[Congressional Record Volume 156, Number 161 (Wednesday, December 8, 2010)]
[Senate]
[Pages S8642-S8651]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4740. Ms. LANDRIEU submitted an amendment intended to be proposed 
by her to the bill S. 3454, to authorize appropriations for fiscal year 
2011 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate end of subtitle B of title X, add the 
     following:

     SEC. 1012. REPLACEMENT COMBAT LOGISTICS FORCE UNDERWAY 
                   REPLENISHMENT SHIP CAPABILITIES FOR THE NAVY ON 
                   A COMMERCIAL FEE-FOR-SERVICE BASIS.

       (a) In General.--
       (1) Program required.--The Secretary of the Navy shall 
     carry out a program, in response to Naval Surface Warfare 
     Center Carderock Division Combat Logistics Force Energy 
     Saving Program, BAA N000167-09-BAA-01, to obtain replacement 
     combat logistics force underway replenishment ship 
     capabilities for the Navy on a commercial fee-for-service 
     basis.
       (2) Determination of replacement ships required.--As part 
     of the program required by this section, the Secretary--
       (A) shall determine an initial number of fleet oiler ships 
     to be constructed, leased, or both under the program to meet 
     anticipated demands of the Navy for combat logistics force 
     underway replenishment ships; and
       (B) may from time to time determine an additional number of 
     fleet oiler ships to be constructed, leased, or both for such 
     purpose.

[[Page S8643]]

       (3) Availability of funds.--Of the amount authorized to be 
     appropriated for research, development, test, and evaluation 
     by section 201 and available for the Navy as specified in the 
     funding table in section 4201, $20,000,000 shall be available 
     for contractor activities for phase 1 (detailed combat 
     logistics force fee-for-service performance requirements 
     specification and detailed feasibility study reflecting such 
     performance requirements) and phase 2 (completion of adequate 
     development work to support contractor delivery of a fixed-
     price multi-year fee-for service proposal, consistent with 
     this section and with sufficient detail and cost definition 
     support to meet government contracting requirements) of the 
     program required by this section. Such funds shall be 
     available for that purpose without fiscal year limitation.
       (4) Budgeting.--The budget of the President for each fiscal 
     year after fiscal year 2011 (as submitted to Congress 
     pursuant to section 1105(a) of title 31, United States Code) 
     shall specify the funds to be required in such fiscal year 
     for the program required by this section, including amounts 
     to be required for the following:
       (A) The capital costs to be incurred in such fiscal year in 
     connection with national defense features or modifications of 
     fleet oiler ships constructed or leased under phase 3 of the 
     program.
       (B) The costs of executing multi-year contracts authorized 
     by subsection (b) during such fiscal year.
       (b) Multiyear Contracts To Obtain Replenishment Support 
     Using Ships Constructed Under Program.--
       (1) In general.--In carrying out the program required by 
     this section, the Secretary of the Navy may not enter into 
     one or more multiyear contracts for the purpose of obtaining 
     combat logistics force underway replenishment support for the 
     Navy using ships constructed or leased under the program on a 
     commercial fee-for-service basis unless an appropriation is 
     provided in advance specifically for all obligations to be 
     made under the contract, including any obligations for 
     payments to be made in years after the year in which the 
     contract is entered into, any obligations for payments for 
     early cancellation of the contract, and any obligations for 
     payments for the exercise of contract options.
       (2) Elements.--Each contract under this subsection shall 
     provide for payment by the United States of the following:
       (A) The operational cost of combat logistics force underway 
     replenishment support provided the Navy by the ship or ships 
     covered by the contract.
       (B) The costs of any national defense features or 
     modifications on the ship or ships covered by the contract, 
     which costs shall be paid in full through equal monthly 
     installments under the contract over a number of months (not 
     to exceed 60 months) beginning on or after the date on which 
     the Navy certifies that the ship or ships covered by the 
     contract are qualified and meet Navy standards to provide 
     combat logistics force underway replenishment support for the 
     Navy.
       (3) Compliance with law applicable to multiyear 
     contracts.--Any contract entered into under this subsection 
     shall be entered into in accordance with the provisions of 
     section 2306c of title 10, United States Code, except that--
       (A) notwithstanding subsection (b) of such section, the 
     combat logistics force underway replenishment support for the 
     Navy to be obtained under the contract shall be treated as 
     services to which the authority in subsection (a) of such 
     section applies;
       (B) the term of the contract may not be more than eight 
     years; and
       (C) notwithstanding subsections (d) and (e) of such 
     section--
       (i) the contract may not be entered into unless amounts 
     necessary to cover all costs of cancellation of the contract 
     are appropriated before the contract is entered into; and
       (ii) funds appropriated in advance for performance of the 
     contract shall be the only funds available for costs of 
     cancellation of the contract.
       (4) Compliance with law applicable to service contracts.--A 
     contract entered into under this subsection shall be entered 
     into in accordance with the provisions of section 2401 of 
     title 10, United States Code, except that--
       (A) the Secretary shall not be required to certify to the 
     congressional defense committees that the contract is the 
     most cost-effective means of obtaining combat logistics force 
     underway replenishment support for the Navy; and
       (B) the Secretary shall not be required to certify to the 
     congressional defense committees that there is no alternative 
     for meeting urgent operational requirements other than making 
     the contract.
       (5) Limitation on amount.--The amount of any contract 
     (including any options) under this subsection may not exceed 
     $999,999,999.
       (c) Preference for Financing Under Federal Ship Financing 
     Program.--A contractor seeking financing for a ship whose 
     principal service will be the provision of combat logistics 
     force underway replenishment support for the Navy under a 
     contract under subsection (b) shall be given approval 
     preference by the Secretary of Transportation for the Federal 
     Ship Financing Program under chapter 537 of title 46, United 
     States Code.
       (d) Government War Risk Insurance.--A contractor with the 
     Navy under subsection (b) shall be eligible for Government-
     provided war risk insurance for the ship or ships covered by 
     the contract in accordance with chapter 539 of title 46, 
     United States Code, with the following exceptions:
       (1) With regard to section 53902(a) of such title, the 
     Secretary of the Navy may act for the Secretary of 
     Transportation in approving the issuance of such insurance.
       (2) While an insured ship is completely dedicated to the 
     provision of combat logistics force underway replenishment 
     support for the Navy, the insurance may be issued as agency 
     insurance in accordance with section 53905 of such title.
                                 ______
                                 
  SA 4741. Ms. LANDRIEU submitted an amendment intended to be proposed 
by her to the bill S. 3454, to authorize appropriations for fiscal year 
2011 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle C of title I, add the following:

     SEC. 126. ADDITIONAL COMBAT SHIP MATTERS.

       (a) Modifications to Littoral Combat Ship Program 
     Authority.--Section 121 of the National Defense Authorization 
     Act for Fiscal Year 2010 (Public Law 111-84; 123 Stat. 2211) 
     is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``ten Littoral Combat Ships and 15 Littoral 
     Combat Ship ship control and weapon systems'' and inserting 
     ``20 Littoral Combat Ships (LCS), including ship control and 
     weapon systems,''; and
       (ii) by striking ``a contract'' and inserting ``one or more 
     contracts''; and
       (B) in paragraph (2)--
       (i) by striking ``A contract'' and inserting ``Any 
     contract''; and
       (ii) by striking ``liability to'' and inserting ``liability 
     of'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``a procurement'' and 
     inserting ``any contract''; and
       (B) in paragraph (2)--
       (i) by striking ``a Littoral'' and inserting ``any 
     Littoral''; and
       (ii) in subparagraph (A), by striking ``a second shipyard, 
     as soon as practicable'' and inserting ``another shipyard to 
     build to a design specification for that Littoral Combat 
     Ship''; and
       (3) in subsection (c)(1), by striking ``awarded to a 
     contractor selected as part of a procurement'' and inserting 
     ``under any contract''.
       (b) Replacement Combat Logistics Force Underway 
     Replenishment Ship Capabilities for the Navy on a Commercial 
     Fee-for-service Basis.--
       (1) Program required.--The Secretary of the Navy shall 
     carry out a program, in response to Naval Surface Warfare 
     Center Carderock Division Combat Logistics Force Energy 
     Saving Program, BAA N000167-09-BAA-01, to obtain replacement 
     combat logistics force underway replenishment ship 
     capabilities for the Navy on a commercial fee-for-service 
     basis.
       (2) Determination of replacement ships required.--As part 
     of the program required by this subsection, the Secretary--
       (A) shall determine an initial number of fleet oiler ships 
     to be constructed, leased, or both under the program to meet 
     anticipated demands of the Navy for combat logistics force 
     underway replenishment ships; and
       (B) may from time to time determine an additional number of 
     fleet oiler ships to be constructed, leased, or both for such 
     purpose.
       (3) Availability of funds.--Of the amount authorized to be 
     appropriated for research, development, test, and evaluation 
     by section 201 and available for the Navy as specified in the 
     funding table in section 4201, $20,000,000 shall be available 
     for contractor activities for phase 1 (detailed combat 
     logistics force fee-for-service performance requirements 
     specification and detailed feasibility study reflecting such 
     performance requirements) and phase 2 (completion of adequate 
     development work to support contractor delivery of a fixed-
     price multi-year fee-for service proposal, consistent with 
     this section and with sufficient detail and cost definition 
     support to meet government contracting requirements) of the 
     program required by this section. Such funds shall be 
     available for that purpose without fiscal year limitation.
       (4) Budgeting.--The budget of the President for each fiscal 
     year after fiscal year 2011 (as submitted to Congress 
     pursuant to section 1105(a) of title 31, United States Code) 
     shall specify the funds to be required in such fiscal year 
     for the program required by this section, including amounts 
     to be required for the following:
       (A) The capital costs to be incurred in such fiscal year in 
     connection with national defense features or modifications of 
     fleet oiler ships constructed or leased under phase 3 of the 
     program.
       (B) The costs of executing multi-year contracts authorized 
     by subsection (c) during such fiscal year.
       (c) Multiyear Contracts To Obtain Replenishment Support 
     Using Ships Constructed Under Program.--
       (1) In general.--In carrying out the program required by 
     this section, the Secretary of the Navy may not enter into 
     one or more

