribers to which the satellite carrier makes secondary 
     transmissions of that primary transmission under subsection 
     (a); and
       ``(B) a separate list, aggregated by designated market area 
     (by name and address, including street or rural route number, 
     city, State, and 9-digit zip code), which shall indicate 
     those subscribers being served pursuant to paragraph (2) of 
     subsection (a).''; and
       (2) in paragraph (2), by striking ``network a list'' and 
     all that follows through the end and inserting the following: 
     ``network--
       ``(A) a list identifying (by name in alphabetical order and 
     street address, including county and 9-digit zip code) any 
     subscribers who have been added or dropped as subscribers 
     since the last submission under this subsection; and
       ``(B) a separate list, aggregated by designated market area 
     (by name and street address, including street or rural route 
     number, city, State, and 9-digit zip code), identifying those 
     subscribers whose service pursuant to paragraph (2) of 
     subsection (a) has been added or dropped since the last 
     submission under this subsection.''.
       (d) No Royalty Fee for Certain Secondary Transmissions.--
     Section 122(c) is amended--
       (1) in the heading, by inserting ``for Certain Secondary 
     Transmissions'' after ``Required''; and
       (2) by striking ``subsection (a)'' and inserting 
     ``paragraphs (1), (2), and (3) of subsection (a)''.
       (e)  Violations for Territorial Restrictions.--
       (1) Modification to statutory damages.--Section 122(f) is 
     amended--
       (A) in paragraph (1)(B), by striking ``$5'' and inserting 
     ``$250''; and
       (B) in paragraph (2), by striking ``$250,000'' each place 
     it appears and inserting ``$2,500,000''.
       (2) Conforming amendments for additional stations.--Section 
     122 is amended--
       (A) in subsection (f), by striking ``section 119 or'' each 
     place it appears and inserting the following: ``section 119, 
     subject to statutory licensing by reason of paragraph (2)(A), 
     (3), or (4) of subsection (a), or subject to''; and
       (B) in subsection (g), by striking ``section 119 or'' and 
     inserting the following: ``section 119, paragraph (2)(A), 
     (3), or (4) of subsection (a), or''.
       (f) Definitions.--Section 122(j) is amended--
       (1) in paragraph (1), by striking ``which contracts'' and 
     inserting ``that contracts'';
       (2) by redesignating paragraphs (4) and (5) as paragraphs 
     (6) and (7), respectively;
       (3) in paragraph (3)--
       (A) by redesignating such paragraph as paragraph (4);
       (B) in the heading of such paragraph, by inserting ``non-
     network station;'' after ``Network station;''; and
       (C) by inserting `` `non-network station','' after `` 
     `network station','';
       (4) by inserting after paragraph (2) the following:
       ``(3) Low power television station.--The term `low power 
     television station' means a low power TV station as defined 
     in section 74.701(f) of title 47, Code of Federal 
     Regulations, as in effect on June 1, 2004. For purposes of 
     this paragraph, the term `low power television station' 
     includes a low power television station that has been 
     accorded primary status as a Class A television licensee 
     under section 73.6001(a) of title 47, Code of Federal 
     Regulations.'';
       (5) by inserting after paragraph (4) (as redesignated) the 
     following:
       ``(5) Noncommercial educational broadcast station.--The 
     term `noncommercial educational broadcast station' means a 
     television broadcast station that is a noncommercial 
     educational broadcast station as defined in section 397 of 
     the Communications Act of 1934, as in effect on the date of 
     the enactment of the Satellite Television Extension and 
     Localism Act of 2010.''; and
       (6) by amending paragraph (6) (as redesignated) to read as 
     follows:
       ``(6) Subscriber.--The term `subscriber' means a person or 
     entity that receives a secondary transmission service from a 
     satellite carrier and pays a fee for the service, directly or 
     indirectly, to the satellite carrier or to a distributor.''.

     SEC. 904. MODIFICATIONS TO CABLE SYSTEM SECONDARY 
                   TRANSMISSION RIGHTS UNDER SECTION 111.

       (a) Heading Renamed.--
       (1) In general.--The heading of section 111 is amended by 
     inserting at the end the following: ``of broadcast 
     programming by cable''.
       (2) Table of contents.--The table of contents for chapter 1 
     is amended by striking the item relating to section 111 and 
     inserting the following:

``111. Limitations on exclusive rights: Secondary transmissions of 
              broadcast programming by cable.''.

[[Page S657]]

       (b) Technical Amendment.--Section 111(a)(4) is amended by 
     striking ``; or'' and inserting ``or section 122;''.
       (c) Statutory License for Secondary Transmissions by Cable 
     Systems.--Section 111(d) is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``A cable system whose secondary'' and 
     inserting the following: ``Statement of account and royalty 
     fees.--Subject to paragraph (5), a cable system whose 
     secondary''; and
       (ii) by striking ``by regulation--'' and inserting ``by 
     regulation the following:'';
       (B) in subparagraph (A)--
       (i) by striking ``a statement of account'' and inserting 
     ``A statement of account''; and
       (ii) by striking ``; and'' and inserting a period; and
       (C) by striking subparagraphs (B), (C), and (D) and 
     inserting the following:
       ``(B) Except in the case of a cable system whose royalty 
     fee is specified in subparagraph (E) or (F), a total royalty 
     fee payable to copyright owners pursuant to paragraph (3) for 
     the period covered by the statement, computed on the basis of 
     specified percentages of the gross receipts from subscribers 
     to the cable service during such period for the basic service 
     of providing secondary transmissions of primary broadcast 
     transmitters, as follows:
       ``(i) 1.064 percent of such gross receipts for the 
     privilege of further transmitting, beyond the local service 
     area of such primary transmitter, any non-network programming 
     of a primary transmitter in whole or in part, such amount to 
     be applied against the fee, if any, payable pursuant to 
     clauses (ii) through (iv);
       ``(ii) 1.064 percent of such gross receipts for the first 
     distant signal equivalent;
       ``(iii) 0.701 percent of such gross receipts for each of 
     the second, third, and fourth distant signal equivalents; and
       ``(iv) 0.330 percent of such gross receipts for the fifth 
     distant signal equivalent and each distant signal equivalent 
     thereafter.
       ``(C) In computing amounts under clauses (ii) through (iv) 
     of subparagraph (B)--
       ``(i) any fraction of a distant signal equivalent shall be 
     computed at its fractional value;
       ``(ii) in the case of any cable system located partly 
     within and partly outside of the local service area of a 
     primary transmitter, gross receipts shall be limited to those 
     gross receipts derived from subscribers located outside of 
     the local service area of such primary transmitter; and
       ``(iii) if a cable system provides a secondary transmission 
     of a primary transmitter to some but not all communities 
     served by that cable system--

       ``(I) the gross receipts and the distant signal equivalent 
     values for such secondary transmission shall be derived 
     solely on the basis of the subscribers in those communities 
     where the cable system provides such secondary transmission; 
     and
       ``(II) the total royalty fee for the period paid by such 
     system shall not be less than the royalty fee calculated 
     under subparagraph (B)(i) multiplied by the gross receipts 
     from all subscribers to the system.

