[Congressional Record Volume 156, Number 83 (Friday, May 28, 2010)]
[House]
[Pages H4101-H4187]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TAX EXTENDERS ACT OF 2009
Mr. LEVIN. Mr. Speaker, pursuant to House Resolution 1403, I call up
the bill (H.R. 4213) to amend the Internal Revenue Code of 1986 to
extend certain expiring provisions, and for other purposes, with the
Senate amendment thereto, and have a motion at the desk.
The Clerk read the title of the bill.
The SPEAKER pro tempore. The Clerk will designate the Senate
amendment.
The text of the Senate amendment is as follows:
Senate amendment:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF
CONTENTS.
(a) Short Title.--This Act may be cited as the ``American
Workers, State, and Business Relief Act of 2010''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; amendment of 1986 Code; table of contents.
TITLE I--EXTENSION OF EXPIRING PROVISIONS
Subtitle A--Energy
Sec. 101. Alternative motor vehicle credit for new qualified hybrid
motor vehicles other than passenger automobiles and light
trucks.
Sec. 102. Incentives for biodiesel and renewable diesel.
Sec. 103. Credit for electricity produced at certain open-loop biomass
facilities.
Sec. 104. Credit for refined coal facilities.
Sec. 105. Credit for production of low sulfur diesel fuel.
Sec. 106. Credit for producing fuel from coke or coke gas.
Sec. 107. New energy efficient home credit.
Sec. 108. Excise tax credits and outlay payments for alternative fuel
and alternative fuel mixtures.
Sec. 109. Special rule for sales or dispositions to implement FERC or
State electric restructuring policy for qualified
electric utilities.
Sec. 110. Suspension of limitation on percentage depletion for oil and
gas from marginal wells.
Subtitle B--Individual Tax Relief
PART I--Miscellaneous Provisions
Sec. 111. Deduction for certain expenses of elementary and secondary
school teachers.
Sec. 112. Additional standard deduction for State and local real
property taxes.
Sec. 113. Deduction of State and local sales taxes.
Sec. 114. Contributions of capital gain real property made for
conservation purposes.
Sec. 115. Above-the-line deduction for qualified tuition and related
expenses.
Sec. 116. Tax-free distributions from individual retirement plans for
charitable purposes.
Sec. 117. Look-thru of certain regulated investment company stock in
determining gross estate of nonresidents.
PART II--Low-Income Housing Credits
Sec. 121. Election for refundable low-income housing credit for 2010.
Subtitle C--Business Tax Relief
Sec. 131. Research credit.
Sec. 132. Indian employment tax credit.
Sec. 133. New markets tax credit.
Sec. 134. Railroad track maintenance credit.
Sec. 135. Mine rescue team training credit.
Sec. 136. Employer wage credit for employees who are active duty
members of the uniformed services.
Sec. 137. 5-year depreciation for farming business machinery and
equipment.
Sec. 138. 15-year straight-line cost recovery for qualified leasehold
improvements, qualified restaurant buildings and
improvements, and qualified retail improvements.
Sec. 139. 7-year recovery period for motorsports entertainment
complexes.
Sec. 140. Accelerated depreciation for business property on an Indian
reservation.
Sec. 141. Enhanced charitable deduction for contributions of food
inventory.
Sec. 142. Enhanced charitable deduction for contributions of book
inventories to public schools.
Sec. 143. Enhanced charitable deduction for corporate contributions of
computer inventory for educational purposes.
Sec. 144. Election to expense mine safety equipment.
Sec. 145. Special expensing rules for certain film and television
productions.
Sec. 146. Expensing of environmental remediation costs.
Sec. 147. Deduction allowable with respect to income attributable to
domestic production activities in Puerto Rico.
Sec. 148. Modification of tax treatment of certain payments to
controlling exempt organizations.
Sec. 149. Exclusion of gain or loss on sale or exchange of certain
brownfield sites from unrelated business income.
Sec. 150. Timber REIT modernization.
Sec. 151. Treatment of certain dividends and assets of regulated
investment companies.
Sec. 152. RIC qualified investment entity treatment under FIRPTA.
Sec. 153. Exceptions for active financing income.
Sec. 154. Look-thru treatment of payments between related controlled
foreign corporations under foreign personal holding
company rules.
Sec. 155. Reduction in corporate rate for qualified timber gain.
Sec. 156. Basis adjustment to stock of S corps making charitable
contributions of property.
Sec. 157. Empowerment zone tax incentives.
Sec. 158. Tax incentives for investment in the District of Columbia.
Sec. 159. Renewal community tax incentives.
Sec. 160. Temporary increase in limit on cover over of rum excise taxes
to Puerto Rico and the Virgin Islands.
Sec. 161. American Samoa economic development credit.
Subtitle D--Temporary Disaster Relief Provisions
PART I--National Disaster Relief
Sec. 171. Waiver of certain mortgage revenue bond requirements.
Sec. 172. Losses attributable to federally declared disasters.
Sec. 173. Special depreciation allowance for qualified disaster
property.
Sec. 174. Net operating losses attributable to federally declared
disasters.
Sec. 175. Expensing of qualified disaster expenses.
[[Page H4102]]
PART II--Regional Provisions
subpart a--new york liberty zone
Sec. 181. Special depreciation allowance for nonresidential and
residential real property.
Sec. 182. Tax-exempt bond financing.
subpart b--go zone
Sec. 183. Special depreciation allowance.
Sec. 184. Increase in rehabilitation credit.
Sec. 185. Work opportunity tax credit with respect to certain
individuals affected by Hurricane Katrina for employers
inside disaster areas.
subpart c--midwestern disaster areas
Sec. 191. Special rules for use of retirement funds.
Sec. 192. Exclusion of cancellation of mortgage indebtedness.
TITLE II--UNEMPLOYMENT INSURANCE, HEALTH, AND OTHER PROVISIONS
Subtitle A--Unemployment Insurance
Sec. 201. Extension of unemployment insurance provisions.
Subtitle B--Health Provisions
Sec. 211. Extension and improvement of premium assistance for COBRA
benefits.
Sec. 212. Extension of therapy caps exceptions process.
Sec. 213. Treatment of pharmacies under durable medical equipment
accreditation requirements.
Sec. 214. Enhanced payment for mental health services.
Sec. 215. Extension of ambulance add-ons.
Sec. 216. Extension of geographic floor for work.
Sec. 217. Extension of payment for technical component of certain
physician pathology services.
Sec. 218. Extension of outpatient hold harmless provision.
Sec. 219. EHR Clarification.
Sec. 220. Extension of reimbursement for all Medicare part B services
furnished by certain Indian hospitals and clinics.
Sec. 221. Extension of certain payment rules for long-term care
hospital services and of moratorium on the establishment
of certain hospitals and facilities.
Sec. 222. Extension of the Medicare rural hospital flexibility program.
Sec. 223. Extension of section 508 hospital reclassifications.
Sec. 224. Technical correction related to critical access hospital
services.
Sec. 225. Extension for specialized MA plans for special needs
individuals.
Sec. 226. Extension of reasonable cost contracts.
Sec. 227. Extension of particular waiver policy for employer group
plans.
Sec. 228. Extension of continuing care retirement community program.
Sec. 229. Funding outreach and assistance for low-income programs.
Sec. 230. Family-to-family health information centers.
Sec. 231. Implementation funding.
Sec. 232. Extension of ARRA increase in FMAP.
Sec. 233. Extension of gainsharing demonstration.
Subtitle C--Other Provisions
Sec. 241. Extension of use of 2009 poverty guidelines.
Sec. 242. Refunds disregarded in the administration of Federal programs
and federally assisted programs.
Sec. 243. State court improvement program.
Sec. 244. Extension of national flood insurance program.
Sec. 245. Emergency disaster assistance.
Sec. 246. Small business loan guarantee enhancement extensions.
TITLE III--PENSION FUNDING RELIEF
Subtitle A--Single Employer Plans
Sec. 301. Extended period for single-employer defined benefit plans to
amortize certain shortfall amortization bases.
Sec. 302. Application of extended amortization period to plans subject
to prior law funding rules.
Sec. 303. Lookback for certain benefit restrictions.
Sec. 304. Lookback for credit balance rule for plans maintained by
charities.
Subtitle B--Multiemployer Plans
Sec. 311. Adjustments to funding standard account rules.
TITLE IV--OFFSET PROVISIONS
Subtitle A--Black Liquor
Sec. 401. Exclusion of unprocessed fuels from the cellulosic biofuel
producer credit.
Sec. 402. Prohibition on alternative fuel credit and alternative fuel
mixture credit for black liquor.
Subtitle B--Homebuyer Credit
Sec. 411. Technical modifications to homebuyer credit.
Subtitle C--Economic Substance
Sec. 421. Codification of economic substance doctrine; penalties.
Subtitle D--Additional Provisions
Sec. 431. Revision to the Medicare Improvement Fund.
TITLE V--SATELLITE TELEVISION EXTENSION
Sec. 500. Short title.
Subtitle A--Statutory Licenses
Sec. 501. Reference.
Sec. 502. Modifications to statutory license for satellite carriers.
Sec. 503. Modifications to statutory license for satellite carriers in
local markets.
Sec. 504. Modifications to cable system secondary transmission rights
under section 111.
Sec. 505. Certain waivers granted to providers of local-into-local
service for all DMAs.
Sec. 506. Copyright Office fees.
Sec. 507. Termination of license.
Sec. 508. Construction.
Subtitle B--Communications Provisions
Sec. 521. Reference.
Sec. 522. Extension of authority.
Sec. 523. Significantly viewed stations.
Sec. 524. Digital television transition conforming amendments.
Sec. 525. Application pending completion of rulemakings.
Sec. 526. Process for issuing qualified carrier certification.
Sec. 527. Nondiscrimination in carriage of high definition digital
signals of noncommercial educational television stations.
Sec. 528. Savings clause regarding definitions.
Sec. 529. State public affairs broadcasts.
Subtitle C--Reports and Savings Provision
Sec. 531. Definition.
Sec. 532. Report on market based alternatives to statutory licensing.
Sec. 533. Report on communications implications of statutory licensing
modifications.
Sec. 534. Report on in-state broadcast programming.
Sec. 535. Local network channel broadcast reports.
Sec. 536. Savings provision regarding use of negotiated licenses.
Sec. 537. Effective date; noninfringement of copyright.
Subtitle D--Severability
Sec. 541. Severability.
TITLE VI--OTHER PROVISIONS
Sec. 601. Increase in the Medicare physician payment update.
Sec. 602. Election to temporarily utilize unused AMT credits determined
by domestic investment.
Sec. 603. Information reporting for rental property expense payments.
Sec. 604. Extension of low-income housing credit rules for buildings in
GO zones.
Sec. 605. Increase in information return penalties.
Sec. 606. Tax-exempt bond financing.
Sec. 607. Application of levy to payments to Federal vendors relating
to property.
Sec. 608. Election for refundable low-income housing credit for 2010.
Sec. 609. Low-income housing grant election.
Sec. 610. Rollovers from elective deferral plans to Roth designated
accounts.
Sec. 611. Modification of standards for windows, doors, and skylights
with respect to the credit for nonbusiness energy
property.
Sec. 612. Participants in government section 457 plans allowed to treat
elective deferrals as Roth contributions.
Sec. 613. Extension of special allowance for certain property.
Sec. 614. Application of bad checks penalty to electronic payments.
Sec. 615. Grants for energy efficient appliances in lieu of tax credit.
Sec. 616. Budgetary effects of legislation passed by the Senate.
Sec. 617. Senate spending disclosure.
Sec. 618. Allocation of geothermal receipts.
Sec. 619. Qualifying timber contract options.
Sec. 620. ARRA planning and reporting.
Sec. 621. GAO study.
Sec. 622. Extension and modification of section 45 credit for refined
coal from steel industry fuel.
Sec. 623. Modifications to mine rescue team training credit and
election to expense advanced mine safety equipment.
Sec. 624. Application of continuous levy to employment tax liability of
certain Federal contractors.
TITLE VII--DETERMINATION OF BUDGETARY EFFECTS
Sec. 701. Determination of budgetary effects.
TITLE I--EXTENSION OF EXPIRING PROVISIONS
Subtitle A--Energy
SEC. 101. 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. 102. 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.
[[Page H4103]]
SEC. 103. 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. 104. 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. 105. 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. 106. 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. 107. 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. 108. 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. 109. 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. 110. 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. 111. 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. 112. 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. 113. 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. 114. 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. 115. 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. 116. 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. 117. 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. 121. 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. 131. 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. 132. 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. 133. NEW MARKETS TAX CREDIT.
(a) In General.--Subparagraph (F) of section 45D(f)(1) is
amended by inserting ``and 2010'' after ``2009''.
(b) Conforming Amendment.--Paragraph (3) of section 45D(f)
is amended by striking ``2014'' and inserting ``2015''.
(c) Effective Date.--The amendments made by this section
shall apply to calendar years beginning after 2009.
SEC. 134. 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. 135. 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. 136. 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. 137. 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.
[[Page H4104]]
SEC. 138. 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. 139. 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. 140. 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. 141. 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. 142. 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. 143. 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. 144. 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. 145. 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. 146. 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. 147. 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. 148. 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. 149. 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. 150. 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 on or before the termination date''.
(2) Clause (iii) of section 856(c)(5)(H) is amended by
inserting ``in taxable years beginning'' after
``dispositions''.
(3) Clause (v) of section 857(b)(6)(D) is amended by
inserting ``in a taxable year beginning'' after ``sale''.
(4) Subparagraph (G) of section 857(b)(6) is amended by
inserting ``in a taxable year beginning'' after ``In the case
of a sale''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending after May 22, 2009.
SEC. 151. 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. 152. 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. 153. 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. 154. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED
CONTROLLED FOREIGN CORPORATIONS UNDER FOREIGN
PERSONAL HOLDING COMPANY RULES.
(a) In General.--Subparagraph (C) of section 954(c)(6) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2009, and to taxable years of
United States shareholders with or within which any such
taxable year of such foreign corporation ends.
SEC. 155. REDUCTION IN CORPORATE RATE FOR QUALIFIED TIMBER
GAIN.
(a) In General.--Paragraph (1) of section 1201(b) is
amended by striking ``ending'' and all that follows through
``such date''.
(b) Conforming Amendment.--Paragraph (3) of section 1201(b)
is amended to read as follows:
``(3) Application of subsection.--The qualified timber gain
for any taxable year shall not exceed the qualified timber
gain which would be determined by not taking into account any
portion of such taxable year after December 31, 2010.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending after May 22, 2009.
SEC. 156. 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. 157. 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,
[[Page H4105]]
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. 158. 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. 159. 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. 160. 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. 161. 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. 171. 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. 172. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED
DISASTERS.
(a) In General.--Subclause (I) of section 165(h)(3)(B)(i)
is amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) $500 Limitation.--Paragraph (1) of section 165(h) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(c) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply to federally declared disasters occurring after
December 31, 2009.
(2) $500 limitation.--The amendment made by subsection (b)
shall apply to taxable years beginning after December 31,
2009.
SEC. 173. 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. 174. 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. 175. 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. 181. 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. 182. 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. 183. 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. 184. INCREASE IN REHABILITATION CREDIT.
(a) In General.--Subsection (h) of section 1400N is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid or incurred after December 31,
2009.
SEC. 185. WORK OPPORTUNITY TAX CREDIT WITH RESPECT TO CERTAIN
INDIVIDUALS AFFECTED BY HURRICANE KATRINA FOR
EMPLOYERS INSIDE DISASTER AREAS.
(a) In General.--Paragraph (1) of section 201(b) of the
Katrina Emergency Tax Relief Act
[[Page H4106]]
of 2005 is amended by striking ``4-year'' and inserting ``5-
year''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to individuals hired after August 27, 2009.
Subpart C--Midwestern Disaster Areas
SEC. 191. 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. 192. 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 II--UNEMPLOYMENT INSURANCE, HEALTH, AND OTHER PROVISIONS
Subtitle A--Unemployment Insurance
SEC. 201. 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 ``April 5, 2010'' each place it appears and
inserting ``December 31, 2010'';
(B) in the heading for subsection (b)(2), by striking
``april 5, 2010'' and inserting ``december 31, 2010''; and
(C) in subsection (b)(3), by striking ``September 4, 2010''
and inserting ``May 31, 2011''.
(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 ``April 5, 2010'' and
inserting ``December 31, 2010'';
(B) in the heading for paragraph (2), by striking ``april
5, 2010'' and inserting ``december 31, 2010''; and
(C) in paragraph (3), by striking ``October 5, 2010'' and
inserting ``June 30, 2011''.
(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 ``April 5, 2010'' each place it appears and
inserting ``January 1, 2011''; and
(B) in subsection (c), by striking ``September 4, 2010''
and inserting ``June 1, 2011''.
(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 ``September 4, 2010'' and inserting ``May
31, 2011''.
(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 (C), by striking ``and'' at the end;
and
(2) by inserting after subparagraph (D) the following new
subparagraph:
``(E) the amendments made by section 201(a)(1) of the
American Workers, State, and Business Relief Act of 2010;
and''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
Temporary Extension Act of 2010.
Subtitle B--Health Provisions
SEC. 211. 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), as amended by
section 3 of the Temporary Extension Act of 2010, is amended
by striking ``March 31, 2010'' and inserting ``December 31,
2010''.
(b) Rules Relating to 2010 Extension.--Subsection (a) of
section 3001 of division B of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5), as amended by
subsection (b)(1)(C), is further amended by adding at the end
the following:
``(18) Rules related to 2010 extension.--
``(A) Election to pay premiums retroactively and maintain
cobra coverage.--In the case of any premium for a period of
coverage during an assistance eligible individual's 2010
transition period, such individual shall be treated for
purposes of any COBRA continuation provision as having timely
paid the amount of such premium if--
``(i) such individual's qualifying event was on or after
April 1, 2010 and prior to the date of enactment of this
paragraph, and
``(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
paragraph (16)(D)(ii) (as applied by subparagraph (D) of this
paragraph), 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).
``(B) Refunds and credits for retroactive premium
assistance eligibility.--In the case of an assistance
eligible individual who pays, with respect to any period of
COBRA continuation coverage during such individual's 2010
transition period, the premium amount for such coverage
without regard to paragraph (1)(A), rules similar to the
rules of paragraph (12)(E) shall apply.
``(C) 2010 transition period.--
``(i) In general.--For purposes of this paragraph, the term
`transition period' means, with respect to any assistance
eligible individual, any period of coverage if--
``(I) such assistance eligible individual experienced an
involuntary termination that was a qualifying event prior to
the date of enactment of the American Workers, State, and
Business Relief Act of 2010, and
``(II) paragraph (1)(A) applies to such period by reason of
the amendments made by section 211 of the American Workers,
State, and Business Relief Act of 2010.
``(ii) Construction.--Any period during the period
described in subclauses (I) and (II) of clause (i) for which
the applicable premium has been paid pursuant to subparagraph
(A) shall be treated as a period of coverage referred to in
such paragraph, irrespective of any failure to timely pay the
applicable premium (other than pursuant to subparagraph (A))
for such period.
``(D) Notification.--Notification provisions similar to the
provisions of paragraph (16)(E) shall apply for purposes of
this paragraph.''.
(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.
SEC. 212. 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 ``March 31, 2010'' and
inserting ``December 31, 2010''.
SEC. 213. 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.
[[Page H4107]]
(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. 214. 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. 215. 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. 216. 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. 217. 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''.
SEC. 218. EXTENSION OF OUTPATIENT HOLD HARMLESS PROVISION.
(a) In General.--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''.
(b) Permitting All Sole Community Hospitals To Be Eligible
for Hold Harmless.--Section 1833(t)(7)(D)(i)(III) of the
Social Security Act (42 U.S.C. 1395l(t)(7)(D)(i)(III)) is
amended by adding at the end the following new sentence: ``In
the case of covered OPD services furnished on or after
January 1, 2010, and before January 1, 2011, the preceding
sentence shall be applied without regard to the 100-bed
limitation.''.
SEC. 219. 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. 220. 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. 221. 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. 222. 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. 223. 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. 224. 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. 225. 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. 226. 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. 227. 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. 228. 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. 229. 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
[[Page H4108]]
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. 230. 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. 231. IMPLEMENTATION FUNDING.
For purposes of carrying out the provisions of, and
amendments made by, this Act 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.
SEC. 232. EXTENSION OF ARRA INCREASE IN FMAP.
Section 5001 of the American Recovery and Reinvestment Act
of 2009 (Public Law 111-5) is amended--
(1) in subsection (a)(3), by striking ``first calendar
quarter'' and inserting ``first 3 calendar quarters'';
(2) in subsection (c)--
(A) in paragraph (2)(B), by striking ``July 1, 2010'' and
inserting ``January 1, 2011'';
(B) in paragraph (3)(B)(i), by striking ``July 1, 2010''
each place it appears and inserting ``January 1, 2011''; and
(C) in paragraph (4)(C)(ii), by striking ``the 3-
consecutive-month period beginning with January 2010'' and
inserting ``any 3-consecutive-month period that begins after
December 2009 and ends before January 2011'';
(3) in subsection (g)--
(A) in paragraph (1), by striking ``September 30, 2011''
and inserting ``March 31, 2012'';
(B) in paragraph (2)--
(i) by inserting ``of such Act'' after ``1923''; and
(ii) by adding at the end the following new sentence:
``Voluntary contributions by a political subdivision to the
non-Federal share of expenditures under the State Medicaid
plan or to the non-Federal share of payments under section
1923 of the Social Security Act shall not be considered to be
required contributions for purposes of this section.''; and
(C) by adding at the end the following:
``(3) Certification by chief executive officer.--No
additional Federal funds shall be paid to a State as a result
of this section with respect to a calendar quarter occurring
during the period beginning on January 1, 2011, and ending on
June 30, 2011, unless, not later than 45 days after the date
of enactment of this paragraph, the chief executive officer
of the State certifies that the State will request and use
such additional Federal funds.''; and
(4) in subsection (h)(3), by striking ``December 31, 2010''
and inserting ``June 30, 2011''.
SEC. 233. EXTENSION OF GAINSHARING DEMONSTRATION.
(a) In General.--Subsection (d)(3) of section 5007 of the
Deficit Reduction Act of 2005 (Public Law 109-171) is amended
by inserting ``(or 21 months after the date of the enactment
of the American Workers, State, and Business Relief Act of
2010, in the case of a demonstration project in operation as
of October 1, 2008)'' after ``December 31, 2009''.
(b) Funding.--
(1) In general.--Subsection (f)(1) of such section is
amended by inserting ``and for fiscal year 2010,
$1,600,000,'' after ``$6,000,000,''.
(2) Availability.--Subsection (f)(2) of such section is
amended by striking ``2010'' and inserting ``2014 or until
expended''.
(c) Reports.--
(1) Quality improvement and savings.--Subsection (e)(3) of
such section is amended by striking ``December 1, 2008'' and
inserting ``18 months after the date of the enactment of the
American Workers, State, and Business Relief Act of 2010''.
(2) Final report.--Subsection (e)(4) of such section is
amended by striking ``May 1, 2010'' and inserting ``42 months
after the date of the enactment of the American Workers,
State, and Business Relief Act of 2010''.
Subtitle C--Other Provisions
SEC. 241. 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 31, 2010''; and
(2) by inserting ``for 2011'' after ``until updated poverty
guidelines''.
SEC. 242. 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:
``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. 243. 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. 244. 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 December 31, 2010, for
the date specified in each such section.''. The amendment
made by this section shall be considered to have taken effect
on February 28, 2010.
SEC. 245. EMERGENCY DISASTER ASSISTANCE.
(a) Definitions.--Except as otherwise provided in this
section, in this section:
(1) Disaster county.--
(A) In general.--The term ``disaster county'' means a
county included in the geographic area covered by a
qualifying natural disaster declaration for the 2009 crop
year.
(B) Exclusion.--The term ``disaster county'' does not
include a contiguous county.
(2) Eligible aquaculture producer.--The term ``eligible
aquaculture producer'' means an aquaculture producer that
during the 2009 calendar year, as determined by the
Secretary--
(A) produced an aquaculture species for which feed costs
represented a substantial percentage of the input costs of
the aquaculture operation; and
(B) experienced a substantial price increase of feed costs
above the previous 5-year average.
(3) Eligible producer.--The term ``eligible producer''
means an agricultural producer in a disaster county.
(4) Eligible specialty crop producer.--The term ``eligible
specialty crop producer'' means an agricultural producer
that, for the 2009 crop year, as determined by the
Secretary--
(A) produced, or was prevented from planting, a specialty
crop; and
(B) experienced crop losses in a disaster county due to
drought, excessive rainfall, or a related condition.
(5) Qualifying natural disaster declaration.--The term
``qualifying natural disaster declaration'' means a natural
disaster declared by the Secretary for production losses
under section 321(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1961(a)).
(6) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(7) Specialty crop.--The term ``specialty crop'' has the
meaning given the term in section 3 of the Specialty Crops
Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C.
1621 note).
(b) Supplemental Direct Payment.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use such sums as are
necessary to make supplemental payments under sections 1103
and 1303 of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 8713, 8753) to eligible producers on farms located in
disaster counties that had at least 1 crop of economic
significance (other than fruits and vegetables or crops
intended for grazing) suffer at least a 5-percent crop loss
due to a natural disaster, including quality losses, as
determined by the Secretary, in an amount equal to 90 percent
of the direct payment the eligible producers received for the
2009 crop year on the farm.
(2) ACRE program.--Eligible producers that received
payments under section 1105 of the
[[Page H4109]]
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8715)
for the 2009 crop year and that otherwise meet the
requirements of paragraph (1) shall be eligible to receive
supplemental payments under that paragraph in an amount equal
to 112.5 percent of the reduced direct payment the eligible
producers received for the 2009 crop year under section 1103
or 1303 of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 8713, 8753).
(3) Relationship to other law.--Assistance received under
this subsection shall be included in the calculation of farm
revenue for the 2009 crop year under section 531(b)(4)(A) of
the Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and
section 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C.
2497(b)(4)(A)).
(c) Specialty Crop Assistance.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$300,000,000, to remain available until September 30, 2011,
to carry out a program of grants to States to assist eligible
specialty crop producers for losses due to a natural disaster
affecting the 2009 crops, of which not more than--
(A) $150,000,000 shall be used to assist eligible specialty
crop producers in counties that have been declared a disaster
as the result of drought; and
(B) $150,000,000 shall be used to assist eligible specialty
crop producers in counties that have been declared a disaster
as the result of excessive rainfall or a related condition.
(2) Notification.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall notify the State
department of agriculture (or similar entity) in each State
of the availability of funds to assist eligible specialty
crop producers, including such terms as are determined by the
Secretary to be necessary for the equitable treatment of
eligible specialty crop producers.
(3) Provision of grants.--
(A) In general.--The Secretary shall make grants to States
for disaster counties on a pro rata basis based on the value
of specialty crop losses in those counties during the 2009
calendar year, as determined by the Secretary.
(B) Timing.--Not later than 120 days after the date of
enactment of this Act, the Secretary shall make grants to
States to provide assistance under this subsection.
(C) Maximum grant.--The maximum amount of a grant made to a
State for counties described in paragraph (1)(B) may not
exceed $40,000,000.
(4) Requirements.--The Secretary shall make grants under
this subsection only to States that demonstrate to the
satisfaction of the Secretary that the State will--
(A) use grant funds to assist eligible specialty crop
producers;
(B) provide assistance to eligible specialty crop producers
not later than 90 days after the date on which the State
receives grant funds; and
(C) not later than 30 days after the date on which the
State provides assistance to eligible specialty crop
producers, submit to the Secretary a report that describes--
(i) the manner in which the State provided assistance;
(ii) the amounts of assistance provided by type of
specialty crop; and
(iii) the process by which the State determined the levels
of assistance to eligible specialty crop producers.
(5) Prohibition.--An eligible specialty crop producer that
receives assistance under this subsection shall be ineligible
to receive assistance under subsection (b).
(6) Relation to other law.--Assistance received under this
subsection shall be included in the calculation of farm
revenue for the 2009 crop year under section 531(b)(4)(A) of
the Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and
section 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C.
2497(b)(4)(A)).
(d) Cottonseed Assistance.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$42,000,000 to provide supplemental assistance to eligible
producers and first-handlers of the 2009 crop of cottonseed
in a disaster county.
(2) General terms.--Except as otherwise provided in this
subsection, the Secretary shall provide disaster assistance
under this subsection under the same terms and conditions as
assistance provided under section 3015 of the Emergency
Agricultural Disaster Assistance Act of 2006 (title III of
Public Law 109-234; 120 Stat. 477).
(3) Distribution of assistance.--The Secretary shall
distribute assistance to first handlers for the benefit of
eligible producers in a disaster county in an amount equal to
the product obtained by multiplying--
(A) the payment rate, as determined under paragraph (4);
and
(B) the county-eligible production, as determined under
paragraph (5).
(4) Payment rate.--The payment rate shall be equal to the
quotient obtained by dividing--
(A) the sum of the county-eligible production, as
determined under paragraph (5); by
(B) the total funds made available to carry out this
subsection.
(5) County-eligible production.--The county-eligible
production shall be equal to the product obtained by
multiplying--
(A) the number of acres planted to cotton in the disaster
county, as reported to the Secretary by first-handlers;
(B) the expected cotton lint yield for the disaster county,
as determined by the Secretary based on the best available
information; and
(C) the national average seed-to-lint ratio, as determined
by the Secretary based on the best available information for
the 5 crop years immediately preceding the 2009 crop,
excluding the year in which the average ratio was the highest
and the year in which the average ratio was the lowest in
such period.
(e) Aquaculture Assistance.--
(1) Grant program.--
(A) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$25,000,000, to remain available until September 30, 2011, to
carry out a program of grants to States to assist eligible
aquaculture producers for losses associated with high feed
input costs during the 2009 calendar year.
(B) Notification.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall notify the State
department of agriculture (or similar entity) in each State
of the availability of funds to assist eligible aquaculture
producers, including such terms as are determined by the
Secretary to be necessary for the equitable treatment of
eligible aquaculture producers.
(C) Provision of grants.--
(i) In general.--The Secretary shall make grants to States
under this subsection on a pro rata basis based on the amount
of aquaculture feed used in each State during the 2008
calendar year, as determined by the Secretary.
(ii) Timing.--Not later than 120 days after the date of
enactment of this Act, the Secretary shall make grants to
States to provide assistance under this subsection.
(D) Requirements.--The Secretary shall make grants under
this subsection only to States that demonstrate to the
satisfaction of the Secretary that the State will--
(i) use grant funds to assist eligible aquaculture
producers;
(ii) provide assistance to eligible aquaculture producers
not later than 60 days after the date on which the State
receives grant funds; and
(iii) not later than 30 days after the date on which the
State provides assistance to eligible aquaculture producers,
submit to the Secretary a report that describes--
(I) the manner in which the State provided assistance;
(II) the amounts of assistance provided per species of
aquaculture; and
(III) the process by which the State determined the levels
of assistance to eligible aquaculture producers.
(2) Reduction in payments.--An eligible aquaculture
producer that receives assistance under this subsection shall
not be eligible to receive any other assistance under the
supplemental agricultural disaster assistance program
established under section 531 of the Federal Crop Insurance
Act (7 U.S.C. 1531) and section 901 of the Trade Act of 1974
(19 U.S.C. 2497) for any losses in 2009 relating to the same
species of aquaculture.
(3) Report to congress.--Not later than 240 days after the
date of enactment of this Act, the Secretary shall submit to
the appropriate committees of Congress a report that--
(A) describes in detail the manner in which this subsection
has been carried out; and
(B) includes the information reported to the Secretary
under paragraph (1)(D)(iii).
(f) Hawaii Transportation Cooperative.--Notwithstanding any
other provision of law, the Secretary shall use $21,000,000
of funds of the Commodity Credit Corporation to make a
payment to an agricultural transportation cooperative in the
State of Hawaii, the members of which are eligible to
participate in the commodity loan program of the Farm Service
Agency, for assistance to maintain and develop employment.
(g) Livestock Forage Disaster Program.--
(1) Definition of disaster county.--In this subsection:
(A) In general.--The term ``disaster county'' means a
county included in the geographic area covered by a
qualifying natural disaster declaration announced by the
Secretary in calendar year 2009.
(B) Inclusion.--The term ``disaster county'' includes a
contiguous county.
(2) Payments.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$50,000,000 to carry out a program to make payments to
eligible producers that had grazing losses in disaster
counties in calendar year 2009.
(3) Criteria.--
(A) In general.--Except as provided in subparagraph (B),
assistance under this subsection shall be determined under
the same criteria as are used to carry out the programs under
section 531(d) of the Federal Crop Insurance Act (7 U.S.C.
1531(d)) and section 901(d) of the Trade Act of 1974 (19
U.S.C. 2497(d)).
(B) Drought intensity.--For purposes of this subsection, an
eligible producer shall not be required to meet the drought
intensity requirements of section 531(d)(3)(D)(ii) of the
Federal Crop Insurance Act (7 U.S.C. 1531(d)(3)(D)(ii)) and
section 901(d)(3)(D)(ii) of the Trade Act of 1974 (19 U.S.C.
2497(d)(3)(D)(ii)).
(4) Amount.--Assistance under this subsection shall be in
an amount equal to 1 monthly payment using the monthly
payment rate under section 531(d)(3)(B) of the Federal Crop
Insurance Act (7 U.S.C. 1531(d)(3)(B)) and section
901(d)(3)(B) of the Trade Act of 1974 (19 U.S.C.
2497(d)(3)(B)).
(5) Relation to other law.--An eligible producer that
receives assistance under this subsection shall be ineligible
to receive assistance for 2009 grazing losses under the
program carried out under section 531(d) of the Federal Crop
Insurance Act (7 U.S.C. 1531(d)) and section 901(d) of the
Trade Act of 1974 (19 U.S.C. 2497(d)).
(h) Emergency Loans for Poultry Producers.--
(1) Definitions.--In this subsection:
(A) Announcement date.--The term ``announcement date''
means the date on which the Secretary announces the emergency
loan program under this subsection.
(B) Poultry integrator.--The term ``poultry integrator''
means a poultry integrator that
[[Page H4110]]
filed proceedings under chapter 11 of title 11, United States
Code, in United States Bankruptcy Court during the 30-day
period beginning on December 1, 2008.
(2) Loan program.--
(A) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$75,000,000, to remain available until expended, for the cost
of making no-interest emergency loans available to poultry
producers that meet the requirements of this subsection.
(B) Terms and conditions.--Except as otherwise provided in
this subsection, emergency loans under this subsection shall
be subject to such terms and conditions as are determined by
the Secretary.
(3) Loans.--
(A) In general.--An emergency loan made to a poultry
producer under this subsection shall be for the purpose of
providing financing to the poultry producer in response to
financial losses associated with the termination or
nonrenewal of any contract between the poultry producer and a
poultry integrator.
(B) Eligibility.--
(i) In general.--To be eligible for an emergency loan under
this subsection, not later than 90 days after the
announcement date, a poultry producer shall submit to the
Secretary evidence that--
(I) the contract of the poultry producer described in
subparagraph (A) was not continued; and
(II) no similar contract has been awarded subsequently to
the poultry producer.
(ii) Requirement to offer loans.--Notwithstanding any other
provision of law, if a poultry producer meets the eligibility
requirements described in clause (i), subject to the
availability of funds under paragraph (2)(A), the Secretary
shall offer to make a loan under this subsection to the
poultry producer with a minimum term of 2 years.
(4) Additional requirements.--
(A) In general.--A poultry producer that receives an
emergency loan under this subsection may use the emergency
loan proceeds only to repay the amount that the poultry
producer owes to any lender for the purchase, improvement, or
operation of the poultry farm.
(B) Conversion of the loan.--A poultry producer that
receives an emergency loan under this subsection shall be
eligible to have the balance of the emergency loan converted,
but not refinanced, to a loan that has the same terms and
conditions as an operating loan under subtitle B of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1941 et
seq.).
(i) State and Local Governments.--Section 1001(f)(6)(A) of
the Food Security Act of 1985 (7 U.S.C. 1308(f)(6)(A)) is
amended by inserting ``(other than the conservation reserve
program established under subchapter B of chapter 1 of
subtitle D of title XII of this Act)'' before the period at
the end.
(j) Administration.--
(1) Regulations.--
(A) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary shall promulgate such
regulations as are necessary to implement this section and
the amendment made by this section.
(B) Procedure.--The promulgation of the regulations and
administration of this section and the amendment made by this
section shall be made without regard to--
(i) the notice and comment provisions of section 553 of
title 5, United States Code;
(ii) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg. 13804),
relating to notices of proposed rulemaking and public
participation in rulemaking; and
(iii) chapter 35 of title 44, United States Code (commonly
known as the ``Paperwork Reduction Act'').
(C) Congressional review of agency rulemaking.--In carrying
out this paragraph, the Secretary shall use the authority
provided under section 808 of title 5, United States Code.
(2) Administrative costs.--Of the funds of the Commodity
Credit Corporation, the Secretary may use up to $10,000,000
to pay administrative costs incurred by the Secretary that
are directly related to carrying out this Act.
(3) Prohibition.--None of the funds of the Agricultural
Disaster Relief Trust Fund established under section 902 of
the Trade Act of 1974 (19 U.S.C. 2497a) may be used to carry
out this Act.
SEC. 246. 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'', $560,000,000, 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 ``March 28,
2010'' and inserting ``December 31, 2010''.
(3) Effective date for loan guarantees.--The amendment made
by paragraph (2) shall take effect on February 27, 2010.
TITLE III--PENSION FUNDING RELIEF
Subtitle A--Single Employer Plans
SEC. 301. 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--
``(I) give notice of the election to participants and
beneficiaries of the plan, and
``(II) inform the Pension Benefit Guaranty Corporation of
such election in such form and manner as the 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
restriction period 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
[[Page H4111]]
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 in a restriction
period with respect to an election 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) Annual limitation.--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) Limitation on years to which amounts carried for.--
No amount shall be carried under subclause (I) or (II) to a
plan year which begins after the first plan year following
the last plan year in the restriction period (or after the
second plan year following such last plan year in the case of
an election year with respect to which 15-year amortization
was elected under paragraph (2)(D)).
``(IV) 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
28, 2010.
``(iv) Exception for certain equity payments.--
``(I) In general.--There shall not be taken into account
under clause (i)(I) any amount includible in income with
respect to the granting after February 28, 2010, of service
recipient stock (within the meaning of section 409A of the
Internal Revenue Code of 1986) that, upon such grant, is
subject to a substantial risk of forfeiture (as defined under
section 83(c)(1) of such Code) for at least 5 years from the
date of such grant.
``(II) 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) Certain payments under existing contracts.--Any
remuneration consisting of nonqualified deferred
compensation, restricted stock, stock options, or stock
appreciation rights payable or granted under a written
binding contract that was in effect on March 1, 2010, and
which was not modified in any material respect before such
remuneration is paid.
``(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 excess (if any) of the
sum of the dividends declared during the plan year by the
plan sponsor plus the aggregate amount paid for the
redemption of stock of the plan sponsor redeemed during the
plan year over the greater of--
``(I) the adjusted net income (within the meaning of
section 4043) of the plan sponsor for the preceding plan
year, determined without regard to any reduction by reason of
interest, taxes, depreciation, or amortization, or
``(II) in the case of a plan sponsor that determined and
declared dividends in the same manner for at least 5
consecutive years immediately preceding such plan year, the
aggregate amount of dividends determined and declared for
such plan year using such manner.
``(ii) Only certain post-2009 dividends and redemptions
counted.--For purposes of clause (i), there shall only be
taken into account dividends declared, and redemptions
occurring, after February 28, 2010.
``(iii) Exception for intra-group dividends.--Dividends
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).
``(iv) Exception for certain redemptions.--Redemptions that
are made pursuant to a plan maintained with respect to
employees, or that are made on account of the death,
disability, or termination of employment of an employee or
shareholder, shall not be taken into account under clause
(i).
``(v) Exception for certain preferred stock.--
``(I) In general.--Dividends and redemptions with respect
to applicable preferred stock shall not be taken into account
under clause (i) to the extent that dividends accrue with
respect to such stock at a specified rate in all events and
without regard to the plan sponsor's income, and interest
accrues on any unpaid dividends with respect to such stock.
``(II) Applicable preferred stock.--For purposes of
subclause (I), the term `applicable preferred stock' means
preferred stock which was issued before March 1, 2010 (or
which was issued after such date and is held by an employee
benefit plan subject to the provisions of this title).
``(F) Other definitions and rules.--For purposes of this
paragraph--
``(i) Plan sponsor.--The term ` plan sponsor' includes any
member of the plan sponsor's controlled group (as defined in
section 302(d)(3)).
``(ii) Restriction period.--The term `restriction period'
means, with respect to any election year--
``(I) except as provided in subclause (II), the 3-year
period beginning with the election year (or, if later, the
first plan year beginning after December 31, 2009), and
``(II) if the plan sponsor elects 15-year amortization for
the shortfall amortization base for the election year, the 5-
year period beginning with the election year (or, if later,
the first plan year beginning after December 31, 2009).
``(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).''.
[[Page H4112]]
(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--
``(I) give notice of the election to participants and
beneficiaries of the plan, and
``(II) inform the Pension Benefit Guaranty Corporation of
such election in such form and manner as the 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
restriction period 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 in a restriction
period with respect to an election 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) Annual limitation.--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) Limitation on years to which amounts carried for.--
No amount shall be carried under subclause (I) or (II) to a
plan year which begins after the first plan year following
the last plan year in the restriction period (or after the
second plan year following such last plan year in the case of
an election year with respect to which 15-year amortization
was elected under paragraph (2)(D)).
``(IV) 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
28, 2010.
``(iv) Exception for certain equity payments.--
``(I) In general.--There shall not be taken into account
under clause (i)(I) any amount includible in income with
respect to the granting after February 28, 2010, of service
recipient stock (within the meaning of section 409A) that,
upon such grant, is subject to a substantial risk of
forfeiture (as defined under section 83(c)(1)) for at least 5
years from the date of such grant.
``(II) 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 H4113]]
``(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) Certain payments under existing contracts.--Any
remuneration consisting of nonqualified deferred
compensation, restricted stock, stock options, or stock
appreciation rights payable or granted under a written
binding contract that was in effect on March 1, 2010, and
which was not modified in any material respect before such
remuneration is paid.
``(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 excess (if any) of the
sum of the dividends declared during the plan year by the
plan sponsor plus the aggregate amount paid for the
redemption of stock of the plan sponsor redeemed during the
plan year over the greater of--
``(I) the adjusted net income (within the meaning of
section 4043 of the Employee Retirement Income Security Act
of 1974) of the plan sponsor for the preceding plan year,
determined without regard to any reduction by reason of
interest, taxes, depreciation, or amortization, or
``(II) in the case of a plan sponsor that determined and
declared dividends in the same manner for at least 5
consecutive years immediately preceding such plan year, the
aggregate amount of dividends determined and declared for
such plan year using such manner.
``(ii) Only certain post-2009 dividends and redemptions
counted.--For purposes of clause (i), there shall only be
taken into account dividends declared, and redemptions
occurring, after February 28, 2010.
``(iii) Exception for intra-group dividends.--Dividends
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).
``(iv) Exception for certain redemptions.--Redemptions that
are made pursuant to a plan maintained with respect to
employees, or that are made on account of the death,
disability, or termination of employment of an employee or
shareholder, shall not be taken into account under clause
(i).
``(v) Exception for certain preferred stock.--
``(I) In general.--Dividends and redemptions with respect
to applicable preferred stock shall not be taken into account
under clause (i) to the extent that dividends accrue with
respect to such stock at a specified rate in all events and
without regard to the plan sponsor's income, and interest
accrues on any unpaid dividends with respect to such stock.
``(II) Applicable preferred stock.--For purposes of
subclause (I), the term `applicable preferred stock' means
preferred stock which was issued before March 1, 2010 (or
which was issued after such date and is held by an employee
benefit plan subject to the provisions of title I of Employee
Retirement Income Security Act of 1974).
``(F) Other definitions and rules.--For purposes of this
paragraph--
``(i) Plan sponsor.--The term ` plan sponsor' includes any
member of the plan sponsor's controlled group (as defined in
section 412(d)(3)).
``(ii) Restriction period.--The term `restriction period'
means, with respect to any election year--
``(I) except as provided in subclause (II), the 3-year
period beginning with the election year (or, if later, the
first plan year beginning after December 31, 2009), and
``(II) if the plan sponsor elects 15-year amortization for
the shortfall amortization base for the election year, the 5-
year period beginning with the election year (or, if later,
the first plan year beginning after December 31, 2009).
``(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. 302. 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 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
[[Page H4114]]
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 (determined without regard to section 414(c) of the
Internal Revenue Code) 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. 303. 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.
SEC. 304. LOOKBACK FOR CREDIT BALANCE RULE FOR PLANS
MAINTAINED BY CHARITIES.
(a) Amendment to Erisa.--Paragraph (3) of section 303(f) of
the Employee Retirement Income Security Act of 1974 is
amended by adding the following at the end thereof:
``(D) Special rule for certain years of plans maintained by
charities.--
``(i) In general.--For purposes of applying subparagraph
(C) for plan years beginning after August 31, 2009, and
before September 1, 2011, the ratio determined under such
subparagraph for the preceding plan year shall be the greater
of--
``(I) such ratio, as determined without regard to this
subparagraph, or
``(II) the ratio for such plan for the plan year beginning
after August 31, 2007, and before September 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, 2008, and before January 1, 2011, and
``(II) clause (i)(II) shall apply based on the last plan
year beginning before September 1, 2007, as determined under
rules prescribed by the Secretary of the Treasury.
``(iii) Limitation to charities.--This subparagraph shall
not apply to any plan unless such plan is maintained
exclusively by one or more organizations described in section
501(c)(3) of the Internal Revenue Code of 1986.''.
(b) Amendment to Internal Revenue Code of 1986.--Paragraph
(3) of section 430(f) of the Internal Revenue Code of 1986 is
amended by adding the following at the end thereof:
``(D) Special rule for certain years of plans maintained by
charities.--
``(i) In general.--For purposes of applying subparagraph
(C) for plan years beginning after August 31, 2009, and
before September 1, 2011, the ratio determined under such
subparagraph for the preceding plan year of a plan shall be
the greater of--
``(I) such ratio, as determined without regard to this
subsection, or
``(II) the ratio for such plan for the plan year beginning
after August 31, 2007 and before September 1, 2008, as
determined under rules prescribed by the Secretary.
``(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 September 1, 2007, as determined under
rules prescribed by the Secretary.
``(iii) Limitation to charities.--This subparagraph shall
not apply to any plan unless such plan is maintained
exclusively by one or more organizations described in section
501(c)(3).''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to plan years
beginning after August 31, 2009.
(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, 2008.
Subtitle B--Multiemployer Plans
SEC. 311. 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 any experience loss or gain attributable
to net investment losses incurred in either or both of the
first two plan years ending after August 31, 2008, as an item
separate from other experience losses, to be amortized in
equal annual installments (until fully amortized) over the
period--
``(I) beginning with the plan year in which such portion is
first recognized in the actuarial value of assets, and
``(II) ending with the last plan year in the 30-plan year
period beginning with the plan year in which such net
investment loss was incurred.
``(ii) Coordination with extensions.--If this subparagraph
applies for any plan year--
``(I) no extension of the amortization period under clause
(i) shall be allowed under subsection (d), and
``(II) if an extension was granted under subsection (d) for
any plan year before the election to have this subparagraph
apply to the plan year, such extension shall not result in
such amortization period exceeding 30 years.
[[Page H4115]]
``(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 ending
after August 31, 2008, over a period of not more than 10
years,
``(II) provides that for either or both of the first 2 plan
years beginning after August 31, 2008, 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--
``(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
at least as high as such percentage and balances would have
been if the benefit increase had not been adopted, or
``(ii) the amendment is required as a condition of
qualification under part I of subchapter D of chapter 1 of
the Internal Revenue Code of 1986 or to comply with other
applicable law.
``(E) Reporting.--A plan sponsor of a plan to which this
paragraph applies shall--
``(i) give notice of such application to participants and
beneficiaries of the plan, and
``(ii) 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 any experience loss or gain attributable
to net investment losses incurred in either or both of the
first two plan years ending after August 31, 2008, as an item
separate from other experience losses, to be amortized in
equal annual installments (until fully amortized) over the
period--
``(I) beginning with the plan year in which such portion is
first recognized in the actuarial value of assets, and
``(II) ending with the last plan year in the 30-plan year
period beginning with the plan year in which such net
investment loss was incurred.
``(ii) Coordination with extensions.--If this subparagraph
applies for any plan year--
``(I) no extension of the amortization period under clause
(i) shall be allowed under subsection (d), and
``(II) if an extension was granted under subsection (d) for
any plan year before the election to have this subparagraph
apply to the plan year, such extension shall not result in
such amortization period exceeding 30 years.
``(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 ending
after August 31, 2008, over a period of not more than 10
years,
``(II) provides that for either or both of the first 2 plan
years beginning after August 31, 2008, 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
at least as high as such percentage and balances would have
been if the benefit increase had not been adopted, or
``(ii) the amendment is required as a condition of
qualification under part I of subchapter D or to comply with
other applicable law.
``(E) Reporting.--A plan sponsor of a plan to which this
paragraph applies shall--
``(i) give notice of such application to participants and
beneficiaries of the plan, and
``(ii) 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 ending
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 IV--OFFSET PROVISIONS
Subtitle A--Black Liquor
SEC. 401. 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. 402. 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.
[[Page H4116]]
Subtitle B--Homebuyer Credit
SEC. 411. 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:
``(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 C--Economic Substance
SEC. 421. 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 D--Additional Provisions
SEC. 431. 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 ``$12,740,000,000''.
TITLE V--SATELLITE TELEVISION EXTENSION
SEC. 500. SHORT TITLE.
This title may be cited as the ``Satellite Television
Extension and Localism Act of 2010''.
Subtitle A--Statutory Licenses
SEC. 501. 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.
[[Page H4117]]
SEC. 502. 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:
``(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 ``May 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 ``March 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 ``July 1, 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:
[[Page H4118]]
``(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 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 2010 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 ``March 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. 503. 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.--
[[Page H4119]]
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
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'
[[Page H4120]]
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. 504. 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.''.
(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
[[Page H4121]]
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:
``(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 2010
act.--In any case in which a cable system was making
secondary transmissions 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
[[Page H4122]]
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. 505. 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 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
[[Page H4123]]
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. 506. 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. 507. TERMINATION OF LICENSE.
Section 1003(a)(2)(A) of Public Law 111-118 is amended by
striking ``March 28, 2010'' and inserting ``December 31,
2014''.
SEC. 508. 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. 521. 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. 522. EXTENSION OF AUTHORITY.
Section 325(b) is amended--
(1) in paragraph (2)(C), by striking ``March 28, 2010'' and
inserting ``December 31, 2014''; and
(2) in paragraph (3)(C), by striking ``March 29, 2010''
each place it appears in clauses (ii) and (iii) and inserting
``January 1, 2015''.
SEC. 523. 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 210 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. 524. 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).
``(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
[[Page H4124]]
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 210 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 210 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. 525. 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 523 and section 524 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. 526. 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 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
[[Page H4125]]
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. 527. 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. 528. 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. 529. 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:
``(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. 531. 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. 532. 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. 533. 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
[[Page H4126]]
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. 534. 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. 535. 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 526 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. 536. 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.
SEC. 537. EFFECTIVE DATE; NONINFRINGEMENT OF COPYRIGHT.
(a) Effective Date.--Unless specifically provided
otherwise, this title, and the amendments made by this title,
shall take effect on February 27, 2010, and with the
exception of the reference in subsection (b), all references
to the date of enactment of this Act shall be deemed to refer
to February 27, 2010, unless otherwise specified.
(b) Noninfringement of Copyright.--The secondary
transmission of a performance or display of a work embodied
in a primary transmission is not an infringement of copyright
if it was made by a satellite carrier on or after February
27, 2010, and prior to enactment of this Act, and was in
compliance with the law as in existence on February 27, 2010.
Subtitle D--Severability
SEC. 541. 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 VI--OTHER PROVISIONS
SEC. 601. INCREASE IN THE MEDICARE PHYSICIAN PAYMENT UPDATE.
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--
(1) in subparagraph (A), by striking ``March 31, 2010'' and
inserting ``September 30, 2010''; and
(2) in subparagraph (B), by striking ``April 1, 2010'' and
inserting ``October 1, 2010''.
SEC. 602. ELECTION TO TEMPORARILY UTILIZE UNUSED AMT CREDITS
DETERMINED BY DOMESTIC INVESTMENT.
(a) In General.--Section 53 is amended by adding at the end
the following new subsection:
``(g) Election for Corporations With Unused Credits.--
``(1) In general.--If a corporation elects to have this
subsection apply, then notwithstanding any other provision of
law, the limitation imposed by subsection (c) for any such
taxable year shall be increased by the AMT credit adjustment
amount.
``(2) AMT credit adjustment amount.--For purposes of
paragraph (1), the term `AMT credit adjustment amount' means
with respect to any taxable year beginning in 2010, the
lesser of--
``(A) 50 percent of a corporation's minimum tax credit
determined under subsection (b), or
``(B) 10 percent of new domestic investments made during
such taxable year.
``(3) New domestic investments.--For purposes of this
subsection, the term `new domestic investments' means the
cost of qualified property (as defined in section
168(k)(2)(A)(i))--
``(A) the original use of which commences with the taxpayer
during the taxable year, and
``(B) which is placed in service in the United States by
the taxpayer during such taxable year.
``(4) Credit refundable.--For purposes of subsections (b)
and (c) of section 6401, the aggregate increase in the
credits allowable under part IV of subchapter A for any
taxable year resulting from the application of this
subsection shall be treated as allowed under subpart C of
such part (and not to any other subpart).
``(5) Election.--
``(A) In general.--An election under this subsection shall
be made at such time and in such manner as prescribed by the
Secretary, and once effective, may be revoked only with the
consent of the Secretary.
``(B) Interim elections.--Until such time as the Secretary
prescribes a manner for making an election under this
subsection, a taxpayer is treated as having made a valid
election by providing written notification to the Secretary
and the Commissioner of Internal Revenue of such election.
``(6) Treatment of certain partnership investments.--For
purposes of this subsection, any corporation's allocable
share of any new domestic investments by a partnership more
than 90 percent of the capital and profits interest in which
is owned by such corporation (directly or indirectly) at all
times during the taxable year in which an election under this
subsection is in effect shall be considered new domestic
investments of such corporation for such taxable year.
``(7) No double benefit.--Notwithstanding clause (iii)(II)
of section 172(b)(1)(H), any taxpayer which has previously
made an election under such section shall be deemed to have
revoked such election by the making of its first election
under this subsection.
``(8) Regulations.--The Secretary may issue such
regulations or other guidance as may be necessary or
appropriate to carry out this subsection, including to
prevent fraud and abuse under this subsection.
``(9) Termination.--This subsection shall not apply to any
taxable year that begins after December 31, 2010.''.
(b) Quick Refund of Refundable Credit.--Section 6425 is
amended by adding at the end the following new subsection:
``(e) Allowance of AMT Credit Adjustment Amount.--The
amount of an adjustment under this section as determined
under subsection (c)(2) for any taxable year may be increased
to the extent of the corporation's AMT credit adjustment
amount determined under section 53(g) for such taxable
year.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2009.
SEC. 603. INFORMATION REPORTING FOR RENTAL PROPERTY EXPENSE
PAYMENTS.
(a) In General.--Section 6041 is amended by adding at the
end the following new subsection:
``(h) Treatment of Rental Property Expense Payments.--
``(1) In general.--Solely for purposes of subsection (a)
and except as provided in paragraph (2), a person receiving
rental income from real estate shall be considered to be
engaged in a trade or business of renting property.
``(2) Exceptions.--Paragraph (1) shall not apply to--
``(A) any individual, including any individual who is an
active member of the uniformed services, if substantially all
rental income is derived from renting the principal residence
(within the meaning of section 121) of such individual on a
temporary basis,
[[Page H4127]]
``(B) any individual who receives rental income of not more
than the minimal amount, as determined under regulations
prescribed by the Secretary, and
``(C) any other individual for whom the requirements of
this section would cause hardship, as determined under
regulations prescribed by the Secretary.''.
(b) Effective Date.--The amendment made by this section
shall apply to payments made after December 31, 2010.
SEC. 604. EXTENSION OF LOW-INCOME HOUSING CREDIT RULES FOR
BUILDINGS IN GO ZONES.
Section 1400N(c)(5) is amended by striking ``January 1,
2011'' and inserting ``January 1, 2013''.
SEC. 605. INCREASE IN INFORMATION RETURN PENALTIES.
(a) Failure To File Correct Information Returns.--
(1) In general.--Subsections (a)(1), (b)(1)(A), and
(b)(2)(A) of section 6721 are each amended by striking
``$50'' and inserting ``$100''.
(2) Aggregate annual limitation.--Subsections (a)(1),
(d)(1)(A), and (e)(3)(A) of section 6721 are each amended by
striking ``$250,000'' and inserting ``$1,500,000''.
(b) Reduction Where Correction Within 30 Days.--
(1) In general.--Subparagraph (A) of section 6721(b)(1) is
amended by striking ``$15'' and inserting ``$30''.
(2) Aggregate annual limitation.--Subsections (b)(1)(B) and
(d)(1)(B) of section 6721 are each amended by striking
``$75,000'' and inserting ``$250,000''.
(c) Reduction Where Correction on or Before August 1.--
(1) In general.--Subparagraph (A) of section 6721(b)(2) is
amended by striking ``$30'' and inserting ``$60''.
(2) Aggregate annual limitation.--Subsections (b)(2)(B) and
(d)(1)(C) of section 6721are each amended by striking
``$150,000'' and inserting ``$500,000''.
(d) Aggregate Annual Limitations for Persons With Gross
Receipts of Not More Than $5,000,000.--Paragraph (1) of
section 6721(d) is amended--
(1) by striking ``$100,000'' in subparagraph (A) and
inserting ``$500,000'',
(2) by striking ``$25,000'' in subparagraph (B) and
inserting ``$75,000'', and
(3) by striking ``$50,000'' in subparagraph (C) and
inserting ``$200,000''.
(e) Penalty in Case of Intentional Disregard.--Paragraph
(2) of section 6721(e) is amended by striking ``$100'' and
inserting ``$250''.
(f) Adjustment for Inflation.--Section 6721 is amended by
adding at the end the following new subsection:
``(f) Adjustment for Inflation.--
``(1) In general.--For each fifth calendar year beginning
after 2012, each of the dollar amounts under subsections (a),
(b), (d) (other than paragraph (2)(A) thereof), and (e) shall
be increased by such dollar amount multiplied by the cost-of-
living adjustment determined under section 1(f)(3) determined
by substituting `calendar year 2011' for `calendar year 1992'
in subparagraph (B) thereof.
``(2) Rounding.--If any amount adjusted under paragraph
(1)--
``(A) is not less than $75,000 and is not a multiple of
$500, such amount shall be rounded to the next lowest
multiple of $500, and
``(B) is not described in subparagraph (A) and is not a
multiple of $10, such amount shall be rounded to the next
lowest multiple of $10.''.
(g) Effective Date.--The amendments made by this section
shall apply with respect to information returns required to
be filed on or after January 1, 2011.
SEC. 606. TAX-EXEMPT BOND FINANCING.
(a) In General.--Paragraphs (2)(D) and (7)(C) of section
1400N(a) are each amended by striking ``January 1, 2011'' and
inserting ``January 1, 2012''.
(b) Conforming Amendments.--Sections 702(d)(1) and 704(a)
of the Heartland Disaster Tax Relief Act of 2008 (Public Law
110-343; 122 Stat. 3913, 3919) are each amended by
striking``January 1, 2011'' each place it appears and
inserting ``January 1, 2012''.
SEC. 607. APPLICATION OF LEVY TO PAYMENTS TO FEDERAL VENDORS
RELATING TO PROPERTY.
(a) In General.--Section 6331(h)(3) is amended by striking
``goods or services'' and inserting ``property, goods, or
services''.
(b) Effective Date.--The amendment made by this section
shall apply to levies approved after the date of the
enactment of this Act.
SEC. 608. ELECTION FOR REFUNDABLE LOW-INCOME HOUSING CREDIT
FOR 2010.
Subsection (n) of section 42, as added by section 121, is
amended to read as follows:
``(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), plus any increase in
the State housing credit ceiling for 2010 made by reason of
section 1400N(c) (including as such section is applied by
reason of sections 702(d)(2) and 704(b) of the Tax Extenders
and Alternative Minimum Tax Relief Act of 2008), and
``(ii) 40 percent of the State housing credit ceiling for
2010 which is attributable to amounts described in clauses
(ii) and (iv) of such subsection, plus any increase in the
State housing credit ceiling for 2010 made by reason of the
application of such section 702(d)(2) and 704(b), multiplied
by
``(B) 10.
For purposes of subparagraph (A)(ii), in the case of any area
to which section 702(d)(2) or 704(b) of the Tax Extenders and
Alternative Minimum Tax Relief Act of 2008 applies, section
1400N(c)(1)(A) shall be applied without regard to clause (i).
``(3) Coordination with non-refundable credit.--For
purposes of this section, the amounts described in clauses
(i) through (iv) of subsection (h)(3)(C) with respect to any
State for 2010 shall each be reduced by so much of such
amount as is taken into account in determining the amount of
the credit allowed with respect to such State under paragraph
(1).
``(4) Special rule for basis.--Basis of a qualified low-
income building shall not be reduced by the amount of any
payment made under this subsection.
``(5) Payment of credit; use to finance low-income
buildings.--The Secretary shall pay to the housing credit
agency of each State an amount equal to the credit allowed
under paragraph (1). Rules similar to the rules of
subsections (c) and (d) of section 1602 of the American
Recovery and Reinvestment Tax Act of 2009 shall apply with
respect to any payment made under this paragraph, except that
such subsection (d) shall be applied by substituting `January
1, 2012' for `January 1, 2011'.''.
SEC. 609. LOW-INCOME HOUSING GRANT ELECTION.
(a) Clarification of Eligibility of Low-income Housing
Credits for Low-income Housing Grant Election.--Paragraph (1)
of section 1602(b) of the American Recovery and Reinvestment
Tax Act of 2009 is amended--
(1) by inserting ``, plus any increase in the State housing
credit ceiling for 2009 attributable to any State housing
credit ceiling returned in 2009 to the State by reason of
section 1400N(c) of such Code (including as such section is
applied by reason of sections 702(d)(2) and 704(b) of the Tax
Extenders and Alternative Minimum Tax Relief Act of 2008)''
after ``1986'' in subparagraph (A), and
(2) by inserting ``, plus any increase in the State housing
credit ceiling for 2009 attributable to any additional State
housing credit ceiling made by reason of the application of
such section 702(d)(2) and 704(b)'' after ``such section'' in
subparagraph (B).
(b) Application of Additional Housing Credit Amount for
Purposes of 2009 Grant Election.--Subsection (b) of section
1602 of the American Recovery and Reinvestment Tax Act of
2009, as amended by subsection (a), is amended by adding at
the end the following flush sentence:
``For purposes of paragraph (1)(B), in the case of any area
to which section 702(d)(2) or 704(b) of the Tax Extenders and
Alternative Minimum Tax Relief Act of 2008 applies, section
1400N(c)(1)(A) of such Code shall be applied without regard
to clause (i).''.
(c) Effective Date.--The amendments made by this section
shall apply as if included in the enactment of section 1602
of the American Recovery and Reinvestment Tax Act of 2009.
SEC. 610. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS TO ROTH
DESIGNATED ACCOUNTS.
(a) In General.--Section 402A(c) of the Internal Revenue
Code of 1986 is amended by adding at the end the following
new paragraph:
``(4) Taxable rollovers to designated roth accounts.--
``(A) In general.--Notwithstanding sections 402(c),
403(b)(8), and 457(e)(16), in the case of any distribution to
which this paragraph applies--
``(i) there shall be included in gross income any amount
which would be includible were it not part of a qualified
rollover contribution,
``(ii) section 72(t) shall not apply, and
``(iii) unless the taxpayer elects not to have this clause
apply, any amount required to be included in gross income for
any taxable year beginning in 2010 by reason of this
paragraph shall be so included ratably over the 2-taxable-
year period beginning with the first taxable year beginning
in 2011.
Any election under clause (iii) for any distributions during
a taxable year may not be changed after the due date for such
taxable year.
``(B) Distributions to which paragraph applies.--In the
case of an applicable retirement plan which includes a
qualified Roth contribution program, this paragraph shall
apply to a distribution from such plan other than from a
designated Roth account which is contributed in a qualified
rollover contribution to the designated Roth account
maintained under such plan for the benefit of the individual
to whom the distribution is made.
``(C) Other rules.--The rules of subparagraphs (D), (E),
and (F) of section 408A(d)(3) (as in effect for taxable years
beginning after 2009) shall apply for purposes of this
paragraph.''.
SEC. 611. MODIFICATION OF STANDARDS FOR WINDOWS, DOORS, AND
SKYLIGHTS WITH RESPECT TO THE CREDIT FOR
NONBUSINESS ENERGY PROPERTY.
(a) In General.--Paragraph (4) of section 25C(c) is amended
by striking ``unless'' and all that follows and inserting
``unless--
``(A) in the case of any component placed in service after
the date which is 90 days after the date of the enactment of
the American Workers, State, and Business Relief Act of 2010,
such component meets the criteria for such components
established by the 2010 Energy Star Program Requirements for
Residential Windows,
[[Page H4128]]
Doors, and Skylights, Version 5.0 (or any subsequent version
of such requirements which is in effect after January 4,
2010),
``(B) in the case of any component placed in service after
the date of the enactment of the American Workers, State, and
Business Relief Act of 2010 and on or before the date which
is 90 days after such date, such component meets the criteria
described in subparagraph (A) or is equal to or below a U
factor of 0.30 and SHGC of 0.30, and
``(C) in the case of any component which is a garage door,
such component is equal to or below a U factor of 0.30 and
SHGC of 0.30.''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. 612. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS
ALLOWED TO TREAT ELECTIVE DEFERRALS AS ROTH
CONTRIBUTIONS.
(a) In General.--Section 402A(e)(1) (defining applicable
retirement plan) is amended by striking ``and'' at the end of
subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, and'', and by adding at
the end the following:
``(C) an eligible deferred compensation plan (as defined in
section 457(b)) of an eligible employer described in section
457(e)(1)(A).''.
(b) Elective Deferrals.--Section 402A(e)(2) (defining
elective deferral) is amended to read as follows:
``(2) Elective deferral.--The term `elective deferral'
means--
``(A) any elective deferral described in subparagraph (A)
or (C) of section 402(g)(3), and
``(B) any elective deferral of compensation by an
individual under an eligible deferred compensation plan (as
defined in section 457(b)) of an eligible employer described
in section 457(e)(1)(A).''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2010.
SEC. 613. EXTENSION OF SPECIAL ALLOWANCE FOR CERTAIN
PROPERTY.
(a) In General.--Section 15345(d)(1)(D) of the Food
Conservation and Energy Act of 2008 (Public Law 110-246) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Conforming Amendment.--Section 15345(d)(1)(F) of such
Act is amended by striking ``January 1, 2008'' and inserting
``January 1, 2010''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in section 15345 of the Food
Conservation and Energy Act of 2008.
SEC. 614. APPLICATION OF BAD CHECKS PENALTY TO ELECTRONIC
PAYMENTS.
(a) In General.--Section 6657 is amended--
(1) by striking ``If any check or money order in payment of
any amount'' and inserting ``If any instrument in payment, by
any commercially acceptable means, of any amount'', and
(2) by striking ``such check'' each place it appears and
inserting ``such instrument''.
(b) Effective Dates.--The amendments made by this section
shall apply to instruments tendered after the date of the
enactment of this Act.
SEC. 615. GRANTS FOR ENERGY EFFICIENT APPLIANCES IN LIEU OF
TAX CREDIT.
In the case of any taxable year which includes the last day
of calendar year 2009 or calendar year 2010, a taxpayer who
elects to waive the credit which would otherwise be
determined with respect to the taxpayer under section 45M of
the Internal Revenue Code of 1986 for such taxable year shall
be treated as making a payment against the tax imposed under
subtitle A of such Code for such taxable year in an amount
equal to 85 percent of the amount of the credit which would
otherwise be so determined. Such payment shall be treated as
made on the later of the due date of the return of such tax
or the date on which such return is filed. Elections under
this section may be made separately for 2009 and 2010, but
once made shall be irrevocable.
SEC. 616. BUDGETARY EFFECTS OF LEGISLATION PASSED BY THE
SENATE.
(a) Establishment of Web Page.--
(1) In general.--Not later than 90 days after the enactment
of this Act, the Secretary of the Senate shall establish on
the official website of the United States Senate
(www.senate.gov) a page entitled ``Information on the
Budgetary Effects of Legislation Considered by the Senate''
which shall include--
(A) links to appropriate pages on the website of the
Congressional Budget Office (www.cbo.gov) that contain cost
estimates of legislation passed by the Senate; and
(B) as available, links to pages with any other information
produced by the Congressional Budget Office that summarize or
further explain the budgetary effects of legislation
considered by the Senate.
(2) Updates.--The Secretary of the Senate shall update this
page every 3 months.
(b) CBO Requirements.--Nothing in this section shall be
construed as imposing any new requirements on the
Congressional Budget Office.
SEC. 617. SENATE SPENDING DISCLOSURE.