[[Page S8644]]

     multiyear contracts for the purpose of obtaining combat 
     logistics force underway replenishment support for the Navy 
     using ships constructed or leased under the program on a 
     commercial fee-for-service basis unless an appropriation is 
     provided in advance specifically for all obligations to be 
     made under the contract, including any obligations for 
     payments to be made in years after the year in which the 
     contract is entered into, any obligations for payments for 
     early cancellation of the contract, and any obligations for 
     payments for the exercise of contract options.
       (2) Elements.--Each contract under this subsection shall 
     provide for payment by the United States of the following:
       (A) The operational cost of combat logistics force underway 
     replenishment support provided the Navy by the ship or ships 
     covered by the contract.
       (B) The costs of any national defense features or 
     modifications on the ship or ships covered by the contract, 
     which costs shall be paid in full through equal monthly 
     installments under the contract over a number of months (not 
     to exceed 60 months) beginning on or after the date on which 
     the Navy certifies that the ship or ships covered by the 
     contract are qualified and meet Navy standards to provide 
     combat logistics force underway replenishment support for the 
     Navy.
       (3) Compliance with law applicable to multiyear 
     contracts.--Any contract entered into under this subsection 
     shall be entered into in accordance with the provisions of 
     section 2306c of title 10, United States Code, except that--
       (A) notwithstanding subsection (b) of such section, the 
     combat logistics force underway replenishment support for the 
     Navy to be obtained under the contract shall be treated as 
     services to which the authority in subsection (a) of such 
     section applies;
       (B) the term of the contract may not be more than eight 
     years; and
       (C) notwithstanding subsections (d) and (e) of such 
     section--
       (i) the contract may not be entered into unless amounts 
     necessary to cover all costs of cancellation of the contract 
     are appropriated before the contract is entered into; and
       (ii) funds appropriated in advance for performance of the 
     contract shall be the only funds available for costs of 
     cancellation of the contract.
       (4) Compliance with law applicable to service contracts.--A 
     contract entered into under this subsection shall be entered 
     into in accordance with the provisions of section 2401 of 
     title 10, United States Code, except that--
       (A) the Secretary shall not be required to certify to the 
     congressional defense committees that the contract is the 
     most cost-effective means of obtaining combat logistics force 
     underway replenishment support for the Navy; and
       (B) the Secretary shall not be required to certify to the 
     congressional defense committees that there is no alternative 
     for meeting urgent operational requirements other than making 
     the contract.
       (5) Limitation on amount.--The amount of any contract 
     (including any options) under this subsection may not exceed 
     $999,999,999.
       (d) Preference for Financing Under Federal Ship Financing 
     Program.--A contractor seeking financing for a ship whose 
     principal service will be the provision of combat logistics 
     force underway replenishment support for the Navy under a 
     contract under subsection (c) shall be given approval 
     preference by the Secretary of Transportation for the Federal 
     Ship Financing Program under chapter 537 of title 46, United 
     States Code.
       (e) Government War Risk Insurance.--A contractor with the 
     Navy under subsection (c) shall be eligible for Government-
     provided war risk insurance for the ship or ships covered by 
     the contract in accordance with chapter 539 of title 46, 
     United States Code, with the following exceptions:
       (1) With regard to section 53902(a) of such title, the 
     Secretary of the Navy may act for the Secretary of 
     Transportation in approving the issuance of such insurance.
       (2) While an insured ship is completely dedicated to the 
     provision of combat logistics force underway replenishment 
     support for the Navy, the insurance may be issued as agency 
     insurance in accordance with section 53905 of such title.
                                 ______
                                 
  SA 4742. Mr. BENNET (for Mr. Reid (for himself, Mr. McConnell, Mr. 
Baucus, and Mr. Grassley)) proposed an amendment to the bill H.R. 4994, 
to extend certain expiring provisions of the Medicare and Medicaid 
programs, and for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Medicare 
     and Medicaid Extenders Act of 2010''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                          TITLE I--EXTENSIONS

Sec. 101. Physician payment update.
Sec. 102. Extension of MMA section 508 reclassifications.
Sec. 103. Extension of Medicare work geographic adjustment floor.
Sec. 104. Extension of exceptions process for Medicare therapy caps.
Sec. 105. Extension of payment for technical component of certain 
              physician pathology services.
Sec. 106. Extension of ambulance add-ons.
Sec. 107. Extension of physician fee schedule mental health add-on 
              payment.
Sec. 108. Extension of outpatient hold harmless provision.
Sec. 109. Extension of Medicare reasonable costs payments for certain 
              clinical diagnostic laboratory tests furnished to 
              hospital patients in certain rural areas.
Sec. 110. Extension of the qualifying individual (QI) program.
Sec. 111. Extension of Transitional Medical Assistance (TMA).
Sec. 112. Special diabetes programs.

                       TITLE II--OTHER PROVISIONS

Sec. 201. Clarification of effective date of part B special enrollment 
              period for disabled TRICARE beneficiaries.
Sec. 202. Repeal of delay of RUG-IV.
Sec. 203. Clarification for affiliated hospitals for distribution of 
              additional residency positions.
Sec. 204. Continued inclusion of orphan drugs in definition of covered 
              outpatient drugs with respect to children's hospitals 
              under the 340B drug discount program.
Sec. 205. Medicaid and CHIP technical corrections.
Sec. 206. Funding for claims reprocessing.
Sec. 207. Revision to the Medicare Improvement Fund.
Sec. 208. Limitations on aggregate amount recovered on reconciliation 
              of the health insurance tax credit and the advance of 
              that credit.
Sec. 209. Determination of budgetary effects.

                          TITLE I--EXTENSIONS

     SEC. 101. PHYSICIAN PAYMENT UPDATE.

       Section 1848(d) of the Social Security Act (42 U.S.C. 
     1395w-4(d)) is amended by adding at the end the following new 
     paragraph:
       ``(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 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.''.

     SEC. 102. EXTENSION OF MMA SECTION 508 RECLASSIFICATIONS.

       (a) Extension.--
       (1) 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 
     the Patient Protection and Affordable Care Act (Public Law 
     111-148), is amended by striking ``September 30, 2010'' and 
     inserting ``September 30, 2011''.
       (2) Special rule for fiscal year 2011.--
       (A) In general.--Subject to subparagraph (B), for purposes 
     of implementation of the amendment made by paragraph (1), 
     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 
     2011, the Secretary of Health and Human Services shall use 
     the hospital wage index that was promulgated by the Secretary 
     of Health and Human Services in the Federal Register on 
     August 16, 2010 (75 Fed. Reg. 50042), and any subsequent 
     corrections.
       (B) Exception.--Beginning on April 1, 2011, in determining 
     the wage index applicable to hospitals that qualify for wage 
     index reclassification, the Secretary shall include the 
     average hourly wage data of hospitals whose reclassification 
     was extended pursuant to the amendment made by paragraph (1) 
     only if including such data results in a higher applicable 
     reclassified wage index. Any revision to hospital wage 
     indexes made as a result of this subparagraph shall not be 
     effected in a budget neutral manner.
       (3) Adjustment for certain hospitals in fiscal year 2011.--
       (A) In general.--In the case of a subsection (d) hospital 
     (as defined in subsection (d)(1)(B) of section 1886 of the 
     Social Security Act (42 U.S.C. 1395ww)) with respect to 
     which--
       (i) a reclassification of its wage index for purposes of 
     such section was extended pursuant to the amendment made by 
     paragraph (1); and
       (ii) the wage index applicable for such hospital for the 
     period beginning on October 1, 2010, and ending on March 31, 
     2011, was lower than for the period beginning on April 1, 
     2011, and ending on September 30, 2011, by reason of the 
     application of paragraph (2)(B);

     the Secretary shall pay such hospital an additional payment 
     that reflects the difference between the wage index for such 
     periods.
       (B) Timeframe for payments.--The Secretary shall make 
     payments required under

[[Page S8645]]

     subparagraph (A) by not later than December 31, 2011.
       (b) Conforming Amendment.--Section 117(a)(3) of the 
     Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public 
     Law 110-173) is amended by inserting ``in fiscal years 2008 
     and 2009'' after ``For purposes of implementation of this 
     subsection''.

     SEC. 103. EXTENSION OF MEDICARE WORK GEOGRAPHIC ADJUSTMENT 
                   FLOOR.

       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, 
     2011'' and inserting ``before January 1, 2012''.

