[Congressional Record Volume 157, Number 191 (Tuesday, December 13, 2011)]
[House]
[Pages H8762-H8824]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
MIDDLE CLASS TAX RELIEF AND JOB CREATION ACT OF 2011
Mr. CAMP. Mr. Speaker, pursuant to House Resolution 491, I call up
the bill (H.R. 3630) to provide incentives for the creation of jobs,
and for other purposes, and ask for its immediate consideration.
The Clerk read the title of the bill.
The SPEAKER pro tempore. Pursuant to House Resolution 491, the
amendment printed in House Report 112-328 is considered adopted, and
the bill, as amended, is considered read.
The text of the bill, as amended, is as follows:
[[Page H8763]]
H.R. 3630
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) Short Title.--This Act may be cited as the ``Middle
Class Tax Relief and Job Creation Act of 2011''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title.
TITLE I--JOB CREATION INCENTIVES
Subtitle A--North American Energy Access
Sec. 1001. Short title.
Sec. 1002. Permit for Keystone XL Pipeline.
Subtitle B--EPA Regulatory Relief
Sec. 1101. Short title.
Sec. 1102. Legislative stay.
Sec. 1103. Compliance dates.
Sec. 1104. Energy recovery and conservation.
Sec. 1105. Other provisions.
Subtitle C--Extension of 100 Percent Expensing
Sec. 1201. Extension of allowance for bonus depreciation for certain
business assets.
TITLE II--EXTENSION OF CERTAIN EXPIRING PROVISIONS AND RELATED MEASURES
Subtitle A--Extension of Payroll Tax Reduction
Sec. 2001. Extension of temporary employee payroll tax reduction
through end of 2012.
Subtitle B--Unemployment Compensation
Sec. 2101. Short title.
Part 1--Reforms of Unemployment Compensation to Promote Work and Job
Creation
Sec. 2121. Consistent job search requirements.
Sec. 2122. Participation in reemployment services made a condition of
benefit receipt.
Sec. 2123. State flexibility to promote the reemployment of unemployed
workers.
Sec. 2124. Assistance and guidance in implementing self-employment
assistance programs.
Sec. 2125. Improving program integrity by better recovery of
overpayments.
Sec. 2126. Data standardization for improved data matching.
Sec. 2127. Drug testing of applicants.
Part 2--Provisions Relating To Extended Benefits
Sec. 2141. Short title.
Sec. 2142. Extension and modification of emergency unemployment
compensation program.
Sec. 2143. Temporary extension of extended benefit provisions.
Sec. 2144. Additional extended unemployment benefits under the Railroad
Unemployment Insurance Act.
Part 3--Improving Reemployment Strategies Under the Emergency
Unemployment Compensation Program
Sec. 2161. Improved work search for the long-term unemployed.
Sec. 2162. Reemployment services and reemployment and eligibility
assessment activities.
Sec. 2163. State flexibility to support long-term unemployed workers
with improved reemployment services.
Sec. 2164. Promoting program integrity through better recovery of
overpayments.
Sec. 2165. Restore State flexibility to improve unemployment program
solvency.
Subtitle C--Medicare Extensions; Other Health Provisions
Part 1--Medicare Extensions
Sec. 2201. Physician payment update.
Sec. 2202. Ambulance add-ons.
Sec. 2203. Medicare payment for outpatient therapy services.
Sec. 2204. Work geographic adjustment.
Part 2--Other Health Provisions
Sec. 2211. Qualifying individual (QI) program.
Sec. 2212. Extension of Transitional Medical Assistance (TMA).
Sec. 2213. Modification to requirements for qualifying for exception to
Medicare prohibition on certain physician referrals for
hospitals.
Part 3--Offsets
Sec. 2221. Adjustments to maximum thresholds for recapturing
overpayments resulting from certain Federally-subsidized
health insurance.
Sec. 2222. Prevention and Public Health Fund.
Sec. 2223. Parity in Medicare payments for hospital outpatient
department evaluation and management office visit
services.
Sec. 2224. Reduction of bad debt treated as an allowable cost.
Sec. 2225. Rebasing of State DSH allotments for fiscal year 2021.
Subtitle D--TANF Extension
Sec. 2301. Short title.
Sec. 2302. Extension of program.
Sec. 2303. Data standardization.
Sec. 2304. Spending policies for assistance under State TANF programs.
Sec. 2305. Technical corrections.
TITLE III--FLOOD INSURANCE REFORM
Sec. 3001. Short title.
Sec. 3002. Extensions.
Sec. 3003. Mandatory purchase.
Sec. 3004. Reforms of coverage terms.
Sec. 3005. Reforms of premium rates.
Sec. 3006. Technical Mapping Advisory Council.
Sec. 3007. FEMA incorporation of new mapping protocols.
Sec. 3008. Treatment of levees.
Sec. 3009. Privatization initiatives.
Sec. 3010. FEMA annual report on insurance program.
Sec. 3011. Mitigation assistance.
Sec. 3012. Notification to homeowners regarding mandatory purchase
requirement applicability and rate phase-ins.
Sec. 3013. Notification to members of congress of flood map revisions
and updates.
Sec. 3014. Notification and appeal of map changes; notification to
communities of establishment of flood elevations.
Sec. 3015. Notification to tenants of availability of contents
insurance.
Sec. 3016. Notification to policy holders regarding direct management
of policy by FEMA.
Sec. 3017. Notice of availability of flood insurance and escrow in
RESPA good faith estimate.
Sec. 3018. Reimbursement for costs incurred by homeowners and
communities obtaining letters of map amendment or
revision.
Sec. 3019. Enhanced communication with certain communities during map
updating process.
Sec. 3020. Notification to residents newly included in flood hazard
areas.
Sec. 3021. Treatment of swimming pool enclosures outside of hurricane
season.
Sec. 3022. Information regarding multiple perils claims.
Sec. 3023. FEMA authority to reject transfer of policies.
Sec. 3024. Appeals.
Sec. 3025. Reserve fund.
Sec. 3026. CDBG eligibility for flood insurance outreach activities and
community building code administration grants.
Sec. 3027. Technical corrections.
Sec. 3028. Requiring competition for national flood insurance program
policies.
Sec. 3029. Studies of voluntary community-based flood insurance
options.
Sec. 3030. Report on inclusion of building codes in floodplain
management criteria.
Sec. 3031. Study on graduated risk.
Sec. 3032. Report on flood-in-progress determination.
Sec. 3033. Study on repaying flood insurance debt.
Sec. 3034. No cause of action.
Sec. 3035. Authority for the corps of engineers to provide specialized
or technical services.
TITLE IV--JUMPSTARTING OPPORTUNITY WITH BROADBAND SPECTRUM ACT OF 2011
Sec. 4001. Short title.
Sec. 4002. Definitions.
Sec. 4003. Rule of construction.
Sec. 4004. Enforcement.
Sec. 4005. National security restrictions on use of funds and auction
participation.
Subtitle A--Spectrum Auction Authority
Sec. 4101. Deadlines for auction of certain spectrum.
Sec. 4102. 700 MHz public safety narrowband spectrum and guard band
spectrum.
Sec. 4103. General authority for incentive auctions.
Sec. 4104. Special requirements for incentive auction of broadcast TV
spectrum.
Sec. 4105. Administration of auctions by Commission.
Sec. 4106. Extension of auction authority.
Sec. 4107. Unlicensed use in the 5 GHz band.
Subtitle B--Advanced Public Safety Communications
Part 1--National Implementation
Sec. 4201. Licensing of spectrum to Administrator.
Sec. 4202. National Public Safety Communications Plan.
Sec. 4203. Plan administration.
Sec. 4204. Initial funding for Administrator.
Sec. 4205. Study on emergency communications by amateur radio and
impediments to amateur radio communications.
Part 2--State Implementation
Sec. 4221. Negotiation and approval of contracts.
Sec. 4222. State implementation grant program.
Sec. 4223. State Implementation Fund.
Sec. 4224. Grants to States for network buildout.
Sec. 4225. Wireless facilities deployment.
Part 3--Public Safety Trust Fund
Sec. 4241. Public Safety Trust Fund.
Part 4--Next Generation 9-1-1 Advancement Act of 2011
Sec. 4261. Short title.
Sec. 4262. Findings.
Sec. 4263. Purposes.
Sec. 4264. Definitions.
Sec. 4265. Coordination of 9-1-1 implementation.
Sec. 4266. Requirements for multi-line telephone systems.
Sec. 4267. GAO study of State and local use of 9-1-1 service charges.
Sec. 4268. Parity of protection for provision or use of Next Generation
9-1-1 services.
Sec. 4269. Commission proceeding on autodialing.
Sec. 4270. NHTSA report on costs for requirements and specifications of
Next Generation 9-1-1 services.
Sec. 4271. FCC recommendations for legal and statutory framework for
Next Generation 9-1-1 services.
[[Page H8764]]
Subtitle C--Federal Spectrum Relocation
Sec. 4301. Relocation of and spectrum sharing by Federal Government
stations.
Sec. 4302. Spectrum Relocation Fund.
Sec. 4303. National security and other sensitive information.
Subtitle D--Telecommunications Development Fund
Sec. 4401. No additional Federal funds.
Sec. 4402. Independence of the Fund.
TITLE V--OFFSETS
Subtitle A--Guarantee Fees
Sec. 5001. Guarantee Fees.
Subtitle B--Social Security Provisions
Sec. 5101. Information for administration of Social Security provisions
related to noncovered employment.
Subtitle C--Child Tax Credit
Sec. 5201. Social Security number required to claim the refundable
portion of the child tax credit.
Subtitle D--Eliminating Taxpayer Benefits for Millionaires
Sec. 5301. Ending unemployment and supplemental nutrition assistance
program benefits for millionaires.
Subtitle E--Federal Civilian Employees
Part 1--Retirement Annuities
Sec. 5401. Short title.
Sec. 5402. Retirement contributions.
Sec. 5403. Amendments relating to secure annuity employees.
Sec. 5404. Annuity supplement.
Part 2--Federal Workforce
Sec. 5421. Extension of pay limitation for Federal employees.
Sec. 5422. Reduction of discretionary spending limits to achieve
savings from Federal employee provisions.
Sec. 5423. Reduction of revised discretionary spending limits to
achieve savings from Federal employee provisions.
Subtitle F--Health Care Provisions
Sec. 5501. Increase in applicable percentage used to calculate Medicare
part B and part D premiums for high-income beneficiaries.
Sec. 5502. Temporary adjustment to the calculation of Medicare part B
and part D premiums.
TITLE VI--MISCELLANEOUS PROVISIONS
Sec. 6001. Repeal of certain shifts in the timing of corporate
estimated tax payments.
Sec. 6002. Repeal of requirement relating to time for remitting certain
merchandise processing fees.
Sec. 6003. Points of order in the Senate.
Sec. 6004. PAYGO scorecard estimates.
TITLE I--JOB CREATION INCENTIVES
Subtitle A--North American Energy Access
SEC. 1001. SHORT TITLE.
This subtitle may be cited as the ``North American Energy
Security Act''.
SEC. 1002. PERMIT FOR KEYSTONE XL PIPELINE.
(a) In General.--Except as provided in subsection (b), not
later than 60 days after the date of enactment of this Act,
the President, acting through the Secretary of State, shall
grant a permit under Executive Order 13337 (3 U.S.C. 301
note; relating to issuance of permits with respect to certain
energy-related facilities and land transportation crossings
on the international boundaries of the United States) for the
Keystone XL pipeline project application filed on September
19, 2008 (including amendments).
(b) Exception.--
(1) In general.--The President shall not be required to
grant the permit under subsection (a) if the President
determines that the Keystone XL pipeline would not serve the
national interest.
(2) Report.--If the President determines that the Keystone
XL pipeline is not in the national interest under paragraph
(1), the President shall, not later than 15 days after the
date of the determination, submit to the Committee on Foreign
Relations of the Senate, the Committee on Foreign Affairs of
the House of Representatives, the majority leader of the
Senate, the minority leader of the Senate, the Speaker of the
House of Representatives, and the minority leader of the
House of Representatives a report that provides a
justification for determination, including consideration of
economic, employment, energy security, foreign policy, trade,
and environmental factors.
(3) Effect of no finding or action.--If a determination is
not made under paragraph (1) and no action is taken by the
President under subsection (a) not later than 60 days after
the date of enactment of this Act, the permit for the
Keystone XL pipeline described in subsection (a) that meets
the requirements of subsections (c) and (d) shall be in
effect by operation of law.
(c) Requirements.--The permit granted under subsection (a)
shall require the following:
(1) The permittee shall comply with all applicable Federal
and State laws (including regulations) and all applicable
industrial codes regarding the construction, connection,
operation, and maintenance of the United States facilities.
(2) The permittee shall obtain all requisite permits from
Canadian authorities and relevant Federal, State, and local
governmental agencies.
(3) The permittee shall take all appropriate measures to
prevent or mitigate any adverse environmental impact or
disruption of historic properties in connection with the
construction, operation, and maintenance of the United States
facilities.
(4) For the purpose of the permit issued under subsection
(a) (regardless of any modifications under subsection (d))--
(A) the final environmental impact statement issued by the
Secretary of State on August 26, 2011, satisfies all
requirements of the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.) and section 106 of the National
Historic Preservation Act (16 U.S.C. 470f);
(B) any modification required by the Secretary of State to
the Plan described in paragraph (5)(A) shall not require
supplementation of the final environmental impact statement
described in that paragraph; and
(C) no further Federal environmental review shall be
required.
(5) The construction, operation, and maintenance of the
facilities shall be in all material respects similar to that
described in the application described in subsection (a) and
in accordance with--
(A) the construction, mitigation, and reclamation measures
agreed to by the permittee in the Construction Mitigation and
Reclamation Plan found in appendix B of the final
environmental impact statement issued by the Secretary of
State on August 26, 2011, subject to the modification
described in subsection (d);
(B) the special conditions agreed to between the permittee
and the Administrator of the Pipeline Hazardous Materials
Safety Administration of the Department of Transportation
found in appendix U of the final environmental impact
statement described in subparagraph (A);
(C) if the modified route submitted by the Governor of
Nebraska under subsection (d)(3)(B) crosses the Sand Hills
region, the measures agreed to by the permittee for the Sand
Hills region found in appendix H of the final environmental
impact statement described in subparagraph (A); and
(D) the stipulations identified in appendix S of the final
environmental impact statement described in subparagraph (A).
(6) Other requirements that are standard industry practice
or commonly included in Federal permits that are similar to a
permit issued under subsection (a).
(d) Modification.--The permit issued under subsection (a)
shall require--
(1) the reconsideration of routing of the Keystone XL
pipeline within the State of Nebraska;
(2) a review period during which routing within the State
of Nebraska may be reconsidered and the route of the Keystone
XL pipeline through the State altered with any accompanying
modification to the Plan described in subsection (c)(5)(A);
and
(3) the President--
(A) to coordinate review with the State of Nebraska and
provide any necessary data and reasonable technical
assistance material to the review process required under this
subsection; and
(B) to approve the route within the State of Nebraska that
has been submitted to the Secretary of State by the Governor
of Nebraska.
(e) Effect of No Approval.--If the President does not
approve the route within the State of Nebraska submitted by
the Governor of Nebraska under subsection (d)(3)(B) not later
than 10 days after the date of submission, the route
submitted by the Governor of Nebraska under subsection
(d)(3)(B) shall be considered approved, pursuant to the terms
of the permit described in subsection (a) that meets the
requirements of subsection (c) and this subsection, by
operation of law.
Subtitle B--EPA Regulatory Relief
SEC. 1101. SHORT TITLE.
This subtitle may be cited as the ``EPA Regulatory Relief
Act of 2011''.
SEC. 1102. LEGISLATIVE STAY.
(a) Establishment of Standards.--In place of the rules
specified in subsection (b), and notwithstanding the date by
which such rules would otherwise be required to be
promulgated, the Administrator of the Environmental
Protection Agency (in this subtitle referred to as the
``Administrator'') shall--
(1) propose regulations for industrial, commercial, and
institutional boilers and process heaters, and commercial and
industrial solid waste incinerator units, subject to any of
the rules specified in subsection (b)--
(A) establishing maximum achievable control technology
standards, performance standards, and other requirements
under sections 112 and 129, as applicable, of the Clean Air
Act (42 U.S.C. 7412, 7429); and
(B) identifying non-hazardous secondary materials that,
when used as fuels or ingredients in combustion units of such
boilers, process heaters, or incinerator units are solid
waste under the Solid Waste Disposal Act (42 U.S.C. 6901 et
seq.; commonly referred to as the ``Resource Conservation and
Recovery Act'') for purposes of determining the extent to
which such combustion units are required to meet the
emissions standards under section 112 of the Clean Air Act
(42 U.S.C. 7412) or the emission standards under section 129
of such Act (42 U.S.C. 7429); and
(2) finalize the regulations on the date that is 15 months
after the date of the enactment of this Act.
(b) Stay of Earlier Rules.--The following rules are of no
force or effect, shall be treated as though such rules had
never taken effect, and shall be replaced as described in
subsection (a):
(1) ``National Emission Standards for Hazardous Air
Pollutants for Major Sources: Industrial, Commercial, and
Institutional Boilers and Process Heaters'', published at 76
Fed. Reg. 15608 (March 21, 2011).
(2) ``National Emission Standards for Hazardous Air
Pollutants for Area Sources: Industrial, Commercial, and
Institutional Boilers'', published at 76 Fed. Reg. 15554
(March 21, 2011).
(3) ``Standards of Performance for New Stationary Sources
and Emission Guidelines for Existing Sources: Commercial and
Industrial Solid Waste Incineration Units'', published at 76
Fed. Reg. 15704 (March 21, 2011).
(4) ``Identification of Non-Hazardous Secondary Materials
That Are Solid Waste'', published at 76 Fed. Reg. 15456
(March 21, 2011).
(c) Inapplicability of Certain Provisions.--With respect to
any standard required
[[Page H8765]]
by subsection (a) to be promulgated in regulations under
section 112 of the Clean Air Act (42 U.S.C. 7412), the
provisions of subsections (g)(2) and (j) of such section 112
shall not apply prior to the effective date of the standard
specified in such regulations.
SEC. 1103. COMPLIANCE DATES.
(a) Establishment of Compliance Dates.--For each regulation
promulgated pursuant to section 1012, the Administrator--
(1) shall establish a date for compliance with standards
and requirements under such regulation that is,
notwithstanding any other provision of law, not earlier than
5 years after the effective date of the regulation; and
(2) in proposing a date for such compliance, shall take
into consideration--
(A) the costs of achieving emissions reductions;
(B) any non-air quality health and environmental impact and
energy requirements of the standards and requirements;
(C) the feasibility of implementing the standards and
requirements, including the time needed to--
(i) obtain necessary permit approvals; and
(ii) procure, install, and test control equipment;
(D) the availability of equipment, suppliers, and labor,
given the requirements of the regulation and other proposed
or finalized regulations of the Environmental Protection
Agency; and
(E) potential net employment impacts.
(b) New Sources.--The date on which the Administrator
proposes a regulation pursuant to section 1012(a)(1)
establishing an emission standard under section 112 or 129 of
the Clean Air Act (42 U.S.C. 7412, 7429) shall be treated as
the date on which the Administrator first proposes such a
regulation for purposes of applying the definition of a new
source under section 112(a)(4) of such Act (42 U.S.C.
7412(a)(4)) or the definition of a new solid waste
incineration unit under section 129(g)(2) of such Act (42
U.S.C. 7429(g)(2)).
(c) Rule of Construction.--Nothing in this subtitle shall
be construed to restrict or otherwise affect the provisions
of paragraphs (3)(B) and (4) of section 112(i) of the Clean
Air Act (42 U.S.C. 7412(i)).
SEC. 1104. ENERGY RECOVERY AND CONSERVATION.
Notwithstanding any other provision of law, and to ensure
the recovery and conservation of energy consistent with the
Solid Waste Disposal Act (42 U.S.C. 6901 et seq.; commonly
referred to as the ``Resource Conservation and Recovery
Act''), in promulgating rules under section 1012(a)
addressing the subject matter of the rules specified in
paragraphs (3) and (4) of section 1012(b), the
Administrator--
(1) shall adopt the definitions of the terms ``commercial
and industrial solid waste incineration unit'', ``commercial
and industrial waste'', and ``contained gaseous material'' in
the rule entitled ``Standards of Performance for New
Stationary Sources and Emission Guidelines for Existing
Sources: Commercial and Industrial Solid Waste Incineration
Units'', published at 65 Fed. Reg. 75338 (December 1, 2000);
and
(2) shall identify non-hazardous secondary material to be
solid waste only if--
(A) the material meets such definition of commercial and
industrial waste; or
(B) if the material is a gas, it meets such definition of
contained gaseous material.
SEC. 1105. OTHER PROVISIONS.
(a) Establishment of Standards Achievable in Practice.--In
promulgating rules under section 1012(a), the Administrator
shall ensure that emissions standards for existing and new
sources established under section 112 or 129 of the Clean Air
Act (42 U.S.C. 7412, 7429), as applicable, can be met under
actual operating conditions consistently and concurrently
with emission standards for all other air pollutants
regulated by the rule for the source category, taking into
account variability in actual source performance, source
design, fuels, inputs, controls, ability to measure the
pollutant emissions, and operating conditions.
(b) Regulatory Alternatives.--For each regulation
promulgated pursuant to section 1012(a), from among the range
of regulatory alternatives authorized under the Clean Air Act
(42 U.S.C. 7401 et seq.) including work practice standards
under section 112(h) of such Act (42 U.S.C. 7412(h)), the
Administrator shall impose the least burdensome, consistent
with the purposes of such Act and Executive Order No. 13563
published at 76 Fed. Reg. 3821 (January 21, 2011).
Subtitle C--Extension of 100 Percent Expensing
SEC. 1201. EXTENSION OF ALLOWANCE FOR BONUS DEPRECIATION FOR
CERTAIN BUSINESS ASSETS.
(a) Extension of 100 Percent Bonus Depreciation.--
(1) In general.--Paragraph (5) of section 168(k) of the
Internal Revenue Code of 1986 is amended--
(A) by striking ``January 1, 2012'' each place it appears
and inserting ``January 1, 2013'', and
(B) by striking ``January 1, 2013'' and inserting ``January
1, 2014''.
(2) Conforming amendments.--
(A) The heading for paragraph (5) of section 168(k) of such
Code is amended by striking ``Pre-2012 periods'' and
inserting ``Pre-2013 periods''.
(B) Clause (ii) of section 460(c)(6)(B) of such Code is
amended to read as follows:
``(ii) is placed in service--
``(I) after December 31, 2009, and before January 1, 2011
(January 1, 2012, in the case of property described in
section 168(k)(2)(B)), or
``(II) after December 31, 2011, and before January 1, 2013
(January 1, 2014, in the case of property described in
section 168(k)(2)(B)).''.
(3) Effective date.--The amendments made by this subsection
shall apply to property placed in service after December 31,
2011.
(b) Expansion of Election To Accelerate AMT Credits in Lieu
of Bonus Depreciation.--
(1) In general.--Paragraph (4) of section 168(k) of such
Code is amended to read as follows:
``(4) Election to accelerate amt credits in lieu of bonus
depreciation.--
``(A) In general.--If a corporation elects to have this
paragraph apply for any taxable year--
``(i) paragraph (1) shall not apply to any eligible
qualified property placed in service by the taxpayer in such
taxable year,
``(ii) the applicable depreciation method used under this
section with respect to such property shall be the straight
line method, and
``(iii) the limitation imposed by section 53(c) for such
taxable year shall be increased by the bonus depreciation
amount which is determined for such taxable year under
subparagraph (B).
``(B) Bonus depreciation amount.--For purposes of this
paragraph--
``(i) In general.--The bonus depreciation amount for any
taxable year is an amount equal to 20 percent of the excess
(if any) of--
``(I) the aggregate amount of depreciation which would be
allowed under this section for eligible qualified property
placed in service by the taxpayer during such taxable year if
paragraph (1) applied to all such property, over
``(II) the aggregate amount of depreciation which would be
allowed under this section for eligible qualified property
placed in service by the taxpayer during such taxable year if
paragraph (1) did not apply to any such property.
The aggregate amounts determined under subclauses (I) and
(II) shall be determined without regard to any election made
under subsection (b)(2)(D), (b)(3)(D), or (g)(7) and without
regard to subparagraph (A)(ii).
``(ii) Limitation.--The bonus depreciation amount for any
taxable year shall not exceed the lesser of--
``(I) the minimum tax credit under section 53(b) for such
taxable year determined by taking into account only the
adjusted minimum tax for taxable years ending before January
1, 2012 (determined by treating credits as allowed on a
first-in, first-out basis), or
``(II) 50 percent of the minimum tax credit under section
53(b) for the first taxable year ending after December 31,
2011.
``(iii) Aggregation rule.--All corporations which are
treated as a single employer under section 52(a) shall be
treated--
``(I) as 1 taxpayer for purposes of this paragraph, and
``(II) as having elected the application of this paragraph
if any such corporation so elects.
``(C) Eligible qualified property.--For purposes of this
paragraph, the term `eligible qualified property' means
qualified property under paragraph (2), except that in
applying paragraph (2) for purposes of this paragraph--
``(i) `March 31, 2008' shall be substituted for `December
31, 2007' each place it appears in subparagraph (A) and
clauses (i) and (ii) of subparagraph (E) thereof,
``(ii) `April 1, 2008' shall be substituted for `January 1,
2008' in subparagraph (A)(iii)(I) thereof, and
``(iii) only adjusted basis attributable to manufacture,
construction, or production--
``(I) after March 31, 2008, and before January 1, 2010, and
``(II) after December 31, 2010, and before January 1, 2013,
shall be taken into account under subparagraph (B)(ii)
thereof.
``(D) Credit refundable.--For purposes of section 6401(b),
the aggregate increase in the credits allowable under part IV
of subchapter A for any taxable year resulting from the
application of this paragraph shall be treated as allowed
under subpart C of such part (and not any other subpart).
``(E) Other rules.--
``(i) Election.--Any election under this paragraph may be
revoked only with the consent of the Secretary.
``(ii) Partnerships with electing partners.--In the case of
a corporation making an election under subparagraph (A) and
which is a partner in a partnership, for purposes of
determining such corporation's distributive share of
partnership items under section 702--
``(I) paragraph (1) shall not apply to any eligible
qualified property, and
``(II) the applicable depreciation method used under this
section with respect to such property shall be the straight
line method.
``(iii) Certain partnerships.--In the case of a partnership
in which more than 50 percent of the capital and profits
interests are owned (directly or indirectly) at all times
during the taxable year by one corporation (or by
corporations treated as 1 taxpayer under subparagraph
(B)(iii)), each partner shall be treated as having an amount
equal to such partner's allocable share of the eligible
property for such taxable year (as determined under
regulations prescribed by the Secretary).
``(iv) Special rule for passenger aircraft.--In the case of
any passenger aircraft, the written binding contract
limitation under paragraph (2)(A)(iii)(I) shall not apply for
purposes of subparagraphs (B)(i)(I) and (C).''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years ending after December 31, 2011.
(3) Transitional rule.--In the case of a taxable year
beginning before January 1, 2012, and ending after December
31, 2011, the bonus depreciation amount determined under
paragraph (4) of section 168(k) of Internal Revenue Code of
1986 for such year shall be the sum of--
(A) such amount determined under such paragraph as in
effect on the date before the date of enactment of this Act
taking into account only
[[Page H8766]]
property placed in service before January 1, 2012, and
(B) such amount determined under such paragraph as amended
by this Act taking into account only property placed in
service after December 31, 2011.
TITLE II--EXTENSION OF CERTAIN EXPIRING PROVISIONS AND RELATED MEASURES
Subtitle A--Extension of Payroll Tax Reduction
SEC. 2001. EXTENSION OF TEMPORARY EMPLOYEE PAYROLL TAX
REDUCTION THROUGH END OF 2012.
Subsection (c) of section 601 of the Tax Relief,
Unemployment Insurance Reauthorization, and Job Creation Act
of 2010 is amended by striking ``calendar year 2011'' and
inserting ``calendar years 2011 and 2012''.
Subtitle B--Unemployment Compensation
SEC. 2101. SHORT TITLE.
This subtitle may be cited as the ``Extended Benefits,
Reemployment, and Program Integrity Improvement Act''.
PART 1--REFORMS OF UNEMPLOYMENT COMPENSATION TO PROMOTE WORK AND JOB
CREATION
SEC. 2121. CONSISTENT JOB SEARCH REQUIREMENTS.
(a) In General.--Section 303(a) of the Social Security Act
is amended by adding at the end the following:
``(11)(A) A requirement that, as a condition of eligibility
for regular compensation for any week, a claimant must be
able to work, available to work, and actively seeking work.
``(B) For purposes of this paragraph, the term `actively
seeking work' means, with respect to an individual, that such
individual is actively engaged in a systematic and sustained
effort to obtain work, as determined based on evidence
(whether in electronic format or otherwise) satisfactory to
the State agency charged with the administration of the State
law.
``(C) The specific requirements that must be met in order
to satisfy this paragraph shall be established by the State
agency, and shall include at least the following:
``(i) Registration for employment services within 10 days
after making initial application for regular compensation.
``(ii) Posting a resume, record, or other application for
employment on such database as the State agency may require.
``(iii) Applying for work in such manner as the State
agency may require.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to weeks beginning after the end of the first
session of the State legislature which begins after the date
of enactment of this Act.
SEC. 2122. PARTICIPATION IN REEMPLOYMENT SERVICES MADE A
CONDITION OF BENEFIT RECEIPT.
(a) Social Security Act.--Paragraph (10) of section 303(a)
of the Social Security Act is amended to read as follows:
``(10)(A) A requirement that, as a condition of eligibility
for regular compensation for any week and in addition to
State work search requirements--
``(i) a claimant shall meet the minimum educational
requirements set forth in subparagraph (B); and
``(ii) any claimant who has been referred to reemployment
services shall participate in such services.
``(B) For purposes of this paragraph, an individual shall
not be considered to have met the minimum educational
requirements of this subparagraph unless such individual--
``(i) has earned a high school diploma;
``(ii) has earned the General Educational Development (GED)
credential or other State-recognized equivalent (including by
meeting recognized alternative standards for individuals with
disabilities); or
``(iii) is enrolled and making satisfactory progress in
classes leading to satisfaction of clause (i) or (ii).
``(C) The requirements of subparagraph (B) may be waived
for an individual to the extent that the State agency charged
with the administration of the State law deems such
requirements to be unduly burdensome.''.
(b) Internal Revenue Code of 1986.--Paragraph (8) of
section 3304(a) of the Internal Revenue Code of 1986 is
amended to read as follows:
``(8) compensation shall not be denied to an individual for
any week in which the individual is enrolled and making
satisfactory progress in education or training which has been
previously approved by the State agency;''.
(c) Effective Date.--The amendments made by this section
shall apply to weeks beginning after the end of the first
session of the State legislature which begins after the date
of enactment of this Act.
SEC. 2123. STATE FLEXIBILITY TO PROMOTE THE REEMPLOYMENT OF
UNEMPLOYED WORKERS.
Title III of the Social Security Act (42 U.S.C. 501 and
following) is amended by adding at the end the following:
``demonstration projects
``Sec. 305. (a) The Secretary of Labor may enter into
agreements, with up to 10 States per year that submit an
application described in subsection (b), for the purpose of
allowing such States to conduct demonstration projects to
test and evaluate measures designed--
``(1) to expedite the reemployment of individuals who have
established a benefit year and are otherwise eligible to
claim unemployment compensation under the State law of such
State; or
``(2) to improve the effectiveness of a State in carrying
out its State law with respect to reemployment.
``(b) The Governor of any State desiring to conduct a
demonstration project under this section shall submit an
application to the Secretary of Labor. Any such application
shall include--
``(1) a general description of the proposed demonstration
project, including the authority (under the laws of the
State) for the measures to be tested, as well as the period
of time during which such demonstration project would be
conducted;
``(2) if a waiver under subsection (c) is requested, a
statement describing the specific aspects of the project to
which the waiver would apply and the reasons why such waiver
is needed;
``(3) a description of the goals and the expected
programmatic outcomes of the demonstration project, including
how the project would contribute to the objective described
in subsection (a)(1), subsection (a)(2), or both;
``(4) assurances (accompanied by supporting analysis) that
the demonstration project would operate for a period of at
least 1 calendar year and not result in any increased net
costs to the State's account in the Unemployment Trust Fund;
``(5) a description of the manner in which the State--
``(A) will conduct an impact evaluation, using a
methodology appropriate to determine the effects of the
demonstration project; and
``(B) will determine the extent to which the goals and
outcomes described in paragraph (3) were achieved; and
``(6) assurances that the State will provide any reports
relating to the demonstration project, after its approval, as
the Secretary of Labor may require.
``(c) The Secretary of Labor may waive any of the
requirements of section 3304(a)(4) of the Internal Revenue
Code of 1986 or of paragraph (1) or (5) of section 303(a), to
the extent and for the period the Secretary of Labor
considers necessary to enable the State to carry out a
demonstration project under this section.
``(d) A demonstration project under this section--
``(1) may be commenced any time after the date of enactment
of this section;
``(2) may not be approved for a period of time greater than
3 years, subject to extension upon request of the Governor of
the State involved for such additional period as the
Secretary of Labor may agree to, except that in no event may
a demonstration project under this section be conducted after
the end of the 5-year period beginning on the date of
enactment of this section; and
``(3) may not be extended without sufficient data to show
that the project--
``(A) did not increase the net cost to the State's account
in the Unemployment Trust Fund during the initial
demonstration period; and
``(B) may be reasonably projected not to increase the net
cost to the State's account in the Unemployment Trust Fund
during the extended period requested.
``(e) The Secretary of Labor shall, in the case of any
State for which an application is submitted under subsection
(b)--
``(1) notify the State as to whether such application has
been approved or denied within 30 days after receipt of a
complete application; and
``(2) provide public notice of the decision within 10 days
after providing notification to the State in accordance with
paragraph (1).
Public notice under paragraph (2) may be provided through the
Internet or other appropriate means. Any application under
this section that has not been denied within the 30-day
period described in paragraph (1) shall be deemed approved,
and public notice of any approval under this sentence shall
be provided within 10 days thereafter.
``(f) The Secretary of Labor may terminate a demonstration
project under this section if the Secretary determines that
the State has violated the substantive terms or conditions of
the project.
``(g) Funding certified under section 302(a) may be used
for an approved demonstration project.''.
SEC. 2124. ASSISTANCE AND GUIDANCE IN IMPLEMENTING SELF-
EMPLOYMENT ASSISTANCE PROGRAMS.
(a) In General.--For purposes of assisting States in
establishing, improving, and administering self-employment
assistance programs, the Secretary shall--
(1) develop model language that may be used by States in
enacting such programs, as well as periodically review and
revise such model language;
(2) provide technical assistance and guidance in
establishing, improving, and administering such programs; and
(3) establish reporting requirements for States in regard
to such programs, including reporting on--
(A) the number of businesses and jobs created, both
directly and indirectly, by self-employment assistance
programs; and
(B) the estimated Federal and State tax revenues collected
from such businesses and their employees.
(b) Model Language and Guidance.--The model language,
guidance, and reporting requirements developed by the
Secretary pursuant to subsection (a) shall--
(1) allow sufficient flexibility for States and
participating individuals; and
(2) ensure accountability and program integrity.
(c) Consultation.--In developing the model language,
guidance, and reporting requirements pursuant to subsection
(a), the Secretary shall consult with employers, labor
organizations, State agencies, and other relevant program
experts.
(d) Entrepreneurial Training Programs.--The Secretary shall
coordinate with the Administrator of the Small Business
Administration to
[[Page H8767]]
ensure that adequate funding is reserved and made available
for the provision of entrepreneurial training to individuals
participating in self-employment assistance programs.
SEC. 2125. IMPROVING PROGRAM INTEGRITY BY BETTER RECOVERY OF
OVERPAYMENTS.
(a) Use of Unemployment Compensation To Repay
Overpayments.--Section 3304(a)(4)(D) of the Internal Revenue
Code of 1986 and section 303(g)(1) of the Social Security Act
are amended by striking ``may'' and inserting ``shall''.
(b) Use of Unemployment Compensation To Repay Federal
Additional Compensation Overpayments.--Section 303(g)(3) of
the Social Security Act is amended by inserting ``Federal
additional compensation,'' after ``trade adjustment
allowances,''.
(c) Effective Date.--The amendments made by this section
shall apply to weeks beginning after the end of the first
session of the State legislature which begins after the date
of enactment of this Act.
SEC. 2126. DATA STANDARDIZATION FOR IMPROVED DATA MATCHING.
(a) In General.--Title IX of the Social Security Act is
amended by adding at the end the following:
``DATA STANDARDIZATION FOR IMPROVED DATA MATCHING
``Standard Data Elements
``Sec. 911. (a)(1) The Secretary of Labor, in consultation
with an interagency work group which shall be established by
the Office of Management and Budget, and considering State
and employer perspectives, shall, by rule, designate standard
data elements for any category of information required under
title III or this title.
``(2) The standard data elements designated under paragraph
(1) shall, to the extent practicable, be nonproprietary and
interoperable.
``(3) In designating standard data elements under this
subsection, the Secretary of Labor shall, to the extent
practicable, incorporate--
``(A) interoperable standards developed and maintained by
an international voluntary consensus standards body, as
defined by the Office of Management and Budget, such as the
International Organization for Standardization;
``(B) interoperable standards developed and maintained by
intergovernmental partnerships, such as the National
Information Exchange Model; and
``(C) interoperable standards developed and maintained by
Federal entities with authority over contracting and
financial assistance, such as the Federal Acquisition
Regulations Council.
``Data Standards for Reporting
``(b)(1) The Secretary of Labor, in consultation with an
interagency work group established by the Office of
Management and Budget, and considering State and employer
perspectives, shall, by rule, designate data reporting
standards to govern the reporting required under title III or
this title.
``(2) The data reporting standards required by paragraph
(1) shall, to the extent practicable--
``(A) incorporate a widely-accepted, nonproprietary,
searchable, computer-readable format;
``(B) be consistent with and implement applicable
accounting principles; and
``(C) be capable of being continually upgraded as
necessary.
``(3) In designating reporting standards under this
subsection, the Secretary of Labor shall, to the extent
practicable, incorporate existing nonproprietary standards,
such as the eXtensible Business Reporting Language.''.
(b) Effective Date.--The amendment made by this section
shall apply after September 30, 2012.
SEC. 2127. DRUG TESTING OF APPLICANTS.
Section 303 of the Social Security Act is amended by adding
at the end the following:
``(k)(1) Nothing in this Act or any other provision of
Federal law shall be considered to prevent a State from--
``(A) testing an applicant for unemployment compensation
for the unlawful use of controlled substances as a condition
for receiving such compensation; or
``(B) denying such compensation to such applicant on the
basis of the result of such testing.
``(2) For purposes of this subsection--
``(A) the term `unemployment compensation' has the meaning
given such term in subsection (d)(2)(A); and
``(B) the term `controlled substance' has the meaning given
such term in section 102 of the Controlled Substances Act (21
U.S.C. 802).''.
PART 2--PROVISIONS RELATING TO EXTENDED BENEFITS
SEC. 2141. SHORT TITLE.
This part may be cited as the ``Unemployment Benefits
Extension Act of 2011''.
SEC. 2142. EXTENSION AND MODIFICATION OF EMERGENCY
UNEMPLOYMENT COMPENSATION PROGRAM.
(a) Extension.--Section 4007 of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended--
(1) in subsection (a)--
(A) by striking ``Except as provided in subsection (b),
an'' and inserting ``An''; and
(B) by striking ``January 3, 2012'' and inserting ``January
31, 2013''; and
(2) by amending subsection (b) to read as follows:
``(b) Termination.--No compensation under this title shall
be payable for any week subsequent to the last week described
in subsection (a).''.
(b) Modified Tiers of Emergency Unemployment
Compensation.--
(1) In general.--Section 4002 of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended by striking subsections (b) through (e) and
inserting the following:
``(b) First-Tier Emergency Unemployment Compensation.--
``(1) In general.--The amount established in an account
under subsection (a) shall be an amount (in this title
referred to as `first-tier emergency unemployment
compensation') equal to the lesser of--
``(A) 80 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under the
State law; or
``(B) 20 times the individual's average weekly benefit
amount for the benefit year.
``(2) Weekly benefit amount.--For purposes of this
subsection, an individual's weekly benefit amount for any
week is the amount of regular compensation (including
dependents' allowances) under the State law payable to such
individual for such week for total unemployment.
``(c) Second-Tier Emergency Unemployment Compensation.--
``(1) In general.--If, at the time that the amount
established in an individual's account under subsection
(b)(1) is exhausted or at any time thereafter, such
individual's State is in an extended benefit period (as
determined under paragraph (2)), such account shall be
augmented by an amount (in this title referred to as `second-
tier emergency unemployment compensation') equal to the
lesser of--
``(A) 50 percent of the total amount of regular
compensation (including dependents' allowances) payable to
the individual during the individual's benefit year under the
State law; or
``(B) 13 times the individual's average weekly benefit
amount (as determined under subsection (b)(2)) for the
benefit year.
``(2) Extended benefit period.--For purposes of paragraph
(1), a State shall be considered to be in an extended benefit
period, as of any given time, if--
``(A) such a period would then be in effect for such State,
under the Federal-State Extended Unemployment Compensation
Act of 1970, if section 203(d) of such Act--
``(i) were applied by substituting `4' for `5' each place
it appears; and
``(ii) did not include the requirement under paragraph
(1)(A) thereof; or
``(B) such a period would then be in effect for such State,
under the Federal-State Extended Unemployment Compensation
Act of 1970, if--
``(i) section 203(f) of such Act were applied to such State
(regardless of whether or not the State by law had provided
for such application); and
``(ii) such section 203(f)--
``(I) were applied by substituting `6.0' for `6.5' in
paragraph (1)(A)(i) thereof; and
``(II) did not include the requirement under paragraph
(1)(A)(ii) thereof.
``(3) Limitation.--The account of an individual may be
augmented not more than once under this subsection.''.
(2) Technical and conforming amendments.--Section 4002 of
the Supplemental Appropriations Act, 2008 (Public Law 110-
252; 26 U.S.C. 3304 note), as amended by paragraph (1), is
further amended--
(A) by striking subsection (f); and
(B) by redesignating subsection (g) as subsection (d).
(c) Order of Payments Requirement.--
(1) In general.--Section 4001(e) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended to read as follows:
``(e) Coordination Rule.--An agreement under this section
shall not apply (or shall cease to apply) with respect to a
State upon a determination by the Secretary that, under the
State law or other applicable rules of such State, the
payment of extended compensation for which an individual is
otherwise eligible may or must be deferred until after the
payment of any emergency unemployment compensation under
section 4002, as amended by the Unemployment Benefits
Extension Act of 2011, for which the individual is
concurrently eligible.''.
(2) Technical and conforming amendments.--Section
4001(b)(2) of such Act is amended--
(A) by striking ``or extended compensation''; and
(B) by striking ``(except as provided under subsection
(e))''.
(d) Funding.--Section 4004(e)(1) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended--
(1) in subparagraph (F), by striking ``and'' at the end;
and
(2) by inserting after subparagraph (G) the following:
``(H) the amendments made by section 2302 of the
Unemployment Benefits Extension Act of 2011; and''.
(e) Effective Dates; Transition Rules Relating to
Subsection (b).--
(1) In general.--The amendments made by--
(A) subsection (a) shall take effect as if included in the
enactment of the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010 (Public Law
111-312);
(B) subsections (b) and (c) shall take effect on December
28, 2011, and shall apply with respect to weeks of
unemployment beginning after that date; and
(C) subsection (d) shall take effect on the date of
enactment of this Act.
(2) Transition rules for the application of the amendments
made by subsection (b) in the case of individuals having
residual amounts in their account.--
(A) Exhaustion of residual amounts.--In the case of an
individual who, as of any time during the last week ending
before January 3, 2012, has amounts remaining in an account
established under section 4002 of the Supplemental
Appropriations Act, 2008, emergency unemployment compensation
shall continue to be payable to such individual from the
amounts so remaining, subject to section 4007(b) of such Act,
as amended by this subtitle.
[[Page H8768]]
(B) Non-augmentation rule.--
(i) In general.--Except as provided in clause (ii), after
exhausting the amounts remaining in the individual's account
under subparagraph (A), no augmentation (or further
augmentation) to such account may be made.
(ii) Exception.--In the case of an individual whose
residual amounts (as described in subparagraph (A)) represent
amounts that were established in such individual's account
under section 4002(b) of the Supplemental Appropriations Act,
2008, as in effect before the date of enactment of this Act,
no augmentation to such account may be made except in
accordance with section 4002(c) of such Act, as amended by
this subtitle.
(3) Transition rules for the application of the amendments
made by subsection (b) in the case of individuals between
tiers.--
(A) In general.--In the case of an individual for whom an
emergency unemployment compensation account has been
established under section 4002 of the Supplemental
Appropriations Act, 2008, as in effect before the date of
enactment of this Act, but who is not covered by paragraph
(2), no augmentation (or further augmentation) to such
account shall be allowable, except as provided in
subparagraph (B).
(B) Exception.--
(i) Rule.--In the case of a first-tier exhaustee,
augmentation shall be allowable in a manner similar to that
described in paragraph (2)(B)(ii).
(ii) Definition.--For purposes of this subparagraph, the
term ``first-tier exhaustee'' means an individual--
(I) who is described in subparagraph (A); and
(II) whose emergency unemployment compensation account--
(aa) has been exhausted of amounts described in section
4002(b) of the Supplemental Appropriations Act, 2008, as in
effect before the enactment of this Act; but
(bb) has never been augmented.
(4) Week defined.--For purposes of this subsection, the
term ``week'' has the meaning given such term under section
4006 of the Supplemental Appropriations Act, 2008.
SEC. 2143. TEMPORARY EXTENSION OF EXTENDED BENEFIT
PROVISIONS.
(a) In General.--Section 2005 of the Assistance for
Unemployed Workers and Struggling Families Act, as contained
in Public Law 111-5 (26 U.S.C. 3304 note), is amended--
(1) by striking ``January 4, 2012'' each place it appears
and inserting ``January 31, 2013''; and
(2) in subsection (c), by striking ``June 11, 2012'' and
inserting ``January 31, 2013''.
(b) Extension of Matching for States With No Waiting
Week.--Section 5 of the Unemployment Compensation Extension
Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is
amended by striking ``June 10, 2012'' and inserting ``January
31, 2013''.
(c) Extension of Modification of Indicators Under the
Extended Benefit Program.--Section 203 of the Federal-State
Extended Unemployment Compensation Act of 1970 (26 U.S.C.
3304 note) is amended--
(1) in subsection (d), by striking ``December 31, 2011''
and inserting ``January 31, 2013''; and
(2) in subsection (f)(2), by striking ``December 31, 2011''
and inserting ``January 31, 2013''.
(d) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the Tax
Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010 (Public Law 111-312; 26 U.S.C. 3304
note).
SEC. 2144. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER
THE RAILROAD UNEMPLOYMENT INSURANCE ACT.
(a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad
Unemployment Insurance Act, as added by section 2006 of the
American Recovery and Reinvestment Act of 2009 (Public Law 96
111-5) and as amended by section 9 of the Worker,
Homeownership, and Business Assistance Act of 2009 (Public
Law 111-92) and section 505 of the Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010
(Public Law 111-312), is amended--
(1) by striking ``June 30, 2011'' and inserting ``June 30,
2012''; and
(2) by striking ``December 31, 2011'' and inserting
``January 31, 2013''.
(b) Clarification on Authority to Use Funds.--Funds
appropriated under either the first or second sentence of
clause (iv) of section 2(c)(2)(D) of the Railroad
Unemployment Insurance Act shall be available to cover the
cost of additional extended unemployment benefits provided
under such section 2(c)(2)(D) by reason of the amendments
made by subsection (a) as well as to cover the cost of such
benefits provided under such section 2(c)(2)(D), as in effect
on the day before the date of enactment of this Act.
PART 3--IMPROVING REEMPLOYMENT STRATEGIES UNDER THE EMERGENCY
UNEMPLOYMENT COMPENSATION PROGRAM
SEC. 2161. IMPROVED WORK SEARCH FOR THE LONG-TERM UNEMPLOYED.
(a) In General.--Section 4001(b) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended--
(1) by striking ``and'' at the end of paragraph (2);
(2) by striking the period at the end of paragraph (3) and
inserting ``; and''; and
(3) by adding at the end the following:
``(4) are able to work, available to work, and actively
seeking work.''.
(b) Actively Seeking Work.--Section 4001 of such Act is
amended by adding at the end the following:
``(h) Actively Seeking Work.--
``(1) In general.--For purposes of subsection (b)(4), the
term `actively seeking work' means, with respect to any
individual, that such individual is actively engaged in a
systematic and sustained effort to obtain work, as determined
based on evidence (whether in electronic format or otherwise)
satisfactory to the State agency charged with the
administration of the State law.
``(2) Specific requirements.--The specific requirements
that must be met in order to satisfy subsection (b)(4), to
the extent that it relates to actively seeking work, shall be
established by the State agency, and shall include the
following:
``(A) Registration for employment services within 30 days
after the date on which occurs whichever of the following
events occurs first, in the case of the individual referred
to in paragraph (1):
``(i) The submission of the claim on the basis of which
amounts described in section 4002(b) (as amended by the
Unemployment Benefits Extension Act of 2011) first become
payable to such individual.
``(ii) The submission of the claim on the basis of which
amounts described in section 4002(c) (as amended by the
Unemployment Benefits Extension Act of 2011) first become
payable to such individual.
``(B) Posting a resume, record, or other application for
employment on such database as the State agency may require.
``(C) Applying, in such manner as the State agency may
require, for work.''.
SEC. 2162. REEMPLOYMENT SERVICES AND REEMPLOYMENT AND
ELIGIBILITY ASSESSMENT ACTIVITIES.
(a) In General.--
(1) Provision of services and activities.--Section 4001 of
the Supplemental Appropriations Act, 2008 (Public Law 110-
252; 26 U.S.C. 3304 note) is amended by inserting after
subsection (h) (as added by section 2161) the following:
``(i) Provision of Services and Activities.--
``(1) In general.--An agreement under this section shall
require the following:
``(A) The State which is party to such agreement shall
provide reemployment services and reemployment and
eligibility assessment activities to each individual--
``(i) who, on or after the 30th day after the date of
enactment of the Extended Benefits, Reemployment, and Program
Integrity Improvement Act, begins receiving amounts described
in subsection (b) and (c) of 4002 of the Supplemental
Appropriations Act of 2008, as amended by the Extended
Benefits, Reemployment, and Program Integrity Improvement
Act; and
``(ii) while such individual continues to receive emergency
unemployment compensation under this title.
``(B) As a condition of eligibility for emergency
unemployment compensation for any week--
``(i) a claimant shall meet the minimum educational
requirements set forth in section 303(a)(10)(B) of the Social
Security Act;
``(ii) a claimant who has been duly referred to
reemployment services shall participate in such services; and
``(iii) a claimant shall be actively seeking work
(determined applying subsection (h)).
``(2) Description of services and activities.--The
reemployment services and in-person reemployment and
eligibility assessment activities provided to individuals
receiving emergency unemployment compensation described in
paragraph (1)--
``(A) shall include--
``(i) the provision of labor market and career information;
``(ii) an assessment of the skills of the individual;
``(iii) orientation to the services available through the
one-stop centers established under title I of the Workforce
Investment Act of 1998; and
``(iv) review of the eligibility of the individual for
emergency unemployment compensation relating to the job
search activities of the individual; and
``(B) may include the provision of--
``(i) comprehensive and specialized assessments;
``(ii) individual and group career counseling;
``(iii) training services;
``(iv) additional reemployment services; and
``(v) job search counseling and the development or review
of an individual reemployment plan that includes
participation in job search activities and appropriate
workshops.
``(3) Participation requirement.--As a condition of
continuing eligibility for emergency unemployment
compensation for any week, an individual who has been
referred to reemployment services or reemployment and
eligibility assessment activities under this subsection shall
participate in such services or activities, unless the State
agency responsible for the administration of State
unemployment compensation law determines that--
``(A) such individual has completed participating in such
services or activities; or
``(B) there is justifiable cause for failure to participate
or to complete participating in such services or activities,
as determined in accordance with guidance to be issued by the
Secretary.''.
(2) Issuance of guidance.--Not later than 30 days after the
date of enactment of this Act, the Secretary shall issue
guidance on the implementation of the reemployment services
and reemployment and eligibility assessment activities
required to be provided under the amendment made by paragraph
(1).
(b) Funding.--Section 4002 of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note), as amended by section 2142(b), is further amended by
adding at the end the following:
``(e) Optional Funding for Reemployment Services and
Reemployment and Eligibility Assessment Activities.--In order
to carry out section 4001(i)(2), a State may withhold up to
$5 from any amount otherwise payable to an individual under
this title for any week.''.
[[Page H8769]]
SEC. 2163. STATE FLEXIBILITY TO SUPPORT LONG-TERM UNEMPLOYED
WORKERS WITH IMPROVED REEMPLOYMENT SERVICES.
Title IV of the Supplemental Appropriations Act, 2008
(Public Law 110-252; 26 U.S.C. 3304 note) is amended by
adding at the end the following:
``demonstration projects
``Sec. 4008. (a) The Secretary may enter into an agreement
under this section, with any State which has an agreement
with the Secretary under section 4001 and which submits an
application under subsection (b), for the purpose of allowing
such State to divert, in any month, a number of emergency
unemployment compensation beneficiaries not to exceed 20
percent of the total number of beneficiaries, attributable to
such State and receiving emergency unemployment compensation
for the first week of such month, to conduct demonstration
projects to test and evaluate measures designed--
``(1) to expedite the reemployment of individuals who
establish initial eligibility for unemployment compensation
under the State law of such State; or
``(2) to improve the effectiveness of a State in carrying
out its State law with respect to reemployment.
``(b) The Governor of any State desiring to conduct a
demonstration project under this section shall submit an
application to the Secretary. Any such application shall
include--
``(1) a description of the activities to be carried out by
the State to assist in the reemployment of eligible
individuals to be served in accordance with this part,
including activities the State intends to carry out and an
estimate of the amounts the State intends to allocate to
those respective activities;
``(2) a description of the performance outcomes to be
achieved by the State through the activities carried out
under this part, including the employment outcomes to be
achieved by participants and the processes the State will use
to track performance, consistent with guidance provided by
the Secretary regarding such outcomes and processes;
``(3) the timelines for implementation of the activities
described in the application and the number of emergency
unemployment compensation claimants expected to be enrolled
in such activities for each quarter;
``(4) assurances that the State will participate in the
evaluation activities carried out by the Secretary under this
section;
``(5) assurances that the State will provide appropriate
reemployment services to individuals participating in the
demonstration project;
``(6) assurances that the State will report such
information as the Secretary may require relating to fiscal,
performance and other matters, including employment outcomes;
``(7) the specific aspects of the project to which the
waiver would apply and the reasons why such waiver is needed;
``(8) a description of the goals and the expected
programmatic outcomes of the demonstration project, including
how the project would contribute to the objective described
in subsection (a)(1), subsection (a)(2), or both;
``(9) assurances (accompanied by supporting analysis) that
the demonstration project would not result in any increased
net costs to the emergency unemployment compensation program;
``(10) a description of the manner in which the State--
``(A) will conduct an impact evaluation, using a control or
comparison group or other valid methodology, of the
demonstration project; and
``(B) will determine the extent to which the goals and
outcomes described in paragraph (8) were achieved; and
``(11) assurances that the State will provide any reports
relating to the demonstration project, after its approval, as
the Secretary may require.
``(c) Activities that may be pursued under a demonstration
project under this section, including--
``(1) subsidies for employer-provided training, such as
wage subsidies;
``(2) work sharing or short-time compensation; and
``(3) enhanced employment strategies, which may include
services such as--
``(A) assessments, counseling, and other intensive services
that are provided by staff on a one-to-one basis and may be
customized to meet the reemployment needs of emergency
unemployment compensation claimants and individuals;
``(B) comprehensive assessments designed to identify
alternative career paths;
``(C) case management;
``(D) reemployment services that are provided more
frequently and more intensively than such reemployment
services have previously been provided by the State;
``(E) self-employment assistance programs;
``(F) services that are designed to enhance communication
skills, interviewing skills, and other skills that would
assist in obtaining reemployment;
``(G) direct disbursements to employers who hire
individuals receiving emergency unemployment compensation to
cover part of the cost of wages that exceed the unemployed
individual's prior benefit level; and
``(H) other innovative activities which use a strategy that
is different from the reemployment strategies described above
and which are designed to facilitate the reemployment of
individuals receiving emergency unemployment compensation.
``(d) The Secretary shall, in the case of any State for
which an application is submitted under subsection (b)--
``(1) notify the State as to whether such application has
been approved or denied within 30 days after receipt of a
complete application; and
``(2) provide public notice of the decision within 10 days
after providing notification to the State in accordance with
paragraph (1).
Public notice under paragraph (2) may be provided through the
Internet or other appropriate means. Any application under
this section that has not been denied within such 30 days
shall be deemed approved, and public notice of any approval
under this sentence shall be provided within 10 days
thereafter.
``(e) The Secretary may terminate a demonstration project
under this section if the Secretary determines that the State
has violated the substantive terms or conditions of the
project.
``(f) Authority to carry out a demonstration project under
this section shall terminate with respect to any State after
compensation under this title ceases to be payable with
respect to such State.''.
SEC. 2164. PROMOTING PROGRAM INTEGRITY THROUGH BETTER
RECOVERY OF OVERPAYMENTS.
Section 4005(c)(1) of the Supplemental Appropriations Act,
2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(1) by striking ``may'' and inserting ``shall'';
(2) by striking ``exceed'' and inserting ``be less than'';
and
(3) by striking ``made.'' and inserting ``made, unless the
amount to be repaid is less than 50 percent of the weekly
benefit amount.''.
SEC. 2165. RESTORE STATE FLEXIBILITY TO IMPROVE UNEMPLOYMENT
PROGRAM SOLVENCY.
Subsection (g) of section 4001 of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is repealed.
Subtitle C--Medicare Extensions; Other Health Provisions
PART 1--MEDICARE EXTENSIONS
SEC. 2201. PHYSICIAN PAYMENT UPDATE.
(a) In General.--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:
``(13) Update for 2012 and 2013.--
``(A) In general.--Subject to paragraphs (7)(B), (8)(B),
(9)(B), (10)(B), (11)(B), and (12)(B), in lieu of the update
to the single conversion factor established in paragraph
(1)(C) that would otherwise apply for 2012 and for 2013, the
update to the single conversion factor shall be 1.0 percent
for the year.
``(B) No effect on computation of conversion factor for
2014 and subsequent years.--The conversion factor under this
subsection shall be computed under paragraph (1)(A) for 2014
and subsequent years as if subparagraph (A) had never
applied.''.
(b) Mandated Studies on Physician Payment Reform.--
(1) Study by secretary on options for bundled or episode-
based payment.--
(A) In general.--The Secretary of Health and Human Services
shall conduct a study that examines options for bundled or
episode-based payments, to cover physicians' services
currently paid under the physician fee schedule under section
1848 of the Social Security Act (42 U.S.C. 1395w-4), for one
or more prevalent chronic conditions (such as cancer,
diabetes, and congestive heart failure) or episodes of care
for one or more major procedures (such as medical device
implantation). In conducting the study the Secretary shall
consult with medical professional societies and other
relevant stakeholders. The study shall include an examination
of related private payer payment initiatives.
(B) Report.--Not later than January 1, 2013, the Secretary
shall submit to the Committees on Ways and Means and Energy
and Commerce of the House of Representatives and the
Committee on Finance in the Senate a report on the study
conducted under this paragraph. The Secretary shall include
in the report recommendations on suitable alternative payment
options for services paid under such fee schedule and on
associated implementation requirements (such as timelines,
operational issues, and interactions with other payment
reform initiatives).
(2) GAO study of private payer initiatives.--
(A) In general.--The Comptroller General of the United
States shall conduct a study that examines initiatives of
private entities offering or administering health insurance
coverage, group health plans, or other private health benefit
plans to base or adjust physician payment rates under such
coverage or plans for performance on quality and efficiency
as well as demonstration of care delivery improvement
activities (such as adherence to evidence based guidelines
and patient shared decision making programs). In conducting
such study, the Comptroller General shall consult, to the
extent appropriate, with medical professional societies and
other relevant stakeholders.
(B) Report.--Not later than January 1, 2013, the
Comptroller General shall submit to the Committees on Ways
and Means and Energy and Commerce of the House of
Representatives and the Committee on Finance in the Senate a
report on the study conducted under this paragraph. Such
report shall include an assessment of applicability of the
payer initiatives described in subparagraph (A) to the
Medicare program and recommendations on modifications to
existing Medicare performance-based payment initiatives.
(3) MedPAC study of aligning payment incentives.--Not later
than March 1, 2013, the Medicare Payment Advisory Commission
shall conduct a study, and submit to the Committees on Ways
and Means and Energy and Commerce of the House of
Representatives and the Committee on Finance in the Senate a
report, that examines the feasibility of aligning private
payer quality and efficiency programs with those in the
Medicare program. In conducting such study, the Medicare
Payment Advisory Commission shall consult with medical
professional societies and other relevant stakeholders. Such
report shall include recommendations on how to achieve such
alignment.
[[Page H8770]]
(4) Collaboration.--The Secretary, Comptroller General, and
Commission may collaborate to the extent beneficial in
conducting their respective studies and submitting their
respective reports under this subsection.
(c) Study and Review of Measures To Improve Physician
Payments, Health Outcomes, and Efficiency.--During the 112th
Congress, the Committees on Energy and Commerce and Ways and
Means of the House of Representatives and the Committee on
Finance in the Senate shall each study and review value-based
measures and practice arrangements which may improve health
outcomes and efficiency in the Medicare program to the end of
replacing the Medicare sustainable growth rate in a fiscally
responsible manner and establishing a sustainable payment
system. In conducting such study and review, the committees
shall solicit comments from stakeholder physician groups,
including State medical associations.
SEC. 2202. AMBULANCE ADD-ONS.
(a) Ground Ambulance.--Section 1834(l)(13)(A) of the Social
Security Act (42 U.S.C. 1395m(l)(13)(A)), as amended by
section 106(a) of the Medicare and Medicaid Extenders Act of
2010 (Public Law 111-309), is amended--
(1) in the matter preceding clause (i), by striking
``2012'' and inserting ``2013''; and
(2) in each of clauses (i) and (ii), by striking ``2012''
and inserting ``2013'' each place it appears.
(b) Super Rural Ambulance.--Section 1834(l)(12)(A) of the
Social Security Act (42 U.S.C. 1395m(l)(12)(A)), as amended
by section 106(c) of the Medicare and Medicaid Extenders Act
of 2010 (Public Law 111-309), is amended in the first
sentence by striking ``2012'' and inserting ``2013''.
(c) GAO Report Update.--Not later than October 1, 2012, the
Comptroller General of the United States shall update the GAO
report GAO-07-383 (relating to Ambulance Providers: Costs and
Expected Medicare Margins Vary Greatly) to reflect current
costs for ambulance providers.
(d) MedPAC Report.--The Medicare Payment Advisory
Commission shall conduct a study of--
(1) the appropriateness of the add-on payments for
ambulance providers under paragraphs (12)(A) and (13)(A) of
section 1834(l) of the Social Security Act (42 U.S.C.