(a) In General.--The Secretary of the Senate shall post
prominently on the front page of the public website of the
Senate (http://www.senate.gov/) the following information:
(1) The total amount of discretionary and direct spending
passed by the Senate that has not been paid for, including
emergency designated spending or spending otherwise exempted
from PAYGO requirements.
(2) The total amount of net spending authorized in
legislation passed by the Senate, as scored by CBO.
(3) The number of new government programs created in
legislation passed by the Senate.
(4) The totals for paragraphs (1) through (3) as passed by
both Houses of Congress and signed into law by the President.
(b) Display.--The information tallies required by
subsection (a) shall be itemized by bill and date, updated
weekly, and archived by calendar year.
(c) Effective Date.--The PAYGO tally required by subsection
(a)(1) shall begin with the date of enactment of the
Statutory Pay-As-You-Go Act of 2010 and the authorization
tally required by subsection (a)(2) shall apply to all
legislation passed beginning January 1, 2010.
SEC. 618. ALLOCATION OF GEOTHERMAL RECEIPTS.
Notwithstanding any other provision of law, for fiscal year
2010 only, all funds received from sales, bonuses, royalties,
and rentals under the Geothermal Steam Act of 1970 (30 U.S.C.
1001 et seq.) shall be deposited in the Treasury, of which--
(1) 50 percent shall be used by the Secretary of the
Treasury to make payments to States within the boundaries of
which the leased land and geothermal resources are located;
(2) 25 percent shall be used by the Secretary of the
Treasury to make payments to the counties within the
boundaries of which the leased land or geothermal resources
are located; and
(3) 25 percent shall be deposited in miscellaneous
receipts.
SEC. 619. QUALIFYING TIMBER CONTRACT OPTIONS.
(a) Definitions.--In this section:
(1) Qualifying contract.--The term ``qualifying contract''
means a contract that has not been terminated by the Bureau
of Land Management for the sale of timber on lands
administered by the Bureau of Land Management that meets all
of the following criteria:
(A) The contract was awarded during the period beginning on
January 1, 2005, and ending on December 31, 2008.
(B) There is unharvested volume remaining for the contract.
(C) The contract is not a salvage sale.
(D) The Secretary determined there is not an urgent need to
harvest under the contract due to deteriorating timber
conditions that developed after the award of the contract.
(2) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of Bureau of
Land Management.
(3) Timber purchaser.--The term ``timber purchaser'' means
the party to the qualifying contract for the sale of timber
from lands administered by the Bureau of Land Management.
(b) Market-related Contract Extension Option.--Upon a
timber purchaser's written request, the Secretary may make a
one-time modification to the qualifying contract to add 3
years to the contract expiration date if the written
request--
(1) is received by the Secretary not later than 90 days
after the date of enactment of this Act; and
(2) contains a provision releasing the United States from
all liability, including further consideration or
compensation, resulting from the modification under this
subsection of the term of a qualifying contract.
(c) Reporting.--Not later than 6 months after the date of
the enactment of this Act, the Secretary shall submit to
Congress a report detailing a plan and timeline to promulgate
new regulations authorizing the Bureau of Land Management to
extend timber contracts due to changes in market conditions.
(d) Regulations.--Not later than 2 years after the date of
the enactment of this Act, the Secretary shall promulgate new
regulations authorizing the Bureau of Land Management to
extend timber contracts due to changes in market conditions.
(e) No Surrender of Claims.--This section shall not have
the effect of surrendering any claim by the United States
against any timber purchaser that arose under a timber sale
contract, including a qualifying contract, before the date on
which the Secretary adjusts the contract term under
subsection (b).
SEC. 620. ARRA PLANNING AND REPORTING.
Section 1512 of the American Recovery and Reinvestment Act
of 2009 (Public Law 111-5; 123 Stat. 287) is amended--
(1) in subsection (d)--
(A) in the subsection heading, by inserting ``Plans and''
after ``Agency'';
(B) by striking ``Not later than'' and inserting the
following:
``(1) Definition.--In this subsection, the term `covered
program' means a program for which funds are appropriated
under this division--
``(A) in an amount that is--
``(i) more than $2,000,000,000; and
``(ii) more than 150 percent of the funds appropriated for
the program for fiscal year 2008; or
``(B) that did not exist before the date of enactment of
this Act.
``(2) Plans.--Not later than July 1, 2010, the head of each
agency that distributes recovery funds shall submit to
Congress and make available on the website of the agency a
plan for each covered program, which shall, at a minimum,
contain--
``(A) a description of the goals for the covered program
using recovery funds;
``(B) a discussion of how the goals described in
subparagraph (A) relate to the goals for ongoing activities
of the covered program, if applicable;
``(C) a description of the activities that the agency will
undertake to achieve the goals described in subparagraph (A);
``(D) a description of the total recovery funding for the
covered program and the recovery funding for each activity
under the covered program, including identifying whether the
activity will be carried out using grants, contracts, or
other types of funding mechanisms;
[[Page H4129]]
``(E) a schedule of milestones for major phases of the
activities under the covered program, with planned delivery
dates;
``(F) performance measures the agency will use to track the
progress of each of the activities under the covered program
in meeting the goals described in subparagraph (A), including
performance targets, the frequency of measurement, and a
description of the methodology for each measure;
``(G) a description of the process of the agency for the
periodic review of the progress of the covered program
towards meeting the goals described in subparagraph (A); and
``(H) a description of how the agency will hold program
managers accountable for achieving the goals described in
subparagraph (A).
``(3) Reports.--
``(A) In general.--Not later than''; and
(C) by adding at the end the following:
``(B) Reports on plans.--Not later than 30 days after the
end of the calendar quarter ending September 30, 2010, and
every calendar quarter thereafter during which the agency
obligates or expends recovery funds, the head of each agency
that developed a plan for a covered program under paragraph
(2) shall submit to Congress and make available on a website
of the agency a report for each covered program that--
``(i) discusses the progress of the agency in implementing
the plan;
``(ii) describes the progress towards achieving the goals
described in paragraph (2)(A) for the covered program;
``(iii) discusses the status of each activity carried out
under the covered program, including whether the activity is
completed;
``(iv) details the unobligated and unexpired balances and
total obligations and outlays under the covered program;
``(v) discusses--
``(I) whether the covered program has met the milestones
for the covered program described in paragraph (2)(E);
``(II) if the covered program has failed to meet the
milestones, the reasons why; and
``(III) any changes in the milestones for the covered
program, including the reasons for the change;
``(vi) discusses the performance of the covered program,
including--
``(I) whether the covered program has met the performance
measures for the covered program described in paragraph
(2)(F);
``(II) if the covered program has failed to meet the
performance measures, the reasons why; and
``(III) any trends in information relating to the
performance of the covered program; and
``(vii) evaluates the ability of the covered program to
meet the goals of the covered program given the performance
of the covered program.'';
(2) in subsection (f)--
(A) by striking ``Within 180 days'' and inserting the
following:
``(1) In general.--Within 180 days''; and
(B) by adding at the end the following:
``(2) Penalties.--
``(A) In general.--Subject to subparagraphs (B), (C), and
(D), the Attorney General may bring a civil action in an
appropriate United States district court against a recipient
of recovery funds from an agency that does not provide the
information required under subsection (c) or knowingly
provides information under subsection (c) that contains a
material omission or misstatement. In a civil action under
this paragraph, the court may impose a civil penalty on a
recipient of recovery funds in an amount not more than
$250,000. Any amounts received from a civil penalty under
this paragraph shall be deposited in the general fund of the
Treasury.
``(B) Notification.--
``(i) In general.--The head of an agency shall provide a
written notification to a recipient of recovery funds from
the agency that fails to provide the information required
under subsection (c). A notification under this subparagraph
shall provide the recipient with information on how to comply
with the necessary reporting requirements and notice of the
penalties for failing to do so.
``(ii) Limitation.--A court may not impose a civil penalty
under subparagraph (A) relating to the failure to provide
information required under subsection (c) if, not later than
31 days after the date of the notification under clause (i),
the recipient of the recovery funds provides the information.
``(C) Considerations.--In determining the amount of a
penalty under this paragraph for a recipient of recovery
funds, a court shall consider--
``(i) the number of times the recipient has failed to
provide the information required under subsection (c);
``(ii) the amount of recovery funds provided to the
recipient;
``(iii) whether the recipient is a government, nonprofit
entity, or educational institution; and
``(iv) whether the recipient is a small business concern
(as defined under section 3 of the Small Business Act (15
U.S.C. 632)), with particular consideration given to
businesses with not more than 50 employees.
``(D) Applicability.--This paragraph shall apply to any
report required to be submitted on or after the date of
enactment of this paragraph.
``(E) Nonexclusivity.--The imposition of a civil penalty
under this subsection shall not preclude any other criminal,
civil, or administrative remedy available to the United
States or any other person under Federal or State law.
``(3) Technical assistance.--Each agency distributing
recovery funds shall provide technical assistance, as
necessary, to assist recipients of recovery funds in
complying with the requirements to provide information under
subsection (c), which shall include providing recipients with
a reminder regarding each reporting requirement.
``(4) Public listing.--
``(A) In general.--Not later than 45 days after the end of
each calendar quarter, and subject to the notification
requirements under paragraph (2)(B), the Board shall make
available on the website established under section 1526 a
list of all recipients of recovery funds that did not provide
the information required under subsection (c) for the
calendar quarter.
``(B) Contents.--A list made available under subparagraph
(A) shall, for each recipient of recovery funds on the list,
include the name and address of the recipient, the
identification number for the award, the amount of recovery
funds awarded to the recipient, a description of the activity
for which the recovery funds were provided, and, to the
extent known by the Board, the reason for noncompliance.
``(5) Regulations and reporting.--
``(A) Regulations.--Not later than 90 days after the date
of enactment of this paragraph, the Attorney General, in
consultation with the Director of the Office of Management
and Budget and the Chairperson, shall promulgate regulations
regarding implementation of this section.
``(B) Reporting.--
``(i) In general.--Not later than July 1, 2010, and every 3
months thereafter, the Director of the Office of Management
and Budget, in consultation with the Chairperson, shall
submit to Congress a report on the extent of noncompliance by
recipients of recovery funds with the reporting requirements
under this section.
``(ii) Contents.--Each report submitted under clause (i)
shall include--
``(I) information, for the quarter and in total, regarding
the number and amount of civil penalties imposed and
collected under this subsection, sorted by agency and
program;
``(II) information on the steps taken by the Federal
Government to reduce the level of noncompliance; and
``(III) any other information determined appropriate by the
Director.''; and
(3) by adding at the end the following:
``(i) Termination.--The reporting requirements under this
section shall terminate on September 30, 2013.''.
SEC. 621. GAO STUDY.
Not later than 180 days after the date of enactment of this
Act, the Comptroller General shall report to Congress
detailing--
(1) the pattern of job loss in the New England and Midwest
States over the past 20 years;
(2) the role of the off-shoring of manufacturing jobs in
overall job loss in the regions; and
(3) recommendations to attract industries and bring jobs to
the region.
SEC. 622. EXTENSION AND MODIFICATION OF SECTION 45 CREDIT FOR
REFINED COAL FROM STEEL INDUSTRY FUEL.
(a) Credit Period.--
(1) In general.--Subclause (II) of section 45(e)(8)(D)(ii)
is amended to read as follows:
``(II) Credit period.--In lieu of the 10-year period
referred to in clauses (i) and (ii)(II) of subparagraph (A),
the credit period shall be the period beginning on the date
that the facility first produces steel industry fuel that is
sold to an unrelated person after September 30, 2008, and
ending 2 years after such date.''.
(2) Conforming amendment.--Section 45(e)(8)(D) is amended
by striking clause (iii) and by redesignating clause (iv) as
clause (iii).
(b) Extension of Placed-in-service Date.--Subparagraph (A)
of section 45(d)(8) is amended--
(1) by striking ``(or any modification to a facility)'',
and
(2) by striking ``2010'' and inserting ``2011''.
(c) Clarifications.--
(1) Steel industry fuel.--Subclause (I) of section
45(c)(7)(C)(i) is amended by inserting ``, a blend of coal
and petroleum coke, or other coke feedstock'' after ``on
coal''.
(2) Ownership interest.--Section 45(d)(8) is amended by
adding at the end the following new flush sentence:
``With respect to a facility producing steel industry fuel,
no person (including a ground lessor, customer, supplier, or
technology licensor) shall be treated as having an ownership
interest in the facility or as otherwise entitled to the
credit allowable under subsection (a) with respect to such
facility if such person's rent, license fee, or other
entitlement to net payments from the owner of such facility
is measured by a fixed dollar amount or a fixed amount per
ton, or otherwise determined without regard to the profit or
loss of such facility.''.
(3) Production and sale.--Subparagraph (D) of section
45(e)(8), as amended by subsection (a)(2), is amended by
redesignating clause (iii) as clause (iv) and by inserting
after clause (ii) the following new clause:
``(iii) Production and sale.--The owner of a facility
producing steel industry fuel shall be treated as producing
and selling steel industry fuel where that owner manufactures
such steel industry fuel from coal, a blend of coal and
petroleum coke, or other coke feedstock to which it has
title. The sale of such steel industry fuel by the owner of
the facility to a person who is not the owner of the facility
shall not fail to qualify as a sale to an unrelated person
solely because such purchaser may also be a ground lessor,
supplier, or customer.''.
(d) Specified Credit for Purposes of Alternative Minimum
Tax Exclusion.--Subclause (II) of section 38(c)(4)(B)(iii) is
amended by inserting ``(in the case of a refined coal
production facility producing steel industry fuel, during the
credit period set forth in section 45(e)(8)(D)(ii)(II))''
after ``service''.
(e) Effective Dates.--
(1) In general.--The amendments made by subsections (a),
(b), and (d) shall take effect on the date of the enactment
of this Act.
(2) Clarifications.--The amendments made by subsection (c)
shall take effect as if included in the amendments made by
the Energy Improvement and Extension Act of 2008.
[[Page H4130]]
SEC. 623. MODIFICATIONS TO MINE RESCUE TEAM TRAINING CREDIT
AND ELECTION TO EXPENSE ADVANCED MINE SAFETY
EQUIPMENT.
(a) Mine Rescue Team Training Credit Allowable Against
AMT.--Subparagraph (B) of section 38(c)(4) is amended--
(1) by redesignating clauses (vi), (vii), and (viii) as
clauses (vii), (viii), and (ix), respectively, and
(2) by inserting after clause (v) the following new clause:
``(vi) the credit determined under section 45N,''.
(b) Election to Expense Advanced Mine Safety Equipment
Allowable Against AMT.--Subparagraph (C) of section 56(g)(4)
is amended by adding at the end the following new clause:
``(vii) Special rule for election to expense advanced mine
safety equipment.--Clause (i) shall not apply to amounts
deductible under section 179E.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2009.
SEC. 624. APPLICATION OF CONTINUOUS LEVY TO EMPLOYMENT TAX
LIABILITY OF CERTAIN FEDERAL CONTRACTORS.
(a) In General.--Section 6330(h) is amended by inserting
``or if the person subject to the levy (or any predecessor
thereof) is a Federal contractor that was identified as owing
such employment taxes through the Federal Payment Levy
Program'' before the period at the end of the first sentence.
(b) Effective Date.--The amendment made by this section
shall apply to levies issued after December 31, 2010.
TITLE VII--DETERMINATION OF BUDGETARY EFFECTS
SEC. 701. 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.--Sections 201, 211, and 232 of
this Act are designated as an emergency requirement pursuant
to section 4(g) of the Statutory Pay-As-You-Go Act of 2010
(Public Law 111-139; 2 U.S.C. 933(g)) and section 403(a) of
S. Con. Res. 13 (111th Congress), the concurrent resolution
on the budget for fiscal year 2010. In the House of
Representatives, sections 201, 211, and 232 of this Act are
designated as an emergency for purposes of pay-as-you-go
principles.
The SPEAKER pro tempore. The Clerk will designate the motion.
The text of the motion is as follows:
Mr. Levin moves that the House concur in the Senate
amendment to H.R. 4213 with the amendment printed in part A
of House Report 111-497, as modified by the amendment printed
in part B of House Report 111-497 and the further amendment
in section 2 of House Resolution 1403.
The SPEAKER pro tempore. The House amendment to the Senate amendment
to the bill H.R. 4213 contains:
an emergency designation for the purposes of pay-as-you-go principles
under clause 10(c) of rule XXI; and
an emergency designation pursuant to section 4(g)(1) of the Statutory
Pay-As-You-Go Act of 2010.
Accordingly, the Chair must put the question of consideration under
clause 10(c)(3) of rule XXI and under section 47(g)(2) of the Statutory
Pay-As-You-Go Act of 2010.
The question is, Will the House now consider the motion to concur in
the Senate amendment with an amendment?
The question of consideration was decided in the affirmative.
The SPEAKER pro tempore. Pursuant to House Resolution 1403, the
amendment printed in part A of House Report 111-497 as modified by the
amendment printed in part B of the report and by the amendment printed
in section 2 of House Resolution 1403 shall be considered as read.
The text of the House amendment to the Senate amendment is as
follows:
In lieu of the matter proposed to be inserted by the
amendment of the Senate, insert the following:
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF
CONTENTS.
(a) Short Title.--This Act may be cited as the ``American
Jobs and Closing Tax Loopholes Act of 2010''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in titles I, II, and IV of this Act an
amendment or repeal is expressed in terms of an amendment to,
or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; amendment of 1986 Code; table of contents.
TITLE I--INFRASTRUCTURE INCENTIVES
Sec. 101. Extension of Build America Bonds.
Sec. 102. Exempt-facility bonds for sewage and water supply facilities.
Sec. 103. Extension of exemption from alternative minimum tax treatment
for certain tax-exempt bonds.
Sec. 104. Extension and additional allocations of recovery zone bond
authority.
Sec. 105. Allowance of new markets tax credit against alternative
minimum tax.
Sec. 106. Extension of tax-exempt eligibility for loans guaranteed by
Federal home loan banks.
Sec. 107. Extension of temporary small issuer rules for allocation of
tax-exempt interest expense by financial institutions.
TITLE II--EXTENSION OF EXPIRING PROVISIONS
Subtitle A--Energy
Sec. 201. Alternative motor vehicle credit for new qualified hybrid
motor vehicles other than passenger automobiles and light
trucks.
Sec. 202. Incentives for biodiesel and renewable diesel.
Sec. 203. Credit for electricity produced at certain open-loop biomass
facilities.
Sec. 204. Extension and modification of credit for steel industry fuel.
Sec. 205. Credit for producing fuel from coke or coke gas.
Sec. 206. New energy efficient home credit.
Sec. 207. Excise tax credits and outlay payments for alternative fuel
and alternative fuel mixtures.
Sec. 208. Special rule for sales or dispositions to implement FERC or
State electric restructuring policy for qualified
electric utilities.
Sec. 209. Suspension of limitation on percentage depletion for oil and
gas from marginal wells.
Sec. 210. Direct payment of energy efficient appliances tax credit.
Sec. 211. Modification of standards for windows, doors, and skylights
with respect to the credit for nonbusiness energy
property.
Subtitle B--Individual Tax Relief
Part I--Miscellaneous Provisions
Sec. 221. Deduction for certain expenses of elementary and secondary
school teachers.
Sec. 222. Additional standard deduction for State and local real
property taxes.
Sec. 223. Deduction of State and local sales taxes.
Sec. 224. Contributions of capital gain real property made for
conservation purposes.
Sec. 225. Above-the-line deduction for qualified tuition and related
expenses.
Sec. 226. Tax-free distributions from individual retirement plans for
charitable purposes.
Sec. 227. Look-thru of certain regulated investment company stock in
determining gross estate of nonresidents.
Part II--Low-income Housing Credits
Sec. 231. Election for direct payment of low-income housing credit for
2010.
Subtitle C--Business Tax Relief
Sec. 241. Research credit.
Sec. 242. Indian employment tax credit.
Sec. 243. New markets tax credit.
Sec. 244. Railroad track maintenance credit.
Sec. 245. Mine rescue team training credit.
Sec. 246. Employer wage credit for employees who are active duty
members of the uniformed services.
Sec. 247. 5-year depreciation for farming business machinery and
equipment.
Sec. 248. 15-year straight-line cost recovery for qualified leasehold
improvements, qualified restaurant buildings and
improvements, and qualified retail improvements.
Sec. 249. 7-year recovery period for motorsports entertainment
complexes.
Sec. 250. Accelerated depreciation for business property on an Indian
reservation.
Sec. 251. Enhanced charitable deduction for contributions of food
inventory.
Sec. 252. Enhanced charitable deduction for contributions of book
inventories to public schools.
Sec. 253. Enhanced charitable deduction for corporate contributions of
computer inventory for educational purposes.
Sec. 254. Election to expense mine safety equipment.
Sec. 255. Special expensing rules for certain film and television
productions.
Sec. 256. Expensing of environmental remediation costs.
Sec. 257. Deduction allowable with respect to income attributable to
domestic production activities in Puerto Rico.
Sec. 258. Modification of tax treatment of certain payments to
controlling exempt organizations.
Sec. 259. Exclusion of gain or loss on sale or exchange of certain
brownfield sites from unrelated business income.
Sec. 260. Timber REIT modernization.
Sec. 261. Treatment of certain dividends of regulated investment
companies.
Sec. 262. RIC qualified investment entity treatment under FIRPTA.
Sec. 263. Exceptions for active financing income.
Sec. 264. Look-thru treatment of payments between related controlled
foreign corporations under foreign personal holding
company rules.
[[Page H4131]]
Sec. 265. Basis adjustment to stock of S corps making charitable
contributions of property.
Sec. 266. Empowerment zone tax incentives.
Sec. 267. Tax incentives for investment in the District of Columbia.
Sec. 268. Renewal community tax incentives.
Sec. 269. Temporary increase in limit on cover over of rum excise taxes
to Puerto Rico and the Virgin Islands.
Sec. 270. Payment to American Samoa in lieu of extension of economic
development credit.
Sec. 271. Election to temporarily utilize unused AMT credits determined
by domestic investment.
Sec. 272. Study of extended tax expenditures.
Subtitle D--Temporary Disaster Relief Provisions
Part I--National Disaster Relief
Sec. 281. Waiver of certain mortgage revenue bond requirements.
Sec. 282. Losses attributable to federally declared disasters.
Sec. 283. Special depreciation allowance for qualified disaster
property.
Sec. 284. Net operating losses attributable to federally declared
disasters.
Sec. 285. Expensing of qualified disaster expenses.
Part II--Regional Provisions
subpart a--new york liberty zone
Sec. 291. Special depreciation allowance for nonresidential and
residential real property.
Sec. 292. Tax-exempt bond financing.
subpart b--go zone
Sec. 295. Increase in rehabilitation credit.
Sec. 296. Work opportunity tax credit with respect to certain
individuals affected by Hurricane Katrina for employers
inside disaster areas.
Sec. 297. Extension of low-income housing credit rules for buildings in
GO zones.
TITLE III--PENSION PROVISIONS
Subtitle A--Pension Funding Relief
Part 1--Single-Employer Plans
Sec. 301. Extended period for single-employer defined benefit plans to
amortize certain shortfall amortization bases.
Sec. 302. Application of extended amortization period to plans subject
to prior law funding rules.
Sec. 303. Suspension of certain funding level limitations.
Sec. 304. Lookback for credit balance rule.
Sec. 305. Information reporting.
Sec. 306. Rollover of amounts received in airline carrier bankruptcy.
Part 2--Multiemployer Plans
Sec. 311. Optional use of 30-year amortization periods.
Sec. 312. Optional longer recovery periods for multiemployer plans in
endangered or critical status.
Sec. 313. Modification of certain amortization extensions under prior
law.
Sec. 314. Alternative default schedule for plans in endangered or
critical status.
Sec. 315. Transition rule for certifications of plan status.
Subtitle B--Fee Disclosure
Sec. 321. Short title of subtitle.
Sec. 322. Amendments to the Employee Retirement Income Security Act of
1974.
Sec. 323. Amendments to the Internal Revenue Code of 1986.
Sec. 324. Regulatory authority and coordination.
Sec. 325. Effective date of subtitle.
TITLE IV--REVENUE OFFSETS
Subtitle A--Foreign Provisions
Sec. 401. Rules to prevent splitting foreign tax credits from the
income to which they relate.
Sec. 402. Denial of foreign tax credit with respect to foreign income
not subject to United States taxation by reason of
covered asset acquisitions.
Sec. 403. Separate application of foreign tax credit limitation, etc.,
to items resourced under treaties.
Sec. 404. Limitation on the amount of foreign taxes deemed paid with
respect to section 956 inclusions.
Sec. 405. Special rule with respect to certain redemptions by foreign
subsidiaries.
Sec. 406. Modification of affiliation rules for purposes of rules
allocating interest expense.
Sec. 407. Termination of special rules for interest and dividends
received from persons meeting the 80-percent foreign
business requirements.
Sec. 408. Source rules for income on guarantees.
Sec. 409. Limitation on extension of statute of limitations for failure
to notify Secretary of certain foreign transfers.
Subtitle B--Personal Service Income Earned in Pass-thru Entities
Sec. 411. Partnership interests transferred in connection with
performance of services.
Sec. 412. Income of partners for performing investment management
services treated as ordinary income received for
performance of services.
Sec. 413. Employment tax treatment of professional service businesses.
Subtitle C--Corporate Provisions
Sec. 421. Treatment of securities of a controlled corporation exchanged
for assets in certain reorganizations.
Sec. 422. Taxation of boot received in reorganizations.
Subtitle D--Other Provisions
Sec. 431. Modifications with respect to Oil Spill Liability Trust Fund.
Sec. 432. Time for payment of corporate estimated taxes.
TITLE V--UNEMPLOYMENT, HEALTH, AND OTHER ASSISTANCE
Subtitle A--Unemployment Insurance and Other Assistance
Sec. 501. Extension of unemployment insurance provisions.
Sec. 502. Coordination of emergency unemployment compensation with
regular compensation.
Sec. 503. Extension of the Emergency Contingency Fund.
Subtitle B--Health Provisions
Sec. 511. Extension of section 508 reclassifications.
Sec. 512. Repeal of delay of RUG-IV.
Sec. 513. Limitation on reasonable costs payments for certain clinical
diagnostic laboratory tests furnished to hospital
patients in certain rural areas.
Sec. 514. Funding for claims reprocessing.
Sec. 515. Medicaid and CHIP technical corrections.
Sec. 516. Addition of inpatient drug discount program to 340B drug
discount program.
Sec. 517. Continued inclusion of orphan drugs in definition of covered
outpatient drugs with respect to children's hospitals
under the 340B drug discount program.
Sec. 518. Conforming amendment related to waiver of coinsurance for
preventive services.
Sec. 519. Establish a CMS-IRS data match to identify fraudulent
providers.
Sec. 520. Clarification of effective date of part B special enrollment
period for disabled TRICARE beneficiaries.
Sec. 521. Physician payment update.
Sec. 522. Adjustment to Medicare payment localities.
Sec. 523. Clarification of 3-day payment window.
TITLE VI--OTHER PROVISIONS
Sec. 601. Extension of national flood insurance program.
Sec. 602. Allocation of geothermal receipts.
Sec. 603. Small business loan guarantee enhancement extensions.
Sec. 604. Emergency agricultural disaster assistance.
Sec. 605. Summer employment for youth.
Sec. 606. Housing Trust Fund.
Sec. 607. The Individual Indian Money Account Litigation Settlement Act
of 2010.
Sec. 608. Appropriation of funds for final settlement of claims from In
re Black Farmers Discrimination Litigation.
Sec. 609. Expansion of eligibility for concurrent receipt of military
retired pay and veterans' disability compensation to
include all chapter 61 disability retirees regardless of
disability rating percentage or years of service.
Sec. 610. Extension of use of 2009 poverty guidelines.
Sec. 611. Refunds disregarded in the administration of Federal programs
and federally assisted programs.
Sec. 612. State court improvement program.
Sec. 613. Qualifying timber contract options.
Sec. 614. Extension and flexibility for certain allocated surface
transportation programs.
Sec. 615. Community College and Career Training Grant Program.
Sec. 616. Extensions of duty suspensions on cotton shirting fabrics and
related provisions.
Sec. 617. Modification of Wool Apparel Manufacturers Trust Fund.
Sec. 618. Department of Commerce Study.
Sec. 619. ARRA planning and reporting.
TITLE VII--BUDGETARY PROVISIONS
Sec. 701. Budgetary provisions.
TITLE I--INFRASTRUCTURE INCENTIVES
SEC. 101. EXTENSION OF BUILD AMERICA BONDS.
(a) In General.--Subparagraph (B) of section 54AA(d)(1) is
amended by striking ``January 1, 2011'' and inserting
``January 1, 2013''.
(b) Extension of Payments to Issuers.--
(1) In general.--Section 6431 is amended--
(A) by striking ``January 1, 2011'' in subsection (a) and
inserting ``January 1, 2013''; and
(B) by striking ``January 1, 2011'' in subsection (f)(1)(B)
and inserting ``a particular date''.
(2) Conforming amendments.--Subsection (g) of section 54AA
is amended--
(A) by striking ``January 1, 2011'' and inserting ``January
1, 2013''; and
(B) by striking ``Qualified Bonds Issued Before 2011'' in
the heading and inserting ``Certain Qualified Bonds''.
(c) Reduction in Percentage of Payments to Issuers.--
Subsection (b) of section 6431 is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary'';
(2) by striking ``35 percent'' and inserting ``the
applicable percentage''; and
(3) by adding at the end the following new paragraph:
``(2) Applicable percentage.--For purposes of this
subsection, the term `applicable percentage' means the
percentage determined in accordance with the following table:
------------------------------------------------------------------------
``In the case of a qualified bond issued The applicable percentage
during calendar year: is:
------------------------------------------------------------------------
2009 or 2010.............................. 35 percent
[[Page H4132]]
2011...................................... 32 percent
2012...................................... 30 percent.''.
------------------------------------------------------------------------
(d) Current Refundings Permitted.--Subsection (g) of
section 54AA is amended by adding at the end the following
new paragraph:
``(3) Treatment of current refunding bonds.--
``(A) In general.--For purposes of this subsection, the
term `qualified bond' includes any bond (or series of bonds)
issued to refund a qualified bond if--
``(i) the average maturity date of the issue of which the
refunding bond is a part is not later than the average
maturity date of the bonds to be refunded by such issue,
``(ii) the amount of the refunding bond does not exceed the
outstanding amount of the refunded bond, and
``(iii) the refunded bond is redeemed not later than 90
days after the date of the issuance of the refunding bond.
``(B) Applicable percentage.--In the case of a refunding
bond referred to in subparagraph (A), the applicable
percentage with respect to such bond under section 6431(b)
shall be the lowest percentage specified in paragraph (2) of
such section.
``(C) Determination of average maturity.--For purposes of
subparagraph (A)(i), average maturity shall be determined in
accordance with section 147(b)(2)(A).''.
(e) Clarification Related to Levees and Flood Control
Projects.--Subparagraph (A) of section 54AA(g)(2) is amended
by inserting ``(including capital expenditures for levees and
other flood control projects)'' after ``capital
expenditures''.
SEC. 102. EXEMPT-FACILITY BONDS FOR SEWAGE AND WATER SUPPLY
FACILITIES.
(a) Bonds for Water and Sewage Facilities Exempt From
Volume Cap on Private Activity Bonds.--
(1) In general.--Paragraph (3) of section 146(g) is amended
by inserting ``(4), (5),'' after ``(2),''.
(2) Conforming amendment.--Paragraphs (2) and (3)(B) of
section 146(k) are both amended by striking ``(4), (5),
(6),'' and inserting ``(6)''.
(b) Tax-exempt Issuance by Indian Tribal Governments.--
(1) In general.--Subsection (c) of section 7871 is amended
by adding at the end the following new paragraph:
``(4) Exception for bonds for water and sewage
facilities.--Paragraph (2) shall not apply to an exempt
facility bond 95 percent or more of the net proceeds (as
defined in section 150(a)(3)) of which are to be used to
provide facilities described in paragraph (4) or (5) of
section 142(a).''.
(2) Conforming amendment.--Paragraph (2) of section 7871(c)
is amended by striking ``paragraph (3)'' and inserting
``paragraphs (3) and (4)''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
SEC. 103. EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX
TREATMENT FOR CERTAIN TAX-EXEMPT BONDS.
(a) In General.--Clause (vi) of section 57(a)(5)(C) is
amended--
(1) by striking ``January 1, 2011'' in subclause (I) and
inserting ``January 1, 2012''; and
(2) by striking ``and 2010'' in the heading and inserting
``, 2010, and 2011''.
(b) Adjusted Current Earnings.--Clause (iv) of section
56(g)(4)(B) is amended--
(1) by striking ``January 1, 2011'' in subclause (I) and
inserting ``January 1, 2012''; and
(2) by striking ``and 2010'' in the heading and inserting
``, 2010, and 2011''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after December 31, 2010.
SEC. 104. EXTENSION AND ADDITIONAL ALLOCATIONS OF RECOVERY
ZONE BOND AUTHORITY.
(a) Extension of Recovery Zone Bond Authority.--Section
1400U-2(b)(1) and section 1400U-3(b)(1)(B) are each amended
by striking ``January 1, 2011'' and inserting ``January 1,
2012''.
(b) Additional Allocations of Recovery Zone Bond Authority
Based on Unemployment.--Section 1400U-1 is amended by adding
at the end the following new subsection:
``(c) Allocation of 2010 Recovery Zone Bond Limitations
Based on Unemployment.--
``(1) In general.--The Secretary shall allocate the 2010
national recovery zone economic development bond limitation
and the 2010 national recovery zone facility bond limitation
among the States in the proportion that each such State's
2009 unemployment number bears to the aggregate of the 2009
unemployment numbers for all of the States.
``(2) Minimum allocation.--The Secretary shall adjust the
allocations under paragraph (1) for each State to the extent
necessary to ensure that no State (prior to any reduction
under paragraph (3)) receives less than 0.9 percent of the
2010 national recovery zone economic development bond
limitation and 0.9 percent of the 2010 national recovery zone
facility bond limitation.
``(3) Allocations by states.--
``(A) In general.--Each State with respect to which an
allocation is made under paragraph (1) shall reallocate such
allocation among the counties and large municipalities (as
defined in subsection (a)(3)(B)) in such State in the
proportion that each such county's or municipality's 2009
unemployment number bears to the aggregate of the 2009
unemployment numbers for all the counties and large
municipalities (as so defined) in such State.
``(B) 2010 allocation reduced by amount of previous
allocation.--Each State shall reduce (but not below zero)--
``(i) the amount of the 2010 national recovery zone
economic development bond limitation allocated to each county
or large municipality (as so defined) in such State by the
amount of the national recovery zone economic development
bond limitation allocated to such county or large
municipality under subsection (a)(3)(A) (determined without
regard to any waiver thereof), and
``(ii) the amount of the 2010 national recovery zone
facility bond limitation allocated to each county or large
municipality (as so defined) in such State by the amount of
the national recovery zone facility bond limitation allocated
to such county or large municipality under subsection
(a)(3)(A) (determined without regard to any waiver thereof).
``(C) Waiver of suballocations.--A county or municipality
may waive any portion of an allocation made under this
paragraph. A county or municipality shall be treated as
having waived any portion of an allocation made under this
paragraph which has not been allocated to a bond issued
before May 1, 2011. Any allocation waived (or treated as
waived) under this subparagraph may be used or reallocated by
the State.
``(D) Special rule for a municipality in a county.--In the
case of any large municipality any portion of which is in a
county, such portion shall be treated as part of such
municipality and not part of such county.
``(4) 2009 unemployment number.--For purposes of this
subsection, the term `2009 unemployment number' means, with
respect to any State, county or municipality, the number of
individuals in such State, county, or municipality who were
determined to be unemployed by the Bureau of Labor Statistics
for December 2009.
``(5) 2010 national limitations.--
``(A) Recovery zone economic development bonds.--The 2010
national recovery zone economic development bond limitation
is $10,000,000,000. Any allocation of such limitation under
this subsection shall be treated for purposes of section
1400U-2 in the same manner as an allocation of national
recovery zone economic development bond limitation.
``(B) Recovery zone facility bonds.--The 2010 national
recovery zone facility bond limitation is $15,000,000,000.
Any allocation of such limitation under this subsection shall
be treated for purposes of section 1400U-3 in the same manner
as an allocation of national recovery zone facility bond
limitation.''.
(c) Authority of State to Waive Certain 2009 Allocations.--
Subparagraph (A) of section 1400U-1(a)(3) is amended by
adding at the end the following: ``A county or municipality
shall be treated as having waived any portion of an
allocation made under this subparagraph which has not been
allocated to a bond issued before May 1, 2011. Any allocation
waived (or treated as waived) under this subparagraph may be
used or reallocated by the State.''.
SEC. 105. ALLOWANCE OF NEW MARKETS TAX CREDIT AGAINST
ALTERNATIVE MINIMUM TAX.
(a) In General.--Subparagraph (B) of section 38(c)(4), as
amended by the Patient Protection and Affordable Care Act, is
amended by redesignating clauses (v) through (ix) as clauses
(vi) through (x), respectively, and by inserting after clause
(iv) the following new clause:
``(v) the credit determined under section 45D, but only
with respect to credits determined with respect to qualified
equity investments (as defined in section 45D(b)) initially
made before January 1, 2012,''.
(b) Effective Date.--The amendments made by this section
shall apply to credits determined with respect to qualified
equity investments (as defined in section 45D(b) of the
Internal Revenue Code of 1986) initially made after March 15,
2010.
SEC. 106. EXTENSION OF TAX-EXEMPT ELIGIBILITY FOR LOANS
GUARANTEED BY FEDERAL HOME LOAN BANKS.
Clause (iv) of section 149(b)(3)(A) is amended by striking
``December 31, 2010'' and inserting ``December 31, 2011''.
SEC. 107. EXTENSION OF TEMPORARY SMALL ISSUER RULES FOR
ALLOCATION OF TAX-EXEMPT INTEREST EXPENSE BY
FINANCIAL INSTITUTIONS.
(a) In General.--Clauses (i), (ii), and (iii) of section
265(b)(3)(G) are each amended by striking ``or 2010'' and
inserting ``, 2010, or 2011''.
(b) Conforming Amendment.--Subparagraph (G) of section
265(b)(3) is amended by striking ``and 2010'' in the heading
and inserting ``, 2010, and 2011''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after December 31, 2010.
TITLE II--EXTENSION OF EXPIRING PROVISIONS
Subtitle A--Energy
SEC. 201. ALTERNATIVE MOTOR VEHICLE CREDIT FOR NEW QUALIFIED
HYBRID MOTOR VEHICLES OTHER THAN PASSENGER
AUTOMOBILES AND LIGHT TRUCKS.
(a) In General.--Paragraph (3) of section 30B(k) is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to property purchased after December 31, 2009.
SEC. 202. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.
(a) Credits for Biodiesel and Renewable Diesel Used as
Fuel.--Subsection (g) of section 40A is amended by striking
``December 31, 2009'' and inserting ``December 31, 2010''.
(b) Excise Tax Credits and Outlay Payments for Biodiesel
and Renewable Diesel Fuel Mixtures.--
[[Page H4133]]
(1) Paragraph (6) of section 6426(c) is amended by striking
``December 31, 2009'' and inserting ``December 31, 2010''.
(2) Subparagraph (B) of section 6427(e)(6) is amended by
striking ``December 31, 2009'' and inserting ``December 31,
2010''.
(c) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after December 31, 2009.
SEC. 203. CREDIT FOR ELECTRICITY PRODUCED AT CERTAIN OPEN-
LOOP BIOMASS FACILITIES.
(a) In General.--Clause (ii) of section 45(b)(4)(B) is
amended--
(1) by striking ``5-year period'' and inserting ``6-year
period''; and
(2) by adding at the end the following: ``In the case of
the last year of the 6-year period described in the preceding
sentence, the credit determined under subsection (a) with
respect to electricity produced during such year shall not
exceed 80 percent of such credit determined without regard to
this sentence.''.
(b) Effective Date.--The amendment made by this section
shall apply to electricity produced and sold after December
31, 2009.
SEC. 204. EXTENSION AND MODIFICATION OF CREDIT FOR STEEL
INDUSTRY FUEL.
(a) Credit Period.--
(1) In general.--Subclause (II) of section 45(e)(8)(D)(ii)
is amended to read as follows:
``(II) Credit period.--In lieu of the 10-year period
referred to in clauses (i) and (ii)(II) of subparagraph (A),
the credit period shall be the period beginning on the date
that the facility first produces steel industry fuel that is
sold to an unrelated person after September 30, 2008, and
ending 2 years after such date.''.
(2) Conforming amendment.--Section 45(e)(8)(D) is amended
by striking clause (iii) and by redesignating clause (iv) as
clause (iii).
(b) Extension of Placed-in-service Date.--Subparagraph (A)
of section 45(d)(8) is amended--
(1) by striking ``(or any modification to a facility)'';
and
(2) by striking ``2010'' and inserting ``2011''.
(c) Clarifications.--
(1) Steel industry fuel.--Subclause (I) of section
45(c)(7)(C)(i) is amended by inserting ``, a blend of coal
and petroleum coke, or other coke feedstock'' after ``on
coal''.
(2) Ownership interest.--Section 45(d)(8) is amended by
adding at the end the following new flush sentence:
``With respect to a facility producing steel industry fuel,
no person (including a ground lessor, customer, supplier, or
technology licensor) shall be treated as having an ownership
interest in the facility or as otherwise entitled to the
credit allowable under subsection (a) with respect to such
facility if such person's rent, license fee, or other
entitlement to net payments from the owner of such facility
is measured by a fixed dollar amount or a fixed amount per
ton, or otherwise determined without regard to the profit or
loss of such facility.''.
(3) Production and sale.--Subparagraph (D) of section
45(e)(8), as amended by subsection (a)(2), is amended by
redesignating clause (iii) as clause (iv) and by inserting
after clause (ii) the following new clause:
``(iii) Production and sale.--The owner of a facility
producing steel industry fuel shall be treated as producing
and selling steel industry fuel where that owner manufactures
such steel industry fuel from coal, a blend of coal and
petroleum coke, or other coke feedstock to which it has
title. The sale of such steel industry fuel by the owner of
the facility to a person who is not the owner of the facility
shall not fail to qualify as a sale to an unrelated person
solely because such purchaser may also be a ground lessor,
supplier, or customer.''.
(d) Specified Credit for Purposes of Alternative Minimum
Tax Exclusion.--Subclause (II) of section 38(c)(4)(B)(iii) is
amended by inserting ``(in the case of a refined coal
production facility producing steel industry fuel, during the
credit period set forth in section 45(e)(8)(D)(ii)(II))''
after ``service''.
(e) Effective Dates.--
(1) In general.--The amendments made by subsections (a),
(b), and (d) shall take effect on the date of the enactment
of this Act.
(2) Clarifications.--The amendments made by subsection (c)
shall take effect as if included in the amendments made by
the Energy Improvement and Extension Act of 2008.
SEC. 205. CREDIT FOR PRODUCING FUEL FROM COKE OR COKE GAS.
(a) In General.--Paragraph (1) of section 45K(g) is amended
by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(b) Effective Date.--The amendment made by this section
shall apply to facilities placed in service after December
31, 2009.
SEC. 206. NEW ENERGY EFFICIENT HOME CREDIT.
(a) In General.--Subsection (g) of section 45L is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to homes acquired after December 31, 2009.
SEC. 207. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR
ALTERNATIVE FUEL AND ALTERNATIVE FUEL MIXTURES.
(a) Alternative Fuel Credit.--Paragraph (5) of section
6426(d) is amended by striking ``after December 31, 2009''
and all that follows and inserting ``after--
``(A) September 30, 2014, in the case of liquefied
hydrogen,
``(B) December 31, 2010, in the case of fuels described in
subparagraph (A), (C), (F), or (G) of paragraph (2), and
``(C) December 31, 2009, in any other case.''.
(b) Alternative Fuel Mixture Credit.--Paragraph (3) of
section 6426(e) is amended by striking ``after December 31,
2009'' and all that follows and inserting ``after--
``(A) September 30, 2014, in the case of liquefied
hydrogen,
``(B) December 31, 2010, in the case of fuels described in
subparagraph (A), (C), (F), or (G) of subsection (d)(2), and
``(C) December 31, 2009, in any other case.''.
(c) Payment Authority.--
(1) In general.--Paragraph (6) of section 6427(e) is
amended by striking ``and'' at the end of subparagraph (C),
by striking the period at the end of subparagraph (D) and
inserting ``, and'', and by adding at the end the following
new subparagraph:
``(E) any alternative fuel or alternative fuel mixture (as
so defined) involving fuel described in subparagraph (A),
(C), (F), or (G) of section 6426(d)(2) sold or used after
December 31, 2010.''.
(2) Conforming amendment.--Subparagraph (C) of section
6427(e)(6) is amended by inserting ``or (E)'' after
``subparagraph (D)''.
(d) Exclusion of Black Liquor From Credit Eligibility.--The
last sentence of section 6426(d)(2) is amended by striking
``or biodiesel'' and inserting ``biodiesel, or any fuel
(including lignin, wood residues, or spent pulping liquors)
derived from the production of paper or pulp''.
(e) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after December 31, 2009.
SEC. 208. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT
FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR
QUALIFIED ELECTRIC UTILITIES.
(a) In General.--Paragraph (3) of section 451(i) is amended
by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(b) Modification of Definition of Independent Transmission
Company.--
(1) In general.--Clause (i) of section 451(i)(4)(B) is
amended to read as follows:
``(i) who the Federal Energy Regulatory Commission
determines in its authorization of the transaction under
section 203 of the Federal Power Act (16 U.S.C. 824b) or by
declaratory order--
``(I) is not itself a market participant as determined by
the Commission, and also is not controlled by any such market
participant, or
``(II) to be independent from market participants or to be
an independent transmission company within the meaning of
such Commission's rules applicable to independent
transmission providers, and''.
(2) Related persons.--Paragraph (4) of section 451(i) is
amended by adding at the end the following flush sentence:
``For purposes of subparagraph (B)(i)(I), a person shall be
treated as controlled by another person if such persons would
be treated as a single employer under section 52.''.
(c) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply to dispositions after December 31, 2009.
(2) Modifications.--The amendments made by subsection (b)
shall apply to dispositions after the date of the enactment
of this Act.
SEC. 209. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION
FOR OIL AND GAS FROM MARGINAL WELLS.
(a) In General.--Clause (ii) of section 613A(c)(6)(H) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2009.
SEC. 210. DIRECT PAYMENT OF ENERGY EFFICIENT APPLIANCES TAX
CREDIT.
In the case of any taxable year which includes the last day
of calendar year 2009 or calendar year 2010, a taxpayer who
elects to waive the credit which would otherwise be
determined with respect to the taxpayer under section 45M of
the Internal Revenue Code of 1986 for such taxable year shall
be treated as making a payment against the tax imposed under
subtitle A of such Code for such taxable year in an amount
equal to 85 percent of the amount of the credit which would
otherwise be so determined. Such payment shall be treated as
made on the later of the due date of the return of such tax
or the date on which such return is filed. Elections under
this section may be made separately for 2009 and 2010, but
once made shall be irrevocable. No amount shall be includible
in gross income or alternative minimum taxable income by
reason of this section.
SEC. 211. MODIFICATION OF STANDARDS FOR WINDOWS, DOORS, AND
SKYLIGHTS WITH RESPECT TO THE CREDIT FOR
NONBUSINESS ENERGY PROPERTY.
(a) In General.--Paragraph (4) of section 25C(c) is amended
by striking ``unless'' and all that follows and inserting
``unless--
``(A) in the case of any component placed in service after
the date which is 90 days after the date of the enactment of
the American Jobs and Closing Tax Loopholes Act of 2010, such
component meets the criteria for such components established
by the 2010 Energy Star Program Requirements for Residential
Windows, Doors, and Skylights, Version 5.0 (or any subsequent
version of such requirements which is in effect after January
4, 2010),
``(B) in the case of any component placed in service after
the date of the enactment of the American Jobs and Closing
Tax Loopholes Act of 2010 and on or before the date which is
90 days after such date, such component meets the criteria
described in subparagraph (A) or is equal to or below a U
factor of 0.30 and SHGC of 0.30, and
``(C) in the case of any component which is a garage door,
such component is equal to or below a U factor of 0.30 and
SHGC of 0.30.''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
[[Page H4134]]
Subtitle B--Individual Tax Relief
PART I--MISCELLANEOUS PROVISIONS
SEC. 221. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND
SECONDARY SCHOOL TEACHERS.
(a) In General.--Subparagraph (D) of section 62(a)(2) is
amended by striking ``or 2009'' and inserting ``2009, or
2010''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2009.
SEC. 222. ADDITIONAL STANDARD DEDUCTION FOR STATE AND LOCAL
REAL PROPERTY TAXES.
(a) In General.--Subparagraph (C) of section 63(c)(1) is
amended by striking ``or 2009'' and inserting ``2009, or
2010''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2009.
SEC. 223. DEDUCTION OF STATE AND LOCAL SALES TAXES.
(a) In General.--Subparagraph (I) of section 164(b)(5) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2009.
SEC. 224. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE
FOR CONSERVATION PURPOSES.
(a) In General.--Clause (vi) of section 170(b)(1)(E) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Contributions by Certain Corporate Farmers and
Ranchers.--Clause (iii) of section 170(b)(2)(B) is amended by
striking ``December 31, 2009'' and inserting ``December 31,
2010''.
(c) Effective Date.--The amendments made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2009.
SEC. 225. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND
RELATED EXPENSES.
(a) In General.--Subsection (e) of section 222 is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2009.
(c) Temporary Coordination With Hope and Lifetime Learning
Credits.--In the case of any taxpayer for any taxable year
beginning in 2010, no deduction shall be allowed under
section 222 of the Internal Revenue Code of 1986 if--
(1) the taxpayer's net Federal income tax reduction which
would be attributable to such deduction for such taxable
year, is less than
(2) the credit which would be allowed to the taxpayer for
such taxable year under section 25A of such Code (determined
without regard to sections 25A(e) and 26 of such Code).
SEC. 226. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT
PLANS FOR CHARITABLE PURPOSES.
(a) In General.--Subparagraph (F) of section 408(d)(8) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to distributions made in taxable years beginning
after December 31, 2009.
SEC. 227. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY
STOCK IN DETERMINING GROSS ESTATE OF
NONRESIDENTS.
(a) In General.--Paragraph (3) of section 2105(d) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to estates of decedents dying after December 31,
2009.
PART II--LOW-INCOME HOUSING CREDITS
SEC. 231. ELECTION FOR DIRECT PAYMENT OF LOW-INCOME HOUSING
CREDIT FOR 2010.
(a) In General.--Section 42 is amended by redesignating
subsection (n) as subsection (o) and by inserting after
subsection (m) the following new subsection:
``(n) Election for Direct Payment of Credit.--
``(1) In general.--The housing credit agency of each State
shall be allowed a credit in an amount equal to such State's
2010 low-income housing refundable credit election amount,
which shall be payable by the Secretary as provided in
paragraph (5).
``(2) 2010 low-income housing refundable credit election
amount.--For purposes of this subsection, the term `2010 low-
income housing refundable credit election amount' means, with
respect to any State, such amount as the State may elect
which does not exceed 85 percent of the product of--
``(A) the sum of--
``(i) 100 percent of the State housing credit ceiling for
2010 which is attributable to amounts described in clauses
(i) and (iii) of subsection (h)(3)(C), 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
``36C,''.
Subtitle C--Business Tax Relief
SEC. 241. RESEARCH CREDIT.
(a) In General.--Subparagraph (B) of section 41(h)(1) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Conforming Amendment.--Subparagraph (D) of section
45C(b)(1) is amended by striking ``December 31, 2009'' and
inserting ``December 31, 2010''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred after December 31,
2009.
SEC. 242. INDIAN EMPLOYMENT TAX CREDIT.
(a) In General.--Subsection (f) of section 45A is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2009.
SEC. 243. NEW MARKETS TAX CREDIT.
(a) In General.--Subparagraph (F) of section 45D(f)(1) is
amended by inserting ``and 2010'' after ``2009''.
(b) Conforming Amendment.--Paragraph (3) of section 45D(f)
is amended by striking ``2014'' and inserting ``2015''.
(c) Effective Date.--The amendments made by this section
shall apply to calendar years beginning after 2009.
SEC. 244. RAILROAD TRACK MAINTENANCE CREDIT.
(a) In General.--Subsection (f) of section 45G is amended
by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(b) Effective Date.--The amendment made by this section
shall apply to expenditures paid or incurred in taxable years
beginning after December 31, 2009.
SEC. 245. MINE RESCUE TEAM TRAINING CREDIT.
(a) In General.--Subsection (e) of section 45N is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Credit Allowable Against AMT.--Subparagraph (B) of
section 38(c)(4), as amended by section 105, is amended--
(1) by redesignating clauses (vii) through (x) as clauses
(viii) through (xi), respectively; and
(2) by inserting after clause (vi) the following new
clause:
``(vii) the credit determined under section 45N,''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2009.
(2) Allowance against amt.--The amendments made by
subsection (b) shall apply to credits determined for taxable
years beginning after December 31, 2009, and to carrybacks of
such credits.
SEC. 246. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE
DUTY MEMBERS OF THE UNIFORMED SERVICES.
(a) In General.--Subsection (f) of section 45P is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to payments made after December 31, 2009.
SEC. 247. 5-YEAR DEPRECIATION FOR FARMING BUSINESS MACHINERY
AND EQUIPMENT.
(a) In General.--Clause (vii) of section 168(e)(3)(B) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2009.
SEC. 248. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED
LEASEHOLD IMPROVEMENTS, QUALIFIED RESTAURANT
BUILDINGS AND IMPROVEMENTS, AND QUALIFIED
RETAIL IMPROVEMENTS.
(a) In General.--Clauses (iv), (v), and (ix) of section
168(e)(3)(E) are each amended by striking ``January 1, 2010''
and inserting ``January 1, 2011''.
(b) Conforming Amendments.--
(1) Clause (i) of section 168(e)(7)(A) is amended by
striking ``if such building is placed in service after
December 31, 2008, and before January 1, 2010,''.
(2) Paragraph (8) of section 168(e) is amended by striking
subparagraph (E).
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2009.
SEC. 249. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS
ENTERTAINMENT COMPLEXES.
(a) In General.--Subparagraph (D) of section 168(i)(15) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2009.
SEC. 250. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON
AN INDIAN RESERVATION.
(a) In General.--Paragraph (8) of section 168(j) is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2009.
SEC. 251. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF
FOOD INVENTORY.
(a) In General.--Clause (iv) of section 170(e)(3)(C) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
[[Page H4135]]
(b) Effective Date.--The amendment made by this section
shall apply to contributions made after December 31, 2009.
SEC. 252. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF
BOOK INVENTORIES TO PUBLIC SCHOOLS.
(a) In General.--Clause (iv) of section 170(e)(3)(D) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made after December 31, 2009.
SEC. 253. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE
CONTRIBUTIONS OF COMPUTER INVENTORY FOR
EDUCATIONAL PURPOSES.
(a) In General.--Subparagraph (G) of section 170(e)(6) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2009.
SEC. 254. ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.
(a) In General.--Subsection (g) of section 179E is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2009.
SEC. 255. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND
TELEVISION PRODUCTIONS.
(a) In General.--Subsection (f) of section 181 is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to productions commencing after December 31,
2009.
SEC. 256. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.
(a) In General.--Subsection (h) of section 198 is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to expenditures paid or incurred after December
31, 2009.
SEC. 257. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME
ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES
IN PUERTO RICO.
(a) In General.--Subparagraph (C) of section 199(d)(8) is
amended--
(1) by striking ``first 4 taxable years'' and inserting
``first 5 taxable years''; and
(2) by striking ``January 1, 2010'' and inserting ``January
1, 2011''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2009.
SEC. 258. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS
TO CONTROLLING EXEMPT ORGANIZATIONS.
(a) In General.--Clause (iv) of section 512(b)(13)(E) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to payments received or accrued after December
31, 2009.
SEC. 259. EXCLUSION OF GAIN OR LOSS ON SALE OR EXCHANGE OF
CERTAIN BROWNFIELD SITES FROM UNRELATED
BUSINESS INCOME.
(a) In General.--Subparagraph (K) of section 512(b)(19) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to property acquired after December 31, 2009.
SEC. 260. TIMBER REIT MODERNIZATION.
(a) In General.--Paragraph (8) of section 856(c) is amended
by striking ``means'' and all that follows and inserting
``means December 31, 2010.''.
(b) Conforming Amendments.--
(1) Subparagraph (I) of section 856(c)(2) is amended by
striking ``the first taxable year beginning after the date of
the enactment of this subparagraph'' and inserting ``a
taxable year beginning on or before the termination date''.
(2) Clause (iii) of section 856(c)(5)(H) is amended by
inserting ``in taxable years beginning'' after
``dispositions''.
(3) Clause (v) of section 857(b)(6)(D) is amended by
inserting ``in a taxable year beginning'' after ``sale''.
(4) Subparagraph (G) of section 857(b)(6) is amended by
inserting ``in a taxable year beginning'' after ``In the case
of a sale''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending after May 22, 2009.
SEC. 261. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED
INVESTMENT COMPANIES.
(a) In General.--Paragraphs (1)(C) and (2)(C) of section
871(k) are each amended by striking ``December 31, 2009'' and
inserting ``December 31, 2010''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2009.
SEC. 262. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER
FIRPTA.
(a) In General.--Clause (ii) of section 897(h)(4)(A) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
take effect on January 1, 2010. Notwithstanding the preceding
sentence, such amendment shall not apply with respect to the
withholding requirement under section 1445 of the Internal
Revenue Code of 1986 for any payment made before the date of
the enactment of this Act.
(2) Amounts withheld on or before date of enactment.--In
the case of a regulated investment company--
(A) which makes a distribution after December 31, 2009, and
before the date of the enactment of this Act; and
(B) which would (but for the second sentence of paragraph
(1)) have been required to withhold with respect to such
distribution under section 1445 of such Code,
such investment company shall not be liable to any person to
whom such distribution was made for any amount so withheld
and paid over to the Secretary of the Treasury.
SEC. 263. EXCEPTIONS FOR ACTIVE FINANCING INCOME.
(a) In General.--Sections 953(e)(10) and 954(h)(9) are each
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Conforming Amendment.--Section 953(e)(10) is amended by
striking ``December 31, 2009'' and inserting ``December 31,
2010''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2009, and to taxable years of
United States shareholders with or within which any such
taxable year of such foreign corporation ends.
SEC. 264. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED
CONTROLLED FOREIGN CORPORATIONS UNDER FOREIGN
PERSONAL HOLDING COMPANY RULES.
(a) In General.--Subparagraph (C) of section 954(c)(6) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years of foreign corporations
beginning after December 31, 2009, and to taxable years of
United States shareholders with or within which any such
taxable year of such foreign corporation ends.
SEC. 265. BASIS ADJUSTMENT TO STOCK OF S CORPS MAKING
CHARITABLE CONTRIBUTIONS OF PROPERTY.
(a) In General.--Paragraph (2) of section 1367(a) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to contributions made in taxable years beginning
after December 31, 2009.
SEC. 266. EMPOWERMENT ZONE TAX INCENTIVES.
(a) In General.--Section 1391 is amended--
(1) by striking ``December 31, 2009'' in subsection
(d)(1)(A)(i) and inserting ``December 31, 2010''; and
(2) by striking the last sentence of subsection (h)(2).
(b) Increased Exclusion of Gain on Stock of Empowerment
Zone Businesses.--Subparagraph (C) of section 1202(a)(2) is
amended--
(1) by striking ``December 31, 2014'' and inserting
``December 31, 2015''; and
(2) by striking ``2014'' in the heading and inserting
``2015''.
(c) Treatment of Certain Termination Dates Specified in
Nominations.--In the case of a designation of an empowerment
zone the nomination for which included a termination date
which is contemporaneous with the date specified in
subparagraph (A)(i) of section 1391(d)(1) of the Internal
Revenue Code of 1986 (as in effect before the enactment of
this Act), subparagraph (B) of such section shall not apply
with respect to such designation unless, after the date of
the enactment of this section, the entity which made such
nomination reconfirms such termination date, or amends the
nomination to provide for a new termination date, in such
manner as the Secretary of the Treasury (or the Secretary's
designee) may provide.
(d) Effective Date.--The amendments made by this section
shall apply to periods after December 31, 2009.
SEC. 267. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF
COLUMBIA.
(a) In General.--Subsection (f) of section 1400 is amended
by striking ``December 31, 2009'' each place it appears and
inserting ``December 31, 2010''.
(b) Tax-exempt DC Empowerment Zone Bonds.--Subsection (b)
of section 1400A is amended by striking ``December 31, 2009''
and inserting ``December 31, 2010''.
(c) Zero-percent Capital Gains Rate.--
(1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A),
(4)(A)(i), and (4)(B)(i)(I) of section 1400B(b) are each
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(2) Limitation on period of gains.--
(A) In general.--Paragraph (2) of section 1400B(e) is
amended--
(i) by striking ``December 31, 2014'' and inserting
``December 31, 2015''; and
(ii) by striking ``2014'' in the heading and inserting
``2015''.
(B) Partnerships and s-corps.--Paragraph (2) of section
1400B(g) is amended by striking ``December 31, 2014'' and
inserting ``December 31, 2015''.
(d) First-time Homebuyer Credit.--Subsection (i) of section
1400C is amended by striking ``January 1, 2010'' and
inserting ``January 1, 2011''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to periods after December 31, 2009.
(2) Tax-exempt dc empowerment zone bonds.--The amendment
made by subsection (b) shall apply to bonds issued after
December 31, 2009.
(3) Acquisition dates for zero-percent capital gains
rate.--The amendments made by subsection (c) shall apply to
property acquired or substantially improved after December
31, 2009.
(4) Homebuyer credit.--The amendment made by subsection (d)
shall apply to homes purchased after December 31, 2009.
SEC. 268. RENEWAL COMMUNITY TAX INCENTIVES.
(a) In General.--Subsection (b) of section 1400E is
amended--
[[Page H4136]]
(1) by striking ``December 31, 2009'' in paragraphs (1)(A)
and (3) and inserting ``December 31, 2010''; and
(2) by striking ``January 1, 2010'' in paragraph (3) and
inserting ``January 1, 2011''.
(b) Zero-percent Capital Gains Rate.--
(1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A),
(4)(A)(i), and (4)(B)(i) of section 1400F(b) are each amended
by striking ``January 1, 2010'' and inserting ``January 1,
2011''.
(2) Limitation on period of gains.--Paragraph (2) of
section 1400F(c) is amended--
(A) by striking ``December 31, 2014'' and inserting
``December 31, 2015''; and
(B) by striking ``2014'' in the heading and inserting
``2015''.
(3) Clerical amendment.--Subsection (d) of section 1400F is
amended by striking ``and `December 31, 2014' for `December
31, 2014' ''.
(c) Commercial Revitalization Deduction.--
(1) In general.--Subsection (g) of section 1400I is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(2) Conforming amendment.--Subparagraph (A) of section
1400I(d)(2) is amended by striking ``after 2001 and before
2010'' and inserting ``which begins after 2001 and before the
date referred to in subsection (g)''.
(d) Increased Expensing Under Section 179.--Subparagraph
(A) of section 1400J(b)(1) is amended by striking ``January
1, 2010'' and inserting ``January 1, 2011''.
(e) Treatment of Certain Termination Dates Specified in
Nominations.--In the case of a designation of a renewal
community the nomination for which included a termination
date which is contemporaneous with the date specified in
subparagraph (A) of section 1400E(b)(1) of the Internal
Revenue Code of 1986 (as in effect before the enactment of
this Act), subparagraph (B) of such section shall not apply
with respect to such designation unless, after the date of
the enactment of this section, the entity which made such
nomination reconfirms such termination date, or amends the
nomination to provide for a new termination date, in such
manner as the Secretary of the Treasury (or the Secretary's
designee) may provide.
(f) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to periods after December 31, 2009.
(2) Acquisitions.--The amendments made by subsections
(b)(1) and (d) shall apply to acquisitions after December 31,
2009.
(3) Commercial revitalization deduction.--
(A) In general.--The amendment made by subsection (c)(1)
shall apply to buildings placed in service after December 31,
2009.
(B) Conforming amendment.--The amendment made by subsection
(c)(2) shall apply to calendar years beginning after December
31, 2009.
SEC. 269. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM
EXCISE TAXES TO PUERTO RICO AND THE VIRGIN
ISLANDS.
(a) In General.--Paragraph (1) of section 7652(f) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to distilled spirits brought into the United
States after December 31, 2009.
SEC. 270. PAYMENT TO AMERICAN SAMOA IN LIEU OF EXTENSION OF
ECONOMIC DEVELOPMENT CREDIT.
The Secretary of the Treasury (or his designee) shall pay
$18,000,000 to the Government of American Samoa for purposes
of economic development. The payment made under the preceding
sentence shall be treated for purposes of section 1324 of
title 31, United States Code, as a refund of internal revenue
collections to which such section applies.
SEC. 271. ELECTION TO TEMPORARILY UTILIZE UNUSED AMT CREDITS
DETERMINED BY DOMESTIC INVESTMENT.
(a) In General.--Section 53 is amended by adding at the end
the following new subsection:
``(g) Election for Corporations With New Domestic
Investments.--
``(1) In general.--If a corporation elects to have this
subsection apply for its first taxable year beginning after
December 31, 2009, the limitation imposed by subsection (c)
for such taxable year shall be increased by the AMT credit
adjustment amount.
``(2) AMT credit adjustment amount.--For purposes of
paragraph (1), the term `AMT credit adjustment amount' means,
the lesser of--
``(A) 50 percent of a corporation's minimum tax credit for
its first taxable year beginning after December 31, 2009,
determined under subsection (b), or
``(B) 10 percent of new domestic investments made during
such taxable year.
``(3) New domestic investments.--For purposes of this
subsection, the term `new domestic investments' means the
cost of qualified property (as defined in section
168(k)(2)(A)(i))--
``(A) the original use of which commences with the taxpayer
during the taxable year, and
``(B) which is placed in service in the United States by
the taxpayer during such taxable year.
``(4) Credit refundable.--For purposes of subsection (b) of
section 6401, the aggregate increase in the credits allowable
under this part for any taxable year resulting from the
application of this subsection shall be treated as allowed
under subpart C (and not under any other subpart). For
purposes of section 6425, any amount treated as so allowed
shall be treated as a payment of estimated income tax for the
taxable year.
``(5) Election.--An election under this subsection shall be
made at such time and in such manner as prescribed by the
Secretary, and once made, may be revoked only with the
consent of the Secretary. Not later than 90 days after the
date of the enactment of this subsection, the Secretary shall
issue guidance specifying such time and manner.
``(6) Treatment of certain partnership investments.--For
purposes of this subsection, a corporation shall take into
account its allocable share of any new domestic investments
by a partnership for any taxable year if, and only if, more
than 90 percent of the capital and profits interests in such
partnership are owned by such corporation (directly or
indirectly) at all times during such taxable year.
``(7) No double benefit.--
``(A) In general.--A corporation making an election under
this subsection may not make an election under subparagraph
(H) of section 172(b)(1).
``(B) Special rules with respect to taxpayers previously
electing applicable net operating losses.-- In the case of a
corporation which made an election under subparagraph (H) of
section 172(b)(1) and elects the application of this
subsection--
``(i) Election of applicable net operating loss treated as
revoked.--The election under such subparagraph (H) shall
(notwithstanding clause (iii)(II) of such subparagraph) be
treated as having been revoked by the taxpayer.
``(ii) Coordination with provision for expedited refund.--
The amount otherwise treated as a payment of estimated income
tax under the last sentence of paragraph (4) shall be reduced
(but not below zero) by the aggregate increase in unpaid tax
liability determined under this chapter by reason of the
revocation of the election under clause (i).
``(iii) Application of statute of limitations.--With
respect to the revocation of an election under clause (i)--
``(I) the statutory period for the assessment of any
deficiency attributable to such revocation shall not expire
before the end of the 3-year period beginning on the date of
the election to have this subsection apply, and
``(II) such deficiency may be assessed before the
expiration of such 3-year period notwithstanding the
provisions of any other law or rule of law which would
otherwise prevent such assessment.
``(C) Exception for eligible small businesses.--
Subparagraphs (A) and (B) shall not apply to an eligible
small business as defined in section 172(b)(1)(H)(v)(II).
``(8) Regulations.--The Secretary may issue such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this subsection,
including to prevent fraud and abuse under this
subsection.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A) is amended by inserting
``53(g),'' after ``53(e),''.
(2) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``53(g),'' after ``53(e),''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2009.
SEC. 272. STUDY OF EXTENDED TAX EXPENDITURES.
(a) Findings.--Congress finds the following:
(1) Currently, the aggregate cost of Federal tax
expenditures rivals, or even exceeds, the amount of total
Federal discretionary spending.
(2) Given the escalating public debt, a critical
examination of this use of taxpayer dollars is essential.
(3) Additionally, tax expenditures can complicate the
Internal Revenue Code of 1986 for taxpayers and complicate
tax administration for the Internal Revenue Service.
(4) To facilitate a better understanding of tax
expenditures in the future, it is constructive for
legislation extending these provisions to include a study of
such provisions.
(b) Requirement to Report.--Not later than November 30,
2010, the Chief of Staff of the Joint Committee on Taxation,
in consultation with the Comptroller General of the United
States, shall submit to the Committee on Ways and Means of
the House of Representatives and the Committee on Finance of
the Senate a report on each tax expenditure (as defined in
section 3(3) of the Congressional Budget Impoundment Control
Act of 1974 (2 U.S.C. 622(3)) extended by this title.