     SEC. 104. EXTENSION OF EXCEPTIONS PROCESS FOR MEDICARE 
                   THERAPY CAPS.

       Section 1833(g)(5) of the Social Security Act (42 U.S.C. 
     1395l(g)(5)) is amended by striking ``and ending on'' and all 
     that follows through ``2010'' and inserting ``and ending on 
     December 31, 2011''.

     SEC. 105. 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), section 136 of the Medicare Improvements for 
     Patients and Providers Act of 2008 (Public Law 110-275), and 
     section 3104 of the Patient Protection and Affordable Care 
     Act (Public Law 111-148) is amended by striking ``and 2010'' 
     and inserting ``2010, and 2011''.

     SEC. 106. EXTENSION OF AMBULANCE ADD-ONS.

       (a) Ground Ambulance.--Section 1834(l)(13)(A) of the Social 
     Security Act (42 U.S.C. 1395m(l)(13)(A)) is amended--
       (1) in the matter preceding clause (i), by striking 
     ``2011'' and inserting ``2012,''; and
       (2) in each of clauses (i) and (ii), by striking ``January 
     1, 2011'' and inserting ``January 1, 2012'' each place it 
     appears.
       (b) Air Ambulance.--Section 146(b)(1) of the Medicare 
     Improvements for Patients and Providers Act of 2008 (Public 
     Law 110-275), as amended by sections 3105(b) and 10311(b) of 
     Public Law 111-148, is amended by striking ``December 31, 
     2010'' and inserting ``December 31, 2011''.
       (c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the 
     Social Security Act (42 U.S.C. 1395m(l)(12)(A)) is amended by 
     striking ``2011'' and inserting ``2012''.

     SEC. 107. EXTENSION OF PHYSICIAN FEE SCHEDULE MENTAL HEALTH 
                   ADD-ON PAYMENT.

       Section 138(a)(1) of the Medicare Improvements for Patients 
     and Providers Act of 2008 (Public Law 110-275), as amended by 
     section 3107 of the Patient Protection and Affordable Care 
     Act (Public Law 111-148), is amended by striking ``December 
     31, 2010'' and inserting ``December 31, 2011''.

     SEC. 108. EXTENSION OF OUTPATIENT HOLD HARMLESS PROVISION.

       Section 1833(t)(7)(D)(i) of the Social Security Act (42 
     U.S.C. 1395l(t)(7)(D)(i)), as amended by section 3121(a) of 
     the Patient Protection and Affordable Care Act (Public Law 
     111-148), is amended--
       (1) in subclause (II)--
       (A) in the first sentence, by striking ``2011''and 
     inserting ``2012''; and
       (B) in the second sentence, by striking ``or 2010'' and 
     inserting ``2010, or 2011''; and
       (2) in subclause (III), by striking ``January 1, 2011'' and 
     inserting ``January 1, 2012''.

     SEC. 109. EXTENSION OF MEDICARE REASONABLE COSTS PAYMENTS FOR 
                   CERTAIN CLINICAL DIAGNOSTIC LABORATORY TESTS 
                   FURNISHED TO HOSPITAL PATIENTS IN CERTAIN RURAL 
                   AREAS.

       Section 416(b) of the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003 (42 U.S.C. 1395l-
     4), as amended by section 105 of division B of the Tax Relief 
     and Health Care Act of 2006 (42 U.S.C. 1395l note), section 
     107 of the Medicare, Medicaid, and SCHIP Extension Act of 
     2007 (42 U.S.C. 1395l note), and section 3122 of the Patient 
     Protection and Affordable Care Act (Public Law 111-148), is 
     amended by striking ``the 1-year period beginning on July 1, 
     2010'' and inserting ``the 2-year period beginning on July 1, 
     2010''.

     SEC. 110. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) 
                   PROGRAM.

       (a) Extension.--Section 1902(a)(10)(E)(iv) of the Social 
     Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by 
     striking ``December 2010'' and inserting ``December 2011''.
       (b) Extending Total Amount Available for Allocation.--
     Section 1933(g) of such Act (42 U.S.C. 1396u-3(g)) is 
     amended--
       (1) in paragraph (2)--
       (A) by striking ``and'' at the end of subparagraph (M);
       (B) in subparagraph (N), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following new subparagraphs:
       ``(O) for the period that begins on January 1, 2011, and 
     ends on September 30, 2011, the total allocation amount is 
     $720,000,000; and
       ``(P) for the period that begins on October 1, 2011, and 
     ends on December 31, 2011, the total allocation amount is 
     $280,000,000.''; and
       (2) in paragraph (3), in the matter preceding subparagraph 
     (A), by striking ``or (N)'' and inserting ``(N), or (P)''.

     SEC. 111. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA).

       Sections 1902(e)(1)(B) and 1925(f) of the Social Security 
     Act (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are each amended 
     by striking ``December 31, 2010'' and inserting ``December 
     31, 2011''.

     SEC. 112. SPECIAL DIABETES PROGRAMS.

       (1) Special diabetes programs for type i diabetes.--Section 
     330B(b)(2)(C) of the Public Health Service Act (42 U.S.C. 
     254c-2(b)(2)(C)) is amended by striking ``2011'' and 
     inserting ``2013''.
       (2) Special diabetes programs for indians.--Section 
     330C(c)(2)(C) of the Public Health Service Act (42 U.S.C. 
     254c-3(c)(2)(C)) is amended by striking ``2011'' and 
     inserting ``2013''.

                       TITLE II--OTHER PROVISIONS

     SEC. 201. 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 on and after the date of the 
     enactment of this Act.''.

     SEC. 202. 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. 203. CLARIFICATION FOR AFFILIATED HOSPITALS FOR 
                   DISTRIBUTION OF ADDITIONAL RESIDENCY POSITIONS.

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

     SEC. 204. 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. 205. MEDICAID AND CHIP TECHNICAL CORRECTIONS.

       (a) Repeal of Exclusion of Certain Individuals and Entities 
     From Medicaid.--Section 1902(a) of the Social Security Act 
     (42 U.S.C. 1396a(a)) is amended by striking paragraph (78).
       (b) Income Level for Certain Children Under Medicaid.--
     Section 1902(l)(2)(C) of the Social Security Act (42 U.S.C. 
     1396a(l)(2)(C)) is amended by striking ``133 percent'' and 
     inserting ``100 percent (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

[[Page S8646]]

     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'';
       (B) in subsection (a)(23), by striking ``(ii)'' and 
     inserting ``(kk)'';
       (C) in subsection (a)(77), by striking ``(ii)'' and 
     inserting ``(kk)'';
       (D) in subsection (ii)(2), as added by section 2303(a)(2) 
     of Public Law 111-148, by striking ``(XV)'' and inserting 
     ``(XVI)''; and
       (E) by redesignating subsection (ii), as added by section 
     6401(b)(1)(B) of Public Law 111-148, as subsection (kk) and 
     transferring such subsection so as to appear after subsection 
     (jj) of that section.
       (2) Section 2107(e)(1) of the Social Security Act (42 
     U.S.C. 1397gg(e)(1)) is amended--
       (A) in subparagraph (D), as added by section 6401(c) of 
     Public Law 111-148, by striking ``(ii)'' and inserting 
     ``(kk)''; and
       (B) by redesignating the subparagraph (N) of that section 
     added by 2101(e) of Public Law 111-148 as subparagraph (O).

     SEC. 206. 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, or relating 
     to, such title that ensure appropriate payment 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, $200,000,000. 
     Amounts appropriated under the preceding sentence shall be in 
     addition to any other funds available for such purposes, 
     shall remain available until expended, and shall not be used 
     to implement changes to title XVIII of the Social Security 
     Act made by Public Laws 111-148 and 111-152.

     SEC. 207. REVISION TO THE MEDICARE IMPROVEMENT FUND.

       Section 1898(b)(1)(B) of the Social Security Act (42 U.S.C. 
     1395iii(b)(1)(B)) is amended by striking ``$550,000,000'' and 
     inserting ``$275,000,000''.

     SEC. 208. LIMITATIONS ON AGGREGATE AMOUNT RECOVERED ON 
                   RECONCILIATION OF THE HEALTH INSURANCE TAX 
                   CREDIT AND THE ADVANCE OF THAT CREDIT.

       (a) In General.--So much of section 36B(f)(2)(B) of the 
     Internal Revenue Code of 1986 as precedes clause (ii) thereof 
     is amended to read as follows:
       ``(B) Limitation on increase.--
       ``(i) In general.--In the case of a taxpayer whose 
     household income is less than 500 percent of the poverty line 
     for the size of the family involved for the taxable year, the 
     amount of the increase under subparagraph (A) shall in no 
     event exceed the applicable dollar amount determined in 
     accordance with the following table (one-half of such amount 
     in the case of a taxpayer whose tax is determined under 
     section 1(c) for the taxable year):

------------------------------------------------------------------------
 ``If the household income (expressed as a  The applicable dollar amount
       percent of poverty line) is:                      is:
------------------------------------------------------------------------
Less than 200%............................  $600
At least 200% but less than 250%..........  $1,000
At least 250% but less than 300%..........  $1,500
At least 300% but less than 350%..........  $2,000
At least 350% but less than 400%..........  $2,500
At least 400% but less than 450%..........  $3,000
At least 450% but less than 500%..........  $3,500
------------------------------------------------------------------------

       (b) Conforming Amendment.--Section 36B(f)(2)(B)(ii) of such 
     Code is amended by inserting ``in the table contained'' after 
     ``each of the dollar amounts''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

     SEC. 209. DETERMINATION OF BUDGETARY EFFECTS.