1395m(l));
(2) the effect these additional payments have on the
Medicare margins of ambulance providers; and
(3) whether there is a need to reform the Medicare
ambulance fee schedule under such section and, if so, what
should such reforms be, including rolling the add-on payments
into the base rate.
Not later than July 1, 2012, the Commission shall submit to
the Committees on Ways and Means and Energy and Commerce of
the House of Representatives and the Committee on Finance of
the Senate a report on such study and shall include in the
report such recommendations as the Commission deems
appropriate.
(e) Effective Date.--The amendments made by subsections (a)
and (b) shall apply to ambulance services furnished on or
after January 1, 2012.
SEC. 2203. MEDICARE PAYMENT FOR OUTPATIENT THERAPY SERVICES.
(a) Application of Additional Requirements.--Section
1833(g)(5) of the Social Security Act (42 U.S.C. 1395l(g)(5))
is amended--
(1) by inserting ``(A)'' after ``(5)'';
(2) by striking ``December 31, 2011'' and inserting
``December 31, 2013'';
(3) in the first sentence, by inserting ``and if the
requirement of subparagraph (B) is met'' after ``medically
necessary'';
(4) in the second sentence, by inserting ``made in
accordance with such requirement'' after ``receipt of the
request''; and
(5) by adding at the end the following new subparagraphs:
``(B) In the case of outpatient therapy services for which
an exception is requested under the first sentence of
subparagraph (A), the claim for such services contains an
appropriate modifier (such as the KX modifier used as of the
date of the enactment of this subparagraph) indicating that
such services are medically necessary as justified by
appropriate documentation in the medical record involved.
``(C)(i) In applying this paragraph with respect to a
request for an exception with respect to expenses that would
be incurred for outpatient therapy services (including
services described in subsection (a)(8)(B)) that would exceed
the threshold described in clause (ii) for a year, the
request for such an exception, for services furnished on or
after July 1, 2012, shall be subject to a manual medical
review process that is similar to the manual medical review
process used for certain exceptions under this paragraph in
2006.
``(ii) The threshold under this clause for a year is
$3,700. Such threshold shall be applied separately--
``(I) for physical therapy services and speech-language
pathology services; and
``(II) for occupational therapy services.''.
(b) Application of Therapy Cap to Therapy Furnished as Part
of Hospital Outpatient Services.--Paragraphs (1) and (3) of
section 1833(g) of such Act are each amended by striking
``but not described in section 1833(a)(8)(B)'' and inserting
``but (with respect to services furnished before July 1,
2012) not described in subsection (a)(8)(B)''.
(c) Requirement for Inclusion on Claims of NPI of Physician
Who Reviews Therapy Plan.--Section 1842(t) of such Act (42
U.S.C. 1395u(t)) is amended--
(1) by inserting ``(1)'' after ``(t)''; and
(2) by adding at the end the following new paragraph:
``(2) Each request for payment, or bill submitted, for
therapy services described in paragraph (1) or (3) of section
1833(g) furnished on or after July 1, 2012, for which payment
may be made under this part shall include the national
provider identifier of the physician who periodically reviews
the plan for such services under section 1861(p)(2).''.
(d) Implementation.--The Secretary of Health and Human
Services shall implement such claims processing edits and
issue such guidance as may be necessary to implement the
amendments made by this section in a timely manner.
Notwithstanding any other provision of law, the Secretary may
implement the amendments made by this section by program
instruction. Of the amount of funds made available to the
Secretary for fiscal year 2012 for program management for the
Centers for Medicare & Medicaid Services, not to exceed
$7,500,000 shall be available for such fiscal year to carry
out section 1833(g)(5)(C) of the Social Security Act
(relating to manual medical review), as added by subsection
(a). Of the amount of funds made available to the Secretary
for fiscal year 2013 for such program management, not to
exceed $7,500,000 shall be available for such fiscal year to
carry out such section.
(e) Effective Date.--The amendments made by subsection (a)
shall apply to services furnished on or after January 1,
2012.
(f) MedPAC Report on Improved Medicare Therapy Benefits.--
Not later than March 1, 2013, the Medicare Payment Advisory
Commission shall submit to the Committees on Energy and
Commerce and Ways and Means of the House of Representatives
and to the Committee on Finance of the Senate a report making
recommendations on how to improve the outpatient therapy
benefit under part B of title XVIII of the Social Security
Act. The report shall include recommendations on how to
reform the payment system for such outpatient therapy
services under such part so that the benefit is better
designed to reflect individual acuity, condition, and therapy
needs of the patient. Such report shall include an
examination of private sector initiatives relating to
outpatient therapy benefits.
(g) Collection of Additional Data.--
(1) Strategy.--The Secretary of Health and Human Services
shall implement, beginning on January 1, 2013, a claims-based
data collection strategy that is designed to assist in
reforming the Medicare payment system for outpatient therapy
services subject to the limitations of section 1833(g) of the
Social Security Act. Such strategy shall be designed to
provide for the collection of data on patient function during
the course of therapy services in order to better understand
patient condition and outcomes.
(2) Consultation.--In proposing and implementing such
strategy, the Secretary shall consult with relevant
stakeholders.
(h) GAO Report on Manual Medical Review Process
Implementation.--Not later than May 1, 2013, the Comptroller
General of the United States shall submit to the Committees
on Energy and Commerce and Ways and Means of the House of
Representatives and to the Committee on Finance of the Senate
a report on the implementation of the manual medical review
process referred to in section 1833(g)(5)(C) of the Social
Security Act. Such report shall include aggregate data on the
number of individuals and claims subject to such process, the
number of reviews conducted under such process, and the
outcome of such reviews.
SEC. 2204. WORK GEOGRAPHIC ADJUSTMENT.
(a) In General.--Section 1848(e)(1)(E) of the Social
Security Act (42 U.S.C. 1395w-4(e)(1)(E)) is amended by
striking ``January 1, 2012'' and inserting ``January 1,
2013''.
(b) Report.--Not later than June 1, 2012, the Medicare
Payment Advisory Commission shall submit to the Committees on
Ways and Means and Energy and Commerce of the House of
Representatives and the Committee on Finance of the Senate a
report that assesses whether any geographic adjustment is
needed under section 1848 of the Social Security Act (42
U.S.C. 1395w-4) to distinguish the difference in work effort
by geographic area and, if so, what that level should be and
where it should be applied. The report shall also assess the
impact of the work geographic adjustment under such section,
including the extent to which the floor impacts access to
care.
PART 2--OTHER HEALTH PROVISIONS
SEC. 2211. 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 2011'' and inserting ``December 2012''.
(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 (O);
(B) in subparagraph (P), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following new subparagraphs:
``(Q) for the period that begins on January 1, 2012, and
ends on September 30, 2012, the total allocation amount is
$450,000,000; and
``(R) for the period that begins on October 1, 2012, and
ends on December 31, 2012, the total allocation amount is
$280,000,000.''; and
(2) in paragraph (3), in the matter preceding subparagraph
(A), by striking ``or (P)'' and inserting ``(P), or (R)''.
SEC. 2212. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE
(TMA).
(a) Extension.--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, 2011'' and
inserting ``December 31, 2012''.
(b) Extending Application of Termination of Eligibility
Based on Income to Initial Extension Period.--
[[Page H8771]]
(1) Income reporting requirements.--Subsection (b)(2)(B)(i)
of section 1925 of such Act (42 U.S.C. 1396r-6) is amended--
(A) by striking ``additional extended assistance under this
subsection'' and inserting ``continued extended assistance
under subsection (a)''; and
(B) by inserting ``(and, in the case of a State that makes
an election under subsection (a)(5), the 7th month and the
11th month)'' after ``4th month''.
(2) Termination.--Subsection (a)(3) of such section is
amended--
(A) in subparagraph (B)--
(i) by inserting ``or (D)'' after ``subparagraph (A)''; and
(ii) by striking the period at the end and inserting the
following: ``, which notice shall include (in the case of
termination under subparagraph (D)(ii), relating to no
continued earnings) a description of how the family may
reestablish eligibility for medical assistance under the
State plan. No termination shall be effective under
subparagraph (D) earlier than 10 days after the date of
mailing of such notice.'';
(B) in subparagraph (C)--
(i) by designating the matter beginning with ``With respect
to'' as a clause (i) with the heading ``Dependent children.--
'' and appropriate indentation; and
(ii) by adding at the end the following new clause:
``(ii) Medically needy.--With respect to an individual who
would cease to receive medical assistance because of
subparagraph (D) but who may be eligible for assistance under
the State plan because the individual is within a category of
person for which medical assistance under the State plan is
available under section 1902(a)(10)(C) (relating to medically
needy individuals), the State may not discontinue such
assistance under such subparagraph until the State has
determined that the individual is not eligible for assistance
under the plan.''; and
(C) by adding at the end the following new subparagraph:
``(D) Quarterly income reporting and test.--Subject to
subparagraphs (B) and (C), extension of assistance during the
6-month period described in paragraph (1) to a family shall
terminate (during the period) at the close of the 4th month
of the 6-month period (or 4th, 7th, or 11th month in case of
a State that makes an election under paragraph (5)) if--
``(i) the family fails to report to the State, by the 21st
day of such month, the information required under subsection
(b)(2)(B)(i), unless the family has established, to the
satisfaction of the State, good cause for the failure to
report on a timely basis;
``(ii) the caretaker relative had no earnings in one or
more of the previous 3 months, unless such lack of any
earnings was due to an involuntary loss of employment,
illness, or other good cause, established to the satisfaction
of the State; or
``(iii) the State determines that the family's average
gross monthly earnings (less such costs for such child care
as is necessary for the employment of the caretaker relative)
during the immediately preceding 3-month period exceed 185
percent of the official poverty line (as defined by the
Office of Management and Budget, and revised annually in
accordance with section 673(2) of the Omnibus Budget
Reconciliation Act of 1981) applicable to a family of the
size involved.
Information described in clause (i) shall be subject to the
restrictions on use and disclosure of information provided
under section 402(a)(9). Instead of terminating a family's
extension under clause (i), a State, at its option, may
provide for suspension of the extension until the month after
the month in which the family reports information required
under subsection (b)(2)(B)(i), but only if the family's
extension has not otherwise been terminated under clause (ii)
or (iii). The State shall make determinations under clause
(iii) for a family each time a report under subsection
(b)(2)(B)(i) for the family is received.''.
(3) Effective date.--
(A) In general.--The amendments made by this subsection
shall, subject to subparagraph (B), apply to assistance
furnished for months beginning with January 2012.
(B) Transition for current beneficiaries.--
(i) In general.--Subject to clause (ii), such amendments
shall not apply to any individual who is receiving extended
assistance under subsection (a) of section 1925 of the Social
Security Act for December 2011 during the period of
assistance that includes such month.
(ii) Special rule for individuals eligible for 12 months
extended assistance.--In the case of a State that makes an
election under paragraph (5) of such section, such amendments
shall apply to an individual who is receiving such extended
assistance for such month if such month is within the first 6
months of the 12-month period referred to in such paragraph
but only with respect to the second 6 months of such 12-month
period.
SEC. 2213. MODIFICATION TO REQUIREMENTS FOR QUALIFYING FOR
EXCEPTION TO MEDICARE PROHIBITION ON CERTAIN
PHYSICIAN REFERRALS FOR HOSPITALS.
(a) In General.--Section 1877(i) of the Social Security Act
(42 U.S.C. 1395nn(i)) is amended--
(1) in paragraph (1)(A)--
(A) in the matter preceding clause (i), by striking
``had'';
(B) in clause (i), by inserting ``had'' before ``physician
ownership''; and
(C) by amending clause (ii) to read as follows:
``(ii) either--
``(I) had a provider agreement under section 1866 in effect
on such date; or
``(II) was under construction on such date.''; and
(2) in paragraph (3)--
(A) by amending subparagraph (E) to read as follows:
``(E) Applicable hospital.--In this paragraph, the term
`applicable hospital' means a hospital that does not
discriminate against beneficiaries of Federal health care
programs and does not permit physicians practicing at the
hospital to discriminate against such beneficiaries.''; and
(B) in subparagraph (F)(iii), by striking ``subparagraph
(E)(iii)'' and inserting ``subparagraph (E)''.
(b) Effective Date.--The amendments made by subsection (a)
shall be effective as if as if included in the enactment of
subsection (i) of section 1877 of the Social Security Act (42
U.S.C. 1395nn).
PART 3--OFFSETS
SEC. 2221. ADJUSTMENTS TO MAXIMUM THRESHOLDS FOR RECAPTURING
OVERPAYMENTS RESULTING FROM CERTAIN FEDERALLY-
SUBSIDIZED HEALTH INSURANCE.
The table specified in clause (i) of section 36B(f)(2)(B)
of the Internal Revenue Code of 1986 is amended to read as
follows:
----------------------------------------------------------------------------------------------------------------
``If the household income (expressed as a percent of
poverty line) is: The applicable dollar amount is:
----------------------------------------------------------------------------------------------------------------
Less than 100 percent $600
At least 100 percent and less than 150 percent $800
At least 150 percent but less than 200 percent $1,000
At least 200 percent but less than 250 percent $1,500
At least 250 percent but less than 300 percent $2,200
At least 300 percent but less than 350 percent $2,500
At least 350 percent but less than 400 percent $3,200.''.
----------------------------------------------------------------------------------------------------------------
SEC. 2222. PREVENTION AND PUBLIC HEALTH FUND.
Section 4002(b) of the Patient Protection and Affordable
Care Act (42 U.S.C. 300u-11(b)) is amended--
(1) in paragraph (3), by adding at the end ``and''; and
(2) by striking each of paragraphs (4) through (6) and
inserting the following:
``(4) for fiscal year 2013 and each subsequent fiscal year,
$640,000,000.''.
SEC. 2223. PARITY IN MEDICARE PAYMENTS FOR HOSPITAL
OUTPATIENT DEPARTMENT EVALUATION AND MANAGEMENT
OFFICE VISIT SERVICES.
Section 1833(t) of the Social Security Act (42 U.S.C.
1395l(t)) is amended--
(1) in paragraph (3)--
(A) in subparagraph (D), by striking ``The Secretary'' and
inserting ``Subject to subparagraph (H), the Secretary''; and
(B) by adding at the end the following new subparagraph:
``(H) Parity in fee schedule amount for specified
evaluation and management services.--
``(i) In general.--In the case of covered OPD services that
are specified evaluation and management services furnished
during 2012 or a subsequent year, there shall be substituted
for the medicare OPD fee schedule amount established under
subparagraph (D) for such services and year, before
application of any geographic or other adjustment, an amount
equal to the product of the conversion factor established
under section 1848(d) for such year and the amount by which--
``(I) the non-facility practice expense relative value
units under the fee schedule under section 1848 for such year
for physicians' services that are such specified evaluation
and management services; exceeds
``(II) the facility practice expense relative value unit
under such fee schedule for such year and services.
``(ii) Budget neutrality.--In determining the adjustments
under paragraph (9)(B) for 2012 or a subsequent year, the
Secretary shall not take into account under such paragraph or
paragraph (2)(E) any changes in expenditures that result from
the application of this subparagraph.
``(iii) Specified evaluation and management services
defined.--For the purposes of this subparagraph, the term
`specified evaluation and management services' means the
HCPCS codes in the range 99201 through 99215 as of January 1,
2011 (and such codes as subsequently modified by the
Secretary).''; and
(2) in paragraph (9)(B), by striking ``If the Secretary''
and inserting ``Subject to paragraph (3)(H)(ii), if the
Secretary''.
SEC. 2224. REDUCTION OF BAD DEBT TREATED AS AN ALLOWABLE
COST.
(a) Hospitals.--Section 1861(v)(1)(T) of the Social
Security Act (42 U.S.C. 1395x(v)(1)(T)) is amended--
[[Page H8772]]
(1) in clause (iii), by striking ``and'' at the end;
(2) in clause (iv)--
(A) by striking ``a subsequent fiscal year'' and inserting
``fiscal years 2001 through 2012''; and
(B) by striking the period at the end and inserting ``,
and''; and
(3) by adding at the end the following:
``(v) for cost reporting periods beginning during fiscal
year 2013, by 35 percent of such amount otherwise allowable,
``(vi) for cost reporting periods beginning during fiscal
year 2014, by 40 percent of such amount otherwise allowable,
and
``(vii) for cost reporting periods beginning during a
subsequent fiscal year, by 45 percent of such amount
otherwise allowable.''.
(b) Skilled Nursing Facilities.--Section 1861(v)(1)(V) of
such Act (42 U.S.C. 1395x(v)(1)(V)) is amended--
(1) in the matter preceding clause (i), by striking ``with
respect to cost reporting periods beginning on or after
October 1, 2005'' and inserting ``and (beginning with respect
to cost reporting periods beginning during fiscal year 2013)
for covered skilled nursing services described in section
1888(e)(2)(A) furnished by hospital providers of extended
care services (as described in section 1883)'';
(2) in clause (i), by striking ``reduced by'' and all that
follows through ``allowable; and'' and inserting the
following: ``reduced by--
``(I) for cost reporting periods beginning on or after
October 1, 2005, but before fiscal year 2013, 30 percent of
such amount otherwise allowable;
``(II) for cost reporting periods beginning during fiscal
year 2013, by 35 percent of such amount otherwise allowable;
``(III) for cost reporting periods beginning during fiscal
year 2014, by 40 percent of such amount otherwise allowable;
and
``(IV) for cost reporting periods beginning during a
subsequent fiscal year, by 45 percent of such amount
otherwise allowable; and''; and
(3) in clause (ii), by striking ``such section shall not be
reduced.'' and inserting ``such section--
``(I) for cost reporting periods beginning on or after
October 1, 2005, but before fiscal year 2013, shall not be
reduced;
``(II) for cost reporting periods beginning during fiscal
year 2013, shall be reduced by 15 percent of such amount
otherwise allowable;
``(III) for cost reporting periods beginning during fiscal
year 2014, shall be reduced by 30 percent of such amount
otherwise allowable; and
``(IV) for cost reporting periods beginning during a
subsequent fiscal year, shall be reduced by 45 percent of
such amount otherwise allowable.''.
(c) Certain Other Providers.--Section 1861(v)(1) of such
Act (42 U.S.C. 1395x(v)(1)) is amended by adding at the end
the following new subparagraph:
``(W)(i) In determining such reasonable costs for providers
described in clause (ii), the amount of bad debts otherwise
treated as allowable costs which are attributable to
deductibles and coinsurance amounts under this title shall be
reduced--
``(I) for cost reporting periods beginning during fiscal
year 2013, by 15 percent of such amount otherwise allowable;
``(II) for cost reporting periods beginning during fiscal
year 2014, by 30 percent of such amount otherwise allowable;
and
``(III) for cost reporting periods beginning during a
subsequent fiscal year, by 45 percent of such amount
otherwise allowable.
``(ii) A provider described in this clause is a provider of
services not described in subparagraph (T) or (V), a
supplier, or any other type of entity that receives payment
for bad debts under the authority under subparagraph (A).''.
(d) Conforming Amendment for Hospital Services.--Section
4008(c) of the Omnibus Budget Reconciliation Act of 1987, as
amended by section 8402 of the Technical and Miscellaneous
Revenue Act of 1988 and section 6023 of the Omnibus Budget
Reconciliation Act of 1989, is amended by adding at the end
the following new sentence: ``Effective for cost reporting
periods beginning on or after October 1, 2012, the provisions
of the previous two sentences shall not apply.''.
SEC. 2225. REBASING OF STATE DSH ALLOTMENTS FOR FISCAL YEAR
2021.
Section 1923(f) of the Social Security Act (42 U.S.C.
1396r-4(f)) is amended--
(1) by redesignating paragraph (8) as paragraph (9);
(2) in paragraph (3)(A) by striking ``paragraphs (6) and
(7)'' and inserting ``paragraphs (6), (7), and (8)''; and
(3) by inserting after paragraph (7) the following new
paragraph:
``(8) Rebasing of state dsh allotments for fiscal year
2021.--With respect to fiscal 2021 and each subsequent fiscal
year, for purposes of applying paragraph (3)(A) to determine
the DSH allotment for a State, the amount of the DSH
allotment for the State under paragraph (3) for fiscal year
2020 shall be treated as if it were such amount as reduced
under paragraph (7).''.
Subtitle D--TANF Extension
SEC. 2301. SHORT TITLE.
This subtitle may be cited as the ``Welfare Integrity and
Data Improvement Act''.
SEC. 2302. EXTENSION OF PROGRAM.
(a) Family Assistance Grants.--Section 403(a)(1) of the
Social Security Act (42 U.S.C. 603(a)(1)) is amended--
(1) in subparagraph (A), by striking ``each of fiscal years
1996'' and all that follows through ``2003'' and inserting
``fiscal year 2012'';
(2) in subparagraph (B)--
(A) by inserting ``(as in effect just before the enactment
of the Welfare Integrity and Data Improvement Act)'' after
``this paragraph'' the 1st place it appears; and
(B) by inserting ``(as so in effect)'' after ``this
paragraph'' the 2nd place it appears; and
(3) in subparagraph (C), by striking ``2003'' and inserting
``2012''.
(b) Healthy Marriage Promotion and Responsible Fatherhood
Grants.--Section 403(a)(2)(D) of such Act (42 U.S.C.
603(a)(2)(D)) is amended by striking ``2011'' and inserting
``2012''.
(c) Maintenance of Effort Requirement.--Section 409(a)(7)
of such Act (42 U.S.C. 609(a)(7)) is amended--
(1) in subparagraph (A), by striking ``fiscal year'' and
all that follows through ``2012'' and inserting ``a fiscal
year''; and
(2) in subparagraph (B)(ii)--
(A) by striking ``for fiscal years 1997 through 2011,'';
and
(B) by striking ``407(a) for the fiscal year,'' and
inserting ``407(a),''.
(d) Tribal Grants.--Section 412(a) of such Act (42 U.S.C.
612(a)) is amended in each of paragraphs (1)(A) and (2)(A) by
striking ``each of fiscal years 1997'' and all that follows
through ``2003'' and inserting ``fiscal year 2012''.
(e) Studies and Demonstrations.--Section 413(h)(1) of such
Act (42 U.S.C. 613(h)(1)) is amended by striking ``each of
fiscal years 1997 through 2002'' and inserting ``fiscal year
2012''.
(f) Census Bureau Study.--Section 414(b) of such Act (42
U.S.C. 614(b)) is amended by striking ``each of fiscal years
1996'' and all that follows through ``2003'' and inserting
``fiscal year 2012''.
(g) Child Care Entitlement.--Section 418(a)(3) of such Act
(42 U.S.C. 618(a)(3)) is amended by striking ``appropriated''
and all that follows and inserting ``appropriated
$2,917,000,000 for fiscal year 2012.''.
(h) Grants to Territories.--Section 1108(b)(2) of such Act
(42 U.S.C. 1308(b)(2)) is amended by striking ``for fiscal
years 1997 through 2003'' and inserting ``fiscal year 2012''.
(i) Prevention of Duplicate Appropriations for Fiscal Year
2012.--Expenditures made pursuant to the Short-Term TANF
Extension Act (Public Law 112-35) or section 403(b) of the
Social Security Act for fiscal year 2012 shall be charged to
the applicable appropriation or authorization provided by the
amendments made by this section for such fiscal year.
(j) Effective Date.--This section and the amendments made
by this section shall take effect on the date of the
enactment of this Act.
SEC. 2303. DATA STANDARDIZATION.
(a) In General.--Section 411 of the Social Security Act (42
U.S.C. 611) is amended by adding at the end the following:
``(d) Data Standardization.--
``(1) Standard data elements.--
``(A) Designation.--The Secretary, in consultation with an
interagency work group which shall be established by the
Office of Management and Budget, and considering State and
tribal perspectives, shall, by rule, designate standard data
elements for any category of information required to be
reported under this part.
``(B) Requirements.--In designating the standard data
elements, the Secretary shall, to the extent practicable--
``(i) ensure that the data elements are nonproprietary and
interoperable;
``(ii) incorporate interoperable standards developed and
maintained by an international voluntary consensus standards
body, as defined by the Office of Management and Budget, such
as the International Organization for Standardization;
``(iii) incorporate interoperable standards developed and
maintained by intergovernmental partnerships, such as the
National Information Exchange Model; and
``(iv) incorporate interoperable standards developed and
maintained by Federal entities with authority over
contracting and financial assistance, such as the Federal
Acquisition Regulatory Council.
``(2) Data reporting standards.--
``(A) Designation.--The Secretary, in consultation with an
interagency work group established by the Office of
Management and Budget, and considering State and tribal
perspectives, shall, by rule, designate standards to govern
the data reporting required under this part.
``(B) Requirements.--In designating the data reporting
standards, the Secretary shall, to the extent practicable,
incorporate existing nonproprietary standards, such as the
eXtensible Business Reporting Language. Such standards shall,
to the extent practicable--
``(i) incorporate a widely-accepted, nonproprietary,
searchable, computer-readable format;
``(ii) be consistent with and implement applicable
accounting principles; and
``(iii) be capable of being continually upgraded as
necessary.''.
(b) Applicability.--The amendments made by this subsection
shall apply with respect to information required to be
reported on or after October 1, 2012.
SEC. 2304. SPENDING POLICIES FOR ASSISTANCE UNDER STATE TANF
PROGRAMS.
(a) State Requirement.--Section 408(a) of the Social
Security Act (42 U.S.C. 608(a)) is amended by adding at the
end the following:
``(12) State requirement to prevent unauthorized spending
of benefits.--
``(A) In general.--A State to which a grant is made under
section 403 shall maintain policies and practices as
necessary to prevent assistance provided under the State
program funded under this part from being used in any
transaction in--
``(i) any liquor store;
``(ii) any casino, gambling casino, or gaming
establishment; or
``(iii) any retail establishment which provides adult-
oriented entertainment in which performers disrobe or perform
in an unclothed state for entertainment.
``(B) Definitions.--For purposes of subparagraph (A)--
[[Page H8773]]
``(i) Liquor store.--The term `liquor store' means any
retail establishment which sells exclusively or primarily
intoxicating liquor. Such term does not include a grocery
store which sells both intoxicating liquor and groceries
including staple foods (within the meaning of section 3(r) of
the Food and Nutrition Act of 2008 (7 U.S.C. 2012(r))).
``(ii) Casino, gambling casino, or gaming establishment.--
The terms `casino', `gambling casino', and `gaming
establishment' do not include a grocery store which sells
groceries including such staple foods and which also offers,
or is located within the same building or complex as, casino,
gambling, or gaming activities.''.
(b) Penalty.--Section 409(a) of such Act (42 U.S.C. 609(a))
is amended by adding at the end the following:
``(16) Penalty for failure to enforce spending policies.--
``(A) In general.--If, within 2 years after the date of the
enactment of this paragraph, any State has not reported to
the Secretary on such State's implementation of the policies
and practices required by section 408(a)(12), or the
Secretary determines that any State has not implemented and
maintained such policies and practices, the Secretary shall
reduce, by an amount equal to 5 percent of the State family
assistance grant, the grant payable to such State under
section 403(a)(1) for--
``(i) the fiscal year immediately succeeding the year in
which such 2-year period ends; and
``(ii) each succeeding fiscal year in which the State does
not demonstrate that such State has implemented and
maintained such policies and practices.
``(B) Reduction of applicable penalty.--The Secretary may
reduce the amount of the reduction required under
subparagraph (A) based on the degree of noncompliance of the
State.
``(C) State not responsible for individual violations.--
Fraudulent activity by any individual in an attempt to
circumvent the policies and practices required by section
408(a)(12) shall not trigger a State penalty under
subparagraph (A).''.
(c) Conforming Amendment.--Section 409(c)(4) of such Act
(42 U.S.C. 609(c)(4)) is amended by striking ``or (13)'' and
inserting ``(13), or (16)''.
SEC. 2305. TECHNICAL CORRECTIONS.
(a) Section 404(d)(1)(A) of the Social Security Act (42
U.S.C. 604(d)(1)(A)) is amended by striking ``subtitle 1 of
Title'' and inserting ``Subtitle A of title''.
(b) Sections 407(c)(2)(A)(i) and 409(a)(3)(C) of such Act
(42 U.S.C. 607(c)(2)(A)(i) and 609(a)(3)(C)) are each amended
by striking ``403(b)(6)'' and inserting ``403(b)(5)''.
(c) Section 409(a)(2)(A) of such Act (42 U.S.C.
609(a)(2)(A)) is amended by moving clauses (i) and (ii) 2 ems
to the right.
(d) Section 409(c)(2) of such Act (42 U.S.C. 609(c)(2)) is
amended by inserting a comma after ``appropriate''.
(e) Section 411(a)(1)(A)(ii)(III) of such Act (42 U.S.C.
611(a)(1)(A)(ii)(III)) is amended by striking the last close
parenthesis.
TITLE III--FLOOD INSURANCE REFORM
SEC. 3001. SHORT TITLE.
This title may be cited as the ``Flood Insurance Reform Act
of 2011''.
SEC. 3002. EXTENSIONS.
(a) Extension of Program.--Section 1319 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4026) is amended by
striking ``September 30, 2011'' and inserting ``September 30,
2016''.
(b) Extension of Financing.--Section 1309(a) of such Act
(42 U.S.C. 4016(a)) is amended by striking ``September 30,
2011'' and inserting ``September 30, 2016''.
SEC. 3003. MANDATORY PURCHASE.
(a) Authority To Temporarily Suspend Mandatory Purchase
Requirement.--
(1) In general.--Section 102 of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a) is amended by adding
at the end the following new subsection:
``(i) Authority To Temporarily Suspend Mandatory Purchase
Requirement.--
``(1) Finding by administrator that area is an eligible
area.--For any area, upon a request submitted to the
Administrator by a local government authority having
jurisdiction over any portion of the area, the Administrator
shall make a finding of whether the area is an eligible area
under paragraph (3). If the Administrator finds that such
area is an eligible area, the Administrator shall, in the
discretion of the Administrator, designate a period during
which such finding shall be effective, which shall not be
longer in duration than 12 months.
``(2) Suspension of mandatory purchase requirement.--If the
Administrator makes a finding under paragraph (1) that an
area is an eligible area under paragraph (3), during the
period specified in the finding, the designation of such
eligible area as an area having special flood hazards shall
not be effective for purposes of subsections (a), (b), and
(e) of this section, and section 202(a) of this Act. Nothing
in this paragraph may be construed to prevent any lender,
servicer, regulated lending institution, Federal agency
lender, the Federal National Mortgage Association, or the
Federal Home Loan Mortgage Corporation, at the discretion of
such entity, from requiring the purchase of flood insurance
coverage in connection with the making, increasing,
extending, or renewing of a loan secured by improved real
estate or a mobile home located or to be located in such
eligible area during such period or a lender or servicer from
purchasing coverage on behalf of a borrower pursuant to
subsection (e).
``(3) Eligible areas.--An eligible area under this
paragraph is an area that is designated or will, pursuant to
any issuance, revision, updating, or other change in flood
insurance maps that takes effect on or after the date of the
enactment of the Flood Insurance Reform Act of 2011, become
designated as an area having special flood hazards and that
meets any one of the following 3 requirements:
``(A) Areas with no history of special flood hazards.--The
area does not include any area that has ever previously been
designated as an area having special flood hazards.
``(B) Areas with flood protection systems under
improvements.--The area was intended to be protected by a
flood protection system--
``(i) that has been decertified, or is required to be
certified, as providing protection for the 100-year frequency
flood standard;
``(ii) that is being improved, constructed, or
reconstructed; and
``(iii) for which the Administrator has determined
measurable progress toward completion of such improvement,
construction, reconstruction is being made and toward
securing financial commitments sufficient to fund such
completion.
``(C) Areas for which appeal has been filed.--An area for
which a community has appealed designation of the area as
having special flood hazards in a timely manner under section
1363.
``(4) Extension of delay.--Upon a request submitted by a
local government authority having jurisdiction over any
portion of the eligible area, the Administrator may extend
the period during which a finding under paragraph (1) shall
be effective, except that--
``(A) each such extension under this paragraph shall not be
for a period exceeding 12 months; and
``(B) for any area, the cumulative number of such
extensions may not exceed 2.
``(5) Additional extension for communities making more than
adequate progress on flood protection system.--
``(A) Extension.--
``(i) Authority.--Except as provided in subparagraph (B),
in the case of an eligible area for which the Administrator
has, pursuant to paragraph (4), extended the period of
effectiveness of the finding under paragraph (1) for the
area, upon a request submitted by a local government
authority having jurisdiction over any portion of the
eligible area, if the Administrator finds that more than
adequate progress has been made on the construction of a
flood protection system for such area, as determined in
accordance with the last sentence of section 1307(e) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4014(e)), the
Administrator may, in the discretion of the Administrator,
further extend the period during which the finding under
paragraph (1) shall be effective for such area for an
additional 12 months.
``(ii) Limit.--For any eligible area, the cumulative number
of extensions under this subparagraph may not exceed 2.
``(B) Exclusion for new mortgages.--
``(i) Exclusion.--Any extension under subparagraph (A) of
this paragraph of a finding under paragraph (1) shall not be
effective with respect to any excluded property after the
origination, increase, extension, or renewal of the loan
referred to in clause (ii)(II) for the property.
``(ii) Excluded properties.--For purposes of this
subparagraph, the term `excluded property' means any improved
real estate or mobile home--
``(I) that is located in an eligible area; and
``(II) for which, during the period that any extension
under subparagraph (A) of this paragraph of a finding under
paragraph (1) is otherwise in effect for the eligible area in
which such property is located--
``(aa) a loan that is secured by the property is
originated; or
``(bb) any existing loan that is secured by the property is
increased, extended, or renewed.
``(6) Rule of construction.--Nothing in this subsection may
be construed to affect the applicability of a designation of
any area as an area having special flood hazards for purposes
of the availability of flood insurance coverage, criteria for
land management and use, notification of flood hazards,
eligibility for mitigation assistance, or any other purpose
or provision not specifically referred to in paragraph (2).
``(7) Reports.--The Administrator shall, in each annual
report submitted pursuant to section 1320, include
information identifying each finding under paragraph (1) by
the Administrator during the preceding year that an area is
an area having special flood hazards, the basis for each such
finding, any extensions pursuant to paragraph (4) of the
periods of effectiveness of such findings, and the reasons
for such extensions.''.
(2) No refunds.--Nothing in this subsection or the
amendments made by this subsection may be construed to
authorize or require any payment or refund for flood
insurance coverage purchased for any property that covered
any period during which such coverage is not required for the
property pursuant to the applicability of the amendment made
by paragraph (1).
(b) Termination of Force-Placed Insurance.--Section 102(e)
of the Flood Disaster Protection Act of 1973 (42 U.S.C.
4012a(e)) is amended--
(1) in paragraph (2), by striking ``insurance.'' and
inserting ``insurance, including premiums or fees incurred
for coverage beginning on the date on which flood insurance
coverage lapsed or did not provide a sufficient coverage
amount.'';
(2) by redesignating paragraphs (3) and (4) as paragraphs
(5) and 6), respectively; and
(3) by inserting after paragraph (2) the following new
paragraphs:
``(3) Termination of force-placed insurance.--Within 30
days of receipt by the lender or servicer of a confirmation
of a borrower's existing flood insurance coverage, the lender
or servicer shall--
``(A) terminate the force-placed insurance; and
[[Page H8774]]
``(B) refund to the borrower all force-placed insurance
premiums paid by the borrower during any period during which
the borrower's flood insurance coverage and the force-placed
flood insurance coverage were each in effect, and any related
fees charged to the borrower with respect to the force-placed
insurance during such period.
``(4) Sufficiency of demonstration.--For purposes of
confirming a borrower's existing flood insurance coverage, a
lender or servicer for a loan shall accept from the borrower
an insurance policy declarations page that includes the
existing flood insurance policy number and the identity of,
and contact information for, the insurance company or
agent.''.
(c) Use of Private Insurance To Satisfy Mandatory Purchase
Requirement.--Section 102(b) of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a(b)) is amended--
(1) in paragraph (1)--
(A) by striking ``lending institutions not to make'' and
inserting ``lending institutions--
``(A) not to make'';
(B) in subparagraph (A), as designated by subparagraph (A)
of this paragraph, by striking ``less.'' and inserting
``less; and''; and
(C) by adding at the end the following new subparagraph:
``(B) to accept private flood insurance as satisfaction of
the flood insurance coverage requirement under subparagraph
(A) if the coverage provided by such private flood insurance
meets the requirements for coverage under such
subparagraph.'';
(2) in paragraph (2), by inserting after ``provided in
paragraph (1).'' the following new sentence: ``Each Federal
agency lender shall accept private flood insurance as
satisfaction of the flood insurance coverage requirement
under the preceding sentence if the flood insurance coverage
provided by such private flood insurance meets the
requirements for coverage under such sentence.'';
(3) in paragraph (3), in the matter following subparagraph
(B), by adding at the end the following new sentence: ``The
Federal National Mortgage Association and the Federal Home
Loan Mortgage Corporation shall accept private flood
insurance as satisfaction of the flood insurance coverage
requirement under the preceding sentence if the flood
insurance coverage provided by such private flood insurance
meets the requirements for coverage under such sentence.'';
and
(4) by adding at the end the following new paragraph:
``(5) Private flood insurance defined.--In this subsection,
the term `private flood insurance' means a contract for flood
insurance coverage allowed for sale under the laws of any
State.''.
SEC. 3004. REFORMS OF COVERAGE TERMS.
(a) Minimum Deductibles for Claims.--Section 1312 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4019) is
amended--
(1) by striking ``The Director is'' and inserting the
following: ``(a) In General.--The Administrator is''; and
(2) by adding at the end the following:
``(b) Minimum Annual Deductibles.--
``(1) Subsidized rate properties.--For any structure that
is covered by flood insurance under this title, and for which
the chargeable rate for such coverage is less than the
applicable estimated risk premium rate under section
1307(a)(1) for the area (or subdivision thereof) in which
such structure is located, the minimum annual deductible for
damage to or loss of such structure shall be $2,000.
``(2) Actuarial rate properties.--For any structure that is
covered by flood insurance under this title, for which the
chargeable rate for such coverage is not less than the
applicable estimated risk premium rate under section
1307(a)(1) for the area (or subdivision thereof) in which
such structure is located, the minimum annual deductible for
damage to or loss of such structure shall be $1,000.''.
(b) Clarification of Residential and Commercial Coverage
Limits.--Section 1306(b) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4013(b)) is amended--
(1) in paragraph (2)--
(A) by striking ``in the case of any residential property''
and inserting ``in the case of any residential building
designed for the occupancy of from one to four families'';
and
(B) by striking ``shall be made available to every insured
upon renewal and every applicant for insurance so as to
enable such insured or applicant to receive coverage up to a
total amount (including such limits specified in paragraph
(1)(A)(i)) of $250,000'' and inserting ``shall be made
available, with respect to any single such building, up to an
aggregate liability (including such limits specified in
paragraph (1)(A)(i)) of $250,000''; and
(2) in paragraph (4)--
(A) by striking ``in the case of any nonresidential
property, including churches,'' and inserting ``in the case
of any nonresidential building, including a church,''; and
(B) by striking ``shall be made available to every insured
upon renewal and every applicant for insurance, in respect to
any single structure, up to a total amount (including such
limit specified in subparagraph (B) or (C) of paragraph (1),
as applicable) of $500,000 for each structure and $500,000
for any contents related to each structure'' and inserting
``shall be made available with respect to any single such
building, up to an aggregate liability (including such limits
specified in subparagraph (B) or (C) of paragraph (1), as
applicable) of $500,000, and coverage shall be made available
up to a total of $500,000 aggregate liability for contents
owned by the building owner and $500,000 aggregate liability
for each unit within the building for contents owned by the
tenant''.
(c) Indexing of Maximum Coverage Limits.--Subsection (b) of
section 1306 of the National Flood Insurance Act of 1968 (42
U.S.C. 4013(b)) is amended--
(1) in paragraph (4), by striking ``and'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting ``; and'';
(3) by redesignating paragraph (5) as paragraph (7); and
(4) by adding at the end the following new paragraph:
``(8) each of the dollar amount limitations under
paragraphs (2), (3), (4), (5), and (6) shall be adjusted
effective on the date of the enactment of the Flood Insurance
Reform Act of 2011, such adjustments shall be calculated
using the percentage change, over the period beginning on
September 30, 1994, and ending on such date of enactment, in
such inflationary index as the Administrator shall, by
regulation, specify, and the dollar amount of such adjustment
shall be rounded to the next lower dollar; and the
Administrator shall cause to be published in the Federal
Register the adjustments under this paragraph to such dollar
amount limitations; except that in the case of coverage for a
property that is made available, pursuant to this paragraph,
in an amount that exceeds the limitation otherwise applicable
to such coverage as specified in paragraph (2), (3), (4),
(5), or (6), the total of such coverage shall be made
available only at chargeable rates that are not less than the
estimated premium rates for such coverage determined in
accordance with section 1307(a)(1).''.
(d) Optional Coverage for Loss of Use of Personal Residence
and Business Interruption.--Subsection (b) of section 1306 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4013(b)),
as amended by the preceding provisions of this section, is
further amended by inserting after paragraph (4) the
following new paragraphs:
``(5) the Administrator may provide that, in the case of
any residential property, each renewal or new contract for
flood insurance coverage may provide not more than $5,000
aggregate liability per dwelling unit for any necessary
increases in living expenses incurred by the insured when
losses from a flood make the residence unfit to live in,
except that--
``(A) purchase of such coverage shall be at the option of
the insured;
``(B) any such coverage shall be made available only at
chargeable rates that are not less than the estimated premium
rates for such coverage determined in accordance with section
1307(a)(1); and
``(C) the Administrator may make such coverage available
only if the Administrator makes a determination and causes
notice of such determination to be published in the Federal
Register that--
``(i) a competitive private insurance market for such
coverage does not exist; and
``(ii) the national flood insurance program has the
capacity to make such coverage available without borrowing
funds from the Secretary of the Treasury under section 1309
or otherwise;
``(6) the Administrator may provide that, in the case of
any commercial property or other residential property,
including multifamily rental property, coverage for losses
resulting from any partial or total interruption of the
insured's business caused by damage to, or loss of, such
property from a flood may be made available to every insured
upon renewal and every applicant, up to a total amount of
$20,000 per property, except that--
``(A) purchase of such coverage shall be at the option of
the insured;
``(B) any such coverage shall be made available only at
chargeable rates that are not less than the estimated premium
rates for such coverage determined in accordance with section
1307(a)(1); and
``(C) the Administrator may make such coverage available
only if the Administrator makes a determination and causes
notice of such determination to be published in the Federal
Register that--
``(i) a competitive private insurance market for such
coverage does not exist; and
``(ii) the national flood insurance program has the
capacity to make such coverage available without borrowing
funds from the Secretary of the Treasury under section 1309
or otherwise;''.
(e) Payment of Premiums in Installments for Residential
Properties.--Section 1306 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4013) is amended by adding at the end the
following new subsection:
``(d) Payment of Premiums in Installments for Residential
Properties.--
``(1) Authority.--In addition to any other terms and
conditions under subsection (a), such regulations shall
provide that, in the case of any residential property,
premiums for flood insurance coverage made available under
this title for such property may be paid in installments.
``(2) Limitations.--In implementing the authority under
paragraph (1), the Administrator may establish increased
chargeable premium rates and surcharges, and deny coverage
and establish such other sanctions, as the Administrator
considers necessary to ensure that insureds purchase, pay
for, and maintain coverage for the full term of a contract
for flood insurance coverage or to prevent insureds from
purchasing coverage only for periods during a year when risk
of flooding is comparatively higher or canceling coverage for
periods when such risk is comparatively lower.''.
(f) Effective Date of Policies Covering Properties Affected
by Floods in Progress.--Paragraph (1) of section 1306(c) of
the National Flood Insurance Act of 1968 (42 U.S.C. 4013(c))
is amended by adding after the period at the end the
following: ``With respect to any flood that has commenced or
is in progress before the expiration of such 30-day period,
such flood insurance coverage for a property shall take
effect upon the expiration of such 30-
[[Page H8775]]
day period and shall cover damage to such property occurring
after the expiration of such period that results from such
flood, but only if the property has not suffered damage or
loss as a result of such flood before the expiration of such
30-day period.''.
SEC. 3005. REFORMS OF PREMIUM RATES.
(a) Increase in Annual Limitation on Premium Increases.--
Section 1308(e) of the National Flood Insurance Act of 1968
(42 U.S.C. 4015(e)) is amended by striking ``10 percent'' and
inserting ``20 percent''.
(b) Phase-In of Rates for Certain Properties in Newly
Mapped Areas.--
(1) In general.--Section 1308 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015) is amended--
(A) in subsection (a), in the matter preceding paragraph
(1), by inserting ``or notice'' after ``prescribe by
regulation'';
(B) in subsection (c), by inserting ``and subsection (g)''
before the first comma; and
(C) by adding at the end the following new subsection:
``(g) 5-Year Phase-In of Flood Insurance Rates for Certain
Properties in Newly Mapped Areas.--
``(1) 5-year phase-in period.--Notwithstanding subsection
(c) or any other provision of law relating to chargeable risk
premium rates for flood insurance coverage under this title,
in the case of any area that was not previously designated as
an area having special flood hazards and that, pursuant to
any issuance, revision, updating, or other change in flood
insurance maps, becomes designated as such an area, during
the 5-year period that begins, except as provided in
paragraph (2), upon the date that such maps, as issued,
revised, updated, or otherwise changed, become effective, the
chargeable premium rate for flood insurance under this title
with respect to any covered property that is located within
such area shall be the rate described in paragraph (3).
``(2) Applicability to preferred risk rate areas.--In the
case of any area described in paragraph (1) that consists of
or includes an area that, as of date of the effectiveness of
the flood insurance maps for such area referred to in
paragraph (1) as so issued, revised, updated, or changed, is
eligible for any reason for preferred risk rate method
premiums for flood insurance coverage and was eligible for
such premiums as of the enactment of the Flood Insurance
Reform Act of 2011, the 5-year period referred to in
paragraph (1) for such area eligible for preferred risk rate
method premiums shall begin upon the expiration of the period
during which such area is eligible for such preferred risk
rate method premiums.
``(3) Phase-in of full actuarial rates.--With respect to
any area described in paragraph (1), the chargeable risk
premium rate for flood insurance under this title for a
covered property that is located in such area shall be--
``(A) for the first year of the 5-year period referred to
in paragraph (1), the greater of--
``(i) 20 percent of the chargeable risk premium rate
otherwise applicable under this title to the property; and
``(ii) in the case of any property that, as of the
beginning of such first year, is eligible for preferred risk
rate method premiums for flood insurance coverage, such
preferred risk rate method premium for the property;
``(B) for the second year of such 5-year period, 40 percent
of the chargeable risk premium rate otherwise applicable
under this title to the property;
``(C) for the third year of such 5-year period, 60 percent
of the chargeable risk premium rate otherwise applicable
under this title to the property;
``(D) for the fourth year of such 5-year period, 80 percent
of the chargeable risk premium rate otherwise applicable
under this title to the property; and
``(E) for the fifth year of such 5-year period, 100 percent
of the chargeable risk premium rate otherwise applicable
under this title to the property.
``(4) Covered properties.--For purposes of the subsection,
the term `covered property' means any residential property
occupied by its owner or a bona fide tenant as a primary
residence.''.
(2) Regulation or notice.--The Administrator of the Federal
Emergency Management Agency shall issue an interim final rule
or notice to implement this subsection and the amendments
made by this subsection as soon as practicable after the date
of the enactment of this Act.
(c) Phase-In of Actuarial Rates for Certain Properties.--
(1) In general.--Section 1308(c) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015(c)) is amended--
(A) by redesignating paragraph (2) as paragraph (7); and
(B) by inserting after paragraph (1) the following new
paragraphs:
``(2) Commercial properties.--Any nonresidential property.
``(3) Second homes and vacation homes.--Any residential
property that is not the primary residence of any individual.
``(4) Homes sold to new owners.--Any single family property
that--
``(A) has been constructed or substantially improved and
for which such construction or improvement was started, as
determined by the Administrator, before December 31, 1974, or
before the effective date of the initial rate map published
by the Administrator under paragraph (2) of section 1360(a)
for the area in which such property is located, whichever is
later; and
``(B) is purchased after the effective date of this
paragraph, pursuant to section 3005(c)(3)(A) of the Flood
Insurance Reform Act of 2011.
``(5) Homes damaged or improved.--Any property that, on or
after the date of the enactment of the Flood Insurance Reform
Act of 2011, has experienced or sustained--
``(A) substantial flood damage exceeding 50 percent of the
fair market value of such property; or
``(B) substantial improvement exceeding 30 percent of the
fair market value of such property.
``(6) Homes with multiple claims.--Any severe repetitive
loss property (as such term is defined in section
1366(j)).''.
(2) Technical amendments.--Section 1308 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended--
(A) in subsection (c)--
(i) in the matter preceding paragraph (1), by striking
``the limitations provided under paragraphs (1) and (2)'' and
inserting ``subsection (e)''; and
(ii) in paragraph (1), by striking ``, except'' and all
that follows through ``subsection (e)''; and
(B) in subsection (e), by striking ``paragraph (2) or (3)''
and inserting ``paragraph (7)''.
(3) Effective date and transition.--
(A) Effective date.--The amendments made by paragraphs (1)
and (2) shall apply beginning upon the expiration of the 12-
month period that begins on the date of the enactment of this
Act, except as provided in subparagraph (B) of this
paragraph.
(B) Transition for properties covered by flood insurance
upon effective date.--
(i) Increase of rates over time.--In the case of any
property described in paragraph (2), (3), (4), (5), or (6) of
section 1308(c) of the National Flood Insurance Act of 1968,
as amended by paragraph (1) of this subsection, that, as of
the effective date under subparagraph (A) of this paragraph,
is covered under a policy for flood insurance made available
under the national flood insurance program for which the
chargeable premium rates are less than the applicable
estimated risk premium rate under section 1307(a)(1) of such
Act for the area in which the property is located, the
Administrator of the Federal Emergency Management Agency
shall increase the chargeable premium rates for such property
over time to such applicable estimated risk premium rate
under section 1307(a)(1).
(ii) Amount of annual increase.--Such increase shall be
made by increasing the chargeable premium rates for the
property (after application of any increase in the premium
rates otherwise applicable to such property), once during the
12-month period that begins upon the effective date under
subparagraph (A) of this paragraph and once every 12 months
thereafter until such increase is accomplished, by 20 percent
(or such lesser amount as may be necessary so that the
chargeable rate does not exceed such applicable estimated
risk premium rate or to comply with clause (iii)).
(iii) Properties subject to phase-in and annual
increases.--In the case of any pre-FIRM property (as such
term is defined in section 578(b) of the National Flood
Insurance Reform Act of 1974), the aggregate increase, during
any 12-month period, in the chargeable premium rate for the
property that is attributable to this subparagraph or to an
increase described in section 1308(e) of the National Flood
Insurance Act of 1968 may not exceed 20 percent.
(iv) Full actuarial rates.--The provisions of paragraphs
(2), (3), (4), (5), and (6) of such section 1308(c) shall
apply to such a property upon the accomplishment of the
increase under this subparagraph and thereafter.
(d) Prohibition of Extension of Subsidized Rates to Lapsed
Policies.--Section 1308 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4015), as amended by the preceding
provisions of this title, is further amended--
(1) in subsection (e), by inserting ``or subsection (h)''
after ``subsection (c)''; and
(2) by adding at the end the following new subsection:
``(h) Prohibition of Extension of Subsidized Rates to
Lapsed Policies.--Notwithstanding any other provision of law
relating to chargeable risk premium rates for flood insurance
coverage under this title, the Administrator shall not
provide flood insurance coverage under this title for any
property for which a policy for such coverage for the
property has previously lapsed in coverage as a result of the
deliberate choice of the holder of such policy, at a rate
less than the applicable estimated risk premium rates for the
area (or subdivision thereof) in which such property is
located.''.
(e) Recognition of State and Local Funding for
Construction, Reconstruction, and Improvement of Flood
Protection Systems in Determination of Rates.--
(1) In general.--Section 1307 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4014) is amended--
(A) in subsection (e)--
(i) in the first sentence, by striking ``construction of a
flood protection system'' and inserting ``construction,
reconstruction, or improvement of a flood protection system
(without respect to the level of Federal investment or
participation)''; and
(ii) in the second sentence--
(I) by striking ``construction of a flood protection
system'' and inserting ``construction, reconstruction, or
improvement of a flood protection system''; and
(II) by inserting ``based on the present value of the
completed system'' after ``has been expended''; and
(B) in subsection (f)--
(i) in the first sentence in the matter preceding paragraph
(1), by inserting ``(without respect to the level of Federal
investment or participation)'' before the period at the end;
(ii) in the third sentence in the matter preceding
paragraph (1), by inserting ``, whether
[[Page H8776]]
coastal or riverine,'' after ``special flood hazard''; and
(iii) in paragraph (1), by striking ``a Federal agency in
consultation with the local project sponsor'' and inserting
``the entity or entities that own, operate, maintain, or
repair such system''.
(2) Regulations.--The Administrator of the Federal
Emergency Management Agency shall promulgate regulations to
implement this subsection and the amendments made by this
subsection as soon as practicable, but not more than 18
months after the date of the enactment of this Act. Paragraph
(3) may not be construed to annul, alter, affect, authorize
any waiver of, or establish any exception to, the requirement
under the preceding sentence.
SEC. 3006. TECHNICAL MAPPING ADVISORY COUNCIL.
(a) Establishment.--There is established a council to be
known as the Technical Mapping Advisory Council (in this
section referred to as the ``Council'').
(b) Membership.--
(1) In general.--The Council shall consist of--
(A) the Administrator of the Federal Emergency Management
Agency (in this section referred to as the
``Administrator''), or the designee thereof;
(B) the Director of the United States Geological Survey of
the Department of the Interior, or the designee thereof;
(C) the Under Secretary of Commerce for Oceans and
Atmosphere, or the designee thereof;
(D) the commanding officer of the United States Army Corps
of Engineers, or the designee thereof;
(E) the chief of the Natural Resources Conservation Service
of the Department of Agriculture, or the designee thereof;
(F) the Director of the United States Fish and Wildlife
Service of the Department of the Interior, or the designee
thereof;
(G) the Assistant Administrator for Fisheries of the
National Oceanic and Atmospheric Administration of the
Department of Commerce, or the designee thereof; and
(H) 14 additional members to be appointed by the
Administrator of the Federal Emergency Management Agency, who
shall be--
(i) an expert in data management;
(ii) an expert in real estate;
(iii) an expert in insurance;
(iv) a member of a recognized regional flood and storm
water management organization;
(v) a representative of a State emergency management agency
or association or organization for such agencies;
(vi) a member of a recognized professional surveying
association or organization;
(vii) a member of a recognized professional mapping
association or organization;
(viii) a member of a recognized professional engineering
association or organization;
(ix) a member of a recognized professional association or
organization representing flood hazard determination firms;
(x) a representative of State national flood insurance
coordination offices;
(xi) representatives of two local governments, at least one
of whom is a local levee flood manager or executive,
designated by the Federal Emergency Management Agency as
Cooperating Technical Partners; and
(xii) representatives of two State governments designated
by the Federal Emergency Management Agency as Cooperating
Technical States.
(2) Qualifications.--Members of the Council shall be
appointed based on their demonstrated knowledge and
competence regarding surveying, cartography, remote sensing,
geographic information systems, or the technical aspects of
preparing and using flood insurance rate maps. In appointing
members under paragraph (1)(H), the Administrator shall
ensure that the membership of the Council has a balance of
Federal, State, local, and private members, and includes an
adequate number of representatives from the States with
coastline on the Gulf of Mexico and other States containing
areas identified by the Administrator of the Federal
Emergency Management Agency as at high-risk for flooding or
special flood hazard areas.
(c) Duties.--
(1) New mapping standards.--Not later than the expiration
of the 12-month period beginning upon the date of the
enactment of this Act, the Council shall develop and submit
to the Administrator and the Congress proposed new mapping
standards for 100-year flood insurance rate maps used under
the national flood insurance program under the National Flood
Insurance Act of 1968. In developing such proposed standards
the Council shall--
(A) ensure that the flood insurance rate maps reflect true
risk, including graduated risk that better reflects the
financial risk to each property; such reflection of risk
should be at the smallest geographic level possible (but not
necessarily property-by-property) to ensure that communities
are mapped in a manner that takes into consideration
different risk levels within the community;
(B) ensure the most efficient generation, display, and
distribution of flood risk data, models, and maps where
practicable through dynamic digital environments using
spatial database technology and the Internet;
(C) ensure that flood insurance rate maps reflect current
hydrologic and hydraulic data, current land use, and
topography, incorporating the most current and accurate
ground and bathymetric elevation data;
(D) determine the best ways to include in such flood
insurance rate maps levees, decertified levees, and areas
located below dams, including determining a methodology for
ensuring that decertified levees and other protections are
included in flood insurance rate maps and their corresponding
flood zones reflect the level of protection conferred;
(E) consider how to incorporate restored wetlands and other
natural buffers into flood insurance rate maps, which may
include wetlands, groundwater recharge areas, erosion zones,
meander belts, endangered species habitat, barrier islands
and shoreline buffer features, riparian forests, and other
features;
(F) consider whether to use vertical positioning (as
defined by the Administrator) for flood insurance rate maps;
(G) ensure that flood insurance rate maps differentiate
between a property that is located in a flood zone and a
structure located on such property that is not at the same
risk level for flooding as such property due to the elevation
of the structure;
(H) ensure that flood insurance rate maps take into
consideration the best scientific data and potential future
conditions (including projections for sea level rise); and
(I) consider how to incorporate the new standards proposed
pursuant to this paragraph in existing mapping efforts.
(2) Ongoing duties.--The Council shall, on an ongoing
basis, review the mapping protocols developed pursuant to
paragraph (1), and make recommendations to the Administrator
when the Council determines that mapping protocols should be
altered.
(3) Meetings.--In carrying out its duties under this
section, the Council shall consult with stakeholders through
at least 4 public meetings annually, and shall seek input of
all stakeholder interests including State and local
representatives, environmental and conservation
organizations, insurance industry representatives, advocacy
groups, planning organizations, and mapping organizations.
(d) Prohibition on Compensation.--Members of the Council
shall receive no additional compensation by reason of their
service on the Council.
(e) Chairperson.--The Administrator shall serve as the
Chairperson of the Council.
(f) Staff.--
(1) FEMA.--Upon the request of the Council, the
Administrator may detail, on a nonreimbursable basis,
personnel of the Federal Emergency Management Agency to
assist the Council in carrying out its duties.
(2) Other federal agencies.--Upon request of the Council,
any other Federal agency that is a member of the Council may
detail, on a non-reimbursable basis, personnel to assist the
Council in carrying out its duties.
(g) Powers.--In carrying out this section, the Council may
hold hearings, receive evidence and assistance, provide
information, and conduct research, as the Council considers
appropriate.
(h) Termination.--The Council shall terminate upon the
expiration of the 5-year period beginning on the date of the
enactment of this Act.
(i) Moratorium on Flood Map Changes.--
(1) Moratorium.--Except as provided in paragraph (2) and
notwithstanding any other provision of this title, the
National Flood Insurance Act of 1968, or the Flood Disaster
Protection Act of 1973, during the period beginning upon the
date of the enactment of this Act and ending upon the
submission by the Council to the Administrator and the
Congress of the proposed new mapping standards required under
subsection (c)(1), the Administrator may not make effective
any new or updated rate maps for flood insurance coverage
under the national flood insurance program that were not in
effect for such program as of such date of enactment, or
otherwise revise, update, or change the flood insurance rate
maps in effect for such program as of such date.
(2) Letters of map change.--During the period described in
paragraph (1), the Administrator may revise, update, and
change the flood insurance rate maps in effect for the
national flood insurance program only pursuant to a letter of
map change (including a letter of map amendment, letter of
map revision, and letter of map revision based on fill).
SEC. 3007. FEMA INCORPORATION OF NEW MAPPING PROTOCOLS.
(a) New Rate Mapping Standards.--Not later than the
expiration of the 6-month period beginning upon submission by
the Technical Mapping Advisory Council under section 3006 of
the proposed new mapping standards for flood insurance rate
maps used under the national flood insurance program
developed by the Council pursuant to section 3006(c), the
Administrator of the Federal Emergency Management Agency (in
this section referred to as the ``Administrator'') shall
establish new standards for such rate maps based on such
proposed new standards and the recommendations of the
Council.
(b) Requirements.--The new standards for flood insurance
rate maps established by the Administrator pursuant to
subsection (a) shall--
(1) delineate and include in any such rate maps--
(A) all areas located within the 100-year flood plain; and
(B) areas subject to graduated and other risk levels, to
the maximum extent possible;
(2) ensure that any such rate maps--
(A) include levees, including decertified levees, and the
level of protection they confer;
(B) reflect current land use and topography and incorporate
the most current and accurate ground level data;
(C) take into consideration the impacts and use of fill and
the flood risks associated with altered hydrology;
(D) differentiate between a property that is located in a
flood zone and a structure located on such property that is
not at the same risk level for flooding as such property due
to the elevation of the structure;
(E) identify and incorporate natural features and their
associated flood protection benefits into mapping and rates;
and
[[Page H8777]]
(F) identify, analyze, and incorporate the impact of
significant changes to building and development throughout
any river or costal water system, including all tributaries,
which may impact flooding in areas downstream; and
(3) provide that such rate maps are developed on a
watershed basis.
(c) Report.--If, in establishing new standards for flood
insurance rate maps pursuant to subsection (a) of this
section, the Administrator does not implement all of the
recommendations of the Council made under the proposed new
mapping standards developed by the Council pursuant to
section 3006(c), upon establishment of the new standards the
Administrator shall submit a report to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate specifying which such recommendations were not adopted
and explaining the reasons such recommendations were not
adopted.
(d) Implementation.--The Administrator shall, not later
than the expiration of the 6-month period beginning upon
establishment of the new standards for flood insurance rate
maps pursuant to subsection (a) of this section, commence use
of the new standards and updating of flood insurance rate
maps in accordance with the new standards. Not later than the
expiration of the 10-year period beginning upon the
establishment of such new standards, the Administrator shall
complete updating of all flood insurance rate maps in
accordance with the new standards, subject to the
availability of sufficient amounts for such activities
provided in appropriation Acts.
(e) Temporary Suspension of Mandatory Purchase Requirement
for Certain Properties.--
(1) Submission of elevation certificate.--Subject to
paragraphs (2) and (3) of this subsection, subsections (a),
(b), and (e) of section 102 of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a), and section 202(a) of such
Act, shall not apply to a property located in an area
designated as having a special flood hazard if the owner of
such property submits to the Administrator an elevation
certificate for such property showing that the lowest level
of the primary residence on such property is at an elevation
that is at least three feet higher than the elevation of the
100-year flood plain.
(2) Review of certificate.--The Administrator shall accept
as conclusive each elevation certificate submitted under
paragraph (1) unless the Administrator conducts a subsequent
elevation survey and determines that the lowest level of the
primary residence on the property in question is not at an
elevation that is at least three feet higher than the
elevation of the 100-year flood plain. The Administrator
shall provide any such subsequent elevation survey to the
owner of such property.
(3) Determinations for properties on borders of special
flood hazard areas.--
(A) Expedited determination.--In the case of any survey for
a property submitted to the Administrator pursuant to
paragraph (1) showing that a portion of the property is
located within an area having special flood hazards and that
a structure located on the property is not located within
such area having special flood hazards, the Administrator
shall expeditiously process any request made by an owner of
the property for a determination pursuant to paragraph (2) or
a determination of whether the structure is located within
the area having special flood hazards.