(c) Rolling Submission of Reports.--The Chief of Staff of
the Joint Committee on Taxation shall initially submit the
reports for each such tax expenditure enacted in this
subtitle (relating to business tax relief) and subtitle A
(relating to energy) in order of the tax expenditure
incurring the least aggregate cost to the greatest aggregate
cost (determined by reference to the cost estimate of this
Act by the Joint Committee on Taxation). Thereafter, such
reports may be submitted in such order as the Chief of Staff
determines appropriate.
(d) Contents of Report.--Such reports shall contain the
following:
(1) An explanation of the tax expenditure and any relevant
economic, social, or other context under which it was first
enacted.
(2) A description of the intended purpose of the tax
expenditure.
(3) An analysis of the overall success of the tax
expenditure in achieving such purpose, and evidence
supporting such analysis.
(4) An analysis of the extent to which further extending
the tax expenditure, or making it permanent, would contribute
to achieving such purpose.
(5) A description of the direct and indirect beneficiaries
of the tax expenditure, including identifying any unintended
beneficiaries.
(6) An analysis of whether the tax expenditure is the most
cost-effective method for achieving the purpose for which it
was intended, and a description of any more cost-effective
methods through which such purpose could be accomplished.
[[Page H4137]]
(7) A description of any unintended effects of the tax
expenditure that are useful in understanding the tax
expenditure's overall value.
(8) An analysis of how the tax expenditure could be
modified to better achieve its original purpose.
(9) A brief description of any interactions (actual or
potential) with other tax expenditures or direct spending
programs in the same or related budget function worthy of
further study.
(10) A description of any unavailable information the staff
of the Joint Committee on Taxation may need to complete a
more thorough examination and analysis of the tax
expenditure, and what must be done to make such information
available.
(e) Minimum Analysis by Deadline.--In the event the Chief
of Staff of the Joint Committee on Taxation concludes it will
not be feasible to complete all reports by the date specified
in subsection (a), at a minimum, the reports for each tax
expenditure enacted in this subtitle (relating to business
tax relief) and subtitle A (relating to energy) shall be
completed by such date.
Subtitle D--Temporary Disaster Relief Provisions
PART I--NATIONAL DISASTER RELIEF
SEC. 281. WAIVER OF CERTAIN MORTGAGE REVENUE BOND
REQUIREMENTS.
(a) In General.--Paragraph (11) of section 143(k) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Special Rule for Residences Destroyed in Federally
Declared Disasters.--Paragraph (13) of section 143(k), as
redesignated by subsection (c), is amended by striking
``January 1, 2010'' in subparagraphs (A)(i) and (B)(i) and
inserting ``January 1, 2011''.
(c) Technical Amendment.--Subsection (k) of section 143 is
amended by redesignating the second paragraph (12) (relating
to special rules for residences destroyed in federally
declared disasters) as paragraph (13).
(d) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendment made by this section shall apply to
bonds issued after December 31, 2009.
(2) Residences destroyed in federally declared disasters.--
The amendments made by subsection (b) shall apply with
respect to disasters occurring after December 31, 2009.
(3) Technical amendment.--The amendment made by subsection
(c) shall take effect as if included in section 709 of the
Tax Extenders and Alternative Minimum Tax Relief Act of 2008.
SEC. 282. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED
DISASTERS.
(a) In General.--Subclause (I) of section 165(h)(3)(B)(i)
is amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) $500 Limitation.--Paragraph (1) of section 165(h) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(c) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply to federally declared disasters occurring after
December 31, 2009.
(2) $500 limitation.--The amendment made by subsection (b)
shall apply to taxable years beginning after December 31,
2009.
SEC. 283. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED
DISASTER PROPERTY.
(a) In General.--Subclause (I) of section 168(n)(2)(A)(ii)
is amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to disasters occurring after December 31, 2009.
SEC. 284. NET OPERATING LOSSES ATTRIBUTABLE TO FEDERALLY
DECLARED DISASTERS.
(a) In General.--Subclause (I) of section 172(j)(1)(A)(i)
is amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to losses attributable to disasters occurring
after December 31, 2009.
SEC. 285. EXPENSING OF QUALIFIED DISASTER EXPENSES.
(a) In General.--Subparagraph (A) of section 198A(b)(2) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to expenditures on account of disasters occurring
after December 31, 2009.
PART II--REGIONAL PROVISIONS
Subpart A--New York Liberty Zone
SEC. 291. SPECIAL DEPRECIATION ALLOWANCE FOR NONRESIDENTIAL
AND RESIDENTIAL REAL PROPERTY.
(a) In General.--Subparagraph (A) of section 1400L(b)(2) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2009.
SEC. 292. TAX-EXEMPT BOND FINANCING.
(a) In General.--Subparagraph (D) of section 1400L(d)(2) is
amended by striking ``January 1, 2010'' and inserting
``January 1, 2011''.
(b) Effective Date.--The amendment made by this section
shall apply to bonds issued after December 31, 2009.
Subpart B--GO Zone
SEC. 295. INCREASE IN REHABILITATION CREDIT.
(a) In General.--Subsection (h) of section 1400N is amended
by striking ``December 31, 2009'' and inserting ``December
31, 2010''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid or incurred after December 31,
2009.
SEC. 296. WORK OPPORTUNITY TAX CREDIT WITH RESPECT TO CERTAIN
INDIVIDUALS AFFECTED BY HURRICANE KATRINA FOR
EMPLOYERS INSIDE DISASTER AREAS.
(a) In General.--Paragraph (1) of section 201(b) of the
Katrina Emergency Tax Relief Act of 2005 is amended by
striking ``4-year'' and inserting ``5-year''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to individuals hired after August 27, 2009.
SEC. 297. EXTENSION OF LOW-INCOME HOUSING CREDIT RULES FOR
BUILDINGS IN GO ZONES.
Section 1400N(c)(5) is amended by striking ``January 1,
2011'' and inserting ``January 1, 2013''.
TITLE III--PENSION PROVISIONS
Subtitle A--Pension Funding Relief
PART 1--SINGLE-EMPLOYER PLANS
SEC. 301. EXTENDED PERIOD FOR SINGLE-EMPLOYER DEFINED BENEFIT
PLANS TO AMORTIZE CERTAIN SHORTFALL
AMORTIZATION BASES.
(a) ERISA Amendments.--
(1) In general.--Section 303(c)(2) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1083(c)(2))
is amended by adding at the end the following subparagraphs:
``(D) Special rule.--
``(i) In general.--In the case of the shortfall
amortization base of a plan for any applicable plan year, the
shortfall amortization installments are the amounts described
in clause (ii) or (iii), if made applicable by an election
under clause (iv). In the absence of a timely election, such
installments shall be determined without regard to this
subparagraph.
``(ii) 2 plus 7 amortization schedule.--The shortfall
amortization installments described in this clause are--
``(I) in the case of the first 2 plan years in the 9-plan-
year period beginning with the applicable plan year, interest
on the shortfall amortization base (determined by using the
effective interest rate for the applicable plan year), and
``(II) in the case of the last 7 plan years in such 9-plan-
year period, the amounts necessary to amortize the balance of
such shortfall amortization base in level annual installments
over such last 7 plan years (determined using the segment
rates determined under subparagraph (C) of subsection (h)(2)
for the applicable plan year, applied under rules similar to
the rules of subparagraph (B) of subsection (h)(2)).
``(iii) 15-year amortization.--The shortfall amortization
installments described in this clause are the amounts under
subparagraphs (A) and (B) determined by substituting `15
plan-year period' for `7-plan-year period'.
``(iv) Election.--
``(I) In general.--The plan sponsor may, with respect to a
plan, elect, with respect to any of not more than 2
applicable plan years, to determine shortfall amortization
installments under this subparagraph. An election under
either clause (ii) or clause (iii) may be made with respect
to either of such applicable plan years.
``(II) Eligibility for election.--An election may be made
to determine shortfall amortization installments under this
subparagraph with respect to a plan only if, as of the date
of the election--
``(aa) the plan sponsor is not a debtor in a case under
title 11, United States Code, or similar Federal or State
law,
``(bb) there are no unpaid minimum required contributions
with respect to the plan for purposes of section 4971 of the
Internal Revenue Code of 1986,
``(cc) there is no lien in favor of the plan under
subsection (k) or under section 430(k) of such Code, and
``(dd) a distress termination has not been initiated for
the plan under section 4041(c).
``(III) Rules relating to election.--Such election shall be
made at such times, and in such form and manner, as shall be
prescribed by the Secretary of the Treasury and shall be
irrevocable, except under such limited circumstances, and
subject to such conditions, as such Secretary may prescribe.
``(E) Applicable plan year.--
``(i) In general.--For purposes of this paragraph, the term
`applicable plan year' means, subject to the election of the
plan sponsor under subparagraph (D)(iv), each of not more
than 2 of the plan years beginning in 2008, 2009, 2010, or
2011.
``(ii) Special rule relating to 2008.--A plan year may be
elected as an applicable plan year pursuant to this
subparagraph only if the due date under subsection (j)(1) for
the payment of the minimum required contribution for such
plan year occurs on or after March 10, 2010.
``(F) Increases in shortfall amortization installments in
cases of excess compensation or certain dividends or stock
redemptions.--
``(i) In general.--If, with respect to an election for an
applicable plan year under subparagraph (D), there is an
installment acceleration amount with respect to a plan for
any plan year in the restriction period (or if there is an
installment acceleration amount carried forward to a plan
year not in the restriction period), then the shortfall
amortization installment otherwise determined and payable
under this paragraph for such plan year shall be increased by
such amount.
``(ii) Back-end adjustment to amortization schedule.--
Subject to rules prescribed by the Secretary of the Treasury,
if a shortfall amortization installment with respect to any
shortfall amortization base for an applicable plan year is
required to be increased for any plan year under clause (i),
subsequent shortfall amortization installments with respect
to such base shall be reduced, in reverse order of the
otherwise required installments beginning with the final
scheduled installment, to the extent necessary to limit the
present value of such subsequent shortfall amortization
installments (after application of this subparagraph) to the
present value of the remaining unamortized shortfall
amortization base.
``(iii) Installment acceleration amount.--For purposes of
this subparagraph--
[[Page H4138]]
``(I) In general.--The term `installment acceleration
amount' means, with respect to any plan year in a restriction
period with respect to an applicable plan year, the sum of--
``(aa) the aggregate amount of excess employee compensation
determined under clause (iv) for the plan year, plus
``(bb) the dividend and redemption amount determined under
clause (v) for the plan year.
``(II) Cumulative limitation.--The installment acceleration
amount for any plan year shall not exceed the excess (if any)
of--
``(aa) the sum of the shortfall amortization installments
for the plan year and all preceding plan years in the
amortization period elected under subparagraph (D) with
respect to the shortfall amortization base with respect to an
applicable year, determined without regard to subparagraph
(D) and this subparagraph, over
``(bb) the sum of the shortfall amortization installments
for such plan year and all such preceding plan years,
determined after application of subparagraph (D) (and in the
case of any preceding plan year, after application of this
subparagraph).
``(III) Carryover of excess installment acceleration
amounts.--
``(aa) In general.--If the installment acceleration amount
for any plan year (determined without regard to subclause
(II)) exceeds the limitation under subclause (II), then,
subject to item (bb), such excess shall be treated as an
installment acceleration amount for the succeeding plan year.
``(bb) Cap to apply.--If any amount treated as an
installment acceleration amount under item (aa) or this item
with respect any succeeding plan year, when added to other
installment acceleration amounts (determined without regard
to subclause (II)) with respect to the plan year, exceeds the
limitation under subclause (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.
``(cc) Limitation on years to which amounts carried
forward.--No amount shall be carried forward under item (aa)
or (bb) to a plan year which begins after the last plan year
in the restriction period (or after the second plan year
following such last plan year in the case of an election year
with respect to which 15-year amortization was elected under
subparagraph (D)(iii)).
``(dd) Ordering rules.--For purposes of applying item (bb),
installment acceleration amounts for the plan year
(determined without regard to any carryover under this
clause) shall be applied first against the limitation under
subclause (II) and then carryovers to such plan year shall be
applied against such limitation on a first-in, first-out
basis.
``(iv) Excess employee compensation.--
``(I) In general.--For purposes of this paragraph, the term
`excess employee compensation' means the sum of--
``(aa) with respect to any employee, for any plan year, the
excess (if any) of--
``(AA) 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
``(BB) $1,000,000, plus
``(bb) the amount of assets 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, during the calendar year 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.
``(II) No double counting.--No amount shall be taken into
account under subclause (I) more than once.
``(III) Employee; remuneration.--For purposes of this
clause, 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 the Internal Revenue Code
of 1986 for the taxable year ending during such calendar
year, and the term `remuneration' shall include earned income
of such an individual.
``(IV) Certain payments under existing contracts.--There
shall not be taken into account under subclause (I)(aa) any
remuneration consisting of nonqualified deferred
compensation, restricted stock (or restricted stock units),
stock options, or stock appreciation rights payable or
granted under a written binding contract that was in effect
on March 1, 2010, and which was not modified in any material
respect before such remuneration is paid.
``(V) Only remuneration for post-2009 services counted.--
Remuneration shall be taken into account under subclause
(I)(aa) only to the extent attributable to services performed
by the employee for the plan sponsor after December 31, 2009.
``(VI) Commissions.--
``(aa) In general.--There shall not be taken into account
under subclause (I)(aa) 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.
``(bb) Specified employees.--Item (aa) shall not apply in
the case of any specified employee (within the meaning of
section 409A(a)(2)(B)(i) of the Internal Revenue Code of
1986) or any employee who would be such a specified employee
if the plan sponsor were a corporation described in such
section.
``(VII) Indexing of amount.--In the case of any calendar
year beginning after 2010, the dollar amount under subclause
(I)(aa)(BB) shall be increased by an amount equal to--
``(aa) such dollar amount, multiplied by
``(bb) the cost-of-living adjustment determined under
section 1(f)(3) of the Internal Revenue Code of 1986 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 $20,000, such increase shall be rounded to the
next lowest multiple of $20,000.
``(v) Certain dividends and redemptions.--
``(I) In general.--The dividend and redemption amount
determined under this clause for any plan year is the lesser
of--
``(aa) the excess of--
``(AA) the sum of the dividends paid during the plan year
by the plan sponsor, plus the amounts paid for the redemption
of stock of the plan sponsor redeemed during the plan year,
over
``(BB) an amount equal to the average of adjusted annual
net income of the plan sponsor for the last 5 fiscal years of
the plan sponsor ending before such plan year, or
``(bb) the sum of--
``(AA) the amounts paid for the redemption of stock of the
plan sponsor redeemed during the plan year, plus
``(BB) the excess of dividends paid during the plan year by
the plan sponsor over the dividend base amount.
``(II) Definitions.--
``(aa) Adjusted annual net income.--For purposes of
subclause (I)(aa)(BB), the term `adjusted annual net income'
with respect to any fiscal year means annual net income,
determined in accordance with generally accepted accounting
principles (before after-tax gain or loss on any sale of
assets), but without regard to any reduction by reason of
depreciation or amortization, except that in no event shall
adjusted annual net income for any fiscal year be less than
zero.
``(bb) Dividend base amount.--For purposes of this clause,
the term `dividend base amount' means, with respect to a plan
year, an amount equal to the greater of--
``(AA) the median of the amounts of the dividends paid
during each of the last 5 fiscal years of the plan sponsor
ending before such plan year, or
``(BB) the amount of dividends paid during such plan year
on preferred stock that was issued on or before May 21, 2010,
or that is replacement stock for such preferred stock.
``(III) Only certain post-2009 dividends and redemptions
counted.--For purposes of subclause (I) (other than for
purposes of calculating the dividend base amount), there
shall only be taken into account dividends declared, and
redemptions occurring, after February 28, 2010.
``(IV) Exception for intra-group dividends.--Dividends 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 subclause (I).
``(V) Exception for stock dividends.--Any distribution by
the plan sponsor to its shareholders of stock issued by the
plan sponsor shall not be taken into account under subclause
(I).
``(VI) Exception for certain redemptions.--The following
shall not be taken into account under subclause (I):
``(aa) Redemptions of securities which, at the time of
redemption, are not listed on an established securities
market and--
``(AA) are made pursuant to a pension plan that is
qualified under section 401 of the Internal Revenue Code of
1986 or a shareholder-approved program, or
``(BB) are made on account of an employee's termination of
employment with the plan sponsor, or the death or disability
of a shareholder.
``(bb) Redemptions of securities which are not, immediately
after issuance, listed on an established securities market
and are, or had previously been--
``(AA) held, directly or indirectly, by, or for the benefit
of, the Federal Government or a Federal reserve bank, or
``(BB) held by a national government (or a government-
related entity of such a government) or an employee benefit
plan if such shares are substantially identical to shares
described in subitem (AA).
``(vi) Other definitions and rules.--For purposes of this
subparagraph--
``(I) Plan sponsor.--The term `plan sponsor' includes any
member of the plan sponsor's controlled group (as defined in
section 302(d)(3)).
``(II) Restriction period.--The term `restriction period'
means, with respect to any applicable plan year with respect
to which an election is made under subparagraph (D)--
``(aa) except as provided in item (bb), the 3-year period
beginning with the applicable plan year (or, if later, the
first plan year beginning after December 31, 2009), or
``(bb) if the plan sponsor elects 15-year amortization for
the shortfall amortization base for the applicable plan year,
the 5-year period beginning with such plan year (or, if
later, the first plan year beginning after December 31,
2009).
``(III) Elections for multiple plans.--If a plan sponsor
makes elections under subparagraph (D) with respect to 2 or
more plans, the Secretary of the Treasury shall provide rules
for the application of this subparagraph 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 clause (i) (determined
without regard to this subparagraph).
``(G) Mergers and acquisitions.--The Secretary of the
Treasury shall prescribe rules for the application of
subparagraphs (D) and (F) in any case where there is a merger
or acquisition involving a plan sponsor making the election
under subparagraph (D).
[[Page H4139]]
``(H) Regulations and guidance.--The Secretary of the
Treasury may prescribe such regulations and other guidance of
general applicability as such Secretary may determine
necessary to achieve the purposes of subparagraphs (D) and
(F).''.
(2) Notice requirement.--Section 204 of such Act (29 U.S.C.
1054) is amended--
(A) by redesignating subsection (k) as subsection (l); and
(B) by inserting after subsection (j) the following new
subsection:
``(k) Notice in Connection With Shortfall Amortization
Election.--
``(1) In general.--Not later 30 days after the date of an
election under clause (iv) of section 303(c)(2)(D) in
connection with a single-employer plan, the plan
administrator shall provide notice of such election in
accordance with this subsection to each plan participant and
beneficiary, each labor organization representing such
participants and beneficiaries, and the Pension Benefit
Guaranty Corporation.
``(2) Matters included in notice.--Each notice provided
pursuant to this subsection shall set forth--
``(A) a statement that recently enacted legislation permits
employers to delay pension funding;
``(B) with respect to required contributions--
``(i) the amount of contributions that would have been
required had the election not been made;
``(ii) the amount of the reduction in required
contributions for the applicable plan year that occurs on
account of the election; and
``(iii) the number of plan years to which such reduction
will apply;
``(C) with respect to a plan's funding status as of the end
of the plan year preceding the applicable plan year--
``(i) the liabilities determined under section
4010(d)(1)(A); and
``(ii) the market value of assets of the plan; and
``(D) with respect to installment acceleration amounts (as
defined in section 303(c)(2)(F)(iii)(I))--
``(i) an explanation of section 303(c)(2)(F) (relating to
increases in shortfall amortization installments in cases of
excess compensation or certain dividends or stock
redemptions); and
``(ii) a statement that increases in required contributions
may occur in the event of future payments of excess employee
compensation or certain share repurchasing or dividend
activity and that subsequent notices of any such payments or
activity will be provided in the annual funding notice
provided pursuant to section 101(f).
``(3) Other requirements.--
``(A) Form.--The notice required by paragraph (1) shall be
written in a manner calculated to be understood by the
average plan participant. The Secretary of the Treasury shall
prescribe a model notice that a plan administrator may use to
satisfy the requirements of paragraph (1).
``(B) Provision to designated persons.--Any notice under
paragraph (1) may be provided to a person designated, in
writing, by the person to which it would otherwise be
provided.
``(4) Effect of egregious failure.--
``(A) In general.--In the case of any egregious failure to
meet any requirement of this subsection with respect to any
election, such election shall be treated as having not been
made.
``(B) Egregious failure.--For purposes of subparagraph (A),
there is an egregious failure to meet the requirements of
this subsection if such failure is in the control of the plan
sponsor and is--
``(i) an intentional failure (including any failure to
promptly provide the required notice or information after the
plan administrator discovers an unintentional failure to meet
the requirements of this subsection),
``(ii) a failure to provide most of the participants and
beneficiaries with most of the information they are entitled
to receive under this subsection, or
``(iii) a failure which is determined to be egregious under
regulations prescribed by the Secretary of the Treasury.
``(5) Use of new technologies.--The Secretary of the
Treasury may, in consultation with the Secretary, by
regulations or other guidance of general applicability, allow
any notice under this subsection to be provided using new
technologies.''.
(C) Subsequent supplemental notices.--Section 101(f)(2)(C)
of such Act (29 U.S.C. 1021(f)(2)(C)) is amended--
(i) by striking ``and'' at the end of clause (i);
(ii) by redesignating clause (ii) as clause (iii); and
(iii) by inserting after clause (i) the following new
clause:
``(ii) any excess employee compensation amounts and any
dividends and redemptions amounts determined under section
303(c)(2)(F) for the preceding plan year with respect to the
plan, and''.
(3) Disregard of installment acceleration amounts in
determining quarterly contributions.--Section 303(j)(3) of
such Act (29 U.S.C. 1083(j)(3)) is amended by adding at the
end the following new subparagraph:
``(F) Disregard of installment acceleration amounts.--
Subparagraph (D) shall be applied without regard to any
increase under subsection (c)(2)(F).''.
(4) Conforming amendment.--Section 303(c)(1) of such Act
(29 U.S.C. 1083(c)(1)) is amended 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''.
(b) IRC Amendments.--
(1) In general.--Section 430(c)(2) of the Internal Revenue
Code of 1986 is amended by adding at the end the following
subparagraphs:
``(D) Special rule.--
``(i) In general.--In the case of the shortfall
amortization base of a plan for any applicable plan year, the
shortfall amortization installments are the amounts described
in clause (ii) or (iii), if made applicable by an election
under clause (iv). In the absence of a timely election, such
installments shall be determined without regard to this
subparagraph.
``(ii) 2 plus 7 amortization schedule.--The shortfall
amortization installments described in this clause are--
``(I) in the case of the first 2 plan years in the 9-plan-
year period beginning with the applicable plan year, interest
on the shortfall amortization base (determined by using the
effective interest rate for the applicable plan year), and
``(II) in the case of the last 7 plan years in such 9-plan-
year period, the amounts necessary to amortize the balance of
such shortfall amortization base in level annual installments
over such last 7 plan years (determined using the segment
rates determined under subparagraph (C) of subsection (h)(2)
for the applicable plan year, applied under rules similar to
the rules of subparagraph (B) of subsection (h)(2)).
``(iii) 15-year amortization.--The shortfall amortization
installments described in this clause are the amounts under
subparagraphs (A) and (B) determined by substituting `15
plan-year period' for `7-plan-year period'.
``(iv) Election.--
``(I) In general.--The plan sponsor may, with respect to a
plan, elect, with respect to any of not more than 2
applicable plan years, to determine shortfall amortization
installments under this subparagraph. An election under
either clause (ii) or clause (iii) may be made with respect
to either of such applicable plan years.
``(II) Eligibility for election.--An election may be made
to determine shortfall amortization installments under this
subparagraph with respect to a plan only if, as of the date
of the election--
``(aa) the plan sponsor is not a debtor in a case under
title 11, United States Code, or similar Federal or State
law,
``(bb) there are no unpaid minimum required contributions
with respect to the plan for purposes of section 4971,
``(cc) there is no lien in favor of the plan under
subsection (k) or under section 303(k) of the Employee
Retirement Income Security Act of 1974, and
``(dd) a distress termination has not been initiated for
the plan under section 4041(c) of such Act.
``(III) Rules relating to election.--Such election shall be
made at such times, and in such form and manner, as shall be
prescribed by the Secretary and shall be irrevocable, except
under such limited circumstances, and subject to such
conditions, as the Secretary may prescribe.
``(E) Applicable plan year.--
``(i) In general.--For purposes of this paragraph, the term
`applicable plan year' means, subject to the election of the
plan sponsor under subparagraph (D)(iv), each of not more
than 2 of the plan years beginning in 2008, 2009, 2010, or
2011.
``(ii) Special rule relating to 2008.--A plan year may be
elected as an applicable plan year pursuant to this
subparagraph only if the due date under subsection (j)(1) for
the payment of the minimum required contribution for such
plan year occurs on or after March 10, 2010.
``(F) Increases in shortfall amortization installments in
cases of excess compensation or certain dividends or stock
redemptions.--
``(i) In general.--If, with respect to an election for an
applicable plan year under subparagraph (D), there is an
installment acceleration amount with respect to a plan for
any plan year in the restriction period (or if there is an
installment acceleration amount carried forward to a plan
year not in the restriction period), then the shortfall
amortization installment otherwise determined and payable
under this paragraph for such plan year shall be increased by
such amount.
``(ii) Back-end adjustment to amortization schedule.--
Subject to rules prescribed by the Secretary, if a shortfall
amortization installment with respect to any shortfall
amortization base for an applicable plan year is required to
be increased for any plan year under clause (i), subsequent
shortfall amortization installments with respect to such base
shall be reduced, in reverse order of the otherwise required
installments beginning with the final scheduled installment,
to the extent necessary to limit the present value of such
subsequent shortfall amortization installments (after
application of this subparagraph) to the present value of the
remaining unamortized shortfall amortization base.
``(iii) Installment acceleration amount.--For purposes of
this subparagraph--
``(I) In general.--The term `installment acceleration
amount' means, with respect to any plan year in a restriction
period with respect to an applicable plan year, the sum of--
``(aa) the aggregate amount of excess employee compensation
determined under clause (iv) for the plan year, plus
``(bb) the dividend and redemption amount determined under
clause (v) for the plan year.
``(II) Cumulative limitation.--The installment acceleration
amount for any plan year shall not exceed the excess (if any)
of--
``(aa) the sum of the shortfall amortization installments
for the plan year and all preceding plan years in the
amortization period elected under subparagraph (D) with
respect to the shortfall amortization base with respect to an
applicable year, determined without regard to subparagraph
(D) and this subparagraph, over
``(bb) the sum of the shortfall amortization installments
for such plan year and all such preceding plan years,
determined after application
[[Page H4140]]
of subparagraph (D) (and in the case of any preceding plan
year, after application of this subparagraph).
``(III) Carryover of excess installment acceleration
amounts.--
``(aa) In general.--If the installment acceleration amount
for any plan year (determined without regard to subclause
(II)) exceeds the limitation under subclause (II), then,
subject to item (bb), such excess shall be treated as an
installment acceleration amount for the succeeding plan year.
``(bb) Cap to apply.--If any amount treated as an
installment acceleration amount under item (aa) or this item
with respect any succeeding plan year, when added to other
installment acceleration amounts (determined without regard
to subclause (II)) with respect to the plan year, exceeds the
limitation under subclause (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.
``(cc) Limitation on years to which amounts carried
forward.--No amount shall be carried forward under item (aa)
or (bb) to a plan year which begins after the last plan year
in the restriction period (or after the second plan year
following such last plan year in the case of an election year
with respect to which 15-year amortization was elected under
subparagraph (D)(iii)).
``(dd) Ordering rules.--For purposes of applying item (bb),
installment acceleration amounts for the plan year
(determined without regard to any carryover under this
clause) shall be applied first against the limitation under
subclause (II) and then carryovers to such plan year shall be
applied against such limitation on a first-in, first-out
basis.
``(iv) Excess employee compensation.--
``(I) In general.--For purposes of this paragraph, the term
`excess employee compensation' means the sum of--
``(aa) with respect to any employee, for any plan year, the
excess (if any) of--
``(AA) the aggregate amount includible in income under
chapter 1 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
``(BB) $1,000,000, plus
``(bb) the amount of assets 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, during the calendar year 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.
``(II) No double counting.--No amount shall be taken into
account under subclause (I) more than once.
``(III) Employee; remuneration.--For purposes of this
clause, 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 `remuneration' shall
include earned income of such an individual.
``(IV) Certain payments under existing contracts.--There
shall not be taken into account under subclause (I) any
remuneration consisting of nonqualified deferred
compensation, restricted stock (or restricted stock units),
stock options, or stock appreciation rights payable or
granted under a written binding contract that was in effect
on March 1, 2010, and which was not modified in any material
respect before such remuneration is paid.
``(V) Only remuneration for post-2009 services counted.--
Remuneration shall be taken into account under subclause
(I)(aa) only to the extent attributable to services performed
by the employee for the plan sponsor after December 31, 2009.
``(VI) Commissions.--
``(aa) In general.--There shall not be taken into account
under subclause (I)(aa) 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.
``(bb) Specified employees.--Item (aa) shall not apply in
the case of any specified employee (within the meaning of
section 409A(a)(2)(B)(i)) or any employee who would be such a
specified employee if the plan sponsor were a corporation
described in such section.
``(VII) Indexing of amount.--In the case of any calendar
year beginning after 2010, the dollar amount under subclause
(I)(aa)(BB) shall be increased by an amount equal to--
``(aa) such dollar amount, multiplied by
``(bb) 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 $20,000, such increase shall be rounded to the
next lowest multiple of $20,000.
``(v) Certain dividends and redemptions.--
``(I) In general.--The dividend and redemption amount
determined under this clause for any plan year is the lesser
of--
``(aa) the excess of--
``(AA) the sum of the dividends paid during the plan year
by the plan sponsor, plus the amounts paid for the redemption
of stock of the plan sponsor redeemed during the plan year,
over
``(BB) an amount equal to the average of adjusted annual
net income of the plan sponsor for the last 5 fiscal years of
the plan sponsor ending before such plan year, or
``(bb) the sum of--
``(AA) the amounts paid for the redemption of stock of the
plan sponsor redeemed during the plan year, plus
``(BB) the excess of dividends paid during the plan year by
the plan sponsor over the dividend base amount.
``(II) Definitions.--
``(aa) Adjusted annual net income.--For purposes of
subclause (I)(aa)(BB), the term `adjusted annual net income'
with respect to any fiscal year means annual net income,
determined in accordance with generally accepted accounting
principles (before after-tax gain or loss on any sale of
assets), but without regard to any reduction by reason of
depreciation or amortization, except that in no event shall
adjusted annual net income for any fiscal year be less than
zero.
``(bb) Dividend base amount.--For purposes of this clause,
the term `dividend base amount' means, with respect to a plan
year, an amount equal to the greater of--
``(AA) the median of the amounts of the dividends paid
during each of the last 5 fiscal years of the plan sponsor
ending before such plan year, or
``(BB) the amount of dividends paid during such plan year
on preferred stock that was issued on or before May 21, 2010,
or that is replacement stock for such preferred stock.
``(III) Only certain post-2009 dividends and redemptions
counted.--For purposes of subclause (I) (other than for
purposes of calculating the dividend base amount), there
shall only be taken into account dividends declared, and
redemptions occurring, after February 28, 2010.
``(IV) Exception for intra-group dividends.--Dividends 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 subclause (I).
``(V) Exception for stock dividends.--Any distribution by
the plan sponsor to its shareholders of stock issued by the
plan sponsor shall not be taken into account under subclause
(I).
``(VI) Exception for certain redemptions.--The following
shall not be taken into account under subclause (I):
``(aa) Redemptions of securities which, at the time of
redemption, are not listed on an established securities
market and--
``(AA) are made pursuant to a pension plan that is
qualified under section 401 or a shareholder-approved
program, or
``(BB) are made on account of an employee's termination of
employment with the plan sponsor, or the death or disability
of a shareholder.
``(bb) Redemptions of securities which are not, immediately
after issuance, listed on an established securities market
and are, or had previously been--
``(AA) held, directly or indirectly, by, or for the benefit
of, the Federal Government or a Federal reserve bank, or
``(BB) held by a national government (or a government-
related entity of such a government) or an employee benefit
plan if such shares are substantially identical to shares
described in subitem (AA).
``(vi) Other definitions and rules.--For purposes of this
subparagraph--
``(I) Plan sponsor.--The term `plan sponsor' includes any
group of which the plan sponsor is a member and which is
treated as a single employer under subsection (b), (c), (m),
or (o) of section 414.
``(II) Restriction period.--The term `restriction period'
means, with respect to any applicable plan year with respect
to which an election is made under subparagraph (D)--
``(aa) except as provided in item (bb), the 3-year period
beginning with the applicable plan year (or, if later, the
first plan year beginning after December 31, 2009), or
``(bb) if the plan sponsor elects 15-year amortization for
the shortfall amortization base for the applicable plan year,
the 5-year period beginning with such plan year (or, if
later, the first plan year beginning after December 31,
2009).
``(III) Elections for multiple plans.--If a plan sponsor
makes elections under subparagraph (D) with respect to 2 or
more plans, the Secretary shall provide rules for the
application of this subparagraph 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 clause (i) (determined
without regard to this subparagraph).
``(G) Mergers and acquisitions.--The Secretary shall
prescribe rules for the application of subparagraphs (D) and
(F) in any case where there is a merger or acquisition
involving a plan sponsor making the election under
subparagraph (D).
``(H) Regulations and guidance.--The Secretary may
prescribe such regulations and other guidance of general
applicability as the Secretary may determine necessary to
achieve the purposes of subparagraphs (D) and (F).''.
(2) Notice requirement.--
(A) In general.--Section 4980F of such Code is amended--
(i) by striking ``subsection (e)'' each place it appears in
subsection (a) and paragraphs (1) and (3) of subsection (c)
and inserting ``subsections (e) and (f)'';
(ii) by striking ``subsection (e)'' in subsection (c)(2)(A)
and inserting ``subsection (e), (f), or both, as the case may
be''; and
(iii) by redesignating subsection (f) as subsection (g) and
by inserting after subsection (e) the following new
subsection:
``(f) Notice in Connection With Shortfall Amortization
Election.--
``(1) In general.--Not later 30 days after the date of an
election under clause (iv) of section 430(c)(2)(D) in
connection with a plan, the plan administrator shall provide
notice of such election in accordance with this subsection to
each plan participant and beneficiary, each labor
organization representing such participants and
[[Page H4141]]
beneficiaries, and the Pension Benefit Guaranty Corporation.
``(2) Matters included in notice.--Each notice provided
pursuant to this subsection shall set forth--
``(A) a statement that recently enacted legislation permits
employers to delay pension funding;
``(B) with respect to required contributions--
``(i) the amount of contributions that would have been
required had the election not been made;
``(ii) the amount of the reduction in required
contributions for the applicable plan year that occurs on
account of the election; and
``(iii) the number of plan years to which such reduction
will apply;
``(C) with respect to a plan's funding status as of the end
of the plan year preceding the applicable plan year--
``(i) the liabilities determined under section
4010(d)(1)(A) of the Employee Retirement Income Security Act
of 1974; and
``(ii) the market value of assets of the plan; and
``(D) with respect to installment acceleration amounts (as
defined in section 430(c)(2)(F)(iii)(I))--
``(i) an explanation of section 430(c)(2)(F) (relating to
increases in shortfall amortization installments in cases of
excess compensation or certain dividends or stock
redemptions); and
``(ii) a statement that increases in required contributions
may occur in the event of future payments of excess employee
compensation or certain share repurchasing or dividend
activity and that subsequent notices of any such payments or
activity will be provided in the annual funding notice
provided pursuant to section 101(f) of the Employee
Retirement Income Security Act of 1974.
``(3) Other requirements.--
``(A) Form.--The notice required by paragraph (1) shall be
written in a manner calculated to be understood by the
average plan participant and shall provide sufficient
information (as determined in accordance with regulations or
other guidance of general applicability prescribed by the
Secretary) to allow plan participants and beneficiaries to
understand the effect of the election. The Secretary shall
prescribe a model notice that a plan administrator may use to
satisfy the requirements of paragraph (1).
``(B) Provision to designated persons.--Any notice under
paragraph (1) may be provided to a person designated, in
writing, by the person to which it would otherwise be
provided.''.
(B) Conforming amendment.--Subsection (g) of section 4980F
of such Code is amended by inserting ``or (f)'' after
``subsection (e)''.
(3) Disregard of installment acceleration amounts in
determining quarterly contributions.--Section 430(j)(3) of
such Code is amended by adding at the end the following new
subparagraph:
``(F) Disregard of installment acceleration amounts.--
Subparagraph (D) shall be applied without regard to any
increase under subsection (c)(2)(F).''.
(4) Conforming amendment.--Paragraph (1) of section 430(c)
of such Code is amended 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''.
(c) Effective Date.--The amendments made by this section
shall apply to plan years beginning after December 31, 2007.
SEC. 302. 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 FUNDING RELIEF TO PLANS WITH
DELAYED EFFECTIVE DATE.
``(a) Alternative Elections.--
``(1) In general.--Subject to this section, a plan sponsor
of a plan to which section 104, 105, or 106 of this Act
applies may either elect the application of subsection (b)
with respect to the plan for not more than 2 applicable plan
years or elect the application of subsection (c) with respect
to the plan for 1 applicable plan year.
``(2) Eligibility for elections.--An election may be made
by a plan sponsor under paragraph (1) with respect to a plan
only if at the time of the election--
``(A) the plan sponsor is not a debtor in a case under
title 11, United States Code, or similar Federal or State
law,
``(B) there are no accumulated funding deficiencies (as
defined in section 302(a)(2) of the Employee Retirement
Income Security Act of 1974 (as in effect immediately before
the enactment of this Act) or in section 412(a) of the
Internal Revenue Code of 1986 (as so in effect)) with respect
to the plan,
``(C) there is no lien in favor of the plan under section
302(d) (as so in effect) or under section 412(n) of such Code
(as so in effect), and
``(D) a distress termination has not been initiated for the
plan under section 4041(c) of the Employee Retirement Income
Security Act of 1974.
``(b) Alternative Additional Funding Charge.--If the plan
sponsor elects the application of this subsection with
respect to the plan, for purposes of applying section 302(d)
of the Employee Retirement Income Security Act of 1974 (as in
effect before the amendments made by this subtitle and
subtitle B) and section 412(l) of the Internal Revenue Code
of 1986 (as so in effect)--
``(1) the deficit reduction contribution under paragraph
(2) of such section 302(d) and paragraph (2) of such section
412(l) for such plan for any applicable plan year, shall be
zero, and
``(2) the additional funding charge under paragraph (1) of
such section 302(d) and paragraph (1) of such section 412(l)
for such plan for any applicable plan year shall be increased
by an amount equal to the installment acceleration amount (as
defined in sections 303(c)(2)(F)(iii)(I) of such Act (as
amended by the American Jobs and Closing Tax Loopholes Act of
2010) and 430(c)(2)(F)(iii)(I) of such Code (as so amended))
with respect to the plan sponsor for such plan year,
determined by treating the later of such plan year or the
first plan year beginning after December 31, 2009, as the
restriction period.
``(c) Application of 15-year Amortization.--If the plan
sponsor elects the application of this subsection with
respect to the plan, for purposes of applying section 302(d)
of such Act (as in effect before the amendments made by this
subtitle and subtitle B) and section 412(l) of such Code (as
so in effect)--
``(1) in the case of the increased unfunded new liability
of the plan, the applicable percentage described in paragraph
(4)(C) of such section 302(d) and paragraph (4)(C) of such
section 412(l) for any pre-effective date plan year beginning
with or after the applicable plan year shall be the ratio
of--
``(A) the annual installments payable in each plan year if
the increased unfunded new liability for such plan year were
amortized in equal installments over the period beginning
with such plan year and ending with the last plan year in the
period of 15 plan years beginning with the applicable plan
year, 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,
``(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, and
``(3) the additional funding charge with respect to the
plan for a plan year shall be increased by an amount equal to
the installment acceleration amount (as defined in section
303(c)(2)(F)(iii) of such Act (as amended by the American
Jobs and Closing Tax Loopholes Act of 2010 and section
430(c)(2)(F)(iii) of such Code (as so amended)) with respect
to the plan sponsor for such plan year, determined without
regard to subclause (II) of such sections 303(c)(2)(F)(iii)
and 430(c)(2)(F)(iii).
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Applicable plan year.--
``(A) In general.--The term `applicable plan year' with
respect to a plan means, subject to the election of the plan
sponsor under subsection (a), a plan year beginning in 2009,
2010, or 2011.
``(B) Election.--
``(i) In general.--The election described in subsection (a)
shall be made at such times, and in such form and manner, as
shall be prescribed by the Secretary of the Treasury.
``(ii) Reduction in years which may be elected.--The number
of applicable plan years for which an election may be made
under section 303(c)(2)(D) of the Employee Retirement Income
Security Act of 1974 (as amended by the American Jobs and
Closing Tax Loopholes Act of 2010) or section 430(c)(2)(D) of
the Internal Revenue Code of 1986 (as so amended) shall be
reduced by the number of applicable plan years for which an
election under this section is made.
``(C) Allocation of installment acceleration amount for
multiple plan election.--In the case of an election under
this section with respect to 2 or more plans by the same plan
sponsor, the installment acceleration amount shall be
apportioned ratably with respect to such plans in proportion
to the deficit reduction contributions of the plans
determined without regard to subsection (b)(1).
``(2) Plan sponsor.--The term `plan sponsor' shall have the
meaning provided such term in section 303(c)(2)(F)(vi)(I) of
the Employee Retirement Income Security Act of 1974 (as
amended by the American Jobs and Closing Tax Loopholes Act of
2010) and section 430(c)(2)(F)(vi)(I) of the Internal Revenue
Code of 1986 (as so amended).
``(3) 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.
``(4) 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 (as in effect before the amendments
made by this subtitle and subtitle B) and section 412(c)(2)
of such Code (as so in effect) 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 (as so in effect) and 412(l)(8)(B)
of such Code (as so in effect)) of the plan for the second
plan year preceding the first applicable plan year of such
plan for which an election under this section is made.
``(5) Other definitions.--The terms `unfunded new
liability' and `current liability' shall have the meanings
set forth in section 302(d) of such Act (as so in effect) and
section 412(l) of such Code (as so in effect).
``(6) Additional funding charge increase not to exceed
relief.--
``(A) Election under subsection (b).--In the case of an
election under subsection (b), an increase resulting from the
application of subsection (b)(2) in the additional funding
charge with respect to a plan for a plan year shall not
exceed the excess (if any) of--
``(i) the deficit reduction contribution under section
302(d)(2) of such Act (as so in effect) and section 412(l)(2)
of such Code (as so in effect) for
[[Page H4142]]
such plan year, determined as if the election had not been
made, over
``(ii) the deficit reduction contribution under such
sections for such plan (determined without regard to any
increase under subsection (b)(2)).
``(B) Election under subsection (c).--An increase resulting
from the application of subsection (c)(3) in the additional
funding charge with respect to a plan for a plan year shall
not exceed the excess (if any) of--
``(i) the sum of the deficit reduction contributions under
section 302(d)(2) of such Act (as so in effect) and section
412(l)(2) of such Code (as so in effect) for such plan for
such plan year and for all preceding plan years beginning
with or after the applicable plan year, determined as if the
election had not been made, over
``(ii) the sum of the deficit reduction contributions under
such sections for such plan years (determined without regard
to any increase under subsection (c)(3)).
``(e) Notice.--Not later 30 days after the date of an
election under subsection (a) in connection with a plan, the
plan administrator shall provide notice pursuant to, and
subject to, rules similar to the rules of sections 204(k) of
the Employee Retirement Income Security Act of 1974 (as
amended by the American Jobs and Closing Tax Loopholes Act of
2010) and 4980F(f) of the Internal Revenue Code of 1986 (as
so amended).''.
(b) Eligible Charity Plans.--Section 104 of such Act 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--
``(1) the plan is maintained by one or more employers
employing employees who are accruing benefits based on
service for the plan year,
``(2) such employees are employed in at least 20 States,
``(3) each such employee (other than a de minimis number of
employees) is employed by an employer described in section
501(c)(3) of such Code and the primary exempt purpose of each
such employer is to provide services with respect to
children, and
``(4) the plan sponsor elects (at such time and in such
form and manner as shall be prescribed by the Secretary of
the Treasury) to be so treated.
Any election under this subsection may be revoked only with
the consent of the Secretary of the Treasury.''.
(c) Regulations.--The Secretary of the Treasury may
prescribe such regulations as may be necessary to carry out
the purposes of the amendments made by this section.
(d) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply to plan years beginning on or after January 1, 2009.
(2) Eligible charity plans.--The amendments made by
subsection (b) shall apply to plan years beginning after
December 31, 2009.
SEC. 303. SUSPENSION OF CERTAIN FUNDING LEVEL LIMITATIONS.
(a) Limitations on Benefit Accruals.--Section 203 of the
Worker, Retiree, and Employer Recovery Act of 2008 (Public
Law 110-458; 122 Stat. 5118) is amended--
(1) by striking ``the first plan year beginning during the
period beginning on October 1, 2008, and ending on September
30, 2009'' and inserting ``any plan year beginning during the
period beginning on October 1, 2008, and ending on December
31, 2011'';
(2) by striking ``substituting'' and all that follows
through ``for such plan year'' and inserting ``substituting
for such percentage the plan's adjusted funding target
attainment percentage for the last plan year ending before
September 30, 2009,''; and
(3) by striking ``for the preceding plan year is greater''
and inserting ``for such last plan year is greater''.
(b) Social Security Level-income Options.--
(1) ERISA amendment.--Section 206(g)(3)(E) of the Employee
Retirement Income Security Act of 1974 is amended by adding
at the end the following new sentence: ``For purposes of
applying clause (i) in the case of payments the annuity
starting date for which occurs on or before December 31,
2011, payments under a social security leveling option shall
be treated as not in excess of the monthly amount paid under
a single life annuity (plus an amount not in excess of a
social security supplement described in the last sentence of
section 204(b)(1)(G)).''.
(2) IRC amendment.--Section 436(d)(5) of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new sentence: ``For purposes of applying
subparagraph (A) in the case of payments the annuity starting
date for which occurs on or before December 31, 2011,
payments under a social security leveling option shall be
treated as not in excess of the monthly amount paid under a
single life annuity (plus an amount not in excess of a social
security supplement described in the last sentence of section
411(a)(9)).''.
(3) Effective date.--
(A) In general.--The amendments made by this subsection
shall apply to annuity payments the annuity starting date for
which occurs on or after January 1, 2011.
(B) Permitted application.--A plan shall not be treated as
failing to meet the requirements of sections 206(g) of the
Employee Retirement Income Security Act of 1974 (as amended
by this subsection) and section 436(d) of the Internal
Revenue Code of 1986 (as so amended) if the plan sponsor
elects to apply the amendments made by this subsection to
payments the annuity starting date for which occurs on or
after the date of the enactment of this Act and before
January 1, 2011.
(c) Application of Credit Balance With Respect to
Limitations on Shutdown Benefits and Unpredictable Contingent
Event Benefits.--With respect to plan years beginning on or
before December 31, 2011, in applying paragraph (5)(C) of
subsection (g) of section 206 of the Employee Retirement
Income Security Act of 1974 and subsection (f)(3) of section
436 of the Internal Revenue Code of 1986 in the case of
unpredictable contingent events (within the meaning of
section 206(g)(1)(C) of such Act and section 436(b)(3) of
such Code) occurring on or after January 1, 2010, the
references, in clause (i) of such paragraph (5)(C) and
subparagraph (A) of such subsection (f)(3), to paragraph
(1)(B) of such subsection (g) and subsection (b)(2) of such
section 436 shall be disregarded.
SEC. 304. LOOKBACK FOR CREDIT BALANCE RULE.
(a) Amendment to Erisa.--Paragraph (3) of section 303(f) of
the Employee Retirement Income Security Act of 1974 is
amended by adding the following at the end thereof:
``(D) Special rule for certain plan years.--
``(i) In general.--For purposes of applying subparagraph
(C) for plan years beginning after June 30, 2009, and on or
before December 31, 2011, the ratio determined under such
subparagraph for the preceding plan year shall be the greater
of--
``(I) such ratio, as determined without regard to this
subparagraph, or
``(II) the ratio for such plan for the plan year beginning
after June 30, 2007, and on or before June 30, 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, 2008, and on or before December 31, 2010, and
``(II) clause (i)(II) shall apply based on the last plan
year beginning before July 1, 2007, as determined under rules
prescribed by the Secretary of the Treasury.''.
(b) Amendment to Internal Revenue Code of 1986.--Paragraph
(3) of section 430(f) of the Internal Revenue Code of 1986 is
amended by adding the following at the end thereof:
``(D) Special rule for certain plan years.--
``(i) In general.--For purposes of applying subparagraph
(C) for plan years beginning after June 30, 2009, and on or
before December 31, 2011, the ratio determined under such
subparagraph for the preceding plan year shall be the greater
of--
``(I) such ratio, as determined without regard to this
subparagraph, or
``(II) the ratio for such plan for the plan year beginning
after June 30, 2007, and on or before June 30, 2008, as
determined under rules prescribed by the Secretary.
``(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, 2008, and on or before December 31, 2010, and
``(II) clause (i)(II) shall apply based on the last plan
year beginning before July 1, 2007, as determined under rules
prescribed by the Secretary.''.
SEC. 305. INFORMATION REPORTING.
(a) In General.--Section 4010(b) of the Employee Retirement
Security Act of 1974 (29 U.S.C. 1310(b)) is amended by
striking paragraph (1) and inserting the following:
``(1) either of the following requirements are met:
``(A) the funding target attainment percentage (as defined
in subsection (d)(2)(B)) at the end of the preceding plan
year of a plan maintained by the contributing sponsor or any
member of its controlled group is less than 80 percent; or
``(B) the aggregate unfunded vested benefits (as determined
under section 4006(a)(3)(E)(iii)) of plans maintained by the
contributing sponsor and the members of its controlled group
exceed $75,000,000 (disregarding plans with no unfunded
vested benefits);''.
(b) Effective Date.--The amendment made by this section
shall apply to years beginning after 2009.
SEC. 306. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER
BANKRUPTCY.
(a) General Rules.--
(1) Rollover of airline payment amount.--If a qualified
airline employee receives any airline payment amount and
transfers any portion of such amount to a traditional IRA
within 180 days of receipt of such amount (or, if later,
within 180 days of the date of the enactment of this Act),
then such amount (to the extent so transferred) shall be
treated as a rollover contribution described in section
402(c) of the Internal Revenue Code of 1986. A qualified
airline employee making such a transfer may exclude from
gross income the amount transferred, in the taxable year in
which the airline payment amount was paid to the qualified
airline employee by the commercial passenger airline carrier.
(2) Transfer of amounts attributable to airline payment
amount following rollover to roth ira.--A qualified airline
employee who has contributed an airline payment amount to a
Roth IRA that is treated as a qualified rollover contribution
pursuant to section 125 of the Worker, Retiree, and Employer
Recovery Act of 2008 may transfer to a traditional IRA, in a
trustee-to-trustee transfer, all or any part of the
contribution (together with any net income allocable to such
contribution), and the transfer to the traditional IRA will
be deemed to have been made at the time of the rollover to
the Roth IRA, if such transfer is made within 180 days of the
date of the enactment of this Act. A qualified airline
employee making such a transfer
[[Page H4143]]
may exclude from gross income the airline payment amount
previously rolled over to the Roth IRA, to the extent an
amount attributable to the previous rollover was transferred
to a traditional IRA, in the taxable year in which the
airline payment amount was paid to the qualified airline
employee by the commercial passenger airline carrier. No
amount so transferred to a traditional IRA may be treated as
a qualified rollover contribution with respect to a Roth IRA
within the 5-taxable year period beginning with the taxable
year in which such transfer was made.
(3) Extension of time to file claim for refund.--A
qualified airline employee who excludes an amount from gross
income in a prior taxable year under paragraph (1) or (2) may
reflect such exclusion in a claim for refund filed within the
period of limitation under section 6511(a) (or, if later,
April 15, 2011).
(b) Treatment of Airline Payment Amounts and Transfers for
Employment Taxes.--For purposes of chapter 21 of the Internal
Revenue Code of 1986 and section 209 of the Social Security
Act, an airline payment amount shall not fail to be treated
as a payment of wages by the commercial passenger airline
carrier to the qualified airline employee in the taxable year
of payment because such amount is excluded from the qualified
airline employee's gross income under subsection (a).
(c) Definitions and Special Rules.--For purposes of this
section--
(1) Airline payment amount.--
(A) In general.--The term ``airline payment amount'' means
any payment of any money or other property which is payable
by a commercial passenger airline carrier to a qualified
airline employee--
(i) under the approval of an order of a Federal bankruptcy
court in a case filed after September 11, 2001, and before
January 1, 2007; and
(ii) in respect of the qualified airline employee's
interest in a bankruptcy claim against the carrier, any note
of the carrier (or amount paid in lieu of a note being
issued), or any other fixed obligation of the carrier to pay
a lump sum amount.
The amount of such payment shall be determined without regard
to any requirement to deduct and withhold tax from such
payment under sections 3102(a) and 3402(a).
(B) Exception.--An airline payment amount shall not include
any amount payable on the basis of the carrier's future
earnings or profits.
(2) Qualified airline employee.--The term ``qualified
airline employee'' means an employee or former employee of a
commercial passenger airline carrier who was a participant in
a defined benefit plan maintained by the carrier which--
(A) is a plan described in section 401(a) of the Internal
Revenue Code of 1986 which includes a trust exempt from tax
under section 501(a) of such Code; and
(B) was terminated or became subject to the restrictions
contained in paragraphs (2) and (3) of section 402(b) of the
Pension Protection Act of 2006.
(3) Traditional ira.--The term ``traditional IRA'' means an
individual retirement plan (as defined in section 7701(a)(37)
of the Internal Revenue Code of 1986) which is not a Roth
IRA.
(4) Roth ira.--The term ``Roth IRA'' has the meaning given
such term by section 408A(b) of such Code.
(d) Surviving Spouse.--If a qualified airline employee died
after receiving an airline payment amount, or if an airline
payment amount was paid to the surviving spouse of a
qualified airline employee in respect of the qualified
airline employee, the surviving spouse of the qualified
airline employee may take all actions permitted under section
125 of the Worker, Retiree and Employer Recovery Act of 2008,
or under this section, to the same extent that the qualified
airline employee could have done had the qualified airline
employee survived.
(e) Effective Date.--This section shall apply to transfers
made after the date of the enactment of this Act with respect
to airline payment amounts paid before, on, or after such
date.
PART 2--MULTIEMPLOYER PLANS
SEC. 311. OPTIONAL USE OF 30-YEAR AMORTIZATION PERIODS.
(a) Elective Special Relief Rules.--
(1) ERISA amendment.--Section 304(b) of the Employee
Retirement Income Security Act of 1974 is amended by adding
at the end the following new paragraph:
``(8) Elective special relief rules.--Notwithstanding any
other provision of this subsection--
``(A) Amortization of net investment losses.--
``(i) In general.--The plan sponsor of a multiemployer plan
with respect to which the solvency test under subparagraph
(B) is met may elect to treat the portion of any experience
loss or gain for a plan year that is attributable to the
allocable portion of the net investment losses incurred in
either or both of the first two plan years ending on or after
June 30, 2008, as an experience loss separate from other
experience losses or gains to be amortized in equal annual
installments (until fully amortized) over the period--
``(I) beginning with the plan year for which the allocable
portion is determined, and
``(II) ending with the last plan year in the 30-plan year
period beginning with the plan year following the plan year
in which such net investment loss was incurred.
``(ii) Coordination with extensions.--If an election is
made under clause (i) for any plan year--
``(I) no extension of the amortization period under clause
(i) shall be allowed under subsection (d), and
``(II) if an extension was granted under subsection (d) for
any plan year before the plan year for which the election
under this subparagraph is made, such extension shall not
result in such amortization period exceeding 30 years.
``(iii) Definitions and rules.--For purposes of this
subparagraph--
``(I) Net investment losses.--
``(aa) In general.--The net investment loss incurred by a
plan in a plan year is equal to the excess of--
``(AA) the expected value of the assets as of the end of
the plan year, over
``(BB) the market value of the assets as of the end of the
plan year,
including any difference attributable to a criminally
fraudulent investment arrangement.
``(bb) Expected value.--For purposes of item (aa), the
expected value of the assets as of the end of a plan year is
the excess of--
``(AA) the market value of the assets at the beginning of
the plan year plus contributions made during the plan year,
over
``(BB) disbursements made during the plan year.
The amounts described in subitems (AA) and (BB) shall be
adjusted with interest at the valuation rate to the end of
the plan year.
``(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.
``(III) Amount attributable to allocable portion of net
investment loss.--The amount attributable to the allocable
portion of the net investment loss for a plan year shall be
an amount equal to the allocable portion of net investment
loss for the plan year under subclauses (IV) and (V),
increased with interest at the valuation rate determined from
the plan year after the plan year in which the net investment
loss was incurred.
``(IV) Allocable portion of net investment losses.--Except
as provided in subclause (V), the net investment loss
incurred in a plan year shall be allocated among the 5 plan
years following the plan year in which the investment loss is
incurred in accordance with the following table:
``Plan year after the plan year in which the net investment loss was
incurred Allocable portion of net investment loss
1st.............................................................\1/2\
2nd.................................................................0
3rd.............................................................\1/6\
4th.............................................................\1/6\
5th.............................................................\1/6\
``(V) Special rule for plans that adopt longer smoother
period.--If a plan sponsor elects an extended smoothing
period for its asset valuation method under subsection
(c)(2)(B), then the allocable portion of net investment loss
for the first two plan years following the plan year the
investment loss is incurred is the same as determined under
subclause (IV), but the remaining \1/2\ of the net investment
loss is allocated ratably over the period beginning with the
third plan year following the plan year the net investment
loss is incurred and ending with the last plan year in the
extended smoothing period.
``(VI) Special rule for overstatement of loss.--If, for a
plan year, there is an experience loss for the plan and the
amount described in subclause (III) exceeds the total amount
of the experience loss for the plan year, then the excess
shall be treated as an experience gain.
``(VII) Special rule in years for which overall experience
is gain.--If, for a plan year, there is no experience loss
for the plan, then, in addition to amortization of net
investment losses under clause (i), the amount described in
subclause (III) shall be treated as an experience gain in
addition to any other experience gain.
``(B) Solvency test.--
``(i) In general.--An election may be made under this
paragraph if the election includes certification by the plan
actuary in connection with the election that the plan is
projected to have a funded percentage at the end of the first
15 plan years that is not less than 100 percent of the funded
percentage for the plan year of the election.
``(ii) Funded percentage.-- For purposes of clause (i), the
term `funded percentage' has the meaning provided in section
305(i)(2), except that the value of the plan's assets
referred to in section 305(i)(2)(A) shall be the market value
of such assets.
``(iii) Actuarial assumptions.--In making any certification
under this subparagraph, the plan actuary shall use the same
actuarial estimates, assumptions, and methods as those
applicable for the most recent certification under section
305, except that the plan actuary may take into account
benefit reductions and increases in contribution rates, under
either funding improvement plans adopted under section 305(c)
or under section 432(c) of the Internal Revenue Code of 1986
or rehabilitation plans adopted under section 305(e) or under
section 432(e) of such Code, that the plan actuary reasonably
anticipates will occur without regard to any change in status
of the plan resulting from the election.
``(C) Additional restriction on benefit increases.--If an
election is made under subparagraph (A), then, in addition to
any other applicable restrictions on benefit increases, a
plan amendment which is adopted on or after March 10, 2010,
and which increases benefits may not go into effect during
the period beginning on such date and ending with the second
plan year beginning after such date unless--
``(i) the plan actuary certifies that--
``(I) any such increase is paid for out of additional
contributions not allocated to the plan immediately before
the election to have this paragraph apply to the plan, and
[[Page H4144]]
``(II) the plan's funded percentage and projected credit
balances for the first 3 plan years ending on or after such
date are reasonably expected to be at least as high as such
percentage and balances would have been if the benefit
increase had not been adopted, or
``(ii) the amendment is required as a condition of
qualification under part I of subchapter D of chapter 1 of
the Internal Revenue Code of 1986 or to comply with other
applicable law.
``(D) Time, form, and manner of election.--An election
under this paragraph shall be made not later than June 30,
2011, and shall be made in such form and manner as the
Secretary of the Treasury may prescribe.
``(E) Reporting.--A plan sponsor of a plan to which this
paragraph applies shall--
``(i) give notice of such election to participants and
beneficiaries of the plan, and
``(ii) inform the Pension Benefit Guaranty Corporation of
such election in such form and manner as the Pension Benefit
Guaranty Corporation may prescribe.''.
(2) IRC amendment.--Section 431(b) of the Internal Revenue
Code of 1986 is amended by adding at the end the following
new paragraph:
``(8) Elective special relief rules.--Notwithstanding any
other provision of this subsection--
``(A) Amortization of net investment losses.--
``(i) In general.--The plan sponsor of a multiemployer plan
with respect to which the solvency test under subparagraph
(B) is met may elect to treat the portion of any experience
loss or gain for a plan year that is attributable to the
allocable portion of the net investment losses incurred in
either or both of the first two plan years ending on or after
June 30, 2008, as an experience loss separate from other
experience losses and gains to be amortized in equal annual
installments (until fully amortized) over the period--
``(I) beginning with the plan year for which the allocable
portion is determined, and
``(II) ending with the last plan year in the 30-plan year
period beginning with the plan year following the plan year
in which such net investment loss was incurred.
``(ii) Coordination with extensions.--If an election is
made under clause (i) for any plan year--
``(I) no extension of the amortization period under clause
(i) shall be allowed under subsection (d), and
``(II) if an extension was granted under subsection (d) for
any plan year before the plan year for which the election
under this subparagraph is made, such extension shall not
result in such amortization period exceeding 30 years.
``(iii) Definitions and rules.--For purposes of this
subparagraph--
``(I) Net investment losses.--
``(aa) In general.--The net investment loss incurred by a
plan in a plan year is equal to the excess of--
``(AA) the expected value of the assets as of the end of
the plan year, over
``(BB) the market value of the assets as of the end of the
plan year,
including any difference attributable to a criminally
fraudulent investment arrangement.
``(bb) Expected value.--For purposes of item (aa), the
expected value of the assets as of the end of a plan year is
the excess of--
``(AA) the market value of the assets at the beginning of
the plan year plus contributions made during the plan year,
over
``(BB) disbursements made during the plan year.
The amounts described in subitems (AA) and (BB) shall be
adjusted with interest at the valuation rate to the end of
the plan year.
``(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.
``(III) Amount attributable to allocable portion of net
investment loss.--The amount attributable to the allocable
portion of the net investment loss for a plan year shall be
an amount equal to the allocable portion of net investment
loss for the plan year under subclauses (IV) and (V),
increased with interest at the valuation rate determined from
the plan year after the plan year in which the net investment
loss was incurred.
``(IV) Allocable portion of net investment losses.--Except
as provided in subclause (V), the net investment loss
incurred in a plan year shall be allocated among the 5 plan
years following the plan year in which the investment loss is
incurred in accordance with the following table:
``Plan year after the plan year in which the net investment loss was
incurred Allocable portion of net investment loss
1st.............................................................\1/2\
nd
0
3rd.............................................................\1/6\
4th.............................................................\1/6\
5th.............................................................\1/6\
``(V) Special rule for plans that adopt longer smoother
period.--If a plan sponsor elects an extended smoothing
period for its asset valuation method under subsection
(c)(2)(B), then the allocable portion of net investment loss
for the first two plan years following the plan year the
investment loss is incurred is the same as determined under
subclause (IV), but the remaining \1/2\ of the net investment
loss is allocated ratably over the period beginning with the
third plan year following the plan year the net investment
loss is incurred and ending with the last plan year in the
extended smoothing period.
``(VI) Special rule for overstatement of loss.--If, for a
plan year, there is an experience loss for the plan and the
amount described in subclause (III) exceeds the total amount
of the experience loss for the plan year, then the excess
shall be treated as an experience gain.
``(VII) Special rule in years for which overall experience
is gain.--If, for a plan year, there is no experience loss
for the plan, then, in addition to amortization of net
investment losses under clause (i), the amount described in
subclause (III) shall be treated as an experience gain in
addition to any other experience gain.
``(B) Solvency test.--
``(i) In general.--An election may be made under this
paragraph if the election includes certification by the plan
actuary in connection with the election that the plan is
projected to have a funded percentage at the end of the first
15 plan years that is not less than 100 percent of the funded
percentage for the plan year of the election.
``(ii) Funded percentage.-- For purposes of clause (i), the
term `funded percentage' has the meaning provided in section
432(i)(2), except that the value of the plan's assets
referred to in section 432(i)(2)(A) shall be the market value
of such assets.
``(iii) Actuarial assumptions.--In making any certification
under this subparagraph, the plan actuary shall use the same
actuarial estimates, assumptions, and methods as those
applicable for the most recent certification under section
432, except that the plan actuary may take into account
benefit reductions and increases in contribution rates, under
either funding improvement plans adopted under section 432(c)
or under section 305(c) of the Employee Retirement Income
Security Act of 1974 or rehabilitation plans adopted under
section 432(e) or under section 305(e) of such Act, that the
plan actuary reasonably anticipates will occur without regard
to any change in status of the plan resulting from the
election.
``(C) Additional restriction on benefit increases.--If an
election is made under subparagraph (A), then, in addition to
any other applicable restrictions on benefit increases, a
plan amendment which is adopted on or after March 10, 2010,
and which increases benefits may not go into effect during
the period beginning on such date and ending with the second
plan year beginning after such date unless--
``(i) the plan actuary certifies that--
``(I) any such increase is paid for out of additional
contributions not allocated to the plan immediately before
the election to have this paragraph apply to the plan, and
``(II) the plan's funded percentage and projected credit
balances for the first 3 plan years ending on or after such
date are reasonably expected to be at least as high as such
percentage and balances would have been if the benefit
increase had not been adopted, or
``(ii) the amendment is required as a condition of
qualification under part I or to comply with other applicable
law.
``(D) Time, form, and manner of election.--An election
under this paragraph shall be made not later than June 30,
2011, and shall be made in such form and manner as the
Secretary may prescribe.
``(E) Reporting.--A plan sponsor of a plan to which this
paragraph applies shall--
``(i) give notice of such election to participants and
beneficiaries of the plan, and
``(ii) inform the Pension Benefit Guaranty Corporation of
such election in such form and manner as the Pension Benefit
Guaranty Corporation may prescribe.''.
(b) Asset Smoothing for Multiemployer Plans.--
(1) ERISA amendment.--Section 304(c)(2) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1084(c)(2))
is amended--
(A) by redesignating subparagraph (B) as subparagraph (C);
and
(B) by inserting after subparagraph (A) the following new
subparagraph:
``(B) Extended asset smoothing period for certain
investment losses.--The Secretary of the Treasury shall not
treat the asset valuation method of a multiemployer plan as
unreasonable solely because such method spreads the
difference between expected and actual returns for either or
both of the first 2 plan years ending on or after June 30,
2008, over a period of not more than 10 years. Any change in
valuation method to so spread such difference shall be
treated as approved, but only if, in the case that the plan
sponsor has made an election under subsection (b)(8), any
resulting change in asset value is treated for purposes of
amortization as a net experience loss or gain.''.
(2) IRC amendment.--Section 431(c)(2) of the Internal
Revenue Code of 1986 is amended--
(A) by redesignating subparagraph (B) as subparagraph (C);
and
(B) by inserting after subparagraph (A) the following new
subparagraph:
``(B) Extended asset smoothing period for certain
investment losses.--The Secretary shall not treat the asset
valuation method of a multiemployer plan as unreasonable
solely because such method spreads the difference between
expected and actual returns for either or both of the first 2
plan years ending on or after June 30, 2008, over a period of
not more than 10 years. Any change in valuation method to so
spread such difference shall be treated as approved, but only
if, in the case that the plan sponsor has made an election
under subsection (b)(8), any resulting change in asset value
is treated for purposes of amortization as a net experience
loss or gain.''.
(c) Effective Date and Special Rules.--
(1) Effective date.--The amendments made by this section
shall take effect as of the first day of the first plan year
beginning after June 30, 2008, except that any election a
plan sponsor makes pursuant to this section or the amendments
made thereby that affects the plan's funding standard account
for any plan year beginning before October 1, 2009, shall be
disregarded for purposes of applying the provisions
[[Page H4145]]
of section 305 of the Employee Retirement Income Security Act
of 1974 and section 432 of the Internal Revenue Code of 1986
to that plan year.
(2) Deemed approval for certain funding method changes.--In
the case of a multiemployer plan with respect to which an
election has been made under section 304(b)(8) of the
Employee Retirement Income Security Act of 1974 (as amended
by this section) or section 431(b)(8) of the Internal Revenue
Code of 1986 (as so amended)--
(A) any change in the plan's funding method for a plan year
beginning on or after July 1, 2008, and on or before December
31, 2010, from a method that does not establish a base for
experience gains and losses to one that does establish such a
base shall be treated as approved by the Secretary of the
Treasury; and
(B) any resulting funding method change base shall be
treated for purposes of amortization as a net experience loss
or gain.
SEC. 312. OPTIONAL LONGER RECOVERY PERIODS FOR MULTIEMPLOYER
PLANS IN ENDANGERED OR CRITICAL STATUS.