       (a) In General.--The budgetary effects of this Act, for the 
     purpose of complying with the Statutory Pay-As-You-Go Act of 
     2010, shall be determined by reference to the latest 
     statement titled ``Budgetary Effects of PAYGO Legislation'' 
     for this Act, submitted for printing in the Congressional 
     Record by the Chairman of the Senate Budget Committee, 
     provided that such statement has been submitted prior to the 
     vote on passage.
       (b) Emergency Designation for Congressional Enforcement.--
     In the House of Representatives, this Act, with the exception 
     of section 101, is designated as an emergency for purposes of 
     pay-as-you-go principles.
                                 ______
                                 
  SA 4743. Mr. BENNET (for Mr. Reid) proposed an amendment to the bill 
H.R. 4994, to extend certain expiring provisions of the Medicare and 
Medicaid programs, and for other purposes; as follows:

       Amend the title so as to read: ``An Act to extend certain 
     expiring provisions of the Medicare and Medicaid programs, 
     and for other purposes.''.
                                 ______
                                 
  SA 4744. Mr. REID (for Mr. Bingaman (for himself, Mr. Crapo, and Mr. 
Kerry)) proposed an amendment to the bill H.R. 4337, to amend the 
Internal Revenue Code of 1986 to modify certain rules applicable to 
regulated investment companies, and for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE, ETC.

       (a) Short Title.--This Act may be cited as the ``Regulated 
     Investment Company Modernization Act of 2010''.
       (b) Reference.--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, etc.

   TITLE I--CAPITAL LOSS CARRYOVERS OF REGULATED INVESTMENT COMPANIES

Sec. 101. Capital loss carryovers of regulated investment companies.

  TITLE II--MODIFICATION OF GROSS INCOME AND ASSET TESTS OF REGULATED 
                          INVESTMENT COMPANIES

Sec. 201. Savings provisions for failures of regulated investment 
              companies to satisfy gross income and asset tests.

    TITLE III--MODIFICATION OF RULES RELATED TO DIVIDENDS AND OTHER 
                             DISTRIBUTIONS

Sec. 301. Modification of dividend designation requirements and 
              allocation rules for regulated investment companies.
Sec. 302. Earnings and profits of regulated investment companies.
Sec. 303. Pass-thru of exempt-interest dividends and foreign tax 
              credits in fund of funds structure.
Sec. 304. Modification of rules for spillover dividends of regulated 
              investment companies.
Sec. 305. Return of capital distributions of regulated investment 
              companies.
Sec. 306. Distributions in redemption of stock of a regulated 
              investment company.
Sec. 307. Repeal of preferential dividend rule for publicly offered 
              regulated investment companies.
Sec. 308. Elective deferral of certain late-year losses of regulated 
              investment companies.
Sec. 309. Exception to holding period requirement for certain regularly 
              declared exempt-interest dividends.

 TITLE IV--MODIFICATIONS RELATED TO EXCISE TAX APPLICABLE TO REGULATED 
                          INVESTMENT COMPANIES

Sec. 401. Excise tax exemption for certain regulated investment 
              companies owned by tax exempt entities.
Sec. 402. Deferral of certain gains and losses of regulated investment 
              companies for excise tax purposes.
Sec. 403. Distributed amount for excise tax purposes determined on 
              basis of taxes paid by regulated investment company.
Sec. 404. Increase in required distribution of capital gain net income.

                       TITLE V--OTHER PROVISIONS

Sec. 501. Repeal of assessable penalty with respect to liability for 
              tax of regulated investment companies.
Sec. 502. Modification of sales load basis deferral rule for regulated 
              investment companies.

   TITLE I--CAPITAL LOSS CARRYOVERS OF REGULATED INVESTMENT COMPANIES

     SEC. 101. CAPITAL LOSS CARRYOVERS OF REGULATED INVESTMENT 
                   COMPANIES.

       (a) In General.--Subsection (a) of section 1212 is amended 
     by redesignating paragraph (3) as paragraph (4) and by 
     inserting after paragraph (2) the following new paragraph:
       ``(3) Regulated investment companies.--
       ``(A) In general.--If a regulated investment company has a 
     net capital loss for any taxable year--
       ``(i) paragraph (1) shall not apply to such loss,
       ``(ii) the excess of the net short-term capital loss over 
     the net long-term capital gain for such year shall be a 
     short-term capital loss arising on the first day of the next 
     taxable year, and
       ``(iii) the excess of the net long-term capital loss over 
     the net short-term capital gain for such year shall be a 
     long-term capital loss arising on the first day of the next 
     taxable year.
       ``(B) Coordination with general rule.--If a net capital 
     loss to which paragraph (1) applies is carried over to a 
     taxable year of a regulated investment company--
       ``(i) Losses to which this paragraph applies.--Clauses (ii) 
     and (iii) of subparagraph (A) shall be applied without regard 
     to any

[[Page S8647]]

     amount treated as a short-term capital loss under paragraph 
     (1).
       ``(ii) Losses to which general rule applies.--Paragraph (1) 
     shall be applied by substituting `net capital loss for the 
     loss year or any taxable year thereafter (other than a net 
     capital loss to which paragraph (3)(A) applies)' for `net 
     capital loss for the loss year or any taxable year 
     thereafter'.''.
       (b) Conforming Amendments.--
       (1) Subparagraph (C) of section 1212(a)(1) is amended to 
     read as follows:
       ``(C) a capital loss carryover to each of the 10 taxable 
     years succeeding the loss year, but only to the extent such 
     loss is attributable to a foreign expropriation loss,''.
       (2) Paragraph (10) of section 1222 is amended by striking 
     ``section 1212'' and inserting ``section 1212(a)(1)''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to net capital 
     losses for taxable years beginning after the date of the 
     enactment of this Act.
       (2) Coordination rules.--Subparagraph (B) of section 
     1212(a)(3) of the Internal Revenue Code of 1986, as added by 
     this section, shall apply to taxable years beginning after 
     the date of the enactment of this Act.

  TITLE II--MODIFICATION OF GROSS INCOME AND ASSET TESTS OF REGULATED 
                          INVESTMENT COMPANIES

     SEC. 201. SAVINGS PROVISIONS FOR FAILURES OF REGULATED 
                   INVESTMENT COMPANIES TO SATISFY GROSS INCOME 
                   AND ASSET TESTS.

       (a) Asset Test.--Subsection (d) of section 851 is amended--
       (1) by striking ``A corporation which meets'' and inserting 
     the following:
       ``(1) In general.--A corporation which meets'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Special rules regarding failure to satisfy 
     requirements.--If paragraph (1) does not preserve a 
     corporation's status as a regulated investment company for 
     any particular quarter--
       ``(A) In general.--A corporation that fails to meet the 
     requirements of subsection (b)(3) (other than a failure 
     described in subparagraph (B)(i)) for such quarter shall 
     nevertheless be considered to have satisfied the requirements 
     of such subsection for such quarter if--
       ``(i) following the corporation's identification of the 
     failure to satisfy the requirements of such subsection for 
     such quarter, a description of each asset that causes the 
     corporation to fail to satisfy the requirements of such 
     subsection at the close of such quarter is set forth in a 
     schedule for such quarter filed in the manner provided by the 
     Secretary,
       ``(ii) the failure to meet the requirements of such 
     subsection for such quarter is due to reasonable cause and 
     not due to willful neglect, and
       ``(iii)(I) the corporation disposes of the assets set forth 
     on the schedule specified in clause (i) within 6 months after 
     the last day of the quarter in which the corporation's 
     identification of the failure to satisfy the requirements of 
     such subsection occurred or such other time period prescribed 
     by the Secretary and in the manner prescribed by the 
     Secretary, or
       ``(II) the requirements of such subsection are otherwise 
     met within the time period specified in subclause (I).
       ``(B) Rule for certain de minimis failures.--A corporation 
     that fails to meet the requirements of subsection (b)(3) for 
     such quarter shall nevertheless be considered to have 
     satisfied the requirements of such subsection for such 
     quarter if--
       ``(i) such failure is due to the ownership of assets the 
     total value of which does not exceed the lesser of--

       ``(I) 1 percent of the total value of the corporation's 
     assets at the end of the quarter for which such measurement 
     is done, or
       ``(II) $10,000,000, and

       ``(ii)(I) the corporation, following the identification of 
     such failure, disposes of assets in order to meet the 
     requirements of such subsection within 6 months after the 
     last day of the quarter in which the corporation's 
     identification of the failure to satisfy the requirements of 
     such subsection occurred or such other time period prescribed 
     by the Secretary and in the manner prescribed by the 
     Secretary, or
       ``(II) the requirements of such subsection are otherwise 
     met within the time period specified in subclause (I).
       ``(C) Tax.--
       ``(i) Tax imposed.--If subparagraph (A) applies to a 
     corporation for any quarter, there is hereby imposed on such 
     corporation a tax in an amount equal to the greater of--

       ``(I) $50,000, or
       ``(II) the amount determined (pursuant to regulations 
     promulgated by the Secretary) by multiplying the net income 
     generated by the assets described in the schedule specified 
     in subparagraph (A)(i) for the period specified in clause 
     (ii) by the highest rate of tax specified in section 11.