(B) Prohibition of fee.--If the Administrator determines
pursuant to subparagraph (A) that the structure on the
property is not located within the area having special flood
hazards, the Administrator shall not charge a fee for
reviewing the flood hazard data and shall not require the
owner to provide any additional elevation data.
(C) Simplification of review process.--The Administrator
shall collaborate with private sector flood insurers to
simplify the review process for properties described in
subparagraph (A) and to ensure that the review process
provides for accurate determinations.
(4) Termination of authority.--This subsection shall cease
to apply to a property on the date on which the Administrator
updates the flood insurance rate map that applies to such
property in accordance with the requirements of subsection
(d).
SEC. 3008. TREATMENT OF LEVEES.
Section 1360 of the National Flood Insurance Act of 1968
(42 U.S.C. 4101) is amended by adding at the end the
following new subsection:
``(k) Treatment of Levees.--The Administrator may not issue
flood insurance maps, or make effective updated flood
insurance maps, that omit or disregard the actual protection
afforded by an existing levee, floodwall, pump or other flood
protection feature, regardless of the accreditation status of
such feature.''.
SEC. 3009. PRIVATIZATION INITIATIVES.
(a) FEMA and GAO Reports.--Not later than the expiration of
the 18-month period beginning on the date of the enactment of
this Act, the Administrator of the Federal Emergency
Management Agency and the Comptroller General of the United
States shall each conduct a separate study to assess a broad
range of options, methods, and strategies for privatizing the
national flood insurance program and shall each submit a
report to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate with recommendations for the best
manner to accomplish such privatization.
(b) Private Risk-Management Initiatives.--
(1) Authority.--The Administrator of the Federal Emergency
Management Agency may carry out such private risk-management
initiatives under the national flood insurance program as the
Administrator considers appropriate to determine the capacity
of private insurers, reinsurers, and financial markets to
assist communities, on a voluntary basis only, in managing
the full range of financial risks associated with flooding.
(2) Assessment.--Not later than the expiration of the 12-
month period beginning on the date of the enactment of this
Act, the Administrator shall assess the capacity of the
private reinsurance, capital, and financial markets by
seeking proposals to assume a portion of the program's
insurance risk and submit to the Congress a report describing
the response to such request for proposals and the results of
such assessment.
(3) Protocol for release of data.--The Administrator shall
develop a protocol to provide for the release of data
sufficient to conduct the assessment required under paragraph
(2).
(c) Reinsurance.--The National Flood Insurance Act of 1968
is amended--
(1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), by
inserting ``, including as reinsurance of insurance coverage
provided by the flood insurance program'' before ``, on such
terms'';
(2) in section 1332(c)(2) (42 U.S.C. 4052(c)(2)), by
inserting ``or reinsurance'' after ``flood insurance
coverage'';
(3) in section 1335(a) (42 U.S.C. 4055(a))--
(A) by inserting ``(1)'' after ``(a)''; and
(B) by adding at the end the following new paragraph:
``(2) The Administrator is authorized to secure reinsurance
coverage of coverage provided by the flood insurance program
from private market insurance, reinsurance, and capital
market sources at rates and on terms determined by the
Administrator to be reasonable and appropriate in an amount
sufficient to maintain the ability of the program to pay
claims and that minimizes the likelihood that the program
will utilize the borrowing authority provided under section
1309.'';
(4) in section 1346(a) (12 U.S.C. 4082(a))--
(A) in the matter preceding paragraph (1), by inserting ``,
or for purposes of securing reinsurance of insurance coverage
provided by the program,'' before ``of any or all of'';
(B) in paragraph (1)--
(i) by striking ``estimating'' and inserting
``Estimating''; and
(ii) by striking the semicolon at the end and inserting a
period;
(C) in paragraph (2)--
(i) by striking ``receiving'' and inserting ``Receiving'';
and
(ii) by striking the semicolon at the end and inserting a
period;
(D) in paragraph (3)--
(i) by striking ``making'' and inserting ``Making''; and
(ii) by striking ``; and'' and inserting a period;
(E) in paragraph (4)--
(i) by striking ``otherwise'' and inserting ``Otherwise'';
and
(ii) by redesignating such paragraph as paragraph (5); and
(F) by inserting after paragraph (3) the following new
paragraph:
``(4) Placing reinsurance coverage on insurance provided by
such program.''; and
(5) in section 1370(a)(3) (42 U.S.C. 4121(a)(3)), by
inserting before the semicolon at the end the following: ``,
is subject to the reporting requirements of the Securities
Exchange Act of 1934, pursuant to section 13(a) or 15(d) of
such Act (15 U.S.C. 78m(a), 78o(d)), or is authorized by the
Administrator to assume reinsurance on risks insured by the
flood insurance program''.
(d) Assessment of Claims-Paying Ability.--
(1) Assessment.--Not later than September 30 of each year,
the Administrator of the Federal Emergency Management Agency
shall conduct an assessment of the claims-paying ability of
the national flood insurance program, including the program's
utilization of private sector reinsurance and reinsurance
equivalents, with and without reliance on borrowing authority
under section 1309 of the National Flood Insurance Act of
1968 (42 U.S.C. 4016). In conducting the assessment, the
Administrator shall take into consideration regional
concentrations of coverage written by the program, peak flood
zones, and relevant mitigation measures.
(2) Report.--The Administrator shall submit a report to the
Congress of the results of each such assessment, and make
such report available to the public, not later than 30 days
after completion of the assessment.
SEC. 3010. FEMA ANNUAL REPORT ON INSURANCE PROGRAM.
Section 1320 of the National Flood Insurance Act of 1968
(42 U.S.C. 4027) is amended--
(1) in the section heading, by striking ``report to the
president'' and inserting ``annual report to congress'';
(2) in subsection (a)--
(A) by striking ``biennially'';
(B) by striking ``the President for submission to''; and
(C) by inserting ``not later than June 30 of each year''
before the period at the end;
(3) in subsection (b), by striking ``biennial'' and
inserting ``annual''; and
(4) by adding at the end the following new subsection:
``(c) Financial Status of Program.--The report under this
section for each year shall include information regarding the
financial status of the national flood insurance program
under this title, including a description of the financial
status of the National Flood Insurance Fund and current and
projected levels of claims, premium receipts, expenses, and
borrowing under the program.''.
SEC. 3011. MITIGATION ASSISTANCE.
(a) Mitigation Assistance Grants.--Section 1366 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is
amended--
(1) in subsection (a), by striking the last sentence and
inserting the following: ``Such financial assistance shall be
made available--
``(1) to States and communities in the form of grants under
this section for carrying out mitigation activities;
[[Page H8778]]
``(2) to States and communities in the form of grants under
this section for carrying out mitigation activities that
reduce flood damage to severe repetitive loss structures; and
``(3) to property owners in the form of direct grants under
this section for carrying out mitigation activities that
reduce flood damage to individual structures for which 2 or
more claim payments for losses have been made under flood
insurance coverage under this title if the Administrator,
after consultation with the State and community, determines
that neither the State nor community in which such a
structure is located has the capacity to manage such
grants.'';
(2) by striking subsection (b);
(3) in subsection (c)--
(A) by striking ``flood risk'' and inserting ``multi-
hazard'';
(B) by striking ``provides protection against'' and
inserting ``examines reduction of''; and
(C) by redesignating such subsection as subsection (b);
(4) by striking subsection (d);
(5) in subsection (e)--
(A) in paragraph (1), by striking the paragraph designation
and all that follows through the end of the first sentence
and inserting the following:
``(1) Requirement of consistency with approved mitigation
plan.--Amounts provided under this section may be used only
for mitigation activities that are consistent with mitigation
plans that are approved by the Administrator and identified
under subparagraph (4).'';
(B) by striking paragraphs (2), (3), and (4) and inserting
the following new paragraphs:
``(2) Requirements of technical feasibility, cost
effectiveness, and interest of nfif.--The Administrator may
approve only mitigation activities that the Administrator
determines are technically feasible and cost-effective and in
the interest of, and represent savings to, the National Flood
Insurance Fund. In making such determinations, the
Administrator shall take into consideration recognized
benefits that are difficult to quantify.
``(3) Priority for mitigation assistance.--In providing
grants under this section for mitigation activities, the
Administrator shall give priority for funding to activities
that the Administrator determines will result in the greatest
savings to the National Flood Insurance Fund, including
activities for--
``(A) severe repetitive loss structures;
``(B) repetitive loss structures; and
``(C) other subsets of structures as the Administrator may
establish.'';
(C) in paragraph (5)--
(i) by striking all of the matter that precedes
subparagraph (A) and inserting the following:
``(4) Eligible activities.--Eligible activities may
include--'';
(ii) by striking subparagraphs (E) and (H);
(iii) by redesignating subparagraphs (D), (F), and (G) as
subparagraphs (E), (G), and (H);
(iv) by inserting after subparagraph (C) the following new
subparagraph:
``(D) elevation, relocation, and floodproofing of utilities
(including equipment that serve structures);'';
(v) by inserting after subparagraph (E), as so redesignated
by clause (iii) of this subparagraph, the following new
subparagraph:
``(F) the development or update of State, local, or Indian
tribal mitigation plans which meet the planning criteria
established by the Administrator, except that the amount from
grants under this section that may be used under this
subparagraph may not exceed $50,000 for any mitigation plan
of a State or $25,000 for any mitigation plan of a local
government or Indian tribe;'';
(vi) in subparagraph (H); as so redesignated by clause
(iii) of this subparagraph, by striking ``and'' at the end;
and
(vii) by adding at the end the following new subparagraphs:
``(I) other mitigation activities not described in
subparagraphs (A) through (G) or the regulations issued under
subparagraph (H), that are described in the mitigation plan
of a State, community, or Indian tribe; and
``(J) personnel costs for State staff that provide
technical assistance to communities to identify eligible
activities, to develop grant applications, and to implement
grants awarded under this section, not to exceed $50,000 per
State in any Federal fiscal year, so long as the State
applied for and was awarded at least $1,000,000 in grants
available under this section in the prior Federal fiscal
year; the requirements of subsections (d)(1) and (d)(2) shall
not apply to the activity under this subparagraph.'';
(D) by adding at the end the following new paragraph:
``(6) Eligibility of demolition and rebuilding of
properties.--The Administrator shall consider as an eligible
activity the demolition and rebuilding of properties to at
least base flood elevation or greater, if required by the
Administrator or if required by any State regulation or local
ordinance, and in accordance with criteria established by the
Administrator.''; and
(E) by redesignating such subsection as subsection (c);
(6) by striking subsections (f), (g), and (h) and inserting
the following new subsection:
``(d) Matching Requirement.--The Administrator may provide
grants for eligible mitigation activities as follows:
``(1) Severe repetitive loss structures.--In the case of
mitigation activities to severe repetitive loss structures,
in an amount up to 100 percent of all eligible costs.
``(2) Repetitive loss structures.--In the case of
mitigation activities to repetitive loss structures, in an
amount up to 90 percent of all eligible costs.
``(3) Other mitigation activities.--In the case of all
other mitigation activities, in an amount up to 75 percent of
all eligible costs.'';
(7) in subsection (i)--
(A) in paragraph (2)--
(i) by striking ``certified under subsection (g)'' and
inserting ``required under subsection (d)''; and
(ii) by striking ``3 times the amount'' and inserting ``the
amount''; and
(B) by redesignating such subsection as subsection (e);
(8) in subsection (j)--
(A) in paragraph (1), by striking ``Riegle Community
Development and Regulatory Improvement Act of 1994'' and
inserting ``Flood Insurance Reform Act of 2011'';
(B) by redesignating such subsection as subsection (f); and
(9) by striking subsections (k) and (m) and inserting the
following new subsections:
``(g) Failure To Make Grant Award Within 5 Years.--For any
application for a grant under this section for which the
Administrator fails to make a grant award within 5 years of
the date of application, the grant application shall be
considered to be denied and any funding amounts allocated for
such grant applications shall remain in the National Flood
Mitigation Fund under section 1367 of this title and shall be
made available for grants under this section.
``(h) Limitation on Funding for Mitigation Activities for
Severe Repetitive Loss Structures.--The amount used pursuant
to section 1310(a)(8) in any fiscal year may not exceed
$40,000,000 and shall remain available until expended.
``(i) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Community.--The term `community' means--
``(A) a political subdivision that--
``(i) has zoning and building code jurisdiction over a
particular area having special flood hazards, and
``(ii) is participating in the national flood insurance
program; or
``(B) a political subdivision of a State, or other
authority, that is designated by political subdivisions, all
of which meet the requirements of subparagraph (A), to
administer grants for mitigation activities for such
political subdivisions.
``(2) Repetitive loss structure.--The term `repetitive loss
structure' has the meaning given such term in section 1370.
``(3) Severe repetitive loss structure.--The term `severe
repetitive loss structure' means a structure that--
``(A) is covered under a contract for flood insurance made
available under this title; and
``(B) has incurred flood-related damage--
``(i) for which 4 or more separate claims payments have
been made under flood insurance coverage under this title,
with the amount of each such claim exceeding $15,000, and
with the cumulative amount of such claims payments exceeding
$60,000; or
``(ii) for which at least 2 separate claims payments have
been made under such coverage, with the cumulative amount of
such claims exceeding the value of the insured structure.''.
(b) Elimination of Grants Program for Repetitive Insurance
Claims Properties.--Chapter I of the National Flood Insurance
Act of 1968 is amended by striking section 1323 (42 U.S.C.
4030).
(c) Elimination of Pilot Program for Mitigation of Severe
Repetitive Loss Properties.--Chapter III of the National
Flood Insurance Act of 1968 is amended by striking section
1361A (42 U.S.C. 4102a).
(d) National Flood Insurance Fund.--Section 1310(a) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is
amended--
(1) in paragraph (6), by inserting ``and'' after the
semicolon;
(2) in paragraph (7), by striking the semicolon and
inserting a period; and
(3) by striking paragraphs (8) and (9).
(e) National Flood Mitigation Fund.--Section 1367 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104d) is
amended--
(1) in subsection (b)--
(A) by striking paragraph (1) and inserting the following
new paragraph:
``(1) in each fiscal year, from the National Flood
Insurance Fund in amounts not exceeding $90,000,000 to remain
available until expended, of which--
``(A) not more than $40,000,000 shall be available pursuant
to subsection (a) of this section only for assistance
described in section 1366(a)(1);
``(B) not more than $40,000,000 shall be available pursuant
to subsection (a) of this section only for assistance
described in section 1366(a)(2); and
``(C) not more than $10,000,000 shall be available pursuant
to subsection (a) of this section only for assistance
described in section 1366(a)(3).'';
(B) in paragraph (3), by striking ``section 1366(i)'' and
inserting ``section 1366(e)'';
(2) in subsection (c), by striking ``sections 1366 and
1323'' and inserting ``section 1366'';
(3) by redesignating subsections (d) and (e) as subsections
(f) and (g), respectively; and
(4) by inserting after subsection (c) the following new
subsections:
``(d) Prohibition on Offsetting Collections.--
Notwithstanding any other provision of this title, amounts
made available pursuant to this section shall not be subject
to offsetting collections through premium rates for flood
insurance coverage under this title.
``(e) Continued Availability and Reallocation.--Any amounts
made available pursuant to subparagraph (A), (B), or (C) of
subsection (b)(1) that are not used in any fiscal year shall
continue to be available for the purposes specified in such
subparagraph of subsection (b)(1) pursuant to which such
amounts were made available, unless the Administrator
determines that reallocation of such unused amounts to
[[Page H8779]]
meet demonstrated need for other mitigation activities under
section 1366 is in the best interest of the National Flood
Insurance Fund.''.
(f) Increased Cost of Compliance Coverage.--Section
1304(b)(4) of the National Flood Insurance Act of 1968 (42
U.S.C. 4011(b)(4)) is amended--
(1) by striking subparagraph (B); and
(2) by redesignating subparagraphs (C), (D), and (E) as
subparagraphs (B), (C), and (D), respectively.
SEC. 3012. NOTIFICATION TO HOMEOWNERS REGARDING MANDATORY
PURCHASE REQUIREMENT APPLICABILITY AND RATE
PHASE-INS.
Section 201 of the Flood Disaster Protection Act of 1973
(42 U.S.C. 4105) is amended by adding at the end the
following new subsection:
``(f) Annual Notification.--The Administrator, in
consultation with affected communities, shall establish and
carry out a plan to notify residents of areas having special
flood hazards, on an annual basis--
``(1) that they reside in such an area;
``(2) of the geographical boundaries of such area;
``(3) of whether section 1308(g) of the National Flood
Insurance Act of 1968 applies to properties within such area;
``(4) of the provisions of section 102 requiring purchase
of flood insurance coverage for properties located in such an
area, including the date on which such provisions apply with
respect to such area, taking into consideration section
102(i); and
``(5) of a general estimate of what similar homeowners in
similar areas typically pay for flood insurance coverage,
taking into consideration section 1308(g) of the National
Flood Insurance Act of 1968.''.
SEC. 3013. NOTIFICATION TO MEMBERS OF CONGRESS OF FLOOD MAP
REVISIONS AND UPDATES.
Section 1360 of the National Flood Insurance Act of 1968
(42 U.S.C. 4101), as amended by the preceding provisions of
this title, is further amended by adding at the end the
following new subsection:
``(l) Notification to Members of Congress of Map
Modernization.--Upon any revision or update of any floodplain
area or flood-risk zone pursuant to subsection (f), any
decision pursuant to subsection (f)(1) that such revision or
update is necessary, any issuance of preliminary maps for
such revision or updating, or any other significant action
relating to any such revision or update, the Administrator
shall notify the Senators for each State affected, and each
Member of the House of Representatives for each congressional
district affected, by such revision or update in writing of
the action taken.''.
SEC. 3014. NOTIFICATION AND APPEAL OF MAP CHANGES;
NOTIFICATION TO COMMUNITIES OF ESTABLISHMENT OF
FLOOD ELEVATIONS.
Section 1363 of the National Flood Insurance Act of 1968
(42 U.S.C. 4104) is amended by striking the section
designation and all that follows through the end of
subsection (a) and inserting the following:
``Sec. 1363. (a) In establishing projected flood elevations
for land use purposes with respect to any community pursuant
to section 1361, the Director shall first propose such
determinations--
``(1) by providing the chief executive officer of each
community affected by the proposed elevations, by certified
mail, with a return receipt requested, notice of the
elevations, including a copy of the maps for the elevations
for such community and a statement explaining the process
under this section to appeal for changes in such elevations;
``(2) by causing notice of such elevations to be published
in the Federal Register, which notice shall include
information sufficient to identify the elevation
determinations and the communities affected, information
explaining how to obtain copies of the elevations, and a
statement explaining the process under this section to appeal
for changes in the elevations;
``(3) by publishing in a prominent local newspaper the
elevations, a description of the appeals process for flood
determinations, and the mailing address and telephone number
of a person the owner may contact for more information or to
initiate an appeal; and
``(4) by providing written notification, by first class
mail, to each owner of real property affected by the proposed
elevations of--
``(A) the status of such property, both prior to and after
the effective date of the proposed determination, with
respect to flood zone and flood insurance requirements under
this Act and the Flood Disaster Protection Act of 1973;
``(B) the process under this section to appeal a flood
elevation determination; and
``(C) the mailing address and phone number of a person the
owner may contact for more information or to initiate an
appeal.''.
SEC. 3015. NOTIFICATION TO TENANTS OF AVAILABILITY OF
CONTENTS INSURANCE.
The National Flood Insurance Act of 1968 is amended by
inserting after section 1308 (42 U.S.C. 4015) the following
new section:
``SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY OF
CONTENTS INSURANCE.
``(a) In General.--The Administrator shall, upon entering
into a contract for flood insurance coverage under this title
for any property--
``(1) provide to the insured sufficient copies of the
notice developed pursuant to subsection (b); and
``(2) require the insured to provide a copy of the notice,
or otherwise provide notification of the information under
subsection (b) in the manner that the manager or landlord
deems most appropriate, to each such tenant and to each new
tenant upon commencement of such a tenancy.
``(b) Notice.--Notice to a tenant of a property in
accordance with this subsection is written notice that
clearly informs a tenant--
``(1) whether the property is located in an area having
special flood hazards;
``(2) that flood insurance coverage is available under the
national flood insurance program under this title for
contents of the unit or structure leased by the tenant;
``(3) of the maximum amount of such coverage for contents
available under this title at that time; and
``(4) of where to obtain information regarding how to
obtain such coverage, including a telephone number, mailing
address, and Internet site of the Administrator where such
information is available.''.
SEC. 3016. NOTIFICATION TO POLICY HOLDERS REGARDING DIRECT
MANAGEMENT OF POLICY BY FEMA.
Part C of chapter II of the National Flood Insurance Act of
1968 (42 U.S.C. 4081 et seq.) is amended by adding at the end
the following new section:
``SEC. 1349. NOTIFICATION TO POLICY HOLDERS REGARDING DIRECT
MANAGEMENT OF POLICY BY FEMA.
``(a) Notification.--Not later than 60 days before the date
on which a transferred flood insurance policy expires, and
annually thereafter until such time as the Federal Emergency
Management Agency is no longer directly administering such
policy, the Administrator shall notify the holder of such
policy that--
``(1) the Federal Emergency Management Agency is directly
administering the policy;
``(2) such holder may purchase flood insurance that is
directly administered by an insurance company; and
``(3) purchasing flood insurance offered under the National
Flood Insurance Program that is directly administered by an
insurance company will not alter the coverage provided or the
premiums charged to such holder that otherwise would be
provided or charged if the policy was directly administered
by the Federal Emergency Management Agency.
``(b) Definition.--In this section, the term `transferred
flood insurance policy' means a flood insurance policy that--
``(1) was directly administered by an insurance company at
the time the policy was originally purchased by the policy
holder; and
``(2) at the time of renewal of the policy, direct
administration of the policy was or will be transferred to
the Federal Emergency Management Agency.''.
SEC. 3017. NOTICE OF AVAILABILITY OF FLOOD INSURANCE AND
ESCROW IN RESPA GOOD FAITH ESTIMATE.
Subsection (c) of section 5 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2604(c)) is amended by
adding at the end the following new sentence: ``Each such
good faith estimate shall include the following conspicuous
statements and information: (1) that flood insurance coverage
for residential real estate is generally available under the
national flood insurance program whether or not the real
estate is located in an area having special flood hazards and
that, to obtain such coverage, a home owner or purchaser
should contact the national flood insurance program; (2) a
telephone number and a location on the Internet by which a
home owner or purchaser can contact the national flood
insurance program; and (3) that the escrowing of flood
insurance payments is required for many loans under section
102(d) of the Flood Disaster Protection Act of 1973, and may
be a convenient and available option with respect to other
loans.''.
SEC. 3018. REIMBURSEMENT FOR COSTS INCURRED BY HOMEOWNERS AND
COMMUNITIES OBTAINING LETTERS OF MAP AMENDMENT
OR REVISION.
(a) In General.--Section 1360 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4101), as amended by the
preceding provisions of this title, is further amended by
adding at the end the following new subsection:
``(m) Reimbursement.--
``(1) Requirement upon bona fide error.--If an owner of any
property located in an area described in section 102(i)(3) of
the Flood Disaster Protection Act of 1973, or a community in
which such a property is located, obtains a letter of map
amendment, or a letter of map revision, due to a bona fide
error on the part of the Administrator of the Federal
Emergency Management Agency, the Administrator shall
reimburse such owner, or such entity or jurisdiction acting
on such owner's behalf, or such community, as applicable, for
any reasonable costs incurred in obtaining such letter.
``(2) Reasonable costs.--The Administrator shall, by
regulation or notice, determine a reasonable amount of costs
to be reimbursed under paragraph (1), except that such costs
shall not include legal or attorneys fees. In determining the
reasonableness of costs, the Administrator shall only
consider the actual costs to the owner or community, as
applicable, of utilizing the services of an engineer,
surveyor, or similar services.''.
(b) Regulations.--Not later than 90 days after the date of
the enactment of this Act, the Administrator of the Federal
Emergency Management Agency shall issue the regulations or
notice required under section 1360(m)(2) of the National
Flood Insurance Act of 1968, as added by the amendment made
by subsection (a) of this section.
SEC. 3019. ENHANCED COMMUNICATION WITH CERTAIN COMMUNITIES
DURING MAP UPDATING PROCESS.
Section 1360 of the National Flood Insurance Act of 1968
(42 U.S.C. 4101), as amended by the preceding provisions of
this title, is further amended by adding at the end the
following new subsection:
``(n) Enhanced Communication With Certain Communities
During Map Updating Process.--In updating flood insurance
maps
[[Page H8780]]
under this section, the Administrator shall communicate with
communities located in areas where flood insurance rate maps
have not been updated in 20 years or more and the appropriate
State emergency agencies to resolve outstanding issues,
provide technical assistance, and disseminate all necessary
information to reduce the prevalence of outdated maps in
flood-prone areas.''.
SEC. 3020. NOTIFICATION TO RESIDENTS NEWLY INCLUDED IN FLOOD
HAZARD AREAS.
Section 1360 of the National Flood Insurance Act of 1968
(42 U.S.C. 4101), as amended by the preceding provisions of
this title, is further amended by adding at the end the
following new subsection:
``(o) Notification to Residents Newly Included in Flood
Hazard Area.--In revising or updating any areas having
special flood hazards, the Administrator shall provide to
each owner of a property to be newly included in such a
special flood hazard area, at the time of issuance of such
proposed revised or updated flood insurance maps, a copy of
the proposed revised or updated flood insurance maps together
with information regarding the appeals process under section
1363 of the National Flood Insurance Act of 1968 (42 U.S.C.
4104).''.
SEC. 3021. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE OF
HURRICANE SEASON.
Chapter I of the National Flood Insurance Act of 1968 (42
U.S.C. 4001 et seq.) is amended by adding at the end the
following new section:
``SEC. 1325. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE OF
HURRICANE SEASON.
``In the case of any property that is otherwise in
compliance with the coverage and building requirements of the
national flood insurance program, the presence of an enclosed
swimming pool located at ground level or in the space below
the lowest floor of a building after November 30 and before
June 1 of any year shall have no effect on the terms of
coverage or the ability to receive coverage for such building
under the national flood insurance program established
pursuant to this title, if the pool is enclosed with non-
supporting breakaway walls.''.
SEC. 3022. INFORMATION REGARDING MULTIPLE PERILS CLAIMS.
Section 1345 of the National Flood Insurance Act of 1968
(42 U.S.C. 4081) is amended by adding at the end the
following new subsection:
``(d) Information Regarding Multiple Perils Claims.--
``(1) In general.--Subject to paragraph (2), if an insured
having flood insurance coverage under a policy issued under
the program under this title by the Administrator or a
company, insurer, or entity offering flood insurance coverage
under such program (in this subsection referred to as a
`participating company') has wind or other homeowners
coverage from any company, insurer, or other entity covering
property covered by such flood insurance, in the case of
damage to such property that may have been caused by flood or
by wind, the Administrator and the participating company,
upon the request of the insured, shall provide to the
insured, within 30 days of such request--
``(A) a copy of the estimate of structure damage;
``(B) proofs of loss;
``(C) any expert or engineering reports or documents
commissioned by or relied upon by the Administrator or
participating company in determining whether the damage was
caused by flood or any other peril; and
``(D) the Administrator's or the participating company's
final determination on the claim.
``(2) Timing.--Paragraph (1) shall apply only with respect
to a request described in such paragraph made by an insured
after the Administrator or the participating company, or
both, as applicable, have issued a final decision on the
flood claim involved and resolution of all appeals with
respect to such claim.''.
SEC. 3023. FEMA AUTHORITY TO REJECT TRANSFER OF POLICIES.
Section 1345 of the National Flood Insurance Act of 1968
(42 U.S.C. 4081) is amended by adding at the end the
following new subsection:
``(e) FEMA Authority To Reject Transfer of Policies.--
Notwithstanding any other provision of this Act, the
Administrator may, at the discretion of the Administrator,
refuse to accept the transfer of the administration of
policies for coverage under the flood insurance program under
this title that are written and administered by any insurance
company or other insurer, or any insurance agent or
broker.''.
SEC. 3024. APPEALS.
(a) Television and Radio Announcement.--Section 1363 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104) is
amended--
(1) in subsection (a), by inserting after
``determinations'' by inserting the following: ``by notifying
a local television and radio station,''; and
(2) in the first sentence of subsection (b), by inserting
before the period at the end the following: ``and shall
notify a local television and radio station at least once
during the same 10-day period''.
(b) Extension of Appeals Period.--Subsection (b) of section
1363 of the National Flood Insurance Act of 1968 (42 U.S.C.
4104(b)) is amended--
(1) by striking ``(b) The Director'' and inserting ``(b)(1)
The Administrator''; and
(2) by adding at the end the following new paragraph:
``(2) The Administrator shall grant an extension of the 90-
day period for appeals referred to in paragraph (1) for 90
additional days if an affected community certifies to the
Administrator, after the expiration of at least 60 days of
such period, that the community--
``(A) believes there are property owners or lessees in the
community who are unaware of such period for appeals; and
``(B) will utilize the extension under this paragraph to
notify property owners or lessees who are affected by the
proposed flood elevation determinations of the period for
appeals and the opportunity to appeal the determinations
proposed by the Administrator.''.
(c) Applicability.--The amendments made by subsections (a)
and (b) shall apply with respect to any flood elevation
determination for any area in a community that has not, as of
the date of the enactment of this Act, been issued a Letter
of Final Determination for such determination under the flood
insurance map modernization process.
SEC. 3025. RESERVE FUND.
(a) Establishment.--Chapter I of the National Flood
Insurance Act of 1968 is amended by inserting after section
1310 (42 U.S.C. 4017) the following new section:
``SEC. 1310A. RESERVE FUND.
``(a) Establishment of Reserve Fund.--In carrying out the
flood insurance program authorized by this title, the
Administrator shall establish in the Treasury of the United
States a National Flood Insurance Reserve Fund (in this
section referred to as the `Reserve Fund') which shall--
``(1) be an account separate from any other accounts or
funds available to the Administrator; and
``(2) be available for meeting the expected future
obligations of the flood insurance program.
``(b) Reserve Ratio.--Subject to the phase-in requirements
under subsection (d), the Reserve Fund shall maintain a
balance equal to--
``(1) 1 percent of the sum of the total potential loss
exposure of all outstanding flood insurance policies in force
in the prior fiscal year; or
``(2) such higher percentage as the Administrator
determines to be appropriate, taking into consideration any
circumstance that may raise a significant risk of substantial
future losses to the Reserve Fund.
``(c) Maintenance of Reserve Ratio.--
``(1) In general.--The Administrator shall have the
authority to establish, increase, or decrease the amount of
aggregate annual insurance premiums to be collected for any
fiscal year necessary--
``(A) to maintain the reserve ratio required under
subsection (b); and
``(B) to achieve such reserve ratio, if the actual balance
of such reserve is below the amount required under subsection
(b).
``(2) Considerations.--In exercising the authority under
paragraph (1), the Administrator shall consider--
``(A) the expected operating expenses of the Reserve Fund;
``(B) the insurance loss expenditures under the flood
insurance program;
``(C) any investment income generated under the flood
insurance program; and
``(D) any other factor that the Administrator determines
appropriate.
``(3) Limitations.--In exercising the authority under
paragraph (1), the Administrator shall be subject to all
other provisions of this Act, including any provisions
relating to chargeable premium rates and annual increases of
such rates.
``(d) Phase-In Requirements.--The phase-in requirements
under this subsection are as follows:
``(1) In general.--Beginning in fiscal year 2012 and not
ending until the fiscal year in which the ratio required
under subsection (b) is achieved, in each such fiscal year
the Administrator shall place in the Reserve Fund an amount
equal to not less than 7.5 percent of the reserve ratio
required under subsection (b).
``(2) Amount satisfied.--As soon as the ratio required
under subsection (b) is achieved, and except as provided in
paragraph (3), the Administrator shall not be required to set
aside any amounts for the Reserve Fund.
``(3) Exception.--If at any time after the ratio required
under subsection (b) is achieved, the Reserve Fund falls
below the required ratio under subsection (b), the
Administrator shall place in the Reserve Fund for that fiscal
year an amount equal to not less than 7.5 percent of the
reserve ratio required under subsection (b).
``(e) Limitation on Reserve Ratio.--In any given fiscal
year, if the Administrator determines that the reserve ratio
required under subsection (b) cannot be achieved, the
Administrator shall submit a report to the Congress that--
``(1) describes and details the specific concerns of the
Administrator regarding such consequences;
``(2) demonstrates how such consequences would harm the
long-term financial soundness of the flood insurance program;
and
``(3) indicates the maximum attainable reserve ratio for
that particular fiscal year.
``(f) Availability of Amounts.--The reserve ratio
requirements under subsection (b) and the phase-in
requirements under subsection (d) shall be subject to the
availability of amounts in the National Flood Insurance Fund
for transfer under section 1310(a)(10), as provided in
section 1310(f).''.
(b) Funding.--Subsection (a) of section 1310 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is
amended--
(1) in paragraph (8), by striking ``and'' at the end;
(2) in paragraph (9), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(10) for transfers to the National Flood Insurance
Reserve Fund under section 1310A, in accordance with such
section.''.
SEC. 3026. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUTREACH
ACTIVITIES AND COMMUNITY BUILDING CODE
ADMINISTRATION GRANTS.
Section 105(a) of the Housing and Community Development Act
of 1974 (42 U.S.C. 5305(a)) is amended--
[[Page H8781]]
(1) in paragraph (24), by striking ``and'' at the end;
(2) in paragraph (25), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(26) supplementing existing State or local funding for
administration of building code enforcement by local building
code enforcement departments, including for increasing
staffing, providing staff training, increasing staff
competence and professional qualifications, and supporting
individual certification or departmental accreditation, and
for capital expenditures specifically dedicated to the
administration of the building code enforcement department,
except that, to be eligible to use amounts as provided in
this paragraph--
``(A) a building code enforcement department shall provide
matching, non-Federal funds to be used in conjunction with
amounts used under this paragraph in an amount--
``(i) in the case of a building code enforcement department
serving an area with a population of more than 50,000, equal
to not less than 50 percent of the total amount of any funds
made available under this title that are used under this
paragraph;
``(ii) in the case of a building code enforcement
department serving an area with a population of between
20,001 and 50,000, equal to not less than 25 percent of the
total amount of any funds made available under this title
that are used under this paragraph; and
``(iii) in the case of a building code enforcement
department serving an area with a population of less than
20,000, equal to not less than 12.5 percent of the total
amount of any funds made available under this title that are
used under this paragraph,
except that the Secretary may waive the matching fund
requirements under this subparagraph, in whole or in part,
based upon the level of economic distress of the jurisdiction
in which is located the local building code enforcement
department that is using amounts for purposes under this
paragraph, and shall waive such matching fund requirements in
whole for any recipient jurisdiction that has dedicated all
building code permitting fees to the conduct of local
building code enforcement; and
``(B) any building code enforcement department using funds
made available under this title for purposes under this
paragraph shall empanel a code administration and enforcement
team consisting of at least 1 full-time building code
enforcement officer, a city planner, and a health planner or
similar officer; and
``(27) provision of assistance to local governmental
agencies responsible for floodplain management activities
(including such agencies of Indians tribes, as such term is
defined in section 4 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C.
4103)) in communities that participate in the national flood
insurance program under the National Flood Insurance Act of
1968 (42 U.S.C. 4001 et seq.), only for carrying out outreach
activities to encourage and facilitate the purchase of flood
insurance protection under such Act by owners and renters of
properties in such communities and to promote educational
activities that increase awareness of flood risk reduction;
except that--
``(A) amounts used as provided under this paragraph shall
be used only for activities designed to--
``(i) identify owners and renters of properties in
communities that participate in the national flood insurance
program, including owners of residential and commercial
properties;
``(ii) notify such owners and renters when their properties
become included in, or when they are excluded from, an area
having special flood hazards and the effect of such inclusion
or exclusion on the applicability of the mandatory flood
insurance purchase requirement under section 102 of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a) to such
properties;
``(iii) educate such owners and renters regarding the flood
risk and reduction of this risk in their community, including
the continued flood risks to areas that are no longer subject
to the flood insurance mandatory purchase requirement;
``(iv) educate such owners and renters regarding the
benefits and costs of maintaining or acquiring flood
insurance, including, where applicable, lower-cost preferred
risk policies under this title for such properties and the
contents of such properties;
``(v) encourage such owners and renters to maintain or
acquire such coverage;
``(vi) notify such owners of where to obtain information
regarding how to obtain such coverage, including a telephone
number, mailing address, and Internet site of the
Administrator of the Federal Emergency Management Agency (in
this paragraph referred to as the `Administrator') where such
information is available; and
``(vii) educate local real estate agents in communities
participating in the national flood insurance program
regarding the program and the availability of coverage under
the program for owners and renters of properties in such
communities, and establish coordination and liaisons with
such real estate agents to facilitate purchase of coverage
under the National Flood Insurance Act of 1968 and increase
awareness of flood risk reduction;
``(B) in any fiscal year, a local governmental agency may
not use an amount under this paragraph that exceeds 3 times
the amount that the agency certifies, as the Secretary, in
consultation with the Administrator, shall require, that the
agency will contribute from non-Federal funds to be used with
such amounts used under this paragraph only for carrying out
activities described in subparagraph (A); and for purposes of
this subparagraph, the term `non-Federal funds' includes
State or local government agency amounts, in-kind
contributions, any salary paid to staff to carry out the
eligible activities of the local governmental agency
involved, the value of the time and services contributed by
volunteers to carry out such services (at a rate determined
by the Secretary), and the value of any donated material or
building and the value of any lease on a building;
``(C) a local governmental agency that uses amounts as
provided under this paragraph may coordinate or contract with
other agencies and entities having particular capacities,
specialties, or experience with respect to certain
populations or constituencies, including elderly or disabled
families or persons, to carry out activities described in
subparagraph (A) with respect to such populations or
constituencies; and
``(D) each local government agency that uses amounts as
provided under this paragraph shall submit a report to the
Secretary and the Administrator, not later than 12 months
after such amounts are first received, which shall include
such information as the Secretary and the Administrator
jointly consider appropriate to describe the activities
conducted using such amounts and the effect of such
activities on the retention or acquisition of flood insurance
coverage.''.
SEC. 3027. TECHNICAL CORRECTIONS.
(a) Flood Disaster Protection Act of 1973.--The Flood
Disaster Protection Act of 1973 (42 U.S.C. 4002 et seq.) is
amended--
(1) by striking ``Director'' each place such term appears,
except in section 102(f)(3) (42 U.S.C. 4012a(f)(3)), and
inserting ``Administrator''; and
(2) in section 201(b) (42 U.S.C. 4105(b)), by striking
``Director's'' and inserting ``Administrator's''.
(b) National Flood Insurance Act of 1968.--The National
Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is
amended--
(1) by striking ``Director'' each place such term appears
and inserting ``Administrator''; and
(2) in section 1363 (42 U.S.C. 4104), by striking
``Director's'' each place such term appears and inserting
``Administrator's''.
(c) Federal Flood Insurance Act of 1956.--Section 15(e) of
the Federal Flood Insurance Act of 1956 (42 U.S.C. 2414(e))
is amended by striking ``Director'' each place such term
appears and inserting ``Administrator''.
SEC. 3028. REQUIRING COMPETITION FOR NATIONAL FLOOD INSURANCE
PROGRAM POLICIES.
(a) Report.--Not later than the expiration of the 90-day
period beginning upon the date of the enactment of this Act,
the Administrator of the Federal Emergency Management Agency,
in consultation with insurance companies, insurance agents
and other organizations with which the Administrator has
contracted, shall submit to the Congress a report describing
procedures and policies that the Administrator shall
implement to limit the percentage of policies for flood
insurance coverage under the national flood insurance program
that are directly managed by the Agency to not more than 10
percent of the aggregate number of flood insurance policies
in force under such program.
(b) Implementation.--Upon submission of the report under
subsection (a) to the Congress, the Administrator shall
implement the policies and procedures described in the
report. The Administrator shall, not later than the
expiration of the 12-month period beginning upon submission
of such report, reduce the number of policies for flood
insurance coverage that are directly managed by the Agency,
or by the Agency's direct servicing contractor that is not an
insurer, to not more than 10 percent of the aggregate number
of flood insurance policies in force as of the expiration of
such 12-month period.
(c) Continuation of Current Agent Relationships.--In
carrying out subsection (b), the Administrator shall ensure
that--
(1) agents selling or servicing policies described in such
subsection are not prevented from continuing to sell or
service such policies; and
(2) insurance companies are not prevented from waiving any
limitation such companies could otherwise enforce to limit
any such activity.
SEC. 3029. STUDIES OF VOLUNTARY COMMUNITY-BASED FLOOD
INSURANCE OPTIONS.
(a) Studies.--The Administrator of the Federal Emergency
Management Agency and the Comptroller General of the United
States shall each conduct a separate study to assess options,
methods, and strategies for offering voluntary community-
based flood insurance policy options and incorporating such
options into the national flood insurance program. Such
studies shall take into consideration and analyze how the
policy options would affect communities having varying
economic bases, geographic locations, flood hazard
characteristics or classifications, and flood management
approaches.
(b) Reports.--Not later than the expiration of the 18-month
period beginning on the date of the enactment of this Act,
the Administrator of the Federal Emergency Management Agency
and the Comptroller General of the United States shall each
submit a report to the Committee on Financial Services of the
House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate on the results and
conclusions of the study such agency conducted under
subsection (a), and each such report shall include
recommendations for the best manner to incorporate voluntary
community-based flood insurance options into the national
flood insurance program and for a strategy to implement such
options that would encourage communities to undertake flood
mitigation activities.
[[Page H8782]]
SEC. 3030. REPORT ON INCLUSION OF BUILDING CODES IN
FLOODPLAIN MANAGEMENT CRITERIA.
Not later than the expiration of the 6-month period
beginning on the date of the enactment of this Act, the
Administrator of the Federal Emergency Management Agency
shall conduct a study and submit a report to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate regarding the impact, effectiveness, and feasibility
of amending section 1361 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4102) to include widely used and
nationally recognized building codes as part of the
floodplain management criteria developed under such section,
and shall determine--
(1) the regulatory, financial, and economic impacts of such
a building code requirement on homeowners, States and local
communities, local land use policies, and the Federal
Emergency Management Agency;
(2) the resources required of State and local communities
to administer and enforce such a building code requirement;
(3) the effectiveness of such a building code requirement
in reducing flood-related damage to buildings and contents;
(4) the impact of such a building code requirement on the
actuarial soundness of the National Flood Insurance Program;
(5) the effectiveness of nationally recognized codes in
allowing innovative materials and systems for flood-resistant
construction;
(6) the feasibility and effectiveness of providing an
incentive in lower premium rates for flood insurance coverage
under such Act for structures meeting whichever of such
widely used and nationally recognized building code or any
applicable local building code provides greater protection
from flood damage;
(7) the impact of such a building code requirement on rural
communities with different building code challenges than more
urban environments; and
(8) the impact of such a building code requirement on
Indian reservations.
SEC. 3031. STUDY ON GRADUATED RISK.
(a) Study.--The National Academy of Sciences shall conduct
a study exploring methods for understanding graduated risk
behind levees and the associated land development, insurance,
and risk communication dimensions, which shall--
(1) research, review, and recommend current best practices
for estimating direct annualized flood losses behind levees
for residential and commercial structures;
(2) rank such practices based on their best value,
balancing cost, scientific integrity, and the inherent
uncertainties associated with all aspects of the loss
estimate, including geotechnical engineering, flood frequency
estimates, economic value, and direct damages;
(3) research, review, and identify current best floodplain
management and land use practices behind levees that
effectively balance social, economic, and environmental
considerations as part of an overall flood risk management
strategy;
(4) identify examples where such practices have proven
effective and recommend methods and processes by which they
could be applied more broadly across the United States, given
the variety of different flood risks, State and local legal
frameworks, and evolving judicial opinions;
(5) research, review, and identify a variety of flood
insurance pricing options for flood hazards behind levees
which are actuarially sound and based on the flood risk data
developed using the top three best value approaches
identified pursuant to paragraph (1);
(6) evaluate and recommend methods to reduce insurance
costs through creative arrangements between insureds and
insurers while keeping a clear accounting of how much
financial risk is being borne by various parties such that
the entire risk is accounted for, including establishment of
explicit limits on disaster aid or other assistance in the
event of a flood; and
(7) taking into consideration the recommendations pursuant
to paragraphs (1) through (3), recommend approaches to
communicating the associated risks to community officials,
homeowners, and other residents.
(b) Report.--Not later than the expiration of the 12-month
period beginning on the date of the enactment of this Act,
the National Academy of Sciences shall submit a report to the
Committees on Financial Services and Science, Space, and
Technology of the House of Representatives and the Committees
on Banking, Housing, and Urban Affairs and Commerce, Science
and Transportation of the Senate on the study under
subsection (a) including the information and recommendations
required under such subsection.
SEC. 3032. REPORT ON FLOOD-IN-PROGRESS DETERMINATION.
The Administrator of the Federal Emergency Management
Agency shall review the processes and procedures for
determining that a flood event has commenced or is in
progress for purposes of flood insurance coverage made
available under the national flood insurance program under
the National Flood Insurance Act of 1968 and for providing
public notification that such an event has commenced or is in
progress. In such review, the Administrator shall take into
consideration the effects and implications that weather
conditions, such as rainfall, snowfall, projected snowmelt,
existing water levels, and other conditions have on the
determination that a flood event has commenced or is in
progress. Not later than the expiration of the 6-month period
beginning upon the date of the enactment of this Act, the
Administrator shall submit a report to the Congress setting
forth the results and conclusions of the review undertaken
pursuant to this section and any actions undertaken or
proposed actions to be taken to provide for a more precise
and technical determination that a flooding event has
commenced or is in progress.
SEC. 3033. STUDY ON REPAYING FLOOD INSURANCE DEBT.
Not later than the expiration of the 6-month period
beginning on the date of the enactment of this Act, the
Administrator of the Federal Emergency Management Agency
shall submit a report to the Congress setting forth a plan
for repaying within 10 years all amounts, including any
amounts previously borrowed but not yet repaid, owed pursuant
to clause (2) of subsection (a) of section 1309 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)(2)).
SEC. 3034. NO CAUSE OF ACTION.
No cause of action shall exist and no claim may be brought
against the United States for violation of any notification
requirement imposed upon the United States by this title or
any amendment made by this title.
SEC. 3035. AUTHORITY FOR THE CORPS OF ENGINEERS TO PROVIDE
SPECIALIZED OR TECHNICAL SERVICES.
(a) In General.--Notwithstanding any other provision of
law, upon the request of a State or local government, the
Secretary of the Army may evaluate a levee system that was
designed or constructed by the Secretary for the purposes of
the National Flood Insurance Program established under
chapter 1 of the National Flood Insurance Act of 1968 (42
U.S.C. 4011 et seq.).
(b) Requirements.--A levee system evaluation under
subsection (a) shall--
(1) comply with applicable regulations related to areas
protected by a levee system;
(2) be carried out in accordance with such procedures as
the Secretary, in consultation with the Administrator of the
Federal Emergency Management Agency, may establish; and
(3) be carried out only if the State or local government
agrees to reimburse the Secretary for all cost associated
with the performance of the activities.
TITLE IV--JUMPSTARTING OPPORTUNITY WITH BROADBAND SPECTRUM ACT OF 2011
SEC. 4001. SHORT TITLE.
This title may be cited as the ``Jumpstarting Opportunity
with Broadband Spectrum Act of 2011'' or the ``JOBS Act of
2011''.
SEC. 4002. DEFINITIONS.
In this title:
(1) 700 mhz d block spectrum.--The term ``700 MHz D block
spectrum'' means the portion of the electromagnetic spectrum
between the frequencies from 758 megahertz to 763 megahertz
and between the frequencies from 788 megahertz to 793
megahertz.
(2) 700 mhz public safety guard band spectrum.--The term
``700 MHz public safety guard band spectrum'' means the
portion of the electromagnetic spectrum between the
frequencies from 768 megahertz to 769 megahertz and between
the frequencies from 798 megahertz to 799 megahertz.
(3) 700 mhz public safety narrowband spectrum.--The term
``700 MHz public safety narrowband spectrum'' means the
portion of the electromagnetic spectrum between the
frequencies from 769 megahertz to 775 megahertz and between
the frequencies from 799 megahertz to 805 megahertz.
(4) Administrator.--The term ``Administrator'' means the
entity selected under section 4203(a) to serve as
Administrator of the National Public Safety Communications
Plan.
(5) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary of Commerce for Communications
and Information.
(6) Board.--The term ``Board'' means the Public Safety
Communications Planning Board established under section
4202(a)(1).
(7) Broadcast television licensee.--The term ``broadcast
television licensee'' means the licensee of--
(A) a full-power television station; or
(B) a low-power television station that has been accorded
primary status as a Class A television licensee under section
73.6001(a) of title 47, Code of Federal Regulations.
(8) Broadcast television spectrum.--The term ``broadcast
television spectrum'' means the portions of the
electromagnetic spectrum between the frequencies from 54
megahertz to 72 megahertz, from 76 megahertz to 88 megahertz,
from 174 megahertz to 216 megahertz, and from 470 megahertz
to 698 megahertz.
(9) Commercial mobile data service.--The term ``commercial
mobile data service'' means any mobile service (as defined in
section 3 of the Communications Act of 1934 (47 U.S.C. 153))
that is--
(A) a data service;
(B) provided for profit; and
(C) available to the public or such classes of eligible
users as to be effectively available to a substantial portion
of the public, as specified by regulation by the Commission.
(10) Commercial mobile service.--The term ``commercial
mobile service'' has the meaning given such term in section
332 of the Communications Act of 1934 (47 U.S.C. 332).
(11) Commercial standards.--The term ``commercial
standards'' means the technical standards followed by the
commercial mobile service and commercial mobile data service
industries for network, device, and Internet Protocol
connectivity. Such term includes standards developed by the
Third Generation Partnership Project (3GPP), the Institute of
Electrical and Electronics Engineers (IEEE), the Alliance for
Telecommunications Industry Solutions (ATIS), the Internet
Engineering Task Force (IETF), and the International
Telecommunication Union (ITU).
(12) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(13) Emergency call.--The term ``emergency call'' means any
real-time communication with
[[Page H8783]]
a public safety answering point or other emergency management
or response agency, including--
(A) through voice, text, or video and related data; and
(B) nonhuman-initiated automatic event alerts, such as
alarms, telematics, or sensor data, which may also include
real-time voice, text, or video communications.
(14) Forward auction.--The term ``forward auction'' means
the portion of an incentive auction of broadcast television
spectrum under section 4104(c).
(15) Incentive auction.--The term ``incentive auction''
means a system of competitive bidding under subparagraph (G)
of section 309(j)(8) of the Communications Act of 1934, as
added by section 4103.
(16) Multichannel video programming distributor.--The term
``multichannel video programming distributor'' has the
meaning given such term in section 602 of the Communications
Act of 1934 (47 U.S.C. 522).
(17) National public safety communications plan.--The term
``National Public Safety Communications Plan'' or ``Plan''
means the plan adopted under section 4202(c).
(18) Next generation 9-1-1 services.--The term ``Next
Generation 9-1-1 services'' means an IP-based system
comprised of hardware, software, data, and operational
policies and procedures that--
(A) provides standardized interfaces from emergency call
and message services to support emergency communications;
(B) processes all types of emergency calls, including
voice, text, data, and multimedia information;
(C) acquires and integrates additional emergency call data
useful to call routing and handling;
(D) delivers the emergency calls, messages, and data to the
appropriate public safety answering point and other
appropriate emergency entities;
(E) supports data or video communications needs for
coordinated incident response and management; and
(F) provides broadband service to public safety answering
points or other first responder entities.
(19) NTIA.--The term ``NTIA'' means the National
Telecommunications and Information Administration.
(20) Public safety answering point.--The term ``public
safety answering point'' has the meaning given such term in
section 222 of the Communications Act of 1934 (47 U.S.C.
222).
(21) Public safety broadband spectrum.--The term ``public
safety broadband spectrum'' means the portion of the
electromagnetic spectrum between the frequencies from 763
megahertz to 768 megahertz and between the frequencies from
793 megahertz to 798 megahertz.
(22) Public safety communications.--The term ``public
safety communications'' means communications by providers of
public safety services.
(23) Public safety services.--The term ``public safety
services'' has the meaning given such term in section 337 of
the Communications Act of 1934 (47 U.S.C. 337).
(24) Reverse auction.--The term ``reverse auction'' means
the portion of an incentive auction of broadcast television
spectrum under section 4104(a), in which a broadcast
television licensee may submit bids stating the amount it
would accept for voluntarily relinquishing some or all of its
broadcast television spectrum usage rights.
(25) Spectrum licensed to the administrator.--The term
``spectrum licensed to the Administrator'' means the portion
of the electromagnetic spectrum that the Administrator is
licensed to use under section 4201(a).
(26) State.--The term ``State'' has the meaning given such
term in section 3 of the Communications Act of 1934 (47
U.S.C. 153).
(27) State public safety broadband communications
network.--The term ``State public safety broadband
communications network'' means a broadband network for public
safety communications established by a State Public Safety
Broadband Office, in accordance with the National Public
Safety Communications Plan, using the spectrum licensed to
the Administrator.
(28) State public safety broadband office.--The term
``State Public Safety Broadband Office'' means an office
established or designated under section 4221(a).
(29) Ultra high frequency.--The term ``ultra high
frequency'' means, with respect to a television channel, that
the channel is located in the portion of the electromagnetic
spectrum between the frequencies from 470 megahertz to 698
megahertz.
(30) Very high frequency.--The term ``very high frequency''
means, with respect to a television channel, that the channel
is located in the portion of the electromagnetic spectrum
between the frequencies from 54 megahertz to 72 megahertz,
from 76 megahertz to 88 megahertz, or from 174 megahertz to
216 megahertz.
SEC. 4003. RULE OF CONSTRUCTION.
Each range of frequencies described in this title shall be
construed to be inclusive of the upper and lower frequencies
in the range.
SEC. 4004. ENFORCEMENT.
(a) In General.--The Commission shall implement and enforce
this title as if this title is a part of the Communications
Act of 1934 (47 U.S.C. 151 et seq.). A violation of this
title, or a regulation promulgated under this title, shall be
considered to be a violation of the Communications Act of
1934, or a regulation promulgated under such Act,
respectively.
(b) Exceptions.--
(1) Other agencies.--Subsection (a) does not apply in the
case of a provision of this title that is expressly required
to be carried out by an agency (as defined in section 551 of
title 5, United States Code) other than the Commission.
(2) NTIA regulations.--The Assistant Secretary may
promulgate such regulations as are necessary to implement and
enforce any provision of this title that is expressly
required to be carried out by the Assistant Secretary.
SEC. 4005. NATIONAL SECURITY RESTRICTIONS ON USE OF FUNDS AND
AUCTION PARTICIPATION.
(a) Use of Funds.--No funds made available by section 4102
or subtitle B may be used to make payments under a contract
to a person described in subsection (c).
(b) Auction Participation.--A person described in
subsection (c) may not participate in a system of competitive
bidding under section 309(j) of the Communications Act of
1934 (47 U.S.C. 309(j))--
(1) that is required to be conducted by this title; or
(2) in which any spectrum usage rights for which licenses
are being assigned were made available under clause (i) of
subparagraph (G) of paragraph (8) of such section, as added
by section 4103.
(c) Person Described.--A person described in this
subsection is a person who has been, for reasons of national
security, barred by any agency of the Federal Government from
bidding on a contract, participating in an auction, or
receiving a grant.
Subtitle A--Spectrum Auction Authority
SEC. 4101. DEADLINES FOR AUCTION OF CERTAIN SPECTRUM.
(a) Clearing Certain Federal Spectrum.--
(1) In general.--The President shall--
(A) not later than 3 years after the date of the enactment
of this Act, begin the process of withdrawing or modifying
the assignment to a Federal Government station of the
electromagnetic spectrum described in paragraph (2); and
(B) not later than 30 days after completing the withdrawal
or modification, notify the Commission that the withdrawal or
modification is complete.
(2) Spectrum described.--The electromagnetic spectrum
described in this paragraph is the following:
(A) The frequencies between 1755 megahertz and 1780
megahertz, except that if--
(i) the Secretary of Commerce--
(I) determines that such frequencies cannot be reallocated
for non-Federal use because incumbent Federal operations
cannot be eliminated, relocated to other spectrum, or
accommodated through other means;
(II) identifies other spectrum for reallocation for non-
Federal use that the Secretary of Commerce determines can
reasonably be expected to produce a comparable amount of net
auction proceeds; and
(III) submits to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Energy and
Commerce of the House of Representatives a report that
identifies such spectrum and explains the determinations
under subclauses (I) and (II); and
(ii) not later than 1 year after the date of the submission
of such report, there is enacted a law approving the
substitution of the spectrum identified under clause (i)(II)
for the frequencies between 1755 megahertz and 1780
megahertz;
the spectrum described in this subparagraph shall be the
spectrum identified under such clause.
(B) The 15 megahertz of spectrum between 1675 megahertz and
1710 megahertz identified under paragraph (3).
(C) The frequencies between 3550 megahertz and 3650
megahertz, except for the geographic exclusion zones (as such
zones may be amended) identified in the report of the NTIA
published in October 2010 and entitled ``An Assessment of
Near-Term Viability of Accommodating Wireless Broadband
Systems in 1675-1710 MHz, 1755-1780 MHz, 3500-3650 MHz, and
4200-4220 MHz, 4380-4400 MHz Bands''.
(3) Identification by secretary of commerce.--Not later
than 1 year after the date of the enactment of this Act, the
Secretary of Commerce shall submit to the President a report
identifying 15 megahertz of spectrum between 1675 megahertz
and 1710 megahertz for reallocation from Federal use to non-
Federal use.
(b) Reallocation and Auction.--
(1) In general.--Notwithstanding paragraph (15)(A) of
section 309(j) of the Communications Act of 1934 (47 U.S.C.
309(j)), not later than 3 years after the date of the
enactment of this Act, the Commission shall, except as
provided in paragraph (4)--
(A) allocate the spectrum described in paragraph (2) for
commercial use; and
(B) through a system of competitive bidding under such
section, grant new initial licenses for the use of such
spectrum, subject to flexible-use service rules.
(2) Spectrum described.--The spectrum described in this
paragraph is the following:
(A) The frequencies between 1915 megahertz and 1920
megahertz, paired with the frequencies between 1995 megahertz
and 2000 megahertz.
(B) The frequencies described in subsection (a)(2)(A).
(C) The frequencies between 2155 megahertz and 2180
megahertz.
(D) The 15 megahertz of spectrum identified under
subsection (a)(3), paired with 15 megahertz of contiguous
spectrum to be identified by the Commission.
(E) The frequencies described in subsection (a)(2)(C).
(3) Proceeds to cover 110 percent of federal relocation or
sharing costs.--Nothing in paragraph (1) shall be construed
to relieve the Commission from the requirements of section
309(j)(16)(B) of the Communications Act of 1934 (47 U.S.C.
309(j)(16)(B)).
(4) Determination by commission.--If the Commission
determines that either band of frequencies described in
paragraph (2)(A) cannot
[[Page H8784]]
be used without causing harmful interference to commercial
mobile service licensees in the frequencies between 1930
megahertz and 1995 megahertz, the Commission may not--
(A) allocate for commercial use under paragraph (1)(A)
either band described in paragraph (2)(A); or
(B) grant licenses under paragraph (1)(B) for the use of
either band described in paragraph (2)(A).
(c) Auction Proceeds.--Section 309(j)(8) of the
Communications Act of 1934 (47 U.S.C. 309(j)(8)) is amended--
(1) in subparagraph (A), by striking ``(D), and (E),'' and
inserting ``(D), (E), (F), and (G),'';
(2) in subparagraph (C)(i), by striking ``subparagraph
(E)(ii)'' and inserting ``subparagraphs (D)(ii), (E)(ii),
(F), and (G)'';
(3) in subparagraph (D)--
(A) by striking the heading and inserting ``Proceeds from
reallocated federal spectrum'';
(B) by striking ``Cash'' and inserting the following:
``(i) In general.--Except as provided in clause (ii),
cash''; and
(C) by adding at the end the following:
``(ii) Certain other proceeds.--Notwithstanding
subparagraph (A) and except as provided in subparagraph (B),
in the case of proceeds (including deposits and upfront
payments from successful bidders) attributable to the auction
of eligible frequencies described in paragraph (2) of section
113(g) of the National Telecommunications and Information
Administration Organization Act that are required to be
auctioned by section 4101(b)(1)(B) of the Jumpstarting
Opportunity with Broadband Spectrum Act of 2011, such portion
of such proceeds as is necessary to cover the relocation or
sharing costs (as defined in paragraph (3) of such section
113(g)) of Federal entities relocated from such eligible
frequencies shall be deposited in the Spectrum Relocation
Fund. The remainder of such proceeds shall be deposited in
the Public Safety Trust Fund established by section
4241(a)(1) of the Jumpstarting Opportunity with Broadband
Spectrum Act of 2011.''; and
(4) by adding at the end the following:
``(F) Certain proceeds designated for public safety trust
fund.--Notwithstanding subparagraph (A) and except as
provided in subparagraphs (B) and (D)(ii), the proceeds
(including deposits and upfront payments from successful
bidders) from the use of a system of competitive bidding
under this subsection pursuant to section 4101(b)(1)(B) of
the Jumpstarting Opportunity with Broadband Spectrum Act of
2011 shall be deposited in the Public Safety Trust Fund
established by section 4241(a)(1) of such Act.''.
SEC. 4102. 700 MHZ PUBLIC SAFETY NARROWBAND SPECTRUM AND
GUARD BAND SPECTRUM.
(a) Reallocation and Auction.--
(1) In general.--On the date that is 5 years after a
certification by the Administrator to the Commission of the
availability of standards for public safety voice over
broadband, the Commission shall, notwithstanding paragraph
(15)(A) of section 309(j) of the Communications Act of 1934
(47 U.S.C. 309(j))--
(A) reallocate the 700 MHz public safety narrowband
spectrum and the 700 MHz public safety guard band spectrum
for commercial use; and
(B) begin a system of competitive bidding under such
section to grant new initial licenses for the use of such
spectrum.
(2) Auction proceeds.--Notwithstanding subparagraphs (A)
and (C)(i) of paragraph (8) of such section, not more than
$1,000,000,000 of the proceeds (including deposits and
upfront payments from successful bidders) from the use of a
system of competitive bidding pursuant to paragraph (1)(B)
shall be available to the Assistant Secretary to carry out
subsection (b) and shall remain available until expended.
(b) Grants for Public Safety Radio Equipment.--
(1) In general.--From amounts made available under
subsection (a)(2), the Assistant Secretary shall make grants
to States for the acquisition of public safety radio
equipment.
(2) Application.--The Assistant Secretary may only make a
grant under this subsection to a State that submits an
application at such time, in such form, and containing such
information and assurances as the Assistant Secretary may
require.
(3) Quarterly reports.--
(A) From grantees to ntia.--A State receiving grant funds
under this subsection shall, not later than 3 months after
receiving such funds and not less frequently than quarterly
thereafter until the date that is 1 year after all such funds
have been expended, submit to the Assistant Secretary a
report on the use of grant funds by such State.