(a) ERISA Amendments.--
(1) Funding improvement period.--Section 305(c)(4) of the
Employee Retirement Income Security Act of 1974 is amended--
(A) by redesignating subparagraphs (C) and (D) as
subparagraphs (D) and (E), respectively; and
(B) by inserting after subparagraph (B) the following new
subparagraph:
``(C) Election to extend period.--The plan sponsor of an
endangered or seriously endangered plan may elect to extend
the applicable funding improvement period by up to 5 years,
reduced by any extension of the period previously elected
pursuant to section 205 of the Worker, Retiree and Employer
Relief Act of 2008. Such an election shall be made not later
than June 30, 2011, and in such form and manner as the
Secretary of the Treasury may prescribe.''.
(2) Rehabilitation period.--Section 305(e)(4) of such Act
is amended--
(A) by redesignating subparagraph (B) as subparagraph (C);
(B) in last sentence of subparagraph (A), by striking
``subparagraph (B)'' each place it appears and inserting
``subparagraph (C)''; and
(C) by inserting after subparagraph (A) the following new
subparagraph:
``(B) Election to extend period.--The plan sponsor of a
plan in critical status may elect to extend the
rehabilitation period by up to five years, reduced by any
extension of the period previously elected pursuant to
section 205 of the Worker, Retiree and Employer Relief Act of
2008. Such an election shall be made not later than June 30,
2011, and in such form and manner as the Secretary of the
Treasury may prescribe.''.
(b) IRC Amendments.--
(1) Funding improvement period.--Section 432(c)(4) of the
Internal Revenue Code of 1986 is amended--
(A) by redesignating subparagraphs (C) and (D) as
subparagraphs (D) and (E), respectively; and
(B) by inserting after subparagraph (B) the following new
subparagraph:
``(C) Election to extend period.--The plan sponsor of an
endangered or seriously endangered plan may elect to extend
the applicable funding improvement period by up to 5 years,
reduced by any extension of the period previously elected
pursuant to section 205 of the Worker, Retiree and Employer
Relief Act of 2008. Such an election shall be made not later
than June 30, 2011, and in such form and manner as the
Secretary may prescribe.''.
(2) Rehabilitation period.--Section 432(e)(4) of such Code
is amended--
(A) by redesignating subparagraph (B) as subparagraph (C);
(B) in last sentence of subparagraph (A), by striking
``subparagraph (B)'' each place it appears and inserting
``subparagraph (C)''; and
(C) by inserting after subparagraph (A) the following new
subparagraph:
``(B) Election to extend period.--The plan sponsor of a
plan in critical status may elect to extend the
rehabilitation period by up to five years, reduced by any
extension of the period previously elected pursuant to
section 205 of the Worker, Retiree and Employer Relief Act of
2008. Such an election shall be made not later than June 30,
2011, and in such form and manner as the Secretary may
prescribe.''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to funding improvement periods and
rehabilitation periods in connection with funding improvement
plans and rehabilitation plans adopted or updated on or after
the date of the enactment of this Act.
SEC. 313. MODIFICATION OF CERTAIN AMORTIZATION EXTENSIONS
UNDER PRIOR LAW.
(a) In General.--In the case of an amortization extension
that was granted to a multiemployer plan under the terms of
section 304 of the Employee Retirement Income Security Act of
1974 (as in effect immediately prior to enactment of the
Pension Protection Act of 2006) or section 412(e) of the
Internal Revenue Code (as so in effect), the determination of
whether any financial condition on the amortization extension
is satisfied shall be made by assuming that for any plan year
that contains some or all of the period beginning June 30,
2008, and ending October 31, 2008, the actual rate of return
on the plan assets was equal to the interest rate used for
purposes of charging or crediting the funding standard
account in such plan year, unless the plan sponsor elects
otherwise in such form and manner as shall be prescribed by
the Secretary of Treasury.
(b) Revocation of Amortization Extensions.--The plan
sponsor of a multiemployer plan may, in such form and manner
and after such notice as may be prescribed by the Secretary,
revoke any amortization extension described in subsection
(a), effective for plan years following the date of the
revocation.
SEC. 314. ALTERNATIVE DEFAULT SCHEDULE FOR PLANS IN
ENDANGERED OR CRITICAL STATUS.
(a) ERISA Amendments.--
(1) Endangered status.--Section 305(c)(7) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1085(c)(7))
is amended by adding at the end the following new
subparagraph:
``(D) Alternative default schedule.--
``(i) In general.--A plan sponsor may, for purposes of this
paragraph, designate an alternative schedule of contribution
rates and related benefit changes meeting the requirements of
clause (ii) as the default schedule, in lieu of the default
schedule referred to in subparagraph (A).
``(ii) Requirements.--An alternative schedule designated
pursuant to clause (i) meets the requirements of this clause
if such schedule has been adopted in collective bargaining
agreements covering at least 75 percent of the active
participants as of the date of the designation.''.
(2) Critical status.--Section 305(e)(3) of such Act (29
U.S.C. 1085(e)(3)) is amended by adding at the end the
following new subparagraph:
``(D) Alternative default schedule.--
``(i) In general.--A plan sponsor may, for purposes of
subparagraph (C), designate an alternative schedule of
contribution rates and related benefit changes meeting the
requirements of clause (ii) as the default schedule, in lieu
of the default schedule referred to in subparagraph (C)(i).
``(ii) Requirements.--An alternative schedule designated
pursuant to clause (i) meets the requirements of this clause
if such schedule has been adopted in collective bargaining
agreements covering at least 75 percent of the active
participants as of the date of the designation.''.
(b) Internal Revenue Code Amendments.--
(1) Endangered status.--Section 432(c)(7) of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new subparagraph:
``(C) Alternative default schedule.--
``(i) In general.--A plan sponsor may, for purposes of this
paragraph, designate an alternative schedule of contribution
rates and related benefit changes meeting the requirements of
clause (ii) as the default schedule, in lieu of the default
schedule referred to in subparagraph (A).
``(ii) Requirements.--An alternative schedule designated
pursuant to clause (i) meets the requirements of this clause
if such schedule has been adopted in collective bargaining
agreements covering at least 75 percent of the active
participants as of the date of the designation.''.
(2) Critical status.--Section 432(e)(3) of such Code is
amended by adding at the end the following new subparagraph:
``(D) Alternative default schedule.--
``(i) In general.--A plan sponsor may, for purposes of
subparagraph (C), designate an alternative schedule of
contribution rates and related benefit changes meeting the
requirements of clause (ii) as the default schedule, in lieu
of the default schedule referred to in subparagraph (C)(i).
``(ii) Requirements.--An alternative schedule designated
pursuant to clause (i) meets the requirements of this clause
if such schedule has been adopted in collective bargaining
agreements covering at least 75 percent of the active
participants as of the date of the designation.''.
(c) Effective Date.--The amendments made by this section
shall apply to designations of default schedules by plan
sponsors on or after the date of the enactment of this Act.
(d) Cross-reference.--For sunset of the amendments made by
this section, see section 221(c) of the Pension Protection
Act of 2006.
SEC. 315. TRANSITION RULE FOR CERTIFICATIONS OF PLAN STATUS.
(a) In General.--A plan actuary shall not be treated as
failing to meet the requirements of section 305(b)(3)(A) of
the Employee Retirement Income Security Act of 1974 and
section 432(b)(3)(A) of the Internal Revenue Code of 1986 in
connection with a certification required under such sections
the deadline for which is after the date of the enactment of
this Act if the plan actuary makes such certification at any
time earlier than 75 days after the date of the enactment of
this Act.
(b) Revision of Prior Certification.--
(1) In general.--If--
(A) a plan sponsor makes an election under section
304(b)(8) of the Employee Retirement Income Security Act of
1974 and section 431(b)(8) of the Internal Revenue Code of
1986, or under section 304(c)(2)(B) of such Act and section
432(c)(2)(B) such Code, with respect to a plan for a plan
year beginning on or after October 1, 2009; and
(B) the plan actuary's certification of the plan status for
such plan year (hereinafter in this subsection referred to as
``original certification'') did not take into account any
election so made,
then the plan sponsor may direct the plan actuary to make a
new certification with respect to the plan for the plan year
which takes into account such election (hereinafter in this
subsection referred to as ``new certification'') if the
plan's status under section 305 of such Act and section 432
of such Code would change as a result of such election. Any
such new certification shall be treated as the most recent
certification referred to in section 304(b)(3)(B)(iii) of
such Act and section 431(b)(8)(B)(iii) of such Code.
(2) Due date for new certification.--Any such new
certification shall be made pursuant to section 305(b)(3) of
such Act and section 432(b)(3) of such Code; except that any
such new certification shall be made not later than 75 days
after the date of the enactment of this Act.
[[Page H4146]]
(3) Notice.--
(A) In general.--Except as provided in subparagraph (B),
any such new certification shall be treated as the original
certification for purposes of section 305(b)(3)(D) of such
Act and section 432(b)(3)(D) of such Code.
(B) Notice already provided.--In any case in which notice
has been provided under such sections with respect to the
original certification, not later than 30 days after the new
certification is made, the plan sponsor shall provide notice
of any change in status under rules similar to the rules such
sections.
(4) Effect of change in status.--If a plan ceases to be in
critical status pursuant to the new certification, then the
plan shall, not later than 30 days after the due date
described in paragraph (2), cease any restriction of benefit
payments, and imposition of contribution surcharges, under
section 305 of such Act and section 432 of such Code by
reason of the original certification.
Subtitle B--Fee Disclosure
SEC. 321. SHORT TITLE OF SUBTITLE.
This subtitle may be cited as the ``Defined Contribution
Fee Disclosure Act of 2010''.
SEC. 322. AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974.
(a) Requirements Relating to Service Providers and Plan
Administrators of Individual Account Plans.--
(1) In general.--Part 1 of subtitle B of title I of the
Employee Retirement Income Security Act of 1974 is amended--
(A) by redesignating section 111 (29 U.S.C. 1031) as
section 113; and
(B) by inserting after section 110 (29 U.S.C. 1030) the
following new sections:
``SEC. 111. REQUIREMENT TO PROVIDE NOTICE OF PLAN FEE
INFORMATION TO PLAN ADMINISTRATORS.
``(a) Initial Statement of Services Provided and Revenues
Received.--
``(1) In general.--In any case in which a service provider
enters into a contract or arrangement to provide services to
an individual account plan, the service provider shall,
before entering into such contract or arrangement, provide to
the plan administrator a single written statement which
includes, with respect to the first plan year covered under
such contract or arrangement, the following information:
``(A) A detailed description of the services which will be
provided to the plan by the service provider, the amount of
total expected annual revenue with respect to such services,
the manner in which such revenue will be collected, and the
extent to which such revenue varies between specific
investment options.
``(B)(i) In the case of a service provider who is providing
recordkeeping services with respect to any investment option,
such information as is necessary for the plan administrator
to satisfy the requirements of subparagraphs (B)(ii)(IV) and
(C) of section 105(a)(2) and paragraphs (1) and (3) of
section 112(a) with respect to such option, including
specifying the method used by the service provider in
disclosing or estimating expenses under subparagraphs (C)(iv)
and (E) of section 105(a)(2).
``(ii) To the extent provided in regulations issued by the
Secretary, clause (i) shall not apply in the case of a
service provider described in such clause if the service
provider receives a written notification from the plan
administrator that the information described in such clause
in connection with the investment option is provided by
another service provider pursuant to a contract or
arrangement to provide services to the plan.
``(C) A statement indicating--
``(i) the identity of any investment options offered under
the plan with respect to which the service provider provides
substantial investment, trustee, custodial, or administrative
services, and
``(ii) in the case of any investment option, whether the
service provider expects to receive any component of total
expected annual revenue described in paragraph (2)(A)(ii)(II)
with respect to such option and the amount of any such
component.
``(D) The portion of total expected annual revenue which is
properly allocable to each of the following:
``(i) Administration and recordkeeping.
``(ii) Investment management.
``(iii) Other services or amounts not described in clause
(i) or (ii).
``(2) Definition of total expected annual revenue.--For
purposes of this section--
``(A) In general.--The term `total expected annual revenue'
means, with respect to any plan year--
``(i) any amount expected to be received during such plan
year from the plan (including amounts paid from participant
accounts), any participant or beneficiary, or any plan
sponsor in connection with the contract or arrangement
referred to in paragraph (1), and
``(ii) any amount not taken into account under clause (i)
which is expected to be received during such plan year by the
service provider in connection with--
``(I) plan administration, recordkeeping, consulting,
management, or investment or other service activities
undertaken by the service provider with respect to the plan,
or
``(II) plan administration, recordkeeping, consulting,
management, or investment or other service activities
undertaken by any other person with respect to the plan.
``(B) Expressed as dollar amount or percentage of assets.--
Total expected annual revenue and any amount indicated under
paragraph (1)(C)(ii) may be expressed as a dollar amount or
as a percentage of assets (or a combination thereof), as
appropriate. To the extent that total expected annual revenue
is expressed as a percentage of assets, such percentage shall
be properly allocated among clauses (i), (ii), and (iii) of
paragraph (1)(D).
``(C) Provision of fee schedule for certain participant
initiated transactions.--In the case of amounts expected to
be received from participants or beneficiaries under the plan
(or from an account of a participant or beneficiary) as a fee
or charge in connection with a transaction initiated by the
participant (other than loads, commissions, brokerage fees,
and other investment related transactions)--
``(i) such amounts shall not be taken into account in
determining total expected annual revenue, and
``(ii) the service provider shall provide to the plan
administrator, as part of the statement referred to in
paragraph (1), a fee schedule which describes each such fee
or charge, the amount thereof, and the manner in which such
amount is collected.
``(D) Estimations.--In determining under this subsection
any amount which is expected to be received by the service
provider, the service provider shall provide a reasonable
estimate of such amount and shall indicate in the statement
referred to in paragraph (1) whether such amount disclosed is
an estimate. Any such estimate shall be based on reasonable
assumptions specified in such statement.
``(3) Allocation rules.--The Secretary shall provide rules
for defining total expected annual revenue and for the
appropriate and consistent allocation of total expected
annual revenue among clauses (i), (ii), and (iii) of
paragraph (1)(D), except that the entire amount of such
revenue shall be allocated among such clauses and no amount
may be taken into account under more than one clause.
``(4) Disclosure of different pricing of investment
options.--In the case of investment options with more than
one share class or price level, the Secretary shall prescribe
regulations for the disclosure of the different share classes
or price levels available as part of the statement in
paragraph (1). Such regulations shall provide guidance with
respect to the disclosure of the basis for qualifying for
such share classes or price levels, which may include amounts
invested, number of participants, or other factors.
``(5) Disclosure of investment transaction costs.--To the
extent provided in regulations issued by the Secretary, a
service provider shall separately disclose the transaction
costs (including sales commissions) for each investment
option for the preceding year or the plan's allocable share
of such costs for the preceding year.
``(b) Annual Statements.--With respect to each plan year
after the plan year covered by the statement described in
subsection (a), the service provider shall provide the plan
administrator a single written statement which includes the
information described in subsection (a) with respect to such
subsequent plan year.
``(c) Material Change Statements.--In the case of any event
or other change during a plan year which causes the
information included in any statement described in subsection
(a) or (b) with respect to such plan year to become
materially incorrect, the service provider shall provide the
plan administrator a written statement providing the
corrected information not later than 30 days after the
service provider knows, or exercising reasonable diligence
would have known, of such event or other change.
``(d) Time and Manner of Providing Statement and Other
Materials.--The statement referred to in subsections (a)(1)
and (b) shall be made at such time and in such manner as the
Secretary may provide. Other materials required to be
provided under this section shall be provided in such manner
as the Secretary may provide. All information included in
such statements and other materials shall be presented in a
manner which is easily understood by the typical plan
administrator.
``(e) Exception for Small Service Providers.--The
requirements of this section shall not apply with respect to
any contract or arrangement for services provided with
respect to an individual account plan for any plan year if--
``(1) the total annual revenue expected by the service
provider to be received with respect to the plan for such
plan year is less than $5,000, and
``(2) the service provider provides a written statement to
the plan administrator that the total annual revenue expected
by the service provider to be received with respect to the
plan is less than $5,000.
Service providers who expect to receive de minimis annual
revenue from the plan need not provide the written statement
described in paragraph (2). The Secretary may by regulation
or other guidance adjust the dollar amount specified in this
subsection.
``(f) Definition of Service Provider.--For purposes of this
section--
``(1) In general.--The term `service provider' includes any
person providing administration, recordkeeping, consulting,
investment management services, or investment advice to an
individual account plan under a contract or arrangement.
``(2) Controlled groups treated as one service provider.--
All persons which would be treated as a single employer under
subsection (b) or (c) of section 414 of the Internal Revenue
Code of 1986 if section 1563(a)(1) of such Code were
applied--
``(A) except as provided by subparagraph (B), by
substituting `more than 50 percent' for `at least 80 percent'
each place it appears therein, or
``(B) for purposes of subsection (a)(1)(C)(i), by
substituting `at least 20 percent' for `at least 80 percent'
each place it appears therein,
shall be treated as one person for purposes of this section.
[[Page H4147]]
``SEC. 112. REQUIREMENT TO PROVIDE NOTICE TO PARTICIPANTS OF
PLAN FEE INFORMATION.
``(a) Disclosures to Participants and Beneficiaries.--
``(1) Advance notice of available investment options.--
``(A) In general.--The plan administrator of an applicable
individual account plan shall provide to the participant or
beneficiary notice of the investment options available under
the plan before--
``(i) the earliest date provided for under the plan for the
participant's initial investment of any contribution made on
behalf of such participant, and
``(ii) the effective date of any change in the list of
investment options available under the plan, unless such
advance notice is impracticable, and in such case, as soon as
is practicable.
``(B) Information included in notice.--The notice required
under subparagraph (A) shall--
``(i) set forth, with respect to each available investment
option--
``(I) the name of the option,
``(II) a general description of the option's investment
objectives and principal investment strategies, principal
risk and return characteristics, and the name of the option's
investment manager,
``(III) whether the investment option is designed to be a
comprehensive, stand-alone investment for retirement that
provides varying degrees of long-term appreciation and
capital preservation through a mix of equity and fixed income
exposures,
``(IV) the extent to which the investment option is
actively managed or passively managed in relation to an index
and the difference between active management and passive
management,
``(V) where, and the manner in which, additional plan-
specific, option-specific, and generally available investment
information may be obtained, and
``(VI) a statement explaining that investment options
should not be evaluated solely on the basis of the charges
for each option but should also be based on consideration of
other key factors, including the risk level of the option,
the investment objectives of the option, historical returns
of the option, and the participant's personal investment
objectives,
``(ii) include a statement of the right under paragraph (2)
of participants and beneficiaries to request, and a
description of how a participant or beneficiary may request,
a copy of the statements received by the plan administrator
under section 111 with respect to the plan, and
``(iii) include the plan fee comparison chart described in
subparagraph (C).
``(C) Plan fee comparison chart.--
``(i) In general.--
``(I) In general.--The notice provided under this paragraph
shall include a plan fee comparison chart consisting of a
comparison of the service and investment charges that will or
could be assessed against the account of the participant or
beneficiary with respect to the plan year.
``(II) Expressed as dollar amount or formula.--For purposes
of this subparagraph, such charges shall be provided in the
form of a dollar amount or as a formula (such as a percentage
of assets), as appropriate.
``(ii) Categorization of charges.--The plan fee comparison
chart shall provide information in relation to the following
categories of charges that will or could be assessed against
the account of the participant or beneficiary:
``(I) Asset-based charges specific to investment.--Charges
that vary depending on the investment options selected by the
participant or beneficiary, including the annual operating
expenses of the investment option and investment-specific
asset-based charges (such as loads, commissions, brokerage
fees, exchange fees, redemption fees, and surrender charges).
Except as provided by the Secretary in regulations under this
section, the information relating to such charges shall
include a statement noting any charges for 1 or more
investment options which pay for services other than
investment management.
``(II) Recurring asset-based charges not specific to
investment.--Charges that are assessed as a percentage of the
total assets in the account of the participant or
beneficiary, regardless of the investment option selected.
``(III) Administrative and transaction-based charges.--
Administration and transaction-based charges, including fees
charged to participants to cover plan administration,
compliance, and recordkeeping costs, plan loan origination
fees, possible redemption fees, and possible surrender
charges, that are not assessed as a percentage of the total
assets in the account and are either automatically deducted
each year or result from certain transactions engaged in by
the participant or beneficiary.
``(IV) Other charges.--Any other charges which may be
deducted from participants' or beneficiaries' accounts and
which are not described in subclauses (I), (II), and (III).
``(iii) Fees and historical returns.--The plan fee
comparison chart shall include--
``(I) the historical returns, net of fees and expenses, for
the previous year, 5 years, and 10 years (or for the period
since inception, if shorter) with respect to such investment
option, and
``(II) the historical returns of an appropriate benchmark,
index, or other point of comparison for each such period.
``(D) Model notices.--The Secretary shall prescribe one or
more model notices that may be used for purposes of
satisfying the requirements of this paragraph, including
model plan fee comparison charts.
``(E) Estimations.--For purposes of providing the notice
required under this paragraph, the plan administrator may
provide a reasonable and representative estimate for any
charges or percentages disclosed under subparagraph (B) or
(C) and shall indicate whether the amount of any such charges
or percentages disclosed is an estimate.
``(2) Disclosure of service provider statements.--The plan
administrator shall provide to any participant or beneficiary
a copy of any statement received pursuant to section 111
within 30 days after receipt of a request for such a
statement.
``(3) Notice of material changes.--In the case of any event
or other change which causes the information included in any
notice described in paragraph (1) to become materially
incorrect, the plan administrator shall provide participants
and beneficiaries a written statement providing the corrected
information not later than 30 days after the plan
administrator knows, or exercising reasonable diligence would
have known, of such event or other change.
``(4) Time and manner of providing notices and
disclosures.--
``(A) In general.--The notices described in paragraph (1)
shall be provided at such times and in such manner as the
Secretary may provide. Other notices and materials required
to be provided under this subsection shall be provided in
such manner as the Secretary may provide.
``(B) Manner of presentation.--
``(i) In general.--All information included in such notices
or explanations shall be presented in a manner which is
easily understood by the typical participant.
``(ii) Generic example of operating expenses of investment
options.--The information described in paragraph
(1)(C)(ii)(I) shall include a generic example describing the
charges that would apply during an annual period with respect
to a $10,000 investment in the investment option.
``(b) Applicable Individual Account Plan.--For purposes of
this section, the term `applicable individual account plan'
means the portion of any individual account plan which
permits a participant or beneficiary to exercise control over
assets in his or her account.
``(c) Regulations.--The Secretary shall prescribe such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this section,
including regulations or other guidance which--
``(1) provide a later deadline for providing the notice of
investment menu changes described in subsection (a)(3) in
appropriate circumstances, and
``(2) provide guidelines, and a safe harbor, for the
selection of an appropriate benchmark, index, or other point
of comparison for an investment option under subsection
(a)(1)(C)(iii)(II).''.
(2) Clerical amendment.--The table of contents in section 1
of such Act is amended by striking the item relating to
section 111 and inserting the following new items:
``Sec. 111. Requirement to provide notice of plan fee information to
plan administrators.
``Sec. 112. Requirement to provide notice to participants of plan fee
information.
``Sec. 113. Repeal and effective date.''.
(b) Quarterly Benefit Statements.--Section 105 of such Act
(29 U.S.C. 1025) is amended--
(1) in subsection (a)(2)--
(A) by redesignating subparagraph (C) as subparagraph (G);
(B) in subparagraph (B)(ii)--
(i) in subclause (II), by striking ``diversified, and'' and
inserting ``diversified,'';
(ii) in subclause (III) by striking the period and
inserting ``, and''; and
(iii) by adding after subclause (III) the following new
subclause:
``(IV) with respect to the portion of a participant's
account for which the participant has the right to direct the
investment of assets, the information described in
subparagraph (C).''; and
(C) by inserting after subparagraph (B) the following new
subparagraphs:
``(C) Quarterly benefit statements.--The plan administrator
shall provide to each participant and beneficiary, at least
once each calendar quarter, an explanation describing the
investment options in which the participant's or
beneficiary's account is invested as of the last day of the
preceding quarter. Such explanation shall provide, to the
extent applicable, the following for the preceding quarter:
``(i) As of the last day of the quarter, a statement of the
different asset classes that the participant's or
beneficiary's account is invested in and the percentage of
the account allocated to each asset class.
``(ii) A statement of the starting and ending balance of
the participant's or beneficiary's account for such quarter.
``(iii) A statement of the total contributions made to the
participant's or beneficiary's account during the quarter and
a separate statement of--
``(I) the amount of such contributions, and the total
amount of any restorative payments, which were made by the
employer during the quarter, and
``(II) the amount of such contributions which were made by
the employee.
``(iv) A statement of the total fees and expenses which
were directly deducted from the participant's or
beneficiary's account during the quarter and an itemization
of such fees and expenses.
``(v) A statement of the net returns for the year to date,
expressed as a percentage, and a statement as to whether the
net returns include amounts described in clause (iv).
``(vi) With respect to each investment option in which the
participant or beneficiary was invested as of the last day of
the quarter, the following:
``(I) A statement of the percentage of the participant's or
beneficiary's account that is invested in such option as of
the last day of such quarter.
[[Page H4148]]
``(II) A statement of the starting and ending balance of
the participant's or beneficiary's account that is invested
in such option for such quarter.
``(III) A statement of the annual operating expenses of the
investment option.
``(IV) A statement of whether the disclosure described in
clause (iv) includes the annual operating expenses of the
investment options of the participant or beneficiary.
``(vii) The statement described in section
112(a)(1)(B)(i)(VI).
``(viii) A statement regarding how a participant or
beneficiary may access the information required to be
disclosed under section 112(a)(1).
``(D) Model explanations.--The Secretary shall prescribe
one or more model explanations that may be used for purposes
of satisfying the requirements of subparagraph (C).
``(E) Determination of expenses.--For purposes of
subparagraph (C)(vi)(III)--
``(i) Expenses may be expressed as a dollar amount or as a
percentage of assets (or a combination thereof).
``(ii) The plan administrator may provide disclosure of the
expenses for the quarter or may provide a reasonable and
representative estimate of such expenses and shall indicate
any such estimate as being an estimate. Any such estimate
shall be based on reasonable assumptions stated together with
such estimate.
``(iii) To the extent that estimated expenses are expressed
as a percentage of assets, the disclosure shall also include
one of the following, stated in dollar amounts:
``(I) an estimate of the expenses for the quarter based on
the amount invested in the option; or
``(II) an example describing the expenses that would apply
during the quarter with respect to a hypothetical $10,000
investment in the option.
``(F) Annual compliance for small plans.--A plan that has
fewer than 100 participants and beneficiaries as of the first
day of the plan year may provide the explanation described in
subparagraph (C) on an annual rather than a quarterly
basis.''.
(c) Assistance From the Department of Labor.--Section 105
of such Act (29 U.S.C. 1025) is amended by adding at the end
the following new subsections:
``(d) Assistance to Small Employers.--The Secretary shall
make available to employers with 100 or fewer employees--
``(1) educational and compliance materials designed to
assist such employers in selecting and monitoring service
providers for individual account plans which permit a
participant or beneficiary to exercise control over the
assets in the account of the participant or beneficiary,
investment options under such plans, and charges relating to
such options, and
``(2) services designed to assist such employers in finding
and understanding affordable investment options for such
plans and in comparing the investment performance of, and
charges for, such options on an ongoing basis against
appropriate benchmarks or other appropriate measures.
``(e) Assistance to Plan Sponsors and Plan Participants and
Beneficiaries.--The Secretary shall provide plan
administrators and plan sponsors of individual account plans
and participants and beneficiaries under such plans
assistance with any questions or problems regarding
compliance with the requirements of subparagraphs (B)(ii)(IV)
and (C) of subsection (a)(2) and section 112.''.
(d) Enforcement.--
(1) Penalties.--Section 502 of such Act (29 U.S.C. 1132) is
amended--
(A) in subsection (a)(6), by striking ``under paragraph
(2)'' and all that follows through ``subsection (c)'' and
inserting ``under paragraph (2), (4), (5), (6), (7), (8),
(9), (10), (11), or (12) of subsection (c)''; and
(B) in subsection (c), by redesignating the second
paragraph (10) as paragraph (13), and by inserting after the
first paragraph (10) the following new paragraphs:
``(11)(A) In the case of any failure by a service provider
(as defined in section 111(f)(1)) to provide a statement in
violation of section 111, the service provider may be
assessed by the Secretary a civil penalty of up to $1,000 for
each day in the noncompliance period.
``(B) For purposes of subparagraph (A), the noncompliance
period with respect to the failure to provide any statement
is the period beginning on the date that such statement was
required to be provided and ending on the date that such
statement is provided or the failure is otherwise corrected.
``(C)(i) The total amount of a penalty assessed under this
paragraph on any service provider with respect to any
individual account plan for any plan year shall not exceed an
amount equal to the lesser of--
``(I) 10 percent of the assets of the plan, determined as
of the first day of such plan year, or
``(II) $1,000,000.
``(ii) No penalty shall be imposed by subparagraph (A) on
any failure if--
``(I) the service provider subject to liability for the
penalty under subparagraph (A) exercised reasonable diligence
to meet the requirement with respect to which the failure
relates, and
``(II) such service provider provides the information
required under section 111 during the 30-day period beginning
on the date such person knew, or exercising reasonable
diligence would have known, that such failure existed.
``(iii) In the case of a failure which is due to reasonable
cause and not to willful neglect, the Secretary may waive
part or all of the penalty under subparagraph (A) to the
extent that the payment of such penalty would be excessive or
otherwise inequitable relative to the failure involved.
``(D) The penalty imposed under this paragraph with respect
to any failure shall be reduced by the amount of any tax
imposed on such person with respect to such failure under
section 4980J of the Internal Revenue Code of 1986.
``(12)(A) Any plan administrator with respect to a plan who
fails or refuses to provide a notice, explanation, or
statement to participants and beneficiaries in accordance
with subparagraphs (B)(ii)(IV) and (C) of section 105(a)(2)
and section 112 may be assessed by the Secretary a civil
penalty of up to $110 for each day in the noncompliance
period.
``(B) For purposes of subparagraph (A), the noncompliance
period with respect to the failure to provide any notice,
explanation, or statement referred to in subparagraph
(B)(ii)(IV) or (C) of section 105(a)(2) or section 112 with
respect to any participant or beneficiary is the period
beginning on the date that such notice, explanation, or
statement was required to be provided and ending on the date
that such notice, explanation, or statement is provided or
the failure is otherwise corrected.
``(C)(i) The total amount of penalty assessed under this
paragraph with respect to any plan for any plan year shall
not exceed an amount equal to the lesser of--
``(I) 10 percent of the assets of the plan, determined as
of the first day of such plan year, or
``(II) $500,000.
``(ii) No penalty shall be imposed under subparagraph (A)
on any failure to meet the requirements of subparagraphs
(B)(ii)(IV) and (C) of section 105(a)(2) and section 112 if--
``(I) any person subject to liability for the penalty under
subparagraph (A) exercised reasonable diligence to meet such
requirements, and
``(II) such person provides the notice, explanation, or
statement to which the failure relates during the 30-day
period beginning on the date such person knew, or exercising
reasonable diligence would have known, that such failure
existed.
``(iii) In the case of a failure which is due to reasonable
cause and not to willful neglect, the Secretary shall waive
part or all of the penalty under subparagraph (A) to the
extent that the payment of such penalty would be excessive or
otherwise inequitable relative to the failure involved.
``(iv) The penalty imposed under this paragraph with
respect to any failure shall be reduced by the amount of any
tax imposed on such person with respect to such failure under
section 4980K of the Internal Revenue Code of 1986.''.
(2) Enforcement coordination and review by the department
of labor.--Section 502 of such Act (29 U.S.C. 1132) is
amended by adding at the end the following new subsection:
``(n) Enforcement Coordination of Certain Disclosure
Requirements Relating to Individual Account Plans and Review
by the Department of Labor.--
``(1) Notification and action relating to service
providers.--The Secretary shall notify the applicable
regulatory authority in any case in which the Secretary
determines that a service provider is engaged in a pattern or
practice that precludes compliance by plan administrators
with subparagraphs (B)(ii)(IV) and (C) of section 105(a)(2)
and section 112. The Secretary shall, in consultation with
the applicable authority, take such timely enforcement action
under this title as is necessary to assure that such pattern
or practice ceases and desists and assess any appropriate
penalties.
``(2) Annual audit of representative sampling of individual
account plans.--The Secretary shall annually audit a
representative sampling of individual account plans covered
by this title to determine compliance with the requirements
of subparagraphs (B)(ii)(IV) and (C) of section 105(a)(2),
section 111, and section 112. The Secretary shall annually
report the results of such audit and any related
recommendations of the Secretary to the Committee on
Education and Labor of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions of the
Senate.''.
(e) Review and Report to the Congress by Secretary of Labor
Relating to Reporting and Disclosure Requirements.--
(1) Study.--As soon as practicable after the date of the
enactment of this Act, the Secretary of Labor shall review
the reporting and disclosure requirements of part 1 of
subtitle B of title I of the Employee Retirement Income
Security Act of 1974 and related provisions of the Pension
Protection Act of 2006.
(2) Report.--Not later than 18 months after the date of the
enactment of this Act, the Secretary of Labor, in
consultation with the Secretary of the Treasury, shall make
such recommendations as the Secretary of Labor considers
appropriate to the appropriate committees of the Congress to
consolidate, simplify, standardize, and improve the
applicable reporting and disclosure requirements so as to
simplify reporting for employee pension benefit plans and
ensure that needed understandable information is provided to
participants and beneficiaries of such plans.
SEC. 323. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.
(a) In General.--Chapter 43 of the Internal Revenue Code of
1986 (relating to qualified pension, etc. plans) is amended
by adding at the end the following new sections:
``SEC. 4980J. FAILURE TO PROVIDE NOTICE OF PLAN FEE
INFORMATION TO PLAN ADMINISTRATORS.
``(a) Imposition of Tax.--
``(1) In general.--There is hereby imposed a tax on each
failure of a service provider to meet the requirements of
paragraph (2) with respect to any applicable defined
contribution plan.
``(2) Failures described.--The failures described in this
paragraph are--
``(A) any failure to provide an initial statement described
in subsection (d),
``(B) any failure to provide an annual statement described
in subsection (e), and
[[Page H4149]]
``(C) any failure to provide a material change statement
described in subsection (f).
``(b) Amount of Tax.--
``(1) In general.--The amount of the tax imposed by
subsection (a) on any failure shall be $1,000 for each day in
the noncompliance period.
``(2) Noncompliance period.--For purposes of paragraph (1),
the noncompliance period with respect to the failure to
provide any statement is the period beginning on the date
that such statement was required to be provided and ending on
the date that such statement is provided or the failure is
otherwise corrected.
``(c) Limitations.--
``(1) Aggregate limitation.--The total amount of tax
imposed by this section on any service provider with respect
to any applicable defined contribution plan for any plan year
shall not exceed an amount equal to the lesser of--
``(A) 10 percent of the assets of the plan, determined as
of the first day of such plan year, or
``(B) $1,000,000.
``(2) Tax not to apply to failures corrected within 30
days.--No tax shall be imposed by subsection (a) on any
failure if--
``(A) the service provider subject to liability for the tax
under subsection (a) exercised reasonable diligence to meet
the requirement with respect to which the failure relates,
and
``(B) such service provider provides the information
required under subsection (a) during the 30-day period
beginning on the date such person knew, or exercising
reasonable diligence would have known, that such failure
existed.
``(3) Waiver by secretary.--In the case of a failure which
is due to reasonable cause and not to willful neglect, the
Secretary may waive part or all of the tax imposed by
subsection (a) to the extent that the payment of such tax
would be excessive or otherwise inequitable relative to the
failure involved.
``(d) Initial Statement of Services Provided and Revenues
Received.--
``(1) In general.--Before entering into any contract or
arrangement to provide services to an applicable defined
contribution plan, the service provider shall provide to the
plan administrator a single written statement which includes,
with respect to the first plan year covered under such
contract or arrangement, the following:
``(A) A detailed description of the services which will be
provided to the plan by the service provider, the amount of
total expected annual revenue with respect to such services,
the manner in which such revenue will be collected, and the
extent to which such revenue varies between specific
investment options.
``(B)(i) In the case of a service provider who is providing
recordkeeping services with respect to any investment option,
such information as is necessary for the plan administrator
to satisfy the requirements of paragraphs (1), (2) and (4) of
section 4980K(e) with respect to such option, including
specifying the method used by the service provider in
disclosing or estimating expenses under subparagraphs (A)(iv)
and (C) of such paragraph (2).
``(ii) To the extent provided in regulations issued by the
Secretary of Labor, clause (i) shall not apply in the case of
a service provider described in such clause if the service
provider receives a written notification from the plan
administrator that the information described in such clause
in connection with the investment option is provided by
another service provider pursuant to a contract or
arrangement to provide services to the plan.
``(C) A statement indicating--
``(i) the identity of any investment options offered under
the plan with respect to which the service provider provides
substantial investment, trustee, custodial, or administrative
services, and
``(ii) in the case of any investment option, whether the
service provider expects to receive any component of total
expected annual revenue described in paragraph (2)(A)(ii)(II)
with respect to such option and the amount of any such
component.
``(D) The portion of total expected annual revenue which is
properly allocable to each of the following:
``(i) Administration and recordkeeping.
``(ii) Investment management.
``(iii) Other services or amounts not described in clause
(i) or (ii).
``(2) Definition of total expected annual revenue.--For
purposes of this section--
``(A) In general.--The term `total expected annual revenue'
means, with respect to any plan year--
``(i) any amount expected to be received during such plan
year from the plan (including amounts paid from participant
accounts), any participant or beneficiary, or any plan
sponsor in connection with the contract or arrangement
referred to in paragraph (1), and
``(ii) any amount not taken into account under clause (i)
which is expected to be received during such plan year by the
service provider in connection with--
``(I) plan administration, recordkeeping, consulting,
management, or investment or other service activities
undertaken by the service provider with respect to the plan,
or
``(II) plan administration, recordkeeping, consulting,
management, or investment or other service activities
undertaken by any other person with respect to the plan.
``(B) Expressed as dollar amount or percentage of assets.--
Total expected annual revenue and any amount indicated under
paragraph (1)(C)(ii) may be expressed as a dollar amount or
as a percentage of assets (or a combination thereof), as
appropriate. To the extent that total expected annual revenue
is expressed as a percentage of assets, such percentage shall
be properly allocated among clauses (i), (ii), and (iii) of
paragraph (1)(D).
``(C) Provision of fee schedule for certain participant
initiated transactions.--In the case of amounts expected to
be received from participants or beneficiaries under the plan
(or from the account of a participant or beneficiary) as a
fee or charge in connection with a transaction initiated by
the participant (other than loads, commissions, brokerage
fees, and other investment related transactions)--
``(i) such amounts shall not be taken into account in
determining total expected annual revenue, and
``(ii) the service provider shall provide to the plan
administrator, as part of the statement referred to in
paragraph (1), a fee schedule which describes each such fee
or charge, the amount thereof, and the manner in which such
amount is collected.
``(D) Estimations.--In determining under this subsection
any amount which is expected to be received by the service
provider, the service provider shall provide a reasonable
estimate of such amount and shall indicate in the statement
referred to in paragraph (1) whether such amount disclosed is
an estimate. Any such estimate shall be based on reasonable
assumptions specified in such statement.
``(3) Allocation rules.--The Secretary of Labor shall
provide rules for defining total expected annual revenue and
for the appropriate and consistent allocation of total
expected annual revenue among clauses (i), (ii), and (iii) of
paragraph (1)(D), except that the entire amount of such
revenue shall be allocated among such clauses and no amount
may be taken into account under more than one clause.
``(4) Disclosure of different pricing of investment
options.--In the case of investment options with more than
one share class or price level, the Secretary of Labor shall
prescribe regulations for the disclosure of the different
share classes or price levels available as part of the
statement in paragraph (1). Such regulations shall provide
guidance with respect to the disclosure of the basis for
qualifying for such share classes or price levels, which may
include amounts invested, number of participants, or other
factors.
``(5) Disclosure of investment transaction costs.--To the
extent provided in regulations issued by the Secretary of
Labor, a service provider shall separately disclose the
transaction costs (including sales commissions) for each
investment option for the preceding year or the plan's
allocable share of such costs for the preceding year.
``(e) Annual Statements.--With respect to each plan year
after the plan year covered by the statement described in
subsection (d), the service provider shall provide the plan
administrator a single written statement which includes the
information described in subsection (d) with respect to such
subsequent plan year.
``(f) Material Change Statements.--In the case of any event
or other change during a plan year which causes the
information included in any statement described in subsection
(d) or (e) with respect to such plan year to become
materially incorrect, the service provider shall provide the
plan administrator a written statement providing the
corrected information not later than 30 days after the
service provider knows, or exercising reasonable diligence
would have known, of such event or other change.
``(g) Time and Manner of Providing Statement and Other
Materials.--The statement referred to in subsections (d)(1)
and (e) shall be made at such time and in such manner as the
Secretary of Labor may provide. Other materials required to
be provided under this section shall be provided in such
manner as such Secretary may provide. All information
included in such statements and other materials shall be
presented in a manner which is easily understood by the
typical plan administrator.
``(h) Exception for Small Service Providers.--The
requirements of this section shall not apply with respect to
any contract or arrangement for services provided with
respect to an individual account plan for any plan year if--
``(1) the total annual revenue expected by the service
provider to be received with respect to the plan for such
plan year is less than $5,000, and
``(2) the service provider provides a written statement to
the plan administrator that the total annual revenue expected
by the service provider to be received with respect to the
plan is less than $5,000.
Service providers who expect to receive de minimis annual
revenue from the plan need not provide the written statement
described in paragraph (2). The Secretary of Labor may by
regulation or other guidance adjust the dollar amount
specified in this subsection.
``(i) Definitions.--For purposes of this section--
``(1) Service provider.--
``(A) In general.--The term `service provider' includes any
person providing administration, recordkeeping, consulting,
investment management services, or investment advice to an
applicable defined contribution plan under a contract or
arrangement.
``(B) Controlled groups treated as one service provider.--
All persons which would be treated as a single employer under
subsection (b) or (c) of section 414 if section 1563(a)(1)
were applied--
``(i) except as provided by subparagraph (B), by
substituting `more than 50 percent' for `at least 80 percent'
each place it appears therein, or
``(ii) for purposes of subsection (d)(1)(C)(i), by
substituting `at least 20 percent' for `at least 80 percent'
each place it appears therein,
shall be treated as one person for purposes of this section.
``(2) Applicable defined contribution plan.--The term
`applicable defined contribution plan' means any defined
contribution plan
[[Page H4150]]
described in clauses (iii) through (vi) of section
402(c)(8)(B).
``(3) Plan administrator.--The term `plan administrator'
has the meaning given such term by section 414(g).
``SEC. 4980K. FAILURE TO PROVIDE NOTICE TO PARTICIPANTS OF
PLAN FEE INFORMATION.
``(a) Imposition of Tax.--
``(1) In general.--There is hereby imposed a tax on each
failure of a plan administrator of an applicable defined
contribution plan to meet the requirements of paragraph (2)
with respect to any participant or beneficiary.
``(2) Failures described.--The failures described in this
paragraph are--
``(A) any failure to provide an advance notice of available
investment options described in subsection (e)(1),
``(B) any failure to provide an account explanation
described in subsection (e)(2),
``(C) any failure to provide a service provider statement
referred to in subsection (e)(3), and
``(D) any failure to provide a notice of material change
described in subsection (e)(4).
``(b) Amount of Tax.--
``(1) In general.--The amount of the tax imposed by
subsection (a) on any failure with respect to any participant
or beneficiary shall be $100 for each day in the
noncompliance period.
``(2) Noncompliance period.--For purposes of paragraph (1),
the noncompliance period with respect to the failure to
provide any notice, explanation, or statement referred to in
subsection (a)(2) with respect to any participant or
beneficiary is the period beginning on the date that such
notice, explanation, or statement was required to be provided
and ending on the date that such notice, explanation, or
statement is provided or the failure is otherwise corrected.
``(c) Limitations on Amount of Tax.--
``(1) Aggregate limitation.--The total amount of tax
imposed by this section with respect to any plan for any plan
year shall not exceed an amount equal to the lesser of--
``(A) 10 percent of the assets of the plan, determined as
of the first day of such plan year, or
``(B) $500,000.
``(2) Tax not to apply to failures corrected within 30
days.--No tax shall be imposed by subsection (a) on any
failure if--
``(A) any person subject to liability for the tax under
subsection (a) exercised reasonable diligence to meet the
requirements of subsection (e), and
``(B) such person provides the notice, explanation, or
statement to which the failure relates during the 30-day
period beginning on the date such person knew, or exercising
reasonable diligence would have known, that such failure
existed.
``(3) Waiver by secretary.--In the case of a failure which
is due to reasonable cause and not to willful neglect, the
Secretary shall waive part or all of the tax imposed by
subsection (a) to the extent that the payment of such tax
would be excessive or otherwise inequitable relative to the
failure involved.
``(d) Liability for Tax.--The plan administrator shall be
liable for the tax imposed by subsection (a).
``(e) Disclosures to Participants and Beneficiaries.--
``(1) Advance notice of available investment options.--
``(A) In general.--The plan administrator of an applicable
defined contribution plan shall provide to the participant or
beneficiary notice of the investment options available under
the plan before--
``(i) the earliest date provided for under the plan for the
participant's initial investment of any contribution made on
behalf of such participant, and
``(ii) the effective date of any change in the list of
investment options available under the plan, unless such
advance notice is impracticable, and in such case, as soon as
is practicable.
``(B) Information included in notice.--The notice required
under subparagraph (A) shall--
``(i) set forth, with respect to each available investment
option--
``(I) the name of the option,
``(II) a general description of the option's investment
objectives and principal investment strategies, principal
risk and return characteristics, and the name of the option's
investment manager,
``(III) whether the investment option is designed to be a
comprehensive, stand-alone investment for retirement that
provides varying degrees of long-term appreciation and
capital preservation through a mix of equity and fixed income
exposures,
``(IV) the extent to which the investment option is
actively managed or passively managed in relation to an index
and the difference between active management and passive
management,
``(V) where, and the manner in which, additional plan-
specific, option-specific, and generally available investment
information may be obtained, and
``(VI) a statement explaining that investment options
should not be evaluated solely on the basis of the charges
for each option but should also be based on consideration of
other key factors, including the risk level of the option,
the investment objectives of the option, historical returns
of the option, and the participant's personal investment
objectives,
``(ii) include a statement of the right under paragraph (3)
of participants and beneficiaries to request, and a
description of how participant or beneficiary may request, a
copy of the statements received by the plan administrator
under section 4980J with respect to the plan, and
``(iii) include the plan fee comparison chart described in
subparagraph (C).
``(C) Plan fee comparison chart.--
``(i) In general.--
``(I) In general.--The notice provided under this paragraph
shall include a plan fee comparison chart consisting of a
comparison of the service and investment charges that will or
could be assessed against the account of the participant or
beneficiary with respect to the plan year.
``(II) Expressed as dollar amount or formula.--For purposes
of this subparagraph, such charges shall be provided in the
form of a dollar amount or as a formula (such as a percentage
of assets), as appropriate.
``(ii) Categorization of charges.--The plan fee comparison
chart shall provide information in relation to the following
categories of charges that will or could be assessed against
the account of the participant or beneficiary:
``(I) Asset-based charges specific to investment.--Charges
that vary depending on the investment options selected by the
participant or beneficiary, including the annual operating
expenses of the investment option and investment-specific
asset-based charges (such as loads, commissions, brokerage
fees, exchange fees, redemption fees, and surrender charges).
Except as provided by the Secretary of Labor in regulations
under this section, the information relating to such charges
shall include a statement noting any charges for 1 or more
investment options which pay for services other than
investment management.
``(II) Recurring asset-based charges not specific to
investment.--Charges that are assessed as a percentage of the
total assets in the account of the participant or
beneficiary, regardless of the investment option selected.
``(III) Administrative and transaction-based charges.--
Administration and transaction-based charges, including fees
charged to participants to cover plan administration,
compliance, and recordkeeping costs, plan loan origination
fees, possible redemption fees, and possible surrender
charges, that are not assessed as a percentage of the total
assets in the account and are either automatically deducted
each year or result from certain transactions engaged in by
the participant or beneficiary.
``(IV) Other charges.--Any other charges which may be
deducted from participants' or beneficiaries' accounts and
which are not described in subclauses (I), (II), and (III).
``(iii) Fees and historical returns.--The plan fee
comparison chart shall include--
``(I) the historical returns, net of fees and expenses, for
the previous year, 5 years, and 10 years (or for the period
since inception, if shorter) with respect to such investment
option, and
``(II) the historical returns of an appropriate benchmark,
index, or other point of comparison for each such period.
``(D) Model notices.--The Secretary of Labor shall
prescribe one or more model notices that may be used for
purposes of satisfying the requirements of this paragraph,
including model plan fee comparison charts.
``(E) Estimations.--For purposes of providing the notice
required under this paragraph, the plan administrator may
provide a reasonable and representative estimate for any
charges or percentages disclosed under subparagraph (B) or
(C) and shall indicate whether the amount of any such charges
or percentages disclosed is an estimate.
``(2) Quarterly benefit statement.--
``(A) Requirements.--The plan administrator shall provide
to each participant and beneficiary, at least once each
calendar quarter, an explanation describing the investment
options in which the participant's or beneficiary's account
is invested as of the last day of the preceding quarter. Such
explanation shall provide, to the extent applicable, the
following for the preceding quarter:
``(i) As of the last day of the quarter, a statement of the
different asset classes that the participant's or
beneficiary's account is invested in and the percentage of
the account allocated to each asset class.
``(ii) A statement of the starting and ending balance of
the participant's or beneficiary's account for such quarter.
``(iii) A statement of the total contributions made to the
participant's or beneficiary's account during the quarter and
a separate statement of--
``(I) the amount of such contributions, and the total
amount of any restorative payments, which were made by the
employer during the quarter, and
``(II) the amount of such contributions which were made by
the employee.
``(iv) A statement of the total fees and expenses which
were directly deducted from the participant's or
beneficiary's account during the quarter and an itemization
of such fees and expenses.
``(v) A statement of the net returns for the year to date,
expressed as a percentage, and a statement as to whether the
net returns include amounts described in clause (iv).
``(vi) With respect to each investment option in which the
participant or beneficiary was invested as of the last day of
the quarter, the following:
``(I) A statement of the percentage of the participant's or
beneficiary's account that is invested in such option as of
the last day of such quarter.
``(II) A statement of the starting and ending balance of
the participant's or beneficiary's account that is invested
in such option for such quarter.
``(III) A statement of the annual operating expenses of the
investment option.
``(IV) A statement of whether the disclosure described in
clause (iv) includes the annual operating expenses of the
investment options of the participant or beneficiary.
``(vii) The statement described in paragraph (1)(B)(i)(VI).
``(viii) A statement regarding how a participant or
beneficiary may access the information required to be
disclosed under paragraph (1).
[[Page H4151]]
``(B) Model explanations.--The Secretary of Labor shall
prescribe one or more model explanations that may be used for
purposes of satisfying the requirements of this paragraph.
``(C) Determination of expenses.--For purposes of
subparagraph (A)(vi)(III)--
``(i) Expenses may be expressed as a dollar amount or as a
percentage of assets (or a combination thereof).
``(ii) The plan administrator may provide disclosure of the
expenses for the quarter or may provide a reasonable and
representative estimate of such expenses and shall indicate
any such estimate as being an estimate. Any such estimate
shall be based on reasonable assumptions stated together with
such estimate.
``(iii) To the extent that estimated expenses are expressed
as a percentage of assets, the disclosure shall also include
one of the following, stated in dollar amounts:
``(I) an estimate of the expenses for the quarter based on
the amount invested in the option; or
``(II) an example describing the expenses that would apply
during the quarter with respect to a hypothetical $10,000
investment in the option.
``(3) Disclosure of service provider statements.--The plan
administrator shall provide to any participant or beneficiary
a copy of any statement received pursuant to section 4980J
within 30 days after receipt of a request for such a
statement.
``(4) Notice of material changes.--In the case of any event
or other change which causes the information included in any
notice described in paragraph (1) to become materially
incorrect, the plan administrator shall provide participants
and beneficiaries a written statement providing the corrected
information not later than 30 days after the plan
administrator knows, or exercising reasonable diligence would
have known, of such event or other change.
``(5) Time and manner of providing notices and
disclosures.--
``(A) In general.--The notices described in paragraph (1)
shall be provided at such times and in such manner as the
Secretary of Labor may provide. Other notices and materials
required to be provided under this subsection shall be
provided in such manner as such Secretary may provide.
``(B) Manner of presentation.--
``(i) In general.--All information included in such notices
or explanations shall be presented in a manner which is
easily understood by the typical participant.
``(ii) Generic example of operating expenses of investment
options.--The information described in paragraphs
(1)(C)(ii)(I) shall include a generic example describing the
charges that would apply during an annual period with respect
to a $10,000 investment in the investment option.
``(C) Annual compliance for small plans.--A plan that has
fewer than 100 participants and beneficiaries as of the first
day of the plan year may provide the explanation described in
paragraph (2) on an annual rather than a quarterly basis.
``(f) Definitions.--
``(1) Applicable defined contribution plan.--The term
`applicable defined contribution plan' means the portion of
any defined contribution plan which--
``(A) permits a participant or beneficiary to exercise
control over assets in his or her account, and
``(B) is described in clauses (iii) through (vi) of section
402(c)(8)(B).
``(2) Plan administrator.--The term `plan administrator'
has the meaning given such term by section 414(g).
``(g) Regulations.--The Secretary of Labor shall prescribe
such regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this section,
including regulations or other guidance which--
``(1) provide a later deadline for providing the notice of
investment menu changes described in subsection (e)(4) in
appropriate circumstances, and
``(2) provide guidelines, and a safe harbor, for the
selection of an appropriate benchmark, index, or other point
of comparison for an investment option under subsection
(e)(1)(C)(iii)(II).''.
(b) Clerical Amendment.--The table of sections for chapter
43 of such Code is amended by adding at the end the following
new items:
``Sec. 4980J. Failure to provide notice of plan fee information to plan
administrators.
``Sec. 4980K. Failure to provide notice to participants of plan fee
information.''.
SEC. 324. REGULATORY AUTHORITY AND COORDINATION.
(a) Regulatory Authority.--The Secretary of Labor shall
prescribe regulations or other guidance to the extent the
Secretary determines necessary or appropriate to carry out
the purposes of sections 105, 111, and 112 of the Employee
Retirement Income Security Act of 1974 and sections 4980J and
4980K of the Internal Revenue Code of 1986, including
regulations or other guidance which--
(1) provide safe harbor and simplified methods for making
the allocations described in subsection (a)(1)(D) of such
section 111 and subsection (d)(1)(D) of such section 4980J;
and
(2) provide special rules for the application of such
sections to--
(A) investments with a guaranteed rate of return;
(B) investments with an insurance component; and
(C) employer sponsored retirement plans funded through an
individual retirement account.
(3) address notices with respect to investments provided
through participant directed brokerage trading;
(4) address the disclosure of information that is not
proprietary to the service provider; and
(5) provide rules to allow service providers to consolidate
information to satisfy the requirements of such sections with
respect to all such service providers.
(b) Certain Electronic Disclosures Permitted.--Any
disclosure required under section 112 of the Employee
Retirement Income Security Act of 1974 or section 4980K of
the Internal Revenue Code of 1986 may be provided through an
electronic medium under such rules as shall be prescribed
under such section by the Secretary of Labor not later than 1
year after the date of the enactment of this Act. Such rules
shall be similar to those applicable under the Internal
Revenue Code of 1986 with respect to notices to participants
in pension plans. Such Secretary shall regularly modify such
rules as appropriate to take into account new developments,
including new forms of electronic media, and to fairly take
into consideration the interests of plan sponsors, service
providers, and participants. The rules prescribed by such
Secretary pursuant to this subsection shall provide for a
method for the typical participant or beneficiary to obtain
without undue burden any such disclosure in writing on paper
in lieu of receipt through an electronic medium.
SEC. 325. EFFECTIVE DATE OF SUBTITLE.
(a) In General.--The amendments made by this subtitle shall
apply to plan years beginning after December 31, 2011.
(b) Application of Service Provider Disclosures to Existing
Contracts and Arrangements.--For purposes of section 111 of
the Employee Retirement Income Security Act of 1974 and
section 4980J of the Internal Revenue Code of 1986, any
contract or arrangement to provide services to a plan which
is in effect on January 1, 2012, shall be treated as a new
contract or arrangement entered into on such date.
(c) Special Rule for Compliance With Subtitle.--Until 12
months after final regulations are issued by the Secretary of
Labor pursuant to the amendments made by this subtitle, a
service provider or plan administrator shall be treated as
having complied with such amendments if such service provider
or plan administrator complies with a reasonable good faith
interpretation of such amendments.
TITLE IV--REVENUE OFFSETS
Subtitle A--Foreign Provisions
SEC. 401. RULES TO PREVENT SPLITTING FOREIGN TAX CREDITS FROM
THE INCOME TO WHICH THEY RELATE.
(a) In General.--Subpart A of part III of subchapter N of
chapter 1 is amended by adding at the end the following new
section:
``SEC. 909. SUSPENSION OF TAXES AND CREDITS UNTIL RELATED
INCOME TAKEN INTO ACCOUNT.
``(a) In General.--If there is a foreign tax credit
splitting event with respect to a foreign income tax paid or
accrued by the taxpayer, such tax shall not be taken into
account for purposes of this title before the taxable year in
which the related income is taken into account under this
chapter by the taxpayer.
``(b) Special Rules With Respect to Section 902
Corporations.--If there is a foreign tax credit splitting
event with respect to a foreign income tax paid or accrued by
a section 902 corporation, such tax shall not be taken into
account--
``(1) for purposes of section 902 or 960, or
``(2) for purposes of determining earnings and profits
under section 964(a),
before the taxable year in which the related income is taken
into account under this chapter by such section 902
corporation or a domestic corporation which meets the
ownership requirements of subsection (a) or (b) of section
902 with respect to such section 902 corporation.
``(c) Special Rules.--For purposes of this section--
``(1) Application to partnerships, etc.--In the case of a
partnership, subsections (a) and (b) shall be applied at the
partner level. Except as otherwise provided by the Secretary,
a rule similar to the rule of the preceding sentence shall
apply in the case of any S corporation or trust.
``(2) Treatment of foreign taxes after suspension.--In the
case of any foreign income tax not taken into account by
reason of subsection (a) or (b), except as otherwise provided
by the Secretary, such tax shall be so taken into account in
the taxable year referred to in such subsection (other than
for purposes of section 986(a)) as a foreign income tax paid
or accrued in such taxable year.
``(d) Definitions.--For purposes of this section--
``(1) Foreign tax credit splitting event.--There is a
foreign tax credit splitting event with respect to a foreign
income tax if the related income is (or will be) taken into
account under this chapter by a covered person.
``(2) Foreign income tax.--The term `foreign income tax'
means any income, war profits, or excess profits tax paid or
accrued to any foreign country or to any possession of the
United States.
``(3) Related income.--The term `related income' means,
with respect to any portion of any foreign income tax, the
income (or, as appropriate, earnings and profits) to which
such portion of foreign income tax relates.
``(4) Covered person.--The term `covered person' means,
with respect to any person who pays or accrues a foreign
income tax (hereafter in this paragraph referred to as the
`payor')--
``(A) any entity in which the payor holds, directly or
indirectly, at least a 10 percent ownership interest
(determined by vote or value),
``(B) any person which holds, directly or indirectly, at
least a 10 percent ownership interest (determined by vote or
value) in the payor,
``(C) any person which bears a relationship to the payor
described in section 267(b) or 707(b), and
[[Page H4152]]
``(D) any other person specified by the Secretary for
purposes of this paragraph.
``(5) Section 902 corporation.--The term `section 902
corporation' means any foreign corporation with respect to
which one or more domestic corporations meets the ownership
requirements of subsection (a) or (b) of section 902.
``(e) Regulations.--The Secretary may issue such
regulations or other guidance as is necessary or appropriate
to carry out the purposes of this section, including
regulations or other guidance which provides--
``(1) appropriate exceptions from the provisions of this
section, and
``(2) for the proper application of this section with
respect to hybrid instruments.''.
(b) Clerical Amendment.--The table of sections for subpart
A of part III of subchapter N of chapter 1 is amended by
adding at the end the following new item:
``Sec. 909. Suspension of taxes and credits until related income taken
into account.''.
(c) Effective Date.--The amendments made by this section
shall apply to--
(1) foreign income taxes (as defined in section 909(d) of
the Internal Revenue Code of 1986, as added by this section)
paid or accrued after May 20, 2010; and
(2) foreign income taxes (as so defined) paid or accrued by
a section 902 corporation (as so defined) on or before such
date (and not deemed paid under section 902(a) or 960 of such
Code on or before such date), but only for purposes of
applying sections 902 and 960 with respect to periods after
such date.
Section 909(b)(2) of the Internal Revenue Code of 1986, as
added by this section, shall not apply to foreign income
taxes described in paragraph (2).
SEC. 402. DENIAL OF FOREIGN TAX CREDIT WITH RESPECT TO
FOREIGN INCOME NOT SUBJECT TO UNITED STATES
TAXATION BY REASON OF COVERED ASSET
ACQUISITIONS.
(a) In General.--Section 901 is amended by redesignating
subsection (m) as subsection (n) and by inserting after
subsection (l) the following new subsection:
``(m) Denial of Foreign Tax Credit With Respect to Foreign
Income Not Subject to United States Taxation by Reason of
Covered Asset Acquisitions.--
``(1) In general.--In the case of a covered asset
acquisition, the disqualified portion of any foreign income
tax determined with respect to the income or gain
attributable to the relevant foreign assets--
``(A) shall not be taken into account in determining the
credit allowed under subsection (a), and
``(B) in the case of a foreign income tax paid by a section
902 corporation (as defined in section 909(d)(5)), shall not
be taken into account for purposes of section 902 or 960.
``(2) Covered asset acquisition.--For purposes of this
section, the term `covered asset acquisition' means--
``(A) a qualified stock purchase (as defined in section
338(d)(3)) to which section 338(a) applies,
``(B) any transaction which--
``(i) is treated as an acquisition of assets for purposes
of this chapter, and
``(ii) is treated as the acquisition of stock of a
corporation (or is disregarded) for purposes of the foreign
income taxes of the relevant jurisdiction,
``(C) any acquisition of an interest in a partnership which
has an election in effect under section 754, and
``(D) to the extent provided by the Secretary, any other
similar transaction.
``(3) Disqualified portion.--For purposes of this section--
``(A) In general.--The term `disqualified portion' means,
with respect to any covered asset acquisition, for any
taxable year, the ratio (expressed as a percentage) of--
``(i) the aggregate basis differences (but not below zero)
allocable to such taxable year under subparagraph (B) with
respect to all relevant foreign assets, divided by
``(ii) the income on which the foreign income tax referred
to in paragraph (1) is determined (or, if the taxpayer fails
to substantiate such income to the satisfaction of the
Secretary, such income shall be determined by dividing the
amount of such foreign income tax by the highest marginal tax
rate applicable to such income in the relevant jurisdiction).
``(B) Allocation of basis difference.--For purposes of
subparagraph (A)(i)--
``(i) In general.--The basis difference with respect to any
relevant foreign asset shall be allocated to taxable years
using the applicable cost recovery method under this chapter.
``(ii) Special rule for disposition of assets.--Except as
otherwise provided by the Secretary, in the case of the
disposition of any relevant foreign asset--
``(I) the basis difference allocated to the taxable year
which includes the date of such disposition shall be the
excess of the basis difference with respect to such asset
over the aggregate basis difference with respect to such
asset which has been allocated under clause (i) to all prior
taxable years, and
``(II) no basis difference with respect to such asset shall
be allocated under clause (i) to any taxable year thereafter.
``(C) Basis difference.--
``(i) In general.--The term `basis difference' means, with
respect to any relevant foreign asset, the excess of--
``(I) the adjusted basis of such asset immediately after
the covered asset acquisition, over
``(II) the adjusted basis of such asset immediately before
the covered asset acquisition.
``(ii) Built-in loss assets.--In the case of a relevant
foreign asset with respect to which the amount described in
clause (i)(II) exceeds the amount described in clause (i)(I),
such excess shall be taken into account under this subsection
as a basis difference of a negative amount.
``(iii) Special rule for section 338 elections.--In the
case of a covered asset acquisition described in paragraph
(2)(A), the covered asset acquisition shall be treated for
purposes of this subparagraph as occurring at the close of
the acquisition date (as defined in section 338(h)(2)).
``(4) Relevant foreign assets.--For purposes of this
section, the term `relevant foreign asset' means, with
respect to any covered asset acquisition, any asset
(including any goodwill, going concern value, or other
intangible) with respect to such acquisition if income,
deduction, gain, or loss attributable to such asset is taken
into account in determining the foreign income tax referred
to in paragraph (1).
``(5) Foreign income tax.--For purposes of this section,
the term `foreign income tax' means any income, war profits,
or excess profits tax paid or accrued to any foreign country
or to any possession of the United States.
``(6) Taxes allowed as a deduction, etc.--Sections 275 and
78 shall not apply to any tax which is not allowable as a
credit under subsection (a) by reason of this subsection.
``(7) Regulations.--The Secretary may issue such
regulations or other guidance as is necessary or appropriate
to carry out the purposes of this subsection, including to
exempt from the application of this subsection certain
covered asset acquisitions, and relevant foreign assets with
respect to which the basis difference is de minimis.''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to covered asset
acquisitions (as defined in section 901(m)(2) of the Internal
Revenue Code of 1986, as added by this section) after--
(A) May 20, 2010, if the transferor and the transferee are
related; and
(B) the date of the enactment of this Act in any other
case.
(2) Transition rule.--The amendments made by this section
shall not apply to any covered asset acquisition (as so
defined) with respect to which the transferor and the
transferee are not related if such acquisition is--
(A) made pursuant to a written agreement which was binding
on May 20, 2010, and at all times thereafter,
(B) described in a ruling request submitted to the Internal
Revenue Service on or before such date; or
(C) described on or before such date in a public
announcement or in a filing with the Securities and Exchange
Commission.
(3) Related persons.--For purposes of this subsection, a
person shall be treated as related to another person if the
relationship between such persons is described in section 267
or 707(b) of the Internal Revenue Code of 1986.
SEC. 403. SEPARATE APPLICATION OF FOREIGN TAX CREDIT
LIMITATION, ETC., TO ITEMS RESOURCED UNDER
TREATIES.
(a) In General.--Subsection (d) of section 904 is amended
by redesignating paragraph (6) as paragraph (7) and by
inserting after paragraph (5) the following new paragraph:
``(6) Separate application to items resourced under
treaties.--
``(A) In general.--If--
``(i) without regard to any treaty obligation of the United
States, any item of income would be treated as derived from
sources within the United States,
``(ii) under a treaty obligation of the United States, such
item would be treated as arising from sources outside the
United States, and
``(iii) the taxpayer chooses the benefits of such treaty
obligation,
subsections (a), (b), and (c) of this section and sections
902, 907, and 960 shall be applied separately with respect to
each such item.
``(B) Coordination with other provisions.--This paragraph
shall not apply to any item of income to which subsection
(h)(10) or section 865(h) applies.
``(C) Regulations.--The Secretary may issue such
regulations or other guidance as is necessary or appropriate
to carry out the purposes of this paragraph, including
regulations or other guidance which provides that related
items of income may be aggregated for purposes of this
paragraph.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 404. LIMITATION ON THE AMOUNT OF FOREIGN TAXES DEEMED
PAID WITH RESPECT TO SECTION 956 INCLUSIONS.
(a) In General.--Section 960 is amended by adding at the
end the following new subsection:
``(c) Limitation With Respect to Section 956 Inclusions.--
``(1) In general.--If there is included under section
951(a)(1)(B) in the gross income of a domestic corporation
any amount attributable to the earnings and profits of a
foreign corporation which is a member of a qualified group
(as defined in section 902(b)) with respect to the domestic
corporation, the amount of any foreign income taxes deemed to
have been paid during the taxable year by such domestic
corporation under section 902 by reason of subsection (a)
with respect to such inclusion in gross income shall not
exceed the amount of the foreign income taxes which would
have been deemed to have been paid during the taxable year by
such domestic corporation if cash in an amount equal to the
amount of such inclusion in gross income were distributed as
a series of distributions (determined without regard to any
foreign taxes which would be imposed on an actual
distribution) through the chain of ownership which begins
with such foreign corporation and ends with such domestic
corporation.
[[Page H4153]]
``(2) Authority to prevent abuse.--The Secretary shall
issue such regulations or other guidance as is necessary or
appropriate to carry out the purposes of this subsection,
including regulations or other guidance which prevent the
inappropriate use of the foreign corporation's foreign income
taxes not deemed paid by reason of paragraph (1).''.
(b) Effective Date.--The amendment made by this section
shall apply to acquisitions of United States property (as
defined in section 956(c) of the Internal Revenue Code of
1986) after May 20, 2010.
SEC. 405. SPECIAL RULE WITH RESPECT TO CERTAIN REDEMPTIONS BY
FOREIGN SUBSIDIARIES.