       ``(ii) Period.--For purposes of clause (i)(II), the period 
     described in this clause is the period beginning on the first 
     date that the failure to satisfy the requirements of 
     subsection (b)(3) occurs as a result of the ownership of such 
     assets and ending on the earlier of the date on which the 
     corporation disposes of such assets or the end of the first 
     quarter when there is no longer a failure to satisfy such 
     subsection.
       ``(iii) Administrative provisions.--For purposes of 
     subtitle F, a tax imposed by this subparagraph shall be 
     treated as an excise tax with respect to which the deficiency 
     procedures of such subtitle apply.''.
       (b) Gross Income Test.--Section 851 is amended by adding at 
     the end the following new subsection:
       ``(i) Failure To Satisfy Gross Income Test.--
       ``(1) Disclosure requirement.--A corporation that fails to 
     meet the requirement of paragraph (2) of subsection (b) for 
     any taxable year shall nevertheless be considered to have 
     satisfied the requirement of such paragraph for such taxable 
     year if--
       ``(A) following the corporation's identification of the 
     failure to meet such requirement for such taxable year, a 
     description of each item of its gross income described in 
     such paragraph is set forth in a schedule for such taxable 
     year filed in the manner provided by the Secretary, and
       ``(B) the failure to meet such requirement is due to 
     reasonable cause and not due to willful neglect.
       ``(2) Imposition of tax on failures.--If paragraph (1) 
     applies to a regulated investment company for any taxable 
     year, there is hereby imposed on such company a tax in an 
     amount equal to the excess of--
       ``(A) the gross income of such company which is not derived 
     from sources referred to in subsection (b)(2), over
       ``(B) \1/9\ of the gross income of such company which is 
     derived from such sources.''.
       (c) Deduction of Taxes Paid From Investment Company Taxable 
     Income.--Paragraph (2) of section 852(b) is amended by adding 
     at the end the following new subparagraph:
       ``(G) There shall be deducted an amount equal to the tax 
     imposed by subsections (d)(2) and (i) of section 851 for the 
     taxable year.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years with respect to which the due 
     date (determined with regard to any extensions) of the return 
     of tax for such taxable year is after the date of the 
     enactment of this Act.

    TITLE III--MODIFICATION OF RULES RELATED TO DIVIDENDS AND OTHER 
                             DISTRIBUTIONS

     SEC. 301. MODIFICATION OF DIVIDEND DESIGNATION REQUIREMENTS 
                   AND ALLOCATION RULES FOR REGULATED INVESTMENT 
                   COMPANIES.

       (a) Capital Gain Dividends.--
       (1) In general.--Subparagraph (C) of section 852(b)(3) is 
     amended to read as follows:
       ``(C) Definition of capital gain dividend.--For purposes of 
     this part--
       ``(i) In general.--Except as provided in clause (ii), a 
     capital gain dividend is any dividend, or part thereof, which 
     is reported by the company as a capital gain dividend in 
     written statements furnished to its shareholders.
       ``(ii) Excess reported amounts.--If the aggregate reported 
     amount with respect to the company for any taxable year 
     exceeds the net capital gain of the company for such taxable 
     year, a capital gain dividend is the excess of--

       ``(I) the reported capital gain dividend amount, over
       ``(II) the excess reported amount which is allocable to 
     such reported capital gain dividend amount.

       ``(iii) Allocation of excess reported amount.--

       ``(I) In general.--Except as provided in subclause (II), 
     the excess reported amount (if any) which is allocable to the 
     reported capital gain dividend amount is that portion of the 
     excess reported amount which bears the same ratio to the 
     excess reported amount as the reported capital gain dividend 
     amount bears to the aggregate reported amount.
       ``(II) Special rule for noncalendar year taxpayers.--In the 
     case of any taxable year which does not begin and end in the 
     same calendar year, if the post-December reported amount 
     equals or exceeds the excess reported amount for such taxable 
     year, subclause (I) shall be applied by substituting `post-
     December reported amount' for `aggregate reported amount' and 
     no excess reported amount shall be allocated to any dividend 
     paid on or before December 31 of such taxable year.

       ``(iv) Definitions.--For purposes of this subparagraph--

       ``(I) Reported capital gain dividend amount.--The term 
     `reported capital gain dividend amount' means the amount 
     reported to its shareholders under clause (i) as a capital 
     gain dividend.
       ``(II) Excess reported amount.--The term `excess reported 
     amount' means the excess of the aggregate reported amount 
     over the net capital gain of the company for the taxable 
     year.
       ``(III) Aggregate reported amount.--The term `aggregate 
     reported amount' means the aggregate amount of dividends 
     reported by the company under clause (i) as capital gain 
     dividends for the taxable year (including capital gain 
     dividends paid after the close of the taxable year described 
     in section 855).
       ``(IV) Post-december reported amount.--The term `post-
     December reported amount' means the aggregate reported amount 
     determined by taking into account only dividends paid after 
     December 31 of the taxable year.

       ``(v) Adjustment for determinations.--If there is an 
     increase in the excess described in subparagraph (A) for the 
     taxable year which results from a determination (as defined 
     in section 860(e)), the company may, subject to the 
     limitations of this subparagraph, increase the amount of 
     capital gain dividends reported under clause (i).

[[Page S8648]]

       ``(vi) Special rule for losses late in the calendar year.--
     For special rule for certain losses after October 31, see 
     paragraph (8).''.
       (2) Conforming amendment.--Subparagraph (B) of section 
     860(f)(2) is amended by inserting ``or reported (as the case 
     may be)'' after ``designated''.
       (b) Exempt-Interest Dividends.--Subparagraph (A) of section 
     852(b)(5) is amended to read as follows:
       ``(A) Definition of exempt-interest dividend.--
       ``(i) In general.--Except as provided in clause (ii), an 
     exempt-interest dividend is any dividend or part thereof 
     (other than a capital gain dividend) paid by a regulated 
     investment company and reported by the company as an exempt-
     interest dividend in written statements furnished to its 
     shareholders.
       ``(ii) Excess reported amounts.--If the aggregate reported 
     amount with respect to the company for any taxable year 
     exceeds the exempt interest of the company for such taxable 
     year, an exempt-interest dividend is the excess of--

       ``(I) the reported exempt-interest dividend amount, over
       ``(II) the excess reported amount which is allocable to 
     such reported exempt-interest dividend amount.

       ``(iii) Allocation of excess reported amount.--

       ``(I) In general.--Except as provided in subclause (II), 
     the excess reported amount (if any) which is allocable to the 
     reported exempt-interest dividend amount is that portion of 
     the excess reported amount which bears the same ratio to the 
     excess reported amount as the reported exempt-interest 
     dividend amount bears to the aggregate reported amount.
       ``(II) Special rule for noncalendar year taxpayers.--In the 
     case of any taxable year which does not begin and end in the 
     same calendar year, if the post-December reported amount 
     equals or exceeds the excess reported amount for such taxable 
     year, subclause (I) shall be applied by substituting `post-
     December reported amount' for `aggregate reported amount' and 
     no excess reported amount shall be allocated to any dividend 
     paid on or before December 31 of such taxable year.

       ``(iv) Definitions.--For purposes of this subparagraph--

       ``(I) Reported exempt-interest dividend amount.--The term 
     `reported exempt-interest dividend amount' means the amount 
     reported to its shareholders under clause (i) as an exempt-
     interest dividend.
       ``(II) Excess reported amount.--The term `excess reported 
     amount' means the excess of the aggregate reported amount 
     over the exempt interest of the company for the taxable year.
       ``(III) Aggregate reported amount.--The term `aggregate 
     reported amount' means the aggregate amount of dividends 
     reported by the company under clause (i) as exempt-interest 
     dividends for the taxable year (including exempt-interest 
     dividends paid after the close of the taxable year described 
     in section 855).
       ``(IV) Post-december reported amount.--The term `post-
     December reported amount' means the aggregate reported amount 
     determined by taking into account only dividends paid after 
     December 31 of the taxable year.
       ``(V) Exempt interest.--The term `exempt interest' means, 
     with respect to any regulated investment company, the excess 
     of the amount of interest excludable from gross income under 
     section 103(a) over the amounts disallowed as deductions 
     under sections 265 and 171(a)(2).''.