(B) From ntia to congress.--Not later than 6 months after
making the first grant under this subsection and not less
frequently than quarterly thereafter until the date that is
18 months after all such funds have been expended by the
grantees, the Assistant Secretary shall submit to the
Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Energy and Commerce of the House
of Representatives a report that--
(i) summarizes the reports submitted by grantees under
subparagraph (A); and
(ii) describes and evaluates the use of grant funds
disbursed under this subsection.
(c) Conforming Amendments.--Section 337(a) of the
Communications Act of 1934 (47 U.S.C. 337(a)) is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``Not later than January 1, 1998, the'' and
inserting ``The''; and
(B) by inserting ``for either public safety services or
commercial use,'' after ``inclusive,'';
(2) in paragraph (1)--
(A) by striking ``24 megahertz'' and inserting ``Not more
than 34 megahertz''; and
(B) by striking ``, in consultation with the Secretary of
Commerce and the Attorney General; and'' and inserting a
period; and
(3) in paragraph (2), by striking ``36 megahertz'' and
inserting ``Not more than 40 megahertz''.
SEC. 4103. GENERAL AUTHORITY FOR INCENTIVE AUCTIONS.
Section 309(j)(8) of the Communications Act of 1934, as
amended by section 4101(c), is further amended by adding at
the end the following:
``(G) Incentive auctions.--
``(i) In general.--Notwithstanding subparagraph (A) and
except as provided in subparagraph (B), the Commission may
encourage a licensee to relinquish voluntarily some or all of
its licensed spectrum usage rights in order to permit the
assignment of new initial licenses subject to flexible-use
service rules by sharing with such licensee a portion, based
on the value of the relinquished rights as determined in the
reverse auction required by clause (ii)(I), of the proceeds
(including deposits and upfront payments from successful
bidders) from the use of a competitive bidding system under
this subsection.
``(ii) Limitations.--The Commission may not enter into an
agreement for a licensee to relinquish spectrum usage rights
in exchange for a share of auction proceeds under clause (i)
unless--
``(I) the Commission conducts a reverse auction to
determine the amount of compensation that licensees would
accept in return for voluntarily relinquishing spectrum usage
rights; and
``(II) at least two competing licensees participate in the
reverse auction.
``(iii) Treatment of revenues.--Notwithstanding
subparagraph (A) and except as provided in subparagraph (B),
the proceeds (including deposits and upfront payments from
successful bidders) from any auction, prior to the end of
fiscal year 2021, of spectrum usage rights made available
under clause (i) that are not shared with licensees under
such clause shall be deposited as follows:
``(I) $3,000,000,000 of the proceeds from the incentive
auction of broadcast television spectrum required by section
4104 of the Jumpstarting Opportunity with Broadband Spectrum
Act of 2011 shall be deposited in the TV Broadcaster
Relocation Fund established by subsection (d)(1) of such
section.
``(II) All other proceeds shall be deposited--
``(aa) prior to the end of fiscal year 2021, in the Public
Safety Trust Fund established by section 4241(a)(1) of such
Act; and
``(bb) after the end of fiscal year 2021, in the general
fund of the Treasury, where such proceeds shall be dedicated
for the sole purpose of deficit reduction.
``(iv) Congressional notification.--At least 3 months
before any incentive auction conducted under this
subparagraph, the Chairman of the Commission, in consultation
with the Director of the Office of Management and Budget,
shall notify the appropriate committees of Congress of the
methodology for calculating the amounts that will be shared
with licensees under clause (i).
``(v) Definition.--In this subparagraph, the term
`appropriate committees of Congress' means--
``(I) the Committee on Commerce, Science, and
Transportation of the Senate;
``(II) the Committee on Appropriations of the Senate;
``(III) the Committee on Energy and Commerce of the House
of Representatives; and
``(IV) the Committee on Appropriations of the House of
Representatives.''.
SEC. 4104. SPECIAL REQUIREMENTS FOR INCENTIVE AUCTION OF
BROADCAST TV SPECTRUM.
(a) Reverse Auction To Identify Incentive Amount.--
(1) In general.--The Commission shall conduct a reverse
auction to determine the amount of compensation that each
broadcast television licensee would accept in return for
voluntarily relinquishing some or all of its broadcast
television spectrum usage rights in order to make spectrum
available for assignment through a system of competitive
bidding under subparagraph (G) of section 309(j)(8) of the
Communications Act of 1934, as added by section 4103.
(2) Eligible relinquishments.--A relinquishment of usage
rights for purposes of paragraph (1) shall include the
following:
(A) Relinquishing all usage rights with respect to a
particular television channel without receiving in return any
usage rights with respect to another television channel.
(B) Relinquishing all usage rights with respect to an ultra
high frequency television channel in return for receiving
usage rights with respect to a very high frequency television
channel.
(C) Relinquishing usage rights in order to share a
television channel with another licensee.
(3) Confidentiality.--The Commission shall take all
reasonable steps necessary to protect the confidentiality of
Commission-held data of a licensee participating in the
reverse auction under paragraph (1), including withholding
the identity of such licensee until the reassignments and
reallocations (if any) under subsection (b)(1)(B) become
effective, as described in subsection (f)(2).
(4) Protection of carriage rights of licensees sharing a
channel.--A broadcast television station that voluntarily
relinquishes spectrum usage rights under this subsection in
order to share a television channel and that possessed
carriage rights under section 338, 614, or 615 of the
Communications Act of 1934 (47 U.S.C. 338; 534; 535) on
November 30, 2010, shall have, at its shared location, the
carriage rights under such section that would apply to such
station at such location if it were not sharing a channel.
(b) Reorganization of Broadcast TV Spectrum.--
[[Page H8785]]
(1) In general.--For purposes of making available spectrum
to carry out the forward auction under subsection (c)(1), the
Commission--
(A) shall evaluate the broadcast television spectrum
(including spectrum made available through the reverse
auction under subsection (a)(1)); and
(B) may, subject to international coordination along the
border with Mexico and Canada--
(i) make such reassignments of television channels as the
Commission considers appropriate; and
(ii) reallocate such portions of such spectrum as the
Commission determines are available for reallocation.
(2) Factors for consideration.--In making any reassignments
or reallocations under paragraph (1)(B), the Commission shall
make all reasonable efforts to preserve, as of the date of
the enactment of this Act, the coverage area and population
served of each broadcast television licensee, as determined
using the methodology described in OET Bulletin 69 of the
Office of Engineering and Technology of the Commission.
(3) No involuntary relocation from uhf to vhf.--In making
any reassignments under paragraph (1)(B)(i), the Commission
may not involuntarily reassign a broadcast television
licensee--
(A) from an ultra high frequency television channel to a
very high frequency television channel; or
(B) from a television channel between the frequencies from
174 megahertz to 216 megahertz to a television channel
between the frequencies from 54 megahertz to 88 megahertz.
(4) Payment of relocation costs.--
(A) In general.--Except as provided in subparagraph (B),
from amounts made available under subsection (d)(2), the
Commission shall reimburse costs reasonably incurred by--
(i) a broadcast television licensee that was reassigned
under paragraph (1)(B)(i) from one ultra high frequency
television channel to a different ultra high frequency
television channel, from one very high frequency television
channel to a different very high frequency television
channel, or, in accordance with subsection (g)(1)(B), from a
very high frequency television channel to an ultra high
frequency television channel, in order for the licensee to
relocate its television service from one channel to the
other; or
(ii) a multichannel video programming distributor in order
to continue to carry the signal of a broadcast television
licensee that--
(I) is described in clause (i);
(II) voluntarily relinquishes spectrum usage rights under
subsection (a) with respect to an ultra high frequency
television channel in return for receiving usage rights with
respect to a very high frequency television channel; or
(III) voluntarily relinquishes spectrum usage rights under
subsection (a) to share a television channel with another
licensee.
(B) Regulatory relief.--In lieu of reimbursement for
relocation costs under subparagraph (A), a broadcast
television licensee may accept, and the Commission may grant
as it considers appropriate, a waiver of the service rules of
the Commission to permit the licensee, subject to
interference protections, to make flexible use of the
spectrum assigned to the licensee to provide services other
than broadcast television services. Such waiver shall only
remain in effect while the licensee provides at least 1
broadcast television program stream on such spectrum at no
charge to the public.
(C) Limitation.--The Commission may not make reimbursements
under subparagraph (A) for lost revenues.
(D) Deadline.--The Commission shall make all reimbursements
required by subparagraph (A) not later than the date that is
3 years after the completion of the forward auction under
subsection (c)(1).
(5) Low-power television usage rights.--Nothing in this
subsection shall be construed to alter the spectrum usage
rights of low-power television stations.
(c) Forward Auction.--
(1) Auction required.--The Commission shall conduct a
forward auction in which--
(A) the Commission assigns licenses for the use of the
spectrum that the Commission reallocates under subsection
(b)(1)(B)(ii); and
(B) the amount of the proceeds that the Commission shares
under clause (i) of section 309(j)(8)(G) of the
Communications Act of 1934 with each licensee whose bid the
Commission accepts in the reverse auction under subsection
(a)(1) is not less than the amount of such bid.
(2) Minimum proceeds.--
(A) In general.--If the amount of the proceeds from the
forward auction under paragraph (1) is not greater than the
sum described in subparagraph (B), no licenses shall be
assigned through such forward auction, no reassignments or
reallocations under subsection (b)(1)(B) shall become
effective, and the Commission may not revoke any spectrum
usage rights by reason of a bid that the Commission accepts
in the reverse auction under subsection (a)(1).
(B) Sum described.--The sum described in this subparagraph
is the sum of--
(i) the total amount of compensation that the Commission
must pay successful bidders in the reverse auction under
subsection (a)(1);
(ii) the costs of conducting such forward auction that the
salaries and expenses account of the Commission is required
to retain under section 309(j)(8)(B) of the Communications
Act of 1934 (47 U.S.C. 309(j)(8)(B)); and
(iii) the estimated costs for which the Commission is
required to make reimbursements under subsection (b)(4)(A).
(C) Administrative costs.--The amount of the proceeds from
the forward auction under paragraph (1) that the salaries and
expenses account of the Commission is required to retain
under section 309(j)(8)(B) of the Communications Act of 1934
(47 U.S.C. 309(j)(8)(B)) shall be sufficient to cover the
costs incurred by the Commission in conducting the reverse
auction under subsection (a)(1), conducting the evaluation of
the broadcast television spectrum under subparagraph (A) of
subsection (b)(1), and making any reassignments or
reallocations under subparagraph (B) of such subsection, in
addition to the costs incurred by the Commission in
conducting such forward auction.
(3) Factor for consideration.--In conducting the forward
auction under paragraph (1), the Commission shall consider
assigning licenses that cover geographic areas of a variety
of different sizes.
(d) TV Broadcaster Relocation Fund.--
(1) Establishment.--There is established in the Treasury of
the United States a fund to be known as the TV Broadcaster
Relocation Fund.
(2) Payment of relocation costs.--Any amounts borrowed
under paragraph (3)(A) and any amounts in the TV Broadcaster
Relocation Fund that are not necessary for reimbursement of
the general fund of the Treasury for such borrowed amounts
shall be available to the Commission to make the payments
required by subsection (b)(4)(A).
(3) Borrowing authority.--
(A) In general.--Beginning on the date when any
reassignments or reallocations under subsection (b)(1)(B)
become effective, as provided in subsection (f)(2), and
ending when $1,000,000,000 has been deposited in the TV
Broadcaster Relocation Fund, the Commission may borrow from
the Treasury of the United States an amount not to exceed
$1,000,000,000 to use toward the payments required by
subsection (b)(4)(A).
(B) Reimbursement.--The Commission shall reimburse the
general fund of the Treasury, without interest, for any
amounts borrowed under subparagraph (A) as funds are
deposited into the TV Broadcaster Relocation Fund.
(4) Transfer of unused funds.--If any amounts remain in the
TV Broadcaster Relocation Fund after the date that is 3 years
after the completion of the forward auction under subsection
(c)(1), the Secretary of the Treasury shall--
(A) prior to the end of fiscal year 2021, transfer such
amounts to the Public Safety Trust Fund established by
section 4241(a)(1); and
(B) after the end of fiscal year 2021, transfer such
amounts to the general fund of the Treasury, where such
amounts shall be dedicated for the sole purpose of deficit
reduction.
(e) Numerical Limitation on Auctions and Reorganization.--
The Commission may not complete more than one reverse auction
under subsection (a)(1) or more than one reorganization of
the broadcast television spectrum under subsection (b).
(f) Timing.--
(1) Contemporaneous auctions and reorganization
permitted.--The Commission may conduct the reverse auction
under subsection (a)(1), any reassignments or reallocations
under subsection (b)(1)(B), and the forward auction under
subsection (c)(1) on a contemporaneous basis.
(2) Effectiveness of reassignments and reallocations.--
Notwithstanding paragraph (1), no reassignments or
reallocations under subsection (b)(1)(B) shall become
effective until the completion of the reverse auction under
subsection (a)(1) and the forward auction under subsection
(c)(1), and, to the extent practicable, all such
reassignments and reallocations shall become effective
simultaneously.
(3) Deadline.--The Commission may not conduct the reverse
auction under subsection (a)(1) or the forward auction under
subsection (c)(1) after the end of fiscal year 2021.
(4) Limit on discretion regarding auction timing.--Section
309(j)(15)(A) of the Communications Act of 1934 (47 U.S.C.
309(j)(15)(A)) shall not apply in the case of an auction
conducted under this section.
(g) Limitation on Reorganization Authority.--
(1) In general.--During the period described in paragraph
(2), the Commission may not--
(A) involuntarily modify the spectrum usage rights of a
broadcast television licensee or reassign such a licensee to
another television channel except--
(i) in accordance with this section; or
(ii) in the case of a violation by such licensee of the
terms of its license or a specific provision of a statute
administered by the Commission, or a regulation of the
Commission promulgated under any such provision; or
(B) reassign a broadcast television licensee from a very
high frequency television channel to an ultra high frequency
television channel, unless such a reassignment will not
decrease the total amount of ultra high frequency spectrum
made available for reallocation under this section.
(2) Period described.--The period described in this
paragraph is the period beginning on the date of the
enactment of this Act and ending on the earliest of--
(A) the first date when the reverse auction under
subsection (a)(1), the reassignments and reallocations (if
any) under subsection (b)(1)(B), and the forward auction
under subsection (c)(1) have been completed;
(B) the date of a determination by the Commission that the
amount of the proceeds from the forward auction under
subsection (c)(1) is not greater than the sum described in
subsection (c)(2)(B); or
(C) September 30, 2021.
(h) Protest Right Inapplicable.--The right of a licensee to
protest a proposed order of modification of its license under
section 316 of the Communications Act of 1934 (47 U.S.C. 316)
shall not apply in the case of a modification made under this
section.
(i) Commission Authority.--Nothing in subsection (b) shall
be construed to--
(1) expand or contract the authority of the Commission,
except as otherwise expressly provided; or
[[Page H8786]]
(2) prevent the implementation of the Commission's ``White
Spaces'' Second Report and Order and Memorandum Opinion and
Order (FCC 08-260, adopted November 4, 2008) in the spectrum
that remains allocated for broadcast television use after the
reorganization required by such subsection.
SEC. 4105. ADMINISTRATION OF AUCTIONS BY COMMISSION.
Section 309(j) of the Communications Act of 1934 (47 U.S.C.
309(j)) is amended by adding at the end the following new
paragraphs:
``(17) Certain conditions on auction participation
prohibited.--Notwithstanding any other provision of law, the
Commission may not prevent a person from participating in a
system of competitive bidding under this subsection if such
person--
``(A) meets the technical, financial, and character
qualifications required by sections 303(l)(1), 308(b), and
310 to hold a license; or
``(B) could meet such qualifications prior to the grant of
the license.
``(18) Certain licensing conditions prohibited.--In
assigning licenses through a system of competitive bidding
under this subsection, the Commission may not impose any
condition on the licenses assigned through such system that--
``(A) limits the ability of a licensee to manage the use of
its network, including management of the use of applications,
services, or devices on its network, or to prioritize the
traffic on its network as it chooses; or
``(B) requires a licensee to sell access to its network on
a wholesale basis.''.
SEC. 4106. EXTENSION OF AUCTION AUTHORITY.
Section 309(j)(11) of the Communications Act of 1934 (47
U.S.C. 309(j)(11)) is amended by striking ``2012'' and
inserting ``2021''.
SEC. 4107. UNLICENSED USE IN THE 5 GHZ BAND.
(a) Modification of Commission Regulations To Allow Certain
Unlicensed Use.--
(1) In general.--Subject to paragraph (2), not later than 1
year after the date of the enactment of this Act, the
Commission shall begin a proceeding to modify part 15 of
title 47, Code of Federal Regulations, to allow unlicensed U-
NII devices to operate in the 5350-5470 MHz band.
(2) Required determinations.--The Commission may make the
modification described in paragraph (1) only if the
Commission determines that--
(A) licensed users will be protected by technical
solutions, including use of existing, modified, or new
spectrum-sharing technologies and solutions, such as dynamic
frequency selection; and
(B) the primary mission of Federal spectrum users in the
5350-5470 MHz band will not be compromised by the
introduction of unlicensed devices.
(b) Study by NTIA.--
(1) In general.--The Assistant Secretary, in consultation
with the Commission, shall conduct a study evaluating known
and proposed spectrum-sharing technologies and the risk to
Federal users if unlicensed U-NII devices were allowed to
operate in the 5350-5470 MHz band.
(2) Submission.--Not later than 8 months after the date of
the enactment of this Act, the Assistant Secretary shall
submit the study required by paragraph (1) to--
(A) the Commission; and
(B) the Committee on Energy and Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate.
(c) 5350-5470 MHz Band Defined.--In this section, the term
``5350-5470 MHz band'' means the portion of the
electromagnetic spectrum between the frequencies from 5350
megahertz to 5470 megahertz.
Subtitle B--Advanced Public Safety Communications
PART 1--NATIONAL IMPLEMENTATION
SEC. 4201. LICENSING OF SPECTRUM TO ADMINISTRATOR.
(a) In General.--Not later than 60 days after the initial
selection under section 4203(a) of an entity to serve as
Administrator, the Commission shall assign to the
Administrator a license for the exclusive use of the public
safety broadband spectrum and the 700 MHz D block spectrum.
(b) Term of License and License Conditions.--
(1) Initial license.--The initial license assigned under
subsection (a) shall be for a term of 10 years.
(2) Renewal of license.--Prior to the expiration of the
term of the initial license assigned under subsection (a) or
the expiration of any renewal of such license, if the
Administrator wishes to continue serving as Administrator
after the license expires, the Administrator shall submit to
the Commission an application for the renewal of such license
in accordance with the Communications Act of 1934 (47 U.S.C.
151 et seq.) and any applicable Commission regulations. Such
renewal application shall demonstrate that, during the term
of the license that the Administrator is seeking to renew,
the Administrator has fulfilled its duties and obligations
under this title and the Communications Act of 1934 and has
complied with all applicable Commission regulations. A
renewal of the initial license granted under subsection (a)
or any renewal of such license shall be for a term not to
exceed 10 years.
(3) Use of spectrum.--Except as provided in section
4221(d), the license assigned under subsection (a) and any
renewal of such license shall prohibit the Administrator from
using the public safety broadband spectrum or the 700 MHz D
block spectrum for any purpose other than authorizing the
operation of State public safety broadband communications
networks in accordance with the National Public Safety
Communications Plan.
(4) Limitation on license conditions.--The Commission may
not place any conditions on the license assigned under
subsection (a) or any renewal of such license or, with
respect to the spectrum governed by such license, otherwise
prohibit any action of the Administrator, a State Public
Safety Broadband Office, or an entity with which such an
Office has entered into a contract under section
4221(b)(1)(D), except as necessary to--
(A) protect other users from harmful interference;
(B) ensure that such spectrum is used in accordance with
the National Public Safety Communications Plan; or
(C) enforce a provision of this title or the Communications
Act of 1934 (47 U.S.C. 151 et seq.) that governs the use of
such spectrum.
(5) License conditioned on service as administrator.--If an
entity ceases to serve as Administrator, the Commission
shall, as soon as practicable after the Assistant Secretary
selects a different entity to serve as Administrator under
section 4203(a)(2), transfer to such different entity the
license assigned under subsection (a) or any renewal of such
license.
(c) Elimination of D Block Auction Requirement.--
Notwithstanding section 309(j)(15)(C)(v) of the
Communications Act of 1934 (47 U.S.C. 309(j)(15)(C)(v)), the
Commission may not assign a license for the use of the 700
MHz D block spectrum except under subsection (a).
(d) Definition of Public Safety Services.--Section
337(f)(1) of the Communications Act of 1934 (47 U.S.C.
337(f)(1)) is amended--
(1) in subparagraph (A), by striking ``to protect the
safety of life, health, or property'' and inserting ``to
provide law enforcement, fire and rescue response, or
emergency medical assistance (including such assistance
provided by ambulance services, hospitals, and urgent care
facilities)''; and
(2) in subparagraph (B)--
(A) in clause (i), by inserting ``or tribal organizations
(as defined in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b))'' before the
semicolon; and
(B) in clause (ii), by inserting ``or a tribal
organization'' after ``a governmental entity''.
(e) Conforming Amendments.--Section 337(d)(3) of the
Communications Act of 1934 (47 U.S.C. 337(d)(3)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``public safety services licensees and commercial
licensees'';
(2) in subparagraph (A), by inserting ``public safety
services licensees and commercial licensees'' before ``to
aggregate''; and
(3) in subparagraph (B), by inserting ``commercial
licensees'' before ``to disaggregate''.
SEC. 4202. NATIONAL PUBLIC SAFETY COMMUNICATIONS PLAN.
(a) Establishment of Public Safety Communications Planning
Board.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Commission shall establish a
board to be known as the Public Safety Communications
Planning Board.
(2) Membership.--The membership of the Board shall be as
follows:
(A) Federal members.--
(i) In general.--Four Federal members as follows:
(I) The Chairman of the Commission, or a designee.
(II) The Assistant Secretary, or a designee.
(III) The Director of the Office of Emergency
Communications in the Department of Homeland Security, or a
designee.
(IV) The Director of the National Institute of Standards
and Technology, or a designee.
(ii) Designees.--If a Federal official designates a
designee under clause (i), such designee shall be an officer
or employee of the agency of the official who is subordinate
to the official, except that the Chairman of the Commission
may designate another Commissioner of the Commission or an
officer or employee of the Commission.
(B) Non-federal members.--Nine non-Federal members as
follows:
(i) Two members who represent providers of commercial
mobile data service, with one representing providers that
have nationwide coverage areas and one representing providers
that have regional coverage areas.
(ii) Two members who represent manufacturers of mobile
wireless network equipment.
(iii) Five members who represent the interests of State and
local governments, chosen to reflect geographic and
population density differences across the United States, as
follows:
(I) Two members who represent the public safety interests
of the States.
(II) One member who represents State and local public
safety employees.
(III) Two members who represent other interests of State
and local governments, to be determined by the Chairman of
the Commission.
(3) Selection of non-federal members.--
(A) Nomination.--For each non-Federal member of the Board,
the group that is represented by such member shall, by
consensus, nominate an individual to serve as such member and
submit the name of the nominee to the Chairman of the
Commission.
(B) Appointment.--The Chairman of the Commission shall
appoint the non-Federal members of the Board from the
nominations submitted under subparagraph (A). If a group
fails to reach consensus on a nominee or to submit a
nomination for a member that represents such group, or if the
nominee is not qualified under subparagraph (C), the Chairman
shall select a member to represent such group.
(C) Qualifications.--Each non-Federal member appointed
under subparagraph (B) shall meet at least 1 of the following
criteria:
[[Page H8787]]
(i) Public safety experience.--Knowledge of and experience
in Federal, State, local, or tribal public safety or
emergency response.
(ii) Technical expertise.--Technical expertise regarding
broadband communications, including public safety
communications.
(iii) Network expertise.--Expertise in building, deploying,
and operating commercial telecommunications networks.
(iv) Financial expertise.--Expertise in financing and
funding telecommunications networks.
(4) Terms of appointment.--
(A) Length.--
(i) Federal members.--The term of office of each Federal
member of the Board shall be 3 years, except that such term
shall end when such member no longer holds the Federal office
by reason of which such member is a member of the Board (or,
in the case of a designee, the Federal official who
designated such designee no longer holds the office by reason
of which such designation was made or the designee is no
longer an officer, employee, or Commissioner as described in
paragraph (2)(A)(ii)).
(ii) Non-federal members.--The term of office of each non-
Federal member of the Board shall be 3 years.
(B) Staggered terms.--With respect to the initial non-
Federal members of the Board--
(i) three members shall serve for a term of 3 years;
(ii) three members shall serve for a term of 2 years; and
(iii) three members shall serve for a term of 1 year.
(C) Vacancies.--
(i) Effect of vacancies.--A vacancy in the membership of
the Board shall not affect the Board's powers, subject to
paragraph (8), and shall be filled in the same manner as the
original member was appointed.
(ii) Appointment to fill vacancy.--A member of the Board
appointed to fill a vacancy occurring prior to the expiration
of the term for which that member's predecessor was appointed
shall be appointed for the remainder of the predecessor's
term.
(iii) Expiration of term.--A non-Federal member of the
Board whose term has expired may serve until such member's
successor has taken office, or until the end of the calendar
year in which such member's term has expired, whichever is
earlier.
(5) Chair.--
(A) Selection.--The Chair of the Board shall be selected by
the Board from among the members of the Board.
(B) Term.--The term of office of the Chair of the Board
shall run from the date when the Chair is selected until the
date when the term of the Chair as a member of the Board
expires.
(6) Removal of chair and non-federal members.--
(A) By board.--The members of the Board may, by majority
vote--
(i) remove the Chair of the Board from the position of
Chair for conduct determined to be detrimental to the Board;
or
(ii) remove from the Board any non-Federal member of the
Board for conduct determined to be detrimental to the Board.
(B) By chairman of the commission.--The Chairman of the
Commission may, for good cause--
(i) remove the Chair of the Board from the position of
Chair; or
(ii) remove from the Board any non-Federal member of the
Board.
(7) Annual meetings.--In addition to any other meetings
necessary to carry out the duties of the Board under this
section, the Board shall meet--
(A) subject to the call of the Chair; and
(B) annually to consider the most recent report submitted
by the Administrator under section 4203(f)(1).
(8) Quorum.--Seven members of the Board, including not
fewer than 6 non-Federal members, shall constitute a quorum.
(9) Resources.--The Commission shall provide the Board with
the staff, administrative support, and facilities necessary
to carry out the duties of the Board under this section.
(10) Prohibition against compensation.--A member of the
Board shall serve without pay but shall be allowed a per diem
allowance for travel expenses, at rates authorized for an
employee of an agency under subchapter I of chapter 57 of
title 5, United States Code, while away from the home or
regular place of business of the member in the performance of
the duties of the Board. Compensation of a Federal member of
the Board for service in the Federal office or employment by
reason of which such member is a member of the Board shall
not be considered compensation under this paragraph.
(11) Federal advisory committee act inapplicable.--The
Federal Advisory Committee Act (5 U.S.C. App.) shall not
apply to the Board.
(b) Development of Plan by Board.--
(1) In general.--Not later than 1 year after the date on
which the Board is established under subsection (a)(1), the
Board shall submit to the Commission a detailed proposal for
a National Public Safety Communications Plan to govern the
use of the spectrum licensed to the Administrator in order to
meet long-term public safety communications needs.
(2) Limitation on recommendations.--The Board may not make
any recommendations for requirements generally applicable to
providers of commercial mobile service or private mobile
service (as defined in section 332 of the Communications Act
of 1934 (47 U.S.C. 332)).
(c) Consideration of Plan by Commission.--
(1) In general.--Not later than 90 days after the date of
the submission of the proposal by the Board under subsection
(b)(1), the Commission shall complete a single proceeding
to--
(A) adopt such proposal, without modification, as the
National Public Safety Communications Plan; or
(B) reject such proposal.
(2) Procedures if plan rejected.--If the Commission rejects
such proposal under paragraph (1)(B), the Board shall, not
later than 90 days thereafter, submit to the Commission a
revised proposal. Such revised proposal shall be treated as a
proposal submitted by the Board under subsection (b)(1).
(3) Revisions to plan.--
(A) Submission.--The Board shall periodically submit to the
Commission proposals for revisions to the Plan.
(B) Consideration by commission.--Not later than 90 days
after the submission of such a proposal, the Commission shall
complete a single proceeding to--
(i) revise the Plan in accordance with such proposal,
without modification of the proposal; or
(ii) reject such proposal.
(d) Requirements for Plan.--The Plan shall include the
following requirements:
(1) Deployment standards.--The Plan shall--
(A) require each State public safety broadband
communications network to be interconnected and interoperable
with all other such networks;
(B) require each State public safety broadband
communications network to be based on a network architecture
that evolves with technological advancements;
(C) require all State public safety broadband
communications networks to be based on the same commercial
standards;
(D) require each State public safety broadband
communications network to be deployed as networks are
typically deployed by providers of commercial mobile data
service;
(E) promote competition in the public safety equipment
market by requiring equipment for use on the State public
safety broadband communications networks to be--
(i) built to open, nonproprietary, commercial standards;
(ii) capable of being used by any provider of public safety
services and accessed by devices manufactured by multiple
vendors; and
(iii) backward-compatible with prior generations of
commercial mobile service and commercial mobile data service
networks to the extent typically deployed by providers of
commercial mobile service and commercial mobile data service;
and
(F) require each State public safety broadband
communications network to be integrated with public safety
answering points, or the equivalent of public safety
answering points, and with networks for the provision of Next
Generation 9-1-1 services.
(2) State-specific requirements.--The Plan shall require
each State Public Safety Broadband Office to include in
requests for proposals for the construction, management,
maintenance, and operation of the State public safety
broadband communications network of such State--
(A) specifications for the construction and deployment of
such network, including--
(i) build timetables, which shall take into consideration
the time needed to build out to rural areas;
(ii) required coverage areas, including rural and nonurban
areas;
(iii) minimum service levels; and
(iv) specific performance criteria;
(B) the technical and operational requirements for such
network;
(C) the practices, procedures, and standards for the
management and operation of such network;
(D) the terms of service for the use of such network; and
(E) specifications for ongoing compliance review and
monitoring of--
(i) the construction, management, maintenance, and
operation of such network;
(ii) the practices and procedures of the entities operating
on such network; and
(iii) the necessary training needs of network users.
(e) Development of Baseline Request for Proposals.--
(1) Development by board.--Not later than 1 year after the
date on which the Board is established under subsection
(a)(1), the Board shall submit to the Commission a draft
baseline request for proposals for each State to use in
developing its request for proposals for the construction,
management, maintenance, and operation of a State public
safety broadband communications network.
(2) Consideration by commission.--
(A) In general.--Not later than 90 days after the date of
the submission of the draft baseline request for proposals by
the Board under paragraph (1), the Commission shall complete
a single proceeding to--
(i) adopt such draft, without modification; or
(ii) reject such draft.
(B) Procedures if draft rejected.--If the Commission
rejects such draft under subparagraph (A)(ii), the Board
shall, not later than 60 days thereafter, submit to the
Commission a revised draft baseline request for proposals.
Such revised draft shall be treated as a draft submitted by
the Board under paragraph (1).
(3) Revisions.--
(A) Submission.--The Board shall periodically submit to the
Commission draft revisions to the baseline request for
proposals adopted under paragraph (2)(A)(i).
(B) Consideration by commission.--Not later than 90 days
after the submission of such a draft revision, the Commission
shall complete a single proceeding to--
(i) revise the baseline request for proposals in accordance
with such draft revision, without modification of such draft
revision; or
(ii) reject such draft revision.
SEC. 4203. PLAN ADMINISTRATION.
(a) Selection of Administrator.--
[[Page H8788]]
(1) In general.--The Assistant Secretary shall, through an
open, transparent request-for-proposals process, select an
entity to serve as the Administrator of the Plan. The
Assistant Secretary shall commence such process not later
than 120 days after the date of the adoption of the Plan by
the Commission under section 4202(c)(1)(A).
(2) Replacement.--If an entity ceases to serve as
Administrator under a contract awarded under paragraph (1) or
this paragraph, the Assistant Secretary shall, through an
open, transparent request-for-proposals process, select
another entity to serve as Administrator.
(b) Powers and Duties of Administrator.--The Administrator
shall--
(1) review and coordinate the implementation of the Plan
and the construction, management, maintenance, and operation
of the State public safety broadband communications networks,
in accordance with the Plan, under contracts entered into by
the State Public Safety Broadband Offices;
(2) transmit to each State Public Safety Broadband Office
the baseline request for proposals adopted by the Commission
under section 4202(e)(2)(A)(i) and any revisions to such
baseline request for proposals adopted by the Commission
under section 4202(e)(3)(B)(i);
(3) review and approve or disapprove, in accordance with
section 4221(c), each contract proposed by a State Public
Safety Broadband Office for the construction, management,
maintenance, and operation of a State public safety broadband
communications network;
(4) give public notice of each decision to approve or
disapprove such a contract and of any other decision of the
Administrator with respect to such a contract, a State Public
Safety Broadband Office, or a State public safety broadband
communications network;
(5) in consultation with State Public Safety Broadband
Offices, conduct assessments for inclusion in the annual
report required by subsection (f)(1) of--
(A) progress on construction and adoption of the State
public safety broadband communications networks; and
(B) the management, maintenance, and operation of such
networks; and
(6) conduct such audits as are necessary to ensure--
(A) with respect to contracts described in paragraph (3),
the integrity of the contracting process and the adequate
performance of such contracts; and
(B) that the State public safety broadband communications
networks are constructed, managed, maintained, and operated
in accordance with the Plan.
(c) Limitation on Powers of Administrator.--The
Administrator may not--
(1) take any action unless this title expressly confers on
the Administrator the power to take such action or such
action is necessary to carry out a power that this title
expressly confers on the Administrator; or
(2) prohibit or refuse to approve any action of a State
Public Safety Broadband Office or with respect to a State
public safety broadband communications network unless such
action would violate the Plan or the license terms of the
spectrum licensed to the Administrator.
(d) Review of Decisions of Administrator.--
(1) In general.--The United States District Court for the
District of Columbia shall have exclusive jurisdiction to
review decisions of the Administrator.
(2) Filing of petition.--Any party aggrieved by a decision
of the Administrator may seek review of such decision by
filing a petition for review with the court not later than 30
days after the date on which public notice is given of such
decision.
(3) Contents of petition.--The petition shall contain a
concise statement of the following:
(A) The nature of the proceedings as to which review is
sought.
(B) The grounds on which relief is sought.
(C) The relief prayed.
(4) Attachment to petition.--The petitioner shall attach to
the petition, as an exhibit, a copy of the decision of the
Administrator on which review is sought.
(5) Service.--The clerk shall serve a true copy of the
petition on the Administrator, the Assistant Secretary, and
the Commission by registered mail, with request for a return
receipt.
(6) Standard of review.--The court may affirm or vacate a
decision of the Administrator on review. The court may vacate
a decision of the Administrator only--
(A) where the decision was procured by corruption, fraud,
or undue means;
(B) where there was actual partiality or corruption in the
Administrator;
(C) where the Administrator was guilty of misconduct in
refusing to hear evidence pertinent and material to the
decision or of any other misbehavior by which the rights of
any party have been prejudiced; or
(D) where the Administrator exceeded the powers conferred
on it by this title or otherwise did not arguably construe or
apply the Plan in making its decision.
(7) Review by ntia prohibited.--The Assistant Secretary
shall take such action as is necessary to ensure that the
Administrator complies with the requirements of this title,
the Plan, and the terms of the contract entered into under
subsection (a), but the Assistant Secretary may not vacate or
otherwise modify a decision by the Administrator with respect
to a third party.
(e) Audits of Use of Federal Funds by Administrator.--Not
later than 1 year after entering into a contract to serve as
Administrator, and annually thereafter, the Administrator
shall provide to the Assistant Secretary a statement, audited
by an independent auditor, that details the use during the
preceding fiscal year of any Federal funds received by the
Administrator in connection with its service as
Administrator.
(f) Annual Report by Administrator.--
(1) In general.--Not later than 1 year after entering into
a contract to serve as Administrator, and annually
thereafter, the Administrator shall submit a report covering
the preceding fiscal year to--
(A) the Committee on Energy and Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate;
(B) the Assistant Secretary;
(C) the Commission; and
(D) the Board.
(2) Required content.--The report required by paragraph (1)
shall include--
(A) a comprehensive and detailed description of--
(i) the results of assessments conducted under subsection
(b)(5) and audits conducted under subsection (b)(6);
(ii) the activities of the Administrator in its capacity as
Administrator; and
(iii) the financial condition of the Administrator; and
(B) such recommendations or proposals for legislative or
administrative action as the Administrator considers
appropriate.
SEC. 4204. INITIAL FUNDING FOR ADMINISTRATOR.
(a) Borrowing Authority.--Prior to the end of fiscal year
2021, the Assistant Secretary may borrow from the general
fund of the Treasury of the United States not more than
$40,000,000 to enter into a contract with an entity to serve
as Administrator under section 4203(a).
(b) Reimbursement.--The Assistant Secretary shall reimburse
the general fund of the Treasury, without interest, for any
amounts borrowed under subsection (a) from funds made
available from the Public Safety Trust Fund established by
section 4241(a)(1), as such funds become available.
SEC. 4205. STUDY ON EMERGENCY COMMUNICATIONS BY AMATEUR RADIO
AND IMPEDIMENTS TO AMATEUR RADIO
COMMUNICATIONS.
(a) In General.--Not later than 180 days after the date of
the enactment of this Act, the Commission, in consultation
with the Office of Emergency Communications in the Department
of Homeland Security, shall--
(1) complete a study on the uses and capabilities of
amateur radio service communications in emergencies and
disaster relief; and
(2) submit to the Committee on Energy and Commerce of the
House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate a report on the
findings of such study.
(b) Contents.--The study required by subsection (a) shall
include--
(1)(A) a review of the importance of emergency amateur
radio service communications relating to disasters, severe
weather, and other threats to lives and property in the
United States; and
(B) recommendations for--
(i) enhancements in the voluntary deployment of amateur
radio operators in disaster and emergency communications and
disaster relief efforts; and
(ii) improved integration of amateur radio operators in the
planning and furtherance of initiatives of the Federal
Government; and
(2)(A) an identification of impediments to enhanced amateur
radio service communications, such as the effects of
unreasonable or unnecessary private land use restrictions on
residential antenna installations; and
(B) recommendations regarding the removal of such
impediments.
(c) Expertise.--In conducting the study required by
subsection (a), the Commission shall use the expertise of
stakeholder entities and organizations, including the amateur
radio, emergency response, and disaster communications
communities.
PART 2--STATE IMPLEMENTATION
SEC. 4221. NEGOTIATION AND APPROVAL OF CONTRACTS.
(a) State Public Safety Broadband Offices.--Each State
desiring to establish a State public safety broadband
communications network shall establish or designate a State
Public Safety Broadband Office.
(b) Negotiation by States.--
(1) In general.--Each State Public Safety Broadband Office
shall--
(A) use the baseline request for proposals transmitted
under section 4203(b)(2) to develop a request for proposals
for the construction, management, maintenance, and operation
of a State public safety broadband communications network;
(B) negotiate a contract with a private-sector entity for
such construction, management, maintenance, and operation;
(C) transmit such contract to the Administrator for
approval; and
(D) if the Administrator approves such contract, enter into
such contract with such entity.
(2) Factors for consideration.--In developing a request for
proposals under paragraph (1)(A) and negotiating a proposed
contract under paragraph (1)(B), the State Public Safety
Broadband Office shall take into consideration the following:
(A) The most efficient and effective use and integration by
State, local, and tribal providers of public safety services
within such State of the spectrum licensed to the
Administrator and the infrastructure, equipment, and other
architecture associated with the State public safety
broadband communications network to satisfy the wireless
communications and data services needs of such providers.
(B) The particular assets and specialized needs of such
providers. Such assets may include available towers and
infrastructure. Such needs may include the projected number
of
[[Page H8789]]
users, preferred buildout timeframes, special coverage needs,
special hardening, reliability, security, and resiliency
needs, local user priority assignments, and integration needs
of public safety answering points and emergency operations
centers.
(C) Whether any entities that are not providers of public
safety services should have emergency access to the State
public safety broadband communications network, as described
in subsection (e).
(D) Whether the State public safety broadband
communications network provides for the selection on a
localized basis of network options that remain consistent
with the Plan.
(E) How to ensure the reliability, security, and resiliency
of the State public safety broadband communications network,
including through measures for--
(i) protecting and monitoring the cybersecurity of the
network; and
(ii) managing supply chain risks to the network.
(3) Partnerships.--
(A) In general.--In choosing from among the entities that
respond to the request for proposals developed under
paragraph (1)(A), the State Public Safety Broadband Office
shall--
(i) select a provider of commercial mobile service or
commercial mobile data service; and
(ii) give additional consideration to providers of
commercial mobile service or commercial mobile data service
whose proposals include a partnership with a utility
provider.
(B) Joint ventures.--For purposes of subparagraph (A), a
joint venture that includes a provider of commercial mobile
service or commercial mobile data service shall be considered
to be such a provider.
(c) Review by Administrator.--
(1) In general.--Upon receiving from a State Public Safety
Broadband Office a contract negotiated under subsection (b),
the Administrator shall either approve or disapprove such
contract but may not make any changes to its terms.
(2) Disapproval.--In the case of disapproval under
paragraph (1), the State Public Safety Broadband Office may
renegotiate the contract, negotiate a contract with another
entity that responded to the Office's request for proposals,
or issue a new request for proposals.
(d) Public-Private Partnerships.--Notwithstanding any
limitation in section 337 of the Communications Act of 1934
(47 U.S.C. 337), a contract entered into between a State
Public Safety Broadband Office and a private entity under
subsection (b)(1)(D) may permit--
(1) such entity to obtain access to the spectrum licensed
to the Administrator in such State for services that are not
public safety services; or
(2) the State Public Safety Broadband Office to share with
such entity equipment or infrastructure of the State public
safety broadband communications network, including antennas
and towers.
(e) Emergency Access by Non-Public Safety Entities.--
(1) In general.--Notwithstanding any limitation in section
337 of the Communications Act of 1934 (47 U.S.C. 337), as
expressly permitted by the terms of a contract entered into
under subsection (b)(1)(D) for the construction, management,
maintenance, and operation of a State public safety broadband
communications network, the Administrator may enter into
agreements with entities in such State that are not providers
of public safety services to permit such entities to obtain
access on a secondary, preemptible basis to the State public
safety broadband communications network of such State in
order to facilitate interoperability between such entities
and providers of public safety services in protecting the
safety of life, health, and property during emergencies and
during preparation for and recovery from emergencies,
including during emergency drills, exercises, and tests.
(2) Preemption.--The Administrator shall ensure that, under
any agreement entered into under paragraph (1), providers of
public safety services may preempt use of the State public
safety broadband communications network by an entity with
which the Administrator has entered into such agreement.
(f) Multi-State Negotiation.--The State Public Safety
Broadband Offices of more than one State may form a
consortium for purposes of developing a request for proposals
and negotiating and entering into a contract for the
construction, management, maintenance, and operation of a
State public safety broadband communications network for such
States. While such Offices remain in the consortium, such
States shall be treated as a single State, such Offices shall
be treated as a single Office of a single State, and such
network shall be treated as the State public safety broadband
communications network of a single State.
SEC. 4222. STATE IMPLEMENTATION GRANT PROGRAM.
(a) In General.--From amounts made available under section
4223(b), the Assistant Secretary shall, in consultation with
the Administrator, make grants to State Public Safety
Broadband Offices to assist such Offices in carrying out the
duties of such Offices under this part, except for making
payments under contracts entered into under section
4221(b)(1)(D).
(b) Application.--The Assistant Secretary may only make a
grant under this section to a State Public Safety Broadband
Office that submits an application at such time, in such
form, and containing such information and assurances as the
Assistant Secretary may require.
(c) Matching Requirements; Federal Share.--
(1) In general.--The Federal share of the cost of any
activity carried out using a grant under this section may not
exceed 80 percent of the eligible costs of carrying out that
activity, as determined by the Assistant Secretary.
(2) Waiver.--The Assistant Secretary may waive, in whole or
in part, the requirements of paragraph (1) if the State
Public Safety Broadband Office has demonstrated financial
hardship.
(d) Programmatic Requirements.--Not later than 1 year after
the date of the adoption of the Plan by the Commission under
section 4202(c)(1)(A), the Assistant Secretary, in
consultation with the Board, shall establish requirements
relating to the grant program to be carried out under this
section, including the following:
(1) Defining eligible costs for purposes of subsection
(c)(1).
(2) Determining the scope of eligible activities for grant
funding under this section.
(3) Prioritizing grants for activities that ensure coverage
in rural as well as urban areas.
SEC. 4223. STATE IMPLEMENTATION FUND.
(a) Establishment.--There is established in the Treasury of
the United States a fund to be known as the State
Implementation Fund.
(b) Amounts Available for State Implementation Grant
Program.--Any amounts borrowed under subsection (c)(1) and
any amounts in the State Implementation Fund that are not
necessary to reimburse the general fund of the Treasury for
such borrowed amounts shall be available to the Assistant
Secretary to implement section 4222.
(c) Borrowing Authority.--
(1) In general.--Prior to the end of fiscal year 2021, the
Assistant Secretary may borrow from the general fund of the
Treasury such sums as may be necessary, but not to exceed
$100,000,000, to implement section 4222.
(2) Reimbursement.--The Assistant Secretary shall reimburse
the general fund of the Treasury, without interest, for any
amounts borrowed under paragraph (1) as funds are deposited
into the State Implementation Fund.
(d) Transfer of Unused Funds.--If there is a balance
remaining in the State Implementation Fund on September 30,
2021, the Secretary of the Treasury shall transfer such
balance to the general fund of the Treasury, where such
balance shall be dedicated for the sole purpose of deficit
reduction.
SEC. 4224. GRANTS TO STATES FOR NETWORK BUILDOUT.
(a) Establishment.--From amounts made available from the
Public Safety Trust Fund established by section 4241(a)(1),
the Assistant Secretary shall make grants to State Public
Safety Broadband Offices for payments under contracts entered
into under section 4221(b)(1)(D).
(b) Application.--The Assistant Secretary may only make a
grant under this section to a State Public Safety Broadband
Office that submits an application at such time, in such
form, and containing such information and assurances as the
Assistant Secretary may require.
(c) Quarterly Reports.--
(1) From grantees to ntia.--Not later than 3 months after
receiving a grant under this section and not less frequently
than quarterly thereafter until the date that is 1 year after
all such funds have been expended, a State Public Safety
Broadband Office shall submit to the Assistant Secretary a
report on--
(A) the use of grant funds by such Office; and
(B) the construction, management, maintenance, and
operation of the State public safety broadband communications
network of such State.
(2) From ntia to congress.--Not later than 6 months after
making the first grant under this section and not less
frequently than quarterly thereafter until the date that is
18 months after all such funds have been expended by the
grantees, the Assistant Secretary shall submit to the
Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Energy and Commerce of the House
of Representatives a report that--
(A) summarizes the reports submitted by grantees under
paragraph (1); and
(B) describes and evaluates--
(i) the use of grant funds disbursed under this section;
and
(ii) the construction, management, maintenance, and
operation of the State public safety broadband communications
networks under the contracts under which grantees make
payments using grant funds.
SEC. 4225. WIRELESS FACILITIES DEPLOYMENT.
(a) Facility Modifications.--
(1) In general.--Notwithstanding section 704 of the
Telecommunications Act of 1996 (Public Law 104-104) or any
other provision of law, a State or local government may not
deny, and shall approve, any eligible facilities request for
a modification of an existing wireless tower or base station
that does not substantially change the physical dimensions of
such tower or base station.
(2) Eligible facilities request.--For purposes of this
subsection, the term ``eligible facilities request'' means
any request for modification of an existing wireless tower or
base station that involves--
(A) collocation of new transmission equipment;
(B) removal of transmission equipment; or
(C) replacement of transmission equipment.
(b) Federal Easements and Rights-of-Way.--
(1) Grant.--If an executive agency, a State, a political
subdivision or agency of a State, or a person, firm, or
organization applies for the grant of an easement or right-
of-way to, in, over, or on a building or other property owned
by the Federal Government for the right to install,
construct, and maintain wireless service antenna structures
and equipment and backhaul transmission equipment, the
executive agency having control of the building or other
property may grant to the applicant, on behalf of the Federal
Government, an easement or
[[Page H8790]]
right-of-way to perform such installation, construction, and
maintenance.
(2) Application.--The Administrator of General Services
shall develop a common form for applications for easements
and rights-of-way under paragraph (1) for all executive
agencies that shall be used by applicants with respect to the
buildings or other property of each such agency.
(3) Fee.--
(A) In general.--Notwithstanding any other provision of
law, the Administrator of General Services shall establish a
fee for the grant of an easement or right-of-way pursuant to
paragraph (1) that is based on direct cost recovery.
(B) Exceptions.--The Administrator of General Services may
establish exceptions to the fee amount required under
subparagraph (A)--
(i) in consideration of the public benefit provided by a
grant of an easement or right-of-way; and
(ii) in the interest of expanding wireless and broadband
coverage.
(4) Use of fees collected.--Any fee amounts collected by an
executive agency pursuant to paragraph (3) may be made
available, as provided in appropriations Acts, to such agency
to cover the costs of granting the easement or right-of-way.
(c) Master Contracts for Wireless Facility Sitings.--
(1) In general.--Notwithstanding section 704 of the
Telecommunications Act of 1996 or any other provision of law,
and not later than 60 days after the date of the enactment of
this Act, the Administrator of General Services shall--
(A) develop 1 or more master contracts that shall govern
the placement of wireless service antenna structures on
buildings and other property owned by the Federal Government;
and
(B) in developing the master contract or contracts,
standardize the treatment of the placement of wireless
service antenna structures on building rooftops or facades,
the placement of wireless service antenna equipment on
rooftops or inside buildings, the technology used in
connection with wireless service antenna structures or
equipment placed on Federal buildings and other property, and
any other key issues the Administrator of General Services
considers appropriate.
(2) Applicability.--The master contract or contracts
developed by the Administrator of General Services under
paragraph (1) shall apply to all publicly accessible
buildings and other property owned by the Federal Government,
unless the Administrator of General Services decides that
issues with respect to the siting of a wireless service
antenna structure on a specific building or other property
warrant nonstandard treatment of such building or other
property.
(3) Application.--The Administrator of General Services
shall develop a common form or set of forms for wireless
service antenna structure siting applications under this
subsection for all executive agencies that shall be used by
applicants with respect to the buildings and other property
of each such agency.
(d) Executive Agency Defined.--In this section, the term
``executive agency'' has the meaning given such term in
section 102 of title 40, United States Code.
PART 3--PUBLIC SAFETY TRUST FUND
SEC. 4241. PUBLIC SAFETY TRUST FUND.
(a) Establishment of Public Safety Trust Fund.--
(1) In general.--There is established in the Treasury of
the United States a trust fund to be known as the Public
Safety Trust Fund.
(2) Availability.--Amounts deposited in the Public Safety
Trust Fund shall remain available through fiscal year 2021.
Any amounts remaining in the Fund after the end of such
fiscal year shall be deposited in the general fund of the
Treasury, where such amounts shall be dedicated for the sole
purpose of deficit reduction.
(b) Use of Fund.--As amounts are deposited in the Public
Safety Trust Fund, such amounts shall be used to make the
following deposits or payments in the following order of
priority:
(1) Repayment of amount borrowed for administration of
national public safety communications plan.--An amount not to
exceed $40,000,000 shall be available to the Assistant
Secretary to reimburse the general fund of the Treasury for
any amounts borrowed under section 4204(a).
(2) State implementation fund.--$100,000,000 shall be
deposited in the State Implementation Fund established by
section 4223(a).
(3) Buildout of state public safety broadband
communications networks.--$4,960,000,000 shall be available
to the Assistant Secretary to carry out section 4224.
(4) Deficit reduction.--$20,400,000,000 shall be deposited
in the general fund of the Treasury, where such amount shall
be dedicated for the sole purpose of deficit reduction.
(5) 9-1-1, e9-1-1, and next generation 9-1-1 implementation
grants.--$250,000,000 shall be available to the Assistant
Secretary and the Administrator of the National Highway
Traffic Safety Administration to carry out the grant program
under section 158 of the National Telecommunications and
Information Administration Organization Act, as amended by
section 4265 of this title.
(6) Buildout of state public safety broadband
communications networks and deficit reduction.--Of the
remaining amounts deposited in the Fund--
(A) 10 percent of any such amounts, not to exceed
$1,500,000,000, shall be available to the Assistant Secretary
to carry out section 4224; and
(B) 90 percent of any such amounts (or 100 percent of any
such amounts after amounts made available under subparagraph
(A) exceed $1,500,000,000) shall be deposited in the general
fund of the Treasury, where such amounts shall be dedicated
for the sole purpose of deficit reduction.
(c) Investment.--Amounts in the Public Safety Trust Fund
shall be invested in accordance with section 9702 of title
31, United States Code, and any interest on, and proceeds
from, any such investment shall be credited to, and become a
part of, the Fund.
PART 4--NEXT GENERATION 9-1-1 ADVANCEMENT ACT OF 2011
SEC. 4261. SHORT TITLE.
This part may be cited as the ``Next Generation 9-1-1
Advancement Act of 2011''.
SEC. 4262. FINDINGS.
Congress finds that--
(1) for the sake of the public safety of our Nation, a
universal emergency service number (9-1-1) that is enhanced
with the most modern and state-of-the-art telecommunications
capabilities possible, including voice, data, and video
communications, should be available to all citizens wherever
they live, work, and travel;
(2) a successful migration to Next Generation 9-1-1 service
communications systems will require greater Federal, State,
and local government resources and coordination;
(3) any funds that are collected from fees imposed on
consumer bills for the purposes of funding 9-1-1 services,
enhanced 9-1-1 services, or Next Generation 9-1-1 services
should only be used for the purposes for which the funds are
collected;
(4) it is a national priority to foster the migration from
analog, voice-centric 9-1-1 and current generation emergency
communications systems to a 21st century, Next Generation,
IP-based emergency services model that embraces a wide range
of voice, video, and data applications;
(5) ensuring 9-1-1 access for all citizens includes
improving access to 9-1-1 systems for the deaf, hard of
hearing, deaf-blind, and individuals with speech
disabilities, who increasingly communicate with non-
traditional text, video, and instant-messaging communications
services, and who expect those services to be able to connect
directly to 9-1-1 systems;
(6) a coordinated public educational effort on current and
emerging 9-1-1 system capabilities and proper use of the 9-1-
1 system is essential to the operation of effective 9-1-1
systems;
(7) Federal policies and funding should enable the
transition to Internet Protocol-based (IP-based) Next
Generation 9-1-1 systems, and Federal 9-1-1 and emergency
communications laws and regulations must keep pace with
rapidly changing technology to ensure an open and competitive
9-1-1 environment based on the most advanced technology
available; and
(8) Federal policies and grant programs should reflect the
growing convergence and integration of emergency
communications technology, such that State interoperability
plans and Federal funding in support of such plans are made
available for all aspects of Next Generation 9-1-1 service
and emergency communications systems.
SEC. 4263. PURPOSES.
The purposes of this part are--
(1) to focus Federal policies and funding programs to
ensure a successful migration from voice-centric 9-1-1
systems to IP-enabled, Next Generation 9-1-1 emergency
response systems that use voice, data, and video services to
greatly enhance the capability of 9-1-1 and emergency
response services;
(2) to ensure that technologically advanced 9-1-1 and
emergency communications systems are universally available
and adequately funded to serve all Americans; and
(3) to ensure that all 9-1-1 and emergency response
organizations have access to--
(A) high-speed broadband networks;
(B) interconnected IP backbones; and
(C) innovative services and applications.
SEC. 4264. DEFINITIONS.
In this part, the following definitions shall apply:
(1) 9-1-1 services and e9-1-1 services.--The terms ``9-1-1
services'' and ``E9-1-1 services'' shall have the meaning
given those terms in section 158 of the National
Telecommunications and Information Administration
Organization Act (47 U.S.C. 942), as amended by this part.
(2) Multi-line telephone system.--The term ``multi-line
telephone system'' or ``MLTS'' means a system comprised of
common control units, telephone sets, control hardware and
software and adjunct systems, including network and premises
based systems, such as Centrex and VoIP, as well as PBX,
Hybrid, and Key Telephone Systems (as classified by the
Commission under part 68 of title 47, Code of Federal
Regulations), and includes systems owned or leased by
governmental agencies and non-profit entities, as well as for
profit businesses.
(3) Office.--The term ``Office'' means the 9-1-1
Implementation Coordination Office established under section
158 of the National Telecommunications and Information
Administration Organization Act (47 U.S.C. 942), as amended
by this part.
SEC. 4265. COORDINATION OF 9-1-1 IMPLEMENTATION.
Section 158 of the National Telecommunications and
Information Administration Organization Act (47 U.S.C. 942)
is amended to read as follows:
``SEC. 158. COORDINATION OF 9-1-1, E9-1-1, AND NEXT
GENERATION 9-1-1 IMPLEMENTATION.
``(a) 9-1-1 Implementation Coordination Office.--
``(1) Establishment and continuation.--The Assistant
Secretary and the Administrator of the National Highway
Traffic Safety Administration shall--
``(A) establish and further a program to facilitate
coordination and communication between Federal, State, and
local emergency communications systems, emergency personnel,
public safety organizations, telecommunications carriers,
[[Page H8791]]
and telecommunications equipment manufacturers and vendors
involved in the implementation of 9-1-1 services; and
``(B) establish a 9-1-1 Implementation Coordination Office
to implement the provisions of this section.
``(2) Management plan.--
``(A) Development.--The Assistant Secretary and the
Administrator shall develop a management plan for the grant
program established under this section, including by
developing--
``(i) plans related to the organizational structure of such
program; and
``(ii) funding profiles for each fiscal year of the
duration of such program.
``(B) Submission to congress.--Not later than 90 days after
the date of enactment of the Next Generation 9-1-1
Advancement Act of 2011, the Assistant Secretary and the
Administrator shall submit the management plan developed
under subparagraph (A) to--
``(i) the Committees on Commerce, Science, and
Transportation and Appropriations of the Senate; and
``(ii) the Committees on Energy and Commerce and
Appropriations of the House of Representatives.
``(3) Purpose of office.--The Office shall--
``(A) take actions, in concert with coordinators designated
in accordance with subsection (b)(3)(A)(ii), to improve
coordination and communication with respect to the
implementation of 9-1-1 services, E9-1-1 services, and Next
Generation 9-1-1 services;
``(B) develop, collect, and disseminate information
concerning practices, procedures, and technology used in the
implementation of 9-1-1 services, E9-1-1 services, and Next
Generation 9-1-1 services;
``(C) advise and assist eligible entities in the
preparation of implementation plans required under subsection
(b)(3)(A)(iii);
``(D) receive, review, and recommend the approval or
disapproval of applications for grants under subsection (b);
and
``(E) oversee the use of funds provided by such grants in
fulfilling such implementation plans.
``(4) Reports.--The Assistant Secretary and the
Administrator shall provide an annual report to Congress by
the first day of October of each year on the activities of
the Office to improve coordination and communication with
respect to the implementation of 9-1-1 services, E9-1-1
services, and Next Generation 9-1-1 services.
``(b) 9-1-1, E9-1-1, and Next Generation 9-1-1
Implementation Grants.--
``(1) Matching grants.--The Assistant Secretary and the
Administrator, acting through the Office, shall provide
grants to eligible entities for--
``(A) the implementation and operation of 9-1-1 services,
E9-1-1 services, migration to an IP-enabled emergency
network, and adoption and operation of Next Generation 9-1-1
services and applications;
``(B) the implementation of IP-enabled emergency services
and applications enabled by Next Generation 9-1-1 services,
including the establishment of IP backbone networks and the
application layer software infrastructure needed to
interconnect the multitude of emergency response
organizations; and
``(C) training public safety personnel, including call-
takers, first responders, and other individuals and
organizations who are part of the emergency response chain in
9-1-1 services.
``(2) Matching requirement.--The Federal share of the cost
of a project eligible for a grant under this section shall
not exceed 80 percent. The non-Federal share of the cost
shall be provided from non-Federal sources unless waived by
the Assistant Secretary and the Administrator.
``(3) Coordination required.--In providing grants under
paragraph (1), the Assistant Secretary and the Administrator
shall require an eligible entity to certify in its
application that--
``(A) in the case of an eligible entity that is a State
government, the entity--
``(i) has coordinated its application with the public
safety answering points located within the jurisdiction of
such entity;
``(ii) has designated a single officer or governmental body
of the entity to serve as the coordinator of implementation
of 9-1-1 services, except that such designation need not vest
such coordinator with direct legal authority to implement 9-
1-1 services, E9-1-1 services, or Next Generation 9-1-1
services or to manage emergency communications operations;
``(iii) has established a plan for the coordination and
implementation of 9-1-1 services, E9-1-1 services, and Next
Generation 9-1-1 services; and
``(iv) has integrated telecommunications services involved
in the implementation and delivery of 9-1-1 services, E9-1-1
services, and Next Generation 9-1-1 services; or
``(B) in the case of an eligible entity that is not a
State, the entity has complied with clauses (i), (iii), and
(iv) of subparagraph (A), and the State in which it is
located has complied with clause (ii) of such subparagraph.
``(4) Criteria.--Not later than 120 days after the date of
enactment of the Next Generation 9-1-1 Advancement Act of
2011, the Assistant Secretary and the Administrator shall
issue regulations, after providing the public with notice and
an opportunity to comment, prescribing the criteria for
selection for grants under this section. The criteria shall
include performance requirements and a timeline for
completion of any project to be financed by a grant under
this section. The Assistant Secretary and the Administrator
shall update such regulations as necessary.
``(c) Diversion of 9-1-1 Charges.--
``(1) Designated 9-1-1 charges.--For the purposes of this
subsection, the term `designated 9-1-1 charges' means any
taxes, fees, or other charges imposed by a State or other
taxing jurisdiction that are designated or presented as
dedicated to deliver or improve 9-1-1 services, E9-1-1
services, or Next Generation 9-1-1 services.
``(2) Certification.--Each applicant for a matching grant
under this section shall certify to the Assistant Secretary
and the Administrator at the time of application, and each
applicant that receives such a grant shall certify to the
Assistant Secretary and the Administrator annually thereafter
during any period of time during which the funds from the
grant are available to the applicant, that no portion of any
designated 9-1-1 charges imposed by a State or other taxing
jurisdiction within which the applicant is located are being
obligated or expended for any purpose other than the purposes
for which such charges are designated or presented during the
period beginning 180 days immediately preceding the date of
the application and continuing through the period of time
during which the funds from the grant are available to the
applicant.
``(3) Condition of grant.--Each applicant for a grant under
this section shall agree, as a condition of receipt of the
grant, that if the State or other taxing jurisdiction within
which the applicant is located, during any period of time
during which the funds from the grant are available to the
applicant, obligates or expends designated 9-1-1 charges for
any purpose other than the purposes for which such charges
are designated or presented, eliminates such charges, or
redesignates such charges for purposes other than the
implementation or operation of 9-1-1 services, E9-1-1
services, or Next Generation 9-1-1 services, all of the funds
from such grant shall be returned to the Office.
``(4) Penalty for providing false information.--Any
applicant that provides a certification under paragraph (2)
knowing that the information provided in the certification
was false shall--
``(A) not be eligible to receive the grant under subsection
(b);
``(B) return any grant awarded under subsection (b) during
the time that the certification was not valid; and
``(C) not be eligible to receive any subsequent grants
under subsection (b).