       ``(D) A cable system that, on a statement submitted before 
     the date of the enactment of the Satellite Television 
     Extension and Localism Act of 2010, computed its royalty fee 
     consistent with the methodology under subparagraph (C)(iii), 
     or that amends a statement filed before such date of 
     enactment to compute the royalty fee due using such 
     methodology, shall not be subject to an action for 
     infringement, or eligible for any royalty refund or offset, 
     arising out of its use of such methodology on such statement.
       ``(E) If the actual gross receipts paid by subscribers to a 
     cable system for the period covered by the statement for the 
     basic service of providing secondary transmissions of primary 
     broadcast transmitters are $263,800 or less--
       ``(i) gross receipts of the cable system for the purpose of 
     this paragraph shall be computed by subtracting from such 
     actual gross receipts the amount by which $263,800 exceeds 
     such actual gross receipts, except that in no case shall a 
     cable system's gross receipts be reduced to less than 
     $10,400; and
       ``(ii) the royalty fee payable under this paragraph to 
     copyright owners pursuant to paragraph (3) shall be 0.5 
     percent, regardless of the number of distant signal 
     equivalents, if any.
       ``(F) If the actual gross receipts paid by subscribers to a 
     cable system for the period covered by the statement for the 
     basic service of providing secondary transmissions of primary 
     broadcast transmitters are more than $263,800 but less than 
     $527,600, the royalty fee payable under this paragraph to 
     copyright owners pursuant to paragraph (3) shall be--
       ``(i) 0.5 percent of any gross receipts up to $263,800, 
     regardless of the number of distant signal equivalents, if 
     any; and
       ``(ii) 1 percent of any gross receipts in excess of 
     $263,800, but less than $527,600, regardless of the number of 
     distant signal equivalents, if any.
       ``(G) A filing fee, as determined by the Register of 
     Copyrights pursuant to section 708(a).'';
       (2) in paragraph (2), in the first sentence--
       (A) by striking ``The Register of Copyrights'' and 
     inserting the following ``Handling of fees.--The Register of 
     Copyrights''; and
       (B) by inserting ``(including the filing fee specified in 
     paragraph (1)(G))'' after ``shall receive all fees'';
       (3) in paragraph (3)--
       (A) by striking ``The royalty fees'' and inserting the 
     following: ``Distribution of royalty fees to copyright 
     owners.--The royalty fees'';
       (B) in subparagraph (A)--
       (i) by striking ``any such'' and inserting ``Any such''; 
     and
       (ii) by striking ``; and'' and inserting a period;
       (C) in subparagraph (B)--
       (i) by striking ``any such'' and inserting ``Any such''; 
     and
       (ii) by striking the semicolon and inserting a period; and
       (D) in subparagraph (C), by striking ``any such'' and 
     inserting ``Any such'';
       (4) in paragraph (4), by striking ``The royalty fees'' and 
     inserting the following: ``Procedures for royalty fee 
     distribution.--The royalty fees''; and
       (5) by adding at the end the following new paragraphs:
       ``(5) 3.75 percent rate and syndicated exclusivity 
     surcharge not applicable to multicast streams.--The royalty 
     rates specified in sections 256.2(c) and 256.2(d) of title 
     37, Code of Federal Regulations (commonly referred to as the 
     `3.75 percent rate' and the `syndicated exclusivity 
     surcharge', respectively), as in effect on the date of the 
     enactment of the Satellite Television Extension and Localism 
     Act of 2010, as such rates may be adjusted, or such sections 
     redesignated, thereafter by the Copyright Royalty Judges, 
     shall not apply to the secondary transmission of a multicast 
     stream.
       ``(6) Verification of accounts and fee payments.--The 
     Register of Copyrights shall issue regulations to provide for 
     the confidential verification by copyright owners whose works 
     were embodied in the secondary transmissions of primary 
     transmissions pursuant to this section of the information 
     reported on the semiannual statements of account filed under 
     this subsection on or after January 1, 2010, in order that 
     the auditor designated under subparagraph (A) is able to 
     confirm the correctness of the calculations and royalty 
     payments reported therein. The regulations shall--
       ``(A) establish procedures for the designation of a 
     qualified independent auditor--
       ``(i) with exclusive authority to request verification of 
     such a statement of account on behalf of all copyright owners 
     whose works were the subject of secondary transmissions of 
     primary transmissions by the cable system (that deposited the 
     statement) during the accounting period covered by the 
     statement; and
       ``(ii) who is not an officer, employee, or agent of any 
     such copyright owner for any purpose other than such audit;
       ``(B) establish procedures for safeguarding all non-public 
     financial and business information provided under this 
     paragraph;
       ``(C)(i) require a consultation period for the independent 
     auditor to review its conclusions with a designee of the 
     cable system;
       ``(ii) establish a mechanism for the cable system to remedy 
     any errors identified in the auditor's report and to cure any 
     underpayment identified; and
       ``(iii) provide an opportunity to remedy any disputed facts 
     or conclusions;
       ``(D) limit the frequency of requests for verification for 
     a particular cable system and the number of audits that a 
     multiple system operator can be required to undergo in a 
     single year; and
       ``(E) permit requests for verification of a statement of 
     account to be made only within 3 years after the last day of 
     the year in which the statement of account is filed.
       ``(7) Acceptance of additional deposits.--Any royalty fee 
     payments received by the Copyright Office from cable systems 
     for the secondary transmission of primary transmissions that 
     are in addition to the payments calculated and deposited in 
     accordance with this subsection shall be deemed to have been 
     deposited for the particular accounting period for which they 
     are received and shall be distributed as specified under this 
     subsection.''.
       (d) Effective Date of New Royalty Fee Rates.--The royalty 
     fee rates established in section 111(d)(1)(B) of title 17, 
     United States Code, as amended by subsection (c)(1)(C) of 
     this section, shall take effect commencing with the first 
     accounting period occurring in 2010.
       (e) Definitions.--Section 111(f) is amended--
       (1) by striking the first undesignated paragraph and 
     inserting the following:
       ``(1) Primary transmission.--A `primary transmission' is a 
     transmission made to the public by a transmitting facility 
     whose signals are being received and further transmitted by a 
     secondary transmission service, regardless of where or when 
     the performance or display was first transmitted. In the case 
     of a television broadcast station, the primary stream and any 
     multicast streams transmitted by the station constitute 
     primary transmissions.'';
       (2) in the second undesignated paragraph--
       (A) by striking ``A `secondary transmission' '' and 
     inserting the following:
       ``(2) Secondary transmission.--A `secondary transmission' 
     ''; and
       (B) by striking `` `cable system' '' and inserting ``cable 
     system'';
       (3) in the third undesignated paragraph--
       (A) by striking ``A `cable system' '' and inserting the 
     following:

[[Page S658]]

       ``(3) Cable system.--A `cable system' ''; and
       (B) by striking ``Territory, Trust Territory, or 
     Possession'' and inserting ``territory, trust territory, or 
     possession of the United States'';
       (4) in the fourth undesignated paragraph, in the first 
     sentence--
       (A) by striking ``The `local service area of a primary 
     transmitter', in the case of a television broadcast station, 
     comprises the area in which such station is entitled to 
     insist'' and inserting the following:
       ``(4) Local service area of a primary transmitter.--The 
     `local service area of a primary transmitter', in the case of 
     both the primary stream and any multicast streams transmitted 
     by a primary transmitter that is a television broadcast 
     station, comprises the area where such primary transmitter 
     could have insisted'';
       (B) by striking ``76.59 of title 47 of the Code of Federal 
     Regulations'' and inserting the following: ``76.59 of title 
     47, Code of Federal Regulations, or within the noise-limited 
     contour as defined in 73.622(e)(1) of title 47, Code of 
     Federal Regulations''; and
       (C) by striking ``as defined by the rules and regulations 
     of the Federal Communications Commission,'';
       (5) by amending the fifth undesignated paragraph to read as 
     follows:
       ``(5) Distant signal equivalent.--
       ``(A) In general.--Except as provided under subparagraph 
     (B), a `distant signal equivalent'--
       ``(i) is the value assigned to the secondary transmission 
     of any non-network television programming carried by a cable 
     system in whole or in part beyond the local service area of 
     the primary transmitter of such programming; and
       ``(ii) is computed by assigning a value of one to each 
     primary stream and to each multicast stream (other than a 
     simulcast) that is an independent station, and by assigning a 
     value of one-quarter to each primary stream and to each 
     multicast stream (other than a simulcast) that is a network 
     station or a noncommercial educational station.
       ``(B) Exceptions.--The values for independent, network, and 
     noncommercial educational stations specified in subparagraph 
     (A) are subject to the following:
       ``(i) Where the rules and regulations of the Federal 
     Communications Commission require a cable system to omit the 
     further transmission of a particular program and such rules 
     and regulations also permit the substitution of another 
     program embodying a performance or display of a work in place 
     of the omitted transmission, or where such rules and 
     regulations in effect on the date of the enactment of the 
     Copyright Act of 1976 permit a cable system, at its election, 
     to effect such omission and substitution of a nonlive program 
     or to carry additional programs not transmitted by primary 
     transmitters within whose local service area the cable system 
     is located, no value shall be assigned for the substituted or 
     additional program.
       ``(ii) Where the rules, regulations, or authorizations of 
     the Federal Communications Commission in effect on the date 
     of the enactment of the Copyright Act of 1976 permit a cable 
     system, at its election, to omit the further transmission of 
     a particular program and such rules, regulations, or 
     authorizations also permit the substitution of another 
     program embodying a performance or display of a work in place 
     of the omitted transmission, the value assigned for the 
     substituted or additional program shall be, in the case of a 
     live program, the value of one full distant signal equivalent 
     multiplied by a fraction that has as its numerator the number 
     of days in the year in which such substitution occurs and as 
     its denominator the number of days in the year.
       ``(iii) In the case of the secondary transmission of a 
     primary transmitter that is a television broadcast station 
     pursuant to the late-night or specialty programming rules of 
     the Federal Communications Commission, or the secondary 
     transmission of a primary transmitter that is a television 
     broadcast station on a part-time basis where full-time 
     carriage is not possible because the cable system lacks the 
     activated channel capacity to retransmit on a full-time basis 
     all signals that it is authorized to carry, the values for 
     independent, network, and noncommercial educational stations 
     set forth in subparagraph (A), as the case may be, shall be 
     multiplied by a fraction that is equal to the ratio of the 
     broadcast hours of such primary transmitter retransmitted by 
     the cable system to the total broadcast hours of the primary 
     transmitter.
       ``(iv) No value shall be assigned for the secondary 
     transmission of the primary stream or any multicast streams 
     of a primary transmitter that is a television broadcast 
     station in any community that is within the local service 
     area of the primary transmitter.'';
       (6) by striking the sixth undesignated paragraph and 
     inserting the following:
       ``(6) Network station.--
       ``(A) Treatment of primary stream.--The term `network 
     station' shall be applied to a primary stream of a television 
     broadcast station that is owned or operated by, or affiliated 
     with, one or more of the television networks in the United 
     States providing nationwide transmissions, and that transmits 
     a substantial part of the programming supplied by such 
     networks for a substantial part of the primary stream's 
     typical broadcast day.
       ``(B) Treatment of multicast streams.--The term `network 
     station' shall be applied to a multicast stream on which a 
     television broadcast station transmits all or substantially 
     all of the programming of an interconnected program service 
     that--
       ``(i) is owned or operated by, or affiliated with, one or 
     more of the television networks described in subparagraph 
     (A); and
       ``(ii) offers programming on a regular basis for 15 or more 
     hours per week to at least 25 of the affiliated television 
     licensees of the interconnected program service in 10 or more 
     States.'';
       (7) by striking the seventh undesignated paragraph and 
     inserting the following:
       ``(7) Independent station.--The term `independent station' 
     shall be applied to the primary stream or a multicast stream 
     of a television broadcast station that is not a network 
     station or a noncommercial educational station.'';
       (8) by striking the eighth undesignated paragraph and 
     inserting the following:
       ``(8) Noncommercial educational station.--The term 
     `noncommercial educational station' shall be applied to the 
     primary stream or a multicast stream of a television 
     broadcast station that is a noncommercial educational 
     broadcast station as defined in section 397 of the 
     Communications Act of 1934, as in effect on the date of the 
     enactment of the Satellite Television Extension and Localism 
     Act of 2010.''; and
       (9) by adding at the end the following:
       ``(9) Primary stream.--A `primary stream' is--
       ``(A) the single digital stream of programming that, before 
     June 12, 2009, was substantially duplicating the programming 
     transmitted by the television broadcast station as an analog 
     signal; or
       ``(B) if there is no stream described in subparagraph (A), 
     then the single digital stream of programming transmitted by 
     the television broadcast station for the longest period of 
     time.
       ``(10) Primary transmitter.--A `primary transmitter' is a 
     television or radio broadcast station licensed by the Federal 
     Communications Commission, or by an appropriate governmental 
     authority of Canada or Mexico, that makes primary 
     transmissions to the public.
       ``(11) Multicast stream.--A `multicast stream' is a digital 
     stream of programming that is transmitted by a television 
     broadcast station and is not the station's primary stream.
       ``(12) Simulcast.--A `simulcast' is a multicast stream of a 
     television broadcast station that duplicates the programming 
     transmitted by the primary stream or another multicast stream 
     of such station.
       ``(13) Subscriber; subscribe.--
       ``(A) Subscriber.--The term `subscriber' means a person or 
     entity that receives a secondary transmission service from a 
     cable system and pays a fee for the service, directly or 
     indirectly, to the cable system.
       ``(B) Subscribe.--The term `subscribe' means to elect to 
     become a subscriber.''.
       (f) Timing of Section 111 Proceedings.--Section 804(b)(1) 
     is amended by striking ``2005'' each place it appears and 
     inserting ``2015''.
       (g) Technical and Conforming Amendments.--
       (1) Corrections to fix level designations.--Section 111 is 
     amended--
       (A) in subsections (a), (c), and (e), by striking 
     ``clause'' each place it appears and inserting ``paragraph'';
       (B) in subsection (c)(1), by striking ``clauses'' and 
     inserting ``paragraphs''; and
       (C) in subsection (e)(1)(F), by striking ``subclause'' and 
     inserting ``subparagraph''.
       (2) Conforming amendment to hyphenate nonnetwork.--Section 
     111 is amended by striking ``nonnetwork'' each place it 
     appears and inserting ``non-network''.
       (3) Previously undesignated paragraph.--Section 111(e)(1) 
     is amended by striking ``second paragraph of subsection (f)'' 
     and inserting ``subsection (f)(2)''.
       (4) Removal of superfluous ands.--Section 111(e) is 
     amended--
       (A) in paragraph (1)(A), by striking ``and'' at the end;
       (B) in paragraph (1)(B), by striking ``and'' at the end;
       (C) in paragraph (1)(C), by striking ``and'' at the end;
       (D) in paragraph (1)(D), by striking ``and'' at the end; 
     and
       (E) in paragraph (2)(A), by striking ``and'' at the end.
       (5) Removal of variant forms references.--Section 111 is 
     amended--
       (A) in subsection (e)(4), by striking ``, and each of its 
     variant forms,''; and
       (B) in subsection (f), by striking ``and their variant 
     forms''.
       (6) Correction to territory reference.--Section 111(e)(2) 
     is amended in the matter preceding subparagraph (A) by 
     striking ``three territories'' and inserting ``five 
     entities''.
       (h) Effective Date With Respect to Multicast Streams.--
       (1) In general.--Subject to paragraphs (2) and (3), the 
     amendments made by this section, to the extent such 
     amendments assign a distant signal equivalent value to the 
     secondary transmission of the multicast stream of a primary 
     transmitter, shall take effect on the date of the enactment 
     of this Act.
       (2) Delayed applicability.--
       (A) Secondary transmissions of a multicast stream beyond 
     the local service area of its primary transmitter before 2009 
     act.--In any case in which a cable system was making 
     secondary transmissions