(a) In General.--Paragraph (5) of section 304(b) is amended
by redesignating subparagraph (B) as subparagraph (C) and by
inserting after subparagraph (A) the following new
subparagraph:
``(B) Special rule in case of foreign acquiring
corporation.--In the case of any acquisition to which
subsection (a) applies in which the acquiring corporation is
a foreign corporation, no earnings and profits shall be taken
into account under paragraph (2)(A) (and subparagraph (A)
shall not apply) if more than 50 percent of the dividends
arising from such acquisition (determined without regard to
this subparagraph) would not--
``(i) be subject to tax under this chapter for the taxable
year in which the dividends arise, or
``(ii) be includible in the earnings and profits of a
controlled foreign corporation (as defined in section 957 and
without regard to section 953(c)).''.
(b) Effective Date.--The amendments made by this section
shall apply to acquisitions after May 20, 2010.
SEC. 406. MODIFICATION OF AFFILIATION RULES FOR PURPOSES OF
RULES ALLOCATING INTEREST EXPENSE.
(a) In General.--Subparagraph (A) of section 864(e)(5) is
amended by adding at the end the following: ``Notwithstanding
the preceding sentence, a foreign corporation shall be
treated as a member of the affiliated group if--
``(i) more than 50 percent of the gross income of such
foreign corporation for the taxable year is effectively
connected with the conduct of a trade or business within the
United States, and
``(ii) at least 80 percent of either the vote or value of
all outstanding stock of such foreign corporation is owned
directly or indirectly by members of the affiliated group
(determined with regard to this sentence).''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 407. TERMINATION OF SPECIAL RULES FOR INTEREST AND
DIVIDENDS RECEIVED FROM PERSONS MEETING THE 80-
PERCENT FOREIGN BUSINESS REQUIREMENTS.
(a) In General.--Paragraph (1) of section 861(a) is amended
by striking subparagraph (A) and by redesignating
subparagraphs (B) and (C) as subparagraphs (A) and (B),
respectively.
(b) Grandfather Rule With Respect to Withholding on
Interest and Dividends Received From Persons Meeting the 80-
percent Foreign Business Requirements.--
(1) In general.--Subparagraph (B) of section 871(i)(2) is
amended to read as follows:
``(B) The active foreign business percentage of--
``(i) any dividend paid by an existing 80/20 company, and
``(ii) any interest paid by an existing 80/20 company.''.
(2) Definitions and special rules.--Section 871 is amended
by redesignating subsections (l) and (m) as subsections (m)
and (n), respectively, and by inserting after subsection (k)
the following new subsection:
``(l) Rules Relating to Existing 80/20 Companies.--For
purposes of this subsection and subsection (i)(2)(B)--
``(1) Existing 80/20 company.--
``(A) In general.--The term `existing 80/20 company' means
any corporation if--
``(i) such corporation met the 80-percent foreign business
requirements of section 861(c)(1) (as in effect before the
enactment of this subsection) for such corporation's last
taxable year beginning before January 1, 2011,
``(ii) such corporation meets the 80-percent foreign
business requirements of subparagraph (B) with respect to
each taxable year after the taxable year referred to in
clause (i), and
``(iii) there has not been an addition of a substantial
line of business with respect to such corporation after the
date of the enactment of this subsection.
``(B) Foreign business requirements.--
``(i) In general.--A corporation meets the 80-percent
foreign business requirements of this subparagraph if it is
shown to the satisfaction of the Secretary that at least 80
percent of the gross income from all sources of such
corporation for the testing period is active foreign business
income.
``(ii) Active foreign business income.--For purposes of
clause (i), the term `active foreign business income' means
gross income which--
``(I) is derived from sources outside the United States (as
determined under this subchapter), and
``(II) is attributable to the active conduct of a trade or
business in a foreign country or possession of the United
States.
``(iii) Testing period.--For purposes of this subsection,
the term `testing period' means the 3-year period ending with
the close of the taxable year of the corporation preceding
the payment (or such part of such period as may be
applicable). If the corporation has no gross income for such
3-year period (or part thereof), the testing period shall be
the taxable year in which the payment is made.
``(2) Active foreign business percentage.--The term `active
foreign business percentage' means, with respect to any
existing 80/20 company, the percentage which--
``(A) the active foreign business income of such company
for the testing period, is of
``(B) the gross income of such company for the testing
period from all sources.
``(3) Aggregation rules.--For purposes of applying
paragraph (1) (other than subparagraph (A)(i) thereof) and
paragraph (2)--
``(A) In general.--The corporation referred to in paragraph
(1)(A) and all of such corporation's subsidiaries shall be
treated as one corporation.
``(B) Subsidiaries.--For purposes of subparagraph (A), the
term `subsidiary' means any corporation in which the
corporation referred to in subparagraph (A) owns (directly or
indirectly) stock meeting the requirements of section
1504(a)(2) (determined by substituting `50 percent' for `80
percent' each place it appears and without regard to section
1504(b)(3)).
``(4) Regulations.--The Secretary may issue such
regulations or other guidance as is necessary or appropriate
to carry out the purposes of this section, including
regulations or other guidance which provide for the proper
application of the aggregation rules described in paragraph
(3).''.
(c) Conforming Amendments.--
(1) Section 861 is amended by striking subsection (c) and
by redesignating subsections (d), (e), and (f) as subsections
(c), (d), and (e), respectively.
(2) Paragraph (9) of section 904(h) is amended to read as
follows:
``(9) Treatment of certain domestic corporations.--In the
case of any dividend treated as not from sources within the
United States under section 861(a)(2)(A), the corporation
paying such dividend shall be treated for purposes of this
subsection as a United States-owned foreign corporation.''.
(3) Subsection (c) of section 2104 is amended in the last
sentence by striking ``or to a debt obligation of a domestic
corporation'' and all that follows and inserting a period.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2010.
(2) Grandfather rule for outstanding debt obligations.--
(A) In general.--The amendments made by this section shall
not apply to payments of interest on obligations issued
before the date of the enactment of this Act.
(B) Exception for related party debt.--Subparagraph (A)
shall not apply to any interest which is payable to a related
person (determined under rules similar to the rules of
section 954(d)(3)).
(C) Significant modifications treated as new issues.--For
purposes of subparagraph (A), a significant modification of
the terms of any obligation (including any extension of the
term of such obligation) shall be treated as a new issue.
SEC. 408. SOURCE RULES FOR INCOME ON GUARANTEES.
(a) Amounts Sourced Within the United States.--Subsection
(a) of section 861 is amended by adding at the end the
following new paragraph:
``(9) Guarantees.--Amounts--
``(A) received from noncorporate residents or domestic
corporations with respect to guarantees, and
``(B) paid by any foreign person with respect to guarantees
if such amount is connected with income which is effectively
connected (or treated as effectively connected) with the
conduct of a trade or business in the United States.''.
(b) Amounts Sourced Without the United States.--Subsection
(a) of section 862 is amended by striking ``and'' at the end
of paragraph (7), by striking the period at the end of
paragraph (8) and inserting ``; and'', and by adding at the
end the following new paragraph:
``(9) amounts received with respect to guarantees other
than those derived from sources within the United States as
provided in section 861(a)(9).''.
(c) Conforming Amendment.--Clause (ii) of section
864(c)(4)(B) is amended by striking ``dividends or interest''
and inserting ``dividends, interest, or amounts with respect
to guarantees''.
(d) Effective Date.--The amendments made by this section
shall apply to guarantees issued after the date of the
enactment of this Act.
SEC. 409. LIMITATION ON EXTENSION OF STATUTE OF LIMITATIONS
FOR FAILURE TO NOTIFY SECRETARY OF CERTAIN
FOREIGN TRANSFERS.
(a) In General.--Paragraph (8) of section 6501(c) is
amended--
(1) by striking ``In the case of any information'' and
inserting the following:
``(A) In general.--In the case of any information''; and
(2) by adding at the end the following:
``(B) Application to failures due to reasonable cause.--If
the failure to furnish the information referred to in
subparagraph (A) is due to reasonable cause and not willful
neglect, subparagraph (A) shall apply only to the item or
items related to such failure.''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in section 513 of the Hiring
Incentives to Restore Employment Act.
Subtitle B--Personal Service Income Earned in Pass-thru Entities
SEC. 411. PARTNERSHIP INTERESTS TRANSFERRED IN CONNECTION
WITH PERFORMANCE OF SERVICES.
(a) Modification to Election To Include Partnership
Interest in Gross Income in Year of Transfer.--Subsection (c)
of section 83 is amended by redesignating paragraph (4) as
[[Page H4154]]
paragraph (5) and by inserting after paragraph (3) the
following new paragraph:
``(4) Partnership interests.--Except as provided by the
Secretary, in the case of any transfer of an interest in a
partnership in connection with the provision of services to
(or for the benefit of) such partnership--
``(A) the fair market value of such interest shall be
treated for purposes of this section as being equal to the
amount of the distribution which the partner would receive if
the partnership sold (at the time of the transfer) all of its
assets at fair market value and distributed the proceeds of
such sale (reduced by the liabilities of the partnership) to
its partners in liquidation of the partnership, and
``(B) the person receiving such interest shall be treated
as having made the election under subsection (b)(1) unless
such person makes an election under this paragraph to have
such subsection not apply.''.
(b) Conforming Amendment.--Paragraph (2) of section 83(b)
is amended by inserting ``or subsection (c)(4)(B)'' after
``paragraph (1)''.
(c) Effective Date.--The amendments made by this section
shall apply to interests in partnerships transferred after
the date of the enactment of this Act.
SEC. 412. INCOME OF PARTNERS FOR PERFORMING INVESTMENT
MANAGEMENT SERVICES TREATED AS ORDINARY INCOME
RECEIVED FOR PERFORMANCE OF SERVICES.
(a) In General.--Part I of subchapter K of chapter 1 is
amended by adding at the end the following new section:
``SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT
MANAGEMENT SERVICES TO PARTNERSHIP.
``(a) Treatment of Distributive Share of Partnership
Items.--For purposes of this title, in the case of an
investment services partnership interest--
``(1) In general.--Notwithstanding section 702(b)--
``(A) any net income with respect to such interest for any
partnership taxable year shall be treated as ordinary income,
and
``(B) any net loss with respect to such interest for such
year, to the extent not disallowed under paragraph (2) for
such year, shall be treated as an ordinary loss.
All items of income, gain, deduction, and loss which are
taken into account in computing net income or net loss shall
be treated as ordinary income or ordinary loss (as the case
may be).
``(2) Treatment of losses.--
``(A) Limitation.--Any net loss with respect to such
interest shall be allowed for any partnership taxable year
only to the extent that such loss does not exceed the excess
(if any) of--
``(i) the aggregate net income with respect to such
interest for all prior partnership taxable years, over
``(ii) the aggregate net loss with respect to such interest
not disallowed under this subparagraph for all prior
partnership taxable years.
``(B) Carryforward.--Any net loss for any partnership
taxable year which is not allowed by reason of subparagraph
(A) shall be treated as an item of loss with respect to such
partnership interest for the succeeding partnership taxable
year.
``(C) Basis adjustment.--No adjustment to the basis of a
partnership interest shall be made on account of any net loss
which is not allowed by reason of subparagraph (A).
``(D) Prior partnership years.--Any reference in this
paragraph to prior partnership taxable years shall only
include prior partnership taxable years to which this section
applies.
``(3) Net income and loss.--For purposes of this section--
``(A) Net income.--The term `net income' means, with
respect to any investment services partnership interest for
any partnership taxable year, the excess (if any) of--
``(i) all items of income and gain taken into account by
the holder of such interest under section 702 with respect to
such interest for such year, over
``(ii) all items of deduction and loss so taken into
account.
``(B) Net loss.--The term `net loss' means, with respect to
such interest for such year, the excess (if any) of the
amount described in subparagraph (A)(ii) over the amount
described in subparagraph (A)(i).
``(4) Special rule for dividends.--Any dividend taken into
account in determining net income or net loss for purposes of
paragraph (1) shall not be treated as qualified dividend
income for purposes of section 1(h).
``(b) Dispositions of Partnership Interests.--
``(1) Gain.--Any gain on the disposition of an investment
services partnership interest shall be--
``(A) treated as ordinary income, and
``(B) recognized notwithstanding any other provision of
this subtitle.
``(2) Loss.--Any loss on the disposition of an investment
services partnership interest shall be treated as an ordinary
loss to the extent of the excess (if any) of--
``(A) the aggregate net income with respect to such
interest for all partnership taxable years to which this
section applies, over
``(B) the aggregate net loss with respect to such interest
allowed under subsection (a)(2) for all partnership taxable
years to which this section applies.
``(3) Exception for the disposition of an interest in a
publicly traded partnership by an individual.--Paragraphs (1)
and (2) shall not apply in the case of the disposition by an
individual of an investment services partnership interest
which is an interest in a publicly traded partnership (as
defined in section 7704) if neither such individual nor any
member of such individual's family (within the meaning of
section 318(a)(1)) has (at any time) provided any of the
services described in subsection (c)(1) with respect to
assets held (directly or indirectly) by such publicly traded
partnership.
``(4) Election with respect to certain exchanges.--
Paragraph (1)(B) shall not apply to the contribution of an
investment services partnership interest to a partnership in
exchange for an interest in such partnership if--
``(A) the taxpayer makes an irrevocable election to treat
the partnership interest received in the exchange as an
investment services partnership interest, and
``(B) the taxpayer agrees to comply with such reporting and
recordkeeping requirements as the Secretary may prescribe.
``(5) Disposition of portion of interest.--In the case of
any disposition of an investment services partnership
interest, the amount of net loss which otherwise would have
(but for subsection (a)(2)(C)) applied to reduce the basis of
such interest shall be disregarded for purposes of this
section for all succeeding partnership taxable years.
``(6) Distributions of partnership property.--In the case
of any distribution of property by a partnership with respect
to any investment services partnership interest held by a
partner--
``(A) the excess (if any) of--
``(i) the fair market value of such property at the time of
such distribution, over
``(ii) the adjusted basis of such property in the hands of
the partnership,
shall be taken into account as an increase in such partner's
distributive share of the taxable income of the partnership
(except to the extent such excess is otherwise taken into
account in determining the taxable income of the
partnership),
``(B) such property shall be treated for purposes of
subpart B of part II as money distributed to such partner in
an amount equal to such fair market value, and
``(C) the basis of such property in the hands of such
partner shall be such fair market value.
Subsection (b) of section 734 shall be applied without regard
to the preceding sentence. In the case of a taxpayer which
satisfies requirements similar to the requirements of
subparagraphs (A) and (B) of paragraph (4), this paragraph
and paragraph (1)(B) shall not apply to the distribution of a
partnership interest if such distribution is in connection
with a contribution (or deemed contribution) of any property
of the partnership to which section 721 applies pursuant to a
transaction described in paragraph (1)(B) or (2) of section
708(b).
``(7) Application of section 751.--In applying section 751,
an investment services partnership interest shall be treated
as an inventory item.
``(c) Investment Services Partnership Interest.--For
purposes of this section--
``(1) In general.--The term `investment services
partnership interest' means any interest in a partnership
which is held (directly or indirectly) by any person if it
was reasonably expected (at the time that such person
acquired such interest) that such person (or any person
related to such person) would provide (directly or
indirectly) a substantial quantity of any of the following
services with respect to assets held (directly or indirectly)
by the partnership:
``(A) Advising as to the advisability of investing in,
purchasing, or selling any specified asset.
``(B) Managing, acquiring, or disposing of any specified
asset.
``(C) Arranging financing with respect to acquiring
specified assets.
``(D) Any activity in support of any service described in
subparagraphs (A) through (C).
``(2) Specified asset.--The term `specified asset' means
securities (as defined in section 475(c)(2) without regard to
the last sentence thereof), real estate held for rental or
investment, interests in partnerships, commodities (as
defined in section 475(e)(2)), or options or derivative
contracts with respect to any of the foregoing.
``(3) Exception for family farms.--The term `specified
asset' shall not include any farm used for farming purposes
if such farm is held by a partnership all of the interests in
which are held (directly or indirectly) by members of the
same family. Terms used in the preceding sentence which are
also used in section 2032A shall have the same meaning as
when used in such section.
``(4) Related persons.--A person shall be treated as
related to another person if the relationship between such
persons is described in section 267 or 707(b).
``(d) Exception for Certain Capital Interests.--
``(1) In general.--In the case of any portion of an
investment services partnership interest which is a qualified
capital interest, all items of income, gain, loss, and
deduction which are allocated to such qualified capital
interest shall not be taken into account under subsection (a)
if--
``(A) allocations of items are made by the partnership to
such qualified capital interest in the same manner as such
allocations are made to other qualified capital interests
held by partners who do not provide any services described in
subsection (c)(1) and who are not related to the partner
holding the qualified capital interest, and
``(B) the allocations made to such other interests are
significant compared to the allocations made to such
qualified capital interest.
``(2) Authority to provide exceptions to allocation
requirements.--To the extent provided by the Secretary in
regulations or other guidance--
``(A) Allocations to portion of qualified capital
interest.--Paragraph (1) may be applied separately with
respect to a portion of a qualified capital interest.
``(B) No or insignificant allocations to nonservice
providers.--In any case in which the requirements of
paragraph (1)(B) are not
[[Page H4155]]
satisfied, items of income, gain, loss, and deduction shall
not be taken into account under subsection (a) to the extent
that such items are properly allocable under such regulations
or other guidance to qualified capital interests.
``(C) Allocations to service providers' qualified capital
interests which are less than other allocations.--Allocations
shall not be treated as failing to meet the requirement of
paragraph (1)(A) merely because the allocations to the
qualified capital interest represent a lower return than the
allocations made to the other qualified capital interests
referred to in such paragraph.
``(3) Special rule for changes in services.--In the case of
an interest in a partnership which is not an investment
services partnership interest and which, by reason of a
change in the services with respect to assets held (directly
or indirectly) by the partnership, would (without regard to
the reasonable expectation exception of subsection (c)(1))
have become such an interest--
``(A) notwithstanding subsection (c)(1), such interest
shall be treated as an investment services partnership
interest as of the time of such change, and
``(B) for purposes of this subsection, the qualified
capital interest of the holder of such partnership interest
immediately after such change shall not be less than the fair
market value of such interest (determined immediately before
such change).
``(4) Special rule for tiered partnerships.--Except as
otherwise provided by the Secretary, in the case of tiered
partnerships, all items which are allocated in a manner which
meets the requirements of paragraph (1) to qualified capital
interests in a lower-tier partnership shall retain such
character to the extent allocated on the basis of qualified
capital interests in any upper-tier partnership.
``(5) Exception for no-self-charged carry and management
fee provisions.--Except as otherwise provided by the
Secretary, an interest shall not fail to be treated as
satisfying the requirement of paragraph (1)(A) merely because
the allocations made by the partnership to such interest do
not reflect the cost of services described in subsection
(c)(1) which are provided (directly or indirectly) to the
partnership by the holder of such interest (or a related
person).
``(6) Special rule for dispositions.--In the case of any
investment services partnership interest any portion of which
is a qualified capital interest, subsection (b) shall not
apply to so much of any gain or loss as bears the same
proportion to the entire amount of such gain or loss as--
``(A) the distributive share of gain or loss that would
have been allocated to the qualified capital interest
(consistent with the requirements of paragraph (1)) if the
partnership had sold all of its assets at fair market value
immediately before the disposition, bears to
``(B) the distributive share of gain or loss that would
have been so allocated to the investment services partnership
interest of which such qualified capital interest is a part.
``(7) Qualified capital interest.--For purposes of this
subsection--
``(A) In general.--The term `qualified capital interest'
means so much of a partner's interest in the capital of the
partnership as is attributable to--
``(i) the fair market value of any money or other property
contributed to the partnership in exchange for such interest
(determined without regard to section 752(a)),
``(ii) any amounts which have been included in gross income
under section 83 with respect to the transfer of such
interest, and
``(iii) the excess (if any) of--
``(I) any items of income and gain taken into account under
section 702 with respect to such interest, over
``(II) any items of deduction and loss so taken into
account.
``(B) Adjustment to qualified capital interest.--
``(i) Distributions and losses.--The qualified capital
interest shall be reduced by distributions from the
partnership with respect to such interest and by the excess
(if any) of the amount described in subparagraph (A)(iii)(II)
over the amount described in subparagraph (A)(iii)(I).
``(ii) Special rule for contributions of property.--In the
case of any contribution of property described in
subparagraph (A)(i) with respect to which the fair market
value of such property is not equal to the adjusted basis of
such property immediately before such contribution, proper
adjustments shall be made to the qualified capital interest
to take into account such difference consistent with such
regulations or other guidance as the Secretary may provide.
``(8) Treatment of certain loans.--
``(A) Proceeds of partnership loans not treated as
qualified capital interest of service providing partners.--
For purposes of this subsection, an investment services
partnership interest shall not be treated as a qualified
capital interest to the extent that such interest is acquired
in connection with the proceeds of any loan or other advance
made or guaranteed, directly or indirectly, by any other
partner or the partnership (or any person related to any such
other partner or the partnership).
``(B) Reduction in allocations to qualified capital
interests for loans from nonservice providing partners to the
partnership.--For purposes of this subsection, any loan or
other advance to the partnership made or guaranteed, directly
or indirectly, by a partner not providing services described
in subsection (c)(1) to the partnership (or any person
related to such partner) shall be taken into account in
determining the qualified capital interests of the partners
in the partnership.
``(e) Other Income and Gain in Connection With Investment
Management Services.--
``(1) In general.--If--
``(A) a person performs (directly or indirectly) investment
management services for any entity,
``(B) such person holds (directly or indirectly) a
disqualified interest with respect to such entity, and
``(C) the value of such interest (or payments thereunder)
is substantially related to the amount of income or gain
(whether or not realized) from the assets with respect to
which the investment management services are performed,
any income or gain with respect to such interest shall be
treated as ordinary income. Rules similar to the rules of
subsections (a)(4) and (d) shall apply for purposes of this
subsection.
``(2) Definitions.--For purposes of this subsection--
``(A) Disqualified interest.--
``(i) In general.--The term `disqualified interest' means,
with respect to any entity--
``(I) any interest in such entity other than indebtedness,
``(II) convertible or contingent debt of such entity,
``(III) any option or other right to acquire property
described in subclause (I) or (II), and
``(IV) any derivative instrument entered into (directly or
indirectly) with such entity or any investor in such entity.
``(ii) Exceptions.--Such term shall not include--
``(I) a partnership interest,
``(II) except as provided by the Secretary, any interest in
a taxable corporation, and
``(III) except as provided by the Secretary, stock in an S
corporation.
``(B) Taxable corporation.--The term `taxable corporation'
means--
``(i) a domestic C corporation, or
``(ii) a foreign corporation substantially all of the
income of which is--
``(I) effectively connected with the conduct of a trade or
business in the United States, or
``(II) subject to a comprehensive foreign income tax (as
defined in section 457A(d)(2)).
``(C) Investment management services.--The term `investment
management services' means a substantial quantity of any of
the services described in subsection (c)(1).
``(f) Regulations.--The Secretary shall prescribe such
regulations or other guidance as is necessary or appropriate
to carry out the purposes of this section, including
regulations or other guidance to--
``(1) provide modifications to the application of this
section (including treating related persons as not related to
one another) to the extent such modification is consistent
with the purposes of this section,
``(2) prevent the avoidance of the purposes of this
section, and
``(3) coordinate this section with the other provisions of
this title.
``(g) Special Rules for Individuals.--In the case of an
individual--
``(1) In general.--Subsection (a)(1) shall apply only to
the applicable percentage of the net income or net loss
referred to in such subsection.
``(2) Dispositions, etc.--The amount which (but for this
paragraph) would be treated as ordinary income by reason of
subsection (b) or (e) shall be the applicable percentage of
such amount.
``(3) Pro rata allocation to items.--For purposes of
applying subsections (a) and (e) the aggregate amount treated
as ordinary income for any such taxable year shall be
allocated ratably among the items of income, gain, loss, and
deduction taken into account in determining such amount.
``(4) Special rule for recognition of gain.--Gain which
(but for this section) would not be recognized shall be
recognized by reason of subsection (b) only to the extent
that such gain is treated as ordinary income after
application of paragraph (2).
``(5) Coordination with limitation on losses.--For purposes
of applying paragraph (2) of subsection (a) with respect to
any net loss for any taxable year--
``(A) such paragraph shall only apply with respect to the
applicable percentage of such net loss for such taxable year,
``(B) in the case of a prior partnership taxable year
referred to in clause (i) or (ii) of subparagraph (A) of such
paragraph, only the applicable percentage (as in effect for
such prior taxable year) of net income or net loss for such
prior partnership taxable year shall be taken into account,
and
``(C) any net loss carried forward to the succeeding
partnership taxable year under subparagraph (B) of such
paragraph shall--
``(i) be taken into account in such succeeding year without
reduction under this subsection, and
``(ii) in lieu of being taken into account as an item of
loss in such succeeding year, shall be taken into account--
``(I) as an increase in net loss or as a reduction in net
income (including below zero), as the case may be, and
``(II) after any reduction in the amount of such net loss
or net income under this subsection.
A rule similar to the rule of the preceding sentence shall
apply for purposes of subsection (b)(2)(A).
``(6) Coordination with treatment of dividends.--Subsection
(a)(4) shall only apply to the applicable percentage of
dividends described therein.
``(7) Applicable percentage.--For purposes of this
subsection, the term `applicable percentage' means 75 percent
(50 percent in the case of any taxable year beginning before
January 1, 2013).
``(h) Cross Reference.--For 40 percent penalty on certain
underpayments due to the avoidance of this section, see
section 6662.''.
(b) Treatment for Purposes of Section 7704.--Subsection (d)
of section 7704 is amended
[[Page H4156]]
by adding at the end the following new paragraph:
``(6) Income from investment services partnership interests
not qualified.--
``(A) In general.--Items of income and gain shall not be
treated as qualifying income if such items are treated as
ordinary income by reason of the application of section 710
(relating to special rules for partners providing investment
management services to partnership). The preceding sentence
shall not apply to any item described in paragraph (1)(E) (or
so much of paragraph (1)(F) as relates to paragraph (1)(E)).
``(B) Special rules for certain partnerships.--
``(i) Certain partnerships owned by real estate investment
trusts.--Subparagraph (A) shall not apply in the case of a
partnership which meets each of the following requirements:
``(I) Such partnership is treated as publicly traded under
this section solely by reason of interests in such
partnership being convertible into interests in a real estate
investment trust which is publicly traded.
``(II) 50 percent or more of the capital and profits
interests of such partnership are owned, directly or
indirectly, at all times during the taxable year by such real
estate investment trust (determined with the application of
section 267(c)).
``(III) Such partnership meets the requirements of
paragraphs (2), (3), and (4) of section 856(c).
``(ii) Certain partnerships owning other publicly traded
partnerships.--Subparagraph (A) shall not apply in the case
of a partnership which meets each of the following
requirements:
``(I) Substantially all of the assets of such partnership
consist of interests in one or more publicly traded
partnerships (determined without regard to subsection
(b)(2)).
``(II) Substantially all of the income of such partnership
is ordinary income or section 1231 gain (as defined in
section 1231(a)(3)).
``(C) Transitional rule.--Subparagraph (A) shall not apply
to any taxable year of the partnership beginning before the
date which is 10 years after the date of the enactment of
this paragraph.''.
(c) Imposition of Penalty on Underpayments.--
(1) In general.--Subsection (b) of section 6662 is amended
by inserting after paragraph (7) the following new paragraph:
``(8) The application of subsection (e) of section 710 or
the regulations prescribed under section 710(f) to prevent
the avoidance of the purposes of section 710.''.
(2) Amount of penalty.--
(A) In general.--Section 6662 is amended by adding at the
end the following new subsection:
``(k) Increase in Penalty in Case of Property Transferred
for Investment Management Services.--In the case of any
portion of an underpayment to which this section applies by
reason of subsection (b)(8), subsection (a) shall be applied
with respect to such portion by substituting `40 percent' for
`20 percent'.''.
(B) Conforming amendment.--Subparagraph (B) of section
6662A(e)(2) is amended by striking ``or (i)'' and inserting
``, (i), or (k)''.
(3) Special rules for application of reasonable cause
exception.--Subsection (c) of section 6664 is amended--
(A) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively;
(B) by striking ``paragraph (3)'' in paragraph (5)(A), as
so redesignated, and inserting ``paragraph (4)''; and
(C) by inserting after paragraph (2) the following new
paragraph:
``(3) Special rule for underpayments attributable to
investment management services.--
``(A) In general.--Paragraph (1) shall not apply to any
portion of an underpayment to which this section applies by
reason of subsection (b)(8) unless--
``(i) the relevant facts affecting the tax treatment of the
item are adequately disclosed,
``(ii) there is or was substantial authority for such
treatment, and
``(iii) the taxpayer reasonably believed that such
treatment was more likely than not the proper treatment.
``(B) Rules relating to reasonable belief.--Rules similar
to the rules of subsection (d)(3) shall apply for purposes of
subparagraph (A)(iii).''.
(d) Income and Loss From Investment Services Partnership
Interests Taken Into Account in Determining Net Earnings From
Self-Employment.--
(1) Internal revenue code.--Section 1402(a) is amended by
striking ``and'' at the end of paragraph (16), by striking
the period at the end of paragraph (17) and inserting ``;
and'', and by inserting after paragraph (17) the following
new paragraph:
``(18) notwithstanding the preceding provisions of this
subsection, in the case of any individual engaged in the
trade or business of providing services described in section
710(c)(1) with respect to any entity, any amount treated as
ordinary income or ordinary loss of such individual under
section 710 with respect to such entity shall be taken into
account in determining the net earnings from self-employment
of such individual.''.
(2) Social security act.--Section 211(a) of the Social
Security Act is amended by striking ``and'' at the end of
paragraph (15), by striking the period at the end of
paragraph (16) and inserting ``; and'', and by inserting
after paragraph (16) the following new paragraph:
``(17) Notwithstanding the preceding provisions of this
subsection, in the case of any individual engaged in the
trade or business of providing services described in section
710(c)(1) of the Internal Revenue Code of 1986 with respect
to any entity, any amount treated as ordinary income or
ordinary loss of such individual under section 710 of such
Code with respect to such entity shall be taken into account
in determining the net earnings from self-employment of such
individual.''.
(e) Conforming Amendments.--
(1) Subsection (d) of section 731 is amended by inserting
``section 710(b)(4) (relating to distributions of partnership
property),'' after ``to the extent otherwise provided by''.
(2) Section 741 is amended by inserting ``or section 710
(relating to special rules for partners providing investment
management services to partnership)'' before the period at
the end.
(3) The table of sections for part I of subchapter K of
chapter 1 is amended by adding at the end the following new
item:
``Sec. 710. Special rules for partners providing investment management
services to partnership.''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to taxable years ending after December 31, 2010.
(2) Partnership taxable years which include effective
date.--In applying section 710(a) of the Internal Revenue
Code of 1986 (as added by this section) in the case of any
partnership taxable year which includes December 31, 2010,
the amount of the net income referred to in such section
shall be treated as being the lesser of the net income for
the entire partnership taxable year or the net income
determined by only taking into account items attributable to
the portion of the partnership taxable year which is after
such date.
(3) Dispositions of partnership interests.--Section 710(b)
of the Internal Revenue Code of 1986 (as added by this
section) shall apply to dispositions and distributions after
December 31, 2010.
(4) Other income and gain in connection with investment
management services.--Section 710(e) of such Code (as added
by this section) shall take effect on December 31, 2010.
SEC. 413. EMPLOYMENT TAX TREATMENT OF PROFESSIONAL SERVICE
BUSINESSES.
(a) In General.--Section 1402 is amended by adding at the
end the following new subsection:
``(m) Special Rules for Professional Service Businesses.--
``(1) Shareholders providing services to disqualified s
corporations.--
``(A) In general.--In the case of any disqualified S
corporation, each shareholder of such disqualified S
corporation who provides substantial services with respect to
the professional service business referred to in subparagraph
(C) shall take into account such shareholder's pro rata share
of all items of income or loss described in section 1366
which are attributable to such business in determining the
shareholder's net earnings from self-employment.
``(B) Treatment of family members.--Except as otherwise
provided by the Secretary, the shareholder's pro rata share
of items referred to in subparagraph (A) shall be increased
by the pro rata share of such items of each member of such
shareholder's family (within the meaning of section
318(a)(1)) who does not provide substantial services with
respect to such professional service business.
``(C) Disqualified s corporation.--For purposes of this
subsection, the term `disqualified S corporation' means--
``(i) any S corporation which is a partner in a partnership
which is engaged in a professional service business if
substantially all of the activities of such S corporation are
performed in connection with such partnership, and
``(ii) any other S corporation which is engaged in a
professional service business if the principal asset of such
business is the reputation and skill of 3 or fewer employees.
``(2) Partners.--In the case of any partnership which is
engaged in a professional service business, subsection
(a)(13) shall not apply to any partner who provides
substantial services with respect to such professional
service business.
``(3) Professional service business.--For purposes of this
subsection, the term `professional service business' means
any trade or business if substantially all of the activities
of such trade or business involve providing services in the
fields of health, law, lobbying, engineering, architecture,
accounting, actuarial science, performing arts, consulting,
athletics, investment advice or management, or brokerage
services.
``(4) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this subsection, including regulations which
prevent the avoidance of the purposes of this subsection
through tiered entities or otherwise.
``(5) Cross reference.--For employment tax treatment of
wages paid to shareholders of S corporations, see subtitle
C.''.
(b) Conforming Amendment.--Section 211 of the Social
Security Act is amended by adding at the end the following
new subsection:
``(l) Special Rules for Professional Service Businesses.--
``(1) Shareholders providing services to disqualified s
corporations.--
``(A) In general.--In the case of any disqualified S
corporation, each shareholder of such disqualified S
corporation who provides substantial services with respect to
the professional service business referred to in subparagraph
(C) shall take into account such shareholder's pro rata share
of all items of income or loss described in section 1366 of
the Internal Revenue Code of 1986 which are attributable to
such business in determining the shareholder's net earnings
from self-employment.
``(B) Treatment of family members.--Except as otherwise
provided by the Secretary of the Treasury, the shareholder's
pro rata share of items referred to in subparagraph (A) shall
be
[[Page H4157]]
increased by the pro rata share of such items of each member
of such shareholder's family (within the meaning of section
318(a)(1) of the Internal Revenue Code of 1986) who does not
provide substantial services with respect to such
professional service business.
``(C) Disqualified s corporation.--For purposes of this
subsection, the term `disqualified S corporation' means--
``(i) any S corporation which is a partner in a partnership
which is engaged in a professional service business if
substantially all of the activities of such S corporation are
performed in connection with such partnership, and
``(ii) any other S corporation which is engaged in a
professional service business if the principal asset of such
business is the reputation and skill of 3 or fewer employees.
``(2) Partners.--In the case of any partnership which is
engaged in a professional service business, subsection
(a)(12) shall not apply to any partner who provides
substantial services with respect to such professional
service business.
``(3) Professional service business.--For purposes of this
subsection, the term `professional service business' means
any trade or business if substantially all of the activities
of such trade or business involve providing services in the
fields of health, law, lobbying, engineering, architecture,
accounting, actuarial science, performing arts, consulting,
athletics, investment advice or management, or brokerage
services.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2010.
Subtitle C--Corporate Provisions
SEC. 421. TREATMENT OF SECURITIES OF A CONTROLLED CORPORATION
EXCHANGED FOR ASSETS IN CERTAIN
REORGANIZATIONS.
(a) In General.--Section 361 (relating to nonrecognition of
gain or loss to corporations; treatment of distributions) is
amended by adding at the end the following new subsection:
``(d) Special Rules for Transactions Involving Section 355
Distributions.--In the case of a reorganization described in
section 368(a)(1)(D) with respect to which stock or
securities of the corporation to which the assets are
transferred are distributed in a transaction which qualifies
under section 355--
``(1) this section shall be applied by substituting `stock
other than nonqualified preferred stock (as defined in
section 351(g)(2))' for `stock or securities' in subsections
(a) and (b)(1), and
``(2) the first sentence of subsection (b)(3) shall apply
only to the extent that the sum of the money and the fair
market value of the other property transferred to such
creditors does not exceed the adjusted bases of such assets
transferred (reduced by the amount of the liabilities assumed
(within the meaning of section 357(c))).''.
(b) Conforming Amendment.--Paragraph (3) of section 361(b)
is amended by striking the last sentence.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to exchanges
after the date of the enactment of this Act.
(2) Transition rule.--The amendments made by this section
shall not apply to any exchange pursuant to a transaction
which is--
(A) made pursuant to a written agreement which was binding
on March 15, 2010, and at all times thereafter;
(B) described in a ruling request submitted to the Internal
Revenue Service on or before such date; or
(C) described on or before such date in a public
announcement or in a filing with the Securities and Exchange
Commission.
SEC. 422. TAXATION OF BOOT RECEIVED IN REORGANIZATIONS.
(a) In General.--Paragraph (2) of section 356(a) is
amended--
(1) by striking ``If an exchange'' and inserting ``Except
as otherwise provided by the Secretary--
``(A) In general.--If an exchange'';
(2) by striking ``then there shall be'' and all that
follows through ``February 28, 1913'' and inserting ``then
the amount of other property or money shall be treated as a
dividend to the extent of the earnings and profits of the
corporation''; and
(3) by adding at the end the following new subparagraph:
``(B) Certain reorganizations.--In the case of a
reorganization described in section 368(a)(1)(D) to which
section 354(b)(1) applies or any other reorganization
specified by the Secretary, in applying subparagraph (A)--
``(i) the earnings and profits of each corporation which is
a party to the reorganization shall be taken into account,
and
``(ii) the amount which is a dividend (and source thereof)
shall be determined under rules similar to the rules of
paragraphs (2) and (5) of section 304(b).''.
(b) Earnings and Profits.--Paragraph (7) of section 312(n)
is amended by adding at the end the following: ``A similar
rule shall apply to an exchange to which section 356(a)(1)
applies.''.
(c) Conforming Amendment.--Paragraph (1) of section 356(a)
is amended by striking ``then the gain'' and inserting ``then
(except as provided in paragraph (2)) the gain''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to exchanges
after the date of the enactment of this Act.
(2) Transition rule.--The amendments made by this section
shall not apply to any exchange between unrelated persons
pursuant to a transaction which is--
(A) made pursuant to a written agreement which was binding
on May 20, 2010, and at all times thereafter;
(B) described in a ruling request submitted to the Internal
Revenue Service on or before such date; or
(C) described in a public announcement or filing with the
Securities and Exchange Commission on or before such date.
(3) Related persons.--For purposes of this subsection, a
person shall be treated as related to another person if the
relationship between such persons is described in section 267
or 707(b) of the Internal Revenue Code of 1986.
Subtitle D--Other Provisions
SEC. 431. MODIFICATIONS WITH RESPECT TO OIL SPILL LIABILITY
TRUST FUND.
(a) Extension of Application of Oil Spill Liability Trust
Fund Financing Rate.--Paragraph (2) of section 4611(f) is
amended by striking ``December 31, 2017'' and inserting
``December 31, 2020''.
(b) Increase in Oil Spill Liability Trust Fund Financing
Rate.--Subparagraph (B) of section 4611(c)(2) is amended to
read as follows:
``(B) the Oil Spill Liability Trust Fund financing rate is
34 cents a barrel.''.
(c) Increase in Per Incident Limitations on Expenditures.--
Subparagraph (A) of section 9509(c)(2) is amended--
(1) by striking ``$1,000,000,000'' in clause (i) and
inserting ``$5,000,000,000'';
(2) by striking ``$500,000,000'' in clause (ii) and
inserting ``$2,500,000,000''; and
(3) by striking ``$1,000,000,000 per incident, etc'' in the
heading and inserting ``Per incident limitations''.
(d) Effective Date.--
(1) Extension of financing rate.--Except as provided in
paragraph (2), the amendments made by this section shall take
effect on the date of the enactment of this Act.
(2) Increase in financing rate.--The amendment made by
subsection (b) shall apply to crude oil received and
petroleum products entered during calendar quarters beginning
more than 60 days after the date of the enactment of this
Act.
SEC. 432. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
The percentage under paragraph (2) of section 561 of the
Hiring Incentives to Restore Employment Act in effect on the
date of the enactment of this Act is increased by 36
percentage points.
TITLE V--UNEMPLOYMENT, HEALTH, AND OTHER ASSISTANCE
Subtitle A--Unemployment Insurance and Other Assistance
SEC. 501. 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 ``June 2, 2010'' each place it appears and
inserting ``November 30, 2010'';
(B) in the heading for subsection (b)(2), by striking
``june 2, 2010'' and inserting ``november 30, 2010''; and
(C) in subsection (b)(3), by striking ``November 6, 2010''
and inserting ``April 30, 2011''.
(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 ``June 2, 2010'' and
inserting ``November 30, 2010'';
(B) in the heading for paragraph (2), by striking ``june 2,
2010'' and inserting ``november 30, 2010''; and
(C) in paragraph (3), by striking ``December 7, 2010'' and
inserting ``May 31, 2011''.
(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 ``June 2, 2010'' each place it appears and
inserting ``December 1, 2011''; and
(B) in subsection (c), by striking ``November 6, 2010'' and
inserting ``May 1, 2011''.
(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 ``November 6, 2010'' and inserting
``April 30, 2011''.
(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 (D), by striking ``and'' at the end;
and
(2) by inserting after subparagraph (E) the following:
``(F) the amendments made by section 501(a)(1) of the
American Jobs and Closing Tax Loopholes Act of 2010; and''.
(c) Conditions for Receiving Emergency Unemployment
Compensation.--Section 4001(d)(2) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended, in the matter preceding subparagraph (A),
by inserting before ``shall apply'' the following:
``(including terms and conditions relating to availability
for work, active search for work, and refusal to accept
work)''.
(d) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
Continuing Extension Act of 2010 (Public Law 111-157).
SEC. 502. COORDINATION OF EMERGENCY UNEMPLOYMENT COMPENSATION
WITH REGULAR COMPENSATION.
(a) Certain Individuals Not Ineligible by Reason of New
Entitlement to Regular Benefits.--Section 4002 of the
Supplemental Appropriations Act, 2008 (Public Law 110-252; 26
U.S.C. 3304 note) is amended by adding at the end the
following:
``(g) Coordination of Emergency Unemployment Compensation
With Regular Compensation.--
``(1) If--
``(A) an individual has been determined to be entitled to
emergency unemployment compensation with respect to a benefit
year,
[[Page H4158]]
``(B) that benefit year has expired,
``(C) that individual has remaining entitlement to
emergency unemployment compensation with respect to that
benefit year, and
``(D) that individual would qualify for a new benefit year
in which the weekly benefit amount of regular compensation is
at least either $100 or 25 percent less than the individual's
weekly benefit amount in the benefit year referred to in
subparagraph (A),
then the State shall determine eligibility for compensation
as provided in paragraph (2).
``(2) For individuals described in paragraph (1), the State
shall determine whether the individual is to be paid
emergency unemployment compensation or regular compensation
for a week of unemployment using one of the following
methods:
``(A) The State shall, if permitted by State law, establish
a new benefit year, but defer the payment of regular
compensation with respect to that new benefit year until
exhaustion of all emergency unemployment compensation payable
with respect to the benefit year referred to in paragraph
(1)(A);
``(B) The State shall, if permitted by State law, defer the
establishment of a new benefit year (which uses all the wages
and employment which would have been used to establish a
benefit year but for the application of this paragraph),
until exhaustion of all emergency unemployment compensation
payable with respect to the benefit year referred to in
paragraph(1)(A);
``(C) The State shall pay, if permitted by State law--
``(i) regular compensation equal to the weekly benefit
amount established under the new benefit year, and
``(ii) emergency unemployment compensation equal to the
difference between that weekly benefit amount and the weekly
benefit amount for the expired benefit year; or
``(D) The State shall determine rights to emergency
unemployment compensation without regard to any rights to
regular compensation if the individual elects to not file a
claim for regular compensation under the new benefit year.''.
(b) Effective Date.--The amendment made by this section
shall apply to individuals whose benefit years, as described
in section 4002(g)(1)(B) the Supplemental Appropriations Act,
2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by
this section, expire after the date of enactment of this Act.
SEC. 503. EXTENSION OF THE EMERGENCY CONTINGENCY FUND.
(a) In General.--Section 403(c) of the Social Security Act
(42 U.S.C. 603(c)) is amended--
(1) in paragraph (2)(A), by inserting ``, and for fiscal
year 2011, $2,500,000,000'' before ``for payment'';
(2) by striking paragraph (2)(B) and inserting the
following:
``(B) Availability and use of funds.--
``(i) Fiscal years 2009 and 2010.--The amounts appropriated
to the Emergency Fund under subparagraph (A) for fiscal year
2009 shall remain available through fiscal year 2010 and
shall be used to make grants to States in each of fiscal
years 2009 and 2010 in accordance with paragraph (3), except
that the amounts shall remain available through fiscal year
2011 to make grants and payments to States in accordance with
paragraph (3)(C) to cover expenditures to subsidize
employment positions held by individuals placed in the
positions before fiscal year 2011.
``(ii) Fiscal year 2011.--Subject to clause (iii), the
amounts appropriated to the Emergency Fund under subparagraph
(A) for fiscal year 2011 shall remain available through
fiscal year 2012 and shall be used to make grants to States
based on expenditures in fiscal year 2011 for benefits and
services provided in fiscal year 2011 in accordance with the
requirements of paragraph (3).
``(iii) Reservation of funds.--Of the amounts appropriated
to the Emergency Fund under subparagraph (A) for fiscal year
2011, $500,000 shall be placed in reserve for use in fiscal
year 2012, and shall be used to award grants for any
expenditures described in this subsection incurred by States
after September 30, 2011.'';
(3) in paragraph (2)(C), by striking ``2010'' and inserting
``2012'';
(4) in paragraph (3)--
(A) in clause (i) of each of subparagraphs (A), (B), and
(C)--
(i) by striking ``year 2009 or 2010'' and inserting ``years
2009 through 2011'';
(ii) by striking ``and'' at the end of subclause (I);
(iii) by striking the period at the end of subclause (II)
and inserting ``; and''; and
(iv) by adding at the end the following:
``(III) if the quarter is in fiscal year 2011, has provided
the Secretary with such information as the Secretary may find
necessary in order to make the determinations, or take any
other action, described in paragraph (5)(C).''; and
(B) in subparagraph (C), by adding at the end the
following:
``(iv) Limitation on expenditures for subsidized
employment.--An expenditure for subsidized employment shall
be taken into account under clause (ii) only if the
expenditure is used to subsidize employment for--
``(I) a member of a needy family (without regard to whether
the family is receiving assistance under the State program
funded under this part); or
``(II) an individual who has exhausted (or, within 60 days,
will exhaust) all rights to receive unemployment compensation
under Federal and State law, and who is a member of a needy
family.'';
(5) by striking paragraph (5) and inserting the following:
``(5) Limitations on payments; adjustment authority.--
``(A) Fiscal years 2009 and 2010.--The total amount payable
to a single State under subsection (b) and this subsection
for fiscal years 2009 and 2010 combined shall not exceed 50
percent of the annual State family assistance grant.
``(B) Fiscal year 2011.--Subject to subparagraph (C), the
total amount payable to a single State under subsection (b)
and this subsection for fiscal year 2011 shall not exceed 30
percent of the annual State family assistance grant.
``(C) Adjustment authority.--If the Secretary determines
that the Emergency Fund is at risk of being depleted before
September 30, 2011, or that funds are available to
accommodate additional State requests under this subsection,
the Secretary may, through program instructions issued
without regard to the requirements of section 553 of title 5,
United States Code--
``(i) specify priority criteria for awarding grants to
States during fiscal year 2011; and
``(ii) adjust the percentage limitation applicable under
subparagraph (B) with respect to the total amount payable to
a single State for fiscal year 2011.''; and
(6) in paragraph (6), by inserting ``or for expenditures
described in paragraph (3)(C)(iv)'' before the period.
(b) Conforming Amendments.--Section 2101 of division B of
the American Recovery and Reinvestment Act of 2009 (Public
Law 111-5) is amended--
(1) in subsection (a)(2)--
(A) by striking ``2010'' and inserting ``2011''; and
(B) by striking all that follows ``repealed'' and inserting
a period; and
(2) in subsection (d)(1), by striking ``2010'' and
inserting ``2011''.
(c) Program Guidance.--The Secretary of Health and Human
Services shall issue program guidance, without regard to the
requirements of section 553 of title 5, United States Code,
which ensures that the funds provided under the amendments
made by this section to a jurisdiction for subsidized
employment do not support any subsidized employment position
the annual salary of which is greater than, at State option--
(1) 200 percent of the poverty line (within the meaning of
section 673(2) of the Omnibus Budget Reconciliation Act of
1981, including any revision required by such section 673(2))
for a family of 4; or
(2) the median wage in the jurisdiction.
Subtitle B--Health Provisions
SEC. 511. EXTENSION OF SECTION 508 RECLASSIFICATIONS.
(a) In General.--Section 106(a) of division B of the Tax
Relief and Health Care Act of 2006 (42 U.S.C. 1395 note), as
amended by section 117 of the Medicare, Medicaid, and SCHIP
Extension Act of 2007 (Public Law 110-173), section 124 of
the Medicare Improvements for Patients and Providers Act of
2008 (Public Law 110-275), and sections 3137(a) and 10317 of
Public Law 111-148, is amended by striking ``September 30,
2010'' and inserting ``September 30, 2011''.
(b) Application.--For fiscal year 2011, the Secretary of
Health and Human Services may implement the amendment made by
subsection (a) by posting on the Internet website of the
Centers for Medicare & Medicaid Services a list of the areas
and the hospitals whose reclassifications will be extended
pursuant to such amendment. Hospitals located in or
reclassified to labor market areas that are affected by such
extension may terminate or withdraw their reclassifications
by following the procedures included in section 412.273 of
title 42, Code of Federal Regulations, except that any
request for such termination or withdrawal must be received
by the Medicare Geographic Classification Review Board not
later than the date that is 5 business days after the day of
such posting on the Internet website of the Centers for
Medicare & Medicaid Services or June 18, 2010, whichever date
is later.
(c) Conforming Amendment.--Section 117(a)(3) of the
Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public
Law 110-173)), is amended by inserting ``in fiscal years 2008
and 2009'' after ``For purposes of implementation of this
subsection''.
SEC. 512. REPEAL OF DELAY OF RUG-IV.
Effective as if included in the enactment of Public Law
111-148, section 10325 of such Act is repealed.
SEC. 513. LIMITATION ON REASONABLE COSTS PAYMENTS FOR CERTAIN
CLINICAL DIAGNOSTIC LABORATORY TESTS FURNISHED
TO HOSPITAL PATIENTS IN CERTAIN RURAL AREAS.
Section 3122 of Public Law 111-148 is repealed and the
provision of law amended by such section is restored as if
such section had not been enacted.
SEC. 514. FUNDING FOR CLAIMS REPROCESSING.
For purposes of carrying out the provisions of, and
amendments made by, this Act that relate to title XVIII of
the Social Security Act, and other provisions of such title
that involve reprocessing of claims, there are appropriated
to the Secretary of Health and Human Services for the Centers
for Medicare & Medicaid Services Program Management Account,
from amounts in the general fund of the Treasury not
otherwise appropriated, $175,000,000. Amounts appropriated
under the preceding sentence shall remain available until
expended.
SEC. 515. MEDICAID AND CHIP TECHNICAL CORRECTIONS.
(a) Repeal of Exclusion of Certain Individuals and Entities
From Medicaid.--Section 6502 of Public Law 111-148 is
repealed and the provisions of law amended by such section
are restored as if such section had never been enacted.
Nothing in the previous sentence shall affect the execution
or placement of the insertion made by section 6503 of such
Act.
(b) Income Level for Certain Children Under Medicaid.--
Effective as if included in
[[Page H4159]]
the enactment of Public Law 111-148, section 2001(a)(5)(B) of
such Act is amended by striking all that follows ``is
amended'' and inserting the following: ``by inserting after
`100 percent' the following: `(or, beginning January 1, 2014,
133 percent)'.''.
(c) Calculation and Publication of Payment Error Rate
Measurement for Certain Years.--Section 601(b) of the
Children's Health Insurance Program Reauthorization Act of
2009 (Public Law 111-3) is amended by adding at the end the
following: ``The Secretary is not required under this
subsection to calculate or publish a national or a State-
specific error rate for fiscal year 2009 or fiscal year
2010.''.
(d) Corrections to Exceptions to Exclusion of Children of
Certain Employees.--Section 2110(b)(6) of the Social Security
Act (42 U.S.C. 1397jj(b)(6)) is amended--
(1) in subparagraph (B)--
(A) by striking ``per person'' in the heading; and
(B) by striking ``each employee'' and inserting
``employees''; and
(2) in subparagraph (C), by striking ``, on a case-by-case
basis,''.
(e) Electronic Health Records.--Effective as if included in
the enactment of section 4201(a)(2) of the American Recovery
and Reinvestment Act of 2009 (Public Law 111-5), section
1903(t) of the Social Security Act (42 U.S.C. 1396b(t)) is
amended--
(1) in paragraph (3)(E), by striking ``reduced by any
payment that is made to such Medicaid provider from any other
source (other than under this subsection or by a State or
local government)'' and inserting ``reduced by the average
payment the Secretary estimates will be made to such Medicaid
providers (determined on a percentage or other basis for such
classes or types of providers as the Secretary may specify)
from other sources (other than under this subsection, or by
the Federal government or a State or local government)''; and
(2) in paragraph (6)(B), by inserting before the period the
following: ``and shall be determined to have met such
responsibility to the extent that the payment to the Medicaid
provider is not in excess of 85 percent of the net average
allowable cost''.
(f) Corrections of Designations.--
(1) Section 1902 of the Social Security Act (42 U.S.C.
1396a) is amended--
(A) in subsection (a)(10), in the matter following
subparagraph (G), by striking ``and'' before ``(XVI) the
medical'' and by striking ``(XVI) if'' and inserting ``(XVII)
if''; and
(B) in subsection (ii)(2), by striking ``(XV)'' and
inserting ``(XVI)''.
(2) Section 2107(e)(1) of the Social Security Act (42
U.S.C. 1397gg(e)(1)) is amended by redesignating the
subparagraph (N) of that section added by 2101(e) of Public
Law 111-148 as subparagraph (O).
SEC. 516. ADDITION OF INPATIENT DRUG DISCOUNT PROGRAM TO 340B
DRUG DISCOUNT PROGRAM.
(a) Addition of Inpatient Drug Discount.--Title III of the
Public Health Service Act is amended by inserting after
section 340B (42 U.S.C. 256b) the following:
``SEC. 340B-1. DISCOUNT INPATIENT DRUGS FOR INDIVIDUALS
WITHOUT PRESCRIPTION DRUG COVERAGE.
``(a) Requirements for Agreements With the Secretary.--
``(1) In general.--
``(A) Agreement.--The Secretary shall enter into an
agreement with each manufacturer of covered inpatient drugs
under which the amount required to be paid (taking into
account any rebate or discount, as provided by the Secretary)
to the manufacturer for covered inpatient drugs (other than
drugs described in paragraph (3)) purchased by a covered
entity on or after January 1, 2011, does not exceed an amount
equal to the average manufacturer price for the drug under
title XIX of the Social Security Act in the preceding
calendar quarter, reduced by the rebate percentage described
in paragraph (2). For a covered inpatient drug that also is a
covered outpatient drug under section 340B, the amount
required to be paid under the preceding sentence shall be
equal to the amount required to be paid under section
340B(a)(1) for such drug. The agreement with a manufacturer
under this subparagraph may, at the discretion of the
Secretary, be included in the agreement with the same
manufacturer under section 340B.
``(B) Ceiling price.--Each such agreement shall require
that the manufacturer furnish the Secretary with reports, on
a quarterly basis, of the price for each covered inpatient
drug subject to the agreement that, according to the
manufacturer, represents the maximum price that covered
entities may permissibly be required to pay for the drug
(referred to in this section as the `ceiling price'), and
shall require that the manufacturer offer each covered entity
covered inpatient drugs for purchase at or below the
applicable ceiling price if such drug is made available to
any other purchaser at any price.
``(C) Allocation method.--Each such agreement shall require
that, if the supply of a covered inpatient drug is
insufficient to meet demand, then the manufacturer may use an
allocation method that is reported in writing to, and
approved by, the Secretary and does not discriminate on the
basis of the price paid by covered entities or on any other
basis related to the participation of an entity in the
program under this section.
``(2) Rebate percentage defined.--
``(A) In general.--For a covered inpatient drug purchased
in a calendar quarter, the `rebate percentage' is the amount
(expressed as a percentage) equal to--
``(i) the average total rebate required under section
1927(c) of the Social Security Act (or the average total
rebate that would be required if the drug were a covered
outpatient drug under such section) with respect to the drug
(for a unit of the dosage form and strength involved) during
the preceding calendar quarter; divided by
``(ii) the average manufacturer price for such a unit of
the drug during such quarter.
``(B) Over the counter drugs.--
``(i) In general.--For purposes of subparagraph (A), in the
case of over the counter drugs, the `rebate percentage' shall
be determined as if the rebate required under section 1927(c)
of the Social Security Act is based on the applicable
percentage provided under section 1927(c)(3) of such Act.
``(ii) Definition.--The term `over the counter drug' means
a drug that may be sold without a prescription and which is
prescribed by a physician (or other persons authorized to
prescribe such drug under State law).
``(3) Drugs provided under state medicaid plans.--Drugs
described in this paragraph are drugs purchased by the entity
for which payment is made by the State under the State plan
for medical assistance under title XIX of the Social Security
Act.
``(4) Requirements for covered entities.--
``(A) Prohibiting duplicate discounts or rebates.--
``(i) In general.--A covered entity shall not request
payment under title XIX of the Social Security Act for
medical assistance described in section 1905(a)(12) of such
Act with respect to a drug that is subject to an agreement
under this section if the drug is subject to the payment of a
rebate to the State under section 1927 of such Act.
``(ii) Establishment of mechanism.--The Secretary shall
establish a mechanism to ensure that covered entities comply
with clause (i). If the Secretary does not establish a
mechanism under the previous sentence within 12 months of the
enactment of this section, the requirements of section
1927(a)(5)(C) of the Social Security Act shall apply.
``(iii) Prohibiting disclosure to group purchasing
organizations.--In the event that a covered entity is a
member of a group purchasing organization, such entity shall
not disclose the price or any other information pertaining to
any purchases under this section directly or indirectly to
such group purchasing organization.
``(B) Prohibiting resale, dispensing, or administration of
drugs except to certain patients.--With respect to any
covered inpatient drug that is subject to an agreement under
this subsection, a covered entity shall not dispense,
administer, resell, or otherwise transfer the covered
inpatient drug to a person unless--
``(i) such person is a patient of the entity; and
``(ii) such person does not have health plan coverage (as
defined in subsection (c)(3)) that provides prescription drug
coverage in the inpatient setting with respect to such
covered inpatient drug.
For purposes of clause (ii), a person shall be treated as
having health plan coverage (as defined in subsection (c)(3))
with respect to a covered inpatient drug if benefits are not
payable under such coverage with respect to such drug for
reasons such as the application of a deductible or cost
sharing or the use of utilization management.
``(C) Auditing.--A covered entity shall permit the
Secretary and the manufacturer of a covered inpatient drug
that is subject to an agreement under this subsection with
the entity (acting in accordance with procedures established
by the Secretary relating to the number, duration, and scope
of audits) to audit at the Secretary's or the manufacturer's
expense the records of the entity that directly pertain to
the entity's compliance with the requirements described in
subparagraph (A) or (B) with respect to drugs of the
manufacturer. The use or disclosure of information for
performance of such an audit shall be treated as a use or
disclosure required by law for purposes of section 164.512(a)
of title 45, Code of Federal Regulations.
``(D) Additional sanction for noncompliance.--If the
Secretary finds, after notice and hearing, that a covered
entity is in violation of a requirement described in
subparagraph (A) or (B), the covered entity shall be liable
to the manufacturer of the covered inpatient drug that is the
subject of the violation in an amount equal to the reduction
in the price of the drug (as described in subparagraph (A))
provided under the agreement between the Secretary and the
manufacturer under this subsection.
``(E) Maintenance of records.--
``(i) In general.--A covered entity shall establish and
maintain an effective recordkeeping system to comply with
this section and shall certify to the Secretary that such
entity is in compliance with subparagraphs (A) and (B). The
Secretary shall require that hospitals that purchase covered
inpatient drugs for inpatient dispensing or administration
under this subsection appropriately segregate inventory of
such covered inpatient drugs, either physically or
electronically, from drugs for outpatient use, as well as
from drugs for inpatient dispensing or administration to
individuals who have (for purposes of subparagraph (B))
health plan coverage described in clause (ii) of such
subparagraph.
``(ii) Certification of no third-party payer.--A covered
entity shall maintain records that contain certification by
the covered entity that no third party payment was received
for any covered inpatient drug that is subject to an
agreement under this subsection and that was dispensed to an
inpatient.
``(5) Treatment of distinct units of hospitals.--In the
case of a covered entity that is a distinct part of a
hospital, the distinct part of the hospital shall not be
considered a covered entity under this subsection unless the
hospital is otherwise a covered entity under this subsection.
``(6) Notice to manufacturers.--The Secretary shall notify
manufacturers of covered inpatient drugs and single State
agencies under
[[Page H4160]]
section 1902(a)(5) of the Social Security Act of the
identities of covered entities under this subsection, and of
entities that no longer meet the requirements of paragraph
(4), by means of timely updates of the Internet website
supported by the Department of Health and Human Services
relating to this section.
``(7) No prohibition on larger discount.--Nothing in this
subsection shall prohibit a manufacturer from charging a
price for a drug that is lower than the maximum price that
may be charged under paragraph (1).
``(b) Covered Entity Defined.--In this section, the term
`covered entity' means an entity that meets the requirements
described in subsection (a)(4) and is one of the following:
``(1) A subsection (d) hospital (as defined in section
1886(d)(1)(B) of the Social Security Act) that--
``(A) is owned or operated by a unit of State or local
government, is a public or private non-profit corporation
which is formally granted governmental powers by a unit of
State or local government, or is a private nonprofit hospital
which has a contract with a State or local government to
provide health care services to low income individuals who
are not entitled to benefits under title XVIII of the Social
Security Act or eligible for assistance under the State plan
for medical assistance under title XIX of such Act; and
``(B) for the most recent cost reporting period that ended
before the calendar quarter involved, had a disproportionate
share adjustment percentage (as determined using the
methodology under section 1886(d)(5)(F) of the Social
Security Act as in effect on the date of enactment of this
section) greater than 20.20 percent or was described in
section 1886(d)(5)(F)(i)(II) of such Act (as so in effect on
the date of enactment of this section).
``(2) A children's hospital excluded from the Medicare
prospective payment system pursuant to section
1886(d)(1)(B)(iii) of the Social Security Act that would meet
the requirements of paragraph (1), including the
disproportionate share adjustment percentage requirement
under subparagraph (B) of such paragraph, if the hospital
were a subsection (d) hospital as defined by section
1886(d)(1)(B) of the Social Security Act.
``(3) A free-standing cancer hospital excluded from the
Medicare prospective payment system pursuant to section
1886(d)(1)(B)(v) of the Social Security Act that would meet
the requirements of paragraph (1), including the
disproportionate share adjustment percentage requirement
under subparagraph (B) of such paragraph, if the hospital
were a subsection (d) hospital as defined by section
1886(d)(1)(B) of the Social Security Act.
``(4) An entity that is a critical access hospital (as
determined under section 1820(c)(2) of the Social Security
Act), and that meets the requirements of paragraph (1)(A).
``(5) An entity that is a rural referral center, as defined
by section 1886(d)(5)(C)(i) of the Social Security Act, or a
sole community hospital, as defined by section
1886(d)(5)(C)(iii) of such Act, and that both meets the
requirements of paragraph (1)(A) and has a disproportionate
share adjustment percentage equal to or greater than 8
percent.
``(c) Other Definitions.--In this section:
``(1) Average manufacturer price.--
``(A) In general.--The term `average manufacturer price'--
``(i) has the meaning given such term in section 1927(k) of
the Social Security Act, except that such term shall be
applied under this section with respect to covered inpatient
drugs in the same manner (as applicable) as such term is
applied under such section 1927(k) with respect to covered
outpatient drugs (as defined in such section); and
``(ii) with respect to a covered inpatient drug for which
there is no average manufacturer price (as defined in clause
(i)), shall be the amount determined under regulations
promulgated by the Secretary under subparagraph (B).
``(B) Rulemaking.--The Secretary shall by regulation, in
consultation with the Administrator of the Centers for
Medicare & Medicaid Services, establish a method for
determining the average manufacturer price for covered
inpatient drugs for which there is no average manufacturer
price (as defined in subparagraph (A)(i)). Regulations
promulgated with respect to covered inpatient drugs under the
preceding sentence shall provide for the application of
methods for determining the average manufacturer price that
are the same as the methods used to determine such price in
calculating rebates required for such drugs under an
agreement between a manufacturer and a State that satisfies
the requirements of section 1927(b) of the Social Security
Act, as applicable.
``(2) Covered inpatient drug.--The term `covered inpatient
drug' means a drug--
``(A) that is described in section 1927(k)(2) of the Social
Security Act;
``(B) that, notwithstanding paragraph (3)(A) of section
1927(k) of such Act, is used in connection with an inpatient
service provided by a covered entity that is enrolled to
participate in the drug discount program under this section;
and
``(C) that is not purchased by the covered entity through
or under contract with a group purchasing organization.
``(3) Health plan coverage.--The term `health plan
coverage' means--
``(A) health insurance coverage (as defined in section
2791, and including coverage under a State health benefits
risk pool);
``(B) coverage under a group health plan (as defined in
such section, and including coverage under a church plan, a
governmental plan, or a collectively bargained plan);
``(C) coverage under a Federal health care program (as
defined by section 1128B(f) of the Social Security Act); or
``(D) such other health benefits coverage as the Secretary
recognizes for purposes of this section.
``(4) Manufacturer.--The term `manufacturer' has the
meaning given such term in section 1927(k) of the Social
Security Act.
``(d) Program Integrity.--
``(1) Manufacturer compliance.--
``(A) In general.--From amounts appropriated under
subsection (f), the Secretary shall provide for improvements
in compliance by manufacturers with the requirements of this
section in order to prevent overcharges and other violations
of the discounted pricing requirements specified in this
section.
``(B) Improvements.--The improvements described in
subparagraph (A) shall include the following:
``(i) The establishment of a process to enable the
Secretary to verify the accuracy of ceiling prices calculated
by manufacturers under subsection (a)(1) and charged to
covered entities, which shall include the following:
``(I) Developing and publishing through an appropriate
policy or regulatory issuance, precisely defined standards
and methodology for the calculation of ceiling prices under
such subsection.
``(II) Comparing regularly the ceiling prices calculated by
the Secretary with the quarterly pricing data that is
reported by manufacturers to the Secretary.
``(III) Conducting periodic monitoring of sales
transactions by covered entities.
``(IV) Inquiring into any discrepancies between ceiling
prices and manufacturer pricing data that may be identified
and taking, or requiring manufacturers to take, corrective
action in response to such discrepancies, including the
issuance of refunds pursuant to the procedures set forth in
clause (ii).
``(ii) The establishment of procedures for manufacturers to
issue refunds to covered entities in the event that there is
an overcharge by the manufacturers, including the following:
``(I) Providing the Secretary with an explanation of why
and how the overcharge occurred, how the refunds will be
calculated, and to whom the refunds will be issued.
``(II) Oversight by the Secretary to ensure that the
refunds are issued accurately and within a reasonable period
of time.
``(iii) The provision of access through the Internet
website supported by the Department of Health and Human
Services to the applicable ceiling prices for covered
inpatient drugs as calculated and verified by the Secretary
in accordance with this section, in a manner (such as through
the use of password protection) that limits such access to
covered entities and adequately assures security and
protection of privileged pricing data from unauthorized re-
disclosure.
``(iv) The development of a mechanism by which--
``(I) rebates, discounts, or other price concessions
provided by manufacturers to other purchasers subsequent to
the sale of covered inpatient drugs to covered entities are
reported to the Secretary; and
``(II) appropriate credits and refunds are issued to
covered entities if such discounts, rebates, or other price
concessions have the effect of lowering the applicable
ceiling price for the relevant quarter for the drugs
involved.
``(v) Selective auditing of manufacturers and wholesalers
to ensure the integrity of the drug discount program under
this section.
``(vi) The establishment of a requirement that
manufacturers and wholesalers use the identification system
developed by the Secretary for purposes of facilitating the
ordering, purchasing, and delivery of covered inpatient drugs
under this section, including the processing of chargebacks
for such drugs.
``(vii) The imposition of sanctions in the form of civil
monetary penalties, which--
``(I) shall be assessed according to standards and
procedures established in regulations to be promulgated by
the Secretary not later than January 1, 2011;
``(II) shall not exceed $10,000 per single dosage form of a
covered inpatient drug purchased by a covered entity where a
manufacturer knowingly charges such covered entity a price
for such drug that exceeds the ceiling price under subsection
(a)(1); and
``(III) shall not exceed $100,000 for each instance where a
manufacturer withholds or provides materially false
information to the Secretary or to covered entities under
this section or knowingly violates any provision of this
section (other than subsection (a)(1)).
``(2) Covered entity compliance.--
``(A) In general.--From amounts appropriated under
subsection (f), the Secretary shall provide for improvements
in compliance by covered entities with the requirements of
this section in order to prevent diversion and violations of
the duplicate discount provision and other requirements
specified under subsection (a)(4).