``(d) Funding and Termination.--
``(1) In general.--From the amounts made available to the
Assistant Secretary and the Administrator under section
4241(b)(5) of the Jumpstarting Opportunity with Broadband
Spectrum Act of 2011, the Assistant Secretary and the
Administrator are authorized to provide grants under this
section through the end of fiscal year 2021. Not more than 5
percent of such amounts may be obligated or expended to cover
the administrative costs of carrying out this section.
``(2) Termination.--Effective on October 1, 2021, the
authority provided by this section terminates and this
section shall have no effect.
``(e) Definitions.--In this section, the following
definitions shall apply:
``(1) 9-1-1 services.--The term `9-1-1 services' includes
both E9-1-1 services and Next Generation 9-1-1 services.
``(2) E9-1-1 services.--The term `E9-1-1 services' means
both phase I and phase II enhanced 9-1-1 services, as
described in section 20.18 of the Commission's regulations
(47 C.F.R. 20.18), as in effect on the date of enactment of
the Next Generation 9-1-1 Advancement Act of 2011, or as
subsequently revised by the Commission.
``(3) Eligible entity.--
``(A) In general.--The term `eligible entity' means a State
or local government or a tribal organization (as defined in
section 4(l) of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b(l))).
``(B) Instrumentalities.--The term `eligible entity'
includes public authorities, boards, commissions, and similar
bodies created by 1 or more eligible entities described in
subparagraph (A) to provide 9-1-1 services, E9-1-1 services,
or Next Generation 9-1-1 services.
``(C) Exception.--The term `eligible entity' does not
include any entity that has failed to submit the most
recently required certification under subsection (c) within
30 days after the date on which such certification is due.
``(4) Emergency call.--The term `emergency call' refers to
any real-time communication with a public safety answering
point or other emergency management or response agency,
including--
``(A) through voice, text, or video and related data; and
``(B) nonhuman-initiated automatic event alerts, such as
alarms, telematics, or sensor data, which may also include
real-time voice, text, or video communications.
``(5) Next generation 9-1-1 services.--The term `Next
Generation 9-1-1 services' means an IP-based system comprised
of hardware, software, data, and operational policies and
procedures that--
``(A) provides standardized interfaces from emergency call
and message services to support emergency communications;
``(B) processes all types of emergency calls, including
voice, data, and multimedia information;
``(C) acquires and integrates additional emergency call
data useful to call routing and handling;
``(D) delivers the emergency calls, messages, and data to
the appropriate public safety answering point and other
appropriate emergency entities;
``(E) supports data or video communications needs for
coordinated incident response and management; and
``(F) provides broadband service to public safety answering
points or other first responder entities.
``(6) Office.--The term `Office' means the 9-1-1
Implementation Coordination Office.
``(7) Public safety answering point.--The term `public
safety answering point' has the
[[Page H8792]]
meaning given the term in section 222 of the Communications
Act of 1934 (47 U.S.C. 222).
``(8) State.--The term `State' means any State of the
United States, the District of Columbia, Puerto Rico,
American Samoa, Guam, the United States Virgin Islands, the
Northern Mariana Islands, and any other territory or
possession of the United States.''.
SEC. 4266. REQUIREMENTS FOR MULTI-LINE TELEPHONE SYSTEMS.
(a) In General.--Not later than 270 days after the date of
the enactment of this Act, the Administrator of General
Services, in conjunction with the Office, shall issue a
report to Congress identifying the 9-1-1 capabilities of the
multi-line telephone system in use by all Federal agencies in
all Federal buildings and properties.
(b) Commission Action.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Commission shall issue a
public notice seeking comment on the feasibility of requiring
MLTS manufacturers to include within all such systems
manufactured or sold after a date certain, to be determined
by the Commission, one or more mechanisms to provide a
sufficiently precise indication of a 9-1-1 caller's location,
while avoiding the imposition of undue burdens on MLTS
manufacturers, providers, and operators.
(2) Specific requirement.--The public notice under
paragraph (1) shall seek comment on the National Emergency
Number Association's ``Technical Requirements Document On
Model Legislation E9-1-1 for Multi-Line Telephone Systems''
(NENA 06-750, Version 2).
SEC. 4267. GAO STUDY OF STATE AND LOCAL USE OF 9-1-1 SERVICE
CHARGES.
(a) In General.--Not later than 60 days after the date of
the enactment of this Act, the Comptroller General of the
United States shall initiate a study of--
(1) the imposition of taxes, fees, or other charges imposed
by States or political subdivisions of States that are
designated or presented as dedicated to improve emergency
communications services, including 9-1-1 services or enhanced
9-1-1 services, or related to emergency communications
services operations or improvements; and
(2) the use of revenues derived from such taxes, fees, or
charges.
(b) Report.--Not later than 18 months after initiating the
study required by subsection (a), the Comptroller General
shall prepare and submit a report on the results of the study
to the Committee on Commerce, Science, and Transportation of
the Senate and the Committee on Energy and Commerce of the
House of Representatives setting forth the findings,
conclusions, and recommendations, if any, of the study,
including--
(1) the identity of each State or political subdivision
that imposes such taxes, fees, or other charges; and
(2) the amount of revenues obligated or expended by that
State or political subdivision for any purpose other than the
purposes for which such taxes, fees, or charges were
designated or presented.
SEC. 4268. PARITY OF PROTECTION FOR PROVISION OR USE OF NEXT
GENERATION 9-1-1 SERVICES.
(a) Immunity.--A provider or user of Next Generation 9-1-1
services, a public safety answering point, and the officers,
directors, employees, vendors, agents, and authorizing
government entity (if any) of such provider, user, or public
safety answering point, shall have immunity and protection
from liability under Federal and State law to the extent
provided in subsection (b) with respect to--
(1) the release of subscriber information related to
emergency calls or emergency services;
(2) the use or provision of 9-1-1 services, E9-1-1
services, or Next Generation 9-1-1 services; and
(3) other matters related to 9-1-1 services, E9-1-1
services, or Next Generation 9-1-1 services.
(b) Scope of Immunity and Protection From Liability.--The
scope and extent of the immunity and protection from
liability afforded under subsection (a) shall be the same as
that provided under section 4 of the Wireless Communications
and Public Safety Act of 1999 (47 U.S.C. 615a) to wireless
carriers, public safety answering points, and users of
wireless 9-1-1 service (as defined in paragraphs (4), (3),
and (6), respectively, of section 6 of that Act (47 U.S.C.
615b)) with respect to such release, use, and other matters.
SEC. 4269. COMMISSION PROCEEDING ON AUTODIALING.
(a) In General.--Not later than 90 days after the date of
the enactment of this Act, the Commission shall initiate a
proceeding to create a specialized Do-Not-Call registry for
public safety answering points.
(b) Features of the Registry.--The Commission shall issue
regulations, after providing the public with notice and an
opportunity to comment, that--
(1) permit verified public safety answering point
administrators or managers to register the telephone numbers
of all 9-1-1 trunks and other lines used for the provision of
emergency services to the public or for communications
between public safety agencies;
(2) provide a process for verifying, no less frequently
than once every 7 years, that registered numbers should
continue to appear upon the registry;
(3) provide a process for granting and tracking access to
the registry by the operators of automatic dialing equipment;
(4) protect the list of registered numbers from disclosure
or dissemination by parties granted access to the registry;
and
(5) prohibit the use of automatic dialing or ``robocall''
equipment to establish contact with registered numbers.
(c) Enforcement.--The Commission shall--
(1) establish monetary penalties for violations of the
protective regulations established pursuant to subsection
(b)(4) of not less than $100,000 per incident nor more than
$1,000,000 per incident;
(2) establish monetary penalties for violations of the
prohibition on automatically dialing registered numbers
established pursuant to subsection (b)(5) of not less than
$10,000 per call nor more than $100,000 per call; and
(3) provide for the imposition of fines under paragraphs
(1) or (2) that vary depending upon whether the conduct
leading to the violation was negligent, grossly negligent,
reckless, or willful, and depending on whether the violation
was a first or subsequent offence.
SEC. 4270. NHTSA REPORT ON COSTS FOR REQUIREMENTS AND
SPECIFICATIONS OF NEXT GENERATION 9-1-1
SERVICES.
(a) In General.--Not later than 1 year after the date of
the enactment of this Act, the Administrator of the National
Highway Traffic Safety Administration, in consultation with
the Commission, the Secretary of Homeland Security, and the
Office, shall prepare and submit a report to Congress that
analyzes and determines detailed costs for specific Next
Generation 9-1-1 service requirements and specifications.
(b) Purpose of Report.--The purpose of the report required
under subsection (a) is to serve as a resource for Congress
as it considers creating a coordinated, long-term funding
mechanism for the deployment and operation, accessibility,
application development, equipment procurement, and training
of personnel for Next Generation 9-1-1 services.
(c) Required Inclusions.--The report required under
subsection (a) shall include the following:
(1) How costs would be broken out geographically and/or
allocated among public safety answering points, broadband
service providers, and third-party providers of Next
Generation 9-1-1 services.
(2) An assessment of the current state of Next Generation
9-1-1 service readiness among public safety answering points.
(3) How differences in public safety answering points'
access to broadband across the country may affect costs.
(4) A technical analysis and cost study of different
delivery platforms, such as wireline, wireless, and
satellite.
(5) An assessment of the architectural characteristics,
feasibility, and limitations of Next Generation 9-1-1 service
delivery.
(6) An analysis of the needs for Next Generation 9-1-1
services of persons with disabilities.
(7) Standards and protocols for Next Generation 9-1-1
services and for incorporating Voice over Internet Protocol
and ``Real-Time Text'' standards.
SEC. 4271. FCC RECOMMENDATIONS FOR LEGAL AND STATUTORY
FRAMEWORK FOR NEXT GENERATION 9-1-1 SERVICES.
Not later than 1 year after the date of the enactment of
this Act, the Commission, in coordination with the Secretary
of Homeland Security, the Administrator of the National
Highway Traffic Safety Administration, and the Office, shall
prepare and submit a report to Congress that contains
recommendations for the legal and statutory framework for
Next Generation 9-1-1 services, consistent with
recommendations in the National Broadband Plan developed by
the Commission pursuant to the American Recovery and
Reinvestment Act of 2009, including the following:
(1) A legal and regulatory framework for the development of
Next Generation 9-1-1 services and the transition from legacy
9-1-1 to Next Generation 9-1-1 networks.
(2) Legal mechanisms to ensure efficient and accurate
transmission of 9-1-1 caller information to emergency
response agencies.
(3) Recommendations for removing jurisdictional barriers
and inconsistent legacy regulations including--
(A) proposals that would require States to remove
regulatory roadblocks to Next Generation 9-1-1 services
development, while recognizing existing State authority over
9-1-1 services;
(B) eliminating outdated 9-1-1 regulations at the Federal
level; and
(C) preempting inconsistent State regulations.
Subtitle C--Federal Spectrum Relocation
SEC. 4301. RELOCATION OF AND SPECTRUM SHARING BY FEDERAL
GOVERNMENT STATIONS.
(a) In General.--Section 113 of the National
Telecommunications and Information Administration
Organization Act (47 U.S.C. 923) is amended--
(1) in subsection (g)--
(A) by striking the heading and inserting ``Relocation of
and Spectrum Sharing by Federal Government Stations'';
(B) by amending paragraph (1) to read as follows:
``(1) Eligible federal entities.--Any Federal entity that
operates a Federal Government station authorized to use a
band of eligible frequencies described in paragraph (2) and
that incurs relocation or sharing costs because of planning
for an auction of spectrum frequencies or the reallocation of
spectrum frequencies from Federal use to exclusive non-
Federal use or to shared use shall receive payment for such
relocation or sharing costs from the Spectrum Relocation
Fund, in accordance with this section and section 118. For
purposes of this paragraph, Federal power agencies exempted
under subsection (c)(4) that choose to relocate from the
frequencies identified for reallocation pursuant to
subsection (a) are eligible to receive payment under this
paragraph.'';
(C) by amending paragraph (2)(B) to read as follows:
``(B) any other band of frequencies reallocated from
Federal use to exclusive non-Federal use or to shared use
after January 1, 2003, that
[[Page H8793]]
is assigned by competitive bidding pursuant to section 309(j)
of the Communications Act of 1934 (47 U.S.C. 309(j)).'';
(D) by amending paragraph (3) to read as follows:
``(3) Relocation or sharing costs defined.--
``(A) In general.--For purposes of this section and section
118, the term `relocation or sharing costs' means the costs
incurred by a Federal entity in connection with the auction
of spectrum frequencies previously assigned to such entity or
the sharing of spectrum frequencies assigned to such entity
(including the auction or a planned auction of the rights to
use spectrum frequencies on a shared basis with such entity)
in order to achieve comparable capability of systems as
before the relocation or sharing arrangement. Such term
includes, with respect to relocation or sharing, as the case
may be--
``(i) the costs of any modification or replacement of
equipment, spares, associated ancillary equipment, software,
facilities, operating manuals, training, or compliance with
regulations that are attributable to relocation or sharing;
``(ii) the costs of all engineering, equipment, software,
site acquisition, and construction, as well as any legitimate
and prudent transaction expense, including term-limited
Federal civil servant and contractor staff necessary to carry
out the relocation or sharing activities of a Federal entity,
and reasonable additional costs incurred by the Federal
entity that are attributable to relocation or sharing,
including increased recurring costs associated with the
replacement of facilities;
``(iii) the costs of research, engineering studies,
economic analyses, or other expenses reasonably incurred in
connection with--
``(I) calculating the estimated relocation or sharing costs
that are provided to the Commission pursuant to paragraph
(4)(A);
``(II) determining the technical or operational feasibility
of relocation to 1 or more potential relocation bands; or
``(III) planning for or managing a relocation or sharing
arrangement (including spectrum coordination with auction
winners);
``(iv) the one-time costs of any modification of equipment
reasonably necessary--
``(I) to accommodate non-Federal use of shared frequencies;
or
``(II) in the case of eligible frequencies reallocated for
exclusive non-Federal use and assigned through a system of
competitive bidding under section 309(j) of the
Communications Act of 1934 (47 U.S.C. 309(j)) but with
respect to which a Federal entity retains primary allocation
or protected status for a period of time after the completion
of the competitive bidding process, to accommodate shared
Federal and non-Federal use of such frequencies for such
period; and
``(v) the costs associated with the accelerated replacement
of systems and equipment if the acceleration is necessary to
ensure the timely relocation of systems to a new frequency
assignment or the timely accommodation of sharing of Federal
frequencies.
``(B) Comparable capability of systems.--For purposes of
subparagraph (A), comparable capability of systems--
``(i) may be achieved by relocating a Federal Government
station to a new frequency assignment, by relocating a
Federal Government station to a different geographic
location, by modifying Federal Government equipment to
mitigate interference or use less spectrum, in terms of
bandwidth, geography, or time, and thereby permitting
spectrum sharing (including sharing among relocated Federal
entities and incumbents to make spectrum available for non-
Federal use) or relocation, or by utilizing an alternative
technology; and
``(ii) includes the acquisition of state-of-the-art
replacement systems intended to meet comparable operational
scope, which may include incidental increases in
functionality.'';
(E) in paragraph (4)--
(i) in the heading, by striking ``relocations costs'' and
inserting ``relocation or sharing costs'';
(ii) by striking ``relocation costs'' each place it appears
and inserting ``relocation or sharing costs''; and
(iii) in subparagraph (A), by inserting ``or sharing''
after ``such relocation'';
(F) in paragraph (5)--
(i) by striking ``relocation costs'' and inserting
``relocation or sharing costs''; and
(ii) by inserting ``or sharing'' after ``for relocation'';
and
(G) by amending paragraph (6) to read as follows:
``(6) Implementation of procedures.--The NTIA shall take
such actions as necessary to ensure the timely relocation of
Federal entities' spectrum-related operations from
frequencies described in paragraph (2) to frequencies or
facilities of comparable capability and to ensure the timely
implementation of arrangements for the sharing of frequencies
described in such paragraph. Upon a finding by the NTIA that
a Federal entity has achieved comparable capability of
systems, the NTIA shall terminate or limit the entity's
authorization and notify the Commission that the entity's
relocation has been completed or sharing arrangement has been
implemented. The NTIA shall also terminate such entity's
authorization if the NTIA determines that the entity has
unreasonably failed to comply with the timeline for
relocation or sharing submitted by the Director of the Office
of Management and Budget under section 118(d)(2)(C).'';
(2) by redesignating subsections (h) and (i) as subsections
(k) and (l), respectively; and
(3) by inserting after subsection (g) the following:
``(h) Development and Publication of Relocation or Sharing
Transition Plans.--
``(1) Development of transition plan by federal entity.--
Not later than 240 days before the commencement of any
auction of eligible frequencies described in subsection
(g)(2), a Federal entity authorized to use any such frequency
shall submit to the NTIA and to the Technical Panel
established by paragraph (3) a transition plan for the
implementation by such entity of the relocation or sharing
arrangement. The NTIA shall specify, after public input, a
common format for all Federal entities to follow in preparing
transition plans under this paragraph.
``(2) Contents of transition plan.--The transition plan
required by paragraph (1) shall include the following
information:
``(A) The use by the Federal entity of the eligible
frequencies to be auctioned, current as of the date of the
submission of the plan.
``(B) The geographic location of the facilities or systems
of the Federal entity that use such frequencies.
``(C) The frequency bands used by such facilities or
systems, described by geographic location.
``(D) The steps to be taken by the Federal entity to
relocate its spectrum use from such frequencies or to share
such frequencies, including timelines for specific geographic
locations in sufficient detail to indicate when use of such
frequencies at such locations will be discontinued by the
Federal entity or shared between the Federal entity and non-
Federal users.
``(E) The specific interactions between the eligible
Federal entity and the NTIA needed to implement the
transition plan.
``(F) The name of the officer or employee of the Federal
entity who is responsible for the relocation or sharing
efforts of the entity and who is authorized to meet and
negotiate with non-Federal users regarding the transition.
``(G) The plans and timelines of the Federal entity for--
``(i) using funds received from the Spectrum Relocation
Fund established by section 118;
``(ii) procuring new equipment and additional personnel
needed for relocation or sharing;
``(iii) field-testing and deploying new equipment needed
for relocation or sharing; and
``(iv) hiring and relying on contract personnel, if any,
needed for relocation or sharing.
``(H) Factors that could hinder fulfillment of the
transition plan by the Federal entity.
``(3) Technical panel.--
``(A) Establishment.--There is established within the NTIA
a panel to be known as the Technical Panel.
``(B) Membership.--
``(i) Number and appointment.--The Technical Panel shall be
composed of 3 members, to be appointed as follows:
``(I) One member to be appointed by the Director of the
Office of Management and Budget (in this subsection referred
to as `OMB').
``(II) One member to be appointed by the Assistant
Secretary.
``(III) One member to be appointed by the Chairman of the
Commission.
``(ii) Qualifications.--Each member of the Technical Panel
shall be a radio engineer or a technical expert.
``(iii) Initial appointment.--The initial members of the
Technical Panel shall be appointed not later than 180 days
after the date of the enactment of the Jumpstarting
Opportunity with Broadband Spectrum Act of 2011.
``(iv) Terms.--The term of a member of the Technical Panel
shall be 18 months, and no individual may serve more than 1
consecutive term.
``(v) Vacancies.--Any member appointed to fill a vacancy
occurring before the expiration of the term for which the
member's predecessor was appointed shall be appointed only
for the remainder of that term. A member may serve after the
expiration of that member's term until a successor has taken
office. A vacancy shall be filled in the manner in which the
original appointment was made.
``(vi) No compensation.--The members of the Technical Panel
shall not receive any compensation for service on the
Technical Panel. If any such member is an employee of the
agency of the official that appointed such member to the
Technical Panel, compensation in the member's capacity as
such an employee shall not be considered compensation under
this clause.
``(C) Administrative support.--The NTIA shall provide the
Technical Panel with the administrative support services
necessary to carry out its duties under this subsection and
subsection (i).
``(D) Regulations.--Not later than 180 days after the date
of the enactment of the Jumpstarting Opportunity with
Broadband Spectrum Act of 2011, the NTIA shall, after public
notice and comment and subject to approval by the Director of
OMB, adopt regulations to govern the workings of the
Technical Panel.
``(E) Certain requirements inapplicable.--The Federal
Advisory Committee Act (5 U.S.C. App.) and sections 552 and
552b of title 5, United States Code, shall not apply to the
Technical Panel.
``(4) Review of plan by technical panel.--
``(A) In general.--Not later than 30 days after the
submission of the plan under paragraph (1), the Technical
Panel shall submit to the NTIA and to the Federal entity a
report on the sufficiency of the plan, including whether the
plan includes the information required by paragraph (2) and
an assessment of the reasonableness of the proposed timelines
and estimated relocation or sharing costs, including the
costs of any proposed expansion of the capabilities of a
Federal system in connection with relocation or sharing.
``(B) Insufficiency of plan.--If the Technical Panel finds
the plan insufficient, the Federal entity shall, not later
than 90 days after the submission of the report by the
Technical panel under subparagraph (A), submit to the
Technical Panel a revised plan. Such revised plan shall be
treated as a plan submitted under paragraph (1).
[[Page H8794]]
``(5) Publication of transition plan.--Not later than 120
days before the commencement of the auction described in
paragraph (1), the NTIA shall make the transition plan
publicly available on its website.
``(6) Updates of transition plan.--As the Federal entity
implements the transition plan, it shall periodically update
the plan to reflect any changed circumstances, including
changes in estimated relocation or sharing costs or the
timeline for relocation or sharing. The NTIA shall make the
updates available on its website.
``(7) Classified and other sensitive information.--
``(A) Classified information.--If any of the information
required to be included in the transition plan of a Federal
entity is classified information (as defined in section
798(b) of title 18, United States Code), the entity shall--
``(i) include in the plan--
``(I) an explanation of the exclusion of any such
information, which shall be as specific as possible; and
``(II) all relevant non-classified information that is
available; and
``(ii) discuss as a factor under paragraph (2)(H) the
extent of the classified information and the effect of such
information on the implementation of the relocation or
sharing arrangement.
``(B) Regulations.--Not later than 180 days after the date
of the enactment of the Jumpstarting Opportunity with
Broadband Spectrum Act of 2011, the NTIA, in consultation
with the Director of OMB and the Secretary of Defense, shall
adopt regulations to ensure that the information publicly
released under paragraph (5) or (6) does not contain
classified information or other sensitive information.
``(i) Dispute Resolution Process.--
``(1) In general.--If a dispute arises between a Federal
entity and a non-Federal user regarding the execution,
timing, or cost of the transition plan submitted by the
Federal entity under subsection (h)(1), the Federal entity or
the non-Federal user may request that the NTIA establish a
dispute resolution board to resolve the dispute.
``(2) Establishment of board.--
``(A) In general.--If the NTIA receives a request under
paragraph (1), it shall establish a dispute resolution board.
``(B) Membership and appointment.--The dispute resolution
board shall be composed of 3 members, as follows:
``(i) A representative of the Office of Management and
Budget (in this subsection referred to as `OMB'), to be
appointed by the Director of OMB.
``(ii) A representative of the NTIA, to be appointed by the
Assistant Secretary.
``(iii) A representative of the Commission, to be appointed
by the Chairman of the Commission.
``(C) Chair.--The representative of OMB shall be the Chair
of the dispute resolution board.
``(D) Vacancies.--Any vacancy in the dispute resolution
board shall be filled in the manner in which the original
appointment was made.
``(E) No compensation.--The members of the dispute
resolution board shall not receive any compensation for
service on the board. If any such member is an employee of
the agency of the official that appointed such member to the
board, compensation in the member's capacity as such an
employee shall not be considered compensation under this
subparagraph.
``(F) Termination of board.--The dispute resolution board
shall be terminated after it rules on the dispute that it was
established to resolve and the time for appeal of its
decision under paragraph (7) has expired, unless an appeal
has been taken under such paragraph. If such an appeal has
been taken, the board shall continue to exist until the
appeal process has been exhausted and the board has completed
any action required by a court hearing the appeal.
``(3) Procedures.--The dispute resolution board shall meet
simultaneously with representatives of the Federal entity and
the non-Federal user to discuss the dispute. The dispute
resolution board may require the parties to make written
submissions to it.
``(4) Deadline for decision.--The dispute resolution board
shall rule on the dispute not later than 30 days after the
request was made to the NTIA under paragraph (1).
``(5) Assistance from technical panel.--The Technical Panel
established under subsection (h)(3) shall provide the dispute
resolution board with such technical assistance as the board
requests.
``(6) Administrative support.--The NTIA shall provide the
dispute resolution board with the administrative support
services necessary to carry out its duties under this
subsection.
``(7) Appeals.--A decision of the dispute resolution board
may be appealed to the United States Court of Appeals for the
District of Columbia Circuit by filing a notice of appeal
with that court not later than 30 days after the date of such
decision. Each party shall bear its own costs and expenses,
including attorneys' fees, for any appeal under this
paragraph.
``(8) Regulations.--Not later than 180 days after the date
of the enactment of the Jumpstarting Opportunity with
Broadband Spectrum Act of 2011, the NTIA shall, after public
notice and comment and subject to approval by OMB, adopt
regulations to govern the working of any dispute resolution
boards established under paragraph (2)(A) and the role of the
Technical Panel in assisting any such board.
``(9) Certain requirements inapplicable.--The Federal
Advisory Committee Act (5 U.S.C. App.) and sections 552 and
552b of title 5, United States Code, shall not apply to a
dispute resolution board established under paragraph (2)(A).
``(j) Relocation Prioritized Over Sharing.--
``(1) In general.--In evaluating a band of frequencies for
possible reallocation for exclusive non-Federal use or shared
use, the NTIA shall give priority to options involving
reallocation of the band for exclusive non-Federal use and
shall choose options involving shared use only when it
determines, in consultation with the Director of the Office
of Management and Budget, that relocation of a Federal entity
from the band is not feasible because of technical or cost
constraints.
``(2) Notification of congress when sharing chosen.--If the
NTIA determines under paragraph (1) that relocation of a
Federal entity from the band is not feasible, the NTIA shall
notify the Committee on Commerce, Science, and Transportation
of the Senate and the Committee on Energy and Commerce of the
House of Representatives of the determination, including the
specific technical or cost constraints on which the
determination is based.''.
(b) Conforming Amendment.--Section 309(j) of the
Communications Act of 1934, as amended by section 4105, is
further amended by striking ``relocation costs'' each place
it appears and inserting ``relocation or sharing costs''.
SEC. 4302. SPECTRUM RELOCATION FUND.
Section 118 of the National Telecommunications and
Information Administration Organization Act (47 U.S.C. 928)
is amended--
(1) by striking ``relocation costs'' each place it appears
and inserting ``relocation or sharing costs'';
(2) by amending subsection (c) to read as follows:
``(c) Use of Funds.--The amounts in the Fund from auctions
of eligible frequencies are authorized to be used to pay
relocation or sharing costs of an eligible Federal entity
incurring such costs with respect to relocation from or
sharing of those frequencies.'';
(3) in subsection (d)--
(A) in paragraph (2)--
(i) in subparagraph (A), by inserting ``or sharing'' before
the semicolon;
(ii) in subparagraph (B), by inserting ``or sharing''
before the period at the end;
(iii) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively; and
(iv) by inserting before subparagraph (B), as so
redesignated, the following:
``(A) unless the eligible Federal entity has submitted a
transition plan to the NTIA as required by paragraph (1) of
section 113(h), the Technical Panel has found such plan
sufficient under paragraph (4) of such section, and the NTIA
has made available such plan on its website as required by
paragraph (5) of such section;'';
(B) by striking paragraph (3); and
(C) by adding at the end the following:
``(3) Transfers for pre-auction costs.--
``(A) In general.--Subject to subparagraph (B), the
Director of OMB may transfer to an eligible Federal entity,
at any time (including prior to a scheduled auction), such
sums as may be available in the Fund to pay relocation or
sharing costs related to pre-auction estimates or research,
as such costs are described in section 113(g)(3)(A)(iii).
``(B) Notification.--No funds may be transferred pursuant
to subparagraph (A) unless--
``(i) the notification provided under paragraph (2)(C)
includes a certification from the Director of OMB that--
``(I) funds transferred before an auction will likely allow
for timely implementation of relocation or sharing, thereby
increasing net expected auction proceeds by an amount not
less than the time value of the amount of funds transferred;
and
``(II) the auction is intended to occur not later than 5
years after transfer of funds; and
``(ii) the transition plan submitted by the eligible
Federal entity under section 113(h)(1) provides--
``(I) to the fullest extent possible, for sharing and
coordination of eligible frequencies with non-Federal users,
including reasonable accommodation by the eligible Federal
entity for the use of eligible frequencies by non-Federal
users during the period that the entity is relocating its
spectrum uses (in this clause referred to as the `transition
period');
``(II) for non-Federal users to be able to use eligible
frequencies during the transition period in geographic areas
where the eligible Federal entity does not use such
frequencies;
``(III) that the eligible Federal entity will, during the
transition period, make itself available for negotiation and
discussion with non-Federal users not later than 30 days
after a written request therefor; and
``(IV) that the eligible Federal entity will, during the
transition period, make available to a non-Federal user with
appropriate security clearances any classified information
(as defined in section 798(b) of title 18, United States
Code) regarding the relocation process, on a need-to-know
basis, to assist the non-Federal user in the relocation
process with such eligible Federal entity or other eligible
Federal entities.
``(C) Applicability to certain costs.--
``(i) In general.--The Director of OMB may transfer under
subparagraph (A) not more than $10,000,000 for costs incurred
after June 28, 2010, but before the date of the enactment of
the Jumpstarting Opportunity with Broadband Spectrum Act of
2011.
``(ii) Supplement not supplant.--Any amounts transferred by
the Director of OMB pursuant to clause (i) shall be in
addition to any amounts that the Director of OMB may transfer
for costs incurred on or after the date of the enactment of
the Jumpstarting Opportunity with Broadband Spectrum Act of
2011.
``(4) Reversion of unused funds.--Any amounts in the Fund
that are remaining after the payment of the relocation or
sharing costs that are payable from the Fund shall revert to
and be deposited in the general fund of the Treasury, for the
sole purpose of deficit reduction, not later than 8 years
after the date of the
[[Page H8795]]
deposit of such proceeds to the Fund, unless within 60 days
in advance of the reversion of such funds, the Director of
OMB, in consultation with the NTIA, notifies the
congressional committees described in paragraph (2)(C) that
such funds are needed to complete or to implement current or
future relocation or sharing arrangements.'';
(4) in subsection (e)--
(A) in paragraph (1)(B)--
(i) in clause (i), by striking ``subsection (d)(2)(A)'' and
inserting ``subsection (d)(2)(B)''; and
(ii) in clause (ii), by striking ``subsection (d)(2)(B)''
and inserting ``subsection (d)(2)(C)''; and
(B) in paragraph (2)--
(i) by striking ``entity's relocation'' and inserting
``relocation of the entity or implementation of the sharing
arrangement by the entity'';
(ii) by inserting ``or the implementation of such
arrangement'' after ``such relocation''; and
(iii) by striking ``subsection (d)(2)(A)'' and inserting
``subsection (d)(2)(B)''; and
(5) by adding at the end the following:
``(f) Additional Payments From Fund.--
``(1) Amounts available.--Notwithstanding subsections (c)
through (e), after the date of the enactment of the
Jumpstarting Opportunity with Broadband Spectrum Act of 2011,
there are appropriated from the Fund and available to the
Director of OMB for use in accordance with paragraph (2) not
more than 10 percent of the amounts deposited in the Fund
from auctions occurring after such date of enactment of
licenses for the use of spectrum vacated by eligible Federal
entities.
``(2) Use of amounts.--
``(A) In general.--The Director of OMB, in consultation
with the NTIA, may use amounts made available under paragraph
(1) to make payments to eligible Federal entities that are
implementing a transition plan submitted under section
113(h)(1) in order to encourage such entities to complete the
implementation more quickly, thereby encouraging timely
access to the eligible frequencies that are being reallocated
for exclusive non-Federal use or shared use.
``(B) Conditions.--In the case of any payment by the
Director of OMB under subparagraph (A)--
``(i) such payment shall be based on the market value of
the eligible frequencies, the timeliness with which the
eligible Federal entity clears its use of such frequencies,
and the need for such frequencies in order for the entity to
conduct its essential missions;
``(ii) the eligible Federal entity shall use such payment
for the purposes specified in clauses (i) through (v) of
section 113(g)(3)(A) to achieve comparable capability of
systems affected by the reallocation of eligible frequencies
from Federal use to exclusive non-Federal use or to shared
use;
``(iii) such payment may not be made if the amount
remaining in the Fund after such payment will be less than 10
percent of the winning bids in the auction of the spectrum
with respect to which the Federal entity is incurring
relocation or sharing costs; and
``(iv) such payment may not be made until 30 days after the
Director of OMB has notified the congressional committees
described in subsection (d)(2)(C).''.
SEC. 4303. NATIONAL SECURITY AND OTHER SENSITIVE INFORMATION.
Part B of title I of the National Telecommunications and
Information Administration Organization Act (47 U.S.C. 921 et
seq.) is amended by adding at the end the following:
``SEC. 119. NATIONAL SECURITY AND OTHER SENSITIVE
INFORMATION.
``(a) Determination.--If the head of an Executive agency
(as defined in section 105 of title 5, United States Code)
determines that public disclosure of any information
contained in a notification or report required by section 113
or 118 would reveal classified national security information,
or other information for which there is a legal basis for
nondisclosure and the public disclosure of which would be
detrimental to national security, homeland security, or
public safety or would jeopardize a law enforcement
investigation, the head of the Executive agency shall notify
the Assistant Secretary of that determination prior to the
release of such information.
``(b) Inclusion in Annex.--The head of the Executive agency
shall place the information with respect to which a
determination was made under subsection (a) in a separate
annex to the notification or report required by section 113
or 118. The annex shall be provided to the subcommittee of
primary jurisdiction of the congressional committee of
primary jurisdiction in accordance with appropriate national
security stipulations but shall not be disclosed to the
public or provided to any unauthorized person through any
means.''.
Subtitle D--Telecommunications Development Fund
SEC. 4401. NO ADDITIONAL FEDERAL FUNDS.
Section 309(j)(8)(C)(iii) of the Communications Act of 1934
(47 U.S.C. 309(j)(8)(C)(iii)) is amended to read as follows:
``(iii) the interest accrued to the account shall be
deposited in the general fund of the Treasury, where such
amount shall be dedicated for the sole purpose of deficit
reduction.''.
SEC. 4402. INDEPENDENCE OF THE FUND.
Section 714 of the Communications Act of 1934 (47 U.S.C.
614) is amended--
(1) by striking subsection (c) and inserting the following:
``(c) Independent Board of Directors.--The Fund shall have
a Board of Directors consisting of 5 people with experience
in areas including finance, investment banking, government
banking, communications law and administrative practice, and
public policy. The Board of Directors shall select annually a
Chair from among the directors. A nominating committee,
comprised of the Chair and 2 other directors selected by the
Chair, shall appoint additional directors. The Fund's bylaws
shall regulate the other aspects of the Board of Directors,
including provisions relating to meetings, quorums,
committees, and other matters, all as typically contained in
the bylaws of a similar private investment fund.'';
(2) in subsection (d)--
(A) by striking ``(after consultation with the Commission
and the Secretary of the Treasury)'';
(B) by striking paragraph (1); and
(C) by redesignating paragraphs (2) through (4) as
paragraphs (1) through (3), respectively; and
(3) in subsection (g), by striking ``subsection (d)(2)''
and inserting ``subsection (d)(1)''.
TITLE V--OFFSETS
Subtitle A--Guarantee Fees
SEC. 5001. GUARANTEE FEES.
Subpart A of part 2 of subtitle A of title XIII of the
Housing and Community Development Act of 1992 is amended by
adding after section 1326 (12 U.S.C. 4546) the following new
section:
``SEC. 1327. ENTERPRISE GUARANTEE FEES.
``(a) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Guarantee fee.--The term `guarantee fee'--
``(A) means a fee described in subsection (b); and
``(B) includes--
``(i) the guaranty fee charged by the Federal National
Mortgage Association with respect to mortgage-backed
securities; and
``(ii) the management and guarantee fee charged by the
Federal Home Loan Mortgage Corporation with respect to
participation certificates.
``(2) Average fees.--The term `average fees' means the
average contractual fee rate of single-family guaranty
arrangements by an enterprise entered into during 2011, plus
the recognition of any up-front cash payments over an
estimated average life, expressed in terms of basis points.
Such definition shall be interpreted in a manner consistent
with the annual report on guarantee fees by the Federal
Housing Finance Agency.
``(b) Increase.--
``(1) In general.--
``(A) Phased increase required.--Subject to subsection (c),
the Director shall require each enterprise to charge a
guarantee fee in connection with any guarantee of the timely
payment of principal and interest on securities, notes, and
other obligations based on or backed by mortgages on
residential real properties designed principally for
occupancy of from 1 to 4 families, consummated after the date
of enactment of this section.
``(B) Amount.--The amount of the increase required under
this section shall be determined by the Director to
appropriately reflect the risk of loss, as well the cost of
capital allocated to similar assets held by other fully
private regulated financial institutions, but such amount
shall be not less than an average increase of 10 basis points
for each origination year or book year above the average fees
imposed in 2011 for such guarantees. The Director shall
prohibit an enterprise from offsetting the cost of the fee to
mortgage originators, borrowers, and investors by decreasing
other charges, fees, or premiums, or in any other manner.
``(2) Authority to limit offer of guarantee.--The Director
shall prohibit an enterprise from consummating any offer for
a guarantee to a lender for mortgage-backed securities, if--
``(A) the guarantee is inconsistent with the requirements
of this section; or
``(B) the risk of loss is allowed to increase, through
lowering of the underwriting standards or other means, for
the primary purpose of meeting the requirements of this
section.
``(3) Deposit in treasury.--To the extent that amounts are
received from fee increases imposed under this section that
are necessary to comply with the minimum increase required by
this subsection, such amounts shall be deposited directly
into the United States Treasury, and shall be available only
to the extent provided in subsequent appropriations Acts.
Such fees shall not be considered a reimbursement to the
Federal Government for the costs or subsidy provided to an
enterprise.
``(c) Phase-In.--
``(1) In general.--The Director may provide for compliance
with subsection (b) by allowing each enterprise to increase
the guarantee fee charged by the enterprise gradually over
the 2-year period beginning on the date of enactment of this
section, in a manner sufficient to comply with this section.
In determining a schedule for such increases, the Director
shall--
``(A) provide for uniform pricing among lenders;
``(B) provide for adjustments in pricing based on risk
levels; and
``(C) take into consideration conditions in financial
markets.
``(2) Rule of construction.--Nothing in this subsection
shall be interpreted to undermine the minimum increase
required by subsection (b).
``(d) Information Collection and Annual Analysis.--The
Director shall require each enterprise to provide to the
Director, as part of its annual report submitted to
Congress--
``(1) a description of--
``(A) changes made to up-front fees and annual fees as part
of the guarantee fees negotiated with lenders; and
``(B) changes to the riskiness of the new borrowers
compared to previous origination years or book years; and
``(2) an assessment of how the changes in the guarantee
fees described in paragraph (1) met the requirements of
subsection (b).
[[Page H8796]]
``(e) Enforcement.--
``(1) Required adjustments.--Based on the information from
subsection (d) and any other information the Director deems
necessary, the Director shall require an enterprise to make
adjustments in its guarantee fee in order to be in compliance
with subsection (b).
``(2) Noncompliance penalty.--An enterprise that has been
found to be out of compliance with subsection (b) for any 2
consecutive years shall be precluded from providing any
guarantee for a period, determined by rule of the Director,
but in no case less than 1 year.
``(3) Rule of construction.--Nothing in this subsection
shall be interpreted as preventing the Director from
initiating and implementing an enforcement action against an
enterprise, at a time the Director deems necessary, under
other existing enforcement authority.
``(f) Authority for Other Increases.--Nothing in this
section may be construed to prohibiting, restricting, or
limiting increases, other than pursuant to this section, in
the guarantee fees charged by an enterprise.
``(g) Expiration.--The provisions of this section shall
expire on October 1, 2021.''.
Subtitle B--Social Security Provisions
SEC. 5101. INFORMATION FOR ADMINISTRATION OF SOCIAL SECURITY
PROVISIONS RELATED TO NONCOVERED EMPLOYMENT.
(a) Collection.--Subsection (d) of section 6047 of the
Internal Revenue Code of 1986 is amended by redesignating
paragraph (2) as paragraph (3) and by inserting after
paragraph (1) the following new paragraph:
``(2) Deferred compensation plans of a state.--
``(A) In general.--In the case of any employer deferred
compensation plan (as defined in section 3405(e)(5)) of a
State, a political subdivision thereof, or any agency or
instrumentality of any of the foregoing, the Secretary shall
in such forms or regulations require, to the extent such
information is known or should be known, the identification
of any designated distribution (as defined in section
3405(e)(1)) if paid to any participant or beneficiary of such
plan based in whole or in part upon an individual's earnings
for service in the employ of any such governmental entity.
``(B) State.--For purposes of subparagraph (A), the term
`State' includes the District of Columbia, the Commonwealth
or Puerto Rico, the Virgin Island, Guam, and American
Samoa.''.
(b) Disclosure.--Paragraph (1) of section 6103(l) of such
Code is amended by striking ``and'' at the end of
subparagraph (B), by striking the period at the end of
subparagraph (C) and inserting ``; and'', and by adding at
the end the following:
``(D) any designated distribution described in section
6047(d)(2) to the Social Security Administration for purposes
of its administration of the Social Security Act.''.
(c) Effective Dates.--
(1) Subsection (a).--The amendments made by subsection (a)
shall apply to distributions made after December 31, 2012.
(2) Subsection (b).--The amendment made by subsection (b)
shall apply to disclosures made after December 31, 2012.
Subtitle C--Child Tax Credit
SEC. 5201. SOCIAL SECURITY NUMBER REQUIRED TO CLAIM THE
REFUNDABLE PORTION OF THE CHILD TAX CREDIT.
(a) In General.--Subsection (d) of section 24 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(5) Identification requirement with respect to
taxpayer.--
``(A) In general.--Paragraph (1) shall not apply to any
taxpayer for any taxable year unless the taxpayer includes
the taxpayer's Social Security number on the return of tax
for such taxable year.
``(B) Joint returns.--In the case of a joint return, the
requirement of subparagraph (A) shall be treated as met if
the Social Security number of either spouse is included on
such return.''.
(b) Omission Treated as Mathematical or Clerical Error.--
Subparagraph (I) of section 6213(g)(2) of such Code is
amended to read as follows:
``(I) an omission of a correct Social Security number
required under section 24(d)(5) (relating to refundable
portion of child tax credit), or a correct TIN under section
24(e) (relating to child tax credit), to be included on a
return,''.
(c) Conforming Amendment.--Subsection (e) of section 24 of
such Code is amended by inserting ``With Respect to
Qualifying Children'' after ``Identification Requirement'' in
the heading thereof.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
Subtitle D--Eliminating Taxpayer Benefits for Millionaires
SEC. 5301. ENDING UNEMPLOYMENT AND SUPPLEMENTAL NUTRITION
ASSISTANCE PROGRAM BENEFITS FOR MILLIONAIRES.
(a) Ending Unemployment Benefits for Millionaires.--
(1) In general.--Subtitle E of the Internal Revenue Code of
1986 is amended by adding at the end the following new
chapter:
``CHAPTER 56--EXCESS UNEMPLOYMENT COMPENSATION
``Sec. 5895. Excess unemployment compensation.
``SEC. 5895. EXCESS UNEMPLOYMENT COMPENSATION.
``(a) Imposition of Tax.--There is hereby imposed a tax
equal to 100 percent of the excess unemployment compensation
received by a taxpayer in any taxable year.
``(b) Excess Unemployment Compensation.--For purposes of
this section, the term `excess unemployment compensation'
means, with respect to any State, the amount which bears the
same ratio (not to exceed 1) to the amount of unemployment
compensation received by the taxpayer from such State in the
taxable year as--
``(1) the excess of--
``(A) the taxpayer's adjusted gross income for such taxable
year, over
``(B) $750,000 ($1,500,000 in the case of a joint return),
bears to
``(2) $250,000 ($500,000 in the case of a joint return).
``(c) Additional Definitions.--For purposes of this
section--
``(1) Adjusted gross income.--The term `adjusted gross
income' has the meaning given such term by section 62.
``(2) Unemployment compensation.--The term `unemployment
compensation' has the meaning given such term by section
85(b).
``(d) Administrative Provisions.--For purposes of the
deficiency procedures of subtitle F, any tax imposed by this
section shall be treated as a tax imposed by subtitle A.
``(e) Transfer of Tax Receipts.--With respect to excess
unemployment compensation received by any taxpayer from a
State, there is hereby appropriated to the unemployment fund
(as defined in section 3306(f)) of such State, an amount
equal to the amount of the tax imposed under subsection (a)
on such excess unemployment compensation received in the
Treasury.''.
(2) Tax not deductible.--Section 275(a) of the Internal
Revenue Code of 1986 is amended by inserting after paragraph
(6) the following new paragraph:
``(7) Tax imposed by section 5895.''.
(3) Clerical amendment.--The table of chapters for subtitle
E of the Internal Revenue Code of 1986 is amended by adding
at the end the following new item:
``Chapter 56--Excess Unemployment Compensation''.
(4) Effective date.--The amendments made by this subsection
shall apply to unemployment compensation received in taxable
years beginning after December 31, 2011.
(b) Ending Supplemental Nutrition Assistance Program
Benefits for Millionaires.--
(1) In general.--Section 6 of the Food and Nutrition Act of
2008 (7 U.S.C. 2015) is amended by adding at the end the
following:
``(r) Disqualification for Receipt of Assets of at Least
$1,000,000.--Any household in which a member receives income
or assets with a fair market value of at least $1,000,000
shall, immediately on the receipt of the assets, become
ineligible for further participation in the program until the
date on which the household meets the income eligibility and
allowable financial resources standards under section 5.''.
(2) Conforming amendments.--Section 5(a) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2014(a)) is amended in the
second sentence by striking ``sections 6(b), 6(d)(2), and
6(g)'' and inserting ``subsections (b), (d)(2), (g), and (r)
of section 6''.
Subtitle E--Federal Civilian Employees
PART 1--RETIREMENT ANNUITIES
SEC. 5401. SHORT TITLE.
This part may be cited as the ``Securing Annuities for
Federal Employees Act of 2011''.
SEC. 5402. RETIREMENT CONTRIBUTIONS.
(a) Civil Service Retirement System.--
(1) Individual contributions.--Section 8334(a)(1)(A) of
title 5, United States Code, is amended--
(A) by striking ``(a)(1)(A) The'' and inserting
``(a)(1)(A)(i) Except as provided in clause (ii), the''; and
(B) by adding at the end the following:
``(ii) The percentage of basic pay to be deducted and
withheld under clause (i) shall--
``(I) for each of calendar years 2013, 2014, and 2015, be
equal to the percentage that applied in the preceding
calendar year (as increased under this subclause, if
applicable), plus an additional 0.5 percentage point; and
``(II) for each calendar year after 2015, be equal to the
applicable percentage for calendar year 2015 (as determined
under subclause (I)).''.
(2) Government contributions.--Section 8334(a)(1)(B) of
title 5, United States Code, is amended--
(A) in clause (i), by striking ``Except as provided in
clause (ii),'' and inserting ``Except as provided in clause
(ii) or (iii),''; and
(B) by adding at the end the following:
``(iii) The amount to be contributed under clause (i)
shall, with respect to a period in any calendar year
specified in subparagraph (A)(ii), be equal to--
``(I) the amount that would otherwise apply under clause
(i), reduced by
``(II) the amount by which the withholding under
subparagraph (A) exceeds the amount which would (but for
clause (ii) of such subparagraph) otherwise have been
withheld under such subparagraph from the basic pay of the
employee or elected official involved with respect to such
period.''.
(3) Offset rule.--Section 8334(k) of title 5, United States
Code, is amended by adding at the end the following:
``(5) This subsection shall be applied in a manner
consistent with subsections (a)(1)(A)(ii) and (a)(1)(B)(iii)
of section 8334.''.
(b) Federal Employees' Retirement System.--Section 8422(a)
of title 5, United States Code, is amended--
(1) in paragraph (1), by striking ``paragraph (2).'' and
inserting ``this subsection.''; and
(2) by adding at the end the following:
``(4) Notwithstanding any other provision of this
subsection, the percentage to be deducted and withheld under
this subsection shall--
``(A) for each of calendar years 2013, 2014, and 2015, be
equal to the percentage that applied in
[[Page H8797]]
the preceding calendar year under this subsection (including
this subparagraph, if applicable), plus an additional 0.5
percentage point; and
``(B) for each calendar year after 2015, be equal to the
applicable percentage for calendar year 2015 (as determined
under subparagraph (A)).''.
(c) Foreign Service.--For provisions of law requiring
maintenance of existing conformity--
(1) between the Civil Service Retirement System and the
Foreign Service Retirement System, and
(2) between the Federal Employees' Retirement System and
the Foreign Service Pension System,
see section 827 of the Foreign Service Act of 1980 (22 U.S.C.
4067).
(d) CIARDS.--
(1) Compatibility with csrs.--In order to carry out the
purposes of this section with respect to the Central
Intelligence Agency Retirement and Disability System, the
authority under section 292 of the Central Intelligence
Agency Retirement Act (50 U.S.C. 2141) shall be applied.
(2) Applicability of fers.--For provisions of law providing
for the application of the Federal Employees' Retirement
System with respect to employees of the Central Intelligence
Agency, see title III of the Central Intelligence Agency
Retirement Act (50 U.S.C. 2151 and following).
(e) TVA.--Section 3 of the Tennessee Valley Authority Act
of 1933 (16 U.S.C. 831b) is amended by adding at the end the
following:
``(c) The chief executive officer shall prescribe any
regulations which may be necessary in order to carry out the
purposes of the Securing Annuities for Federal Employees Act
of 2011 with respect to any defined benefit plan covering
employees of the Tennessee Valley Authority.''.
SEC. 5403. AMENDMENTS RELATING TO SECURE ANNUITY EMPLOYEES.
(a) Definition of Secure Annuity Employee.--Section 8401 of
title 5, United States Code, is amended--
(1) in paragraph (35), by striking ``and'' at the end;
(2) in paragraph (36), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(37) the term `secure annuity employee' means an employee
or Member who--
``(A) first becomes subject to this chapter after December
31, 2012; and
``(B) at the time of first becoming subject to this
chapter, does not have at least 5 years of civilian service
creditable under the Civil Service Retirement System or any
other retirement system for Government employees.''.
(b) Individual Contributions.--Section 8422(a) of title 5,
United States Code (as amended by section 2(b)) is further
amended--
(1) in paragraph (4) (as added by section 2(b)), in the
matter before subparagraph (A), by inserting ``and except in
the case of a secure annuity employee,'' after ``this
subsection''; and
(2) by adding after paragraph (4) (as so added) the
following:
``(5) Notwithstanding any other provision of this
subsection, in the case of a secure annuity employee, the
percentage to be deducted and withheld shall be computed
under paragraphs (1) through (3), except that the applicable
percentage under paragraph (3) for civilian service shall--
``(A) in the case of a secure annuity employee who is an
employee, be equal to 10.2 percent; and
``(B) in the case of a secure annuity employee who is not
subject to subparagraph (A), 10.7 percent.''.
(c) Average Pay.--Section 8401(3) of title 5, United States
Code, is amended--
(1) by striking ``(3)'' and inserting ``(3)(A)''; and
(2) by adding ``except that'' after the semicolon; and
(3) by adding at the end the following:
``(B) in the case of a secure annuity employee, the term
`average pay' has the meaning determined applying
subparagraph (A)--
``(i) by substituting `5 consecutive years' for `3
consecutive years'; and
``(ii) by substituting `5 years' for `3 years'.''.
(d) Computation of Basic Annuity.--Section 8415 of title 5,
United States Code, is amended--
(1) by striking subsections (a) through (e) and inserting
the following:
``(a) Except as otherwise provided in this section, the
annuity of an employee retiring under this subchapter is--
``(1) except as provided under paragraph (2), 1 percent of
that individual's average pay multiplied by such individual's
total service; or
``(2) in the case of a secure annuity employee, 0.7 percent
of that individual's average pay multiplied by such
individual's total service.
``(b) The annuity of a Member, or former Member with title
to a Member annuity, retiring under this subchapter is
computed under subsection (a), except that if the individual
has had at least 5 years of service as a Member or
Congressional employee, or any combination thereof, so much
of the annuity as is computed with respect to either such
type of service (or a combination thereof), not exceeding a
total of 20 years, shall be computed--
``(1) except as provided under paragraph (2), by
multiplying 1.7 percent of the individual's average pay by
the years of such service; or
``(2) in the case of an individual who is a secure annuity
employee, by multiplying 1.4 percent of the individual's
average pay by the years of such service.
``(c) The annuity of a Congressional employee, or former
Congressional employee, retiring under this subchapter is
computed under subsection (a), except that if the individual
has had at least 5 years of service as a Congressional
employee or Member, or any combination thereof, so much of
the annuity as is computed with respect to either such type
of service (or a combination thereof), not exceeding a total
of 20 years, shall be computed--
``(1) except as provided under paragraph (2), by
multiplying 1.7 percent of the individual's average pay by
the years of such service; or
``(2) in the case of an individual who is a secure annuity
employee, by multiplying 1.4 percent of the individual's
average pay by the years of such service.
``(d) The annuity of an employee retiring under subsection
(d) or (e) of section 8412 or under subsection (a), (b), or
(c) of section 8425 is--
``(1) except as provided under paragraph (2)--
``(A) 1.7 percent of that individual's average pay
multiplied by so much of such individual's total service as
does not exceed 20 years; plus
``(B) 1 percent of that individual's average pay multiplied
by so much of such individual's total service as exceeds 20
years; or
``(2) in the case of an individual who is a secure annuity
employee--
``(A) 1.4 percent of that individual's average pay
multiplied by so much of such individual's total service as
does not exceed 20 years; plus
``(B) 0.7 percent of that individual's average pay
multiplied by so much of such individual's total service as
exceeds 20 years.
``(e) The annuity of an air traffic controller or former
air traffic controller retiring under section 8412(a) is
computed under subsection (a), except that if the individual
has had at least 5 years of service as an air traffic
controller as defined by section 2109(1)(A)(i), so much of
the annuity as is computed with respect to such type of
service shall be computed--
``(1) except as provided under paragraph (2), by
multiplying 1.7 percent of the individual's average pay by
the years of such service; or
``(2) in the case of an individual who is a secure annuity
employee, by multiplying 1.4 percent of the individual's
average pay by the years of such service.''; and
(2) in subsection (h)--
(A) in paragraph (1), by striking ``subsection (a)'' and
inserting ``subsection (a)(1)''; and
(B) in paragraph (2), in the matter following subparagraph
(B), by striking ``or customs and border protection officer''
and inserting ``customs and border protection officer, or
secure annuity employee.''.
SEC. 5404. ANNUITY SUPPLEMENT.
Section 8421(a) of title 5, United States Code, is
amended--
(1) in paragraph (1), by striking ``paragraph (3)'' and
inserting ``paragraphs (3) and (4)'';
(2) in paragraph (2), by striking ``paragraph (3)'' and
inserting ``paragraphs (3) and (4)''; and
(3) by adding at the end the following:
``(4)(A) Except as provided in subparagraph (B), no annuity
supplement under this section shall be payable in the case of
an individual whose entitlement to annuity is based on such
individual's separation from service after December 31, 2012.
``(B) Nothing in this paragraph applies in the case of an
individual separating under subsection (d) or (e) of section
8412.''.
PART 2--FEDERAL WORKFORCE
SEC. 5421. EXTENSION OF PAY LIMITATION FOR FEDERAL EMPLOYEES.
(a) In General.--Section 147 of the Continuing
Appropriations Act, 2011 (Public Law 111-242), as amended by
section 1(a) of the Continuing Appropriations and Surface
Transportation Extensions Act, 2011 (Public Law 111-322; 124
Stat. 3518), is further amended--
(1) in subsection (b)(1), by striking ``December 31, 2012''
and inserting ``December 31, 2013''; and
(2) in subsection (c), by striking ``December 31, 2012''
and inserting ``December 31, 2013''.
(b) Application to Legislative Branch.--
(1) Members of congress.--The extension of the pay limit
for Federal employees through December 31, 2013, as
established pursuant to the amendments made by subsection
(a), shall apply to Members of Congress in accordance with
section 601(a) of the Legislative Reorganization Act of 1946
(2 U.S.C. 31).
(2) Other legislative branch employees.--
(A) Limit in pay.--Notwithstanding any other provision of
law, no cost of living adjustment required by statute with
respect to a legislative branch employee which (but for this
subparagraph) would otherwise take effect during the period
beginning on the date of enactment of this Act and ending on
December 31, 2013, shall be made.
(B) Definition.--In this paragraph, the term ``legislative
branch employee'' means--
(i) an employee of the Federal Government whose pay is
disbursed by the Secretary of the Senate or the Chief
Administrative Officer of the House of Representatives; and
(ii) an employee of any office of the legislative branch
who is not described in clause (i).
SEC. 5422. REDUCTION OF DISCRETIONARY SPENDING LIMITS TO
ACHIEVE SAVINGS FROM FEDERAL EMPLOYEE
PROVISIONS.
Section 251(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended to read as follows:
``(c) Discretionary Spending Limit.--As used in this part,
the term `discretionary spending limit' means--
``(1) with respect to fiscal year 2013--
``(A) for the security category, $685,000,000,000 in new
budget authority; and
``(B) for the nonsecurity category, $359,000,000,000 in new
budget authority;
``(2) with respect to fiscal year 2014, for the
discretionary category, $1,063,000,000,000 in new budget
authority;
``(3) with respect to fiscal year 2015, for the
discretionary category, $1,083,000,000,000 in new budget
authority;
``(4) with respect to fiscal year 2016, for the
discretionary category, $1,104,000,000,000 in new budget
authority;
[[Page H8798]]
``(5) with respect to fiscal year 2017, for the
discretionary category, $1,128,000,000,000 in new budget
authority;
``(6) with respect to fiscal year 2018, for the
discretionary category, $1,153,000,000,000 in new budget
authority;
``(7) with respect to fiscal year 2019, for the
discretionary category, $1,178,000,000,000 in new budget
authority;
``(8) with respect to fiscal year 2020, for the
discretionary category, $1,204,000,000,000 in new budget
authority; and
``(9) with respect to fiscal year 2021, for the
discretionary category, $1,230,000,000,000 in new budget
authority;
as adjusted in strict conformance with subsection (b).''.
SEC. 5423. REDUCTION OF REVISED DISCRETIONARY SPENDING LIMITS
TO ACHIEVE SAVINGS FROM FEDERAL EMPLOYEE
PROVISIONS.
Paragraph (2) of section 251A of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended to read as
follows:
``(2) Revised discretionary spending limits.--The
discretionary spending limits for fiscal years 2013 through
2021 under section 251(c) shall be replaced with the
following:
``(A) For fiscal year 2013--
``(i) for the security category, $546,000,000,000 in budget
authority; and
``(ii) for the nonsecurity category, $499,000,000,000 in
budget authority.
``(B) For fiscal year 2014--
``(i) for the security category, $556,000,000,000 in budget
authority; and
``(ii) for the nonsecurity category, $507,000,000,000 in
budget authority.
``(C) For fiscal year 2015--
``(i) for the security category, $566,000,000,000 in budget
authority; and
``(ii) for the nonsecurity category, $517,000,000,000 in
budget authority.
``(D) For fiscal year 2016--
``(i) for the security category, $577,000,000,000 in budget
authority; and
``(ii) for the nonsecurity category, $527,000,000,000 in
budget authority.
``(E) For fiscal year 2017--
``(i) for the security category, $590,000,000,000 in budget
authority; and
``(ii) for the nonsecurity category, $538,000,000,000 in
budget authority.
``(F) For fiscal year 2018--
``(i) for the security category, $603,000,000,000 in budget
authority; and
``(ii) for the nonsecurity category, $550,000,000,000 in
budget authority.
``(G) For fiscal year 2019--
``(i) for the security category, $616,000,000,000 in budget
authority; and
``(ii) for the nonsecurity category, $562,000,000,000 in
budget authority.
``(H) For fiscal year 2020--
``(i) for the security category, $630,000,000,000 in budget
authority; and
``(ii) for the nonsecurity category, $574,000,000,000 in
budget authority.
``(I) For fiscal year 2021--
``(i) for the security category, $644,000,000,000 in budget
authority; and
``(ii) for the nonsecurity category, $586,000,000,000 in
budget authority.''.
Subtitle F--Health Care Provisions
SEC. 5501. INCREASE IN APPLICABLE PERCENTAGE USED TO
CALCULATE MEDICARE PART B AND PART D PREMIUMS
FOR HIGH-INCOME BENEFICIARIES.
(a) In General.--Section 1839(i)(3)(C)(i) of the Social
Security Act (42 U.S.C. 1395r(i)(3)(C)(i)) is amended--
(1) by striking ``In general.--'' and inserting ``In
general.--(I) For calendar years prior to 2017:''; and
(2) by adding at the end the following new subclause:
``(II) For calendar year 2017 and each subsequent calendar
year:
------------------------------------------------------------------------
``If the modified adjusted
gross is: The applicable percentage is:
------------------------------------------------------------------------
More than $80,000 but not more 40.25 percent
than $100,000.
More than $100,000 but not 57.5 percent
more than $150,000.
More than $150,000 but not 74.75 percent
more than $200,000.
More than $200,000............ 90 percent.''.
------------------------------------------------------------------------
(b) Conforming Amendment.--Section 1839(i)(3)(A)(i) of the
Social Security Act (42 U.S.C. 1395r(i)(3)(A)(i)) is amended,
by inserting ``and year'' after ``individual''.
SEC. 5502. TEMPORARY ADJUSTMENT TO THE CALCULATION OF
MEDICARE PART B AND PART D PREMIUMS.
(a) In General.--Section 1839(i)(6) of the Social Security
Act (42 U.S.C. 1395r(i)(6)) is amended in the matter
preceding subparagraph (A) by striking ``December 31, 2019''
and inserting ``December 31 of the first year after the year
in which at least 25 percent of individuals enrolled under
this part are subject to a reduction under this subsection to
the monthly amount of the premium subsidy applicable to the
premium under this section.''.
(b) Application of Inflation Adjustment.--Section
1839(i)(5) of the Social Security Act (42 U.S.C. 1395r(i)(5))
is amended--
(1) in subparagraph (A), by striking ``In the case'' and
inserting ``Subject to subparagraph (C), in the case''; and
(2) by adding at the end the following new subparagraph:
``(C) Treatment of years after temporary adjustment
period.--In applying subparagraph (A) for the first year
beginning after the period described in paragraph (6) and for
each subsequent year, the 12-month period ending with August
2006 described in clause (ii) of such subparagraph shall be
deemed to be the 12-month period ending with August of the
last year of such period described in paragraph (6).''.
TITLE VI--MISCELLANEOUS PROVISIONS
SEC. 6001. REPEAL OF CERTAIN SHIFTS IN THE TIMING OF
CORPORATE ESTIMATED TAX PAYMENTS.