       (c) Foreign Tax Credits.--
       (1) In general.--Subsection (c) of section 853 is amended--
       (A) by striking ``so designated by the company in a written 
     notice mailed to its shareholders not later than 60 days 
     after the close of the taxable year'' and inserting ``so 
     reported by the company in a written statement furnished to 
     such shareholder'', and
       (B) by striking ``Notice'' in the heading and inserting 
     ``Statements''.
       (2) Conforming amendments.--Subsection (d) of section 853 
     is amended--
       (A) by striking ``and the notice to shareholders required 
     by subsection (c)'' in the text thereof, and
       (B) by striking ``and Notifying Shareholders'' in the 
     heading thereof.
       (d) Credits for Tax Credit Bonds.--
       (1) In general.--Subsection (c) of section 853A is 
     amended--
       (A) by striking ``so designated by the regulated investment 
     company in a written notice mailed to its shareholders not 
     later than 60 days after the close of its taxable year'' and 
     inserting ``so reported by the regulated investment company 
     in a written statement furnished to such shareholder'', and
       (B) by striking ``Notice'' in the heading and inserting 
     ``Statements''.
       (2) Conforming amendments.--Subsection (d) of section 853A 
     is amended--
       (A) by striking ``and the notice to shareholders required 
     by subsection (c)'' in the text thereof, and
       (B) by striking ``and Notifying Shareholders'' in the 
     heading thereof.
       (e) Dividend Received Deduction, etc.--
       (1) In general.--Paragraph (1) of section 854(b) is 
     amended--
       (A) by striking ``designated under this subparagraph by the 
     regulated investment company'' in subparagraph (A) and 
     inserting ``reported by the regulated investment company as 
     eligible for such deduction in written statements furnished 
     to its shareholders'',
       (B) by striking ``designated by the regulated investment 
     company'' in subparagraph (B)(i) and inserting ``reported by 
     the regulated investment company as qualified dividend income 
     in written statements furnished to its shareholders'',
       (C) by striking ``designated'' in subparagraph (C)(i) and 
     inserting ``reported'', and
       (D) by striking ``designated'' in subparagraph (C)(ii) and 
     inserting ``reported''.
       (2) Conforming amendments.--Subsection (b) of section 854 
     is amended by striking paragraph (2) and by redesignating 
     paragraphs (3), (4), and (5), as paragraphs (2), (3), and 
     (4), respectively.
       (f) Dividends Paid to Certain Foreign Persons.--
       (1) Interest-related dividends.--Subparagraph (C) of 
     section 871(k)(1) is amended by striking all that precedes 
     ``any taxable year of the company beginning'' and inserting 
     the following:
       ``(C) Interest-related dividend.--For purposes of this 
     paragraph--
       ``(i) In general.--Except as provided in clause (ii), an 
     interest related dividend is any dividend, or part thereof, 
     which is reported by the company as an interest related 
     dividend in written statements furnished to its shareholders.
       ``(ii) Excess reported amounts.--If the aggregate reported 
     amount with respect to the company for any taxable year 
     exceeds the qualified net interest income of the company for 
     such taxable year, an interest related dividend is the excess 
     of--

       ``(I) the reported interest related dividend amount, over
       ``(II) the excess reported amount which is allocable to 
     such reported interest related dividend amount.

       ``(iii) Allocation of excess reported amount.--

       ``(I) In general.--Except as provided in subclause (II), 
     the excess reported amount (if any) which is allocable to the 
     reported interest related dividend amount is that portion of 
     the excess reported amount which bears the same ratio to the 
     excess reported amount as the reported interest related 
     dividend amount bears to the aggregate reported amount.
       ``(II) Special rule for noncalendar year taxpayers.--In the 
     case of any taxable year which does not begin and end in the 
     same calendar year, if the post-December reported amount 
     equals or exceeds the excess reported amount for such taxable 
     year, subclause (I) shall be applied by substituting `post-
     December reported amount' for `aggregate reported amount' and 
     no excess reported amount shall be allocated to any dividend 
     paid on or before December 31 of such taxable year.

       ``(iv) Definitions.--For purposes of this subparagraph--

       ``(I) Reported interest related dividend amount.--The term 
     `reported interest related dividend amount' means the amount 
     reported to its shareholders under clause (i) as an interest 
     related dividend.
       ``(II) Excess reported amount.--The term `excess reported 
     amount' means the excess of the aggregate reported amount 
     over the qualified net interest income of the company for the 
     taxable year.
       ``(III) Aggregate reported amount.--The term `aggregate 
     reported amount' means the aggregate amount of dividends 
     reported by the company under clause (i) as interest related 
     dividends for the taxable year (including interest related 
     dividends paid after the close of the taxable year described 
     in section 855).
       ``(IV) Post-december reported amount.--The term `post-
     December reported amount' means the aggregate reported amount 
     determined by taking into account only dividends paid after 
     December 31 of the taxable year.

       ``(v) Termination.--The term `interest related dividend' 
     shall not include any dividend with respect to''.
       (2) Short-term capital gain dividends.--Subparagraph (C) of 
     section 871(k)(2) is amended by striking all that precedes 
     ``any taxable year of the company beginning'' and inserting 
     the following:
       ``(C) Short-term capital gain dividend.--For purposes of 
     this paragraph--
       ``(i) In general.--Except as provided in clause (ii), the 
     term `short-term capital gain dividend' means any dividend, 
     or part thereof, which is reported by the company as a short-
     term capital gain dividend in written statements furnished to 
     its shareholders.
       ``(ii) Excess reported amounts.--If the aggregate reported 
     amount with respect to the company for any taxable year 
     exceeds the qualified short-term gain of the company for such 
     taxable year, the term `short-term capital gain dividend' 
     means the excess of--

       ``(I) the reported short-term capital gain dividend amount, 
     over
       ``(II) the excess reported amount which is allocable to 
     such reported short-term capital gain dividend amount.

       ``(iii) Allocation of excess reported amount.--

       ``(I) In general.--Except as provided in subclause (II), 
     the excess reported amount (if any) which is allocable to the 
     reported short-term capital gain dividend amount is that 
     portion of the excess reported amount which bears the same 
     ratio to the excess reported amount as the reported short-
     term capital gain dividend amount bears to the aggregate 
     reported amount.
       ``(II) Special rule for noncalendar year taxpayers.--In the 
     case of any taxable year which does not begin and end in the 
     same calendar year, if the post-December reported amount 
     equals or exceeds the excess reported amount for such taxable 
     year, subclause (I)

[[Page S8649]]

     shall be applied by substituting `post-December reported 
     amount' for `aggregate reported amount' and no excess 
     reported amount shall be allocated to any dividend paid on or 
     before December 31 of such taxable year.

       ``(iv) Definitions.--For purposes of this subparagraph--

       ``(I) Reported short-term capital gain dividend amount.--
     The term `reported short-term capital gain dividend amount' 
     means the amount reported to its shareholders under clause 
     (i) as a short-term capital gain dividend.
       ``(II) Excess reported amount.--The term `excess reported 
     amount' means the excess of the aggregate reported amount 
     over the qualified short-term gain of the company for the 
     taxable year.
       ``(III) Aggregate reported amount.--The term `aggregate 
     reported amount' means the aggregate amount of dividends 
     reported by the company under clause (i) as short-term 
     capital gain dividends for the taxable year (including short-
     term capital gain dividends paid after the close of the 
     taxable year described in section 855).
       ``(IV) Post-december reported amount.--The term `post-
     December reported amount' means the aggregate reported amount 
     determined by taking into account only dividends paid after 
     December 31 of the taxable year.

       ``(v) Termination.--The term `short-term capital gain 
     dividend' shall not include any dividend with respect to''.
       (g) Conforming Amendments.--Section 855 is amended--
       (1) by striking subsection (c) and redesignating subsection 
     (d) as subsection (c), and
       (2) by striking ``, (c) and (d)'' in subsection (a) and 
     inserting ``and (c)''.
       (h) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
       (i) Application of JGTRRA Sunset.--Section 303 of the Jobs 
     and Growth Tax Relief Reconciliation Act of 2003 shall apply 
     to the amendments made by subparagraphs (B) and (D) of 
     subsection (e)(1) to the same extent and in the same manner 
     as section 303 of such Act applies to the amendments made by 
     section 302 of such Act.

     SEC. 302. EARNINGS AND PROFITS OF REGULATED INVESTMENT 
                   COMPANIES.

       (a) In General.--Paragraph (1) of section 852(c) is amended 
     to read as follows:
       ``(1) Treatment of nondeductible items.--
       ``(A) Net capital loss.--If a regulated investment company 
     has a net capital loss for any taxable year--
       ``(i) such net capital loss shall not be taken into account 
     for purposes of determining the company's earnings and 
     profits, and
       ``(ii) any capital loss arising on the first day of the 
     next taxable year by reason of clause (ii) or (iii) of 
     section 1212(a)(3)(A) shall be treated as so arising for 
     purposes of determining earnings and profits.
       ``(B) Other nondeductible items.--
       ``(i) In general.--The earnings and profits of a regulated 
     investment company for any taxable year (but not its 
     accumulated earnings and profits) shall not be reduced by any 
     amount which is not allowable as a deduction (other than by 
     reason of section 265 or 171(a)(2)) in computing its taxable 
     income for such taxable year.
       ``(ii) Coordination with treatment of net capital losses.--
     Clause (i) shall not apply to a net capital loss to which 
     subparagraph (A) applies.''.
       (b) Conforming Amendments.--
       (1) Subsection (c) of section 852 is amended by adding at 
     the end the following new paragraph:
       ``(4) Regulated investment company.--For purposes of this 
     subsection, the term `regulated investment company' includes 
     a domestic corporation which is a regulated investment 
     company determined without regard to the requirements of 
     subsection (a).''.
       (2) Paragraphs (1)(A) and (2)(A) of section 871(k) are each 
     amended by inserting ``which meets the requirements of 
     section 852(a) for the taxable year with respect to which the 
     dividend is paid'' before the period at the end.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 303. PASS-THRU OF EXEMPT-INTEREST DIVIDENDS AND FOREIGN 
                   TAX CREDITS IN FUND OF FUNDS STRUCTURE.