[[Page S659]]

     of a multicast stream beyond the local service area of its 
     primary transmitter before the date of the enactment of this 
     Act, a distant signal equivalent value (referred to in 
     paragraph (1)) shall not be assigned to secondary 
     transmissions of such multicast stream that are made on or 
     before June 30, 2010.
       (B) Multicast streams subject to preexisting written 
     agreements for the secondary transmission of such streams.--
     In any case in which the secondary transmission of a 
     multicast stream of a primary transmitter is the subject of a 
     written agreement entered into on or before June 30, 2009, 
     between a cable system or an association representing the 
     cable system and a primary transmitter or an association 
     representing the primary transmitter, a distant signal 
     equivalent value (referred to in paragraph (1)) shall not be 
     assigned to secondary transmissions of such multicast stream 
     beyond the local service area of its primary transmitter that 
     are made on or before the date on which such written 
     agreement expires.
       (C) No refunds or offsets for prior statements of 
     account.--A cable system that has reported secondary 
     transmissions of a multicast stream beyond the local service 
     area of its primary transmitter on a statement of account 
     deposited under section 111 of title 17, United States Code, 
     before the date of the enactment of this Act shall not be 
     entitled to any refund, or offset, of royalty fees paid on 
     account of such secondary transmissions of such multicast 
     stream.
       (3) Definitions.--In this subsection, the terms ``cable 
     system'', ``secondary transmission'', ``multicast stream'', 
     and ``local service area of a primary transmitter'' have the 
     meanings given those terms in section 111(f) of title 17, 
     United States Code, as amended by this section.

     SEC. 905. CERTAIN WAIVERS GRANTED TO PROVIDERS OF LOCAL-INTO-
                   LOCAL SERVICE FOR ALL DMAS.

       Section 119 is amended by adding at the end the following 
     new subsection:
       ``(g) Certain Waivers Granted to Providers of Local-Into-
     Local Service to All DMAs.--
       ``(1) Injunction waiver.--A court that issued an injunction 
     pursuant to subsection (a)(7)(B) before the date of the 
     enactment of this subsection shall waive such injunction if 
     the court recognizes the entity against which the injunction 
     was issued as a qualified carrier.
       ``(2) Limited temporary waiver.--
       ``(A) In general.--Upon a request made by a satellite 
     carrier, a court that issued an injunction against such 
     carrier under subsection (a)(7)(B) before the date of the 
     enactment of this subsection shall waive such injunction with 
     respect to the statutory license provided under subsection 
     (a)(2) to the extent necessary to allow such carrier to make 
     secondary transmissions of primary transmissions made by a 
     network station to unserved households located in short 
     markets in which such carrier was not providing local service 
     pursuant to the license under section 122 as of December 31, 
     2009.
       ``(B) Expiration of temporary waiver.--A temporary waiver 
     of an injunction under subparagraph (A) shall expire after 
     the end of the 120-day period beginning on the date such 
     temporary waiver is issued unless extended for good cause by 
     the court making the temporary waiver.
       ``(C) Failure to provide local-into-local service to all 
     dmas.--
       ``(i) Failure to act reasonably and in good faith.--If the 
     court issuing a temporary waiver under subparagraph (A) 
     determines that the satellite carrier that made the request 
     for such waiver has failed to act reasonably or has failed to 
     make a good faith effort to provide local-into-local service 
     to all DMAs, such failure--

       ``(I) is actionable as an act of infringement under section 
     501 and the court may in its discretion impose the remedies 
     provided for in sections 502 through 506 and subsection 
     (a)(6)(B) of this section; and
       ``(II) shall result in the termination of the waiver issued 
     under subparagraph (A).

       ``(ii) Failure to provide local-into-local service.--If the 
     court issuing a temporary waiver under subparagraph (A) 
     determines that the satellite carrier that made the request 
     for such waiver has failed to provide local-into-local 
     service to all DMAs, but determines that the carrier acted 
     reasonably and in good faith, the court may in its discretion 
     impose financial penalties that reflect--

       ``(I) the degree of control the carrier had over the 
     circumstances that resulted in the failure;
       ``(II) the quality of the carrier's efforts to remedy the 
     failure; and
       ``(III) the severity and duration of any service 
     interruption.