The following provisions of law (and any modification of
any such provision which is contained in any other provision
of law) shall not apply with respect to any installment of
corporate estimated tax:
(1) Section 201(b) of the Corporate Estimated Tax Shift Act
of 2009.
(2) Section 561 of the Hiring Incentives to Restore
Employment Act.
(3) Section 505 of the United States-Korea Free Trade
Agreement Implementation Act.
(4) Section 603 of the United States-Colombia Trade
Promotion Agreement Implementation Act.
(5) Section 502 of the United State-Panama Trade Promotion
Agreement Implementation Act.
SEC. 6002. REPEAL OF REQUIREMENT RELATING TO TIME FOR
REMITTING CERTAIN MERCHANDISE PROCESSING FEES.
(a) Repeal.--The Trade Adjustment Assistance Extension Act
of 2011 (title II of Public Law 112-40; 125 Stat. 402) is
amended by striking section 263.
(b) Clerical Amendment.--The table of contents for such Act
is amended by striking the item relating to section 263.
SEC. 6003. POINTS OF ORDER IN THE SENATE.
(a) Point of Order To Protect the Social Security Trust
Fund.--
(1) Notwithstanding any other provision of law, it shall
not be in order in the Senate to consider any measure that
extends the dates referenced in section 601(c) of the Tax
Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010 (26 U.S.C. 1401 note).
(2) The provisions of this subsection may be waived in the
Senate only by the affirmative vote of two-thirds of the
Members, duly chosen and sworn.
(b) Point of Order Against an Emergency Designation.--
Section 314 of the Congressional Budget Act of 1974 is
amended by--
(1) redesignating subsection (e) as subsection (f); and
(2) inserting after subsection (d) the following:
``(e) Senate Point of Order Against an Emergency
Designation.--
``(1) In general.--When the Senate is considering a bill,
resolution, amendment, motion, amendment between the Houses,
or conference report, if a point of order is made by a
Senator against an emergency designation in that measure,
that provision making such a designation shall be stricken
from the measure and may not be offered as an amendment from
the floor.
``(2) Supermajority waiver and appeals.--
``(A) Waiver.--Paragraph (1) may be waived or suspended in
the Senate only by an affirmative vote of three-fifths of the
Members, duly chosen and sworn.
``(B) Appeals.--Appeals in the Senate from the decisions of
the Chair relating to any provision of this subsection shall
be limited to 1 hour, to be equally divided between, and
controlled by, the appellant and the manager of the bill or
joint resolution, as the case may be. An affirmative vote of
three-fifths of the Members of the Senate, duly chosen and
sworn, shall be required to sustain an appeal of the ruling
of the Chair on a point of order raised under this
subsection.
``(3) Definition of an emergency designation.--For purposes
of paragraph (1), a provision shall be considered an
emergency designation if it designates any item pursuant to
section 251(b)(2)(A)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985.
``(4) Form of the point of order.--A point of order under
paragraph (1) may be raised by a Senator as provided in
section 313(e) of the Congressional Budget Act of 1974.
``(5) Conference reports.--When the Senate is considering a
conference report on, or an amendment between the Houses in
relation to, a bill, upon a point of order being made by any
Senator pursuant to this section, and such point of order
being sustained, such material contained in such conference
report shall be deemed stricken, and the Senate shall proceed
to consider the question of whether the Senate shall recede
from its amendment and concur with a further amendment, or
concur in the House amendment with a further amendment, as
the case may be, which further amendment shall consist of
only that portion of the conference report or House
amendment, as the case may be, not so stricken. Any such
motion in the Senate shall be debatable. In any case in which
such point of order is sustained against a conference report
(or Senate amendment derived from such conference report by
operation of this subsection), no further amendment shall be
in order.''.
SEC. 6004. PAYGO SCORECARD ESTIMATES.
(a) Budgetary Effects.--Neither scorecard maintained by the
Office of Management and Budget pursuant to section 4(d) of
the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933) shall
include the budgetary effects of this Act if such
[[Page H8799]]
budgetary effects do not increase the deficit for the period
of fiscal years 2012 through 2021 as determined by the
estimate submitted for printing in the Congressional Record
pursuant to section 4(d) of such Act.
(b) Deficit.--The increase or decrease in the deficit in
the estimate submitted for printing referred to in subsection
(a) shall be determined on the basis of--
(1) the change in total outlays and total revenue of the
Federal Government, including off-budget effects, that would
result from this Act;
(2) the estimate of the effects of the changes to the
discretionary spending limits set forth in section 251 of the
Balanced Budget and Emergency Deficit Control Act of 1985 in
this Act; and
(3) the estimate of the change in net income to the
National Flood Insurance Program by this Act.
The SPEAKER pro tempore. The gentleman from Michigan (Mr. Camp) and
the gentleman from Michigan (Mr. Levin) each will control 45 minutes.
The Chair recognizes the gentleman from Michigan (Mr. Camp).
General Leave
Mr. CAMP. Mr. Speaker, I ask unanimous consent that all Members have
5 legislative days in which to revise and extend their remarks and to
include extraneous material on the subject of the bill under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. CAMP. Mr. Speaker, I yield myself such time as I may consume.
There are four important facts everyone should know about the Middle
Class Tax Relief and Job Creation Act:
First, it will strengthen our economy and help get Americans back to
work by lowering the tax burden for middle class families and job
providers alike;
Second, it prevents massive cuts to doctors working in the Medicare
program to protect America's seniors and those with disabilities--
providing more stability in the doctor payment schedule than there has
been in a decade;
Third, it adopts a number of the President's legislative initiatives,
which represents the bipartisan cooperation Americans are demanding;
and
Fourth, it's fully paid for with spending cuts, not job-killing tax
hikes. The CBO tables show the bill is fully offset and saves about $1
billion. And when you add in the flood insurance provisions, the
savings are closer to $6 billion.
So it will help families struggling in this economy; it will help the
unemployed get and keep a job; it helps seniors; it's bipartisan; and
it is paid for.
The House should--and I expect it will--overwhelmingly pass this
measure, and the Senate should quickly pass it so Americans can get
what they truly want this holiday season--something that helps create
jobs while helping those most in need.
While this bill includes the priorities of a number of committees,
many of the provisions in H.R. 3630 are within the purview of the Ways
and Means Committee.
This bill will extend for 1 year the payroll tax holiday to help
middle class families struggling in this economy, while fully
protecting the Social Security trust fund.
{time} 1550
Mr. Speaker, I have a letter from the Social Security Chief Actuary
confirming this fact that I would like to place in the Record.
Social Security Administration,
Office of the Chief Actuary,
Baltimore, MD, December 12, 2011.
Hon. Dave Camp,
Chairman, Committee on Ways and Means, House of
Representatives, Washington, DC.
Dear Mr. Chairman: We have reviewed the language in the
``Middle Class Tax Relief and Job Creation Act of 2011''
(H.R. 3630), which you introduced on December 9, 2011. We
estimate that the enactment of this bill would reduce
(improve) the long range actuarial deficit of the Old Age and
Survivors Insurance and Disability Insurance (OASDI) program
by about 0.01 percent of taxable payroll. All estimates are
based on the intermediate assumptions of the 2011 Trustees
Report. Sections 2001 and 5101 would have a direct effect on
the OASDI program, as described below.
Section 2001 of the bill, ``Extension of Temporary Employee
Payroll Tax Reduction through End of 2012'' would extend
through 2012 the provisions of subsection (c) of section 601
of the ``Tax Relief, Unemployment Insurance Reauthorization,
and Job Creation Act of 2010.'' Enactment of section 2001
would have a negligible effect on the financial status of the
program in both the near term and the long term. We estimate
that the projected level of the OASI and DI Trust Funds would
be unaffected by enactment of this provision.
Specifically, this provision would make the following
changes for payroll tax rates and OASDI financing in 2012:
(1) for wages and salaries paid in calendar year 2012 and
self-employment earnings in calendar year 2012, reduce the
OASDI payroll tax rate by 2.0 percentage points, (2) transfer
revenue from the General Fund of the Treasury to the OASI and
DI Trust Funds so that total revenue for the trust funds
would be unaffected by this provision, and (3) credit
earnings to the records of workers for the purpose of
determining future benefits payable from the trust funds so
that such benefits would be unaffected by this provision. For
wage and salary earnings, the 2.0-percent rate reduction
would apply to the employee share of the payroll tax rate.
For self-employment earnings, the personal income tax
deduction for the OASDI payroll tax would be 59.6 percent of
the portion of such taxes attributable to self-employment
earnings for 2012.
Section 5101 of the bill, ``Information for Administration
of Social Security Provisions Related to Noncovered
Employment,'' would require that all State and local
governments report to the Secretary of the Treasury all
distributions from any employer deferred compensation plan
made after December 31, 2012. This requirement would make
available to the Treasury and the Social Security
Administration any amount of such distributions that is based
on earnings from employment with State and local governments
that was not covered under the OASDI program. This required
reporting by State and local governments would effectively
eliminate most noncompliance with individual reporting of
distributions from deferred compensation plans that results
in the application of the windfall elimination provision and
the government pension offset provision for OASDI benefits.
Enactment of section 5101 of the bill would reduce (improve)
the long-range OASDI actuarial deficit by about 0.01 percent
of payroll.
We estimate that other sections of the bill would have no
direct effects on the OASDI program. Please let me know if we
may be of any further assistance.
Sincerely,
Stephen C. Goss,
Chief Actuary.
Without an extension, a worker earning $50,000 would see his or her
take-home pay decline by a $1,000 in 2012, as compared to 2011.
Employers are helped too. Through an extension of 100 percent
expensing, job creators down the supply chain will see more demand for
their products. This will help boost economic activity and job
creation. The President has endorsed both of these tax policies.
The bill will also extend unemployment benefits that are scheduled to
expire at the end of the month, but does so while permanently reforming
the program and adopting the President's plan to wind down recent
expansions of the program.
Since 2008 extensions of unemployment benefits have added $180
billion to the debt. We're putting an end to that deficit spending.
This program is fully paid for, and it contains significant reforms,
such as allowing States to screen and test unemployment insurance
recipients for drug abuse, overturning a 1960s-era Labor Department
directive; requiring all unemployed recipients to search for work; be
in a GED program if they have not finished high school, with reasonable
exceptions; and participate in re-employment services.
It also implements program integrity measures such as new data
standardization to crack down on waste, fraud, and abuse. And just as
we did in connection with welfare reform, we're giving the States
flexibility to design their own re-employment programs similar to the
sorts of programs the President has touted, like Georgia Works and wage
subsidies.
Why are we making these reforms instead of just passing a straight
extension? Because we know that a paycheck is better than an
unemployment check. These bipartisan reforms will help get Americans
back to work while providing them with assistance during hard times,
and that should truly be the focus of unemployment programs, getting
people back to work.
In addition to reforming UI, we extend Federal benefits but reduce
the maximum number of weeks of all benefits from 99 weeks to 59 weeks
in most States by mid-2012. This reflects a more normal level typically
available following recessions.
I should point out that phasing out 20 of those weeks is the
President's policy. As a result of this extension, an estimated 5
million out-of-work Americans will receive an average of about $7,000
in assistance they need in this tough economy. A ``no'' vote today is a
[[Page H8800]]
vote to deny those Americans who are out of work those benefits.
We also end UI for millionaires. The bill simply says if you earn $1
million you have to pay back your unemployment benefits. Though not in
the jurisdiction of the Ways and Means Committee, the bill applies a
similar policy to food stamps. Together, these policies save taxpayers
$20 million.
Additional savings are found by freezing the pay of Members of
Congress and other civilian government workers for 1 year.
Next, the legislation prevents a 27 percent cut to doctors serving
Medicare patients and replaces it with a 1 percent payment update in
2012 and 2013. The 2-year update is the longest that Congress has
provided since 2004, which will give us time to develop a permanent
solution.
In addition to the Medicare doc fix, the legislation reforms and
extends temporary Medicare payment programs. Since 2002, Congress has
blindly extended as many as a dozen of these programs. Given that we're
running a $1 trillion deficit and borrowing 40 cents out of every
dollar we spend, the American taxpayer simply cannot afford to have
Congress skip out on doing proper oversight. That's why we're extending
only four of these provisions, and we're making reforms to some and
requiring additional studies from the Centers for Medicare and Medicaid
Services and the Government Accountability Office to get better data on
how they're working.
These programs are the therapy caps exceptions process, premium
assistance for low-income seniors, ambulance payment add-ons, and
geographic payment adjustments for physician office visits, sometimes
called GPCI.
In the health care field, the legislation also adopts a
recommendation from President Obama that reduces subsidies to high-
income seniors by requiring them to pay a greater share of their part B
and D premiums. This single change reduces spending by $31 billion in
the next decade.
It saves $13.4 billion in wasteful overpayments of exchange
subsidies, similar to previous good government changes enacted by
overwhelming bipartisan majorities and signed into law by the
President, and repeals provisions in current law that hurt physician-
owned hospitals.
With regard to the Nation's primary welfare program, the legislation
extends through September 30, 2012, Temporary Assistance for Needy
Families, TANF, which is set to expire on December 31st of this year.
The TANF extension includes bipartisan, bicameral reforms to ensure
that taxpayer funds are protected from abuse. Those reforms include
improvements to program integrity, and closing the current strip club
loophole so that welfare funds cannot be accessed at ATMs in strip
clubs, liquor stores, and casinos.
In California alone, nearly $4 million in State-issued cash benefits
was withdrawn from ATMs in casinos between January 2007 and May 2010.
Another $20,000 in benefits was withdrawn from ATMs in adult
entertainment establishments. I think we can all agree that this reform
makes sense for taxpayers and for those on welfare.
Finally, the legislation takes two additional steps to better protect
taxpayer dollars. First, it makes necessary changes to the additional
child tax credit program by requiring the individual, or at least one
spouse, to include a Social Security number on their tax return to
claim the credit, just as you would have to do when filing for the
earned income tax credit. This will reduce Federal spending by $10
billion in the next decade alone.
Second, this legislation reduces Social Security overpayments by
improving coordination with States and local governments, incorporating
another recommendation from President Obama.
The Middle Class Tax Relief and Job Creation Act incorporates more
than a dozen proposals that the President has either offered,
supported, or has signed into law in one variation other another. In
fact, more than 90 percent of the bill is paid for with such policies.
The list of job-creating provisions and those that help families is
almost too long to list, but let me highlight just a few. A bipartisan
payroll tax cut for every working American that also protects Social
Security; a bipartisan energy project, Keystone XL, that will create
more than 100,000 jobs and is supported by both employers and unions; a
bipartisan tax cut for small and large businesses to invest now in new
machinery and equipment to grow their businesses and create jobs;
bipartisan reforms to make sense of Federal regulations like boiler
MACT, which will protect as many as 20,000 jobs; bipartisan health care
reforms that will help ensure a strong health care industry; a
bipartisan push for spectrum auctions that will unleash new growth and
create new jobs in the technology sector; bipartisan reforms that help
Americans find work faster, instead of just giving them an unemployment
check.
The list goes on and on but, in short, this bill is about jobs, jobs,
jobs, creating jobs and helping Americans find a job. It's paid for, it
is bipartisan, and it will help get our economy back on track. I
strongly urge my colleagues to vote in favor of the Middle Class Tax
Relief and Job Creation Act.
I reserve the balance of my time.
Mr. LEVIN. Mr. Speaker, I yield myself such time as I may consume.
(Mr. LEVIN asked and was given permission to revise and extend his
remarks.)
Mr. LEVIN. There are fewer than 3 weeks until the new year, and yet,
here they go again. Republicans are seeking a path of confrontation
instead of collaboration. If Republicans were serious, truly serious
about trying to come together on behalf of American families, they
would have reached out to Democrats in this House. They've done nothing
of the sort. They've made a sham out of bipartisanship.
Instead, they, once again, targeted millions of seniors and middle
class families for cuts without asking essentially anything of
millionaires and billionaires. They've singled out Medicare premium
increases that permanently increase seniors' costs by $31 billion.
The bill also, when you look at it carefully, spends $300 million on
a special interest provision that helps a handful of specialty
hospitals while cutting billions from community hospitals.
They've targeted the unemployed, slashing 40 weeks of unemployment
insurance, impacting millions of families still struggling under the
weight of the worst economic downturn since the Great Depression.
Twenty-two jurisdictions, 22, with the highest unemployment rates would
be hit the hardest: Alabama, California, Connecticut, D.C., Florida,
Georgia, Illinois, Idaho, Indiana, Kentucky, Michigan, Missouri,
Nevada, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South
Carolina, Tennessee, Texas, and Washington.
{time} 1600
The result would be in the State that Mr. Camp and I come from,
Michigan, a maximum of 46 weeks of unemployment insurance.
And what do they ask of the wealthiest Americans? Basically nothing.
Not even after the wealthiest 1 percent saw their incomes nearly triple
in the last three decades while salaries for middle class families
barely budged.
On average, there are more than four unemployed Americans for every
job opening. Never, on official records in our Nation's history, have
there been so many unemployed Americans out of work for so long. There
is nothing normal about this recession. Nothing normal.
One gentleman from my district, Phil of Clinton Township, put it this
way, ``I am by no means unintelligent. I am by no means lazy. And I am
by no means giving up.''
The unemployed are not people who can ante up $10,000 bets or spend
lavishly on jewelry at Tiffany. These are families scraping by, on
average, on less than $300 a week trying to keep food on the table, a
roof over their heads, and clothes on their backs and the backs of
their children as they look for work.
Republicans are out of touch with the families of America. I hope
after today's exercise that is going nowhere in the Senate and which
the President opposes, House Republicans will get serious about
addressing very pressing end-of-year issues on behalf of the American
people.
I reserve the balance of my time.
Mr. CAMP. Mr. Speaker, at this time I would note that the Ways and
Means Committee has held 16 different hearings or markups on provisions
contained in this legislation.
[[Page H8801]]
I yield 2 minutes to the distinguished chairman of the Health
Subcommittee, the gentleman from California (Mr. Herger).
Mr. HERGER. Mr. Speaker, it's critically important that we act to
prevent physicians' Medicare payments from being cut by 27.4 percent on
December 31. Such a drastic cut will result in many physicians ending
their participation in the Medicare program, and many senior citizens
would no longer be able to obtain the medical care they need.
The bill before us would prevent cuts under Medicare's sustainable
growth rate, or SGR, formula for the next 2 years with physicians
receiving a 1 percent inflation update in each of those years.
As I've said before, we need to do away with the SGR once and for all
so that doctors do not have to constantly worry about cuts to their
Medicare payments. I'm disappointed that we've run out of time to
consider permanent reform this year, but the Ways and Means committee
has been carefully examining different options for replacing the SGR,
and I'm hopeful that we can move forward with these efforts next year.
For now, this legislation gives physicians the longest period of
payment since 2004, and it is fully paid for with reforms to Medicare
and other Federal health programs. Many of these reforms have
bipartisan support and were included in the President's deficit
reduction proposal. I hope we will have a strong bipartisan vote for
this bill.
Mr. LEVIN. Mr. Speaker, I yield 1 minute to the gentleman from
Washington (Mr. McDermott).
(Mr. McDERMOTT asked and was given permission to revise and extend
his remarks.)
Mr. McDERMOTT. Well, it's getting close to the Christmas tree, and
here we come finally getting around to dealing with unemployment with
the most drastic attack on the unemployment system that we've had since
1933 without any hearings. I hear people talk about the Ways and Means
Committee has talked about this. There hasn't been a single hearing on
the proposal that's put here before us on the end of the session
cutting a Federal program from 73 weeks to 33 weeks. You're taking 40
weeks of unemployment away from people who have thought this country
cared, and it turns out the Republicans don't care at all.
This is bait and switch. This is like going on a used car lot and the
guy shows you a Chevrolet over here and says, That's a thousand bucks.
The SPEAKER pro tempore (Mr. Thornberry). The time of the gentleman
has expired.
Mr. LEVIN. I yield the gentleman an additional 30 seconds.
Mr. McDERMOTT. By the time you find another car that's worth nothing,
that's been in a wreck, you drive out thinking you had the thousand-
dollar car you were getting.
This is a phony attack on unemployment. Nobody should think of it as
anything else. The press releases will say, We extended unemployment
benefits. Yeah. Well, you pulled the rug out from under the long-term
unemployment. This is not the usual unemployment. This is unemployment
where we have the highest long-term unemployment in the history of this
country in the last 50 years.
It's a bad bill. Vote ``no.''
Mr. CAMP. Mr. Speaker, I yield 3 minutes to a member of the Ways and
Means Committee, the distinguished gentleman from Texas (Mr. Sam
Johnson), who is an author of the reform to the refundable child tax
credit.
Mr. SAM JOHNSON of Texas. I thank the gentleman for yielding.
Mr. Speaker, I rise in support of this bill.
I'd like to begin by thanking the leadership and the chairman for
including in this bill a provision of mine that will help eliminate
waste, fraud, and abuse with respect to the refundable child tax
credit. This simple commonsense provision will save the American
taxpayer $9.4 billion by stopping illegal immigrants from getting the
refundable child tax credit.
I first introduced this provision as a bill in January 2010 and
reintroduced it this past May. My legislation is based on the good work
of the Treasury Inspector General for Tax Administration which said in
its report on the credit that although the law prohibits aliens
residing without authorization in the United States from receiving most
Federal public benefits, an increasing number of these individuals are
filing tax returns claiming this refundable credit.
According to the IG, illegal immigrants bilked $4.2 billion from the
U.S. taxpayers last year. I think that it's time that we fixed it.
Currently, if individuals do not have a Social Security number, the
IRS will give them an individual taxpayer identification number to get
the credit. This provision will root out waste, fraud, and abuse by the
IRS simply requiring individuals to provide their Social Security
number in order to claim this refundable credit.
Mr. Speaker, there has been a lot of debate regarding the extension
of the payroll tax cut and Social Security. Given this debate, as
chairman of the Social Security Subcommittee, I would like to take this
opportunity to briefly talk about the importance of securing this
program's future.
Last year marked the first time since 1983 that Social Security paid
out more in benefits than it took in in payroll taxes; 1983 was also
the last major reform of Social Security. As a result, over the next 10
years, Social Security will be in the red by over half a trillion
dollars. As a result, Social Security must rely on general revenues to
pay back with interest the Social Security surpluses that Washington
has spent. That means Treasury has to borrow more. According to the
CBO, we do so at our own economic peril.
{time} 1610
Mr. Speaker, the American people want, need, and deserve a fact-based
conversation about how we can fairly and responsibly fix Social
Security for good. That would send a powerful signal that we are
serious about getting our fiscal house in order. Let's do it now.
Mr. LEVIN. It is now my privilege to yield 2 minutes to another
distinguished member of our committee, the gentleman from Massachusetts
(Mr. Neal).
Mr. NEAL. I thank the gentleman for yielding.
Mr. Speaker, I am in opposition to this so-called Middle Class Tax
Relief and Job Creation Act, largely because it's neither. The
gentleman from Michigan (Mr. Camp) is correct. He says there have been
16 hearings at the Ways and Means Committee, but never once has there
been a conversation. That's the important matter for us to consider.
There has been no give-and-take in this legislation. This was brought
to the floor today in the manner of ramming it through the House in
order to protect talking points as we move into the new year. If we
don't act, 160 million Americans are going to see a tax increase, with
working American families seeing a tax increase of up to $1,000 in
2012. We need to extend unemployment insurance to assist millions of
unemployed Americans, and we need to fix the Medicare physician payment
rate to ensure that seniors have access to their doctors.
I am also opposed to this proposal that they offer today. While I
support eliminating the scheduled reduction of 27 percent in Medicare
payments to physicians, this is the wrong way to do it--offsetting it
by taking $17 billion away from hospital funding.
Now people in America rightly ask: How come it's so difficult to get
something done in Congress?
We're going to quibble today with the 8.6 percent of American
families who are without work about extending their unemployment
benefits. Yet, just 3 years ago, after the company was run into the
ground, the head of Merrill Lynch left with--left with--$69 million. At
Hewlett-Packard a month ago, the head of the company was dismissed for
nonperformance, not in the way the unemployed are dismissed, which is
by somebody escorting them to the door, but dismissed with $10 million
worth of salary and $13 million of stock. At Enron, everybody at the
top held out, and they locked down that stock so people at the bottom
couldn't get out.
That's what this is about today.
Picking on the unemployed, 15 million members of the American family
without work, as we proceed to this holiday season? We need a tax
holiday for middle-income Americans, and that's what we should be doing
today.
[[Page H8802]]
Mr. CAMP. I yield 1 minute to a distinguished member of the Ways and
Means Committee, the gentleman from Texas (Mr. Brady).
Mr. BRADY of Texas. No bill is perfect but this has much to admire in
it.
Moving the unemployed back into the workforce after a year makes
sense--so does allowing States to drug test, stopping taxpayer fraud,
helping small businesses invest in equipment, paying local doctors
fairly for treating our seniors, telling the President ``he can't
wait'' to approve the thousands of jobs created by the Keystone
pipeline, and spending cuts and entitlement reforms so we don't add to
the dangerous deficit. All of that is very good.
Like many in Congress, I am very troubled about reducing Social
Security revenue another year. The bill's authors have responsibly
included reforms that fill this hole and then some; but over the long
term, cutting Social Security contributions makes an already fragile
program more fragile.
So in support, I want my constituents to know that 2012 is it. I will
not support another extension of the Social Security tax holiday.
Instead, I will work to replace it with tax relief of an equal amount
that doesn't impact Social Security or that doesn't make it harder to
preserve this program for future generations.
Mr. LEVIN. It is now my special privilege to yield 2 minutes to a
leader in our party, the gentleman from South Carolina (Mr. Clyburn).
Mr. CLYBURN. I thank the gentleman from Michigan for yielding me this
time.
Mr. Speaker, I rise in strong opposition to this outrageously
partisan and unfair bill. The clock is ticking; working families are
worrying; and my Republican friends are playing political games.
This bill cuts unemployment benefits for hardworking folks who have
lost their jobs through no fault of their own. My home State and
district contain some of the hardest-hit families and communities in
this country, and it is unfair to blame these folks for the economic
hard times they are experiencing. This bill proposes drug testing for
unemployed workers drawing from insurance funds they have paid into.
That is unfair and insulting. I don't see anyone in the Republican
majority demanding drug testing for folks who receive oil and gas
subsidies.
The President will veto this bill if it ever reaches his desk. This
political game that's being played is just another round of the
brinksmanship we have seen time and again this year.
We need to pass a clean extension of the payroll tax cut for working
Americans. We need to pass a clean extension of the unemployment
insurance for those who have lost their jobs. We need to pass a clean
extension of the SGR doc fix so Medicare patients will know their
doctors will be there for them.
We need for my Republican friends to stop playing political games
with people's lives. I urge my colleagues to vote against this partisan
bill.
Mr. CAMP. Mr. Speaker, I would just note that this legislation
incorporates more than a dozen proposals that the President has either
offered, supported, or signed into law. In fact, more than 90 percent
of the bill is paid for with such policies.
With that, I would yield 3 minutes to a distinguished member of the
Ways and Means Committee, the gentleman from Kentucky (Mr. Davis).
Mr. DAVIS of Kentucky. I thank the chairman for yielding.
Mr. Speaker, I rise in support of H.R. 3630, and tire of the empty
rhetoric that I hear over and over again. As the chairman just pointed
out, this bill includes many provisions that your party's President
recommended. This is a bipartisan piece of legislation, and we are
politicizing something at the expense of working families, which is a
sad thing to see happen in this Chamber.
The legislation includes important provisions designed to promote job
creation; but I would like to focus on the bill's provisions to reform
and improve unemployment insurance, or UI.
These commonsense reforms expect UI recipients to search for work and
to make progress towards a GED or other training they need to get back
to work. We let States make reasonable exceptions, but the message is
clear: UI needs to change to do a better job of helping people get back
to work.
The bill also lets States apply for waivers of Federal law so they
can test better ways to engage the unemployed. Our colleagues are
right--there are too many long-term unemployed today, and we need to
hold government programs more accountable for helping more of them find
work sooner, including through wage subsidies and other innovative
approaches that have received bipartisan support.
Also contained in this bill is a program integrity provision to
improve data standards in the UI program in order to help it operate
more efficiently and effectively across States and to help it better
coordinate with other programs. This same provision was included in the
bipartisan child welfare legislation signed by President Obama in
September and is included in another section of this bill covering the
Temporary Assistance for Needy Families program.
H.R. 3630 also makes reasonable reductions in temporary Federal UI
benefits while extending that program for another year and maintaining
up to 59 weeks of benefits by the middle of 2012:
First, it ends 20 weeks of Federal benefits that were added to the
program when the national unemployment rate was at 9.9 percent, or well
above today's 8.6 percent. Second, we adopt the President's call to
phase out a second 20 weeks of Federal UI benefits in the early months
of 2012.
So, instead of cutting or slashing and so on, as many of my
colleagues on the other side of the aisle dubiously claim, the facts
show that the UI benefits extended in this bill would aid over 5
million people at a cost of $34 billion--all paid for through other
savings. That's an average of almost $7,000 in Federal help for every
person aided.
In fact, with this bill, the total UI spending since the start of
2008 will stretch to an astounding $546 billion. That's not a typo. UI
spending has totaled over a half a trillion dollars in the past 5
years. That's over five times--listen to this--over five times as much
as it would cost to put a man on the Moon in today's dollars.
I urge the support of this much needed legislation and, most
importantly, of its long needed reforms so that the UI program does a
better job in helping Americans get back to work sooner.
{time} 1620
Mr. LEVIN. Mr. Speaker, I yield myself 10 seconds.
I must say, to talk about a man on the Moon and to essentially
disregard the needs of millions of people who are on the ground
unemployed in this country is, I think, unconscionable.
I now yield 2 minutes to the gentleman from Oregon (Mr. Blumenauer),
another member of our committee.
Mr. BLUMENAUER. I thank the gentleman from Michigan.
A year ago, our Republican friends talked about reforming the process
so that we wouldn't have legislation that was in a ``must-pass''
category that was laden with items that were unrelated or unnecessarily
complicated. Well, here we are, less than a year after they adopted
their rules, and we have legislation that is just that. Unemployment
insurance has always been, I think, in times of economic stress, when
benefits are threatened to expire, must-pass legislation. If you ask
the American public, being able to keep $1,000 or more in the pockets
of the average family, by keeping the payroll tax reduction, that would
be must-pass legislation. And the SGR, the sustainable growth rate
problem, to avoid a draconian cut in physician reimbursement--which I
mercifully say I did not support when it was proposed by my Republican
friends and enacted into law some 15 years ago--that is certainly must-
pass legislation.
And here we have a hodgepodge of jamming all of these together,
plus--wait a minute--the Keystone pipeline, a variety of things that
are complicated, expensive, and unfair, jammed together in a must-pass
legislative situation.
Mr. Speaker, I am opposed to draconian cuts in benefit levels. In a
State like mine, it's going to be very hard on rural and small-town
America, where those extended benefits make a big difference. The jobs
aren't there. Now you may force some of these people who don't have a
high school education to start a training program, which you are not
willing to pay for.
[[Page H8803]]
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. LEVIN. I yield the gentleman an additional 30 seconds.
Mr. BLUMENAUER. You are going to impose very significant cuts on
hospitals. For example, the evaluation and management cap is going to
impact dramatically hospitals that a number of us represent. It is
going to scale up much higher costs for senior citizens who don't think
they're high-income.
With all due respect, I think it's the wrong approach to serious
problems that we face. We ought to deal with them one at a time in a
balanced and thoughtful way, reject this Christmas tree, and do it
right.
Mr. CAMP. I yield 2 minutes to the gentleman from Georgia (Mr.
Kingston).
Mr. KINGSTON. Mr. Speaker, I would like to enter into a colloquy with
the distinguished chairman.
Mr. Chairman, I thank you for including language in this bill that
would remove current barriers for States to strengthen the unemployment
insurance program through optional drug testing. By doing so, we can
help increase individuals' ability to gain future employment and help
ensure benefits are not being used to finance an individual's drug
dependency. It is my understanding that the intent of this language is
to provide flexibility to States to establish drug screening methods if
they so choose.
I yield to the gentleman from Michigan.
Mr. CAMP. That is correct. The language in the bill provides States
with the option to screen and test UI program applicants for illegal
drug use.
Mr. KINGSTON. Thank you.
I would like to call States' attention to drug screening assessments
approved by the National Institutes of Health that identify individuals
as having a high probability of drug use. Under the bill I introduced,
individuals deemed by those assessments to be high risk would be
required to complete and pass a drug test in order to receive benefits.
General tax dollars help fund payments after 26 weeks. So people who
are unemployed should be looking for a job and should not become
voluntarily ineligible by taking illegal drugs. In this tough budgetary
environment, we must maximize tax dollar spending efficiently and
effectively. I appreciate your commitment to hold a hearing on this
issue no later than the spring, and I thank you for pointing toward
further action.
Mr. CAMP. That is a helpful reminder, especially to those States that
look to take advantage of how this legislation removes current
bureaucratic barriers preventing them from doing that sort of screening
and testing, if they so choose.
Mr. KINGSTON. I look forward to working with the committee on this
proposal. I thank the chairman and the subcommittee chairman, Mr.
Davis, for their support and their discussions of this language.
I thank the gentleman for engaging in this colloquy.
Mr. LEVIN. Mr. Speaker, I yield 3 minutes to our distinguished
minority whip, the gentleman from Maryland (Mr. Hoyer).
Mr. HOYER. I thank the gentleman for yielding, and I rise in
opposition to this bill.
We are now in overtime. The scheduled date for ending this session
was December 8. That date, of course, was substantially later than we
normally suggest ending the session. Notwithstanding that fact, we did
not meet that deadline.
In the Pledge to America, our Republican colleagues, when they were
running for office to seek the majority--which they got--they pledged
to America that they would not put nongermane items in must-pass bills.
That, apparently, was a campaign pledge not to be honored in practice.
In the Pledge to America, they also said that we needed to do
appropriation bills one after another. That, apparently, was a pledge
to be honored during the campaign but not in practice.
So we have ourselves confronted with a bill that must pass. We must
not leave this city and our responsibilities without extending
unemployment insurance. We must not leave Washington, D.C., for this
holiday season, delivering a block of coal in the stockings of our
constituents by failing to continue the tax cut from their payroll
taxes. And we must not leave Washington, D.C., without affecting a
continuation of the proper reimbursement of doctors to ensure that
Medicare patients will be able to get their doctors' services.
We have three items to focus on to get done and nine appropriation
bills. Now one of those appropriation bills has not even been reported
out of subcommittee in this House, the Labor-Health bill. It hasn't
been considered by the subcommittee. It hasn't been considered by the
full committee. It hasn't been considered by this House. So we have a
lot of business to do in essentially the next 72 hours.
What are we confronted with? We are confronted with a bill of over
350 pages, filed just a few days ago. We have heard a lot about reading
the bills. I would be shocked if any Member has read this bill,
shocked.
By contrast, the bill that was so criticized, the Affordable Care
Act, was up for review for over a year, hundreds of hearings and
essentially thousands of meetings around this country. This has not had
a single town meeting, a single hearing, and a single perspective
around this country.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. LEVIN. I yield the whip an additional 1 minute.
Mr. HOYER. I thank the gentleman for yielding.
So, my Tea Party friends, I am sure you lament the fact and think
this bill ought not be passed. But I haven't seen you. I haven't heard
you. I haven't gotten a letter from you.
I tell my friends on the Republican side of the aisle, I have
demonstrated throughout this year that when we had the opportunity to
work together, I worked to get the votes so that together, we could
pass legislation that was necessary to run this country. So I don't
take a back seat to anybody in this Chamber willing to work together in
a bipartisan fashion. But this bill was not worked together in a
bipartisan fashion. This bill seeks to poke a finger in the eye of the
President of the United States, who has said, I will veto this bill,
not because of the three things that I said were absolutely essential
but because of something that is not essential to pass. Now the
majority leader lamented last week that this would create 5,000 jobs if
we passed the Keystone pipeline project. But a bill that would create
at least a million jobs, the American Jobs Act, lays languishing in the
bowels of the committee.
{time} 1630
The SPEAKER pro tempore. The time of the gentleman has again expired.
Mr. LEVIN. I yield the gentleman an additional 30 seconds.
Mr. HOYER. So I can conclude. Yes, the gentleman asked for regular
order. I lament the fact that we are not pursuing regular order. We
could act in a responsible, bipartisan fashion to accomplish the three
objectives I set forth and the appropriations bills; but, no, we're
playing politics. We're pandering to a base. We're having a pretense
that this bill can pass. It cannot.
Let us defeat this bill and then let us come together in a
responsible fashion as the American public wants us to do and act on
their behalf, not on the behalf of our politics.
Mr. CAMP. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from
Montana (Mr. Rehberg).
Mr. REHBERG. As the sponsor of the Keystone pipeline language, I
support H.R. 3630. And, no, it doesn't put a block of coal in the
socks. It puts a barrel of oil in a pipeline. In fact, it puts 150,000
barrels of oil in the pipeline daily.
The American people need jobs. They want Congress to work together to
help the private sector create those jobs. Keystone XL is shovel-ready.
It will create thousands of jobs. All we need is a Federal permit,
something that has already taken 3 years.
So why have the President and his allies in the Senate said no to
these jobs? It's not for the cost; the project is privately funded to
the tune of $7 billion. It's not to protect the environment; this
pipeline will utilize the cleanest and safest new technology available,
making it the safest pipeline in America. And it's not private property
concerns because 97 percent of the landowners came to friendly
settlements in
[[Page H8804]]
earlier Keystone efforts. Frankly, there is no excuse. This is pure
politics. With thousands of jobs hanging in the balance, it's time to
put politics aside and do the right thing.
Mr. LEVIN. It is my privilege to yield 2 minutes to the gentleman
from Texas (Mr. Doggett), who is the lead sponsor on our unemployment
insurance bill.
Mr. DOGGETT. I thank the gentleman.
This proposal certainly does represent a visit from the ghost of
Christmas past--last Christmas to be specific--when Republicans stood
here and said only a lump of coal for the unemployed until you stuff
every stocking to overflowing.
Well, today's Republican bill would eliminate up to 40 weeks of
unemployment coverage with the biggest cuts coming in States like mine,
Texas, with high unemployment rates. That means that next year over 3
million unemployed Americans and their families will be shortchanged if
this bill is enacted. Long-term unemployment in America today has not
been this high, for this long, in 60 years. We have over 6 million
fewer jobs now than when the recession began and more than four workers
for every job opening. And in 10 States, this bill responds by making
it possible to no longer require that unemployment insurance funds are
used for unemployment insurance benefits.
Under the Democratic alternative that I have introduced, unemployment
would be available only to those who are actively searching for a job,
getting job training, or who are out there in a temporary layoff
situation. Nor is an unemployment check any substitute for a paycheck.
As The New York Times editorialized this morning: ``When was the last
time any Republican lawmaker tried to live on $289 a week, the amount
of the average unemployment benefit?''
And this same measure also offers a lump of coal for Medicare. I
believe in seeking efficiencies in Medicare. That's one reason why we
voted for the Affordable Care Act, to ensure that billions of dollars
were saved. But the billions that are cut from other health care
providers in today's bill come on top of across-the-board cuts that are
already enacted and will be effective within about the next year.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. LEVIN. I yield the gentleman an additional 15 seconds.
Mr. DOGGETT. At some point, cuts to hospitals and nursing homes mean
that seniors and the disabled will be unable to access the quality care
that they need. And this bill's $8 billion cut to preventable chronic
disease programs like heart disease and diabetes is shortsighted and
will cost us more in the long run than it saves.
Mr. CAMP. Mr. Speaker, I yield 1 minute to the gentleman from Ohio
(Mr. Renacci).
Mr. RENACCI. I thank the gentleman for yielding. I would like to
thank Chairman Camp and Chairman Davis for their hard work on the much-
needed reforms to our unemployment insurance program.
The Bureau of Labor Statistics reported today that there are over 3.3
million job openings in America. According to studies earlier this
year, 22 percent of American businesses and 57 percent of small
businesses are looking for employees and are ready to hire, if they can
just find the right people. Matching willing employers with able
workers is an absolute must.
In this uncertain economy, helping to cover the risk of training a
new employee will help the unemployed back to work. Using unemployment
dollars to subsidize the training of a new employee to reenter the
workforce is just good public policy.
In June, I was proud to introduce the bipartisan-supported EMPLOY
Act, to give States the flexibility to do precisely this. I remain very
proud today that my concept is included in this package.
Support this bill, which gives States like Ohio the flexibility to
use unemployment dollars for job-training services, and I want to thank
the chairmen for working with me.
Mr. LEVIN. I yield 2 minutes to a very distinguished member of our
committee, the gentleman from Georgia (Mr. Lewis).
Mr. LEWIS of Georgia. Mr. Speaker, I want to thank my friend, my
colleague, Mr. Levin, for yielding. And thank you for all of your great
and good work.
Mr. Speaker, I rise in strong opposition to this bill. It is a very
sad day for this body. Day in and day out, unemployed Americans beat
the pavement applying for jobs everywhere and anywhere, sending
hundreds of resumes applying for many jobs. These people lost their
jobs through no fault of their own. They don't want a handout. They
want a job.
In Atlanta we had a job fair where more than 4,500 people from as far
away as New York showed up with the hope of just getting an interview.
This bill is an insult to them. It is an affront to their dignity. It
says that millions of Americans do not want to work or they are not
searching hard enough for a job.
Instead of extending unemployment benefits before the holiday break,
giving equal treatment for struggling Americans, as we do for the
wealthy and large corporations, this legislation strips the program
down to its bones. It's not right. It's not fair. It is not just.
This body represents the people, and we should not stomp on the souls
of our fellow citizens. We can do better. We must do better. We must do
better for the sake of our fellow citizens.
Mr. Speaker, is this the spirit of the season? Last night we offered
an amendment to the Rules Committee that the Republicans refused to
even consider. These amendments said, in effect, stop the politics,
stop the games. Stand up for the people, for the people that voted for
us, for our people that need our help. They are depending on us.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. LEVIN. I yield the gentleman an additional 30 seconds.
Mr. LEWIS of Georgia. Mr. Speaker, we should stay here, stay here,
don't go home until we can meet their expectations. We must come
together and do what is right, and do it now. I urge all of my
colleagues to oppose this bad bill and come together, pass a long-term,
clean extension of unemployment benefits. That's the thing to do.
Mr. CAMP. Mr. Speaker, I yield myself such time as I may consume.
We think it is important to extend unemployment benefits, and that's
what this bill does; but we do it with commonsense reforms, reforms
that will help those who are unemployed get not just a paycheck from
the government, but get a job and get a paycheck from the private
sector.
{time} 1640
These commonsense reforms are things like requiring unemployment
insurance recipients to search for work and, if they don't have a GED,
to get a GED. But we have a commonsense exception provision so that if
you're an older worker and you've been a pipe fitter for 30 years,
well, obviously, a GED isn't going to help you in your job search. But
for those who are younger and who don't have the skills they need, it's
clear that if you have that certificate, your chances of losing your
job are much less.
And, third, we think they should participate in services to get them
reemployed. Those are important. States need more flexibility in this
area to get waivers from the Federal Government so they can enter in
reemployment programs. There are many ideas in the States out there. We
aren't mandating this from Washington. We want the States to be the
laboratories of invention here.
We also think it's important to allow States to screen applicants for
drugs. There's been a 1960s Department of Labor ruling that says States
can't even look at this area. But with screening, you can get workers
the proper help so they're not bounced from a job because they fail a
drug test or don't get hired because they fail a drug test. These are
all important, commonsense reforms, and they will help reduce our
unemployment rates. They will help people get jobs.
And let me just say, in terms of job search, it is important that
there be requirements in legislation to do that. Florida, for example,
now requires those claiming benefits to report online each week five
jobs they've applied for or to meet with a jobs counselor. The result?
In the first 3 months of the new law, 65 percent of the claimants did
not meet that obligation. Well,
[[Page H8805]]
they need to be out there assisting in finding jobs that they need.
Now, those are then keeping those resources for those who truly are
unemployed and who truly can't find a job. In this era of limited
resources, we need to make sure that they're used in the best, most
effective and most efficient possible way. And these commonsense
reforms give States the flexibility to design programs that meet the
needs of their State, whether it be in drug screening, whether it be in
searching for work, whether it be in employment services, or even
States designing programs that allow the employers to receive part of
the unemployment check so the workers get hired.
Those are the kinds of innovations that don't happen in Washington
because they're saying, Extend the 99 weeks as is. Well, we can't
afford to continue to deficit spend, as the other party did, $180
billion worth, since 2008, of unpaid-for unemployment benefits.
This is an important program. It's an important program that must be
extended. It should be extended, and it will be extended if my
colleagues vote for this legislation. And I urge support.
Mr. Speaker, I reserve the balance of my time.
Mr. LEVIN. I yield myself 30 seconds.
Mr. Camp, we've just received information from the Department of
Labor that the Republican bill would cut unemployment benefits for 3.3
million Americans next year compared to an extension of current law. In
the name of reform, don't cut the rug out from the unemployed of this
country who are looking for work. That is, in one word, inexcusable--
inexcusable.
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore. The Chair would remind all Members to direct
their remarks to the Chair.
Mr. LEVIN. I yield 2 minutes to the gentleman from New Jersey (Mr.
Pascrell).
Mr. PASCRELL. Mr. Speaker, I want to commend Mr. Camp and Mr. Levin
for working hard on these issues. I think they do try to put the
country before the party. But this bill is terrible. It is terrible.
The holidays must have come early for the majority. What we have here
is a serious proposal? It's a stocking stuffed to the brim with
ideology. And I thought we could put that aside and put the country
first, more important than parties, more important than ideology.
I agree with you. Let's weed out those people who literally are
crooks and try to steal from the public trough and take advantage of
unemployment. I went to an unemployment office yesterday in my area, in
my district, in a major city, Paterson. I went to the unemployment
center. I looked through all of those folks that were waiting online
and working and looking and seeking work and being trained for specific
jobs, particularly in health care. I looked through those records. And
if you think you're going to reduce the amount of money that Americans
have to spend to help their brothers and sisters, you are dead wrong.
Dead wrong.
What we've done in the Bush tax cuts, they were for the least needy.
Now we're talking about the most needy. The unemployment rate in New
Jersey is 9.1 percent. The average in the United States is 8.6 percent.
I'm asking you, I'm begging you, let's get beyond this.
And why didn't we put employers in this? What if employers had their
part shaved like the employee that we are suggesting here? How many
jobs would be created if the employer had not to pay 6.2 and, instead,
4.2 percent? And I agree with the President. That should have been
reduced to 3.1 percent. We could put a lot of people to work.
A thousand dollars maybe in your pocket or my pocket or your pocket,
Mr. Speaker, may not be the end all, but $1,000 in many people's who
work every day for a living, who love this country, is an insult. And
we're just making matters worse, Mr. Speaker. We're not making them
better.
Mr. CAMP. Mr. Speaker, I ask unanimous consent for Mr. Upton to
control 15 minutes of the time.
The SPEAKER pro tempore. Is there objection?
Without objection, the gentleman from Michigan (Mr. Upton) will
control 15 minutes.
There was no objection.
Mr. UPTON. Mr. Speaker, I yield myself 2 minutes.
This bill does a lot of things. It has real reforms. It's driven in
large part by the unemployment reforms and extending the payroll tax
cut, and it's all paid for.
Most Americans don't really want unemployment. They want a job. The
spectrum provisions in this bill help our first responders with the
allocation of the D block and creates perhaps as many as 100,000 jobs.
The Keystone pipeline decision is part of this bill, too. It requires
the President to review and make a decision, either way, within 60 days
of enactment.
Just this morning, there were a number of press accounts that perhaps
Iran will soon be conducting exercises to close the Straits of Hormuz.
The Keystone pipeline will connect Canadian oil sands with refineries
here in the United States, adding 20,000 private sector jobs and
perhaps as many as 118,000 indirect jobs. It reduces our reliance on
non-North American oil, which is a good thing. And it brings perhaps as
many as 1 million barrels of oil a day--1 million barrels a day--into
the United States that we don't have to import from someplace else.
Canada is going to develop this no matter what. And that oil, 1 million
barrels a day, is either going to come to the United States or it's
going to a place like China. We want it here.
This is a good thing. It creates jobs. It reduces our reliance on oil
from overseas. It is something that ought to be part of this bill, and
it is. I would urge my colleagues to support it.
I reserve the balance of my time.
Mr. LEVIN. I yield 2 minutes to another member of our committee, a
distinguished, active member indeed, the gentleman from New York (Mr.
Crowley).
Mr. CROWLEY. I thank my colleague and friend from the State of
Michigan (Mr. Levin) for yielding me this time.
Mr. Speaker, I rise in strong opposition to H.R. 3630.
Today the Republican Party's true colors are fully exposed and on
display--and it isn't pretty. The GOP argues time and time again
against tax increases, but now it's clear. Their policy only applies
when we are talking about increasing taxes on those making over $1
million a year.
Now, I don't begrudge anyone from making a buck in this country. I
do, however, begrudge those who want to help America's wealthiest at
the expense of America's middle class, especially when working people
are hurting as much as they are right now.
Where is the shared sacrifice? Where is the shared responsibility? I
believe Americans of all economic classes want a Federal Government
that has a vision for our future and a vision for how to keep America
strong.
{time} 1650
That is why Democrats have a plan to provide an immediate cut in
middle class taxes. We are pushing to cut the payroll tax in half for
all working people, as well as expand it to small businesses, the
engine creator of jobs in America.
Unfortunately, this GOP bill denies any payroll tax relief to small
businesses. My friends on the other side of the aisle argue taxes
impede growth, hurt American businesses, and stunt our economy. But
apparently those arguments don't apply when we're talking about
lowering taxes for the middle class or small businesses.
President Obama and the Democratic Party are championing cutting the
payroll tax in half for all workers; my Republican colleagues refuse to
even consider that. Democrats want to expand and enhance the payroll
tax cut for employers, yet there's no such relief for small businesses
in this bill.
But aside from what is not in this bill, I also want to object to
what is in this bill--a new tax on senior citizens. If this bill is
signed into law, seniors' premiums for Medicare will go up, and go up
dramatically.
The true colors of the Republicans are clear.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. LEVIN. I yield the gentleman an additional 15 seconds.
Mr. CROWLEY. Seniors making $40,000 a year are considered wealthy and
deserve to see their Medicare costs go up; but a small, temporary
income tax surcharge on people earning over $1 million a year, that's
not acceptable?
[[Page H8806]]
Let's reject this bill. Hardworking Americans deserve better. They
deserve middle class tax relief that doesn't come at the expense of our
seniors.
Mr. UPTON. May I inquire of the Chair how much time is available on
each side?
The SPEAKER pro tempore. The gentleman from Michigan (Mr. Upton) has
13 minutes remaining. The gentleman from Michigan (Mr. Levin) has 19
minutes remaining. The gentleman from Michigan (Mr. Camp) has 4\1/2\
minutes remaining.
Mr. UPTON. At this point, I will yield 2 minutes to the chairman of
the Communications Subcommittee, the gentleman from Oregon (Mr.
Walden).
Mr. WALDEN. I thank the chairman.
Mr. Speaker, the American people have waited long enough for this
Congress to act to create jobs. This legislation does that. It does
that through the Jump-Starting Opportunity With Broadband Spectrum Act
of 2011. There is no reason to delay this bill any further.
This unleashes spectrum, both licensed and unlicensed, that when put
into service will unleash new technologies, new innovations. And the
chairman of the Federal Communications Commission said this part of the
bill we're debating today could create as many as 700,000 new jobs.
Other estimates say between 300,000 and 700,000 American jobs.
It generates upwards of $16 billion for companies who want to buy
this broadband and pay the taxpayers for it because it is America's
spectrum. And it does something that the Democrats, when they were in
charge of the House for 4 years, failed to do: It makes this spectrum
available, and it begins the process of building out an interoperable
public safety broadband network as called for by the 9/11 Commission.
Now, this legislation didn't just drop out of the sky. It was
thoughtfully and creatively crafted, and it finds the right balances.
Its provisions were improved as the result of input and counsel from
five separate public hearings we held, 11 months of negotiations, and
discussions with Members of both sides of the aisle, the FCC, and the
NTIA. But at some point the American people say stop talking and get it
done, and that's what this legislation does as part of this bigger
bill.
Hardworking middle class taxpayers want transparency and
accountability; they don't want a blank check to anybody. So this
legislation has the proper protections for the taxpayers. It builds out
the public safety network. It creates 300,000 to 700,000 American jobs.
Our economy needs the help, Americans need the jobs, and we need to
generate revenue for the American taxpayer in a productive way, as this
does. This legislation does all of these things and does them well. I
urge support of this legislation.
Mr. LEVIN. Mr. Speaker, I yield 1 minute to the distinguished
gentleman from Ohio (Mr. Kucinich).
Mr. KUCINICH. As I am preparing to speak, I'm thinking about a debate
we had 3 years ago where banks received $700 billion, about the Fed 1
month ago printing $7.7 trillion for banks in this country and abroad,
and here we're telling the American people who happen to be unemployed,
you know, we're thinking of cutting benefits 40 weeks.
People want work, not welfare. People want work, not unemployment
compensation. But when people do not have work, unemployment insurance
is essential. It is a lifeline. And this legislation significantly cuts
unemployment insurance, that safety net that millions rely on. It
reduces the number of weeks unemployed workers are eligible for by as
much as 40 weeks.
We need more jobs, and yet we have more long-term unemployed. We know
the unemployment rate is actually higher because people have stopped
looking for work. Nearly 14 million Americans are out of work, and
among the long-term unemployed, more than half have been out of work
for over a year.
The problem is not a lack of effort for those seeking a job, the
problem is a lack of jobs. Let's get America back to work, not be
cutting unemployment compensation.
Mr. UPTON. Mr. Speaker, I yield 2 minutes to the chairman of the
Health Subcommittee, the gentleman from Pennsylvania (Mr. Pitts).
Mr. PITTS. Mr. Speaker, we are all well aware of the inadequacies of
the sustainable growth rate formula as a payment policy for reimbursing
physicians. Unfortunately, the greatest threat--arguably--facing the
Medicare program, if not the entire health care system, was left out of
the new health reform law.
In 2010, Congress passed five temporary fixes to a pending physician
payment cut. Some were retroactive and some lasted mere weeks. In other
words, Congress kicked the can down the road five times last year.
Physician practices need more certainty than week-to-week patches.
When this legislation becomes law, it will be the first multiyear fix
to Medicare physician rates since 2003. Instead of just addressing the
next oncoming payment cliff, the Middle Class Tax Relief and Job
Creation Act provides a level of stability and predictability in
payments for providers not seen in years and will allow Congress and
the administration to work together to develop a long-term answer to
the Medicare sustainable growth rate.
This 2-year fix, with a 1 percent increase in the next 2 years, is
the first step in a long-term solution to eliminate the SGR and develop
a more equitable and affordable Medicare payment policy for physicians.
Not voting for this and supporting this 2-year fix may leave physicians
facing just a 1-year patch, or more kicking the can down the road with
no plan on how to move forward.
I urge my colleagues to support this legislation.
Mr. LEVIN. Mr. Speaker, it is my privilege to yield 1 minute to the
very distinguished gentlelady from California, Lynn Woolsey.
Ms. WOOLSEY. I thank the gentleman for yielding.
Well, I've walked in the shoes of those who are needy. I know what
it's like to go without. I know what it's like to struggle. Forty years
ago I found myself--no fault of my own--a single mother with three
young children all under the age of 5 and barely a dime to my name. I
was one of the lucky ones; I had a good education. And so I was able to
get a job, and I didn't need unemployment benefits. But my job wasn't
enough to feed those three little kids. I needed AFDC just to make ends
meet.
Nobody asked me to take a drug test, nobody asked if I had a GED. I
was in trouble, and a generous, compassionate government helped me get
back on my feet. That was over 40 years ago, my friends. And I can
assure you that my children and I have more than paid back for that
generous help that we received.
The Republican bill is not consistent with American values as I've
lived them and understood them during my 74 years on this Earth. We're
all in this together, I believe. There but for the grace of God go I.
The SPEAKER pro tempore. The time of the gentlewoman has expired.
Mr. LEVIN. I yield the gentlelady an additional 30 seconds.
Ms. WOOLSEY. It's time for this Congress to stop coddling
millionaires and start standing up for all families and all children
who are suffering in today's economy.
Mr. UPTON. Mr. Speaker, may I inquire again on the time? I think
we're a couple of minutes ahead.
The SPEAKER pro tempore. The gentleman from Michigan (Mr. Upton) has
9 minutes remaining. The gentleman from Michigan (Mr. Levin) has 16\3/
4\ minutes remaining. The gentleman from Michigan (Mr. Camp) retains
4\1/2\ minutes.
Mr. UPTON. I reserve the balance of my time.
{time} 1700
Mr. LEVIN. I yield 1 minute to the gentlewoman from Alabama (Ms.
Sewell).
Ms. SEWELL. I thank the ranking member for allowing me this time.
Today I rise in strong opposition to H.R. 3630, which makes dramatic
and harmful changes to the Emergency Unemployment Compensation program.
It makes significant cuts to Medicare that would hurt our Nation's
seniors. This bill contains political and controversial language that
should be discussed and debated in separate legislation.
Before Congress breaks for this year, we need to pass a bill that
solely focuses on extending relief to the unemployed workers and middle
class Americans who are still suffering in this recovering economy.
This is not the time
[[Page H8807]]
to play with the livelihood of millions of Americans.
Our voters sent us here to make their lives better, not more
difficult. We were sent here to create jobs and stimulate the economy
and protect our most vulnerable. To accomplish these goals, it will
require a willing and compromising spirit.
The folks of the Seventh Congressional District of Alabama, that I am
so proud to represent, want me to put people before politics and do
what is in their best interest and not partisan interests. The American
people expect and deserve more, not less from us. Therefore, I urge my
colleagues to vote ``no'' on H.R. 3630.
Mr. LEVIN. Mr. Speaker, I ask unanimous consent that the gentleman
from California (Mr. Waxman) control 10 minutes of my time.
The SPEAKER pro tempore. Is there objection?
Without objection, the gentleman from California will control 10
minutes of the time.
There was no objection.
Mr. UPTON. Mr. Speaker, I yield 2 minutes to the chairman of the
Environment and the Economy Subcommittee, the gentleman from Illinois
(Mr. Shimkus).
(Mr. SHIMKUS asked and was given permission to revise and extend his
remarks.)
Mr. SHIMKUS. Thank you, Mr. Chairman.
My friend from Ohio came down and he said, you know, what we need,
what America needs, is jobs. And so that's the important aspect of
bringing the Keystone XL pipeline into this debate. Don't listen to me;
listen to my friends in organized labor.
Brent Bookers, director of the construction department of Laborers
International Union of North America, said in testimony: ``For many
members of the Laborers, this project is not just a pipeline; it's a
lifeline.''
David Barnett, United Association of Journeymen and Apprentices said:
``The fact of the matter is Keystone XL would, upon completion, be the
most environmentally safe pipeline anywhere in America.''
And then Jeffrey Soth of the International Union of Operating
Engineers said: ``Without the Keystone XL pipeline, American crude oil
from the Bakken Formation, the fastest-growing oil field in the United
States, will continue to move out of the region in the most dangerous,
most expensive way possible, by tanker truck.''
Folks, this is about jobs. We're fortunate to be able to place this
in this bill, 20,000 immediate jobs, 110,000 additional jobs.
I stood outside a refinery and I asked people, Where do you think the
crude oil comes in, and how does the refined product go out? In any
refinery in this country it's done through pipelines. So the Keystone
XL pipeline is a job creator. Organized labor is strongly behind this.
It creates 20,000 immediate jobs.
And you know what, its the best form of stimulus because we're not
borrowing money, and it's not a government project.
So I appreciate what my colleagues have done, including it in this
bill. I thank them. My organized labor friends thank you.
Mr. WAXMAN. Mr. Speaker, I yield myself 3 minutes.
I strongly oppose this legislation as presently structured and urge
its defeat. There's no question that we must extend the payroll tax
breaks, which puts money in the hands of most Americans so they can
spend it and get our economy moving. We must make sure that unemployed
people have the insurance so that they have a lifeline so they can pay
their bills while they're looking for jobs. We have to keep our
promises to those under Medicare to allow physicians to be adequately
reimbursed.
But the price that the Republicans are imposing through this
legislation is simply unacceptable. It contains dangerous poison pills,
a series of riders and legislative provisions that could never pass the
Senate or be signed by the President. The Republicans are trying to
cram them through the back door by holding this bill hostage.
Now, doesn't that sound familiar, Republicans holding things hostage?
It's what they did when we had to raise the debt ceiling or default on
our debts, and they held that bill hostage to try to get some of their
demands.
The provisions to pay for the Medicare reimbursement for doctors
would cause 170,000 people who are now covered to be uninsured. We'd
increase the already high out-of-pocket cost for Medicare
beneficiaries, and subject a full quarter of Medicare beneficiaries to
significantly higher premiums.
Reducing our commitment to public health and prevention activities is
a prescription for more diabetes, heart disease, cancer, and obesity.
But that's what the Republicans would have us do in this bill.
The Keystone XL tar sands pipeline has nothing to do with this
legislation. It has to do with environmental concerns that the
President is presently reviewing in an orderly manner. The Republicans
would have the whole process short-circuited by demanding that he come
to the conclusion that the Canadian pipeline owners, and maybe the Koch
brothers, would like. But it would short circuit a conscientious review
of what this would do throughout this country and how it would affect
our environment.
The spectrum provisions are flawed. While they provide for spectrum
auction incentives, the deployment of a public safety broadband
network, and address spectrum usage by Federal agencies, there are many
shortcomings in the governance provisions of how the public safety
network would work, and how the spectrum auctions would take place.
There are also extraneous provisions that undercut the open Internet
and limit the FCC's ability to provide competitive safeguards. And,
funding levels threaten to shortchange the public safety network
itself.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. WAXMAN. I yield myself another 30 seconds.
This bill is filled with loopholes and riders and special interest
provisions. It's a very bad process to bring this bill to the House
floor. Some of the provisions that came out of our committee never had
full committee consideration.
So I urge Members to defeat the bill. Let's get down to doing what
needs to be done. Don't hold important measures that must pass hostage.
Let's work together and get a decent bill and pass it into law.
I reserve the balance of my time.
Mr. UPTON. Mr. Speaker, I yield 2 minutes to cochair of the Doc
Caucus and a member of the Health Subcommittee, the gentleman from
Georgia, Dr. Phil Gingrey.
Mr. GINGREY of Georgia. Mr. Speaker, I thank the gentleman for
yielding.
Physicians will see a 27.4 percent decrease in Medicare payments if
we fail to act before the new year. If Congress fails to act, seniors
may find that no physician in their area can afford to accept their
Medicare card. That is not the holiday cheer our seniors deserve.
This bill is not perfect. As a medical doctor, I would prefer to be
voting today on a permanent fix to this flawed physician payment
formula in Medicare known as SGR, but I do not have that choice.
My choice, Mr. Speaker, is simple: vote for the physician fix or vote
against it. Vote in support of my former patients who need access to
their doctor when they're sick, or vote against them.
Vote to open up spectrum availability and bolster job creation within
a growing telecommunications marketplace, or vote against it.
Vote for timely approval of the Keystone XL pipeline and, yes, create
20,000 immediate jobs, along with domestic energy independence, or vote
against that.
Allow the EPA to enact job-killing Boiler MACT rules on every State
and every industry in the United States, or vote to rein them in.
Today I'll be voting ``yes'' for the constituents of the 11th
District of Georgia and for my country.