``(B) Improvements.--The improvements described in
subparagraph (A) shall include the following:
``(i) The development of procedures to enable and require
covered entities to update at least annually the information
on the Internet website supported by the Department of Health
and Human Services relating to this section.
``(ii) The development of procedures for the Secretary to
verify the accuracy of information regarding covered entities
that is listed on the website described in clause (i).
``(iii) The development of more detailed guidance
describing methodologies and options available to covered
entities for billing covered inpatient drugs to State
Medicaid agencies in a manner that avoids duplicate discounts
pursuant to subsection (a)(4)(A).
``(iv) The establishment of a single, universal, and
standardized identification system by which each covered
entity site and each covered entity's purchasing status under
sections 340B and
[[Page H4161]]
this section can be identified by manufacturers,
distributors, covered entities, and the Secretary for
purposes of facilitating the ordering, purchasing, and
delivery of covered inpatient drugs under this section,
including the processing of chargebacks for such drugs.
``(v) The imposition of sanctions in the form of civil
monetary penalties, which--
``(I) shall be assessed according to standards and
procedures established in regulations promulgated by the
Secretary; and
``(II) shall not exceed $10,000 for each instance where a
covered entity knowingly violates subsection (a)(4)(B) or
knowingly violates any other provision of this section.
``(vi) The termination of a covered entity's participation
in the program under this section, for a period of time to be
determined by the Secretary, in cases in which the Secretary
determines, in accordance with standards and procedures
established by regulation, that--
``(I) the violation by a covered entity of a requirement of
this section was repeated and knowing; and
``(II) imposition of a monetary penalty would be
insufficient to reasonably ensure compliance with the
requirements of this section.
``(vii) The referral of matters, as appropriate, to the
Food and Drug Administration, the Office of the Inspector
General of the Department of Health and Human Services, or
other Federal or State agencies.
``(3) Administrative dispute resolution process.--From
amounts appropriated under subsection (f), the Secretary may
establish and implement an administrative process for the
resolution of the following:
``(A) Claims by covered entities that manufacturers have
violated the terms of their agreement with the Secretary
under subsection (a)(1).
``(B) Claims by manufacturers that covered entities have
violated subsection (a)(4)(A) or (a)(4)(B).
``(e) Audit and Sanctions.--
``(1) Audit.--From amounts appropriated under subsection
(f), the Inspector General of the Department of Health and
Human Services (referred to in this subsection as the
`Inspector General') shall audit covered entities under this
section to verify compliance with criteria for eligibility
and participation under this section, including the
antidiversion prohibitions under subsection (a)(4)(B), and
take enforcement action or provide information to the
Secretary who shall take action to ensure program compliance,
as appropriate. A covered entity shall provide to the
Inspector General, upon request, records relevant to such
audits.
``(2) Report.--For each audit conducted under paragraph
(1), the Inspector General shall prepare and publish in a
timely manner a report which shall include findings and
recommendations regarding--
``(A) the appropriateness of covered entity eligibility
determinations and, as applicable, certifications;
``(B) the effectiveness of antidiversion prohibitions; and
``(C) the effectiveness of restrictions on inpatient
dispensing and administration.
``(f) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as may be necessary for fiscal year 2011 and each
succeeding fiscal year.''.
(b) Rulemaking.--Not later than January 1, 2011, the
Secretary shall promulgate regulations implementing section
340B-1 of the Public Health Service Act (as added by
subsection (a)).
(c) Conforming Amendment to Section 340B.--Paragraph (1) of
section 340B(a) of the Public Health Service Act (42 U.S.C.
256b(a)) is amended by adding at the end the following:
``Such agreement shall further require that, if the supply of
a covered outpatient drug is insufficient to meet demand,
then the manufacturer may use an allocation method that is
reported in writing to, and approved by, the Secretary and
does not discriminate on the basis of the price paid by
covered entities or on any other basis related to the
participation of an entity in the program under this section.
The agreement with a manufacturer under this paragraph may,
at the discretion of the Secretary, be included in the
agreement with the same manufacturer under section 340B-1.''.
(d) Conforming Amendments to Medicaid.--Section 1927 of the
Social Security Act (42 U.S.C. 1396r-8) is amended--
(1) in subsection (a)--
(A) in paragraph (1), in the first sentence, by striking
``and paragraph (6)'' and inserting ``, paragraph (6), and
paragraph (8)''; and
(B) by adding at the end the following new paragraph:
``(8) Limitation on prices of drugs purchased by 340b-1-
covered entities.--
``(A) Agreement with secretary.--A manufacturer meets the
requirements of this paragraph if the manufacturer has
entered into an agreement with the Secretary that meets the
requirements of section 340B-1 of the Public Health Service
Act with respect to covered inpatient drugs (as defined in
such section) purchased by a 340B-1-covered entity on or
after January 1, 2011.
``(B) 340B-1-covered entity defined.--In this subsection,
the term `340B-1-covered entity' means an entity described in
section 340B-1(b) of the Public Health Service Act.''; and
(2) in subsection (c)(1)(C)(i)(I)--
(A) by striking ``or'' before ``a covered entity''; and
(B) by inserting before the semicolon the following: ``, or
a covered entity for a covered inpatient drug (as such terms
are defined in section 340B-1of the Public Health Service
Act)''.
SEC. 517. CONTINUED INCLUSION OF ORPHAN DRUGS IN DEFINITION
OF COVERED OUTPATIENT DRUGS WITH RESPECT TO
CHILDREN'S HOSPITALS UNDER THE 340B DRUG
DISCOUNT PROGRAM.
(a) Definition of Covered Outpatient Drug.--
(1) Amendment.--Subsection (e) of section 340B of the
Public Health Service Act (42 U.S.C. 256b) is amended by
striking ``covered entities described in subparagraph
(M)''and inserting ``covered entities described in
subparagraph (M) (other than a children's hospital described
in subparagraph (M))''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect as if included in the enactment of section
2302 of the Health Care and Education Reconciliation Act of
2010 (Public Law 111-152).
(b) Technical Amendment.--Subparagraph (B) of section
1927(a)(5) of the Social Security Act (42 U.S.C. 1396r-
8(a)(5)) is amended by striking ``and a children's hospital''
and all that follows through the end of the subparagraph and
inserting a period.
SEC. 518. CONFORMING AMENDMENT RELATED TO WAIVER OF
COINSURANCE FOR PREVENTIVE SERVICES.
Effective as if included in section 10501(i)(2)(A) of
Public Law 111-148, section 1833(a)(3)(A) of the Social
Security Act (42 U.S.C. 1395l(a)(3)(A)) is amended by
striking ``section 1861(s)(10)(A)'' and inserting ``section
1861(ddd)(3)''.
SEC. 519. ESTABLISH A CMS-IRS DATA MATCH TO IDENTIFY
FRAUDULENT PROVIDERS.
(a) Authority to Disclose Return Information Concerning
Outstanding Tax Debts for Purposes of Enhancing Medicare
Program Integrity.--
(1) In general.--Section 6103(l) of the Internal Revenue
Code of 1986 is amended by adding at the end the following
new paragraph:
``(22) Disclosure of return information to department of
health and human services for purposes of enhancing medicare
program integrity.--
``(A) In general.--The Secretary shall, upon written
request from the Secretary of Health and Human Services,
disclose to officers and employees of the Department of
Health and Human Services return information with respect to
a taxpayer who has applied to enroll, or reenroll, as a
provider of services or supplier under the Medicare program
under title XVIII of the Social Security Act. Such return
information shall be limited to--
``(i) the taxpayer identity information with respect to
such taxpayer;
``(ii) the amount of the delinquent tax debt owed by that
taxpayer; and
``(iii) the taxable year to which the delinquent tax debt
pertains.
``(B) Restriction on disclosure.--Return information
disclosed under subparagraph (A) may be used by officers and
employees of the Department of Health and Human Services for
the purposes of, and to the extent necessary in, establishing
the taxpayer's eligibility for enrollment or reenrollment in
the Medicare program, or in any administrative or judicial
proceeding relating to, or arising from, a denial of such
enrollment or reenrollment, or in determining the level of
enhanced oversight to be applied with respect to such
taxpayer pursuant to section 1866(j)(3) of the Social
Security Act.
``(C) Delinquent tax debt.--For purposes of this paragraph,
the term `delinquent tax debt' means an outstanding debt
under this title for which a notice of lien has been filed
pursuant to section 6323, but the term does not include a
debt that is being paid in a timely manner pursuant to an
agreement under section 6159 or 7122, or a debt with respect
to which a collection due process hearing under section 6330
is requested, pending, or completed and no payment is
required.''.
(2) Conforming amendments.--Section 6103(p)(4) of such
Code, as amended by sections 1414 and 3308 of Public Law 111-
148, in the matter preceding subparagraph (A) and in
subparagraph (F)(ii), is amended by striking ``or (17)'' and
inserting ``(17), or (22)'' each place it appears.
(b) Secretary's Authority to Use Information From the
Department of Treasury in Medicare Enrollments and
Reenrollments.--Section 1866(j)(2) of the Social Security Act
(42 U.S.C. 1395cc(j)), as inserted by section 6401(a) of
Public Law 111-148, is further amended--
(1) by redesignating subparagraph (E) as subparagraph (F);
and
(2) by inserting after subparagraph (D) the following new
subparagraph:
``(E) Use of information from the department of treasury
concerning tax debts.--In reviewing the application of a
provider of services or supplier to enroll or reenroll under
the program under this title, the Secretary shall take into
account the information supplied by the Secretary of the
Treasury pursuant to section 6103(l)(22) of the Internal
Revenue Code of 1986, in determining whether to deny such
application or to apply enhanced oversight to such provider
of services or supplier pursuant to paragraph (3) if the
Secretary determines such provider of services or supplier
owes such a debt.''.
(c) Authority to Adjust Payments of Providers of Services
and Suppliers With the Same Tax Identification Number for
Medicare Obligations.--Section 1866(j)(5) of the Social
Security Act (42 U.S.C. 1395cc(j)(5)), as inserted by section
6401(a) of Public Law 111-148, is amended--
(1) in the paragraph heading, by striking ``past-due'' and
inserting ``medicare'';
(2) in subparagraph (A), by striking ``past-due obligations
described in subparagraph (B)(ii) of an'' and inserting
``amount described in subparagraph (B)(ii) due from such'';
and
(3) in subparagraph (B)(ii), by striking ``a past-due
obligation'' and inserting ``an amount that is more than the
amount required to be paid''.
[[Page H4162]]
SEC. 520. CLARIFICATION OF EFFECTIVE DATE OF PART B SPECIAL
ENROLLMENT PERIOD FOR DISABLED TRICARE
BENEFICIARIES.
Effective as if included in the enactment of Public Law
111-148, section 3110(a)(2) of such Act is amended to read as
follows:
``(2) Effective date.--The amendment made by paragraph (1)
shall apply to elections made after the date of the enactment
of this Act.''.
SEC. 521. PHYSICIAN PAYMENT UPDATE.
(a) In General.--Section 1848(d) of the Social Security Act
(42 U.S.C. 1395w-4(d)) is amended--
(1) in paragraph (10), in the heading, by striking
``portion'' and inserting ``the first 5 months ''; and
(2) by adding at the end the following new paragraphs:
``(11) Update for the last 7 months of 2010.--
``(A) In general.--Subject to paragraphs (7)(B), (8)(B),
(9)(B), and (10)(B), in lieu of the update to the single
conversion factor established in paragraph (1)(C) that would
otherwise apply for 2010 for the period beginning on June 1,
2010, and ending on December 31, 2010, the update to the
single conversion factor shall be 2.2 percent.
``(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.
``(12) Update for 2011.--
``(A) In general.--Subject to paragraphs (7)(B), (8)(B),
(9)(B), (10)(B), and (11)(B), in lieu of the update to the
single conversion factor established in paragraph (1)(C) that
would otherwise apply for 2011, the update to the single
conversion factor shall be 1.0 percent.
``(B) No effect on computation of conversion factor for
2012 and subsequent years.--The conversion factor under this
subsection shall be computed under paragraph (1)(A) for 2012
and subsequent years as if subparagraph (A) had never
applied.''.
(b) Statutory Paygo.--The budgetary effects of this Act,
for the purpose of complying with the Statutory Pay-As-You-Go
Act of 2010, shall be determined by reference to the latest
statement titled ``Budgetary Effects of PAYGO Legislation''
for this Act, jointly submitted for printing in the
Congressional Record by the Chairmen of the House and Senate
Budget Committees, provided that such statement has been
submitted prior to the vote on passage in the House acting
first on this conference report or amendment between the
Houses.
SEC. 522. ADJUSTMENT TO MEDICARE PAYMENT LOCALITIES.
(a) In General.--Section 1848(e) of the Social Security Act
(42 U.S.C.1395w-4(e)) is amended by adding at the end the
following new paragraph:
``(6) Transition to use of msas as fee schedule areas in
california.--
``(A) In general.--
``(i) Revision.--Subject to clause (ii) and notwithstanding
the previous provisions of this subsection, for services
furnished on or after January 1, 2012, the Secretary shall
revise the fee schedule areas used for payment under this
section applicable to the State of California using the
Metropolitan Statistical Area (MSA) iterative Geographic
Adjustment Factor methodology as follows:
``(I) The Secretary shall configure the physician fee
schedule areas using the Metropolitan Statistical Areas (each
in this paragraph referred to as an `MSA'), as defined by the
Director of the Office of Management and Budget as of the
date of the enactment of this paragraph, as the basis for the
fee schedule areas.
``(II) For purposes of this clause, the Secretary shall
treat all areas not included in an MSA as a single rest-of-
State MSA and any reference in this paragraph to an MSA shall
be deemed to include a reference to such rest-of-State MSA.
``(III) The Secretary shall list all MSAs within the State
by Geographic Adjustment Factor described in paragraph (2)
(in this paragraph referred to as a `GAF') in descending
order.
``(IV) In the first iteration, the Secretary shall compare
the GAF of the highest cost MSA in the State to the weighted-
average GAF of all the remaining MSAs in the State. If the
ratio of the GAF of the highest cost MSA to the weighted-
average of the GAF of remaining lower cost MSAs is 1.05 or
greater, the highest cost MSA shall be a separate fee
schedule area.
``(V) In the next iteration, the Secretary shall compare
the GAF of the MSA with the second-highest GAF to the
weighted-average GAF of the all the remaining MSAs (excluding
MSAs that become separate fee schedule areas). If the ratio
of the second-highest MSA's GAF to the weighted-average of
the remaining lower cost MSAs is 1.05 or greater, the second-
highest MSA shall be a separate fee schedule area.
``(VI) The iterative process shall continue until the ratio
of the GAF of the MSA with highest remaining GAF to the
weighted-average of the remaining MSAs with lower GAFs is
less than 1.05, and the remaining group of MSAs with lower
GAFs shall be treated as a single rest-of-State fee schedule
area.
``(VII) For purposes of the iterative process described in
this clause, if two MSAs have identical GAFs, they shall be
combined.
``(ii) Transition.--For services furnished on or after
January 1, 2012, and before January 1, 2017, in the State of
California, after calculating the work, practice expense, and
malpractice geographic indices that would otherwise be
determined under clauses (i), (ii), and (iii) of paragraph
(1)(A) for a fee schedule area determined under clause (i),
if the index for a county within a fee schedule area is less
than the index that would otherwise be in effect for such
county, the Secretary shall instead apply the index that
would otherwise be in effect for such county.
``(B) Subsequent revisions.--After the transition described
in subparagraph (A)(ii), not less than every 3 years the
Secretary shall review and update the fee schedule areas
using the methodology described in subparagraph (A)(i) and
any updated MSAs as defined by the Director of the Office of
Management and Budget. The Secretary shall review and make
any changes pursuant to such reviews concurrent with the
application of the periodic review of the adjustment factors
required under paragraph (1)(C) for California.
``(C) References to fee schedule areas.--Effective for
services furnished on or after January 1, 2012, for the State
of California, any reference in this section to a fee
schedule area shall be deemed a reference to a fee schedule
area established in accordance with this paragraph.''.
(b) Conforming Amendment to Definition of Fee Schedule
Area.--Section 1848(j)(2) of the Social Security Act (42
U.S.C. 1395w(j)(2)) is amended by striking ``The term'' and
inserting ``Except as provided in subsection (e)(6)(C), the
term''.
SEC. 523. CLARIFICATION OF 3-DAY PAYMENT WINDOW.
(a) In General.--Section 1886 of the Social Security Act
(42 U.S.C. 1395ww) is amended--
(1) by adding at the end of subsection (a)(4) the following
new sentence: ``In applying the first sentence of this
paragraph, the term `other services related to the admission'
includes all services that are not diagnostic services (other
than ambulance and maintenance renal dialysis services) for
which payment may be made under this title that are provided
by a hospital (or an entity wholly owned or operated by the
hospital) to a patient--
``(A) on the date of the patient's inpatient admission; or
``(B) during the 3 days (or, in the case of a hospital that
is not a subsection (d) hospital, during the 1 day)
immediately preceding the date of such admission unless the
hospital demonstrates (in a form and manner, and at a time,
specified by the Secretary) that such services are not
related (as determined by the Secretary) to such
admission.''; and
(2) in subsection (d)(7)--
(A) in subparagraph (A), by striking ``and'' at the end;
(B) in subparagraph (B), by striking the period and
inserting ``, and''; and
(C) by adding at the end the following new subparagraph:
``(C) the determination of whether services provided prior
to a patient's inpatient admission are related to the
admission (as described in subsection (a)(4)).''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to services furnished on or after the date of the
enactment of this Act.
(c) No Reopening of Previously Bundled Claims.--
(1) In general.--The Secretary of Health and Human Services
may not reopen a claim, adjust a claim, or make a payment
pursuant to any request for payment under title XVIII of the
Social Security Act, submitted by an entity (including a
hospital or an entity wholly owned or operated by the
hospital) for services described in paragraph (2) for
purposes of treating, as unrelated to a patient's inpatient
admission, services provided during the 3 days (or, in the
case of a hospital that is not a subsection (d) hospital,
during the 1 day) immediately preceding the date of the
patient's inpatient admission.
(2) Services described.--For purposes of paragraph (1), the
services described in this paragraph are other services
related to the admission (as described in section 1886(a)(4)
of the Social Security Act (42 U.S.C. 1395ww(a)(4)), as
amended by subsection (a)) which were previously included on
a claim or request for payment submitted under part A of
title XVIII of such Act for which a reopening, adjustment, or
request for payment under part B of such title, was not
submitted prior to the date of the enactment of this Act.
(d) Implementation.--Notwithstanding any other provision of
law, the Secretary of Health and Human Services may implement
the provisions of this section (and amendments made by this
section) by program instruction or otherwise.
(e) Rule of Construction.--Nothing in the amendments made
by this section shall be construed as changing the policy
described in section 1886(a)(4) of the Social Security Act
(42 U.S.C. 1395ww(a)(4)), as applied by the Secretary of
Health and Human Services before the date of the enactment of
this Act, with respect to diagnostic services.
TITLE VI--OTHER PROVISIONS
SEC. 601. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.
(a) Extension.--Section 129 of the Continuing
Appropriations Resolution, 2010 (Public Law 111-68), as
amended by section 7(a) of Public Law 111-157, is amended by
striking ``by substituting'' and all that follows through the
period at the end, and inserting ``by substituting December
31, 2010, for the date specified in each such section.''.
(b) Effective Date.--The amendments made by subsection (a)
shall be considered to have taken effect on May 31, 2010.
SEC. 602. ALLOCATION OF GEOTHERMAL RECEIPTS.
Notwithstanding any other provision of law, for fiscal year
2010 only, all funds received from sales, bonuses, royalties,
and rentals under the Geothermal Steam Act of 1970 (30 U.S.C.
1001 et seq.) shall be deposited in the Treasury, of which--
(1) 50 percent shall be used by the Secretary of the
Treasury to make payments to States within the boundaries of
which the leased land and geothermal resources are located;
[[Page H4163]]
(2) 25 percent shall be used by the Secretary of the
Treasury to make payments to the counties within the
boundaries of which the leased land or geothermal resources
are located; and
(3) 25 percent shall be deposited in miscellaneous
receipts.
SEC. 603. 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'', $505,000,000, 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; 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.
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 ``May 31, 2010''
and inserting ``December 31, 2010''.
(c) Appropriation.--There is appropriated for an additional
amount, out of any funds in the Treasury not otherwise
appropriated, for administrative expenses to carry out
sections 501 and 502 of division A of the American Recovery
and Reinvestment Act of 2009 (Public Law 111-5), $5,000,000,
to remain available until expended, which may be transferred
and merged with the appropriation for ``Small Business
Administration--Salaries and Expenses''.
SEC. 604. EMERGENCY AGRICULTURAL DISASTER ASSISTANCE.
(a) Definitions.--Except as otherwise provided in this
section, in this section:
(1) Disaster county.--
(A) In general.--The term ``disaster county'' means a
county included in the geographic area covered by a
qualifying natural disaster declaration for the 2009 crop
year.
(B) Exclusion.--The term ``disaster county'' does not
include a contiguous county.
(2) Eligible aquaculture producer.--The term ``eligible
aquaculture producer'' means an aquaculture producer that
during the 2009 calendar year, as determined by the
Secretary--
(A) produced an aquaculture species for which feed costs
represented a substantial percentage of the input costs of
the aquaculture operation; and
(B) experienced a substantial price increase of feed costs
above the previous 5-year average.
(3) Eligible producer.--The term ``eligible producer''
means an agricultural producer in a disaster county.
(4) Eligible specialty crop producer.--The term ``eligible
specialty crop producer'' means an agricultural producer
that, for the 2009 crop year, as determined by the
Secretary--
(A) produced, or was prevented from planting, a specialty
crop; and
(B) experienced specialty crop losses in a disaster county
due to drought, excessive rainfall, or a related condition.
(5) Qualifying natural disaster declaration.--The term
``qualifying natural disaster declaration'' means a natural
disaster declared by the Secretary for production losses
under section 321(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1961(a)).
(6) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(7) Specialty crop.--The term ``specialty crop'' has the
meaning given the term in section 3 of the Specialty Crops
Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C.
1621 note).
(b) Supplemental Direct Payment.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use such sums as are
necessary to make supplemental payments under sections 1103
and 1303 of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 8713, 8753) to eligible producers on farms located in
disaster counties that had at least 1 crop of economic
significance (other than specialty crops or crops intended
for grazing) suffer at least a 5-percent crop loss on a farm
due to a natural disaster, including quality losses, as
determined by the Secretary, in an amount equal to 90 percent
of the direct payment the eligible producers received for the
2009 crop year on the farm.
(2) ACRE program.--Eligible producers that received direct
payments under section 1105 of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8715) for the 2009 crop year and
that otherwise meet the requirements of paragraph (1) shall
be eligible to receive supplemental payments under that
paragraph in an amount equal to 112.5 percent of the reduced
direct payment the eligible producers received for the 2009
crop year under section 1103 or 1303 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 8753).
(3) Relationship to other law.--Assistance received under
this subsection shall be included in the calculation of farm
revenue for the 2009 crop year under section 531(b)(4)(A) of
the Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and
section 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C.
2497(b)(4)(A)).
(c) Specialty Crop Assistance.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$300,000,000, to remain available until September 30, 2011,
to carry out a program of grants to States to assist eligible
specialty crop producers for losses due to a natural disaster
affecting the 2009 crops, of which not more than--
(A) $150,000,000 shall be used to assist eligible specialty
crop producers in counties that have been declared a disaster
as the result of drought; and
(B) $150,000,000 shall be used to assist eligible specialty
crop producers in counties that have been declared a disaster
as the result of excessive rainfall or a related condition.
(2) Notification.--Not later than 45 days after the date of
enactment of this Act, the Secretary shall notify the State
department of agriculture (or similar entity) in each State
of the availability of funds to assist eligible specialty
crop producers, including such terms as are determined by the
Secretary to be necessary for the equitable treatment of
eligible specialty crop producers.
(3) Provision of grants.--
(A) In general.--The Secretary shall make grants to States
for disaster counties on a pro rata basis based on the value
of specialty crop losses in those counties during the 2009
calendar year, as determined by the Secretary.
(B) Administrative costs.--State Secretary of Agriculture
may not use more than five percent of the funds provided for
costs associated with the administration of the grants
provided in paragraph (1).
(C) Administration of grants.--State Secretary of
Agriculture may enter into a contract with the Department of
Agriculture to administer the grants provided in paragraph
(1).
(D) Timing.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall make grants to
States to provide assistance under this subsection.
(E) Maximum grant.--The maximum amount of a grant made to a
State for counties described in paragraph (1)(B) may not
exceed $40,000,000.
(4) Requirements.--The Secretary shall make grants under
this subsection only to States that demonstrate to the
satisfaction of the Secretary that the State will--
(A) use grant funds to issue payments to eligible specialty
crop producers;
(B) provide assistance to eligible specialty crop producers
not later than 60 days after the date on which the State
receives grant funds; and
(C) not later than 30 days after the date on which the
State provides assistance to eligible specialty crop
producers, submit to the Secretary a report that describes--
(i) the manner in which the State provided assistance;
(ii) the amounts of assistance provided by type of
specialty crop; and
(iii) the process by which the State determined the levels
of assistance to eligible specialty crop producers.
(D) Relation to other law.--Assistance received under this
subsection shall be included in the calculation of farm
revenue for the 2009 crop year under section 531(b)(4)(A) of
the Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and
section 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C.
2497(b)(4)(A)).
(d) Cottonseed Assistance.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$42,000,000 to provide supplemental assistance to eligible
producers and first-handlers of the 2009 crop of cottonseed
in a disaster county.
(2) General terms.--Except as otherwise provided in this
subsection, the Secretary shall provide disaster assistance
under this subsection under the same terms and conditions as
assistance provided under section 3015 of the Emergency
Agricultural Disaster Assistance Act of 2006 (title III of
Public Law 109-234; 120 Stat. 477).
(3) Distribution of assistance.--The Secretary shall
distribute assistance to first handlers for the benefit of
eligible producers in a disaster county in an amount equal to
the product obtained by multiplying--
(A) the payment rate, as determined under paragraph (4);
and
(B) the county-eligible production, as determined under
paragraph (5).
(4) Payment rate.--The payment rate shall be equal to the
quotient obtained by dividing--
(A) the total funds made available to carry out this
subsection; by
(B) the sum of the county-eligible production, as
determined under paragraph (5).
(5) County-eligible production.--The county-eligible
production shall be equal to the product obtained by
multiplying--
(A) the number of acres planted to cotton in the disaster
county, as reported to the Secretary by first handlers;
(B) the expected cotton lint yield for the disaster county,
as determined by the Secretary based on the best available
information; and
(C) the national average seed-to-lint ratio, as determined
by the Secretary based on the best available information for
the 5 crop years immediately preceding the 2009 crop,
excluding the year in which the average ratio was the highest
and the year in which the average ratio was the lowest in
such period.
(e) Aquaculture Assistance.--
(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$25,000,000, to remain available until September 30, 2011, to
carry out a program of grants to States to assist eligible
aquaculture producers for losses associated with high feed
input costs during the 2009 calendar year.
(2) Notification.--Not later than 45 days after the date of
enactment of this Act, the Secretary shall notify the State
department of agriculture (or similar entity) in each State
of the availability of funds to assist eligible aquaculture
producers, including such terms as are determined by the
Secretary to be necessary for the equitable treatment of
eligible aquaculture producers.
[[Page H4164]]
(3) Provision of grants.--
(A) In general.--The Secretary shall make grants to States
under this subsection on a pro rata basis based on the amount
of aquaculture feed used in each State during the 2009
calendar year, as determined by the Secretary.
(B) Timing.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall make grants to
States to provide assistance under this subsection.
(4) Requirements.--The Secretary shall make grants under
this subsection only to States that demonstrate to the
satisfaction of the Secretary that the State will--
(A) use grant funds to assist eligible aquaculture
producers;
(B) provide assistance to eligible aquaculture producers
not later than 60 days after the date on which the State
receives grant funds; and
(C) not later than 30 days after the date on which the
State provides assistance to eligible aquaculture producers,
submit to the Secretary a report that describes--
(i) the manner in which the State provided assistance;
(ii) the amounts of assistance provided per species of
aquaculture; and
(iii) the process by which the State determined the levels
of assistance to eligible aquaculture producers.
(5) Reduction in payments.--An eligible aquaculture
producer that receives assistance under this subsection shall
not be eligible to receive any other assistance under the
supplemental agricultural disaster assistance program
established under section 531 of the Federal Crop Insurance
Act (7 U.S.C. 1531) and section 901 of the Trade Act of 1974
(19 U.S.C. 2497) for any losses in 2009 relating to the same
species of aquaculture.
(6) Report to congress.--Not later than 240 days after the
date of enactment of this Act, the Secretary shall submit to
the appropriate committees of Congress a report that--
(A) describes in detail the manner in which this subsection
has been carried out; and
(B) includes the information reported to the Secretary
under paragraph (4)(C).
(f) Hawaii Transportation Cooperative.--Notwithstanding any
other provision of law, the Secretary shall use $21,000,000
of funds of the Commodity Credit Corporation to make a
payment to an agricultural transportation cooperative in the
State of Hawaii, the members of which are eligible to
participate in the commodity loan program of the Farm Service
Agency, for assistance to maintain and develop employment.
(g) Livestock Forage Disaster Program.--
(1) Definition of disaster county.--In this subsection:
(A) In general.--The term ``disaster county'' means a
county included in the geographic area covered by a
qualifying natural disaster declaration announced by the
Secretary in calendar year 2009.
(B) Inclusion.--The term ``disaster county'' includes a
contiguous county.
(2) Payments.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$50,000,000 to carry out a program to make payments to
eligible producers that had grazing losses in disaster
counties in calendar year 2009.
(3) Criteria.--
(A) In general.--Except as provided in subparagraph (B),
assistance under this subsection shall be determined under
the same criteria as are used to carry out the programs under
section 531(d) of the Federal Crop Insurance Act (7 U.S.C.
1531(d)) and section 901(d) of the Trade Act of 1974 (19
U.S.C. 2497(d)).
(B) Drought intensity.--For purposes of this subsection, an
eligible producer shall not be required to meet the drought
intensity requirements of section 531(d)(3)(D)(ii) of the
Federal Crop Insurance Act (7 U.S.C. 1531(d)(3)(D)(ii)) and
section 901(d)(3)(D)(ii) of the Trade Act of 1974 (19 U.S.C.
2497(d)(3)(D)(ii)).
(4) Amount.--Assistance under this subsection shall be in
an amount equal to 1 monthly payment using the monthly
payment rate under section 531(d)(3)(B) of the Federal Crop
Insurance Act (7 U.S.C. 1531(d)(3)(B)) and section
901(d)(3)(B) of the Trade Act of 1974 (19 U.S.C.
2497(d)(3)(B)).
(5) Relation to other law.--An eligible producer that
receives assistance under this subsection shall be ineligible
to receive assistance for 2009 grazing losses under the
program carried out under section 531(d) of the Federal Crop
Insurance Act (7 U.S.C. 1531(d)) and section 901(d) of the
Trade Act of 1974 (19 U.S.C. 2497(d)).
(h) Emergency Loans for Poultry Producers.--
(1) Definitions.--In this subsection:
(A) Announcement date.--The term ``announcement date''
means the date on which the Secretary announces the emergency
loan program under this subsection.
(B) Poultry integrator.--The term ``poultry integrator''
means a poultry integrator that filed proceedings under
chapter 11 of title 11, United States Code, in United States
Bankruptcy Court during the 30-day period beginning on
December 1, 2008.
(2) Loan program.--
(A) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than
$75,000,000, to remain available until expended, for the cost
of making no-interest emergency loans available to poultry
producers that meet the requirements of this subsection.
(B) Terms and conditions.--Except as otherwise provided in
this subsection, emergency loans under this subsection shall
be subject to such terms and conditions as are determined by
the Secretary.
(3) Loans.--
(A) In general.--An emergency loan made to a poultry
producer under this subsection shall be for the purpose of
providing financing to the poultry producer in response to
financial losses associated with the termination or
nonrenewal of any contract between the poultry producer and a
poultry integrator.
(B) Eligibility.--
(i) In general.--To be eligible for an emergency loan under
this subsection, not later than 90 days after the
announcement date, a poultry producer shall submit to the
Secretary evidence that--
(I) the contract of the poultry producer described in
subparagraph (A) was not continued; and
(II) no similar contract has been awarded subsequently to
the poultry producer.
(ii) Requirement to offer loans.--Notwithstanding any other
provision of law, if a poultry producer meets the eligibility
requirements described in clause (i), subject to the
availability of funds under paragraph (2)(A), the Secretary
shall offer to make a loan under this subsection to the
poultry producer with a minimum term of 2 years.
(4) Additional requirements.--
(A) In general.--A poultry producer that receives an
emergency loan under this subsection may use the emergency
loan proceeds only to repay the amount that the poultry
producer owes to any lender for the purchase, improvement, or
operation of the poultry farm.
(B) Conversion of the loan.--A poultry producer that
receives an emergency loan under this subsection shall be
eligible to have the balance of the emergency loan converted,
but not refinanced, to a loan that has the same terms and
conditions as an operating loan under subtitle B of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1941 et
seq.).
(i) State and Local Governments.--Section 1001(f)(6)(A) of
the Food Security Act of 1985 (7 U.S.C. 1308(f)(6)(A)) is
amended by inserting ``(other than the conservation reserve
program established under subchapter B of chapter 1 of
subtitle D of title XII of this Act)'' before the period at
the end.
(j) Administration.--
(1) Regulations.--
(A) In general.--As soon as practicable after the date of
enactment of this Act, the Secretary shall promulgate such
regulations as are necessary to implement this section and
the amendment made by this section.
(B) Procedure.--The promulgation of the regulations and
administration of this section and the amendment made by this
section shall be made without regard to--
(i) the notice and comment provisions of section 553 of
title 5, United States Code;
(ii) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg. 13804),
relating to notices of proposed rulemaking and public
participation in rulemaking; and
(iii) chapter 35 of title 44, United States Code (commonly
known as the ``Paperwork Reduction Act'').
(C) Congressional review of agency rulemaking.--In carrying
out this paragraph, the Secretary shall use the authority
provided under section 808 of title 5, United States Code.
(2) Administrative costs.--Of the funds of the Commodity
Credit Corporation, the Secretary may use up to $10,000,000
to pay administrative costs incurred by the Secretary that
are directly related to carrying out this Act.
(3) Prohibition.--None of the funds of the Agricultural
Disaster Relief Trust Fund established under section 902 of
the Trade Act of 1974 (19 U.S.C. 2497a) may be used to carry
out this Act.
SEC. 605. SUMMER EMPLOYMENT FOR YOUTH.
There is appropriated, out of any funds in the Treasury not
otherwise appropriated, for an additional amount for
``Department of Labor--Employment and Training
Administration--Training and Employment Services'' for
activities under the Workforce Investment Act of 1998
(``WIA''), $1,000,000,000 shall be available for obligation
on the date of enactment of this Act for grants to States for
youth activities, including summer employment for youth:
Provided, That no portion of such funds shall be reserved to
carry out section 127(b)(1)(A) of the WIA: Provided further,
That for purposes of section 127(b)(1)(C)(iv) of the WIA,
funds available for youth activities shall be allotted as if
the total amount available for youth activities in the fiscal
year does not exceed $1,000,000,000: Provided further, That
with respect to the youth activities provided with such
funds, section 101(13)(A) of the WIA shall be applied by
substituting ``age 24'' for ``age 21'': Provided further,
That the work readiness performance indicator described in
section 136(b)(2)(A)(ii)(I) of the WIA shall be the only
measure of performance used to assess the effectiveness of
summer employment for youth provided with such funds:
Provided further, That an amount that is not more than 1
percent of such amount may be used for the administration,
management, and oversight of the programs, activities, and
grants carried out with such funds, including the evaluation
of the use of such funds: Provided further, That funds
available under the preceding proviso, together with funds
described in section 801(a) of division A of the American
Recovery and reinvestment Act of 2009 (Public Law 111-5), and
funds provided in such Act under the heading ``Department of
Labor-Departmental Management-Salaries and Expenses'', shall
remain available for obligation through September 30, 2011.
SEC. 606. HOUSING TRUST FUND.
(a) Funding.--There is hereby appropriated for the Housing
Trust Fund established pursuant to section 1338 of the
Federal Housing Enterprises Financial Safety and Soundness
Act of 1992 (12 U.S.C. 4568), $1,065,000,000, for use under
such section: Provided, That of the total amount provided
under this heading, $65,000,000 shall be available to the
Secretary of Housing
[[Page H4165]]
and Urban Development only for incremental project-based
voucher assistance to be allocated to States to be used
solely in conjunction with grant funds awarded under such
section 1338, pursuant to the formula established under
section 1338 and taking into account different per unit
subsidy needs among states, as determined by the Secretary.
(b) Amendments.--Section 1338 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4568) is amended--
(1) in subsection (c)--
(A) in paragraph (4)(A) by inserting after the period at
the end the following: ``Notwithstanding any other provision
of law, for the fiscal year following enactment of this
sentence and thereafter, the Secretary may make such notice
available only on the Internet at the appropriate government
website or websites or through other electronic media, as
determined by the Secretary.'';
(B) in paragraph (5)(C), by striking ``(8)'' and inserting
``(9)''; and
(C) in paragraph (7)(A)--
(i) by striking ``section 1335(a)(2)(B)'' and inserting
``section 1335(a)(1)(B)''; and
(ii) by inserting ``the units funded under'' after ``75
percent of''; and
(2) by adding at the end the following new subsection:
``(k) Environmental Review.--For the purpose of
environmental compliance review, funds awarded under this
section shall be subject to section 288 of the HOME
Investment Partnerships Act (12 U.S.C. 12838) and shall be
treated as funds under the program established by such
Act.''.
SEC. 607. THE INDIVIDUAL INDIAN MONEY ACCOUNT LITIGATION
SETTLEMENT ACT OF 2010.
(a) Short Title.--This section may be cited as the
``Individual Indian Money Account Litigation Settlement Act
of 2010''.
(b) Definitions.--In this section:
(1) Amended complaint.--The term ``Amended Complaint''
means the Amended Complaint attached to the Settlement.
(2) Land consolidation program.--The term ``Land
Consolidation Program'' means a program conducted in
accordance with the Settlement and the Indian Land
Consolidation Act (25 U.S.C. 2201 et seq.) under which the
Secretary may purchase fractional interests in trust or
restricted land.
(3) Litigation.--The term ``Litigation'' means the case
entitled Elouise Cobell et al. v. Ken Salazar et al., United
States District Court, District of Columbia, Civil Action No.
96-1285 (JR).
(4) Plaintiff.--The term ``Plaintiff'' means a member of
any class certified in the Litigation.
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(6) Settlement.--The term ``Settlement'' means the Class
Action Settlement Agreement dated December 7, 2009, in the
Litigation, as modified by the parties to the Litigation.
(7) Trust administration class.--The term ``Trust
Administration Class'' means the Trust Administration Class
as defined in the Settlement.
(c) Purpose.--The purpose of this section is to authorize
the Settlement.
(d) Authorization.--The Settlement is authorized, ratified,
and confirmed.
(e) Jurisdictional Provisions.--
(1) In general.--Notwithstanding the limitation of
jurisdiction of district courts contained in section
1346(a)(2) of title 28, United States Code, the United States
District Court for the District of Columbia shall have
jurisdiction over the claims asserted in the Amended
Complaint for purposes of the Settlement.
(2) Certification of trust administration class.--
(A) In general.--Notwithstanding the requirements of the
Federal Rules of Civil Procedure, the court overseeing the
Litigation may certify the Trust Administration Class.
(B) Treatment.--On certification under subparagraph (A),
the Trust Administration Class shall be treated as a class
under Federal Rule of Civil Procedure 23(b)(3) for purposes
of the Settlement.
(f) Trust Land Consolidation.--
(1) Trust land consolidation fund.--
(A) Establishment.--On final approval (as defined in the
Settlement) of the Settlement, there shall be established in
the Treasury of the United States a fund, to be known as the
``Trust Land Consolidation Fund''.
(B) Availability of amounts.--Amounts in the Trust Land
Consolidation Fund shall be made available to the Secretary
during the 10-year period beginning on the date of final
approval of the Settlement--
(i) to conduct the Land Consolidation Program; and
(ii) for other costs specified in the Settlement.
(C) Deposits.--
(i) In general.--On final approval (as defined in the
Settlement) of the Settlement, the Secretary of the Treasury
shall deposit in the Trust Land Consolidation Fund
$2,000,000,000 of the amounts appropriated by section 1304 of
title 31, United States Code.
(ii) Conditions met.--The conditions described in section
1304 of title 31, United States Code, shall be considered to
be met for purposes of clause (i).
(D) Transfers.--In a manner designed to encourage
participation in the Land Consolidation Program, the
Secretary may transfer, at the discretion of the Secretary,
not more than $60,000,000 of amounts in the Trust Land
Consolidation Fund to the Indian Education Scholarship
Holding Fund established under paragraph 2.
(2) Indian education scholarship holding fund.--
(A) Establishment.--On the final approval (as defined in
the Settlement) of the Settlement, there shall be established
in the Treasury of the United States a fund, to be known as
the ``Indian Education Scholarship Holding Fund''.
(B) Availability.--Notwithstanding any other provision of
law governing competition, public notification, or Federal
procurement or assistance, amounts in the Indian Education
Scholarship Holding Fund shall be made available, without
further appropriation, to the Secretary to contribute to an
Indian Education Scholarship Fund, as described in the
Settlement, to provide scholarships for Native Americans.
(3) Acquisition of trust or restricted land.--The Secretary
may acquire, at the discretion of the Secretary and in
accordance with the Land Consolidation Program, any
fractional interest in trust or restricted land.
(4) Treatment of unlocatable plaintiffs.--A Plaintiff the
whereabouts of whom are unknown and who, after reasonable
efforts by the Secretary, cannot be located during the 5 year
period beginning on the date of final approval (as defined in
the Settlement) of the Settlement shall be considered to have
accepted an offer made pursuant to the Land Consolidation
Program.
(g) Taxation and Other Benefits.--
(1) Internal revenue code.--For purposes of the Internal
Revenue Code of 1986, amounts received by an individual
Indian as a lump sum or a periodic payment pursuant to the
Settlement--
(A) shall not be included in gross income; and
(B) shall not be taken into consideration for purposes of
applying any provision of the Internal Revenue Code of 1986
that takes into account excludible income in computing
adjusted gross income or modified adjusted gross income,
including section 86 of that Code (relating to Social
Security and tier 1 railroad retirement benefits).
(2) Other benefits.--Notwithstanding any other provision of
law, for purposes of determining initial eligibility, ongoing
eligibility, or level of benefits under any Federal or
federally assisted program, amounts received by an individual
Indian as a lump sum or a periodic payment pursuant to the
Settlement shall not be treated for any household member,
during the 1-year period beginning on the date of receipt--
(A) as income for the month during which the amounts were
received; or
(B) as a resource.
SEC. 608. APPROPRIATION OF FUNDS FOR FINAL SETTLEMENT OF
CLAIMS FROM IN RE BLACK FARMERS DISCRIMINATION
LITIGATION.
(a) Definitions.--In this section:
(1) Settlement agreement.--The term ``Settlement
Agreement'' means the settlement agreement dated February 18,
2010 (including any modifications agreed to by the parties
and approved by the court under that agreement) between
certain plaintiffs, by and through their counsel, and the
Secretary of Agriculture to resolve, fully and forever, the
claims raised or that could have been raised in the cases
consolidated in In re Black Farmers Discrimination
Litigation, No. 08-511 (D.D.C.), including Pigford claims
asserted under section 14012 of the Food, Conservation, and
Energy Act of 2008 (Public Law 110-246; 122 Stat. 2209).
(2) Pigford claim.--The term ``Pigford claim'' has the
meaning given that term in section 14012(a)(3) of the Food,
Conservation, and Energy Act of 2008 (Public Law 110-246; 122
Stat. 2210).
(b) Appropriation of Funds.--There is hereby appropriated
to the Secretary of Agriculture $1,150,000,000, to remain
available until expended, to carry out the terms of the
Settlement Agreement if the Settlement Agreement is approved
by a court order that is or becomes final and nonappealable.
The funds appropriated by this subsection are in addition to
the $100,000,000 of funds of the Commodity Credit Corporation
made available by section 14012(i) of the Food, Conservation,
and Energy Act of 2008 (Public Law 110-246; 122 Stat. 2212)
and shall be available for obligation only after those
Commodity Credit Corporation funds are fully obligated. If
the Settlement Agreement is not approved as provided in this
subsection, the $100,000,000 of funds of the Commodity Credit
Corporation made available by section 14012(i) of the Food,
Conservation, and Energy Act of 2008 shall be the sole
funding available for Pigford claims.
(c) Use of Funds.--The use of the funds appropriated by
subsection (b) shall be subject to the express terms of the
Settlement Agreement.
(d) Treatment of Remaining Funds.--If any of the funds
appropriated by subsection (b) are not obligated and expended
to carry out the Settlement Agreement, the Secretary of
Agriculture shall return the unused funds to the Treasury and
may not make the unused funds available for any purpose
related to section 14012 of the Food, Conservation, and
Energy Act of 2008, for any other settlement agreement
executed in In re Black Farmers Discrimination Litigation,
No. 08-511 (D.D.C.), or for any other purpose.
(e) Rules of Construction.--Nothing in this section shall
be construed as requiring the United States, any of its
officers or agencies, or any other party to enter into the
Settlement Agreement or any other settlement agreement.
Nothing in this section shall be construed as creating the
basis for a Pigford claim.
(f) Conforming Amendments.--Section 14012 of the Food,
Conservation, and Energy Act of 2008 (Public Law 110-246; 122
Stat. 2209) is amended--
(1) in subsection (c)(1)--
(A) by striking ``subsection (h)'' and inserting
``subsection (g)''; and
(B) by striking ``subsection (i)'' and inserting
``subsection (h)'';
(2) by striking subsection (e);
(3) in subsection (g), by striking ``subsection (f)'' and
inserting ``subsection (e)'';
(4) in subsection (i)--
(A) by striking ``(1) In general.--Of the funds'' and
inserting ``Of the funds''; and
[[Page H4166]]
(B) by striking paragraph (2);
(5) by striking subsection (j); and
(6) by redesignating subsections (f), (g), (h), (i), and
(k) as subsections (e), (f), (g), (h), and (i), respectively.
SEC. 609. EXPANSION OF ELIGIBILITY FOR CONCURRENT RECEIPT OF
MILITARY RETIRED PAY AND VETERANS' DISABILITY
COMPENSATION TO INCLUDE ALL CHAPTER 61
DISABILITY RETIREES REGARDLESS OF DISABILITY
RATING PERCENTAGE OR YEARS OF SERVICE.
(a) Phased Expansion Concurrent Receipt.--Subsection (a) of
section 1414 of title 10, United States Code, is amended to
read as follows:
``(a) Payment of Both Retired Pay and Disability
Compensation.--
``(1) Payment of both required.--
``(A) In general.--Subject to subsection (b), a member or
former member of the uniformed services who is entitled for
any month to retired pay and who is also entitled for that
month to veterans' disability compensation for a qualifying
service-connected disability (in this section referred to as
a `qualified retiree') is entitled to be paid both for that
month without regard to sections 5304 and 5305 of title 38.
``(B) Applicability of full concurrent receipt phase-in
requirement.--During the period beginning on January 1, 2004,
and ending on December 31, 2013, payment of retired pay to a
qualified retiree is subject to subsection (c).
``(C) Phase-in exception for 100 percent disabled
retirees.--The payment of retired pay is subject to
subsection (c) only during the period beginning on January 1,
2004, and ending on December 31, 2004, in the case of the
following qualified retirees:
``(i) A qualified retiree receiving veterans' disability
compensation for a disability rated as 100 percent.
``(ii) A qualified retiree receiving veterans' disability
compensation at the rate payable for a 100 percent disability
by reason of a determination of individual unemployability.
``(D) Temporary phase-in exception for certain chapter 61
disability retirees; termination.--Subject to subsection (b),
during the period beginning on January 1, 2011, and ending on
September 30, 2012, subsection (c) shall not apply to a
qualified retiree described in subparagraph (B) or (C) of
paragraph (2).
``(2) Qualifying service-connected disability defined.--In
this section:
``(A) 50 percent rating threshold.--In the case of a member
or former member receiving retired pay under any provision of
law other than chapter 61 of this title, or under chapter 61
with 20 years or more of service otherwise creditable under
section 1405 or computed under section 12732 of this title,
the term `qualifying service-connected disability' means a
service-connected disability or combination of service-
connected disabilities that is rated as not less than 50
percent disabling by the Secretary of Veterans Affairs.
However, during the period specified in paragraph (1)(D),
members or former members receiving retired pay under chapter
61 with 20 years or more of creditable service computed under
section 12732 of this title, but not otherwise entitled to
retired pay under any other provision of this title, shall
qualify in accordance with subparagraphs (B) and (C).
``(B) Inclusion of members not otherwise entitled to
retired pay.--In the case of a member or former member
receiving retired pay under chapter 61 of this title, but who
is not otherwise entitled to retired pay under any other
provision of this title, the term `qualifying service-
connected disability' means a service-connected disability or
combination of service-connected disabilities that is rated
by the Secretary of Veterans Affairs at the disabling level
specified in one of the following clauses (which, subject to
paragraph (3), is effective on or after the date specified in
the applicable clause):
``(i) January 1, 2011, rated 100 percent, or a rate payable
at 100 percent by reason of individual unemployability or
rated 90 percent.
``(ii) January 1, 2012, rated 80 percent or 70 percent.
``(iii) January 1, 2013, rated 60 percent or 50 percent.
``(C) Elimination of rating threshold.--In the case of a
member or former member receiving retired pay under chapter
61 regardless of being otherwise eligible for retirement, the
term `qualifying service-connected disability' means a
service-connected disability or combination of service-
connected disabilities that is rated by the Secretary of
Veterans Affairs at the disabling level specified in one of
the following clauses (which, subject to paragraph (3), is
effective on or after the date specified in the applicable
clause):
``(i) January 1, 2014, rated 40 percent or 30 percent.
``(ii) January 1, 2015, any rating.
``(3) Limited duration.--Notwithstanding the effective date
specified in each clause of subparagraphs (B) and (C) of
paragraph (2), the clause--
``(A) shall apply only if the termination date specified in
paragraph (1)(D) would occur during or after the calendar
year specified in the clause; and
``(B) shall not apply beyond the termination date specified
in paragraph (1)(D).''.
(b) Conforming Amendment to Special Rules for Chapter 61
Disability Retirees.--Subsection (b) of such section is
amended to read as follows:
``(b) Special Rules for Chapter 61 Disability Retirees When
Eligibility Has Been Established for Such Retirees.--
``(1) General reduction rule.--The retired pay of a member
retired under chapter 61 of this title is subject to
reduction under sections 5304 and 5305 of title 38, but only
to the extent that the amount of the members retired pay
under chapter 61 of this title exceeds the amount of retired
pay to which the member would have been entitled under any
other provision of law based upon the member's service in the
uniformed services if the member had not been retired under
chapter 61 of this title.
``(2) Chapter 61 retirees not otherwise entitled to retired
pay.--
``(A) Before termination date.--If a member with a
qualifying service-connected disability (as defined in
subsection (a)(2)) is retired under chapter 61 of this title,
but is not otherwise entitled to retired pay under any other
provision of this title, and the termination date specified
in subsection (a)(1)(D) has not occurred, the retired pay of
the member is subject to reduction under sections 5304 and
5305 of title 38, but only to the extent that the amount of
the member's retired pay under chapter 61 of this title
exceeds the amount equal to 2\1/2\ percent of the member's
years of creditable service multiplied by the member's
retired pay base under section 1406(b)(1) or 1407 of this
title, whichever is applicable to the member.
``(B) After termination date.--Subsection (a) does not
apply to a member described in subparagraph (A) if the
termination date specified in subsection (a)(1)(D) has
occurred.''.
(c) Conforming Amendment to Full Concurrent Receipt Phase-
in.--Subsection (c) of such section is amended by striking
``the second sentence of''.
(d) Clerical Amendments.--
(1) Section heading.--The heading of such section is
amended to read as follows:
``Sec. 1414. Concurrent receipt of retired pay and veterans'
disability compensation''.
(2) Table of sections.--The table of sections at the
beginning of chapter 71 of such title is amended by striking
the item related to section 1414 and inserting the following
new item:
``1414. Concurrent receipt of retired pay and veterans' disability
compensation.''.
(e) Effective Date.--The amendments made by this section
shall take effect on January 1, 2011.
SEC. 610. EXTENSION OF USE OF 2009 POVERTY GUIDELINES.
Section 1012 of the Department of Defense Appropriations
Act, 2010 (Public Law 111-118), as amended by section 6 of
the Continuing Extension Act of 2010 (Public Law 111-157), is
amended--
(1) by striking ``before May 31, 2010''; and
(2) by inserting ``for 2011'' after ``until updated poverty
guidelines''.
SEC. 611. REFUNDS DISREGARDED IN THE ADMINISTRATION OF
FEDERAL PROGRAMS AND FEDERALLY ASSISTED
PROGRAMS.
(a) In General.--Subchapter A of chapter 65 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new section:
``SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF
FEDERAL PROGRAMS AND FEDERALLY ASSISTED
PROGRAMS.
``(a) In General.--Notwithstanding any other provision of
law, any refund (or advance payment with respect to a
refundable credit) made to any individual under this title
shall not be taken into account as income, and shall not be
taken into account as resources for a period of 12 months
from receipt, for purposes of determining the eligibility of
such individual (or any other individual) for benefits or
assistance (or the amount or extent of benefits or
assistance) under any Federal program or under any State or
local program financed in whole or in part with Federal
funds.
``(b) Termination.--Subsection (a) shall not apply to any
amount received after December 31, 2010.''.
(b) Clerical Amendment.--The table of sections for such
subchapter is amended by adding at the end the following new
item:
``Sec. 6409. Refunds disregarded in the administration of Federal
programs and federally assisted programs.''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts received after December 31, 2009.
SEC. 612. 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. 613. QUALIFYING TIMBER CONTRACT OPTIONS.
(a) Definitions.--In this section:
(1) Qualifying contract.--The term ``qualifying contract''
means a contract that has not been terminated by the Bureau
of Land Management for the sale of timber on lands
administered by the Bureau of Land Management that meets all
of the following criteria:
(A) The contract was awarded during the period beginning on
January 1, 2005, and ending on December 31, 2008.
(B) There is unharvested volume remaining for the contract.
(C) The contract is not a salvage sale.
(D) The Secretary determined there is not an urgent need to
harvest under the contract due to deteriorating timber
conditions that developed after the award of the contract.
(2) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Director of Bureau of
Land Management.
(3) Timber purchaser.--The term ``timber purchaser'' means
the party to the qualifying contract for the sale of timber
from lands administered by the Bureau of Land Management.
(b) Market-related Contract Extension Option.--Upon a
timber purchaser's written request, the Secretary may make a
one-time modification to the qualifying contract to add 3
[[Page H4167]]
years to the contract expiration date if the written
request--
(1) is received by the Secretary not later than 90 days
after the date of enactment of this Act; and
(2) contains a provision releasing the United States from
all liability, including further consideration or
compensation, resulting from the modification under this
subsection of the term of a qualifying contract.
(c) Reporting.--Not later than 6 months after the date of
the enactment of this Act, the Secretary shall submit to
Congress a report detailing a plan and timeline to promulgate
new regulations authorizing the Bureau of Land Management to
extend timber contracts due to changes in market conditions.
(d) Regulations.--Not later than 2 years after the date of
the enactment of this Act, the Secretary shall promulgate new
regulations authorizing the Bureau of Land Management to
extend timber contracts due to changes in market conditions.
(e) No Surrender of Claims.--This section shall not have
the effect of surrendering any claim by the United States
against any timber purchaser that arose under a timber sale
contract, including a qualifying contract, before the date on
which the Secretary adjusts the contract term under
subsection (b).
SEC. 614. EXTENSION AND FLEXIBILITY FOR CERTAIN ALLOCATED
SURFACE TRANSPORTATION PROGRAMS.
(a) Modification of Allocation Rules.--Section 411(d) of
the Surface Transportation Extension Act of 2010 (Public Law
111-147; 124 Stat. 80) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``1301, 1302,''; and
(ii) by striking ``1198, 1204,''; and
(B) in subparagraph (A)--
(i) in the matter preceding clause (i) by striking
``apportioned under sections 104(b) and 144 of title 23,
United States Code,'' and inserting ``specified in section
105(a)(2) of title 23, United States Code (except the high
priority projects program),''; and
(ii) in clause (ii) by striking ``apportioned under such
sections of such Code'' and inserting ``specified in such
section 105(a)(2) (except the high priority projects
program)'';
(2) in paragraph (2)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``1301, 1302,''; and
(ii) by striking ``1198, 1204,''; and
(B) in subparagraph (A)--
(i) in the matter preceding clause (i) by striking
``apportioned under sections 104(b) and 144 of title 23,
United States Code,'' and inserting ``specified in section
105(a)(2) of title 23, United States Code (except the high
priority projects program),''; and
(ii) in clause (ii) by striking ``apportioned under such
sections of such Code'' and inserting ``specified in such
section 105(a)(2) (except the high priority projects
program)''; and
(3) by adding at the end the following:
``(5) Projects of national and regional significance and
national corridor infrastructure improvement programs.--
``(A) Redistribution among states.--Notwithstanding
sections 1301(m) and 1302(e) of SAFETEA-LU (119 Stat. 1202
and 1205), the Secretary shall apportion funds authorized to
be appropriated under subsection (b) for the projects of
national and regional significance program and the national
corridor infrastructure improvement program among all States
such that each State's share of the funds so apportioned is
equal to the State's share for fiscal year 2009 of funds
apportioned or allocated for the programs specified in
section 105(a)(2) of title 23, United States Code.
``(B) Distribution among programs.--Funds apportioned to a
State pursuant to subparagraph (A) shall be--
``(i) made available to the State for the programs
specified in section 105(a)(2) of title 23, United States
Code (except the high priority projects program), and in the
same proportion for each such program that--
``(I) the amount apportioned to the State for that program
for fiscal year 2009; bears to
``(II) the amount apportioned to the State for fiscal year
2009 for all such programs; and
``(ii) administered in the same manner and with the same
period of availability as funding is administered under
programs identified in clause (i).''.
(b) Expenditure Authority From Highway Trust Fund.--
Paragraph (1) of section 9503(c) of the Internal Revenue Code
of 1986 is amended by striking ``Surface Transportation
Extension Act of 2010'' and inserting ``American Jobs and
Closing Tax Loopholes Act of 2010''.
(c) Effective Date.--The amendments made by this section
shall take effect upon the date of enactment of the Surface
Transportation Extension Act of 2010 (Public Law 111-147; 124
Stat. 78 et seq.) and shall be treated as being included in
that Act at the time of the enactment of that Act.
(d) Savings Clause.--
(1) In general.--For fiscal year 2010 and for the period
beginning on October 1, 2010, and ending on December 31,
2010, the amount of funds apportioned to each State under
section 411(d) of the Surface Transportation Extension Act of
2010 (Public Law 111-147) that is determined by the amount
that the State received or was authorized to receive for
fiscal year 2009 to carry out the projects of national and
regional significance program and national corridor
infrastructure improvement program shall be the greater of--
(A) the amount that the State was authorized to receive
under section 411(d) of the Surface Transportation Extension
Act of 2010 with respect to each such program according to
the provisions of that Act, as in effect on the day before
the date of enactment of this Act; or
(B) the amount that the State is authorized to receive
under section 411(d) of the Surface Transportation Extension
Act of 2010 with respect to each such program pursuant to the
provisions of that Act, as amended by the amendments made by
this section.
(2) Obligation authority.--For fiscal year 2010, the amount
of obligation authority distributed to each State shall be
the greater of--
(A) the amount that the State was authorized to receive
pursuant to section 120(a)(4)(A) (as it pertains to the
Appalachian Development Highway System program) of title I of
division A of the Consolidated Appropriations Act, 2010
(Public Law 111-117) and sections 120(a)(4)(B) and 120(a)(6)
of such title, as of the day before the date of enactment of
this Act; or
(B) the amount that the State is authorized to receive
pursuant to section 120(a)(4)(A) (as it pertains to the
Appalachian Development Highway System program) of title I of
division A of the Consolidated Appropriations Act, 2010
(Public Law 111-117) and sections 120(a)(4)(B) and 120(a)(6)
of such title, as of the date of enactment of this Act.
(3) Authorization of appropriations.--There is authorized
to be appropriated out of the Highway Trust Fund (other than
the Mass Transit Account) such sums as may be necessary to
carry out this subsection.
(4) Increase in obligation limitation.--The limitation
under the heading ``Federal-aid Highways (Limitation on
Obligations) (Highway Trust Fund)'' in Public Law 111-117 is
increased by such sums as may be necessary to carry out this
subsection.
(5) Contract authority.--Funds made available to carry out
this subsection shall be available for obligation and
administered in the same manner as if such funds were
apportioned under chapter 1 of title 23, United States Code.
(6) Amounts.--The dollar amount specified in section
105(d)(1) of title 23, United States Code, the dollar amount
specified in section 120(a)(4)(B) of title I of division A of
the Consolidated Appropriations Act, 2010 (Public Law 111-
117), and the dollar amount specified in section 120(b)(10)
of such title shall each be increased as necessary to carry
out this subsection.
SEC. 615. COMMUNITY COLLEGE AND CAREER TRAINING GRANT
PROGRAM.
(a) In General.--Section 278(a) of the Trade Act of 1974
(19 U.S.C. 2372(a)) is amended by adding at the end the
following:
``(3) Rule of construction.--For purposes of this section,
any reference to `workers', `workers eligible for training
under section 236', or any other reference to workers under
this section shall be deemed to include individuals who are,
or are likely to become, eligible for unemployment
compensation as defined in section 85(b) of the Internal
Revenue Code of 1986, or who remain unemployed after
exhausting all rights to such compensation.''.
(b) Definition of Eligible Institution.--Section 278(b)(1)
of the Trade Act of 1974 (19 U.S.C. 2372(b)(1)) is amended--
(1) by striking ``section 102'' and inserting ``section
101(a)''; and
(2) by striking ``1002'' and inserting ``1001(a)''.
(c) Authorization of Appropriations.--Section 279 of the
Trade Act of 1974 (19 U.S.C. 2372a) is amended--
(1) in subsection (a), by striking the last sentence; and
(2) by adding at the end the following:
``(c) Administrative and Related Costs.--The Secretary may
retain not more than 5 percent of the funds appropriated
under subsection (b) for each fiscal year to administer,
evaluate, and establish reporting systems for the Community
College and Career Training Grant program under section 278.
``(d) Supplement Not Supplant.--Funds appropriated under
subsection (b) shall be used to supplement and not supplant
other Federal, State, and local public funds expended to
support community college and career training programs.
``(e) Availability.--Funds appropriated under subsection
(b) shall remain available for the fiscal year for which the
funds are appropriated and the subsequent fiscal year.''.
SEC. 616. EXTENSIONS OF DUTY SUSPENSIONS ON COTTON SHIRTING
FABRICS AND RELATED PROVISIONS.
(a) Extensions.--Each of the following headings of the
Harmonized Tariff Schedule of the United States is amended by
striking the date in the effective date column and inserting
``12/31/2013'':
(1) Heading 9902.52.08 (relating to woven fabrics of
cotton).
(2) Heading 9902.52.09 (relating to woven fabrics of
cotton).
(3) Heading 9902.52.10 (relating to woven fabrics of
cotton).
(4) Heading 9902.52.11 (relating to woven fabrics of
cotton).
(5) Heading 9902.52.12 (relating to woven fabrics of
cotton).
(6) Heading 9902.52.13 (relating to woven fabrics of
cotton).
(7) Heading 9902.52.14 (relating to woven fabrics of
cotton).
(8) Heading 9902.52.15 (relating to woven fabrics of
cotton).
(9) Heading 9902.52.16 (relating to woven fabrics of
cotton).
(10) Heading 9902.52.17 (relating to woven fabrics of
cotton).
(11) Heading 9902.52.18 (relating to woven fabrics of
cotton).
(12) Heading 9902.52.19 (relating to woven fabrics of
cotton).
(13) Heading 9902.52.20 (relating to woven fabrics of
cotton).
(14) Heading 9902.52.21 (relating to woven fabrics of
cotton).
(15) Heading 9902.52.22 (relating to woven fabrics of
cotton).
[[Page H4168]]
(16) Heading 9902.52.23 (relating to woven fabrics of
cotton).
(17) Heading 9902.52.24 (relating to woven fabrics of
cotton).
(18) Heading 9902.52.25 (relating to woven fabrics of
cotton).
(19) Heading 9902.52.26 (relating to woven fabrics of
cotton).
(20) Heading 9902.52.27 (relating to woven fabrics of
cotton).
(21) Heading 9902.52.28 (relating to woven fabrics of
cotton).
(22) Heading 9902.52.29 (relating to woven fabrics of
cotton).
(23) Heading 9902.52.30 (relating to woven fabrics of
cotton).
(24) Heading 9902.52.31 (relating to woven fabrics of
cotton).
(b) Extension of Duty Refunds and Pima Cotton Trust Fund;
Modification of Affidavit Requirements.--Section 407 of title
IV of division C of the Tax Relief and Health Care Act of
2006 (Public Law 109-432; 120 Stat. 3060) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``amounts determined by
the Secretary'' and all that follows through ``5208.59.80''
and inserting ``amounts received in the general fund that are
attributable to duties received since January 1, 2004, on
articles classified under heading 5208''; and
(B) in paragraph (2), by striking ``October 1, 2008'' and
inserting ``December 31, 2013'';
(2) in subsection (d)--
(A) in the matter preceding paragraph (1), by inserting
``annually'' after ``provided''; and
(B) in paragraph (1), by inserting ``during the year in
which the affidavit is filed and'' after ``imported cotton
fabric''; and
(3) in subsection (f)--
(A) in the matter preceding paragraph (1), by inserting
``annually'' after ``provided''; and
(B) in paragraph (1), by inserting ``during the year in
which the affidavit is filed and'' after ``United States''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act
and apply with respect to affidavits filed on or after such
date of enactment.
SEC. 617. MODIFICATION OF WOOL APPAREL MANUFACTURERS TRUST
FUND.
(a) In General.--Section 4002(c)(2)(A) of the Miscellaneous
Trade and Technical Corrections Act of 2004 (Public Law 108-
429; 118 Stat. 2600) is amended by striking ``chapter 51''
and inserting ``chapter 62''.
(b) Full Restoration of Payment Levels in Fiscal Year
2010.--
(1) Transfer of amounts.--
(A) In general.--Not later than 30 days after the date of
the enactment of this Act, the Secretary of the Treasury
shall transfer to the Wool Apparel Manufacturers Trust Fund,
out of the general fund of the Treasury of the United States,
amounts determined by the Secretary of the Treasury to be
equivalent to amounts received in the general fund that are
attributable to the duty received on articles classified
under chapter 62 of the Harmonized Tariff Schedule of the
United States, subject to the limitation in subparagraph (B).
(B) Limitation.--The Secretary of the Treasury shall not
transfer more than the amount determined by the Secretary to
be necessary for--
(i) U.S. Customs and Border Protection to make payments to
eligible manufacturers under section 4002(c)(3) of the
Miscellaneous Trade and Technical Corrections Act of 2004 so
that the amount of such payments, when added to any other
payments made to eligible manufacturers under section
4002(c)(3) of such Act for calendar year 2010, equal the
total amount of payments authorized to be provided to
eligible manufacturers under section 4002(c)(3) of such Act
for calendar year 2010; and
(ii) the Secretary of Commerce to provide grants to
eligible manufacturers under section 4002(c)(6) of the
Miscellaneous Trade and Technical Corrections Act of 2004 so
that the amounts of such grants, when added to any other
grants made to eligible manufacturers under section
4002(c)(6) of such Act for calendar year 2010, equal the
total amount of grants authorized to be provided to eligible
manufacturers under section 4002(c)(6) of such Act for
calendar year 2010.
(2) Payment of amounts.--U.S. Customs and Border Protection
shall make payments described in paragraph (1) to eligible
manufacturers not later than 30 days after such transfer of
amounts from the general fund of the Treasury of the United
States to the Wool Apparel Manufacturers Trust Fund. The
Secretary of Commerce shall promptly provide grants described
in paragraph (1) to eligible manufacturers after such
transfer of amounts from the general fund of the Treasury of
the United States to the Wool Apparel Manufacturers Trust
Fund.
(c) Rule of Construction.--The amendment made by subsection
(a) shall not be construed to affect the availability of
amounts transferred to the Wool Apparel Manufacturers Trust
Fund before the date of the enactment of this Act.
SEC. 618. DEPARTMENT OF COMMERCE STUDY.
Not later than 180 days after the date of enactment of this
Act, the Secretary of Commerce shall report to Congress
detailing--
(1) the pattern of job loss in the New England, Mid-
Atlantic, and Midwest States over the past 20 years;
(2) the role of the off-shoring of manufacturing jobs in
overall job loss in the regions; and
(3) recommendations to attract industries and bring jobs to
the region.
SEC. 619. ARRA PLANNING AND REPORTING.