       ``(D) Single temporary waiver available.--An entity may 
     only receive one temporary waiver under this paragraph.
       ``(E) Short market defined.--For purposes of this 
     paragraph, the term `short market' means a local market in 
     which programming of one or more of the four most widely 
     viewed television networks nationwide as measured on the date 
     of the enactment of this subsection is not offered on the 
     primary stream transmitted by any local television broadcast 
     station.
       ``(3) Establishment of qualified carrier recognition.--
       ``(A) Statement of eligibility.--An entity seeking to be 
     recognized as a qualified carrier under this subsection shall 
     file a statement of eligibility with the court that imposed 
     the injunction. A statement of eligibility must include--
       ``(i) an affidavit that the entity is providing local-into-
     local service to all DMAs;
       ``(ii) a request for a waiver of the injunction; and
       ``(iii) a certification issued pursuant to section 342(a) 
     of Communications Act of 1934.
       ``(B) Grant of recognition as a qualified carrier.--Upon 
     receipt of a statement of eligibility, the court shall 
     recognize the entity as a qualified carrier and issue the 
     waiver under paragraph (1).
       ``(C) Voluntary termination.--At any time, an entity 
     recognized as a qualified carrier may file a statement of 
     voluntary termination with the court certifying that it no 
     longer wishes to be recognized as a qualified carrier. Upon 
     receipt of such statement, the court shall reinstate the 
     injunction waived under paragraph (1).
       ``(D) Loss of recognition prevents future recognition.--No 
     entity may be recognized as a qualified carrier if such 
     entity had previously been recognized as a qualified carrier 
     and subsequently lost such recognition or voluntarily 
     terminated such recognition under subparagraph (C).
       ``(4) Qualified carrier obligations and compliance.--
       ``(A) Continuing obligations.--
       ``(i) In general.--An entity recognized as a qualified 
     carrier shall continue to provide local-into-local service to 
     all DMAs.
       ``(ii) Cooperation with gao examination.--An entity 
     recognized as a qualified carrier shall fully cooperate with 
     the Comptroller General in the examination required by 
     subparagraph (B).
       ``(B) Qualified carrier compliance examination.--
       ``(i) Examination and report.--The Comptroller General 
     shall conduct an examination and publish a report concerning 
     the qualified carrier's compliance with the royalty payment 
     and household eligibility requirements of the license under 
     this section. The report shall address the qualified 
     carrier's conduct during the period beginning on the date on 
     which the qualified carrier is recognized as such under 
     paragraph (3)(B) and ending on December 31, 2011.
       ``(ii) Records of qualified carrier.--Beginning on the date 
     that is one year after the date on which the qualified 
     carrier is recognized as such under paragraph (3)(B), but not 
     later than October 1, 2011, the qualified carrier shall 
     provide the Comptroller General with all records that the 
     Comptroller General, in consultation with the Register of 
     Copyrights, considers to be directly pertinent to the 
     following requirements under this section:

       ``(I) Proper calculation and payment of royalties under the 
     statutory license under this section.
       ``(II) Provision of service under this license to eligible 
     subscribers only.

       ``(iii) Submission of report.--The Comptroller General 
     shall file the report required by clause (i) not later than 
     March 1, 2012, with the court referred to in paragraph (1) 
     that issued the injunction, the Register of Copyrights, the 
     Committees on the Judiciary and on Energy and Commerce of the 
     House of Representatives, and the Committees on the Judiciary 
     and on Commerce, Science, and Transportation of the Senate.
       ``(iv) Evidence of infringement.--The Comptroller General 
     shall include in the report a statement of whether the 
     examination by the Comptroller General indicated that there 
     is substantial evidence that a copyright holder could bring a 
     successful action under this section against the qualified 
     carrier for infringement. The Comptroller General shall 
     consult with the Register of Copyrights in preparing such 
     statement.
       ``(v) Subsequent examination.--If the report includes the 
     Comptroller General's statement that there is substantial 
     evidence that a copyright holder could bring a successful 
     action under this section against the qualified carrier for 
     infringement, the Comptroller General shall, not later than 6 
     months after the report under clause (i) is published, 
     initiate another examination of the qualified carrier's 
     compliance with the royalty payment and household eligibility 
     requirements of the license under this section since the last 
     report was filed under clause (iii). The Comptroller General 
     shall file a report on such examination with the court 
     referred to in paragraph (1) that issued the injunction, the 
     Register of Copyrights, the Committees on the Judiciary and 
     on Energy and Commerce of the House of Representatives, and 
     the Committees on the Judiciary and on Commerce, Science, and 
     Transportation of the Senate. The report shall include a 
     statement described in clause (iv), prepared in consultation 
     with the Register of Copyrights.
       ``(vi) Compliance.--Upon motion filed by an aggrieved 
     copyright owner, the court recognizing an entity as a 
     qualified carrier shall terminate such designation upon 
     finding that the entity has failed to cooperate with the 
     examinations required by this subparagraph.
       ``(C) Affirmation.--A qualified carrier shall file an 
     affidavit with the district court and the Register of 
     Copyrights 30 months after such status was granted stating 
     that, to the best of the affiant's knowledge, it is in 
     compliance with the requirements for a qualified carrier.
       ``(D) Compliance determination.--Upon the motion of an 
     aggrieved television broadcast station, the court recognizing 
     an entity

[[Page S660]]

     as a qualified carrier may make a determination of whether 
     the entity is providing local-into-local service to all DMAs.
       ``(E) Pleading requirement.--In any motion brought under 
     subparagraph (D), the party making such motion shall specify 
     one or more designated market areas (as such term is defined 
     in section 122(j)(2)(C)) for which the failure to provide 
     service is being alleged, and, for each such designated 
     market area, shall plead with particularity the circumstances 
     of the alleged failure.
       ``(F) Burden of proof.--In any proceeding to make a 
     determination under subparagraph (D), and with respect to a 
     designated market area for which failure to provide service 
     is alleged, the entity recognized as a qualified carrier 
     shall have the burden of proving that the entity provided 
     local-into-local service with a good quality satellite signal 
     to at least 90 percent of the households in such designated 
     market area (based on the most recent census data released by 
     the United States Census Bureau) at the time and place 
     alleged.
       ``(5) Failure to provide service.--
       ``(A) Penalties.--If the court recognizing an entity as a 
     qualified carrier finds that such entity has willfully failed 
     to provide local-into-local service to all DMAs, such finding 
     shall result in the loss of recognition of the entity as a 
     qualified carrier and the termination of the waiver provided 
     under paragraph (1), and the court may, in its discretion--
       ``(i) treat such failure as an act of infringement under 
     section 501, and subject such infringement to the remedies 
     provided for in sections 502 through 506 and subsection 
     (a)(6)(B) of this section; and
       ``(ii) impose a fine of not less than $250,000 and not more 
     than $5,000,000.
       ``(B) Exception for nonwillful violation.--If the court 
     determines that the failure to provide local-into-local 
     service to all DMAs is nonwillful, the court may in its 
     discretion impose financial penalties for noncompliance that 
     reflect--
       ``(i) the degree of control the entity had over the 
     circumstances that resulted in the failure;
       ``(ii) the quality of the entity's efforts to remedy the 
     failure and restore service; and
       ``(iii) the severity and duration of any service 
     interruption.
       ``(6) Penalties for violations of license.--A court that 
     finds, under subsection (a)(6)(A), that an entity recognized 
     as a qualified carrier has willfully made a secondary 
     transmission of a primary transmission made by a network 
     station and embodying a performance or display of a work to a 
     subscriber who is not eligible to receive the transmission 
     under this section shall reinstate the injunction waived 
     under paragraph (1), and the court may order statutory 
     damages of not more than $2,500,000.
       ``(7) Local-into-local service to all dmas defined.--For 
     purposes of this subsection:
       ``(A) In general.--An entity provides `local-into-local 
     service to all DMAs' if the entity provides local service in 
     all designated market areas (as such term is defined in 
     section 122(j)(2)(C)) pursuant to the license under section 
     122.
       ``(B) Household coverage.--For purposes of subparagraph 
     (A), an entity that makes available local-into-local service 
     with a good quality satellite signal to at least 90 percent 
     of the households in a designated market area based on the 
     most recent census data released by the United States Census 
     Bureau shall be considered to be providing local service to 
     such designated market area.
       ``(C) Good quality satellite signal defined.--The term 
     `good quality signal' has the meaning given such term under 
     section 342(e)(2) of Communications Act of 1934.''.

     SEC. 906. COPYRIGHT OFFICE FEES.

       Section 708(a) is amended--
       (1) in paragraph (8), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (9), by striking the period and inserting 
     a semicolon;
       (3) by inserting after paragraph (9) the following:
       ``(10) on filing a statement of account based on secondary 
     transmissions of primary transmissions pursuant to section 
     119 or 122; and
       ``(11) on filing a statement of account based on secondary 
     transmissions of primary transmissions pursuant to section 
     111.''; and
       (4) by adding at the end the following new sentence: ``Fees 
     established under paragraphs (10) and (11) shall be 
     reasonable and may not exceed one-half of the cost necessary 
     to cover reasonable expenses incurred by the Copyright Office 
     for the collection and administration of the statements of 
     account and any royalty fees deposited with such 
     statements.''.

     SEC. 907. TERMINATION OF LICENSE.

       Section 1003(a)(2)(A) of Public Law 111-118 is amended by 
     striking ``February 28, 2010'' and inserting ``December 31, 
     2014''.

     SEC. 908. CONSTRUCTION.

       Nothing in section 111, 119, or 122 of title 17, United 
     States Code, including the amendments made to such sections 
     by this subtitle, shall be construed to affect the meaning of 
     any terms under the Communications Act of 1934, except to the 
     extent that such sections are specifically cross-referenced 
     in such Act or the regulations issued thereunder.

                 Subtitle B--Communications Provisions

     SEC. 921. REFERENCE.

       Except as otherwise provided, whenever in this subtitle an 
     amendment is made to a section or other provision, the 
     reference shall be considered to be made to such section or 
     provision of the Communications Act of 1934 (47 U.S.C. 151 et 
     seq.).

     SEC. 922. EXTENSION OF AUTHORITY.

       Section 325(b) is amended--
       (1) in paragraph (2)(C), by striking ``February 28, 2010'' 
     and inserting ``December 31, 2014''; and
       (2) in paragraph (3)(C), by striking ``March 1, 2010'' each 
     place it appears in clauses (ii) and (iii) and inserting 
     ``January 1, 2015''.

     SEC. 923. SIGNIFICANTLY VIEWED STATIONS.