{time} 1710
Mr. WAXMAN. Mr. Speaker, I yield 2 minutes to the gentleman from
Massachusetts (Mr. Markey).
Mr. MARKEY. Last year the Republicans refused to extend unemployment
benefits unless the Bush tax cuts were extended for millionaires and
billionaires. Well, here they go again, Mr. Speaker.
This year, the Republicans are trying to prevent continuation of
jobless benefits and the payroll tax cut unless
[[Page H8808]]
their wish list of goodies for America's biggest polluters is granted
in full. During this Christmas season, instead of gold, frankincense,
and myrrh, the Republicans are bearing gifts of arsenic and mercury and
oil on behalf of their planet-polluting patrons, Big Oil and Big Coal.
The GOP used to stand for ``Grand Old Party.'' Now it stands for ``Gang
of Polluters.'' Now it stands for the ``Gas and Oil Party.''
This Republican bill: One, blocks and indefinitely delays standards
that would reduce hazardous air pollution like lead and cancer-causing
substances that are released from industrial boilers and sent to the
lungs of the children of America;
Two, rushes approval for the Keystone pipeline that will bring the
dirtiest oil on the planet through the United States so it can be
reexported to other countries while hurting our health and our
environment here; and
Three, cuts much needed Medicare payments to hospitals to care for
the sickest in our country.
The Republicans are presenting a false choice to the American people.
We should not have to choose between toxic chemicals and tax relief for
American workers. We should not have to choose between pollution and
prosperity.
In this Republican-controlled House of Representatives, billionaires,
Big Oil, big bankers benefit while the rest of America bears the
burden. Enough is enough.
We know we need to pass the middle class tax cuts. We know we need to
extend unemployment benefits. If we fail to act, Congress will leave a
giant legislative lump of coal in the stockings of struggling
Americans. It is unacceptable, bad for children, bad for the elderly,
bad for the unemployed, and bad for America.
Mr. UPTON. Mr. Speaker, I yield 2 minutes to the gentleman from
Nebraska (Mr. Terry).
Mr. TERRY. Mr. Speaker, it just seems logical that as we have a bill
to extend unemployment insurance for those unemployed that we also have
a measure for them to become employed, and that's the Keystone
pipeline. It is a $7 billion infrastructure project that is ready to
start today, employing as many as 20,000 laborers--mostly union labor,
by the way.
Now, not only will it employ, but the delays of the State Department
and the White House in permitting this project are costing jobs.
And I refer to Little Rock Fox Channel 16. There's their online story
that says:
``Layoffs and a brief company shutdown is what employees face at
Wellspun Tubular Company, which makes steel pipes for the oil industry.
``Company leaders say miles of pipeline are on the property, and that
has caused five dozen employees to lose their jobs. The pipes would be
part of the Keystone oil pipeline, which is a project running from
Canada to Texas.''
The President has said that he would veto this bill extending
unemployment and his tax holiday if this Keystone jobs bill was put in
it. Mr. President, this is about creating jobs. Please join us.
Also, they said that the State Department may have to say no because
they're rushed. But this is the same State Department that back in June
testified before our committee that they could have the decision made
on this pipeline by December 31.
The environmental studies have been there for months. This
application has been with the State Department for 3\1/2\ years. The
State Department has everything they need to make a correct
recommendation for the President.
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore. Members are again reminded to direct their
remarks to the Chair.
Mr. WAXMAN. Mr. Speaker, I am pleased at this time to yield 2 minutes
to the man who's going to be the chairman of the Health Subcommittee
when the public gets a chance next year to vote out the Keystone Kops
overreaching Republicans who are doing it again to the American people,
the gentleman from New Jersey (Mr. Pallone).
Mr. PALLONE. Thank you, Mr. Waxman.
The gentleman from California (Mr. Waxman) had said before that
essentially the Republicans putting up this bill are not serious. They
know that this bill is not going to pass the Senate. They know that the
President won't sign it. And when I heard my colleagues on the other
side talk about how, well, we have a deadline of December 31 and
basically said, Take it or leave it, well, they're not serious. That's
not the way this House and this Congress works.
If you want to get something done by this December 31 deadline, you
need to work with the Democrats, work with the Senate, and come up with
something. And I know that's not what's happening here today. I mean,
this idea that basically you say we're going to give you extended
unemployment benefits but we're going to cut back on the number of
weeks or that we're going to extend the payroll tax and we're going to
come up with a doc fix, but we're going to pay for it dismantling the
Affordable Care Act.
First, the Republicans cut the tax credits to help make insurance
affordable, resulting in 170,000 additional people becoming uninsured;
then they slash the public health and prevention fund, damaging efforts
to realign the Nation's approach to health care; then they cut
hospitals, affecting services that seniors depend on; and, finally,
they increase the premiums under Medicare, resulting in millions of
middle class seniors having to pay more for health care.
Now, we have a Democratic substitute that they wouldn't allow in
order, and that Democratic substitute takes a very different approach.
Unlike the Republicans, the Democratic substitute simply extends tax
cuts for 160 million Americans. It extends unemployment insurance to
help Americans stay afloat financially while they're out seeking work.
And it ensures doctors in Medicare don't face large reductions next
year and maintains access for seniors with a permanent SGR fix. And it
does all of this by asking 300,000 people making more than a million
dollars a year to pay their fair share and by capturing offshore
contingency funds.
So if you want to actually pass something, put our substitute in
order and we will meet that deadline of December 31 and actually do
things that help people create jobs and reduce the deficit and make the
doctors available so that if a senior wants to go to a doctor, they'll
be able to do it.
Look at our substitute and don't continue with this sham.
Mr. UPTON. Mr. Speaker, I yield 1 minute to the gentleman from
Virginia (Mr. Griffith).
Mr. GRIFFITH of Virginia. Mr. Speaker, I hear my colleagues speaking
about what will pass. Let me tell you that the Boiler MACT provisions
of this bill would pass the Senate if only they were allowed to get a
vote. Forty-one members of the Democrat Party voted for Boiler MACT in
this House; 12 Members of the Senate of the Democrat Party are co-
patrons of similar language in the Senate.
The Boiler MACT provisions of this bill help hospitals deal with
their increasing costs. It helps universities. It does help business,
but it helps businesses large and small.
The bill requires reasonable regulations, and it requires reasonable
time in which to comply with those regulations. Currently, they're only
allowed 3 years plus possibly a 4th if allowed by the EPA
administrator. The bill will allow 5 years plus reasonable time. And
when you're trying to change the way you've been doing things,
sometimes you need a little more time to get things done than 3 years.
It was interesting in committee, the EPA came in and was talking to
us about projects they were trying to get done and money they'd left on
the table. They couldn't get their projects done in 3 years. How do
they expect American businesses to do so and provide jobs?
Mr. WAXMAN. Mr. Speaker, I am pleased to yield 2 minutes to the
gentlelady from California, the next chair of the Telecommunications
Subcommittee, Ms. Eshoo.
Ms. ESHOO. I thank the ranking member of the committee.
Mr. Speaker, within this bill are provisions on spectrum that will
define our Nation's ability to lead the world in wireless broadband
deployment. It will also define how we will finally provide our first
responders with a nationwide interoperable broadband network that the
9/11 Commission called for.
[[Page H8809]]
{time} 1720
I appreciate Chairman Walden's work with the minority, including the
agreement on authorizing voluntary incentive spectrum auctions,
reallocating the D-block for public safety, and providing the initial
funding for Next Generation 9-1-1.
I do have four concerns, and I want to point them out:
The first pertains to the treatment of unlicensed spectrum.
Unlicensed spectrum has created an innovative space for entrepreneurs,
enabling Wi-Fi, Bluetooth and thousands of other devices and services--
all meaning jobs. In fact, last month, the Consumer Federation of
America released a new study which found the consumer benefits of
unlicensed spectrum surpassing $50 billion, that's with a ``b,'' per
year. Prohibiting the FCC, which is the expert agency, from using some
of our Nation's best airwaves for unlicensed use, as the House language
does, is simply foolhardy.
Secondly, I am very concerned about how the bill treats the spectrum
public safety needs to create and manage a nationwide interoperable
broadband network. The Republican bill, on the one hand, gives; but on
the other hand, it takes away. This is not a solution, and I don't
believe it's fair to public safety in our country.
Thirdly, the bill encourages the development of 50 separate networks
instead of one nationwide network. Past experiences demonstrate that a
state-based approach fails to achieve interoperability. I think it's
going to cost money, and I don't think it's going to work.
Lastly, the provisions that restrict the FCC's ability to preserve
competition and promote an open Internet simply do not belong in this
legislation.
The SPEAKER pro tempore. The time of the gentlewoman has expired.
Mr. WAXMAN. I yield the gentlelady an additional 30 seconds.
Ms. ESHOO. I think our country is counting on us to make smart and
bipartisan choices, but I am sorry to say that I don't think this bill
meets the standard. I do believe that the Senate accomplished these
goals in S. 911. I believe we can too but not through this bill. So I
urge opposition to it for the reasons I've stated.
Mr. UPTON. Mr. Speaker, at this point I will yield 1 of my 2
remaining minutes to the gentleman from Colorado (Mr. Gardner).
Mr. GARDNER. I thank the chairman of the Energy and Commerce
Committee for the time.
We've all heard about the need to address jobs, to act on jobs, so
here we are today to address the issue of job creation for so many in
this country who are currently unemployed. Perhaps to some, the
creation of jobs is just a pipe dream; but to many Republicans and
Democrats, job creation is a Keystone pipeline. It's not a pipe dream.
In Colorado alone, the Alberta oil sands could create as many as
6,000 jobs in the next 4 years, and the Keystone pipeline is an
important part of that. We hear over and over again of the need to
create jobs, of the need to address the issue of job creation. Yet here
we are, hearing opposition to job creation.
For every dollar we spend on oil from Saudi Arabia, 50 cents is
returned to the U.S. economy. For every dollar spent on Canadian oil,
90 cents is returned to the domestic economy. It's because, in Canada's
oil fields, American products are used en masse--Case loaders, Michelin
tires, Wolverine boots, Ford trucks. The list goes on. This is not the
way it is in countries thousands of miles away.
I urge this Congress not to put politics before paychecks. Pass this
bill.
The SPEAKER pro tempore. The time of the gentleman from California
has expired. The gentleman from Michigan (Mr. Levin) has 5\3/4\ minutes
remaining. The gentleman from Michigan (Mr. Upton) has 1\1/2\ minutes
remaining. The gentleman from Michigan (Mr. Camp) has 4\1/2\ minutes
remaining.
Mr. UPTON. Mr. Speaker, I yield 1 minute to the gentleman from Texas
(Mr. Olson).
Mr. OLSON. I thank the chairman for yielding.
Mr. Speaker, at a time when our economy is struggling to recover,
it's stunning to think that my friends on the other side of the aisle
would deny an opportunity to reduce our reliance on Middle Eastern oil
and create thousands of American jobs.
The Keystone XL pipeline does both. The project has been exhaustively
studied and revised to ensure its safety. Our economy needs a safe,
reliable source of energy. Canada can provide it, and it wants to
provide it to help us reduce our reliance on Middle East oil while
strengthening our national security. Twenty thousand new American jobs
will be created to build this pipeline.
Mr. Speaker, I urge my colleagues to pass this bill. Approve the
Keystone XL pipeline now.
Mr. UPTON. Mr. Speaker, I ask unanimous consent that all of my
remaining time be given back to the gentleman from the great State of
Michigan (Mr. Camp).
The SPEAKER pro tempore. Without objection, the gentleman from
Michigan (Mr. Camp) will have an additional 30 seconds.
There was no objection.
Mr. CAMP. Mr. Speaker, I yield 1 minute to the distinguished
gentleman from Louisiana (Mr. Scalise).
Mr. SCALISE. I thank the gentleman from Michigan for yielding.
I think one of the strongest components of this bill that we're
bringing to the floor today is the jobs component that's contained in
the Keystone pipeline bill.
If you'll look at what we're trying to do right now, we've got some
options here. The American people are clamoring for jobs. We've got the
ability to force President Obama to get off the sidelines. The
President has been good about running all around the country, giving
these political speeches and campaigning. He's talking about jobs, and
he's talking about the middle class. Yet here we have an opportunity to
create 20,000 middle class jobs in America, and the President is saying
``no.'' The President said he'll veto the bill over this one provision.
Now, think about that. There is a bill that deals with unemployment
benefits, and the President is saying he'd rather people be unemployed
than to actually get jobs. They would much rather have jobs than be
unemployed. Yet there is the ability to create 20,000 American jobs
with the Keystone pipeline, and the President is turning his back on
those middle class families.
There is over $7 billion of private investment. We can increase
America's energy security. If that oil comes from Canada, our
dependence on Middle Eastern oil can drop dramatically. We can
eliminate a million barrels a day when this comes online, and we can
reduce our dependence on Middle Eastern oil.
Let's create American jobs. What does President Obama have against
20,000 American jobs? I urge a ``yes'' vote.
Mr. LEVIN. Mr. Speaker, it is my privilege to yield 2 minutes to the
distinguished gentleman from New York, Charles Rangel.
(Mr. RANGEL asked and was given permission to revise and extend his
remarks.)
Mr. RANGEL. I was walking through the Cannon Building to get to one
of the television stations when an older gentleman stopped me and asked
me whether or not they were going to provide the unemployment tax
benefits to them. He was trying to find out why we were gridlocked and
what the problem was. I assumed he was from my district, but he was
from some part of Texas.
He heard my explanation as to why we were not just passing what
Democrats believe in and what Republicans say they don't have a problem
with. I told him it was about the Keystone pipeline, and he says, What
the hell is that?
That made me think, of all the people at this time of the year who
are going to sleep tonight with limited resources and with all of the
polls that are saying that Congress is out of touch with the needs of
America, they're not talking about Republicans; they're talking about
the Congress--Republicans and Democrats.
Is anyone telling me that providing a tax break for people who work
hard every day has to be connected with a pipeline? If you worked every
day and, through no fault of your own, you lost your job when you'd
paid into a fund from which you were supposed to get some comfort, are
you telling them that we need the Keystone pipeline?
[[Page H8810]]
Let's get real. This is a political thing that's being done not to
deliver on the promise that we made to the American people. So let me
make a plea:
For all of the people who are in need, for all of the people who are
looking for a little break from Big Government, for all of the people
whom we made these promises to, say that we couldn't do it because of
the Keystone pipeline. If you think that makes any sense, then we are
just a disgrace to the American people.
If you want a Keystone pipeline, bring it to the floor. Let's debate
it and vote up or down. But to hold hostage the American people who are
suffering is just plain wrong.
{time} 1730
Mr. CAMP. Mr. Speaker, I yield 1 minute to the distinguished
gentlewoman from Illinois (Mrs. Biggert).
Mrs. BIGGERT. I thank the gentleman for yielding.
Mr. Speaker, I rise in support of H.R. 3630. I appreciate the efforts
of the chairman and my colleagues who serve on the relevant committees
in crafting a package that responds to the needs of all Americans right
now.
The bill addresses the urgent struggles of the unemployed and small
business owners. It recognizes that we cannot dig our way out of a
recession with more taxes and higher deficits. Whether you are a job
creator or a job seeker, the bill extends critical assistance at a time
when millions of Americans need it most. The bill does all this and
more without adding one penny to the deficit. Important government
reforms and cost-saving measures were included in the bill to reduce
the debt and implement long overdue reforms. It's also important to
note that this compromise takes steps to protect the Social Security
Trust Fund.
Mr. Speaker, this bill is a smart step towards job creation and
economic certainty. I urge my colleagues to support the bill.
Mr. LEVIN. I yield 1 minute to our distinguished leader, the
gentlelady from California (Ms. Pelosi).
Ms. PELOSI. I thank the gentleman for yielding. I commend him for his
extraordinary leadership on behalf of America's working families. He
has demonstrated a long-term, consistent dedication to their well-
being.
Mr. Speaker, I return to the floor. I spoke on the rule earlier. But
I listened attentively to the debate, and I think a few points need to
be made, and I will do that very briefly.
It is clear that the Republicans, in using the pipeline, are trying
to change the subject. The subject at hand is, we have a proposal from
the President of the United States which has within it proposals that
have had bipartisan support over a period of time on how to have a
payroll tax cut that benefits many middle-income families in our
country, that respects that some people are out of work through no
fault of their own and need unemployment insurance, and that our
seniors want to have the doctor of their choice, and that issue has to
be addressed here. The fact is is that because of the way the rules
were set up--not to go into process--but the Republicans said, You are
not even going to be able to bring the President's and the Democratic
proposals to the floor. Instead, we are going to bring ours to the
floor. But so that the public doesn't really understand the difference
between the two, we are going to have a smokescreen go out there, a
smokescreen of confusion by talking about the pipeline. And this is
very interesting because this isn't about the pipeline.
We, as other speakers have said, could have a vote on the pipeline at
any time, to vote it up or vote it down, consider what it means for
jobs and the impact on the environment. And it doesn't reduce
dependence on foreign oil. But nonetheless, that is a subject for
debate at another time. I, myself, have not made a public statement one
way or another. But many of our colleagues have. They are either
supporting it or they are not, but that is not the point of the
legislation. Many who support the pipeline are opposing this bill
because they know it is being used. It is being used. And some of our
friends in labor want this pipeline built. But I assure you that they
want unemployment insurance for workers who, again, through no fault of
their own, are out of work.
So let's just take a few points here. The proponents of this bill who
are using the pipeline as a smokescreen and as an excuse say that it
will create 20,000 jobs. Let's hope that that is correct. But what it's
doing is standing in the way of the President's proposal, which will
create 600,000 jobs, which will make an impact of 600,000 jobs on our
economy. That's from the macroeconomic advisers. It will make the
difference of 600,000 jobs. So while they are professing these 20,000
jobs, which may be a legitimate number--and let's say it's the highest
number they could come up with, let's have that debate on another day.
You may see a very big, strong vote on the floor for the pipeline, or
you may not. So the point is, 20,000 jobs--if that's the argument--
versus 600,000 jobs.
The other point is that the President's proposal affects 160 million
Americans; 160 million Americans will have a payroll tax cut, according
to his proposal, in a substantial way. This is not, as the Republicans
want to do, to throw a bone to the middle class. This is about a
thriving middle class. It's about a payroll tax cut that does what it
sets out to do, puts $1,500 in the pockets of America's families who
need it and spend it and, in doing so, injects demand, demand, demand
into our economy, which further creates jobs. And how that is paid for
is by a surtax on those making over $1 million a year.
So 160 million people affected; a surcharge on 300,000 of the
wealthiest people in America. We don't begrudge them their wealth,
their success. That's important. I don't think that any one of those
300,000 people would begrudge the 160 million Americans their payroll
tax cut. But I do think it is the extremists on the Republican side in
the House of Representatives who have an ideological point of view, and
that is what is at work here. It isn't about those 300,000 begrudging
the 160 million, and it isn't about the 160 million begrudging the
300,000. So let's understand the numbers here.
I want to reference the chairman's bill. Who sacrifices under the
Republican bill? Seniors suffer $31 billion. Instead of a surcharge on
the 300,000 wealthiest people in our country making over $1 million a
year, the Republicans pay for the payroll tax by taking $31 billion
from seniors. Federal workers sacrifice $40 billion. Unemployed
Americans sacrifice $11 billion. Billionaires sacrifice zero. I think
all Americans are willing to do their fair share. We all have to do our
part, take responsibility, zero. So again, 20,000 jobs, 600,000 jobs;
160 million Americans, 300,000 Americans; $31 billion from Medicare.
The President's proposal and the Democratic plan that mirror each
other reduce the deficit by $300 billion. And according to the
Congressional Budget Office--and I will read from a Congressional
Budget Office letter to Mr. Camp. The independent, nonpartisan Budget
Office of the House, writing to Mr. Camp said, ``According to
Congressional Budget Office's and Joint Tax Committee's estimates,
enacting H.R. 3630''--the bill before us--``would change revenues and
direct spending to produce increases in the deficit of $166.8 billion
in fiscal year 2012 and $25.3 billion over the 2012-2021 period.''
So let's just take the lower number, $25 billion in the life of the
bill. That's what the CBO says about the bill before us. That's why
earlier today, there was a motion to say that this was not in keeping
with being revenue-neutral, as the Republicans espouse and we agree.
So again, the numbers: 20,000 jobs with the pipeline--and that may be
a good thing, but this is not the place. This is a smokescreen. This is
a distraction. This is a change of subject. This is the masters of
confusion so you don't know what really is at stake here.
You couldn't possibly be sincere about a payroll tax cut that makes
the middle class thrive if you put an obstacle like that in front of it
and call it a jobs bill to create 600,000 jobs. One hundred sixty
million Americans benefit from this. Please don't tax 300,000; instead,
take $31 billion from our seniors. Reduce the deficit by $300 billion;
increase the deficit by $25 billion. The numbers are clear. They speak
for themselves.
I urge my colleagues to vote ``no.'' I hope that we can come to the
table and
[[Page H8811]]
share a view that this middle-income tax cut is worth doing without
obstacles to its being signed into law, and that we can do it soon. I
say it over and over again: Christmas is coming. For some, the goose is
getting fat; for others, there are very slim prospects. Let's change
that. Let's do the people's work. Let's get this done. I urge a ``no''
vote.
{time} 1740
Mr. CAMP. Mr. Speaker, I yield myself 30 seconds.
If the distinguished minority leader had read the next paragraph of
the letter to me by the Congressional Budget Office, she would have
read that the bill in its entirety reduces the deficit by $1 billion.
Mr. Speaker, I would like to insert the entirety of the letter to me
from the Congressional Budget Office into the Record.
U.S. Congress,
Congressional Budget Office,
Washington, DC, December 9, 2011.
Hon. Dave Camp,
Chairman, Committee on Ways and Means, House of
Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office (CBO)
and the staff of the Joint Committee on Taxation (JCT) have
reviewed H.R. 3630, the Middle Class Tax Relief and Job
Creation Act of 2011, as introduced on December 9, 2011. The
attached tables provide CBO's and JCT's estimates of the
legislation's budgetary effects.
Table 1 presents a summary of the expected impact on
deficits from changes in revenues and direct spending, along
with estimated changes from reductions in existing caps on
discretionary funding (those effects are subject to future
appropriation actions).
According to CBO's and JCT's estimates, enacting H.R. 3630
would change revenues and direct spending to produce
increases in the deficit of $166.8 billion in fiscal year
2012 and $25.3 billion over the 2012-2021 period.
Relative to discretionary spending projected under current
law and assuming compliance with the current-law caps on
discretionary appropriations for the next 10 years, CBO
estimates that the proposed changes in discretionary funding
caps under H.R. 3630 would lead to a reduction in projected
discretionary spending of $26.2 billion over the 2012-2021
period (as shown in the bottom panel of Table 1).
Table 2 provides detail on the changes in revenues and
direct spending for the major provisions of the legislation.
Enacting the bill would reduce revenues by $88.3 billion over
the 2012-2021 period and reduce direct spending by $63.1
billion over that period, according to CBO's and JCT's
estimates. Those changes are the budgetary effects that would
be expected to occur directly from enactment of H.R. 3630,
while proposed changes in spending subject to appropriation
are contingent upon enactment of future legislation.
Table 3 shows the estimated impact of H.R. 3630 under the
Statutory Pay-As-You-Go Act of 2010 (S-PAYGO Act). Under that
act, budget-reporting and enforcement procedures apply to
changes in the on-budget deficit from changes in revenues and
direct spending. Those procedures call for automatic
reductions in certain direct spending programs if there are
positive balances in either the 5-year or 10-year
compilations of pay-as-you-go budgetary effects.
Following the specifications in the S-PAYGO Act, which
allows for an adjustment to reflect the continuation of
current rates on the payments to physicians under Medicare,
CBO estimates that on-budget changes in direct spending and
revenues subject to the pay-as-you-go considerations would
increase deficits by $136.6 billion over the 2012-2016 period
and would reduce deficits by $4.0 billion over the 2012-2021
period.
H.R. 3630 would direct the Office of Management and Budget
to exclude from its scorecard of balances under the S-PAYGO
Act any estimated deficit reduction for the 10-year period
spanning fiscal years 2012 through 2021. The bill also
specifies that the estimate submitted for printing in the
Congressional Record should reflect three types of effects
that are not included under the S-PAYGO Act: off-budget
effects, projected changes in discretionary spending from
changes in the caps on new appropriations, and estimated
changes in net income of the National Flood Insurance Program
(but those adjustments are not included in Table 3 because
the provision has not been enacted into law).
If you wish further details on this estimate, we will be
pleased to provide them.
Sincerely,
Robert A. Sunshine
(For Douglas W. Elmendorf, Director).
Enclosure.
TABLE 1. BUDGETARY EFFECTS OF H.R. 3630, THE MIDDLE CLASS TAX RELIEF AND JOB CREATION ACT OF 2011, AS INTRODUCED ON DECEMBER 9, 2011
[Millions of dollars, by fiscal year]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012-2016 2012-2021
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN REVENUES
TOTAL CHANGES IN REVENUES a......... -130,060 -46,650 -11,275 13,292 40,564 13,696 9,302 3,497 11,916 7,373 -134,129 -88,346
On-budget revenues.............. -39,143 -16,344 -11,270 13,302 40,582 13,717 9,325 3,522 11,942 7,401 -12,873 33,034
Off-budget revenues b........... -90,917 -30,306 -5 -11 -18 -21 -23 -25 -26 -28 -121,257 -121,380
CHANGES IN DIRECT SPENDING
TOTAL CHANGES IN DIRECT SPENDING:
Estimated Budget Authority...... 36,839 24,915 -1,936 -12,494 -13,041 -15,491 -16,940 -17,368 -19,939 -27,481 34,283 -62,936
Estimated Outlays c............. 36,699 24,915 -1,931 -12,485 -12,991 -15,451 -16,919 -17,363 -20,043 -27,520 34,207 -63,089
On-budget outlays b......... 127,616 55,221 -1,931 -12,273 -12,586 -14,914 -16,372 -16,846 -19,547 -27,044 156,047 61,324
Off-budget outlays b........ -90,917 -30,306 0 -212 -405 -537 -547 -517 -496 -476 -121,840 -124,413
NET INCREASE OR DECREASE (-) IN DEFICITS FROM REVENUES AND DIRECT SPENDING
NET CHANGES IN DEFICITS............. 166,759 71,565 9,344 -25,776 -53,555 -29,147 -26,222 -20,861 -31,958 -34,893 168,337 25,257
On-budget deficit change........ 166,759 71,565 9,339 -25,575 -53,167 -28,631 -25,698 -20,368 -31,488 -34,445 168,920 28,290
Off-budget deficit change b..... 0 0 5 -201 -387 -516 -524 -492 -470 -448 -583 -3,033
CHANGES IN SPENDING SUBJECT TO APPROPRIATION FROM CHANGES IN CAPS ON DISCRETIONARY FUNDING
TOTAL CHANGES IN DISCRETIONARY
SPENDING:
Estimated Authorization Level... 0 -2,000 -3,000 -3,000 -3,000 -3,000 -3,000 -4,000 -4,000 -4,000 -11,000 -29,000
Estimated Outlays............... 0 -1,214 -2,279 -2,765 -2,992 -3,160 -3,276 -3,386 -3,506 -3,632 -9,250 -26,210
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Sources: Congressional Budget Office and the staff of the Joint Committee on Taxation.
Note: Components may not sum to totals because of rounding.
a For revenues, positive numbers indicate a decrease in the deficit; negative numbers indicate an increase in the deficit.
b The bill would modify and extend the payroll-tax holiday for one year, causing a reduction in off-budget revenues credited to the Social Security trust funds. The bill also would transfer
from the Treasury to the Social Security trust funds an amount equal to that off-budget revenue loss. The off-budget receipt would offset the lost revenue and, thus, section 2001 would have
no net off-budget effect. (Other sections in the bill would have an off-budget effect.)
c Title III of the bill would raise premiums for certain subsidized flood insurance policies, increasing net income to the National Flood Insurance Program by $4.9 billion. However, because
many policies would continue to be subsidized and the program would continue to face significant interest costs for borrowing over the past decade, CBO expects that additional receipts
collected under this legislation would be spent to cover future program shortfalls, resulting in no net effect on the budget over the 2012-2021 period.
[[Page H8812]]
TABLE 2. EFFECTS ON REVENUES AND DIRECT SPENDING OF H.R. 3630, THE MIDDLE CLASS TAX RELIEF AND JOB CREATION ACT OF 2011, AS INTRODUCED ON DECEMBER 9, 2011
[Millions of dollars, by fiscal year]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012- 2016 2012- 2021
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN REVENUES
Extension of 100 Percent Expensing.. -38,299 -17,648 15,174 10,730 8,430 6,564 4,181 2,523 1,397 944 -21,613 -6,005
Election to Accelerate AMT Credits.. -1,526 -801 32 32 42 58 64 64 66 69 -2,221 -1,899
Extension of Payroll Tax Reduction 919 670 0 0 0 0 0 0 0 0 1,589 1,589
(On-budget)........................
Extension of Payroll Tax Reduction -90,917 -30,306 0 0 0 0 0 0 0 0 -121,223 -121,223
(Off-budget).......................
Unemployment Compensation........... 0 24 78 78 58 21 13 -7 -12 -12 238 241
Tax on Unemployment Benefits for -2 -6 -8 -11 -13 -13 -14 -14 -13 -14 -40 -107
High Earners.......................
Federal Employee Retirement 0 1,182 2,366 3,497 4,007 4,338 4,701 5,101 5,511 5,950 11,051 36,652
Contributions......................
Health Care Provisions (on-budget).. 0 0 82 172 278 340 380 410 438 464 532 2,563
Health Care Provisions (off-budget). 0 0 -5 -11 -18 -21 -23 -25 -26 -28 -34 -157
Repeal of Corporate Tax Timing Shift -235 235 -28,993 -1,196 27,780 2,409 0 -4,555 4,555 0 -2,409 0
-----------------------------------------------------------------------------------------------------------------------------------------------------------
Total Changes in Revenues a..... -130,060 -46,650 -11,275 13,292 40,564 13,696 9,302 3,497 11,916 7,373 -134,129 -88,346
On-budget revenues.............. -39,143 -16,344 -11,270 13,302 40,582 13,717 9,325 3,522 11,942 7,401 -12,873 33,034
Off-budget revenues b........... -90,917 -30,306 -5 -11 -18 -21 -23 -25 -26 -28 -121,257 -121,380
CHANGES IN DIRECT SPENDING (Outlays)
Title II--Extension of Certain
Expiring Provisions and Related
Measures:
Extension of Payroll Tax 90,917 30,306 0 0 0 0 0 0 0 0 121,223 121,223
Reduction (On-budget) b........
Extension of Payroll Tax -90,917 -30,306 0 0 0 0 0 0 0 0 -121,223 -121,223
Reduction (Off-budget) b.......
Unemployment Compensation....... 23,620 10,705 -15 -15 -15 -15 -15 -15 -15 -15 34.280 34,205
Physician Payment Update........ 11,340 19,280 5,660 -1,350 40 810 1,040 940 680 410 34,970 38,850
Other Medicare Extensions and 1,484 1,037 -2,056 -3,429 -4,395 -4,770 -5,084 -5,392 -5,685 -10,078 -7,359 -38,368
Health Provisions..............
-----------------------------------------------------------------------------------------------------------------------------------------------------------
Subtotal, Title II.......... 36,444 31,022 3,589 -4,794 -4,370 -3,975 -4,059 -4,467 -5,020 -9,683 61,891 34,687
Title III--Flood Insurance Reform c. 0 -70 -150 220 0 0 0 0 0 0 0 0
Title IV--Auction and Use of 1,420 1,460 -445 -3,231 -3,895 -4,395 -3,444 -2,590 -726 -641 -4,691 -16,487
Spectrum...........................
Title V--Offsets:
Fannie Mae and Freddie Mac -1,300 -4,600 -4,000 -3,500 -3,300 -3,300 -3,700 -3,900 -4,000 -4,100 -16,700 -35,700
Guarantee Fees.................
Social Security Provisions 0 0 0 -212 -405 -537 -547 -517 -496 -476 -617 -3,190
Related to Noncovered
Employment (off-budget)........
Require Social Security Number 0 -2,606 -823 -820 -832 -848 -856 -864 -872 -872 -5,081 -9,393
for Child Tax Credit...........
Ending Unemployment Compensation -15 -14 -12 -12 -11 -12 -12 -12 -13 -14 -64 -127
and Supplemental Nutrition
Assistance for Millionaires....
Federal Civilian Employees...... 0 -25 -90 -136 -178 -214 -243 -267 -300 -340 -429 -1,793
Health Care Provisions.......... 0 0 0 0 0 -2,170 -4,058 -4,746 -8,616 -11,394 0 -30,984
-----------------------------------------------------------------------------------------------------------------------------------------------------------
Subtotal, Title V........... -1,315 -7,245 -4,925 -4,680 -4,726 -7,081 -9,416 -10,306 -14,297 -17,196 -22,891 -81,187
Title VI--Miscellaneous Provisions 150 -252 0 0 0 0 0 0 0 0 -102 -102
(Repeal Timing Shift for
Merchandise Processing Fees).......
Total Changes in Direct Spending.... 36,699 24,915 -1,931 -12,485 -12,991 -15,451 -16,919 -17,363 -20,043 -27,520 34,207 -63,089
On-budget outlays........... 127,616 55,221 -1,931 -12,273 -12,586 -14,914 -16,372 -16,846 -19,547 -27,044 156,047 61,324
Off-budget outlays.......... -90,917 -30,306 0 -212 -405 -537 -547 -517 -496 -476 -121,840 -124,413
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Sources: Congressional Budget Office and the staff of the Joint Committee on Taxation.
Note: AMT = Alternative Minimum Tax; components may not sum to totals because of rounding.
a For revenues, positive numbers indicate a decrease in the deficit; negative numbers indicate an increase in the deficit.
b The bill would modify and extend the payroll-tax holiday for one year, causing a reduction in off-budget revenues credited to the Social Security trust funds. The bill also would transfer
from the Treasury to the Social Security trust funds an amount equal to that off-budget revenue loss. The off-budget receipt would offset the lost revenue and, thus, section 2001 would have
no net off-budget effect. (Other sections in the bill would have an off-budget effect.)
c Title III would raise premiums for certain subsidized flood insurance policies, increasing net income to the National Flood Insurance Program by $4.9 billion. However, because many policies
would continue to be subsidized and the program would continue to face significant interest costs for borrowing over the past decade, CB0 expects that additional receipts collected under
this legislation would be spent to cover future program shortfalls, resulting in no net effect on the budget over the 2012-2021 period.
TABLE 3. CBO ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 3630, THE MIDDLE CLASS TAX RELIEF AND JOB CREATION ACT OF 2011, AS INTRODUCED ON DECEMBER 9, 2011
[Millions of dollars, by fiscal year]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012-2016 2012-2021
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE ON-BUDGET DEFICIT
Total On-Budget Changes............. 166,759 71,565 9,339 -25,575 -53,167 -28,631 -25,698 -20,368 -31,488 -34,445 168,920 28,290
[[Page H8813]]
Less:
Current-Policy Adjustment 10,160 17,080 5,040 0 0 0 0 0 0 0 32,280 32,280
for Medicare Payments to
Physicians a...............
-----------------------------------------------------------------------------------------------------------------------------------------------------------
Statutory Pay-As-You-Go Impact...... 156,599 54,485 4,299 -25,575 -53,167 -28,631 -25,698 -20,368 -31,488 -34,445 136,640 -3,990
Memorandum:
Changes in Outlays a............ 117,456 38,141 -6,971 -12,273 -12,586 -14,914 -16,372 -16,846 -19,547 -27,044 123,767 29,044
Changes in Revenues............. -39,143 -16,344 -11,270 13,302 40,582 13,717 9,325 3,522 11,942 7,401 -12,873 33,034
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
a Section 7(c) of the Statutory Pay-As-You-Go Act of 2010 provides for current-policy adjustments related to Medicare payments to physicians.
Notes: Components may not sum to totals because of rounding.
Sources: Congressional Budget Office and Joint Committee on Taxation.
I would also note that the first bullet on the distinguished minority
leader's chart was exactly the President's proposal. The President has
asked to increase premiums on wealthy seniors; the President does.
So it is interesting the minority leader is criticizing the
President's own proposal, which is put directly into this bill.
I reserve the balance of my time and would tell my colleague that I
am prepared to close.
Mr. LEVIN. Mr. Speaker, I yield myself the balance of my time.
The SPEAKER pro tempore. The gentleman from Michigan is recognized
for 2\3/4\ minutes.
Mr. LEVIN. I want to start by reading one of the 400-plus
communications we received. This is from Jackie of Amherst, New
Hampshire: ``Unemployment benefits helped me make ends meet while I was
using my savings and 401(k) to keep up with everything. Now they are
gone. My savings are long gone. My 401(k) is almost gone. I am watching
everything I worked so hard for, for my entire adult life, slip away
from me. I am 50.''
In the name of reform, what the House Republicans are doing is to
retreat, to retreat from assisting the unemployed through no fault of
their own. According to the data received from the Department of Labor,
3.3 million Americans would lose weeks of unemployment benefits under
this bill compared to an extension of current law.
The President has made his position clear. The Statement of
Administration Policy says: ``The administration strongly opposes H.R.
3630. With only days left before taxes go up for 160 million
hardworking American, H.R. 3630 plays politics at the expense of middle
class families.
``Instead of working together to find a balanced approach that will
actually pass both Houses of Congress, H.R. 3630 instead represents a
choice to refight old political battles over health care and introduce
ideological issues into what should be a simple debate about cutting
taxes for the middle class.
``If the President were presented with H.R. 3630, he would veto the
bill.''
In good conscience, we should not support this bill. Remembering the
3.3 million who would have their benefits cut under this bill, there
should be a resounding ``no.'' A resounding ``no.''
I yield back the balance of my time.
Mr. CAMP. Mr. Speaker, I yield myself the balance of my time.
The SPEAKER pro tempore. The gentleman from Michigan is recognized
for 2\1/2\ minutes.
Mr. CAMP. This bill will strengthen our economy and help get
Americans back to work by lowering the tax burden for middle class
families and job providers.
It prevents massive cuts to doctors working in the Medicare program
to protect American seniors and those with disabilities, providing more
stability in the doctor payment schedule than there has been in a
decade.
It adopts 12 of the President's legislative initiatives, which
represents the bipartisan cooperation Americans are demanding, and
includes an increase in Medicare premiums for the wealthy, as the
President requested.
It will extend Federal unemployment programs to 5 million Americans,
those still struggling after the President's failed stimulus program.
I'm still waiting for the 3.5 million jobs that were promised and the 6
percent unemployment rate. But we ensure in this bill that they get the
assistance they need.
And under this bill, more than 1 year of benefits will be available.
It's fully paid for with spending reductions, spending cuts, not job-
killing tax hikes.
Commonsense reforms and savings in this bill include things like
actually requiring those who receive an unemployment check to look for
work and get a GED if they don't have a high school diploma, require
undocumented workers who are seeking refundable--that's cash--tax
credits to actually have a valid Social Security number, just like is
required in the earned income tax credit.
And the bill freezes pay for Members of Congress and other
nonmilitary government personnel. This legislation also protects
critical programs by reducing the Federal tax subsidies that go to
wealthier Americans. We put an end to millionaires and billionaires
receiving unemployment benefits and food stamps, saving over $20
million.
We also adopt the President's plan to reduce subsidies to high-income
seniors by requiring them to pay a greater share of their Medicare
premium. That reduces Federal spending by $31 billion.
All told, this bill incorporates more than a dozen proposals the
President has either offered, supported, or has signed into law in one
variation or another. In fact, 90 percent of this bill is paid for with
those policies.
I urge support of this legislation. This bill is about strengthening
our economy, helping Americans find a job. It doesn't add one dime to
the debt. It is bipartisan, and it will help get our economy back on
track. Please vote ``yes'' for this bill.
I yield back the balance of my time.
Mr. HOLT. Mr. Speaker, instead of creating jobs--which is what the
American people want and need from this body--we are here discussing a
measure that has no chance of becoming law. Instead of working toward
commonsense solutions to solve our jobs crisis and get Americans back
to work, we are once again playing political games.
Mr. Speaker, we should not allow last year's one-year mistake to
become a permanent attack on Social Security and the livelihood of its
beneficiaries. Social Security should not be used as a rainy-day fund
or a political bargaining chip. It should come as no surprise that
President Roosevelt described it best. He said, ``We put these payroll
contributions there so as to give the contributors a legal, moral, and
political right to collect their pensions and their unemployment
benefits. With those taxes in there, no damn politician can ever scrap
my social security program.'' Let's cut payroll taxes for 160 million
Americans but make up the lost revenue by temporarily eliminating the
cap on wages taxed for Social Security. As much as we need economic
stimulus now, we will need Social Security for decades to come.
What else does this legislation do, Mr. Speaker? It contains
irrelevant and controversial provisions like the Keystone Pipeline,
which the President has promised to veto. It requires millions of
American seniors to pay more for health care, while doing nothing to
ask the wealthiest among us to pay their fair share. It reduces by 40
weeks the maximum length of unemployment benefits and cuts completely
the benefits for millions of Americans who need this vital lifeline
through no fault of their own. This bill cuts funding for preventative
health care and endangers the health of our children by blocking air
quality standards that will help combat pediatric asthma. It also fails
to take seriously the question of Medicare reimbursement to physicians
and instead simply puts a temporary patch on a problem that needs long-
term reform.
[[Page H8814]]
But perhaps more important, Mr. Speaker, is to consider what this
bill fails to do. This bill fails to address tax relief that could
actually benefit middle-class families, expand our workforce, and grow
our economy. This bill does nothing to address the Alternative Minimum
Tax, which will affect more than 30 million Americans next year. It
fails to provide tax relief for our Nation's teachers. It does nothing
to address the need to invest in research and development. I have
authored legislation to expand and make permanent the R&D tax credit
and to promote increased investment in research-intensive small
businesses. These measures are proven job creators, yet they have not
been brought forward for consideration by this body because the
majority has blocked any attempt to include meaningful amendments. This
is just another example of how a closed rule produces bad legislation.
Mr. Speaker, many of the provisions contained in this legislation
make little sense to middle-class families. So why are we here debating
it? Why are we wasting time on a measure that is sure to fail? I urge
my colleagues to join me in demanding a measure that provides
commonsense tax relief for middle-class families, protects Social
Security, and helps put the unemployed back to work.
Ms. JACKSON LEE of Texas. Mr. Speaker, I rise today to oppose H.R.
3630, ``Middle Class Tax Relief and Job Creation Act of 2011.'' This
legislation sends the wrong message at the worst time for Americans. As
we approach a new year, my colleagues on the other side of the aisle
have once again targeted millions of seniors and middle class families
for cuts without asking essentially anything of millionaires and
billionaires.
They have singled out Medicare premium increases that permanently
increase seniors' costs by $31 billion. The bill also, when you look at
it carefully, spends $300 million on a special interest provision that
helps a handful of specialty hospitals while cutting billions from
community hospitals.
Republicans have targeted the unemployed, slashing 40 weeks of
unemployment insurance, impacting millions of families still struggling
under the weight of the worst economic downturn since the Great
Depression. Twenty-two jurisdictions with the highest unemployment
rates would be hit the hardest: Alabama, California, Connecticut, DC,
Florida, Georgia, Illinois, Idaho, Indiana, Kentucky, Michigan,
Missouri, Nevada, New Jersey, North Carolina, Ohio, Oregon, Rhode
Island, South Carolina, Tennessee, Texas, and Washington. The result
would be that in the state that Mr. Camp and I come from--Michigan--the
bill would cut unemployment insurance to 46 weeks.
Essentially the sacrifice will be borne by middle class and low
income Americans, as the wealthiest among us have not been asked to
join in this shared sacrifice. Not even after the wealthiest 1 percent
saw their incomes nearly triple in the last three decades while
salaries for middle class families barely budged.
There are more than four unemployed Americans for every job opening.
Never on record in our Nation's history have there been so many
unemployed Americans out of work for so long. There is nothing normal
about this recession. Republicans are clearly out of touch with the
needs of American families.
I am committed to producing tangible results in suffering communities
through legislation that creates jobs, fosters minority business
opportunities, and builds a foundation for the future. Every American
deserves the right to be gainfully employed or own a successful
business and I know we are all committed to that right and will not
rest until all Americans have access to economic opportunity.
According to a report released by the Department of Labor late this
afternoon, 3.3 million Americans would lose unemployment benefits as a
result of the GOP bill compared to a continuation of current law. In
the State of Texas alone 227,381 people will lose their sole source of
income by the end of January.
This bill stands as a shining example of not keeping a pledge given
to the American people. A little over a year ago, Republican leadership
released to the public their Pledge to America in which they told the
American people that they would ``end the practice of packaging
unpopular bills with `must-pass' legislation to circumvent the will of
the American people. [Further] Instead, [Republicans] will advance
major legislation one issue at a time.'' This is what my colleagues
stated less than one year ago. But before this body today they have
presented us with a package that is the exact opposite of that pledge.
This bill is riddled with provisions that I cannot support. I will not
support needlessly adding to the burdens already being borne by hard
working Americans. This is an inconsistent message being given to the
American people. The Republicans need to honor their pledge to the
American people.
This bill will reduce the current Payroll Tax Cut by 2 percent and
addresses the Sustainable Growth Rate (SGR) for two years, providing a
1 percent update for both 2012 and 2013 and resulting in a scheduled 37
percent cut in 2014. It extends the Emergency Unemployment Compensation
Program until January, 2013 but lowers the amount of time benefits are
provided from 99 weeks currently to 59 weeks.
It also includes permanent provisions allowing drug testing of
applicants and would allow states to require a high school diploma or
being enrolled in classes for a GED to be eligible for benefits. The
bill offsets the costs of these extensions by significantly increasing
both the amount of Medicare premiums paid by high-income beneficiaries
and the number of beneficiaries required to pay these higher premiums,
and by cutting Medicare provider rates.
In addition, it prohibits immigrants without social security numbers
from receiving the refundable portion of the Child Tax Credit. It
further offsets the bill by freezing federal employee pay for an
additional year through 2013, and increases fees charged by Fannie Mae
and Freddie Mac to lenders. It also includes frequency Spectrum sales
to help offset the cost of the bill, but with provisions related to net
neutrality included in the language.
H.R. 3630 is a direct assault on the jobless. This legislation sends
the wrong message at the worst time for Americans who are looking for
employment, who are concerned about losing their homes and who are
doing everything in their power to feed themselves and their families,
and their neighbors.
If we allow these unemployment insurance benefits to expire in the
next 17 days--there will be millions of people who will not be able to
pay their mortgage or their rent in January and could find themselves
homeless by February.
We are throwing millions of Americans out of their life boats, into
an ocean without a life preserver. This is senseless. If those benefits
run out, millions of people who've lost their jobs could see their sole
source of income end in January. And this could have an effect on the
larger economy.
While the bill extends the payroll tax deduction, it limits the
availability of federally funded unemployment assistance, and includes
punitive provisions for the least skilled jobless workers.
If there is a single federal program that is absolutely critical to
people in communities all across this Nation at this time, it would be
unemployment compensation benefits. Unemployed Americans must have a
means to subsist, while continuing to look for work that in many parts
of the country is just not there. Families have to feed children.
According to the U.S. Bureau of Labor Statistics the state of Texas
continues to have the largest year-over-year job increase in the
country with a total of 253,200 jobs. However, there are still
thousands of Texans like thousands of other Americans in dire need of a
job.
The bill being brought to the Floor by my Republican Colleagues does
not adequately address the needs of the unemployed.
The plan put forth by my Republican colleagues has provisions to
slash the duration of federal unemployment benefits by 40 weeks. Since
2008, federal programs expiring in January have provided up to 73 weeks
of compensation for workers who use up 26 weeks of state benefits.
In addition, the version heading to the House Floor would slash an
additional 20 weeks of federal Emergency Unemployment Compensation and
it would let states reduce benefits even further. It would also impose
a uniform federal work search requirement and disqualify high school
dropouts not actively pursuing GEDs and millionaires from receiving
benefits. The unemployment reforms, sweeping as they are, may be lost
amid other features of the Republican package.
A worker advocacy group recently described the drug testing element
as the ``most disturbing'' part of the Republican unemployment reforms.
``Devising new ways to insult the unemployed only distracts from the
current debate over how to best restore the nation's economy to strong
footing and the discussion over how to best support the unemployed and
get them back to work.''
The requirement to insist that to qualify for benefits that a person
has earned should require a GED or a high school diploma will have a
negative impact on minorities.
The labor force participation rate for persons without a high school
diploma is 20 percentage points lower than the labor force
participation rate for high school graduates.
Nationally, approximately 70 percent of all students graduate from
high school, but African-American and Hispanic students have a 55
percent or less chance of graduating from high school.
Only 52 percent of students in the 50 largest cities in the United
States graduate from high school. That rate is below the national high
school graduation rate of 70 percent, and also falls short of the 60
percent average for urban districts across the Nation.
[[Page H8815]]
What is needed is job training programs that are funded rather than
penalties for those who for a multitude of reasons have not attained a
high school diploma or GED.
Unemployed workers, many of whom rely on public transportation, need
to be able to get to potential employers' places of work. Utility
payments must be paid. Most people use their unemployment benefits to
pay for the basics. No one is getting rich from unemployment benefits,
because the weekly benefit checks are solely providing for basic food,
medicine, gasoline and other necessary things many individuals with no
other means of income are not able to afford.
Personal and family savings have been exhausted and 401Ks have been
tapped, leaving many individuals and families desperate for some type
of assistance until the economy improves and additional jobs are
created. The extension of unemployment benefits for the long-term
unemployed is an emergency. You do not play with people's lives when
there is an emergency. We are in a crisis. Just ask someone who has
been unemployed and looking for work, and they will tell you the same.
With a national unemployment rate of 9.1 percent, preventing and
prolonging people from receiving unemployment benefits is a national
tragedy. In the City of Houston, the unemployment rate stands at 8.6
percent as almost 250,000 individuals remain unemployed.
Indeed, I cannot tell you how difficult it has been to explain to my
constituents who are unemployed that there will be no further extension
of unemployment benefits until the Congress acts. Whether the
justification for inaction is the size of the debt or the need for
deficit reduction, it is clear that it is more prudent to act
immediately to give individuals and families looking for work a means
to survive.
Currently, individuals who are seeking work find it to be like
hunting for a needle in a hay stack. For every job available today,
there are four people who are currently unemployed. You can not fit a
square peg in a round hole and point fingers at the three other people
who when that jobs is filled is left unemployed. Lets be realistic
there are currently 7 million fewer jobs in the economy today compared
to when this recession began.
UNEMPLOYMENT INSURANCE
Current law provides federal unemployment insurance benefits for up
to 99 weeks, depending on the pervasiveness of unemployment in the
state. The so-called Middle Class Tax Relief and Job Creation Act of
2011 reduces this to a maximum of 59 weeks in hardest hit states. Such
a move fails to consider the weak jobs market and the harm reducing
unemployment benefits would inflict on families and the national and
local economies. Unemployment has been above 8 percent since April
2009, and the percent (43 percent in November 2011) of unemployed
workers who have been without a job for six months or more has remained
at record levels for 31 months.
This simply does not make sense. Reducing workers benefits does not
solve the long-term unemployment crisis. It is illogical to reduce
benefits at a time when long-term unemployment has broken records and
is setting new ones.
My Republican colleagues not only cut the amount of unemployment
benefits available by nearly fifty percent, this bill also includes
provisions that would reduce access to and stigmatize those who receive
unemployment insurance.
HIGHSCHOOL DIPLOMA OR GED REQUIRMENT FOR UNINSURANCE BENEFITS
This legislation denies unemployment insurance benefits to the most
vulnerable workers, those without a high school diploma or GEDs, if
they can't demonstrate they are enrolled in a program leading to a
credential. Workers with less than a high school diploma are unemployed
at significantly higher rates than workers with a bachelor's degree
(13.2 percent v. 4.4 percent).
I understand the rationale behind wanting to advance the skills of
our nation's work force. Believe me the hardships faced by those who
have not attained a GED or high school diploma are indisputable.
The labor force participation rate for persons without a high school
diploma is 20 percentages points lower than the labor force
participation rate for high school graduates.
Nationally, approximately 70 percent of all students graduate from
high school, but African-American and Hispanic students have a 55
percent or less chance of graduating from high school. If this measure
passes, African-Americans and Hispanics will be hit the hardest. They
have already been hit the hardest by this recession. And now we are
throwing them out of their life boat!
Only 52 percent of students in the 50 largest cities in the United
States graduate from high school. That rate is below the national high
school graduation rate of 70 percent, and also falls short of the 60
percent average for urban districts across the Nation.
Over his or her lifetime, a high school dropout earns, on average,
about $260,000 less than a high school graduate, and about $1 million
less than a college graduate.
However, I vehemently disagree with how to address increasing the
skills of our workforce. I do not believe we should blame those who for
a variety of reasons were not able to attain a high school diploma or
GED. We should not punish them by excluding them from benefits that
they have earned! We should be focused on programs to encourage and
retrain our workforce. Programs like those offered by organizations
like the National Urban League.
DRUG TESTING REQUIREMENT FOR UNEMPLOYMENT INSURANCE
To make matters worse, this message also allows states to require
drug testing as a condition of receiving unemployment insurance, a
condition that is highly controversial and possibly unconstitutional
when imposed on all applicants or recipients.
This is an additional stigma to the jobless. It implies that all they
are doing are sitting around the house doing drugs. It is part of a
systematic strategy of blaming the jobless for their predicament rather
than focusing on building the economy so that there are more jobs for
which they can apply. This is demeaning, demoralizing, and not how hard
working Americans who have lost their jobs should be treated.
Republicans have not cited any data suggesting that drug use
contributes to joblessness or that there is an elevated rate of drug
abuse among the unemployed.
We must act now to extend unemployment insurance and remove these
dastardly provisions that do nothing more than insult the integrity of
the jobless. We have 17 days to act. On Dec. 31, federal unemployment
insurance benefits are set to expire, which means nearly 2 million will
be cut off from unemployment insurance early next year if Congress
doesn't act within the next 19 days. We must heed the immediate needs
of their constituents who are worried about how they will meet their
basic needs if they can't find a job and lose their unemployment
insurance, and they should pass a clean bill that extends unemployment
insurance and the payroll tax cut, vital lifelines for families
struggling in this tough economy.
Under current law, states are not allowed to deny workers
unemployment insurance for reasons other than on-the-job misconduct,
fraud or earning too much money from part-time work.
Currently, 9.8 million people are receiving unemployment insurance in
some form. In addition, an estimated 4.4 million families are receiving
assistance through the Temporary Assistance for Needy Families program.
Millions more get other kinds of aid.
The drug testing requirement is burdensome and onerous. Under current
federal law an individual can not be required to pay for their own drug
test. No funds have been extended to pay for drug testing. States that
require drug tests will have to utilize administrative funds.
Testing costs around $25.00, there are currently 15 million people
going through the system, as unemployment is granted in weekly
increments this could result in millions of tests being taken a week at
an astronomical cost to the state.
States will be have to pay to process an additional 15 million urine
samples if drug testing for unemployment insurance is required.
Unemployment is at its highest in twenty-five years, the economy is
in a downward spiral, millions of people are just getting by and
government wants to further degrade them. There is no evidence to
support that this requirement is effective. There is no evidence to
support that the average person who applies for UI is an illegal drug
user. The inference that those who need this benefit must be screened
for drugs is offensive. Hardworking Americans are depending on a
benefit they worked to attain.
UNEMPLOYMENT INSURANCE HELPS THE ECONOMY
A study was conducted the research firm IMPAQ International and the
Urban Institute found Unemployment Insurance benefits:
Reduced the fall in GDP by 18.3%. This resulted in nominal GDP being
$175 billion higher in 2009 than it would have been without
unemployment insurance benefits.
In total, unemployment insurance kept GDP $315 billion higher from
the start of the recession through the second quarter of 2010;
kept an average of 1.6 million Americans on the job in each quarter:
at the low point of the recession, 1.8 million job losses were averted
by UI benefits, lowering the unemployment rate by approximately 1.2
percentage points; made an even more positive impact than in previous
recessions, thanks to the aggressive, bipartisan effort to expand
unemployment insurance benefits and increase eligibility during both
the Bush and Obama Administrations. ``There is reason to believe,''
said the study, ``that for this particular recession, the UI program
provided stronger stabilization of real output than in many past
recessions because extended benefits responded strongly.''
[[Page H8816]]
For every dollar spent on unemployment insurance, this study found an
increase in economic activity of two dollars.
According to the Economic Policy Institute that extending
unemployment benefits could prevent the loss of over 500,000 jobs.
If Congress fails to act before the end of the year, Americans who
have lost their jobs through no fault of their own will begin losing
their unemployment benefits in January. By mid-February, 2.1 million
will have their benefits cut off, and by the end of 2012 over 6 million
will lose their unemployment benefits.
Congress has never allowed emergency unemployment benefits to expire
when the unemployment rate is anywhere close to its current level of
9.1 percent.
Republicans seem to want to blame the unemployed for unemployment.
But the truth is there are over four unemployed workers for every
available job, and there are nearly 7 million fewer jobs in the economy
today compared to when the recession started in December 2007.
The legislation introduced today would continue the current Federal
unemployment programs through next year.
This extension not only will help the unemployed, but it also will
promote economic recovery. The Congressional Budget Office has declared
that unemployment benefits are ``both timely and cost-effective in
spurring economic activity and employment.'' The Economic Policy
Institute has estimated that preventing UI benefits from expiring could
prevent the loss of over 500,000 jobs.
In addition to continuing the Federal unemployment insurance programs
for one year, the bill would provide some immediate assistance to
States grappling with insolvency problems within their own UI programs.
The legislation would relieve insolvent States from interest payments
on Federal loans for one year and place a one-year moratorium on higher
Federal unemployment taxes that are imposed on employers in States with
outstanding loans.
According to preliminary estimates, these solvency provisions will
stop $5 billion in tax hikes on employers in nearly two dozen States,
as well as provide $1.5 billion in interest relief. The legislation
also provides a solvency bonus to those States not borrowing from the
Federal government.
We must extend unemployment compensation. This will send a message to
the nation's unemployed, that this Congress is dedicated to helping
those trying to help themselves.
Until the economy begins to create more jobs at a much faster pace,
and the various stimulus programs continue to accelerate project
activity in local communities, we cannot sit idly and ignore the
unemployed.
We cannot now, or ever, allow partisan politics to keep us from
addressing the needs of American families, the unemployed and seniors.
I encourage my colleagues on the other side of the aisle to drop these
harmful policy riders.
Mr. DAVIS of Illinois. Mr. Speaker, I submit for your consideration
opposition to drug testing and screening of unemployment insurance
recipients and applicants as proposed in H.R. 3630 Middle Class Tax
Relief and Job Creation Act of 2011. Never before has there been a
greater need to ease the pain of millions of Americans attempting to
make ends meet post economic/financial crisis and anemic jobs market.
Daily, we are reminded of the rippling effects of these man-made
disasters. Indeed, today's headline ``America's Youngest Outcasts''
shines the light on 1.6 million (one and 45 children) children homeless
in 2010, a 38% spike from 2007. Yesterday's headline connected to dots
and charted a direct correlation between the percentage of children
living in poverty and unemployment rate. What will tomorrow's headline
read with proposed unemployment insurance drug testing and screening?
Mandatory drug testing falls into the category of ill-conceived
barriers. Implementing laws requiring mandatory ``suspicionless'' drug
testing and screening for families is punitive and is not premised on
any reasonable rationale. Such random testing is not only reckless and
based on insidious stereotypes but mostly a costly and an inefficient
way of identifying recipients in need of drug and substance abuse
treatment. Additionally, imposing further sanctions on unemployment
insurance recipients and applicants who've depleted savings or assets
and at risk or in foreclosure will have harsh effects on children.
Our children's wellbeing is a measurement of our Nation's wellbeing.
Lest anyone get carried away with the notion that unemployment
insurance is a means of funding the purchase and usage of drugs, the
fact is unemployment insurance promotes opportunity for the next
generation.
The unrelenting partisan campaign to impose drug testing and
screening requirements on the unemployed will be devastating. Beyond
the toll on individuals, creating barriers to much needed unemployment
insurance will have huge fiscal and social consequences. Congress can
ill-afford to take a passive approach to helping millions of Americans
waiting along the sidelines uncertain about employment opportunities.
In these trying times we must hold fast to the words of James Madison,
The Father of the Constitution, charging us to ``promote the general
Welfare. . . . to ourselves and posterity.'' To do so otherwise is not
only a disservice to our Constitution, but also a disservice to all
Americans.
Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, I rise to speak in
opposition to H.R. 3630. I support the extension of the payroll tax
holiday and Emergency Unemployment Compensation, but the current
version forces us to make unfair, and unnecessary choices between those
individuals in this country who are most in need.
This legislation would make drastic cuts to health care programs. If
enacted, H.R. 3630 would cut over $21 billion from Affordable Care Act
programs, effectively increasing the number of uninsured Americans by
170,000. H.R. 3630 would also cut $8 billion from the Prevention and
Public Health Trust Fund, and over $21 billion from Medicare provider
rates. Mr. Speaker, as a registered nurse, I know that these cuts will
fall largely on hospitals, and effectively cut off access to healthcare
to the elderly, the sick, and the uninsured.
To suggest that this bill is an authentic attempt by the majority to
resolve a lapse of benefits that will occur if not extended is simply
disingenuous. The majority has attached controversial provisions that
have no chance of being considered by the Senate, and would be promptly
vetoed by the President.
It was my hope to offer an amendment to H.R. 3630 that would address
the increase we have seen in the number of children and others living
in poverty. Unfortunately, my Republican colleagues have barred any
amendments to this flawed piece of legislation.
Failure to extend these benefits will have immediate and drastic
effects on American middle class families. We should not risk tax
increases on these families, or cut off unemployment benefits for those
out of work. I cannot support this bill as it is not consistent with
American values.
Mr. CARNAHAN. Mr. Speaker, I rise in opposition to H.R. 3630, the
Middle Class Tax Relief and Job Creation Act.
I apologize that I was not able to vote on the question of
consideration of the resolution for the Rule on H.R. 3630. I was in an
important meeting with constituents at the time the vote was called and
was not able to make it to the capitol in time. Had I been available, I
would have voted ``no'' on this resolution so the House could work on a
serious proposal to extend the payroll tax holiday, unemployment
insurance, and Medicare payments.
H.R. 3630 makes cuts to essential programs, such as education,
healthcare, and energy and contains several poison pill policy riders
unrelated to the crucial issues of payroll tax and unemployment
insurance that make this bill a political stunt, not a legitimate
policy proposal. This bill as currently constructed is not about tax
cuts for the middle class or creating jobs, rather, it is about
political ideologies and severing bi-partisan agreements.
H.R. 3630 will severely cut unemployment insurance and federal
employee benefits at a time when our economy cannot afford the damage
these cuts will inflict. We need to focus on cutting taxes for the
middle class and closing loopholes so that big corporations and the
ultra-rich pay their fair share.
Furthermore, H.R. 3630 includes cuts to hospitals which would
devastate the patients and the communities these hospitals serve.
Specifically, the plan calls for significant cuts to funding for
hospital outpatient care and Medicare ``bad debt'' that helps hospitals
care for low-income seniors. At the same time, the measure fails to
include expiring provisions that help provide care in rural America. In
my district in Saint Louis, hospitals are an important source of jobs,
like many communities throughout America. I cannot support a bill that
would surely lead to cut backs in not only services for our seniors,
but also to cuts in jobs in my community.