Section 1512 of the American Recovery and Reinvestment Act
of 2009 (Public Law 111-5; 123 Stat. 287) is amended--
(1) in subsection (d)--
(A) in the subsection heading, by inserting ``Plans and''
after ``Agency'';
(B) by striking ``Not later than'' and inserting the
following:
``(1) Definition.--In this subsection, the term `covered
program' means a program for which funds are appropriated
under this division--
``(A) in an amount that is--
``(i) more than $2,000,000,000; and
``(ii) more than 150 percent of the funds appropriated for
the program for fiscal year 2008; or
``(B) that did not exist before the date of enactment of
this Act.
``(2) Plans.--Not later than July 1, 2010, the head of each
agency that distributes recovery funds shall submit to
Congress and make available on the website of the agency a
plan for each covered program, which shall, at a minimum,
contain--
``(A) a description of the goals for the covered program
using recovery funds;
``(B) a discussion of how the goals described in
subparagraph (A) relate to the goals for ongoing activities
of the covered program, if applicable;
``(C) a description of the activities that the agency will
undertake to achieve the goals described in subparagraph (A);
``(D) a description of the total recovery funding for the
covered program and the recovery funding for each activity
under the covered program, including identifying whether the
activity will be carried out using grants, contracts, or
other types of funding mechanisms;
``(E) a schedule of milestones for major phases of the
activities under the covered program, with planned delivery
dates;
``(F) performance measures the agency will use to track the
progress of each of the activities under the covered program
in meeting the goals described in subparagraph (A), including
performance targets, the frequency of measurement, and a
description of the methodology for each measure;
``(G) a description of the process of the agency for the
periodic review of the progress of the covered program
towards meeting the goals described in subparagraph (A); and
``(H) a description of how the agency will hold program
managers accountable for achieving the goals described in
subparagraph (A).
``(3) Reports.--
``(A) In general.--Not later than''; and
(C) by adding at the end the following:
``(B) Reports on plans.--Not later than 30 days after the
end of the calendar quarter ending September 30, 2010, and
every calendar quarter thereafter during which the agency
obligates or expends recovery funds, the head of each agency
that developed a plan for a covered program under paragraph
(2) shall submit to Congress and make available on a website
of the agency a report for each covered program that--
``(i) discusses the progress of the agency in implementing
the plan;
``(ii) describes the progress towards achieving the goals
described in paragraph (2)(A) for the covered program;
``(iii) discusses the status of each activity carried out
under the covered program, including whether the activity is
completed;
``(iv) details the unobligated and unexpired balances and
total obligations and outlays under the covered program;
``(v) discusses--
``(I) whether the covered program has met the milestones
for the covered program described in paragraph (2)(E);
``(II) if the covered program has failed to meet the
milestones, the reasons why; and
``(III) any changes in the milestones for the covered
program, including the reasons for the change;
``(vi) discusses the performance of the covered program,
including--
``(I) whether the covered program has met the performance
measures for the covered program described in paragraph
(2)(F);
``(II) if the covered program has failed to meet the
performance measures, the reasons why; and
``(III) any trends in information relating to the
performance of the covered program; and
``(vii) evaluates the ability of the covered program to
meet the goals of the covered program given the performance
of the covered program.'';
(2) in subsection (f)--
(A) by striking ``Within 180 days'' and inserting the
following:
``(1) In general.--Within 180 days''; and
(B) by adding at the end the following:
``(2) Penalties.--
``(A) In general.--Subject to subparagraphs (B), (C), and
(D), the Attorney General may bring a civil action in an
appropriate United States district court against a recipient
of recovery funds from an agency that does not provide the
information required under subsection (c) or knowingly
provides information under subsection (c) that contains a
material omission or misstatement. In a civil action under
this paragraph, the court may impose a civil penalty on a
recipient of recovery funds in an amount not more than
$250,000. Any amounts received from a civil penalty under
this paragraph shall be deposited in the general fund of the
Treasury.
``(B) Notification.--
``(i) In general.--The head of an agency shall provide a
written notification to a recipient of recovery funds from
the agency that fails to provide the information required
under subsection (c). A notification under this subparagraph
shall provide the recipient with information on how to comply
with the necessary reporting requirements and notice of the
penalties for failing to do so.
``(ii) Limitation.--A court may not impose a civil penalty
under subparagraph (A) relating to the failure to provide
information required under subsection (c) if, not later than
31 days after the date of the notification under clause (i),
the recipient of the recovery funds provides the information.
[[Page H4169]]
``(C) Considerations.--In determining the amount of a
penalty under this paragraph for a recipient of recovery
funds, a court shall consider--
``(i) the number of times the recipient has failed to
provide the information required under subsection (c);
``(ii) the amount of recovery funds provided to the
recipient;
``(iii) whether the recipient is a government, nonprofit
entity, or educational institution; and
``(iv) whether the recipient is a small business concern
(as defined under section 3 of the Small Business Act (15
U.S.C. 632)), with particular consideration given to
businesses with not more than 50 employees.
``(D) Applicability.--This paragraph shall apply to any
report required to be submitted on or after the date of
enactment of this paragraph.
``(E) Nonexclusivity.--The imposition of a civil penalty
under this subsection shall not preclude any other criminal,
civil, or administrative remedy available to the United
States or any other person under Federal or State law.
``(3) Technical assistance.--Each agency distributing
recovery funds shall provide technical assistance, as
necessary, to assist recipients of recovery funds in
complying with the requirements to provide information under
subsection (c), which shall include providing recipients with
a reminder regarding each reporting requirement.
``(4) Public listing.--
``(A) In general.--Not later than 45 days after the end of
each calendar quarter, and subject to the notification
requirements under paragraph (2)(B), the Board shall make
available on the website established under section 1526 a
list of all recipients of recovery funds that did not provide
the information required under subsection (c) for the
calendar quarter.
``(B) Contents.--A list made available under subparagraph
(A) shall, for each recipient of recovery funds on the list,
include the name and address of the recipient, the
identification number for the award, the amount of recovery
funds awarded to the recipient, a description of the activity
for which the recovery funds were provided, and, to the
extent known by the Board, the reason for noncompliance.
``(5) Regulations and reporting.--
``(A) Regulations.--Not later than 90 days after the date
of enactment of this paragraph, the Attorney General, in
consultation with the Director of the Office of Management
and Budget and the Chairperson, shall promulgate regulations
regarding implementation of this section.
``(B) Reporting.--
``(i) In general.--Not later than July 1, 2010, and every 3
months thereafter, the Director of the Office of Management
and Budget, in consultation with the Chairperson, shall
submit to Congress a report on the extent of noncompliance by
recipients of recovery funds with the reporting requirements
under this section.
``(ii) Contents.--Each report submitted under clause (i)
shall include--
``(I) information, for the quarter and in total, regarding
the number and amount of civil penalties imposed and
collected under this subsection, sorted by agency and
program;
``(II) information on the steps taken by the Federal
Government to reduce the level of noncompliance; and
``(III) any other information determined appropriate by the
Director.''; and
(3) by adding at the end the following:
``(i) Termination.--The reporting requirements under this
section shall terminate on September 30, 2013.''.
TITLE VII--BUDGETARY PROVISIONS
SEC. 701. BUDGETARY PROVISIONS.
(a) Statutory Paygo.--The budgetary effects of this Act,
for the purpose of complying with the Statutory Pay-As-You-Go
Act of 2010, shall be determined by reference to the latest
statement titled `Budgetary Effects of PAYGO Legislation' for
this Act, jointly submitted for printing in the Congressional
Record by the Chairmen of the House and Senate Budget
Committees, provided that such statement has been submitted
prior to the vote on passage in the House acting first on
this conference report or amendment between the Houses.
(b) Emergency Designations.--Sections 501, 511, and 516--
(1) are designated as an emergency requirement pursuant to
section 4(g) of the Statutory Pay-As-You-Go Act of 2010
(Public Law 111-139; 2 U.S.C. 933(g));
(2) in the House of Representatives, are designated as an
emergency for purposes of pay-as-you-go principles; and
(3) in the Senate, are 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.
The SPEAKER pro tempore. The motion shall be debatable for 1 hour,
equally divided and controlled by the chair and ranking minority member
of the Committee on Ways and Means.
The gentleman from Michigan (Mr. Levin) and the gentleman from
Michigan (Mr. Camp) each will control 30 minutes.
The Chair recognizes the gentleman from Michigan (Mr. Levin).
Mr. LEVIN. Mr. Speaker, I yield myself 4 minutes.
We will be voting on two amendments. I want to comment first on that
relating to jobs. It is major job legislation. Included are billions
for financing infrastructure, Build America Bonds. And here is what one
school district said. I read it because it applies to school districts,
to communities, to people throughout this country.
The Build America Bonds have been used in virtually every State,
probably in most counties. Here is what one superintendent said.
``Build America Bonds proved to be a brass tacks approach to address
critical needs in our school district such as new school buses, roof
replacements, and technology upgrades. Relief provided by BABs allowed
us to ensure taxpayers a lower interest rate while at the same time
putting people to work.''
There is also authority for other important bonds. There are tax
incentives in this bill for business relating to jobs. The R&D tax
credit, the biodiesel tax credit. There is a provision, it's an
incentive for retailers to invest in their real estate, infrastructure,
building jobs, and also provisions to help U.S. companies compete
overseas, not taking their jobs overseas, and allowing manufacturers to
use AMT tax credits, otherwise unused for investment in the United
States of America and for jobs in the United States of America.
SBA loans to small businesses, summer jobs programs, overall more
than $26 billion here for job creation, as well as for individual tax
relief.
We essentially pay for this bill with a provision where you invest
your own money, you get a capital gains. If you manage other people's
money, ordinary income. We phase it in so that there will be a period
of time for this to occur, as well as closing loopholes in the use of
foreign credit so companies don't shift their jobs overseas.
The second part of this amendment relates to unemployment insurance.
I will say this very, very briefly. Those who vote ``no'' are
essentially going to say to millions of workers in this country, Your
benefits will not be available even though you are looking for work.
The second amendment relates to SGR, and this relates not only to
physicians, but most importantly to the families that they treat. If we
don't act, there will be a 21 percent cut in reimbursement for
physicians and also for military families. Now, this is provided by
statutory PAYGO.
{time} 1145
So colleagues, the choice is clear. This is about American jobs, this
is for unemployment for those looking for work who can't find it, and
it's for physicians to avoid a 21 percent cut. This is not only about
physicians, but their patients under Medicare.
We must act; we must move on this now. The Senate will then have to
move quickly when they return. We must stand on the side of supporting
American jobs and preventing outsourcing of those jobs.
Mr. Speaker, I reserve the balance of my time.
Mr. CAMP. Mr. Speaker, I yield myself such time as I may consume.
Let's be clear about what we are doing here today, and, that is,
absolutely nothing. This bill is going nowhere. It will not be signed
into law, and it will be totally rewritten in the Senate. Majority
Leader Reid made that perfectly clear on the floor of the Senate last
night. So if you want to walk a $54.2 billion deficit-increasing, tax-
hiking, job-killing plank, vote ``yes.'' If not, vote ``no.''
Let's also be clear that this bill has nothing to do with jobs. In
fact, virtually every business group is opposed to this package: the
Chamber of Commerce, Home Builders, Associated General Contractors, the
National Federation of Independent Businesses, the National Association
of Manufacturers, and the list goes on and on. Employers across the
country say this bill will hurt our economic recovery. With employment
stuck at nearly 10 percent, this is the last bill this House should be
passing.
And here we are addressing yet another fundamental flaw in the
Democrats' health care overhaul. Had the Democrats not hidden the true
cost of that law, we would not be here today voting on another so-
called ``doc fix,'' a fix that expands the deficit by $22.9 billion,
kicks the can 19 months down the road, has doctors facing a 33 percent
cut in 2012, and will force us to spend billions more. We could have
paid for a much better package--like the ones the Republicans offered
on the House floor last fall--by simply standing up to the trial
lawyers and passing commonsense lawsuit reform.
[[Page H4170]]
Let's also be honest about the real deficit impact because it is
much, much more than the $54.2 billion we have before us. Every Member
of this House knows we will be back voting again to increase the
deficit in order to again extend these programs and to extend COBRA and
FMAP subsidies, both of which were deleted from the bill early this
morning. Now, whether you eat the cookie in one bite or several little
bites, it has the same number of calories. We owe it to ourselves and
to the American people to be honest about just how much deficit
spending we're being asked to swallow.
Given that this bill adds $54.2 billion to the deficit but is somehow
PAYGO compliant, I think we can officially declare dead the myth that
PAYGO will instill fiscal discipline.
So just what are we getting for this deficit spending? Not jobs and
not tax cuts. There is no net tax relief before us today. In fact, the
Democrats are imposing permanent tax increases at the worst possible
time to pay for temporary extensions of current law.
There is a $17.7 billion tax on carried interest, including real
estate partnerships and venture capital firms, that would discourage
the entrepreneurial risk-taking that is crucial to economic growth and
job creation.
The proposed tax on small business income is perhaps even more
troubling. President Obama himself claims that 70 percent of new jobs
come from small businesses, yet the bill would increase taxes on
certain small businesses by subjecting to employment taxes the business
profits as opposed to wages.
The bill also includes more than a half dozen complex changes to our
international tax rules. These new changes collectively raise close to
$15 billion but have not been reviewed by the Ways and Means Committee.
Given the desperate shape of our economy and the need to remain
competitive with other countries, we should not be rushing forward with
massive tax increases without knowing their exact impact.
I urge my colleagues to vote ``no'' on increasing the deficit by over
$50 billion and to vote ``no'' on raising taxes permanently when
unemployment is stuck at nearly 10 percent.
Mr. Speaker, I reserve the balance of my time.
Mr. LEVIN. Mr. Speaker, it is now my privilege to yield 2 minutes to
the distinguished chairman of the Energy and Commerce Committee, Mr.
Waxman.
(Mr. WAXMAN asked and was given permission to revise and extend his
remarks.)
Mr. WAXMAN. I want to urge my colleagues to vote for the part of this
legislation that would update the SGR, which is the payment for
physicians under the Medicare program. It's absolutely critical to do
this if we are going to keep doctors in Medicare and keep the promise
to Medicare beneficiaries that they will have access to physicians'
services.
This provision will provide a moderate increase in physician fees,
2.2 percent for the rest of this year, another 1 percent next year. If
we don't act, doctors' fees will be cut by 21 percent from where they
are today. This would be unconscionable.
The truth is we should be doing a lot more than this. We should have
had a permanent fix of the SGR issue. We need to ensure stability for
the Medicare patients and their doctors. After we pass this, we will go
back and address that issue, but it is important that we adopt the SGR
part.
Finally, I want to express my deep regret that we are not including
two provisions that are essential to the fiscal security of those
hardest hit by the recession: an extension of COBRA coverage and a 6-
month extension of the Medicaid matching increase that helps States
cope with the effects of this recession. Failing to do this will cost
jobs and hurt vulnerable people. I hope this is not our final action on
this subject.
At least let's do what we can today. Support the physician payment
improvement and support the bill.
In addition, here is some additional specific information about the
new 340B-1 program. Under it, covered entities will receive discounts
on covered inpatient drugs in cases where the drug is provided to a
patient who does not have health insurance coverage that provides
prescription drug coverage in the inpatient setting with respect to
such covered drug.
The intent of Congress is that the Secretary implement and operate
the 340B and 340B-1 programs in such a manner as to minimize the burden
for providers and manufacturers who will be participating in both
programs, and ensure the efficiency and integrity of the programs.
Thus, 340B-1 Program has been specifically designed to permit the
Secretary to operate it under the same general rules and conditions as
the 340B Program.
To the extent that a drug is a covered drug under both the 340B and
340B-1 program, the drug's AMP and ceiling price are required to be the
same in each program. If a drug is a covered drug in the 340B-1
program, but not the 340B program, the Secretary must use methods to
determine the AMP or ceiling prices that are the same, or as
applicable, similar to, the methods that would be used to make these
calculations under the 340B program.
Two unique aspects of the 340B-1 inpatient drug program present
challenges for hospitals and other participating entities. In many
cases inpatient drugs are often included, for billing and other
purposes, as part of a bundled price for medical procedures. In
addition, 340B-1 discounted inpatient drugs are only available for
patients that do no have health plan coverage that provides
prescription drug coverage in the inpatient setting with respect to
such covered drug. However, in many cases, particularly in emergency
situations, hospitals or other participating entities might have no
knowledge of a patient's insurance status (or information about whether
a patient has health plan coverage that covers a drug in the inpatient
setting) at the time the drug is administered. The Committee intends
that in implementing this section, HRSA take these unique circumstances
into account and act to make certain that participating entities can
fully participate and receive discounts for all covered drugs in the
340B-1 program.
Section 518 contains a conforming amendment to section 340B(A)(1) of
the Public Health Services Act regarding circumstances where the supply
of a 340B drug is insufficient to meet demand. New paragraphs 340B-
1(a)(1)(B) and 340B-1(a)(1)(C) contain identical language. These
paragraphs in sections 340B and 340B-1 contain ``must offer'' language.
Under these 340B and 340B-1 ``must offer'' provisions, manufacturers
may not discriminate against or refuse to sell to 340B or 340B-1
entities at the 340B or 340B-1 price. The intent of these provisions is
to codify HRSA's current approach to handling the ``must offer''
provisions of the 340B law, and to require that HRSA use this same
approach for drugs covered under section 340B-1. Under this current
HRSA approach, codified in this legislation, in cases where there may
be a drug shortage, 340B and 340B-1 entities do not automatically go to
the front of the line. But the manufacturer cannot send them to the
back of the line either. With regard to supply shortages and drug
availability, manufacturers must treat 340B and 340B-1 entities the
same way they treat all their other customers. This language also
contains a requirement for Secretarial approval of manufacturers' plans
for cases where drug shortages exist. The timing of these approvals is
at the discretion of the Secretary.
New section 340B-1 and a conforming amendment to section 340B allow
the HHS Secretary to combine manufacturers' agreements for the 340B and
340B-1 program. However, unless specifically mentioned in the 340B
conforming amendments in this legislation, this legislation is not
intended to change the operations of the 340B program.
Nothing in section 340B or 340B-1 requires that hospitals and other
qualifying entities participate in both the 340B and 340B-1 program.
Participating entities may, at their discretion, participate in either,
neither, or both programs.
Mr. CAMP. Mr. Speaker, I yield 3 minutes to the gentleman from
Indiana (Mr. Pence).
(Mr. PENCE asked and was given permission to revise and extend his
remarks.)
Mr. PENCE. I thank the gentleman for yielding and for his outstanding
leadership.
This is a challenging time in the life of this country. Families are
hurting, businesses in the city and on the farm are struggling. It's
the worst recession in the last 25 years, and from Washington, D.C.,
failed economic policies.
So what do you do after your Big Government stimulus bill is a
failure? Well, apparently the answer in this Congress is pass another
one. Really, seriously. About a year and a half ago, with the support
of this administration, Democrats in Congress passed a $1 trillion
stimulus bill. Unemployment was at 7.5 percent, and we were told we had
to borrow $1 trillion from future generations of Americans for this
liberal wish list of spending priorities or unemployment would go over
8 percent. Unemployment now, as we all
[[Page H4171]]
know, is hovering at a painful 10 percent.
But after the stimulus bill was passed and failed, we came to March
of this year, and the Democrats' answer was pass another stimulus bill
built on the same economic policies, the HIRE Act, $17.6 billion. And
now after the ``stimulus'' bill and after ``son of stimulus'' bill, we
are now considering ``grandson of stimulus,'' and the American people
are getting tired of it.
Democrats literally want us to take the same failed economic policies
of this administration of the last year and a half and spend another
$102 billion. This ``grandson of stimulus'' is another last-minute,
patched-together hodgepodge effort to say they're working on jobs that
will tack $54 billion onto our deficit and will increase taxes by more
than $47 billion. They throw on $23 billion in there for a doc fix with
no offsets. This is what Democrats actually kept out of the recent
health care legislation to keep it under it's so-called ``$1 trillion''
number. It really doesn't fix anything.
As the ranking member of the committee just said, we've got temporary
extensions paid for with permanent tax increases, and the American
people are catching on. But this is what happens when a Democrat
majority has no budget and no plan and no vision to get America working
again. We've seen this movie before: ``Stimulus'' fails, ``Son of
Stimulus'' fails, and now, as we all prepare to leave the Congress this
weekend and remember those who fell defending our freedom at home and
abroad, ``Grandson of Stimulus'' is on the floor.
Look, it's time for some new ideas here on the floor. I say to my
colleagues, men and women that I respect, who have all earned the right
to be here, why don't we try something completely different. How about
fiscal discipline in Washington, D.C. right now? And how about let's do
what John F. Kennedy did; let's do what Ronald Reagan did: across-the-
board tax relief for working families, small businesses, and family
farms. Get government under control, get government out of the way, and
this economy will come roaring back.
Mr. LEVIN. It is now my privilege to yield 2 minutes to the chairman
of the Transportation and Infrastructure Committee--this is about
infrastructure and transportation--Jim Oberstar.
=========================== NOTE ===========================
May 28, 2010 on Page H4171 the following appeared: ture and
transportation- Ken Oberstar
The online version should be corrected to read: ture and
transportation- Jim Oberstar
========================= END NOTE =========================
Mr. OBERSTAR. Thank you, Mr. Chairman.
I strongly support this legislation extending Build America bonds and
marketable distribution of highway funding. Build America bonds allow
taxable bond access for State and local governments, create new types
of investors, and attract them to infrastructure from pension funds and
tax-exempt organizations.
This bill also provides $521 million in highway funding for highway
and transit for more equitable distribution of Federal funding than was
adopted under the Senate language in the HIRE Act.
The Senate revisions earmark funding under two major discretionary
programs--Projects of National Regional Significance and the National
Corridor Program--for a small select group of States. Under our
distribution, we revise and make equitable the Senate revisions which
skewed the highway formula. Under this provision in this bill, every
State receives its fair share, apportionment share, of the funds
available under these programs.
Thirty-seven States will receive more highway and transit funding
through this modification, which will produce thousands of jobs across
all these States, 18,000 jobs. In contrast to the gentleman who just
recently was before me and said, oh, the stimulus hasn't produced jobs,
every month our committee has held a hearing--I have chaired 19
hearings--every month to hold States accountable for the jobs produced
under our stimulus program: 1,300,000 jobs, 34,000 lane miles of
highway improved, 1,262 bridges repaired, replaced or rebuilt, 10,000
transit buses acquired by local transit agencies, $409 million in taxes
paid by workers on job sites. That is a success. That is putting
America back to work.
I rise today in strong support of H.R. 4213, the ``American Jobs and
Closing Tax Loopholes Act of 2010''.
The American Jobs Act includes two major provisions to increase
investment in our nation's infrastructure: (1) an extension of
authority for Build America Bonds and (2) provisions to require a more
equitable distribution of certain categories of Federal highway
funding.
H.R. 4213 extends the Build America Bonds program for 2 years,
through 2012. Build America Bonds were first authorized by the American
Recovery and Reinvestment Act of 2009 to assist State and local
governments in accessing credit markets in the wake of the financial
crisis. Specifically, Build America Bonds allow State and local
governments to access the taxable bond market, thereby reaching new
types of investors such as pension funds and tax-exempt organizations.
By giving State and local governments a choice between accessing the
tax-exempt municipal bond market and the taxable bond market to meet
their financing needs, Build America Bonds allow State and local
governments to select the bond market that provides the lowest
financing cost, and the biggest bang for the buck.
Build America Bonds have proven to be an important tool for State and
local governments to finance much-needed infrastructure improvements.
As of April 30, 2010, State and local governments have used Build
America Bonds to finance more than $96 billion in infrastructure
projects, including improvements to schools, hospitals, water and sewer
utilities, highways, transit, and airports. I strongly support the
extension of this program.
H.R. 4213 also provides an additional $521 million of highway funding
to allow for a more equitable distribution of certain categories of
Federal highway funding than the distribution of highway funding
provided under the Hiring Incentives to Restore Employment (HIRE) Act.
In March, the majority of the House voted to pass the HIRE Act based,
in part, on an express commitment by Senate Majority Leader Reid that
the Senate would pass subsequent jobs legislation to distribute highway
funding more equitably--according to the House formula.
The highway formula provisions in this jobs bill implement Majority
Leader Reid's commitment. I thank him, Speaker Pelosi, and Majority
Leader Hoyer for their tireless work to resolve this issue and provide
each State and highway program with a fair share of highway formula
funding.
I would also like to thank the 55 Democratic first- and second-term
Members, led by the gentleman from New York (Mr. McMahon) and the
gentleman from Ohio (Mr. Driehaus), and the Members of the Committee on
Transportation and Infrastructure, led by the gentlewoman from Texas
(Ms. Johnson), the gentleman from Michigan (Mr. Schauer), and the
gentleman from Ohio (Mr. Boccieri), for their instrumental work in
spearheading efforts to marshal support for enactment of the highway
formula provisions included in H.R. 4213. In addition, I thank the
Members of the Illinois, California, and other affected State
delegations for helping us reach the compromise that we bring to the
Floor today.
The Senate revisions of the HIRE Act earmarked funding under two
major highway discretionary programs--the Project of National and
Regional Significance, PNRS, program and the National Corridor
Infrastructure Improvement, National Corridor, program--for a small,
select group of States. Under this distribution, four States received
58 percent of the funding and 21 States received nothing.
The treatment of these programs in the Senate revisions of the HIRE
Act skewed the highway formula, significantly benefitting four States
with a permanent windfall due to these earmarks.
The provisions in H.R. 4213 revise the distribution of PNRS and
National Corridor program funding so that every State receives a fair
share of the funds made available under these programs. Specifically,
H.R. 4213 provides each State with a share of the PNRS and National
Corridor funds equal to the greater of that which the State received
under the HIRE Act or under H.R. 4213, the American Jobs Act.
Thirty-seven States receive more highway dollars based on the
modification to the distribution of highway formula funding included in
H.R. 4213. This new highway funding will produce thousands of jobs
across these States--jobs that are critically important to the
construction sector currently suffering from 21.8 percent unemployment.
Under the Recovery Act, we have clearly seen States demonstrate their
ability to put highway and transit dollars to work quickly to create
and sustain jobs--322,000 direct, on-project jobs in the first year of
the Recovery Act and 49,000 direct jobs last month alone. In total,
these highway and transit funds have created and sustained more than 1
million jobs over the past year.
[[Page H4172]]
In December, the American Association of State Highway and
Transportation Officials reported to our Committee that States
currently have a backlog of 7,497 ready-to-go highway and bridge
projects totaling $47.3 billion.
Given the States' extraordinary performance under the Recovery Act
and the overwhelming highway investment needs, we can expect that the
highway funding provided under H.R. 4213 will result in hundreds of
projects under contract--with shovels in the ground--within 90 days.
Based upon Federal Highway Administration estimates, the $521 million
of additional funding provided under H.R. 4213 will create more than
18,000 family-wage jobs.
The HIRE Act also distributed ``additional'' formula funding
(provided in lieu of additional Congressionally-directed projects)
among only six of 13 current State highway formula programs.
In doing so, it effectively designated seven programs--the
Appalachian Development Highway System, Rail-Highway Grade Crossing,
Equity Bonus, Recreational Trails, Safe Routes to School, Coordinated
Border Infrastructure, and Metropolitan Planning programs--as ``second
tier'' programs, providing them less funding in FY 2010 and FY 2011 and
weakening their standing during the ongoing authorization process.
The highway provisions in H.R. 4213 appropriately recognize the
standing of all of the current highway formula programs: distributing
``additional'' formula funding through all current State highway
formula programs, rather than just six. This modification is critically
important to the Appalachian Development Highway System, Metropolitan
Planning, and Safe Routes to School programs.
Today narks the third time that the House will vote on language to
revise the HIRE Act's highway funding distribution, which this chamber
has twice passed language to amend. With the rock-solid commitment of
the House Democratic Leadership and Senate Majority Leader Reid, I look
forward to enacting the highway formula modifications included in H.R.
4213 and providing every State with a fair share of the funds
distributed under these programs as they begin to move forward with
their summer highway construction seasons.
I urge my colleagues to join me in supporting H.R. 4213, the
``American Jobs and Closing Tax Loopholes Act of 2010''.
Attached is a state-by-state highway funding table outlining the
additional funding provided by H.R. 4213.
Highway and Bridge Formula Funding by State Under Surface
Transportation Extension Acts HIRE Act VS. H.R. 4213, the ``American
Jobs Act Of 2010''--May 27, 2010
37 STATES FARE BETTER UNDER THE AMERICA JOBS ACT THAN UNDER THE HIRE ACT
[No State receives less under the American Jobs Act than under the HIRE Act]
----------------------------------------------------------------------------------------------------------------
H.R. 4213, Increase/
State HIRE act \1\ American jobs act (decrease) Under
\2\ H.R. 4213
----------------------------------------------------------------------------------------------------------------
Alabama................................................ $1,160,135,018 $1,178,768,813 $18,633,795
Alaska................................................. 700,070,601 703,484,406 3,413,805
Arizona................................................ 1,119,833,846 1,137,317,569 17,483,723
Arkansas............................................... 780,938,284 780,938,284 0
California............................................. 5,548,334,984 5,548,334,984 0
Colorado............................................... 808,562,089 808,562,089 0
Connecticut............................................ 771,124,583 774,468,106 3,343,523
Delaware............................................... 254,115,413 258,166,183 4,050,770
Dist. of Col........................................... 241,637,283 241,637,283 0
Florida................................................ 2,901,459,068 2,948,516,503 47,057,435
Georgia................................................ 1,991,725,595 2,023,498,871 31,773,276
Hawaii................................................. 258,011,916 262,133,940 4,122,024
Idaho.................................................. 436,473,412 443,558,991 7,085,579
Illinois............................................... 2,133,468,322 2,133,468,322 0
Indiana................................................ 1,454,478,216 1,473,826,863 19,348,648
Iowa................................................... 721,928,309 731,252,426 9,324,118
Kansas................................................. 582,189,917 591,518,358 9,328,441
Kentucky............................................... 1,012,890,986 1,027,305,950 14,414,964
Louisiana.............................................. 1,045,633,419 1,045,633,419 0
Maine.................................................. 280,240,625 284,757,226 4,516,601
Maryland............................................... 918,077,359 930,393,685 12,316,326
Massachusetts.......................................... 935,232,711 950,187,222 14,954,511
Michigan............................................... 1,628,896,250 1,649,577,451 20,681,201
Minnesota.............................................. 969,838,993 969,838,993 0
Mississippi............................................ 730,280,701 740,066,612 9,785,911
Missouri............................................... 1,422,349,455 1,444,428,478 22,079,023
Montana................................................ 595,326,967 604,421,087 9,094,120
Nebraska............................................... 439,714,255 446,827,117 7,112,863
Nevada................................................. 509,981,437 517,716,094 7,734,658
New Hampshire.......................................... 255,499,273 259,619,857 4,120,584
New Jersey............................................. 1,522,180,325 1,522,180,325 0
New Mexico............................................. 558,845,157 564,388,783 5,543,626
New York............................................... 2,585,021,983 2,601,114,874 16,092,891
North Carolina......................................... 1,600,085,980 1,625,905,549 25,819,569
North Dakota........................................... 376,542,187 382,541,944 5,999,758
Ohio................................................... 2,046,630,272 2,071,931,711 25,301,439
Oklahoma............................................... 958,778,621 958,778,621 0
Oregon................................................. 747,025,067 747,025,067 0
Pennsylvania........................................... 2,533,737,942 2,561,421,751 27,683,809
Rhode Island........................................... 328,209,791 333,303,797 5,094,006
South Carolina......................................... 960,038,143 962,956,224 2,918,081
South Dakota........................................... 423,697,858 430,371,013 6,673,155
Tennessee.............................................. 1,286,665,098 1,286,665,098 0
Texas.................................................. 4,835,326,375 4,912,212,474 76,886,099
Utah................................................... 482,941,887 490,736,905 7,795,018
Vermont................................................ 299,846,556 304,031,221 4,184,665
Virginia............................................... 1,550,364,905 1,550,364,905 O
Washington............................................. 1,021,098,782 1,021,098,782 0
West Virginia.......................................... 660,653,936 660,653,936 0
Wisconsin.............................................. 1,135,046,618 1,138,278,090 3,231,471
Wyoming................................................ 389,303,475 395,692,926 6,389,451
--------------------------------------------------------
Total.............................................. 58,910,490,244 59,431,879,178 521,388,934
----------------------------------------------------------------------------------------------------------------
\1\ The Surface Transportation Extension Act of 2010, title IV of P.L. 111-147, the ``Hiring Incentives to
Restore Employment Act'' (HIRE Act).
\2\ H.R. 4213, the ``American Jobs and Closing Tax Loopholes Act of 2010''.
This table was prepared by the Committee on Transportation and Infrastructure Majority staff based on technical
assistance provided by the Federal Highway Administration.
2Mr. CAMP. Mr. Speaker, I yield 2 minutes to the distinguished member
of the Ways and Means Committee, the gentleman from California (Mr.
Herger).
Mr. HERGER. Mr. Speaker, I rise in opposition to this ``deficit
extenders'' bill. There is no dispute that items such as unemployment
insurance, Medicare physician payment, and R&D tax credits need to be
addressed. However, the legislation before us exemplifies an odd view
of fiscal responsibility. We don't have to pay for new spending, but
every time we temporarily extend existing tax cuts, we have to
permanently increase other taxes.
Despite the majority's pay-as-you-go rhetoric, this bill adds $54
billion to our out-of-control budget deficit. It also imposes a number
of new taxes
[[Page H4173]]
that have not been examined by the tax writing Ways and Means
Committee. These include an $11 billion payroll tax hike on small
businesses, as well as the carried interest tax increase that threatens
to devastate the commercial real estate and venture capital industries,
both of which are vital to my State of California.
{time} 1200
The majority would like to characterize this as a ``jobs bill.'' Yet
the truth is that virtually all of the policies in this bill were
already in place throughout 2009, the same year our economy lost 3
million jobs.
This is not a jobs bill. It's just another extension of the ``tax-
too-much, spend-too-much, borrow-too-much'' philosophy that we have
come to expect from this Democratic majority.
I urge the defeat of this bill.
Mr. LEVIN. It is now my privilege to yield 2 minutes to the very
distinguished gentleman from New York, Charles Rangel.
(Mr. RANGEL asked and was given permission to revise and extend his
remarks.)
Mr. RANGEL. One would listen to this debate and believe that it's
only Democrats who have an economic problem that we're facing. It's
almost embarrassing to listen to the minority talk about the deficit
and not even explain how we got into this deficit.
I want to congratulate the chairman of our committee, as well as our
leader.
It's very, very difficult for this Congress and for this country to
move forward the way that we should and to ease the pain of the fiscal
crisis that was created by the previous administration when you're
acting alone.
It would just seem to me that Republicans have to learn to understand
that people have lost their jobs, that people need health care, that
people who really lost their homes are not Democrats and Republicans.
They are Americans.
I think that we should get fed up just with placing blame. I don't
remember the last time I mentioned ``Ford'' and ``Cheney,'' because
this is not going to help us in terms of where we're going. If you're
talking about health care, the Republicans say ``no.'' If you're
talking about education, the Republicans say ``no.'' If you're talking
about easing the pain of those people who have lost their jobs, their
dignity, their ability to put food on their tables, then we have to
find some way to work together so that the answers we give are able to
give some comfort to people, are able to bring jobs back to the United
States of America, and are able to make certain, when we have
inequities in our tax system, that we move forward and not say we're
increasing taxes but that we're trying to make the tax system fairer.
So, somewhere along the line, people are going to get fed up with the
blame game. We're trying to move forward on this bill here to create
the jobs, to ease the pain of those who haven't got the jobs, and to
bring some type of equity to our tax system.
Just saying ``no'' is not going to work forever. It does not have a
political base, but the time is not too late for us to take a look and
ask whether or not our Governors really appreciate the fact that we are
ignoring the burden that we are placing on them in providing health
care.
Vote for this bill. It's the best we can do at this point in time.
Mr. CAMP. Mr. Speaker, I yield 2 minutes to a distinguished member of
the Ways and Means Committee, the gentleman from Texas (Mr. Brady).
Mr. BRADY of Texas. Mr. Speaker, sadly, this isn't a jobs bill. This
is pork barrel spending wrapped in tax increases and dipped in debt to
China, and the way it treats our local doctors, like beggars, is just
shameful.
Continuing to tax and spend like we are Greece is not the answer to
getting people back to work or to tackling this growing and dangerous
debt, especially when you have tax increases that kill jobs for our
small businesses, for our real estate, and for our U.S. companies that
are trying to compete overseas.
This is alarming. Sometime this weekend, America's debt will reach
$13 trillion for the first time in our history; $13 trillion. So who is
responsible for running up all this debt?
A new report by the Joint Economic Committee shows that, since 1946,
congressional Democrats have added twice as much to America's debt than
have Republicans. They like to blame Bush or Reagan or anyone else for
the staggering debt, but they are squarely to blame for generating two-
thirds of the Federal debt that American families must now repay
through higher taxes or a slower economy, and they're just getting
started.
Our national debt is 83 percent of our economy. It's whoppingly huge.
It's going to grow to over 100 percent under the Obama budget. Unless
we stop congressional Democrats and President Obama from spending us
even deeper into a hole, future generations of Americans will be
dragging an anchor of debt that will drown their dreams and cripple our
Nation's prosperity.
We can start today by preventing another $54 billion in spending we
can never hope to repay and that our children can never hope to repay--
$54 billion--larger than our agencies of Treasury, Commerce, and Social
Security combined.
So new debt, new tax increases, job-killing provisions. Let's stop
the madness. Let's say ``no'' to this bill and ``yes'' to real jobs.
Mr. LEVIN. Mr. Speaker, I yield 2 minutes to a member of the Ways and
Means Committee, the gentleman from Maryland (Mr. Van Hollen).
Mr. VAN HOLLEN. Mr. Speaker, this bill supports the efforts of
American entrepreneurs and of American businesses to create jobs here
at home, and at the same time, it closes down perverse tax loopholes
that encourage big corporations to ship American jobs overseas.
On the plus side, it invests and encourages investments in research
and development by businesses right here at home, which are provisions
that our colleagues have supported in the past. It invests in the very
successful Build America Bonds initiative that has driven new
investment in roads, in bridges, and in essential infrastructure here
at home. It pays for all of these investments by eliminating a number
of loopholes in the Tax Code, including a very awful loophole that
encourages big corporations to export, not American products, but
American jobs.
Very simply, Mr. Speaker, creative corporate tax lawyers have devised
a way to have American taxpayers, our constituents, foot the bill for
the taxes that their corporations pay to foreign governments for their
overseas operations. Think about that. We don't pay for the taxes that
American corporations have to pay for jobs here at home and earnings
here at home. Yet our constituents are footing the bill for taxes
American corporations pay to foreign governments for jobs created
overseas. That creates a terrible incentive for big American
corporations to move jobs and operations away from the United States.
It is a great deal for big corporations, and we understand why they
want to protect those loopholes, but it is a lousy deal for American
workers and American taxpayers.
The choice we face here is very clear: A vote against this bill is a
vote against investing in jobs in America and in favor of protecting
loopholes to offshore American jobs.
I urge my colleagues to support this bill and to support America's
small businesses and America's jobs.
Mr. CAMP. Mr. Speaker, I submit for the Record a list of all of the
American businesses that oppose this bill because it will cost us
American jobs.
Job Creators Oppose Democrats' Deficit Extender Bill
Cite Concerns that Provisions Will Hinder Job Creation, Decrease
Competitiveness of American Businesses
Since Democrats introduced their latest version of H.R.
4213, ``The American Jobs and Closing Tax Loopholes Act,''
business leaders and organizations that represent millions of
American businesses and their employees have voiced their
opposition to the job-killing, deficit extending bill. These
employers say that the legislation is anti-job growth, will
place American businesses at a worldwide competitive
disadvantage, subject them to higher taxes and will harm the
nation's path to economic recovery.
Given the disconnect between House Democrats' rhetoric on
jobs and their votes for tax increases, it is no wonder
employers are confused, new investments aren't being made and
unemployment continues to hover at close to 10 percent. Below
are just some of the concerns expressed by employers.
U.S. Chamber of Commerce: ``However, Congress' decision
with this legislation, to saddle small business, American
worldwide companies, and investment partnerships with
draconian tax increases that will hinder job creation,
decrease the competitiveness of American businesses, and
deter economic
[[Page H4174]]
growth, leaves the Chamber no choice but to oppose this
legislation as currently drafted.''
Business Roundtable: ``These tax increases would take us
two steps backwards in terms of the job-creating legislation;
we strongly need to move our economy forward, not backwards,
to stay competitive with the rest of the world.''
National Association of Home Builders: ``NAHB estimates
that the economic impact of taxing carried interest as 100
percent ordinary income would be a loss of 33,000 jobs due to
reduced multifamily rental housing construction and $1.2
billion in reduced annual property tax revenues to state and
local governments.''
National Association of Manufacturers: ``Unfortunately, the
onerous tax increases...could outweigh the benefits of the
pro-growth changes by imposing significant new costs on
American businesses and threatening job creation, U.S.
competitiveness and overall economic growth.''
Associated General Contractors: ``Unfortunately, the bill
reduces the effectiveness of these provisions by reducing
capital available for private construction and limiting
private job creation by increasing taxes on many small
businesses in the construction industry.''
National Foreign Trade Council: ``These new revenue
proposals will make American businesses less able to compete
in foreign markets, will subject them to double taxation, and
as a result may have significant negative consequences on
worldwide American businesses and their U.S. employees.''
Promote America's Competitive Edge: ``The proposed changes
in the international tax rules will make a bad situation
worse, making it even more difficult for American worldwide
companies to compete.''
Technology CEO Council: ``At a time when innovative
companies are looking for more certainty and stability, the
extenders bill as currently drafted fails to provide either .
. . last-minute proposals to raise revenue could outweigh the
bill's positive aspects, possibly costing--not creating--
jobs.''
IBM: ``The pending legislation would impose significant new
tax increases that will completely overwhelm any positive
economic effect of the R&D tax credit, harming the U.S.
economy just as recovery has begun.''
Black Entertainment Television Founder Robert Johnson: ``In
my opinion, this legislation would cause a rapid decline in
minority private equity firms and possibly eliminate minority
participation in this important financial sector of the
American economy . . . If minority funds are reduced or
eliminated it will also impact investments in urban cities
and job creation and economic development in markets where it
is most needed.''
Finance Executives International: ``With more Americans out
of work than any other time in the last 50 years, businesses
in the U.S. have an obligation to get our citizens back to
work. Other countries seem to understand this call to action,
and are working tirelessly to lower tax rates and bring in
businesses from around the globe. By passing H.R. 4213, the
United States would be harming the competitiveness of
American worldwide companies.''
Emergency Committee for American Trade: ``H.R. 4213 will
undermine U.S. commercial engagement overseas and put U.S.
enterprises and their workers at an even greater competitive
disadvantage . . . H.R. 4213 is a major step in the wrong
direction.''
Silicon Valley Leadership Group: ``We are concerned that
the recent revenue off-sets are being used as `pay-fors' at
the expense of U.S. jobs.''
Real Estate Roundtable: ``Capital formation is what leads
to job and tax base creation--this proposal would discourage
it. Now is not the time to raise taxes. The tax hike will
further delay economic recovery and make financing and
refinancing more difficult.''
S Corporation Association of America: ``It represents an
$11 billion tax hike on employers in the middle of a very
difficult economy, and it should be rejected.''
Organization for International Investment: ``[S]everal of
the international proposals in the Amendment may diminish the
ability of foreign multinationals to continue making
significant contributions to the U.S. economy and U.S.
employment.''
Investment Company Institute: ``Congressional action at
this time would be both redundant and counterproductive.''
I yield 3 minutes to a distinguished member of the Ways and Means
Committee, the gentleman from Georgia (Mr. Linder).
Mr. LINDER. I thank my friend for yielding.
Mr. Speaker, I rise in opposition to this deficit extender bill.
This bill reflects the American people's rejection of the even more
expensive bill Democrat leaders wanted to pass this week but couldn't,
so now they're searching for an exit strategy and, mostly, for someone
else to blame for their inability to govern.
Let us be clear: This charade is an effort to entice Republicans into
defeating an unpaid-for bill. The Senate is gone. The door is closed.
Nothing is going to come of this bill irrespective of who votes for or
against it.
The title suggests its authors think this bill is about jobs. One
expert at the Urban Institute calls that ``Orwellian'' and ``hideously
mislabeled.'' From a taxpayer perspective, this is not about jobs. It
is about more government spending, more debt, more taxes. That means
fewer private-sector jobs.
This bill is also an admission that the trillion-dollar 2009 stimulus
plan has failed. We were told that, if we passed that plan,
unemployment would be 7.4 percent and falling, not 9.9 percent and
rising. So now our colleagues want to extend the unemployment benefits
for another 6 months.
Why just through November? Why not through December as originally
intended?
Well, we need to get through the next election cycle. Not one penny
of the $40 billion that it will cost is paid for. Instead, our
colleagues simply declare this eighth extension of unemployment
insurance an emergency and add it to our $13 trillion debt.
But can an eighth bill doing anything still be called an
``emergency''?
This bill perpetuates the payment of a record 99 weeks of
unemployment benefits, which encourages benefit collection over work.
As the Detroit News recently put it, even in Michigan, which has
America's highest unemployment rate, ``Some job applicants are
rejecting work offers so they can continue collecting unemployment
benefits.''
Stop the madness. Defeat this bill. Then let's really promote jobs by
relieving job-creating businesses and workers of higher government
spending, borrowing, and taxes, instead of adding to those burdens.
General Leave
Mr. LEVIN. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks and
to include extraneous material on H.R. 4213.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. LEVIN. I am privileged to yield 2 minutes to another
distinguished member of our committee, the gentleman from Washington
(Mr. McDermott).
(Mr. McDERMOTT asked and was given permission to revise and extend
his remarks.)
Mr. McDERMOTT. Mr. Speaker, you have just heard the Republicans say
to unemployed workers whose benefits are expiring: We don't care.
Forty billion dollars, the biggest unpaid part of this bill, is for
unemployment benefits to the 1.2 million people whose benefits are
going to expire by the end of June.
Now, you just heard a Member of the other side say: We don't care
what happens to them.
Well, they also don't care about the small businesses because, for
those of you who have never been unemployed, when you get that check
and when you have no money, you take it out and spend it. You pay for
rent. You go to stores and buy things. There are all of those store
owners, and nobody is coming in to buy because nobody has any money. If
you think starving the children of unemployed people by saying, We're
not going to give you money to go to the store and get food for your
kids, is going to somehow make them go out and find work in a time when
we have six people looking for every job in this country, you simply
don't understand the human condition.
Now, The Wall Street Journal can't understand. They said, We can't
understand why unemployment benefits have anything to do with jobs.
If you don't have money in people's pockets while they're looking for
jobs, you'll have more businesses collapsing. You can go through strip
malls all over this country where little businesses have closed because
nobody has any money to buy anything.
There is no reason for us to be inhumane. If we can spend billions
and billions of dollars on a war in Iraq, worrying about their bridges
and all of their infrastructure, and if we can't worry about people in
Ohio and in Pennsylvania and in Michigan and in New York and in
California, there is something really wrong in this body. Unemployment
insurance is the essence of being human and of being American.
Mr. CAMP. Mr. Speaker, I yield 2 minutes to a distinguished member of
the Ways and Means Committee, the gentleman from Nevada (Mr. Heller).
[[Page H4175]]
Mr. HELLER. I thank the gentleman for yielding.
Mr. Speaker, I rise today in strong opposition to H.R. 4213, a
misguided bill masquerading as tax relief.
Instead of creating jobs, this bill will cost jobs. Instead of
providing much needed certainty, this bill merely kicks the can down
the road. Instead of helping our economy recover, this bill will more
likely delay it.
In fact, this bill has more than $100 billion of deficit spending,
coupled with nearly $50 billion in tax increases. We should not do
either. Yes, this bill does have a few good things that I could
support, largely on the doctor formula, geothermal energy, and even
unemployment programs, but there is a better way.
I introduced a bill today to provide a short-term extension of
unemployment insurance, SGR, COBRA, flood insurance, and SBA loan
programs. This is routinely extended by this Congress in a bipartisan
fashion. My bill is completely paid for with unused stimulus funds.
The majority has passed a health care takeover, cap-and-trade, cap-
and-tax schemes, a so-called stimulus bill, and now this. H.R. 4213
contains air-dropped tax increases, accounting gimmicks, and a
hodgepodge of propped-up stimulus programs that show the American
people that, once again, we are governed by a bunch of backroom deals
and not a government guided by ideals.
When a bill has to be rigged together that is bad for builders, bad
for investors, bad for seniors, bad for real estate, bad for energy,
bad for contractors, bad for innovators, bad for financial interests,
bad for small businesses, bad for the high-tech industry, bad for
entrepreneurs, and bad for worldwide American companies--in short, bad
for taxpayers and job creators--then it is a bad bill.
Mr. Speaker, I urge a ``no'' vote.
{time} 1215
Mr. LEVIN. Mr. Speaker, I yield 1 minute to the distinguished
chairman of the Education and Labor Committee, Mr. George Miller of
California.
Mr. GEORGE MILLER of California. I thank the gentleman for yielding.
A year-and-a-half ago, this country was suffering from a recession
created by years of extreme economic and fiscal policies under the
previous administration and the financial scandals of Wall Street.
There were 800,000 jobs a month being lost when President Obama was
sworn into office.
Thanks to the Recovery Act, we are now seeing positive job gains.
Over the last 3 months, we have added an average of 187,000 jobs, but
people still are not able to find jobs in sufficient numbers. People
are still losing their health care as they lose their job. People are
losing their homes because of the extended term that they are spending
as unemployed Americans. And we have got to help these people.
The idea somehow that we can now wind this down or these people
really are not now looking for work--in all of our communities, when
jobs are advertised, 10 times, 20 times the number of people as there
are jobs show up seeking that job, seeking that opportunity to help
their families. We have got to be able to respond to that.
That is what this legislation does. As the economists have told us,
it is one of the best things we can do for Main Street, because,
unfortunately, these people need to spend this money immediately,
whether it is on groceries, or clothing, or rent, or utilities, to try
to keep their families together. We have got to pass this legislation.
Mr. CAMP. Mr. Speaker, I yield 2 minutes to a distinguished member of
the Ways and Means Committee, the gentleman from Illinois (Mr. Roskam).
Mr. ROSKAM. Mr. Speaker, I thank the gentleman for yielding.
Mr. Speaker, this bill comes in at a svelte $54 billion of a budget
bust, and I found it ironic that the chairman of the committee and the
former chairman of the committee have talked about this in the context
of job creation. Even Mr. Van Hollen from Maryland said it was going to
be supported by entrepreneurs.
But let's look carefully and quickly at what the job creators are
saying about this bill.
The United States Chamber of Commerce says it will hinder job
creation.
The Business Roundtable says it takes us two steps backwards in terms
of job creating.
The National Association of Manufacturing says it will threaten job
creation, U.S. competitiveness, and overall economic growth.
IBM says these tax increases will completely overwhelm any positive
economic impact of the R&D tax credit.
And the technology leaders of our nation, that is, the Silicon Valley
Leadership Group, says that these offsets are going to be done at the
expense of U.S. job creation.
Look, this is a cascading disappointment. This is a majority that has
become absolutely blind to the realities of the stimulus. With all due
respect to one of the chairmen of the committee who spoke a couple of
minutes ago, having a straight face and arguing that the stimulus has
been a success is not persuasive in my district. My district was
promised unemployment was going to peak at 8 percent if we spent the $1
trillion. Employment in Illinois is now at 11\1/2\ percent. The delta
therefore is a difference of 199,000 jobs for the State of Illinois.
This needs to go back to the drawing board. This bill needs to be
defeated and pulled out of the record. Let's get about the business of
serious job creation, and not just fall headlong into an orthodoxy that
is a complete failure.
Mr. LEVIN. Mr. Speaker, I yield 2 minutes to another distinguished
member of the Ways and Means Committee, Mr. Lewis of Georgia.
Mr. LEWIS of Georgia. Mr. Speaker, I rise today in strong support of
this jobs bill. We are making progress, but there are still far too
many people who want to work but cannot find a job. We must not stop
and we will not stop until each and every person has a good job. But
until that time comes, we must help and take care of our brothers and
sisters who have lost their jobs through no fault of their own.
This bill extends emergency assistance to unemployed Americans. It
also provides TANF emergency jobs to help States create jobs and assist
struggling families.
Every day, individuals call my office. They want to work. Many have
years of experience. They never in a million years thought that they
would have to rely on these programs to get by and make ends meet.
We have a responsibility and a moral obligation to help our friends
and neighbors during these hard times. This is our duty. If we are
honest with ourselves, we all know this bill is not enough. But we must
take this step. We cannot wait a moment longer.
I urge all of my colleagues to put politics aside and do what is
right and support this necessary legislation.
Mr. CAMP. Mr. Speaker, I yield myself 15 seconds.
My friends on the other side have essentially claimed Republicans
don't care about unemployed Americans. Nothing could be further from
the truth. We believe these programs must be extended. But we also
believe they must be paid for, as legislation introduced by Mr. Heller
of Nevada does, and of which I am a cosponsor.
Mr. Speaker, I yield 2 minutes to the distinguished gentleman from
Texas (Mr. Hensarling).
Mr. HENSARLING. Mr. Speaker, I serve as the number two Republican on
the House Budget Committee. But as a member of the House Budget
Committee, I am a little bit like the Maytag repairman. We are the
loneliest people in town.
We have nothing to do, because, Mr. Speaker, there is no budget. The
Democrats refuse to bring a budget. For the first time in the history
of the House of Representatives there will be no budget, because the
Democrats want no limit on what they can spend, no speed bump on the
way to national bankruptcy.
Today is no different. They spend even more money on a so-called
extenders bill. But according to the Congressional Budget Office, the
only thing that gets extended is the deficit; $25 billion of deficit
extension in the first year, $54 billion of deficit extension over the
next 10.
Mr. Speaker, how much longer can we borrow 43 cents on the dollar
from the Chinese and send the bill to our children and our
grandchildren?
My colleagues on the other side of the aisle say, Well, this bill is
under
[[Page H4176]]
PAYGO. We are going to save money. Well, if PAYGO works, why has the
deficit increased tenfold under their watch? PAYGO remains a cruel
hoax.
Let me mention three loopholes in this bill. Well, $39.5 billion of
spending is designated as an emergency. That falls outside of PAYGO.
$21.9 billion of Medicare spending, the so-called doc fix, comes under
something called directed scoring. It magically has no cost. Then we
have the double accounting, $11.8 billion, and new taxes to be used,
first to offset the cost, and then on a new oil spill fund.
Mr. Speaker, my friends on the other side of the aisle are using
accounting gimmicks that would make Bernie Madoff blush. Is it any
wonder that the national press reported that our national debt is now
$13 trillion, the highest ever in American history? You cannot spend,
borrow, and bail out your way to economic prosperity.
Mr. LEVIN. Mr. Speaker, I yield 2 minutes to another distinguished
Member of our committee, the gentleman from Massachusetts (Mr. Neal).
Mr. NEAL. I thank the gentleman for acknowledging me.
I stand in support of this legislation. I had not intended to offer
any rancor or any response to the other side, but when I have heard the
rhetoric of the last couple of speakers, I must tell you, it kind of
goes like this: The people that set the fire are now the ones calling
the fire department.
What they inherited when Bill Clinton walked out the door was a $5.7
trillion surplus. When they talk about fictitious theology, how about
tax cuts paying for themselves? That is why we find ourselves where we
do.
Until Mr. Camp qualified the remarks of Mr. Heller, not one
Republican speaker mentioned unemployment benefits. That is what this
is about at this moment. There are 435 of us here, and all 435 would
have done this differently, myself included. However, that is not the
option as you address unemployment benefits which begin to expire next
week. That is the cornerstone of this undertaking.
One of my papers opined this morning that the cost of human inaction
is intolerable. Thousands of working families will lose their benefits
if we don't undertake this action.
Job-creating incentives are in this legislation. I know. I have
helped to author them and write them. The Build America Bonds campaign,
any Member of this House can go back home with a sense of pride and
satisfaction as they witness the implementation of the Build America
Bonds initiative.
This bill protects Private Activity Bonds from the onerous
Alternative Minimum Tax, lowering costs for State and local governments
that use the bonds for airports, school loans, and other essential
needs. Take this to an advertisement in your local paper, where it says
relief from Alternative Minimum Tax, and take it to the airport that is
being expanded. They have utilized that opportunity.
New Markets Tax Credits. I have been in the middle of it, and we
protect them from AMT to promote investment in low-income
neighborhoods.
That is what this legislation is about today.
Mr. CAMP. I yield 2 minutes, Mr. Speaker, to the gentleman from
Texas, Dr. Burgess.
Mr. BURGESS. I thank the gentleman for yielding.
Let's talk just a little bit about fires and who set them and when
they were set. I rise today to talk about the so-called doc fix that is
contained within the bill. But first I think a little history is in
order.
Quoting from a paper by Dr. John Shay from December of 2006:
Originally, Medicare doctors were reimbursed under what is called the
customary prevailing rate, the CPR. Congress thought that spent too
much money, so in 1989 in the Omnibus Budget Reconciliation Act--sound
familiar?--they enacted what was called the relative value payment
system, RVRPS. That was supposed to hold down payments.
In between, we had something called the Medicare economic index that
based doctor pay on the cost-of-living adjustment. None of these things
satisfied Congress in holding down costs, so in 1992, remember, George
Bush was not President in 1992, George W. Bush was not President in
1992, although we like to blame things on the previous administration;
the Congress was controlled by Democrats, and they enacted the volume
performance standard, or VPS, which was in fact the forerunner of
today's SGR. This is not a problem that began in the last
administration. This is in fact a problem that was set in motion by
administrative pricing when Medicare was enacted back in 1965.
Now, here is the deal. We are going to pass this thing today, and I
appreciate the fact we separated out the doc fix from the other parts
of the legislation. But it is not going to benefit America's doctors,
because the Senate went home.
If we really wanted to help America's doctors, we would have done
this in the weeks that we gave ourselves in April when we passed the
last extension. But we didn't. We were in recess all day Wednesday, for
crying out loud. The Senate has gone home.
June 1, doctors get their pay cut. CMS says don't worry, we will hold
their checks for two weeks. Do you know what happens when you hold a
check in a one- or two-doctor office for two weeks? That doctor doesn't
have a paycheck at the end of their month, their margins are so tight.
Now, here is the real legislative malpractice that occurred here two
months ago when we passed the health care bill. Here is the Clinton
Medicare economist, Marilyn Moon, who said the health care
legislation's $500 billion cuts to hospitals, insurers, and other
Medicare providers should have been earmarked to deal with the doctor
fees first.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. CAMP. I yield the gentleman an additional minute.
Mr. BURGESS. That money in the health care bill that was cut from
Medicare should have dealt with the doctor fees first, and anything
else left over should have gone to pay for the other programs that they
wanted to buy.
Quoting from Ms. Moon: ``They should have used Medicare dollars to
fix this. It is irresponsible'' that the health care law left such a
major issue unresolved, while at the same time claiming--claiming--to
reduce the Federal deficit.
Continuing to quote: ``I think we should have put a crowbar in our
wallets.''
Well, look, here is the problem. We passed a bill. We cut half a
trillion dollars from Medicare, and we didn't fix the fundamental
problem that is preventing our Medicare patients from having care. You
want access to an insurance policy, fine. I would always rather have
access to a doctor.
Mr. LEVIN. Mr. Speaker, I now yield 2 minutes to another
distinguished member of our Ways and Means Committee, the gentleman
from Oregon (Mr. Blumenauer).
Mr. BLUMENAUER. I appreciate the gentleman's courtesy.
We are watching the harsh reality of governing without any meaningful
Republican participation. It would have been an opportunity as we were
moving forward to act as if they were actually legislating. People who
were part of the party could have been able to zero in on some of these
things.
I personally am absolutely committed to deal with the SGR problem.
This bill is a step forward to deal with it. It is not as good as what
we had passed earlier in the House. But it is interesting that our
friends on the other side of the aisle just took a hike, decided to be
negative.
One of the best examples is their hypocrisy or willful ignorance when
it comes to the stimulus.
{time} 1230
I talked to hundreds of people who were here in town, and I'm sure
some of them made it to Republican offices as part of the construction
industry fly-in. All were thankful for the investment of the economic
recovery package that kept people working in construction. Not just the
thanks from teachers, firefighters, energy industry who have benefited
from the jobs that have resulted, but they heard that particularly from
infrastructure companies, if they cared to listen.
I find a certain amount of disingenuous argument here when people are
saying, well, we can't use emergency funding to help unemployed people
in America. It should, instead, be funded by raising taxes or cutting
programs.
[[Page H4177]]
These are the same people that funded not billions of dollars, but
hundreds of billions of dollars year after year after year in emergency
spending for the war in Iraq, which was absolutely foreseeable,
predictable, and they paid for that ``off the books.'' But when it
comes to Americans unemployed, well, all of a sudden, then, we want to
be more stringent.
Last but not least, I appreciate what is done with the committee in
terms of infrastructure. The Build America Bonds, lifting the caps on
sewer and water financing, that will put people to work.
Is this a perfect bill? No. But I think it's an important step
forward. It keeps the principles moving, and it ignores the hypocrisy
that we're hearing on the other side of the aisle. I strongly urge a
``yes'' vote.
Mr. CAMP. Mr. Speaker, I will insert into the Record a letter to the
Speaker of the House by 12 physicians' organizations representing
155,000 physicians opposing this legislation.
May 26, 2010
Hon. Nancy Pelosi,
Speaker, House of Representatives,
Washington, DC.
Dear Speaker Pelosi, On behalf of the undersigned national
surgical societies, we would like to thank you for your
leadership and ongoing efforts to pass a permanent
replacement for the flawed Medicare physician payment
formula. It is vital that Congress adopt a policy that
provides long-term stability to ensure that our nation's
seniors, disabled and military families enrolled in the
TRICARE program maintain access to high quality surgical
care. Unfortunately, short term approaches--including the
sustainable growth rate (SGR) policy contained in the
proposed House amendment to H.R. 4213, the American Jobs and
Closing Tax Loopholes Act of 2010--fall short of this goal,
so we must oppose such legislative proposals.
With regard to H.R. 4213 (as released on May 20), our
specific concerns include:
Rather than permanently repealing the SGR, the bill only
provides temporary relief from the pending payment cuts for
three and a half years; the formula applied in 2012 and 2013
will likely result in a pay freeze for most surgeons; the
bill reverts back to the SGR in 2014 when physicians will
once again be facing cuts in excess of 35 percent; and with
an estimated price tag of nearly $500 billion in 2014, it
will be virtually impossible to permanently fix the problem
at a later date.
These continued payment cuts, rising practice costs and a
lack of certainty going forward, make it difficult, if not
impossible, for already financially challenged surgical
practices to continue to treat Medicare patients. A February
2010 survey conducted by the Surgical Coalition confirms that
surgeons and anesthesiologists will be forced to make
significant changes in their practices if Medicare payments
continue to decline, jeopardizing timely access to surgical
care. The survey found that 37 percent of respondents will
change their Medicare status to ``nonparticipating'' and an
additional 29 percent will opt out of Medicare altogether. In
addition, those remaining in Medicare will also make
significant changes to their practices, with 69 percent
limiting the number of Medicare patient appointments; 47
percent reducing time spent with Medicare patients; and 45
percent no longer providing certain services. Finally, the
survey demonstrates a direct connection between Medicare
payment cuts, jobs and the economy, as 43 percent of
respondents stated they would reduce staff; 44 percent would
defer the purchase of new medical equipment; and 32 percent
would defer purchases of health information technology.
Surgeons are keenly aware of the fiscal challenges
confronting Congress and our nation. We believe, however,
that the most fiscally responsible approach is to permanently
repeal the SGR today, rather than growing the cost by acting
on it tomorrow. We remain steadfast in our commitment to
ensure and improve all Americans' access to quality surgical
care and we stand ready to work with you to find a solution
that will achieve this goal.
Sincerely,
American Academy of Facial Plastic and Reconstructive
Surgery;
American Academy of Otolaryngology-Head and Neck Surgery;
American Association of Neurological Surgeons;
American Association of Orthopaedic Surgeons;
American College of Osteopathic Surgeons;
American Congress of Obstetricians and Gynecologists;
American Osteopathic Academy of Orthopedics;
American Society of Cataract and Refractive Surgery;
American Society of Plastic Surgeons;
American Urological Association;
Congress of Neurological Surgeons;
Society for Vascular Surgery.
Mr. Speaker, I yield 1 minute to the distinguished gentleman from
Nebraska (Mr. Terry).
Mr. TERRY. Mr. Speaker, this bill has short-term extensions and
permanent tax hikes and still, over time, puts $54 billion onto our
national debt.
Now, there are some of these extensions that we would all support if
they were offset. But adding to the national debt is the wrong way and
a harmful way.
This is not a time to raise taxes on investments and business. That's
a sure way to kill jobs. For example, one of the provisions, higher
taxes on carried interest means less dollars into real estate
investment development. In Omaha alone developers and contractors have
gone bankrupt, jobs lost, projects stalled or killed because of lack of
capital, and this will make it worse. More taxes equals less capital,
means more jobs lost.
This is a job-killing bill, and I am going to vote against it.
Mr. LEVIN. Mr. Speaker, I now yield 1 minute to the gentlewoman from
Nevada (Ms. Berkley), another distinguished member of our committee.
Ms. BERKLEY. Mr. Speaker, Nevada is hurting. The people I represent
in Southern Nevada are hurting.
This bill extends the unemployment benefits for the 14.2 percent of
my fellow Americans who find themselves unemployed so they can pay
their bills and feed their children. It's not their fault that they are
unemployed.
I support this bill because teachers I represent are going to get a
tax credit for the school supplies they purchase, because Nevadans will
be able to continue to deduct our sales tax from our Federal income
tax, because there's money in here so we can provide summer jobs for
high school students. Small business will receive tax incentives to
preserve their jobs. Restaurants and retail stores can improve their
businesses and expand by the R&D tax credit. Major job-creating
infrastructure projects like the expansion of McCarran Airport and all
of those great downtown building and transportation projects are going
to continue because of the Buy America Bonds and the Recovery Zone Bond
program.
And, finally, the extension of Medicare reimbursement to our
country's doctors for 19 months. It's necessary. It's not permanent. We
need to do permanent. It's going to help them care for their patients.
Mr. CAMP. Mr. Speaker, I reserve the balance of my time.
Mr. LEVIN. Mr. Speaker, I yield 1 minute to the gentleman from
Illinois (Mr. Davis), another member of our committee, a distinguished
member indeed.
Mr. DAVIS of Illinois. Mr. Speaker, I rise in strong support of this
jobs bill because this legislation would provide summer jobs for
hundreds of thousands of young people, keep unemployment checks coming,
provide money for small businesses, keep jobs at home in America.
It also will provide hope for those who have almost given up,
wondering where their next work opportunity will come from. And, of
course, it provides an opportunity for us to more adequately compensate
our doctors.
Doctors are an integral part of health care delivery, and there ought
not be any reason for senior citizens not to get the services that they
need because we're not paying our doctors.
This is a job-creating, services-providing bill. I strongly support
it and urge its passage.
Mr. LEVIN. Mr. Speaker, I will enter into the Record a letter from
the AARP in support of the SGR provision for physicians under Medicare
and their patients.
AARP,
Washington, DC, May 28, 2010.
Dear Representative: On behalf of millions of AARP's
members, we urge you to vote in favor of critically needed
legislation to ensure that Medicare beneficiaries do not lose
access to their physicians.
Absent Congressional action by June lst, physicians who
treat Medicare patients will receive a 21 percent reduction
in their reimbursement. We are concerned that these cuts
could have a dramatic impact on beneficiaries' access to
physicians--particularly in rural areas. Some of our members
have already experienced difficulty in finding a physician
who will accept Medicare patients--a problem that can be more
common for those newly eligible for Medicare. For nearly a
decade, Congress has used short-term patches to prevent
imminent cuts to how doctors who treat Medicare patients are
paid--an approach that has created a great deal of anxiety
among Medicare patients and the health providers who serve
them. People on Medicare deserve the peace of mind of knowing
they can find a doctor when they need one.
[[Page H4178]]
AARP is pleased that this legislation prevents the drastic
21 percent cut and provides a stable payment rate for the
physicians who treat Medicare patients. While we recognize
this is only a short term solution, our members--and the
physicians who treat them--should not continue to be held
hostage by short-term band-aid patches to an unworkable
Sustainable Growth Rate (SGR) formula. Going forward, we are
committed to working with Members of Congress from both sides
of the aisle to repeal the SGR, and to establish a permanent
physician payment system that rewards value and ends the
uncertainty for patients and providers alike.
Sincerely,
Nancy A. LeaMond.
Mr. LEVIN. Mr. Speaker, I yield 2 minutes to the very distinguished
gentlewoman from California (Ms. Lee).
Ms. LEE of California. Mr. Speaker, I rise in strong support of H.R.
4213, and I thank the gentleman for yielding but also for his deep
commitment to create jobs.
For months now the Congressional Black Caucus, which I am proud to
chair, has been laser focused on turning this economic disaster
inherited from the Bush administration around. Our focus has been jobs,
jobs, jobs, and making sure that the chronically unemployed are
included in our efforts. We have worked with President Obama and
Speaker Pelosi, House and Senate leadership, committee chairs, and our
coalition partners to develop a legislative strategy to address the
needs of millions of Americans who are struggling in this tough
economic environment.
I am proud to say that this bill provides $1 billion for summer youth
jobs and an additional $2.5 billion to extend emergency funding for the
Temporary Assistance for Needy Families program.