       (a) In General.--Paragraphs (1) and (2) of section 340(b) 
     are amended to read as follows:
       ``(1) Service limited to subscribers taking local-into-
     local service.--This section shall apply only to 
     retransmissions to subscribers of a satellite carrier who 
     receive retransmissions of a signal from that satellite 
     carrier pursuant to section 338.
       ``(2) Service limitations.--A satellite carrier may 
     retransmit to a subscriber in high definition format the 
     signal of a station determined by the Commission to be 
     significantly viewed under subsection (a) only if such 
     carrier also retransmits in high definition format the signal 
     of a station located in the local market of such subscriber 
     and affiliated with the same network whenever such format is 
     available from such station.''.
       (b) Rulemaking Required.--Within 180 days after the date of 
     the enactment of this Act, the Federal Communications 
     Commission shall take all actions necessary to promulgate a 
     rule to implement the amendments made by subsection (a).

     SEC. 924. DIGITAL TELEVISION TRANSITION CONFORMING 
                   AMENDMENTS.

       (a) Section 338.--Section 338 is amended--
       (1) in subsection (a), by striking ``(3)  effective date.--
     No satellite'' and all that follows through ``until January 
     1, 2002.''; and
       (2) by amending subsection (g) to read as follows:
       ``(g) Carriage of Local Stations on a Single Reception 
     Antenna.--
       ``(1) Single reception antenna.--Each satellite carrier 
     that retransmits the signals of local television broadcast 
     stations in a local market shall retransmit such stations in 
     such market so that a subscriber may receive such stations by 
     means of a single reception antenna and associated equipment.
       ``(2) Additional reception antenna.--If the carrier 
     retransmits the signals of local television broadcast 
     stations in a local market in high definition format, the 
     carrier shall retransmit such signals in such market so that 
     a subscriber may receive such signals by means of a single 
     reception antenna and associated equipment, but such antenna 
     and associated equipment may be separate from the single 
     reception antenna and associated equipment used to comply 
     with paragraph (1).''.
       (b) Section 339.--Section 339 is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)(B), by striking ``Such two network 
     stations'' and all that follows through ``more than two 
     network stations.''; and
       (B) in paragraph (2)--
       (i) in the heading for subparagraph (A), by striking ``to 
     analog signals'';
       (ii) in subparagraph (A)--

       (I) in the heading for clause (i), by striking ``analog'';
       (II) in clause (i)--

       (aa) by striking ``analog'' each place it appears; and
       (bb) by striking ``October 1, 2004'' and inserting 
     ``October 1, 2009'';

       (III) in the heading for clause (ii), by striking 
     ``analog''; and
       (IV) in clause (ii)--

       (aa) by striking ``analog'' each place it appears; and
       (bb) by striking ``2004'' and inserting ``2009'';
       (iii) by amending subparagraph (B) to read as follows:
       ``(B) Rules for other subscribers.--
       ``(i) In general.--In the case of a subscriber of a 
     satellite carrier who is eligible to receive the signal of a 
     network station under this section (in this subparagraph 
     referred to as a `distant signal'), other than subscribers to 
     whom subparagraph (A) applies, the following shall apply:

       ``(I) In a case in which the satellite carrier makes 
     available to that subscriber, on January 1, 2005, the signal 
     of a local network station affiliated with the same 
     television network pursuant to section 338, the carrier may 
     only provide the secondary transmissions of the distant 
     signal of a station affiliated with the same network to that 
     subscriber if the subscriber's satellite carrier, not later 
     than March 1, 2005, submits to that television network the 
     list and statement required by subparagraph (F)(i).
       ``(II) In a case in which the satellite carrier does not 
     make available to that subscriber, on January 1, 2005, the 
     signal of a local network station pursuant to section 338, 
     the carrier may only provide the secondary transmissions of 
     the distant signal of a station affiliated with the same 
     network to that subscriber if--

       ``(aa) that subscriber seeks to subscribe to such distant 
     signal before the date on which such carrier commences to 
     carry pursuant to section 338 the signals of stations from 
     the local market of such local network station; and
       ``(bb) the satellite carrier, within 60 days after such 
     date, submits to each television network the list and 
     statement required by subparagraph (F)(ii).

[[Page S661]]

       ``(ii) Special circumstances.--A subscriber of a satellite 
     carrier who was lawfully receiving the distant signal of a 
     network station on the day before the date of enactment of 
     the Satellite Television Extension and Localism Act of 2010 
     may receive both such distant signal and the local signal of 
     a network station affiliated with the same network until such 
     subscriber chooses to no longer receive such distant signal 
     from such carrier, whether or not such subscriber elects to 
     subscribe to such local signal.'';
       (iv) in subparagraph (C)--

       (I) by striking ``analog'';
       (II) in clause (i), by striking ``the Satellite Home Viewer 
     Extension and Reauthorization Act of 2004; and'' and 
     inserting the following:

     ``the Satellite Television Extension and Localism Act of 2010 
     and, at the time such person seeks to subscribe to receive 
     such secondary transmission, resides in a local market where 
     the satellite carrier makes available to that person the 
     signal of a local network station affiliated with the same 
     television network pursuant to section 338 (and the 
     retransmission of such signal by such carrier can reach such 
     subscriber); or''; and

       (III) by amending clause (ii) to read as follows:

       ``(ii) lawfully subscribes to and receives a distant signal 
     on or after the date of enactment of the Satellite Television 
     Extension and Localism Act of 2010, and, subsequent to such 
     subscription, the satellite carrier makes available to that 
     subscriber the signal of a local network station affiliated 
     with the same network as the distant signal (and the 
     retransmission of such signal by such carrier can reach such 
     subscriber), unless such person subscribes to the signal of 
     the local network station within 60 days after such signal is 
     made available.'';
       (v) in subparagraph (D)--

       (I) in the heading, by striking ``digital'';
       (II) by striking clauses (i), (iii) through (v), (vii) 
     through (ix), and (xi);
       (III) by redesignating clause (vi) as clause (i) and 
     transferring such clause to appear before clause (ii);
       (IV) by amending such clause (i) (as so redesignated) to 
     read as follows:

       ``(i) Eligibility and signal testing.--A subscriber of a 
     satellite carrier shall be eligible to receive a distant 
     signal of a network station affiliated with the same network 
     under this section if, with respect to a local network 
     station, such subscriber--

       ``(I) is a subscriber whose household is not predicted by 
     the model specified in subsection (c)(3) to receive the 
     signal intensity required under section 73.622(e)(1) or, in 
     the case of a low-power station or translator station 
     transmitting an analog signal, section 73.683(a) of title 47, 
     Code of Federal Regulations, or a successor regulation;
       ``(II) is determined, based on a test conducted in 
     accordance with section 73.686(d) of title 47, Code of 
     Federal Regulations, or any successor regulation, not to be 
     able to receive a signal that exceeds the signal intensity 
     standard in section 73.622(e)(1) or, in the case of a low-
     power station or translator station transmitting an analog 
     signal, section 73.683(a) of such title, or a successor 
     regulation; or
       ``(III) is in an unserved household, as determined under 
     section 119(d)(10)(A) of title 17, United States Code.'';
       (V) in clause (ii)--

       (aa) by striking ``digital'' in the heading;
       (bb) by striking ``digital'' the first two places such term 
     appears;
       (cc) by striking ``Satellite Home Viewer Extension and 
     Reauthorization Act of 2004'' and inserting ``Satellite 
     Television Extension and Localism Act of 2010''; and
       (dd) by striking ``, whether or not such subscriber elects 
     to subscribe to local digital signals'';

       (VI) by inserting after clause (ii) the following new 
     clause:

       ``(iii) Time-shifting prohibited.--In a case in which the 
     satellite carrier makes available to an eligible subscriber 
     under this subparagraph the signal of a local network station 
     pursuant to section 338, the carrier may only provide the 
     distant signal of a station affiliated with the same network 
     to that subscriber if, in the case of any local market in the 
     48 contiguous States of the United States, the distant signal 
     is the secondary transmission of a station whose prime time 
     network programming is generally broadcast simultaneously 
     with, or later than, the prime time network programming of 
     the affiliate of the same network in the local market.''; and