       (a) In General.--Section 852 is amended by adding at the 
     end the following new subsection:
       ``(g) Special Rules for Fund of Funds.--
       ``(1) In general.--In the case of a qualified fund of 
     funds--
       ``(A) such fund shall be qualified to pay exempt-interest 
     dividends to its shareholders without regard to whether such 
     fund satisfies the requirements of the first sentence of 
     subsection (b)(5), and
       ``(B) such fund may elect the application of section 853 
     (relating to foreign tax credit allowed to shareholders) 
     without regard to the requirement of subsection (a)(1) 
     thereof.
       ``(2) Qualified fund of funds.--For purposes of this 
     subsection, the term `qualified fund of funds' means a 
     regulated investment company if (at the close of each quarter 
     of the taxable year) at least 50 percent of the value of its 
     total assets is represented by interests in other regulated 
     investment companies.''.
       (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. 304. MODIFICATION OF RULES FOR SPILLOVER DIVIDENDS OF 
                   REGULATED INVESTMENT COMPANIES.

       (a) Deadline for Declaration of Dividend.--Paragraph (1) of 
     section 855(a) is amended to read as follows:
       ``(1) declares a dividend before the later of--
       ``(A) the 15th day of the 9th month following the close of 
     the taxable year, or
       ``(B) in the case of an extension of time for filing the 
     company's return for the taxable year, the due date for 
     filing such return taking into account such extension, and''.
       (b) Deadline for Distribution of Dividend.--Paragraph (2) 
     of section 855(a) is amended by striking ``the first regular 
     dividend payment'' and inserting ``the first dividend payment 
     of the same type of dividend''.
       (c) Short-term Capital Gain.--Subsection (a) of section 855 
     is amended by adding at the end the following: ``For purposes 
     of paragraph (2), a dividend attributable to any short-term 
     capital gain with respect to which a notice is required under 
     the Investment Company Act of 1940 shall be treated as the 
     same type of dividend as a capital gain dividend.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to distributions in taxable years beginning after 
     the date of the enactment of this Act.

     SEC. 305. RETURN OF CAPITAL DISTRIBUTIONS OF REGULATED 
                   INVESTMENT COMPANIES.

       (a) In General.--Subsection (b) of section 316 is amended 
     by adding at the end the following new paragraph:
       ``(4) Certain distributions by regulated investment 
     companies in excess of earnings and profits.--In the case of 
     a regulated investment company that has a taxable year other 
     than a calendar year, if the distributions by the company 
     with respect to any class of stock of such company for the 
     taxable year exceed the company's current and accumulated 
     earnings and profits which may be used for the payment of 
     dividends on such class of stock, the company's current 
     earnings and profits shall, for purposes of subsection (a), 
     be allocated first to distributions with respect to such 
     class of stock made during the portion of the taxable year 
     which precedes January 1.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distributions made in taxable years beginning 
     after the date of the enactment of this Act.

     SEC. 306. DISTRIBUTIONS IN REDEMPTION OF STOCK OF A REGULATED 
                   INVESTMENT COMPANY.

       (a) Redemptions Treated as Exchanges.--
       (1) In general.--Subsection (b) of section 302 is amended 
     by redesignating paragraph (5) as paragraph (6) and by 
     inserting after paragraph (4) the following new paragraph:
       ``(5) Redemptions by certain regulated investment 
     companies.--Except to the extent provided in regulations 
     prescribed by the Secretary, subsection (a) shall apply to 
     any distribution in redemption of stock of a publicly offered 
     regulated investment company (within the meaning of section 
     67(c)(2)(B)) if--
       ``(A) such redemption is upon the demand of the 
     stockholder, and
       ``(B) such company issues only stock which is redeemable 
     upon the demand of the stockholder.''.
       (2) Conforming amendment.--Subsection (a) of section 302 is 
     amended by striking ``or (4)'' and inserting ``(4), or (5)''.
       (b) Losses on Redemptions Not Disallowed for Fund-of-funds 
     Regulated Investment Companies.--Paragraph (3) of section 
     267(f) is amended by adding at the end the following new 
     subparagraph:
       ``(D) Redemptions by fund-of-funds regulated investment 
     companies.--Except to the extent provided in regulations 
     prescribed by the Secretary, subsection (a)(1) shall not 
     apply to any distribution in redemption of stock of a 
     regulated investment company if--
       ``(i) such company issues only stock which is redeemable 
     upon the demand of the stockholder, and
       ``(ii) such redemption is upon the demand of another 
     regulated investment company.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to distributions after the date of the enactment 
     of this Act.

     SEC. 307. REPEAL OF PREFERENTIAL DIVIDEND RULE FOR PUBLICLY 
                   OFFERED REGULATED INVESTMENT COMPANIES.

       (a) In General.--Subsection (c) of section 562 is amended 
     by striking ``The amount'' and inserting ``Except in the case 
     of a publicly offered regulated investment company (as 
     defined in section 67(c)(2)(B)), the amount''.
       (b) Conforming Amendment.--Section 562(c) is amended by 
     inserting ``(other than a publicly offered regulated 
     investment company (as so defined))'' after ``regulated 
     investment company'' in the second sentence thereof.
       (c) Effective Date.--The amendments made by this section 
     shall apply to distributions in taxable years beginning after 
     the date of the enactment of this Act.

     SEC. 308. ELECTIVE DEFERRAL OF CERTAIN LATE-YEAR LOSSES OF 
                   REGULATED INVESTMENT COMPANIES.

       (a) In General.--Paragraph (8) of section 852(b) is amended 
     to read as follows:
       ``(8) Elective deferral of certain late-year losses.--
       ``(A) In general.--Except as otherwise provided by the 
     Secretary, a regulated investment company may elect for any 
     taxable year to treat any portion of any qualified

[[Page S8650]]

     late-year loss for such taxable year as arising on the first 
     day of the following taxable year for purposes of this title.
       ``(B) Qualified late-year loss.--For purposes of this 
     paragraph, the term `qualified late-year loss' means--
       ``(i) any post-October capital loss, and
       ``(ii) any late-year ordinary loss.
       ``(C) Post-october capital loss.--For purposes of this 
     paragraph, the term `post-October capital loss' means the 
     greatest of--
       ``(i) the net capital loss attributable to the portion of 
     the taxable year after October 31,
       ``(ii) the net long-term capital loss attributable to such 
     portion of the taxable year, or
       ``(iii) the net short-term capital loss attributable to 
     such portion of the taxable year.
       ``(D) Late-year ordinary loss.--For purposes of this 
     paragraph, the term `late-year ordinary loss' means the 
     excess (if any) of--
       ``(i) the sum of--

       ``(I) the specified losses (as defined in section 
     4982(e)(5)(B)(ii)) attributable to the portion of the taxable 
     year after October 31, plus
       ``(II) the ordinary losses not described in subclause (I) 
     attributable to the portion of the taxable year after 
     December 31, over

       ``(ii) the sum of--

       ``(I) the specified gains (as defined in section 
     4982(e)(5)(B)(i)) attributable to the portion of the taxable 
     year after October 31, plus
       ``(II) the ordinary income not described in subclause (I) 
     attributable to the portion of the taxable year after 
     December 31.

       ``(E) Special rule for companies determining required 
     capital gain distributions on taxable year basis.--In the 
     case of a company to which an election under section 
     4982(e)(4) applies--
       ``(i) if such company's taxable year ends with the month of 
     November, the amount of qualified late-year losses (if any) 
     shall be computed without regard to any income, gain, or loss 
     described in subparagraphs (C), (D)(i)(I), and (D)(ii)(I), 
     and
       ``(ii) if such company's taxable year ends with the month 
     of December, subparagraph (A) shall not apply.''.
       (b) Conforming Amendments.--
       (1) Subsection (b) of section 852 is amended by striking 
     paragraph (10).
       (2) Paragraph (2) of section 852(c) is amended by striking 
     the first sentence and inserting the following: ``For 
     purposes of applying this chapter to distributions made by a 
     regulated investment company with respect to any calendar 
     year, the earnings and profits of such company shall be 
     determined without regard to any net capital loss 
     attributable to the portion of the taxable year after October 
     31 and without regard to any late-year ordinary loss (as 
     defined in subsection (b)(8)(D)).''
       (3) Subparagraph (D) of section 871(k)(2) is amended by 
     striking the last two sentences and inserting the following: 
     ``For purposes of this subparagraph, the net short-term 
     capital gain of the regulated investment company shall be 
     computed by treating any short-term capital gain dividend 
     includible in gross income with respect to stock of another 
     regulated investment company as a short-term capital gain.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 309. EXCEPTION TO HOLDING PERIOD REQUIREMENT FOR CERTAIN 
                   REGULARLY DECLARED EXEMPT-INTEREST DIVIDENDS.

       (a) In General.--Subparagraph (E) of section 852(b)(4) is 
     amended by striking all that precedes ``In the case of a 
     regulated investment company'' and inserting the following:
       ``(E) Exception to holding period requirement for certain 
     regularly declared exempt-interest dividends.--
       ``(i) Daily dividend companies.--Except as otherwise 
     provided by regulations, subparagraph (B) shall not apply 
     with respect to a regular dividend paid by a regulated 
     investment company which declares exempt-interest dividends 
     on a daily basis in an amount equal to at least 90 percent of 
     its net tax-exempt interest and distributes such dividends on 
     a monthly or more frequent basis.
       ``(ii) Authority to shorten required holding period with 
     respect to other companies.--''.
       (b) Conforming Amendment.--Clause (ii) of section 
     852(b)(4)(E), as amended by subsection (a), is amended by 
     inserting ``(other than a company described in clause (i))'' 
     after ``regulated investment company''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to losses incurred on shares of stock for which 
     the taxpayer's holding period begins after the date of the 
     enactment of this Act.