I want to thank Speaker Pelosi and Chairman Levin. I want to also
thank Mr. Rangel and Obey and Miller and all of our leadership for
working with us to include these provisions.
This bill also extends unemployment insurance, which really is a
lifeline for folks struggling to keep their heads above water, just
plain surviving, mind you, in both Democratic and Republican districts.
Our actions today will make a huge difference for millions of Americans
and help put people to work and close off egregious tax loopholes that
subsidize companies which ship American jobs overseas. And we will
finally pay the debt owed by our government to Black farmers and Native
Americans.
But we still have a lot to do. We have to create direct jobs for
people which will help turn the economy around and help tackle the
deficit. I will cast my vote today for this lifeline on behalf of all
of those individuals whose Members simply refuse to do so.
I urge my colleagues to do the morally correct thing and vote
``yes.'' People want to work. This bill puts people back to work. It
helps them survive until they find a job, and this is the patriotic
thing to do.
Mr. CAMP. Mr. Speaker, I continue to reserve the balance of my time.
Mr. LEVIN. I now yield 1 minute to the gentlewoman from New York
(Mrs. Maloney), chair of the Joint Economic Committee.
Mrs. MALONEY. Mr. Speaker, I rise in support.
A new report from the Joint Economic Committee shows that extending
unemployment benefits is not only the morally right thing to do, it is
fiscally responsible.
The report focuses on unemployed disabled workers. By the end of
2010, the JEC estimates that 290,000 unemployed disabled workers will
exhaust their unemployment benefits. Without extension of unemployment
benefits, the JEC estimates that two-thirds of these workers will leave
the labor force and move on to Social Security Disability Insurance.
Shifting these workers from the labor force and onto the SSDI rolls,
the cost of inaction is a $24.2 billion lifetime cost.
By contrast, keeping these workers attached to the labor force by
extending unemployment insurance benefits and COBRA premium subsidies
is $721 million in 2010.
The JEC analysis concludes that the Federal Government can save $23.5
billion by extending unemployment benefits and avoiding a lifetime of
SSDI for currently unemployed workers.
I urge a ``yes'' vote.
Mr. LEVIN. Mr. Speaker, I yield 1 minute to the gentlewoman from
Illinois (Ms. Schakowsky).
Ms. SCHAKOWSKY. I thank the gentleman for yielding.
Mr. Speaker, I am a strong supporter of stabilizing Medicare
physicians' payments permanently. Short-term fixes create instability
and uncertainty for physicians and patients. But if we don't act now,
on June 1 our doctors are going to see their Medicare payments cut by
over 20 percent, and I am simply not willing to allow that to happen,
which is why I'm voting ``yes.''
This bill will ensure that doctors who see Medicare patients over the
next 19 months will receive fair payments. It will ensure that senior
citizens and persons with disabilities have access to their doctors.
And it gives us time to permanently fix the flawed formula.
It's not a perfect solution, but it is essential for the health and
well-being of seniors and disabled persons on Medicare.
I urge a ``yes'' vote.
Mr. CAMP. Mr. Speaker, I reserve the balance of my time.
Mr. LEVIN. Mr. Speaker, it is now my more than distinct privilege,
and I repeat that, more than my distinct privilege, to yield 1 minute
to the Speaker of the United States House of Representatives, Nancy
Pelosi.
Ms. PELOSI. Mr. Speaker, I thank the distinguished chairman for his
recognition and also for the excellent job he has done to bring this
bill to the floor today, the American Jobs and Closing Tax Loopholes
Act.
Mr. Speaker, it is our responsibility here, almost an ethical one
really, to create jobs for the American people. Equally important is to
reduce the deficit. So any of the pieces of legislation that we bring
to the floor must strive to do both, to strike that balance.
{time} 1245
I congratulate the chairman on this important legislation because it
does both, creates jobs and helps to reduce the deficit. If I had four
words to describe the bill, it would be the same four words--it's a
four letter word, I prepare you for that--jobs, jobs, jobs, and jobs.
It's about jobs, it's about summer jobs for young people, it's about
Build America bonds, jobs and the infrastructure sector, it's about
jobs that are produced by our investments in research and development
tax credits in the legislation to have research into higher skilled
jobs and bring us to a different place technologically. That's very
important.
It's about helping people who have lost their job through no fault of
their own. And that's important to them individually; but it's also
important, as economists tell us, that unemployment insurance is the
fastest way to inject demand into the economy, thereby creating jobs
immediately. These and in other ways in this legislation we are
creating jobs. And we are doing so in a way, as I say, the unemployment
insurance will create jobs, create a revenue stream which will help to
reduce the deficit. The rest of the bill is all paid for in a fiscally
sound way, and I congratulate distinguished Chairman Levin for making
that so.
I am particularly pleased about a benefit for our veterans as we go
into Memorial Day. Other Members have mentioned the SGR, how important
it is to have that provision in this legislation. I myself wish it were
permanent. It's 19 months. We have to move to giving more certainty to
our physicians and to our seniors. This is about our seniors and their
ability to keep the doctors that they have if they so wish, and under
this legislation they will do so.
But as I close, I just want to make note that as we gather here on
Memorial Day weekend, as we go forward, there is a very important
provision in this bill that I hope all Members will take home and
convey with our gratitude to our men and women in uniform, and that is
the issue of concurrent receipt. We call it the veterans disability tax
repeal. Its technical term is concurrent receipt. If you are a veteran
and if you are disabled, you will recognize this term. And in this
legislation there is funding--it is paid for--there is funding to cover
the concurrent receipt, the repeal of it for the next--to address it in
a positive way for the next 2 years.
So if it's about young people and summer jobs, if it's about building
the infrastructure of America, if it's investing in research and
development and the high technologies that will make us competitive and
keep us number one, if it's about helping those who
[[Page H4179]]
through no fault of their own have lost their jobs, but recognizing
that that investment injects demand into the economy and creates jobs,
this is a bill that does just that in a fiscally sound way, while
honoring our veterans on this Memorial Day.
So I thank the gentleman for this very important legislation and urge
my colleagues to give a big strong ``aye'' vote to the American Jobs
and Closing Tax Loopholes Act. It's named that for one very important
reason. In this legislation, which is job creating, it closes the
loophole which has allowed businesses to ship jobs overseas. Can you
believe that we have a tax policy that enables offshoring?
So if you have one thing to say about this bill to your constituents,
you can say that today you voted to close the loophole to ship U.S.
jobs overseas and giving businesses a tax break to do so. It's not
right. It will be corrected today. Thank you, Mr. Levin.
I urge my colleagues to vote ``aye.''
Mr. CAMP. Mr. Speaker, I yield myself such time as I may consume.
This legislation before us raises the deficit by $54 billion. It is
not the fiscally responsible legislation that some claim it to be.
I insert in the Record the analysis by the Congressional Budget
Office that shows the deficit increases by $54.2 billion under this
legislation.
Estimate of the Statutory Pay-As-You-Go Effects for H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010 (As reported by the Committee on Rules on May 26, 2010 with a subsequent
draft amendment transmitted to CBO on May 27, 2010)
[Millions of dollars, by fiscal year]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
PRELIMINARY
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010-2015 2010-2020
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Division I: Section 523--Medicare Sustainable Growth
Rate Reform...........................................
NET INCREASE OR DECREASE (-) IN THE ON-BUDGET DEFICIT
Total On-Budget Changes for Division I................. 3,143 14,455 5,320 0 0 0 0 0 0 0 0 22,918 22,918
Less:
Current-Policy Adjustment for Medicare Payments to 3,143 14,455 4,281 0 0 0 0 0 0 0 0 21,879 21,879
Physicians \1\....................................
----------------------------------------------------------------------------------------------------------------------------------------
Statutory Pay-As-You-Go Impact for Division I.......... 0 0 1,040 0 0 0 0 0 0 0 0 1,040 1,040
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Division II: All Other Provisions (The amendment printed in part A of the Rules Committee report on H.R. 4213, as modified by the amendment printed in part B of Rules Committee report and the
further amendment printed in section 2 of the rule, except for section 523 of the amendment.)
NET INCREASE OR DECREASE (-) IN THE ON-BUDGET DEFICIT
Total On-Budget Changes for Division II................ 22,305 45,115 -763 -3,319 -3,764 -25,092 17,098 -4,360 -3,648 -2,915 -3,095 34,481 37,573
Less:
Designated as Emergency Requirements \2\........... 12,205 26,715 180 175 120 60 45 0 0 0 0 39,455 39,500
----------------------------------------------------------------------------------------------------------------------------------------
Statutory Pay-As-You-Go Impact for Division II......... 10,100 18,400 -943 -3,494 -3,884 -25,152 17,053 -4,360 -3,648 -2,915 -3,095 -4,974 -1,927
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Division I and Division II Combined:
NET INCREASE OR DECREASE (-) IN THE ON-BUDGET DEFICIT
Total On-Budget Changes................................ 25,448 59,570 4,557 -3,319 -3,764 -25,092 17,098 -4,360 -3,648 -2,915 -3,095 57,399 60,492
Less:
Current-Policy Adjustment for Medicare Payments to 3,143 14,455 4,281 0 0 0 0 0 0 0 0 21,879 21,879
Physicians \1\....................................
Designated as Emergency Requirements \2\........... 12,205 26,715 189 175 120 60 45 0 0 0 0 39,455 39,500
----------------------------------------------------------------------------------------------------------------------------------------
Statutory Pay-As-You-Go Impact......................... 10,100 18,400 96 -3,494 -3,884 -25,152 17,053 -4,360 -3,648 -2,915 -3,095 -3,934 -887
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Memorandum--Components of the Emergency Designation
(Division I and Division II Combined)
Changes in Outlays................................. 12,205 26,555 0 0 0 0 0 0 0 0 0 38,760 38,760
Changes in Revenues \3\............................ 0 -160 -180 -175 -120 -60 -45 0 0 0 0 -695 -740
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Sources: Congressional Budget Office and Joint Committee on Taxation.
Note: Components may not sum to totals because of rounding.
1. Section 7(c) of the Statutory Pay-As-You-Go Act of 2010 provides for current-policy adjustments related to Medicare payments to physicians. CBO estimates that the maximum available
adjustment for a physician payment policy through December 31, 2011, is about $21.9 billion.
2. Section 701 of H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010 would designate section 501 (unemployment insurance) of the bill as an emergency requirement pursuant to
section 4 (g) of the Statutory Pay-As-You-Go Act of 2010.
3. Negative numbers represent a DECREASE in revenues.
[[Page H4180]]
BUDGETARY EFFECTS OF H.R. 4213, THE AMERICAN JOBS AND CLOSING TAX LOOPHOLES ACT OF 2010 (AS REPORTED BY THE COMMITTEE ON RULES ON MAY 26, 2010 WITH A SUBSEQUENT DRAFT AMENDMENT TRANSMITTED TO CBO ON MAY 27, 2010)
[Millions of dollars, by fiscal year]
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
PRELIMINARY
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010-2014 2010-2015 2010-2019 2010-2020
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Division I: Section 523--Medicare
Sustainable Growth Rate Reform
NET INCREASE IN DEFICITS FROM DIRECT SPENDING
Medicare Physician Payment Update.... 3,143 14,455 5,320 0 0 0 0 0 0 0 0 22,918 22,918 22,918 22,918
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Division II: All Other Provisions (The amendment printed in part A of the Rules Committee report on H.R. 4213, as modified by the amendment printed in part B of Rules Committee report and the further amendment printed in section 2
of the rule, except for section 523 of the amendment.)
CHANGES IN REVENUES
TOTAL CHANGES IN REVENUES \1\........ -6,855 -10,201 6,391 8,037 7,657 28,714 -13,468 7,884 6,977 6,158 6,548 5,028 33,742 41,281 47,829
On budget revenues............... -6,855 -10,666 5,484 7,121 6,862 27,965 -14,201 7,215 6,546 5,931 6,176 1,946 29,911 35,389 41,565
Off-budget revenues.............. 0 465 907 916 795 749 733 669 431 227 372 3,082 3,831 5,892 6,264
CHANGES IN DIRECT SPENDING (OUTLAYS)
Title I--Infrastructure Incentives... 14 554 2,090 2,871 2,871 2,871 2,871 2,871 2,871 2,871 2,871 8,399 11,270 22,752 25,623
Title II--Extensions of Expiring 3,302 1,363 0 0 0 0 0 0 0 0 0 4,664 4,664 4,664 4,664
Provisions..........................
Title III--Pension Funding Relief.... 0 0 -70 -130 -200 -260 -130 -100 -30 100 160 -400 -660 -820 -660
Title IV--Revenue Offsets............ 0 500 400 100 0 0 0 0 0 0 0 1,000 1,000 1,000 1,000
Title V--Unemployment, Health, Other
Assistance..........................
Subtitle A--Unemployment/Other... 12,254 28,486 473 88 40 7 2 0 0 0 0 41,341 41,348 41,350 41,350
Subtitle B--Health Provisions.... -3,151 -371 270 212 17 15 21 -21 2 18 23 -3,023 -3,009 -2.989 -2,966
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Subtotal (Title V)............... 9,103 28,115 743 300 57 22 23 -21 2 18 23 38,318 38,339 38,361 38,384
Title VI--Other Provisions........... 3,031 3,917 1,558 661 370 240 133 105 55 27 27 9,537 9,777 10,097 10,124
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
TOTAL CHANGES IN OUTLAYS (DIVISION 15,450 34,449 4,721 3,802 3,098 2,873 2,897 2,855 2,898 3,016 3,081 61,519 64,392 76,058 79,138
II).................................
NET INCREASE OR DECREASE (-) IN DEFICITS FROM REVENUES AND DIRECT SPENDING
NET CHANGES IN DEFICITS \2\.......... 22,305 44,650 -1,670 -4,235 -4,559 -25,841 16,365 -5,029 -4,079 -3,142 -3,467 56,491 30,650 34,777 31,309
On-budget deficit change......... 22,305 45,115 -763 -3,319 -3,764 -25,092 17,098 -4,360 -3,648 -2,915 -3,095 59,573 34,481 40,669 37,573
Off-budget deficit change........ O -465 -907 -916 -795 -749 -733 -669 -431 -227 -372 -3,082 -3,831 -5,892 -6,264
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Division I and Division II Combined
CHANGES IN REVENUES (DIVISION I AND DIVISION II)
TOTAL CHANGES IN REVENUES \1\........ -6,855 -10,201 6,391 8,037 7,657 28,714 -13,468 7,884 6,977 6,158 6,548 5,028 33,742 41,281 47,829
On-budget revenues............... -6,855 -10,666 5,484 7,121 6,862 27,965 -14,201 7,215 6,546 5,931 6,176 1,946 29,911 35,389 41,565
Off-budget revenues.............. O 465 907 916 795 749 733 669 431 227 372 3,082 3,831 5,892 6,264
CHANGES IN DIRECT SPENDING (DIVISION I AND DIVISION II)
TOTAL CHANGES IN OUTLAYS............. 18,593 48,904 10,041 3,802 3,098 2,873 2,897 2,855 2,898 3,016 3,081 84,438 87,310 98,976 102,057
NET INCREASE OR DECREASE (-) IN DEFICITS FROM REVENUES AND DIRECT SPENDING (DIVISION I AND DIVISION II)
NET CHANGES IN DEFICITS \2\.......... 25,448 59,105 3,650 -4,235 -4,559 -25,841 16,365 -5,029 -4,079 -3,142 -3,467 79,410 53,568 57,695 54,228
On-budget deficit change......... 25,448 59,570 4,557 -3,319 -3,764 -25,092 17,098 -4,360 -3,648 -2,915 -3,095 82,492 57,399 63,587 60,492
Off-budget deficit change........ O -465 -907 -916 -795 -749 -733 -669 -431 -227 -372 -3,082 -3,831 -5,892 -6,264
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Sources: Congressional Budget Office and the staff of the Joint Committee on Taxation.
Notes: Components may not sum to totals because of rounding.
\1\ Negative numbers denote a DECREASE in federal revenues; positive numbers denote an increase in revenues.
\2\ Positive numbers denote an INCREASE in the budget deficit; negative numbers denote a decrease in the deficit.
\3\ Section 701 of H.R. 4213 would designate section 501 of the bill as an emergency requirement pursuant to section 4 (g) of the Statutory Pay-As-You-Go Act of 2010.
[[Page H4181]]
So the result is piling even more on an unsustainable level of debt
the country is carrying already. This legislation imposes permanent tax
increases to pay for temporary extensions of tax relief, meaning there
is actually no net tax relief overall. And the real problem with that
is for 6 months of a provision like the research and development tax
credit there are permanent tax increases throughout the economy that
will be there forever. So while in another 6 months we will be back
trying to find a way to extend the research and development tax credit,
there will be yet more permanent tax increases, making it very
difficult for our economy to recover, particularly given the nature of
those tax increases, hitting particularly hard on small business, the
engines of economic growth and job creation. Even as the President has
said, nearly 70 percent of new jobs come from small businesses.
But it is unprecedented to tax certain small businesses in the way
this bill is doing, by going after taking unemployment taxes and
applying it to their profits. And this comes at the worst possible
time, when so many small businesses across America are struggling and
trying to make that decision do they buy that piece of equipment. Do
they stay in business at all? Do they hire that extra person? And
putting a layer of tax increases over them at this time is particularly
onerous.
This legislation double counts oil spill excise tax revenues. So this
is not the fiscally responsible bill some would claim. While it
quadruples the excise tax to fund the Oil Spill Liability Trust Fund,
it counts this twice because, while it's intended to be reserved for
the trust fund and used to mitigate oil spills, it shouldn't be counted
as contributing to general deficit reduction, as this legislation does.
There is irresponsible health spending that also increases the
deficit. If the so-called health care overhaul and reform had actually
done its job, we wouldn't be here with a major Medicare problem, the
physician payment formula. Because it was so important to make that
bill look less expensive, the physician payment formula, which was
actually the fix, was a part of that legislation, was taken out, and
therefore we are again back again trying to find a way to address that
issue.
I think that's why so many physicians groups have come forward
representing more than 155,000 doctors across America saying this is
not the way to do it. This is not the legislation. They are compelled
to not support this legislation because it doesn't really do anything
to fix the physician payment formula for Medicare physicians, which is
so important for seniors all across America.
I would say this is a flawed process, and flawed processes lead to
flawed legislation. Much of this bill, unprecedented changes in tax law
with regard to partnerships that help build shopping centers and
apartment buildings all across our country. Significant changes in the
way partisanship income is treated. Significant changes in the way
investment income is treated in terms of real estate partnerships. No
hearings on this legislation before the Ways and Means Committee, no
markup of the legislation. It just comes air-dropped into the bill and
comes directly to the floor. And that's why you have seen so many
business groups come forward, so many employer representative
organizations come forward and say they have to oppose this bill, even
recognizing the deep needs in America on unemployment and other issues.
They have to oppose this legislation because of the way it's crafted
and the way it's put together.
Had we had an opportunity to debate this in committee, had we had an
opportunity to actually hear from the job providers and job creators, I
think we would have come up with a different result. I think we would
have been able to fine-tune this legislation; we would have been able
to come up with a way to address these pressing needs that Americans
are facing.
So I would say when all is said and done, you come to the conclusion
this bill, even though it's been split up and we are going to have two
votes instead of one vote, both of these bills are unacceptable because
they raise the deficit, because they add new tax burdens in a recession
and make it much more difficult for our economy to recover so that the
engine of economic growth, small business and investment, the private
sector can actually have its way and begin to create the kind of
economic growth and job creation that America so needs.
I yield back the balance of my time.
Mr. LEVIN. Mr. Speaker, how much time do we have remaining?
The SPEAKER pro tempore. The gentleman has 3 minutes remaining.
Mr. LEVIN. I yield myself 30 seconds and then the balance of the time
to the majority leader.
In a word, the minority objects when we pay for jobs bills after
years of their creating deficits. They object when there is an
emergency under statutory PAYGO and we provide for unemployment comp.
So in a word or a few words, they project nothing either constructive
or positive.
Mr. Speaker, I end on both a constructive and positive note by
yielding the balance of my time to our distinguished majority leader.
(Mr. HOYER asked and was given permission to revise and extend his
remarks.)
Mr. HOYER. I thank the chairman for yielding.
I want to thank Chairman Levin. Chairman Levin has worked, along with
his staff, Janice Mays, the staff director and other members of an
extraordinary staff, around the clock. And I am sure Mr. Camp would say
his Republican staff has worked around the clock, too. We thank all of
them for the work that they do. I thank Mr. Levin for his leadership,
for his focus, and his tenaciousness in bringing us to this point.
Let me make a couple of observations before I speak pointedly about
the bill. First of all, ladies and gentlemen of this House, the public
understands that there is no bipartisanship in this House. All
Republicans are going to vote against this bill, my presumption is.
Maybe I am wrong. I hope I am wrong. But my presumption is they'll vote
to a person against this bill.
They have voted almost to a person against every bill that we have
passed over the last 16 months to try to bring this economy back from
the extraordinarily deep recession, the deepest that we have had in 75
years, resulting from the economic policies that they put in place when
they were exclusively in control.
Yet they come to the floor and talk about deficits. Democrats of
course, when we controlled the Presidency, created one of the highest
surpluses, and indeed the only administration that had a net surplus
after 8 years, the Clinton administration. The Republicans will say,
yes, but for 6 of those years we controlled the Congress. And my
response is, yes, and for 12 of the years you controlled the Congress,
and 6 of those under a Republican President, George Bush.
Unfortunately, every year that I have been here serving with a
Republican President, every year without exception, we have had large
deficits. Every year. However, under Bill Clinton we had the only 4
surplus years that I have been here. We had 4 surplus years as a result
of an economic program that was adopted. Again, it was adopted
exclusively by Democrats. No Republican voted for that in 1993 either
in the House or in the Senate.
So we created surpluses. We got the economy moving. And then my
friend on the other side talks about jobs; we should have had hearings
about job creation. Frankly, the worst period of job creation in the
last 30 years was the 8 years of the Bush administration. Without
exception the worst. Stark example: the Clinton administration, 216,000
jobs created per month; the Bush administration, 11,000 jobs per month.
That's 205,000 jobs per month, over 2 million per year.
That is why, of course, because of that disastrous economic
performance, we fell into this extraordinary ditch that we have tried
to pull ourselves out of. And we are coming out of it. That's the good
news, Mr. and Mrs. America, my colleagues. We are coming out of it.
It's slow, it's not as fast as we would like, but it's successful.
Now, I give you an interesting fact: over the last 4 months of an
economic program, the Recovery Act and other jobs bills that we passed,
we have created 573,000 jobs in the last 4 months. All positive months.
If the next two-thirds of the year replicate that production, we will
create more jobs this
[[Page H4182]]
year after this deepest recession any of us in this Chamber have
experienced ever in our lifetimes, we will create more jobs this year,
if we replicate the first third of the year, than the Bush
administration created in its 8 years. Hear that statistic and check me
if I am wrong. About 1.7 million jobs versus a little over a million
jobs over the 96 months were net created during the Bush
administration.
{time} 1300
So when we talk about jobs and deficits, I think we have some
credibility. We have some credibility because we created surpluses; the
only 4 years of surplus, again, under the Clinton administration, that
we had in my 30 years in Congress. And in terms of jobs, Bill Clinton
created 21 million private-sector jobs during the course of his
Presidency. George Bush? Approximately a million. A stark difference in
the impact of the economic policies pursued by the two parties.
I would hope some of you would say to yourselves that--not because
we're trying to place blame, but because we're probably trying to
learn, hopefully, from our experience. And you might come to the
conclusion at some point in time, You know what? What they have
suggested works. What they have pursued works, contrary to what Mr.
Armey, who was your former majority leader who, when we adopted that
program in 1993, said we would have deep deficits and exploding
unemployment. We had exactly the opposite. We had declining deficits
and 4 years of surplus and an explosion of job creation; 216,000 a
month.
We continue to pursue creation of jobs. That's what this bill is
about, creation of jobs. We're also pursuing closing tax loopholes and
making sure people don't offshore jobs so we keep jobs here in America,
since inheriting the worst economic crisis since the Great Depression
and an economy shedding almost 800,000 jobs per month. That's not
creating jobs; that's losing. During the last 3 months of the Bush
administration, we lost about 750,000 jobs per month, 1\1/2\ million in
3 months, as opposed to creating 573,000 in the last 4 months.
President Obama and the 111th Congress have been dedicated to
standing up for the middle class, its interests, and its future. The
work continues today with the American Jobs Closing Tax Loopholes and
Preventing Outsourcing Act, which will support millions of American
jobs.
This bill is a significant investment in America's entrepreneurs and
its workers. It helps to restore the flow of credit to small
businesses, which hire the majority of America's workers. It extends
the important R&D tax credit, research and development, which helps
businesses innovate, grow, and create jobs. That's what we need to be
about, creating jobs for our people.
It invests in the successful Build America Bonds and Recovery Zone
Bonds, which create jobs and build much needed projects, like schools,
hospitals, roads, and public transit. It puts young people to work with
summer jobs programs so that they're not out in the streets, so they
start to learn some skills, so that they have something to do with
their time. That's good for them to learn job skills, that's good to
get projects done that need to be done, and it provides for idle hands
having work.
This bill also protects the safety net for Americans who are out of
work through no fault of their own. It extends their unemployment
insurance and helps them keep their health coverage. That's not only
the right thing to do; it is also one of the most effective ways to
boost local economies.
In addition, by preventing physician reimbursement rates from
falling, it ensures that millions of seniors, military retirees, and
people with disabilities can continue seeing their doctors.
Now, let me say something about what the ranking member said, for
whom I have a great deal of respect. He said the docs don't like this.
I don't like this. Unfortunately, none of your colleagues in the United
States Senate voted for a bill that we sent to them. I don't think any
of you voted over here for it either, which made a permanent fix to
this doctors' roller coaster of pretending that we're going to cut
doctors' reimbursement. We're not going to do that. We're not going to
do it because we want to make sure that our seniors, that our folks
with disabilities and others have access to their doctors. So we're not
going to do that.
So we play a game. It is a game of dollars, of course, an important
game. But we play a game that we're somehow not going to do it, so we
do it in short stretches. You did the same thing when you were in
charge. We're doing it again.
We should do this permanently. The Speaker is for permanent fix. I'm
for permanent fix. And if we need to pay for it, I will vote to pay for
it. And we do need to pay for it. Now, whether we need to pay for it
immediately all up front or we pay for it as we do sporadically, but
either way, we all know we're going to do this.
So I say to my friend, I understand the doctors are not pleased. I am
not pleased. The Speaker's not pleased. Mr. Levin is not pleased. And
certainly Mr. Waxman is not pleased. And my colleagues on this side of
the aisle are not pleased. I presume your colleagues are not either.
But, frankly, this is what you did when you were in charge. And we're
doing it for the same reason: We need to get the votes. And I'm hopeful
that we can join together in a bipartisan way at some point in time,
and because we don't have a bipartisan way, frankly, we've got to carry
the load ourselves.
I've been in the minority. It's easy to say ``no.'' It's much easier
being in the minority. When I was the minority whip, nobody ever asked
me did I lose by 1 or did I lose by 20. They assumed I was going to
lose, and it didn't matter how much I lost by. Now, of course, if I
lose by 1, they know that and I get a lot of flack, properly so.
So we could do better policy if we would do bipartisan policy, if we
could do a broader outlook. So I invite you to engage. I don't think
you'll do so today, but I hope you will in the future. That's not the
only right thing to do. It's also one of the most effective ways to
boost our local economies.
In addition, by preventing physician reimbursement rates from
falling, it insures that millions of seniors, military retirees, and
people with disabilities can continue seeing their doctors. We hope you
don't vote against that. It will be a separate vote. You won't have to
vote for the rest of the stuff if you don't like it, but vote for the
SGR. Vote at least for the next 19 months to say to doctors, We're
going to reimburse you at a proper rate to serve seniors, military
retirees, and people with disabilities. At least vote for that one if
you think docs ought to be reimbursed. Or if you think docs ought to
have a 21-percent cut, vote against it.
Those are some of the many steps this bill takes to create jobs and
protect Americans struggling in hard times. But just as importantly,
this job creation is funded by efforts to close unfair tax loopholes
and enforce corporate accountability. This bill would close the
loophole that enables Wall Street fund managers to pay taxes at a rate
20 percent lower than the rate for ordinary working Americans. We
differ on that. I understand that. And a lot of people have talked
about how we can tweak that, if you will. It's a question, however, of
basic fairness of taxing people on money they earn at similar rates.
And I want to say something on that, because I think there's been some
misinterpretation.
I can't speak for every one of my Democratic colleagues, but I'm a
strong believer that if people take money out of their pocket, take
capital at risk, that there ought to be a differential tax rate, and
there is and there will continue to be. At least with my support, there
will continue to be.
Further, this bill closes the tax loophole that lets multinational
corporations profit by shipping jobs overseas and putting Americans out
of work. I believe most of you on the other side of the aisle, my
friends and colleagues, don't believe that's a proper thing for us to
do. I hope you will join us on that.
By taking advantage of the foreign tax credit, these corporations are
able to avoid American and foreign taxes, giving them incentives to
move offshore and take jobs from people here at home. Again, tax
fairness and the needs of our middle class both urge us to close this
loophole. Another loophole for the privileged that Republicans have
defended for years.
Finally, this bill takes the first step to hold the oil industry
accountable for
[[Page H4183]]
the historic mess it made in the Gulf of Mexico. British Petroleum will
be millions of dollars in debt when this concludes. It increases the
amount the oil industry must pay into the Oil Spill Liability Trust.
I urge my colleagues to support this bill. It's a good bill for jobs.
It's a good bill for closing tax loopholes. It's a good bill for
dissuading people from taking jobs overseas. Take this step for
America, and continue to build on the economic progress that we have
made over the last 17 months.
Mr. HARE. Mr. Speaker, I rise today in strong support of the American
Jobs and Closing Tax Loopholes Act which would create jobs, extend
critical tax credits, provide assistance to people in need, and ensures
that my home state of Illinois is able to continue building its
infrastructure.
The bill extends unemployment insurance until November 30, 2010. It
extends the National Flood Insurance Program until the end of the year.
It also extends key tax credits for Illinois clean energy producers.
Further, enactment of this legislation will ensure that short line and
regional rail lines can continue critical track maintenance, providing
reliable infrastructure for rail customers and communities across the
nation. It achieves this through the Railroad Track Maintenance Credit.
The 45G rail tax credit will enable small and mid-sized railroads to
update and upgrade their track capacities in order to promote those
railroads as a viable way to move freight. This provision means that
railroads in and around my district, such as the Burlington Junction
Railway, the Decatur Junction Railway, the Illinois & Midland Railroad,
the Iowa Interstate Railroad, the Keokuk Junction Railway, and the
Toledo, Peoria & Western Railroad, would all be able to make the
necessary upgrades and perform maintenance to tracks which move our
nation's food, consumer goods, and coal.
Another aspect of this bill that I am proud to support is commonly
known as the ``Doc Fix'', which prevents a 21 percent doctor payment
cut under Medicare which is scheduled to take place in June in order to
preserve seniors' access to the doctor of their choice. This 19 month
fix to the Sustainable Growth Rate formula increases physician payment
rates by 2.2 percent for the rest of 2010 and 1 percent in 2011. This
provision is necessary to guarantee that Medicare beneficiaries can
continue to enjoy the excellent access to care that they do today.
Finally, H.R. 4213 ensures that Illinois highway funds are protected.
A provision in the original legislation would have cost Illinois $118
million. But language was added to ensure the state can keep these
critical resources. I thank Chairman Oberstar for working with the
Illinois delegation to ensure that the state was held harmless in this
regard.
The bill saves taxpayer dollars by ending subsidies for corporations
who ship our jobs overseas, requiring Wall Street investment fund
billionaires to pay their fair share of taxes, and ensuring BP meets
its responsibility for the Gulf of Mexico oil spill.
We are finally starting to see some positive momentum in the job
market. But with many Americans still looking for work, these long-term
extensions of unemployment insurance are critical to ordinary families'
ability to make ends meet. I am pleased this bill also includes two
important provisions for our farmers in Illinois. An extension of the
National Flood Insurance Program will give families who live along the
Mississippi River important protection from future disasters. In
addition, those farmers who produce clean energy like biodiesel and
ethanol will continue to receive a tax credit.
We pay for much of this by ceasing to reward multinational
corporations for shipping American jobs overseas. This policy combined
with several unfair trade deals has battered the manufacturing base in
my district. It is time to stand up for American workers again.
Mr. CONYERS. Mr. Speaker, today, I rise in strong support of the
American Jobs, Closing Tax Loopholes and Preventing Outsourcing Act. We
cannot afford to ignore the job crisis any longer. I believe today's
legislation will help Americans struggling with this recession by
funding summer jobs programs, assisting the unemployed, extending
transportation funding, bringing justice to black farmers and closing
tax loopholes for Wall Street managers. Additionally, it includes
critical measures to address and prevent federal disasters, including
the devastating oil spill in the Gulf and coal mining accidents.
Today's legislation would offer support to those who are most in need
by extending unemployment benefits such as unemployment compensation
through November 2010. Moreover, the bill extends the Emergency
Contingency Fund which provides funds to states to help for Temporary
Assistance for Needy Families (TANF), aid to needy families, subsidized
employment programs. The American Jobs Act will stop the 21 percent
reduction in Medicare reimbursements that doctors were scheduled to see
on June 1st 2010. This legislation would also address unemployment by
allowing local Workforce Investment Boards to expand successful summer
jobs programs which would provide over 300,000 jobs for those ages 14
to 24. It is important to give our youth the opportunity to gain
essential skills in order to be competitive in our globalized economy.
I am disappointed the COBRA six month extension was removed from the
bill as well as a six-month extension on Medicaid matching rates that
would offer addition help to states with high levels of unemployment.
Removal of these provisions will put many families at risk during these
hard economic times.
As we recover from the worst financial crisis since the Great
Depression, the American Jobs Act will force Wall Street fund managers
to pay their fair share on taxes carried interest and capital gains.
Currently, investment fund managers such as those who work in private
equity and hedge funds only pay 15 percent tax on carried interest,
while the average small business owner pays significantly higher rates.
During the run up to the financial crisis many hedge funds engaged in
speculative derivatives and other toxic assets which pushed our economy
to the brink of a depression. The Jobs Act will force them to pay their
fair share and bring lost billions in revenue to the Treasury. Lastly,
the bill ends loopholes that encourage firms to claim foreign tax
credits with respect to foreign taxes paid on income in order to ship
jobs abroad.
I also support the American Jobs Act because it provides funds for
critical transportation projects in Michigan and across the country by
allocating over four billion dollars to the popular Build America Bonds
initiative. Lauded as one of the most successful parts of the Recovery
Act, the Build America Bonds are bonds with tax exemption on interest.
The extension of this initiative will allow for the construction of new
schools, roads, environmental projects, public safety facilities, and
government housing projects. Furthermore, Michigan historically has
been a donor state in transportation funding, sending more money to the
federal government than it receives in transportation dollars. The
American Jobs legislation addresses an inequity in the funding of
surface transportation projects.
I am also pleased the American Jobs Act contains a provision that
will help resolve the discrimination claims brought by African American
farmers against the U.S. Department of Agriculture. In the original
Pigford litigation, many potential plaintiffs were unable to timely
file their lawsuits due to a failure to give adequate notice of the
claims period, barring the claims of as many as 70,000 farmers. In
Sec. 14012 of the 2008 Farm Bill, Congress authorized ``late-filing''
Pigford v. Glickman claimants who were denied a ``determination on the
merits'' of their claims a cause of action in the United States
District Court for the District of Columbia to seek such a
determination. On February 18, Agriculture Secretary Tom Vilsack
announced that the USDA had reached a global settlement of these claims
with the Pigford claimants. That settlement, however, was predicated on
the appropriation of $1.15 billion by Congress to pay the claims and
costs. With this legislation, we appropriate the funds that will lead
to a final resolution of the claims brought by this class of Black
farmers more than a decade ago, ending a shameful chapter in the
history of USDA and paving the way for the resolution of the claims
brought by other minority farmers.
Today's legislation seeks to address deficiencies we have seen in the
federal response to preventing and addressing disasters. While the
long-term effects of the oil spill in the Gulf are still unknown,
analysts estimate that costs could exceed $14 billion. By increasing
the amount that the oil companies pay into the Oil Spill Liability
Trust Fund, there will be more funds to assist individuals, businesses
and communities so that they are not left uncompensated for damages.
This bill also extends the National Flood Insurance Program and
provides measures to increase mine safety.
Mr. Speaker, I hear from constituents every day whose unemployment
benefits are running out and do not know how to pay their mortgage,
utilities or food. We must keep safety nets available so that our
fellow Americans do not go hungry. Extending these lifelines
necessitates the use of emergency spending. The unemployment rate in
Detroit is alarmingly high, 27.9 percent which means nearly 254,465
unemployed people in the city. There needs to be a sense of urgency in
this chamber on job creation and specifically full employment, where
every American worker who wants a job would have the opportunity to do
so. I believe that investing in our greatest resource, the American
worker, should not be a partisan issue. Today's legislation is a good
first step but much more is required to help America recover from this
Great Recession. I look forward to continuing to work with my
colleagues on providing jobs for every American.
Ms. LORETTA SANCHEZ of California. Mr. Speaker, I rise in support of
H.R. 4213, the American Jobs and Closing Tax Loopholes
[[Page H4184]]
Act of 2010. This bill would create or save over one million jobs,
extend much needed help to those struggling to find work, and close tax
loopholes for corporations that send American jobs overseas. I was
unable to cast my vote in support of this important piece of
legislation and would like to reflect for the Record that, if I had
voted I would have voted yes.
With a 12.6% unemployment rate, my top priority is to get
Californians back to work; this bill would bring critical assistance to
those who are still looking for work by extending unemployment
insurance through November of this year.
This bill will also create and save jobs by extending tax credits to
small businesses, enabling them to hire more employees and expand
operations. More needs to be done to help our economy make a full
recovery and get our people back to work, but this bill takes care of
those who are suffering as our economy continues to recover.
Once again, I rise in support of this legislation.
Mr. HASTINGS of Washington. Mr. Speaker, I rise today in strong
opposition to the legislation before us today, which adds $54 billion
to the deficit and imposes new taxes on job-creating businesses.
Make no question, Mr. Speaker, that I support a number of the
provisions within this bill, including the extension of the state sales
tax deduction that is so important to residents of my home state of
Washington. In 2004, I was part of the effort that reinstated the state
sales tax deduction for the first time in nearly 20 years. Since then,
I have worked long and hard with my colleagues from both sides of the
aisle to extend this important provision and make it permanent.
For this reason, Mr. Speaker, I am frustrated that instead of simply
extending the state sales tax deduction and the other tax relief
provisions that help Americans reinvest in our economy, the Democrat
majority has chosen to tie these policies to a hodge-podge list of
government spending programs that will have nothing to do with creating
jobs and will balloon the deficit.
In addition, Mr. Speaker, this bill includes permanent tax increases
on job-creators--supposedly to ``offset'' the costs of extending
current tax relief measures for one year. It simply makes no sense to
give just a one-year temporary extension of the state sales tax
deduction while permanently raising other taxes. At the same time,
those who control Congress made no effort to offset $54 billion in
government spending included in the bill.
This defies logic, and increases the already stifling burden of debt
this Congress has saddled on our children and grandchildren.
While this bill includes some very worthy proposals that Congress
needs to pass, I can't support permanent new taxes on business
investment and job creation--especially at a time when our economy is
struggling.
I encourage my colleagues to vote no on this bill, and I stand ready
to work with my colleagues on legislation that will actually help put
our nation's economy on the road to recovery.
Mr. STARK. Mr. Speaker, I rise to oppose the American jobs and
Closing Tax Loopholes Act.
Three days ago I would have held my nose and supported this bill. I
deplore many of the corporate tax breaks extended here, I don't believe
it goes far enough to close loopholes that encourage off-shoring, and I
am angered that it fails to fully close the carried interest loophole.
However, the bill did include other key provisions to protect working
families and Medicare beneficiaries.
Unfortunately, ``Blue Dog'' Democrats insisted that many of those key
provisions be removed. Rather than reforming Medicare's physician
payment system and creating several years of stability, the bill has a
19-month patch that is far less than what is needed. The bill
eliminates the COBRA premium assistance program that enabled families
to maintain their health insurance while they are between jobs. They
even went so far as to remove emergency Medicaid funding for States
that was the only hope to prevent States from dumping women, children
and frail seniors off their Medicaid rolls.
What Congress does has consequences. When we choose to subsidize
corporations through the tax code, rather than sustain Medicaid or the
COBRA premium assistance program, our choice means people will lose
health care. I was reminded of this sad reality yesterday when a
constituent called to tell me he is getting laid off next month.
Without COBRA assistance, which expires on Monday, he will be without
health care. He was put in the difficult position of suggesting his
employer terminate him earlier so his family could afford to remain
insured. That isn't a choice anyone should be forced to make.
I cannot vote for this bill knowing that we are cutting off health
care to the unemployed, while continuing absurd tax breaks, such as the
so-called Research and Development Tax Credit. GAO has found that this
credit provides a windfall to huge corporations to engage in behavior
they would have engaged in with or without the credit. Eliminating this
credit and other wasteful corporate credits would allow us to pay for
COBRA assistance. Unfortunately, Congress is choosing corporate
interests over the interests of families and workers.
There are good provisions in this legislation. Extending the TANF
Emergency Contingency Fund so that States can continue successful
subsidized employment programs is the right thing to do. Continuing
extended unemployment insurance benefits for the millions of Americans
still looking for work is also the right thing to do. Providing pension
relief for workers is long overdue. I strongly support these
provisions.
But I cannot vote to support a bill that has been stripped of other
vitally important provisions for America's working families, while
maintaining special interest tax breaks.
Ms. ESHOO. Mr. Speaker, I rise today to express my views on the
American Jobs and Closing Tax Loopholes Act, H.R 4213. There are four
reasons I will vote for the bill.
It extends unemployment benefits for America's jobless workers at a
time when they need it most, providing basic assistance for needy
families.
It extends the temporary increase in the federal Medicaid matching
funds delivered to the states. This provision will give local
communities the certainty they need as they enter another fiscal year
strapped for cash.
It provides critical assistance to those struggling to pay for
healthcare by extending the COBRA premium assistance program.
It extends the Research and Development Tax Credit to the end of this
year, a tax credit I have fought to make permanent since entering
Congress in 1993. This is a very short extension, but it is better than
no extension at all.
Having said the above, I strenuously oppose other parts of the bill.
I believe Sections 411 and 412 on carried interest are bad policy
which could cause damage to a fragile economy struggling to create
jobs. Jobs are created by risk takers. Venture capitalists launch small
businesses. They invest in the communities in which they live. They
take significant risks when they bet on the next great American dream.
What is so unfortunate about this legislation is that it contains an
ill-advised provision that puts the job-creating engine of our
innovation economy in jeopardy by stopping inventors dead in their
tracks. I oppose the tax treatment in the bill because I believe it is
anti-job and anti-innovation.
Section 404 also runs counter to job creation and investing in
America. It limits the ability of businesses to bring revenue back to
the United States at a time when we can't afford to turn it away. It
also changes long-standing international tax law that will put our most
innovative U.S. companies at a disadvantage when competing around the
world.
I also strongly object to the cost of this bill. More than half of
the bill is not paid for. We should and can do better for the American
people.
Mr. Speaker, I cannot vote against those most in need, and I won't.
But I feel very strongly about the deep flaws in this legislation and
regret that the sections I point out are included in H.R. 4213. I hope
that by the time a Conference Report reaches us that these policies
will no longer be part of the legislation.
Mr. LANGEVIN. Mr. Speaker, I rise in support of this jobs and
economic assistance package, which includes an extension of numerous
tax provisions critical to sustaining and building jobs, while
providing relief to thousands of Rhode Islanders who are still
struggling to rebuild after a devastating recession and recent
catastrophic flooding.
Our economy is beginning to show signs of recovery, but that progress
has been slow in reaching Rhode Island. People are still looking for
jobs, small businesses are struggling to keep their doors open and
homeowners continue to face high rates of foreclosure. These problems
were only compounded by historic flooding in the Northeast, which
damaged and destroyed thousands of homes and businesses across Rhode
Island.
Our constituents deserve to know that we are doing everything in our
power to support them during these difficult times. This bill extends
unemployment insurance through November 30th to help families make ends
meet while they look for new job opportunities. It also continues
important small business lending programs to help spur job growth and
hiring.
I am particularly pleased that this bill contains an extension of the
national disaster tax provisions through 2010. Since the catastrophic
floods hit Rhode Island, I have worked tirelessly with our state's
delegation in pursuing every avenue of assistance and relief that the
federal government can provide. In addition to our other efforts, I
joined my colleague, Representative Patrick Kennedy, in introducing the
National Disaster Tax Extenders Act, to ensure that Rhode Islanders
would
[[Page H4185]]
be eligible to receive the same disaster tax assistance as other states
have in the past. I am happy to see that language included in this
bill.
The disaster provisions will give Rhode Islanders the maximum
opportunity to deduct losses from their federal income taxes as a
result of the flooding. They also allow businesses that have been
affected to deduct expenses like demolition, repair and clean up, as
well as apply a net operating loss carry back for 5 years, instead of
two.
This legislation also averts a 21 percent reimbursement cut to
physicians so they can continue to provide care to our seniors who rely
on Medicare. The reimbursement cut is replaced with a 2.2 percent
payment increase though 2010 and an additional 1 percent, increase in
2011. While I am disappointed that a permanent fix of the flawed
Medicare reimbursement formula was not possible given our current
budgetary constraints, it is my hope that Congress corrects this policy
soon, so we do not continue to sustain greater costs in the future.
Among other important provisions in this bill is financial relief for
our veterans that allows concurrent receipt of both military retirement
pay and VA military disability pay for 2 years. It provides an
extension of the Temporary Assistance for Needy Families, TANF,
emergency relief fund to help states with their social assistance and
employment programs. It extends numerous pro-business and pro-community
tax provisions, like the R&D tax credit, enhanced deductions for
charitable contributions, deduction of classroom expenses for teachers,
and investments in alternative energy use and development.
Last but certainly not least, this bill increases the amount that oil
companies are required to pay into the Oil Spill Liability Trust Fund,
so that the taxpayers are not left with the bill to clean up calamitous
man-made disasters like the tragic spill occurring in the Gulf of
Mexico right now.
This bill is not a permanent solution to our problems. It has been
significantly scaled back to minimize deficit spending, removing
critical Medicaid assistance to states as well as an extension of COBRA
health insurance premium assistance for the unemployed. Given Rhode
Island's continued budgetary deficits and the inevitable loss of
medical coverage to state residents, it is imperative that we take up
consideration of the Medicaid and COBRA provisions immediately after
Congress reconvenes in June.
In the mean time, I ask my colleagues to support the tax extenders
package before us today so we can provide assistance to families and
businesses that will help put Rhode Islanders back to work.
Mr. HIMES. Mr. Speaker, I rise today with regret that I am unable to
cast my vote in support of H.R. 4213 as it stands. I am acutely aware
that many families and workers across Connecticut are still struggling
from the severe downturn in our economy. Last winter, I supported and
voted for the American Recovery and Reinvestment Act. At the time,
economists from across the spectrum were calling for a stimulus, and I
continue to consider the stimulus a key element in a multi-pronged
approach to turn our economy around. While the stimulus is clearly
helping, we have yet to feel its full effects. Nearly $400 billion--or
more than half--of Recovery Act funds remain unspent. Given this fact,
I have serious reservations about authorizing additional spending at
this time.
The legislation settled on during this process would increase
spending by $115 billion, $60 billion of which is not paid for. While I
applaud efforts to trim the size and scope of this bill, it still
increases our national deficit without a plan to address our long-term
fiscal health.
My concerns with this bill are tempered by my enthusiastic support
for many of its provisions. I support, and have voted for, a permanent
repeal of the flawed Sustainable Growth Formula, SGR, which threatens
the financial viability of our medical providers for the sake of an
accounting gimmick. I recently added my name to a letter calling upon
the Senate to act on permanent reform of the SGR--these piecemeal
measures like the ``fix'' in this bill, while necessary in the short
term, are an irresponsible substitute for repealing and replacing this
flawed formula.
I support a strong safety net for our unemployed and under-employed,
and I have voted in favor of extending unemployment benefits. In a time
of economic upheaval, these benefits are crucial to helping families
make ends meet and stimulate the demand that leads to economic
recovery. And, I support a number of the expiring or expired provisions
in our tax code, such as the Research and Development tax credit, which
are critical to innovation and job creation.
While I support many of the provisions contained in the bill, I
generally will not and cannot support increased spending that does not
meet the true spirit of the PAYGO legislation I cosponsored last summer
and the President signed into law in February.
Today, I take a step towards thoughtfully rebalancing the budget.
While we all know that the economy has by no means fully recovered,
it's time to pull back government spending so that we don't find
ourselves in an even more dangerous fiscal predicament down the road.
Mr. ETHERIDGE. Mr. Speaker, I rise in support of H.R. 4213, American
Jobs, Closing Tax Loopholes, and Preventing Outsourcing Act.
After losing over $17 trillion in total household wealth over the
last 18 months of the Bush Administration, we have finally started on
the path to economic growth. Thanks to the efforts of this Congress, we
have had two straight months of job creation. Job losses have slowed
dramatically, plummeting housing prices have stabilized, and our
economy is beginning to produce again. Earlier this week, the
Congressional Budget Office released a new report highlighting the job-
creating impact of the Recovery Act. According to the CBO report, the
Recovery Act boosted the Nation's economy by up to 4.2% in the first
quarter of the year and has already supported as many as 2.8 million
jobs. However, the recovery is fragile and we must continue to help
businesses and individuals who are struggling. H.R. 4213 builds on
earlier efforts to create jobs and support small businesses. The most
important thing we can do to bolster our economy is to help provide
opportunity to everyone who is willing to work hard to make the most of
their God-given abilities. Earlier this week I visited two local
businesses in North Carolina. I visited a coffee shop that is thriving
after receiving a loan from the Small Business Administration, SBA, and
a high tech company that is looking to grow. This bill includes a
provision to extend the waiver of SBA fees and an extension of the
Research and Development tax credit that boosts high tech companies
like those in the Research Triangle Park. Among the other tax credits
that aid small businesses, H.R. 4213 includes a provision that extends
the special cost recovery period for restaurants and retail businesses
that are growing and making capital purchases.
This bill also extends the successful Build America Bonds initiative
that has led to billions of dollars of infrastructure improvements
around the country and thousands of new jobs. It supports summer jobs
initiatives that provide young people with employment and prepare them
for productive work in the private sector. It supports job creation in
the energy sector, so that America remains at the forefront of
technology and reduces its dependence on foreign oil.
There are so many good provisions in this bill that it is hard to
list them all, but I would like to call attention to two specific
benefits that particularly affect North Carolina's second district. For
years I have been working to correct an issue that prevents veterans
from receiving the benefits they were promised and which they deserve
on the basis of their service. I am proud to represent a large number
of veterans in my district and many of these North Carolinians deserve
``concurrent receipt'' that allows our veterans to collect both
disability and retirement pay. This bill provides concurrent receipt
for the next 2 years. I have also fought to make sure that North
Carolina's farmers, so hard-hit by the current economic downturn,
receive support so that local agriculture can continue to provide
quality food to America's dinner tables. As one of the Nation's leading
poultry producers, North Carolina needs the agriculture disaster
support provided by this bill, including assistance I demanded for
poultry farmers who suffered catastrophic losses during this recession.
Let us continue to empower Americans on Main Street. I support
helping our hard-working Americans and strengthening our economy. I
support H.R. 4213, the American Jobs, Closing Tax Loopholes, and
Preventing Outsourcing Act, and I urge my colleagues to join me in
voting for its passage.
Ms. ZOE LOFGREN of California. Mr. Speaker, I rise to express my
views on H.R. 4213, the American Jobs and Closing Tax Loopholes Act.
This is an important bill for our country as we continue to move out of
the economic recession. I will be voting in favor of H.R. 4213.
However, I have strong reservations about the carried interest tax
provisions in this bill and its impact on job growth in areas like
Silicon Valley, where innovation and venture capital funds play a key
role in the economy.
The American economy gained 290,000 jobs last month, the largest
number of job gains in a month since 2006, and the GDP increased by 3
percent last quarter. While these numbers clearly show positive
economic growth, the economy has not been recovering fast enough for
many families in Santa Clara County where unemployment is still at 11.4
percent--nearly 2 percent higher than the national average.
H.R. 4213 will do much to help California and Silicon Valley
families hit by this recession. This bill will provide California with
billions of dollars for unemployment benefits, direct assistance to
needy families and children,
[[Page H4186]]
emergency rental assistance, and summer youth programs. I support all
of these programs because they will provide a critical lifeline for
families trying to keep their heads above water and survive this
economic downturn.
These programs will help maintain the short-term stability of the
economy, but families in the long-term need jobs the private sector
will create. Venture capital investments help create these jobs of the
future. This is why I am so concerned about the section in the bill
that will increase the tax rate for carried interest as applied to
venture capital. Unlike private equity funds, venture capital
investments typically span multiple years and funding cycles. It is not
uncommon for it to take 10 to 15 years for these ideas to reach the
market, and in many cases they never do.
We have all heard of Google, Apple, Cisco, Genentech, and Tesla
Motors. All of these companies were at one point just an idea in the
minds of their founders. The system of venture capital allowed these
ideas to develop and grow into major industries that created hundreds
of thousands of jobs.
I applaud House leaders for delaying the implementation of changes
to the carried interest tax for a year, but the eventual hit to venture
capital investments is worrisome. Just as we are starting to emerge
from the ``Great Recession'' this seems an inopportune time to overturn
the venture capital system that has been an engine of job growth.
The SPEAKER pro tempore. All time for debate has expired.
Pursuant to House Resolution 1403, the previous question is ordered.
The question of adoption of the motion is divided.
The first portion of the divided question is: Will the House concur
in the Senate amendment with all of the matter proposed to be inserted
by the amendment of the House other than section 523?
The question is on the first portion of the divided question.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. CAMP. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
Pursuant to clause 9 of rule XX, this 15-minute vote on the first
portion of the divided question will be followed by a 5-minute vote on
the second portion of the divided question, if ordered.
The vote was taken by electronic device, and there were--yeas 215,
nays 204, not voting 13, as follows:
[Roll No. 324]
YEAS--215
Ackerman
Adler (NJ)
Altmire
Andrews
Arcuri
Baca
Baird
Baldwin
Barrow
Becerra
Berkley
Berman
Berry
Bishop (GA)
Bishop (NY)
Blumenauer
Boccieri
Boswell
Boucher
Brady (PA)
Braley (IA)
Brown, Corrine
Butterfield
Cao
Capps
Cardoza
Carnahan
Carney
Carson (IN)
Castor (FL)
Chandler
Childers
Chu
Clarke
Clay
Cleaver
Clyburn
Cohen
Conyers
Costa
Costello
Courtney
Critz
Crowley
Cuellar
Cummings
Dahlkemper
Davis (CA)
Davis (IL)
Davis (TN)
DeGette
Delahunt
DeLauro
Deutch
Dicks
Dingell
Doyle
Edwards (MD)
Ellison
Ellsworth
Engel
Eshoo
Etheridge
Farr
Fattah
Filner
Foster
Frank (MA)
Fudge
Garamendi
Gonzalez
Gordon (TN)
Grayson
Green, Al
Green, Gene
Grijalva
Gutierrez
Hall (NY)
Halvorson
Hare
Harman
Heinrich
Higgins
Hinchey
Hinojosa
Hirono
Hodes
Holden
Holt
Honda
Hoyer
Israel
Jackson (IL)
Jackson Lee (TX)
Johnson, E. B.
Kagen
Kanjorski
Kaptur
Kennedy
Kildee
Kilpatrick (MI)
Kilroy
Kind
Kirkpatrick (AZ)
Kissell
Kucinich
Langevin
Larsen (WA)
Larson (CT)
Lee (CA)
Levin
Lewis (GA)
Lipinski
Loebsack
Lofgren, Zoe
Lowey
Lujan
Lynch
Maffei
Maloney
Markey (MA)
Marshall
Matheson
Matsui
McCarthy (NY)
McCollum
McDermott
McGovern
Meek (FL)
Meeks (NY)
Miller (NC)
Miller, George
Mollohan
Moore (KS)
Moore (WI)
Moran (VA)
Murphy, Patrick
Nadler (NY)
Napolitano
Neal (MA)
Oberstar
Obey
Olver
Ortiz
Owens
Pallone
Pascrell
Pastor (AZ)
Payne
Pelosi
Perlmutter
Perriello
Peters
Peterson
Pingree (ME)
Pomeroy
Price (NC)
Quigley
Rahall
Rangel
Reyes
Richardson
Rodriguez
Ross
Rothman (NJ)
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schauer
Schiff
Schrader
Schwartz
Scott (GA)
Scott (VA)
Serrano
Sestak
Shea-Porter
Sherman
Sires
Skelton
Slaughter
Snyder
Space
Speier
Spratt
Sutton
Tanner
Teague
Thompson (CA)
Thompson (MS)
Tierney
Titus
Tonko
Towns
Tsongas
Van Hollen
Velazquez
Visclosky
Walz
Wasserman Schultz
Waters
Watson
Watt
Waxman
Weiner
Welch
Wilson (OH)
Woolsey
Wu
Yarmuth
NAYS--204
Aderholt
Akin
Alexander
Austria
Bachmann
Bachus
Barrett (SC)
Bartlett
Barton (TX)
Bean
Biggert
Bilbray
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehner
Bonner
Bono Mack
Boozman
Boustany
Boyd
Brady (TX)
Bright
Broun (GA)
Brown (SC)
Buchanan
Burgess
Burton (IN)
Buyer
Calvert
Camp
Campbell
Cantor
Capito
Capuano
Carter
Cassidy
Castle
Chaffetz
Coble
Coffman (CO)
Cole
Conaway
Connolly (VA)
Cooper
Crenshaw
Culberson
DeFazio
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Djou
Doggett
Donnelly (IN)
Dreier
Driehaus
Duncan
Edwards (TX)
Ehlers
Emerson
Fallin
Flake
Fleming
Forbes
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Giffords
Gingrey (GA)
Gohmert
Goodlatte
Granger
Griffith
Guthrie
Hall (TX)
Harper
Hastings (WA)
Heller
Hensarling
Herger
Herseth Sandlin
Hill
Himes
Hoekstra
Hunter
Inglis
Inslee
Issa
Jenkins
Johnson (IL)
Johnson, Sam
Jordan (OH)
King (IA)
King (NY)
Kingston
Kirk
Klein (FL)
Kline (MN)
Kosmas
Kratovil
Lamborn
Lance
Latham
LaTourette
Lee (NY)
Lewis (CA)
Linder
LoBiondo
Lucas
Luetkemeyer
Lummis
Lungren, Daniel E.
Mack
Manzullo
Marchant
Markey (CO)
McCarthy (CA)
McCaul
McClintock
McCotter
McHenry
McIntyre
McKeon
McMahon
McMorris Rodgers
McNerney
Mica
Michaud
Miller (FL)
Miller (MI)
Miller, Gary
Minnick
Mitchell
Moran (KS)
Murphy (CT)
Murphy (NY)
Murphy, Tim
Myrick
Neugebauer
Nunes
Nye
Olson
Paul
Paulsen
Pence
Petri
Pitts
Platts
Poe (TX)
Polis (CO)
Posey
Price (GA)
Putnam
Radanovich
Rehberg
Reichert
Roe (TN)
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Rooney
Ros-Lehtinen
Roskam
Royce
Salazar
Scalise
Schmidt
Schock
Sensenbrenner
Sessions
Shadegg
Shimkus
Shuster
Simpson
Smith (NE)
Smith (NJ)
Smith (TX)
Smith (WA)
Stark
Stearns
Sullivan
Taylor
Terry
Thompson (PA)
Thornberry
Tiahrt
Tiberi
Turner
Upton
Walden
Wamp
Westmoreland
Whitfield
Wilson (SC)
Wittman
Wolf
Young (AK)
Young (FL)
NOT VOTING--13
Boren
Brown-Waite, Ginny
Davis (AL)
Davis (KY)
Graves
Hastings (FL)
Johnson (GA)
Jones
Latta
Melancon
Ryan (WI)
Shuler
Stupak
{time} 1338
Mr. GUTIERREZ changed his vote from ``nay'' to ``yea.''
So the first portion of the divided question was adopted.
The result of the vote was announced as above recorded.
(By unanimous consent, Ms. Pelosi was allowed to speak out of order.)
Honoring Herb Shanks, Democratic Cloakroom Attendant
Ms. PELOSI. Mr. Speaker, I rise today to honor Herb Shanks, the
Cloakroom attendant of the House Democratic Cloakroom for the last 38
years. Herb is retiring today after serving this institution much
longer than probably most Members of the Congress. Indeed, he has
served under seven Speakers of the House, and generations of Members
have depended upon him.
As the Doorkeeper and Cloakroom Attendant, Herb has ensured the
safety and security of House Members and staff by controlling access to
the Democratic Cloakroom. He has also been a face of warm welcome to
all Members.
Herb's dedicated service is representative of the many staff who
serve this institution, particularly those who work in both the
Democratic and the Republican Cloakrooms, and the nonpartisan officers
who ensure smooth operations on the House floor. They may not be
household names, but they proudly serve our Nation's families. Herb is
joined here today by his twin daughters, Andrea and Angela; we thank
them for sharing their father with us.
We also note that Herb is the proud grandfather of four and great
grandfather of three. Today, we will present Herb with a flag that flew
over the Capitol in his honor on this, his day of retirement, after 38
years of service. It is a fitting tribute to this great patriot, Herb
Shanks.
[[Page H4187]]
Thank you, Herb.
I would now like to yield to the distinguished majority leader, Mr.
Hoyer.
Mr. HOYER. I thank the Speaker for yielding.
I have the honor of representing Herb in the Congress of the United
States. He was born in Aquasco in April of 1936. In my view, he's a
young man. For those of you who are much younger, I want you to know
he's still a young man.
Herb, let me say to you, as the Speaker has pointed out, Herb has
served with seven Speakers of the House, from Speaker Albert to Speaker
Pelosi. For those of you in the Republican Cloakroom, I've had the
opportunity to come over to your side, and I love the folks that you
have working on your side. Like Herb, they treat us all alike. There
are no Republicans or Democrats for them. They're just Members of
Congress who serve together and work together on behalf of our country.
Herb, you have been a wonderful friend, and you have made everybody's
day brighter every time they come in contact with you. You have been
someone who has been so thoughtful, so courteous, so kind that all of
us have been advantaged and our lives have been made better by your
service. And Herb, as you leave--not our hearts, but this House, at
least the Cloakroom--we know that you will hopefully come back from
time to time and visit with us, and we will be again enriched with your
presence and your demeanor.
We wish you God speed. And we say to you, thank you, good friend.
{time} 1345
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore. Without objection, 5-minute voting will
continue.
There was no objection.
The SPEAKER pro tempore. The second portion of the divided question
is: Will the House concur in the Senate amendment with the matter
proposed to be inserted as section 523 of the amendment of the House?
The question is on the second portion of the divided question.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Recorded Vote
Mr. LEVIN. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 245,
noes 171, not voting 16, as follows:
[Roll No. 325]
AYES--245
Ackerman
Adler (NJ)
Altmire
Andrews
Arcuri
Baca
Baldwin
Barrow
Bean
Becerra
Berkley
Berman
Berry
Bilbray
Bilirakis
Bishop (GA)
Bishop (NY)
Blumenauer
Boccieri
Boswell
Boucher
Boyd
Brady (PA)
Braley (IA)
Brown, Corrine
Burgess
Butterfield
Buyer
Capito
Capps
Capuano
Cardoza
Carnahan
Carney
Carson (IN)
Cassidy
Castor (FL)
Chandler
Childers
Chu
Clarke
Clay
Cleaver
Clyburn
Cohen
Connolly (VA)
Conyers
Costa
Costello
Courtney
Critz
Crowley
Cuellar
Cummings
Davis (CA)
Davis (IL)
Davis (TN)
DeFazio
DeGette
DeLauro
Dent
Deutch
Dicks
Dingell
Doggett
Donnelly (IN)
Doyle
Driehaus
Edwards (MD)
Edwards (TX)
Ehlers
Ellison
Ellsworth
Engel
Eshoo
Etheridge
Farr
Fattah
Filner
Foster
Frank (MA)
Fudge
Garamendi
Giffords
Gonzalez
Gordon (TN)
Grayson
Green, Al
Green, Gene
Grijalva
Hall (NY)
Halvorson
Hare
Heinrich
Higgins
Hill
Himes
Hinchey
Hinojosa
Hirono
Hodes
Holden
Holt
Honda
Hoyer
Inslee
Israel
Jackson (IL)
Jackson Lee (TX)
Johnson (GA)
Johnson, E. B.
Kagen
Kanjorski
Kaptur
Kennedy
Kildee
Kilpatrick (MI)
Kilroy
Kind
Kirk
Kirkpatrick (AZ)
Kissell
Klein (FL)
Kosmas
Kratovil
Kucinich
Langevin
Larsen (WA)
Larson (CT)
LaTourette
Lee (CA)
Levin
Lewis (GA)
Loebsack
Lofgren, Zoe
Lowey
Lujan
Maffei
Maloney
Markey (CO)
Markey (MA)
Marshall
Matheson
Matsui
McCarthy (NY)
McCaul
McCollum
McGovern
McNerney
Meek (FL)
Meeks (NY)
Michaud
Miller (NC)
Miller, George
Mitchell
Mollohan
Moore (KS)
Moore (WI)
Moran (VA)
Murphy (CT)
Murphy (NY)
Murphy, Patrick
Nadler (NY)
Napolitano
Neal (MA)
Nye
Oberstar
Obey
Olver
Ortiz
Owens
Pallone
Pascrell
Pastor (AZ)
Payne
Pelosi
Perlmutter
Perriello
Peters
Peterson
Pingree (ME)
Polis (CO)
Pomeroy
Price (NC)
Quigley
Rahall
Rangel
Reyes
Richardson
Rodriguez
Rogers (KY)
Ross
Rothman (NJ)
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sanchez, Linda T.
Sarbanes
Schakowsky
Schauer
Schiff
Schrader
Schwartz
Scott (GA)
Scott (VA)
Sestak
Shea-Porter
Sherman
Sires
Skelton
Slaughter
Smith (WA)
Snyder
Space
Speier
Spratt
Stark
Sutton
Tanner
Thompson (CA)
Thompson (MS)
Tierney
Titus
Tonko
Towns
Tsongas
Van Hollen
Velazquez
Visclosky
Walz
Wasserman Schultz
Waters
Watson
Watt
Waxman
Weiner
Welch
Whitfield
Wilson (OH)
Woolsey
Wu
Yarmuth
Young (AK)
Young (FL)
NOES--171
Aderholt
Akin
Alexander
Austria
Bachmann
Bachus
Baird
Barrett (SC)
Bartlett
Barton (TX)
Biggert
Bishop (UT)
Blackburn
Blunt
Boehner
Bonner
Bono Mack
Boozman
Boustany
Brady (TX)
Bright
Broun (GA)
Brown (SC)
Buchanan
Burton (IN)
Calvert
Camp
Campbell
Cantor
Cao
Carter
Castle
Chaffetz
Coble
Coffman (CO)
Cole
Conaway
Cooper
Crenshaw
Culberson
Dahlkemper
Diaz-Balart, L.
Diaz-Balart, M.
Djou
Dreier
Duncan
Emerson
Fallin
Flake
Fleming
Forbes
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gingrey (GA)
Gohmert
Goodlatte
Granger
Griffith
Guthrie
Hall (TX)
Harman
Harper
Hastings (WA)
Heller
Hensarling
Herger
Herseth Sandlin
Hoekstra
Hunter
Inglis
Issa
Jenkins
Johnson (IL)
Johnson, Sam
Jordan (OH)
King (IA)
King (NY)
Kingston
Kline (MN)
Lamborn
Lance
Latham
Lee (NY)
Lewis (CA)
Linder
Lipinski
LoBiondo
Lucas
Luetkemeyer
Lummis
Lungren, Daniel E.
Lynch
Mack
Manzullo
Marchant
McCarthy (CA)
McClintock
McCotter
McDermott
McHenry
McIntyre
McKeon
McMahon
McMorris Rodgers
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Minnick
Moran (KS)
Murphy, Tim
Myrick
Neugebauer
Nunes
Olson
Paul
Paulsen
Pence
Petri
Pitts
Platts
Poe (TX)
Posey
Price (GA)
Putnam
Radanovich
Rehberg
Reichert
Roe (TN)
Rogers (AL)
Rogers (MI)
Rohrabacher
Rooney
Ros-Lehtinen
Roskam
Royce
Salazar
Scalise
Schmidt
Schock
Sensenbrenner
Sessions
Shadegg
Shimkus
Shuster
Simpson
Smith (NE)
Smith (NJ)
Smith (TX)
Stearns
Sullivan
Taylor
Teague
Terry
Thompson (PA)
Thornberry
Tiahrt
Tiberi
Turner
Upton
Walden
Wamp
Westmoreland
Wilson (SC)
Wittman
Wolf
NOT VOTING--16
Boren
Brown-Waite, Ginny
Davis (AL)
Davis (KY)
Delahunt
Graves
Gutierrez
Hastings (FL)
Jones
Latta
Melancon
Ryan (WI)
Sanchez, Loretta
Serrano
Shuler
Stupak
{time} 1352
Mr. BAIRD changed his vote from ``aye'' to ``no.''
So the second portion of the divided question was adopted.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________