       (VII) by redesignating clause (x) as clause (iv); and

       (vi) in subparagraph (E), by striking ``distant analog 
     signal or'' and all that follows through ``(B), or (D))'' and 
     inserting ``distant signal'';
       (2) in subsection (c)--
       (A) by amending paragraph (3) to read as follows:
       ``(3) Establishment of improved predictive model and on-
     location testing required.--
       ``(A) Predictive model.--Within 180 days after the date of 
     the enactment of the Satellite Television Extension and 
     Localism Act of 2010, the Commission shall develop and 
     prescribe by rule a point-to-point predictive model for 
     reliably and presumptively determining the ability of 
     individual locations, through the use of an antenna, to 
     receive signals in accordance with the signal intensity 
     standard in section 73.622(e)(1) of title 47, Code of Federal 
     Regulations, or a successor regulation, including to account 
     for the continuing operation of translator stations and low 
     power television stations. In prescribing such model, the 
     Commission shall rely on the Individual Location Longley-Rice 
     model set forth by the Commission in CS Docket No. 98-201, as 
     previously revised with respect to analog signals, and as 
     recommended by the Commission with respect to digital signals 
     in its Report to Congress in ET Docket No. 05-182, FCC 05-199 
     (released December 9, 2005). The Commission shall establish 
     procedures for the continued refinement in the application of 
     the model by the use of additional data as it becomes 
     available.
       ``(B) On-location testing.--The Commission shall issue an 
     order completing its rulemaking proceeding in ET Docket No. 
     06-94 within 180 days after the date of enactment of the 
     Satellite Television Extension and Localism Act of 2010. In 
     conducting such rulemaking, the Commission shall seek ways to 
     minimize consumer burdens associated with on-location 
     testing.'';
       (B) by amending paragraph (4)(A) to read as follows:
       ``(A) In general.--If a subscriber's request for a waiver 
     under paragraph (2) is rejected and the subscriber submits to 
     the subscriber's satellite carrier a request for a test 
     verifying the subscriber's inability to receive a signal of 
     the signal intensity referenced in clause (i) of subsection 
     (a)(2)(D), the satellite carrier and the network station or 
     stations asserting that the retransmission is prohibited with 
     respect to that subscriber shall select a qualified and 
     independent person to conduct the test referenced in such 
     clause. Such test shall be conducted within 30 days after the 
     date the subscriber submits a request for the test. If the 
     written findings and conclusions of a test conducted in 
     accordance with such clause demonstrate that the subscriber 
     does not receive a signal that meets or exceeds the requisite 
     signal intensity standard in such clause, the subscriber 
     shall not be denied the retransmission of a signal of a 
     network station under section 119(d)(10)(A) of title 17, 
     United States Code.'';
       (C) in paragraph (4)(B), by striking ``the signal 
     intensity'' and all that follows through ``United States 
     Code'' and inserting ``such requisite signal intensity 
     standard''; and
       (D) in paragraph (4)(E), by striking ``Grade B intensity''.
       (c) Section 340.--Section 340(i) is amended by striking 
     paragraph (4).

     SEC. 925. APPLICATION PENDING COMPLETION OF RULEMAKINGS.

       (a) In General.--During the period beginning on the date of 
     the enactment of this Act and ending on the date on which the 
     Federal Communications Commission adopts rules pursuant to 
     the amendments to the Communications Act of 1934 made by 
     section 923 and section 924 of this title, the Federal 
     Communications Commission shall follow its rules and 
     regulations promulgated pursuant to sections 338, 339, and 
     340 of the Communications Act of 1934 as in effect on the day 
     before the date of the enactment of this Act.
       (b) Translator Stations and Low Power Television 
     Stations.--Notwithstanding subsection (a), for purposes of 
     determining whether a subscriber within the local market 
     served by a translator station or a low power television 
     station affiliated with a television network is eligible to 
     receive distant signals under section 339 of the 
     Communications Act of 1934, the rules and regulations of the 
     Federal Communications Commission for determining such 
     subscriber's eligibility as in effect on the day before the 
     date of the enactment of this Act shall apply until the date 
     on which the translator station or low power television 
     station is licensed to broadcast a digital signal.
       (c) Definitions.--As used in this subtitle:
       (1) Local market; low power television station; satellite 
     carrier; subscriber; television broadcast station.--The terms 
     ``local market'', ``low power television station'', 
     ``satellite carrier'', ``subscriber'', and ``television 
     broadcast station'' have the meanings given such terms in 
     section 338(k) of the Communications Act of 1934.
       (2) Network station; television network.--The terms 
     ``network station'' and ``television network'' have the 
     meanings given such terms in section 339(d) of such Act.

     SEC. 926. PROCESS FOR ISSUING QUALIFIED CARRIER 
                   CERTIFICATION.

       Part I of title III is amended by adding at the end the 
     following new section:

     ``SEC. 342. PROCESS FOR ISSUING QUALIFIED CARRIER 
                   CERTIFICATION.

       ``(a) Certification.--The Commission shall issue a 
     certification for the purposes of section 119(g)(3)(A)(iii) 
     of title 17, United States Code, if the Commission determines 
     that--
       ``(1) a satellite carrier is providing local service 
     pursuant to the statutory license under section 122 of such 
     title in each designated market area; and
       ``(2) with respect to each designated market area in which 
     such satellite carrier was not providing such local service 
     as of the date of enactment of the Satellite Television 
     Extension and Localism Act of 2010--
       ``(A) the satellite carrier's satellite beams are designed, 
     and predicted by the satellite manufacturer's pre-launch test 
     data, to provide a good quality satellite signal to at least 
     90 percent of the households in each such designated market 
     area based on the most recent census data released by the 
     United States Census Bureau; and
       ``(B) there is no material evidence that there has been a 
     satellite or sub-system failure subsequent to the satellite's 
     launch that

[[Page S662]]

     precludes the ability of the satellite carrier to satisfy the 
     requirements of subparagraph (A).
       ``(b) Information Required.--Any entity seeking the 
     certification provided for in subsection (a) shall submit to 
     the Commission the following information:
       ``(1) An affidavit stating that, to the best of the 
     affiant's knowledge, the satellite carrier provides local 
     service in all designated market areas pursuant to the 
     statutory license provided for in section 122 of title 17, 
     United States Code, and listing those designated market areas 
     in which local service was provided as of the date of 
     enactment of the Satellite Television Extension and Localism 
     Act of 2010.
       ``(2) For each designated market area not listed in 
     paragraph (1):
       ``(A) Identification of each such designated market area 
     and the location of its local receive facility.
       ``(B) Data showing the number of households, and maps 
     showing the geographic distribution thereof, in each such 
     designated market area based on the most recent census data 
     released by the United States Census Bureau.
       ``(C) Maps, with superimposed effective isotropically 
     radiated power predictions obtained in the satellite 
     manufacturer's pre-launch tests, showing that the contours of 
     the carrier's satellite beams as designed and the geographic 
     area that the carrier's satellite beams are designed to cover 
     are predicted to provide a good quality satellite signal to 
     at least 90 percent of the households in such designated 
     market area based on the most recent census data released by 
     the United States Census Bureau.
       ``(D) For any satellite relied upon for certification under 
     this section, an affidavit stating that, to the best of the 
     affiant's knowledge, there have been no satellite or sub-
     system failures subsequent to the satellite's launch that 
     would degrade the design performance to such a degree that a 
     satellite transponder used to provide local service to any 
     such designated market area is precluded from delivering a 
     good quality satellite signal to at least 90 percent of the 
     households in such designated market area based on the most 
     recent census data released by the United States Census 
     Bureau.
       ``(E) Any additional engineering, designated market area, 
     or other information the Commission considers necessary to 
     determine whether the Commission shall grant a certification 
     under this section.
       ``(c) Certification Issuance.--
       ``(1) Public comment.--The Commission shall provide 30 days 
     for public comment on a request for certification under this 
     section.
       ``(2) Deadline for decision.--The Commission shall grant or 
     deny a request for certification within 90 days after the 
     date on which such request is filed.
       ``(d) Subsequent Affirmation.--An entity granted qualified 
     carrier status pursuant to section 119(g) of title 17, United 
     States Code, shall file an affidavit with the Commission 30 
     months after such status was granted stating that, to the 
     best of the affiant's knowledge, it is in compliance with the 
     requirements for a qualified carrier.
       ``(e) Definitions.--For the purposes of this section:
       ``(1) Designated market area.--The term `designated market 
     area' has the meaning given such term in section 122(j)(2)(C) 
     of title 17, United States Code.
       ``(2) Good quality satellite signal.--
       ``(A) In general.--The term ``good quality satellite 
     signal'' means--
       ``(i) a satellite signal whose power level as designed 
     shall achieve reception and demodulation of the signal at an 
     availability level of at least 99.7 percent using--

       ``(I) models of satellite antennas normally used by the 
     satellite carrier's subscribers; and
       ``(II) the same calculation methodology used by the 
     satellite carrier to determine predicted signal availability 
     in the top 100 designated market areas; and

       ``(ii) taking into account whether a signal is in standard 
     definition format or high definition format, compression 
     methodology, modulation, error correction, power level, and 
     utilization of advances in technology that do not circumvent 
     the intent of this section to provide for non-discriminatory 
     treatment with respect to any comparable television broadcast 
     station signal, a video signal transmitted by a satellite 
     carrier such that--

       ``(I) the satellite carrier treats all television broadcast 
     stations' signals the same with respect to statistical 
     multiplexer prioritization; and
       ``(II) the number of video signals in the relevant 
     satellite transponder is not more than the then current 
     greatest number of video signals carried on any equivalent 
     transponder serving the top 100 designated market areas.

       ``(B) Determination.--For the purposes of subparagraph (A), 
     the top 100 designated market areas shall be as determined by 
     Nielsen Media Research and published in the Nielsen Station 
     Index Directory and Nielsen Station Index United States 
     Television Household Estimates or any successor publication 
     as of the date of a satellite carrier's application for 
     certification under this section.''.

     SEC. 927. NONDISCRIMINATION IN CARRIAGE OF HIGH DEFINITION 
                   DIGITAL SIGNALS OF NONCOMMERCIAL EDUCATIONAL 
                   TELEVISION STATIONS.