 TITLE IV--MODIFICATIONS RELATED TO EXCISE TAX APPLICABLE TO REGULATED 
                          INVESTMENT COMPANIES

     SEC. 401. EXCISE TAX EXEMPTION FOR CERTAIN REGULATED 
                   INVESTMENT COMPANIES OWNED BY TAX EXEMPT 
                   ENTITIES.

       (a) In General.--Subsection (f) of section 4982 is 
     amended--
       (1) by striking ``either'' in the matter preceding 
     paragraph (1),
       (2) by striking ``or'' at the end of paragraph (1),
       (3) by striking the period at the end of paragraph (2), and
       (4) by inserting after paragraph (2) the following new 
     paragraphs:
       ``(3) any other tax-exempt entity whose ownership of 
     beneficial interests in the company would not preclude the 
     application of section 817(h)(4), or
       ``(4) another regulated investment company described in 
     this subsection.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to calendar years beginning after the date of the 
     enactment of this Act.

     SEC. 402. DEFERRAL OF CERTAIN GAINS AND LOSSES OF REGULATED 
                   INVESTMENT COMPANIES FOR EXCISE TAX PURPOSES.

       (a) In General.--Subsection (e) of section 4982 is amended 
     by striking paragraphs (5) and (6) and inserting the 
     following new paragraphs:
       ``(5) Treatment of specified gains and losses after october 
     31 of calendar year.--
       ``(A) In general.--Any specified gain or specified loss 
     which (but for this paragraph) would be properly taken into 
     account for the portion of the calendar year after October 31 
     shall be treated as arising on January 1 of the following 
     calendar year.
       ``(B) Specified gains and losses.--For purposes of this 
     paragraph--
       ``(i) Specified gain.--The term `specified gain' means 
     ordinary gain from the sale, exchange, or other disposition 
     of property (including the termination of a position with 
     respect to such property). Such term shall include any 
     foreign currency gain attributable to a section 988 
     transaction (within the meaning of section 988) and any 
     amount includible in gross income under section 1296(a)(1).
       ``(ii) Specified loss.--The term `specified loss' means 
     ordinary loss from the sale, exchange, or other disposition 
     of property (including the termination of a position with 
     respect to such property). Such term shall include any 
     foreign currency loss attributable to a section 988 
     transaction (within the meaning of section 988) and any 
     amount allowable as a deduction under section 1296(a)(2).
       ``(C) Special rule for companies electing to use the 
     taxable year.--In the case of any company making an election 
     under paragraph (4), subparagraph (A) shall be applied by 
     substituting the last day of the company's taxable year for 
     October 31.
       ``(6) Treatment of mark to market gain.--
       ``(A) In general.--For purposes of determining a regulated 
     investment company's ordinary income, notwithstanding 
     paragraph (1)(C), each specified mark to market provision 
     shall be applied as if such company's taxable year ended on 
     October 31. In the case of a company making an election under 
     paragraph (4), the preceding sentence shall be applied by 
     substituting the last day of the company's taxable year for 
     October 31.
       ``(B) Specified mark to market provision.--For purposes of 
     this paragraph, the term `specified mark to market provision' 
     means sections 1256 and 1296 and any other provision of this 
     title (or regulations thereunder) which treats property as 
     disposed of on the last day of the taxable year.
       ``(7) Elective deferral of certain ordinary losses.--Except 
     as provided in regulations prescribed by the Secretary, in 
     the case of a regulated investment company which has a 
     taxable year other than the calendar year--
       ``(A) such company may elect to determine its ordinary 
     income for the calendar year without regard to any net 
     ordinary loss (determined without regard to specified gains 
     and losses taken into account under paragraph (5)) which is 
     attributable to the portion of such calendar year which is 
     after the beginning of the taxable year which begins in such 
     calendar year, and
       ``(B) any amount of net ordinary loss not taken into 
     account for a calendar year by reason of subparagraph (A) 
     shall be treated as arising on the 1st day of the following 
     calendar year.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to calendar years beginning after the date of the 
     enactment of this Act.

     SEC. 403. DISTRIBUTED AMOUNT FOR EXCISE TAX PURPOSES 
                   DETERMINED ON BASIS OF TAXES PAID BY REGULATED 
                   INVESTMENT COMPANY.

       (a) In General.--Subsection (c) of section 4982 is amended 
     by adding at the end the following new paragraph:
       ``(4) Special rule for estimated tax payments.--
       ``(A) In general.--In the case of a regulated investment 
     company which elects the application of this paragraph for 
     any calendar year--
       ``(i) the distributed amount with respect to such company 
     for such calendar year shall be increased by the amount on 
     which qualified estimated tax payments are made by such 
     company during such calendar year, and
       ``(ii) the distributed amount with respect to such company 
     for the following calendar year shall be reduced by the 
     amount of such increase.
       ``(B) Qualified estimated tax payments.--For purposes of 
     this paragraph, the term `qualified estimated tax payments' 
     means, with respect to any calendar year, payments of 
     estimated tax of a tax described in paragraph (1)(B) for any 
     taxable year which begins (but does not end) in such calendar 
     year.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to calendar years beginning after the date of the 
     enactment of this Act.

[[Page S8651]]

     SEC. 404. INCREASE IN REQUIRED DISTRIBUTION OF CAPITAL GAIN 
                   NET INCOME.

       (a) In General.--Subparagraph (B) of section 4982(b)(1) is 
     amended by striking ``98 percent'' and inserting ``98.2 
     percent''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to calendar years beginning after the date of the 
     enactment of this Act.

                       TITLE V--OTHER PROVISIONS

     SEC. 501. REPEAL OF ASSESSABLE PENALTY WITH RESPECT TO 
                   LIABILITY FOR TAX OF REGULATED INVESTMENT 
                   COMPANIES.

       (a) In General.--Part I of subchapter B of chapter 68 is 
     amended by striking section 6697 (and by striking the item 
     relating to such section in the table of sections of such 
     part).
       (b) Conforming Amendment.--Section 860 is amended by 
     striking subsection (j).
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 502. MODIFICATION OF SALES LOAD BASIS DEFERRAL RULE FOR 
                   REGULATED INVESTMENT COMPANIES.

       (a) In General.--Subparagraph (C) of section 852(f)(1) is 
     amended by striking ``subsequently acquires'' and inserting 
     ``acquires, during the period beginning on the date of the 
     disposition referred to in subparagraph (B) and ending on 
     January 31 of the calendar year following the calendar year 
     that includes the date of such disposition,''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to charges incurred in taxable years beginning 
     after the date of the enactment of this Act.
                                 ______
                                 
  SA 4745. Mr. REID (for Mr. Carper) proposed an amendment to the bill 
S. 3167, to amend title 13 of the United States Code to provide for a 
5-year term of office for the Director of the Census and to provide for 
authority and duties of the Director and Deputy Director of the Census, 
and for other purposes; as follows:

       Beginning on page 5, strike line 7 and all that follows 
     through page 6, line 23, and insert the following:
       ``(6) Advisory committees.--
       ``(A) Advisory committees generally.--
       ``(i) Authority to establish.--The Director may establish 
     such advisory committees as the Director considers 
     appropriate to provide advice with respect to any function of 
     the Director.
       ``(ii) Compensation and expenses.--Members of any advisory 
     committee established under clause (i) shall serve without 
     compensation, but shall be entitled to transportation 
     expenses and per diem in lieu of subsistence in accordance 
     with section 5703 of title 5.
       ``(B) Technology advisory committee.--
       ``(i) In general.--Not later than 180 days after the date 
     of the enactment of the Census Oversight Efficiency and 
     Management Reform Act of 2010, the Director shall establish a 
     technology advisory committee under subparagraph (A).
       ``(ii) Membership.--Members of the technology advisory 
     committee shall be selected from the public, private, and 
     academic sectors from among those who have experience in 
     technologies and services relevant to the planning and 
     execution of the census.
       ``(iii) Duties.--The technology advisory committee shall 
     make recommendations to the Director and publish reports on 
     the use of commercially available technologies and services 
     to improve efficiencies and manage costs in the 
     implementation of the census and census-related activities, 
     including pilot projects.
       ``(7) Regulations.--The Director may, in consultation with 
     the Secretary, prescribe such rules and regulations as the 
     Director considers necessary or appropriate to carry out the 
     functions of the Director.
       ``(8) Delegations, etc.--The Director may assign duties, 
     and delegate, or authorize successive redelegations of, 
     authority to act and to render decisions, to such officers 
     and employees of the Bureau as the Director may find 
     necessary. Within the limitations of such assignments, 
     delegations, or redelegations, all official acts and 
     decisions of such officers and employees shall have the same 
     force and effect as though performed or rendered by the 
     Director. An assignment, delegation, or redelegation under 
     this paragraph may not take effect before the date on which 
     notice of such assignment, delegation, or redelegation (as 
     the case may be) is published in the Federal Register.

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