I strongly oppose this legislation, and hope to work on a serious
compromise that provides real relief for the middle class and creates
jobs for Americans.
Mr. CONYERS. Mr. Speaker, I rise in opposition to H.R. 3630, an
unacceptable, tone deaf response to the legitimate needs of the
American people.
Unless Congress acts this month, millions of hardworking Americans--
nearly 2 million in January alone and over 6 million in 2012--will be
cut off from the emergency lifeline provided by unemployment insurance.
In my home State of Michigan, over 160,000 jobless Americans would be
left adrift, without any way to weather the worst job market since the
Great Depression.
Providing unemployment benefits during periods of economic crisis
should be a no brainer. These benefits help keep the economy afloat and
give job seekers the time necessary to find work in a tight job market.
As
[[Page H8817]]
such, previous Congresses have always come together to pass these
benefits on a bipartisan and bicameral basis. In fact, since the
unemployment insurance system was created, Congress has never cut back
on federally-funded extended benefits when unemployment was over 7.2
percent.
Yet, this is exactly what this unacceptable proposal from the
Republican Majority would do. H.R. 3630 would cut back the maximum
weeks of unemployment benefits from 99 weeks to 59 weeks for current
beneficiaries in Michigan. According to the National Employment Law
Project, the proposed cuts could mean a loss of up to $22 billion in
economic activity next year and approximately 140,000 jobs lost
nationally in 2012.
Additionally, the bill would add additional unnecessary restrictions
on those seeking benefits. Applicants would be required to have a high
school diploma, or use benefits to pay for the pursuit of a GED. It
would also further humiliate those seeking unemployment benefits by
requiring the unemployed to take drug tests in order to receive
benefits. Insinuating that people are remaining unemployed because
they're using illegal drugs is the height of ignorance and exemplifies
how out of touch the Majority is when it comes to understanding the
plight of Americans trying to survive the Great Recession. If anyone
deserves to be drug tested, it's the Wall Street executives whose
recklessness and irrational gambling problem caused the massive
unemployment problem in the first place.
H.R. 3630 isn't a serious effort to extend these provisions. Instead,
it's a package that's filled with riders and controversial cuts that
won't pass the Senate. The bill includes language that would:
Create indefinite delay to standards that protect people's health
from industrial boilers and incinerators, which would prevent up to
8,100 premature deaths, avoid 52,000 asthma attacks, and 5,100 heart
attacks each year;
Short-circuit the review of the controversial Keystone XL Tar Sands
Pipeline;
Make millions of seniors, some with incomes as low as $80,000 a year,
pay substantially more for their health care under Medicare--increasing
the health care costs of these seniors by $31 billion over 10 years;
Impose a pay freeze and benefit cuts that would take more than $53
billion out of the pockets of federal workers;
Cut $10.6 billion in Medicare ``bad debt'' payments, which help
hospitals cover out of pocket costs that low-income seniors are unable
to afford;
Cut $6.8 billion for hospital outpatient payments for emergency room
visits;
Cut $4.1 billion to Medicaid DSH payments for hospitals that treat
high numbers of uninsured patients; and
Relax restrictions on self-referral to physician owned hospitals,
which would result in increased utilization of services and higher
costs for the Medicare program.
The time is long past for partisan gamesmanship. In two short weeks,
in addition to unemployment benefits running out, the taxes of middle
class families in Michigan are scheduled to increase by $1,800 and cuts
in the reimbursements for doctors who participate in Medicare will kick
in.
It is clear that the Majority needs to take a break from its war on
the environment, seniors, and the uninsured and join with Democrats to
create jobs and grow our economy.
Mrs. DAVIS of California. Mr. Speaker, it's nice to hear the House
Majority finally talking about the importance of infrastructure jobs.
They claim this bill will create thousands of jobs from one project--
the Keystone Pipeline extension.
However, America has infrastructure needs in all corners of the
nation and this bill ignores those needs.
In San Diego County, where my district sits, there has been a 3-
percent loss in construction jobs dropping it to 226th out of 337 metro
areas. This is according to a report just released by the Associated
General Contractors of America.
And San Diego was not alone. The report noted that 145 other metro
areas suffered losses in construction jobs.
The reason for this drop in jobs, you may ask? The contractors say it
is because Congress is lagging in passing infrastructure and
transportation bills.
Despite being touted as a jobs bill, H.R. 3630 fails to address other
critical infrastructure projects to rebuild our schools, roads, and
bridges.
Mr. Speaker, this House should be debating a real infrastructure bill
that will provide needed jobs and meet our infrastructure needs.
Mr. DINGELL. Mr. Speaker, today I rise with disappointment over the
legislative package put before us. As American families struggle to
heat their homes, find jobs in their communities, and save for
retirement or their children's education, my colleagues on the other
side of the aisle are using this package to provide assistance to these
families to insert controversial policy riders. Like all members of the
U.S. House of Representatives, I agree that we must pass a sensible
solution to fix the way providers are paid under Medicare, an
unemployment extension, and tax relief for middle-class families, but I
cannot in good conscience support H.R. 3630 as written.
Like my colleagues, I agree strongly that we must address the
Sustainable Growth Rate, ensuring that our medical providers are paid
sufficiently for the coverage they provide under Medicare. However,
H.R. 3630 will address this problem for only the next two years,
leaving us to once again deal with a massive payment cut--37 percent--
in 2014. I believe strongly that we must come together and find a way
to permanently address the way we pay our doctors rather than kicking
the can down the road time after time. Further, I cannot stomach though
the drastic cuts to our healthcare programs. H.R. 3630 will pay for
these extenders by increasing Medicare premiums for some beneficiaries
and increasing the number of beneficiaries required to pay increased
premiums. It also cuts over $21 billion from Affordable Care Act
programs, endangering the implementation of health reform, increasing
the number of uninsured by 170,000 people, and breaking our promise to
American families, seniors and children that they will have access to
affordable health coverage.
In another act of blatant cynicism, my Republican colleagues seem to
be blaming the recession on the unemployed by slashing their benefits.
America's working families didn't cause our country's economic
troubles, yet the Republicans seem bent on making them pay all the
same. We're not out of this recession, and my friends on the other side
of the aisle want us to swallow an unheard-of 40-week reduction in
benefits for people struggling to make ends meet? As if that weren't
enough, Republicans seek to ensure that state agencies can engage in
all manner of bureaucratic rascality to deny the truly needy the
benefits they must have to keep the heat on and put food on the table.
This GOP strategy to keep America down so they can win elections next
year sickens me. The people in Michigan are hurting badly and need more
help, not less. The Republicans' solution to the economic woes of
working men and women would do Ebenezer Scrooge proud.
The final nail in this legislative coffin is the decision by the
Majority to roll back efforts to protect our environment. I believe it
is important that the Clean Air Act's health-based and air quality
standards be protected. The federal government has a system already in
place to keep our air clean and maintain the health of our citizens and
rather than dismantle this system, we must bolster it. I agree any
solution to air pollution issues must represent an equitable balance
among all affected industries and parties. The existing Clean Air Act
is such a solution and before we take any steps to alter it, as the so-
called ``EPA Regulatory Relief Act'' does, we need to know we have
developed something much better to put in its place. In hearings on
this and other bills to change the Clean Air Act, I've asked my
colleagues to come up with real solutions but instead their only idea
is to indefinitely postpone Clean Air requirements without any regard
to air quality or health effects. As we work to improve our fragile
economy, it is important that we support businesses so they can have
the tools to create and maintain jobs and put Americans back to work.
However, it is also important that we not cede ground in our efforts to
keep our air clean; the health of our citizens is too important.
Mr. Speaker, this bill is yet another in a long list of partisan
bills that my Republican colleagues have brought to the House floor
with the knowledge and understanding that it is dead on arrival in the
Senate. If Congress is to govern properly--by producing balanced plans
to reduce our deficit, investing in our Nation's infrastructure, and
creating jobs--then we must set aside the extreme ideological agenda
and come together for a common cause. The American people want and need
the federal government working to restore our economy, increase our
competitiveness in the global marketplace, and provide American
families with the opportunity to succeed. When this bill fails to move
in the Senate, I hope my Republican colleagues will realize that we
cannot spend the rest of the 112th Congress legislating from the
fringes of the political spectrum.
Mr. VAN HOLLEN. Mr. Speaker, I support extending the current payroll
tax cut for 160 million working Americans. I support protecting the
lifeline of unemployment insurance for those who remain out of work
through no fault of their own. And I support fixing the broken
Sustainable Growth Rate formula for physicians who participate in
Medicare--which is precisely why I oppose this bill.
Everyone in this Chamber knows it won't pass the Senate. The
President has said he won't sign it. In short, it has exactly zero
chance of getting enacted into law.
Now, several weeks ago, that scenario sounded like it was actually
the preferred outcome for a majority of my friends on the other side of
the aisle. The Republican leadership
[[Page H8818]]
stated that it opposed extending the payroll tax cut and unemployment
insurance. If the Republican leadership has changed its mind and is now
sincere about protecting the middle class, it's time to dispense with
the posturing, throw out the poison pills, stop scapegoating the
federal workforce and start seriously negotiating a package that can
receive bicameral, bipartisan support.
Mr. GEORGE MILLER of California. Mr. Speaker, 1.1 million
Californians stand to lose their unemployment benefits if Congress
fails to do its job.
And the bill before us today is the perfect example of Congress
failing to do its job--yet again.
Let's be clear what's going on here.
Republicans in Congress have opposed every effort by President Obama
and Democrats in Congress to create more American jobs and to rescue
our economy from the worst recession to since the Great Depression.
They even opposed extending the payroll tax cut that the President
signed into law last year that expires at the end of this year. That
tax cut is worth $1,000 to the average American. If Congress does not
extend the payroll tax cut, Congress will be increasing taxes on middle
class workers by $1,000.
Republicans in Congress have also opposed extending unemployment
insurance for the millions of workers who have not been able to find
work for no fault of their own.
First, they block efforts to create jobs. Then they oppose extending
to them unemployment insurance.
Unbelievable.
Now, they are feeling enormous public pressure to extend the payroll
tax cut and unemployment insurance benefits. Democrats would pay for
the cost of the payroll tax cut for middle class workers by slightly
increasing taxes on people who earn more than $1 million per year.
Republicans refuse to increase taxes by any amount on people who earn
more than $1 million a year.
Instead, they propose paying for the payroll tax cut by cutting
unemployment insurance benefits.
Unbelievable.
Their bill cuts 40 weeks of unemployment insurance benefits from
people in my state of California, and in 20 other states as well.
We wouldn't need long-term unemployment insurance if Republicans were
serious about solving America's economic problems, but they are not
serious about solving problems. In fact, they refuse.
No new jobs under their watch.
No new taxes on people who earn more than $1 million per year under
their watch.
But, it's ok to cut unemployment benefits that help create jobs and
keep food on middle class families' tables.
Now, to add to the indignity of it all, Republicans want to drug test
those who lost their jobs through no fault of their own.
Have the Republicans in control of Congress forgotten how we got into
this recession in the first place?
It was Wall Street that recklessly drove our nation's economy into
the ditch. And millions lost their jobs because of it.
And the crisis persists in part because the majority refuses to do
anything about it.
You'd think that the unemployed caused the job crisis.
The unemployed didn't sell toxic securities. They didn't sell
trillions of dollars of phony credit default swaps. They didn't blow up
the global economy.
No, that was Wall Street aided by lax oversight from Washington.
If the Republicans want to drug test people who get benefits from the
federal government, I suggest they look at Wall Street bank executives
who drove our economy into the ditch in the first place.
Congress should not demonize the unemployed who are desperate to get
back to work.
Unbelievable.
Mr. Speaker, Congress has a job to do. It is our responsibility to
work together to help put Americans back to work, to ensure our tax
policy is fair and balanced, and to make sure that Americans have
unemployment insurance benefits to help carry them and their families
through while they are looking for work.
This bill would cut unemployment benefits by 40 weeks for the
unemployed in California and 20 other states, and then it would require
drug tests for those who do get benefits. This bill should be rejected.
Mr. STARK. Mr. Speaker, I rise in strong opposition to H.R. 3630,
which would be better entitled ``the House Republicans' ultimate year-
end wish list.''
This Republican bill is an affront to senior citizens, middle class
workers, and low-income families--at a time when Americans are enduring
the toughest economy since the Great Depression.
As this bill details, Republicans would have seniors permanently pay
increased Medicare premiums for just one year of a payroll tax cut for
working Americans and a one-year gutted extension of unemployment
insurance.
This bill is wrongheaded, it's heartless, and it's bad for our
fragile economic recovery.
Republicans want one in four Medicare beneficiaries to start paying
significantly higher Medicare premiums. If their proposal were fully in
effect today it would hit people with $40,000 in annual income--those
aren't the rich.
They ignore the reality that wealthier seniors already pay more for
Medicare benefits today--and they've also paid more in Medicare taxes
during their working years. Republicans should be honest about their
goal here. This isn't to make the rich pay more, it is designed to
undermine Medicare's guaranteed benefits for ALL of America's senior
citizens and people with disabilities and get the government out of the
business of guaranteeing health benefits.
Republicans have also tucked in a special interest giveaway that
costs $300 million. They would undo parts of the health reform law in
order to give physician-owned hospitals more room to grow and to line
their pockets. We already know these facilities have caused patient
deaths and run up Medicare costs with unnecessary use of tests and
procedures. This Republican handout is bad for Americans' health, but
it's great for these special interest friends of the Republicans.
The Medicare provisions and giveaways are enough to oppose this
legislation. Unfortunately, this bill is also a vehicle to attack
working families and environmental protections.
This bill would eliminate 40 weeks of unemployment insurance benefits
for workers in my state of California and many other states. Not only
do House Republicans want to pull the rug out from unemployed people
searching for work, they also want them to submit to the indignity of
having to take a drug test to qualify for benefits. Not only are you
out of a job, you are also a presumed drug user in the eyes of
Republicans.
America may want to drug test House leaders for including terrible
anti-environmental policy riders that are entirely un-related to either
tax cuts, unemployment insurance, or Medicare. In order to sweeten the
pot for the more radical members of the Speaker's caucus, this
legislation would block the EPA from reducing mercury pollution. It
would also usurp Presidential authority and approve the Keystone tar
sands pipeline without proper review.
We need to get down to the business of extending unemployment
insurance, protecting seniors and preserving the middle class. This
dangerous bill, once again, shows Republican's willingness to hang the
middle class and senior citziens out to dry to further their special
interest agenda.
Mr. WOLF. Mr. Speaker, while I support comprehensive tax reform, I do
not support the flawed legislation presently before us. I have
repeatedly said it is long past time to close tax loopholes, end the
practice of tax earmarks and lower tax rates on American families and
employers. I support a long-term ``doc fix'' to ensure that doctors
continue to accept Medicare patients. I support the Keystone XL
pipeline and efforts to reform unemployment insurance, all of which are
included in this bill. However, these are not the central issues of the
legislation we are considering today.
The issue today, as defined by both political parties and the
president, is whether or not a temporary--and costly--one-year payroll
tax ``holiday'' should expire at the end of the month. The real issue
is whether it is responsible for Washington to further shortchange the
Social Security Trust Fund at a time when it is already on an
unsustainable path.
This ``holiday'' is a raid on Social Security, which is already going
broke. Social Security is unique because it is paid for through a
dedicated tax on workers who will receive future benefits. The money
paid today funds benefits for existing retirees, and ensures future
benefits. Because you pay now, a future retiree will pay your benefits.
That is why, until last year, this revenue stream was considered
sacrosanct by both political parties.
Raw facts demonstrate that Social Security is on an unsustainable
path. Today's medical breakthroughs were simply not envisioned when the
system was created in 1935. For example, in 1950, the average American
lived for 68 years and 16 workers supported one retiree. Today, the
average life expectancy is 78 and three workers support one retiree.
Three and a half million people received Social Security in 1950; 55
million receive it today. Every day since January 1, 2011, over 10,000
baby-boomers turned 65. This trend will continue every day for the next
19 years. Do these numbers sound sustainable to anyone?
I recently asked a group of McLean High School students and a group
of young James Madison University alumni whether they believed that
they would receive Social Security benefits when they retire. Not one
hand was raised. Not a single one.
The Social Security Actuary has said that by 2037 the trust fund will
be unable to pay full benefits. When this time is reached, everyone
[[Page H8819]]
will receive an across the board cut of 22 percent, regardless of how
much money they paid into the system.
Let me repeat. Under our current path, within 15 years all Social
Security benefits will be cut by 22 percent.
Granting another tax holiday is unwise. It puts the existing benefits
of those 55 million Americans who currently receive Social Security at
risk to continue a failed ``stimulus'' policy.
Last December, when unemployment stood at 9.4 percent, the president
touted the ``holiday'' as a one-year measure that would help cure our
economic ills and would spur economic growth.
Yet here we are again. After spending most of the year above 9
percent, unemployment has dropped to 8.6 percent. But that belies the
primary driver of this change: 315,000 Americans simply stopped looking
for work. Nobody can say with a straight face that the payroll tax
``holiday'' has had a meaningful impact on the unemployment rate, nor
would it if extended for another year.
Does it make sense that everyone, regardless of income, will get
money from this ``stimulus?'' Does anyone think that Warren Buffet
changed his buying habits as a result of this temporary suspension? Or
General Electric's CEO, Jeffery Immelt, who is also head of President
Obama's Council on Jobs and Competitiveness?
I opposed the legislation creating the Social Security tax
``holiday'' last year for similar reasons. I just cannot support an
extension that further compromises the stability of the Social Security
Trust Fund.
Real structural reforms are needed to stabilize Social Security. Past
experience shows that Congress will spend the next 10 years figuring
out how to spend the money designated as offsets for today's bill on
other projects. It won't be used to pay for the bill. Knowing this, I
cannot in good faith support a measure to raid the trust fund without
comprehensive reform to the system.
The expiring payroll tax ``holiday'' is costing Americans $112
billion. To pay for it, we are borrowing money from nations such as
China, which is spying on us, where human rights are an afterthought,
and Catholic bishops, Protestant ministers and Tibetan monks are jailed
for practicing their faith, and oil-exporting countries such as Saudi
Arabia, which funded the radical madrasahs on the Afghan-Pakistan
border resulting in the rise of the Taliban and al Qaeda.
Our national debt is over $15 trillion. It is projected to reach $17
trillion next year and $21 trillion in 2021. We have annual deficits of
approximately $1 trillion. We have unfunded obligations and liabilities
of $62 trillion.
We all know what needs to be done and that is why I have supported
every serious effort to resolve this crisis, including the Bowles-
Simpson recommendations, the Ryan Budget, the ``Gang of Six,'' the
``Cut, Cap and Balance'' plan and the Budget Control Act.
I also was among the bipartisan group of 103 members of Congress who
urged the supercommittee to ``go big'' and identify $4 trillion in
savings. I voted for the Balanced Budget Amendment to the Constitution,
which would have established critical institutional reforms to ensure
that the Federal Government lives within its means. In addition, since
2006, I have introduced my own bipartisan legislation, the SAFE
Commission, multiple times.
While none of these solutions were perfect, they all took the
necessary steps to rebuild and protect our economy. In order to solve
this problem, everything must be on the table for consideration--all
entitlement spending, all domestic discretionary spending, including
defense spending, and tax reform, particularly changes to make the tax
code more simple and fair and to end the practice of tax earmarks that
cost hundreds of billions of dollars.
Because the extension of the payroll tax ``holiday'' is not part of a
comprehensive tax and entitlement reform package, it ignores the bigger
picture: everything must be on the table to enact sweeping reforms to
right our fiscal ship of state.
Does anyone really think that this will only be a one-year extension?
I suspect that at this time next year Congress will once again be
considering another costly extension. And what will happen the year
after that?
If past precedent holds, the 10-year price tag of this ``holiday''
will come to about $1.2 trillion. The supercommittee was unable to
agree to any deficit reduction plan, let alone their $1.2 trillion
goal. The consequences of this failure will be severe.
Air Force Chief of Staff General Norton Schwartz said that the coming
across-the-board cuts to our defense capabilities, as a result of the
supercommittee's failure, are akin to having major surgery performed by
a plumber. The Commonwealth of Virginia will feel particular pain from
these defense cuts. Bloomberg Government reported that Virginia is the
number one recipient of defense spending.
How will the Congress pay for this extended tax cut and still make
the needed cuts to our deficit and debt?
I feel as if Washington exists in a parallel universe. After months
of passionately debating the importance of reducing the debt, the
president and Congress are now using all the ``easy'' and ``quick''
offsets to extend a one-year temporary tax break that's barely, if at
all, improved the economic indicators.
Senator Tom Coburn recently said that ``the question the American
people ought to ask is where is the backbone in Washington to actually
pay for these extensions in the year the money's spent.'' I think it's
clear that the backbone doesn't exist.
Leadership starts at the top, and the president has repeatedly failed
to address our Nation's deficit. Earlier this month, the president drew
a line in the sand and said Congress shouldn't go home until the
payroll holiday is extended.
He has not drawn that line for the doc fix, which is necessary to
ensure that doctors will accept Medicare patients.
He has not done that for unemployment benefits.
He has done the opposite on the Keystone XL pipeline, postponing the
decision for yet another year, until after the next election.
Above all, he has not drawn a line in the sand for a comprehensive
deficit reduction plan. In fact, he has spent most of the year running
from serious deficit reduction efforts, including the one proposed by
his own fiscal commission. He has not proposed significant changes to
entitlement programs or embraced comprehensive tax reform.
We need look no further than the riots in Europe to see the
destructive impact that results from the crushing reality of a
government unable to deliver promised entitlements to its citizens.
There have been riots in Belgium, Spain, France, Ireland, England,
Italy, Latvia, and Greece. And yet we are considering a proposal that
moves us closer to Europe's instability.
Instead of using these bipartisan offsets to pay down our deficit,
we're increasing spending and using these offsets to maintain our
unacceptable levels of debt. The American people should be deeply
troubled that Congress and the president cannot find any bipartisan
agreement to save our country, but they can still come together to
increase spending and shortchange Social Security. There is something
fundamentally wrong with this picture.
Compounding my belief that the tax ``holiday'' will not be fully paid
for, I do not agree with some of the offset measures that have been
included, absent comprehensive reform.
Some would have the one-year tax ``holiday'' financed through a long-
term, structural attack on federal employees. Federal employees work
side-by-side on the front lines with our military personnel fighting
the Global War on Terror in locations such as Iraq and Afghanistan.
They put their lives at risk daily to defend our national interests.
The first American killed in Afghanistan, Mike Spann, was a CIA agent
and a constituent from my congressional district. CIA, FBI, DEA agents,
and State Department employees are serving side-by-side with our
military in the fight against the Taliban. Border Patrol and
Immigration and Customs Enforcement agents are working to stop the flow
of illegal immigrants and drugs across our borders.
The medical researchers at NIH working to develop cures for cancer,
diabetes, Alzheimer's and autism are all dedicated federal employees.
Dr. Francis Collins, the physician who mapped the human genome and
serves as director of the National Institutes of Health, is a federal
employee.
The National Weather Service meteorologist, who tracks hurricanes,
and the FDA inspector working to stop a salmonella outbreak, are
federal employees. The ATF agents who were in Blacksburg immediately
following last week's shooting are federal employees. These are but a
few examples of the vital jobs performed by federal employees.
We can't balance the budget through discretionary cuts alone. We have
to address the spiraling costs of entitlements, because, to paraphrase
the infamous bank robber Willie Sutton, that's where the money is. If
you care about cancer research, if you care about national defense, if
you care about road improvements or if you care about the poor, you
should care about entitlement reform. We must reform these programs to
preserve them for future generations. Otherwise, they will be made
unrecognizable through forced, significant cuts or eliminated
altogether.
Last December, the leaders of the president's bipartisan fiscal
commission, Erskine Bowles and former Senator Alan Simpson, wrote to
the president and leaders of Congress, ``Our growing national debt
poses a dire threat to this nation's future. Ever since the economic
downturn, Americans have had to make tough choices about how to make
ends meet. Now it's time for leaders in Washington to do the same.''
Mr. Speaker, I cannot support this measure and will vote ``no'' as I
did last December.
[[Page H8820]]
Let's put these offsets towards real deficit reduction and move forward
with serious efforts to deal with our unsustainable spending.
Ms. FUDGE. Mr. Speaker, I rise today to strongly oppose this rule and
the underlying bill. H.R. 3630 allows States to fund reemployment
programs with money that would otherwise be in the pockets of the
unemployed.
My amendment mandates transparency and accountability. It requires
States to make public the amount of money taken from the checks of
unemployed Americans.
This is not the time to divert funds away from those most in need in
order to fund reemployment programs. Let me be clear, it's not that I
am against reemployment programs.
But those who are unemployed need every dollar. And at a time when
our economy is starting to recover, we need the unemployed to remain
consumers. Every dollar of unemployment payments generates up to one
dollar and ninety cents in economic growth.
I mentioned Karen from Cleveland on the House floor last week. Karen
was laid off in March. Her unemployment check is allowing her to pay
her mortgage and buy prescriptions she needs to maintain her health.
She has completely used up her savings.
If Karen's check were to decrease, or disappear, the consequences
would be devastating.
Karen, like millions of Americans, depends on unemployment insurance
to stay in their homes, and buy needed medicine. It will create an
endless cycle of medical bills and homeless shelters.
For all the unemployed mothers who provide for their children. For
unemployed seniors who are not quite old enough for Social Security.
For all the unemployed Americans, whose funds are low and debts are
high, trying to keep their lives together as they navigate the most
difficult time period since the Great Depression.
Let's cut the partisan posturing and extend unemployment insurance
without unnecessary riders.
The SPEAKER pro tempore. All time for debate on the bill has expired.
Pursuant to House Resolution 491, the previous question is ordered on
the bill, as amended.
The question is on the engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
Motion to Recommit
Mr. VAN HOLLEN. Mr. Speaker, I have a motion to recommit at the desk.
The SPEAKER pro tempore. Is the gentleman opposed to the bill?
Mr. VAN HOLLEN. Yes, I am.
Mr. CAMP. Mr. Speaker, I reserve a point of order.
The SPEAKER pro tempore. A point of order is reserved.
The Clerk will report the motion to recommit.
The Clerk read as follows:
Mr. Van Hollen moves to recommit the bill, H.R. 3630, to
the Committee on Ways and Means, with instructions to report
the same back to the House forthwith, with the following
amendment:
Add at the end of the bill the following:
TITLE VII--ADDITIONAL PROVISIONS
SEC. 701. EXTENSION AND EXPANSION OF PAYROLL TAX CUT FOR
MIDDLE CLASS FAMILIES.
(a) Extension.--For provision extending the payroll tax cut
for middle class families, see section 2001.
(b) Increased Relief.--
(1) In general.--Subsection (a) of section 601 of the Tax
Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010 (26 U.S.C. 1401 note) is amended--
(A) by inserting ``(9.3 percent for calendar year 2012)''
after ``10.40 percent'' in paragraph (1), and
(B) in paragraph (2)--
(i) by striking ``(including'' and inserting ``(3.1 percent
in the case of calendar year 2012), including'' after ``4.2
percent'', and
(ii) by striking ``Code)'' and inserting ``Code''.
(2) Coordination with individual deduction for employment
taxes.--Subparagraph (A) of section 601(b)(2) of such Act is
amended by inserting ``(66.67 percent for taxable years which
begin in 2012)'' after ``59.6 percent''.
(c) Technical Amendments.--Paragraph (2) of section 601(b)
of the Tax Relief, Unemployment Insurance Reauthorization,
and Job Creation Act of 2010 (26 U.S.C. 1401 note) is
amended--
(1) by inserting ``of such Code'' after ``164(f)'',
(2) by inserting ``of such Code'' after ``1401(a)'' in
subparagraph (A), and
(3) by inserting ``of such Code'' after ``1401(b)'' in
subparagraph (B).
SEC. 702. EXTENDING THE ALLOWANCE FOR BONUS DEPRECIATION FOR
CERTAIN BUSINESS ASSETS.
For provision extending the allowance for bonus
depreciation for certain business assets, see section 1201.
SEC. 703. PREVENTING A REDUCTION IN PAYMENTS TO DOCTORS.
For provision preventing a reduction in payments to
doctors, see section 2201.
SEC. 704. ENSURING THAT MILLIONAIRES PAY THEIR FAIR SHARE.
(a) In General.--Subchapter A of chapter 1 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new part:
``PART VIII--SURTAX ON MILLIONAIRES
``Sec. 59B. Surtax on millionaires.
``SEC. 59B. SURTAX ON MILLIONAIRES.
``(a) General Rule.--In the case of a taxpayer other than a
corporation for any taxable year beginning after 2011 and
before 2021, there is hereby imposed (in addition to any
other tax imposed by this subtitle) a tax equal to 3.6
percent of so much of the modified adjusted gross income of
the taxpayer for such taxable year as exceeds the threshold
amount.
``(b) Threshold Amount.--For purposes of this section--
``(1) In general.--The threshold amount is $1,000,000.
``(2) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning after 2012, the $1,000,000 amount under paragraph
(1) shall be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting `calendar year 2011'
for `calendar year 1992' in subparagraph (B) thereof.
``(B) Rounding.--If any amount as adjusted under paragraph
(1) is not a multiple of $10,000, such amount shall be
rounded to the next highest multiple of $10,000.
``(3) Married filing separately.--In the case of a married
individual filing separately for any taxable year, the
threshold amount shall be one-half of the amount otherwise in
effect under this subsection for the taxable year.
``(c) Modified Adjusted Gross Income.--For purposes of this
section, the term `modified adjusted gross income' means
adjusted gross income reduced by any deduction (not taken
into account in determining adjusted gross income) allowed
for investment interest (as defined in section 163(d)). In
the case of an estate or trust, adjusted gross income shall
be determined as provided in section 67(e).
``(d) Special Rules.--
``(1) Nonresident alien.--In the case of a nonresident
alien individual, only amounts taken into account in
connection with the tax imposed under section 871(b) shall be
taken into account under this section.
``(2) Citizens and residents living abroad.--The dollar
amount in effect under subsection (b) shall be decreased by
the excess of--
``(A) the amounts excluded from the taxpayer's gross income
under section 911, over
``(B) the amounts of any deductions or exclusions
disallowed under section 911(d)(6) with respect to the
amounts described in subparagraph (A).
``(3) Charitable trusts.--Subsection (a) shall not apply to
a trust all the unexpired interests in which are devoted to
one or more of the purposes described in section
170(c)(2)(B).
``(4) Not treated as tax imposed by this chapter for
certain purposes.--The tax imposed under this section shall
not be treated as tax imposed by this chapter for purposes of
determining the amount of any credit under this chapter or
for purposes of section 55.''.
(b) Clerical Amendment.--The table of parts for subchapter
A of chapter 1 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new item:
``part viii. surtax on millionaires.''.
(c) Section 15 Not To Apply.--The amendment made by
subsection (a) shall not be treated as a change in a rate of
tax for purposes of section 15 of the Internal Revenue Code
of 1986.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2011.
SEC. 705. PREVENTING INSIDER TRADING BY MEMBERS OF CONGRESS.
(a) Nonpublic Information Relating to Congress and Other
Federal Employees.--
(1) Commodities transactions.--Section 4c of the Commodity
Exchange Act (7 U.S.C. 6c) is amended by adding at the end
the following:
``(h) Nonpublic Information Relating to Congress.--Not
later than 270 days after the date of enactment of this
subsection, the Commission shall by rule prohibit any person
from buying or selling any commodity for future delivery or
swap while such person is in possession of material nonpublic
information, as defined by the Commission, relating to any
pending or prospective legislative action relating to such
commodity if--
``(1) such information was obtained by reason of such
person being a Member or employee of Congress; or
``(2) such information was obtained from a Member or
employee of Congress, and such person knows that the
information was so obtained.
``(i) Nonpublic Information Relating to Other Federal
Employees.--
``(1) Rulemaking.--Not later than 270 days after the date
of enactment of this subsection, the Commission shall by rule
prohibit any person from buying or selling any commodity for
future delivery or swap while
[[Page H8821]]
such person is in possession of material nonpublic
information derived from Federal employment and relating to
such commodity if--
``(A) such information was obtained by reason of such
person being an employee of an agency, as such term is
defined in section 551(1) of title 5, United States Code; or
``(B) such information was obtained from such an employee,
and such person knows that the information was so obtained.
``(2) Material nonpublic information.--For purposes of this
subsection, the term `material nonpublic information' means
any information that an employee of an agency (as such term
is defined in section 551(1) of title 5, United States Code)
gains by reason of Federal employment and that such employee
knows or should know has not been made available to the
general public, including information that--
``(A) is routinely exempt from disclosure under section 552
of title 5, United States Code, or otherwise protected from
disclosure by statute, Executive order, or regulation;
``(B) is designated as confidential by an agency; or
``(C) has not actually been disseminated to the general
public and is not authorized to be made available to the
public on request.''.
(2) Securities transactions.--Section 10 of the Securities
Exchange Act of 1934 is amended by adding at the end the
following:
``(d) Nonpublic Information Relating to Congress.--Not
later than 270 days after the date of enactment of this
subsection, the Commission shall by rule prohibit any person
from buying or selling the securities or security-based swaps
of any issuer while such person is in possession of material
nonpublic information, as defined by the Commission, relating
to any pending or prospective legislative action relating to
such issuer if--
``(1) such information was obtained by reason of such
person being a Member or employee of Congress; or
``(2) such information was obtained from a Member or
employee of Congress, and such person knows that the
information was so obtained.
``(e) Nonpublic Information Relating to Other Federal
Employees.--
``(1) Rulemaking.--Not later than 270 days after the date
of enactment of this subsection, the Commission shall by rule
prohibit any person from buying or selling the securities or
security-based swaps of any issuer while such person is in
possession of material nonpublic information derived from
Federal employment and relating to such issuer if--
``(A) such information was obtained by reason of such
person being an employee of an agency, as such term is
defined in section 551(1) of title 5, United States Code; or
``(B) such information was obtained from such an employee,
and such person knows that the information was so obtained.
``(2) Material nonpublic information.--For purposes of this
subsection, the term `material nonpublic information' means
any information that an employee of an agency (as such term
is defined in section 551(1) of title 5, United States Code)
gains by reason of Federal employment and that such employee
knows or should know has not been made available to the
general public, including information that--
``(A) is routinely exempt from disclosure under section 552
of title 5, United States Code, or otherwise protected from
disclosure by statute, Executive order, or regulation;
``(B) is designated as confidential by an agency; or
``(C) has not actually been disseminated to the general
public and is not authorized to be made available to the
public on request.''.
(b) Committee Hearings on Implementation.--
(1) In general.--The Committee on Agriculture of the House
of Representatives shall hold a hearing on the implementation
by the Commodity Futures Trading Commission of subsections
(h) and (i) of section 4c of the Commodity Exchange Act (as
added by subsection (a)(2) of this section), and the
Committee on Financial Services of the House of
Representatives shall hold a hearing on the implementation by
the Securities Exchange Commission of subsections (d) and (e)
of section 10 of the Securities Exchange Act of 1934 (as
added by subsection (a)(1) of this section).
(2) Exercise of rulemaking authority.--Paragraph (1) is
enacted--
(A) as an exercise of the rulemaking power of the House of
Representatives and, as such, shall be considered as part of
the rules of the House, and such rules shall supersede any
other rule of the House only to the extent that rule is
inconsistent therewith; and
(B) with full recognition of the constitutional right of
the House to change such rules (so far as relating to the
procedure in the House) at any time, in the same manner, and
to the same extent as in the case of any other rule of the
House.
(c) Timely Reporting of Financial Transactions.--
(1) Reporting requirement.--Section 103 of the Ethics in
Government Act of 1978 is amended by adding at the end the
following subsection:
``(l) Within 90 days after the purchase, sale, or exchange
of any stocks, bonds, commodities futures, or other forms of
securities that are otherwise required to be reported under
this Act and the transaction of which involves at least $1000
by any Member of Congress or officer or employee of the
legislative branch required to so file, that Member, officer,
or employee shall file a report of that transaction with the
Clerk of the House of Representatives in the case of a
Representative in Congress, a Delegate to Congress, or the
Resident Commissioner from Puerto Rico, or with the Secretary
of the Senate in the case of a Senator.''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to transactions occurring on or after the date
that is 90 days after the date of the enactment of this Act.
(d) Disclosure of Political Intelligence Activities Under
Lobbying Disclosure Act.--
(1) Definitions.--Section 3 of the Lobbying Disclosure Act
of 1995 (2 U.S.C. 1602) is amended--
(A) in paragraph (2)--
(i) by inserting after ``lobbying activities'' each place
that term appears the following: ``or political intelligence
activities''; and
(ii) by inserting after ``lobbyists'' the following: ``or
political intelligence consultants''; and
(B) by adding at the end the following new paragraphs:
``(17) Political intelligence activities.--The term
`political intelligence activities' means political
intelligence contacts and efforts in support of such
contacts, including preparation and planning activities,
research, and other background work that is intended, at the
time it is performed, for use in contacts, and coordination
with such contacts and efforts of others.
``(18) Political intelligence contact.--
``(A) Definition.--The term `political intelligence
contact' means any oral or written communication (including
an electronic communication) to or from a covered executive
branch official or a covered legislative branch official, the
information derived from which is intended for use in
analyzing securities or commodities markets, or in informing
investment decisions, and which is made on behalf of a client
with regard to--
``(i) the formulation, modification, or adoption of Federal
legislation (including legislative proposals);
``(ii) the formulation, modification, or adoption of a
Federal rule, regulation, Executive order, or any other
program, policy, or position of the United States Government;
or
``(iii) the administration or execution of a Federal
program or policy (including the negotiation, award, or
administration of a Federal contract, grant, loan, permit, or
license).
``(B) Exception.--The term `political intelligence contact'
does not include a communication that is made by or to a
representative of the media if the purpose of the
communication is gathering and disseminating news and
information to the public.
``(19) Political intelligence firm.--The term `political
intelligence firm' means a person or entity that has 1 or
more employees who are political intelligence consultants to
a client other than that person or entity.
``(20) Political intelligence consultant.--The term
`political intelligence consultant' means any individual who
is employed or retained by a client for financial or other
compensation for services that include one or more political
intelligence contacts.''.
(2) Registration requirement.--Section 4 of the Lobbying
Disclosure Act of 1995 (2 U.S.C. 1603) is amended--
(A) in subsection (a)--
(i) in paragraph (1)--
(I) by inserting after ``whichever is earlier,'' the
following: ``or a political intelligence consultant first
makes a political intelligence contact,''; and
(II) by inserting after ``such lobbyist'' each place that
term appears the following: ``or consultant'';
(ii) in paragraph (2), by inserting after ``lobbyists''
each place that term appears the following: ``or political
intelligence consultants''; and
(iii) in paragraph (3)(A)--
(I) by inserting after ``lobbying activities'' each place
that term appears the following: ``and political intelligence
activities''; and
(II) in clause (i), by inserting after ``lobbying firm''
the following: ``or political intelligence firm'';
(B) in subsection (b)--
(i) in paragraph (3), by inserting after ``lobbying
activities'' each place that term appears the following: ``or
political intelligence activities'';
(ii) in paragraph (4)--
(I) in the matter preceding subparagraph (A), by inserting
after ``lobbying activities'' the following: ``or political
intelligence activities''; and
(II) in subparagraph (C), by inserting after ``lobbying
activity'' the following: ``or political intelligence
activity'';
(iii) in paragraph (5), by inserting after ``lobbying
activities'' each place that term appears the following: ``or
political intelligence activities'';
(iv) in paragraph (6), by inserting after ``lobbyist'' each
place that term appears the following: ``or political
intelligence consultant''; and
(v) in the matter following paragraph (6), by inserting
``or political intelligence activities'' after ``such
lobbying activities'';
(C) in subsection (c)--
(i) in paragraph (1), by inserting after ``lobbying
contacts'' the following: ``or political intelligence
contacts''; and
(ii) in paragraph (2)--
(I) by inserting after ``lobbying contact'' the following:
``or political intelligence contact''; and
[[Page H8822]]
(II) by inserting after ``lobbying contacts'' the
following: ``and political intelligence contacts''; and
(D) in subsection (d), by inserting after ``lobbying
activities'' each place that term appears the following: ``or
political intelligence activities''.
(3) Reports by registered political intelligence
consultants.--Section 5 of the Lobbying Disclosure Act of
1995 (2 U.S.C. 1604) is amended--
(A) in subsection (a), by inserting after ``lobbying
activities'' the following: ``and political intelligence
activities'';
(B) in subsection (b)--
(i) in paragraph (2)--
(I) in the matter preceding subparagraph (A), by inserting
after ``lobbying activities'' the following: ``or political
intelligence activities'';
(II) in subparagraph (A)--
(aa) by inserting after ``lobbyist'' the following: ``or
political intelligence consultant''; and
(bb) by inserting after ``lobbying activities'' the
following: ``or political intelligence activities'';
(III) in subparagraph (B), by inserting after ``lobbyists''
the following: ``and political intelligence consultants'';
and
(IV) in subparagraph (C), by inserting after ``lobbyists''
the following: ``or political intelligence consultants'';
(ii) in paragraph (3)--
(I) by inserting after ``lobbying firm'' the following:
``or political intelligence firm''; and
(II) by inserting after ``lobbying activities'' each place
that term appears the following: ``or political intelligence
activities''; and
(iii) in paragraph (4), by inserting after ``lobbying
activities'' each place that term appears the following: ``or
political intelligence activities''; and
(C) in subsection (d)(1), in the matter preceding
subparagraph (A), by inserting ``or a political intelligence
consultant'' after ``a lobbyist''.
(4) Disclosure and enforcement.--Section 6(a) of the
Lobbying Disclosure Act of 1995 (2 U.S.C. 1605) is amended--
(A) in paragraph (3)(A), by inserting after ``lobbying
firms'' the following: ``, political intelligence
consultants, political intelligence firms,'';
(B) in paragraph (7), by striking ``or lobbying firm'' and
inserting ``lobbying firm, political intelligence consultant,
or political intelligence firm''; and
(C) in paragraph (8), by striking ``or lobbying firm'' and
inserting ``lobbying firm, political intelligence consultant,
or political intelligence firm''.
(5) Rules of construction.--Section 8(b) of the Lobbying
Disclosure Act of 1995 (2 U.S.C. 1607(b)) is amended by
striking ``or lobbying contacts'' and inserting ``lobbying
contacts, political intelligence activities, or political
intelligence contacts''.
(6) Identification of clients and covered officials.--
Section 14 of the Lobbying Disclosure Act of 1995 (2 U.S.C.
1609) is amended--
(A) in subsection (a)--
(i) in the heading, by inserting ``or Political
Intelligence'' after ``Lobbying'';
(ii) by inserting ``or political intelligence contact''
after ``lobbying contact'' each place that term appears; and
(iii) in paragraph (2), by inserting ``or political
intelligence activity, as the case may be'' after ``lobbying
activity'';
(B) in subsection (b)--
(i) in the heading, by inserting ``or Political
Intelligence'' after ``Lobbying'';
(ii) by inserting ``or political intelligence contact''
after ``lobbying contact'' each place that term appears; and
(iii) in paragraph (2), by inserting ``or political
intelligence activity, as the case may be'' after ``lobbying
activity''; and
(C) in subsection (c), by inserting ``or political
intelligence contact'' after ``lobbying contact''.
(7) Annual audits and reports by comptroller general.--
Section 26 of the Lobbying Disclosure Act of 1995 (2 U.S.C.
1614) is amended--
(A) in subsection (a)--
(i) by inserting ``political intelligence firms, political
intelligence consultants,'' after ``lobbying firms''; and
(ii) by striking ``lobbying registrations'' and inserting
``registrations'';
(B) in subsection (b)(1)(A), by inserting ``political
intelligence firms, political intelligence consultants,''
after ``lobbying firms''; and
(C) in subsection (c), by inserting ``or political
intelligence consultant'' after ``a lobbyist''.
(e) Effective Date.--Subject to subsection (c)(2), this
section and the amendments made by this section shall take
effect at the end of the 90-day period beginning on the date
of the enactment of this Act.
SEC. 706. FREEZE ON MEMBER COLA AND PENSION REFORM.
For provision freezing Member COLA and effecting pension
reform, see section 5421(b)(1) and part 1 of subtitle E of
title V, respectively.
Mr. VAN HOLLEN (during the reading). Mr. Speaker, I ask unanimous
consent to suspend the reading of the bill.
Mr. CAMP. I object.
The SPEAKER pro tempore. Objection is heard.
The Clerk will continue to read.
The Clerk continued to read.
Mr. CAMP (during the reading). Mr. Speaker, I ask unanimous consent
to dispense with the reading.
The SPEAKER pro tempore. Is there objection?
Without objection, the remainder of the motion is considered read.
There was no objection.
The SPEAKER pro tempore. The gentleman from Michigan continues to
reserve a point of order.
The gentleman from Maryland is recognized for 5 minutes on his
motion.
Mr. VAN HOLLEN. Thank you very much, Mr. Speaker.
It was just a few weeks ago that our Republican colleagues in the
House and the Senate said they didn't want to do any payroll tax cut
for working Americans. They were opposed to any payroll tax cut for the
160 million working Americans, and at the same time they were arguing
vigorously in support of protecting tax breaks for the very wealthy in
this country. They had been very clear: They don't want to ask the very
wealthiest to simply go back to paying the same tax rates that they
were paying during the Clinton administration--a time when the economy
was booming and 20 million jobs were created. They don't want to do
that, but they were prepared to increase the payroll tax on 160 million
working Americans. Well, they realized that that didn't sound so good
to the American people, and so we are here today.
{time} 1810
And what the Republican proposal does is two things: It inserts into
their bill poison pills which the President has said he will not sign,
and they know he said that.
What will the result be? It will be the same result that our
Republican colleagues wanted 2 weeks ago, which is no payroll tax cut
for 160 million Americans.
But what they could not bring themselves to do, Mr. Speaker, was pay
for that payroll tax cut for 160 million by asking very wealthy people,
millionaires and billionaires, to share a little bit more in the
responsibility for reducing our deficit. They didn't want to do that,
and so their bill cuts other people.
For example, their bill would cut the pension of the folks who helped
track down Osama Bin Laden. Thank you very much for helping us track
down Osama Bin Laden. We're going to cut your pension. We're going to
cut your pension and that of other hardworking men and women who
protect this country every day in that way.
Who else are we going to ask to pay for it? Well, let's ask seniors
who earn $80,000 or so. Let's increase their premiums. We don't want to
ask folks over $1 million to pay a little bit more, share a little bit
more responsibility. Let's ask seniors at $80,000 a year.
And you know what? Let's change the current unemployment compensation
law from what it would be if we extended current law. Let's change it
in a way where folks who are out of work, through no fault of their
own, they're looking every day for a job, let's give them less than
what they would get if we extended the current unemployment
compensation.
So those are all the gymnastics that bring us here today, simply
because the majority doesn't want to ask the folks at the very top to
pay a little more. What our motion to recommit does is say, we need to
have shared responsibility in this country. Let's work together to
bring down the deficit.
We all know from independent economists that increasing the payroll
tax cut will raise another 300,000 jobs; so, in fact, our motion to
recommit increases that. And it also does other things to hold Members
of this body accountable.
So the choice is simple. Do we want to ask folks at the very top to
help reduce our deficit and provide that payroll tax cut, and do we
want to hold this body accountable?
On that issue, I defer to the gentlelady from New York, the ranking
member of the Rules Committee.
Ms. SLAUGHTER. Mr. Speaker, I am going to make an offer that no one
can refuse or no one should refuse.
I'm pleased that the STOCK Act is something we can finally vote on
today in this Congress. The STOCK Act has bipartisan support from 231
Members of Congress, a majority of the House, ranging from freshman
Members to
[[Page H8823]]
senior Members from both sides of the aisle.
The bill has been around since 2006, and we do not need to study it
another day. A critical part of the bill is the registration of the
political intelligence industry. The burgeoning K Street industry
gathers information from Members and staff in order to enrich their
Wall Street clients, and it has been completely unregulated.
We will finally regulate, through the STOCK Act, this lucrative
industry, and ensure that Members of Congress and their staffs come to
Washington to serve their constituents and not fatten their own bank
accounts. There are 535 of us privileged enough to serve in this
Congress, and we must hold ourselves accountable to the highest
standards.
The American people have shown an incredible interest in the STOCK
Act. If you fail to vote for this motion today, you're going to tell
them that you're not interested in their concerns. None of us on either
side of the aisle want to do that.
So I urge my colleagues to vote in favor of today's motion to
recommit to pass this bill that has been around for years and needs
passing very badly, and to hold ourselves accountable to the American
people and to the letter of the law.
The SPEAKER pro tempore. The time of the gentleman from Maryland has
expired.
Mr. CAMP. Mr. Speaker, I withdraw my reservation and seek time in
opposition to the motion to recommit.
The SPEAKER pro tempore. The reservation is withdrawn.
The gentleman from Michigan is recognized for 5 minutes.
Mr. CAMP. Mr. Speaker, this motion to recommit is a further
illustration of the glaring differences in priorities between
Republicans and Democrats. Republicans have brought a plan to the floor
today that is about protecting taxpayers and creating American jobs.
And instead of joining us in that important task, my Democratic friends
are offering yet another politically motivated motion.
In fact, one senior Democratic aide recently said to the press, and I
quote, ``MTRs are all political.'' You can read it right here.
My colleagues and the American people should not be fooled. They
should not be distracted by these political games.
Make no mistake. Our bill extends the payroll tax cut for every
employee in this country. And if my friends on the other side of the
aisle choose to vote against it, they are supporting a tax increase on
every American who collects a paycheck.
This motion contains a massive 10-year tax increase. It increases
taxes on employers, on small businesses, on investors, the very people
we need paying more paychecks, not more taxes. In fact, this exact
provision has been defeated multiple times in the U.S. Senate by
Republicans and Democrats alike in a bipartisan effort.
Our bill is about strengthening our economy, getting Americans back
to work through commonsense reforms to the unemployment insurance
program. It will ensure American seniors and the disabled are protected
by preventing massive cuts to doctors working in the Medicare program.
And it will be paid for with fiscally responsible reforms, not job-
killing tax hikes.
I urge my colleagues, vote against this motion to recommit and vote
for the underlying bill.
I yield back the balance of my time.
The SPEAKER pro tempore. Without objection, the previous question is
ordered on the motion to recommit.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Recorded Vote
Mr. VAN HOLLEN. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. Pursuant to clause 8 and clause 9 of rule
XX, this 15-minute vote on the motion to recommit will be followed by
5-minute votes on passage, if ordered, and the motion to suspend the
rules on H.R. 2767, if ordered.
The vote was taken by electronic device, and there were--ayes 183,
noes 244, not voting 6, as follows:
[Roll No. 922]
AYES--183
Ackerman
Altmire
Andrews
Baca
Baldwin
Bass (CA)
Becerra
Berkley
Berman
Bishop (GA)
Bishop (NY)
Blumenauer
Boswell
Brady (PA)
Braley (IA)
Brown (FL)
Butterfield
Capps
Capuano
Cardoza
Carnahan
Carney
Carson (IN)
Castor (FL)
Chandler
Chu
Cicilline
Clarke (MI)
Clarke (NY)
Clay
Cleaver
Clyburn
Cohen
Connolly (VA)
Conyers
Cooper
Costa
Costello
Courtney
Critz
Crowley
Cuellar
Cummings
Davis (CA)
Davis (IL)
DeFazio
DeGette
DeLauro
Deutch
Dicks
Dingell
Doggett
Donnelly (IN)
Doyle
Edwards
Ellison
Engel
Eshoo
Farr
Fattah
Frank (MA)
Fudge
Garamendi
Gonzalez
Green, Al
Green, Gene
Grijalva
Hahn
Hanabusa
Hastings (FL)
Heinrich
Higgins
Himes
Hinchey
Hinojosa
Hirono
Hochul
Holden
Holt
Honda
Hoyer
Inslee
Israel
Jackson (IL)
Jackson Lee (TX)
Johnson (GA)
Johnson, E. B.
Kaptur
Keating
Kildee
Kind
Kissell
Kucinich
Langevin
Larsen (WA)
Larson (CT)
Lee (CA)
Levin
Lewis (GA)
Lipinski
Loebsack
Lofgren, Zoe
Lowey
Lujan
Lynch
Maloney
Markey
Matsui
McCarthy (NY)
McCollum
McDermott
McGovern
McIntyre
McNerney
Meeks
Michaud
Miller (NC)
Miller, George
Moore
Moran
Murphy (CT)
Nadler
Napolitano
Neal
Olver
Owens
Pallone
Pascrell
Pastor (AZ)
Payne
Pelosi
Perlmutter
Peters
Pingree (ME)
Polis
Price (NC)
Quigley
Rahall
Rangel
Reyes
Richardson
Richmond
Rothman (NJ)
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schrader
Schwartz
Scott (VA)
Scott, David
Serrano
Sewell
Sherman
Shuler
Sires
Slaughter
Smith (WA)
Speier
Stark
Sutton
Thompson (CA)
Thompson (MS)
Tierney
Tonko
Towns
Tsongas
Van Hollen
Velazquez
Walz (MN)
Wasserman Schultz
Waters
Watt
Waxman
Welch
Wilson (FL)
Woolsey
Yarmuth
NOES--244
Adams
Aderholt
Akin
Alexander
Amash
Amodei
Austria
Bachus
Barletta
Barrow
Bartlett
Barton (TX)
Bass (NH)
Benishek
Berg
Biggert
Bilbray
Bilirakis
Bishop (UT)
Black
Blackburn
Bonner
Bono Mack
Boren
Boustany
Brady (TX)
Brooks
Broun (GA)
Buchanan
Bucshon
Buerkle
Burgess
Burton (IN)
Calvert
Camp
Campbell
Canseco
Cantor
Capito
Carter
Cassidy
Chabot
Chaffetz
Coffman (CO)
Cole
Conaway
Cravaack
Crawford
Crenshaw
Culberson
Davis (KY)
Denham
Dent
DesJarlais
Diaz-Balart
Dold
Dreier
Duffy
Duncan (SC)
Duncan (TN)
Ellmers
Emerson
Farenthold
Fincher
Fitzpatrick
Flake
Fleischmann
Fleming
Flores
Forbes
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Gardner
Garrett
Gerlach
Gibbs
Gibson
Gingrey (GA)
Gohmert
Goodlatte
Gosar
Gowdy
Granger
Graves (GA)
Graves (MO)
Griffin (AR)
Griffith (VA)
Grimm
Guinta
Guthrie
Hall
Hanna
Harper
Harris
Hartzler
Hastings (WA)
Hayworth
Heck
Hensarling
Herger
Herrera Beutler
Huelskamp
Huizenga (MI)
Hultgren
Hunter
Hurt
Issa
Jenkins
Johnson (IL)
Johnson (OH)
Johnson, Sam
Jones
Jordan
Kelly
King (IA)
King (NY)
Kingston
Kinzinger (IL)
Kline
Labrador
Lamborn
Lance
Landry
Lankford
Latham
LaTourette
Latta
Lewis (CA)
LoBiondo
Long
Lucas
Luetkemeyer
Lummis
Lungren, Daniel E.
Mack
Manzullo
Marchant
Marino
Matheson
McCarthy (CA)
McCaul
McClintock
McCotter
McHenry
McKeon
McKinley
McMorris Rodgers
Meehan
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Mulvaney
Murphy (PA)
Myrick
Neugebauer
Noem
Nugent
Nunes
Nunnelee
Olson
Palazzo
Paulsen
Pearce
Pence
Peterson
Petri
Pitts
Platts
Poe (TX)
Pompeo
Posey
Price (GA)
Quayle
Reed
Rehberg
Reichert
Renacci
Ribble
Rigell
Rivera
Roby
Roe (TN)
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Rokita
Rooney
Ros-Lehtinen
Roskam
Ross (AR)
Ross (FL)
Royce
Runyan
Ryan (WI)
Scalise
Schilling
Schmidt
Schock
Schweikert
Scott (SC)
Scott, Austin
Sensenbrenner
Sessions
Shimkus
Shuster
Simpson
Smith (NE)
Smith (NJ)
Smith (TX)
Southerland
Stearns
Stivers
Stutzman
Sullivan
Terry
Thompson (PA)
Thornberry
Tiberi
Tipton
Turner (NY)
Turner (OH)
Upton
Visclosky
Walberg
Walden
Walsh (IL)
Webster
West
Westmoreland
Whitfield
Wilson (SC)
Wittman
Wolf
Womack
Woodall
Yoder
Young (AK)
Young (FL)
Young (IN)
[[Page H8824]]
NOT VOTING--6
Bachmann
Coble
Filner
Giffords
Gutierrez
Paul
{time} 1841
Messrs. FLAKE, PALAZZO, and MURPHY of Pennsylvania changed their vote
from ``aye'' to ``no.''
Messrs. HINCHEY, ALTMIRE, Ms. SPEIER, and Mr. CLEAVER changed their
vote from ``no'' to ``aye.''
So the motion to recommit was rejected.
The result of the vote was announced as above recorded.
Stated against:
Mr. FILNER. Mr. Speaker, on rollcall 922, I was away from the Capitol
due to prior commitments to my constituents. Had I been present, I
would have voted ``aye.''
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Recorded Vote
Mr. LEVIN. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. This is a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 234,
noes 193, not voting 6, as follows:
[Roll No. 923]
AYES--234
Adams
Aderholt
Akin
Alexander
Amodei
Austria
Bachus
Barletta
Barrow
Bartlett
Bass (NH)
Benishek
Berg
Biggert
Bilbray
Bilirakis
Bishop (UT)
Black
Blackburn
Bonner
Bono Mack
Boren
Boswell
Boustany
Brady (TX)
Braley (IA)
Broun (GA)
Buchanan
Bucshon
Buerkle
Burgess
Burton (IN)
Calvert
Camp
Canseco
Cantor
Capito
Cardoza
Carter
Cassidy
Chabot
Chaffetz
Coffman (CO)
Cole
Conaway
Cravaack
Crawford
Crenshaw
Culberson
Davis (KY)
Denham
Dent
DesJarlais
Diaz-Balart
Dold
Donnelly (IN)
Dreier
Duffy
Duncan (SC)
Duncan (TN)
Ellmers
Emerson
Farenthold
Fincher
Fitzpatrick
Fleischmann
Fleming
Flores
Forbes
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Gardner
Gerlach
Gibbs
Gibson
Gingrey (GA)
Gohmert
Goodlatte
Gosar
Gowdy
Granger
Graves (GA)
Graves (MO)
Griffin (AR)
Griffith (VA)
Grimm
Guinta
Guthrie
Hall
Hanna
Harper
Harris
Hartzler
Hastings (WA)
Hayworth
Heck
Hensarling
Herger
Herrera Beutler
Huelskamp
Huizenga (MI)
Hultgren
Hunter
Hurt
Issa
Jenkins
Johnson (OH)
Johnson, Sam
Jones
Jordan
Kelly
King (IA)
King (NY)
Kingston
Kinzinger (IL)
Kline
Labrador
Lamborn
Lance
Landry
Lankford
Latham
LaTourette
Latta
Lewis (CA)
LoBiondo
Loebsack
Long
Lucas
Luetkemeyer
Lungren, Daniel E.
Mack
Manzullo
Marchant
Marino
Matheson
McCarthy (CA)
McCaul
McCotter
McHenry
McKeon
McMorris Rodgers
Meehan
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Mulvaney
Murphy (PA)
Myrick
Noem
Nugent
Nunes
Nunnelee
Olson
Palazzo
Paulsen
Pearce
Pence
Petri
Pitts
Platts
Poe (TX)
Pompeo
Posey
Price (GA)
Quayle
Reed
Rehberg
Reichert
Renacci
Ribble
Rigell
Rivera
Roby
Roe (TN)
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Rokita
Rooney
Ros-Lehtinen
Roskam
Ross (AR)
Ross (FL)
Royce
Runyan
Ryan (WI)
Scalise
Schilling
Schmidt
Schock
Schweikert
Scott (SC)
Scott, Austin
Sensenbrenner
Sessions
Shimkus
Shuster
Simpson
Smith (NE)
Smith (NJ)
Smith (TX)
Southerland
Stearns
Stivers
Stutzman
Sullivan
Terry
Thompson (PA)
Thornberry
Tiberi
Tipton
Turner (NY)
Turner (OH)
Upton
Walberg
Walden
Walsh (IL)
Walz (MN)
Webster
West
Westmoreland
Whitfield
Wilson (SC)
Wittman
Womack
Yoder
Young (AK)
Young (FL)
Young (IN)
NOES--193
Ackerman
Altmire
Amash
Andrews
Baca
Baldwin
Barton (TX)
Bass (CA)
Becerra
Berkley
Berman
Bishop (GA)
Bishop (NY)
Blumenauer
Brady (PA)
Brooks
Brown (FL)
Butterfield
Campbell
Capps
Capuano
Carnahan
Carney
Carson (IN)
Castor (FL)
Chandler
Chu
Cicilline
Clarke (MI)
Clarke (NY)
Clay
Cleaver
Clyburn
Cohen
Connolly (VA)
Conyers
Cooper
Costa
Costello
Courtney
Critz
Crowley
Cuellar
Cummings
Davis (CA)
Davis (IL)
DeFazio
DeGette
DeLauro
Deutch
Dicks
Dingell
Doggett
Doyle
Edwards
Ellison
Engel
Eshoo
Farr
Fattah
Flake
Fortenberry
Frank (MA)
Fudge
Garamendi
Garrett
Gonzalez
Green, Al
Green, Gene
Grijalva
Hahn
Hanabusa
Hastings (FL)
Heinrich
Higgins
Himes
Hinchey
Hinojosa
Hirono
Hochul
Holden
Holt
Honda
Hoyer
Inslee
Israel
Jackson (IL)
Jackson Lee (TX)
Johnson (GA)
Johnson (IL)
Johnson, E. B.
Kaptur
Keating
Kildee
Kind
Kissell
Kucinich
Langevin
Larsen (WA)
Larson (CT)
Lee (CA)
Levin
Lewis (GA)
Lipinski
Lofgren, Zoe
Lowey
Lujan
Lummis
Lynch
Maloney
Markey
Matsui
McCarthy (NY)
McClintock
McCollum
McDermott
McGovern
McIntyre
McKinley
McNerney
Meeks
Michaud
Miller (NC)
Miller, George
Moore
Moran
Murphy (CT)
Nadler
Napolitano
Neal
Neugebauer
Olver
Owens
Pallone
Pascrell
Pastor (AZ)
Payne
Pelosi
Perlmutter
Peters
Peterson
Pingree (ME)
Polis
Price (NC)
Quigley
Rahall
Rangel
Reyes
Richardson
Richmond
Rothman (NJ)
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schrader
Schwartz
Scott (VA)
Scott, David
Serrano
Sewell
Sherman
Shuler
Sires
Slaughter
Smith (WA)
Speier
Stark
Sutton
Thompson (CA)
Thompson (MS)
Tierney
Tonko
Towns
Tsongas
Van Hollen
Velazquez
Visclosky
Wasserman Schultz
Waters
Watt
Waxman
Welch
Wilson (FL)
Wolf
Woodall
Woolsey
Yarmuth
NOT VOTING--6
Bachmann
Coble
Filner
Giffords
Gutierrez
Paul
{time} 1851
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
Stated against:
Mr. FILNER. Mr. Speaker, on rollcall 923, I was away from the Capitol
due to prior commitments to my constituents. Had I been present, I
would have voted ``no.''
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