       (a) In General.--Section 338(a) is amended by adding at the 
     end the following new paragraph:
       ``(5) Nondiscrimination in carriage of high definition 
     signals of noncommercial educational television stations.--
       ``(A) Existing carriage of high definition signals.--If, 
     before the date of enactment of the Satellite Television 
     Extension and Localism Act of 2010, an eligible satellite 
     carrier is providing, under section 122 of title 17, United 
     States Code, any secondary transmissions in high definition 
     format to subscribers located within the local market of a 
     television broadcast station of a primary transmission made 
     by that station, then such satellite carrier shall carry the 
     signals in high-definition format of qualified noncommercial 
     educational television stations located within that local 
     market in accordance with the following schedule:
       ``(i) By December 31, 2010, in at least 50 percent of the 
     markets in which such satellite carrier provides such 
     secondary transmissions in high definition format.
       ``(ii) By December 31, 2011, in every market in which such 
     satellite carrier provides such secondary transmissions in 
     high definition format.
       ``(B) New initiation of service.--If, on or after the date 
     of enactment of the Satellite Television Extension and 
     Localism Act of 2010, an eligible satellite carrier initiates 
     the provision, under section 122 of title 17, United States 
     Code, of any secondary transmissions in high definition 
     format to subscribers located within the local market of a 
     television broadcast station of a primary transmission made 
     by that station, then such satellite carrier shall carry the 
     signals in high-definition format of all qualified 
     noncommercial educational television stations located within 
     that local market.''.
       (b) Definitions.--Section 338(k) is amended--
       (1) by redesignating paragraphs (2) through (8) as 
     paragraphs (3) through (9), respectively;
       (2) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Eligible satellite carrier.--The term `eligible 
     satellite carrier' means any satellite carrier that is not a 
     party to a carriage contract that--
       ``(A) governs carriage of at least 30 qualified 
     noncommercial educational television stations; and
       ``(B) is in force and effect within 60 days after the date 
     of enactment of the Satellite Television Extension and 
     Localism Act of 2010.'';
       (3) by redesignating paragraphs (6) through (9) (as 
     previously redesignated) as paragraphs (7) through (10), 
     respectively; and
       (4) by inserting after paragraph (5) (as so redesignated) 
     the following new paragraph:
       ``(6) Qualified noncommercial educational television 
     station.--The term `qualified noncommercial educational 
     television station' means any full-power television broadcast 
     station that--
       ``(A) under the rules and regulations of the Commission in 
     effect on March 29, 1990, is licensed by the Commission as a 
     noncommercial educational broadcast station and is owned and 
     operated by a public agency, nonprofit foundation, nonprofit 
     corporation, or nonprofit association; and
       ``(B) has as its licensee an entity that is eligible to 
     receive a community service grant, or any successor grant 
     thereto, from the Corporation for Public Broadcasting, or any 
     successor organization thereto, on the basis of the formula 
     set forth in section 396(k)(6)(B) of this title.''.

     SEC. 928. SAVINGS CLAUSE REGARDING DEFINITIONS.

       Nothing in this subtitle or the amendments made by this 
     subtitle shall be construed to affect--
       (1) the meaning of the terms ``program related'' and 
     ``primary video'' under the Communications Act of 1934; or
       (2) the meaning of the term ``multicast'' in any 
     regulations issued by the Federal Communications Commission.

     SEC. 929. STATE PUBLIC AFFAIRS BROADCASTS.

       Section 335(b) is amended--
       (1) by inserting ``STATE PUBLIC AFFAIRS,'' after 
     ``EDUCATIONAL,'' in the heading;
       (2) by striking paragraph (1) and inserting the following:
       ``(1) Channel capacity required.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Commission shall require, as a condition of any 
     provision, initial authorization, or authorization renewal 
     for a provider of direct broadcast satellite service 
     providing video programming, that the provider of such 
     service reserve a portion of its channel capacity, equal to 
     not less than 4 percent nor more than 7 percent, exclusively 
     for noncommercial programming of an educational or 
     informational nature.
       ``(B) Requirement for qualified satellite provider.--The 
     Commission shall require, as a condition of any provision, 
     initial authorization, or authorization renewal for a 
     qualified satellite provider of direct broadcast satellite 
     service providing video programming, that such provider 
     reserve a portion of its channel capacity, equal to not less 
     than 3.5 percent nor more than 7 percent, exclusively for 
     noncommercial programming of an educational or informational 
     nature.'';
       (3) in paragraph (5), by striking ``For purposes of the 
     subsection--'' and inserting ``For purposes of this 
     subsection:''; and
       (4) by adding at the end of paragraph (5) the following:

[[Page S663]]

       ``(C) The term `qualified satellite provider' means any 
     provider of direct broadcast satellite service that--
       ``(i) provides the retransmission of the State public 
     affairs networks of at least 15 different States;
       ``(ii) offers the programming of State public affairs 
     networks upon reasonable prices, terms, and conditions as 
     determined by the Commission under paragraph (4); and
       ``(iii) does not delete any noncommercial programming of an 
     educational or informational nature in connection with the 
     carriage of a State public affairs network.
       ``(D) The term `State public affairs network' means a non-
     commercial non-broadcast network or a noncommercial 
     educational television station--
       ``(i) whose programming consists of information about State 
     government deliberations and public policy events; and
       ``(ii) that is operated by--

       ``(I) a State government or subdivision thereof;
       ``(II) an organization described in section 501(c)(3) of 
     the Internal Revenue Code of 1986 that is exempt from 
     taxation under section 501(a) of such Code and that is 
     governed by an independent board of directors; or
       ``(III) a cable system.''.

               Subtitle C--Reports and Savings Provision

     SEC. 931. DEFINITION.

       In this subtitle, the term ``appropriate Congressional 
     committees'' means the Committees on the Judiciary and on 
     Commerce, Science, and Transportation of the Senate and the 
     Committees on the Judiciary and on Energy and Commerce of the 
     House of Representatives.

     SEC. 932. REPORT ON MARKET BASED ALTERNATIVES TO STATUTORY 
                   LICENSING.

       Not later than 1 year after the date of the enactment of 
     this Act, and after consultation with the Federal 
     Communications Commission, the Register of Copyrights shall 
     submit to the appropriate Congressional committees a report 
     containing--
       (1) proposed mechanisms, methods, and recommendations on 
     how to implement a phase-out of the statutory licensing 
     requirements set forth in sections 111, 119, and 122 of title 
     17, United States Code, by making such sections inapplicable 
     to the secondary transmission of a performance or display of 
     a work embodied in a primary transmission of a broadcast 
     station that is authorized to license the same secondary 
     transmission directly with respect to all of the performances 
     and displays embodied in such primary transmission;
       (2) any recommendations for alternative means to implement 
     a timely and effective phase-out of the statutory licensing 
     requirements set forth in sections 111, 119, and 122 of title 
     17, United States Code; and
       (3) any recommendations for legislative or administrative 
     actions as may be appropriate to achieve such a phase-out.

     SEC. 933. REPORT ON COMMUNICATIONS IMPLICATIONS OF STATUTORY 
                   LICENSING MODIFICATIONS.

       (a) Study.--The Comptroller General shall conduct a study 
     that analyzes and evaluates the changes to the carriage 
     requirements currently imposed on multichannel video 
     programming distributors under the Communications Act of 1934 
     (47 U.S.C. 151 et seq.) and the regulations promulgated by 
     the Federal Communications Commission that would be required 
     or beneficial to consumers, and such other matters as the 
     Comptroller General deems appropriate, if Congress 
     implemented a phase-out of the current statutory licensing 
     requirements set forth under sections 111, 119, and 122 of 
     title 17, United States Code. Among other things, the study 
     shall consider the impact such a phase-out and related 
     changes to carriage requirements would have on consumer 
     prices and access to programming.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Comptroller General shall report 
     to the appropriate Congressional committees the results of 
     the study, including any recommendations for legislative or 
     administrative actions.

     SEC. 934. REPORT ON IN-STATE BROADCAST PROGRAMMING.

       Not later than 1 year after the date of the enactment of 
     this Act, the Federal Communications Commission shall submit 
     to the appropriate Congressional committees a report 
     containing an analysis of--
       (1) the number of households in a State that receive the 
     signals of local broadcast stations assigned to a community 
     of license that is located in a different State;
       (2) the extent to which consumers in each local market have 
     access to in-state broadcast programming over the air or from 
     a multichannel video programming distributor; and
       (3) whether there are alternatives to the use of designated 
     market areas, as defined in section 122 of title 17, United 
     States Code, to define local markets that would provide more 
     consumers with in-state broadcast programming.

     SEC. 935. LOCAL NETWORK CHANNEL BROADCAST REPORTS.

       (a) Requirement.--
       (1) In general.--On the 180th day after the date of the 
     enactment of this Act, and on each succeeding anniversary of 
     such 180th day, each satellite carrier shall submit an annual 
     report to the Federal Communications Commission setting 
     forth--
       (A) each local market in which it--
       (i) retransmits signals of 1 or more television broadcast 
     stations with a community of license in that market;
       (ii) has commenced providing such signals in the preceding 
     1-year period; and
       (iii) has ceased to provide such signals in the preceding 
     1-year period; and
       (B) detailed information regarding the use and potential 
     use of satellite capacity for the retransmission of local 
     signals in each local market.
       (2) Termination.--The requirement under paragraph (1) shall 
     cease after each satellite carrier has submitted 5 reports 
     under such paragraph.
       (b) FCC Study; Report.--
       (1) Study.--If no satellite carrier files a request for a 
     certification under section 342 of the Communications Act of 
     1934 (as added by section 926 of this title) within 180 days 
     after the date of the enactment of this Act, the Federal 
     Communications Commission shall initiate a study of--
       (A) incentives that would induce a satellite carrier to 
     provide the signals of 1 or more television broadcast 
     stations licensed to provide signals in local markets in 
     which the satellite carrier does not provide such signals; 
     and
       (B) the economic and satellite capacity conditions 
     affecting delivery of local signals by satellite carriers to 
     these markets.
       (2) Report.--Within 1 year after the date of the initiation 
     of the study under paragraph (1), the Federal Communications 
     Commission shall submit a report to the appropriate 
     Congressional committees containing its findings, 
     conclusions, and recommendations.
       (c) Definitions.--In this section--
       (1) the terms ``local market'' and ``satellite carrier'' 
     have the meaning given such terms in section 339(d) of the 
     Communications Act of 1934 (47 U.S.C. 339(d)); and
       (2) the term ``television broadcast station'' has the 
     meaning given such term in section 325(b)(7) of such Act (47 
     U.S.C. 325(b)(7)).

