[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.

                          ____________________