     SEC. 936. SAVINGS PROVISION REGARDING USE OF NEGOTIATED 
                   LICENSES.

       (a) In General.--Nothing in this title, title 17, United 
     States Code, the Communications Act of 1934, regulations 
     promulgated by the Register of Copyrights under this title or 
     title 17, United States Code, or regulations promulgated by 
     the Federal Communications Commission under this title or the 
     Communications Act of 1934 shall be construed to prevent a 
     multichannel video programming distributor from 
     retransmitting a performance or display of a work pursuant to 
     an authorization granted by the copyright owner or, if within 
     the scope of its authorization, its licensee.
       (b) Limitation.--Nothing in subsection (a) shall be 
     construed to affect any obligation of a multichannel video 
     programming distributor under section 325(b) of the 
     Communications Act of 1934 to obtain the authority of a 
     television broadcast station before retransmitting that 
     station's signal.

                        Subtitle D--Severability

     SEC. 941. SEVERABILITY.

       If any provision of this title, an amendment made by this 
     title, or the application of such provision or amendment to 
     any person or circumstance is held to be unconstitutional, 
     the remainder of this title, the amendments made by this 
     title, and the application of such provision or amendment to 
     any person or circumstance shall not be affected thereby.

                     TITLE X--ADDITIONAL PROVISIONS

     SEC. 1001. INCREASE IN THE MEDICARE PHYSICIAN PAYMENT UPDATE 
                   FOR THE LAST 10 MONTHS OF 2010.

       Paragraph (10) of section 1848(d) of the Social Security 
     Act, as added by section 1011(a) of the Department of Defense 
     Appropriations Act, 2010 (Public Law 111-118), is amended to 
     read as follows:
       ``(10) Update for 2010.--
       ``(A) In general.--Subject to paragraphs (7)(B), (8)(B), 
     and (9)(B), in lieu of the update to the single conversion 
     factor established in paragraph (1)(C) that would otherwise 
     apply for 2010, the update to the single conversion factor 
     shall be 0 percent for 2010.
       ``(B) No effect on computation of conversion factor for 
     2011 and subsequent years.--The conversion factor under this 
     subsection shall be computed under paragraph (1)(A) for 2011 
     and subsequent years as if subparagraph (A) had never 
     applied.''.

     SEC. 1002. NONAPPLICATION OF CERTAIN LABOR STANDARDS.

       Section 1601 of the American Recovery and Reinvestment Tax 
     Act of 2009 shall not apply to any specified tax credit bond 
     described in section 6431(f)(2)(A) of the Internal Revenue 
     Code of 1986 (as added by section 301 of this Act).

     SEC. 1003. E-VERIFY PROGRAM PARTICIPATION REQUIREMENT FOR 
                   EMPLOYERS RECEIVING PAYROLL TAX FORGIVENESS.

       (a) In General.--Paragraph (2) of section 3111(d), as added 
     by section 101, is amended by adding at the end the following 
     new subparagraph:
       ``(C) E-Verify program requirement.--The term `qualified 
     employer' shall not include any employer that does not 
     participate in the E-Verify Program carried out under 
     subtitle A of title IV of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 as of the hiring date of 
     any qualified individual.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply as if included in the amendments made by section 
     101 of this Act.

[[Page S664]]

              TITLE XI--DETERMINATION OF BUDGETARY EFFECTS

     SEC. 1101. DETERMINATION OF BUDGETARY EFFECTS.

       (a) In General.--The budgetary effects of this Act, for the 
     purpose of complying with the Statutory Pay-As-You-Go-Act of 
     2010, shall be determined by reference to the latest 
     statement titled ``Budgetary Effects of PAYGO Legislation'' 
     for this Act, submitted for printing in the Congressional 
     Record by the Chairman of the Senate Budget Committee, 
     provided that such statement has been submitted prior to the 
     vote on passage.
       (b) Emergency Designation.--For all of the provisions in 
     titles VI and VII, one-half of the amounts of the budgetary 
     effects are designated as an emergency requirement pursuant 
     to section 4(g) of the Statutory Pay-As-You-Go Act of 2010, 
     and designated as an emergency requirement pursuant to 
     section 403(a) of S. Con. Res. 13 (111th Congress), the 
     concurrent resolution on the budget for fiscal year 2010.
                                 ______
                                 
  SA 3321. Mr. BROWN of Ohio (for Mrs. Boxer (for herself and Mr. 
Feingold)) proposed an amendment to the resolution S. Res. 345, 
deploring the rape and assault of women in Guinea and the killing of 
political protesters; as follows:

       In paragraph (1) of the resolving clause, strike ``Guinea, 
     and calls for an immediate cessation of violence, including 
     gender-based violence and targeted killings by security 
     forces'' and insert ``Guinea''.
       Strike paragraphs (2) through (5) of the resolving clause 
     and insert the following:
       (2) urges the prosecution, by the appropriate authorities, 
     of those responsible for orchestrating or carrying out the 
     violence in Guinea;
       (3) urges the President, in coordination with leaders from 
     the European Union and the African Union, to continue to 
     consider punitive measures that could be taken against senior 
     officials in Guinea found to be complicit in the violence, 
     and in particular, the atrocities perpetrated against women 
     and other gross human rights violations;
       (4) encourages the President to remain actively engaged in 
     the political situation in Guinea, and to continue to convey 
     that the blatant abuse of women will not be tolerated;
       (5) calls on President Blaise Compaore of Burkina Faso to 
     ensure that Captain Camara does not return to Guinea in order 
     to allow a peaceful transition to civilian rule;
       (6) notes that the first steps set forth in the Joint 
     Declaration of Ouagadougou have been initiated with the 
     naming of a prime minister and urges all parties to continue 
     to adhere to the agreement to see the process through free, 
     fair, and timely elections; and
       (7) recognizes the importance of the multilateral observer 
     mission to help ensure peace and security in Guinea during 
     the period of transition.
                                 ______
                                 
  SA 3322. Mr. BROWN of Ohio (for Mrs. Boxer (for herself and Mr. 
Feingold)) proposed an amendment to the resolution S. Res. 345, 
deploring the rape and assault of women in Guinea and the killing of 
political protesters; as follows:

       Strike the 2nd whereas clause of the preamble and insert 
     the following:
       Whereas, on September 28, 2009, authorities of the 
     Government of Guinea opened fire on a crowd of thousands of 
     unarmed opposition protesters who were gathered in and around 
     an outdoor stadium to protest statements made by Captain 
     Camara that he may run for president, after he said that he 
     would not;
       Strike the 3rd whereas clause of the preamble and insert 
     the following:
       Whereas, on September 29, 2009, the United States 
     Department of State condemned the brazen and inappropriate 
     use of force by the military against civilians in Guinea, and 
     demanded the immediate release of opposition leaders and a 
     return to civilian rule as soon as possible;
       Whereas, according to the United Nations Security Council 
     Report of the International Commission of Inquiry Mandated to 
     Establish the Facts and Circumstances of the Events of 28 
     September 2009 in Guinea, 156 people were killed or 
     disappeared and at least 109 women and girls ``were subjected 
     to rape and other sexual violence, including sexual 
     mutilation and sexual slavery'';
       Strike the 5th whereas clause of the preamble.
       Strike the 6th whereas clause of the preamble.
       Insert between the 7th and 8th whereas clauses of the 
     preamble, the following:
       Whereas, according to the humanitarian organization CARE, 
     ``What happened in Guinea is an outrage--and a stark reminder 
     of a larger epidemic of violence against women and girls 
     around the world.'';
       In the 8th whereas clause of the preamble, strike the 
     ``and'' at the end.
       Strike the 9th whereas clause of the preamble, and insert 
     the following:
       Whereas the International Commission of Inquiry of the 
     United Nations concluded that ``the crimes perpetrated on 28 
     September 2009 and in the immediate aftermath can be 
     described as crimes against humanity'' and that there is 
     sufficient evidence that Captain Camara ``incurred individual 
     criminal liability and command responsibility for the events 
     that occurred during the attack and related events in their 
     immediate aftermath'';
       Whereas, on January 15, 2010, General Sekouba Konate and 
     Captain Camara of the Republic of Guinea and President Blaise 
     Compaore of Burkina Faso signed the Joint Declaration of 
     Ouagadougou pledging to form a transitional government of 
     national unity in Guinea, to hold elections within six months 
     without the participation of candidates from the military 
     junta, and to permit the entry of an international observer 
     mission from the Economic Community of West African States; 
     and
       Whereas, in accordance with the Joint Declaration of 
     Ouagadougou, a prime minister from the coalition of 
     opposition forces, Forces Vives, has been named to the 
     transitional government: Now, therefore, be it
                                 ______
                                 
  SA 3323. Mr. BROWN of Ohio (for Mrs. Boxer (for herself and Mr. 
Feingold)) proposed an amendment to the resolution S. Res. 345, 
deploring the rape and assault of women in Guinea and the killing of 
political protesters; as follows:

       Amend the title so as to read: ``A resolution deploring the 
     rape and assault of women in Guinea and the killing of 
     political protesters on September 28, 2009.''.

                          ____________________